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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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State of Indiana
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81-1197930
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(State or Other Jurisdiction
of Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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ITEM
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PAGE
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PART I – FINANCIAL INFORMATION
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1.
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Note 13.
Debt
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2.
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3.
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4.
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PART II – OTHER INFORMATION
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1.
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1A.
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2.
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3.
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4.
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5.
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6.
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Three Months
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Nine Months
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||||||||||||
For the Periods Ended September 30
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2016
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2015
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2016
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2015
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||||||||
Revenue
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$
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581.7
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$
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601.9
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$
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1,817.0
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$
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1,818.8
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Costs of revenue
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397.8
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407.0
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1,232.2
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1,211.0
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Gross profit
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183.9
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194.9
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584.8
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607.8
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General and administrative expenses
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59.2
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60.2
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202.2
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186.8
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Sales and marketing expenses
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39.4
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43.1
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128.7
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139.2
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Research and development expenses
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18.6
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18.0
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58.9
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55.2
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Asbestos-related benefit, net
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(68.1
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)
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(30.3
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)
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(40.3
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)
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(99.7
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)
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Operating income
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134.8
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103.9
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235.3
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326.3
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Interest and non-operating expenses (income), net
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0.3
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(4.0
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)
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1.5
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(2.5
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)
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Income from continuing operations before income tax expense
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134.5
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107.9
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233.8
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328.8
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Income tax expense
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46.1
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11.4
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75.3
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53.0
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Income from continuing operations
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88.4
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96.5
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158.5
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275.8
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Income from discontinued operations, including tax (expense) benefit of $(1.1), $19.7, $(0.9) and $23.7, respectively
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1.8
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34.2
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2.0
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39.3
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Net income
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90.2
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130.7
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160.5
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315.1
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Less: Income attributable to noncontrolling interests
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0.1
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—
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0.2
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—
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Net income attributable to ITT Inc.
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$
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90.1
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$
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130.7
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$
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160.3
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$
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315.1
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Amounts attributable to ITT Inc.:
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Income from continuing operations, net of tax
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$
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88.3
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$
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96.5
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$
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158.3
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$
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275.8
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Income from discontinued operations, net of tax
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1.8
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34.2
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2.0
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39.3
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Net income attributable to ITT Inc.
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$
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90.1
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$
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130.7
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$
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160.3
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$
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315.1
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Earnings per share attributable to ITT Inc.:
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Basic:
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Continuing operations
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$
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0.99
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$
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1.08
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$
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1.77
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$
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3.07
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Discontinued operations
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0.02
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0.38
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0.02
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0.44
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Net income
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$
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1.01
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$
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1.46
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$
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1.79
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$
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3.51
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Diluted:
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Continuing operations
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$
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0.98
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$
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1.07
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$
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1.76
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$
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3.04
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Discontinued operations
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0.02
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0.38
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0.02
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0.43
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Net income
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$
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1.00
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$
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1.45
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$
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1.78
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$
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3.47
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Weighted average common shares – basic
|
89.2
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89.4
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89.5
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89.9
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Weighted average common shares – diluted
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89.7
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90.3
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90.2
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90.8
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Cash dividends declared per common share
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$
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0.124
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$
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0.1183
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$
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0.372
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$
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0.3549
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Three Months
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Nine Months
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For the Periods Ended September 30
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2016
|
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2015
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2016
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2015
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Net income
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$
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90.2
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$
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130.7
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$
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160.5
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$
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315.1
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Other comprehensive income (loss):
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Net foreign currency translation adjustment
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4.3
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(24.4
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)
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17.1
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(72.2
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)
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Net change in postretirement benefit plans, net of tax impacts of $0.6, $0.1, $1.6 and $0.5, respectively
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1.2
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0.8
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3.5
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1.9
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Other comprehensive income (loss)
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5.5
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(23.6
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)
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20.6
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(70.3
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)
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Comprehensive income
|
95.7
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|
|
107.1
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|
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181.1
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|
|
244.8
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Less: Comprehensive income attributable to noncontrolling interests
|
0.1
|
|
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—
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0.2
|
|
|
—
|
|
||||
Comprehensive income attributable to ITT Inc.
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$
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95.6
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|
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$
|
107.1
|
|
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$
|
180.9
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|
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$
|
244.8
|
|
Disclosure of reclassification and other adjustments to postretirement benefit plans
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|
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|
||||||||
Reclassification adjustments (see Note 14):
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|
|
|
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||||||||
Amortization of prior service benefit, net of tax expense of $(0.6), $(1.2), $(1.6) and $(3.0), respectively
|
$
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(0.8
|
)
|
|
$
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(1.4
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)
|
|
$
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(2.6
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)
|
|
$
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(4.6
|
)
|
Amortization of net actuarial loss, net of tax benefits of $1.2, $1.3, $3.2 and $3.5, respectively
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2.0
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2.2
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6.1
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|
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6.5
|
|
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Net change in postretirement benefit plans, net of tax
|
$
|
1.2
|
|
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$
|
0.8
|
|
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$
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3.5
|
|
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$
|
1.9
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|
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September 30,
2016 |
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December 31,
2015 |
||||
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(Unaudited)
|
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|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
475.8
|
|
|
$
|
415.7
|
|
Receivables, net
|
595.2
|
|
|
584.9
|
|
||
Inventories, net
|
305.1
|
|
|
292.7
|
|
||
Other current assets
|
139.7
|
|
|
204.4
|
|
||
Total current assets
|
1,515.8
|
|
|
1,497.7
|
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Plant, property and equipment, net
|
450.3
|
|
|
443.5
|
|
||
Goodwill
|
784.8
|
|
|
778.3
|
|
||
Other intangible assets, net
|
166.4
|
|
|
187.2
|
|
||
Asbestos-related assets
|
319.8
|
|
|
337.5
|
|
||
Deferred income taxes
|
294.2
|
|
|
326.1
|
|
||
Other non-current assets
|
186.3
|
|
|
153.3
|
|
||
Total non-current assets
|
2,201.8
|
|
|
2,225.9
|
|
||
Total assets
|
$
|
3,717.6
|
|
|
$
|
3,723.6
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term loans and current maturities of long-term debt
|
$
|
251.9
|
|
|
$
|
245.7
|
|
Accounts payable
|
304.4
|
|
|
314.7
|
|
||
Accrued liabilities
|
382.6
|
|
|
392.7
|
|
||
Total current liabilities
|
938.9
|
|
|
953.1
|
|
||
Asbestos-related liabilities
|
875.7
|
|
|
954.8
|
|
||
Postretirement benefits
|
255.1
|
|
|
260.4
|
|
||
Other non-current liabilities
|
190.2
|
|
|
189.9
|
|
||
Total non-current liabilities
|
1,321.0
|
|
|
1,405.1
|
|
||
Total liabilities
|
2,259.9
|
|
|
2,358.2
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock:
|
|
|
|
||||
Authorized – 250.0 shares, $1 par value per share (88.3 and 104.5 shares issued, respectively)
|
|
|
|
||||
Outstanding – 88.3 shares and 89.5 shares, respectively
|
88.3
|
|
|
89.5
|
|
||
Retained earnings
|
1,771.2
|
|
|
1,696.7
|
|
||
Total accumulated other comprehensive loss
|
(403.5
|
)
|
|
(424.1
|
)
|
||
Total ITT Inc. shareholders' equity
|
1,456.0
|
|
|
1,362.1
|
|
||
Noncontrolling interests
|
1.7
|
|
|
3.3
|
|
||
Total shareholders’ equity
|
1,457.7
|
|
|
1,365.4
|
|
||
Total liabilities and shareholders’ equity
|
$
|
3,717.6
|
|
|
$
|
3,723.6
|
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
160.5
|
|
|
$
|
315.1
|
|
Less: Income from discontinued operations
|
2.0
|
|
|
39.3
|
|
||
Less: Income attributable to noncontrolling interests
|
0.2
|
|
|
—
|
|
||
Income from continuing operations attributable to ITT Inc.
