Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
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, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,707,883 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 255.3 | $ 217.3 | $ 488.6 | $ 431.9 |
Cost of products sold | 178.7 | 150.4 | 348.9 | 301.5 |
Gross profit | 76.6 | 66.9 | 139.7 | 130.4 |
Selling expense | 8.2 | 6.4 | 16.5 | 12.8 |
Research expense | 4.6 | 4.4 | 9 | 8.7 |
General expense | 22.7 | 17.7 | 45.4 | 37.1 |
Total nonmanufacturing expenses | 35.5 | 28.5 | 70.9 | 58.6 |
Restructuring and impairment expense | 1.6 | 0.9 | 2.7 | 2.7 |
Operating profit | 39.5 | 37.5 | 66.1 | 69.1 |
Interest expense | 6.8 | 4.1 | 12.6 | 8.7 |
Other (expense) income, net | (0.8) | 1 | (0.9) | 3.3 |
Income from continuing operations before income taxes and income from equity affiliates | 31.9 | 34.4 | 52.6 | 63.7 |
Provision for income taxes | 9.9 | 9.1 | 17 | 17.2 |
Income from equity affiliates, net of income taxes | 0.3 | 0.7 | 0.4 | 0.6 |
Income from continuing operations | 22.3 | 26 | 36 | 47.1 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income | $ 22.3 | $ 26 | $ 36 | $ 47.1 |
Net income per share - basic: | ||||
Income per share from continuing operations (in dollars per share) | $ 0.73 | $ 0.85 | $ 1.18 | $ 1.54 |
Income (loss) per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income per share - basic (in dollars per share) | 0.73 | 0.85 | 1.18 | 1.54 |
Net income per share – diluted: | ||||
Income per share from continuing operations (in dollars per share) | 0.72 | 0.85 | 1.17 | 1.54 |
Income (loss) per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income per share - diluted (in dollars per share) | $ 0.72 | $ 0.85 | $ 1.17 | $ 1.54 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 30,412,900 | 30,313,200 | 30,389,000 | 30,304,100 |
Diluted (in shares) | 30,546,700 | 30,447,700 | 30,517,100 | 30,435,200 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22.3 | $ 26 | $ 36 | $ 47.1 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 19.8 | (8.9) | 25.7 | 5.1 |
Unrealized (losses) gains on derivative instruments | (3.7) | 2.1 | (2.6) | 12 |
Less: Reclassification adjustment for (gains) losses on derivative instruments included in net income | (0.6) | 3.6 | (0.4) | 5.6 |
Reclassification adjustment for amortization of postretirement benefit plans' costs included in net periodic benefit cost | 1.1 | 1.6 | 2.2 | 1.1 |
Other comprehensive income (loss) | 16.6 | (1.6) | 24.9 | 23.8 |
Comprehensive income | $ 38.9 | $ 24.4 | $ 60.9 | $ 70.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 97.8 | $ 107.4 |
Accounts receivable, net | 153.2 | 115.1 |
Inventories | 141.7 | 119.4 |
Income Taxes Receivable, Current | 2.7 | 0 |
Assets held for sale | 16.3 | 17.3 |
Other current assets | 8 | 5.1 |
Total current assets | 419.7 | 364.3 |
Property, plant and equipment, net | 354.1 | 307.4 |
Deferred income tax benefits | 2.3 | 3.7 |
Investment in equity affiliates | 63.8 | 63.8 |
Goodwill | 338.5 | 229.5 |
Intangible assets | 303.6 | 177.5 |
Other assets | 29 | 27.5 |
Total assets | 1,511 | 1,173.7 |
Current liabilities | ||
Current debt | 4.3 | 3 |
Accounts payable | 58.8 | 50.3 |
Income taxes payable | 0.5 | 5.3 |
Accrued expenses | 71.1 | 77.2 |
Total current liabilities | 134.7 | 135.8 |
Long-term debt | 716.8 | 437.4 |
Pension and other postretirement benefits | 35 | 33.1 |
Deferred income tax liabilities | 32.9 | 29.8 |
Other liabilities | 46.9 | 29.3 |
Total liabilities | 966.3 | 665.4 |
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; 30,706,861 and 30,544,494 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 3.1 | 3.1 |
Additional paid-in-capital | 61.5 | 59.2 |
Retained earnings | 594.5 | 585.3 |
Accumulated other comprehensive loss, net of tax | (114.4) | (139.3) |
Total stockholders’ equity | 544.7 | 508.3 |
Total liabilities and stockholders’ equity | $ 1,511 | $ 1,173.7 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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) | 30,706,861 | 30,544,494 |
Common stock outstanding (in shares) | 30,706,861 | 30,544,494 |
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, 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, net of tax | 23.8 | 23.8 | |||
Dividends declared | (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 | ||||
Beginning Balance at Dec. 31, 2016 | 508.3 | $ 3.1 | 59.2 | 585.3 | (139.3) |
Beginning Balance (in shares) at Dec. 31, 2016 | 30,544,494 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 36 | 36 | |||
Other comprehensive income, net of tax | 24.9 | 24.9 | |||
Dividends declared | (25.8) | (25.8) | |||
Restricted stock issuances, net | 0 | $ 0 | 0 | ||
Restricted stock issuances, net (in shares) | 184,213 | ||||
Stock-based employee compensation expense | 2.2 | 2.2 | |||
Stock issued to directors as compensation | 0.1 | $ 0 | 0.1 | ||
Stock issued to directors as compensation (in shares) | 2,741 | ||||
Purchases and retirement of common stock | (1) | $ 0 | 0 | (1) | |
Purchases and retirement of common stock (in shares) | (24,587) | ||||
Ending Balance at Jun. 30, 2017 | $ 544.7 | $ 3.1 | $ 61.5 | $ 594.5 | $ (114.4) |
Ending Balance (in shares) at Jun. 30, 2017 | 30,706,861 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.84 | $ 0.80 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flow - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating | ||
Net income | $ 36 | $ 47.1 |
Less: Income from discontinued operations | 0 | 0 |
Income from continuing operations | 36 | 47.1 |
Non-cash items included in net income: | ||
Depreciation and amortization | 31.9 | 22.1 |
Restructuring-related impairment | 0.6 | 0.5 |
Deferred income tax provision | 1.7 | 0.2 |
Pension and other postretirement benefits | 2 | 1.8 |
Stock-based compensation | 2.2 | 2.7 |
(Income) loss from equity affiliates | (0.4) | (0.6) |
Gain on sale of intangible assets | 0 | (1.8) |
Excess tax expense of stock-based awards | 0 | 0.2 |
Other items | (1.2) | (1.6) |
Changes in operating working capital, net of assets acquired: | ||
Accounts receivable | (13.8) | (4.9) |
Inventories | 0.5 | 7.7 |
Prepaid expenses | (1.9) | (1.3) |
Accounts payable | 3.1 | (6.8) |
Accrued expenses | (7.5) | (11.4) |
Accrued income taxes | (8.4) | (1.6) |
Net changes in operating working capital | (28) | (18.3) |
Net cash provided by (used in) operating activities of: | ||
- Continuing operations | 44.8 | 52.3 |
- Discontinued operations | 0.1 | (0.1) |
Net cash provided by operations | 44.9 | 52.2 |
Investing | ||
Capital spending | (19.3) | (9.7) |
Capitalized software costs | (1.6) | (0.9) |
Acquisitions, net of cash acquired | (291.7) | 0 |
Other investing | 1.8 | 1.9 |
Net cash used in investing | (310.8) | (8.7) |
Financing | ||
Cash dividends paid to SWM stockholders | (25.8) | (24.4) |
Changes in short-term debt | 0.9 | 0.5 |
Proceeds from issuances of long-term debt | 287.8 | 31.6 |
Payments on long-term debt | (8.9) | (96.9) |
Purchases of common stock | (1) | (0.6) |
Payments for debt issuance costs | (0.6) | 0 |
Excess tax expense of stock-based awards | 0 | (0.2) |
Net cash provided by (used in) financing | 252.4 | (90) |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | 3.8 |
Decrease in cash and cash equivalents | (9.6) | (42.7) |
Cash and cash equivalents at beginning of period | 107.4 | 186.5 |
Cash and cash equivalents at end of period | 97.8 | 143.8 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | 9.2 | 7.4 |
Cash paid for taxes, net | 23.2 | 18 |
Change in capital spending in accounts payable and accrued liabilities | 3.5 | 1.8 |
Deferred and contingent business acquisition consideration | $ 8.6 | $ 0 |
General
General | 6 Months Ended |
Jun. 30, 2017 | |
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 operates two segments: Advanced Materials & Structures and Engineered Papers. The Advanced Materials & Structures segment, or AMS, produces mostly resin-based rolled goods such as nets, films and meltblown materials, typically through an extrusion process or other non-woven technologies. These products are used in a variety of specialty applications across the filtration, construction and infrastructure, transportation, industrial and medical end-markets. As discussed more fully in Note 3. Business Acquisitions, in January 2017, the Company completed the acquisition of Conwed Plastics LLC, a Delaware limited liability company, and its Belgian subsidiary ("Conwed NV" and collectively with Conwed Plastic LLC, “Conwed”), which has been incorporated into the AMS segment. The Engineered Papers segment, or EP, primarily serves the tobacco industry with production of various cigarette papers, reconstituted tobacco products, or "recon". Traditional reconstituted tobacco leaf, or "RTL", is used as a blend with virgin tobacco in cigarettes and used as wrappers and binders for cigars. Recon, as well as LIP (low ignition propensity) cigarette paper, a specialty product with fire-safety features, are two key profit drivers, which together account for more than half of segment net sales. The EP segment also produces non-tobacco papers for both premium applications, such as energy storage, and industrial commodity paper grades, which are often produced to maximize machine utilization. The Company has operations in the United States, United Kingdom, Canada, France, Luxembourg, Russia, Brazil, China, Belgium and Poland, conducts business in over 90 countries, and operates 23 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 various cigarette 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 thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC on February 24, 2017. 