Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 3 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Mar. 31, 2015 | 6-May-15 | Dec. 31, 2014 |
DEI [Abstract] | |||
Entity Registrant Name | SCHWEITZER MAUDUIT INTERNATIONAL INC | ||
Entity Central Index Key | 1000623 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | 31-Mar-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 30,474,314 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1.30 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net Sales | $188 | $204.70 |
Cost of products sold | 136.6 | 147.1 |
Gross Profit | 51.4 | 57.6 |
Selling expense | 5.4 | 5.5 |
Research expense | 3.3 | 4.1 |
General expense | 16.2 | 14.8 |
Total nonmanufacturing expenses | 24.9 | 24.4 |
Restructuring expense | 4 | 0.1 |
Operating Profit | 22.5 | 33.1 |
Interest expense | 1.7 | 1.5 |
Other income, net | 2.1 | 0.8 |
Income from Continuing Operations before Income Taxes and Income from Equity Affiliates | 22.9 | 32.4 |
Provision for income taxes | 5.5 | 9.8 |
Income from equity affiliates, net of income taxes | 1.4 | 0.6 |
Income from Continuing Operations | 18.8 | 23.2 |
Loss from Discontinued Operations | 0 | 0 |
Net Income | $18.80 | $23.20 |
Net Income per Share - Basic: | ||
Income per share from continuing operations (in dollars per share) | $0.62 | $0.75 |
Loss per share from discontinued operations (in dollars per share) | $0 | $0 |
Net income per share - basic (in dollars per share) | $0.62 | $0.75 |
Net Income per Share – Diluted: | ||
Income per share from continuing operations (in dollars per share) | $0.61 | $0.75 |
Loss per share from discontinued operations (in dollars per share) | $0 | $0 |
Net income per share - diluted (in dollars per share) | $0.61 | $0.75 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 30,178,300 | 30,665,900 |
Diluted (in shares) | 30,293,200 | 30,778,200 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $18.80 | $23.20 |
Other Comprehensive Income (Loss), net of tax: | ||
Foreign currency translation adjustments | -48.7 | -1.7 |
Unrealized gains (losses) on derivative instruments | -7 | 5.7 |
Less: Reclassification adjustment for gains (losses) on derivative instruments included in net income | -3.1 | -1.4 |
Net gain from postretirement benefit plans | 0 | 0 |
Less: Amortization of postretirement benefit plans' costs included in net periodic benefit cost | -0.6 | 0.8 |
Other Comprehensive (Loss) Income | -59.4 | 3.4 |
Comprehensive (Loss) Income | ($40.60) | $26.60 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $267.30 | $290.30 |
Accounts receivable, net | 114.8 | 93.9 |
Inventories | 100.2 | 108.4 |
Income taxes receivable | 7.4 | 11.5 |
Current deferred income tax benefits | 7.9 | 9.2 |
Other current assets | 9.1 | 6.1 |
Total Current Assets | 506.7 | 519.4 |
Property, Plant and Equipment, net | 325 | 362 |
Investment in Equity Affiliates | 69 | 67.8 |
Goodwill | 124.5 | 125.5 |
Intangible Assets | 87.7 | 89.3 |
Other Assets | 21.2 | 22.6 |
Total Assets | 1,134.10 | 1,186.60 |
Current Liabilities | ||
Current debt | 3.2 | 2.9 |
Accounts payable | 42.9 | 44.8 |
Accrued expenses | 78.3 | 75.8 |
Total Current Liabilities | 124.4 | 123.5 |
Long-Term Debt | 439.6 | 437.2 |
Pension and Other Postretirement Benefits | 33 | 34.1 |
Deferred Income Tax Liabilities | 66.4 | 71.4 |
Other Liabilities | 36 | 31.4 |
Total Liabilities | 699.4 | 697.6 |
Stockholders’ Equity: | ||
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; 30,439,279 and 30,465,522 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 3 | 3 |
Additional paid-in-capital | 50.6 | 49.8 |
Retained earnings | 517 | 512.7 |
Accumulated other comprehensive loss, net of tax | -135.9 | -76.5 |
Total Stockholders’ Equity | 434.7 | 489 |
Total Liabilities and Stockholders’ Equity | $1,134.10 | $1,186.60 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock (dollars per share) | $0.10 | $0.10 |
Preferred shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock (in dollars per share) | $0.10 | $0.10 |
Common shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares issued (in shares) | 30,439,279 | 30,465,522 |
Common stock outstanding (in shares) | 30,439,279 | 30,465,522 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
In Millions, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $561.40 | $3.10 | $43.30 | $520 | ($5) |
Balance (in shares) at Dec. 31, 2013 | 31,423,427 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 23.2 | 23.2 | |||
Other comprehensive income (loss), net of tax | 3.4 | 3.4 | |||
Dividends declared ($0.36 per share in 2014 and $0.38 per share in 2015) | -11.1 | -11.1 | |||
Restricted stock issuances, net | 0 | 0 | |||
Restricted stock issuances, net (in shares) | 198,180 | ||||
Stock-based employee compensation expense | 1.1 | 1.1 | |||
Excess tax benefits of stock-based employee compensation | 0.6 | 0.6 | |||
Stock issued to directors as compensation | 0 | 0 | |||
Stock issued to directors as compensation (in shares) | 364 | ||||
Purchases of treasury stock | -0.1 | 52.2 | |||
Purchases of treasury stock (in shares) | -1,160,811 | ||||
Purchases and retirement of common stock | -52.3 | ||||
Balance at Mar. 31, 2014 | 526.3 | 3 | 45 | 479.9 | -1.6 |
Balance (in shares) at Mar. 31, 2014 | 30,461,160 | ||||
Balance at Dec. 31, 2014 | 489 | 3 | 49.8 | 512.7 | -76.5 |
Balance (in shares) at Dec. 31, 2014 | 30,465,522 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18.8 | 18.8 | |||
Other comprehensive income (loss), net of tax | -59.4 | ||||
Dividends declared ($0.36 per share in 2014 and $0.38 per share in 2015) | -11.6 | -11.6 | |||
Restricted stock issuances, net | -0.6 | 0 | -0.6 | ||
Restricted stock issuances, net (in shares) | 36,091 | ||||
Stock-based employee compensation expense | 1 | 1 | |||
Excess tax benefits of stock-based employee compensation | 0.4 | 0.4 | |||
Stock issued to directors as compensation | 0 | 0 | |||
Stock issued to directors as compensation (in shares) | 886 | ||||
Purchases of treasury stock | 0 | 2.9 | |||
Purchases of treasury stock (in shares) | -63,220 | ||||
Purchases and retirement of common stock | -2.9 | ||||
Balance at Mar. 31, 2015 | $434.70 | $3 | $50.60 | $517 | ($135.90) |
Balance (in shares) at Mar. 31, 2015 | 30,439,279 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared | $0.38 | $0.36 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operations | ||
Net income | $18.80 | $23.20 |
Less: Loss from discontinued operations | 0 | 0 |
Income from Continuing Operations | 18.8 | 23.2 |
Non-cash items included in net income: | ||
Depreciation and amortization | 9.7 | 13.1 |
Restructuring Costs | 0.7 | 0 |
Deferred income tax provision | 0.9 | 1.6 |
Pension and other postretirement benefits | 1.3 | 2.1 |
Stock-based compensation | 1 | 1.1 |
Income from equity affiliates | -1.4 | -0.6 |
Excess tax benefits of stock-based awards | -0.4 | -0.6 |
Other items | 0.5 | -1.6 |
Changes in operating working capital: | ||
Accounts receivable | -25.9 | -18.3 |
Inventories | 0.2 | -1.6 |
Prepaid expenses | -0.2 | -1.5 |
Accounts payable | 4.3 | 2.3 |
Accrued expenses | -2.3 | -0.8 |
Accrued income taxes | 4 | 0.2 |
Net changes in operating working capital | -19.9 | -19.7 |
Net cash provided by operating activities of: | ||
- Continuing operations | 11.2 | 18.6 |
- Discontinued operations | 0 | -0.3 |
Net Cash Provided by Operations | 11.2 | 18.3 |
Investing | ||
Capital spending | -5.2 | -8.1 |
Capitalized software costs | -0.2 | -0.1 |
Acquisitions, net of cash acquired | 0 | -2.4 |
Investment in equity affiliates | 0 | -3.3 |
Other investing | 1.5 | 2.3 |
Net Cash Used in Investing | -3.9 | -11.6 |
Financing | ||
Cash dividends paid to SWM stockholders | -11.6 | -11.1 |
Changes in short-term debt | 0.5 | 4.2 |
Proceeds from issuances of long-term debt | 15.1 | 117 |
Payments on long-term debt | -3.1 | -58.8 |
Purchases of common stock | -2.9 | -52.3 |
Excess tax benefits of stock-based awards | 0.4 | 0.6 |
Net Cash Used in Financing | -1.6 | -0.4 |
Effect of exchange rate changes on cash and cash equivalents | -28.7 | -0.4 |
Increase in cash and cash equivalents | -23 | 5.9 |
Cash and cash equivalents at beginning of period | 290.3 | 272 |
Cash and cash equivalents at end of period | 267.3 | 277.9 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | 1.9 | 1.2 |
Cash (recovered) paid for taxes, net | -1 | 4.3 |
Accrued Capital Spending | $2 | $1.60 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Nature of Business | |
