Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
DEI [Abstract] | ||
Entity Registrant Name | SCHWEITZER MAUDUIT INTERNATIONAL INC | |
Entity Central Index Key | 1,000,623 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,555,531 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net Sales | $ 217.3 | $ 181.9 | $ 431.9 | $ 369.9 |
Cost of products sold | 150.4 | 127.1 | 301.5 | 263.7 |
Gross Profit | 66.9 | 54.8 | 130.4 | 106.2 |
Selling expense | 6.4 | 5.1 | 12.8 | 10.5 |
Research expense | 4.4 | 3.7 | 8.7 | 7 |
General expense | 17.7 | 16.8 | 37.1 | 33 |
Total nonmanufacturing expenses | 28.5 | 25.6 | 58.6 | 50.5 |
Restructuring and impairment expense | 0.9 | 5.2 | 2.7 | 9.2 |
Operating Profit | 37.5 | 24 | 69.1 | 46.5 |
Interest expense | 4.1 | 1.9 | 8.7 | 3.6 |
Other income, net | 1 | 6.1 | 3.3 | 8.2 |
Income from Continuing Operations before Income Taxes and Income from Equity Affiliates | 34.4 | 28.2 | 63.7 | 51.1 |
Provision for income taxes | 9.1 | 6.5 | 17.2 | 12 |
Income from equity affiliates, net of income taxes | 0.7 | 2.8 | 0.6 | 4.2 |
Income from Continuing Operations | 26 | 24.5 | 47.1 | 43.3 |
Loss from Discontinued Operations | 0 | 1.1 | 0 | 1.1 |
Net Income | $ 26 | $ 23.4 | $ 47.1 | $ 42.2 |
Net Income per Share - Basic: | ||||
Income per share from continuing operations (in dollars per share) | $ 0.85 | $ 0.80 | $ 1.54 | $ 1.42 |
Income (loss) per share from discontinued operations (in dollars per share) | 0 | (0.04) | 0 | (0.04) |
Net income per share - basic (in dollars per share) | 0.85 | 0.76 | 1.54 | 1.38 |
Net Income per Share – Diluted: | ||||
Income per share from continuing operations (in dollars per share) | 0.85 | 0.80 | 1.54 | 1.41 |
Income (loss) per share from discontinued operations (in dollars per share) | 0 | (0.04) | 0 | (0.04) |
Net income per share - diluted (in dollars per share) | $ 0.85 | $ 0.76 | $ 1.54 | $ 1.37 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 30,313,200 | 30,274,300 | 30,304,100 | 30,226,600 |
Diluted (in shares) | 30,447,700 | 30,397,000 | 30,435,200 | 30,345,400 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 26 | $ 23.4 | $ 47.1 | $ 42.2 |
Other Comprehensive Income (Loss), net of tax: | ||||
Foreign currency translation adjustments | (8.9) | 12.9 | 5.1 | (35.8) |
Unrealized gains (losses) on derivative instruments | 2.1 | 1.9 | 12 | (9.7) |
Less: Reclassification adjustment for losses on derivative instruments included in net income | 3.6 | 2.1 | 5.6 | 3.6 |
Reclassification adjustment for amortization of postretirement benefit plans' costs (gains) included in net periodic benefit cost | 1.6 | (0.7) | 1.1 | (1.3) |
Other Comprehensive Income (Loss) | (1.6) | 16.2 | 23.8 | (43.2) |
Comprehensive Income (Loss) | $ 24.4 | $ 39.6 | $ 70.9 | $ (1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 143.8 | $ 186.5 |
Accounts receivable, net | 126.6 | 119.4 |
Inventories | 108.1 | 112.4 |
Assets held for sale | 20.7 | 21.9 |
Other current assets | 6 | 4.6 |
Total Current Assets | 405.2 | 444.8 |
Property, Plant and Equipment, net | 307.1 | 308.1 |
Deferred Income Tax Benefits | 0.1 | 0.1 |
Investment in Equity Affiliates | 66 | 67.5 |
Goodwill | 232.5 | 233.3 |
Intangible Assets | 206.9 | 213.9 |
Other Assets | 25.7 | 22.3 |
Total Assets | 1,243.5 | 1,290 |
Current Liabilities | ||
Current debt | 3.7 | 3.3 |
Accounts payable | 42.4 | 49 |
Income taxes payable | 3.3 | 5.3 |
Accrued expenses | 66.9 | 85.5 |
Total Current Liabilities | 116.3 | 143.1 |
Long-Term Debt | 506.8 | 568.2 |
Pension and Other Postretirement Benefits | 33.3 | 33.5 |
Deferred Income Tax Liabilities | 44.3 | 45.3 |
Other Liabilities | 26.5 | 32 |
Total Liabilities | 727.2 | 822.1 |
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; 30,553,204 and 30,474,149 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 3 | 3 |
Additional paid-in-capital | 56.2 | 53.7 |
Retained earnings | 574.7 | 552.6 |
Accumulated other comprehensive loss, net of tax | (117.6) | (141.4) |
Total Stockholders’ Equity | 516.3 | 467.9 |
Total Liabilities and Stockholders’ Equity | $ 1,243.5 | $ 1,290 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock (in dollars per share) | $ 0.1 | $ 0.1 |
Preferred shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Common stock (in dollars per share) | $ 0.1 | $ 0.1 |
Common shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares issued (in shares) | 30,553,204 | 30,474,149 |
Common stock outstanding (in shares) | 30,553,204 | 30,474,149 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 489 | $ 3 | $ 49.8 | $ 512.7 | $ (76.5) |
Beginning Balance (in shares) at Dec. 31, 2014 | 30,465,522 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 42.2 | 42.2 | |||
Other comprehensive income (loss), net of tax | (43.2) | (43.2) | |||
Dividends declared ($0.80 per share in 2016 and $0.76 per share in 2015) | (23.1) | (23.1) | |||
Restricted stock issuances, net | 0 | $ 0 | 0 | ||
Restricted stock issuances, net (in shares) | 70,449 | ||||
Stock-based employee compensation expense | 1.5 | 1.5 | |||
Excess tax benefits (expense) of stock-based employee compensation | 0.5 | 0.5 | |||
Stock issued to directors as compensation | 0.1 | $ 0 | 0.1 | ||
Stock issued to directors as compensation (in shares) | 1,698 | ||||
Purchases and retirement of common stock | (2.9) | $ 0 | (2.9) | ||
Purchases and retirement of common stock (in shares) | (63,365) | ||||
Ending Balance at Jun. 30, 2015 | 464.1 | $ 3 | 51.9 | 528.9 | (119.7) |
Ending Balance (in shares) at Jun. 30, 2015 | 30,474,304 | ||||
Beginning Balance at Dec. 31, 2015 | 467.9 | $ 3 | 53.7 | 552.6 | (141.4) |
Beginning Balance (in shares) at Dec. 31, 2015 | 30,474,149 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 47.1 | 47.1 | |||
Other comprehensive income (loss), net of tax | 23.8 | 23.8 | |||
Dividends declared ($0.80 per share in 2016 and $0.76 per share in 2015) | (24.4) | (24.4) | |||
Restricted stock issuances, net | 0 | $ 0 | 0 | ||
Restricted stock issuances, net (in shares) | 94,260 | ||||
Stock-based employee compensation expense | 2.6 | 2.6 | |||
Excess tax benefits (expense) of stock-based employee compensation | (0.2) | (0.2) | |||
Stock issued to directors as compensation | 0.1 | $ 0 | 0.1 | ||
Stock issued to directors as compensation (in shares) | 3,333 | ||||
Purchases and retirement of common stock | (0.6) | $ 0 | (0.6) | ||
Purchases and retirement of common stock (in shares) | (18,538) | ||||
Ending Balance at Jun. 30, 2016 | $ 516.3 | $ 3 | $ 56.2 | $ 574.7 | $ (117.6) |
Ending Balance (in shares) at Jun. 30, 2016 | 30,553,204 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.8 | $ 0.76 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flow - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating | ||
Net Income | $ 47.1 | $ 42.2 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | (1.1) |
Income from Continuing Operations | 47.1 | 43.3 |
Non-cash items included in net income: | ||
Depreciation and amortization | 22.1 | 19.5 |
Restructuring-related impairment | 0.5 | 3.5 |
Deferred income tax provision | 0.2 | 0.9 |
Pension and other postretirement benefits | 1.8 | 2.3 |
Stock-based compensation | 2.7 | 1.6 |
Loss (income) from equity affiliates | (0.6) | (4.2) |
Gain on sale of intangible assets | (1.8) | (4.3) |
Excess tax expense (benefits) of stock-based awards | 0.2 | (0.5) |
Proceeds from Equity Method Investment, Dividends or Distributions | 0 | 3.9 |
Other items | (1.6) | 0.5 |
Changes in operating working capital: | ||
Accounts receivable | (4.9) | (17.9) |
Inventories | 7.7 | (4.4) |
Prepaid expenses | (1.3) | (0.7) |
Accounts payable | (6.8) | (1.6) |
Accrued expenses | (11.4) | (0.7) |
Accrued income taxes | (1.6) | 14.2 |
Net changes in operating working capital - (use) source | (18.3) | (11.1) |
Net cash provided by (used in) operating activities of: | ||
Continuing operations | 52.3 | 55.4 |
Discontinued operations | (0.1) | 0.3 |
Net Cash Provided by Operations | 52.2 | 55.7 |
Investing | ||
Capital spending | (9.7) | (9.1) |
Capitalized software costs | (0.9) | (0.5) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (0.4) |
Other investing | 1.9 | 2.4 |
Net Cash Used in Investing | (8.7) | (7.6) |
Financing | ||
Cash dividends paid to SWM stockholders | (24.4) | (23.1) |
Changes in short-term debt | 0.5 | 0.3 |
Proceeds from issuances of long-term debt | 31.6 | 27.4 |
Payments on long-term debt | (96.9) | (62) |
Purchases of common stock | (0.6) | (2.9) |
Excess tax benefits of stock-based awards | (0.2) | 0.5 |
Net Cash Used in Financing | (90) | (59.8) |
Effect of exchange rate changes on cash and cash equivalents | 3.8 | (20.9) |
Decrease in cash and cash equivalents | (42.7) | (32.6) |
Cash and cash equivalents at beginning of period | 186.5 | 290.3 |
Cash and cash equivalents at end of period | 143.8 | 257.7 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | 7.4 | 3.7 |
Cash paid for taxes, net | 18 | (4) |
Change in capital spending in accounts payable and accrued liabilities | $ 1.8 | $ 2.6 |
