Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'SCHWEITZER MAUDUIT INTERNATIONAL INC | ' |
Entity Central Index Key | '0001000623 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 31,399,480 |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Sales | $185.30 | $195.90 | $576.30 | $583.80 |
Cost of products sold | 122.1 | 129.6 | 385.5 | 389.6 |
Gross Profit | 63.2 | 66.3 | 190.8 | 194.2 |
Selling expense | 4.7 | 4.1 | 15.2 | 15.3 |
Research expense | 3.6 | 2.4 | 11.1 | 7.2 |
General expense | 12.5 | 12.4 | 36 | 37.5 |
Total nonmanufacturing expenses | 20.8 | 18.9 | 62.3 | 60 |
Restructuring and impairment expense | 0.6 | -2 | 2.9 | 22 |
Operating Profit | 41.8 | 49.4 | 125.6 | 112.2 |
Interest expense | 0.6 | 0.7 | 2 | 2.5 |
Other income (expense), net | 0.5 | 0.4 | 3 | 0 |
Income from Continuing Operations before Income Taxes and Income from Equity Affiliates | 41.7 | 49.1 | 126.6 | 109.7 |
Provision for income taxes | 13.8 | 16.7 | 40 | 37.6 |
Income from equity affiliates | 1.7 | 1.3 | 3.1 | 2.2 |
Income from Continuing Operations | 29.6 | 33.7 | 89.7 | 74.3 |
Loss from Discontinued Operations | -0.5 | -6 | -3.9 | -11 |
Net Income | $29.10 | $27.70 | $85.80 | $63.30 |
Net Income (Loss) per Share - Basic: | ' | ' | ' | ' |
Income per share from continuing operations | $0.94 | $1.08 | $2.86 | $2.36 |
Loss per share from discontinued operations | ($0.01) | ($0.19) | ($0.12) | ($0.35) |
Net income per share - basic | $0.93 | $0.89 | $2.74 | $2.01 |
Net Income (Loss) per Share - Diluted: | ' | ' | ' | ' |
Income per share from continuing operations | $0.93 | $1.06 | $2.84 | $2.33 |
Loss per share from discontinued operations | ($0.01) | ($0.19) | ($0.12) | ($0.35) |
Net income per share - diluted | $0.92 | $0.87 | $2.72 | $1.98 |
Weighted Average Shares Outstanding: | ' | ' | ' | ' |
Basic | 31,092,600 | 30,659,900 | 31,042,200 | 31,097,400 |
Diluted | 31,280,300 | 31,052,600 | 31,213,300 | 31,460,300 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $29.10 | $27.70 | $85.80 | $63.30 |
Other Comprehensive Income (Loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 16 | 12.7 | 0 | 1.7 |
Less: Reclassification adjustment for realized translation adjustments | 0 | 0 | -1.1 | 0 |
Unrealized losses on derivative instruments | 0 | -0.1 | -4.7 | -0.5 |
Less: Reclassification adjustment for gains and losses on derivative instruments included in net income | 0.4 | 0 | -0.1 | -1.6 |
Net gain from postretirement benefit plans | 1.7 | 2.3 | 1.7 | 6.2 |
Less: Amortization of postretirement benefit plans' costs included in net periodic benefit cost | -1.4 | -1.5 | 0.7 | -4.6 |
Other Comprehensive Income (Loss) | 16.7 | 13.4 | -3.5 | 1.2 |
Comprehensive Income | $45.80 | $41.10 | $82.30 | $64.50 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $222.50 | $151.20 |
Accounts receivable, net | 100.7 | 95.4 |
Inventories | 111 | 111.6 |
Income taxes receivable | 4.5 | 0 |
Current deferred income tax benefits | 9.3 | 13.5 |
Other current assets | 8.1 | 10.3 |
Total Current Assets | 456.1 | 382 |
Property, Plant and Equipment, net | 384.6 | 401.4 |
Deferred Income Tax Benefits | 7 | 10.5 |
Investment in Equity Affiliates | 61.7 | 61.2 |
Goodwill and Intangible Assets | 6 | 6.1 |
Other Assets | 25.4 | 25.5 |
Total Assets | 940.8 | 886.7 |
Current Liabilities | ' | ' |
Current debt | 4.6 | 4.2 |
Accounts payable | 35.8 | 45.6 |
Income taxes payable | 0 | 1.3 |
Accrued expenses | 81.7 | 75.8 |
Total Current Liabilities | 122.1 | 126.9 |
Long-Term Debt | 146.6 | 151.8 |
Pension and Other Postretirement Benefits | 38.4 | 41.5 |
Deferred Income Tax Liabilities | 37.1 | 28.4 |
Other Liabilities | 29.6 | 26.3 |
Total Liabilities | 373.8 | 374.9 |
Net Income Per Share [Abstract] | ' | ' |
Preferred stock, $0.10 par value; 10,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.10 par value; 100,000,000 shares authorized; 31,399,180 and 31,209,866 shares issued at September 30, 2013 and December 31, 2012, respectively; 31,399,180 and 31,201,106 shares outstanding at September 30, 2013 and December 31, 2012, respectively | 3.1 | 3.1 |
Additional paid-in-capital | 41.9 | 41 |
Common stock in treasury, at cost, 8,760 shares at December 31, 2012 | 0 | -0.3 |
Retained earnings | 540.9 | 483.4 |
Accumulated other comprehensive income (loss), net of tax | -18.9 | -15.4 |
Total Stockholders' Equity | 567 | 511.8 |
Total Liabilities and Stockholders' Equity | $940.80 | $886.70 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock (dollars per share) | $0.10 | $0.10 |
Preferred shares authorized | 10,000,000 | 10,000,000 |
Common stock | $0.10 | $0.10 |
Common shares authorized | 100,000,000 | 100,000,000 |
Common shares issued | 31,399,180 | 31,209,866 |
Common stock outstanding | 31,399,180 | 31,201,106 |
Common stock in treasury | 0 | 8,760 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Millions, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $475.90 | $3.80 | $211.70 | ($132.10) | $417 | ($24.50) |
Balance (in Shares) at Dec. 31, 2011 | ' | 37,587,298 | ' | 5,220,414 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 63.3 | ' | ' | ' | 63.3 | ' |
Other comprehensive income (loss), net of tax | 1.2 | ' | ' | ' | ' | 1.2 |
Dividends declared | -9.4 | ' | ' | ' | -9.4 | ' |
Restricted stock issuances, net | 0 | ' | -3.4 | 3.4 | ' | ' |
Restricted stock issuances, net (in shares) | ' | ' | ' | -137,026 | ' | ' |
Stock-based employee compensation expense | 4.5 | ' | 4.5 | ' | ' | ' |
Excess tax benefits of stock-based employee compensation | 0.1 | ' | 0.1 | ' | ' | ' |
Stock issued to directors as compensation | 0 | ' | 0 | ' | ' | ' |
Stock issued to directors as compensation (in shares) | ' | 1,324 | ' | ' | ' | ' |
Issuance of shares for options exercised | 0.1 | ' | 0.1 | ' | ' | ' |
Issuance of shares for options exercised (in shares) | ' | 11,100 | ' | 0 | ' | ' |
Purchases of treasury stock | -50 | ' | ' | -50 | ' | ' |
Purchases of treasury stock (in shares) | ' | ' | ' | 1,481,482 | ' | ' |
Stockholders' Equity, Other Shares | ' | -6,556,110 | ' | ' | ' | ' |
Stock Issued During Period, Value, Stock Dividend | ' | -0.7 | ' | ' | 0.7 | ' |
Stock Issued During Period, Value, Treasury Stock Reissued | 0 | ' | -178.4 | 178.4 | ' | ' |
Stock Issued During Period, Shares, Treasury Stock Reissued | ' | ' | ' | -6,556,110 | ' | ' |
Balance at Sep. 30, 2012 | 485.7 | 3.1 | 34.6 | -0.3 | 471.6 | -23.3 |
Balance (in Shares) at Sep. 30, 2012 | ' | 31,043,612 | ' | 8,760 | ' | ' |
Balance at Dec. 31, 2012 | 511.8 | 3.1 | 41 | -0.3 | 483.4 | -15.4 |
Balance (in Shares) at Dec. 31, 2012 | ' | 31,209,866 | ' | 8,760 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 85.8 | ' | ' | ' | 85.8 | ' |
Other comprehensive income (loss), net of tax | -3.5 | ' | ' | ' | ' | -3.5 |
Dividends declared | -28.3 | ' | ' | ' | -28.3 | ' |
Restricted stock issuances, net | 0 | ' | -0.2 | 0.2 | ' | ' |
Restricted stock issuances, net (in shares) | ' | 214,461 | ' | -5,000 | ' | ' |
Stock-based employee compensation expense | 2 | ' | 2 | ' | ' | ' |
Excess tax benefits of stock-based employee compensation | 0.5 | ' | 0.5 | ' | ' | ' |
Stock issued to directors as compensation | 0.1 | ' | 0.1 | ' | ' | ' |
Stock issued to directors as compensation (in shares) | ' | 1,071 | ' | ' | ' | ' |
Issuance of shares for options exercised | 0.3 | ' | 0.3 | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | -47,218 | ' | -47,218 | ' | ' |
Treasury Stock, Retired, Cost Method, Amount | 0 | ' | -1.8 | 1.8 | ' | ' |
Issuance of shares for options exercised (in shares) | ' | 21,000 | ' | ' | ' | ' |
Purchases of treasury stock | -1.7 | ' | ' | -1.7 | ' | ' |
Purchases of treasury stock (in shares) | ' | ' | ' | 43,458 | ' | ' |
Balance at Sep. 30, 2013 | $567 | $3.10 | $41.90 | $0 | $540.90 | ($18.90) |
Balance (in Shares) at Sep. 30, 2013 | ' | 31,399,180 | ' | 0 | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Dividends declared | $0.90 | $0.30 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operations | ' | ' |
Net income | $85.80 | $63.30 |
Less: Income (loss) from discontinued operations | -3.9 | -11 |
Income from Continuing Operations | 89.7 | 74.3 |
Non-cash items included in net income: | ' | ' |
Depreciation and amortization | 27 | 28.7 |
Impairment | 0 | 20 |
Deferred income tax provision (benefit) | 12.8 | 8.6 |
Pension and other postretirement benefits | 3.4 | 1.6 |
Stock-based compensation | 2 | 4.5 |
Income from equity affiliates | 0.5 | 0.8 |
Excess tax benefits of stock-based awards | -0.5 | -0.1 |
Other items | 2.3 | -1.2 |
Changes in operating working capital | ' | ' |
Accounts receivable | -6.9 | 3.8 |
Inventories | -0.4 | -7.4 |
Prepaid expenses | 0.1 | -0.3 |
Accounts payable | -6.7 | -3.7 |
Accrued expenses | 3.4 | -3.8 |
Accrued incomes taxes | -5.5 | 2.4 |
Net changes in operating working capital | -16 | -9 |
Net cash provided (used) by operating activities of: | ' | ' |
- Continuing operations | 121.2 | 128.2 |
- Discontinued operations | 1.9 | -2.8 |
Cash Provided by Operations | 123.1 | 125.4 |
Investing | ' | ' |
Capital spending | -20.2 | -20.4 |
Capitalized software costs | -0.4 | -0.5 |
Investment in equity affiliates, net | 0 | -21 |
Other investing | 0.5 | -4.1 |
Cash Used for Investing | -20.1 | -46 |
Financing | ' | ' |
Cash dividends paid to SWM stockholders | -28.3 | -9.4 |
Changes in short-term debt | 0.4 | 1.3 |
Proceeds from issuances of long-term debt | 53.4 | 39.8 |
Payments on long-term debt | -59.5 | -20.3 |
Purchases of treasury stock | -1.7 | -50 |
Proceeds from exercise of stock options | 0.3 | 0.1 |
Excess tax benefits of stock-based awards | 0.5 | 0.1 |