|
158.3
|
|
|
275.8
|
|
||
Adjustments to income from continuing operations:
|
|
|
|
||||
Depreciation and amortization
|
76.5
|
|
|
63.1
|
|
||
Stock-based compensation
|
9.1
|
|
|
11.1
|
|
||
Asbestos-related benefit, net
|
(40.3
|
)
|
|
(99.7
|
)
|
||
Asbestos-related payments, net
|
(24.5
|
)
|
|
(15.2
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Change in receivables
|
(13.9
|
)
|
|
(77.2
|
)
|
||
Change in inventories
|
(8.9
|
)
|
|
(6.3
|
)
|
||
Change in accounts payable
|
(16.2
|
)
|
|
(0.4
|
)
|
||
Change in accrued expenses
|
(18.8
|
)
|
|
(26.1
|
)
|
||
Change in accrued and deferred income taxes
|
33.3
|
|
|
21.9
|
|
||
Other, net
|
(7.9
|
)
|
|
0.1
|
|
||
Net Cash – Operating activities
|
146.7
|
|
|
147.1
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(68.1
|
)
|
|
(64.2
|
)
|
||
Acquisitions, net of cash acquired
|
(8.8
|
)
|
|
(53.5
|
)
|
||
Purchases of investments
|
(60.6
|
)
|
|
(73.0
|
)
|
||
Maturities of investments
|
113.6
|
|
|
68.2
|
|
||
Proceeds from sale of businesses and other assets
|
1.4
|
|
|
8.6
|
|
||
Proceeds from insurance recovery
|
—
|
|
|
2.5
|
|
||
Net Cash – Investing activities
|
(22.5
|
)
|
|
(111.4
|
)
|
||
Financing Activities
|
|
|
|
||||
Commercial paper, net borrowings
|
56.5
|
|
|
10.5
|
|
||
Short-term revolving loans, borrowings
|
27.7
|
|
|
—
|
|
||
Short-term revolving loans, repayments
|
(78.3
|
)
|
|
—
|
|
||
Long-term debt, repayments
|
(0.8
|
)
|
|
(2.1
|
)
|
||
Repurchase of common stock
|
(70.9
|
)
|
|
(83.9
|
)
|
||
Proceeds from issuance of common stock
|
8.8
|
|
|
5.5
|
|
||
Dividends paid
|
(22.6
|
)
|
|
(21.6
|
)
|
||
Excess tax benefit from equity compensation activity
|
3.4
|
|
|
3.2
|
|
||
Other, net
|
(2.2
|
)
|
|
(1.8
|
)
|
||
Net Cash – Financing activities
|
(78.4
|
)
|
|
(90.2
|
)
|
||
Exchange rate effects on cash and cash equivalents
|
9.0
|
|
|
(23.9
|
)
|
||
Net Cash – Operating activities of discontinued operations
|
5.3
|
|
|
(0.7
|
)
|
||
Net change in cash and cash equivalents
|
60.1
|
|
|
(79.1
|
)
|
||
Cash and cash equivalents – beginning of year
|
415.7
|
|
|
584.0
|
|
||
Cash and cash equivalents – end of period
|
$
|
475.8
|
|
|
$
|
504.9
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
||||
Cash paid during the year for:
|
|
|
|
||||
Interest
|
$
|
3.3
|
|
|
$
|
1.0
|
|
Income taxes, net of refunds received
|
$
|
37.2
|
|
|
$
|
24.7
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Common Stock
|
|
|
|
|
|
|
|
||||||||
Common stock, beginning balance
|
$
|
89.6
|
|
|
$
|
89.4
|
|
|
$
|
89.5
|
|
|
$
|
91.0
|
|
Activity from stock incentive plans
|
—
|
|
|
0.1
|
|
|
0.9
|
|
|
0.6
|
|
||||
Share repurchases
|
(1.3
|
)
|
|
—
|
|
|
(2.1
|
)
|
|
(2.1
|
)
|
||||
Common stock, ending balance
|
88.3
|
|
|
89.5
|
|
|
88.3
|
|
|
89.5
|
|
||||
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retained earnings, beginning balance
|
1,734.6
|
|
|
1,540.9
|
|
|
1,696.7
|
|
|
1,445.1
|
|
||||
Net income attributable to ITT Inc.
|
90.1
|
|
|
130.7
|
|
|
160.3
|
|
|
315.1
|
|
||||
Dividends declared
|
(11.2
|
)
|
|
(10.6
|
)
|
|
(33.6
|
)
|
|
(32.1
|
)
|
||||
Activity from stock incentive plans
|
3.3
|
|
|
4.5
|
|
|
20.5
|
|
|
19.0
|
|
||||
Share repurchases
|
(45.6
|
)
|
|
(0.2
|
)
|
|
(72.3
|
)
|
|
(81.8
|
)
|
||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
||||
Retained earnings, ending balance
|
1,771.2
|
|
|
1,665.3
|
|
|
1,771.2
|
|
|
1,665.3
|
|
||||
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
||||
Postretirement benefit plans, beginning balance
|
(151.4
|
)
|
|
(143.1
|
)
|
|
(153.7
|
)
|
|
(144.2
|
)
|
||||
Net change in postretirement benefit plans
|
1.2
|
|
|
0.8
|
|
|
3.5
|
|
|
1.9
|
|
||||
Postretirement benefit plans, ending balance
|
(150.2
|
)
|
|
(142.3
|
)
|
|
(150.2
|
)
|
|
(142.3
|
)
|
||||
Cumulative translation adjustment, beginning balance
|
(257.3
|
)
|
|
(224.5
|
)
|
|
(270.1
|
)
|
|
(176.7
|
)
|
||||
Net cumulative translation adjustment
|
4.3
|
|
|
(24.4
|
)
|
|
17.1
|
|
|
(72.2
|
)
|
||||
Cumulative translation adjustment, ending balance
|
(253.0
|
)
|
|
(248.9
|
)
|
|
(253.0
|
)
|
|
(248.9
|
)
|
||||
Unrealized loss on investment securities, beginning balance
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Unrealized loss on investment securities, ending balance
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Total accumulated other comprehensive loss
|
(403.5
|
)
|
|
(391.5
|
)
|
|
(403.5
|
)
|
|
(391.5
|
)
|
||||
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interests, beginning balance
|
1.6
|
|
|
5.4
|
|
|
3.3
|
|
|
5.4
|
|
||||
Income attributable to noncontrolling interests
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Dividend to noncontrolling interest shareholders
|
—
|
|
|
(1.8
|
)
|
|
(1.9
|
)
|
|
(1.8
|
)
|
||||
Other
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Noncontrolling interests, ending balance
|
1.7
|
|
|
3.6
|
|
|
1.7
|
|
|
3.6
|
|
||||
Total Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total shareholders' equity, beginning balance
|
1,416.8
|
|
|
1,267.8
|
|
|
1,365.4
|
|
|
1,220.3
|
|
||||
Net change in common stock
|
(1.3
|
)
|
|
0.1
|
|
|
(1.2
|
)
|
|
(1.5
|
)
|
||||
Net change in retained earnings
|
36.6
|
|
|
124.4
|
|
|
74.5
|
|
|
220.2
|
|
||||
Net change in accumulated other comprehensive loss
|
5.5
|
|
|
(23.6
|
)
|
|
20.6
|
|
|
(70.3
|
)
|
||||
Net change in noncontrolling interests
|
0.1
|
|
|
(1.8
|
)
|
|
(1.6
|
)
|
|
(1.8
|
)
|
||||
Total shareholders' equity, ending balance
|
$
|
1,457.7
|
|
|
$
|
1,366.9
|
|
|
$
|
1,457.7
|
|
|
$
|
1,366.9
|
|
•
|
Excess tax benefits and deficiencies will no longer be recognized as a change in additional paid-in-capital in the equity section of the balance sheet, instead they are to be recognized in the income statement as a tax expense or benefit. In the statement of cash flows, excess tax benefits and deficiencies will no longer be classified as a financing activity, instead they will be classified as an operating activity.
|
•
|
Entities will have the option to continue to reduce share-based compensation expense during the vesting period of outstanding awards for estimated future employee forfeitures or they may elect to recognize the impact of forfeitures as they actually occur.
|
•
|
The ASU also provides new guidance to other areas of the standard including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding.