Schweitzer-Mauduit International, Inc., or SWM or the Company, is a multinational diversified producer of premium specialty papers and filtration media 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 and filtration products for use in other industry applications. We manufacture lightweight specialty papers used in manufacturing ventilated cigarettes, banded papers used in the production of lower ignition propensity, or LIP, cigarettes and resin-based plastic netting through an extrusion process, as well as certain meltblown products and machined plastic core tubes. We are also the leading independent producer of reconstituted tobacco used in producing blended cigarettes. | |
The primary products we sell to the tobacco industry include cigarette, plug wrap and base tipping papers, or Cigarette Papers, which are used to wrap various parts of a cigarette, and reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes, reconstituted tobacco wrappers and binders for cigars. We sell these products directly to tobacco companies or their designated converters in the Americas, Europe, Asia and elsewhere. We also sell a diverse mix of products to non-tobacco industries, including low volume, high-value engineered papers and commodity paper grades produced, among other reasons, to maximize our machine utilization. In December 2013, we acquired DelStar, Inc., or DelStar, a manufacturer of plastic netting and other resin-based products mainly focused on the filtration and medical market segments. The acquisition of DelStar diversifies SWM's global presence in advanced materials, particularly in filtration. In December 2014, we acquired in two separate transactions certain assets from Pronamic Industries, Inc. and Smith & Nephew's (SNN) Advanced Wound Management Division which we expect to complement the DelStar acquisition and which have been incorporated into our Filtration operating segment. | |
We conduct business in over 90 countries and operate 17 production locations worldwide, with facilities in the United States, United Kingdom, Canada, France, Luxembourg, Russia, Spain, Brazil, China and Poland. We also have a 50% equity interest in two joint ventures in China: China Tobacco Mauduit (Jiangmen) Paper Industry Ltd., or CTM, which produces cigarette and porous plug wrap papers, and China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. Ltd., or CTS, which produces RTL. | |
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 4. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on February 27, 2015. | |
Principles of Consolidation | |
The condensed 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 is included in the condensed 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 condensed 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 | |
In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The new guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual periods beginning on or after December 15, 2016 and may be implemented using a full retrospective or a modified retrospective application. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In November 2014, the FASB issued ASU 2014-16, "Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity." The update requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). This guidance is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact the adoption will have on our consolidated financial statements. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and requires either a retrospective approach to adoption or a modified retrospective approach, by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This new standard would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liabilities, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this Update.The ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. |
Other_Comprehensive_Income
Other Comprehensive Income | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||
Other Comprehensive Income | 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 11. Derivatives for additional information. Amortization of accumulated pension and other post-employment benefit, or OPEB, liabilities are included in the computation of net periodic pension and OPEB costs, which are more fully discussed in Note 13. Postretirement and Other Benefits. | ||||||||||||||||||||||||
Components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Accumulated pension and OPEB liability adjustments, net of income tax of $21.3 million and $21.0 million at March 31, 2015 and December 31, 2014, respectively | $ | (39.0 | ) | $ | (38.4 | ) | ||||||||||||||||||
Accumulated unrealized loss on derivative instruments, net of income tax of $0.4 million and $0.0 million at March 31, 2015 and December 31, 2014, respectively | (18.4 | ) | (8.3 | ) | ||||||||||||||||||||
Accumulated unrealized foreign currency translation adjustments | (78.5 | ) | (29.8 | ) | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | (135.9 | ) | $ | (76.5 | ) | ||||||||||||||||||
Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | (0.9 | ) | $ | 0.3 | $ | (0.6 | ) | $ | 1.2 | $ | (0.4 | ) | $ | 0.8 | |||||||||
Unrealized gain (loss) on derivative instruments | (10.5 | ) | 0.4 | (10.1 | ) | 3.8 | 0.5 | 4.3 | ||||||||||||||||
Unrealized foreign currency translation adjustments | (48.7 | ) | — | (48.7 | ) | (1.7 | ) | — | (1.7 | ) | ||||||||||||||
Total | $ | (60.1 | ) | $ | 0.7 | $ | (59.4 | ) | $ | 3.3 | $ | 0.1 | $ | 3.4 | ||||||||||
Business_Acquisition
Business Acquisition | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
DelStar Acquisition | In December 2014, the Company acquired certain assets from Pronamic Industries, Inc., or Pronamic, and Smith & Nephew, or SNN. As a result of the acquisition, these assets were incorporated into SWM's Filtration segment. The acquisition of these assets provides further opportunities for growth into the filtration and healthcare industries. These acquisitions are being treated as business combinations and accounted for in accordance with the guidance provided by ASC 805, Business Combinations. The purchase price included initial cash payments of $30.7 million, net of $0.7 million in working capital adjustments. An additional variable payment of up to $3.5 million in connection with one of the acquisitions may be due based on the performance of the assets over a period from the acquisition date through December 31, 2015, of which $1.0 million was recorded as a payable based on management's estimate of the fair value of the variable consideration payable. Of the amount recorded $0.5 million was reversed through other income on the condensed consolidated statement of income in the first quarter of 2015 based on updated estimates of future performance. | ||||||||
As of March 31, 2015, the fair values of the assets acquired and liabilities assumed for the acquisition of assets from Pronamic and SNN are provisional because final appraisals have not yet been completed. The cash paid for these acquisitions and the preliminary fair values of the assets acquired and liabilities assumed as of the December 19, 2014 and December 31, 2014 acquisition dates for Pronamic assets and SNN assets, respectively, are as follows ($ in millions): | |||||||||
Preliminary Fair Value as Acquisition Date | |||||||||
Accounts receivable | $ | 3.5 | |||||||
Inventory | 3.2 | ||||||||
Other current assets | 0.2 | ||||||||
Property, plant and equipment | 9.3 | ||||||||
Identifiable intangible assets | 11.6 | ||||||||
Total Assets | 27.8 | ||||||||
Accounts payable | 1.4 | ||||||||
Accrued expenses | 1.4 | ||||||||
Net assets acquired | 25 | ||||||||
Goodwill | 5 | ||||||||
Cash paid | $ | 30 | |||||||
The Company used the income, market, or cost approach (or a combination thereof) for the preliminary valuation as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Market participants are considered to be buyers and sellers in the principal or most advantageous market for the asset or liability. For certain items, the carrying amount was determined to be a reasonable approximation of fair value based on information available to SWM management. | |||||||||
Properties acquired included two manufacturing and related facilities, land and leased sites that include leasehold improvements, and machinery and equipment for use in manufacturing operations. Management valued properties using the cost approach supported where available by observable market data which included consideration of obsolescence. | |||||||||
Intangible assets acquired included contracts with significant customers, technology related to products subject to a number of existing patents and trade know-how, and a number of customer relationships in water filtration, industrial filtration and healthcare industries. Management valued intangible assets using the relief from royalty and multi-period excess earnings methods, both forms of the income approach supported by observable market data for peer companies. The following table shows the preliminary fair values assigned to intangible assets ($ in millions): | |||||||||
Preliminary | Weighted-Average Amortization Period (Years) | ||||||||