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 Income from equity affiliates, net of income taxes. 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 Accounting Standards Update ("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). The Company will adopt this ASU effective January 1, 2018, utilizing the modified retrospective transition approach upon adoption. This approach requires an adjustment upon adoption to the financial statements to reflect the cumulative impact of the guidance and results in no change to prior period financial statements. Based on continuing evaluation of the provisions included in the new guidance, along with the related updates discussed below, the Company does not expect that adoption of this guidance will materially impact the amount or timing of revenues recognized in the consolidated financial statements or materially affect our financial position. The majority of our revenues generated are recognized upon delivery and transfer of title to the product to our customers. The time at which delivery and transfer of title occurs, for the majority of our contracts with customers, is the point when the product leaves our facility, thereby rendering our performance obligation fulfilled. The Company is currently in the process of developing and enhancing the financial statement disclosures under ASU 2014-09 that will be incorporated upon adoption of the guidance as well as updating internal procedures and internal controls, as applicable, in preparation for adoption in 2018. 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. The Company is currently in the process of evaluating the impact of the pronouncement on the Company's outstanding leases and expects that adoption will have an impact on the consolidated balance sheets related to recording right-of-use assets and corresponding lease liabilities. Further, the Company is currently in the process of evaluating the impact of adoption on the consolidated statements of income. 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 pronouncements on the consolidated financial statements in conjunction with its assessment of ASU 2014-09, as discussed above. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The amendments in ASU 2017-01 will be implemented on a prospective basis in the first quarter of 2018 and are not expected to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendment requires an employer to report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal from operations. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting". This amendment clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
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, Other (expense) income, net, or Interest expense 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, 2017 December 31, 2016 Accumulated pension and OPEB liability adjustments, net of income tax benefit of $17.2 million and $17.6 million at June 30, 2017 and December 31, 2016, respectively $ (34.3 ) $ (36.5 ) Accumulated unrealized loss on derivative instruments, net of income tax benefit of $5.0 million and $3.0 million at June 30, 2017 and December 31, 2016, respectively (4.9 ) (1.9 ) Accumulated unrealized foreign currency translation adjustments (75.2 ) (100.9 ) Accumulated other comprehensive loss $ (114.4 ) $ (139.3 ) Changes in the components of Accumulated other comprehensive loss were as follows ($ in millions): Three Months Ended June 30, 2017 June 30, 2016 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Unrealized gain (loss) on pension and OPEB liability adjustments $ 1.3 $ (0.2 ) $ 1.1 $ 3.4 $ (1.8 ) $ 1.6 Unrealized (loss) gain on derivative instruments (6.7 ) 2.4 (4.3 ) 5.7 — 5.7 Unrealized gain (loss) on foreign currency translation 19.8 — 19.8 (8.9 ) — (8.9 ) Total $ 14.4 $ 2.2 $ 16.6 $ 0.2 $ (1.8 ) $ (1.6 ) Six Months Ended June 30, 2017 June 30, 2016 Pre-tax Tax Net of Pre-tax Tax Net of Unrealized gain (loss) on pension and OPEB liability adjustments $ 2.6 $ (0.4 ) $ 2.2 $ 2.7 $ (1.6 ) $ 1.1 Unrealized (loss) gain on derivative instruments (5.0 ) 2.0 (3.0 ) 13.7 3.9 17.6 Unrealized gain on foreign currency translation 25.7 — 25.7 5.1 — 5.1 Total $ 23.3 $ 1.6 $ 24.9 $ 21.5 $ 2.3 $ 23.8 |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On January 20, 2017, the Company completed the acquisition of Conwed pursuant to the Equity Interest Purchase Agreement, dated as of December 14, 2016, by and among the Company, Delstar Technologies, Inc., Baldwin Enterprises, Inc., Conwed and Leucadia National Corporation. As a result of the transaction, Conwed and its subsidiaries (including Conwed NV) became wholly-owned indirect subsidiaries of the Company. The acquisition of Conwed expanded and continued the diversification of SWM's global presence in advanced materials and has been incorporated into the Company's AMS segment. As of June 30, 2017 , the fair values of the assets acquired and liabilities assumed are provisional because final appraisals have not yet been completed. The consideration transferred to acquire Conwed was $295.0 million in cash, subject to certain customary post-closing adjustments, plus three potential earn-out payments not to exceed $40.0 million in the aggregate, which payments are contingent upon the achievement of certain financial metrics in each of 2019, 2020 and 2021, in each case, upon the terms and subject to the conditions contained in the Purchase Agreement. The estimated fair value of the potential earn-out payments at the acquisition date was $8.6 million , for total consideration transferred of $303.6 million . The estimated fair value of the deferred contingent consideration was determined based on management's projections related to the achievement of certain financial metrics for the aforementioned years. The discount rate used to value the liability was based on specific business risk, cost of capital and other factors. The fair value of the contingent consideration was determined using significant unobservable inputs and is considered a Level 3 liability. The purchase price for Conwed was funded from the Company’s borrowings under the First Amendment to Second Amended and Restated Credit Agreement, while the purchase price for Conwed NV was funded from cash on hand. See Note 10. Debt, for additional information. The consideration paid for Conwed and the preliminary fair values of the assets acquired and liabilities assumed as of the January 20, 2017 acquisition date were as follows ($ in millions): Preliminary Fair Value as of January 20, 2017 Cash and cash equivalents $ 3.3 Accounts receivable 15.4 Inventory 20.6 Other current assets 1.1 Property, plant and equipment 31.7 Identifiable intangible assets 134.4 Total assets 206.5 Accounts payable and accrued expenses 8.2 Deferred tax liabilities 0.9 Net identifiable assets acquired 197.4 Goodwill 106.2 Fair value of consideration transferred $ 303.6 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 Conwed on January 20, 2017 was $15.4 million , with gross contractual amounts receivable of $15.8 million . Acquired inventories and property, plant and equipment were recorded at their fair values. Acquired intangible assets are primarily customer relationships, developed technology, trade names and non-competition agreements. The fair value of the inventory acquired from Conwed on January 20, 2017 was $20.6 million , which included a step-up in basis of $2.9 million . Finished goods and work-in-process inventory was valued using the comparative sales method, which is a function of the estimated selling price less the sum of (a) any cost to complete, (b) costs of disposal, (c) holding costs and (d) a reasonable profit for allowance for the acquirer. Raw materials were valued using the replacement cost method of the cost approach. Properties acquired included manufacturing and related facilities, land and leased sites that include leasehold improvements, and machinery and equipment for use in manufacturing operations. Management valued properties using the market and cost approaches, supported where available by observable market data which included consideration of obsolescence. Intangible assets acquired included a number of customer relationships in the infrastructure, construction and industrial end-markets. In addition to these intangible assets, the Company acquired a number of patented and unpatented technologies, a number of business-to-business trade names and non-competition agreements. Management valued intangible assets using the relief from royalty, multi-period excess earnings and with-and-without methods, all forms of the income approach supported by observable market data for peer companies. The following table shows the fair values assigned to intangible assets ($ in