Cash Used in Financing | -34.9 | -38.4 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 3.2 | 0.3 |
Increase (Decrease) in Cash and Cash Equivalents | 71.3 | 41.3 |
Cash and Cash Equivalents at beginning of period | 151.2 | 76.5 |
Cash and Cash Equivalents at end of period | $222.50 | $117.80 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Nature of Business [Abstract] | ' |
Nature of Business | ' |
General | |
Nature of Business | |
Schweitzer-Mauduit International, Inc., or SWM or the Company, is a multinational diversified producer of premium specialty papers headquartered in the United States of America. The Company manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products for use in other applications. The Company’s tobacco-related products include cigarette, plug wrap and base tipping papers, or Cigarette Papers, used to wrap various parts of a cigarette, reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes and reconstituted tobacco wrappers and binders for machine-made cigars. These products are sold directly to the major tobacco companies or their designated converters in the Americas, Europe, Asia and elsewhere. Non-tobacco industry products are a diverse mix of products, certain of which represent commodity paper grades produced to maximize machine operations. | |
The Company is a manufacturer of high porosity papers, which are used in manufacturing ventilated cigarettes, banded and print banded papers for the production of lower ignition propensity, or LIP, cigarettes and the leading independent producer of RTL used in producing blended cigarettes. The Company conducts business in over 90 countries and currently operates nine production locations worldwide, with mills in the United States, France, Brazil and Poland. The Company also has a 50% equity interest in two joint ventures in China. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and the notes thereto have been prepared in accordance with the instructions of Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission, or the SEC, and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America, or U.S. GAAP. However, such information reflects all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods including the results of a business reclassified as a discontinued operation which is more fully described in Note 3. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 1, 2013. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. The Company’s share of the net income of its 50% owned joint ventures in China are included in the consolidated statements of income as income from equity affiliates. Intercompany balances and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, inventory valuation, useful lives of tangible and intangible assets, fair values, sales returns, receivables valuation, pension, postretirement and other benefits, restructuring and impairment, taxes and contingencies. Actual results could differ materially from those estimates. | |
Recent Accounting Pronouncements | |
On January 1, 2013, the Company adopted Financial Accounting Standards Board's Accounting Standards Update (ASU) 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. The ASU amends and clarifies disclosure requirements for reclassifications from Other Comprehensive Income. The adoption of this guidance expanded the disclosure included in Note 2. Other Comprehensive Income, but it did not have a material impact on our condensed consolidated financial statements. |
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | |||||||||||||||||||||||
Other Comprehensive Income | ||||||||||||||||||||||||
Comprehensive income includes net income, as well as items charged and credited directly to stockholders' equity, which are excluded from net income. The Company has presented comprehensive income in the condensed consolidated statements of comprehensive income (loss). Reclassification adjustments of derivative instruments are presented in Net Sales in the condensed consolidated statements of income. See Note 9. Derivatives for additional information. Amortization of accumulated pension and other post-employment benefit (OPEB) liabilities are included in the computation of net periodic pension and OPEB costs, which are more fully discussed in Note 11. Postretirement and Other Benefits. | ||||||||||||||||||||||||
Components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||
Accumulated pension and OPEB liability adjustments, net of income tax of $22.5 million and $23.3 million at September 30, 2013 and December 31, 2012, respectively | $ | (40.8 | ) | $ | (43.2 | ) | ||||||||||||||||||
Accumulated unrealized loss on derivative instruments, net of income tax benefit of $0.3 million and $1.5 million at September 30, 2013 and December 31, 2012, respectively | (6.2 | ) | (1.4 | ) | ||||||||||||||||||||
Accumulated unrealized foreign currency translation adjustments | 28.1 | 29.2 | ||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (18.9 | ) | $ | (15.4 | ) | ||||||||||||||||||
Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | (0.1 | ) | $ | 0.4 | $ | 0.3 | $ | 1.5 | $ | (0.7 | ) | $ | 0.8 | ||||||||||
Unrealized loss on derivative instruments | 0.8 | (0.4 | ) | 0.4 | (0.2 | ) | 0.1 | (0.1 | ) | |||||||||||||||
Unrealized foreign currency translation adjustments | 16 | — | 16 | 12.7 | — | 12.7 | ||||||||||||||||||
Total | $ | 16.7 | $ | — | $ | 16.7 | $ | 14 | $ | (0.6 | ) | $ | 13.4 | |||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | 3.2 | $ | (0.8 | ) | $ | 2.4 | $ | 2.6 | $ | (1.0 | ) | $ | 1.6 | ||||||||||
Unrealized loss on derivative instruments | (3.6 | ) | (1.2 | ) | (4.8 | ) | (3.2 | ) | 1.1 | (2.1 | ) | |||||||||||||
Unrealized foreign currency translation adjustments | (1.1 | ) | — | (1.1 | ) | 1.7 | — | 1.7 | ||||||||||||||||
Total | $ | (1.5 | ) | $ | (2.0 | ) | $ | (3.5 | ) | $ | 1.1 | $ | 0.1 | $ | 1.2 | |||||||||
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Discontinued Operations | ' | |||||||||||||||
Discontinued Operations | ||||||||||||||||
The Company's former paper mill in Medan, Indonesia and closed paper mill in San Pedro, Philippines have been reported as discontinued operations. The sale of the Indonesian mill was finalized in the second quarter of 2013 and a $1.6 million non-cash loss was recorded in discontinued operations. For all periods presented, results of both of these mills have been removed from each individual line within the statements of income and the operating activities section of the statements of cash flow. In each case, a separate line has been added for the net results of discontinued operations. | ||||||||||||||||
In the consolidated balance sheets, the assets and liabilities of the Indonesia mill were classified as Held-for-Sale as of December 31, 2012 and therefore, except for cash and cash equivalents, assets and liabilities of the Indonesian mill were included in other current assets and accrued expenses, respectively, since December 31, 2012. Property, plant and equipment, net, of the Philippines mill was classified as Held-for-Sale and has been included in other current assets since March 31, 2013. Prior year balances have not been reclassified in the consolidated balance sheets. | ||||||||||||||||
Included in Other Current Assets and Accrued Expenses within the condensed consolidated balance sheet are the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Assets of discontinued operations: | ||||||||||||||||
Current assets | $ | 1.5 | $ | 7.7 | ||||||||||||
Property, Plant and Equipment, net | 4.6 | — | ||||||||||||||
Noncurrent deferred income tax benefits | — | 0.8 | ||||||||||||||
Other assets | 3.4 | 0.2 | ||||||||||||||
Liabilities of discontinued operations: | ||||||||||||||||
Current liabilities | 1.2 | 2.1 | ||||||||||||||
Summary financial results of discontinued operations were as follows ($ in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||
Net sales | $ | 0.6 | $ | 6.1 | $ | 7 | $ | 19.1 | ||||||||
Restructuring and impairment expense | — | 3.4 | 1.4 | 3.4 | ||||||||||||
Loss on disposal | — | — | (1.6 | ) | — | |||||||||||
Loss from discontinued operations before income taxes | (0.1 | ) | (5.9 | ) | (4.1 | ) | (8.6 | ) | ||||||||
Income tax (provision) benefit | (0.4 | ) | (0.1 | ) | 0.2 | (2.4 | ) | |||||||||
Loss from discontinued operations | (0.5 | ) | (6.0 | ) | (3.9 | ) | (11.0 | ) | ||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||||
Net Income Per Share | ||||||||||||||||
The Company uses the two-class method to calculate earnings per share. The Company has granted restricted stock that contains nonforfeitable rights to dividends on unvested shares. Since these unvested shares are considered participating securities under the two-class method, the Company allocates earnings per share to common stock and participating securities according to dividends declared and participation rights in undistributed earnings. | ||||||||||||||||
Diluted net income per common share is computed based on net income divided by the weighted average number of common and potential common shares outstanding. Potential common shares during the respective periods are those related to dilutive stock-based compensation, including long-term share-based incentive compensation, stock options outstanding, and directors’ accumulated deferred stock compensation which may be received by the directors in the form of stock or cash. A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator (basic and diluted): | ||||||||||||||||
Net income | $ | 29.1 | $ | 27.7 | $ | 85.8 | $ | 63.3 | ||||||||
