Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SEE | |
Entity Registrant Name | SEALED AIR CORP/DE | |
Entity Central Index Key | 1,012,100 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 197,142,884 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Current assets: | |||||
Cash and cash equivalents | $ 315.7 | $ 358.4 | [1] | ||
Trade receivables, net of allowance for doubtful accounts of $24.6 in 2016 and $24.9 in 2015 | 787.6 | 758.4 | [1] | ||
Income tax receivables | 25.3 | 22.7 | [1] | ||
Other receivables | 141.8 | 124.8 | [1] | ||
Inventories, net of inventory reserves of $25.6 in 2016 and $21.9 in 2015 | 736.5 | 660.8 | [1] | ||
Assets held for sale | 3.5 | 10.3 | [1] | ||
Prepaid expenses and other current assets | 308.7 | 280.2 | [1] | ||
Total current assets | 2,319.1 | 2,215.6 | [1] | ||
Property and equipment, net | 954.4 | 930.7 | [1] | ||
Goodwill | 2,929.4 | 2,909.5 | [1] | ||
Intangible assets, net | 783.6 | 784.3 | [1] | ||
Non-current deferred taxes | 201.6 | 204.7 | [1] | ||
Other non-current assets | [1] | 351.2 | 345.2 | ||
Total assets | 7,539.3 | 7,390 | [1] | ||
Current liabilities: | |||||
Short-term borrowings | 353.1 | 241.9 | [1] | ||
Current portion of long-term debt | 61.6 | 46.6 | [1] | ||
Accounts payable | 719.7 | 675.3 | [1] | ||
Accrued restructuring costs | 61.2 | 53.6 | [1] | ||
Other current liabilities | 704.3 | 789.7 | [1] | ||
Total current liabilities | 1,899.9 | 1,807.1 | [1] | ||
Long-term debt, less current portion | [1] | 4,280 | 4,266.8 | ||
Non-current deferred taxes | 63.6 | 75 | [1] | ||
Other non-current liabilities | 734.7 | 714 | [1] | ||
Total liabilities | $ 6,978.2 | $ 6,862.9 | [1] | ||
Commitments and contingencies - Note 15 | [1] | ||||
Stockholders’ equity: | |||||
Preferred stock, $0.10 par value per share, 50,000,000 shares authorized; no shares issued in 2016 and 2015 | [1] | ||||
Common stock, $0.10 par value per share, 400,000,000 shares authorized; shares issued: 227,151,277 in 2016 and 225,625,636 in 2015; shares outstanding: 197,157,078 in 2016 and 196,013,299 in 2015 | $ 22.7 | $ 22.6 | [1] | ||
Additional paid-in capital | 1,936.6 | 1,915 | [1] | ||
Retained earnings | 740.8 | 675.2 | [1] | ||
Common stock in treasury, 29,994,199 shares in 2016 and 29,612,337 shares in 2015 | (1,284.7) | (1,265.7) | [1] | ||
Accumulated other comprehensive loss, net of taxes | (854.3) | [2] | (820) | [1] | |
Total stockholders’ equity | 561.1 | 527.1 | [1] | ||
Total liabilities and stockholders’ equity | $ 7,539.3 | $ 7,390 | [1] | ||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. | ||||
[2] | The ending balance in AOCI includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $(19.4) million as of March 31, 2016 and $68.7 million as of March 31, 2015. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Trade receivables, net of allowance for doubtful accounts | $ 24.6 | $ 24.9 |
Inventory reserves | $ 25.6 | $ 21.9 |
Preferred stock, par value per share | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 227,151,277 | 225,625,636 |
Common stock, shares outstanding | 197,157,078 | 196,013,299 |
Common stock in treasury, shares | 29,994,199 | 29,612,337 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Income Statement [Abstract] | |||
Net sales | $ 1,590.6 | $ 1,746.4 | |
Cost of sales | 1,001.3 | 1,096.8 | |
Gross profit | 589.3 | 649.6 | |
Selling, general and administrative expenses | 396 | 427.8 | |
Amortization expense of intangible assets acquired | 21.4 | 22.6 | |
Stock appreciation rights expense | 0.3 | 2.9 | |
Restructuring and other charges | 12.7 | ||
Operating profit | 171.6 | 183.6 | |
Interest expense | (54.7) | (58.5) | |
Foreign currency exchange (loss) gain related to Venezuelan subsidiaries | (1.7) | 0.8 | |
Other (expense) income , net | (2.9) | 5.4 | |
Earnings before income tax provision | 112.3 | 131.3 | |
Income tax provision | 20.4 | 34.1 | |
Net earnings available to common stockholders | $ 91.9 | $ 97.2 | [1],[2] |
Net earnings per common share: | |||
Basic | $ 0.47 | $ 0.46 | |
Diluted | 0.46 | 0.46 | |
Dividends per common share | $ 0.13 | $ 0.13 | |
Weighted average number of common shares outstanding: | |||
Basic | 195.2 | 208.9 | |
Diluted | 197 | 211.7 | |
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | [2] | |
Net earnings available to common stockholders | $ 91.9 | $ 97.2 | [1] |
Other comprehensive income, net of taxes: | |||
Recognition of deferred pension items, net of taxes of $(0.6) for the three months ended March 31, 2016 and $(0.8) for the three months ended March 31, 2015 | 1.7 | 2 | |
Foreign currency translation adjustments, net of taxes of $2.1 for the three months ended March 31, 2016 and $4.0 for the three months ended March 31, 2015 | (9.3) | (58.1) | |
Other comprehensive (loss) income, net of taxes | (34.3) | (61.5) | |
Comprehensive income, net of taxes | 57.6 | 35.7 | |
Net Investment Hedge [Member] | |||
Other comprehensive income, net of taxes: | |||
Unrealized losses on derivative instruments, net of taxes | (22.6) | (8) | |
Cash Flow Hedge [Member] | |||
Other comprehensive income, net of taxes: | |||
Unrealized losses on derivative instruments, net of taxes | $ (4.1) | $ 2.6 | |
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Recognition of deferred pension items, taxes | $ (0.6) | $ (0.8) |
Foreign currency translation adjustments, taxes | 2.1 | 4 |
Net Investment Hedge [Member] | ||
Unrealized losses on derivative instruments, taxes | 14 | 4.9 |
Cash Flow Hedge [Member] | ||
Unrealized losses on derivative instruments, taxes | $ 1.9 | $ (0.1) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | ||||
Statement Of Cash Flows [Abstract] | |||||
Net earnings available to common stockholders | $ 91.9 | $ 97.2 | [1],[2] | ||
Adjustments to reconcile net earnings to net cash provided by operating activities | |||||
Depreciation and amortization | 49.1 | 54.8 | [1] | ||
Share-based incentive compensation | 12.6 | 18.3 | [1] | ||
Profit sharing expense | 6.8 | 9.8 | [1] | ||
Loss on debt redemption and refinancing activities | [1] | 0.5 | |||
Remeasurement loss (gain) related to Venezuelan subsidiaries | 1.7 | (0.8) | [1] | ||
Provisions for bad debt | 1 | 2.1 | [1] | ||
Provisions for inventory obsolescence | 3.6 | 3.2 | [1] | ||
Deferred taxes, net | (11.4) | 16 | [1] | ||
Excess tax benefit from stock based compensation | (6.8) | ||||
Net (gain) on disposals of property and equipment and other | [1] | (3.3) | |||
Net loss on sale of business | 2.5 | ||||
Other non-cash items | 3.7 | (0.1) | [1] | ||
Changes in operating assets and liabilities: | |||||
Trade receivables, net | (22.3) | 8.5 | [1] | ||
Inventories | (65.1) | (83.8) | [1] | ||
Accounts payable | 39 | 75 | [1] | ||
Settlement agreement and related items | [1] | 235.2 | |||
Other assets and liabilities | (102.3) | (107.5) | [1] | ||
Net cash provided by operating activities | 4 | 325.1 | [1] | ||
Cash flows from investing activities: | |||||
Capital expenditures | (51.8) | (20.7) | [1] | ||
Proceeds, net from sale of business | 4.2 | ||||
Businesses acquired in purchase transactions, net of cash and cash equivalents acquired | [1] | (8.5) | |||
Proceeds from sales of property, equipment and other assets | 1.3 | 25.4 | [1] | ||
Settlement of foreign currency forward contracts | (22.4) | 32 | [1] | ||
Net cash (used in) provided by investing activities | (68.7) | 28.2 | [1] | ||
Cash flows from financing activities: | |||||
Net proceeds from (re-payments of) borrowings | 106.8 | (39.1) | [1] | ||
Excess tax benefit from stock based compensation | 6.8 | ||||
Cash used as collateral on borrowing arrangements | (0.2) | (14.2) | [1] | ||
Dividends paid on common stock | (26.2) | (27.5) | [1] | ||
Acquisition of common stock for tax withholding obligations under our Omnibus stock plan and 2005 Contingent Stock Plan | (22.3) | (6.2) | [1] | ||
Repurchases of common stock | (32) | (69.2) | [1] | ||
Net cash provided by (used in) financing activities | 32.9 | (156.2) | [1] | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (10.9) | 2.5 | [1] | ||
Balance, beginning of period | 358.4 | [3] | 286.4 | [1] | |
Net change during the period | (42.7) | 199.6 | [1] | ||
Balance, end of period | 315.7 | 486 | [1] | ||
Supplemental Cash Flow Information: | |||||
Interest payments, net of amounts capitalized | 48.9 | 58.7 | [1] | ||
Income tax payments | 29.6 | 23.8 | [1] | ||
Stock appreciation rights payments (less amounts included in restructuring payments) | 0.1 | 3.7 | [1] | ||
Restructuring payments including associated costs | 18.7 | 22 | [1] | ||
Non-cash items: | |||||
Transfers of shares of our common stock from treasury for our 2014 and 2013 profit-sharing plan contributions | $ 37.6 | $ 36.7 | [1] | ||
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||||
[3] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Note 1 Organization and Basis of Presentation Organization We are a global leader in food safety and security, facility hygiene and product protection. We serve an array of end markets including food and beverage processing, food service, retail, healthcare and industrial, and commercial and consumer applications. Our focus is on achieving quality sales growth through leveraging our geographic footprint, technological know-how and leading market positions to bring measurable, sustainable value to our customers and investors. We conduct substantially all of our business through three wholly-owned subsidiaries, Cryovac, Inc., Sealed Air Corporation (US) and Diversey, Inc. Throughout this report, when we refer to “Sealed Air,” the “Company,” “we,” “our,” or “us,” we are referring to Sealed Air Corporation and all of our subsidiaries, except where the context indicates otherwise. Basis of Presentation Our Condensed Consolidated Financial Statements include all of the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In management’s opinion, all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of our Condensed Consolidated Balance Sheets as of March 31, 2016 and our Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 and 2015 have been made. The results set forth in our Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 and in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. All amounts are in millions, except per share amounts, and approximate due to rounding. Some prior period amounts have been reclassified to conform to the current year presentation. These reclassifications, individually and in the aggregate, did not have a material impact on our condensed consolidated financial condition, results of operations or cash flows. Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. We are responsible for the unaudited Condensed Consolidated Financial Statements and notes included in this report. As these are condensed financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 as filed with the SEC on February 22, 2016 (“2015 Form 10-K”) and with the information contained in other publicly-available filings with the SEC. As of April 15, 2015, we realigned our regional organization. There was no change to our previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows due to our change in regional organization. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further details on the realignment. Reclassifications and Revisions For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified on the Condensed Consolidated Statement of Cash Flows. The reclassification of these items in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2015 resulted in an increase in cash provided by operating activities of $6.1 million, an increase to cash provided by investing activities of $32.0 million, and a decrease of $38.1 million due to the effect of foreign currency exchange rate changes on cash. Additionally, for the three months ended March 31, 2015, certain amounts related to compensating balance arrangements were misclassified in the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Cash Flows. The revision of these items resulted in a decrease of $50.1 million in cash and an increase in other current assets ($23.9 million) and other non-current assets ($26.2 million) related to cash deposits held in compensating balance arrangements for certain short-term borrowing agreements on the Condensed Consolidated Balance Sheet. The revision of these items on the Condensed Consolidated Statement of Cash Flows resulted in an increase to cash provided by financing activities of $14.2 million. For the three months ended March 31, 2015, foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income (Loss) in deferred pension items and unrealized losses on cash flow hedge derivative instruments. The reclassification of these items in the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2015 resulted in a decrease in recognition of deferred pension items of $15.3 million, an increase in unrealized losses on derivative instruments for cash flow hedge of $0.6 million, and an increase in the foreign currency translation adjustments of $14.7 million. These classification adjustments did not result in a change to total stockholder’s equity. Impact of Inflation and Currency Fluctuation Venezuela Economic and political events in Venezuela have continued to expose us to heightened levels of foreign currency exchange risk. Accordingly, Venezuela has been designated a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the bolivar fuerte as the functional currency for our subsidiaries in Venezuela. All bolivar-denominated monetary assets and liabilities are re-measured into U.S. dollars using the current exchange rate available to us, and any changes in the exchange rate are reflected in foreign currency exchange gains and losses related to our Venezuelan subsidiaries on the Condensed Consolidated Statements of Operations. 2015 Activity In February 2015, the Venezuelan government announced a new foreign exchange platform called the Marginal Currency System or SIMADI. The SIMADI basically replaced the SICAD 2 rate. When this market opened on February 12, 2015 the SIMADI rate was 170.0390 and then at March 31, 2015 it was 192.9537. The SICAD 1 and the SICAD 2 were merged into the SICAD. The opening rate was 12 for the SICAD. In addition, the CENCOEX will continue and provide preferential treatment for certain import operations such as food and medicines. Since these changes were announced by the Venezuelan government, the new SIMADI market has had very little activity and companies have not been able to access this market to obtain U.S. dollars. In addition, the SICAD rate which is established via auctions has had no auctions held since October 2014. However, in June 2015 an auction was held for the automotive parts and school supplies industries. Therefore, in 2015 there were three legal mechanisms to exchange bolivars for US dollars: · CENCOEX at the official rate at 6.3; · SICAD auction process at the awarded exchange rate (opening rate at 12); and · SIMADI at the negotiated rate (rate of 192.9537 at March 31, 2015). During the three months ended March 31, 2015, we evaluated which legal mechanisms were available to each Venezuelan subsidiary to access U.S. dollars and also estimated the excess cash position over the next 18 months. We concluded that as of March 31, 2015 the excess cash position for our Venezuelan subsidiaries would be remeasured at the SIMADI rate, which was 192.9537 at March 31, 2015, since the SICAD 2 rate which was 49.9883 at December 31, 2014 (and used for the December 31, 2014 remeasurement) no longer existed at March 31, 2015. For the remaining Bolívar cash balance and all other Bolívar denominated monetary assets and liabilities, the Company determined that it would continue to remeasure these items at the CENCOEX official rate of 6.3. As a result of this evaluation, the Company reported a remeasurement net gain of During the remainder of 2015, we continued to evaluate which legal mechanisms were available to our Venezuelan subsidiaries to access U.S. dollars. Starting June 30, 2015 through to December 31, 2015, we concluded that we would use the SIMADI rate to remeasure our bolivar denominated monetary assets and liabilities since it was our only legally available option and at that time, our intent on a go-forward basis to utilize this market to settle any future transactions based on the then current facts and circumstances. The SIMADI rate as of December 31, 2015 was 198.6986. During 2015, the Company did not receive U.S. dollars via the CENCOEX official rate of 6.3. We expected that we would only have limited access to the CENCOEX market to settle certain past transactions. However, if the option did become available to us to use the CENCOEX in the future, the Company would consider this further. In addition, there were no SICAD auctions for the food or chemical industries as of December 31, 2015. During 2015, we were only able to access the SIMADI market and only received minimal amounts of U.S. dollars. 2016 Activity On February 17, 2016, the Venezuelan government made further changes to the exchange rates including a further devaluation and on March 9, 2016 published in Exchange Agreement No. 35 further rules governing foreign exchange transactions which were effective March 10, 2016. This includes the following key changes: · The preferential rate for essential goods and services was changed from 6.3 to 10 bolivars per U.S. dollars and is no longer called CENCOEX but is now DIPRO; · The SICAD rate was eliminated which reduced the number of legal mechanisms from three down to only two; and · Eliminated the SIMADI rate which was replaced by the DICOM rate which will be allowed to float freely beginning at a rate of approximately 203 bolivars to U.S. dollar. At March 31, 2016, we evaluated which legal mechanisms were available to our Venezuelan subsidiaries to access U.S. dollars. As noted above, the SIMADI rate was replaced with the DICOM rate. We concluded that we will use the DICOM rate to remeasure our bolivar denominated monetary assets and liabilities since it is our only legally available option and our intent on a go-forward basis to utilize this market to settle any future transactions based on the current facts and circumstances. The DICOM rate as of March 31, 2016 was 272.9123. During the first quarter of 2016, we were only able to access the SIMADI market (during the period the market was available) and only received minimal amounts of U.S. dollars. We did not receive any U.S. dollars via the CENCOEX (at an official rate of 6.3) or the DIPRO (at an official rate of 10.0). We expect that we will only have limited access to the DIPRO market to settle certain past transactions. However, if the option becomes available to us to use the DIPRO in the future, the Company will consider this further. For any U.S. dollar denominated monetary asset or liability, such amounts do not get remeasured at month-end since it is already an asset or liability denominated in U.S. dollars. As a result of this evaluation, the Company reported a remeasurement loss of $1.7 million for the three months ended March 31, 2016. We will continue to evaluate each reporting period the appropriate exchange rate to remeasure our financial statements based on the facts and circumstances at that time. For the three months ended March 31, 2016, less than 1% of our consolidated net sales and operating income were derived from our businesses in Venezuela. As of March 31, 2016, we had net assets of $4 million in Venezuela, which included cash and cash equivalents of $1 million. Also, as of March 31, 2016, our Venezuelan subsidiaries had a negative cumulative translation adjustment balance of $46 million. The Company is currently evaluating options regarding the future operations of its Venezuelan subsidiaries. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Note 2 Recently Issued Accounting Standards Recently Adopted Accounting Standards In November 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2015-17 Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). This ASU will simplify the presentation of deferred tax assets and liabilities by requiring companies to classify all deferred tax as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 31, 2016 and interim periods within those annual periods. However, as early adoption is available, we have adopted this standard as of December 31, 2015 with retrospective application. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments amounts are determined. The ASU also requires that in the same period, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and will be applied prospectively for adjustments to provisional amounts that occur after that date. The impact of ASU 2015-16 will depend on any future events whereby we have any business combinations and any adjustments to the provisional amounts identified during the measurement period are recorded. In August 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (“ASU 2015-12”). This ASU designates contract value as the only required measure for fully benefit-responsive investment contracts; simplifies the investment disclosure requirements under Accounting Standards Codification (“ASC”) topic 820 for fair value, and topics 960, 962 and 965 for employee benefit plans; and provides a similar measurement date practical expedient for employee benefit plans. The amendments in ASU 2015-12 were effective as of January 1, 2016. We do not expect ASU 2015-12 to have a material impact on our financial statements. In April 2015, the FASB issued ASU 2015-03 Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This ASU will simplify the presentation of debt issuance costs. It will require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 Emerging Issues Task Forces (“EITF”) Meeting (SEC Update) (“ASU 2015-15”). This ASU clarifies that as line of credit arrangements were not specifically discussed in ASU 2015-03, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 should be adopted concurrent with the adoption of ASU 2015-03. The amendments in ASU 2015-03 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of January 1, 2016 with retroactive application. Adoption of ASU 2015-03 and ASU 2015-15 resulted in a decrease in other assets of $35.9 million and a decrease in long-term debt of $35.9 million as of December 31, 2015 on the Condensed Consolidated Balance Sheet. In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). This ASU will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. It provides guidance about whether a cloud computing arrangement includes a software license. The amendments in ASU 2015-05 have been adopted prospectively. The adoption of ASU 2015-05 does not have a material impact on the financial statements. Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early adoption is permitted. We are currently in the process of evaluating this new standard update. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), (“ASU 2016-02”). This ASU requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years ending after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. We are currently in the process of evaluating this new standard update. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU requires equity investments except those under the equity method of accounting to be measured at fair value with the changes in fair value recognized in net income. The amendment simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, it also requires enhanced disclosures about investments. The amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application for certain provisions is allowed but early adoption of the amendments is not permitted. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are currently in the process of evaluating this new standard update. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), which applies to inventory valued at first-in, first-out (FIFO) or average cost. ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. We are currently in the process of evaluating this new standard update. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). Previous revenue recognition guidance in U.S. GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principal, five steps are required to be applied. In addition, ASU 2014-09 expands and enhances disclosure requirements which require disclosing sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This includes both qualitative and quantitative information. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” (“ASU 2015-14”). The amendments in ASU 2015-14 delay the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017 and allow early adoption as of the original public entity effective date. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), (“ASU 2016-08”). This ASU clarifies the implementation guidance on principal versus agent considerations. The updated guidance improves the understandability of determining whether an entity is a principal or agent, the nature of the good or service, and involvement of other parties in a sale. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) (“ASU 2016-10”). ASU 2016-10 clarifies two aspects of Topic 606: identifying performance obligation and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in ASU 2016-08 and ASU 2016-10 are effective in conjunction with ASU 2015-14. We are currently in the process of evaluating this new standard update. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Divestitures | Note 3 Divestitures Sale of North American foam trays and absorbent pads business On April 1, 2015, we completed the sale of our North American foam trays and absorbent pads business to NOVIPAX, a portfolio company of Atlas Holdings LLC, for net proceeds of $76 million, net of certain purchase price adjustments of $6 million and subject to final purchase price adjustment. In 2015, we recorded a $27 million pre-tax gain on the sale of business which was reflected in our Condensed Consolidated Statement of Operations. There was no impact to the Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 or March 31, 2015 due to this disposition. The decision to sell this business was consistent with the Company's overall strategy to focus on innovation and differentiation in its portfolio of products within the flexible packaging industry. The sale included our manufacturing facilities in Paxinos and Reading, PA, Indianapolis, IN, Rockingham, NC, and Grenada, MS. The North American foam trays and absorbent pads business was part of the Company’s Food Care division. For the three months ended March 31, 2015, the North American foam trays and absorbent pads businesses contributed approximately $53 million of net sales and $10 million of earnings before income taxes, which excludes certain allocated costs, including corporate support services, for which the Company would normally include in measuring its performance. Sale of European food trays business On November 1, 2015, we completed the sale of our European food trays business to Faerch Plast A/S, a European food packaging solutions provider, for net proceeds at that time of €18 million euros or approximately $19 million, net of certain purchase price adjustments of €2 million euros or approximately $2 million and subject to final purchase price adjustments. The net proceeds excluded contingent consideration which will be received if certain performance targets are met. This transaction follows the sale of our North American foam trays and absorbent pads business in April 2015 and is aligned with our continued commitment to a disciplined approach to portfolio management strategy. The European sale included the manufacturing facilities in Poole, UK and Bunol, Spain. In the Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 we recorded an additional $2 million pre-tax loss on the sale of business primarily due to a reduction in the net proceeds that occurred during the three months ended March 31, 2016. This resulted in cumulative net proceeds of €16 million euros or approximately $17 million which is still subject to final purchase price adjustments. The European food trays business was part of the Company’s Food Care division. For the three months ended March 31, 2015, the European food trays business contributed approximately $14 million of net sales and $2 million of earnings from continuing operations before income tax provision, respectively, which excludes certain allocated costs, including corporate support services for which the Company would normally include in measuring its performance. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments | Note 4 Segments The Company’s segment reporting structure consists of three reportable segments and an “Other” category and is as follows: · Food Care; · Diversey Care; · Product Care; and · Other (includes Corporate, Medical Applications and New Ventures businesses). The Company’s Food Care, Diversey Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products. Other includes Corporate and the Medical Applications and New Ventures businesses. Other includes certain costs that are not allocated to the reportable segments, primarily consisting of unallocated corporate overhead costs, including administrative functions and cost recovery variances not allocated to the reportable segments from global functional expenses. We allocate and disclose depreciation and amortization expense to our segments, although property and equipment, net is not allocated to the segment assets, nor is depreciation and amortization included in the segment performance metric Adjusted EBITDA. We also disclose restructuring and other charges by segment, although these items are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges are categorized as special items as outlined in the table reconciling Non-U.S. GAAP Total Company Adjusted EBITDA to U.S. GAAP net earnings from continuing operations set forth below. The accounting policies of the reportable segments and Other are the same as those applied to the Consolidated Financial Statements. The following tables show Net Sales and Adjusted EBITDA by our segment reporting structure: Three Months Ended March 31, (In millions) 2016 2015 Net Sales: Food Care $ 764.7 $ 879.8 As a % of Total Company net sales 48.1 % 50.4 % Diversey Care 441.4 467.9 As a % of Total Company net sales 27.8 % 26.8 % Product Care (1) 367.2 379.9 As a % of Total Company net sales 23.1 % 21.8 % Total Reportable Segments Net Sales 1,573.3 1,727.6 Other (1) 17.3 18.8 Total Company Net Sales $ 1,590.6 $ 1,746.4 Three Months Ended March 31, (In millions) 2016 2015 Adjusted EBITDA: Food Care $ 147.8 $ 190.5 Adjusted EBITDA Margin 19.3 % 21.7 % Diversey Care 36.3 41.1 Adjusted EBITDA Margin 8.2 % 8.8 % Product Care (1) 77.1 76.4 Adjusted EBITDA Margin 21.0 % 20.1 % Total Reportable Segments Adjusted EBITDA 261.2 308.0 Other (1) (18.1 ) (23.8 ) Non-U.S. GAAP Total Company Adjusted EBITDA $ 243.1 $ 284.2 Adjusted EBITDA Margin 15.3 % 16.3 % (1) As of January 1, 2016, our Kevothermal business was moved from Other to our Product Care Segment. This resulted in a reclassification of $2.8 million of net sales and $0.8 million of adjusted EBITDA for the three months ended March 31, 2015. The following table shows a reconciliation of Total Company Adjusted EBITDA to Net earnings available to common stockholders: Three Months Ended March 31, (In millions) 2016 2015 Total Company Adjusted EBITDA $ 243.1 $ 284.2 Depreciation and amortization (1) (63.5 ) (73.1 ) Special items: Accelerated depreciation of non-strategic assets related to restructuring programs — 0.6 Restructuring and other charges (2) — (12.7 ) Other restructuring associated costs included in cost of sales and selling, general and administrative expenses (6.1 ) (8.6 ) Gain from sale of building in connection with relocation — 3.5 SARs (0.3 ) (2.9 ) Foreign currency exchange (loss) gains related to Venezuelan subsidiaries (1.7 ) 0.8 Loss from sale of European food trays business (1.6 ) — Other special items (2.9 ) (2.0 ) Interest expense (54.7 ) (58.5 ) Income tax provision 20.4 34.1 Net earnings available to common stockholders $ 91.9 $ 97.2 (1) Depreciation and amortization by segment is as follows: Three Months Ended March 31, (In millions) 2016 2015 Food Care $ 25.7 $ 28.5 Diversey Care 23.0 26.1 Product Care 9.6 10.1 Total reportable segments 58.3 64.7 Other 5.2 8.4 Total Company depreciation and amortization (1) $ 63.5 $ 73.1 (1) Includes share-based incentive compensation of $14.4 million for the three months ended March 31, 2016 and $18.3 million for the three months ended March 31, 2015. (2) Restructuring and other charges by segment were as follows: Three Months Ended March 31, (In millions) 2016 2015 Food Care $ — $ 6.9 Diversey Care — 3.2 Product Care — 2.6 Total reportable segments — 12.7 Other — — Total Company restructuring and other charges $ — $ 12.7 Assets by Reportable Segments The following table shows assets allocated by our segment reporting structure. Only assets identifiable by segment and reviewed by our chief operating decision maker by segment are allocated by the reportable segment assets, which are trade receivables, net, and finished goods inventory, net. All other assets are included in “Assets not allocated.” March 31, December 31, (In millions) 2016 2015 Assets: Trade receivables, net, and finished goods inventories, net Food Care $ 555.6 $ 522.4 Diversey Care 467.6 440.3 Product Care 230.1 222.0 Other 17.8 12.5 Total segments and other 1,271.1 1,197.2 Assets not allocated Cash and cash equivalents 315.7 358.4 Property and equipment, net 954.4 930.7 Goodwill 2,929.4 2,909.5 Intangible assets, net 783.6 784.3 Assets held for sale 3.5 10.3 Other 1,281.6 1,199.6 Total $ 7,539.3 $ 7,390.0 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 Inventories The following table details our inventories: March 31, December 31, (In millions) 2016 2015 Inventories: Raw materials $ 130.8 $ 109.6 Work in process $ 122.2 112.4 Finished goods $ 483.5 438.8 Total $ 736.5 $ 660.8 |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | Note 6 Property and Equipment, net The following table details our property and equipment, net: March 31, December 31, (In millions) 2016 2015 Land and improvements $ 89.0 $ 86.7 Buildings 617.5 602.0 Machinery and equipment 2,177.3 2,141.3 Other property and equipment 131.4 129.1 Construction-in-progress 210.9 190.7 Property and equipment, gross 3,226.1 3,149.8 Accumulated depreciation and amortization (2,271.7 ) (2,219.1 ) Property and equipment, net $ 954.4 $ 930.7 The following table details our interest cost capitalized and depreciation and amortization expense for property and equipment. Three Months Ended March 31, (In millions) 2016 2015 Interest cost capitalized $ 1.6 $ 1.0 Depreciation and amortization expense for property and equipment $ 27.7 $ 32.2 |
Goodwill and Identifiable Asset
Goodwill and Identifiable Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Assets | Note 7 Goodwill and Identifiable Assets Goodwill The following table shows our goodwill balances by our segment reporting structure. We review goodwill for impairment on a reporting unit basis annually during the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. As of March 31, 2016, we did not identify any changes in circumstances that would indicate the carrying value of goodwill may not be recoverable. (In millions) Food Care Diversey Care Product Care Other Total Gross Carrying Value at December 31, 2015 $ 804.3 $ 1,820.9 $ 1,373.7 $ 1.6 $ 4,000.5 Accumulated impairment (208.0 ) (883.0 ) — — (1,091.0 ) Carrying Value at December 31, 2015 $ 596.3 $ 937.9 $ 1,373.7 $ 1.6 $ 2,909.5 Acquisition method adjustments (0.3 ) — — — (0.3 ) Currency translation 0.2 19.4 0.7 (0.1 ) 20.2 Gross Carrying Value at March 31, 2016 804.2 1,840.3 1,374.4 1.5 4,020.4 Accumulated impairment (208.0 ) (883.0 ) — — (1,091.0 ) Carrying Value at March 31, 2016 $ 596.2 $ 957.3 $ 1,374.4 $ 1.5 $ 2,929.4 Identifiable Intangible Assets The following tables summarize our identifiable intangible assets with definite and indefinite useful lives. As of March 31, 2016, there were no impairment indicators present. March 31, 2016 December 31, 2015 Gross Gross Carrying Accumulated Accumulated Carrying Accumulated Accumulated (In millions) Value Amortization Impairment Net Value Amortization Impairment Net Customer relationships $ 861.8 $ (269.0 ) $ (148.9 ) $ 443.9 $ 846.2 $ (249.4 ) $ (148.9 ) $ 447.9 Trademarks and tradenames 1.8 (0.6 ) — 1.2 1.7 (0.4 ) — 1.3 Capitalized Software 153.9 (129.0 ) — 24.9 143.0 (125.3 ) — 17.7 Technology 142.5 (68.6 ) (22.2 ) 51.7 141.9 (65.0 ) (22.2 ) 54.7 Contracts 43.3 (32.5 ) — 10.8 42.8 (31.2 ) — 11.6 Total intangible assets with definite lives 1,203.3 (499.7 ) (171.1 ) 532.5 1,175.6 (471.3 ) (171.1 ) 533.2 Trademarks and tradenames with indefinite lives (1) 881.3 — (630.2 ) 251.1 881.3 — (630.2 ) 251.1 Total identifiable intangible assets $ 2,084.6 $ (499.7 ) $ (801.3 ) $ 783.6 $ 2,056.9 $ (471.3 ) $ (801.3 ) $ 784.3 (1) The intangible assets include $251 million of trademarks and trade names that we have determined to have indefinite useful lives, primarily acquired in connection with the acquisition of Diversey. The following table shows the remaining estimated future amortization expense at March 31, 2016. Year Amount (in millions) Remainder of 2016 $ 65.6 2017 81.3 2018 68.1 2019 58.4 Thereafter 259.1 Total $ 532.5 |
Accounts Receivable Securitizat
Accounts Receivable Securitization Programs | 3 Months Ended |
Mar. 31, 2016 | |
Transfers And Servicing [Abstract] | |
Accounts Receivable Securitization Programs | Note 8 Accounts Receivable Securitization Programs U.S. Accounts Receivable Securitization Program We and a group of our U.S. operating subsidiaries maintain an accounts receivable securitization program under which they sell eligible U.S. accounts receivable to an indirectly wholly-owned subsidiary that was formed for the sole purpose of entering into this program. The wholly-owned subsidiary in turn may sell an undivided fractional ownership interest in these receivables with two banks and issuers of commercial paper administered by these banks. The wholly-owned subsidiary retains the receivables it purchases from the operating subsidiaries. Any transfers of fractional ownership interests of receivables under the U.S. receivables securitization program to the two banks and issuers of commercial paper administered by these banks are considered secured borrowings with pledge of collateral and will be classified as short-term borrowings on our Condensed Consolidated Balance Sheets. These banks do not have any recourse against the general credit of the Company. The net trade receivables that served as collateral for these borrowings are reclassified from trade receivables, net to prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. As of March 31, 2016, the maximum purchase limit for receivable interests was $90 million, subject to the availability limits described below. The amounts available from time to time under this program may be less than $90 million due to a number of factors, including but not limited to our credit ratings, trade receivable balances, the creditworthiness of our customers and our receivables collection experience. During the three months ended March 31, 2016, the level of eligible assets available under the program was lower than $90 million primarily due to certain required reserves against our receivables. As a result, the amount available to us under the program was $72 million at March 31, 2016. Although we do not believe restrictions under this program presently materially restrict our operations, if an additional event occurs that triggers one of these restrictive provisions, we could experience a further decline in the amounts available to us under the program or termination of the program. The program expires annually in September and is renewable. The program was renewed in September 2015 for an additional year. European Accounts Receivables Securitization Program We and a group of our European subsidiaries maintain an accounts receivable securitization program with a special purpose vehicle, or SPV, two banks and issuers of commercial paper administered by these banks. The European program is structured to be a securitization of certain trade receivables that are originated by certain of our European subsidiaries. The SPV borrows funds from the banks to fund its acquisition of the receivables and provides the banks with a first priority perfected security interest in the accounts receivable. We do not have an equity interest in the SPV. We concluded the SPV is a variable interest entity because its total equity investment at risk is not sufficient to permit the SPV to finance its activities without additional subordinated financial support from the bank via loans or via the collections from accounts receivable already purchased. Additionally, we are considered the primary beneficiary of the SPV since we control the activities of the SPV, and are exposed to the risk of uncollectable receivables held by the SPV. Therefore, the SPV is consolidated in our Condensed Consolidated Financial Statements. Any activity between the participating subsidiaries and the SPV is eliminated in consolidation. Loans from the banks to the SPV will be classified as short-term borrowings on our As of March 31, 2016, the maximum purchase limit for receivable interests was €110 million, ($125 million equivalent at March 31, 2016) subject to availability limits. The terms and provisions of this program are similar to our U.S. program discussed above. As of March 31, 2016, the amount available under this program was €91 million ($103 million equivalent as of March 31, 2016). This program expires annually in February and is renewable. The program was renewed in February 2016 for an additional year. Utilization of Our Accounts Receivable Securitization Programs As of March 31, 2016, there were borrowings of $70 million outstanding under our U.S. program and borrowings of . We continue to service the trade receivables supporting the programs, and the banks are permitted to re-pledge this collateral. Total interest expense related to the use of these programs was less than $1 million for the three months ended March 31, 2016 and March 31, 2015. Under limited circumstances, the banks and the issuers of commercial paper can end purchases of receivables interests before the above expiration dates. A failure to comply with debt leverage or various other ratios related to our receivables collection experience could result in termination of the receivables programs. We were in compliance with these ratios at March 31, 2016. As of December 31, 2015, the total amount of borrowings was $67 million under our U.S. program |
Restructuring and Relocation Ac
Restructuring and Relocation Activities | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Relocation Activities | Note 9 Restructuring and Relocation Activities Consolidation of Restructuring Programs As reported in our 2015 Form 10-K, our December 2011 Integration and Optimization Program (“IOP”) is substantially complete and is not expected to significantly impact 2016. The May 2013 Earnings Quality Improvement Program (“EQIP”) and the December 2014 Fusion program will show significant activity in 2016. In the first quarter of 2016, the Board of Directors agreed to consolidate the remaining activities of all restructuring programs to create a single program to be called the “Sealed Air Restructuring Program” or the “Program.” Program metrics are as follows: Program EQIP Fusion Total Announcement Date May 2013 December 2014 Status Estimated to be completed by 12/31/2016 Estimated to be completed by 12/31/2018 Approximate positions eliminated by the program 900 1,050 1,950 Estimated Program Costs (in millions): Costs of reduction in headcount as a result of reorganization $130 $105-$110 $235-$240 Other expenses associated with the plan 50-55 110-115 160-170 Total expense $180-185 $215-225 $395-410 Capital expenditures 45 205-210 250-255 Proceeds, foreign exchange and other cash items (5) -(10) (60)-(65) (65)-(75) Total estimated net cash cost $220 $360-$370 $580-$590 Program to Date Cumulative Expense (in millions): Costs of reduction in headcount as a result of reorganization $ 130 $ 83 $ 213 Other expenses associated with the plan 48 36 84 Total Cumulative Expense $ 178 $ 119 $ 297 Capital expenditures $ 45 $ 64 $ 109 The following table details our restructuring activities as reflected in the Condensed Statement of Operations for the three months ended March 31, 2016 and 2015: Three months ended March 31 (In millions) 2016 2015 Other associated costs $ 6.1 $ 8.6 Restructuring charges — 12.7 Total Expense $ 6.1 $ 21.3 Capital Expenditures $ 19.1 $ 2.4 The restructuring accrual, spending and other activity for the three months ended March 31, 2016 and the accrual balance remaining at March 31, 2016 related to these programs were as follows (in millions): Restructuring accrual at December 31, 2015 $ 76.3 Accrual and accrual adjustments (0.2 ) Cash payments during 2016 (12.6 ) Effect of changes in foreign currency exchange rates 2.0 Restructuring accrual at March 31, 2016 $ 65.5 We expect to pay $61 million of the accrual balance remaining at March 31, 2016 within the next twelve months. This amount is included in accrued restructuring costs on the Condensed Consolidated Balance Sheet at March 31, 2016. The remaining accrual of $4 million is expected to be paid in 2017. This amount is included in other non-current liabilities on our Condensed Consolidated Balance Sheet at March 31, 2016. Fusion The most substantial component of our Restructuring Program is the Fusion Program (“Fusion” or the “Plan”), which was approved by the Company’s Board of Directors on December 18, 2014 and consists of a portfolio of restructuring projects across all of our divisions as part of our transformation of Sealed Air into a knowledge-based company, including reduction in headcount and consolidation and relocation of certain facilities and offices. Fusion includes that relocation of our global headquarters to Charlotte, North Carolina, including the headquarters for our divisions, research and development facilities, and corporate offices. By December 31, 2017, we anticipate approximately 1,300 jobs will have been relocated to Charlotte primarily from our former corporate headquarters in Elmwood Park, New Jersey; and facilities in Saddle Brook, New Jersey; Racine, Wisconsin; and, Duncan and Greenville, South Carolina. The cost of the Charlotte campus is estimated to be approximately $120 million. In January, 2015, in connection with our relocation efforts, we closed on an agreement to sell our building located in Racine, Wisconsin. The final sales price was $30 million, of which net proceeds of $24 million were received as part of the closing along with a $6 million unsecured promissory note which was received in the third quarter of 2015. We recorded a pre-tax gain on the sale of approximately $3 million in the first quarter of 2015. EQIP In May 2013, we announced the commencement of EQIP, which is an initiative to deliver meaningful cost savings and network optimization. The costs associated with this plan consist primarily of a reduction in headcount and other costs associated with divisional realignment and connected profitability improvement programs and costs and capital expenditures associated with incremental supply chain network optimization projects, including facility relocation and closures. The plan is expected to be substantially completed by the end of 2016. |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Note 10 Debt and Credit Facilities Our total debt outstanding consisted of the amounts set forth on the following table: March 31, December 31, (In millions) 2016 2015 (3) Short-term borrowings (1) $ 353.1 $ 241.9 Current portion of long-term debt 61.6 46.6 Total current debt 414.7 288.5 Term Loan A due July 2017 249.7 249.7 Term Loan A due July 2019 (2) 1,055.5 1,058.9 6.50% Senior Notes due December 2020 422.8 422.7 4.875% Senior Notes due December 2022 419.1 418.9 5.25% Senior Notes due April 2023 419.2 419.0 4.50% Senior Notes due September 2023 449.2 432.9 5.125% Senior Notes due December 2024 419.8 419.7 5.50% Senior Notes due September 2025 396.1 396.1 6.875% Senior Notes due July 2033 445.2 445.2 Other 3.4 3.7 Total long-term debt, less current portion (5) 4,280.0 4,266.8 Total debt (4)(6) $ 4,694.7 $ 4,555.3 (1) Short-term borrowings of $353 million at March 31, 2016 are comprised primarily of $70 million of borrowings outstanding under our U.S. accounts receivable securitization program, $82 million of borrowings outstanding under our European accounts receivable securitization