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Change in Accounting Principles (Notes) | 9 Months Ended
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Sep. 30, 2017
Accounting Changes [Abstract] |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2 - Change in Accounting Principles Effective January 1, 2017, the Company voluntarily changed its accounting principles for recognizing actuarial gains and losses and expected returns on plan assets for its defined benefit pension and other postretirement benefit plans, with retrospective application to prior periods. Prior to 2017, the Company amortized, as a component of pension and other postretirement expense, unrecognized actuarial gains and losses (included within accumulated other comprehensive income (loss)) over the average remaining service period of active plan participants expected to receive benefits under the plan, or average remaining life expectancy of inactive plan participants when all or almost all of individual plan participants were inactive. The Company also historically calculated the market-related value of plan assets based on a five-year market adjustment. Under the new principles, actuarial gains and losses will be immediately recognized through net periodic benefit cost in the Statement of Income, upon the annual remeasurement in the fourth quarter, or on an interim basis if specific events trigger a remeasurement. In addition, the Company has changed its accounting policy for measuring the market-related value of plan assets from a calculated amount (based on a five-year smoothing of asset returns) to fair value. The Company believes these changes are preferable as they result in an accelerated recognition of actuarial gains and losses and changes in fair value of plan assets in its Consolidated Statement of Income, which provides greater transparency and better aligns with fair value principles by fully reflecting the impact of interest rate and economic changes on the Company's pension and other postretirement benefit liabilities and assets in the Company's operating results in the year in which the gains and losses are incurred. As of January 1, 2017, the cumulative effect of the change in accounting principles resulted in a decrease of $239 million in earnings invested in the business and a corresponding increase of $244 million in accumulated other comprehensive loss that was partially offset by the net impact of the direct effects of these changes on inventory and deferred taxes of $5 million. The following tables reflect the changes to financial statement line items as a result of the change in accounting principles for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statements of Income:
| Three Months Ended
| September 30, 2017 |  | September 30, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change |  | As Previously Reported | Revised | Effect of Accounting Change
Cost of products sold | $ | 556.7 |  | $ | 554.4 |  | $ | (2.3 | ) |  | $ | 489.9 |  | $ | 487.7 |  | $ | (2.2 | )
Gross profit | 214.7 |  | 217.0 |  | 2.3 |  |  | 167.5 |  | 169.7 |  | 2.2 |
Selling, general and administrative expense | 136.8 |  | 134.0 |  | (2.8 | ) |  | 109.5 |  | 107.2 |  | (2.3 | )
Pension settlement expenses | 3.9 |  | — |  | (3.9 | ) |  | 10.3 |  | 0.1 |  | (10.2 | )
Operating income | 72.7 |  | 81.7 |  | 9.0 |  |  | 42.4 |  | 57.1 |  | 14.7 |
Income before income taxes | 66.2 |  | 75.2 |  | 9.0 |  |  | 34.5 |  | 49.2 |  | 14.7 |
Provision for income taxes | 18.0 |  | 21.1 |  | 3.1 |  |  | 13.5 |  | 15.2 |  | 1.7 |
Net income | 48.2 |  | 54.1 |  | 5.9 |  |  | 21.0 |  | 34.0 |  | 13.0 |
Net income attributable to The Timken Company | $ | 47.6 |  | $ | 53.5 |  | $ | 5.9 |  |  | $ | 20.6 |  | $ | 33.6 |  | $ | 13.0 |
Basic earnings per share | $ | 0.61 |  | $ | 0.69 |  | $ | 0.08 |  |  | $ | 0.26 |  | $ | 0.43 |  | $ | 0.17 |
Diluted earnings per share | $ | 0.60 |  | $ | 0.68 |  | $ | 0.08 |  |  | $ | 0.26 |  | $ | 0.43 |  | $ | 0.17 |
Consolidated Statements of Income:
| Nine Months Ended
| September 30, 2017 |  | September 30, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change |  | As Previously Reported | Revised | Effect of Accounting Change
Cost of products sold | $ | 1,630.9 |  | $ | 1,626.5 |  | $ | (4.4 | ) |  | $ | 1,484.3 |  | $ | 1,477.7 |  | $ | (6.6 | )
Gross profit | 594.9 |  | 599.3 |  | 4.4 |  |  | 530.7 |  | 537.3 |  | 6.6 |
Selling, general and administrative expense | 383.8 |  | 377.4 |  | (6.4 | ) |  | 338.0 |  | 331.3 |  | (6.7 | )
Pension settlement expenses | 15.7 |  | — |  | (15.7 | ) |  | 11.9 |  | 1.3 |  | (10.6 | )