Fair Value as of December 31, 2014 | |||||||||
Amortizable intangible assets: | |||||||||
Customer relationships | $ | 6.1 | 15 | ||||||
Developed Technology | 2.1 | 20 | |||||||
Patents | 1.5 | 17 | |||||||
Customer contracts | 1.9 | 6 | |||||||
Total | $ | 11.6 | 15 | ||||||
In connection with the acquisitions, the Company recorded goodwill, which represents the excess of the consideration transferred over the estimated preliminary fair value of tangible and intangible assets acquired, net of liabilities assumed. The goodwill is attributed primarily to incremental revenue growth from combining the acquired assets with DelStar's existing business and workforce as well as the benefits of access to different markets and customers. Goodwill from these acquisitions will be assigned to the Filtration segment. None of the goodwill is expected to be deductible for tax purposes. | |||||||||
The goodwill was determined on the basis of the provisional fair values of the assets and liabilities identified as of the acquisition date. It may be adjusted, within a period of no more than 12 months from the acquisition date, if the provisional fair values change as a result of circumstances existing at the acquisition date. Such fair value adjustments may arise in respect to property, plant and equipment, intangible assets and inventories, upon completion of the necessary valuations and physical verifications of such assets. The amount of provisions may also be adjusted as a result of ongoing procedures to identify and measure liabilities and contingent liabilities, including tax, environmental risks and litigation. The amount of deferred taxes may also be adjusted during the measurement period. | |||||||||
In the first quarter of 2015 and the fourth quarter of 2014, the Company recognized $0.3 million and $1.3 million in direct and indirect acquisition-related costs related to the purchases. Direct and indirect acquisition-related costs were expensed as incurred and are included in the General Expense line item in the Consolidated Statements of Income. | |||||||||
The amounts of the unaudited pro forma Net Sales and Income from Continuing Operations of the combined entity had the acquisition date been January 1, 2014 are as follows ($ in millions): | |||||||||
Net Sales | Income from Continuing Operations | ||||||||
2014 Supplemental Pro Forma from January 1, 2014 - March 31, 2014 | $ | 212 | $ | 23.9 | |||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | Discontinued Operations | |||||||
The Company's former paper mill in San Pedro, Philippines has been reported as discontinued operations. The physical assets at the Philippines paper mill were sold during the fourth quarter of 2013. For all periods presented, results of this mill 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. | ||||||||
Included in Other Current Assets, Other 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): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Assets of discontinued operations: | ||||||||
Current assets | $ | 2 | $ | 1.6 | ||||
Other assets | 2.5 | 2.3 | ||||||
Liabilities of discontinued operations: | ||||||||
Current liabilities | 0.1 | 0.1 | ||||||
The financial results of discontinued operations had no impact on the consolidated financial statements for the three-months ended March 31, 2015 or 2014. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income Per Share | Net Income Per Share | |||||||
The Company uses the two-class method to calculate earnings per share. The Company has granted restricted stock that contains non-forfeitable 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 | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Numerator (basic and diluted): | ||||||||
Net income | $ | 18.8 | $ | 23.2 | ||||
Less: Dividends paid to participating securities | (0.2 | ) | (0.1 | ) | ||||
Less: Undistributed earnings available to participating securities | — | (0.1 | ) | |||||
Undistributed and distributed earnings available to common stockholders | $ | 18.6 | $ | 23 | ||||
Denominator: | ||||||||
Average number of common shares outstanding | 30,178.30 | 30,665.90 | ||||||
Effect of dilutive stock-based compensation | 114.9 | 112.3 | ||||||
Average number of common and potential common shares outstanding | 30,293.20 | 30,778.20 | ||||||
There were no anti-dilutive stock options during the three month periods ended March 31, 2015 or 2014. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, resins, chemicals, direct labor, utilities, maintenance, depreciation, finishing supplies and an allocation of 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): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 33.5 | $ | 35.1 | ||||
Work in process | 16.7 | 17.4 | ||||||
Finished goods | 36.3 | 40.4 | ||||||
Supplies and other | 13.7 | 15.5 | ||||||
Total | $ | 100.2 | $ | 108.4 | ||||
Goodwill
Goodwill | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill | Goodwill | |||||||||||
The changes in the carrying amount of goodwill by segment for the three months ended March 31, 2015 were as follows ($ in millions): | ||||||||||||
Reconstituted Tobacco | Filtration | Total | ||||||||||
Goodwill as of December 31, 2014 | $ | 5.3 | $ | 120.2 | $ | 125.5 | ||||||
Foreign currency translation adjustments | (0.6 | ) | (0.4 | ) | (1.0 | ) | ||||||
Goodwill as of March 31, 2015 | $ | 4.7 | $ | 119.8 | $ | 124.5 | ||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||||||||||
The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): | ||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Foreign Currency Impact | Net | Gross | Accumulated | Foreign Currency Impact | Net | |||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||||||||||
Customer-related intangibles | $ | 10 | $ | 10 | $ | — | $ | — | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||||||||||
(Reconstituted Tobacco) | ||||||||||||||||||||||||||||||||
Customer Relationships (Filtration) | 51.4 | 2.7 | (0.4 | ) | 48.3 | 51.4 | 2.1 | — | 49.3 | |||||||||||||||||||||||
Developed Technology | 16 | 1.6 | (0.1 | ) | 14.3 | 16 | 1.2 | — | 14.8 | |||||||||||||||||||||||
(Filtration) | ||||||||||||||||||||||||||||||||
Customer Contracts (Filtration) | 1.9 | 0.1 | — | 1.8 | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Patents (Filtration) | 1.5 | — | — | 1.5 | 1.5 | — | — | 1.5 | ||||||||||||||||||||||||
Total | $ | 80.8 | $ | 14.4 | $ | (0.5 | ) | $ | 65.9 | $ | 80.8 | $ | 13.3 | $ | — | $ | 67.5 | |||||||||||||||
Unamortized intangible assets (Filtration) | ||||||||||||||||||||||||||||||||
Trade names | $ | 21.8 | $ | 21.8 | ||||||||||||||||||||||||||||
Amortization expense of intangible assets was $1.1 million and $0.8 million for the three months ended March 31, 2015 and 2014, respectively. Finite-lived intangibles in the Filtration segment are expensed using the straight-line amortization method. The estimated average aggregate amortization expense is $4.0 million in each of the next five years. |
Restructuring_Activities
Restructuring Activities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restructuring and Related Activities [Abstract] | ||||||||
Restructuring Activities | Restructuring and Impairment Activities | |||||||
The Company incurred restructuring and impairment expenses of $4.0 million and $0.1 million in the three months ended March 31, 2015 and 2014, respectively. | ||||||||
The Reconstituted Tobacco segment restructuring and impairment expenses were $3.8 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. During the three months ended March 31, 2015, restructuring and impairment expenses were composed of $3.1 million in severance accruals for employees at our Quimperlé and Spay, France facilities as well as $0.7 million in loss recognized on the sale of equipment from our RTL Philippines location. The 2014 restructuring 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. | ||||||||
Additionally, the Company incurred $0.2 million in restructuring expenses during the first quarter of 2015 related to accruals for severance expenses within supporting overhead departments which were not allocated to a specific segment. | ||||||||
Restructuring liabilities were classified within Accrued Expenses in each of the consolidated balance sheets as of March 31, 2015 and December 31, 2014. Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended March 31, 2015 and December 31, 2014 are summarized as follows ($ in millions): | ||||||||
Three Months Ended | Year Ended | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Balance at beginning of year | $ | 8.7 | $ | 4.7 | ||||
Accruals for announced programs | 3.3 | 11.2 | ||||||
Cash payments | (1.1 | ) | (6.3 | ) | ||||
Exchange rate impacts | (1.0 | ) | (0.9 | ) | ||||