millions): Preliminary Fair Value as of January 20, 2017 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 108.0 15.0 Developed technology 18.1 17.2 Non-competition agreements 1.2 7.2 Total amortizable intangible assets 127.3 Indefinite-lived intangible assets: Trade names 7.1 Indefinite Total $ 134.4 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 Conwed's revenue growth and potential operational synergies from combining the SWM and Conwed businesses and workforces as well as the benefits of access to different markets and customers. Goodwill from the Conwed acquisition was assigned to the AMS reportable segment. The goodwill was determined on the basis of the preliminary fair values of the assets and liabilities identified as part of the transaction. The goodwill acquired in connection with Conwed and its domestic subsidiaries is expected to be deductible for tax purposes. The goodwill associated with Conwed NV is not expected to be deductible for tax purposes. For the six months ended June 30, 2017, the Company recognized $0.1 million of direct and indirect acquisition-related costs and incurred $0.6 million in acquisition-related financing costs. In 2016, the Company recognized $1.4 million of direct and indirect acquisition-related costs. Direct and indirect acquisition-related costs were expensed as incurred and are included in the General expense line item in the consolidated statements of income. Financing costs related to expanding the Amended Credit Agreement (as defined below) have been capitalized and will be amortized in Interest expense over the life of the Amended Credit Agreement. The amounts of Net sales and Income from continuing operations of Conwed included in the Company's consolidated income statement from the acquisition date are as follows ($ in millions): Net Sales Income from Continuing Operations April 1, 2017 - June 30, 2017 $ 38.9 $ 3.3 January 20, 2017 - June 30, 2017 65.5 3.2 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, 2016 are as follows ($ in millions): Net Sales Income from Continuing Operations 2016 Supplemental Pro Forma from April 1, 2016 - June 30, 2016 $ 254.7 $ 28.1 2016 Supplemental Pro Forma from January 1, 2016 - June 30, 2016 502.9 50.3 2017 Supplemental Pro Forma from January 1, 2017 - June 30, 2017 496.3 32.7 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company's former paper mill in San Pedro, Philippines is reported as a discontinued operation. This operation 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 operation 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, 2017 December 31, 2016 Assets of discontinued operations: Current assets $ 1.0 $ 1.0 Other assets 2.4 2.5 Liabilities of discontinued operations: Current liabilities 0.2 0.1 The financial results of discontinued operations had no impact on the consolidated financial statements for the three months or six months ended June 30, 2017 or 2016. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2017 | |
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 $ 22.3 $ 26.0 $ 36.0 $ 47.1 Less: Dividends paid to participating securities (0.1 ) — (0.2 ) (0.1 ) Less: Undistributed earnings available to participating securities (0.1 ) (0.2 ) (0.1 ) (0.2 ) Undistributed and distributed earnings available to common stockholders $ 22.1 $ 25.8 $ 35.7 $ 46.8 Denominator: Average number of common shares outstanding 30,412.9 30,313.2 30,389.0 30,304.1 Effect of dilutive stock-based compensation 133.8 134.5 128.1 131.1 Average number of common and potential common shares outstanding 30,546.7 30,447.7 30,517.1 30,435.2 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost (using the First-In, First-Out and weighted average methods) or market. The Company's costs included in inventory primarily include resins, pulp, 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 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 $ 52.3 $ 40.9 Work in process 22.7 23.9 Finished goods 56.1 44.9 Supplies and other 10.6 9.7 Total $ 141.7 $ 119.4 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 were as follows ($ in millions): Advanced Materials & Structures Engineered Papers Total Goodwill as of December 31, 2016 $ 224.8 $ 4.7 $ 229.5 Goodwill acquired during the period 106.2 — 106.2 Foreign currency translation adjustments 2.6 0.2 2.8 Goodwill as of June 30, 2017 $ 333.6 $ 4.9 $ 338.5 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 24.1 $ — $ 1.2 $ 251.0 Developed technology 34.0 4.8 — 0.3 28.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 0.8 — — 2.1 Patents 1.5 0.2 — — 1.3 Total $ 337.4 $ 31.6 $ 20.7 $ 1.8 $ 283.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ — $ (0.3 ) $ 20.3 December 31, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 168.3 $ 15.9 $ — $ 3.1 $ 149.3 Developed technology 15.9 3.6 — 0.4 11.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 — 20.7 0.3 0.8 Non-compete agreements 1.7 0.5 — — 1.2 Patents 1.5 0.2 — — 1.3 Engineered Papers Customer relationships 10.0 10.0 — — — Total $ 220.1 $ 31.1 $ 20.7 $ 3.8 $ 164.5 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 12.9 $ — $ — $ (0.1 ) $ 13.0 Amortization expense of intangible assets was $5.5 million and $3.1 million for the three months ended June 30, 2017 and 2016 , respectively, and $10.5 million and $6.2 million for the six months ended June 30, 2017 and 2016 , respectively. Incremental amortization expense of intangible assets for the Conwed acquisition was $2.1 million for the three months ended June 30, 2017 and $3.8 million for the six months ended June 30, 2017 . Finite-lived intangibles in the AMS segment are expensed using the straight-line amortization method. The estimated average aggregate amortization expense is $20.2 million in each of the next five years. In December 2016, the Company made a strategic decision to transition away from certain legacy business trade names associated with its recent acquisitions in the AMS segment in favor of a streamlined SWM branding approach. As a result of adopting this branding strategy, in the fourth quarter of 2016, the Company recognized an impairment expense of $20.7 million , representing a write-down of the DelStar trade name intangible asset to its fair market value. The remaining value of this trade name was amortized over the first six months of 2017, as the DelStar trade name was phased out. |
Restructuring and Impairment Ac
Restructuring and Impairment Activities | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred Restructuring and impairment expense of $1.6 million and $0.9 million in the three months ended June 30, 2017 and 2016 , respectively, and $2.7 million in both the six months ended June 30, 2017 and 2016 . In the AMS segment, Restructuring and impairment expense was $0.8 million and $0.0 million for the three months ended June 30, 2017 and 2016 , respectively, and $1.2 million and $0.6 million in the six months ended June 30, 2017 and 2016 , respectively. Restructuring and impairment expense for the six months ended June 30, 2017 consisted of severance accruals for employees at our U.S. and Belgium manufacturing operations. In the six months ended June 30, 2016 , Restructuring and impairment expense consisted of severance accruals for employees at our U.S. manufacturing operations. In the EP segment, Restructuring and impairment expense was $0.8 million and $0.9 million for the three months ended June 30, 2017 and 2016 , respectively, and $1.3 million and $1.8 million in the six months ended June 30, 2017 and 2016 , respectively. Restructuring and impairment expense for the six months ended June 30, 2017 consisted of $0.7 million in severance accruals for employees at our manufacturing facilities in the U.S. and France, as well as an impairment charge of $0.6 million at our Philippines RTL location. During the six months ended June 30, 2016 , Restructuring and impairment expense consisted of $1.3 million in severance accruals for employees at our manufacturing facilities in the U.S., France and Brazil, as well as $0.5 million of impairment expense at our Poland manufacturing facility. Additionally, the Company incurred no Restructuring and impairment expense during the three months ended June 30, 2017 or 2016 , and $0.2 million and $0.3 million in the six months ended June 30, 2017 and 2016 , respectively, in each case related to accruals for severance expenses within supporting overhead departments which were not allocated to a specific segment. Restructuring liabilities were classified within Accrued expenses in each of the consolidated balance sheets as of June 30, 2017 and December 31, 2016 . Changes in the restructuring liabilities, substantially all of which are employee-related, during the periods ended June 30, 2017 and December 31, 2016 are summarized as follows ($ in millions): Six Months Ended Year Ended June 30, December 31, Balance at beginning of year $ 4.3 $ 7.7 Accruals for announced programs 2.1 4.3 Cash payments (3.0 ) (8.4 ) Exchange rate impacts 0.2 0.7 Balance at end of period $ 3.6 $ 4.3 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 assets 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 continue 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, 2017 , all of the physical assets of this entity are classified as Assets held for sale. Impairment charges of $0.6 million were recognized on these assets during the three months ended June 30, 2017 . There were no impairment charges recognized on these assets during the three or six months ended June 30, 2016. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of total debt are summarized in the following table ($ in millions): June 30, December 31, Term Loan A-1 $ 60.0 $ 60.0 Term Loan A-2 245.6 246.9 Revolving Credit Agreement - U.S. dollar borrowings 412.5 131.0 French Employee Profit Sharing 8.8 9.5 Bank Overdrafts 0.9 — Less: Debt issuance costs (6.7 ) (7.0 ) Total Debt 721.1 440.4 Less: Current debt (4.3 ) (3.0 ) Long-Term Debt $ 716.8 $ 437.4 Credit Agreement On December 1, 2016, the Company entered into the First Amendment to Second Amended and Restated Credit Agreement ("First Amendment") with JPMorgan Chase Bank, N.A. as administrative agent. Under the terms of the First Amendment, and effective upon the closing of the Conwed acquisition on January 20, 2017, the Company's maximum net debt to EBITDA ratio, as defined in the First Amendment, calculated on a trailing four fiscal quarter basis, is required to be not greater than 4.25 at December 31, 2017, reducing to 4.00 after December 31, 2017, 3.75 after March 31, 2018, 3.50 after June 30, 2018 and 3.00 after December 31, 2018. On October 28, 2015, the Company, together with two of its Luxembourg-based wholly-owned holding subsidiaries, entered into the 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, or Term Loan A-1, made to the Company; and a $250 million Term Loan A-2, or 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 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 1.50% , in the case of the Revolving Credit Facility and Term Loan A-1, and from 0.50% to 1.75% , in the case of Term Loan A-2, or (ii) an adjusted London interbank offered rate (adjusted for maximum reserves), or LIBOR, plus an applicable margin, which ranges from 1.25% to 2.50% , in the case of the Revolving Credit Facility and Term Loan A-1, and from 1.50% to 2.75% , 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, 2017 , the average interest rate was 3.25% on outstanding Revolving Credit Facility borrowings, 3.25% on outstanding Term Loan A-1 borrowings and 3.50% on outstanding Term Loan A-2 borrowings. The weighted average effective interest rate on our debt facilities was approximately 3.05% and 2.31% for the six months ended June 30, 2017 and 2016 , respectively. In addition to the updated net debt to EBITDA ratios noted above, the Amended Credit Agreement also contains representations and warranties which are customary for facilities of this type and other covenants and provisions. The Company was in compliance with all of its covenants under the Amended Credit Agreement at June 30, 2017. In conjunction with the First Amendment, the Company capitalized approximately $0.6 million in deferred debt issuance costs which will be amortized over the term of the related debt instrument. As of June 30, 2017 and December 31, 2016 , the Company's total deferred debt issuance costs, net of accumulated amortization, were $6.7 million and $7.0 million , respectively. Amortization expense of $0.9 million was recorded during both the six months ended June 30, 2017 and 2016 , and has been included as a component of Interest expense in the accompanying consolidated statements of income. Fair Value of Debt At June 30, 2017 and December 31, 2016 , 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, 2017 | |
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 values 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. On January 20, 2017, the Company entered into an interest rate swap transaction with JPMorgan Chase Bank, N.A. for a three -year term on a notional amount of $315 million . The interest rate swap is intended to manage the Company's interest rate risk by fixing the interest rate on a portion of the Company's debt currently outstanding under its credit facility that was previously subject to a floating interest rate equal to 1-month LIBOR plus a credit spread. The swap provides for the Company to pay a fixed rate of 1.65% per annum in addition to the credit spread on such portion of its outstanding debt in exchange for receiving a variable interest rate based on 1-month LIBOR. On January 20, 2017, the Company also entered into a three -year cross-currency swap with JPMorgan Chase Bank, N.A. designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $100 million swapped to €93.7 million at maturity. The Company will receive from our swap counterparty U.S. dollar interest at a fixed rate of 1.65% per annum and pay to our swap counterparty Euro interest at a fixed rate of -0.18% per annum. The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at June 30, 2017 ($ 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, net $ 3.0 Accrued expenses $ 0.5 Foreign exchange contracts Other assets 1.1 Other liabilities 7.7 Interest rate contracts Other assets — Other liabilities 0.6 Total derivatives designated as hedges $ 4.1 $ 8.8 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 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, net $ 1.0 Accrued expenses $ 1.8 Foreign exchange contracts Other assets 1.9 Other liabilities — Interest rate contracts Other assets — Other liabilities 0.4 Total derivatives designated as hedges $ 2.9 $ 2.2 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 Gain (Loss) Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 2017 2016 Foreign exchange contracts $ (3.2 ) $ 2.3 $ (1.8 ) $ 12.7 $ 0.9 $ (3.5 ) $ 1.1 $ (5.3 ) Interest rate contracts (0.5 ) (0.2 ) (0.8 ) (0.7 ) (0.3 ) (0.1 ) (0.7 ) (0.3 ) Total $ (3.7 ) $ 2.1 $ (2.6 ) $ 12.0 $ 0.6 $ (3.6 ) $ 0.4 $ (5.6 ) 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 or six months ended June 30, 2017 or 2016 . 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 (Loss) Gain Recognized in Other Income / Expense Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Foreign exchange contracts $ (0.3 ) $ (1.4 ) $ (1.4 ) $ 0.4 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
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 $13.7 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, or the State, for unpaid ICMS and Fundo Estadual de Combate à Pobreza, or 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 $4.3 million in the first electricity assessment and $7.4 million in the second electricity assessment, based on the foreign currency exchange rate at June 30, 2017 . 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. In March and July 2017, the first-level judicial court ruled that SWM-B must present additional evidence that it is an "electricity-intensive consumer" concerning the first and second electricity assessments. SWM-B is now pursuing these actions. SWM-B's challenge to the third electricity assessment (approximately $4.4 million as of June 30, 2017 ), was decided adversely to SWM-B at the first administrative level (Junta de Revisão Fiscal) and is now on appeal to the Conselho de Contribuintes. 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. In December 2016, the Conseil de Prud’hommes d’Orange (a French court dealing with labor matters) rendered a decision by which the Company’s wholly owned subsidiary, Schweitzer Mauduit France (“SWM France”), was ordered to pay approximately €1.3 million to 18 former employees of Malaucène Industries, another wholly owned subsidiary, on the grounds, among other things, that SWM France was a “co-employer” of the plaintiffs, and, as a result, liable for certain obligations of Malaucène Industries with respect to such employees. Malaucène Industries stopped production in 2009. The Company believes that SWM France, which is a corporate holding company and indirect corporate parent of Malaucène Industries, is not a “co-employer” of any person and that the other claims are also without merit. The Company has no liability recorded in the consolidated financial statements for this matter, believing that the chances of SWM France to reverse the decision on appeal are sufficient that no such reserve is warranted. There can be no assurance, however, that the court of appeals will decide in favor of SWM France on any of the questions pending before the court. 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 a material adverse effect on its reputation, business, financial condition, results of operations or cash flows. However, as the outcomes 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, 2017 | |
