Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 155,632,640 | ||
Entity Public Float | $ 6,753,286,109 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | [1] | $ 271.7 | $ 594 |
Trade receivables, net of allowance for doubtful accounts of $9.1 in 2018 and $6.5 in 2017 | 473.4 | 552.4 | |
Income tax receivables | 58.4 | 85.1 | |
Other receivables | 81.3 | 90.2 | |
Inventories, net of inventory reserves of $18.1 in 2018 and $15.5 in 2017 | 544.9 | 506.8 | |
Assets held for sale | 0.6 | 4 | |
Prepaid expenses and other current assets | 124.5 | 33.9 | |
Total current assets | 1,554.8 | 1,866.4 | |
Property and equipment, net | 1,036.2 | 998.4 | |
Goodwill | 1,947.6 | 1,939.8 | |
Identifiable intangible assets, net | 101.7 | 83.6 | |
Deferred taxes | 170.5 | 176.2 | |
Other non-current assets | 239.4 | 215.9 | |
Total assets | 5,050.2 | 5,280.3 | |
Current liabilities: | |||
Short-term borrowings | 232.8 | 25.3 | |
Current portion of long-term debt | 4.9 | 2.2 | |
Accounts payable | 765 | 723.8 | |
Current liabilities held for sale | 0 | 2.2 | |
Accrued restructuring costs | 33.5 | 15.4 | |
Income tax payable | 23.5 | 47.3 | |
Other current liabilities | 428.9 | 562 | |
Total current liabilities | 1,488.6 | 1,378.2 | |
Long-term debt, less current portion | 3,236.5 | 3,230.5 | |
Deferred taxes | 20.4 | 28.5 | |
Other non-current liabilities | 653.3 | 490.8 | |
Total liabilities | 5,398.8 | 5,128 | |
Commitments and Contingencies - Note 18 | |||
Stockholders’ (deficit) equity: | |||
Preferred stock, $0.10 par value per share, 50,000,000 shares authorized; no shares issued in 2018 and 2017 | 0 | 0 | |
Common stock, $0.10 par value per share, 400,000,000 shares authorized; shares issued: 231,619,037 in 2018 and 230,080,944 in 2017; shares outstanding: 155,654,370 in 2018 and 168,595,521 in 2017 | 23.2 | 23 | |
Additional paid-in capital | 2,049.6 | 1,939.6 | |
Retained earnings | 1,835.5 | 1,735.2 | |
Common stock in treasury, 75,964,667 shares in 2018 and 61,485,423 shares in 2017 | (3,336.5) | (2,700.6) | |
Accumulated other comprehensive loss, net of taxes: | |||
Unrecognized pension items | (136.4) | (103.4) | |
Cumulative translation adjustment | (744.8) | (694.4) | |
Unrealized net loss on net investment hedges | (41.9) | (46.8) | |
Unrealized net gain (loss) on cash flow hedges | 2.7 | (0.3) | |
Total accumulated other comprehensive loss, net of taxes | (920.4) | (844.9) | |
Total stockholders’ (deficit) equity | (348.6) | 152.3 | |
Total liabilities and stockholders’ (deficit) equity | $ 5,050.2 | $ 5,280.3 | |
[1] | Due to the adoption of ASU 2016-18, the Company now is required to include restricted cash as part of the change in the total cash balance. As a result, amounts which were previously classified as cash flows from financing activities related to Sealed Air continuing operations and amounts which were previously classified as cash flows from investing activities related to restricted cash sold with the sale of Diversey have been reclassified as they are recognized in the total change in cash. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," of the Notes to Consolidated Financial Statements for more information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9.1 | $ 6.5 |
Inventory reserves | $ 18.1 | $ 15.5 |
Preferred stock, par value per share (in dollars 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 (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 231,619,037 | 230,080,944 |