General
General | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Business Schweitzer-Mauduit International, Inc., or SWM or the Company, headquartered in Alpharetta, Georgia in the United States of America, is a multinational diversified producer of highly engineered solutions and advanced materials for a variety of industries. The Company maintains two operating product line segments: Engineered Papers and Advanced Materials and Structures. Historically, through its Engineered Papers, or EP, segment, the Company has primarily served the tobacco industry via the manufacture and sale of paper and reconstituted tobacco products, which remains a key focus. The primary products sold 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, reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes, and reconstituted tobacco wrappers and binders for cigars. These products are sold directly to tobacco companies or their designated converters in the Americas, Europe, Asia, Africa, the Middle East and elsewhere. The EP segment is a manufacturer of lightweight specialty papers used in manufacturing banded papers used in the production of lower ignition propensity, or LIP, cigarettes and also produces premium specialized papers for other applications, including low volume specialized commercial and industrial commodity paper grades produced, among other reasons, to maximize machine utilization. Through its Advanced Materials & Structures, or AMS, segment, the Company is a specialty producer of resin-based plastic netting through an extrusion process, as well as certain meltblown products, machined plastic core tubes, urethane films, and resin-based rolled products for use in other end segments, such as filtration, surface protection, medical and other industrials. As discussed more fully in Note 3. Business Acquisitions, in October 2015, the Company completed the acquisition of Argotec Intermediate Holdings, LLC, or Argotec, a manufacturer of urethane films for use in high-performance niche applications such as surface and automotive paint protection, glass lamination, medical woundcare and other industrial uses. This acquisition has been incorporated into the AMS segment. The Company has operations in the United States, United Kingdom, Canada, France, Luxembourg, Russia, Brazil, China and Poland, conducts business in over 90 countries, and operates 18 production locations worldwide. The Company also has 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 and these notes thereto 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, 2015, as filed with the SEC on February 26, 2016. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its 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 (loss) 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 and rebates, 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, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). This 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. In August 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This update requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using the Last-in, First-out, or LIFO, or the retail inventory method. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard makes several modifications to existing guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASC 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Equity [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, net of tax, were as follows ($ in millions): June 30, 2016 December 31, 2015 Accumulated pension and OPEB liability adjustments, net of income tax of $20.3 million and $21.9 million at June 30, 2016 and December 31, 2015, respectively $ (34.5 ) $ (35.6 ) Accumulated unrealized loss on derivative instruments, net of income tax of $4.2 million and $0.3 million at June 30, 2016 and December 31, 2015, respectively (4.0 ) (21.6 ) Accumulated unrealized foreign currency translation adjustments (79.1 ) (84.2 ) Accumulated other comprehensive loss $ (117.6 ) $ (141.4 ) Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): Three Months Ended June 30, 2016 June 30, 2015 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Unrealized gain (loss) on Pension and OPEB liability adjustments $ 3.4 $ (1.8 ) $ 1.6 $ (1.1 ) $ 0.4 $ (0.7 ) Unrealized gain (loss) on derivative instruments 5.7 — 5.7 4.1 (0.1 ) 4.0 Unrealized (loss) gain on foreign currency translation (8.9 ) — (8.9 ) 12.9 — 12.9 Total $ 0.2 $ (1.8 ) $ (1.6 ) $ 15.9 $ 0.3 $ 16.2 Six Months Ended June 30, 2016 June 30, 2015 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Unrealized gain (loss) on Pension and OPEB liability adjustments $ 2.7 $ (1.6 ) $ 1.1 $ (2.0 ) $ 0.7 $ (1.3 ) Unrealized gain (loss) on derivative instruments 13.7 3.9 17.6 (6.4 ) 0.3 (6.1 ) Unrealized gain (loss) on foreign currency translation 5.1 — 5.1 (35.8 ) — (35.8 ) Total $ 21.5 $ 2.3 $ 23.8 $ (44.2 ) $ 1.0 $ (43.2 ) |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On October 28, 2015, the Company completed the acquisition of Argotec Intermediate Holdings, LLC, or Argotec, through an Equity Interest Purchase Agreement entered into on September 17, 2015, by and among the Company, SWM Argotec, LLC, an indirect wholly-owned subsidiary of the Company, Argotec Intermediate Holdings Two LLC, and certain equity holders of Argotec Holdings LLC. The acquisition of Argotec expanded and diversified SWM's global presence in advanced materials and has been incorporated into the Company's AMS segment. As of June 30, 2016, the fair values of the assets acquired and liabilities assumed are provisional because final appraisals have not yet been completed. As consideration, the Company paid $282.7 million in cash, subject to certain customary post-closing adjustments, primarily for the adjusted value of working capital at the acquisition date. The acquisition was financed using borrowings under the Company's Amended Credit Agreement, see Note 10. Debt, for additional information. The consideration paid for Argotec and the preliminary fair values of the assets acquired and liabilities assumed as of the October 28, 2015 acquisition date were as follows ($ in millions): Preliminary Fair Value as of October 28, 2015 Cash and cash equivalents $ 2.7 Accounts receivable 16.1 Inventory 16.3 Other current assets 0.1 Property, plant and equipment 15.9 Other noncurrent assets 0.1 Identifiable intangible assets 131.0 Total Assets 182.2 Accounts payable 4.6 Accrued expenses 4.5 Net assets acquired 173.1 Goodwill 109.6 Cash paid $ 282.7 The Company used the income, market, or cost approach (or a combination thereof) for the 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. The fair value of receivables acquired from Argotec on October 28, 2015 was $16.1 million , with gross contractual amounts receivable of $16.8 million . Acquired inventories and property, plant and equipment were recorded at their fair values. Acquired intangible assets are primarily trade names, customer relationships and non-competition agreements. Properties acquired included a manufacturing and related facility, 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. One of the properties acquired, the Argotec-Stevens facility in Easthampton, Massachusetts with an estimated fair value of $1.0 million , was held for sale as of the acquisition date and during the fourth quarter of 2015 came under contract for sale to a third party. The sale of this property was completed in April 2016 and no gain or loss was recognized on disposal of the facility. Intangible assets acquired included a trade name that is both business-to-business and business-to-consumer. In addition to this intangible asset, the Company acquired a number of customer relationships in the aeronautical, transportation, graphics, medical and industrial markets. Management valued intangible assets using the relief from royalty and multi-period excess earnings methods, both forms of the income approach supported by observable market data for peer companies. The following table shows the fair values assigned to intangible assets ($ in millions): Preliminary Fair Value as of October 28, 2015 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 115.3 15 Non-competition agreements 1.7 4 Total amortizable intangible assets 117.0 15 Indefinite-lived intangible assets: Trade names 14.0 Indefinite Total $ 131.0 In connection with the acquisition, the Company recorded goodwill, which represents the excess of the consideration transferred over the preliminary fair value of tangible and intangible assets acquired, net of liabilities assumed. The goodwill is attributed primarily to Argotec's revenue growth from combining the SWM and Argotec businesses and workforces as well as the benefits of access to different markets and customers. Goodwill from the Argotec acquisition was assigned to the AMS reportable segment. The goodwill from this acquisition is expected to be deductible for tax purposes. The goodwill was determined on the basis of the