|
|
Revenue
|
|
Operating
Income (Loss)
|
|
Operating Margin
|
||||||||||||||||
For the Three Months Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Industrial Process
|
$
|
195.0
|
|
|
$
|
270.6
|
|
|
$
|
4.3
|
|
|
$
|
34.0
|
|
|
2.2
|
%
|
|
12.6
|
%
|
Motion Technologies
|
238.7
|
|
|
179.9
|
|
|
45.2
|
|
|
33.0
|
|
|
18.9
|
%
|
|
18.3
|
%
|
||||
Interconnect Solutions
|
78.6
|
|
|
82.8
|
|
|
5.8
|
|
|
3.6
|
|
|
7.4
|
%
|
|
4.3
|
%
|
||||
Control Technologies
|
70.5
|
|
|
69.8
|
|
|
11.6
|
|
|
14.0
|
|
|
16.5
|
%
|
|
20.1
|
%
|
||||
Total segment results
|
582.8
|
|
|
603.1
|
|
|
66.9
|
|
|
84.6
|
|
|
11.5
|
%
|
|
14.1
|
%
|
||||
Asbestos-related benefit, net
|
—
|
|
|
—
|
|
|
68.1
|
|
|
30.3
|
|
|
—
|
|
|
—
|
|
||||
Eliminations / Other corporate costs
|
(1.1
|
)
|
|
(1.2
|
)
|
|
(0.2
|
)
|
|
(11.0
|
)
|
|
—
|
|
|
—
|
|
||||
Total Eliminations / Corporate and Other costs
|
(1.1
|
)
|
|
(1.2
|
)
|
|
67.9
|
|
|
19.3
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
581.7
|
|
|
$
|
601.9
|
|
|
$
|
134.8
|
|
|
$
|
103.9
|
|
|
23.2
|
%
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
|
Operating
Income (Loss) |
|
Operating Margin
|
||||||||||||||||
For the Nine Months Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Industrial Process
|
$
|
618.0
|
|
|
$
|
813.7
|
|
|
$
|
19.6
|
|
|
$
|
95.9
|
|
|
3.2
|
%
|
|
11.8
|
%
|
Motion Technologies
|
755.3
|
|
|
555.5
|
|
|
144.8
|
|
|
111.0
|
|
|
19.2
|
%
|
|
20.0
|
%
|
||||
Interconnect Solutions
|
229.8
|
|
|
243.0
|
|
|
12.6
|
|
|
7.6
|
|
|
5.5
|
%
|
|
3.1
|
%
|
||||
Control Technologies
|
217.2
|
|
|
210.1
|
|
|
34.0
|
|
|
40.5
|
|
|
15.7
|
%
|
|
19.3
|
%
|
||||
Total segment results
|
1,820.3
|
|
|
1,822.3
|
|
|
211.0
|
|
|
255.0
|
|
|
11.6
|
%
|
|
14.0
|
%
|
||||
Asbestos-related benefit, net
|
—
|
|
|
—
|
|
|
40.3
|
|
|
99.7
|
|
|
—
|
|
|
—
|
|
||||
Eliminations / Other corporate costs
|
(3.3
|
)
|
|
(3.5
|
)
|
|
(16.0
|
)
|
|
(28.4
|
)
|
|
—
|
|
|
—
|
|
||||
Total Eliminations / Corporate and Other costs
|
(3.3
|
)
|
|
(3.5
|
)
|
|
24.3
|
|
|
71.3
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
1,817.0
|
|
|
$
|
1,818.8
|
|
|
$
|
235.3
|
|
|
$
|
326.3
|
|
|
12.9
|
%
|
|
17.9
|
%
|
|
Total Assets
|
|
Capital
Expenditures
|
|
Depreciation &
Amortization
|
||||||||||||||||||
For the Nine Months Ended September 30
|
2016
|
|
2015
(a)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Industrial Process
|
$
|
1,030.1
|
|
|
$
|
1,097.5
|
|
|
$
|
14.9
|
|
|
$
|
13.0
|
|
|
$
|
21.0
|
|
|
$
|
20.9
|
|
Motion Technologies
|
838.5
|
|
|
779.8
|
|
|
45.5
|
|
|
28.7
|
|
|
32.7
|
|
|
20.5
|
|
||||||
Interconnect Solutions
|
312.8
|
|
|
303.2
|
|
|
2.9
|
|
|
15.6
|
|
|
9.0
|
|
|
7.9
|
|
||||||
Control Technologies
|
380.9
|
|
|
370.6
|
|
|
4.4
|
|
|
4.3
|
|
|
9.2
|
|
|
9.1
|
|
||||||
Corporate and Other
|
1,155.3
|
|
|
1,172.5
|
|
|
0.4
|
|
|
2.6
|
|
|
4.6
|
|
|
4.7
|
|
||||||
Total
|
$
|
3,717.6
|
|
|
$
|
3,723.6
|
|
|
$
|
68.1
|
|
|
$
|
64.2
|
|
|
$
|
76.5
|
|
|
$
|
63.1
|
|
(a)
|
Amounts reflect balances as of
December 31, 2015
.
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Severance costs
|
$
|
3.1
|
|
|
$
|
1.1
|
|
|
$
|
22.0
|
|
|
$
|
16.2
|
|
Asset write-offs
|
0.2
|
|
|
0.7
|
|
|
0.4
|
|
|
0.7
|
|
||||
Other restructuring costs
|
0.7
|
|
|
—
|
|
|
1.4
|
|
|
0.9
|
|
||||
Total restructuring costs
|
$
|
4.0
|
|
|
$
|
1.8
|
|
|
$
|
23.8
|
|
|
$
|
17.8
|
|
By segment:
|
|
|
|
|
|
|
|
||||||||
Industrial Process
|
$
|
2.9
|
|
|
$
|
0.6
|
|
|
$
|
19.9
|
|
|
$
|
10.6
|
|
Motion Technologies
|
1.1
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
||||
Interconnect Solutions
|
—
|
|
|
0.9
|
|
|
—
|
|
|
6.2
|
|
||||
Control Technologies
|
—
|
|
|
0.3
|
|
|
0.9
|
|
|
0.8
|
|
||||
Corporate and Other
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.2
|
|
For the Periods Ended September 30
|
2016
|
|
2015
|
||||
Restructuring accruals - beginning balance
|
$
|
20.0
|
|
|
$
|
21.9
|
|
Restructuring costs
|
23.8
|
|
|
17.8
|
|
||
Cash payments
|
(22.7
|
)
|
|
(19.5
|
)
|
||
Asset write-offs
|
(0.4
|
)
|
|
(0.7
|
)
|
||
Foreign exchange translation and other
|
—
|
|
|
(0.3
|
)
|
||
Restructuring accrual - ending balance
|
$
|
20.7
|
|
|
$
|
19.2
|
|
By accrual type:
|
|
|
|
||||
Severance accrual
|
$
|
19.4
|
|
|
$
|
18.2
|
|
Facility carrying and other costs accrual
|
1.3
|
|
|
1.0
|
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Restructuring accruals - beginning balance
|
$
|
4.9
|
|
|
$
|
—
|
|
Restructuring costs
|
19.9
|
|
|
10.6
|
|
||
Cash payments
|
(12.8
|
)
|
|
(3.1
|
)
|
||
Asset write-offs
|
(0.4
|
)
|
|
(0.7
|
)
|
||
Foreign exchange translation and other
|
0.3
|
|
|
—
|
|
||
Restructuring accruals - ending balance
|
$
|
11.9
|
|
|
$
|
6.8
|
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Restructuring accruals - beginning balance
|
$
|
9.4
|
|
|
$
|
17.1
|
|
Restructuring costs
|
—
|
|
|
6.2
|
|
||
Cash payments
|
(7.0
|
)
|
|
(12.1
|
)
|
||
Foreign exchange translation and other
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Restructuring accruals - ending balance
|
$
|
2.3
|
|
|
$
|
11.0
|
|
|
Three Months
|
|
Nine Months
|
||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Basic weighted average common shares outstanding
|
89.2
|
|
|
89.4
|
|
|
89.5
|
|
|
89.9
|
|
Add: Dilutive impact of outstanding equity awards
|
0.5
|
|
|
0.9
|
|
|
0.7
|
|
|
0.9
|
|
Diluted weighted average common shares outstanding
|
89.7
|
|
|
90.3
|
|
|
90.2
|
|
|
90.8
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Anti-dilutive stock options
|
0.7
|
|
|
0.4
|
|
|
0.7
|
|
|
0.4
|
|
||||
Weighted average exercise price per share
|
$
|
37.99
|
|
|
$
|
42.42
|
|
|
$
|
38.47
|
|
|
$
|
42.53
|
|
Year(s) of expiration
|
2024 - 2026
|
|
|
2024 - 2025
|
|
|
2024 - 2026
|
|
|
2024 - 2025
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Trade accounts receivable
|
|
$
|
565.9
|
|
|
|
|
$
|
554.0
|
|
|
Notes receivable
|
|
4.0
|
|
|
|
|
3.9
|
|
|
||
Other
|
|
41.3
|
|
|
|
|
43.1
|
|
|
||
Receivables, gross
|
|
611.2
|
|
|
|
|
601.0
|
|
|
||
Less: Allowance for doubtful accounts
|
|
(16.0
|
)
|
|
|
|
(16.1
|
)
|
|
||
Receivables, net
|
|
$
|
595.2
|
|
|
|
|
$
|
584.9
|
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Finished goods
|
|
$
|
44.9
|
|
|
|
|
$
|
60.9
|
|
|
Work in process
|
|
65.0
|
|
|
|
|
56.0
|
|
|
||
Raw materials
|
|
171.8
|
|
|
|
|
162.9
|
|
|
||
Inventoried costs related to long-term contracts
|
|
44.9
|
|
|
|
|
43.0
|
|
|
||
Total inventory before progress payments
|
|
326.6
|
|
|
|
|
322.8
|
|
|
||
Less: Progress payments
|
|
(21.5
|
)
|
|
|
|
(30.1
|
)
|
|
||
Inventories, net
|
|
$
|
305.1
|
|
|
|
|
$
|
292.7
|
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Asbestos-related assets
|
|
$
|
66.0
|
|
|
|
|
$
|
74.5
|
|
|
Short-term investments
|
|
15.0
|
|
|
|
|
64.9
|
|
|
||
Prepaid income taxes
|
|
15.1
|
|
|
|
|
14.3
|
|
|
||
Other
|
|
43.6
|
|
|
|
|
50.7
|
|
|
||
Other current assets
|
|
$
|
139.7
|
|
|
|
|
$
|
204.4
|
|
|
Other employee benefit-related assets
|
|
$
|
96.0
|
|
|
|
|
$
|
92.9
|
|
|
Environmental-related assets
(a)
|
|
34.1
|
|
|
|
|
10.8
|
|
|
||
Capitalized software costs
|
|
34.8
|
|
|
|
|
28.2
|
|
|
||
Other
|
|
21.4
|
|
|
|
|
21.4
|
|
|
||
Other non-current assets
|
|
$
|
186.3
|
|
|
|
|
$
|
153.3
|
|
|
(a)
|
Environmental-related assets increased $23.3 primarily related to a settlement agreement and establishment of a Qualified Settlement Fund (QSF), which can be drawn upon to pay certain future environmental expenses associated with environmental remediation sites covered under the settlement agreement. See Note
17
, Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information on environmental-related matters.