Common stock, shares outstanding | 155,654,370 | 168,595,521 |
Common stock in treasury, shares | 75,964,667 | 61,485,423 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Net sales | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 | |
Cost of sales | [1],[2] | 3,230.6 | 3,049.5 | 2,810.3 |
Gross profit | 1,502.1 | 1,412.1 | 1,401 | |
Selling, general and administrative expenses | 782.3 | 815.6 | 754.3 | |
Amortization expense of intangible assets acquired | 15.7 | 13.1 | 15 | |
Restructuring and other charges | 47.8 | 12.1 | 2.8 | |
Operating profit | 656.3 | 571.3 | 628.9 | |
Interest expense, net | (177.9) | (184.2) | (191.9) | |
Foreign currency exchange loss due to highly inflationary economies | (2.5) | 0 | (1.7) | |
Charge related to Venezuelan subsidiaries | [3] | 0 | 0 | (47.3) |
Other (expense) income, net | [1],[2] | (18.1) | 6.2 | (0.1) |
Earnings before income tax provision | 457.8 | 393.3 | 387.9 | |
Income tax provision | 307.5 | 330.5 | 95.6 | |
Net earnings from continuing operations | 150.3 | 62.8 | 292.3 | |
Gain on sale of discontinued operations, net of tax | 42.8 | 640.7 | 0 | |
Net earnings from discontinued operations, net of tax | 0 | 111.4 | 194.1 | |
Net earnings | $ 193.1 | $ 814.9 | $ 486.4 | |
Basic: | ||||
Continuing operations (in dollars per share) | $ 0.94 | $ 0.34 | $ 1.50 | |
Discontinued operations (in dollars per share) | 0.27 | 3.99 | 0.99 | |
Net earnings per common share - basic (in dollars per share) | 1.21 | 4.33 | 2.49 | |
Diluted: | ||||
Continuing operations (in dollars per share) | 0.94 | 0.33 | 1.48 | |
Discontinued operations (in dollars per share) | 0.26 | 3.96 | 0.98 | |
Net earnings per common share - diluted (in dollars per share) | 1.20 | 4.29 | 2.46 | |
Dividends per common share (in dollars per share) | $ 0.64 | $ 0.64 | $ 0.61 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Basic (in shares) | 159.4 | 186.9 | 194.3 | |
Diluted (in shares) | 160.2 | 188.9 | 197.2 | |
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | |||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. | |||
[3] | Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2, “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the “Impact of Inflation and Currency Fluctuation” section of the Notes to the Consolidated Financial Statements for further details. |
Consolidated Statements of Op_2
Consolidated Statements of Operations - Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Other (expense), net | [1],[2] | $ (6.2) | $ 0.1 |
Cost of sales | [1],[2] | 3,049.5 | 2,810.3 |
Restatement Adjustment | |||
Other (expense), net | 8.1 | 6.4 | |
Cost of sales | [1],[2],[3] | $ 8.1 | $ 6.4 |
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | ||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. | ||
[3] | Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2, “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the “Impact of Inflation and Currency Fluctuation” section of the Notes to the Consolidated Financial Statements for further details. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 193.1 | $ 814.9 | $ 486.4 |
Gross | |||
Unrecognized pension items | (34.2) | 219.1 | (13.1) |
Unrealized gains (losses) on derivative instruments for net investment hedge | 20 | (109.8) | 31.3 |
Unrealized gains (losses) on derivative instruments for cash flow hedge | 3.9 | (11.2) | 0.3 |
Unrealized gains (losses) on derivative instruments for cash flow hedge | (49.2) | 2.2 | (118.1) |
Other comprehensive (loss) income | (59.5) | 100.3 | (99.6) |