Less: Dividends paid to participating securities | (0.1 | ) | — | (0.2 | ) | (0.1 | ) | |||||||||
Less: Undistributed earnings available to participating securities | (0.2 | ) | (0.3 | ) | (0.6 | ) | (0.7 | ) | ||||||||
Undistributed and distributed earnings available to common stockholders | $ | 28.8 | $ | 27.4 | $ | 85 | $ | 62.5 | ||||||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding | 31,092.60 | 30,659.90 | 31,042.20 | 31,097.40 | ||||||||||||
Effect of dilutive stock-based compensation | 187.7 | 392.7 | 171.1 | 362.9 | ||||||||||||
Average number of common and potential common shares outstanding | 31,280.30 | 31,052.60 | 31,213.30 | 31,460.30 | ||||||||||||
There were no anti-dilutive stock options during the three and nine month periods ended September 30, 2013 or 2012. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are valued at the lower of cost using the First-In, First-Out, or FIFO, and weighted average methods, or market. The Company's costs included in inventory primarily include pulp, chemicals, direct labor, utilities, maintenance, depreciation, finishing supplies and an allocation of mill overhead costs. Machine start-up costs or abnormal machine shut downs are expensed in the period incurred and are not reflected in inventory. The definition of market value, with respect to all inventories, is replacement cost or net realizable value. The Company reviews inventories at least quarterly to determine the necessity of write-offs for excess, obsolete or unsalable inventory. The Company estimates write-offs for inventory obsolescence and shrinkage based on its judgment of future realization. These reviews require the Company to assess customer and market demand. The following schedule details inventories by major class ($ in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 24.8 | $ | 31.5 | ||||
Work in process | 25.1 | 23.4 | ||||||
Finished goods | 42.6 | 36.8 | ||||||
Supplies and other | 18.5 | 19.9 | ||||||
Total | $ | 111 | $ | 111.6 | ||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill for each segment for the nine months ended September 30, 2013 were as follows ($ in millions): | ||||||||||||||||||||||||
Reconstituted Tobacco | Paper | Total | ||||||||||||||||||||||
Goodwill as of December 31, 2012, gross | $ | 5.7 | $ | 2.7 | $ | 8.4 | ||||||||||||||||||
Accumulated impairment losses | — | (2.7 | ) | (2.7 | ) | |||||||||||||||||||
Goodwill as of December 31, 2012, net | 5.7 | — | 5.7 | |||||||||||||||||||||
Foreign currency translation adjustments | 0.2 | — | 0.2 | |||||||||||||||||||||
Goodwill as of September 30, 2013, gross | 5.9 | 2.7 | 8.6 | |||||||||||||||||||||
Accumulated impairment losses | — | (2.7 | ) | (2.7 | ) | |||||||||||||||||||
Goodwill as of September 30, 2013, net | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||||||||
The gross carrying amount and accumulated amortization for amortizable intangible assets consisted of the following ($ in millions): | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization* | Carrying | Carrying | Amortization* | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer-related intangibles | $ | 10 | $ | 9.9 | $ | 0.1 | $ | 10 | $ | 9.6 | $ | 0.4 | ||||||||||||
(Reconstituted Tobacco Segment) | ||||||||||||||||||||||||
* Accumulated amortization also includes adjustments for foreign currency translation. | ||||||||||||||||||||||||
Amortization expense of intangible assets was $0.0 million and $0.3 million for the three months ended September 30, 2013 and 2012, respectively, and $0.2 million and $0.8 million for the nine months ended September 30, 2013 and 2012, respectively. The Company’s customer-related intangibles are amortized to expense using the 150% declining balance method over a 6-year life. The remaining customer-related intangible assets are expected to be fully amortized during 2013. |
Restructuring_Activities
Restructuring Activities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring and Impairment Activities | ' | |||||||
Restructuring Activities | ||||||||
The Company incurred restructuring and impairment expenses of $0.6 million and recognized income of $2.0 million in the three months ended September 30, 2013 and 2012, respectively, and incurred expenses of $2.9 million and $22.0 million in the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
In the Paper segment, restructuring and impairment expenses were $0.2 million and income was $2.0 million during the three months ended September 30, 2013 and 2012, respectively, and expenses were $1.7 million and $18.0 million during the nine months ended September 30, 2013 and 2012, respectively. During the nine months ended September 30, 2013, restructuring and impairment expenses primarily included $1.2 million related to severance and early retirement expenses in the French operations for ongoing accruals over the remaining service lives of affected employees related to previously announced actions and terminating a third-party printing agreement in Europe. For the nine months ended September 30, 2012, expenses for the Paper segment were primarily related to the Company's amendment of a supply agreement with Philip Morris-USA, a subsidiary of Altria Group Inc. The amended agreement eliminated the Company's contractual commitment to stand ready to produce commercial quantities of banded cigarette paper even in the absence of firm orders. The Company considered these new terms to be a triggering event requiring evaluation of the recoverability of our Spotswood mill's banded cigarette paper production assets. Based on this analysis, which reflected management's assessment of the most likely future utilization of the mill, the Company in 2012 recorded a $16.9 million impairment charge to reduce the carrying value of these assets to their fair value. | ||||||||
Fair value was determined by using management's estimates of market participants' discounted future cash flows and independent appraisals of certain assets, both which are considered significant unobservable inputs, or Level 3 inputs. Management used significant judgment to develop assumptions, including forecasted sales volumes, allocation of certain overhead costs attributable to the Spotswood mill and weighted average cost of capital, based on historical and projected operational performance. | ||||||||
The Reconstituted Tobacco segment restructuring and impairment expenses were $0.1 million and $0.1 million for the three months ended September 30, 2013 and 2012, respectively, and $0.9 million and $4.0 million for the nine months ended September 30, 2013 and 2012, respectively. During both the three and nine months ended September 30, 2013, restructuring and impairment expenses primarily related to severance and early retirement expenses in the French operations for ongoing accruals over the remaining service lives of affected employees related to previously announced actions. Expenses incurred during the three and nine months ended September 30, 2012, were primarily costs associated with suspending construction of the RTL facility in the Philippines and related mothballing activities. | ||||||||
Restructuring liabilities were classified within Accrued expenses in each of the consolidated balance sheets as of September 30, 2013 and December 31, 2012. Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended September 30, 2013 and December 31, 2012 are summarized as follows ($ in millions): | ||||||||
Nine Months Ended | Year Ended | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 3.4 | $ | 7.3 | ||||
Accruals for announced programs | 2.9 | 2.6 | ||||||
Cash payments | (2.2 | ) | (6.4 | ) | ||||
Exchange rate impacts | — | (0.1 | ) | |||||
Balance at end of period | $ | 4.1 | $ | 3.4 | ||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
Total debt is summarized in the following table ($ in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving Credit Agreement | $ | 132.8 | $ | 139.1 | ||||
French Employee Profit Sharing | 16.2 | 14.7 | ||||||
Bank Overdrafts | 1.9 | 2 | ||||||
Other | 0.3 | 0.2 | ||||||
Total Debt | 151.2 | 156 | ||||||
Less: Current debt | (4.6 | ) | (4.2 | ) | ||||
Long-Term Debt | $ | 146.6 | $ | 151.8 | ||||
Credit Agreement | ||||||||
In May 2011, the Company entered into an unsecured revolving credit facility, or Credit Agreement. The five-year revolving Credit Agreement provides for borrowing capacity of approximately $225 million with an option to increase borrowing capacity by $100 million and includes a $100 million equivalent sub-limit available in euro, of which €25 million was drawn at September 30, 2013, and a $25 million equivalent sub-limit available in Philippine pesos. The Credit Agreement contains representations and warranties which are customary for facilities of this type and covenants and provisions that, among other things, require the Company to maintain (a) a maximum net debt to EBITDA ratio of 3.00 and (b) minimum interest coverage of 3.50. The Company was in compliance with its covenants under the Credit Agreement at September 30, 2013. | ||||||||
Under the Credit Agreement, interest rates are based on the London Interbank Offered Rate plus an applicable margin that varies from 1.25% to 2.00% depending on the Net Debt to EBITDA Ratio, as defined in the Credit Agreement. The Company will incur commitment fees at an annual rate of 0.20% to 0.30% of the applicable margin on the committed amounts not drawn, depending on the Net Debt to EBITDA Ratio. As of September 30, 2013, the applicable interest rate on Credit Agreement borrowings was 1.44% on US Dollar borrowings and 1.38% on euro borrowings. | ||||||||