Balance at end of period | $ | 9.9 | $ | 8.7 | ||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Total debt is summarized in the following table ($ in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Credit Agreement - U.S. dollar borrowings | $ | 366 | $ | 354 | ||||
Credit Agreement - euro borrowings | 62.9 | 71.1 | ||||||
French Employee Profit Sharing | 13 | 14.6 | ||||||
Bank Overdrafts | 0.9 | 0.4 | ||||||
Total Debt | 442.8 | 440.1 | ||||||
Less: Current debt | (3.2 | ) | (2.9 | ) | ||||
Long-Term Debt | $ | 439.6 | $ | 437.2 | ||||
Credit Agreement | ||||||||
In December 2013, the Company amended and restated its five-year unsecured revolving credit facility, or Credit Agreement. The Credit Agreement provides for borrowing capacity of $500 million in U.S. dollars or a $300 million equivalent sublimit in euros, with an option to increase borrowing capacity by $200 million. The Credit Agreement contains representations and warranties 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) a minimum interest coverage ratio of 3.50. The Company was in compliance with all of its covenants under the Credit Agreement at March 31, 2015. | ||||||||
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 March 31, 2015, the applicable interest rate on Credit Agreement borrowings was 1.44% on U.S. dollar borrowings and 1.24% on euro borrowings. The outstanding amounts under the facility are due upon maturity in December 2018. | ||||||||
Fair Value of Debt | ||||||||
At March 31, 2015 and December 31, 2014, the estimated fair values of the Company’s current and long-term debt approximated the respective carrying amounts as the interest rates were variable and based on current market indices. | ||||||||
Derivatives
Derivatives | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 or 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 interest rate contracts considered cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. | ||||||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at March 31, 2015 ($ 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 | $ | 2.8 | Accrued Expenses | $ | 11.5 | ||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 8.5 | ||||||||||||
Interest rate contracts | Other Assets | — | Other Liabilities | 0.9 | ||||||||||||
Total derivatives designated as hedges | $ | 2.8 | $ | 20.9 | ||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2014 ($ 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 | $ | 4.8 | ||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 4 | ||||||||||||
Interest rate contracts | Other Assets | — | Other Liabilities | 0.5 | ||||||||||||
Total derivatives designated as hedges | $ | 0.4 | $ | 9.3 | ||||||||||||
The following table provides the gross effect that 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 | Unrealized (Loss) Gain Recognized in AOCI on Derivatives, Net of Tax | Loss Reclassified | ||||||||||||||
from AOCI | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Foreign exchange contracts | $ | (6.7 | ) | $ | 5.9 | $ | (3.1 | ) | $ | (1.4 | ) | |||||
Interest rate contracts | (0.3 | ) | (0.2 | ) | — | — | ||||||||||
Total | $ | (7.0 | ) | $ | 5.7 | $ | (3.1 | ) | $ | (1.4 | ) | |||||
The Company's designated derivative instruments are highly 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 ended March 31, 2015 and 2014. | ||||||||||||||||
The following table provides the effect that derivative instruments not designated as hedging instruments had on net income ($ in millions): | ||||||||||||||||
Derivatives Not Designated as Cash Flow Hedging Instruments | Amount of (Loss) Gain Recognized in Other Income / Expense | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||
Foreign exchange contracts | $ | (1.1 | ) | $ | 0.1 | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Litigation | |
Imposto sobre Circulação 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 on certain raw materials from January 1995 through November 2000, collectively the Raw Materials Assessment. | |
The Raw Materials Assessments 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 Raw Materials Assessments 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 Raw Materials Assessments based on Article 150, VI of the Brazilian Federal Constitution of 1988, which grants immunity from ICMS taxes to papers intended for printing books, newspapers and periodicals, or immune papers, and thus to the raw material inputs used to produce immune papers. | |
Both Raw Materials Assessments are presently on appeal in separate chambers of the Federal Supreme Court of Brazil. SWM-B won a favorable ruling in 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 would be decided by the Federal Supreme Court sitting as a whole. No docket entry has been made yet regarding argument on either assessment. Based on the foreign currency exchange rate at March 31, 2015, the Raw Materials Assessments totaled approximately $32 million, of which approximately $14 million is covered by the above-discussed indemnification. | |
More recently, SWM-B has received assessments from the tax authorities of the State of Rio de Janeiro for unpaid ICMS and Fundo Estadual de Combate à Pobreza (FECP, a value-added tax similar to ICMS) taxes on interstate purchases of electricity. The state issued three sets of assessments against SWM-B, one for May 2006 - November 2007, a second for January 2008 - December 2010, and a third for September 2011 - September 2013, collectively the Electricity Assessments. SWM-B has challenged all three Electricity Assessments in administrative proceedings before the state tax council (in the first-level court Junta de Revisão Fiscal and the appellate court Conselho de Contribuintes) based on Resolution 1.610/89, which defers these taxes on electricity purchased by an "electricity-intensive consumer." | |
SWM-B's challenges to the first two sets of Electricity Assessments were unsuccessful at the first administrative level, but different appeals chambers of the Conselho de Contribuintes reached different conclusions about these assessments, causing the State to appeal the first assessment and SWM-B to appeal the second assessment to the full Conselho de Contribuintes. In October and November 2014, a majority of the Conselho de Contribuintes sitting en banc ruled against SWM-B in each of the first and second electricity assessments. The State has issued notices to SWM-B to pay approximately $8.0 million in the second electricity assessment, and SWM-B expects to shortly receive a notice to pay approximately $4.0 million in the first electricity assessment, based on the foreign currency exchange rate at March 31, 2015. SWM-B intends to challenge these electricity assessments in further court proceedings in the state judicial system, and if necessary, to post a bond in the amount of these notices. SWM-B's challenge to the third electricity assessment (approximately $4.0 million as of March 31, 2015) remains pending at the first administrative level (Junta de Revisão Fiscal). | |
SWM-B believes that both the Raw Materials Assessments and the Electricity Assessments will ultimately be resolved in its favor. No liability has been recorded in our consolidated financial statements for these assessments based on our evaluation of these matters under the facts and law as presently understood. The Company can give no assurance as to the ultimate outcome of such proceedings. | |
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, results of operations or cash flows. 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 are 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 an adverse material effect on its reputation, business, financial condition, results of operations or cash flows. However, as the outcome of such proceedings are unpredictable, 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 OPEB benefits related to postretirement healthcare and life insurance 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 ended March 31, 2015 and 2014 were as follows ($ in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.3 | $ | 0.3 | $ | — | $ | — | ||||||||||||
Interest cost | 1.3 | 1.7 | 0.1 | 0.2 | — | — | ||||||||||||||||||
Expected return on plan assets | (1.8 | ) | (1.5 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||||||
Amortizations and other | 1.4 | 1 | 0.3 | 0.3 | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 0.9 | $ | 1.2 | $ | 0.6 | $ | 0.7 | $ | (0.1 | ) | $ | (0.1 | ) | ||||||||||
During the fiscal year ended December 31, 2015, the Company expects to recognize approximately $5.2 million for amortization of accumulated other comprehensive loss related to its U.S. pension and OPEB plans and approximately $1.1 million for its French pension plans. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