Taxes | |||
Unrecognized pension items | 4.8 | (45.8) | 2.4 |
Unrealized gains (losses) on derivative instruments for net investment hedge | (5) | 42 | (12) |
Unrealized gains (losses) on derivative instruments for cash flow hedge | (1.2) | 2.4 | (0.1) |
Foreign currency translation adjustments | (1.2) | 5.3 | (19.8) |
Other comprehensive (loss) income | (2.6) | 3.9 | (29.5) |
Net | |||
Unrecognized pension items | (29.4) | 173.3 | (10.7) |
Unrealized gains (losses) on derivative instruments for net investment hedge | 15 | (67.8) | 19.3 |
Unrealized gains (losses) on derivative instruments for cash flow hedge | 2.7 | (8.8) | 0.2 |
Foreign currency translation adjustments | (50.4) | 7.5 | (137.9) |
Other comprehensive (loss) income | (62.1) | 104.2 | (129.1) |
Comprehensive income, net of taxes | $ 131 | $ 919.1 | $ 357.3 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock in Treasury | Accumulated Other Comprehensive Loss, Net of Taxes |
Beginning Balance at Dec. 31, 2015 | $ 527.1 | $ 22.6 | $ 1,915 | $ 675.2 | $ (1,265.7) | $ (820) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of share-based incentive compensation | 29.4 | 0.2 | 59.9 | (30.7) | ||
Stock issued for profit sharing contribution paid in stock | 37.4 | 2.1 | 35.3 | |||
Repurchases of common stock | (217) | (217) | ||||
Unrecognized pension items, net of taxes | (10.7) | (10.7) | ||||
Foreign currency translation adjustments | (137.9) | (137.9) | ||||
Unrealized gain (loss) on derivative instruments, net of taxes | 19.5 | 19.5 | ||||
Settlement share transfer and excess tax benefit | (2.9) | (2.9) | ||||
Net earnings | 486.4 | 486.4 | ||||
Dividends on common stock | (121.6) | (121.6) | ||||
Ending Balance at Dec. 31, 2016 | 609.7 | 22.8 | 1,974.1 | 1,040 | (1,478.1) | (949.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of share-based incentive compensation | 23 | 0.2 | 45 | 0 | (22.2) | 0 |
Stock issued for profit sharing contribution paid in stock | 22.3 | 0 | 0.5 | 21.8 | ||
Repurchases of common stock | (1,302.1) | (80) | (1,222.1) | |||
Unrecognized pension items, net of taxes | 173.3 | 173.3 | ||||
Foreign currency translation adjustments | 7.5 | 7.5 | ||||
Unrealized gain (loss) on derivative instruments, net of taxes | (76.6) | (76.6) | ||||
Net earnings | 814.9 | 814.9 | ||||
Dividends on common stock | (119.7) | (119.7) | ||||
Ending Balance at Dec. 31, 2017 | 152.3 | 23 | 1,939.6 | 1,735.2 | (2,700.6) | (844.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of share-based incentive compensation | 21.4 | 0.2 | 29.2 | 0 | (8) | 0 |
Stock issued for profit sharing contribution paid in stock | 24.6 | 0.8 | 23.8 | |||
Repurchases of common stock | (571.7) | 80 | (651.7) | 0 | ||
Unrecognized pension items, net of taxes | (29.4) | (29.4) | ||||
Foreign currency translation adjustments | (50.4) | (50.4) | ||||
Unrealized gain (loss) on derivative instruments, net of taxes | 17.7 | 17.7 | ||||
Net earnings | 193.1 | 193.1 | ||||
Dividends on common stock | (102.8) | (102.8) | ||||
Ending Balance at Dec. 31, 2018 | $ (348.6) | $ 23.2 | $ 2,049.6 | $ 1,835.5 | $ (3,336.5) | $ (920.4) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2018 | Jan. 01, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends per share on common stock (in usd per share) | $ 0.64 | $ 0.64 | $ 0.61 | ||
Retained earnings | $ (1,835.5) | $ (1,735.2) | |||
ASU 2018-02 | |||||
Tax Cuts And Jobs Act Of 2017 reclassification from accumulated other comprehensive income to retained earnings Tax Effect | $ 13.4 | $ 13.4 | |||