program, $92 million outstanding under our revolving credit facility and $109 million short-term borrowing from various lines of credit. Short-term borrowings at December 31, 2015 are comprised primarily of $67 million of borrowings outstanding under our U.S. accounts receivable securitization program, $77 million of borrowings outstanding under our European accounts receivable securitization program and $98 million short-term borrowings from various lines of credit. (2) Term Loan A facility due July 2019 has required prepayments which are due in 2016. (3) As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 which resulted in $36 million of unamortized debt issuance costs being reclassified from other assets to long-term debt. See Note 2, “Recently Issued Accounting Standards” for additional information related to this adoption. (4) As of March 31, 2016, our weighted average interest rate on our short-term borrowings outstanding was 3.5% and on our long-term debt outstanding was 4.6%. As of December 31, 2015, our weighted average interest rate on our short-term borrowings outstanding was 3.4% and on our long-term debt outstanding was 4.6%. (5) Amounts are net of unamortized discounts/issuance costs of $35 million as March 31, 2016 and $36 million as of December 31, 2015. (6) Long-term debt instruments are listed in order of priority. Senior Notes In the second quarter 2015, Sealed Air issued $ 400 5.50% Senior Notes due September 15, 2025 and €400 million of 4.50% Senior Notes due September 15, 2023. The proceeds from these notes were used to repurchase the Company’s $750 million 8.375% Notes due September 2021. The aggregate repurchase price was $866 million, which included the principal amount of $750 million, a premium of $99 million and accrued interest of $17 million. We recognized a total pre-tax loss of $111 million on the which included the premiums mentioned above. Also included in the loss on debt redemption was $11 million of accelerated amortization of original non-lender fees related to the 8.375% Senior Notes. We also capitalized $8 million of fees incurred in connection with the 5.50% Senior Notes and 4.50% Senior Notes that are included as a reduction to long-term debt, less current portion on our Condensed Consolidated Balance Sheet. Lines of Credit The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including the Revolving Credit Facility discussed above, and the amounts available under our accounts receivable securitization programs. March 31, December 31, (In millions) 2016 2015 Used lines of credit (1)(2) $ 353.1 $ 241.9 Unused lines of credit 935.0 1,039.9 Total available lines of credit (3) $ 1,288.1 $ 1,281.8 (1) Includes total borrowings under the accounts receivable securitization programs, the revolving credit facility and borrowings under lines of credit available to several subsidiaries. (2) As of March 31, 2016 and December 31, 2015, there were $57 million and $56 million of cash held on deposit, respectively, as a compensating balance for certain short-term borrowings that are included in other current assets on the Condensed Consolidated Balance Sheet. (3) Of the total available lines of credit, $875 million were committed as of March 31, 2016. Covenants Each issue of our outstanding senior notes imposes limitations on our operations and those of specified subsidiaries. The Second Amended and Restated Syndicated Credit Facility (“Amended Credit Facility”) contains customary affirmative and negative covenants for credit facilities of this type, including limitations on our indebtedness, liens, investments, restricted payments, mergers and acquisitions, dispositions of assets, transactions with affiliates, amendment of documents and sale leasebacks, and a covenant specifying a maximum permitted ratio of Consolidated Net Debt to Consolidated EBITDA (as defined in the Amended Credit Facility). We were in compliance with the above financial covenants and limitations at March 31, 2016. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 11 Derivatives and Hedging Activities We report all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and establish criteria for designation and effectiveness of transactions entered into for hedging purposes. As a large global organization, we face exposure to market risks, such as fluctuations in foreign currency exchange rates and interest rates. To manage the volatility relating to these exposures, we enter into various derivative instruments from time to time under our risk management policies. We designate derivative instruments as hedges on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments offset in part or in whole corresponding changes in the fair value or cash flows of the underlying exposures being hedged. We assess the initial and ongoing effectiveness of our hedging relationships in accordance with our policy. We do not purchase, hold or sell derivative financial instruments for trading purposes. Our practice is to terminate derivative transactions if the underlying asset or liability matures or is sold or terminated, or if we determine the underlying forecasted transaction is no longer probable of occurring. We record the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Foreign Currency Forward Contracts Designated as Cash Flow Hedges The primary purpose of our cash flow hedging activities is to manage the potential changes in value associated with the amounts receivable or payable on equipment and raw material purchases that are denominated in foreign currencies in order to minimize the impact of the changes in foreign currencies. We record gains and losses on foreign currency forward contracts qualifying as cash flow hedges in other comprehensive income to the extent that these hedges are effective and until we recognize the underlying transactions in net earnings, at which time we recognize these gains and losses in cost of sales, on our Condensed Consolidated Statements of Operations. Cash flows from derivative financial instruments are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. These contracts generally have original maturities of less than 12 months. Net unrealized after-tax gains/losses related to these contracts that were included in other comprehensive income were $3.4 million loss for the three months ended March 31, 2016, respectively, and $1 million gain for the three months ended March 31, 2015. The unrealized amounts in other comprehensive income will fluctuate based on changes in the fair value of open contracts during each reporting period. We estimate that $2.5 million of net unrealized derivative gains included in accumulated other comprehensive income (AOCI) will be reclassified into earnings within the next twelve months. Foreign Currency Forward Contracts Not Designated as Hedges Our subsidiaries have foreign currency exchange exposure from buying and selling in currencies other than their functional currencies. The primary purposes of our foreign currency hedging activities are to manage the potential changes in value associated with the amounts receivable or payable on transactions denominated in foreign currencies and to minimize the impact of the changes in foreign currencies related to foreign currency-denominated interest-bearing intercompany loans and receivables and payables. The changes in fair value of these derivative contracts are recognized in other income, net, on our Condensed Consolidated Statements of Operations and are largely offset by the remeasurement of the underlying foreign currency-denominated items indicated above. Cash flows from derivative financial instruments are classified as cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows. These contracts generally have original maturities of less than 12 months. Interest Rate Swaps From time to time, we may use interest rate swaps to manage our fixed and floating interest rates on our outstanding indebtedness. At March 31, 2016, we had no outstanding interest rate swaps. Interest Rate and Currency Swaps In 2014, in connection with exercising the $100 million delayed draw under the senior secured credit facility, we entered into a series of interest rate and currency swaps in a notional amount of $100 million. These swaps convert the U.S. dollar-denominated variable rate obligation under the credit facility into a fixed Brazilian real-denominated obligation. The delayed draw and the interest rate and currency swaps are used to fund expansion and general corporate purposes of our Brazilian subsidiaries. Net Investment Hedge During the second quarter of 2015, we entered into a series of foreign currency exchange forwards totaling €270 million. These foreign currency exchange forwards hedged a portion of the net investment in a certain European subsidiary against fluctuations in foreign exchange rates and expired in June 2015. The loss of $3.5 million ($2.2 million after tax) is recorded in AOCI on our Condensed Consolidated Balance Sheet. The €400 million 4.50% notes issued in June 2015 are designated as a net investment hedge, hedging a portion of our net investment in a certain European subsidiary against fluctuations in foreign exchange rates. The change in the fair value of the debt was $3.8 million as of March 31, 2016 and is reflected in long-term debt on our Condensed Consolidated Balance Sheet. In March 2015, we entered into a series of cross-currency swaps with a combined notional amount of $425 million, hedging a portion of the net investment in a certain European subsidiary against fluctuations in foreign exchange rates. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, settlements and changes in fair values of the derivative instruments are recognized in unrealized net gains or loss on derivative instruments for net investment hedge, a component of AOCI, net of taxes, to offset the changes in the values of the net investments being hedged. Any portion of the net investment hedge that is determined to be ineffective is recorded in other income, net on the Condensed Consolidated Statements of Operations. Other Derivative Instruments We may use other derivative instruments from time to time to manage exposure to foreign exchange rates and to access to international financing transactions. These instruments can potentially limit foreign exchange exposure by swapping borrowings denominated in one currency for borrowings denominated in another currency. Fair Value of Derivative Instruments See Note 12, “Fair Value Measurements and Other Financial Instruments,” for a discussion of the inputs and valuation techniques used to determine the fair value of our outstanding derivative instruments. The following table details the fair value of our derivative instruments included on our Condensed Consolidated Balance Sheets. Cash Flow Net Investment Hedge Non-Designated Total March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Derivative Assets Foreign currency forward contracts $ 1.6 $ 3.2 $ — $ — $ 15.6 $ 25.0 $ 17.2 $ 28.2 Interest rate and currency swaps 37.3 44.0 — — — — 37.3 44.0 Total Derivative Assets (2) $ 38.9 $ 47.2 $ — $ — $ 15.6 $ 25.0 $ 54.5 $ 72.2 Derivative Liabilities Foreign currency forward contracts $ (4.6 ) $ (1.3 ) $ — $ — $ (22.3 ) $ (43.5 ) $ (26.9 ) $ (44.8 ) Cross-currency swaps — — (32.4 ) (12.0 ) — — (32.4 ) (12.0 ) Total (2) $ (4.6 ) $ (1.3 ) $ (32.4 ) $ (12.0 ) $ (22.3 ) $ (43.5 ) $ (59.3 ) $ (56.8 ) Net Derivatives (1) $ 34.3 $ 45.9 $ (32.4 ) $ (12.0 ) $ (6.7 ) $ (18.5 ) $ (4.8 ) $ 15.4 (1) Excludes €400 million of euro-denominated debt ($449 million equivalent at March 31, 2016), designated as a net investment hedge. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Assets Other Non-current March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Gross position $ 25.0 $ 36.2 $ (26.9 ) $ (44.8 ) $ 29.5 $ 36.0 $ (32.4 ) $ (12.0 ) Impact of master netting agreements (0.2 ) (24.1 ) 0.2 24.1 — — — — Net amounts recognized on the Condensed Consolidated Balance Sheet $ 24.8 $ 12.1 $ (26.7 ) $ (20.7 ) $ 29.5 $ 36.0 $ (32.4 ) $ (12.0 ) The following table details the effect of our derivative instruments on our Condensed Consolidated Statements of Operations. Amount of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, (In millions) 2016 2015 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts (1) $ 1.7 $ 0.8 Interest rate and currency swaps (2) (10.9 ) 15.0 Treasury locks (3) 0.1 0.1 Sub-total cash flow hedges (9.1 ) 15.9 Fair Value Hedges: Interest rate swaps 0.1 0.1 Derivatives not designated as hedging instruments: Foreign currency forward contracts (10.6 ) 37.9 Total $ (19.6 ) $ 53.9 (1) (2) (3) |
Fair Value Measurements and Oth
Fair Value Measurements and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Other Financial Instruments | Note 12 Fair Value Measurements and Other Financial Instruments Fair Value Measurements In determining fair value of financial instruments, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty credit risk in our assessment of fair value. We determine fair value of our financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The following table details the fair value hierarchy of our financial instruments: March 31, 2016 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 52.1 $ 44.1 $ 8.0 $ — Compensating balance deposits $ 56.7 $ 56.7 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ (9.7 ) $ — $ (9.7 ) $ — Interest rate and currency swaps $ 37.3 $ — $ 37.3 $ — Cross-currency swaps $ (32.4 ) $ — $ (32.4 ) $ — December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Cash equivalents $ 56.3 $ 48.3 $ 8.0 $ — Compensating balance deposits $ 56.5 $ 56.5 $ — $ — Derivative financial instruments net asset (liability): Foreign currency forward contracts $ (16.5 ) $ — $ (16.5 ) $ — Interest rate and currency swaps $ 44.0 $ — $ 44.0 $ — Cross-currency swaps $ (12.0 ) $ — $ (12.0 ) $ — Cash Equivalents Our cash equivalents at March 31, 2016 and December 31, 2015 consisted of commercial paper (fair value determined using Level 2 inputs) and bank time deposits (Level 1). Since these are short-term highly liquid investments with original maturities of three months or less at the date of purchase, they present negligible risk of changes in fair value due to changes in interest rates. Compensating Balance Deposits We have compensating balance deposits related to certain short-term borrowings. These represent bank certificates of deposits with maturities of greater than 3 months. Derivative Financial Instruments Our foreign currency forward contracts, foreign currency options, euro-denominated debt, interest rate and currency swaps and cross-currency swaps are recorded at fair value on our Condensed Consolidated Balance Sheets using a discounted cash flow analysis that incorporates observable market inputs. These market inputs include foreign currency spot and forward rates, and various interest rate curves, and are obtained from pricing data quoted by various banks, third party sources and foreign currency dealers involving identical or comparable instruments (Level 2). Counterparties to these foreign currency forward contracts are rated at least A- by Standard & Poor’s and Baa2 by Moody’s. Credit ratings on some of our counterparties may change during the term of our financial instruments. We closely monitor our counterparties’ credit ratings and, if necessary, will make any appropriate changes to our financial instruments. The fair value generally reflects the estimated amounts that we would receive or pay to terminate the contracts at the reporting date. Other Financial Instruments The following financial instruments are recorded at fair value or at amounts that approximate fair value: (1) trade receivables, net, (2) certain other current assets, (3) accounts payable and (4) other current liabilities. The carrying amounts reported on our Condensed Consolidated Balance Sheets for the above financial instruments closely approximate their fair value due to the short-term nature of these assets and liabilities. Other liabilities that are recorded at carrying value on our Condensed Consolidated Balance Sheets include our senior notes. We utilize a market approach to calculate the fair value of our senior notes. Due to their limited investor base and the face value of some of our senior notes, they may not be actively traded on the date we calculate their fair value. Therefore, we may utilize prices and other relevant information generated by market transactions involving similar securities, reflecting U.S. Treasury yields to calculate the yield to maturity and the price on some of our senior notes. These inputs are provided by an independent third party and are considered to be Level 2 inputs. We derive our fair value estimates of our various other debt instruments by evaluating the nature and terms of each instrument, considering prevailing economic and market conditions, and examining the cost of similar debt offered at the balance sheet date. We also incorporated our credit default swap rates and currency specific swap rates in the valuation of each debt instrument, as applicable. These estimates are subjective and involve uncertainties and matters of significant judgment, and therefore we cannot determine them with precision. Changes in assumptions could significantly affect our estimates. The table below shows the carrying amounts and estimated fair values of our total debt: March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair (In millions) Amount Value Amount (2) Value Term Loan A Facility due July 2017 $ 249.7 $ 249.7 $ 249.7 $ 249.7 Term Loan A Facility due July 2019 (1) 1,115.3 1,115.3 1,103.8 1,103.8 6.50% Senior Notes due December 2020 422.8 476.9 422.7 473.7 4.875% Senior Notes due December 2022 419.1 441.9 418.9 426.5 5.25% Senior Notes due April 2023 419.2 448.6 419.0 436.2 4.50% Senior Notes due September 2023 (1) 449.2 476.6 432.9 452.7 5.125% Senior Notes due December 2024 419.8 441.2 419.7 427.6 5.50% Senior Notes due September 2025 396.1 419.3 396.1 410.2 6.875% Senior Notes due July 2033 445.2 473.4 445.2 462.7 Other foreign loans (1) 182.9 183.1 165.7 165.8 Other domestic loans 175.4 175.6 81.6 81.9 Total debt $ 4,694.7 $ 4,901.6 $ 4,555.3 $ 4,690.8 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 which resulted in $36 million of unamortized debt issuance costs being reclassified from other assets to long-term debt. See Note 2, “Recently Issued Accounting Standards” for additional information related to this adoption. As of March 31, 2016, we did not have any non–financial assets and liabilities, aside from contingent consideration liabilities related to acquisitions and certain equity compensation, that were carried at fair value on a recurring basis in the Condensed Consolidated Financial Statements or for which a fair value measurement was required. Included among our non-financial assets and liabilities that are not required to be measured at fair value on a recurring basis are inventories, net property and equipment, goodwill, intangible assets and asset retirement obligations. Refer to Note 16 “Stockholders’ Equity” for share based compensation and below for contingent consideration. Contingent Consideration As part of the Intellibot Credit and Market Risk Financial instruments, including derivatives, expose us to counterparty credit risk for nonperformance and to market risk related to changes in interest or currency exchange rates. We manage our exposure to counterparty credit risk through specific minimum credit standards, establishing credit limits, diversification of counterparties, and procedures to monitor concentrations of credit risk. We do not expect any of our counterparties in derivative transactions to fail to perform as it is our policy to have counterparties to these contracts that are rated at least BBB- or higher by Standard & Poor’s and Baa3 or higher by Moody’s. Nevertheless, there is a risk that our exposure to losses arising out of derivative contracts could be material if the counterparties to these agreements fail to perform their obligations. We will replace counterparties if a credit downgrade is deemed to increase our risk to unacceptable levels. We regularly monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest and currency exchange rates and restrict the use of derivative financial instruments to hedging activities. We do not use derivative financial instruments for trading or other speculative purposes and do not use leveraged derivative financial instruments. We continually monitor the creditworthiness of our diverse base of customers to which we grant credit terms in the normal course of business and generally do not require collateral. We consider the concentrations of credit risk associated with our trade accounts receivable to be commercially reasonable and believe that such concentrations do not leave us vulnerable to significant risks of near-term severe adverse impacts. The terms and conditions of our credit sales are designed to mitigate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers. |
Defined Benefit Pension Plans a