preliminary fair values of the assets and liabilities identified as part of the transaction. In the three and six months ended June 30, 2016, the Company recognized $0.1 million and $0.3 million , respectively, of direct and indirect acquisition-related costs related to the acquisition. In 2015, the Company recognized $1.8 million of direct and indirect acquisition-related costs and incurred $7.4 million in financing costs related to the acquisition. Direct and indirect acquisition-related costs were expensed as incurred and are included in the General expense line item in the consolidated statements of income. Financing costs related to expanding the Credit Agreement have been capitalized and will be amortized in Interest expense over the life of the Amended Credit Agreement. The amounts of the unaudited pro forma Net Sales and Income from Continuing Operations of the combined entity had the acquisition date been January 1, 2015 are as follows ($ in millions): Net Sales Income from Continuing Operations 2015 Supplemental Pro Forma from April 1, 2015 - June 30, 2015 $ 213.3 $ 26.2 2015 Supplemental Pro Forma from January 1, 2015 - June 30, 2015 430.8 45.3 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Summary financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net sales $ — $ — $ — $ — Other expense — (0.9 ) — (0.9 ) Loss from discontinued operations before income taxes — (0.9 ) — (0.9 ) Income tax provision — (0.2 ) — (0.2 ) Loss from discontinued operations $ — $ (1.1 ) $ — $ (1.1 ) Discontinued Operations Beginning in 2013, the Company's former paper mill in San Pedro, Philippines has been reported as a discontinued operation. This mill was previously presented as a component of the EP segment. 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): June 30, 2016 December 31, 2015 Assets of discontinued operations: Current assets $ 1.1 $ 1.1 Other assets 2.6 2.6 Liabilities of discontinued operations: Current liabilities 0.1 0.2 Summary financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net sales $ — $ — $ — $ — Other expense — (0.9 ) — (0.9 ) Loss from discontinued operations before income taxes — (0.9 ) — (0.9 ) Income tax provision — (0.2 ) — (0.2 ) Loss from discontinued operations $ — $ (1.1 ) $ — $ (1.1 ) |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2016 | |
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 stock-based incentive compensation 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 Six Months Ended June 30, June 30, June 30, June 30, Numerator (basic and diluted): Net income $ 26.0 $ 23.4 $ 47.1 $ 42.2 Less: Dividends paid to participating securities — — (0.1 ) (0.2 ) Less: Undistributed earnings available to participating securities (0.2 ) (0.3 ) (0.2 ) (0.3 ) Undistributed and distributed earnings available to common stockholders $ 25.8 $ 23.1 $ 46.8 $ 41.7 Denominator: Average number of common shares outstanding 30,313.2 30,274.3 30,304.1 30,226.6 Effect of dilutive stock-based compensation 134.5 122.7 131.1 118.8 Average number of common and potential common shares outstanding 30,447.7 30,397.0 30,435.2 30,345.4 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
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 certain 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): June 30, December 31, Raw materials $ 38.8 $ 45.2 Work in process 19.4 17.3 Finished goods 40.5 36.1 Supplies and other 9.4 13.8 Total $ 108.1 $ 112.4 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2016 were as follows ($ in millions): Engineered Papers Advanced Materials & Structures Total Goodwill as of December 31, 2015 $ 4.8 $ 228.5 $ 233.3 Goodwill adjusted during the period — 0.1 0.1 Foreign currency translation adjustments — (0.9 ) (0.9 ) Goodwill as of June 30, 2016 $ 4.8 $ 227.7 $ 232.5 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
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): June 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization* Net Carrying Amount Gross Carrying Amount Accumulated Amortization* Net Carrying Amount Amortized intangible assets Engineered Papers Customer-related intangibles $ 10.0 $ 10.0 $ — $ 10.0 $ 10.0 $ — Advanced Materials & Structures Customer Relationships 167.7 12.2 155.5 167.7 6.4 161.3 Developed Technology 16.0 3.2 12.8 16.0 2.4 13.6 Customer Contracts 0.9 0.7 0.2 0.9 0.5 0.4 Non-Compete Agreements 1.7 0.3 1.4 1.7 0.1 1.6 Patents 1.5 0.1 1.4 1.5 0.1 1.4 Total $ 197.8 $ 26.5 $ 171.3 $ 197.8 $ 19.5 $ 178.3 Unamortized intangible assets (Advanced Materials & Structures) Trade names $ 35.6 $ 35.6 * Accumulated amortization also includes adjustments for foreign currency translation. Amortization expense of intangible assets was $3.1 million and $1.0 million for the three months ended June 30, 2016 and 2015, respectively, and $6.2 million and $2.1 million for the six months ended June 30, 2016 and 2015, respectively. Finite-lived intangibles in the AMS segment are expensed using the straight-line amortization method. The estimated average aggregate amortization expense is $11.7 million in each of the next five years. |
Restructuring and Impairment Ac
Restructuring and Impairment Activities | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred restructuring and impairment expenses of $0.9 million and $5.2 million in the three months ended June 30, 2016 and 2015, respectively, and $2.7 million and $9.2 million in the six months ended June 30, 2016 and 2015, respectively. In the EP segment, restructuring and impairment expenses were $0.9 million and $5.3 million for the three months ended June 30, 2016 and 2015, respectively, and $1.8 million and $9.1 million for the six months ended June 30, 2016 and 2015. Restructuring and impairment expenses for the six months ended June 30, 2016 consisted of $1.3 million in severance accruals for employees at our manufacturing facilities in the U.S., France and Brazil and $0.5 million of impairment expense recognized on equipment at our Poland manufacturing facility. During the six months ended June 30, 2015, restructuring and impairment expenses were composed of $5.6 million in severance accruals for employees at our Quimperlé and Spay, France facilities as well as $3.5 million in loss recognized to adjust the recorded value of equipment at our Philippines RTL location to its estimated fair value as discussed in more detail below. The AMS segment, incurred restructuring and impairment expenses of $0.0 million and reversed $0.2 million in expenses for the three months ended June 30, 2016 and 2015, respectively, and incurred $0.6 million and reversed $0.2 million for the six months ended June 30, 2016 and 2015, respectively. Restructuring and impairment expenses for the six months ended June 30, 2016 consisted of severance accruals for employees at our U.S. manufacturing operations. In the six months ended June 30, 2015, restructuring and impairment expenses were reversed related to previously accrued severance costs in our AMS segment resulting from one of our business acquisitions in December 2014. Additionally, the Company incurred $0.0 million and $0.1 million in restructuring expenses during the three months ended June 30, 2016 and 2015, respectively, and $0.3 million and $0.3 million in restructuring expenses during the six months ended June 30, 2016 and 2015, respectively, in each case related to accruals for severance expenses within supporting overhead departments which were not allocated to a specific segment. Restructuring liabilities were classified within Accrued Expenses in each of the consolidated balance sheets as of June 30, 2016 and December 31, 2015. Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended June 30, 2016 and December 31, 2015 are summarized as follows ($ in millions): Six Months Ended Year Ended June 30, December 31, Balance at beginning of year $ 7.7 $ 8.7 Accruals for announced programs 2.2 8.0 Cash payments (5.1 ) (8.3 ) Exchange rate impacts 0.2 (0.7 ) Balance at end of period $ 5.0 $ 7.7 Long-lived assets to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the assets; the asset are available for immediate sale in present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; the sale of the assets is probable, and transfer of the assets is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the assets beyond one year; the assets are being actively marketed for sale at a price that is reasonable in relation to current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. The fair value of a long-lived asset less any costs to sell is assessed each reporting period it remains classified as held for sale and any reduction in fair value is reported as an adjustment to the carrying value of the asset. Upon being classified as held for sale depreciation is ceased. Long-lived assets to be disposed of other than by sale are continued to be depreciated. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the assets and liabilities of the disposal group, if material, are reported in the line item Assets Held for Sale in our condensed consolidated balance sheets. In early 2015, the Company made the decision to dispose of the Company's mothballed RTL facility and related equipment in the Philippines. These assets are included in the EP segment. During 2015, the Company reclassified the balance of the equipment, along with the land and building associated with the property, at this location from Property, Plant and Equipment, net, to Assets Held for Sale on the consolidated balance sheets. The reclassifications were made for all assets that are expected to be sold within one year of the balance sheet date and, as of June 30, 2016, all of the physical assets of this entity are classified as Assets Held for Sale. There were no impairment charges recognized on these assets during the three or six months ended June 30, 2016. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of total debt are summarized in the following table ($ in millions): June 30, December 31, Term Loan A-1 $ 60.0 $ 60.0 Term Loan A-2 248.1 249.4 Revolving Credit Agreement - U.S. dollar borrowings 199.0 197.0 Revolving Credit Agreement - euro borrowings — 62.4 French Employee Profit Sharing 10.7 11.4 Bank Overdrafts 0.5 — Total Debt 518.3 580.2 Less: Debt issuance costs (7.8 ) (8.7 ) Less: Current debt (3.7 ) (3.3 ) Long-Term Debt $ 506.8 $ 568.2 Credit Agreement On October 28, 2015, the Company, together with two of its Luxembourg-based wholly-owned holding subsidiaries, entered into a Second Amended and Restated Credit Agreement, or the Amended Credit Agreement, with JPMorgan Chase Bank, N.A., as administrative agent, providing for credit facilities in the aggregate principal amount of $1 billion , consisting of a $650 million revolving credit facility, or Revolving Credit Facility, available to the Company; a $100 million Term Loan A-1 (Term Loan A-1) made to the Company; and a $250 million Term Loan A-2 (Term Loan A-2 and, together with Term Loan A-1, the Term Loans) made to the Company. The Revolving Credit Facility matures on October 28, 2020 . The Term Loan A-1 amortizes at the rate of 5.0% for the first two years, at the rate of 10.0% for the final three years and matures on October 28, 2020 . The Term Loan A-2 amortizes at the rate of 1.0% per year and matures on October 28, 2022 . The Term Loans are generally subject to mandatory repayment out of the net cash proceeds of asset sales which are not reinvested in operating assets. The credit facilities are secured by substantially all of the personal property of the Company and its domestic subsidiaries while the obligations of the Luxembourg-based holding subsidiaries are secured by a pledge of certain of the equity interests held in their operating subsidiaries. In December 2015, the Company prepaid the full amount of amortization for Term Loan A-1, which totaled $40 million . The Amended Credit Agreement amended and restated the Company’s Amended and Restated Credit Agreement, dated as of December 11, 2013, which provided for a $500 million unsecured revolving credit facility which was scheduled to mature on December 11, 2018. The interest rate margins applicable to the Revolving Credit Facility and the Term Loans under the Amended Credit Agreement are based on a fluctuating rate of interest measured by reference to either, at the Company's option, (i) a base rate, plus an applicable margin, which ranges from 0.25% to 1.25% , in the case of the Revolving Credit Facility and Term Loan A-1, and from 0.50% to 1.50% , in the case of Term Loan A-2, or (ii) an adjusted London interbank offered rate (adjusted for maximum reserves) (LIBOR), plus an applicable margin, which ranges from 1.25% to 2.25% , in the case of the Revolving Credit Facility and Term Loan A-1, and from 1.50% to 2.50% , in the case of Term Loan A-2. The applicable margin, in each case, will be adjusted from time to time based on the Company's ratio of net debt to EBITDA as defined in the Amended Credit Agreement. As of June 30, 2016, the average interest rate on outstanding Amended Credit Agreement borrowings was 2.25% on US Revolving Credit Facility borrowings, 1.75% on Euro Revolving Credit Facility borrowings, 2.25% on Term Loan A-1 borrowings and 2.50% on Term Loan A-2 borrowings. The weighted average effective interest rate on our debt facilities was approximately 2.31% and 1.42% for the six months ended June 30, 2016 and 2015, respectively. The Amended Credit Agreement also contains representations and warranties which are customary for facilities of this type and covenants and provisions that, among other things, require the Company to maintain (a) a maximum net debt to EBITDA ratio of 3.50, reducing to 3.00 after September 30, 2016 and (b) minimum interest coverage of 3.00. The Amended Credit Agreement contains provisions allowing the Company to increase the leverage ratio upon the incurrence of certain unsecured indebtedness or temporarily upon the occurrence of a material acquisition. The Company was in compliance with all of its covenants under the Amended Credit Agreement at June 30, 2016. In conjunction with the Amended Credit Agreement, the Company capitalized approximately $7.4 million in deferred debt issuance costs associated with the new facility which will be amortized over the term of the related debt instrument. As of June 30, 2016 and December 31, 2015 , the Company's total deferred debt issuance costs, net of accumulated amortization, were $7.8 million and $8.7 million , respectively. Amortization expense of $0.9 million and $0.3 million was recorded during the six months ended June 30, 2016 and 2015, respectively, and has been included as a component of Interest Expense in the accompanying consolidated statements of income. Fair Value of Debt At June 30, 2016 and December 31, 2015, 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedges: Foreign exchange contracts Accounts Receivable $ 1.2 Accrued Expenses $ 2.9 Foreign exchange contracts Other Assets 1.6 Other Liabilities 1.2 Interest rate contracts Other Assets — Other Liabilities 1.2 Total derivatives designated as hedges $ 2.8 $ 5.3 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2015 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedges: Foreign exchange contracts Accounts Receivable $ 0.7 Accrued Expenses $ 10.8 Foreign exchange contracts Other Assets — Other Liabilities 7.0 Interest rate contracts Other Assets — Other Liabilities 0.6 Total derivatives designated as hedges $ 0.7 $ 18.4 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 Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax Loss Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 2.3 $ 1.8 $ 12.7 $ (9.5 ) $ (3.5 ) $ (2.1 ) $ (5.3 ) $ (3.6 ) Interest rate contracts (0.2 ) 0.1 (0.7 ) (0.2 ) (0.1 ) — (0.3 ) — Total $ 2.1 $ 1.9 $ 12.0 $ (9.7 ) $ (3.6 ) $ (2.1 ) $ (5.6 ) $ (3.6 ) 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 June 30, 2016 and 2015. The following table provides the effect that derivative instruments not designated as cash flow hedging instruments had on net income ($ in millions): Derivatives Not Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in Other Income / Expense Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Foreign exchange contracts $ (1.4 ) $ (0.5 ) $ 0.4 $ (1.6 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
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 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 Assessments. 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. 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. 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. In October 2015, the Federal Supreme Court of Brazil denied the State’s appeal of Assessment 1, in the amount of approximately $16.0 million , a decision which is now final. The second assessment, or Assessment 2 (case number 2001.001.064544-6), pertains exclusively to periods during which SWM-B owned the Pirahy mill. Assessment 2 in the amount of approximately $13.0 million remains pending before the Federal Supreme Court of Brazil on SWM-B’s appeal on the merits and is likely to be finally decided by the action of the chamber of the court hearing the matter. No docket entry has been made yet regarding argument on Assessment 2. SWM-B 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." 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 issued notices to SWM-B to pay approximately $5.0 million in the first Electricity Assessment and $8.5 million in the second Electricity Assessment, based on the foreign currency exchange rate at June 30, 2016. SWM-B filed separate challenges to these Electricity Assessments in further court proceedings in the State judicial system, and different chambers of the judicial court granted SWM-B preliminary injunctions against enforcement. On the State's appeal, the court required SWM-B to post security for the injunction concerning the Electricity Assessment for May 2006 - November 2007. SWM-B's challenge to the third Electricity Assessment (approximately $4.0 million as of June 30, 2016) remains pending at the first administrative level (Junta de Revisão Fiscal). SWM-B believes that both the remaining Raw Materials Assessment 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 (including the enforcement thereof), 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), or similar circumstances arising at our unconsolidated joint ventures, may give rise to additional costs which could have a material effect on the Company's financial condition or results of operations. General Matters In the ordinary course of its 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, intellectual property rights 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 Benefi