Retirement Benefits [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, 2017 and 2016 were as follows ($ in millions): Three Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2017 2016 2017 2016 2017 2016 Service cost $ — $ — 0.3 $ 0.3 $ — $ — Interest cost 1.2 1.3 0.1 0.1 — — Expected return on plan assets (1.6 ) (1.7 ) (0.1 ) — — — Amortizations and other 0.9 1.0 0.3 0.2 — — Net periodic benefit cost $ 0.5 $ 0.6 $ 0.6 $ 0.6 $ — $ — Six Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2017 2016 2017 2016 2017 2016 Service cost $ — $ — $ 0.5 $ 0.6 $ — $ — Interest cost 2.4 2.6 0.2 0.2 — — Expected return on plan assets (3.2 ) (3.4 ) (0.1 ) (0.1 ) — — Amortizations and other 1.8 2.0 0.6 0.5 0.1 0.1 Net periodic benefit cost $ 1.0 $ 1.2 $ 1.2 $ 1.2 $ 0.1 $ 0.1 During the fiscal year ending December 31, 2017, the Company expects to recognize approximately $3.8 million for amortization of accumulated other comprehensive loss related to its U.S. pension and OPEB plans and approximately $1.2 million for its French pension plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 or 2016 . Our effective tax rate from continuing operations was 31.0% and 26.5% for the three months ended June 30, 2017 and 2016 , respectively. The increase compared to the prior-year period was due to a higher concentration of U.S. profits, lower tax credits, tax rate increases in certain jurisdictions and certain discrete items. Our effective tax rate from continuing operations was 32.3% and 27.0% for the six months ended June 30, 2017 and 2016 , respectively. The increase compared to the prior-year period was due to a higher concentration of U.S. profits, lower tax credits, tax rate increases in certain jurisdictions and certain discrete items. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's two operating product line segments are also the Company's reportable segments: Advanced Materials & Structures and Engineered Papers. The AMS segment primarily produces engineered resin-based rolled goods such as nets, films and other non-wovens for use in high-performance applications in the filtration, infrastructure and construction, transportation, medical and industrial end-markets. It consists of the operations of various acquisitions, including Conwed. The EP segment primarily produces various cigarette papers and recon for sale to cigarette manufacturers. The EP segment also includes non-tobacco paper for battery separators, printing and writing, drinking straw wrap and furniture laminates. 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, 2016 . The Company primarily evaluates segment performance and allocates resources based on operating profit. Expense amounts not associated with segments are referred to as unallocated expenses. ($ in millions) Net Sales Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Advanced Materials & Structures $ 117.8 46.1 % $ 72.0 33.1 % $ 217.8 44.6 % $ 143.0 33.1 % Engineered Papers 137.5 53.9 145.3 66.9 270.8 55.4 288.9 66.9 Total Consolidated $ 255.3 100.0 % $ 217.3 100.0 % $ 488.6 100.0 % $ 431.9 100.0 % ($ in millions) Operating Profit Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Advanced Materials & Structures $ 16.6 42.0 % $ 8.9 23.7 % $ 25.5 38.6 % $ 14.1 20.4 % Engineered Papers 30.8 78.0 35.9 95.7 57.7 87.3 71.4 103.3 Unallocated (7.9 ) (20.0 ) (7.3 ) (19.4 ) (17.1 ) (25.9 ) (16.4 ) (23.7 ) Total Consolidated $ 39.5 100.0 % $ 37.5 100.0 % $ 66.1 100.0 % $ 69.1 100.0 % |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On July 26, 2017, the Company entered into an agreement with Newberry County, South Carolina ("Newberry") to relocate its EP production facility in Newberry, South Carolina to a new location currently owned by Newberry. As part of the agreement, the Company sold its production facility to the State of South Carolina for $7.0 million and concurrently purchased a building from Newberry for $1 . Under the terms of the agreement, the Company will also be provided with a $6.0 million relocation incentive from Newberry, which will serve as reimbursement to SWM for costs in the build-out to manufacturing standards of the acquired facility and for relocation costs incurred in connection with the transition of operations to the facility. A gain will be recognized in Other income for the excess of cash received over expected costs incurred in the build-out and relocation. This gain is expected to be recognized in the quarter ending September 30, 2017 once estimates of costs to be incurred in the relocation and build-out process and the fair value of net consideration received is determined. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC on February 24, 2017. |
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 Income from equity affiliates, net of income taxes. 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 Accounting Standards Update ("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). The Company will adopt this ASU effective January 1, 2018, utilizing the modified retrospective transition approach upon adoption. This approach requires an adjustment upon adoption to the financial statements to reflect the cumulative impact of the guidance and results in no change to prior period financial statements. Based on continuing evaluation of the provisions included in the new guidance, along with the related updates discussed below, the Company does not expect that adoption of this guidance will materially impact the amount or timing of revenues recognized in the consolidated financial statements or materially affect our financial position. The majority of our revenues generated are recognized upon delivery and transfer of title to the product to our customers. The time at which delivery and transfer of title occurs, for the majority of our contracts with customers, is the point when the product leaves our facility, thereby rendering our performance obligation fulfilled. The Company is currently in the process of developing and enhancing the financial statement disclosures under ASU 2014-09 that will be incorporated upon adoption of the guidance as well as updating internal procedures and internal controls, as applicable, in preparation for adoption in 2018. 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. The Company is currently in the process of evaluating the impact of the pronouncement on the Company's outstanding leases and expects that adoption will have an impact on the consolidated balance sheets related to recording right-of-use assets and corresponding lease liabilities. Further, the Company is currently in the process of evaluating the impact of adoption on the consolidated statements of income. 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 pronouncements on the consolidated financial statements in conjunction with its assessment of ASU 2014-09, as discussed above. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The amendments in ASU 2017-01 will be implemented on a prospective basis in the first quarter of 2018 and are not expected to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendment requires an employer to report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal from operations. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting". This amendment clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | Components of Accumulated other comprehensive loss, net of tax, were as follows ($ in millions): June 30, 2017 December 31, 2016 Accumulated pension and OPEB liability adjustments, net of income tax benefit of $17.2 million and $17.6 million at June 30, 2017 and December 31, 2016, respectively $ (34.3 ) $ (36.5 ) Accumulated unrealized loss on derivative instruments, net of income tax benefit of $5.0 million and $3.0 million at June 30, 2017 and December 31, 2016, respectively (4.9 ) (1.9 ) Accumulated unrealized foreign currency translation adjustments (75.2 ) (100.9 ) Accumulated other comprehensive loss $ (114.4 ) $ (139.3 ) |
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, 2017 June 30, 2016 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Unrealized gain (loss) on pension and OPEB liability adjustments $ 1.3 $ (0.2 ) $ 1.1 $ 3.4 $ (1.8 ) $ 1.6 Unrealized (loss) gain on derivative instruments (6.7 ) 2.4 (4.3 ) 5.7 — 5.7 Unrealized gain (loss) on foreign currency translation 19.8 — 19.8 (8.9 ) — (8.9 ) Total $ 14.4 $ 2.2 $ 16.6 $ 0.2 $ (1.8 ) $ (1.6 ) Six Months Ended June 30, 2017 June 30, 2016 Pre-tax Tax Net of Pre-tax Tax Net of Unrealized gain (loss) on pension and OPEB liability adjustments $ 2.6 $ (0.4 ) $ 2.2 $ 2.7 $ (1.6 ) $ 1.1 Unrealized (loss) gain on derivative instruments (5.0 ) 2.0 (3.0 ) 13.7 3.9 17.6 Unrealized gain on foreign currency translation 25.7 — 25.7 5.1 — 5.1 Total $ 23.3 $ 1.6 $ 24.9 $ 21.5 $ 2.3 $ 23.8 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) - Conwed Plastics LLC [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed | The consideration paid for Conwed and the preliminary fair values of the assets acquired and liabilities assumed as of the January 20, 2017 acquisition date were as follows ($ in millions): Preliminary Fair Value as of January 20, 2017 Cash and cash equivalents $ 3.3 Accounts receivable 15.4 Inventory 20.6 Other current assets 1.1 Property, plant and equipment 31.7 Identifiable intangible assets 134.4 Total assets 206.5 Accounts payable and accrued expenses 8.2 Deferred tax liabilities 0.9 Net identifiable assets acquired 197.4 Goodwill 106.2 Fair value of consideration transferred $ 303.6 |
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 January 20, 2017 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 108.0 15.0 Developed technology 18.1 17.2 Non-competition agreements 1.2 7.2 Total amortizable intangible assets 127.3 Indefinite-lived intangible assets: Trade names 7.1 Indefinite Total $ 134.4 |