Operating income | 191.6 |  | 218.1 |  | 26.5 |  |  | 162.1 |  | 186.0 |  | 23.9 |
Income before income taxes | 176.2 |  | 202.7 |  | 26.5 |  |  | 189.9 |  | 213.8 |  | 23.9 |
Provision for income taxes | 19.3 |  | 28.5 |  | 9.2 |  |  | 61.1 |  | 65.8 |  | 4.7 |
Net income | 156.9 |  | 174.2 |  | 17.3 |  |  | 128.8 |  | 148.0 |  | 19.2 |
Net income attributable to The Timken Company | $ | 156.9 |  | $ | 174.2 |  | $ | 17.3 |  |  | $ | 128.5 |  | $ | 147.7 |  | $ | 19.2 |
Basic earnings per share | $ | 2.02 |  | $ | 2.24 |  | $ | 0.22 |  |  | $ | 1.63 |  | $ | 1.87 |  | $ | 0.24 |
Diluted earnings per share | $ | 1.99 |  | $ | 2.21 |  | $ | 0.22 |  |  | $ | 1.62 |  | $ | 1.86 |  | $ | 0.24 |
Consolidated Statements of Comprehensive Income:
| Three Months Ended
| September 30, 2017 |  | September 30, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change |  | As Previously Reported | Revised | Effect of Accounting Change
Net Income | $ | 48.2 |  | $ | 54.1 |  | $ | 5.9 |  |  | $ | 21.0 |  | $ | 34.0 |  | $ | 13.0 |
Foreign currency translation adjustments | 10.9 |  | 10.9 |  | — |  |  | 2.2 |  | 3.7 |  | 1.5 |
Pension and postretirement liability adjustment | 6.0 |  | 0.1 |  | (5.9 | ) |  | 15.0 |  | 0.4 |  | (14.6 | )
Other comprehensive income, net of tax | 14.9 |  | 9.0 |  | (5.9 | ) |  | 17.2 |  | 4.1 |  | (13.1 | )
Comprehensive Income, net of tax | 63.1 |  | 63.1 |  | — |  |  | 38.2 |  | 38.1 |  | (0.1 | )
Less: comprehensive income attributable to noncontrolling interest | 0.5 |  | 0.5 |  | — |  |  | 0.9 |  | 1.0 |  | 0.1 |
Comprehensive income attributable to The Timken Company | $ | 62.6 |  | $ | 62.6 |  | $ | — |  |  | $ | 37.3 |  | $ | 37.1 |  | $ | (0.2 | )
| Nine Months Ended
| September 30, 2017 |  | September 30, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change |  | As Previously Reported | Revised | Effect of Accounting Change
Net Income | $ | 156.9 |  | $ | 174.2 |  | $ | 17.3 |  |  | $ | 128.8 |  | $ | 148.0 |  | $ | 19.2 |
Foreign currency translation adjustments | 42.8 |  | 42.8 |  | — |  |  | (1.4 | ) | 5.2 |  | 6.6 |
Pension and postretirement liability adjustment | 17.5 |  | 0.2 |  | (17.3 | ) |  | 27.0 |  | 1.2 |  | (25.8 | )
Other comprehensive income, net of tax | 56.1 |  | 38.8 |  | (17.3 | ) |  | 24.0 |  | 4.8 |  | (19.2 | )
Comprehensive Income, net of tax | 213.0 |  | 213.0 |  | — |  |  | 152.8 |  | 152.8 |  | — |
Less: comprehensive income attributable to noncontrolling interest | 1.9 |  | 1.9 |  | — |  |  | 2.1 |  | 2.2 |  | 0.1 |
Comprehensive income attributable to The Timken Company | $ | 211.1 |  | $ | 211.1 |  | $ | — |  |  | $ | 150.7 |  | $ | 150.6 |  | $ | (0.1 | )
Consolidated Balance Sheets:
| September 30, 2017 | December 31, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change | As Previously Reported | Revised | Effect of Accounting Change
Inventories, net | $ | 679.6 |  | $ | 687.5 |  | $ | 7.9 |  | $ | 545.8 |  | $ | 553.7 |  | $ | 7.9 |
Total current assets | 1,466.4 |  | 1,474.3 |  | 7.9 |  | 1,204.0 |  | 1,211.9 |  | 7.9 |
Deferred income taxes | 50.9 |  | 47.9 |  | (3.0 | ) | 54.4 |  | 51.4 |  | (3.0 | )
Total other assets | 1,050.1 |  | 1,047.1 |  | (3.0 | ) | 749.9 |  | 746.9 |  | (3.0 | )
Total assets | 3,358.7 |  | 3,363.6 |  | 4.9 |  | 2,758.3 |  | 2,763.2 |  | 4.9 |
Earnings invested in the business | 1,622.2 |  | 1,400.2 |  | (222.0 | ) | 1,528.6 |  | 1,289.3 |  | (239.3 | )
Accumulated other comprehensive loss | (267.8 | ) | (41.0 | ) | 226.8 |  | (322.0 | ) | (77.9 | ) | 244.1 |
Total shareholders' equity | 1,418.2 |  | 1,423.0 |  | 4.8 |  | 1,274.9 |  | 1,279.7 |  | 4.8 |
Noncontrolling interest | 32.8 |  | 32.9 |  | 0.1 |  | 31.1 |  | 31.2 |  | 0.1 |
Total equity | 1,451.0 |  | 1,455.9 |  | 4.9 |  | 1,306.0 |  | 1,310.9 |  | 4.9 |
Total liabilities and shareholders' equity | $ | 3,358.7 |  | $ | 3,363.6 |  | $ | 4.9 |  | $ | 2,758.3 |  | $ | 2,763.2 |  | $ | 4.9 |
Consolidated Statements of Cash Flows:
| Nine Months Ended
| September 30, 2017 |  | September 30, 2016
| Previous Accounting Method | As Reported | Effect of Accounting Change |  | As Previously Reported | Revised | Effect of Accounting Change
Net income attributable to The Timken Company | $ | 156.9 |  | $ | 174.2 |  | $ | 17.3 |  |  | $ | 128.5 |  | $ | 147.7 |  | $ | 19.2 |
Deferred income tax (benefit) provision | (1.7 | ) | 7.5 |  | 9.2 |  |  | (0.1 | ) | 4.6 |  | 4.7 |
Pension and other postretirement expense | 39.1 |  | 12.6 |  | (26.5 | ) |  | 38.4 |  | 14.5 |  | (23.9 | )

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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