Postretirement And Other Benefits | 6 Months Ended |
Jun. 30, 2016 | |
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 and six months ended June 30, 2016 and 2015 were as follows ($ in millions): Three Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 0.3 $ 0.3 $ — $ — Interest cost 1.3 1.3 0.1 0.1 — — Expected return on plan assets (1.7 ) (1.7 ) — — — — Amortizations and other 1.0 1.4 0.2 0.3 — (0.1 ) Net periodic benefit cost $ 0.6 $ 1.0 $ 0.6 $ 0.7 $ — $ (0.1 ) Six Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 0.6 $ 0.6 $ — $ — Interest cost 2.6 2.6 0.2 0.2 — — Expected return on plan assets (3.4 ) (3.5 ) (0.1 ) (0.1 ) — — Amortizations and other 2.0 2.8 0.5 0.6 0.1 (0.2 ) Net periodic benefit cost $ 1.2 $ 1.9 $ 1.2 $ 1.3 $ 0.1 $ (0.2 ) During the fiscal year ending December 31, 2016, the Company expects to recognize approximately $4.1 million for amortization of accumulated other comprehensive loss related to its U.S. pension and OPEB plans and approximately $1.0 million for its French pension plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
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.” These interim estimates are subject to variation due to several factors, including our ability to accurately forecast our pre-tax and taxable income and loss by jurisdiction, changes in laws or regulations, and expenses or losses for which tax benefits are not recognized. 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 tax 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. Also, the impact of discrete items and non-deductible losses on our effective tax rate is greater when our pre-tax income is lower. All unrecognized tax positions would impact the Company's effective tax rate if recognized. With respect to penalties and interest incurred from income tax assessments or related to unrecognized tax benefits, the Company’s policy is to classify penalties as provision for income taxes and interest as interest expense in its consolidated statement of income. There were no material income tax penalties or interest accrued during the three or six months ended June 30, 2016 or 2015. Our effective tax rate from continuing operations was 26.5% and 23.0% for the three months ended June 30, 2016 and 2015, respectively, and increased primarily due to a higher concentration of profits generated in higher-tax jurisdictions coupled with a reduction in the generation of certain foreign tax credits. Our effective tax rate from continuing operations was 27.0% and 23.5% for the six months ended June 30, 2016 and 2015, respectively, and increased primarily due to a higher concentration of profits generated in higher-tax jurisdictions coupled with a reduction in the generation of certain foreign tax credits. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's two operating product line segments are also the Company's reportable segments: Engineered Papers and Advanced Materials & Structures. The EP segment, which consists of the Company's former Paper and Reconstituted Tobacco segments, 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 and reconstituted tobacco leaf, or RTL, and wrapper and binder products for sale to cigarette and cigar manufacturers. The EP segment also includes commercial and industrial products such as lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter paper and other specialized papers. These non-tobacco industry products are generally sold directly to converters and other end-users or brokers. The AMS segment primarily produces engineered resin-based, rolled goods such as films, nets, and other non-wovens for use in high-performance filtration, surface protection, medical, and industrial applications and consists of the operations of DelStar, the December 2014 acquisitions, and Argotec. In conjunction with the consolidation of the Paper and Reconstituted Tobacco segments into the EP segment in October 2015, the corresponding information for all prior periods presented has been restated to correspond to the presentation in the current year. 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, 2015. 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. The Company has recast the prior period operating profit by segment for comparative purposes to conform to current year presentation, which reflects a change in the way certain internal charges are allocated to individual business units. These changes had no impact on consolidated operating profit and were not material to the segment measurements presented. ($ in millions) Net Sales Three Months Ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Engineered Papers $ 145.3 66.9 % $ 141.3 77.7 % $ 288.9 66.9 $ 288.8 78.1 % Advanced Materials & Structures 72.0 33.1 40.6 22.3 143.0 33.1 81.1 21.9 Total Consolidated $ 217.3 100.0 % $ 181.9 100.0 % $ 431.9 100.0 % $ 369.9 100.0 % ($ in millions) Operating Profit Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Engineered Papers $ 35.9 95.7 % $ 26.9 112.1 % $ 71.4 103.3 % $ 54.7 117.6 % Advanced Materials & Structures 8.9 23.7 5.4 22.5 14.1 20.4 8.0 17.2 Unallocated (7.3 ) (19.4 ) (8.3 ) (34.6 ) (16.4 ) (23.7 ) (16.2 ) (34.8 ) Total Consolidated $ 37.5 100.0 % $ 24.0 100.0 % $ 69.1 100.0 % $ 46.5 100.0 % |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 and these notes thereto 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, 2015, as filed with the SEC on February 26, 2016. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its 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 (loss) 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 and rebates, 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, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). This 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. In August 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This update requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using the Last-in, First-out, or LIFO, or the retail inventory method. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard makes several modifications to existing guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASC 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the amendments on the consolidated financial statements. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive loss, net of tax, were as follows ($ in millions): June 30, 2016 December 31, 2015 Accumulated pension and OPEB liability adjustments, net of income tax of $20.3 million and $21.9 million at June 30, 2016 and December 31, 2015, respectively $ (34.5 ) $ (35.6 ) Accumulated unrealized loss on derivative instruments, net of income tax of $4.2 million and $0.3 million at June 30, 2016 and December 31, 2015, respectively (4.0 ) (21.6 ) Accumulated unrealized foreign currency translation adjustments (79.1 ) (84.2 ) Accumulated other comprehensive loss $ (117.6 ) $ (141.4 ) |
Changes in Components of Other Comprehensive Income | Changes in the components of accumulated other comprehensive loss were as follows ($ in millions): Three Months Ended June 30, 2016 June 30, 2015 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Unrealized gain (loss) on Pension and OPEB liability adjustments $ 3.4 $ (1.8 ) $ 1.6 $ (1.1 ) $ 0.4 $ (0.7 ) Unrealized gain (loss) on derivative instruments 5.7 — 5.7 4.1 (0.1 ) 4.0 Unrealized (loss) gain on foreign currency translation (8.9 ) — (8.9 ) 12.9 — 12.9 Total $ 0.2 $ (1.8 ) $ (1.6 ) $ 15.9 $ 0.3 $ 16.2 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) - Argotec [Member] | 6 Months Ended |
Jun. 30, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed | The consideration paid for Argotec and the preliminary fair values of the assets acquired and liabilities assumed as of the October 28, 2015 acquisition date were as follows ($ in millions): Preliminary Fair Value as of October 28, 2015 Cash and cash equivalents $ 2.7 Accounts receivable 16.1 Inventory 16.3 Other current assets 0.1 Property, plant and equipment 15.9 Other noncurrent assets 0.1 Identifiable intangible assets 131.0 Total Assets 182.2 Accounts payable 4.6 Accrued expenses 4.5 Net assets acquired 173.1 Goodwill 109.6 Cash paid $ 282.7 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table shows the fair values assigned to intangible assets ($ in millions): Preliminary Fair Value as of October 28, 2015 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 115.3 15 Non-competition agreements 1.7 4 Total amortizable intangible assets 117.0 15 Indefinite-lived intangible assets: Trade names 14.0 Indefinite Total $ 131.0 |
