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Acquisitions and Divestitures | 9 Months Ended
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Sep. 30, 2017
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | Note 4 - Acquisitions During the first nine months of 2017, the Company completed three acquisitions. On July 3, 2017, the Company completed the acquisition of Groeneveld Group ("Groeneveld"), a leading provider of automatic lubrication solutions used in on- and off-highway applications. On May 5, 2017, the Company completed the acquisition of the assets of PT Tech, Inc. ("PT Tech"), a manufacturer of engineered clutches, brakes, hydraulic power take-off units and other torque management devices used in mining, aggregate, wood recycling and metals industries. On April 3, 2017, the Company completed the acquisition of Torsion Control Products, Inc. ("Torsion Control Products"), a manufacturer of engineered torsional couplings used in the construction, agriculture and mining industries. Aggregate sales for these companies for the most recent twelve months prior to their respective acquisitions totaled approximately $146.2 million. The total purchase price for these acquisitions was $346.6 million, net of $35.0 million cash received. The Company incurred acquisition-related costs of $3.6 million to complete these acquisitions. The 2017 acquisitions are subject to post-closing purchase price allocation adjustments. Based on markets and customers served, substantially all of the results for Groeneveld, PT Tech and Torsion Control Products are reported in the Mobile Industries segment. The following table presents the initial purchase price allocation for acquisitions in 2017:
| Initial Purchase Price Allocation
Assets: |
Accounts receivable, net | $ | 27.6 |
Inventories, net | 29.1 |
Other current assets | 4.7 |
Property, plant and equipment, net | 31.6 |
Goodwill | 147.6 |
Other intangible assets | 175.3 |
Other non-current assets | 1.9 |
Total assets acquired | $ | 417.8 |
Liabilities: |
Accounts payable, trade | $ | 9.5 |
Salaries, wages and benefits | 5.8 |
Other current liabilities | 8.2 |
Short-term debt | 1.0 |
Long-term debt | 2.0 |
Deferred income taxes | 42.4 |
Other non-current liabilities | 2.3 |
Total liabilities assumed | $ | 71.2 |
Net assets acquired | $ | 346.6 |
The following table summarizes the initial purchase price allocation for identifiable intangible assets acquired in 2017:
| Initial Purchase Price Allocation
|  | Weighted - Average Life
Trade names (indefinite life) | $ | 33.4 |  | Indefinite
Trade names (finite life) | 2.2 |  | 13 years
Technology and know-how | 29.9 |  | 16 years
Customer relationships | 108.2 |  | 17 years
Other | 0.2 |  | 5 years
Capitalized software | 1.4 |  | 3 years
Total intangible assets | $ | 175.3 |  |
On July 5, 2017, the Company announced that the Company's majority-owned subsidiary, Timken India Ltd. ("Timken India"), entered into a definitive agreement to acquire ABC Bearings Limited ("ABC Bearings"). Timken India is a public limited company listed on the National Stock Exchange of India Limited and BSE Limited. ABC Bearings is a manufacturer of tapered, cylindrical and spherical roller bearings and slewing rings in India. The transaction is structured as a merger of ABC Bearings into Timken India, whereby shareholders of ABC Bearings will receive shares of Timken India as consideration. The transaction is subject to receipt of various approvals in India, which are expected to be completed in the first half of 2018. ABC Bearings, located in Mumbai, India, operates primarily out of manufacturing facilities in Bharuch, Gujarat and Dehradun, Uttarakhand and had annual sales of approximately $29 million for the twelve months ended March 31, 2017. During 2016, the Company completed two acquisitions. On October 31, 2016, the Company completed the acquisition of EDT Corp. ("EDT"), a manufacturer of polymer housed units and stainless steel ball bearings used primarily in the food and beverage industry. On July 8, 2016, the Company completed the acquisition of Lovejoy Inc. ("Lovejoy"), a manufacturer of premium industrial couplings and universal joints. In January 2017, the Company paid a net purchase price adjustment of $0.6 million in connection with the EDT acquisition, resulting in an adjustment to goodwill. During the second quarter of 2017, the Company re-evaluated the fair value of certain contingent liabilities assumed in the Lovejoy acquisition, resulting in adjustments to other current assets, goodwill, other current liabilities and other non-current liabilities. The following table presents the final purchase price allocation for both the Lovejoy and the EDT acquisitions:
| Initial Purchase Price Allocation | Adjustment | Final Purchase Price Allocation
Assets: |  |  |
Accounts receivable, net | $ | 8.4 |  |  | $ | 8.4 |
Inventories, net | 17.8 |  |  | 17.8 |
Other current assets | 5.3 |  | (0.2 | ) | 5.1 |
Property, plant and equipment, net | 16.5 |  |  | 16.5 |
Goodwill | 29.9 |  | (1.1 | ) | 28.8 |
Other intangible assets | 27.9 |  |  | 27.9 |
Other non-current assets | 0.1 |  |  | 0.1 |
Total assets acquired | $ | 105.9 |  | $ | (1.3 | ) | $ | 104.6 |
Liabilities: |  |  |
Accounts payable, trade | $ | 8.1 |  |  | $ | 8.1 |
Salaries, wages and benefits | 1.3 |  |  | 1.3 |
Other current liabilities | 4.4 |  | (0.6 | ) | 3.8 |
Long-term debt | 2.2 |  |  | 2.2 |
Deferred taxes | 10.4 |  |  | 10.4 |
Other non-current liabilities | 7.6 |  | (1.3 | ) | 6.3 |
Total liabilities assumed | $ | 34.0 |  | $ | (1.9 | ) | $ | 32.1 |
Net assets acquired | $ | 71.9 |  | $ | 0.6 |  | $ | 72.5 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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