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Land and improvements
|
|
$
|
30.0
|
|
|
|
|
$
|
25.4
|
|
|
Machinery and equipment
|
|
928.0
|
|
|
|
|
909.3
|
|
|
||
Buildings and improvements
|
|
244.4
|
|
|
|
|
242.0
|
|
|
||
Furniture, fixtures and office equipment
|
|
69.3
|
|
|
|
|
66.3
|
|
|
||
Construction work in progress
|
|
45.6
|
|
|
|
|
42.3
|
|
|
||
Other
|
|
5.6
|
|
|
|
|
6.7
|
|
|
||
Plant, property and equipment, gross
|
|
1,322.9
|
|
|
|
|
1,292.0
|
|
|
||
Less: Accumulated depreciation
|
|
(872.6
|
)
|
|
|
|
(848.5
|
)
|
|
||
Plant, property and equipment, net
|
|
$
|
450.3
|
|
|
|
|
$
|
443.5
|
|
|
|
Industrial
Process
|
|
Motion
Technologies
|
|
Interconnect
Solutions
|
|
Control
Technologies
|
|
Total
|
||||||||||||||||||
Goodwill - December 31, 2015
|
|
$
|
312.6
|
|
|
|
|
$
|
201.0
|
|
|
|
|
$
|
69.0
|
|
|
|
|
$
|
195.7
|
|
|
|
$
|
778.3
|
|
Adjustments to purchase price allocations
|
|
—
|
|
|
|
|
0.3
|
|
|
|
|
—
|
|
|
|
|
0.4
|
|
|
|
0.7
|
|
|||||
Foreign exchange translation
|
|
4.3
|
|
|
|
|
1.2
|
|
|
|
|
0.3
|
|
|
|
|
—
|
|
|
|
5.8
|
|
|||||
Goodwill - September 30, 2016
|
|
$
|
316.9
|
|
|
|
|
$
|
202.5
|
|
|
|
|
$
|
69.3
|
|
|
|
|
$
|
196.1
|
|
|
|
$
|
784.8
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net Intangibles
|
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net Intangibles
|
||||||||||||||||||||||||
Customer relationships
|
|
$
|
157.1
|
|
|
|
|
$
|
(56.3
|
)
|
|
|
|
$
|
100.8
|
|
|
|
|
$
|
157.4
|
|
|
|
|
$
|
(45.3
|
)
|
|
|
|
$
|
112.1
|
|
|
Proprietary technology
|
|
53.4
|
|
|
|
|
(16.2
|
)
|
|
|
|
37.2
|
|
|
|
|
54.9
|
|
|
|
|
(12.7
|
)
|
|
|
|
42.2
|
|
|
||||||
Patents and other
|
|
8.7
|
|
|
|
|
(7.5
|
)
|
|
|
|
1.2
|
|
|
|
|
8.6
|
|
|
|
|
(6.6
|
)
|
|
|
|
2.0
|
|
|
||||||
Finite-lived intangible total
|
|
219.2
|
|
|
|
|
(80.0
|
)
|
|
|
|
139.2
|
|
|
|
|
220.9
|
|
|
|
|
(64.6
|
)
|
|
|
|
156.3
|
|
|
||||||
Indefinite-lived intangibles
|
|
27.2
|
|
|
|
|
—
|
|
|
|
|
27.2
|
|
|
|
|
30.9
|
|
|
|
|
—
|
|
|
|
|
30.9
|
|
|
||||||
Other intangible assets
|
|
$
|
246.4
|
|
|
|
|
$
|
(80.0
|
)
|
|
|
|
$
|
166.4
|
|
|
|
|
$
|
251.8
|
|
|
|
|
$
|
(64.6
|
)
|
|
|
|
$
|
187.2
|
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Compensation and other employee-related benefits
|
|
$
|
123.5
|
|
|
|
|
$
|
138.6
|
|
|
Asbestos-related liabilities
|
|
76.1
|
|
|
|
|
88.0
|
|
|
||
Customer-related liabilities
|
|
41.3
|
|
|
|
|
38.0
|
|
|
||
Accrued income taxes and other tax-related liabilities
|
|
44.2
|
|
|
|
|
30.9
|
|
|
||
Environmental liabilities and other legal matters
|
|
26.0
|
|
|
|
|
24.0
|
|
|
||
Accrued warranty costs
|
|
18.9
|
|
|
|
|
21.7
|
|
|
||
Other accrued liabilities
|
|
52.6
|
|
|
|
|
51.5
|
|
|
||
Accrued liabilities
|
|
$
|
382.6
|
|
|
|
|
$
|
392.7
|
|
|
Deferred income taxes and other tax-related accruals
|
|
$
|
28.3
|
|
|
|
|
$
|
44.5
|
|
|
Environmental liabilities
|
|
62.1
|
|
|
|
|
72.0
|
|
|
||
Compensation and other employee-related benefits
|
|
33.9
|
|
|
|
|
35.6
|
|
|
||
Other
(a)
|
|
65.9
|
|
|
|
|
37.8
|
|
|
||
Other non-current liabilities
|
|
$
|
190.2
|
|
|
|
|
$
|
189.9
|
|
|
(a)
|
Increase primarily driven by deferred income associated with an insurance settlement agreement and establishment of a QSF related to our environmental liability. The deferred income will be reduced as costs for remediation sites covered under the settlement agreement are incurred. See Note
17
, Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information.
|
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Commercial paper
|
|
$
|
151.0
|
|
|
|
|
$
|
94.5
|
|
|
Short-term loans
|
|
100.0
|
|
|
|
|
150.0
|
|
|
||
Current maturities of long-term debt and capital leases
|
|
0.9
|
|
|
|
|
1.2
|
|
|
||
Short-term loans and current maturities of long-term debt
|
|
251.9
|
|
|
|
|
245.7
|
|
|
||
Long-term debt and capital leases
|
|
2.3
|
|
|
|
|
2.8
|
|
|
||
Total debt and capital leases
|
|
$
|
254.2
|
|
|
|
|
$
|
248.5
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||
For the Three Months Ended September 30
|
Pension
|
|
Other
Benefits
|
|
Total
|
|
Pension
|
|
Other
Benefits
|
|
Total
|
||||||||||||||||||||||||
Service cost
|
|
$
|
1.5
|
|
|
|
|
$
|
0.2
|
|
|
|
|
$
|
1.7
|
|
|
|
|
$
|
1.4
|
|
|
|
|
$
|
0.3
|
|
|
|
|
$
|
1.7
|
|
|
Interest cost
|
|
3.3
|
|
|
|
|
1.2
|
|
|
|
|
4.5
|
|
|
|
|
3.6
|
|
|
|
|
1.4
|
|
|
|
|
5.0
|
|
|
||||||
Expected return on plan assets
|
|
(5.0
|
)
|
|
|
|
(0.1
|
)
|
|
|
|
(5.1
|
)
|
|
|
|
(5.1
|
)
|
|
|
|
(0.2
|
)
|
|
|
|
(5.3
|
)
|
|
||||||
Amortization of prior service cost (benefit)
|
|
0.2
|
|
|
|
|
(1.6
|
)
|
|
|
|
(1.4
|
)
|
|
|
|
0.2
|
|
|
|
|
(2.8
|
)
|
|
|
|
(2.6
|
)
|
|
||||||
Amortization of net actuarial loss
|
|
2.0
|
|
|
|
|
1.2
|
|
|
|
|
3.2
|
|
|
|
|
2.2
|
|
|
|
|
1.3
|
|
|
|
|
3.5
|
|
|
||||||
Total net periodic benefit cost
|
|
$
|
2.0
|
|
|
|
|
$
|
0.9
|
|
|
|
|
$
|
2.9
|
|
|
|
|
$
|
2.3
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30
|
Pension
|
|
Other
Benefits |
|
Total
|
|
Pension
|
|
Other
Benefits |
|
Total
|
||||||||||||||||||||||||
Service cost
|
|
$
|
4.0
|
|
|
|
|
$
|
0.6
|
|
|
|
|
$
|
4.6
|
|
|
|
|
$
|
4.0
|
|
|
|
|
$
|
0.7
|
|
|
|
|
$
|
4.7
|
|
|
Interest cost
|
|
10.2
|
|
|
|
|
3.6
|
|
|
|
|
13.8
|
|
|
|
|
10.7
|
|
|
|
|
3.8
|
|
|
|
|
14.5
|
|
|
||||||
Expected return on plan assets