Actual and Pro Forma Net Sales and Income from Continuing Operations | 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, 2015 are as follows ($ in millions): Net Sales Income from Continuing Operations 2015 Supplemental Pro Forma from April 1, 2015 - June 30, 2015 $ 213.3 $ 26.2 2015 Supplemental Pro Forma from January 1, 2015 - June 30, 2015 430.8 45.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Summary financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net sales $ — $ — $ — $ — Other expense — (0.9 ) — (0.9 ) Loss from discontinued operations before income taxes — (0.9 ) — (0.9 ) Income tax provision — (0.2 ) — (0.2 ) Loss from discontinued operations $ — $ (1.1 ) $ — $ (1.1 ) Discontinued Operations Beginning in 2013, the Company's former paper mill in San Pedro, Philippines has been reported as a discontinued operation. This mill was previously presented as a component of the EP segment. 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): June 30, 2016 December 31, 2015 Assets of discontinued operations: Current assets $ 1.1 $ 1.1 Other assets 2.6 2.6 Liabilities of discontinued operations: Current liabilities 0.1 0.2 Summary financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net sales $ — $ — $ — $ — Other expense — (0.9 ) — (0.9 ) Loss from discontinued operations before income taxes — (0.9 ) — (0.9 ) Income tax provision — (0.2 ) — (0.2 ) Loss from discontinued operations $ — $ (1.1 ) $ — $ (1.1 ) |
Schedule of Major Classes of Assets and Liabilities Associated with 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): June 30, 2016 December 31, 2015 Assets of discontinued operations: Current assets $ 1.1 $ 1.1 Other assets 2.6 2.6 Liabilities of discontinued operations: Current liabilities 0.1 0.2 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Six Months Ended June 30, June 30, June 30, June 30, Numerator (basic and diluted): Net income $ 26.0 $ 23.4 $ 47.1 $ 42.2 Less: Dividends paid to participating securities — — (0.1 ) (0.2 ) Less: Undistributed earnings available to participating securities (0.2 ) (0.3 ) (0.2 ) (0.3 ) Undistributed and distributed earnings available to common stockholders $ 25.8 $ 23.1 $ 46.8 $ 41.7 Denominator: Average number of common shares outstanding 30,313.2 30,274.3 30,304.1 30,226.6 Effect of dilutive stock-based compensation 134.5 122.7 131.1 118.8 Average number of common and potential common shares outstanding 30,447.7 30,397.0 30,435.2 30,345.4 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories by Major Class | The following schedule details inventories by major class ($ in millions): June 30, December 31, Raw materials $ 38.8 $ 45.2 Work in process 19.4 17.3 Finished goods 40.5 36.1 Supplies and other 9.4 13.8 Total $ 108.1 $ 112.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2016 were as follows ($ in millions): Engineered Papers Advanced Materials & Structures Total Goodwill as of December 31, 2015 $ 4.8 $ 228.5 $ 233.3 Goodwill adjusted during the period — 0.1 0.1 Foreign currency translation adjustments — (0.9 ) (0.9 ) Goodwill as of June 30, 2016 $ 4.8 $ 227.7 $ 232.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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): June 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization* Net Carrying Amount Gross Carrying Amount Accumulated Amortization* Net Carrying Amount Amortized intangible assets Engineered Papers Customer-related intangibles $ 10.0 $ 10.0 $ — $ 10.0 $ 10.0 $ — Advanced Materials & Structures Customer Relationships 167.7 12.2 155.5 167.7 6.4 161.3 Developed Technology 16.0 3.2 12.8 16.0 2.4 13.6 Customer Contracts 0.9 0.7 0.2 0.9 0.5 0.4 Non-Compete Agreements 1.7 0.3 1.4 1.7 0.1 1.6 Patents 1.5 0.1 1.4 1.5 0.1 1.4 Total $ 197.8 $ 26.5 $ 171.3 $ 197.8 $ 19.5 $ 178.3 Unamortized intangible assets (Advanced Materials & Structures) Trade names $ 35.6 $ 35.6 * Accumulated amortization also includes adjustments for foreign currency translation. |
Restructuring and Impairment 32
Restructuring and Impairment Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 are summarized as follows ($ in millions): Six Months Ended Year Ended June 30, December 31, Balance at beginning of year $ 7.7 $ 8.7 Accruals for announced programs 2.2 8.0 Cash payments (5.1 ) (8.3 ) Exchange rate impacts 0.2 (0.7 ) Balance at end of period $ 5.0 $ 7.7 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | The components of total debt are summarized in the following table ($ in millions): June 30, December 31, Term Loan A-1 $ 60.0 $ 60.0 Term Loan A-2 248.1 249.4 Revolving Credit Agreement - U.S. dollar borrowings 199.0 197.0 Revolving Credit Agreement - euro borrowings — 62.4 French Employee Profit Sharing 10.7 11.4 Bank Overdrafts 0.5 — Total Debt 518.3 580.2 Less: Debt issuance costs (7.8 ) (8.7 ) Less: Current debt (3.7 ) (3.3 ) Long-Term Debt $ 506.8 $ 568.2 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedges: Foreign exchange contracts Accounts Receivable $ 1.2 Accrued Expenses $ 2.9 Foreign exchange contracts Other Assets 1.6 Other Liabilities 1.2 Interest rate contracts Other Assets — Other Liabilities 1.2 Total derivatives designated as hedges $ 2.8 $ 5.3 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2015 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedges: Foreign exchange contracts Accounts Receivable $ 0.7 Accrued Expenses $ 10.8 Foreign exchange contracts Other Assets — Other Liabilities 7.0 Interest rate contracts Other Assets — Other Liabilities 0.6 Total derivatives designated as hedges $ 0.7 $ 18.4 |
Effect on Accumulated Other Comprehensive Income (Loss) and Results of Operations of Derivative Instruments in Cash Flow Hedging Relationships | 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 Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax Loss Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 2.3 $ 1.8 $ 12.7 $ (9.5 ) $ (3.5 ) $ (2.1 ) $ (5.3 ) $ (3.6 ) Interest rate contracts (0.2 ) 0.1 (0.7 ) (0.2 ) (0.1 ) — (0.3 ) — Total $ 2.1 $ 1.9 $ 12.0 $ (9.7 ) $ (3.6 ) $ (2.1 ) $ (5.6 ) $ (3.6 ) |
Effect on Net Income of Derivative Instruments Non Designated as Hedging | The following table provides the effect that derivative instruments not designated as cash flow hedging instruments had on net income ($ in millions): Derivatives Not Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in Other Income / Expense Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Foreign exchange contracts $ (1.4 ) $ (0.5 ) $ 0.4 $ (1.6 ) |
Postretirement and Other Bene35
Postretirement and Other Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Pension 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 and six months ended June 30, 2016 and 2015 were as follows ($ in millions): Three Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 0.3 $ 0.3 $ — $ — Interest cost 1.3 1.3 0.1 0.1 — — Expected return on plan assets (1.7 ) (1.7 ) — — — — Amortizations and other 1.0 1.4 0.2 0.3 — (0.1 ) Net periodic benefit cost $ 0.6 $ 1.0 $ 0.6 $ 0.7 $ — $ (0.1 ) Six Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 0.6 $ 0.6 $ — $ — Interest cost 2.6 2.6 0.2 0.2 — — Expected return on plan assets (3.4 ) (3.5 ) (0.1 ) (0.1 ) — — Amortizations and other 2.0 2.8 0.5 0.6 0.1 (0.2 ) Net periodic benefit cost $ 1.2 $ 1.9 $ 1.2 $ 1.3 $ 0.1 $ (0.2 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segments | ($ in millions) Net Sales Three Months Ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Engineered Papers $ 145.3 66.9 % $ 141.3 77.7 % $ 288.9 66.9 $ 288.8 78.1 % Advanced Materials & Structures 72.0 33.1 40.6 22.3 143.0 33.1 81.1 21.9 Total Consolidated $ 217.3 100.0 % $ 181.9 100.0 % $ 431.9 100.0 % $ 369.9 100.0 % ($ in millions) Operating Profit Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Engineered Papers $ 35.9 95.7 % $ 26.9 112.1 % $ 71.4 103.3 % $ 54.7 117.6 % Advanced Materials & Structures 8.9 23.7 5.4 22.5 14.1 20.4 8.0 17.2 Unallocated (7.3 ) (19.4 ) (8.3 ) (34.6 ) (16.4 ) (23.7 ) (16.2 ) (34.8 ) Total Consolidated $ 37.5 100.0 % $ 24.0 100.0 % $ 69.1 100.0 % $ 46.5 100.0 % |
General (Details)
General (Details) | Jun. 30, 2016countryjoint_ventureproduction_locations |
Nature of Business [Line Items] | |
Number of countries in which entity operates | country | 90 |
Number of production locations | production_locations | 18 |
China [Member] | |
Nature of Business [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Number of joint ventures | joint_venture | 2 |
Other Comprehensive Income - Co
Other Comprehensive Income - Components of Accumulated Comprehensive Income (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Accumulated pension and OPEB liability adjustments, net of income tax of $20.3 million and $21.9 million at June 30, 2016 and December 31, 2015, respectively | $ (34.5) | $ (35.6) |