Actual and Pro Forma Net Sales and Income from Continuing Operations | The amounts of Net sales and Income from continuing operations of Conwed included in the Company's consolidated income statement from the acquisition date are as follows ($ in millions): Net Sales Income from Continuing Operations April 1, 2017 - June 30, 2017 $ 38.9 $ 3.3 January 20, 2017 - June 30, 2017 65.5 3.2 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, 2016 are as follows ($ in millions): Net Sales Income from Continuing Operations 2016 Supplemental Pro Forma from April 1, 2016 - June 30, 2016 $ 254.7 $ 28.1 2016 Supplemental Pro Forma from January 1, 2016 - June 30, 2016 502.9 50.3 2017 Supplemental Pro Forma from January 1, 2017 - June 30, 2017 496.3 32.7 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
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, 2017 December 31, 2016 Assets of discontinued operations: Current assets $ 1.0 $ 1.0 Other assets 2.4 2.5 Liabilities of discontinued operations: Current liabilities 0.2 0.1 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 $ 22.3 $ 26.0 $ 36.0 $ 47.1 Less: Dividends paid to participating securities (0.1 ) — (0.2 ) (0.1 ) Less: Undistributed earnings available to participating securities (0.1 ) (0.2 ) (0.1 ) (0.2 ) Undistributed and distributed earnings available to common stockholders $ 22.1 $ 25.8 $ 35.7 $ 46.8 Denominator: Average number of common shares outstanding 30,412.9 30,313.2 30,389.0 30,304.1 Effect of dilutive stock-based compensation 133.8 134.5 128.1 131.1 Average number of common and potential common shares outstanding 30,546.7 30,447.7 30,517.1 30,435.2 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 $ 52.3 $ 40.9 Work in process 22.7 23.9 Finished goods 56.1 44.9 Supplies and other 10.6 9.7 Total $ 141.7 $ 119.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 were as follows ($ in millions): Advanced Materials & Structures Engineered Papers Total Goodwill as of December 31, 2016 $ 224.8 $ 4.7 $ 229.5 Goodwill acquired during the period 106.2 — 106.2 Foreign currency translation adjustments 2.6 0.2 2.8 Goodwill as of June 30, 2017 $ 333.6 $ 4.9 $ 338.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Unamortized Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): June 30, 2017 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 24.1 $ — $ 1.2 $ 251.0 Developed technology 34.0 4.8 — 0.3 28.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 0.8 — — 2.1 Patents 1.5 0.2 — — 1.3 Total $ 337.4 $ 31.6 $ 20.7 $ 1.8 $ 283.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ — $ (0.3 ) $ 20.3 December 31, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 168.3 $ 15.9 $ — $ 3.1 $ 149.3 Developed technology 15.9 3.6 — 0.4 11.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 — 20.7 0.3 0.8 Non-compete agreements 1.7 0.5 — — 1.2 Patents 1.5 0.2 — — 1.3 Engineered Papers Customer relationships 10.0 10.0 — — — Total $ 220.1 $ 31.1 $ 20.7 $ 3.8 $ 164.5 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 12.9 $ — $ — $ (0.1 ) $ 13.0 |
Schedule of Amortized Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): June 30, 2017 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 24.1 $ — $ 1.2 $ 251.0 Developed technology 34.0 4.8 — 0.3 28.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 0.8 — — 2.1 Patents 1.5 0.2 — — 1.3 Total $ 337.4 $ 31.6 $ 20.7 $ 1.8 $ 283.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ — $ (0.3 ) $ 20.3 December 31, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 168.3 $ 15.9 $ — $ 3.1 $ 149.3 Developed technology 15.9 3.6 — 0.4 11.9 Customer contracts 0.9 0.9 — — — Trade names 21.8 — 20.7 0.3 0.8 Non-compete agreements 1.7 0.5 — — 1.2 Patents 1.5 0.2 — — 1.3 Engineered Papers Customer relationships 10.0 10.0 — — — Total $ 220.1 $ 31.1 $ 20.7 $ 3.8 $ 164.5 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 12.9 $ — $ — $ (0.1 ) $ 13.0 |
Restructuring and Impairment 33
Restructuring and Impairment Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 are summarized as follows ($ in millions): Six Months Ended Year Ended June 30, December 31, Balance at beginning of year $ 4.3 $ 7.7 Accruals for announced programs 2.1 4.3 Cash payments (3.0 ) (8.4 ) Exchange rate impacts 0.2 0.7 Balance at end of period $ 3.6 $ 4.3 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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-2 245.6 246.9 Revolving Credit Agreement - U.S. dollar borrowings 412.5 131.0 French Employee Profit Sharing 8.8 9.5 Bank Overdrafts 0.9 — Less: Debt issuance costs (6.7 ) (7.0 ) Total Debt 721.1 440.4 Less: Current debt (4.3 ) (3.0 ) Long-Term Debt $ 716.8 $ 437.4 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 ($ 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, net $ 3.0 Accrued expenses $ 0.5 Foreign exchange contracts Other assets 1.1 Other liabilities 7.7 Interest rate contracts Other assets — Other liabilities 0.6 Total derivatives designated as hedges $ 4.1 $ 8.8 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 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, net $ 1.0 Accrued expenses $ 1.8 Foreign exchange contracts Other assets 1.9 Other liabilities — Interest rate contracts Other assets — Other liabilities 0.4 Total derivatives designated as hedges $ 2.9 $ 2.2 |
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 Gain (Loss) Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 2017 2016 Foreign exchange contracts $ (3.2 ) $ 2.3 $ (1.8 ) $ 12.7 $ 0.9 $ (3.5 ) $ 1.1 $ (5.3 ) Interest rate contracts (0.5 ) (0.2 ) (0.8 ) (0.7 ) (0.3 ) (0.1 ) (0.7 ) (0.3 ) Total $ (3.7 ) $ 2.1 $ (2.6 ) $ 12.0 $ 0.6 $ (3.6 ) $ 0.4 $ (5.6 ) |
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 (Loss) Gain Recognized in Other Income / Expense Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Foreign exchange contracts $ (0.3 ) $ (1.4 ) $ (1.4 ) $ 0.4 |
Postretirement and Other Bene36
Postretirement and Other Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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, 2017 and 2016 were as follows ($ in millions): Three Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2017 2016 2017 2016 2017 2016 Service cost $ — $ — 0.3 $ 0.3 $ — $ — Interest cost 1.2 1.3 0.1 0.1 — — Expected return on plan assets (1.6 ) (1.7 ) (0.1 ) — — — Amortizations and other 0.9 1.0 0.3 0.2 — — Net periodic benefit cost $ 0.5 $ 0.6 $ 0.6 $ 0.6 $ — $ — Six Months Ended June 30, U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2017 2016 2017 2016 2017 2016 Service cost $ — $ — $ 0.5 $ 0.6 $ — $ — Interest cost 2.4 2.6 0.2 0.2 — — Expected return on plan assets (3.2 ) (3.4 ) (0.1 ) (0.1 ) — — Amortizations and other 1.8 2.0 0.6 0.5 0.1 0.1 Net periodic benefit cost $ 1.0 $ 1.2 $ 1.2 $ 1.2 $ 0.1 $ 0.1 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segments | ($ in millions) Net Sales Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Advanced Materials & Structures $ 117.8 46.1 % $ 72.0 33.1 % $ 217.8 44.6 % $ 143.0 33.1 % Engineered Papers 137.5 53.9 145.3 66.9 270.8 55.4 288.9 66.9 Total Consolidated $ 255.3 100.0 % $ 217.3 100.0 % $ 488.6 100.0 % $ 431.9 100.0 % ($ in millions) Operating Profit Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Advanced Materials & Structures $ 16.6 42.0 % $ 8.9 23.7 % $ 25.5 38.6 % $ 14.1 20.4 % Engineered Papers 30.8 78.0 35.9 95.7 57.7 87.3 71.4 103.3 Unallocated (7.9 ) (20.0 ) (7.3 ) (19.4 ) (17.1 ) (25.9 ) (16.4 ) (23.7 ) Total Consolidated $ 39.5 100.0 % $ 37.5 100.0 % $ 66.1 100.0 % $ 69.1 100.0 % |
General (Details)
General (Details) | Jun. 30, 2017countryjoint_ventureproduction_locations |
Nature of Business [Line Items] | |
Number of countries in which entity operates | country | 90 |
Number of production locations | production_locations | 23 |
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, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Accumulated pension and OPEB liability adjustments, net of income tax benefit of $17.2 million and $17.6 million at June 30, 2017 and December 31, 2016, respectively | $ (34.3) | $ (36.5) |
Accumulated unrealized loss on derivative instruments, net of income tax benefit of $5.0 million and $3.0 million at June 30, 2017 and December 31, 2016, respectively | (4.9) | (1.9) |
Accumulated unrealized foreign currency translation adjustments | (75.2) | (100.9) |
Accumulated other comprehensive loss | (114.4) | (139.3) |
Accumulated pension and OPEB tax | 17.2 | 17.6 |
Accumulated tax on gain (loss) on financial instruments | $ 5 | $ 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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||||
Pension and OPEB liability adjustments, Pre-tax | $ 1.3 | $ 3.4 | $ 2.6 | $ 2.7 |
Unrealized (loss) gain on derivative instruments, Pre-tax | (6.7) | 5.7 | (5) | 13.7 |
Unrealized foreign currency translation adjustments, Pre-tax | 19.8 | (8.9) | 25.7 | 5.1 |
Total other comprehensive income (loss), Pre-tax | 14.4 | 0.2 | 23.3 | 21.5 |
Pension and OPEB liability adjustments, Tax | (0.2) | (1.8) | (0.4) | (1.6) |
Unrealized (loss) gain on derivative instruments, Tax | 2.4 | 0 | 2 | 3.9 |
Unrealized foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), Tax | 2.2 | (1.8) | 1.6 | 2.3 |