|
|
(15.1
|
)
|
|
|
|
(0.4
|
)
|
|
|
|
(15.5
|
)
|
|
|
|
(15.3
|
)
|
|
|
|
(0.6
|
)
|
|
|
|
(15.9
|
)
|
|
||||||
Amortization of prior service cost (benefit)
|
|
0.7
|
|
|
|
|
(4.9
|
)
|
|
|
|
(4.2
|
)
|
|
|
|
0.7
|
|
|
|
|
(8.3
|
)
|
|
|
|
(7.6
|
)
|
|
||||||
Amortization of net actuarial loss
|
|
5.7
|
|
|
|
|
3.6
|
|
|
|
|
9.3
|
|
|
|
|
6.5
|
|
|
|
|
3.5
|
|
|
|
|
10.0
|
|
|
||||||
Total net periodic benefit cost (benefit)
|
|
$
|
5.5
|
|
|
|
|
$
|
2.5
|
|
|
|
|
$
|
8.0
|
|
|
|
|
$
|
6.6
|
|
|
|
|
$
|
(0.9
|
)
|
|
|
|
$
|
5.7
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Equity based awards
|
$
|
3.2
|
|
|
$
|
4.2
|
|
|
$
|
9.1
|
|
|
$
|
11.1
|
|
Liability-based awards
|
0.4
|
|
|
(0.1
|
)
|
|
1.2
|
|
|
0.8
|
|
||||
Total share-based compensation expense
|
$
|
3.6
|
|
|
$
|
4.1
|
|
|
$
|
10.3
|
|
|
$
|
11.9
|
|
|
# of Awards Granted
|
Weighted Average Grant Date Fair Value Per Share
|
|||
Non-qualified stock options (NQOs)
|
0.4
|
|
$
|
9.16
|
|
Restricted stock units (RSUs)
|
0.3
|
|
$
|
33.28
|
|
Performance stock units (PSUs)
|
0.2
|
|
$
|
33.27
|
|
Dividend yield
|
1.5%
|
Expected volatility
|
32.2%
|
Expected life
|
6.0 years
|
Risk-free rates
|
1.5%
|
Weighted average grant date fair value per share
|
$9.16
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Asbestos provision
|
$
|
13.7
|
|
|
$
|
15.7
|
|
|
$
|
44.3
|
|
|
$
|
47.0
|
|
Net asbestos remeasurement benefit
|
(81.8
|
)
|
|
(44.8
|
)
|
|
(81.8
|
)
|
|
(44.8
|
)
|
||||
Defense cost adjustment
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|
(100.7
|
)
|
||||
Settlement agreements
|
—
|
|
|
(1.2
|
)
|
|
2.1
|
|
|
(1.2
|
)
|
||||
Asbestos-related benefit, net
|
$
|
(68.1
|
)
|
|
$
|
(30.3
|
)
|
|
$
|
(40.3
|
)
|
|
$
|
(99.7
|
)
|
|
2016
|
|
2015
|
||||||||||||||||||||
For the Nine Months Ended September 30
|
Liability
|
|
Asset
|
|
Net
|
|
Liability
|
|
Asset
|
|
Net
|
||||||||||||
Beginning balance
|
$
|
1,042.8
|
|
|
$
|
412.0
|
|
|
$
|
630.8
|
|
|
$
|
1,223.2
|
|
|
$
|
476.4
|
|
|
$
|
746.8
|
|
Asbestos provision
|
51.6
|
|
|
7.3
|
|
|
44.3
|
|
|
54.8
|
|
|
7.8
|
|
|
47.0
|
|
||||||
Asbestos remeasurement
|
(75.9
|
)
|
|
5.9
|
|
|
(81.8
|
)
|
|
(52.7
|
)
|
|
(7.9
|
)
|
|
(44.8
|
)
|
||||||
Defense costs adjustment
|
(4.9
|
)
|
|
—
|
|
|
(4.9
|
)
|
|
(124.2
|
)
|
|
(23.5
|
)
|
|
(100.7
|
)
|
||||||
Settlement agreements
|
—
|
|
|
(2.1
|
)
|
|
2.1
|
|
|
—
|
|
|
1.2
|
|
|
(1.2
|
)
|
||||||
Net cash activity
|
(61.8
|
)
|
|
(37.3
|
)
|
|
(24.5
|
)
|
|
(52.3
|
)
|
|
(37.1
|
)
|
|
(15.2
|
)
|
||||||
Ending balance
|
$
|
951.8
|
|
|
$
|
385.8
|
|
|
$
|
566.0
|
|
|
$
|
1,048.8
|
|
|
$
|
416.9
|
|
|
$
|
631.9
|
|
Current portion
|
$
|
76.1
|
|
|
$
|
66.0
|
|
|
|
|
$
|
87.6
|
|
|
$
|
74.5
|
|
|
|
||||
Noncurrent portion
|
$
|
875.7
|
|
|
$
|
319.8
|
|
|
|
|
|
$
|
961.2
|
|
|
$
|
342.4
|
|
|
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Environmental liability - beginning balance
|
$
|
82.6
|
|
|
$
|
89.9
|
|
Change in estimates for pre-existing accruals
|
|
|
|
||||
Continuing operations
|
2.4
|
|
|
1.4
|
|
||
Discontinued operations
|
0.7
|
|
|
(2.8
|
)
|
||
Net cash activity
|
(10.2
|
)
|
|
(9.1
|
)
|
||
Foreign currency
|
—
|
|
|
(0.4
|
)
|
||
Environmental liability - ending balance
|
$
|
75.5
|
|
|
$
|
79.0
|
|
|
|
||
Cash
|
$
|
8.5
|
|
Receivables
|
31.6
|
|
|
Inventory
|
35.0
|
|
|
Plant, property and equipment
|
28.5
|
|
|
Goodwill
|
161.9
|
|
|
Other intangible assets
|
86.0
|
|
|
Other assets
|
12.3
|
|
|
Accounts payable and accrued liabilities
|
(21.2
|
)
|
|
Postretirement liabilities
|
(14.6
|
)
|
|
Other liabilities
|
(12.5
|
)
|
|
Net assets acquired
|
$
|
315.5
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||||
For the Periods Ended September 30
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
||||||||||
Revenue
|
$
|
581.7
|
|
$
|
601.9
|
|
(3.4
|
%)
|
|
$
|
1,817.0
|
|
$
|
1,818.8
|
|
(0.1
|
%)
|
Gross profit
|
183.9
|
|
194.9
|
|
(5.6
|
%)
|
|
584.8
|
|
607.8
|
|
(3.8
|
%)
|
||||
Gross margin
|
31.6
|
%
|
32.4
|
%
|
(80
|
)bp
|
|
32.2
|
%
|
33.4
|
%
|
(120
|
)bp
|
||||
Operating expenses
(a)
|
49.1
|
|
91.0
|
|
(46.0
|
%)
|
|
349.5
|
|
281.5
|
|
24.2
|
%
|
||||
Expense to revenue ratio
|
8.4
|
%
|
15.1
|
%
|
(670
|
)bp
|
|
19.2
|
%
|
15.5
|
%
|
370
|
bp
|
||||
Operating income
|
134.8
|
|
103.9
|
|
29.7
|
%
|
|
235.3
|
|
326.3
|
|
(27.9
|
%)
|
||||
Operating margin
|
23.2
|
%
|
17.3
|
%
|
590
|
bp
|
|
12.9
|
%
|
17.9
|
%
|
(500
|
)bp
|
||||
Interest and non-operating expenses (income), net
|
0.3
|
|
(4.0
|
)
|
(107.5
|
%)
|
|
1.5
|
|
(2.5
|
)
|
(160.0
|
%)
|
||||
Income tax expense
|
46.1
|
|
11.4
|
|
304.4
|
%
|
|
75.3
|
|
53.0
|
|
42.1
|
%
|
||||
Effective tax rate
|
34.3
|
%
|
10.6
|
%
|
2,370
|
bp
|
|
32.2
|
%
|
16.1
|
%
|
1,610
|
bp
|
||||
Income from continuing operations attributable to ITT Inc.
|
88.3
|
|
96.5
|
|
(8.5
|
%)
|
|
158.3
|
|
275.8
|
|
(42.6
|
%)
|
||||
Income from discontinued operations, net of tax
|
1.8
|
|
34.2
|
|
(94.7
|
%)
|
|
2.0
|
|
39.3
|
|
(94.9
|
%)
|
||||
Net income attributable to ITT Inc.
|
90.1
|
|
130.7
|
|
(31.1
|
%)
|
|
160.3
|
|
315.1
|
|
(49.1
|
%)
|
(a)
|
Operating expenses for the three and nine months ended September 30, 2016 and 2015 includes activity related to asbestos matters. Refer to Note 17, Commitments and Contingencies, for additional information.