Accumulated unrealized loss on derivative instruments, net of income tax of $4.2 million and $0.3 million at June 30, 2016 and December 31, 2015, respectively | (4) | (21.6) |
Accumulated unrealized foreign currency translation adjustments | (79.1) | (84.2) |
Accumulated other comprehensive loss | (117.6) | (141.4) |
Accumulated pension and OPEB tax | 20.3 | 21.9 |
Accumulated tax on gain (loss) on financial instruments | $ 4.2 | $ 0.3 |
Other Comprehensive Income - Ch
Other Comprehensive Income - Changes in Components of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Abstract] | ||||
Pension and OPEB liability adjustments, Pre-tax | $ 3.4 | $ (1.1) | $ 2.7 | $ (2) |
Unrealized (loss) gain on derivative instruments, Pre-tax | 5.7 | 4.1 | 13.7 | (6.4) |
Unrealized foreign currency translation adjustments, Pre-tax | (8.9) | 12.9 | 5.1 | (35.8) |
Total other comprehensive income (loss), Pre-tax | 0.2 | 15.9 | 21.5 | (44.2) |
Pension and OPEB liability adjustments, Tax | (1.8) | 0.4 | (1.6) | 0.7 |
Unrealized (loss) gain on derivative instruments, Tax | 0 | (0.1) | 3.9 | 0.3 |
Unrealized foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), Tax | (1.8) | 0.3 | 2.3 | 1 |
Pension and OPEB liability adjustments, Net of Tax | 1.6 | (0.7) | 1.1 | (1.3) |
Unrealized gain (loss) on financial instruments, net of realized gain (loss), Net of Tax | 5.7 | 4 | 17.6 | (6.1) |
Unrealized foreign currency translation adjustments, Net of Tax | (8.9) | 12.9 | 5.1 | (35.8) |
Other Comprehensive Income (Loss) | $ (1.6) | $ 16.2 | $ 23.8 | $ (43.2) |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - Argotec [Member] | Oct. 28, 2015USD ($) | Apr. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)property |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 282,700,000 | ||||
Fair value of receivables | 16,100,000 | ||||
Gross contractual amounts of receivables | $ 16,800,000 | ||||
Financing costs | $ 7,400,000 | ||||
Easthampton, Massachusetts | |||||
Business Acquisition [Line Items] | |||||
Number of properties held for sale | property | 1 | ||||
Property held for sale, fair value | $ 1,000,000 | ||||
Gain (Loss) on Sale of Properties | $ 0 | ||||
Acquisition-related Costs [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition-related costs | $ 100,000 | $ 300,000 | $ 1,800,000 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Oct. 28, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 232.5 | $ 233.3 | |
Argotec [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 2.7 | ||
Accounts receivable | 16.1 | ||
Inventory | 16.3 | ||
Other current assets | 0.1 | ||
Property, plant and equipment | 15.9 | ||
Other noncurrent assets | 0.1 | ||
Identifiable intangible assets | 131 | ||
Total Assets | 182.2 | ||
Accounts payable | 4.6 | ||
Accrued expenses | 4.5 | ||
Net assets acquired | 173.1 | ||
Goodwill | 109.6 | ||
Cash paid | $ 282.7 |
Business Acquisitions - Finite-
Business Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Argotec [Member] $ in Millions | Oct. 28, 2015USD ($) |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 131 |
Trade names [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | 14 |
Finite-Lived Intangible Assets [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 117 |
Weighted-Average Amortization Period (Years) | 15 years |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 115.3 |
Weighted-Average Amortization Period (Years) | 15 years |
Noncompete Agreements [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 1.7 |
Weighted-Average Amortization Period (Years) | 4 years |
Business Acquisitions - Actual
Business Acquisitions - Actual and Pro Forma Net Sales and Income from Continuing Operations (Details) - Argotec [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Net Sales | $ 213.3 | $ 430.8 |
Income from Continuing Operations | $ 26.2 | $ 45.3 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Revenue | $ 0 | $ 0 | $ 0 | $ 0 | |
Liabilities of discontinued operations: | |||||
Disposal Group, Including Discontinued Operation, Other Expense | 0 | (0.9) | 0 | (0.9) | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | (0.9) | 0 | (0.9) | |
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | (0.2) | 0 | (0.2) | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | $ 1.1 | 0 | $ 1.1 | |
Discontinued Operations, Disposed of by Sale [Member] | |||||
Assets of discontinued operations: | |||||
Current assets | 1.1 | 1.1 | $ 1.1 | ||
Other assets | 2.6 | 2.6 | 2.6 | ||
Liabilities of discontinued operations: | |||||
Current liabilities | $ 0.1 | $ 0.1 | $ 0.2 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator (basic and diluted): | ||||
Net income | $ 26 | $ 23.4 | $ 47.1 | $ 42.2 |
Less: Dividends paid to participating securities | 0 | 0 | (0.1) | (0.2) |
Less: Undistributed earnings available to participating securities | (0.2) | (0.3) | (0.2) | (0.3) |
Undistributed and distributed earnings available to common stockholders | $ 25.8 | $ 23.1 | $ 46.8 | $ 41.7 |
Denominator: | ||||
Average number of common shares outstanding (in shares) | 30,313,200 | 30,274,300 | 30,304,100 | 30,226,600 |
Effect of dilutive stock-based compensation (in shares) | 134,500 | 122,700 | 131,100 | 118,800 |
Average number of common and potential common shares outstanding (in shares) | 30,447,700 | 30,397,000 | 30,435,200 | 30,345,400 |
Anti-dilutive stock options (in shares) | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 38.8 | $ 45.2 |
Work in process | 19.4 | 17.3 |
Finished goods | 40.5 | 36.1 |
Supplies and other | 9.4 | 13.8 |
Total | $ 108.1 | $ 112.4 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 233.3 |
Goodwill acquired during the period | 0.1 |
Foreign currency translation adjustments | (0.9) |
Goodwill, end of period | 232.5 |
Engineered Papers Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 4.8 |
Goodwill acquired during the period | 0 |
Foreign currency translation adjustments | 0 |
Goodwill, end of period | 4.8 |
Advanced Materials & Structures Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 228.5 |
Goodwill acquired during the period | 0.1 |
Foreign currency translation adjustments | (0.9) |
Goodwill, end of period | $ 227.7 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 197.8 | $ 197.8 | $ 197.8 | ||
Accumulated Amortization | 26.5 | 26.5 | 19.5 | ||
Net Carrying Amount | 171.3 | 171.3 | 178.3 | ||
Amortization expense of intangible assets | 3.1 | $ 1 | 6.2 | $ 2.1 | |
Estimated Amortization Expense | |||||
Estimated average amortization expense in each of next five years | 11.7 | 11.7 | |||
Trade names [Member] | Advanced Materials & Structures Segment [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Unamortized intangible assets | 35.6 | 35.6 | 35.6 | ||
Customer-Related Intangibles [Member] | Engineered Papers Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 10 | 10 | 10 | ||
Accumulated Amortization | 10 | 10 | 10 | ||
Net Carrying Amount | 0 | 0 | 0 | ||
Customer relationships [Member] | Advanced Materials & Structures Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 167.7 | 167.7 | 167.7 | ||
Accumulated Amortization | 12.2 | 12.2 | 6.4 | ||
Net Carrying Amount | 155.5 | 155.5 | 161.3 | ||
Developed Technology Rights [Member] | Advanced Materials & Structures Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 16 | 16 | 16 | ||
Accumulated Amortization | 3.2 | 3.2 | 2.4 | ||
Net Carrying Amount | 12.8 | 12.8 | 13.6 | ||
Customer Contracts [Member] | Advanced Materials & Structures Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 0.9 | 0.9 | 0.9 | ||
Accumulated Amortization | 0.7 | 0.7 | 0.5 | ||
Net Carrying Amount | 0.2 | 0.2 | 0.4 | ||
Non-Compete Agreements [Member] | Advanced Materials & Structures Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1.7 | 1.7 | 1.7 | ||
Accumulated Amortization | 0.3 | 0.3 | 0.1 | ||
Net Carrying Amount | 1.4 | 1.4 | 1.6 | ||
Patents [Member] | Advanced Materials & Structures Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1.5 | 1.5 | 1.5 | ||
Accumulated Amortization | 0.1 | 0.1 | 0.1 | ||
Net Carrying Amount | $ 1.4 | $ 1.4 | $ 1.4 |
Restructuring and Impairment 49
Restructuring and Impairment Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | $ 0.9 | $ 5.2 | $ 2.7 | $ 9.2 | |
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of year | 7.7 | 8.7 | $ 8.7 | ||
Accruals for announced programs | 2.2 | 8 | |||
Cash payments | (5.1) | (8.3) | |||
Exchange rate impacts | 0.2 | (0.7) | |||
Balance at end of period | 5 | 5 | $ 7.7 | ||
Corporate, Non-Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0 | 0.1 | 0.3 | 0.3 | |
Engineered Papers Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.9 | 5.3 | 1.8 | 9.1 | |
Engineered Papers Segment [Member] | RTL Facility [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Loss on sale of equipment | 3.5 | ||||
Engineered Papers Segment [Member] | Employee Severance [Member] | Quimperle and Spay, France Facility [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 5.6 | ||||