Pension and OPEB liability adjustments, Net of Tax | 1.1 | 1.6 | 2.2 | 1.1 |
Unrealized gain (loss) on financial instruments, net of realized gain (loss), Net of Tax | (4.3) | 5.7 | (3) | 17.6 |
Unrealized foreign currency translation adjustments, Net of Tax | 19.8 | (8.9) | 25.7 | 5.1 |
Other comprehensive income (loss) | $ 16.6 | $ (1.6) | $ 24.9 | $ 23.8 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - Conwed Plastics LLC [Member] - USD ($) $ in Millions | Jan. 20, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Consideration, cash | $ 295 | |||
Potential earn-out payments | 40 | |||
Consideration, acquisition-date fair value of earn-out payments | 8.6 | |||
Consideration, total | 303.6 | |||
Accounts receivable, fair value | 15.4 | |||
Accounts receivable, gross contractual amount | 15.8 | |||
Inventory acquired | 20.6 | |||
Financing costs | $ 0.6 | |||
Inventory step-up in basis [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventory acquired | $ 2.9 | |||
Acquisition-related Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs | $ 0.1 | $ 1.4 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jan. 20, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 338.5 | $ 229.5 | |
Conwed Plastics LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 3.3 | ||
Accounts receivable | 15.4 | ||
Inventory | 20.6 | ||
Other current assets | 1.1 | ||
Property, plant and equipment | 31.7 | ||
Identifiable intangible assets | 134.4 | ||
Total assets | 206.5 | ||
Accounts payable and accrued expenses | 8.2 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 0.9 | ||
Net assets acquired | 197.4 | ||
Goodwill | 106.2 | ||
Fair value of consideration transferred | $ 303.6 |
Business Acquisitions - Finite-
Business Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Conwed Plastics LLC [Member] $ in Millions | Jan. 20, 2017USD ($) |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 134.4 |
Trade names [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | 7.1 |
Finite-Lived Intangible Assets [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | 127.3 |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 108 |
Weighted-Average Amortization Period (Years) | 15 years |
Developed technology [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 18.1 |
Weighted-Average Amortization Period (Years) | 17 years 2 months 12 days |
Non-compete agreements [Member] | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 1.2 |
Weighted-Average Amortization Period (Years) | 7 years 2 months 12 days |
Business Acquisitions - Actual
Business Acquisitions - Actual and Pro Forma Net Sales and Income from Continuing Operations (Details) - Conwed Plastics LLC [Member] - USD ($) $ in Millions | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||||
Actual Net Sales | $ 38.9 | $ 65.5 | |||
Actual Loss from Continuing Operations | $ 3.3 | $ 3.2 | |||
Pro Forma Net Sales | $ 254.7 | $ 496.3 | $ 502.9 | ||
Pro Forma Income from Continuing Operations | $ 28.1 | $ 32.7 | $ 50.3 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets of discontinued operations: | ||
Current assets | $ 1 | $ 1 |
Other assets | 2.4 | 2.5 |
Liabilities of discontinued operations: | ||
Current liabilities | $ 0.2 | $ 0.1 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator (basic and diluted): | ||||
Net income | $ 22.3 | $ 26 | $ 36 | $ 47.1 |
Less: Dividends paid to participating securities | (0.1) | 0 | (0.2) | (0.1) |
Less: Undistributed earnings available to participating securities | (0.1) | (0.2) | (0.1) | (0.2) |
Undistributed and distributed earnings available to common stockholders | $ 22.1 | $ 25.8 | $ 35.7 | $ 46.8 |
Denominator: | ||||
Average number of common shares outstanding (in shares) | 30,412,900 | 30,313,200 | 30,389,000 | 30,304,100 |
Effect of dilutive stock-based compensation (in shares) | 133,800 | 134,500 | 128,100 | 131,100 |
Average number of common and potential common shares outstanding (in shares) | 30,546,700 | 30,447,700 | 30,517,100 | 30,435,200 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 52.3 | $ 40.9 |
Work in process | 22.7 | 23.9 |
Finished goods | 56.1 | 44.9 |
Supplies and other | 10.6 | 9.7 |
Total | $ 141.7 | $ 119.4 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 229.5 |
Goodwill acquired during the period | 106.2 |
Foreign currency translation adjustments | 2.8 |
Goodwill, end of period | 338.5 |
Engineered Papers [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 4.7 |
Goodwill acquired during the period | 0 |
Foreign currency translation adjustments | 0.2 |
Goodwill, end of period | 4.9 |
Advanced Materials & Structures [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 224.8 |
Goodwill acquired during the period | 106.2 |
Foreign currency translation adjustments | 2.6 |
Goodwill, end of period | $ 333.6 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense of intangible assets | $ 5.5 | $ 3.1 | $ 10.5 | $ 6.2 | |
Estimated Amortization Expense | |||||
Estimated average amortization expense in each of next five years | 20.2 | 20.2 | |||
Advanced Materials & Structures [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 337.4 | 337.4 | $ 220.1 | ||
Accumulated Amortization | 31.6 | 31.6 | 31.1 | ||
Accumulated Impairments | 20.7 | 20.7 | 20.7 | ||
Accumulated Foreign Exchange | 1.8 | 1.8 | 3.8 | ||
Net Carrying Amount | 283.3 | 283.3 | 164.5 | ||
Advanced Materials & Structures [Member] | Trade names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | (0.3) | (0.3) | (0.1) | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 20 | 20 | 12.9 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 20.3 | 20.3 | 13 | ||
Advanced Materials & Structures [Member] | Customer relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 276.3 | 276.3 | 168.3 | ||
Accumulated Amortization | 24.1 | 24.1 | 15.9 | ||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | 1.2 | 1.2 | 3.1 | ||
Net Carrying Amount | 251 | 251 | 149.3 | ||
Advanced Materials & Structures [Member] | Developed technology [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 34 | 34 | 15.9 | ||
Accumulated Amortization | 4.8 | 4.8 | 3.6 | ||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | 0.3 | 0.3 | 0.4 | ||
Net Carrying Amount | 28.9 | 28.9 | 11.9 | ||
Advanced Materials & Structures [Member] | Customer contracts [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 0.9 | 0.9 | 0.9 | ||
Accumulated Amortization | 0.9 | 0.9 | 0.9 | ||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | 0 | 0 | 0 | ||
Net Carrying Amount | 0 | 0 | 0 | ||
Advanced Materials & Structures [Member] | Trade names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 21.8 | 21.8 | 21.8 | ||
Accumulated Amortization | 0.8 | 0.8 | 0 | ||
Accumulated Impairments | 20.7 | 20.7 | 20.7 | ||
Accumulated Foreign Exchange | 0.3 | 0.3 | 0.3 | ||
Net Carrying Amount | 0 | 0 | 0.8 | ||
Advanced Materials & Structures [Member] | Non-compete agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 2.9 | 2.9 | 1.7 | ||
Accumulated Amortization | 0.8 | 0.8 | 0.5 | ||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | 0 | 0 | 0 | ||
Net Carrying Amount | 2.1 | 2.1 | 1.2 | ||
Advanced Materials & Structures [Member] | Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1.5 | 1.5 | 1.5 | ||
Accumulated Amortization | 0.2 | 0.2 | 0.2 | ||
Accumulated Impairments | 0 | 0 | 0 | ||
Accumulated Foreign Exchange | 0 | 0 | 0 | ||
Net Carrying Amount | 1.3 | 1.3 | 1.3 | ||
Engineered Papers [Member] | Customer relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 10 | ||||
Accumulated Amortization | 10 | ||||
Accumulated Impairments | 0 | ||||
Accumulated Foreign Exchange | 0 | ||||
Net Carrying Amount | $ 0 | ||||
Conwed Plastics LLC [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense of intangible assets | $ 2.1 | $ 3.8 |
Restructuring and Impairment 50
Restructuring and Impairment Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | $ 1.6 | $ 0.9 | $ 2.7 | $ 2.7 | |
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of year | 4.3 | 7.7 | $ 7.7 | ||
Accruals for announced programs | 2.1 | 4.3 | |||
Cash payments | (3) | (8.4) | |||
Exchange rate impacts | 0.2 | 0.7 | |||
Balance at end of period | 3.6 | 3.6 | $ 4.3 | ||
Corporate, Non-Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.2 | 0.3 | |||
Engineered Papers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.8 | 0.9 | 1.3 | 1.8 | |
Engineered Papers [Member] | Asset impairment [Member] | Poland Manufacturing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.5 | ||||
Engineered Papers [Member] | France, Brazil, And United States [Member] | Employee severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.7 | 1.3 | |||
Engineered Papers [Member] | PHILIPPINES | Asset impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | 0.6 | ||||
Advanced Materials & Structures [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expense | $ 0.8 | $ 0 | $ 1.2 | $ 0.6 |
Debt - Schedule of Debt Summari
Debt - Schedule of Debt Summarized (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less: Debt issuance costs | $ 6.7 | $ 7 |
Total Debt | 721.1 | 440.4 |
Less: Current debt | (4.3) | (3) |
Long-Term Debt | 716.8 | 437.4 |
French Employee Profit Sharing [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 8.8 | 9.5 |