Fair Value of Debt | ||||||||
At September 30, 2013 and December 31, 2012, the estimated fair values of the Company’s current and long-term debt approximated the respective carrying amounts since the interest rates were variable and based on current market indices. | ||||||||
Derivatives
Derivatives | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Derivatives | ' | |||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
In the normal course of business, the Company is exposed to foreign currency exchange rate risk and interest rate risk on its variable-rate debt. To manage these risks, the Company utilizes a variety of practices including, where considered appropriate, derivative instruments. The Company has no derivative instruments for trading or speculative purposes nor any derivatives with credit risk-related contingent features. All derivative instruments used by the Company are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The fair values of the Company’s derivative instruments are determined using observable inputs and are considered Level 2 assets or liabilities. | ||||||||||||||||||||||||||||||||
The Company utilizes currency forward, swap and, to a lesser extent, option contracts to selectively hedge its exposure to foreign currency risk when it is practical and economical to do so. The use of these contracts minimizes transactional exposure to exchange rate changes. We designate certain of our foreign currency hedges as cash flow hedges. Changes in the fair value of cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. For foreign exchange contracts not designated as cash flow hedges, changes in the contracts’ fair value are recorded to net income each period. | ||||||||||||||||||||||||||||||||
The Company selectively hedges its exposure to interest rate increases on variable-rate, long-term debt when it is practical and economical to do so. Changes in the fair value of our interest rate swaps are recorded to net income each period. There were no interest rate hedge agreements as of September 30, 2013. | ||||||||||||||||||||||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at September 30, 2013 ($ in millions): | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Accounts Receivable | $ | 0.1 | Accrued Expenses | $ | 4.1 | ||||||||||||||||||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 2.8 | ||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 0.1 | $ | 6.9 | ||||||||||||||||||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2012 ($ in millions): | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Accounts Receivable | $ | 0.4 | Accrued Expenses | $ | — | ||||||||||||||||||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 3.5 | ||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 0.4 | $ | 3.5 | ||||||||||||||||||||||||||||
The following table provides the effect derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions): | ||||||||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Relationships | (Gain) Loss Recognized in AOCI on Derivatives, Net of Tax | Gain Reclassified | ||||||||||||||||||||||||||||||
from AOCI into Net Sales | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Foreign exchange contracts | $ | (0.4 | ) | $ | (0.1 | ) | $ | 4.8 | $ | (2.1 | ) | $ | (0.6 | ) | $ | — | $ | (0.1 | ) | $ | 1.6 | |||||||||||
The Company's designated derivative instruments are perfectly effective. As such, related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing, there were no gains or losses recognized immediately in income for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||
The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions): | ||||||||||||||||||||||||||||||||
Derivatives Not Designated as Cash Flow Hedging Instruments | Amount of Gain / (Loss) Recognized in Other Income / Expense | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | (0.1 | ) | |||||||||||||||||||||||
Foreign exchange contracts | 0.8 | 0.3 | — | (1.3 | ) | |||||||||||||||||||||||||||
Total | $ | 0.8 | $ | 0.3 | $ | — | $ | (1.4 | ) | |||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
Imposto sobre Circulaçăo de Mercadorias e Serviços, or ICMS, a form of value-added tax in Brazil, was assessed to our Brazilian subsidiary Schweitzer-Mauduit do Brasil Indústria e Comércio de Papel Ltda., or SWM-B, in December of 2000. SWM-B received two assessments from the tax authorities of the State of Rio de Janeiro for unpaid ICMS taxes from January 1995 through November 2000, collectively the Assessment. | |
The Assessment concerned the accrual and use by SWM-B of ICMS tax credits generated from the production and sale of certain non-tobacco related grades of paper sold domestically that are immune from the tax to offset ICMS taxes otherwise owed on the sale of products that are not immune. One of the two assessments, or Assessment 1 (case number 2001.001.115144-5), related in part to tax periods that predated our acquisition of the Pirahy mill in Pirai, Brazil and is covered in part by an indemnification from the sellers of the Pirahy mill. The second assessment, or Assessment 2 (case number 2001.001.064544-6), pertains exclusively to periods that SWM-B owned the Pirahy mill. While SWM-B would be primarily responsible for the full payment of the Assessment in the event of an ultimate unfavorable outcome, SWM-B is not aware of any difficulties that would be encountered in obtaining reimbursement of that portion of any payment resulting from Assessment 1 from the previous owners of the Pirahy mill under the indemnification. | |
SWM-B has contested the Assessment based on Article 150, VI of the Brazilian Federal Constitution of 1988, which grants immunity from ICMS taxes to papers used in the production of books, newspapers and periodicals, or immune papers, and the raw material inputs used to produce immune papers. | |
Both assessments are presently on appeal in separate chambers of the Federal Supreme Court of Brazil. SWM-B won both assessments at the first level, then lost Assessment 1 on appeal and won Assessment 2 on appeal. Assessment 1 is before the court on SWM-B’s appeal of a procedural question which, if decided favorably, would invalidate Assessment 1. If decided against SWM-B, the lower court would be notified to send the case records to the Federal Supreme Court for a decision on the merits. Assessment 2 is before the Federal Supreme Court of Brazil on the State’s appeal on the merits and will be finally decided by the action of the chamber of the court hearing the matter, unless there is a prior decision by a chamber of the Federal Supreme Court on Assessment 1 that is in contradiction, in which case the conflict between the rulings of the different chambers could be decided by the Federal Supreme Court sitting as a whole. No docket entry has been made yet regarding argument on either assessment. SWM-B continues to vigorously contest the Assessment and believes that the Assessment will ultimately be resolved in its favor. Based on the foreign currency exchange rate at September 30, 2013, the Assessment totaled approximately $40 million, of which approximately $18 million is covered by the above-discussed indemnification. No liability has been recorded in our condensed consolidated financial statements for the Assessment based on our evaluation of the Assessment under the facts and law as presently understood. | |
Environmental Matters | |
The Company's operations are subject to various nations' federal, state and local laws, regulations and ordinances relating to environmental matters. The nature of the Company's operations exposes it to the risk of claims with respect to various environmental matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental laws and regulations, it believes that its future cost of compliance with environmental laws, regulations and ordinances, and its exposure to liability for environmental claims and its obligation to participate in the remediation and monitoring of certain hazardous waste disposal sites, will not have a material effect on its financial condition or results of operations. However, future events, such as changes in existing laws and regulations, or unknown contamination of sites owned, operated or used for waste disposal by the Company (including contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on its financial condition or results of operations. | |
General Matters | |
In the ordinary course of conducting business activities, the Company and its subsidiaries become involved in certain other judicial, administrative and regulatory proceedings involving both private parties and governmental authorities. These proceedings include insured and uninsured regulatory, employment, general and commercial liability, environmental and other matters. At this time, the Company does not expect any of these proceedings to have a material effect on its reputation, business, financial condition, results of operations or cash flows. However, the Company can give no assurance that the results of any such proceedings will not materially affect its reputation, business, financial condition, results of operations or cash flows. |
Postretirement_And_Other_Benef
Postretirement And Other Benefits | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Postretirement and Other Benefits | ' | |||||||||||||||||||||||
Postretirement and Other Benefits | ||||||||||||||||||||||||
The Company sponsors pension benefits in the United States, France and Canada and postretirement healthcare and life insurance, or OPEB, benefits in the United States and Canada. The Company’s Canadian pension and OPEB benefits are not material and therefore are not included in the following disclosures. | ||||||||||||||||||||||||