Engineered Papers Segment [Member] | France, Brazil, And United States [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 1.3 | ||||
Engineered Papers Segment [Member] | Poland [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.5 | ||||
Advanced Materials & Structures Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | $ 0 | $ (0.2) | $ 0.6 | $ (0.2) |
Debt - Schedule of Debt Summari
Debt - Schedule of Debt Summarized (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 518.3 | $ 580.2 |
Less: Debt issuance costs | 7.8 | 8.7 |
Less: Current debt | (3.7) | (3.3) |
Long-Term Debt | 506.8 | 568.2 |
French Employee Profit Sharing [Member] | ||
Debt Instrument [Line Items] | ||
Total | 10.7 | 11.4 |
Bank Overdrafts [Member] | ||
Debt Instrument [Line Items] | ||
Total | 0.5 | 0 |
Term Loan A-1 [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total | 60 | 60 |
Term Loan A-2 [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total | 248.1 | 249.4 |
Revolving Credit Agreement - U.S. dollar borrowings [Member] | Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total | 199 | 197 |
Revolving Credit Agreement - euro borrowings [Member] | Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 0 | $ 62.4 |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 6 Months Ended | ||||
Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Oct. 01, 2016 | Oct. 28, 2015USD ($) | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt amortization rate on A1 for the first two years | 5.00% | |||||
Debt amortization rate on A1 for the final three years | 10.00% | |||||
Debt amortization rate on A2 | 1.00% | |||||
Debt Instrument, Interest Rate During Period | 2.31% | 1.42% | ||||
Deferred debt issuance costs | $ 8,700,000 | $ 7,800,000 | ||||
Interest Expense [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of Financing Costs | $ 900,000 | $ 300,000 | ||||
Second Amended and Restated Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | $ 1,000,000,000 | |||||
Deferred debt issuance costs | $ 7,400,000 | |||||
Second Amended and Restated Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate coverage | 3 | |||||
Second Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
EBITDA ratio | 3.5 | |||||
Term Loan A-1 [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 100,000,000 | |||||
Prepayment of amortization for term loan | $ 40,000,000 | |||||
Average interest rate on outstanding borrowings | 2.25% | |||||
Term Loan A-2 [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 250,000,000 | |||||
Average interest rate on outstanding borrowings | 2.50% | |||||
Revolving Credit Agreement - U.S. dollar borrowings [Member] | Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | $ 500,000,000 | |||||
Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | $ 650,000,000 | |||||
Revolving Credit Facility [Member] | Revolving Credit Agreement - U.S. dollar borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate on outstanding borrowings | 2.25% | |||||
Revolving Credit Facility [Member] | Revolving Credit Agreement - euro borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate on outstanding borrowings | 1.75% | |||||
Base Rate [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 0.25% | |||||
Base Rate [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.25% | |||||
Base Rate [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 0.50% | |||||
Base Rate [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.50% | |||||
Base Rate [Member] | Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 0.25% | |||||
Base Rate [Member] | Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 2.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 2.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 2.25% | |||||
Scenario, Forecast [Member] | Second Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
EBITDA ratio | 3 |
Derivatives - Derivatives by Ba
Derivatives - Derivatives by Balance Sheet Location (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2.8 | $ 0.7 |
Liability Derivatives | 5.3 | 18.4 |
Foreign Exchange Contract [Member] | Accounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.2 | 0.7 |
Foreign Exchange Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.6 | 0 |
Foreign Exchange Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2.9 | 10.8 |
Foreign Exchange Contract [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1.2 | 7 |
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 | $ 1.2 | $ 0.6 |
Derivatives - Derivatives by In
Derivatives - Derivatives by Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Exchange Contract [Member] | Other Income Expense [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Income / Expense | $ (1.4) | $ (0.5) | $ 0.4 | $ (1.6) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | 2.1 | 1.9 | 12 | (9.7) |
Loss Reclassified from AOCI | (3.6) | (2.1) | (5.6) | (3.6) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | 2.3 | 1.8 | 12.7 | (9.5) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Reclassified from AOCI | (3.5) | (2.1) | (5.3) | (3.6) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | (0.2) | 0.1 | (0.7) | (0.2) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Reclassified from AOCI | $ (0.1) | $ 0 | $ (0.3) | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Unfavorable Regulatory Action [Member] $ in Millions | Jun. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2000assessment |
Raw Materials Assessment [Member] | |||
Loss Contingencies [Line Items] | |||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 2 | ||
Number of tax assessments related to periods that predated acquisition and are covered by indemnification | assessment | 1 | ||
Electricity Assessment [Member] | |||
Loss Contingencies [Line Items] | |||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 3 | ||
Maximum [Member] | Raw Materials Assessment [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, range of possible loss | $ 16 | ||
Maximum [Member] | Raw Materials Assessment 2 [Member] [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, range of possible loss | $ 13 | ||
Maximum [Member] | Second Electricity Assessment [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, range of possible loss | 8.5 | ||
Maximum [Member] | Electricity Assessment One [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, range of possible loss | 5 | ||
Maximum [Member] | Third Electricity Assessment [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, range of possible loss | $ 4 |
Postretirement and Other Bene55
Postretirement and Other Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
U.S. Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1.3 | 1.3 | 2.6 | 2.6 |
Expected return on plan assets | (1.7) | (1.7) | (3.4) | (3.5) |
Amortizations and other | 1 | 1.4 | 2 | 2.8 |
Net periodic benefit cost | 0.6 | 1 | 1.2 | 1.9 |
Amortization of accumulated other comprehensive loss related to benefit plans | 4.1 | |||
French Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.3 | 0.3 | 0.6 | 0.6 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 | (0.1) | (0.1) |
Amortizations and other | 0.2 | 0.3 | 0.5 | 0.6 |
Net periodic benefit cost | 0.6 | 0.7 | 1.2 | 1.3 |
Amortization of accumulated other comprehensive loss related to benefit plans | 1 | |||
U.S. OPEB Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortizations and other | 0 | (0.1) | 0.1 | (0.2) |
Net periodic benefit cost | $ 0 | $ (0.1) | $ 0.1 | $ (0.2) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate from continuing operations | 26.50% | 23.00% | 27.00% | 23.50% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Number of reportable segments | segment | 2 | |||
Net Sales [Abstract] | ||||
Net Sales | $ 217.3 | $ 181.9 | $ 431.9 | $ 369.9 |
Percentage of Net Sales (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 37.5 | $ 24 | $ 69.1 | $ 46.5 |
Operating Profit (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments [Member] | Engineered Papers Segment [Member] | ||||
Net Sales [Abstract] | ||||
Net Sales | $ 145.3 | $ 141.3 | $ 288.9 | $ 288.8 |
Percentage of Net Sales (in hundredths) | 66.90% | 77.70% | 66.90% | 78.10% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 35.9 | $ 26.9 | $ 71.4 | $ 54.7 |
Operating Profit (in hundredths) | 95.70% | 112.10% | 103.30% | 117.60% |
Operating Segments [Member] | Advanced Materials & Structures Segment [Member] | ||||
Net Sales [Abstract] | ||||
Net Sales | $ 72 | $ 40.6 | $ 143 | $ 81.1 |
Percentage of Net Sales (in hundredths) | 33.10% | 22.30% | 33.10% | 21.90% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 8.9 | $ 5.4 | $ 14.1 | $ 8 |
Operating Profit (in hundredths) | 23.70% | 22.50% | 20.40% | 17.20% |
Unallocated Amount to Segment [Member] | ||||
Operating Profit [Abstract] | ||||
Operating Profit | $ (7.3) | $ (8.3) | $ (16.4) | $ (16.2) |
Operating Profit (in hundredths) | (19.40%) | (34.60%) | (23.70%) | (34.80%) |