Bank Overdrafts [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 0.9 | 0 |
Term Loan A-1 [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 60 | 60 |
Term Loan A-2 [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 245.6 | 246.9 |
Revolving Credit Agreement - U.S. dollar borrowings [Member] | Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | $ 412.5 | $ 131 |
Debt - Additional Information (
Debt - Additional Information (Details) | Jan. 20, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jan. 01, 2019 | Jul. 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2016USD ($) | Oct. 28, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.31% | 3.05% | ||||||||
Deferred debt issuance costs | $ 6,700,000 | $ 7,000,000 | ||||||||
Interest Expense [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amortization of debt issuance costs | $ 900,000 | $ 900,000 | ||||||||
Second Amended and Restated Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
EBITDA ratio | 4.25 | |||||||||
Maximum borrowings under credit facility | $ 1,000,000,000 | |||||||||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 600,000 | |||||||||
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 | 3.25% | |||||||||
Term Loan A-2 [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||
Interest rate | 1.00% | |||||||||
Average interest rate on outstanding borrowings | 3.50% | |||||||||
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 | 3.25% | |||||||||
Base Rate [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable interest rate | 0.25% | |||||||||
Base Rate [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable interest rate | 1.50% | |||||||||
Base Rate [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable interest rate | 0.50% | |||||||||
Base Rate [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable interest rate | 1.75% | |||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable 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 variable interest rate | 1.50% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-1 [Member] | Term Loan [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable 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 variable interest rate | 2.50% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A-2 [Member] | Term Loan [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable 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 variable interest rate | 2.75% | |||||||||
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 variable 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 variable interest rate | 2.50% | |||||||||
Forecast [Member] | Second Amended and Restated Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
EBITDA ratio | 3 | 3.50 | 3.75 | 4 | ||||||
Interest rate, first two years [Member] | Term Loan A-1 [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.00% | |||||||||
Interest rate, final three years [Member] | Term Loan A-1 [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 10.00% |
Derivatives - Derivatives by Ba
Derivatives - Derivatives by Balance Sheet Location (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 4.1 | $ 2.9 |
Liability Derivatives | 8.8 | 2.2 |
Foreign exchange contracts [Member] | Accounts receivable, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 3 | 1 |
Foreign exchange contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.1 | 1.9 |
Foreign exchange contracts [Member] | Accrued expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0.5 | 1.8 |
Foreign exchange contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 7.7 | 0 |
Interest rate contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Interest rate contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0.6 | $ 0.4 |
Derivatives - Derivative Instru
Derivatives - Derivative Instruments Effect on AOCI and Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | $ (3.7) | $ 2.1 | $ (2.6) | $ 12 |
Gain (Loss) Reclassified from AOCI | 0.6 | (3.6) | 0.4 | (5.6) |
Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | (3.2) | 2.3 | (1.8) | 12.7 |
Cash Flow Hedging [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax | (0.5) | (0.2) | (0.8) | (0.7) |
Sales [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI | 0.9 | (3.5) | 1.1 | (5.3) |
Other income (expense) [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Other Income / Expense | (0.3) | (1.4) | (1.4) | 0.4 |
Interest Expense [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI | $ (0.3) | $ (0.1) | $ (0.7) | $ (0.3) |
Derivatives Derivative Instrume
Derivatives Derivative Instruments (Details) € in Millions | Jan. 20, 2017EUR (€) | Jan. 20, 2017USD ($) |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 315,000,000 | |
Derivative, Term of Contract | 3 years | |
Derivative, Fixed Interest Rate | (1.65%) | (1.65%) |
Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | € 93.7 | $ 100,000,000 |
Derivative, Term of Contract | 3 years | |
Cross Currency Interest Rate Contract [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Fixed Interest Rate | (1.65%) | (1.65%) |
Cross Currency Interest Rate Contract [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Fixed Interest Rate | (0.18%) | (0.18%) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Unfavorable Regulatory Action [Member] € in Millions | Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Oct. 31, 2015USD ($) | 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 | $ 16,000,000 | |||
Maximum [Member] | Raw Materials Assessment 2 [Member] [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, range of possible loss | $ 13,700,000 | |||
Maximum [Member] | Electricity Assessment One [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, range of possible loss | 4,300,000 | |||
Maximum [Member] | Second Electricity Assessment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, range of possible loss | 7,400,000 | |||
Maximum [Member] | Third Electricity Assessment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, range of possible loss | $ 4,400,000 | |||
Maximum [Member] | Malaucene Co-Employment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, range of possible loss | € | € 1.3 | |||
Loss Contingency, Pending Claims, Number | 18 |
Postretirement and Other Bene57
Postretirement and Other Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Domestic Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amortization of accumulated other comprehensive loss related to benefit plans | $ 3.8 | $ 3.8 | ||
Domestic Plan [Member] | Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | $ 0 | 0 | $ 0 |
Interest cost | 1.2 | 1.3 | 2.4 | 2.6 |
Expected return on plan assets | (1.6) | (1.7) | (3.2) | (3.4) |
Amortizations and other | 0.9 | 1 | 1.8 | 2 |
Net periodic benefit cost | 0.5 | 0.6 | 1 | 1.2 |
Domestic Plan [Member] | Other Postretirement Benefits Plan [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 | 0.1 | 0.1 |
Net periodic benefit cost | 0 | 0 | 0.1 | 0.1 |
Foreign Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amortization of accumulated other comprehensive loss related to benefit plans | 1.2 | 1.2 | ||
Foreign Plan [Member] | Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.3 | 0.3 | 0.5 | 0.6 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Expected return on plan assets | (0.1) | 0 | (0.1) | (0.1) |
Amortizations and other | 0.3 | 0.2 | 0.6 | 0.5 |
Net periodic benefit cost | $ 0.6 | $ 0.6 | $ 1.2 | $ 1.2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate from continuing operations | 31.00% | 26.50% | 32.30% | 27.00% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Number of reportable segments | segment | 2 | |||
Net Sales [Abstract] | ||||
Net sales | $ 255.3 | $ 217.3 | $ 488.6 | $ 431.9 |
Percentage of Net Sales (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 39.5 | $ 37.5 | $ 66.1 | $ 69.1 |
Operating Profit (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments [Member] | Engineered Papers [Member] | ||||
Net Sales [Abstract] | ||||
Net sales | $ 137.5 | $ 145.3 | $ 270.8 | $ 288.9 |
Percentage of Net Sales (in hundredths) | 53.90% | 66.90% | 55.40% | 66.90% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 30.8 | $ 35.9 | $ 57.7 | $ 71.4 |
Operating Profit (in hundredths) | 78.00% | 95.70% | 87.30% | 103.30% |
Operating Segments [Member] | Advanced Materials & Structures [Member] | ||||
Net Sales [Abstract] | ||||
Net sales | $ 117.8 | $ 72 | $ 217.8 | $ 143 |
Percentage of Net Sales (in hundredths) | 46.10% | 33.10% | 44.60% | 33.10% |
Operating Profit [Abstract] | ||||
Operating Profit | $ 16.6 | $ 8.9 | $ 25.5 | $ 14.1 |
Operating Profit (in hundredths) | 42.00% | 23.70% | 38.60% | 20.40% |
Unallocated [Member] | ||||
Operating Profit [Abstract] | ||||
Operating Profit | $ (7.9) | $ (7.3) | $ (17.1) | $ (16.4) |
Operating Profit (in hundredths) | (20.00%) | (19.40%) | (25.90%) | (23.70%) |
Subsequent Event (Details)
Subsequent Event (Details) - Newberry County, South Carolina - Subsequent Event | Jul. 26, 2017USD ($) |
Subsequent Event [Line Items] | |
Proceeds from sale of buildings | $ 7,000,000 |
Payments to acquire buildings | 1 |
Incentive from lessor | $ 6,000,000 |