Pension and OPEB Benefits | ||||||||||||||||||||||||
The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the three months and nine months ended September 30, 2013 and 2012 were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.3 | $ | 0.2 | $ | 0.1 | $ | — | ||||||||||||
Interest cost | 1.3 | 1.4 | 0.2 | 0.3 | — | — | ||||||||||||||||||
Expected return on plan assets | (1.7 | ) | (1.9 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||||||
Amortizations and other | 1.5 | 1.4 | 0.3 | 0.1 | (0.3 | ) | — | |||||||||||||||||
Curtailment benefit | — | — | — | — | (3.2 | ) | — | |||||||||||||||||
Net periodic benefit cost | $ | 1.1 | $ | 0.9 | $ | 0.7 | $ | 0.5 | $ | (3.4 | ) | $ | — | |||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.9 | $ | 0.7 | $ | 0.1 | $ | 0.1 | ||||||||||||
Interest cost | 3.9 | 4.2 | 0.6 | 0.8 | 0.1 | 0.3 | ||||||||||||||||||
Expected return on plan assets | (5.3 | ) | (5.7 | ) | (0.3 | ) | (0.4 | ) | — | — | ||||||||||||||
Amortizations and other | 5 | 4.4 | 0.8 | 0.2 | (0.7 | ) | — | |||||||||||||||||
Curtailment benefit | — | — | — | — | (3.2 | ) | — | |||||||||||||||||
Net periodic benefit cost | $ | 3.6 | $ | 2.9 | $ | 2 | $ | 1.3 | $ | (3.7 | ) | $ | 0.4 | |||||||||||
During the full-year 2013, the Company expects to recognize approximately $6 million for amortization of accumulated other comprehensive loss related to its U.S. pension and OPEB plans and approximately $0.2 million credit for its French pension plans. During the nine months ended September 30, 2013, the Company contributed $0.7 million to its U.S. pension plan. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||||
A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions): | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
Tax provision at U.S. statutory rate | $ | 14.6 | 35 | % | $ | 17.2 | 35 | % | $ | 44.3 | 35 | % | $ | 38.4 | 35 | % | ||||||||||||
Tax benefits of foreign legal structure | — | — | — | — | (0.7 | ) | (0.6 | ) | (1.0 | ) | (0.9 | ) | ||||||||||||||||
Adjustments to valuation allowances | 0.1 | 0.2 | — | — | 0.1 | 0.1 | (0.4 | ) | (0.4 | ) | ||||||||||||||||||
French business tax classified as income tax | 0.6 | 1.5 | 0.5 | 1 | 1.7 | 1.3 | 1.8 | 1.7 | ||||||||||||||||||||
Change in enacted foreign tax rate | — | — | 0.3 | 0.6 | — | — | 0.9 | 0.8 | ||||||||||||||||||||
Foreign income tax rate differential | (0.7 | ) | (1.7 | ) | (1.9 | ) | (3.8 | ) | (4.5 | ) | (3.5 | ) | (4.2 | ) | (3.8 | ) | ||||||||||||
Other foreign taxes, net | 0.1 | 0.2 | 0.5 | 1 | 0.1 | 0.1 | 2.5 | 2.3 | ||||||||||||||||||||
Other, net | (0.9 | ) | (2.1 | ) | 0.1 | 0.2 | (1.0 | ) | (0.8 | ) | (0.4 | ) | (0.4 | ) | ||||||||||||||
Provision for income taxes | $ | 13.8 | 33.1 | % | $ | 16.7 | 34 | % | $ | 40 | 31.6 | % | $ | 37.6 | 34.3 | % | ||||||||||||
The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards for certain entities. The Company's assumptions, judgments and estimates relative to the valuation of these net deferred tax assets take into account available positive and negative evidence of realizability, including recent financial performance, the ability to realize benefits of restructuring and other recent actions, projections of the amount and category of future taxable income and tax planning strategies. Actual future operating results and the underlying amount and category of income in future periods could differ from the Company's current assumptions, judgments and estimates. | ||||||||||||||||||||||||||||
All unrecognized tax positions would impact the Company's effective tax rate if recognized. The Company’s policy with respect to penalties and interest in connection with income tax assessments or related to unrecognized tax benefits is to classify penalties as provision for income taxes and interest as interest expense in its consolidated statement of income. There were no material income tax penalties or interest accrued during the three or nine months ended September 30, 2013 or 2012. | ||||||||||||||||||||||||||||
The Company files income tax returns in the U.S. Federal and several state jurisdictions as well as in many foreign jurisdictions. With certain exceptions, the Company is no longer subject to U.S. Federal, state and local, or foreign income tax examinations for years before 2010. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||
The Company's two operating product line segments are also the Company's reportable segments: Paper and Reconstituted Tobacco. The Paper segment primarily produces Cigarette Papers such as cigarette papers, including LIP papers, plug wrap papers and base tipping papers used to wrap various parts of a cigarette for sale to cigarette manufacturers. The Paper segment also includes commercial and industrial products such as lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter paper and other specialized papers. These non-tobacco industry products are generally sold directly to converters and other end-users or brokers. The Reconstituted Tobacco segment produces reconstituted tobacco leaf, or RTL, and wrapper and binder products for sale to cigarette and cigar manufacturers. | ||||||||||||||||||||||||||||
Information about Net Sales and Operating Profit | ||||||||||||||||||||||||||||
The accounting policies of these segments are the same as those described in Note 2. Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company primarily evaluates segment performance and allocates resources based on operating profit. Expense amounts not associated with segments are referred to as unallocated expenses. | ||||||||||||||||||||||||||||
($ in millions) | Net Sales | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
Paper | $ | 136.4 | 73.6 | % | $ | 140.1 | 71.5 | % | $ | 413.1 | 71.7 | % | $ | 411.2 | 70.4 | % | ||||||||||||
Reconstituted Tobacco | 48.9 | 26.4 | 55.8 | 28.5 | 163.2 | 28.3 | 172.6 | 29.6 | ||||||||||||||||||||
Total Consolidated | $ | 185.3 | 100 | % | $ | 195.9 | 100 | % | $ | 576.3 | 100 | % | $ | 583.8 | 100 | % | ||||||||||||
($ in millions) | Operating Profit | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
Paper | $ | 28.7 | 68.7 | % | $ | 31.3 | 63.4 | % | $ | 80 | 63.7 | % | $ | 59.3 | 52.8 | % | ||||||||||||
Reconstituted Tobacco | 18.6 | 44.5 | 21.8 | 44.1 | 62.1 | 49.4 | 66.6 | 59.4 | ||||||||||||||||||||
Unallocated | (5.5 | ) | (13.2 | ) | (3.7 | ) | (7.5 | ) | (16.5 | ) | (13.1 | ) | (13.7 | ) | (12.2 | ) | ||||||||||||
Total Consolidated | $ | 41.8 | 100 | % | $ | 49.4 | 100 | % | $ | 125.6 | 100 | % | $ | 112.2 | 100 | % | ||||||||||||
General_Policies
General (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Nature of Business | ' |
General | |
Nature of Business | |
Schweitzer-Mauduit International, Inc., or SWM or the Company, is a multinational diversified producer of premium specialty papers headquartered in the United States of America. The Company manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products for use in other applications. The Company’s tobacco-related products include cigarette, plug wrap and base tipping papers, or Cigarette Papers, used to wrap various parts of a cigarette, reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes and reconstituted tobacco wrappers and binders for machine-made cigars. These products are sold directly to the major tobacco companies or their designated converters in the Americas, Europe, Asia and elsewhere. Non-tobacco industry products are a diverse mix of products, certain of which represent commodity paper grades produced to maximize machine operations. | |
The Company is a manufacturer of high porosity papers, which are used in manufacturing ventilated cigarettes, banded and print banded papers for the production of lower ignition propensity, or LIP, cigarettes and the leading independent producer of RTL used in producing blended cigarettes. The Company conducts business in over 90 countries and currently operates nine production locations worldwide, with mills in the United States, France, Brazil and Poland. The Company also has a 50% equity interest in two joint ventures in China. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and the notes thereto have been prepared in accordance with the instructions of Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission, or the SEC, and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America, or U.S. GAAP. However, such information reflects all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods including the results of a business reclassified as a discontinued operation which is more fully described in Note 3. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 1, 2013. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. The Company’s share of the net income of its 50% owned joint ventures in China are included in the consolidated statements of income as income from equity affiliates. Intercompany balances and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, inventory valuation, useful lives of tangible and intangible assets, fair values, sales returns, receivables valuation, pension, postretirement and other benefits, restructuring and impairment, taxes and contingencies. Actual results could differ materially from those estimates. | |
Recent Accounting Pronouncements | |