For interim financial reporting, the Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with ASC No. 740-270 “Accounting for Income Taxes in Interim Periods”. The rate so determined is used in providing for income taxes on a year-to-date basis. As the year progresses, the Company refines the estimates of the year’s taxable income as new information becomes available. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Our effective tax rate could fluctuate significantly on a quarterly basis and could be adversely affected to the extent earnings are lower than anticipated in countries that have lower statutory rates and higher than anticipated in countries that have higher statutory rates. Our effective tax rate could also fluctuate due to changes in the valuation of our deferred tax assets or liabilities, or by changes in tax laws, regulations, or accounting principles, as well as certain discrete items. Jurisdictions with a projected loss for the year or an actual year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of including these jurisdictions on the quarterly effective rate calculations could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings verses annual projections. | |
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 months ended March 31, 2015 or 2014. | |
Our effective tax rate from continuing operations was 24.0% and 30.2% for the three months ended March 31, 2015 and March 31, 2014, respectively. The decrease in the effective tax rate is attributed to a change in our geographic mix of earnings with a concentration of earnings from lower taxed jurisdictions, along with the impact of global asset realignment actions and reorganization of foreign operations under a new holding company structure which occurred after the first quarter 2014. | |
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 2011. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Information | Segment Information | |||||||||||||
The Company's three operating product line segments are also the Company's three reportable segments: Paper, Reconstituted Tobacco and Filtration. The Paper segment primarily produces 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 produces 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 RTL and wrapper and binder products for sale to cigarette and cigar manufacturers. The Filtration segment primarily produces thermoplastic nets, nonwoven materials, and laminates which are critical components performing support, separation or filtration functions. | ||||||||||||||
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, 2014. 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 | ||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Paper | $ | 108.6 | 57.8 | % | $ | 128.8 | 62.9 | % | ||||||
Reconstituted Tobacco | 38.9 | 20.7 | 44.2 | 21.6 | ||||||||||
Filtration | 40.5 | 21.5 | 31.7 | 15.5 | ||||||||||
Total Consolidated | $ | 188 | 100 | % | $ | 204.7 | 100 | % | ||||||
($ in millions) | Operating Profit | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Paper | $ | 16.1 | 71.6 | % | $ | 22.5 | 68 | % | ||||||
Reconstituted Tobacco | 10.9 | 48.4 | 16.2 | 48.9 | ||||||||||
Filtration | 2.6 | 11.6 | 0.4 | 1.2 | ||||||||||
Unallocated | (7.1 | ) | (31.6 | ) | (6.0 | ) | (18.1 | ) | ||||||
Total Consolidated | $ | 22.5 | 100 | % | $ | 33.1 | 100 | % | ||||||
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Nature of Business | |
Schweitzer-Mauduit International, Inc., or SWM or the Company, is a multinational diversified producer of premium specialty papers and filtration media 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 and filtration products for use in other industry applications. We manufacture lightweight specialty papers used in manufacturing ventilated cigarettes, banded papers used in the production of lower ignition propensity, or LIP, cigarettes and resin-based plastic netting through an extrusion process, as well as certain meltblown products and machined plastic core tubes. We are also the leading independent producer of reconstituted tobacco used in producing blended cigarettes. | |
The primary products we sell to the tobacco industry include cigarette, plug wrap and base tipping papers, or Cigarette Papers, which are used to wrap various parts of a cigarette, and reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes, reconstituted tobacco wrappers and binders for cigars. We sell these products directly to tobacco companies or their designated converters in the Americas, Europe, Asia and elsewhere. We also sell a diverse mix of products to non-tobacco industries, including low volume, high-value engineered papers and commodity paper grades produced, among other reasons, to maximize our machine utilization. In December 2013, we acquired DelStar, Inc., or DelStar, a manufacturer of plastic netting and other resin-based products mainly focused on the filtration and medical market segments. The acquisition of DelStar diversifies SWM's global presence in advanced materials, particularly in filtration. In December 2014, we acquired in two separate transactions certain assets from Pronamic Industries, Inc. and Smith & Nephew's (SNN) Advanced Wound Management Division which we expect to complement the DelStar acquisition and which have been incorporated into our Filtration operating segment. | |
We conduct business in over 90 countries and operate 17 production locations worldwide, with facilities in the United States, United Kingdom, Canada, France, Luxembourg, Russia, Spain, Brazil, China and Poland. We also have a 50% equity interest in two joint ventures in China: China Tobacco Mauduit (Jiangmen) Paper Industry Ltd., or CTM, which produces cigarette and porous plug wrap papers, and China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. Ltd., or CTS, which produces RTL. | |
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 4. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on February 27, 2015. | |
Principles of Consolidation | |
The condensed 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 is included in the condensed 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 condensed 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 | |
In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The new guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual periods beginning on or after December 15, 2016 and may be implemented using a full retrospective or a modified retrospective application. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In November 2014, the FASB issued ASU 2014-16, "Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity." The update requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). This guidance is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact the adoption will have on our consolidated financial statements. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and requires either a retrospective approach to adoption or a modified retrospective approach, by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This new standard would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liabilities, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this Update.The ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
Basis of Presentation | 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 4. Discontinued Operations. | |
The results of operations are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on February 27, 2015. | |
Principles of Consolidation | Principles of Consolidation |
The condensed 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 is included in the condensed consolidated statements of income as income from equity affiliates. Intercompany balances and transactions have been eliminated. | |
Use of Estimates | 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 condensed 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 | Recent Accounting Pronouncements |
In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The new guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual periods beginning on or after December 15, 2016 and may be implemented using a full retrospective or a modified retrospective application. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In November 2014, the FASB issued ASU 2014-16, "Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity." The update requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). This guidance is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact the adoption will have on our consolidated financial statements. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and requires either a retrospective approach to adoption or a modified retrospective approach, by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This new standard would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liabilities, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this Update.The ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of the adoption on the consolidated financial statements. |