|
For the Three Months Ended September 30
|
2016
|
|
2015
|
|
Change
|
|
Organic Revenue Growth
(a)
|
||||||
Industrial Process
|
$
|
195.0
|
|
|
$
|
270.6
|
|
|
(27.9
|
)%
|
|
(26.1
|
)%
|
Motion Technologies
|
238.7
|
|
|
179.9
|
|
|
32.7
|
%
|
|
10.1
|
%
|
||
Interconnect Solutions
|
78.6
|
|
|
82.8
|
|
|
(5.1
|
)%
|
|
(6.3
|
)%
|
||
Control Technologies
|
70.5
|
|
|
69.8
|
|
|
1.0
|
%
|
|
0.6
|
%
|
||
Eliminations
|
(1.1
|
)
|
|
(1.2
|
)
|
|
(8.3
|
)%
|
|
—
|
|
||
Revenue
|
$
|
581.7
|
|
|
$
|
601.9
|
|
|
(3.4
|
)%
|
|
(9.5
|
)%
|
|
|
|
|
|
|
|
|
||||||
For the Nine Months Ended September 30
|
2016
|
|
2015
|
|
Change
|
|
Organic Revenue Growth
(a)
|
||||||
Industrial Process
|
$
|
618.0
|
|
|
$
|
813.7
|
|
|
(24.1
|
)%
|
|
(21.1
|
)%
|
Motion Technologies
|
755.3
|
|
|
555.5
|
|
|
36.0
|
%
|
|
13.2
|
%
|
||
Interconnect Solutions
|
229.8
|
|
|
243.0
|
|
|
(5.4
|
)%
|
|
(6.0
|
)%
|
||
Control Technologies
|
217.2
|
|
|
210.1
|
|
|
3.4
|
%
|
|
0.6
|
%
|
||
Eliminations
|
(3.3
|
)
|
|
(3.5
|
)
|
|
(5.7
|
)%
|
|
—
|
|
||
Revenue
|
$
|
1,817.0
|
|
|
$
|
1,818.8
|
|
|
(0.1
|
)%
|
|
(6.1
|
)%
|
(a)
|
See the section titled "Key Performance Indicators and Non-GAAP Measures" for a definition and reconciliation of organic revenue.
|
|
Three Months
|
|
Nine Months
|
||||||||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
General and administrative expenses
|
$
|
59.2
|
|
|
$
|
60.2
|
|
|
(1.7
|
)%
|
|
$
|
202.2
|
|
|
$
|
186.8
|
|
|
8.2
|
%
|
Sales and marketing expenses
|
39.4
|
|
|
43.1
|
|
|
(8.6
|
)%
|
|
128.7
|
|
|
139.2
|
|
|
(7.5
|
)%
|
||||
Research and development expenses
|
18.6
|
|
|
18.0
|
|
|
3.3
|
%
|
|
58.9
|
|
|
55.2
|
|
|
6.7
|
%
|
||||
Asbestos-related benefit, net
|
(68.1
|
)
|
|
(30.3
|
)
|
|
124.8
|
%
|
|
(40.3
|
)
|
|
(99.7
|
)
|
|
(59.6
|
)%
|
||||
Total operating expenses
|
$
|
49.1
|
|
|
$
|
91.0
|
|
|
(46.0
|
)%
|
|
$
|
349.5
|
|
|
$
|
281.5
|
|
|
24.2
|
%
|
Total Operating Expenses By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Process
|
$
|
51.2
|
|
|
$
|
49.0
|
|
|
4.5
|
%
|
|
$
|
167.9
|
|
|
$
|
170.6
|
|
|
(1.6
|
)%
|
Motion Technologies
|
33.3
|
|
|
24.1
|
|
|
38.2
|
%
|
|
102.1
|
|
|
65.0
|
|
|
57.1
|
%
|
||||
Interconnect Solutions
|
18.3
|
|
|
22.3
|
|
|
(17.9
|
)%
|
|
56.5
|
|
|
71.3
|
|
|
(20.8
|
)%
|
||||
Control Technologies
|
14.2
|
|
|
14.7
|
|
|
(3.4
|
)%
|
|
47.2
|
|
|
45.3
|
|
|
4.2
|
%
|
||||
Corporate & Other
|
(67.9
|
)
|
|
(19.1
|
)
|
|
255.5
|
%
|
|
(24.2
|
)
|
|
(70.7
|
)
|
|
(65.8
|
)%
|
|
Three Months
|
|
Nine Months
|
||||||||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
||||||||||
Industrial Process
|
$
|
4.3
|
|
|
$
|
34.0
|
|
|
(87.4
|
)%
|
|
$
|
19.6
|
|
|
$
|
95.9
|
|
|
(79.6
|
)%
|
Motion Technologies
|
45.2
|
|
|
33.0
|
|
|
37.0
|
%
|
|
144.8
|
|
|
111.0
|
|
|
30.5
|
%
|
||||
Interconnect Solutions
|
5.8
|
|
|
3.6
|
|
|
61.1
|
%
|
|
12.6
|
|
|
7.6
|
|
|
65.8
|
%
|
||||
Control Technologies
|
11.6
|
|
|
14.0
|
|
|
(17.1
|
)%
|
|
34.0
|
|
|
40.5
|
|
|
(16.0
|
)%
|
||||
Segment operating income
|
66.9
|
|
|
84.6
|
|
|
(20.9
|
)%
|
|
211.0
|
|
|
255.0
|
|
|
(17.3
|
)%
|
||||
Asbestos-related benefit, net
|
68.1
|
|
|
30.3
|
|
|
124.8
|
%
|
|
40.3
|
|
|
99.7
|
|
|
(59.6
|
)%
|
||||
Other corporate costs
|
(0.2
|
)
|
|
(11.0
|
)
|
|
98.2
|
%
|
|
(16.0
|
)
|
|
(28.4
|
)
|
|
43.7
|
%
|
||||
Total corporate and other benefit
|
67.9
|
|
|
19.3
|
|
|
251.8
|
%
|
|
24.3
|
|
|
71.3
|
|
|
65.9
|
%
|
||||
Total operating income
|
$
|
134.8
|
|
|
$
|
103.9
|
|
|
29.7
|
%
|
|
$
|
235.3
|
|
|
$
|
326.3
|
|
|
(27.9
|
)%
|
Operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Process
|
2.2
|
%
|
|
12.6
|
%
|
|
(1,040
|
)bp
|
|
3.2
|
%
|
|
11.8
|
%
|
|
(860
|
)bp
|
||||
Motion Technologies
|
18.9
|
%
|
|
18.3
|
%
|
|
60
|
bp
|
|
19.2
|
%
|
|
20.0
|
%
|
|
(80
|
)bp
|
||||
Interconnect Solutions
|
7.4
|
%
|
|
4.3
|
%
|
|
310
|
bp
|
|
5.5
|
%
|
|
3.1
|
%
|
|
240
|
bp
|
||||
Control Technologies
|
16.5
|
%
|
|
20.1
|
%
|
|
(360
|
)bp
|
|
15.7
|
%
|
|
19.3
|
%
|
|
(360
|
)bp
|
||||
Segment operating margin
|
11.5
|
%
|
|
14.1
|
%
|
|
(260
|
)bp
|
|
11.6
|
%
|
|
14.0
|
%
|
|
(240
|
)bp
|
||||
Consolidated operating margin
|
23.2
|
%
|
|
17.3
|
%
|
|
590
|
bp
|
|
12.9
|
%
|
|
17.9
|
%
|
|
(500
|
)bp
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Operating activities
|
$
|
146.7
|
|
|
$
|
147.1
|
|
Investing activities
|
(22.5
|
)
|
|
(111.4
|
)
|
||
Financing activities
|
(78.4
|
)
|
|
(90.2
|
)
|
||
Foreign exchange
|
9.0
|
|
|
(23.9
|
)
|
||
Total net cash flow from continuing operations
|
54.8
|
|
|
(78.4
|
)
|
||
Net cash from discontinued operations
|
5.3
|
|
|
(0.7
|
)
|
||
Net change in cash and cash equivalents
|
$
|
60.1
|
|
|
$
|
(79.1
|
)
|
n
|
"organic revenue" and "organic orders" are defined as revenue and orders, excluding the impacts of foreign currency fluctuations, acquisitions, and divestitures. Divestitures include sales of portions of our business that did not meet the criteria for presentation as a discontinued operation. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating easier comparisons of our revenue performance with prior and future periods and to our peers. Reconciliations of organic revenue for the
three and nine months ended
September 30, 2016
are provided below.