On January 1, 2013, the Company adopted Financial Accounting Standards Board's Accounting Standards Update (ASU) 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. The ASU amends and clarifies disclosure requirements for reclassifications from Other Comprehensive Income. The adoption of this guidance expanded the disclosure included in Note 2. Other Comprehensive Income, but it did not have a material impact on our condensed consolidated financial statements. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and the notes thereto have been prepared in accordance with the instructions of Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission, or the SEC, and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America, or U.S. GAAP. However, such information reflects all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods including the results of a business reclassified as a discontinued operation which is more fully described in Note 3. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC on March 1, 2013. | |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. The Company’s share of the net income of its 50% owned joint ventures in China are included in the consolidated statements of income as income from equity affiliates. Intercompany balances and transactions have been eliminated. |
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | ' | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||
Accumulated pension and OPEB liability adjustments, net of income tax of $22.5 million and $23.3 million at September 30, 2013 and December 31, 2012, respectively | $ | (40.8 | ) | $ | (43.2 | ) | ||||||||||||||||||
Accumulated unrealized loss on derivative instruments, net of income tax benefit of $0.3 million and $1.5 million at September 30, 2013 and December 31, 2012, respectively | (6.2 | ) | (1.4 | ) | ||||||||||||||||||||
Accumulated unrealized foreign currency translation adjustments | 28.1 | 29.2 | ||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (18.9 | ) | $ | (15.4 | ) | ||||||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | (0.1 | ) | $ | 0.4 | $ | 0.3 | $ | 1.5 | $ | (0.7 | ) | $ | 0.8 | ||||||||||
Unrealized loss on derivative instruments | 0.8 | (0.4 | ) | 0.4 | (0.2 | ) | 0.1 | (0.1 | ) | |||||||||||||||
Unrealized foreign currency translation adjustments | 16 | — | 16 | 12.7 | — | 12.7 | ||||||||||||||||||
Total | $ | 16.7 | $ | — | $ | 16.7 | $ | 14 | $ | (0.6 | ) | $ | 13.4 | |||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | 3.2 | $ | (0.8 | ) | $ | 2.4 | $ | 2.6 | $ | (1.0 | ) | $ | 1.6 | ||||||||||
Unrealized loss on derivative instruments | (3.6 | ) | (1.2 | ) | (4.8 | ) | (3.2 | ) | 1.1 | (2.1 | ) | |||||||||||||
Unrealized foreign currency translation adjustments | (1.1 | ) | — | (1.1 | ) | 1.7 | — | 1.7 | ||||||||||||||||
Total | $ | (1.5 | ) | $ | (2.0 | ) | $ | (3.5 | ) | $ | 1.1 | $ | 0.1 | $ | 1.2 | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations , Balance Sheet | ' | |||||||||||||||
Included in Other Current Assets and Accrued Expenses within the condensed consolidated balance sheet are the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Assets of discontinued operations: | ||||||||||||||||
Current assets | $ | 1.5 | $ | 7.7 | ||||||||||||
Property, Plant and Equipment, net | 4.6 | — | ||||||||||||||
Noncurrent deferred income tax benefits | — | 0.8 | ||||||||||||||
Other assets | 3.4 | 0.2 | ||||||||||||||
Liabilities of discontinued operations: | ||||||||||||||||
Current liabilities | 1.2 | 2.1 | ||||||||||||||
Discontinued operations, income (loss) from discontinued operation | ' | |||||||||||||||
Summary financial results of discontinued operations were as follows ($ in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||
Net sales | $ | 0.6 | $ | 6.1 | $ | 7 | $ | 19.1 | ||||||||
Restructuring and impairment expense | — | 3.4 | 1.4 | 3.4 | ||||||||||||
Loss on disposal | — | — | (1.6 | ) | — | |||||||||||
Loss from discontinued operations before income taxes | (0.1 | ) | (5.9 | ) | (4.1 | ) | (8.6 | ) | ||||||||
Income tax (provision) benefit | (0.4 | ) | (0.1 | ) | 0.2 | (2.4 | ) | |||||||||
Loss from discontinued operations | (0.5 | ) | (6.0 | ) | (3.9 | ) | (11.0 | ) |
Net_Income_Per_ShareTables
Net Income Per Share(Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of the Common and Potential Common Shares Outstanding Used in Earnings Per Share Calculation | ' | |||||||||||||||
A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator (basic and diluted): | ||||||||||||||||
Net income | $ | 29.1 | $ | 27.7 | $ | 85.8 | $ | 63.3 | ||||||||
Less: Dividends paid to participating securities | (0.1 | ) | — | (0.2 | ) | (0.1 | ) | |||||||||
Less: Undistributed earnings available to participating securities | (0.2 | ) | (0.3 | ) | (0.6 | ) | (0.7 | ) | ||||||||
Undistributed and distributed earnings available to common stockholders | $ | 28.8 | $ | 27.4 | $ | 85 | $ | 62.5 | ||||||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding | 31,092.60 | 30,659.90 | 31,042.20 | 31,097.40 | ||||||||||||
Effect of dilutive stock-based compensation | 187.7 | 392.7 | 171.1 | 362.9 | ||||||||||||
Average number of common and potential common shares outstanding | 31,280.30 | 31,052.60 | 31,213.30 | 31,460.30 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventories by major class | ' | |||||||
The following schedule details inventories by major class ($ in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 24.8 | $ | 31.5 | ||||
Work in process | 25.1 | 23.4 | ||||||
Finished goods | 42.6 | 36.8 | ||||||
Supplies and other | 18.5 | 19.9 | ||||||
Total | $ | 111 | $ | 111.6 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill for each segment for the nine months ended September 30, 2013 were as follows ($ in millions): | ||||||||||||||||||||||||
Reconstituted Tobacco | Paper | Total | ||||||||||||||||||||||
Goodwill as of December 31, 2012, gross | $ | 5.7 | $ | 2.7 | $ | 8.4 | ||||||||||||||||||
Accumulated impairment losses | — | (2.7 | ) | (2.7 | ) | |||||||||||||||||||
Goodwill as of December 31, 2012, net | 5.7 | — | 5.7 | |||||||||||||||||||||
Foreign currency translation adjustments | 0.2 | — | 0.2 | |||||||||||||||||||||
Goodwill as of September 30, 2013, gross | 5.9 | 2.7 | 8.6 | |||||||||||||||||||||
Accumulated impairment losses | — | (2.7 | ) | (2.7 | ) | |||||||||||||||||||
Goodwill as of September 30, 2013, net | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||||||||
Schedule of Amortizable Intangible Assets | ' | |||||||||||||||||||||||
The gross carrying amount and accumulated amortization for amortizable intangible assets consisted of the following ($ in millions): | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization* | Carrying | Carrying | Amortization* | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Customer-related intangibles | $ | 10 | $ | 9.9 | $ | 0.1 | $ | 10 | $ | 9.6 | $ | 0.4 | ||||||||||||
(Reconstituted Tobacco Segment) | ||||||||||||||||||||||||
* Accumulated amortization also includes adjustments for foreign currency translation. |
Restructuring_Activities_Table
Restructuring Activities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Changes in restructuring liabilities | ' | |||||||
Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended September 30, 2013 and December 31, 2012 are summarized as follows ($ in millions): | ||||||||
Nine Months Ended | Year Ended | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 3.4 | $ | 7.3 | ||||
Accruals for announced programs | 2.9 | 2.6 | ||||||
Cash payments | (2.2 | ) | (6.4 | ) | ||||
Exchange rate impacts | — | (0.1 | ) | |||||
Balance at end of period | $ | 4.1 | $ | 3.4 | ||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Total Debt | ' | |||||||
Total debt is summarized in the following table ($ in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving Credit Agreement | $ | 132.8 | $ | 139.1 | ||||
French Employee Profit Sharing | 16.2 | 14.7 | ||||||
Bank Overdrafts | 1.9 | 2 | ||||||
Other | 0.3 | 0.2 | ||||||
Total Debt | 151.2 | 156 | ||||||
Less: Current debt | (4.6 | ) | (4.2 | ) | ||||
Long-Term Debt | $ | 146.6 | $ | 151.8 | ||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair value of asset and liability derivatives and the respective balance sheet locations | ' | |||||||||||||||||||||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at September 30, 2013 ($ in millions): | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Accounts Receivable | $ | 0.1 | Accrued Expenses | $ | 4.1 | ||||||||||||||||||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 2.8 | ||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 0.1 | $ | 6.9 | ||||||||||||||||||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2012 ($ in millions): | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||||||||||||||||||
Location | Value | Location | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Accounts Receivable | $ | 0.4 | Accrued Expenses | $ | — | ||||||||||||||||||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 3.5 | ||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 0.4 | $ | 3.5 | ||||||||||||||||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||||
The following table provides the effect derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions): | ||||||||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Relationships | (Gain) Loss Recognized in AOCI on Derivatives, Net of Tax | Gain Reclassified | ||||||||||||||||||||||||||||||
from AOCI into Net Sales | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Foreign exchange contracts | $ | (0.4 | ) | $ | (0.1 | ) | $ | 4.8 | $ | (2.1 | ) | $ | (0.6 | ) | $ | — | $ | (0.1 | ) | $ | 1.6 | |||||||||||
Schedule of derivative instruments, gain (loss) in income statement | ' | |||||||||||||||||||||||||||||||