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans | Note 13 Defined Benefit Pension Plans and Other Post-Employment Benefit Plans Effective December 31, 2015, the Company changed the approach used to calculate the service and interest components of net periodic benefit cost for certain of its International and U.S. benefit plans to provide a more precise measurement of service and interest costs. The change was applied to plans in countries where the benefit obligation was approximately $50 million or higher, and for which a yield curve is used to measure the benefit obligation. Historically, the Company calculated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, the Company has elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. Based on current economic conditions, the Company estimates that the service cost and interest cost for these benefit plans will be reduced by approximately $4 million in 2016. The Company has accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly has accounted for it prospectively. The following table shows the components of our net periodic benefit cost (income) for our defined benefit pension plans for the three months ended March 31, 2016 and 2015: Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 (In millions) U.S. International Total U.S. International Total Components of net periodic benefit cost or (income): Service cost $ 0.1 $ 2.5 $ 2.6 $ 0.3 $ 2.5 $ 2.8 Interest cost 1.9 6.4 8.3 2.2 7.6 9.8 Expected return on plan assets (2.5 ) (9.1 ) (11.6 ) (2.9 ) (10.3 ) (13.2 ) Amortization of net actuarial loss 0.5 2.3 2.8 0.5 2.4 2.9 Net periodic benefit cost (income) — 2.1 2.1 0.1 2.2 2.3 Cost (income) of settlement/curtailment — 0.1 0.1 — 0.3 0.3 Total benefit cost (income) $ — $ 2.2 $ 2.2 $ 0.1 $ 2.5 $ 2.6 The following table shows the components of our net periodic benefit cost for our other employee benefit plans for the three month period ended March 31, 2016 and 2015: Three Months Ended March 31, (In millions) 2016 2015 Components of net periodic benefit cost or (income): Service cost $ — $ 0.3 Interest cost 0.5 0.8 Amortization of net prior service cost (0.4 ) (0.2 ) Amortization of net actuarial loss — 0.1 Net periodic benefit cost $ 0.1 $ 1.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 Income Taxes Effective Income Tax Rate and Income Tax Provision Our effective income tax rate for the three months ended March 31, 2016 was 18.2%. Our effective income tax rate benefited from a favorable earnings mix with earnings in jurisdictions with lower tax rates. The Company also recorded net discrete benefits of $8 million, including $3 million related to repatriation strategies and $4 million for releases of certain reserves due to the expiration of the statute of limitations and settlements with taxing authorities. The reserves are primarily related to positions recorded at the time of the Diversey acquisition. Our effective income tax rate for the three months ended March 31, 2015 was 25.9%. Our effective income tax rate benefited from a favorable earnings mix with earnings in jurisdictions with low tax rates. Unrecognized Tax Benefits During the three months ended March 31, 2016, we did not make a material change to our unrecognized tax benefits other than those disclosed above. We have not changed our policy with regard to the reporting of penalties and interest related to unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 Commitments and Contingencies Cryovac Transaction Commitments and Contingencies Refer to Part II, Item 8, Note 17, “Commitments and Contingencies” to our audited Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 for a description of the Settlement agreement (as defined therein). Environmental Matters We are subject to loss contingencies resulting from environmental laws and regulations, and we accrue for anticipated costs associated with investigatory and remediation efforts when an assessment has indicated that a loss is probable and can be reasonably estimated. These accruals are not reduced by potential insurance recoveries, if any. We do not believe that it is reasonably possible that our liability in excess of the amounts that we have accrued for environmental matters will be material to our Condensed Consolidated Balance Sheet or Statement of Operations. Environmental liabilities are reassessed whenever circumstances become better defined or remediation efforts and their costs can be better estimated. We evaluate these liabilities periodically based on available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the methods and extent of remediation and the apportionment of costs among potentially responsible parties. As some of these issues are decided (the outcomes of which are subject to uncertainties) or new sites are assessed and costs can be reasonably estimated, we adjust the recorded accruals, as necessary. We believe that these exposures are not material to our Condensed Consolidated Balance Sheet or Statement of Operations. We believe that we have adequately reserved for all probable and estimable environmental exposures. Guarantees and Indemnification Obligations We are a party to many contracts containing guarantees and indemnification obligations. These contracts primarily consist of: · product warranties with respect to certain products sold to customers in the ordinary course of business. These warranties typically provide that products will conform to specifications. We generally do not establish a liability for product warranty based on a percentage of sales or other formula. We accrue a warranty liability on a transaction-specific basis depending on the individual facts and circumstances related to each sale. Both the liability and annual expense related to product warranties are immaterial to our Condensed Consolidated Balance Sheet or Statement of Operations · licenses of intellectual property by us to third parties in which we have agreed to indemnify the licensee against third party infringement claims. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Note 16 Stockholders’ Equity Repurchase of Common Stock On July 9, 2015, our Board of Directors authorized a repurchase program of up to $1.5 billion of the Company’s common stock, reflecting its commitment to return value to shareholders. The repurchase program has no expiration date and replaced the previously authorized program, which was terminated. Refer to Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” for further information. This program replaced our prior share repurchase program, approved by our Board of Directors in August 2007 authorizing us to repurchase in the aggregate up to million shares of our outstanding common stock. During the three months ended March 31, 2016 and March 31, 2015, we repurchased 699,345 and 1,014,147 shares, for approximately $32 million and $44 million, respectively. These repurchases were made under privately negotiated or open market transactions in accordance with Rule 10b5-1 of the Securities Act of 1933, as amended, and pursuant to the share repurchase program previously approved by our Board of Directors. Additionally, during the three months ended March 31, 2015, the Company entered into an accelerated share repurchase agreement with a third-party financial institution to repurchase $25 million of the Company’s common stock. Upon completion of the transaction, the Company received a total of 546,574 shares with an average price of $45.74 per share. Dividends On February 17, 2016, our Board of Directors declared a quarterly cash dividend of $0.13 per common share, or $26 million, which was paid on March 18, 2016 to stockholders of record at the close of business day March 4, 2016. On March 21, 2016, our Board of Directors declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on June 17, 2016 to stockholders of record at the close of business on June 3, 2016. The dividend payment discussed above is recorded as a reduction to cash and cash equivalents and retained earnings on our Condensed Consolidated Balance Sheets. Our credit facility and our notes contain covenants that restrict our ability to declare or pay dividends. However, we do not believe these covenants are likely to materially limit the future payment of quarterly cash dividends on our common stock. From time to time, we may consider other means of returning value to our stockholders based on our Condensed Consolidated Financial Condition and Results of Operations. There is no guarantee that our Board of Directors will declare any further dividends. Share-based Incentive Compensation We record share-based incentive compensation expense in selling, general and administrative expenses and cost of sales on our Condensed Consolidated Statements of Operations with a corresponding credit to additional paid-in capital within stockholders’ equity based on the fair value of the share-based incentive compensation awards at the date of grant. We recognize an expense or credit reflecting the straight-line recognition, net of estimated forfeitures, of the expected cost of the program. For the various PSU awards programs described below, the cumulative amount accrued to date is adjusted up or down to the extent the expected performance against the targets has improved or worsened. The table below shows our total share-based incentive compensation expense: Three Months Ended March 31, (In millions) 2016 2015 Total share-based incentive compensation expense (1) $ 14.4 $ 18.3 (1) The amounts included above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock or the expense or income related to SARs and certain cash-based awards. See Stock Appreciation Rights below for further details of SARs. At March 31, 2016 and March 31, 2015, our other cash-based awards were not material to our Condensed Consolidated Balance Sheet or Statement of Operations President and Chief Executive Officer (CEO) 2016 Inducement Awards On January 15, 2016, Mr. Peribere, entered into a letter agreement (the “Amendment Letter”) amending the terms of his employment letter with the Company dated August 28, 2012 to extend the term of Mr. Peribere’s employment and make certain compensation adjustments. The Amendment Letter also provides Mr. Peribere with two additional awards of restricted stock units under the Company’s 2014 Omnibus Incentive Plan (the “Inducement Awards”), one that is time-vesting and the other that is performance-vesting. The time-vesting Inducement Award, for 75,000 shares, requires Mr. Peribere to remain in service with the Company through December 31, 2017. The grant date fair value for this award was $39.95. The performance-vesting Inducement Award, also for 75,000 shares, in addition to the time-vesting requirement noted above, requires that either (i) the Company’s cumulative total stockholder return (“TSR”) for 2016-2017 be in the top 25% of its peers (using the same peers and methodology under the Company’s performance stock unit (PSU) awards) and the Company’s stock price as of December 31, 2017 equals at least $43.70/share, or (ii) the Company’s stock price as of December 31, 2017 equals at least $55/share. The Amendment Letter provides that the stock price as of December 31, 2017 for this purpose will be determined using a 30-day arithmetic mean of closing prices. Since the award includes a market condition, compensation expense will be recognized regardless of whether the market condition is satisfied provided that the requisite service has been provided. The grant date fair value for this award was determined using a Monte Carlo Simulation model that incorporates predictive modeling techniques using Geometric Brownian Motion and Crystal Ball’s random number generation. Other assumptions include the expected volatility of all companies included in the total shareholder return, valuation modeling of vesting payoff determination featuring both performance goals as noted above, the historical share price returns analysis of all companies included in the total shareholder return and assumes dividends are reinvested. The expected volatility was based on the historical volatility for a period of time that approximates the duration between the valuation date and the end of the performance period. The risk-free interest rate is based on the Zero-Coupon Treasury STRIP yield curve matching the term from the valuation date to the end of the performance period Compensation expense for the performance-vesting Inducement Award is a fixed amount determined at the grant date fair value and is recognized 100% over the two-year award performance period regardless of whether shares are awarded at the end of the award performance period. The assumptions used to calculate the grant date fair value of the performance-vesting Inducement Award are shown in the following table: 2016 Performance-vesting Inducement Award Fair value on grant date $ 12.55 Expected price volatility 24.6 % Risk-free interest rate 0.92 % The awards are described in further detail in Mr. Peribere’s Amendment Letter filed with the SEC as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on January 20, 2016. Performance Share Unit (“PSU”) Awards During the first 90 days of each year, the Organization and Compensation (“O&C”) Committee of our Board of Directors approves PSU awards for our executive officers and other selected key executives, which include for each officer or executive a target number of shares of common stock and performance goals and measures that will determine the percentage of the target award that is earned following the end of the three-year performance period. Following the end of the performance period, in addition to shares, participants will also receive a cash payment in the amount of the dividends (without interest) that would have been paid during the performance period on the number of shares that they have earned. Each PSU is subject to forfeiture if the recipient terminates employment with the Company prior to the end of the three-year award performance period for any reason other than death, disability or retirement. In the event of death, disability or retirement, a participant will receive a prorated payment based on such participant’s number of full months of service during the award performance period, further adjusted based on the achievement of the performance goals during the award performance period. All of these PSUs are classified as equity in the Condensed Consolidated Balance Sheet. 2016 Three-year PSU Awards In February 2016, O&C Committee approved awards with a three-year performance period beginning January 1, 2016 to December 31, 2018 for certain executives. The Compensation Committee established principal performance goals, which are (i) total shareholder return (TSR) weighted at 50%, and (ii) 2018 consolidated adjusted EBITDA margin weighted at 50%. The total number of shares to be issued for these awards can range from zero to 200% of the target number of shares. The number of PSUs granted and the grant date fair value of the PSUs are shown in the following table: TSR Adjusted EBITDA Number of units granted 124,755 165,391 Fair value on grant date $ 57.14 $ 43.10 The assumptions used to calculate the grant date fair value of the PSUs based on TSR are shown in the following table: TSR of 2016 PSU Award Expected price volatility 26.5 % Risk-free interest rate 0.98 % 2013 Three-year PSU Awards In February 2016, the O&C Committee reviewed the performance results for the 2013-2015 PSUs. Performance goals for these PSUs were based on Adjusted EBITDA margins and relative TSR. The overall performance for 2013-2015 PSUs was above maximum levels and as a result these awards paid out at 200% of target or 1,074,017 units. Stock Appreciation Rights (“SARs”) In connection with the acquisition of Diversey, Sealed Air exchanged Diversey’s cash-settled stock appreciation rights and stock options that were unvested as of May 31, 2011 and unexercised at October 3, 2011 into cash-settled stock appreciation rights based on Sealed Air common stock. The remaining unexercised SARs were fully vested as of March 31, 2015. We continue to record expense related to these SARs until the last expiration date of these awards (February 2020). The amount of related future expense will fluctuate based on exercise and forfeiture activity and changes in the assumptions used in the Black-Scholes We recognized SARs expense of less than $1 million and $3 million in the three months ended March 31, 2016 and 2015, respectively. Cash payments due to the exercise of these SARs were less than $1 million and $4 million in the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, the remaining liability for these SARs was $4 million and is included in other current liabilities on our Condensed Consolidated Balance Sheet. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17 Accumulated Other Comprehensive Income (Loss) The following table provides details of comprehensive income (loss) for the three months ended March 31, 2016 and 2015: (In millions) Unrecognized Pension Cumulative Translation Adjustment Unrecognized Gains (Losses) on Derivative Instruments for net investment hedge Unrecognized Gains (Losses) on Derivative Instruments for cash flow hedge Accumulated Other Comprehensive Income (Loss), Net of Taxes Balance at December 31, 2014 $ (250.1 ) $ (369.9 ) $ — $ 6.2 $ (613.8 ) Other comprehensive income (loss) before reclassifications (0.4 ) (58.1 ) (8.0 ) 13.4 (53.1 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 2.4 — — (10.8 ) (8.4 ) Net current period other comprehensive income (loss) 2.0 (58.1 ) (8.0 ) 2.6 (61.5 ) Balance at March 31, 2015 (1)(2) $ (248.1 ) $ (428.0 ) $ (8.0 ) $ 8.8 $ (675.3 ) Balance at December 31, 2015 $ (266.0 ) $ (564.0 ) $ 1.7 $ 8.3 $ (820.0 ) Other comprehensive income (loss) before reclassifications (0.2 ) (9.3 ) (22.6 ) (9.6 ) (41.7 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 1.9 — — 5.5 7.4 Net current period other comprehensive income (loss) 1.7 (9.3 ) (22.6 ) (4.1 ) (34.3 ) Balance at March 31, 2016 (2) $ (264.3 ) $ (573.3 ) $ (20.9 ) $ 4.2 $ (854.3 ) (1) For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified within Accumulated Other Comprehensive Loss (“AOCI”) on the Consolidated Balance Sheet. Refer Note 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the heading “Reclassifications and Revisions” for further discussion of the revisions. (2) The ending balance in AOCI includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $(19.4) million as of March 31, 2016 and $68.7 million as of March 31, 2015. The following table provides detail of amounts reclassified from accumulated other comprehensive income: Three Months Ended March 31, (In millions) 2016 (1) 2015 (1) Location of Amount Reclassified from AOCI Defined benefit pension plans and other post- employment benefits: Prior service costs $ 0.4 $ 0.2 (2) Actuarial losses (2.8 ) (3.0 ) (2) Settlement/curtailment loss (0.1 ) (0.3 ) (2) Total pre-tax amount (2.5 ) (3.1 ) Tax (expense) benefit 0.6 0.7 Net of tax (1.9 ) (2.4 ) Net gains (losses) on cash flow hedging derivatives: Foreign currency forward contracts 1.7 0.8 (3) Interest rate and currency swaps (10.8 ) 15.1 (3) Treasury locks 0.1 0.1 (3) Total pre-tax amount (9.0 ) 16.0 Tax (expense) benefit 3.5 (5.2 ) Net of tax (5.5 ) 10.8 Total reclassifications for the period $ (7.4 ) $ 8.4 (1) Amounts in parenthesis indicate debits to earnings (loss). (2) These accumulated other comprehensive components are included in the computation of net periodic benefit costs within cost of sales and selling, general, and administrative expenses on the Condensed Consolidated Statement of Operations. (3) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 11, “Derivatives and Hedging Activities” for additional details. |
Other Income (Expense), net
Other Income (Expense), net | 3 Months Ended |
Mar. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense), net | Note 18 Other Income (Expense), net The following table provides details of other income (expense), net: Three Months Ended March 31, (In millions) 2016 2015 Interest and dividend income $ 3.6 $ 3.2 Net foreign exchange transaction gains (losses) (1.5 ) (0.5 ) Bank fee expense (1.4 ) (1.1 ) Net gain/(loss) on disposals of business and property and equipment (2.7 ) 3.3 Other, net (0.9 ) 0.5 Other income (expense), net $ (2.9 ) $ 5.4 |
Net Earnings Per Common Share
Net Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Common Share | Note 19 Net Earnings Per Common Share The following table shows the calculation of basic and diluted net earnings per common share under the two-class method: Three Months Ended March 31, (In millions, except per share amounts) 2016 2015 Basic Net Earnings Per Common Share: Numerator Net earnings available to common stockholders $ 91.9 $ 97.2 Distributed and allocated undistributed net loss to non- vested restricted stockholders (0.6 ) (0.6 ) Distributed and allocated undistributed net earnings to common stockholders 91.3 96.6 Distributed net earnings - dividends paid to common stockholders (25.4 ) (27.3 ) Allocation of undistributed net earnings to common stockholders $ 65.9 $ 69.3 Denominator Weighted average number of common shares outstanding - basic 195.2 208.9 Basic net earnings per common share: Distributed net earnings to common stockholders $ 0.13 $ 0.13 Allocated undistributed net earnings to common stockholders 0.34 0.33 Basic net earnings per common share: $ 0.47 $ 0.46 Diluted Net Earnings Per Common Share: Numerator Distributed and allocated undistributed net earnings to common stockholders $ 91.3 $ 96.6 Add: Allocated undistributed net earnings to unvested restricted stockholders 0.4 0.5 Less: Undistributed net earnings (loss) reallocated to non- vested restricted stockholders (0.4 ) (0.5 ) Net earnings available to common stockholders - diluted $ 91.3 $ 96.6 Denominator Weighted average number of common shares outstanding - basic 195.2 208.9 Effect of contingently issuable shares 0.5 1.2 Effect of unvested restricted stock units 0.7 0.8 Weighted average number of common shares outstanding - diluted under two-class 196.4 210.9 Effect of unvested restricted stock - participating security 0.6 0.8 Weighted average number of common shares outstanding - diluted under treasury stock 197.0 211.7 Diluted net earnings per common share $ 0.46 $ 0.46 |
Organization and Basis of Pre27
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our Condensed Consolidated Financial Statements include all of the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In management’s opinion, all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of our Condensed Consolidated Balance Sheets as of March 31, 2016 and our Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 and 2015 have been made. The results set forth in our Condensed Consolidated Statement of Operations for the three months ended March 31, 2016 and in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. All amounts are in millions, except per share amounts, and approximate due to rounding. Some prior period amounts have been reclassified to conform to the current year presentation. These reclassifications, individually and in the aggregate, did not have a material impact on our condensed consolidated financial condition, results of operations or cash flows. Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. We are responsible for the unaudited Condensed Consolidated Financial Statements and notes included in this report. As these are condensed financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 as filed with the SEC on February 22, 2016 (“2015 Form 10-K”) and with the information contained in other publicly-available filings with the SEC. As of April 15, 2015, we realigned our regional organization. There was no change to our previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Cash Flows due to our change in regional organization. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further details on the realignment. |
Reclassifications and Revisions | Reclassifications and Revisions For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified on the Condensed Consolidated Statement of Cash Flows. The reclassification of these items in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2015 resulted in an increase in cash provided by operating activities of $6.1 million, an increase to cash provided by investing activities of $32.0 million, and a decrease of $38.1 million due to the effect of foreign currency exchange rate changes on cash. Additionally, for the three months ended March 31, 2015, certain amounts related to compensating balance arrangements were misclassified in the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Cash Flows. The revision of these items resulted in a decrease of $50.1 million in cash and an increase in other current assets ($23.9 million) and other non-current assets ($26.2 million) related to cash deposits held in compensating balance arrangements for certain short-term borrowing agreements on the Condensed Consolidated Balance Sheet. The revision of these items on the Condensed Consolidated Statement of Cash Flows resulted in an increase to cash provided by financing activities of $14.2 million. For the three months ended March 31, 2015, foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income (Loss) in deferred pension items and unrealized losses on cash flow hedge derivative instruments. The reclassification of these items in the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2015 resulted in a decrease in recognition of deferred pension items of $15.3 million, an increase in unrealized losses on derivative instruments for cash flow hedge of $0.6 million, and an increase in the foreign currency translation adjustments of $14.7 million. These classification adjustments did not result in a change to total stockholder’s equity. |