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss were as follows ($ in millions): | |||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Accumulated pension and OPEB liability adjustments, net of income tax of $21.3 million and $21.0 million at March 31, 2015 and December 31, 2014, respectively | $ | (39.0 | ) | $ | (38.4 | ) | ||||||||||||||||||
Accumulated unrealized loss on derivative instruments, net of income tax of $0.4 million and $0.0 million at March 31, 2015 and December 31, 2014, respectively | (18.4 | ) | (8.3 | ) | ||||||||||||||||||||
Accumulated unrealized foreign currency translation adjustments | (78.5 | ) | (29.8 | ) | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | (135.9 | ) | $ | (76.5 | ) | ||||||||||||||||||
Schedule of Comprehensive Income (Loss) | Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
Pre-tax | Tax | Net of | Pre-tax | Tax | Net of | |||||||||||||||||||
Tax | Tax | |||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | (0.9 | ) | $ | 0.3 | $ | (0.6 | ) | $ | 1.2 | $ | (0.4 | ) | $ | 0.8 | |||||||||
Unrealized gain (loss) on derivative instruments | (10.5 | ) | 0.4 | (10.1 | ) | 3.8 | 0.5 | 4.3 | ||||||||||||||||
Unrealized foreign currency translation adjustments | (48.7 | ) | — | (48.7 | ) | (1.7 | ) | — | (1.7 | ) | ||||||||||||||
Total | $ | (60.1 | ) | $ | 0.7 | $ | (59.4 | ) | $ | 3.3 | $ | 0.1 | $ | 3.4 | ||||||||||
Business_Acquisition_Tables
Business Acquisition (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table shows the preliminary fair values assigned to intangible assets ($ in millions): | ||||||||
Preliminary | Weighted-Average Amortization Period (Years) | ||||||||
Fair Value as of December 31, 2014 | |||||||||
Amortizable intangible assets: | |||||||||
Customer relationships | $ | 6.1 | 15 | ||||||
Developed Technology | 2.1 | 20 | |||||||
Patents | 1.5 | 17 | |||||||
Customer contracts | 1.9 | 6 | |||||||
Total | $ | 11.6 | 15 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The cash paid for these acquisitions and the preliminary fair values of the assets acquired and liabilities assumed as of the December 19, 2014 and December 31, 2014 acquisition dates for Pronamic assets and SNN assets, respectively, are as follows ($ in millions): | ||||||||
Preliminary Fair Value as Acquisition Date | |||||||||
Accounts receivable | $ | 3.5 | |||||||
Inventory | 3.2 | ||||||||
Other current assets | 0.2 | ||||||||
Property, plant and equipment | 9.3 | ||||||||
Identifiable intangible assets | 11.6 | ||||||||
Total Assets | 27.8 | ||||||||
Accounts payable | 1.4 | ||||||||
Accrued expenses | 1.4 | ||||||||
Net assets acquired | 25 | ||||||||
Goodwill | 5 | ||||||||
Cash paid | $ | 30 | |||||||
Business Acquisition, Pro Forma Information | In December 2014, the Company acquired certain assets from Pronamic Industries, Inc., or Pronamic, and Smith & Nephew, or SNN. As a result of the acquisition, these assets were incorporated into SWM's Filtration segment. The acquisition of these assets provides further opportunities for growth into the filtration and healthcare industries. These acquisitions are being treated as business combinations and accounted for in accordance with the guidance provided by ASC 805, Business Combinations. The purchase price included initial cash payments of $30.7 million, net of $0.7 million in working capital adjustments. An additional variable payment of up to $3.5 million in connection with one of the acquisitions may be due based on the performance of the assets over a period from the acquisition date through December 31, 2015, of which $1.0 million was recorded as a payable based on management's estimate of the fair value of the variable consideration payable. Of the amount recorded $0.5 million was reversed through other income on the condensed consolidated statement of income in the first quarter of 2015 based on updated estimates of future performance. | ||||||||
The amounts of the unaudited pro forma Net Sales and Income from Continuing Operations of the combined entity had the acquisition date been January 1, 2014 are as follows ($ in millions): | |||||||||
Net Sales | Income from Continuing Operations | ||||||||
2014 Supplemental Pro Forma from January 1, 2014 - March 31, 2014 | $ | 212 | $ | 23.9 | |||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of disposal groups, including discontinued operations , balance sheet | Included in Other Current Assets, Other 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): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Assets of discontinued operations: | ||||||||
Current assets | $ | 2 | $ | 1.6 | ||||
Other assets | 2.5 | 2.3 | ||||||
Liabilities of discontinued operations: | ||||||||
Current liabilities | 0.1 | 0.1 | ||||||
Net_Income_Per_ShareTables
Net Income Per Share(Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings 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 | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Numerator (basic and diluted): | ||||||||
Net income | $ | 18.8 | $ | 23.2 | ||||
Less: Dividends paid to participating securities | (0.2 | ) | (0.1 | ) | ||||
Less: Undistributed earnings available to participating securities | — | (0.1 | ) | |||||
Undistributed and distributed earnings available to common stockholders | $ | 18.6 | $ | 23 | ||||
Denominator: | ||||||||
Average number of common shares outstanding | 30,178.30 | 30,665.90 | ||||||
Effect of dilutive stock-based compensation | 114.9 | 112.3 | ||||||
Average number of common and potential common shares outstanding | 30,293.20 | 30,778.20 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventories by major class | The following schedule details inventories by major class ($ in millions): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 33.5 | $ | 35.1 | ||||
Work in process | 16.7 | 17.4 | ||||||
Finished goods | 36.3 | 40.4 | ||||||
Supplies and other | 13.7 | 15.5 | ||||||
Total | $ | 100.2 | $ | 108.4 | ||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment for the three months ended March 31, 2015 were as follows ($ in millions): | |||||||||||
Reconstituted Tobacco | Filtration | Total | ||||||||||
Goodwill as of December 31, 2014 | $ | 5.3 | $ | 120.2 | $ | 125.5 | ||||||
Foreign currency translation adjustments | (0.6 | ) | (0.4 | ) | (1.0 | ) | ||||||
Goodwill as of March 31, 2015 | $ | 4.7 | $ | 119.8 | $ | 124.5 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): | |||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Foreign Currency Impact | Net | Gross | Accumulated | Foreign Currency Impact | Net | |||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||||||||||
Customer-related intangibles | $ | 10 | $ | 10 | $ | — | $ | — | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||||||||||
(Reconstituted Tobacco) | ||||||||||||||||||||||||||||||||
Customer Relationships (Filtration) | 51.4 | 2.7 | (0.4 | ) | 48.3 | 51.4 | 2.1 | — | 49.3 | |||||||||||||||||||||||
Developed Technology | 16 | 1.6 | (0.1 | ) | 14.3 | 16 | 1.2 | — | 14.8 | |||||||||||||||||||||||
(Filtration) | ||||||||||||||||||||||||||||||||
Customer Contracts (Filtration) | 1.9 | 0.1 | — | 1.8 | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Patents (Filtration) | 1.5 | — | — | 1.5 | 1.5 | — | — | 1.5 | ||||||||||||||||||||||||
Total | $ | 80.8 | $ | 14.4 | $ | (0.5 | ) | $ | 65.9 | $ | 80.8 | $ | 13.3 | $ | — | $ | 67.5 | |||||||||||||||
Unamortized intangible assets (Filtration) | ||||||||||||||||||||||||||||||||
Trade names | $ | 21.8 | $ | 21.8 | ||||||||||||||||||||||||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, 2015 and December 31, 2014 are summarized as follows ($ in millions): | |||||||
Three Months Ended | Year Ended | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Balance at beginning of year | $ | 8.7 | $ | 4.7 | ||||
Accruals for announced programs | 3.3 | 11.2 | ||||||
Cash payments | (1.1 | ) | (6.3 | ) | ||||
Exchange rate impacts | (1.0 | ) | (0.9 | ) | ||||
Balance at end of period | $ | 9.9 | $ | 8.7 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Total Debt | Total debt is summarized in the following table ($ in millions): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Credit Agreement - U.S. dollar borrowings | $ | 366 | $ | 354 | ||||
Credit Agreement - euro borrowings | 62.9 | 71.1 | ||||||
French Employee Profit Sharing | 13 | 14.6 | ||||||
Bank Overdrafts | 0.9 | 0.4 | ||||||
Total Debt | 442.8 | 440.1 | ||||||
Less: Current debt | (3.2 | ) | (2.9 | ) | ||||
Long-Term Debt | $ | 439.6 | $ | 437.2 | ||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 ($ 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 | $ | 2.8 | Accrued Expenses | $ | 11.5 | ||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 8.5 | ||||||||||||