|
Three Months Ended September 30
|
Industrial
Process
|
Motion
Technologies
|
Interconnect
Solutions
|
Control
Technologies
|
Eliminations
|
Total
ITT
|
|||||||||||||||||||||||
2016 Revenue
|
|
$
|
195.0
|
|
|
|
$
|
238.7
|
|
|
|
$
|
78.6
|
|
|
|
$
|
70.5
|
|
|
|
$
|
(1.1
|
)
|
|
|
$
|
581.7
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(40.1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(40.1
|
)
|
||||||
Foreign currency translation
|
|
5.0
|
|
|
|
(0.5
|
)
|
|
|
(1.0
|
)
|
|
|
(0.3
|
)
|
|
|
(0.1
|
)
|
|
|
3.1
|
|
||||||
2016 Organic revenue
|
|
$
|
200.0
|
|
|
|
$
|
198.1
|
|
|
|
$
|
77.6
|
|
|
|
$
|
70.2
|
|
|
|
$
|
(1.2
|
)
|
|
|
$
|
544.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015 Revenue
|
|
$
|
270.6
|
|
|
|
$
|
179.9
|
|
|
|
$
|
82.8
|
|
|
|
$
|
69.8
|
|
|
|
$
|
(1.2
|
)
|
|
|
$
|
601.9
|
|
Organic (decline) growth
|
|
(26.1
|
)%
|
|
|
10.1
|
%
|
|
|
(6.3
|
)%
|
|
|
0.6
|
%
|
|
|
|
|
|
(9.5
|
)%
|
|||||||
Nine Months Ended September 30
|
|
||||||||||||||||||||||||||||
2016 Revenue
|
|
$
|
618.0
|
|
|
|
$
|
755.3
|
|
|
|
$
|
229.8
|
|
|
|
$
|
217.2
|
|
|
|
$
|
(3.3
|
)
|
|
|
$
|
1,817.0
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(126.4
|
)
|
|
|
—
|
|
|
|
(5.4
|
)
|
|
|
—
|
|
|
|
(131.8
|
)
|
||||||
Foreign currency translation
|
|
24.0
|
|
|
|
0.1
|
|
|
|
(1.4
|
)
|
|
|
(0.5
|
)
|
|
|
—
|
|
|
|
22.2
|
|
||||||
2016 Organic revenue
|
|
$
|
642.0
|
|
|
|
$
|
629.0
|
|
|
|
$
|
228.4
|
|
|
|
$
|
211.3
|
|
|
|
$
|
(3.3
|
)
|
|
|
$
|
1,707.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015 Revenue
|
|
$
|
813.7
|
|
|
|
$
|
555.5
|
|
|
|
$
|
243.0
|
|
|
|
$
|
210.1
|
|
|
|
$
|
(3.5
|
)
|
|
|
$
|
1,818.8
|
|
Organic (decline) growth
|
|
(21.1
|
)%
|
|
|
13.2
|
%
|
|
|
(6.0
|
)%
|
|
|
0.6
|
%
|
|
|
|
|
|
(6.1
|
)%
|
Three Months Ended September 30
|
Industrial
Process
|
Motion
Technologies
|
Interconnect
Solutions
|
Control
Technologies
|
Eliminations
|
Total
ITT
|
|||||||||||||||||||||||
2016 Orders
|
|
$
|
198.9
|
|
|
|
$
|
236.8
|
|
|
|
$
|
72.1
|
|
|
|
$
|
67.1
|
|
|
|
$
|
(1.5
|
)
|
|
|
$
|
573.4
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(40.6
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(40.6
|
)
|
||||||
Foreign currency translation
|
|
2.0
|
|
|
|
(1.0
|
)
|
|
|
(0.8
|
)
|
|
|
(0.2
|
)
|
|
|
0.1
|
|
|
|
0.1
|
|
||||||
2016 Organic orders
|
|
$
|
200.9
|
|
|
|
$
|
195.2
|
|
|
|
$
|
71.3
|
|
|
|
$
|
66.9
|
|
|
|
$
|
(1.4
|
)
|
|
|
$
|
532.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015 Orders
|
|
$
|
208.9
|
|
|
|
$
|
177.5
|
|
|
|
$
|
83.5
|
|
|
|
$
|
62.1
|
|
|
|
$
|
(1.6
|
)
|
|
|
$
|
530.4
|
|
Organic (decline) growth
|
|
(3.8
|
)%
|
|
|
10.0
|
%
|
|
|
(14.6
|
)%
|
|
|
7.7
|
%
|
|
|
|
|
|
0.5
|
%
|
|||||||
Nine Months Ended September 30
|
|
||||||||||||||||||||||||||||
2016 Orders
|
|
$
|
587.4
|
|
|
|
$
|
763.4
|
|
|
|
$
|
223.3
|
|
|
|
$
|
232.3
|
|
|
|
$
|
(3.6
|
)
|
|
|
$
|
1,802.8
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(126.8
|
)
|
|
|
—
|
|
|
|
(8.8
|
)
|
|
|
—
|
|
|
|
(135.6
|
)
|
||||||
Foreign currency translation
|
|
20.2
|
|
|
|
(0.2
|
)
|
|
|
(1.2
|
)
|
|
|
(0.4
|
)
|
|
|
—
|
|
|
|
18.4
|
|
||||||
2016 Organic orders
|
|
$
|
607.6
|
|
|
|
$
|
636.4
|
|
|
|
$
|
222.1
|
|
|
|
$
|
223.1
|
|
|
|
$
|
(3.6
|
)
|
|
|
$
|
1,685.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015 Orders
|
|
$
|
703.0
|
|
|
|
$
|
561.3
|
|
|
|
$
|
249.6
|
|
|
|
$
|
214.1
|
|
|
|
$
|
(3.7
|
)
|
|
|
$
|
1,724.3
|
|
Organic (decline) growth
|
|
(13.6
|
)%
|
|
|
13.4
|
%
|
|
|
(11.0
|
)%
|
|
|
4.2
|
%
|
|
|
|
|
|
(2.2
|
)%
|
n
|
"adjusted segment operating income" is defined as operating income, adjusted to exclude special items that include, but are not limited to, restructuring and realignment costs, certain asset impairment charges, repositioning costs, certain acquisition-related expenses, and other unusual or infrequent operating items. Special items represent significant charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. We believe that adjusted segment operating income is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors.
|
Three Months Ended September 30, 2016
|
Industrial
Process
|
Motion
Technologies
|
Interconnect
Solutions
|
Control
Technologies
|
Total
Segment
|
|||||||||||||||
Segment operating income
|
|
$
|
4.3
|
|
|
$
|
45.2
|
|
|
$
|
5.8
|
|
|
$
|
11.6
|
|
|
$
|
66.9
|
|
Restructuring costs
|
|
2.9
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|||||
Other
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
1.3
|
|
|
1.9
|
|
|||||
Adjusted segment operating income
|
|
$
|
7.2
|
|
|
$
|
46.9
|
|
|
$
|
5.8
|
|
|
$
|
12.9
|
|
|
$
|
72.8
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|||||||||||||||
Segment operating income
|
|
$
|
19.6
|
|
|
$
|
144.8
|
|
|
$
|
12.6
|
|
|
$
|
34.0
|
|
|
$
|
211.0
|
|
Restructuring costs
|
|
19.9
|
|
|
2.5
|
|
|
—
|
|
|
0.9
|
|
|
23.3
|
|
|||||
Other
(a)
|
|
4.1
|
|
|
2.7
|
|
|
—
|
|
|
4.9
|
|
|
11.7
|
|
|||||
Adjusted segment operating income
|
|
$
|
43.6
|
|
|
$
|
150.0
|
|
|
$
|
12.6
|
|
|
$
|
39.8
|
|
|
$
|
246.0
|
|
(a)
|
The adjustments for Other items during 2016 primarily reflect an impairment of $4.1 recorded in the second quarter at our Industrial Process segment for trade names as result of the downturn in the upstream oil and gas market as well as realignment and acquisition-related costs in other segments.
|
Three Months Ended September 30, 2015
|
Industrial
Process |
Motion
Technologies |
Interconnect
Solutions |
Control
Technologies |
Total
Segment |
|||||||||||||||
Segment operating income
|
|
$
|
34.0
|
|
|
$
|
33.0
|
|
|
$
|
3.6
|
|
|
$
|
14.0
|
|
|
$
|
84.6
|
|
Restructuring costs
|
|
0.6
|
|
|
—
|
|
|
0.9
|
|
|
0.3
|
|
|
1.8
|
|
|||||
Other
|
|
1.3
|
|
|
2.1
|
|
|
0.1
|
|
|
0.4
|
|
|
3.9
|
|
|||||
Adjusted segment operating income
|
|
$
|
35.9
|
|
|
$
|
35.1
|
|
|
$
|
4.6
|
|
|
$
|
14.7
|
|
|
$
|
90.3
|
|
Nine Months Ended September 30, 2015
|
|
|
|
|
|
|||||||||||||||
Segment operating income
|
|
$
|
95.9
|
|
|
$
|
111.0
|
|
|
$
|
7.6
|
|
|
$
|
40.5
|
|
|
$
|
255.0
|
|
Restructuring costs
|
|
10.6
|
|
|
—
|
|
|
6.2
|
|
|
0.8
|
|
|
17.6
|
|
|||||
Other
|
|
(0.4
|
)
|
|
2.1
|
|
|
0.3
|
|
|
0.9
|
|
|
2.9
|
|
|||||
Adjusted segment operating income
|
|
$
|
106.1
|
|
|
$
|
113.1
|
|
|
$
|
14.1
|
|
|
$
|
42.2
|
|
|
$
|
275.5
|
|
n
|
"adjusted income from continuing operations" and "adjusted income from continuing operations per diluted share" are defined as income from continuing operations attributable to ITT Inc. and income from continuing operations attributable to ITT Inc. per diluted share, adjusted to exclude special items that include, but are not limited to, asbestos-related costs, repositioning costs, restructuring and realignment costs, certain asset impairment charges, certain acquisition-related expenses, income tax settlements or adjustments, and other unusual or infrequent non-operating items. Special items represent significant charges or credits, on an after-tax basis, that impact current results, which management views as unrelated to the Company's ongoing operations and performance. We believe that adjusted income from continuing operations is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors.