Impact of Inflation and Currency Fluctuation | Impact of Inflation and Currency Fluctuation Venezuela Economic and political events in Venezuela have continued to expose us to heightened levels of foreign currency exchange risk. Accordingly, Venezuela has been designated a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the bolivar fuerte as the functional currency for our subsidiaries in Venezuela. All bolivar-denominated monetary assets and liabilities are re-measured into U.S. dollars using the current exchange rate available to us, and any changes in the exchange rate are reflected in foreign currency exchange gains and losses related to our Venezuelan subsidiaries on the Condensed Consolidated Statements of Operations. 2015 Activity In February 2015, the Venezuelan government announced a new foreign exchange platform called the Marginal Currency System or SIMADI. The SIMADI basically replaced the SICAD 2 rate. When this market opened on February 12, 2015 the SIMADI rate was 170.0390 and then at March 31, 2015 it was 192.9537. The SICAD 1 and the SICAD 2 were merged into the SICAD. The opening rate was 12 for the SICAD. In addition, the CENCOEX will continue and provide preferential treatment for certain import operations such as food and medicines. Since these changes were announced by the Venezuelan government, the new SIMADI market has had very little activity and companies have not been able to access this market to obtain U.S. dollars. In addition, the SICAD rate which is established via auctions has had no auctions held since October 2014. However, in June 2015 an auction was held for the automotive parts and school supplies industries. Therefore, in 2015 there were three legal mechanisms to exchange bolivars for US dollars: · CENCOEX at the official rate at 6.3; · SICAD auction process at the awarded exchange rate (opening rate at 12); and · SIMADI at the negotiated rate (rate of 192.9537 at March 31, 2015). During the three months ended March 31, 2015, we evaluated which legal mechanisms were available to each Venezuelan subsidiary to access U.S. dollars and also estimated the excess cash position over the next 18 months. We concluded that as of March 31, 2015 the excess cash position for our Venezuelan subsidiaries would be remeasured at the SIMADI rate, which was 192.9537 at March 31, 2015, since the SICAD 2 rate which was 49.9883 at December 31, 2014 (and used for the December 31, 2014 remeasurement) no longer existed at March 31, 2015. For the remaining Bolívar cash balance and all other Bolívar denominated monetary assets and liabilities, the Company determined that it would continue to remeasure these items at the CENCOEX official rate of 6.3. As a result of this evaluation, the Company reported a remeasurement net gain of During the remainder of 2015, we continued to evaluate which legal mechanisms were available to our Venezuelan subsidiaries to access U.S. dollars. Starting June 30, 2015 through to December 31, 2015, we concluded that we would use the SIMADI rate to remeasure our bolivar denominated monetary assets and liabilities since it was our only legally available option and at that time, our intent on a go-forward basis to utilize this market to settle any future transactions based on the then current facts and circumstances. The SIMADI rate as of December 31, 2015 was 198.6986. During 2015, the Company did not receive U.S. dollars via the CENCOEX official rate of 6.3. We expected that we would only have limited access to the CENCOEX market to settle certain past transactions. However, if the option did become available to us to use the CENCOEX in the future, the Company would consider this further. In addition, there were no SICAD auctions for the food or chemical industries as of December 31, 2015. During 2015, we were only able to access the SIMADI market and only received minimal amounts of U.S. dollars. 2016 Activity On February 17, 2016, the Venezuelan government made further changes to the exchange rates including a further devaluation and on March 9, 2016 published in Exchange Agreement No. 35 further rules governing foreign exchange transactions which were effective March 10, 2016. This includes the following key changes: · The preferential rate for essential goods and services was changed from 6.3 to 10 bolivars per U.S. dollars and is no longer called CENCOEX but is now DIPRO; · The SICAD rate was eliminated which reduced the number of legal mechanisms from three down to only two; and · Eliminated the SIMADI rate which was replaced by the DICOM rate which will be allowed to float freely beginning at a rate of approximately 203 bolivars to U.S. dollar. At March 31, 2016, we evaluated which legal mechanisms were available to our Venezuelan subsidiaries to access U.S. dollars. As noted above, the SIMADI rate was replaced with the DICOM rate. We concluded that we will use the DICOM rate to remeasure our bolivar denominated monetary assets and liabilities since it is our only legally available option and our intent on a go-forward basis to utilize this market to settle any future transactions based on the current facts and circumstances. The DICOM rate as of March 31, 2016 was 272.9123. During the first quarter of 2016, we were only able to access the SIMADI market (during the period the market was available) and only received minimal amounts of U.S. dollars. We did not receive any U.S. dollars via the CENCOEX (at an official rate of 6.3) or the DIPRO (at an official rate of 10.0). We expect that we will only have limited access to the DIPRO market to settle certain past transactions. However, if the option becomes available to us to use the DIPRO in the future, the Company will consider this further. For any U.S. dollar denominated monetary asset or liability, such amounts do not get remeasured at month-end since it is already an asset or liability denominated in U.S. dollars. As a result of this evaluation, the Company reported a remeasurement loss of $1.7 million for the three months ended March 31, 2016. We will continue to evaluate each reporting period the appropriate exchange rate to remeasure our financial statements based on the facts and circumstances at that time. For the three months ended March 31, 2016, less than 1% of our consolidated net sales and operating income were derived from our businesses in Venezuela. As of March 31, 2016, we had net assets of $4 million in Venezuela, which included cash and cash equivalents of $1 million. Also, as of March 31, 2016, our Venezuelan subsidiaries had a negative cumulative translation adjustment balance of $46 million. The Company is currently evaluating options regarding the future operations of its Venezuelan subsidiaries. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In November 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2015-17 Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). This ASU will simplify the presentation of deferred tax assets and liabilities by requiring companies to classify all deferred tax as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 31, 2016 and interim periods within those annual periods. However, as early adoption is available, we have adopted this standard as of December 31, 2015 with retrospective application. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments amounts are determined. The ASU also requires that in the same period, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and will be applied prospectively for adjustments to provisional amounts that occur after that date. The impact of ASU 2015-16 will depend on any future events whereby we have any business combinations and any adjustments to the provisional amounts identified during the measurement period are recorded. In August 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (“ASU 2015-12”). This ASU designates contract value as the only required measure for fully benefit-responsive investment contracts; simplifies the investment disclosure requirements under Accounting Standards Codification (“ASC”) topic 820 for fair value, and topics 960, 962 and 965 for employee benefit plans; and provides a similar measurement date practical expedient for employee benefit plans. The amendments in ASU 2015-12 were effective as of January 1, 2016. We do not expect ASU 2015-12 to have a material impact on our financial statements. In April 2015, the FASB issued ASU 2015-03 Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This ASU will simplify the presentation of debt issuance costs. It will require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 Emerging Issues Task Forces (“EITF”) Meeting (SEC Update) (“ASU 2015-15”). This ASU clarifies that as line of credit arrangements were not specifically discussed in ASU 2015-03, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 should be adopted concurrent with the adoption of ASU 2015-03. The amendments in ASU 2015-03 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of January 1, 2016 with retroactive application. Adoption of ASU 2015-03 and ASU 2015-15 resulted in a decrease in other assets of $35.9 million and a decrease in long-term debt of $35.9 million as of December 31, 2015 on the Condensed Consolidated Balance Sheet. In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). This ASU will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. It provides guidance about whether a cloud computing arrangement includes a software license. The amendments in ASU 2015-05 have been adopted prospectively. The adoption of ASU 2015-05 does not have a material impact on the financial statements. Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early adoption is permitted. We are currently in the process of evaluating this new standard update. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), (“ASU 2016-02”). This ASU requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years ending after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. We are currently in the process of evaluating this new standard update. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU requires equity investments except those under the equity method of accounting to be measured at fair value with the changes in fair value recognized in net income. The amendment simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, it also requires enhanced disclosures about investments. The amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application for certain provisions is allowed but early adoption of the amendments is not permitted. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are currently in the process of evaluating this new standard update. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), which applies to inventory valued at first-in, first-out (FIFO) or average cost. ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. We are currently in the process of evaluating this new standard update. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). Previous revenue recognition guidance in U.S. GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principal, five steps are required to be applied. In addition, ASU 2014-09 expands and enhances disclosure requirements which require disclosing sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This includes both qualitative and quantitative information. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” (“ASU 2015-14”). The amendments in ASU 2015-14 delay the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017 and allow early adoption as of the original public entity effective date. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), (“ASU 2016-08”). This ASU clarifies the implementation guidance on principal versus agent considerations. The updated guidance improves the understandability of determining whether an entity is a principal or agent, the nature of the good or service, and involvement of other parties in a sale. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) (“ASU 2016-10”). ASU 2016-10 clarifies two aspects of Topic 606: identifying performance obligation and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in ASU 2016-08 and ASU 2016-10 are effective in conjunction with ASU 2015-14. We are currently in the process of evaluating this new standard update. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Net Sales and Adjusted EBITDA of Reportable Segments | The following tables show Net Sales and Adjusted EBITDA by our segment reporting structure: Three Months Ended March 31, (In millions) 2016 2015 Net Sales: Food Care $ 764.7 $ 879.8 As a % of Total Company net sales 48.1 % 50.4 % Diversey Care 441.4 467.9 As a % of Total Company net sales 27.8 % 26.8 % Product Care (1) 367.2 379.9 As a % of Total Company net sales 23.1 % 21.8 % Total Reportable Segments Net Sales 1,573.3 1,727.6 Other (1) 17.3 18.8 Total Company Net Sales $ 1,590.6 $ 1,746.4 Three Months Ended March 31, (In millions) 2016 2015 Adjusted EBITDA: Food Care $ 147.8 $ 190.5 Adjusted EBITDA Margin 19.3 % 21.7 % Diversey Care 36.3 41.1 Adjusted EBITDA Margin 8.2 % 8.8 % Product Care (1) 77.1 76.4 Adjusted EBITDA Margin 21.0 % 20.1 % Total Reportable Segments Adjusted EBITDA 261.2 308.0 Other (1) (18.1 ) (23.8 ) Non-U.S. GAAP Total Company Adjusted EBITDA $ 243.1 $ 284.2 Adjusted EBITDA Margin 15.3 % 16.3 % (1) As of January 1, 2016, our Kevothermal business was moved from Other to our Product Care Segment. This resulted in a reclassification of $2.8 million of net sales and $0.8 million of adjusted EBITDA for the three months ended March 31, 2015. |
Reconciliation of Total Company Adjusted EBITDA to Net Earnings | The following table shows a reconciliation of Total Company Adjusted EBITDA to Net earnings available to common stockholders: Three Months Ended March 31, (In millions) 2016 2015 Total Company Adjusted EBITDA $ 243.1 $ 284.2 Depreciation and amortization (1) (63.5 ) (73.1 ) Special items: Accelerated depreciation of non-strategic assets related to restructuring programs — 0.6 Restructuring and other charges (2) — (12.7 ) Other restructuring associated costs included in cost of sales and selling, general and administrative expenses (6.1 ) (8.6 ) Gain from sale of building in connection with relocation — 3.5 SARs (0.3 ) (2.9 ) Foreign currency exchange (loss) gains related to Venezuelan subsidiaries (1.7 ) 0.8 Loss from sale of European food trays business (1.6 ) — Other special items (2.9 ) (2.0 ) Interest expense (54.7 ) (58.5 ) Income tax provision 20.4 34.1 Net earnings available to common stockholders $ 91.9 $ 97.2 (1) Depreciation and amortization by segment is as follows: Three Months Ended March 31, (In millions) 2016 2015 Food Care $ 25.7 $ 28.5 Diversey Care 23.0 26.1 Product Care 9.6 10.1 Total reportable segments 58.3 64.7 Other 5.2 8.4 Total Company depreciation and amortization (1) $ 63.5 $ 73.1 (1) Includes share-based incentive compensation of $14.4 million for the three months ended March 31, 2016 and $18.3 million for the three months ended March 31, 2015. (2) Restructuring and other charges by segment were as follows: Three Months Ended March 31, (In millions) 2016 2015 Food Care $ — $ 6.9 Diversey Care — 3.2 Product Care — 2.6 Total reportable segments — 12.7 Other — — Total Company restructuring and other charges $ — $ 12.7 |
Assets by Reportable Segments | The following table shows assets allocated by our segment reporting structure. Only assets identifiable by segment and reviewed by our chief operating decision maker by segment are allocated by the reportable segment assets, which are trade receivables, net, and finished goods inventory, net. All other assets are included in “Assets not allocated.” March 31, December 31, (In millions) 2016 2015 Assets: Trade receivables, net, and finished goods inventories, net Food Care $ 555.6 $ 522.4 Diversey Care 467.6 440.3 Product Care 230.1 222.0 Other 17.8 12.5 Total segments and other 1,271.1 1,197.2 Assets not allocated Cash and cash equivalents 315.7 358.4 Property and equipment, net 954.4 930.7 Goodwill 2,929.4 2,909.5 Intangible assets, net 783.6 784.3 Assets held for sale 3.5 10.3 Other 1,281.6 1,199.6 Total $ 7,539.3 $ 7,390.0 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | The following table details our inventories: March 31, December 31, (In millions) 2016 2015 Inventories: Raw materials $ 130.8 $ 109.6 Work in process $ 122.2 112.4 Finished goods $ 483.5 438.8 Total $ 736.5 $ 660.8 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table details our property and equipment, net: March 31, December 31, (In millions) 2016 2015 Land and improvements $ 89.0 $ 86.7 Buildings 617.5 602.0 Machinery and equipment 2,177.3 2,141.3 Other property and equipment 131.4 129.1 Construction-in-progress 210.9 190.7 Property and equipment, gross 3,226.1 3,149.8 Accumulated depreciation and amortization (2,271.7 ) (2,219.1 ) Property and equipment, net $ 954.4 $ 930.7 |
Interest Cost Capitalized and Depreciation and Amortization Expense for Property and Equipment | The following table details our interest cost capitalized and depreciation and amortization expense for property and equipment. Three Months Ended March 31, (In millions) 2016 2015 Interest cost capitalized $ 1.6 $ 1.0 Depreciation and amortization expense for property and equipment $ 27.7 $ 32.2 |
Goodwill and Identifiable Ass31
Goodwill and Identifiable Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Balances by Segment Reporting Structure | The following table shows our goodwill balances by our segment reporting structure. We review goodwill for impairment on a reporting unit basis annually during the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. As of March 31, 2016, we did not identify any changes in circumstances that would indicate the carrying value of goodwill may not be recoverable. (In millions) Food Care Diversey Care Product Care Other Total Gross Carrying Value at December 31, 2015 $ 804.3 $ 1,820.9 $ 1,373.7 $ 1.6 $ 4,000.5 Accumulated impairment (208.0 ) (883.0 ) — — (1,091.0 ) Carrying Value at December 31, 2015 $ 596.3 $ 937.9 $ 1,373.7 $ 1.6 $ 2,909.5 Acquisition method adjustments (0.3 ) — — — (0.3 ) Currency translation 0.2 19.4 0.7 (0.1 ) 20.2 Gross Carrying Value at March 31, 2016 804.2 1,840.3 1,374.4 1.5 4,020.4 Accumulated impairment (208.0 ) (883.0 ) — — (1,091.0 ) Carrying Value at March 31, 2016 $ 596.2 $ 957.3 $ 1,374.4 $ 1.5 $ 2,929.4 |
Summarize of Identifiable Intangible Assets with Definite and Indefinite Useful Lives | The following tables summarize our identifiable intangible assets with definite and indefinite useful lives. As of March 31, 2016, there were no impairment indicators present. March 31, 2016 December 31, 2015 Gross Gross Carrying Accumulated Accumulated Carrying Accumulated Accumulated (In millions) Value Amortization Impairment Net Value Amortization Impairment Net Customer relationships $ 861.8 $ (269.0 ) $ (148.9 ) $ 443.9 $ 846.2 $ (249.4 ) $ (148.9 ) $ 447.9 Trademarks and tradenames 1.8 (0.6 ) — 1.2 1.7 (0.4 ) — 1.3 Capitalized Software 153.9 (129.0 ) — 24.9 143.0 (125.3 ) — 17.7 Technology 142.5 (68.6 ) (22.2 ) 51.7 141.9 (65.0 ) (22.2 ) 54.7 Contracts 43.3 (32.5 ) — 10.8 42.8 (31.2 ) — 11.6 Total intangible assets with definite lives 1,203.3 (499.7 ) (171.1 ) 532.5 1,175.6 (471.3 ) (171.1 ) 533.2 Trademarks and tradenames with indefinite lives (1) 881.3 — (630.2 ) 251.1 881.3 — (630.2 ) 251.1 Total identifiable intangible assets $ 2,084.6 $ (499.7 ) $ (801.3 ) $ 783.6 $ 2,056.9 $ (471.3 ) $ (801.3 ) $ 784.3 (1) The intangible assets include $251 million of trademarks and trade names that we have determined to have indefinite useful lives, primarily acquired in connection with the acquisition of Diversey. |
Remaining Estimated Future Amortization Expense | The following table shows the remaining estimated future amortization expense at March 31, 2016. Year Amount (in millions) Remainder of 2016 $ 65.6 2017 81.3 2018 68.1 2019 58.4 Thereafter 259.1 Total $ 532.5 |
Restructuring and Relocation 32
Restructuring and Relocation Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Program Metrics | Program metrics are as follows: Program EQIP Fusion Total Announcement Date May 2013 December 2014 Status Estimated to be completed by 12/31/2016 Estimated to be completed by 12/31/2018 Approximate positions eliminated by the program 900 1,050 1,950 Estimated Program Costs (in millions): Costs of reduction in headcount as a result of reorganization $130 $105-$110 $235-$240 Other expenses associated with the plan 50-55 110-115 160-170 Total expense $180-185 $215-225 $395-410 Capital expenditures 45 205-210 250-255 Proceeds, foreign exchange and other cash items (5) -(10) (60)-(65) (65)-(75) Total estimated net cash cost $220 $360-$370 $580-$590 Program to Date Cumulative Expense (in millions): Costs of reduction in headcount as a result of reorganization $ 130 $ 83 $ 213 Other expenses associated with the plan 48 36 84 Total Cumulative Expense $ 178 $ 119 $ 297 Capital expenditures $ 45 $ 64 $ 109 |
Restructuring and Relocation Activities | The following table details our restructuring activities as reflected in the Condensed Statement of Operations for the three months ended March 31, 2016 and 2015: Three months ended March 31 (In millions) 2016 2015 Other associated costs $ 6.1 $ 8.6 Restructuring charges — 12.7 Total Expense $ 6.1 $ 21.3 Capital Expenditures $ 19.1 $ 2.4 |
Components of Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining | The restructuring accrual, spending and other activity for the three months ended March 31, 2016 and the accrual balance remaining at March 31, 2016 related to these programs were as follows (in millions): Restructuring accrual at December 31, 2015 $ 76.3 Accrual and accrual adjustments (0.2 ) Cash payments during 2016 (12.6 ) Effect of changes in foreign currency exchange rates 2.0 Restructuring accrual at March 31, 2016 $ 65.5 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Total Debt Outstanding | Our total debt outstanding consisted of the amounts set forth on the following table: March 31, December 31, (In millions) 2016 2015 (3) Short-term borrowings (1) $ 353.1 $ 241.9 Current portion of long-term debt 61.6 46.6 Total current debt 414.7 288.5 Term Loan A due July 2017 249.7 249.7 Term Loan A due July 2019 (2) 1,055.5 1,058.9 6.50% Senior Notes due December 2020 422.8 422.7 4.875% Senior Notes due December 2022 419.1 418.9 5.25% Senior Notes due April 2023 419.2 419.0 4.50% Senior Notes due September 2023 449.2 432.9 5.125% Senior Notes due December 2024 419.8 419.7 5.50% Senior Notes due September 2025 396.1 396.1 6.875% Senior Notes due July 2033 445.2 445.2 Other 3.4 3.7 Total long-term debt, less current portion (5) 4,280.0 4,266.8 Total debt (4)(6) $ 4,694.7 $ 4,555.3 (1) Short-term borrowings of $353 million at March 31, 2016 are comprised primarily of $70 million of borrowings outstanding under our U.S. accounts receivable securitization program, $82 million of borrowings outstanding under our European accounts receivable securitization program, $92 million outstanding under our revolving credit facility and $109 million short-term borrowing from various lines of credit. Short-term borrowings at December 31, 2015 are comprised primarily of $67 million of borrowings outstanding under our U.S. accounts receivable securitization program, $77 million of borrowings outstanding under our European accounts receivable securitization program and $98 million short-term borrowings from various lines of credit. (2) Term Loan A facility due July 2019 has required prepayments which are due in 2016. (3) As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 which resulted in $36 million of unamortized debt issuance costs being reclassified from other assets to long-term debt. See Note 2, “Recently Issued Accounting Standards” for additional information related to this adoption. (4) As of March 31, 2016, our weighted average interest rate on our short-term borrowings outstanding was 3.5% and on our long-term debt outstanding was 4.6%. As of December 31, 2015, our weighted average interest rate on our short-term borrowings outstanding was 3.4% and on our long-term debt outstanding was 4.6%. (5) Amounts are net of unamortized discounts/issuance costs of $35 million as March 31, 2016 and $36 million as of December 31, 2015. (6) Long-term debt instruments are listed in order of priority. |
Lines of Credit | The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including the Revolving Credit Facility discussed above, and the amounts available under our accounts receivable securitization programs. March 31, December 31, (In millions) 2016 2015 Used lines of credit (1)(2) $ 353.1 $ 241.9 Unused lines of credit 935.0 1,039.9 Total available lines of credit (3) $ 1,288.1 $ 1,281.8 (1) Includes total borrowings under the accounts receivable securitization programs, the revolving credit facility and borrowings under lines of credit available to several subsidiaries. (2) As of March 31, 2016 and December 31, 2015, there were $57 million and $56 million of cash held on deposit, respectively, as a compensating balance for certain short-term borrowings that are included in other current assets on the Condensed Consolidated Balance Sheet. (3) Of the total available lines of credit, $875 million were committed as of March 31, 2016. |
Derivatives and Hedging Activ34
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table details the fair value of our derivative instruments included on our Condensed Consolidated Balance Sheets. Cash Flow Net Investment Hedge Non-Designated Total March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Derivative Assets Foreign currency forward contracts $ 1.6 $ 3.2 $ — $ — $ 15.6 $ 25.0 $ 17.2 $ 28.2 Interest rate and currency swaps 37.3 44.0 — — — — 37.3 44.0 Total Derivative Assets (2) $ 38.9 $ 47.2 $ — $ — $ 15.6 $ 25.0 $ 54.5 $ 72.2 Derivative Liabilities Foreign currency forward contracts $ (4.6 ) $ (1.3 ) $ — $ — $ (22.3 ) $ (43.5 ) $ (26.9 ) $ (44.8 ) Cross-currency swaps — — (32.4 ) (12.0 ) — — (32.4 ) (12.0 ) Total (2) $ (4.6 ) $ (1.3 ) $ (32.4 ) $ (12.0 ) $ (22.3 ) $ (43.5 ) $ (59.3 ) $ (56.8 ) Net Derivatives (1) $ 34.3 $ 45.9 $ (32.4 ) $ (12.0 ) $ (6.7 ) $ (18.5 ) $ (4.8 ) $ 15.4 (1) Excludes €400 million of euro-denominated debt ($449 million equivalent at March 31, 2016), designated as a net investment hedge. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Assets Other Non-current March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Gross position $ 25.0 $ 36.2 $ (26.9 ) $ (44.8 ) $ 29.5 $ 36.0 $ (32.4 ) $ (12.0 ) Impact of master netting agreements (0.2 ) (24.1 ) 0.2 24.1 — — — — Net amounts recognized on the Condensed Consolidated Balance Sheet $ 24.8 $ 12.1 $ (26.7 ) $ (20.7 ) $ 29.5 $ 36.0 $ (32.4 ) $ (12.0 ) |