Interest rate contracts | Other Assets | — | Other Liabilities | 0.9 | ||||||||||||
Total derivatives designated as hedges | $ | 2.8 | $ | 20.9 | ||||||||||||
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2014 ($ 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 | $ | 4.8 | ||||||||||
Foreign exchange contracts | Other Assets | — | Other Liabilities | 4 | ||||||||||||
Interest rate contracts | Other Assets | — | Other Liabilities | 0.5 | ||||||||||||
Total derivatives designated as hedges | $ | 0.4 | $ | 9.3 | ||||||||||||
Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | The following table provides the gross effect that 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 | Unrealized (Loss) Gain Recognized in AOCI on Derivatives, Net of Tax | Loss Reclassified | ||||||||||||||
from AOCI | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Foreign exchange contracts | $ | (6.7 | ) | $ | 5.9 | $ | (3.1 | ) | $ | (1.4 | ) | |||||
Interest rate contracts | (0.3 | ) | (0.2 | ) | — | — | ||||||||||
Total | $ | (7.0 | ) | $ | 5.7 | $ | (3.1 | ) | $ | (1.4 | ) | |||||
Schedule of derivative instruments, gain (loss) in income statement | The following table provides the effect that derivative instruments not designated as hedging instruments had on net income ($ in millions): | |||||||||||||||
Derivatives Not Designated as Cash Flow Hedging Instruments | Amount of (Loss) Gain Recognized in Other Income / Expense | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||
Foreign exchange contracts | $ | (1.1 | ) | $ | 0.1 | |||||||||||
Recovered_Sheet1
Postretirement and Other Benefits Pension and OPEB Benefits (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Postretirement and Other Benefits [Abstract] | ||||||||||||||||||||||||
Schedule of Net Benefit Costs | 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 ended March 31, 2015 and 2014 were as follows ($ in millions): | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.3 | $ | 0.3 | $ | — | $ | — | ||||||||||||
Interest cost | 1.3 | 1.7 | 0.1 | 0.2 | — | — | ||||||||||||||||||
Expected return on plan assets | (1.8 | ) | (1.5 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||||||
Amortizations and other | 1.4 | 1 | 0.3 | 0.3 | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 0.9 | $ | 1.2 | $ | 0.6 | $ | 0.7 | $ | (0.1 | ) | $ | (0.1 | ) | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Segment Reporting Information, by Segments | ||||||||||||||
($ in millions) | Net Sales | |||||||||||||
Three months ended | ||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Paper | $ | 108.6 | 57.8 | % | $ | 128.8 | 62.9 | % | ||||||
Reconstituted Tobacco | 38.9 | 20.7 | 44.2 | 21.6 | ||||||||||
Filtration | 40.5 | 21.5 | 31.7 | 15.5 | ||||||||||
Total Consolidated | $ | 188 | 100 | % | $ | 204.7 | 100 | % | ||||||
($ in millions) | Operating Profit | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||
Paper | $ | 16.1 | 71.6 | % | $ | 22.5 | 68 | % | ||||||
Reconstituted Tobacco | 10.9 | 48.4 | 16.2 | 48.9 | ||||||||||
Filtration | 2.6 | 11.6 | 0.4 | 1.2 | ||||||||||
Unallocated | (7.1 | ) | (31.6 | ) | (6.0 | ) | (18.1 | ) | ||||||
Total Consolidated | $ | 22.5 | 100 | % | $ | 33.1 | 100 | % | ||||||
Components_of_Accumulated_Comp
Components of Accumulated Comprehensive Income (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Comprehensive Income [Abstract] | ||
Accumulated pension and OPEB liability adjustments, net of income tax of $21.3 million and $21.0 million at March 31, 2015 and December 31, 2014, respectively | ($39) | ($38.40) |
Accumulated unrealized loss on derivative instruments, net of income tax of $0.4 million and $0.0 million at March 31, 2015 and December 31, 2014, respectively | -18.4 | -8.3 |
Accumulated unrealized foreign currency translation adjustments | -78.5 | -29.8 |
Accumulated other comprehensive loss | -135.9 | -76.5 |
Accumulated pension and OPEB tax | 21.3 | 21 |
Accumulated tax on gain (loss) on financial instruments | $0.40 | $0 |
General_Details
General (Details) | Mar. 31, 2015 |
production_locations | |
country | |
Nature of Business [Line Items] | |
Number of countries in which entity operates | 90 |
Number of production locations | 17 |
China [Member] | |
Nature of Business [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Number of joint ventures | 2 |
Changes_in_Components_of_Other
Changes in Components of Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income [Abstract] | ||
Pension and OPEB liability adjustments, pre-tax | ($0.90) | $1.20 |
Unrealized gain (loss) on financial instruments, net of realized gain (loss), pre-tax | -10.5 | 3.8 |
Unrealized foreign currency translation adjustments, pre-tax | -48.7 | -1.7 |
Total other comprehensive income (loss), pre-tax | -60.1 | 3.3 |
Pension and OPEB liability adjustments, Tax | 0.3 | -0.4 |
Unrealized gain (loss) on financial instruments, net of realized gain (loss), Tax | 0.4 | 0.5 |
Unrealized foreign currency translation adjustments, Tax | 0 | 0 |
Total other comprehensive income (loss), Tax | 0.7 | 0.1 |
Pension and OPEB liability adjustments, Net of Tax | -0.6 | 0.8 |
Unrealized gain (loss) on financial instruments, net of realized gain (loss), Net of Tax | -10.1 | 4.3 |
Unrealized foreign currency translation adjustments, Net of Tax | -48.7 | -1.7 |
Other Comprehensive (Loss) Income | ($59.40) | $3.40 |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 19, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Income (Loss) from Continuing Operations Attributable to Parent | $18.80 | $23.20 | ||
Goodwill | 124.5 | 125.5 | ||
Pronamic And SNN [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 3.5 | |||
Business Combination, Working Capital Adjustments | 0.7 | |||
Cash consideration | 30.7 | |||
Goodwill | 5 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 0.5 | 3.5 | ||
Business Combination, Contingent Consideration, Liability | 1 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 3.2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 0.2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 9.3 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11.6 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 27.8 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 1.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 25 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 30 | |||
Acquisition-related Costs [Member] | DelStar [Member] | ||||
Business Acquisition [Line Items] | ||||
Income (Loss) from Continuing Operations Attributable to Parent | ($0.30) | ($1.30) |
Business_Acquisition_Acquired_
Business Acquisition Acquired Intangible Assets (Details) (Pronamic And SNN [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $11.60 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Customer relationships [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 6.1 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Developed Technology [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2.1 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Patents [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 1.5 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years |
Customer Contracts [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $1.90 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
Business_Acquisition_Business_
Business Acquisition Business Acquisition Pro Forma (Details) (DelStar [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
DelStar [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Revenue | $212 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax | $23.90 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets of discontinued operations: | ||
Current assets | $2 | $1.60 |
Other assets | 2.5 | 2.3 |
Liabilities of discontinued operations: | ||
Current liabilities | $0.10 | $0.10 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator (basic and diluted): | ||
Net income | $18.80 | $23.20 |
Less: Dividends paid to participating securities | -0.2 | -0.1 |
Less: Undistributed earnings available to participating securities | 0 | -0.1 |
Undistributed and distributed earnings available to common stockholders | $18.60 | $23 |
Denominator: | ||
Average number of common shares outstanding (in shares) | 30,178,300 | 30,665,900 |
Effect of dilutive stock-based compensation (in shares) | 114,900 | 112,300 |
Average number of common and potential common shares outstanding (in shares) | 30,293,200 | 30,778,200 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $33.50 | $35.10 |
Work in process | 16.7 | 17.4 |
Finished goods | 36.3 | 40.4 |
Supplies and other | 13.7 | 15.5 |
Total | $100.20 | $108.40 |
Goodwill_Carrying_Amount_of_Go