The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions): | ||||||||||||||||||||||||||||||||
Derivatives Not Designated as Cash Flow Hedging Instruments | Amount of Gain / (Loss) Recognized in Other Income / Expense | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | (0.1 | ) | |||||||||||||||||||||||
Foreign exchange contracts | 0.8 | 0.3 | — | (1.3 | ) | |||||||||||||||||||||||||||
Total | $ | 0.8 | $ | 0.3 | $ | — | $ | (1.4 | ) | |||||||||||||||||||||||
Recovered_Sheet1
Postretirement and Other Benefits Pension and OPEB Benefits (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Postretirement and Other Benefits [Abstract] | ' | |||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||||||||||
The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the three months and nine months ended September 30, 2013 and 2012 were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.3 | $ | 0.2 | $ | 0.1 | $ | — | ||||||||||||
Interest cost | 1.3 | 1.4 | 0.2 | 0.3 | — | — | ||||||||||||||||||
Expected return on plan assets | (1.7 | ) | (1.9 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||||||
Amortizations and other | 1.5 | 1.4 | 0.3 | 0.1 | (0.3 | ) | — | |||||||||||||||||
Curtailment benefit | — | — | — | — | (3.2 | ) | — | |||||||||||||||||
Net periodic benefit cost | $ | 1.1 | $ | 0.9 | $ | 0.7 | $ | 0.5 | $ | (3.4 | ) | $ | — | |||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.9 | $ | 0.7 | $ | 0.1 | $ | 0.1 | ||||||||||||
Interest cost | 3.9 | 4.2 | 0.6 | 0.8 | 0.1 | 0.3 | ||||||||||||||||||
Expected return on plan assets | (5.3 | ) | (5.7 | ) | (0.3 | ) | (0.4 | ) | — | — | ||||||||||||||
Amortizations and other | 5 | 4.4 | 0.8 | 0.2 | (0.7 | ) | — | |||||||||||||||||
Curtailment benefit | — | — | — | — | (3.2 | ) | — | |||||||||||||||||
Net periodic benefit cost | $ | 3.6 | $ | 2.9 | $ | 2 | $ | 1.3 | $ | (3.7 | ) | $ | 0.4 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||||||||||||||||||
A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions): | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
Tax provision at U.S. statutory rate | $ | 14.6 | 35 | % | $ | 17.2 | 35 | % | $ | 44.3 | 35 | % | $ | 38.4 | 35 | % | ||||||||||||
Tax benefits of foreign legal structure | — | — | — | — | (0.7 | ) | (0.6 | ) | (1.0 | ) | (0.9 | ) | ||||||||||||||||
Adjustments to valuation allowances | 0.1 | 0.2 | — | — | 0.1 | 0.1 | (0.4 | ) | (0.4 | ) | ||||||||||||||||||
French business tax classified as income tax | 0.6 | 1.5 | 0.5 | 1 | 1.7 | 1.3 | 1.8 | 1.7 | ||||||||||||||||||||
Change in enacted foreign tax rate | — | — | 0.3 | 0.6 | — | — | 0.9 | 0.8 | ||||||||||||||||||||
Foreign income tax rate differential | (0.7 | ) | (1.7 | ) | (1.9 | ) | (3.8 | ) | (4.5 | ) | (3.5 | ) | (4.2 | ) | (3.8 | ) | ||||||||||||
Other foreign taxes, net | 0.1 | 0.2 | 0.5 | 1 | 0.1 | 0.1 | 2.5 | 2.3 | ||||||||||||||||||||
Other, net | (0.9 | ) | (2.1 | ) | 0.1 | 0.2 | (1.0 | ) | (0.8 | ) | (0.4 | ) | (0.4 | ) | ||||||||||||||
Provision for income taxes | $ | 13.8 | 33.1 | % | $ | 16.7 | 34 | % | $ | 40 | 31.6 | % | $ | 37.6 | 34.3 | % | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segments | ' | |||||||||||||||||||||||||||
($ in millions) | Net Sales | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
Paper | $ | 136.4 | 73.6 | % | $ | 140.1 | 71.5 | % | $ | 413.1 | 71.7 | % | $ | 411.2 | 70.4 | % | ||||||||||||
Reconstituted Tobacco | 48.9 | 26.4 | 55.8 | 28.5 | 163.2 | 28.3 | 172.6 | 29.6 | ||||||||||||||||||||
Total Consolidated | $ | 185.3 | 100 | % | $ | 195.9 | 100 | % | $ | 576.3 | 100 | % | $ | 583.8 | 100 | % | ||||||||||||
($ in millions) | Operating Profit | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
Paper | $ | 28.7 | 68.7 | % | $ | 31.3 | 63.4 | % | $ | 80 | 63.7 | % | $ | 59.3 | 52.8 | % | ||||||||||||
Reconstituted Tobacco | 18.6 | 44.5 | 21.8 | 44.1 | 62.1 | 49.4 | 66.6 | 59.4 | ||||||||||||||||||||
Unallocated | (5.5 | ) | (13.2 | ) | (3.7 | ) | (7.5 | ) | (16.5 | ) | (13.1 | ) | (13.7 | ) | (12.2 | ) | ||||||||||||
Total Consolidated | $ | 41.8 | 100 | % | $ | 49.4 | 100 | % | $ | 125.6 | 100 | % | $ | 112.2 | 100 | % | ||||||||||||
General_Details
General (Details) | Sep. 30, 2013 |
Nature of Business [Line Items] | ' |
Number of Countries in which Entity Operates | 90 |
Number of production locations | 9 |
China [Member] | ' |
Nature of Business [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 50.00% |
Number of Joint Ventures | 2 |
Components_of_Accumulated_Comp
Components of Accumulated Comprehensive Income (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Comprehensive Income [Abstract] | ' | ' |
Accumulated pension and OPEB liability adjustments, net of income tax of $22.5 million and $23.3 million at September 30, 2013 and December 31, 2012, respectively | ($40.80) | ($43.20) |
Accumulated unrealized loss on derivative instruments, net of income tax benefit of $0.3 million and $1.5 million at September 30, 2013 and December 31, 2012, respectively | -6.2 | -1.4 |
Accumulated unrealized foreign currency translation adjustments | 28.1 | 29.2 |
Accumulated other comprehensive income | -18.9 | -15.4 |
Accumulated Other Comprehensive Income Loss Defined Benefit Pension And Other Postretirement Plans, Tax | 22.5 | 23.3 |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Tax | ($0.30) | ($1.50) |
Changes_in_Components_of_Other
Changes in Components of Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in components of other comprehensive income [Line Items] | ' | ' | ' | ' |
Pension and OPEB liability adjustments, pre-tax | ($0.10) | $1.50 | $3.20 | $2.60 |
Pension and OPEB liability adjustments, Tax | 0.4 | -0.7 | -0.8 | -1 |
Pension and OPEB liability adjustments, Net of Tax | 0.3 | 0.8 | 2.4 | 1.6 |
Unrealized gain (loss) on financial instruments, pre-tax | 0.8 | -0.2 | -3.6 | -3.2 |
Unrealized gain (loss) on financial instruments, Tax | -0.4 | 0.1 | -1.2 | 1.1 |
Unrealized gain (loss) on financial instruments, Net of Tax | 0.4 | -0.1 | -4.8 | -2.1 |
Unrealized foreign currency translation adjustments, pre-tax | 16 | 12.7 | -1.1 | 1.7 |
Unrealized foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Unrealized foreign currency translation adjustments, Net of Tax | 16 | 12.7 | -1.1 | 1.7 |
Total other comprehensive income (loss), pre-tax | 16.7 | 14 | -1.5 | 1.1 |
Total other comprehensive income (loss), Tax | 0 | -0.6 | -2 | 0.1 |
Other Comprehensive Income (Loss) | 16.7 | 13.4 | -3.5 | 1.2 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Changes in components of other comprehensive income [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss) | ' | ' | ($3.50) | $1.20 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Philippines Paper & Indonesia [Member] | Philippines Paper & Indonesia [Member] | Philippines Paper & Indonesia [Member] | Philippines Paper & Indonesia [Member] | |||
Assets of discontinued operations: | ' | ' | ' | ' | ' | ' |
Assets of Disposal Group, Including Discontinued Operation, Current | $1.50 | $7.70 | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net | 4.6 | 0 | ' | ' | ' | ' |
Noncurrent deferred income tax benefits | 0 | 0.8 | ' | ' | ' | ' |
Other assets | 3.4 | 0.2 | ' | ' | ' | ' |
Liabilities of discontinued operations: | ' | ' | ' | ' | ' | ' |
Current liabilities | 1.2 | 2.1 | ' | ' | ' | ' |
Net sales | ' | ' | 0.6 | 6.1 | 7 | 19.1 |
Restructuring and impairment expense | 2.9 | 2.6 | 0 | 3.4 | 1.4 | 3.4 |
Loss on disposal | ' | ' | 0 | 0 | -1.6 | 0 |
Income (loss) from discontinued operations before income taxes | ' | ' | -0.1 | -5.9 | -4.1 | -8.6 |
Income tax benefit | ' | ' | -0.4 | -0.1 | 0.2 | -2.4 |
Income (loss) from discontinued operations | ' | ' | ($0.50) | ($6) | ($3.90) | ($11) |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income Per Share [Abstract] | ' | ' | ' | ' |
Net income | $29.10 | $27.70 | $85.80 | $63.30 |
Less: Dividends paid to participating securities | -0.1 | 0 | -0.2 | -0.1 |
Less: Undistributed earnings available to participating securities | -0.2 | -0.3 | -0.6 | -0.7 |
Undistributed and distributed earnings available to common shareholders | $28.80 | $27.40 | $85 | $62.50 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' |
Average number of common shares outstanding | 31,092,600 | 30,659,900 | 31,042,200 | 31,097,400 |
Effect of dilutive stock-based compensation | 187,700 | 392,700 | 171,100 | 362,900 |
Average number of common and potential common shares outstanding | 31,280,300 | 31,052,600 | 31,213,300 | 31,460,300 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $24.80 | $31.50 |
Work in process | 25.1 | 23.4 |
Finished goods | 42.6 | 36.8 |
Supplies and other | 18.5 | 19.9 |
Total | $111 | $111.60 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets Carrying Amount of Goodwill By Segment (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Goodwill beginning of period, net | $5.70 | ' |
Foreign currency translation adjustments | 0.2 | ' |
Goodwill end of period, net | 5.9 | ' |
Goodwill, Gross | 8.6 | 8.4 |
Accumulated impairment losses | -2.7 | -2.7 |
Reconstituted Tobacco [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill beginning of period, net | 5.7 | ' |
Foreign currency translation adjustments | 0.2 | ' |
Goodwill end of period, net | 5.9 | ' |
Goodwill, Gross | 5.9 | 5.7 |
Accumulated impairment losses | 0 | 0 |
Paper Segment [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill beginning of period, net | 0 | ' |
Foreign currency translation adjustments | 0 | ' |
Goodwill end of period, net | 0 | ' |
Goodwill, Gross | 2.7 | 2.7 |