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations | The following table details the effect of our derivative instruments on our Condensed Consolidated Statements of Operations. Amount of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, (In millions) 2016 2015 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts (1) $ 1.7 $ 0.8 Interest rate and currency swaps (2) (10.9 ) 15.0 Treasury locks (3) 0.1 0.1 Sub-total cash flow hedges (9.1 ) 15.9 Fair Value Hedges: Interest rate swaps 0.1 0.1 Derivatives not designated as hedging instruments: Foreign currency forward contracts (10.6 ) 37.9 Total $ (19.6 ) $ 53.9 (1) (2) (3) |
Fair Value Measurements and O35
Fair Value Measurements and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The following table details the fair value hierarchy of our financial instruments: March 31, 2016 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 52.1 $ 44.1 $ 8.0 $ — Compensating balance deposits $ 56.7 $ 56.7 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ (9.7 ) $ — $ (9.7 ) $ — Interest rate and currency swaps $ 37.3 $ — $ 37.3 $ — Cross-currency swaps $ (32.4 ) $ — $ (32.4 ) $ — December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Cash equivalents $ 56.3 $ 48.3 $ 8.0 $ — Compensating balance deposits $ 56.5 $ 56.5 $ — $ — Derivative financial instruments net asset (liability): Foreign currency forward contracts $ (16.5 ) $ — $ (16.5 ) $ — Interest rate and currency swaps $ 44.0 $ — $ 44.0 $ — Cross-currency swaps $ (12.0 ) $ — $ (12.0 ) $ — |
Carrying Amounts and Estimated Fair Values of Debt | The table below shows the carrying amounts and estimated fair values of our total debt: March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair (In millions) Amount Value Amount (2) Value Term Loan A Facility due July 2017 $ 249.7 $ 249.7 $ 249.7 $ 249.7 Term Loan A Facility due July 2019 (1) 1,115.3 1,115.3 1,103.8 1,103.8 6.50% Senior Notes due December 2020 422.8 476.9 422.7 473.7 4.875% Senior Notes due December 2022 419.1 441.9 418.9 426.5 5.25% Senior Notes due April 2023 419.2 448.6 419.0 436.2 4.50% Senior Notes due September 2023 (1) 449.2 476.6 432.9 452.7 5.125% Senior Notes due December 2024 419.8 441.2 419.7 427.6 5.50% Senior Notes due September 2025 396.1 419.3 396.1 410.2 6.875% Senior Notes due July 2033 445.2 473.4 445.2 462.7 Other foreign loans (1) 182.9 183.1 165.7 165.8 Other domestic loans 175.4 175.6 81.6 81.9 Total debt $ 4,694.7 $ 4,901.6 $ 4,555.3 $ 4,690.8 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 which resulted in $36 million of unamortized debt issuance costs being reclassified from other assets to long-term debt. See Note 2, “Recently Issued Accounting Standards” for additional information related to this adoption. |
Defined Benefit Pension Plans36
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans [Member] | |
Components of Net Periodic Benefit Cost (Income) | The following table shows the components of our net periodic benefit cost (income) for our defined benefit pension plans for the three months ended March 31, 2016 and 2015: Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 (In millions) U.S. International Total U.S. International Total Components of net periodic benefit cost or (income): Service cost $ 0.1 $ 2.5 $ 2.6 $ 0.3 $ 2.5 $ 2.8 Interest cost 1.9 6.4 8.3 2.2 7.6 9.8 Expected return on plan assets (2.5 ) (9.1 ) (11.6 ) (2.9 ) (10.3 ) (13.2 ) Amortization of net actuarial loss 0.5 2.3 2.8 0.5 2.4 2.9 Net periodic benefit cost (income) — 2.1 2.1 0.1 2.2 2.3 Cost (income) of settlement/curtailment — 0.1 0.1 — 0.3 0.3 Total benefit cost (income) $ — $ 2.2 $ 2.2 $ 0.1 $ 2.5 $ 2.6 |
Other Employee Benefits Plans [Member] | |
Components of Net Periodic Benefit Cost (Income) | The following table shows the components of our net periodic benefit cost for our other employee benefit plans for the three month period ended March 31, 2016 and 2015: Three Months Ended March 31, (In millions) 2016 2015 Components of net periodic benefit cost or (income): Service cost $ — $ 0.3 Interest cost 0.5 0.8 Amortization of net prior service cost (0.4 ) (0.2 ) Amortization of net actuarial loss — 0.1 Net periodic benefit cost $ 0.1 $ 1.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Share-based Incentive Compensation Expense | The table below shows our total share-based incentive compensation expense: Three Months Ended March 31, (In millions) 2016 2015 Total share-based incentive compensation expense (1) $ 14.4 $ 18.3 (1) The amounts included above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock or the expense or income related to SARs and certain cash-based awards. See Stock Appreciation Rights below for further details of SARs. At March 31, 2016 and March 31, 2015, our other cash-based awards were not material to our Condensed Consolidated Balance Sheet or Statement of Operations |
2016 Performance - Vesting Inducement Award [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Assumptions Used to Calculate the Grant Date Fair Value | The assumptions used to calculate the grant date fair value of the performance-vesting Inducement Award are shown in the following table: 2016 Performance-vesting Inducement Award Fair value on grant date $ 12.55 Expected price volatility 24.6 % Risk-free interest rate 0.92 % |
PSU Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Assumptions Used to Calculate the Grant Date Fair Value | The assumptions used to calculate the grant date fair value of the PSUs based on TSR are shown in the following table: TSR of 2016 PSU Award Expected price volatility 26.5 % Risk-free interest rate 0.98 % |
Summary of Number of PSUs Granted and Grant Date Fair Value | The number of PSUs granted and the grant date fair value of the PSUs are shown in the following table: TSR Adjusted EBITDA Number of units granted 124,755 165,391 Fair value on grant date $ 57.14 $ 43.10 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Details of Comprehensive Income (Loss) | The following table provides details of comprehensive income (loss) for the three months ended March 31, 2016 and 2015: (In millions) Unrecognized Pension Cumulative Translation Adjustment Unrecognized Gains (Losses) on Derivative Instruments for net investment hedge Unrecognized Gains (Losses) on Derivative Instruments for cash flow hedge Accumulated Other Comprehensive Income (Loss), Net of Taxes Balance at December 31, 2014 $ (250.1 ) $ (369.9 ) $ — $ 6.2 $ (613.8 ) Other comprehensive income (loss) before reclassifications (0.4 ) (58.1 ) (8.0 ) 13.4 (53.1 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 2.4 — — (10.8 ) (8.4 ) Net current period other comprehensive income (loss) 2.0 (58.1 ) (8.0 ) 2.6 (61.5 ) Balance at March 31, 2015 (1)(2) $ (248.1 ) $ (428.0 ) $ (8.0 ) $ 8.8 $ (675.3 ) Balance at December 31, 2015 $ (266.0 ) $ (564.0 ) $ 1.7 $ 8.3 $ (820.0 ) Other comprehensive income (loss) before reclassifications (0.2 ) (9.3 ) (22.6 ) (9.6 ) (41.7 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 1.9 — — 5.5 7.4 Net current period other comprehensive income (loss) 1.7 (9.3 ) (22.6 ) (4.1 ) (34.3 ) Balance at March 31, 2016 (2) $ (264.3 ) $ (573.3 ) $ (20.9 ) $ 4.2 $ (854.3 ) (1) For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified within Accumulated Other Comprehensive Loss (“AOCI”) on the Consolidated Balance Sheet. Refer Note 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the heading “Reclassifications and Revisions” for further discussion of the revisions. (2) The ending balance in AOCI includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $(19.4) million as of March 31, 2016 and $68.7 million as of March 31, 2015. |
Detail of Amount Reclassified from Accumulated Other Comprehensive Income | The following table provides detail of amounts reclassified from accumulated other comprehensive income: Three Months Ended March 31, (In millions) 2016 (1) 2015 (1) Location of Amount Reclassified from AOCI Defined benefit pension plans and other post- employment benefits: Prior service costs $ 0.4 $ 0.2 (2) Actuarial losses (2.8 ) (3.0 ) (2) Settlement/curtailment loss (0.1 ) (0.3 ) (2) Total pre-tax amount (2.5 ) (3.1 ) Tax (expense) benefit 0.6 0.7 Net of tax (1.9 ) (2.4 ) Net gains (losses) on cash flow hedging derivatives: Foreign currency forward contracts 1.7 0.8 (3) Interest rate and currency swaps (10.8 ) 15.1 (3) Treasury locks 0.1 0.1 (3) Total pre-tax amount (9.0 ) 16.0 Tax (expense) benefit 3.5 (5.2 ) Net of tax (5.5 ) 10.8 Total reclassifications for the period $ (7.4 ) $ 8.4 (1) Amounts in parenthesis indicate debits to earnings (loss). (2) These accumulated other comprehensive components are included in the computation of net periodic benefit costs within cost of sales and selling, general, and administrative expenses on the Condensed Consolidated Statement of Operations. (3) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 11, “Derivatives and Hedging Activities” for additional details. |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Details of Other Income (Expense), Net | The following table provides details of other income (expense), net: Three Months Ended March 31, (In millions) 2016 2015 Interest and dividend income $ 3.6 $ 3.2 Net foreign exchange transaction gains (losses) (1.5 ) (0.5 ) Bank fee expense (1.4 ) (1.1 ) Net gain/(loss) on disposals of business and property and equipment (2.7 ) 3.3 Other, net (0.9 ) 0.5 Other income (expense), net $ (2.9 ) $ 5.4 |
Net Earnings Per Common Share (
Net Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Earnings Per Common Share | The following table shows the calculation of basic and diluted net earnings per common share under the two-class method: Three Months Ended March 31, (In millions, except per share amounts) 2016 2015 Basic Net Earnings Per Common Share: Numerator Net earnings available to common stockholders $ 91.9 $ 97.2 Distributed and allocated undistributed net loss to non- vested restricted stockholders (0.6 ) (0.6 ) Distributed and allocated undistributed net earnings to common stockholders 91.3 96.6 Distributed net earnings - dividends paid to common stockholders (25.4 ) (27.3 ) Allocation of undistributed net earnings to common stockholders $ 65.9 $ 69.3 Denominator Weighted average number of common shares outstanding - basic 195.2 208.9 Basic net earnings per common share: Distributed net earnings to common stockholders $ 0.13 $ 0.13 Allocated undistributed net earnings to common stockholders 0.34 0.33 Basic net earnings per common share: $ 0.47 $ 0.46 Diluted Net Earnings Per Common Share: Numerator Distributed and allocated undistributed net earnings to common stockholders $ 91.3 $ 96.6 Add: Allocated undistributed net earnings to unvested restricted stockholders 0.4 0.5 Less: Undistributed net earnings (loss) reallocated to non- vested restricted stockholders (0.4 ) (0.5 ) Net earnings available to common stockholders - diluted $ 91.3 $ 96.6 Denominator Weighted average number of common shares outstanding - basic 195.2 208.9 Effect of contingently issuable shares 0.5 1.2 Effect of unvested restricted stock units 0.7 0.8 Weighted average number of common shares outstanding - diluted under two-class 196.4 210.9 Effect of unvested restricted stock - participating security 0.6 0.8 Weighted average number of common shares outstanding - diluted under treasury stock 197.0 211.7 Diluted net earnings per common share $ 0.46 $ 0.46 |
Organization and Basis of Pre41
Organization and Basis of Presentation - Additional Information (Detail) $ in Millions | 3 Months Ended | ||||||||
Mar. 31, 2016USD ($)SubsidiaryVEB / $ | Mar. 31, 2015USD ($)VEB / $ | Mar. 10, 2016VEB / $ | Dec. 31, 2015USD ($)VEB / $ | Feb. 12, 2015VEB / $ | Dec. 31, 2014USD ($)VEB / $ | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Number of wholly-owned subsidiaries | Subsidiary | 3 | ||||||||
Reclassification of cash to other current and non-current assets | $ 57 | $ 56 | |||||||
Recognition of deferred pension items | (1.7) | $ (2) | [1] | ||||||
Foreign currency translation adjustments | (9.3) | (58.1) | [1] | ||||||
Foreign currency transaction gain (loss) related to remeasurement | (1.7) | 0.8 | [2] | ||||||
Cash and cash equivalents | 315.7 | 486 | [2] | $ 358.4 | [3] | $ 286.4 | [2] | ||
Venezuela [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Foreign currency transaction gain (loss) related to remeasurement | (1.7) | $ 0.8 | |||||||
Net assets | 4 | ||||||||
Cash and cash equivalents | 1 | ||||||||
Cumulative translation adjustment | $ (46) | ||||||||
Venezuela [Member] | Maximum [Member] | Net Sales [Member] | Geographic Concentration Risk [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Concentration risk percentage | 1.00% | ||||||||
Venezuela [Member] | Maximum [Member] | Operating Income [Member] | Geographic Concentration Risk [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Concentration risk percentage | 1.00% | ||||||||
Venezuela [Member] | SIMADI [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Exchange rate, translation | VEB / $ | 192.9537 | 198.6986 | 170.0390 | ||||||
Venezuela [Member] | SICAD [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Exchange rate, translation | VEB / $ | 12 | 49.9883 | |||||||
Venezuela [Member] | C E N C O E X | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Exchange rate, translation | VEB / $ | 6.3 | 6.3 | |||||||
Venezuela [Member] | DIPRO [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Exchange rate, translation | VEB / $ | 10 | ||||||||
Venezuela [Member] | DICOM [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Exchange rate, translation | VEB / $ | 272.9123 | 203 | |||||||
Cash Flow Hedge [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Unrealized losses on derivative instruments, net of taxes | $ (4.1) | $ 2.6 | [1] | ||||||
Restatement Adjustment | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Net cash provided by (used in) operating activities | (6.1) | ||||||||
Net cash (used in) provided by investing activities | 32 | ||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (38.1) | ||||||||
Reclassification of cash to other current and non-current assets | 50.1 | ||||||||
Reclassification of cash to other current assets | 23.9 | ||||||||
Reclassification of cash to other non-current assets | 26.2 | ||||||||
Net cash (used in) provided by financing activities | (14.2) | ||||||||
Recognition of deferred pension items | (15.3) | ||||||||
Foreign currency translation adjustments | 14.7 | ||||||||
Restatement Adjustment | Cash Flow Hedge [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Unrealized losses on derivative instruments, net of taxes | $ (0.6) | ||||||||
[1] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||||||||
[2] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||||||||
[3] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Recently Issued Accounting St42
Recently Issued Accounting Standards - Additional Information (Detail) - Accounting Standards Update 2015-03 And 2015-15 [Member] $ in Millions | Dec. 31, 2015USD ($) |
Significant Accounting Policies [Line Items] | |
Decrease in other assets | $ 35.9 |
Decrease in long-term debt | $ 35.9 |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) € in Millions, $ in Millions | Nov. 01, 2015USD ($) | Nov. 01, 2015EUR (€) | Apr. 02, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016EUR (€) |
Divestitures And Acquisitions Disclosure [Line Items] | |||||||
Proceeds from sale of business | $ 4.2 | ||||||
Net sales | 1,590.6 | $ 1,746.4 | |||||
Pre-tax income | 112.3 | 131.3 | |||||
European Food Trays Businesses [Member] | |||||||
Divestitures And Acquisitions Disclosure [Line Items] | |||||||
Disposal date | Nov. 1, 2015 | Nov. 1, 2015 | |||||
Proceeds from sale of business | $ 18 | € 19 | |||||
Purchase price adjustments | $ 2 | € 2 | |||||
Gain (loss) on sale of manufacturing facilities, pre-tax | 1.6 | ||||||
Net sales | 14 | ||||||
Pre-tax income | 2 | ||||||
Cumulative net proceeds from sale of business | $ 17 | € 16 | |||||
North American Foam Trays and Absorbent Pads [Member] | |||||||
Divestitures And Acquisitions Disclosure [Line Items] | |||||||
Disposal date | Apr. 1, 2015 | ||||||
Proceeds from sale of business | $ 76 | ||||||
Purchase price adjustments | $ 6 | ||||||
Disposal Group, Not Discontinued Operations [Member] | European Food Trays Businesses [Member] | |||||||
Divestitures And Acquisitions Disclosure [Line Items] | |||||||
Gain (loss) on sale of manufacturing facilities, pre-tax | $ 2 | ||||||
Disposal Group, Not Discontinued Operations [Member] | North American Foam Trays and Absorbent Pads [Member] | |||||||
Divestitures And Acquisitions Disclosure [Line Items] | |||||||
Gain (loss) on sale of manufacturing facilities, pre-tax | $ 27 | ||||||
Net sales | 53 | ||||||
Pre-tax income | $ 10 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Net Sales and Adjust
Segments - Net Sales and Adjusted EBITDA of Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,590.6 | $ 1,746.4 | |
Adjusted EBITDA Margin | 15.30% | 16.30% | |
Non-U.S. GAAP Total Company Adjusted EBITDA | $ 243.1 | $ 284.2 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,573.3 | 1,727.6 | |
Adjusted EBITDA | 261.2 | 308 | |
Operating Segments [Member] | Food Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 764.7 | 879.8 | |
Adjusted EBITDA | $ 147.8 | $ 190.5 | |
Adjusted EBITDA Margin | 19.30% | 21.70% | |
Operating Segments [Member] | Diversey Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 441.4 | $ 467.9 | |
Adjusted EBITDA | $ 36.3 | $ 41.1 | |
Adjusted EBITDA Margin | 8.20% | 8.80% | |
Operating Segments [Member] | Product Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | $ 367.2 | $ 379.9 |
Adjusted EBITDA | [1] | $ 77.1 | $ 76.4 |
Adjusted EBITDA Margin | 21.00% | 20.10% | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | [1] | $ 17.3 | $ 18.8 |
Adjusted EBITDA | [1] | $ (18.1) | $ (23.8) |
Product Concentration Risk [Member] | Net Sales [Member] | Operating Segments [Member] | Food Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 48.10% | 50.40% | |
Product Concentration Risk [Member] | Net Sales [Member] | Operating Segments [Member] | Diversey Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 27.80% | 26.80% | |
Product Concentration Risk [Member] | Net Sales [Member] | Operating Segments [Member] | Product Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 23.10% | 21.80% | |
[1] | As of January 1, 2016, our Kevothermal business was moved from Other to our Product Care Segment. This resulted in a reclassification of $2.8 million of net sales and $0.8 million of adjusted EBITDA for the three months ended March 31, 2015. |
Segments - Net Sales and Adju46
Segments - Net Sales and Adjusted EBITDA of Reportable Segments (Parenthetical) (Detail) - Kevothermal Business [Member] - Operating Segments [Member] - Product Care [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |
Reclassified sales | $ 2.8 |
Reclassified adjusted EBITDA | $ 0.8 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Company Adjusted EBITDA to Net Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Total Company Adjusted EBITDA | $ 243.1 | $ 284.2 | |
Depreciation and amortization | (63.5) | (73.1) | |
Special items : | |||
Accelerated depreciation of non-strategic assets related to restructuring programs | 0.6 | ||
Restructuring and other charges | (12.7) | ||
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses | (6.1) | (8.6) | |
Gain from sale of building in connection with relocation | 3.5 | ||
Stock appreciation rights expense | (0.3) | (2.9) | |
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries | (1.7) | 0.8 | |
Other special items | (2.9) | (2) | |
Interest expense | (54.7) | (58.5) | |
Income tax provision | 20.4 | 34.1 | |
Net earnings available to common stockholders | 91.9 | $ 97.2 | [1],[2] |
European Food Trays Businesses [Member] | |||
Special items : | |||
Loss from sale of European food trays business | $ (1.6) | ||
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Segments - Reconciliation of 48
Segments - Reconciliation of Total Company Adjusted EBITDA to Net Earnings (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 63.5 | $ 73.1 | |
Share-based incentive compensation | [1] | 14.4 | 18.3 |
Restructuring and other charges | 12.7 | ||
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 58.3 | 64.7 | |
Restructuring and other charges | 12.7 | ||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5.2 | 8.4 | |
Food Care [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 25.7 | 28.5 | |
Restructuring and other charges | 6.9 | ||
Diversey Care [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 23 | 26.1 | |
Restructuring and other charges | 3.2 | ||
Product Care [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 9.6 | 10.1 | |
Restructuring and other charges | $ 2.6 | ||
[1] | The amounts included above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock or the expense or income related to SARs and certain cash-based awards. See Stock Appreciation Rights below for further details of SARs. At March 31, 2016 and March 31, 2015, our other cash-based awards were not material to our Condensed Consolidated Balance Sheet or Statement of Operations. |
Segments - Assets by Reportable
Segments - Assets by Reportable Segments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | [2] | Dec. 31, 2014 | [2] | |
Trade receivables, net, and finished goods inventories, net | |||||||
Total segments and other | $ 1,271.1 | $ 1,197.2 | |||||
Assets not allocated | |||||||
Cash and cash equivalents | 315.7 | 358.4 | [1] | $ 486 | $ 286.4 | ||
Property and equipment, net | 954.4 | 930.7 | [1] | ||||
Goodwill | 2,929.4 | 2,909.5 | [1] | ||||
Intangible assets, net | 783.6 | 784.3 | [1] | ||||
Total assets | 7,539.3 | 7,390 | [1] | ||||
Operating Segments [Member] | Food Care [Member] | |||||||
Trade receivables, net, and finished goods inventories, net | |||||||
Total segments and other | 555.6 | 522.4 | |||||
Assets not allocated | |||||||
Goodwill | 596.2 | 596.3 | |||||
Operating Segments [Member] | Diversey Care [Member] | |||||||
Trade receivables, net, and finished goods inventories, net | |||||||
Total segments and other | 467.6 | 440.3 | |||||
Assets not allocated | |||||||
Goodwill | 957.3 | 937.9 | |||||
Operating Segments [Member] | Product Care [Member] | |||||||
Trade receivables, net, and finished goods inventories, net | |||||||
Total segments and other | 230.1 | 222 | |||||
Assets not allocated | |||||||
Goodwill | 1,374.4 | 1,373.7 | |||||
Operating Segments [Member] | Other Segments [Member] | |||||||
Trade receivables, net, and finished goods inventories, net | |||||||
Total segments and other | 17.8 | 12.5 | |||||
Segment Reconciling Items [Member] | |||||||
Assets not allocated | |||||||
Cash and cash equivalents | 315.7 | 358.4 | |||||
Property and equipment, net | 954.4 | 930.7 | |||||
Goodwill | 2,929.4 | 2,909.5 | |||||
Intangible assets, net | 783.6 | 784.3 | |||||
Assets held for sale | 3.5 | 10.3 | |||||
Other | 1,281.6 | 1,199.6 | |||||
Total assets | $ 7,539.3 | $ 7,390 | |||||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. | ||||||
[2] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 130.8 | $ 109.6 | |
Work in process | 122.2 | 112.4 | |
Finished goods | 483.5 | 438.8 | |
Total | $ 736.5 | $ 660.8 | [1] |
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment Net [Abstract] | |||
Land and improvements | $ 89 | $ 86.7 | |
Buildings | 617.5 | 602 | |
Machinery and equipment | 2,177.3 | 2,141.3 | |
Other property and equipment | 131.4 | 129.1 | |
Construction-in-progress | 210.9 | 190.7 | |
Property and equipment, gross | 3,226.1 | 3,149.8 | |
Accumulated depreciation and amortization | (2,271.7) | (2,219.1) | |
Property and equipment, net | $ 954.4 | $ 930.7 | [1] |
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Property and Equipment, net - I