Goodwill Carrying Amount of Goodwill By Segment (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill beginning of period, net | $125.50 |
Foreign currency translation adjustments | -1 |
Goodwill end of period, net | 124.5 |
Reconstituted Tobacco [Member] | |
Goodwill [Roll Forward] | |
Goodwill beginning of period, net | 5.3 |
Foreign currency translation adjustments | -0.6 |
Goodwill end of period, net | 4.7 |
Filtration [Member] | |
Goodwill [Roll Forward] | |
Goodwill beginning of period, net | 120.2 |
Foreign currency translation adjustments | -0.4 |
Goodwill end of period, net | $119.80 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $80.80 | $80.80 | |
Accumulated Amortization | 14.4 | 13.3 | |
Translation Adjustment Functional to Reporting Currency, Net of Tax | -0.5 | ||
Net Carrying Amount | 65.9 | 67.5 | |
Amortization Expense of Intangible Assets | 1.1 | 0.8 | |
Estimated Amortization Expense | |||
For the year ended December 31, 2014 | 4.2 | ||
For the year ended December 31, 2015 | 4.2 | ||
For the year ended December 31, 2016 | 3.8 | ||
For the year ended December 31, 2017 | 3.8 | ||
For the year ended December 31, 2018 | 3.8 | ||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 3.96 | ||
Filtration [Member] | Trade names [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Unamortized intangible assets | 21.8 | 21.8 | |
Customer-Related Intangibles [Member] | Reconstituted Tobacco [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 10 | 10 | |
Accumulated Amortization | 10 | 10 | |
Net Carrying Amount | 0 | 0 | |
Customer relationships [Member] | Filtration [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 51.4 | 51.4 | |
Accumulated Amortization | 2.7 | 2.1 | |
Translation Adjustment Functional to Reporting Currency, Net of Tax | -0.4 | ||
Net Carrying Amount | 48.3 | 49.3 | |
Developed Technology Rights [Member] | Filtration [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 16 | 16 | |
Accumulated Amortization | 1.6 | 1.2 | |
Translation Adjustment Functional to Reporting Currency, Net of Tax | -0.1 | ||
Net Carrying Amount | 14.3 | 14.8 | |
Customer Contracts [Member] | Filtration [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1.9 | 1.9 | |
Accumulated Amortization | 0.1 | 0 | |
Net Carrying Amount | 1.8 | 1.9 | |
Patents [Member] | Filtration [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1.5 | 1.5 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | $1.50 | $1.50 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Impairment | $4 | $0.10 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of year | 8.7 | 4.7 | 4.7 |
Accruals for announced programs | 3.3 | 11.2 | |
Cash payments | -1.1 | -6.3 | |
Exchange rate impacts | -1 | -0.9 | |
Balance at end of period | 9.9 | 8.7 | |
Reconstituted Tobacco [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Impairment | 3.8 | 0.1 | |
Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Impairment | $0.20 |
Debt_Schedule_of_Debt_Summariz
Debt Schedule of Debt Summarized (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total | $442.80 | $440.10 |
Less: Current debt | -3.2 | -2.9 |
Long-Term Debt | 439.6 | 437.2 |
French Employee Profit Sharing [Member] | ||
Debt Instrument [Line Items] | ||
Total | 13 | 14.6 |
Bank Overdrafts [Member] | ||
Debt Instrument [Line Items] | ||
Total | 0.9 | 0.4 |
Euro Revolver [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total | 62.9 | 71.1 |
US Revolver [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total | $366 | $354 |
Debt_Details
Debt (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2015 | |
Line of Credit [Member] | Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Maximum borrowings under credit facility | $500,000,000 | $500,000,000 | |
Credit facility accordion feature | 200,000,000 | 200,000,000 | |
Covenant provisions | the Company to maintain (a) a maximum net debt to EBITDA ratio of 3.00 and (b) a minimum interest coverage ratio of 3.50. The Company was in compliance with all of its covenants under the Credit Agreement at March 31, 2015. | ||
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% | ||
Line of Credit [Member] | Euro Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Applicable interest rate (in hundredths) | 1.24% | ||
Line of Credit, Sublimit In Euro [Member] | Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowings under credit facility | $300,000,000 | $300,000,000 |
Derivatives_by_Balance_Sheet_L
Derivatives by Balance Sheet Location (Details) (Designated as Hedging Instrument [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $2.80 | $0.40 |
Liability Derivatives | 20.9 | 9.3 |
Foreign Exchange Contract [Member] | Accounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 2.8 | 0.4 |
Foreign Exchange Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Foreign Exchange Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 11.5 | 4.8 |
Foreign Exchange Contract [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 8.5 | 4 |
Interest Rate Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Interest Rate Contract [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $0.90 | $0.50 |
Derivatives_by_Income_Statemen
Derivatives by Income Statement Location (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized (Loss) Gain Recognized in AOCI on Derivatives, Net of Tax | ($7) | $5.70 |
Loss Reclassified from AOCI | -3.1 | -1.4 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized (Loss) Gain Recognized in AOCI on Derivatives, Net of Tax | -6.7 | 5.9 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss Reclassified from AOCI | -3.1 | -1.4 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized (Loss) Gain Recognized in AOCI on Derivatives, Net of Tax | -0.3 | -0.2 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss Reclassified from AOCI | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Income Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Gain Recognized in Other Income / Expense | ($1.10) | $0.10 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Unfavorable Regulatory Action [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2000 |
In Millions, unless otherwise specified | assessment | |
Raw Materials Assessment [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 | $32 | |
Portion covered by indemnification | 14 | |
Second Electricity Assessment [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, range of possible loss, maximum | 8 | |
Electricity Assessment One [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, range of possible loss, maximum | 4 | |
Third Electricity Assessment [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, range of possible loss, maximum | $4 |
Net_Pension_Benefit_Costs_Deta
Net Pension Benefit Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $0 | $0 |
Interest cost | 1.3 | 1.7 |
Expected return on plan assets | -1.8 | -1.5 |
Amortization and other | 1.4 | 1 |
Net periodic benefit cost | 0.9 | 1.2 |
Pension and other postretirement benefit plans, amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 5.2 | |
Foreign Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0.3 | 0.3 |
Interest cost | 0.1 | 0.2 |
Expected return on plan assets | -0.1 | -0.1 |
Amortization and other | 0.3 | 0.3 |
Net periodic benefit cost | 0.6 | 0.7 |
Pension and other postretirement benefit plans, amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 1.1 | |
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 | 0 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization and other | -0.1 | -0.1 |
Net periodic benefit cost | ($0.10) | ($0.10) |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | 3 | |
Net Sales [Abstract] | ||
Net Sales | $188 | $204.70 |
Percentage of Net Sales (in hundredths) | 100.00% | 100.00% |
Operating Profit [Abstract] | ||
Operating Profit | 22.5 | 33.1 |
Operating Profit (in hundredths) | 100.00% | 100.00% |
Paper [Member] | ||
Net Sales [Abstract] | ||
Net Sales | 108.6 | 128.8 |
Percentage of Net Sales (in hundredths) | 57.80% | 62.90% |
Operating Profit [Abstract] | ||
Operating Profit | 16.1 | 22.5 |
Operating Profit (in hundredths) | 71.60% | 68.00% |
Reconstituted Tobacco [Member] | ||
Net Sales [Abstract] | ||
Net Sales | 38.9 | 44.2 |
Percentage of Net Sales (in hundredths) | 20.70% | 21.60% |
Operating Profit [Abstract] | ||
Operating Profit | 10.9 | 16.2 |
Operating Profit (in hundredths) | 48.40% | 48.90% |
Filtration [Member] | ||
Net Sales [Abstract] | ||
Net Sales | 40.5 | 31.7 |
Percentage of Net Sales (in hundredths) | 21.50% | 15.50% |
Operating Profit [Abstract] | ||
Operating Profit | 2.6 | 0.4 |
Operating Profit (in hundredths) | 11.60% | 1.20% |
Unallocated Amount to Segment [Member] | ||
Operating Profit [Abstract] | ||
Operating Profit | ($7.10) | ($6) |
Operating Profit (in hundredths) | -31.60% | -18.10% |