Accumulated impairment losses | ($2.70) | ($2.70) |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Carrying Amount of Amortizable Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Customer-Related Intangibles [Member] | Customer-Related Intangibles [Member] | Customer-Related Intangibles [Member] | |||||||
Reconstituted Tobacco [Member] | Reconstituted Tobacco [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Gross Carrying Amount | ' | ' | ' | ' | ' | $10 | $10 | ||
Accumulated Amortization | ' | ' | ' | ' | ' | 9.9 | [1] | 9.6 | [1] |
Net Carrying Amount | ' | ' | ' | ' | ' | 0.1 | 0.4 | ||
Amortization Expense of Intangible Assets | $0 | $0.30 | $0.20 | $0.80 | ' | ' | ' | ||
Amortization Method | ' | ' | ' | ' | '150% declining balance method | ' | ' | ||
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | '6 years | ' | ' | ||
[1] | Accumulated amortization also includes adjustments for foreign currency translation. |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Impairment | $0.60 | ($2) | $2.90 | $22 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | 3.4 | 7.3 | 7.3 |
Accruals for announced programs | ' | ' | 2.9 | ' | 2.6 |
Cash payments | ' | ' | -2.2 | ' | -6.4 |
Exchange rate impacts | ' | ' | 0 | ' | -0.1 |
Balance at end of period | 4.1 | ' | 4.1 | ' | 3.4 |
Paper Segment [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Impairment | 0.2 | -2 | 1.7 | 18 | ' |
Reconstituted Tobacco [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Impairment | 0.1 | 0.1 | 0.9 | 4 | ' |
French Mills [Member] | Paper Segment [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Impairment | ' | ' | 1.2 | ' | ' |
Spotswood Mill [Member] | Paper Segment [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets to be Disposed of | ' | ' | ' | $16.90 | ' |
Debt_Details
Debt (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit, Sublimit In Euro [Member] | Line of Credit, Sublimit In Euro [Member] | Line of Credit, Sublimit in Pesos [Member] | French Employee Profit Sharing [Member] | French Employee Profit Sharing [Member] | Bank Overdrafts [Member] | Bank Overdrafts [Member] | Other [Member] | Other [Member] |
USD ($) | USD ($) | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
USD ($) | USD ($) | EUR (€) | USD ($) | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowings under credit facility | ' | ' | ' | ' | $225 | $100 | ' | $25 | ' | ' | ' | ' | ' | ' |
Credit facility accordion feature | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' |
Covenant provisions | ' | ' | ' | ' | 'the Company to maintain (a) a maximum net debt to EBITDA ratio of 3.00 and (b) minimum interest coverage of 3.50. The Company was in compliance with its covenants under the Credit Agreement at September 30, 2013. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum margin on borrowings (in hundredths) | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum margin on borrowings (in hundredths) | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum annual commitment fees on undrawn amounts (in hundredths) | ' | ' | ' | ' | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum annual commitment fees on undrawn amounts (in hundredths) | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable interest rate (in hundredths) | ' | ' | ' | ' | 1.44% | 1.38% | 1.38% | ' | ' | ' | ' | ' | ' | ' |
Total | $151.20 | $156 | $132.80 | $139.10 | ' | ' | ' | ' | $16.20 | $14.70 | $1.90 | $2 | $0.30 | $0.20 |
Debt_Schedule_of_Debt_Summariz
Debt Schedule of Debt Summarized (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total | $151.20 | $156 |
Less: Current debt | -4.6 | -4.2 |
Long-Term Debt | 146.6 | 151.8 |
Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | 132.8 | 139.1 |
French Employee Profit Sharing [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | 16.2 | 14.7 |
Bank Overdrafts [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | 1.9 | 2 |
Other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total | $0.30 | $0.20 |
Derivatives_by_Balance_Sheet_L
Derivatives by Balance Sheet Location (Details) (Designated as Hedging Instrument [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $0.10 | $0.40 |
Liability Derivatives | 6.9 | 3.5 |
Foreign Exchange Contract [Member] | Accounts Receivable [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 0.1 | 0.4 |
Foreign Exchange Contract [Member] | Accrued Expenses [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 4.1 | 0 |
Foreign Exchange Contract [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 0 | 0 |
Foreign Exchange Contract [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | $2.80 | $3.50 |
Derivatives_by_Income_Statemen
Derivatives by Income Statement Location (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Change in AOCI Gain / (Loss) | ($0.40) | ($0.10) | $4.80 | ($2.10) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain /(Loss) Reclassified from AOCI into Net Sales (Effective Portion) | -0.6 | 0 | -0.1 | 1.6 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in Income on Derivatives | 0.8 | 0.3 | 0 | -1.4 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Income Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in Income on Derivatives | 0 | 0 | 0 | -0.1 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Income Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in Income on Derivatives | $0.80 | $0.30 | $0 | ($1.30) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Unfavorable Regulatory Action [Member], USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Unfavorable Regulatory Action [Member] | ' |
Loss Contingencies [Line Items] | ' |
Number of assessments from the tax authorities regarding ICMS taxes | 2 |
Number of tax assessments related to periods that predated acquisition and are covered by indemnification | 1 |
Loss Contingency, Range of Possible Loss, Maximum | $40 |
Portion covered by indemnification | $18 |
Net_Pension_Benefit_Costs_Deta
Net Pension Benefit Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | ' | ' | $6 | ' |
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1.3 | 1.4 | 3.9 | 4.2 |
Expected return on plan assets | -1.7 | -1.9 | -5.3 | -5.7 |
Amortization and other | 1.5 | 1.4 | 5 | 4.4 |
Net periodic benefit cost | 1.1 | 0.9 | 3.6 | 2.9 |
Pension Contributions | ' | ' | 0.7 | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | ' | ' | 0.2 | ' |
Service cost | 0.3 | 0.2 | 0.9 | 0.7 |
Interest cost | 0.2 | 0.3 | 0.6 | 0.8 |
Expected return on plan assets | -0.1 | -0.1 | -0.3 | -0.4 |
Amortization and other | 0.3 | 0.1 | 0.8 | 0.2 |
Net periodic benefit cost | 0.7 | 0.5 | 2 | 1.3 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 0.1 | 0 | 0.1 | 0.1 |
Interest cost | 0 | 0 | 0.1 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization and other | -0.3 | 0 | -0.7 | 0 |
Curtailment benefit | -3.2 | ' | -3.2 | ' |
Net periodic benefit cost | ($3.40) | $0 | ($3.70) | $0.40 |
Reconcilation_of_Income_Tax_Ra
Reconcilation of Income Tax Rate (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Other Foreign Taxes, Net | 0.20% | 1.00% | 0.10% | 2.30% |
Income Tax Reconciliation, Other foreign taxes, net | $0.10 | $0.50 | $0.10 | $2.50 |
Amount [Abstract] | ' | ' | ' | ' |
Tax provision at U.S. statutory rate | 14.6 | 17.2 | 44.3 | 38.4 |
Tax benefits of foreign legal structure | 0 | 0 | -0.7 | -1 |
Adjustments to valuation allowances | 0.1 | 0 | 0.1 | -0.4 |
French business tax reclassified as income tax | 0.6 | 0.5 | 1.7 | 1.8 |
Change in enacted foreign tax rate | 0 | 0.3 | 0 | 0.9 |
Foreign income tax rate differential and other foreign taxes | -0.7 | -1.9 | -4.5 | -4.2 |
Other, net | -0.9 | 0.1 | -1 | -0.4 |
Provision for income taxes | $13.80 | $16.70 | $40 | $37.60 |
Percent [Abstract] | ' | ' | ' | ' |
Tax provision at U.S. statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Tax benefits of foreign legal structure | 0.00% | 0.00% | -0.60% | -0.90% |
Adjustments to valuation allowances | 0.20% | 0.00% | 0.10% | -0.40% |
French business tax reclassified as income tax | 1.50% | 1.00% | 1.30% | 1.70% |
Change in enacted foreign tax rate | 0.00% | 0.60% | 0.00% | 0.80% |
Foreign income tax rate differential | -1.70% | -3.80% | -3.50% | -3.80% |
Other, net | -2.10% | 0.20% | -0.80% | -0.40% |
Provision for income taxes | 33.10% | 34.00% | 31.60% | 34.30% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Sales [Abstract] | ' | ' | ' | ' |
Net Sales | $185.30 | $195.90 | $576.30 | $583.80 |
Percentage of Net Sales (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Profit [Abstract] | ' | ' | ' | ' |
Operating Profit | 41.8 | 49.4 | 125.6 | 112.2 |
Operating Profit (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Paper [Member] | ' | ' | ' | ' |
Net Sales [Abstract] | ' | ' | ' | ' |
Net Sales | 136.4 | 140.1 | 413.1 | 411.2 |
Percentage of Net Sales (in hundredths) | 73.60% | 71.50% | 71.70% | 70.40% |
Operating Profit [Abstract] | ' | ' | ' | ' |
Operating Profit | 28.7 | 31.3 | 80 | 59.3 |
Operating Profit (in hundredths) | 68.70% | 63.40% | 63.70% | 52.80% |
Reconstituted Tobacco [Member] | ' | ' | ' | ' |
Net Sales [Abstract] | ' | ' | ' | ' |
Net Sales | 48.9 | 55.8 | 163.2 | 172.6 |
Percentage of Net Sales (in hundredths) | 26.40% | 28.50% | 28.30% | 29.60% |
Operating Profit [Abstract] | ' | ' | ' | ' |
Operating Profit | 18.6 | 21.8 | 62.1 | 66.6 |
Operating Profit (in hundredths) | 44.50% | 44.10% | 49.40% | 59.40% |
Unallocated Amount to Segment [Member] | ' | ' | ' | ' |
Operating Profit [Abstract] | ' | ' | ' | ' |
Operating Profit | ($5.50) | ($3.70) | ($16.50) | ($13.70) |
Operating Profit (in hundredths) | -13.20% | -7.50% | -13.10% | -12.20% |