Property and Equipment, net - Interest Cost Capitalized and Depreciation and Amortization Expense for Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property Plant And Equipment [Abstract] | ||
Interest cost capitalized | $ 1.6 | $ 1 |
Depreciation and amortization expense for property and equipment | $ 27.7 | $ 32.2 |
Goodwill and Identifiable Ass53
Goodwill and Identifiable Assets - Summary of Goodwill Balances by Segment Reporting Structure (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | |||
Gross Carrying Value | $ 4,000.5 | ||
Accumulated impairment | (1,091) | $ (1,091) | |
Carrying Value | 2,929.4 | 2,909.5 | [1] |
Acquisition method adjustments | (0.3) | ||
Currency translation | 20.2 | ||
Gross Carrying Value | 4,020.4 | ||
Operating Segments [Member] | Food Care [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 804.3 | ||
Accumulated impairment | (208) | (208) | |
Carrying Value | 596.2 | 596.3 | |
Acquisition method adjustments | (0.3) | ||
Currency translation | 0.2 | ||
Gross Carrying Value | 804.2 | ||
Operating Segments [Member] | Diversey Care [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 1,820.9 | ||
Accumulated impairment | (883) | (883) | |
Carrying Value | 957.3 | 937.9 | |
Currency translation | 19.4 | ||
Gross Carrying Value | 1,840.3 | ||
Operating Segments [Member] | Product Care [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 1,373.7 | ||
Carrying Value | 1,374.4 | 1,373.7 | |
Currency translation | 0.7 | ||
Gross Carrying Value | 1,374.4 | ||
Other [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 1.6 | ||
Carrying Value | 1.5 | $ 1.6 | |
Currency translation | (0.1) | ||
Gross Carrying Value | $ 1.5 | ||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Goodwill and Identifiable Ass54
Goodwill and Identifiable Assets - Summary of Identifiable Intangible Assets with Definite and Indefinite Useful Lives (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | $ 1,203.3 | $ 1,175.6 | ||
Intangible assets with definite life, Accumulated Amortization | (499.7) | (471.3) | ||
Intangible assets with definite life, Accumulated Impairment | (171.1) | (171.1) | ||
Intangible assets with definite life, Net | 532.5 | 533.2 | ||
Gross Carrying Value | 2,084.6 | 2,056.9 | ||
Accumulated Impairment | (801.3) | (801.3) | ||
Net | 783.6 | 784.3 | [1] | |
Trademarks and tradenames with indefinite lives [Member] | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with indefinite life, Gross Carrying Value | [2] | 881.3 | 881.3 | |
Intangible assets with indefinite life, Accumulated Impairment | [2] | (630.2) | (630.2) | |
Intangible assets with indefinite life, Net | [2] | 251.1 | 251.1 | |
Customer relationships [Member] | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | 861.8 | 846.2 | ||
Intangible assets with definite life, Accumulated Amortization | (269) | (249.4) | ||
Intangible assets with definite life, Accumulated Impairment | (148.9) | (148.9) | ||
Intangible assets with definite life, Net | 443.9 | 447.9 | ||
Trademarks and tradenames [Member] | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | 1.8 | 1.7 | ||
Intangible assets with definite life, Accumulated Amortization | (0.6) | (0.4) | ||
Intangible assets with definite life, Net | 1.2 | 1.3 | ||
Capitalized Software [Member] | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | 153.9 | 143 | ||
Intangible assets with definite life, Accumulated Amortization | (129) | (125.3) | ||
Intangible assets with definite life, Net | 24.9 | 17.7 | ||
Technology | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | 142.5 | 141.9 | ||
Intangible assets with definite life, Accumulated Amortization | (68.6) | (65) | ||
Intangible assets with definite life, Accumulated Impairment | (22.2) | (22.2) | ||
Intangible assets with definite life, Net | 51.7 | 54.7 | ||
Customer Contracts | ||||
Finite And Infinite Lived Intangible Assets [Line Items] | ||||
Intangible assets with definite life, Gross Carrying Value | 43.3 | 42.8 | ||
Intangible assets with definite life, Accumulated Amortization | (32.5) | (31.2) | ||
Intangible assets with definite life, Net | $ 10.8 | $ 11.6 | ||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. | |||
[2] | The intangible assets include $251 million of trademarks and trade names that we have determined to have indefinite useful lives, primarily acquired in connection with the acquisition of Diversey. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets - (Parenthetical) (Detail) $ in Millions | Mar. 31, 2016USD ($) |
Trademarks and tradenames [Member] | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Indefinite-lived intangible Assets (excluding goodwill) | $ 251 |
Goodwill and Identifiable Int56
Goodwill and Identifiable Intangible Assets - Remaining Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2016 | $ 65.6 | |
2,017 | 81.3 | |
2,018 | 68.1 | |
2,019 | 58.4 | |
Thereafter | 259.1 | |
Intangible assets with definite life, Net | $ 532.5 | $ 533.2 |
Accounts Receivable Securitiz57
Accounts Receivable Securitization Programs - Additional Information (Detail) € in Millions | 3 Months Ended | ||||
Mar. 31, 2016USD ($)Bank | Mar. 31, 2015USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | |
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Interest expenses | $ 54,700,000 | $ 58,500,000 | |||
U.S. Accounts Receivable Securitization Program [Member] | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Number of banks involved in sale of fractional ownership interest of accounts receivable | Bank | 2 | ||||
Maximum purchase limit for receivable interests under accounts receivable securitization program | $ 90,000,000 | ||||
Level of eligible assets available under accounts receivable securitization program | less than $90 million | ||||
Amount available for accounts receivable securitization program | $ 72,000,000 | ||||
Accounts receivable expiration date | 2015-09 | ||||
U.S. Accounts Receivable Securitization Program [Member] | U.S.program | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Amount utilized under accounts receivable securitization program | $ 70,000,000 | $ 67,000,000 | |||
U.S. Accounts Receivable Securitization Program [Member] | Maximum [Member] | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Interest expenses | $ 1,000,000 | $ 1,000,000 | |||
European Accounts Receivable Securitization Program [Member] | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Number of banks involved in sale of fractional ownership interest of accounts receivable | Bank | 2 | ||||
Maximum purchase limit for receivable interests under accounts receivable securitization program | $ 125,000,000 | € 110 | |||
Amount available for accounts receivable securitization program | $ 103,000,000 | 91 | |||
Accounts receivable expiration date | 2016-02 | ||||
European Accounts Receivable Securitization Program [Member] | Europe [Member] | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Amount utilized under accounts receivable securitization program | $ 82,000,000 | € 72 | $ 77,000,000 | € 70 |
Restructuring and Relocation 58
Restructuring and Relocation Activities - Schedule of Program Metrics (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Employees | Mar. 31, 2015USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||
Approximate positions eliminated by the program | Employees | 1,950 | |
Other expenses associated with the plan | $ 6.1 | $ 8.6 |
Total expense | 6.1 | 21.3 |
Capital expenditures | 19.1 | $ 2.4 |
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 297 | |
Capital expenditures - to date | $ 109 | |
EQIP [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Announcement Date | 2013-05 | |
Status | Estimated to be completed by 12/31/2016 | |
Approximate positions eliminated by the program | Employees | 900 | |
Costs of reduction in headcount as a result of reorganization | $ 130 | |
Total estimated net cash cost | 220 | |
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 178 | |
Capital expenditures - to date | 45 | |
EQIP [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Capital expenditures | $ 45 | |
FUSION [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Announcement Date | 2014-12 | |
Status | Estimated to be completed by 12/31/2018 | |
Approximate positions eliminated by the program | Employees | 1,050 | |
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | $ 119 | |
Capital expenditures - to date | 64 | |
Minimum [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization | 235 | |
Other expenses associated with the plan | 160 | |
Total expense | 395 | |
Capital expenditures | 250 | |
Proceeds, foreign exchange and other cash items | (65) | |
Total estimated net cash cost | 580 | |
Minimum [Member] | EQIP [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Other expenses associated with the plan | 50 | |
Total expense | 180 | |
Proceeds, foreign exchange and other cash items | (5) | |
Minimum [Member] | FUSION [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization | 105 | |
Other expenses associated with the plan | 110 | |
Total expense | 215 | |
Capital expenditures | 205 | |
Proceeds, foreign exchange and other cash items | (60) | |
Total estimated net cash cost | 360 | |
Maximum [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization | 240 | |
Other expenses associated with the plan | 170 | |
Total expense | 410 | |
Capital expenditures | 255 | |
Proceeds, foreign exchange and other cash items | (75) | |
Total estimated net cash cost | 590 | |
Maximum [Member] | EQIP [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Other expenses associated with the plan | 55 | |
Total expense | 185 | |
Proceeds, foreign exchange and other cash items | (10) | |
Maximum [Member] | FUSION [Member] | Estimated Program Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization | 110 | |
Other expenses associated with the plan | 115 | |
Total expense | 225 | |
Capital expenditures | 210 | |
Proceeds, foreign exchange and other cash items | (65) | |
Total estimated net cash cost | 370 | |
Employee Severance | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 213 | |
Employee Severance | EQIP [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 130 | |
Employee Severance | FUSION [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 83 | |
Other Restructuring | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 84 | |
Other Restructuring | EQIP [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | 48 | |
Other Restructuring | FUSION [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Costs of reduction in headcount as a result of reorganization - to date cumulative expense | $ 36 |
Restructuring and Relocation 59
Restructuring and Relocation Activities - Restructuring Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring And Related Activities [Abstract] | ||
Other associated costs | $ 6.1 | $ 8.6 |
Restructuring charges | 12.7 | |
Total Expense | 6.1 | 21.3 |
Capital expenditures | $ 19.1 | $ 2.4 |
Restructuring and Relocation 60
Restructuring and Relocation Activities - Components of Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring And Related Activities [Abstract] | |
Restructuring accrual at December 31, 2015 | $ 76.3 |
Accrual and accrual adjustments | (0.2) |
Cash payments during 2016 | (12.6) |
Effect of changes in foreign currency exchange rates | 2 |
Restructuring accrual at March 31, 2016 | $ 65.5 |
Restructuring and Relocation 61
Restructuring and Relocation Activities - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($)Jobs | Jan. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expected accrual to pay | $ 61 | |||
Restructuring expected accrual remaining to pay | $ 4 | |||
FUSION [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Jobs relocation completion date | Dec. 31, 2017 | |||
FUSION [Member] | Racine,Wisconsin [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Assets held for sale, sales price | $ 30 | |||
Proceeds from assets held for sale | 24 | |||
Unsecured promissory note receivable from disposal of assets held for sale | $ 6 | |||
Pre-tax gain on disposal of assets held for sale | $ 3 | |||
Scenario, Forecast [Member] | FUSION [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of Jobs relocated from Elmwood park to Charlotte | Jobs | 1,300 | |||
Scenario, Forecast [Member] | FUSION [Member] | Building Cost Of Charlotte Campus | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total estimated net cash cost | $ 120 |
Debt and Credit Facilities - To
Debt and Credit Facilities - Total Debt Outstanding (Detail) € in Millions, $ in Millions | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015EUR (€) | ||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 353.1 | $ 241.9 | [1] | |||
Current portion of long-term debt | 61.6 | 46.6 | [1] | |||
Total current debt | 414.7 | 288.5 | ||||
Other | 3.4 | 3.7 | ||||
Total long-term debt, less current portion | [1] | 4,280 | 4,266.8 | |||
Total debt | 4,694.7 | 4,555.3 | ||||
Term Loan A Due July 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount outstanding | 249.7 | 249.7 | ||||
Term Loan A Due July 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount outstanding | 1,055.5 | 1,058.9 | ||||
6.50% Senior Notes Due December 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 422.8 | 422.7 | ||||
4.875% Senior Notes due December 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 419.1 | 418.9 | ||||
5.25% Senior Notes Due April 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 419.2 | 419 | ||||
4.50% Senior Notes due September 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 449.2 | 432.9 | € 400 | |||
5.125% Senior Notes due December 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 419.8 | 419.7 | ||||
5.50% Senior Notes due September 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | 396.1 | 396.1 | $ 400 | |||
6.875% Senior Notes Due July 2033 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | $ 445.2 | $ 445.2 | ||||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Debt and Credit Facilities - 63
Debt and Credit Facilities - Total Debt Outstanding (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2016 | Jun. 30, 2015 | ||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 353.1 | $ 241.9 | [1] | |||
Short-term Debt, Weighted Average Interest Rate | 3.50% | 3.40% | ||||
Long-term Debt, Weighted Average Interest Rate | 4.60% | 4.60% | ||||
Unamortized discounts/issuance costs | $ 35 | $ 36 | ||||
Unamortized debt issuance costs | $ 36 | |||||
U.S. Accounts Receivable Securitization Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | 70 | 67 | ||||
European Accounts Receivable Securitization Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | 82 | 77 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | 92 | |||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 109 | $ 98 | ||||
Term Loan A Due July 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity month and year, Term loan | 2017-07 | 2017-07 | ||||
Term Loan A Due July 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity month and year, Term loan | 2019-07 | 2019-07 | ||||
Term loan facilities, prepayment due year | 2,016 | |||||
6.50% Senior Notes Due December 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 6.50% | 6.50% | ||||
Debt maturity month and year, Senior notes | 2020-12 | 2020-12 | ||||
4.875% Senior Notes due December 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 4.875% | 4.875% | ||||
Debt maturity month and year, Senior notes | 2022-12 | 2022-12 | ||||
5.25% Senior Notes Due April 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.25% | 5.25% | ||||
Debt maturity month and year, Senior notes | 2023-04 | 2023-04 | ||||
4.50% Senior Notes due September 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 4.50% | 4.50% | 4.50% | |||
Debt maturity month and year, Senior notes | 2023-09 | 2023-09 | ||||
5.125% Senior Notes due December 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.125% | 5.125% | ||||
Debt maturity month and year, Senior notes | 2024-12 | 2024-12 | ||||
5.50% Senior Notes due September 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.50% | 5.50% | 5.50% | |||
Debt maturity month and year, Senior notes | 2025-09 | 2025-09 | ||||
6.875% Senior Notes Due July 2033 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 6.875% | 6.875% | ||||
Debt maturity month and year, Senior notes | 2033-07 | 2033-07 | ||||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | |||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015EUR (€) | ||
Debt Instrument [Line Items] | ||||||
Loss on debt redemption and refinancing activities | [1] | $ 0.5 | ||||
5.50% Senior Notes due September 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maturity date | Sep. 15, 2025 | |||||
Senior Notes | $ 400 | $ 396.1 | $ 396.1 | |||
Debt interest rate | 5.50% | 5.50% | 5.50% | 5.50% | ||
Non-lender fees | $ 8 | |||||
4.50% Senior Notes due September 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maturity date | Sep. 15, 2023 | |||||
Senior Notes | $ 449.2 | $ 432.9 | € 400 | |||
Debt interest rate | 4.50% | 4.50% | 4.50% | 4.50% | ||
Non-lender fees | $ 8 | |||||
8.375% Senior Notes Due September 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maturity date | Sep. 1, 2021 | |||||
Debt interest rate | 8.375% | 8.375% | ||||
Aggregate repurchase price of senior notes | $ 866 | |||||
Repurchased debt principal amount | 750 | |||||
Premium paid on redemption of debt | 99 | |||||
Accrued interest paid on redemption of debt | 17 | |||||
Loss on debt redemption and refinancing activities | 111 | |||||
Amortization Of Debt Discount Premium | $ 11 | |||||
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Debt and Credit Facilities - Li
Debt and Credit Facilities - Lines of Credit (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Used lines of credit | $ 353.1 | $ 241.9 | [1] |
Unused lines of credit | 935 | 1,039.9 | |
Total available lines of credit | $ 1,288.1 | $ 1,281.8 | |
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Debt and Credit Facilities - 66
Debt and Credit Facilities - Lines of Credit (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Line Of Credit Facility [Line Items] | ||
Reclassification of cash to other current and non-current assets | $ 57 | $ 56 |
Total available lines of credit | 1,288.1 | $ 1,281.8 |
Committed Line of Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Total available lines of credit | $ 875 |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 31, 2016USD ($)Derivative | Mar. 31, 2015USD ($) | Dec. 31, 2015 | Jun. 30, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | |||||
Number of derivative instruments outstanding | Derivative | 0 | ||||
4.50% Senior Notes due September 2023 [Member] | |||||
Derivative [Line Items] | |||||
Debt interest rate | 4.50% | 4.50% | 4.50% | ||
Delayed Draw Term Loan A Facility [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of outstanding derivative | $ 100,000,000 | ||||
Foreign Currency Forward Contracts [Member] | Net Investment Hedge [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of outstanding derivative | € | € 270,000,000 | ||||
Derivative foreign exchange expiration date | 2015-06 | ||||
Cumulative translation adjustment before tax | $ (3,500,000) | ||||
Cumulative translation adjustment after tax | $ (2,200,000) | ||||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instruments [Member] | |||||
Derivative [Line Items] | |||||
Maximum original maturity period of foreign currency forward contracts | 12 months | ||||
Other comprehensive income unrealized gain (loss) arising during period net of tax | $ (3,400,000) | $ 1,000,000 | |||
Net unrealized derivative gain (losses) included in AOCI to be reclassified into earnings in next twelve months | $ 2,500,000 | ||||
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | |||||
Derivative [Line Items] | |||||
Maximum original maturity period of foreign currency forward contracts | 12 months | ||||
Interest Rate and Currency Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of outstanding derivative | $ 100,000,000 | ||||
EUR - Denominated debt [Member] | Net Investment Hedge [Member] | 4.50% Senior Notes due September 2023 [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument face amount | € | € 400,000,000 | ||||
Debt interest rate | 4.50% | ||||
EUR - Denominated debt [Member] | Designated as Hedging Instruments [Member] | Net Investment Hedge [Member] | |||||
Derivative [Line Items] | |||||
Fair Value of (Liability) Derivatives | $ 3,800,000 | ||||
Cross-Currency Swaps [Member] | Net Investment Hedge [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of outstanding derivative | $ 425,000,000 |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | $ 54.5 | $ 72.2 |
Total Derivative Liabilities | (59.3) | (56.8) |
Net Derivatives | (4.8) | 15.4 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 15.6 | 25 |
Total Derivative Liabilities | (22.3) | (43.5) |
Net Derivatives | (6.7) | (18.5) |
Foreign Currency Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 17.2 | 28.2 |
Total Derivative Liabilities | (26.9) | (44.8) |
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 15.6 | 25 |
Total Derivative Liabilities | (22.3) | (43.5) |
Interest Rate and Currency Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 37.3 | 44 |
Cross-Currency Swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Total Derivative Liabilities | (32.4) | (12) |
Cash Flow Hedge [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 38.9 | 47.2 |
Total Derivative Liabilities | (4.6) | (1.3) |
Net Derivatives | 34.3 | 45.9 |
Cash Flow Hedge [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 1.6 | 3.2 |
Total Derivative Liabilities | (4.6) | (1.3) |
Cash Flow Hedge [Member] | Interest Rate and Currency Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency forward contracts | 37.3 | 44 |
Net Investment Hedge [Member] | ||
Derivatives Fair Value [Line Items] | ||
Total Derivative Liabilities | (32.4) | (12) |
Net Derivatives | (32.4) | (12) |
Net Investment Hedge [Member] | Cross-Currency Swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Total Derivative Liabilities | $ (32.4) | $ (12) |
Derivatives and Hedging Activ69
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Parenthetical) (Detail) € in Millions, $ in Millions | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | |
Offsetting Liabilities [Line Items] | ||||
Long-term debt, less current portion | [1] | $ 4,280 | $ 4,266.8 | |
Gross position, Other Assets | 54.5 | 72.2 | ||
Total Derivative Liabilities | (59.3) | (56.8) | ||
Other Current Assets [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Gross position, Other Assets | 25 | 36.2 | ||
Impact of master netting agreements | (0.2) | (24.1) | ||
Net amounts recognized on the Condensed Consolidated Balance Sheet | 24.8 | 12.1 | ||
Other Non-current Assets [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Gross position, Other Assets | 29.5 | 36 | ||
Net amounts recognized on the Condensed Consolidated Balance Sheet | 29.5 | 36 | ||
Other Current Liabilities [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Total Derivative Liabilities | (26.9) | (44.8) | ||
Impact of master netting agreements | 0.2 | 24.1 | ||
Net amounts recognized on the Condensed Consolidated Balance Sheet | (26.7) | (20.7) | ||
Other Non-current Liabilities [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Total Derivative Liabilities | (32.4) | (12) | ||
Net amounts recognized on the Condensed Consolidated Balance Sheet | (32.4) | (12) | ||
Foreign Currency Forward Contracts [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Gross position, Other Assets | 17.2 | 28.2 | ||
Total Derivative Liabilities | (26.9) | $ (44.8) | ||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instruments [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Long-term debt, less current portion | $ 449 | € 400 | ||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Derivatives and Hedging Activ70
Derivatives and Hedging Activities - Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (19.6) | $ 53.9 |
Designated as Hedging Instruments [Member] | Interest Rate and Currency Swap [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | (10) | 17 |
Designated as Hedging Instruments [Member] | Cash Flow Hedge [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | (9.1) | 15.9 |
