"I think it certainly increases the competition we'll have in Spring Training for the last spot in the rotation," Indians general manager Chris Antonetti said. "We've got a good group where we've got at least 8-9 starters deep. That's one of our goals as we start out each season, that we not only have a staff capable of pitching to start the season but we can withstand the rigors of a 162-game season."
The Indians did not release financial details, but SB Nation reported that Floyd would receive a $4 million base salary, with $6 million more available based on innings pitched.
In 2013, Floyd made only five starts before undergoing Tommy John surgery on his right elbow. In 2014, he was 2-2 with a 2.65 ERA for the Atlanta Braves before sustaining a fracture in the same elbow and missing the rest of the season.
"His elbow's actually fine," Antonetti said. "We went through an extensive physical. … His ligament is strong and intact. The fracture he suffered last year is well healed. We expect him to be fully ready for Spring Training."
Floyd was the fourth overall pick in the 2001 First-Year Player Draft by the Phillies and was eventually traded to the White Sox prior to 2007. He's pitched parts of seven seasons in the American League Central.
That division figures to be as competitive as ever in 2015, with the Tigers riding a streak of four consecutive postseason appearances, the Royals coming off their run to the World Series and the White Sox spending Tuesday introducing recent acquisitions Jeff Samardzija, Melky Cabrera and David Robertson.
"No doubt the other teams in our division have certainly improved themselves over the course of the winter," Antonetti said. "That's always our expectation that teams around us will improve. We expect it to be a very competitive division and it should be a fun race to watch over the course of the summer."
To make room on the 40-man roster for Floyd, the Indians designated left-hander Nick Maronde for assignment.
Adam McCalvy is a reporter for MLB.com. Read his blog, Brew Beat, and follow him on Twitter at @AdamMcCalvy. This story was not subject to the approval of Major League Baseball or its clubs.