|
|
Three Months
|
|
Nine Months
|
||||||||||||
For the Periods Ended September 30
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Income from continuing operations attributable to ITT Inc.
|
$
|
88.3
|
|
|
$
|
96.5
|
|
|
$
|
158.3
|
|
|
$
|
275.8
|
|
Net asbestos-related benefit, net of tax (expense) of $(25.2), $(11.2), $(14.9) and $(36.9), respectively
|
(42.9
|
)
|
|
(19.1
|
)
|
|
(25.4
|
)
|
|
(62.8
|
)
|
||||
Restructuring costs, net of tax benefit of $3.3, $0.4, $6.3 and $3.0, respectively
|
0.7
|
|
|
1.4
|
|
|
17.5
|
|
|
14.8
|
|
||||
Tax-related special items
(a)
|
5.1
|
|
|
(21.2
|
)
|
|
8.6
|
|
|
(46.4
|
)
|
||||
Other special items, net of tax benefit (expense) of $1.3, $(0.4), $3.2 and $(0.3), respectively
(b)
|
0.8
|
|
|
(0.7
|
)
|
|
6.5
|
|
|
(2.4
|
)
|
||||
Adjusted income from continuing operations attributable to ITT Inc.
|
$
|
52.0
|
|
|
$
|
56.9
|
|
|
$
|
165.5
|
|
|
$
|
179.0
|
|
Income from continuing operations attributable to ITT Inc. per diluted share
|
$
|
0.98
|
|
|
$
|
1.07
|
|
|
$
|
1.76
|
|
|
$
|
3.04
|
|
Adjusted income from continuing operations attributable to ITT Inc. per diluted share
|
$
|
0.58
|
|
|
$
|
0.63
|
|
|
$
|
1.84
|
|
|
$
|
1.97
|
|
(a)
|
Tax-related special items for the
three and nine months ended
September 30, 2016
primarily relate to distributions of foreign earnings offset by a benefit for previously unrecognized tax positions. Tax-related special items for the three and nine months ended September 30, 2015 primarily related to a tax benefit for previously unrecognized tax positions, the settlement of the U.S. income tax audit and the tax impact of a change in the valuation allowance assessment.
|
(b)
|
Other special items in 2016 primarily relates to an impairment of $4.1 recorded in the second quarter at our Industrial Process segment for trade names as result of the downturn in the upstream oil and gas market and realignment and integration costs associated with our 2015 acquisitions of Hartzell and Wolverine, partially offset by the reversal of interest accruals related to uncertain tax positions taken in prior years.
|
n
|
"adjusted free cash flow" is defined as net cash provided by operating activities less capital expenditures, adjusted for cash payments for restructuring and realignment actions, repositioning costs, net asbestos cash flows and other significant items that impact current results which management views as unrelated to the Company's ongoing operations and performance. Due to other financial obligations and commitments, including asbestos, the entire free cash flow may not be available for discretionary purposes. We believe that adjusted free cash flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. A reconciliation of adjusted free cash flow is provided below.
|
For the Nine Months Ended September 30
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
$
|
146.7
|
|
|
$
|
147.1
|
|
Capital expenditures
(c)
|
(68.1
|
)
|
|
(63.8
|
)
|
||
Restructuring cash payments
|
22.7
|
|
|
19.5
|
|
||
Net asbestos cash flows
|
24.5
|
|
|
15.2
|
|
||
Realignment and other cash payments
|
4.2
|
|
|
2.4
|
|
||
Adjusted free cash flow
|
$
|
130.0
|
|
|
$
|
120.4
|
|
(c)
|
Capital expenditures for the
nine months ended September 30,
2015 reflect a reduction of $0.4 associated with repositioning activities related to the 2011 spin-off.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
PERIOD
|
TOTAL
NUMBER
OF SHARES
PURCHASED
|
AVERAGE
PRICE
PAID
PER SHARE
(1)
|
TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS
(2)
|
MAXIMUM DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS
(2)
|
|||||||||||
7/1/2016 - 7/31/2016
|
—
|
|
|
—
|
|
|
—
|
|
|
|
$
|
220.7
|
|
|
|
8/1/2016 - 8/31/2016
|
0.5
|
|
|
$
|
34.60
|
|
|
0.5
|
|
|
|
$
|
201.8
|
|
|
9/1/2016 - 9/30/2016
|
0.8
|
|
|
$
|
35.13
|
|
|
0.8
|
|
|
|
$
|
174.1
|
|
|
(1)
|
Average price paid per share is calculated on a settlement basis and includes commissions.
|
(2)
|
On October 27, 2006, our Board of Directors approved a three-year $1 billion Share Repurchase Program. On December 16, 2008, our Board of Directors modified the provisions of the Share Repurchase Program to replace the original three-year term with an indefinite term. As of
September 30, 2016
, we had repurchased
20.3
shares for
$825.9
, including commissions, under the Share Repurchase Program. The program is consistent with our capital allocation process, which has centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. Our strategy for cash flow utilization is to invest in our business, execute strategic acquisitions, pay dividends and repurchase common stock.
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
|
|
|
|
|
ITT Inc.
|
|
|
|
|
|
(Registrant)
|
|
|
|
By:
|
|
/S/ S
TEVEN
C. G
IULIANO
|
|
|
Steven C. Giuliano
|
|
|
Vice President and Chief Accounting Officer
|
|
|
(Principal accounting officer)
|
EXHIBIT NUMBER
|
|
DESCRIPTION |
|
LOCATION |
|
|
|
|
|
(10.1)*
|
|
Non-Employee Director Compensation Summary
|
|
Filed herewith.
|
|
|
|
|
|
(31.1)
|
|
Certification pursuant to Rule 13a-14(a)/15d-14 (a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
||
(31.2)
|
|
Certification pursuant to Rule 13a-14(a)/15d-14 (a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
||
(32.1)
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by
reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. |
|
|
|
||
(32.2)
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference.
|
|
|
|
|
|
(101)
|
|
The following materials from ITT Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Condensed Income Statements, (ii) Consolidated Condensed Statements of Comprehensive Income, (iii) Consolidated Condensed Balance Sheets, (iv) Consolidated Condensed Statements of Cash Flows, (v) Consolidated Condensed Statements of Changes in Shareholders' Equity, and (vi) Notes to Consolidated Condensed Financial Statements
|
|
Submitted electronically with this report.
|
Annual Retainer (cash)
|
$100,000 (paid annually)
|
|
|
Committee Chair Annual Retainer
|
|
•
Audit Committee
|
$15,000 (paid annually)
|
•
Compensation Committee
|
$10,000 (paid annually)
|
•
Governance and Nominating Committee
|
$10,000 (paid annually)
|
|
|
Non-Executive Chairman Annual Retainer
|
$125,000 (50% cash; 50% restricted stock units) (paid annually)
|
|
|
Expenses
|
Reimbursed for travel and director education.
|
|
|
Annual Equity Awards
|
Annual grant with a present value of $100,000 made on the date of the Annual Meeting of Shareholders (vests one business day prior to subsequent annual meeting). The award is in restricted stock units, valued at the fair market value of the underlying stock on the date of grant. This award may be deferred by prior election. Taxable event occurs on vesting date, unless grant is deferred. The number of shares is rounded up to the nearest share.
|
|
|
New Directors
|
All annual compensation is pro-rated for new directors.
|
/S/ D
ENISE
L. R
AMOS
|
Denise L. Ramos
|
Chief Executive Officer and President
|
/S/ T
HOMAS
M. S
CALERA
|
Thomas M. Scalera
|
Executive Vice President and
|
Chief Financial Officer
|
/S/ D
ENISE
L
.
R
AMOS
|
Denise L. Ramos
|
Chief Executive Officer and President
|
/
S
/ T
HOMAS
M. S
CALERA
|
Thomas M. Scalera
|
Executive Vice President and
|
Chief Financial Officer
|