Designated as Hedging Instruments [Member] | Cash Flow Hedge [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 1.7 | 0.8 |
Designated as Hedging Instruments [Member] | Cash Flow Hedge [Member] | Interest Rate and Currency Swap [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | (10.9) | 15 |
Designated as Hedging Instruments [Member] | Cash Flow Hedge [Member] | Treasury Lock [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.1 | 0.1 |
Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Interest Rate Swaps [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.1 | 0.1 |
Not Designated as Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (10.6) | $ 37.9 |
Derivatives and Hedging Activ71
Derivatives and Hedging Activities - Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments Gain Loss [Line Items] | ||
Gain loss on interest rate and currency swaps | $ (19.6) | $ 53.9 |
Interest expenses | 54.7 | 58.5 |
Interest Rate and Currency Swap [Member] | Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain loss on interest rate and currency swaps | (10) | 17 |
Interest expenses | $ 1 | $ 2 |
Fair Value Measurements and O72
Fair Value Measurements and Other Financial Instruments - Fair Value Hierarchy of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 52.1 | $ 56.3 |
Compensating balance deposits | 56.7 | 56.5 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 44.1 | 48.3 |
Compensating balance deposits | 56.7 | 56.5 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8 | 8 |
Foreign Currency Forward Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | (9.7) | (16.5) |
Foreign Currency Forward Contracts [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | (9.7) | (16.5) |
Interest Rate and Currency Swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | 37.3 | 44 |
Interest Rate and Currency Swap [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | 37.3 | 44 |
Cross-Currency Swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | (32.4) | (12) |
Cross-Currency Swaps [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | $ (32.4) | $ (12) |
Fair Value Measurements and O73
Fair Value Measurements and Other Financial Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Intellibot Robotics Limited Liability Company [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Business acquisition contingent consideration payable period | 10 years |
Fair value of contingent consideration | $ 10 |
Minimum [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Certificates of deposits maturity period | 3 months |
Maximum [Member] | Intellibot Robotics Limited Liability Company [Member] | Selling, General and Administrative Expenses [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Change in fair value recognized in selling, general and administrative expense. | $ 1 |
Fair Value Measurements and O74
Fair Value Measurements and Other Financial Instruments - Carrying Amounts and Estimated Fair Values of Debt (Detail) € in Millions, $ in Millions | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015EUR (€) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Other foreign loans, Carrying Amount | $ 182.9 | $ 165.7 | ||
Other foreign loans, Fair Value | 183.1 | 165.8 | ||
Other domestic loans, Carrying Amount | 175.4 | 81.6 | ||
Other domestic loans, Fair Value | 175.6 | 81.9 | ||
Total debt, Carrying Amount | 4,694.7 | 4,555.3 | ||
Total debt, Fair Value | 4,901.6 | 4,690.8 | ||
Term Loan A Due July 2017 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Credit Facility, Carrying Amount | 249.7 | 249.7 | ||
Credit Facility, Fair Value | 249.7 | 249.7 | ||
Term Loan A Due July 2019 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Credit Facility, Carrying Amount | 1,115.3 | 1,103.8 | ||
Credit Facility, Fair Value | 1,115.3 | 1,103.8 | ||
6.50% Senior Notes Due December 2020 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 422.8 | 422.7 | ||
Senior Notes, Fair Value | 476.9 | 473.7 | ||
4.875% Senior Notes due December 2022 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 419.1 | 418.9 | ||
Senior Notes, Fair Value | 441.9 | 426.5 | ||
5.25% Senior Notes Due April 2023 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 419.2 | 419 | ||
Senior Notes, Fair Value | 448.6 | 436.2 | ||
4.50% Senior Notes due September 2023 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 449.2 | 432.9 | € 400 | |
Senior Notes, Fair Value | 476.6 | 452.7 | ||
5.125% Senior Notes due December 2024 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 419.8 | 419.7 | ||
Senior Notes, Fair Value | 441.2 | 427.6 | ||
5.50% Senior Notes due September 2025 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 396.1 | 396.1 | $ 400 | |
Senior Notes, Fair Value | 419.3 | 410.2 | ||
6.875% Senior Notes Due July 2033 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Senior Notes, Carrying Amount | 445.2 | 445.2 | ||
Senior Notes, Fair Value | $ 473.4 | $ 462.7 |
Fair Value Measurements and O75
Fair Value Measurements and Other Financial Instruments - Carrying Amounts and Estimated Fair Values of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2016 | Jun. 30, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unamortized debt issuance costs | $ 36 | ||||
Term Loan A Due July 2017 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt maturity month and year, Term loan | 2017-07 | 2017-07 | |||
Term Loan A Due July 2019 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt maturity month and year, Term loan | 2019-07 | 2019-07 | |||
6.50% Senior Notes Due December 2020 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 6.50% | 6.50% | |||
Debt maturity month and year, Senior notes | 2020-12 | 2020-12 | |||
4.875% Senior Notes due December 2022 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 4.875% | 4.875% | |||
Debt maturity month and year, Senior notes | 2022-12 | 2022-12 | |||
5.25% Senior Notes Due April 2023 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 5.25% | 5.25% | |||
Debt maturity month and year, Senior notes | 2023-04 | 2023-04 | |||
4.50% Senior Notes due September 2023 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 4.50% | 4.50% | 4.50% | ||
Debt maturity month and year, Senior notes | 2023-09 | 2023-09 | |||
5.125% Senior Notes due December 2024 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 5.125% | 5.125% | |||
Debt maturity month and year, Senior notes | 2024-12 | 2024-12 | |||
5.50% Senior Notes due September 2025 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 5.50% | 5.50% | 5.50% | ||
Debt maturity month and year, Senior notes | 2025-09 | 2025-09 | |||
6.875% Senior Notes Due July 2033 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt interest rate | 6.875% | 6.875% | |||
Debt maturity month and year, Senior notes | 2033-07 | 2033-07 |
Defined Benefit Pension Plans76
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit obligation | $ 50,000,000 |
Estimated reduction in service cost and interest cost | $ 4,000,000 |
Defined Benefit Pension Plans77
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans - Components of Net periodic Benefit Cost (Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.6 | $ 2.8 |
Interest cost | 8.3 | 9.8 |
Expected return on plan assets | (11.6) | (13.2) |
Amortization of net actuarial loss | 2.8 | 2.9 |
Net periodic benefit cost (income) | 2.1 | 2.3 |
Cost (income) of settlement/curtailment | 0.1 | 0.3 |
Total benefit cost (income) | 2.2 | 2.6 |
U.S. Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.3 |
Interest cost | 1.9 | 2.2 |
Expected return on plan assets | (2.5) | (2.9) |
Amortization of net actuarial loss | 0.5 | 0.5 |
Net periodic benefit cost (income) | 0.1 | |
Total benefit cost (income) | 0.1 | |
Non-U.S. Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2.5 | 2.5 |
Interest cost | 6.4 | 7.6 |
Expected return on plan assets | (9.1) | (10.3) |
Amortization of net actuarial loss | 2.3 | 2.4 |
Net periodic benefit cost (income) | 2.1 | 2.2 |
Cost (income) of settlement/curtailment | 0.1 | 0.3 |
Total benefit cost (income) | 2.2 | 2.5 |
Other Employee Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.3 | |
Interest cost | 0.5 | 0.8 |
Amortization of net prior service cost | (0.4) | (0.2) |
Amortization of net actuarial loss | 0.1 | |
Net periodic benefit cost (income) | $ 0.1 | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 18.20% | 25.90% |
Discrete income tax expense (benefit) | $ (8) | |
Effective income tax rate, related to repatriation strategies | 3 | |
Effective income tax rate, reserves due to expiration of statute of limitations and settlements with taxing authorities | $ 4 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 21, 2016 | Feb. 17, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Jul. 09, 2015 | Aug. 31, 2007 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchase program, number of shares authorized to be repurchased | 20,000,000 | |||||||
Treasury stock value | $ 1,284,700,000 | $ 1,265,700,000 | [1] | |||||
Common stock in treasury, shares | 29,994,199 | 29,612,337 | ||||||
Dividends declared date | Mar. 21, 2016 | Feb. 17, 2016 | ||||||
Dividends declared payable date | Jun. 17, 2016 | Mar. 18, 2016 | ||||||
Dividends declared date of record | Jun. 3, 2016 | Mar. 4, 2016 | ||||||
Dividends per share on common stock | $ 0.16 | $ 0.13 | ||||||
Aggregate dividends declared | $ 26,000,000 | |||||||
Common Stock Repurchase Set Two | Share Trading Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Treasury stock value | $ 44,000,000 | |||||||
Number of common stock shares repurchased | 1,014,147 | |||||||
Common Stock Repurchase Set One | Share Trading Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Treasury stock value | $ 32,000,000 | |||||||
Number of common stock shares repurchased | 699,345 | |||||||
Accelerated Shares Repurchase Agreement [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Treasury stock value | $ 25,000,000 | |||||||
Common stock in treasury, shares | 546,574 | |||||||
Common stock repurchase price per share | $ 45.74 | |||||||
Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 | |||||||
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. |
Stockholders' Equity - Total Sh
Stockholders' Equity - Total Share-based Incentive Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total share-based incentive compensation expense | [1] | $ 14.4 | $ 18.3 |
[1] | The amounts included above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock or the expense or income related to SARs and certain cash-based awards. See Stock Appreciation Rights below for further details of SARs. At March 31, 2016 and March 31, 2015, our other cash-based awards were not material to our Condensed Consolidated Balance Sheet or Statement of Operations. |
Stockholders' Equity - Additi81
Stockholders' Equity - Additional Information 1 (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2017 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Period in the beginning of each year to award Performance Share Unit | 90 days | ||||
PSU awards performance period | 3 years | ||||
PSU awards performance period beginning date | Jan. 1, 2016 | ||||
PSU awards performance period Ending date | Dec. 31, 2018 | ||||
Allocated share based compensation expense | [1] | $ 14,400,000 | $ 18,300,000 | ||
Liability for SARs | 4,000,000 | ||||
Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Payment due to exercise SARs | $ 1,000,000 | 4,000,000 | |||
Time - Vesting Inducement Award [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Inducement award granted | 75,000 | ||||
Grant date fair value | $ 39.95 | ||||
Inducement award service expiration date | Dec. 31, 2017 | ||||
Performance - Vesting Inducement Award [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Inducement award granted | 75,000 | ||||
Grant date fair value | $ 12.55 | ||||
Target level for the determination of performance goals and measures | 100.00% | ||||
Performance Period | 2 years | ||||
Performance - Vesting Inducement Award [Member] | Scenario, Forecast [Member] | Tranche One [Member] | | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cumulative total stockholder return | 25.00% | ||||
Performance - Vesting Inducement Award [Member] | Minimum [Member] | Scenario, Forecast [Member] | Tranche One [Member] | | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock Price | $ 43.70 | ||||
Performance - Vesting Inducement Award [Member] | Minimum [Member] | Scenario, Forecast [Member] | Tranche Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock Price | $ 55 | ||||
Three-year PSU Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Performance Period | 3 years | ||||
2016 Three-year PSU Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Target level for the determination of performance goals and measures for adjusted EBITDA goal | 50.00% | ||||
Weighted average return on total share holders | 50.00% | ||||
2016 Three-year PSU Awards [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares to be issued as percentage of target shares under performance incentive plan | 0.00% | ||||
2016 Three-year PSU Awards [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares to be issued as percentage of target shares under performance incentive plan | 200.00% | ||||
2013 Three-year PSU Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares to be issued as percentage of target shares under performance incentive plan | 200.00% | ||||
Shares to be issued under performance incentive plan | 1,074,017 | ||||
Stock Appreciation Rights (“SARs”) [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Allocated share based compensation expense | $ 1,000,000 | $ 3,000,000 | |||
[1] | The amounts included above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock or the expense or income related to SARs and certain cash-based awards. See Stock Appreciation Rights below for further details of SARs. At March 31, 2016 and March 31, 2015, our other cash-based awards were not material to our Condensed Consolidated Balance Sheet or Statement of Operations. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Assumptions Used to Calculate the Grant Date Fair Value (Detail) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
2016 Performance - Vesting Inducement Award [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair value on grant date | $ 12.55 |
Expected price volatility | 24.60% |
Risk-free interest rate | 0.92% |
PSUs - Total Shareholder Return [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair value on grant date | $ 57.14 |
Expected price volatility | 26.50% |
Risk-free interest rate | 0.98% |
Stockholders' Equity - Summar83
Stockholders' Equity - Summary of Number of PSUs Granted and Grant Date Fair Value (Detail) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
PSUs - Total Shareholder Return [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of units granted | shares | 124,755 |
Grant date fair value | $ / shares | $ 57.14 |
PSUs – Adjusted EBITDA [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of units granted | shares | 165,391 |
Grant date fair value | $ / shares | $ 43.10 |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive Income (Loss) - Details of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income (loss), Net of Taxes, beginning balance | $ (820) | [1] | $ (613.8) | ||
Other comprehensive income (loss) before reclassifications | (41.7) | (53.1) | |||
Less: amounts reclassified from accumulated other comprehensive income (loss) | 7.4 | (8.4) | |||
Other comprehensive (loss) income, net of taxes | (34.3) | (61.5) | [2] | ||
Accumulated Other Comprehensive Income (loss), Net of Taxes ending balance | [3] | (854.3) | (675.3) | [4] | |
Unrecognized Pension Items | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income (loss), Net of Taxes, beginning balance | (266) | (250.1) | |||
Other comprehensive income (loss) before reclassifications | (0.2) | (0.4) | |||
Less: amounts reclassified from accumulated other comprehensive income (loss) | 1.9 | 2.4 | |||
Other comprehensive (loss) income, net of taxes | 1.7 | 2 | |||
Accumulated Other Comprehensive Income (loss), Net of Taxes ending balance | [3] | (264.3) | (248.1) | [4] | |
Cumulative Translation Adjustment | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income (loss), Net of Taxes, beginning balance | (564) | (369.9) | |||
Other comprehensive income (loss) before reclassifications | (9.3) | (58.1) | |||
Other comprehensive (loss) income, net of taxes | (9.3) | (58.1) | |||
Accumulated Other Comprehensive Income (loss), Net of Taxes ending balance | [3] | (573.3) | (428) | [4] | |
Unrecognized Gains (Losses) on Derivative Instruments | Net Investment Hedge [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income (loss), Net of Taxes, beginning balance | 1.7 | ||||
Other comprehensive income (loss) before reclassifications | (22.6) | (8) | |||
Other comprehensive (loss) income, net of taxes | (22.6) | (8) | |||
Accumulated Other Comprehensive Income (loss), Net of Taxes ending balance | [3] | (20.9) | (8) | [4] | |
Unrecognized Gains (Losses) on Derivative Instruments | Cash Flow Hedge [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income (loss), Net of Taxes, beginning balance | 8.3 | 6.2 | |||
Other comprehensive income (loss) before reclassifications | (9.6) | 13.4 | |||
Less: amounts reclassified from accumulated other comprehensive income (loss) | 5.5 | (10.8) | |||
Other comprehensive (loss) income, net of taxes | (4.1) | 2.6 | |||
Accumulated Other Comprehensive Income (loss), Net of Taxes ending balance | [3] | $ 4.2 | $ 8.8 | [4] | |
[1] | As of January 1, 2016, we have adopted ASU 2015-03 and ASU 2015-15 with retrospective application. This resulted in a reclassification from other non-current assets to long-term debt, less current portion for debt issuance costs. Refer to Note 2, “Recently Issued Accounting Standards” of the notes to the condensed consolidated financial statements for further details. | ||||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||||
[3] | The ending balance in AOCI includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $(19.4) million as of March 31, 2016 and $68.7 million as of March 31, 2015. | ||||
[4] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified within Accumulated Other Comprehensive Loss (“AOCI”) on the Consolidated Balance Sheet. Refer Note 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Loss) - Details of Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Intra Entity Currency Translation | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative translation adjustment | $ (19.4) | $ 68.7 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive Income (Loss) - Detail of Amount Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Earnings before income tax provision | $ 112.3 | $ 131.3 | ||
Tax (expense) benefit | (20.4) | (34.1) | ||
Net earnings available to common stockholders | 91.9 | 97.2 | [1],[2] | |
Other income (expense) , net | (2.9) | 5.4 | ||
Interest expenses | 54.7 | 58.5 | ||
Total reclassifications for the period | (7.4) | 8.4 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Total reclassifications for the period | [3] | (7.4) | 8.4 | |
Unrecognized Pension Items | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Total reclassifications for the period | (1.9) | (2.4) | ||
Unrecognized Pension Items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Prior service costs | [3],[4] | 0.4 | 0.2 | |
Actuarial losses | [3],[4] | (2.8) | (3) | |
Settlement/curtailment loss | [3],[4] | (0.1) | (0.3) | |
Earnings before income tax provision | [3] | (2.5) | (3.1) | |
Tax (expense) benefit | [3] | 0.6 | 0.7 | |
Net earnings available to common stockholders | [3] | (1.9) | (2.4) | |
Net Gains (Losses) on Cash Flow Hedging Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Earnings before income tax provision | [3] | (9) | 16 | |
Tax (expense) benefit | [3] | 3.5 | (5.2) | |
Net earnings available to common stockholders | [3] | (5.5) | 10.8 | |
Foreign Currency Forward Contracts [Member] | Net Gains (Losses) on Cash Flow Hedging Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other income (expense) , net | [3],[5] | 1.7 | 0.8 | |
Interest Rate Swaps [Member] | Net Gains (Losses) on Cash Flow Hedging Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Interest expenses | [3],[5] | (10.8) | 15.1 | |
Treasury lock | Net Gains (Losses) on Cash Flow Hedging Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Interest expenses | [3],[5] | $ 0.1 | $ 0.1 | |
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | |||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | |||
[3] | Amounts in parenthesis indicate debits to earnings (loss). | |||
[4] | These accumulated other comprehensive components are included in the computation of net periodic benefit costs within cost of sales and selling, general, and administrative expenses on the Condensed Consolidated Statement of Operations. | |||
[5] | These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 11, “Derivatives and Hedging Activities” for additional details |
Other Income (Expense), net - D
Other Income (Expense), net - Details of Other Income (Expense), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income And Expenses [Abstract] | ||
Interest and dividend income | $ 3.6 | $ 3.2 |
Net foreign exchange transaction gains (losses) | (1.5) | (0.5) |
Bank fee expense | (1.4) | (1.1) |
Net gain/(loss) on disposals of business and property and equipment | (2.7) | 3.3 |
Other, net | (0.9) | 0.5 |
Other income (expense), net | $ (2.9) | $ 5.4 |
Net Earnings Per Common Share -
Net Earnings Per Common Share - Calculation of Basic and Diluted Net Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Numerator | |||
Net earnings available to common stockholders | $ 91.9 | $ 97.2 | [1],[2] |
Distributed and allocated undistributed net loss to non-vested restricted stockholders | (0.6) | (0.6) | |
Distributed and allocated undistributed net earnings to common stockholders | 91.3 | 96.6 | |
Distributed net earnings - dividends paid to common stockholders | (25.4) | (27.3) | |
Allocation of undistributed net earnings to common stockholders | $ 65.9 | $ 69.3 | |
Denominator | |||
Weighted average number of common shares outstanding - basic | 195.2 | 208.9 | |
Basic net earnings per common share: | |||
Distributed net earnings to common stockholders | $ 0.13 | $ 0.13 | |
Allocated undistributed net earnings to common stockholders | 0.34 | 0.33 | |
Basic net earnings per common share: | $ 0.47 | $ 0.46 | |
Numerator | |||
Distributed and allocated undistributed net earnings to common stockholders | $ 91.3 | $ 96.6 | |
Add: Allocated undistributed net earnings to unvested restricted stockholders | 0.4 | 0.5 | |
Less: Undistributed net earnings (loss) reallocated to non-vested restricted stockholders | (0.4) | (0.5) | |
Net earnings available to common stockholders - diluted | $ 91.3 | $ 96.6 | |
Denominator | |||
Weighted average number of common shares outstanding - basic | 195.2 | 208.9 | |
Effect of contingently issuable shares | 0.5 | 1.2 | |
Effect of unvested restricted stock units | 0.7 | 0.8 | |
Weighted average number of common shares outstanding - diluted under two-class | 196.4 | 210.9 | |
Effect of unvested restricted stock - participating security | 0.6 | 0.8 | |
Weighted average number of common shares outstanding - diluted under treasury stock | 197 | 211.7 | |
Diluted net earnings per common share | $ 0.46 | $ 0.46 | |
[1] | For the three months ended March 31, 2015, certain amounts related to foreign currency gains and losses, including the remeasurement loss related to Venezuelan subsidiaries in 2015, and the settlement of foreign currency forward contracts were misclassified. Additional revisions were made to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2015. As a result, corresponding changes were made on the Condensed Consolidated Statement of Cash Flows. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. | ||
[2] | For the three months ended March 31, 2015, certain foreign currency translation adjustments were misclassified on the Condensed Consolidated Statement of Comprehensive Income in deferred pension items and unrealized losses on cash flow hedge derivative instruments. See Note 1 “Organization and Basis of Presentation” under the heading “Reclassifications and Revisions” for further discussion of the revisions. |