ASU 2016-16 | |||||
Retained earnings | $ 1 | ||||
ASU 2014-09 | |||||
Retained earnings | $ (2.4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Cash Flows [Abstract] | ||||
Net earnings | $ 193.1 | $ 814.9 | $ 486.4 | |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||||
Depreciation and amortization | 131.2 | 149.3 | 214 | |
Share-based incentive compensation | 29.2 | 44.9 | 59.9 | |
Profit sharing expense | 21.6 | 23.2 | 24.6 | |
Charges related to Venezuelan subsidiaries | 0 | 0 | 46 | |
Provisions for bad debt | 2.3 | 2.9 | 4.3 | |
Provisions for inventory obsolescence | 4.8 | 3.6 | 6.4 | |
Deferred taxes, net | 10.9 | 121 | (61.7) | |
Net (gain) loss on sale of businesses | (42.5) | (641.2) | 1.9 | |
Foreign currency losses (gains) | 13.7 | 29.9 | (4.9) | |
Other non-cash items | 11.1 | 11.1 | 0.9 | |
Changes in operating assets and liabilities: | ||||
Trade receivables, net | (0.9) | (81.4) | (33.9) | |
Inventories | (61.2) | (55.4) | (17.1) | |
Accounts payable | 42.6 | 154.1 | 228 | |
Income tax receivable/payable | (16.4) | (207.1) | 7.3 | |
Other assets and liabilities | 88.5 | 54.6 | (55.2) | |
Net cash provided by operating activities | 428 | 424.4 | 906.9 | |
Cash flows from investing activities: | ||||
Capital expenditures | (168.6) | (183.8) | (275.7) | |
Proceeds from sale of business | 6.8 | 1 | 7.8 | |
Businesses acquired in purchase transactions, net of cash acquired | (68.4) | (119.2) | (5.8) | |
Proceeds from sales of property, equipment and other assets | 0 | 1.7 | 4.9 | |
Loss from settlement of cross currency swaps | 0 | (61.8) | 0 | |
Investment in equity investments | (7.5) | 0 | 0 | |
Impact of sale of Diversey | (15.3) | 2,156.9 | 0 | |
Settlement of foreign currency forward contracts | (11.1) | (8.7) | (46) | |
Other investing activities | (2.6) | 0 | 0 | |
Net cash (used in) provided by investing activities | (266.7) | 1,786.1 | (314.8) | |
Cash flows from financing activities: | ||||
Net proceeds (payments) from short-term borrowings | 224 | (93.7) | (154.2) | |
Proceeds from cross currency swap | 0 | 17.4 | 0 | |
Payments of long-term debt | [1] | (1.6) | (369.5) | (27.1) |
Dividends paid on common stock | (104.1) | (119.7) | (121.6) | |
Repurchases of common stock | [2] | (582.6) | (1,302.1) | (217) |
Payments for debt modification/extinguishment costs | (6.1) | 0 | (0.1) | |
Acquisition of common stock for tax withholding | (7.9) | (22.1) | (30.7) | |
Other financing activities | 0 | 0 | 6.2 | |
Net cash used in financing activities | 478.3 | 1,889.7 | 544.5 | |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (5.3) | (113.4) | (39.2) | |
Cash and cash equivalents | [3] | 594 | 333.7 | 321.7 |
Restricted cash and cash equivalents | [3],[4] | 0 | 0 | 52.9 |
Balance, beginning of period | [3] | 594 | 386.6 | 378.2 |
Net change during the period | [3] | (322.3) | 207.4 | 8.4 |
Balance, end of period | [3] | 271.7 | 594 | 386.6 |
Supplemental Cash Flow Information: | ||||
Interest payments, net of amounts capitalized | 191.4 | 210.8 | 215.1 | |
Income tax payments | 155 | 161.7 | 125.8 | |
Payments related to sale of Diversey | 51.6 | 180.8 | 0 | |
Restructuring payments including associated costs | 12.1 | 49.3 | 66.1 | |
Non-cash items: | ||||
Transfers of shares of our common stock from treasury for our 2017, 2016 and 2015 profit-sharing plan contributions | $ 23.5 | $ 22.3 | $ 37.6 | |
[1] | Payments of borrowings included in financing activities excludes amounts which were paid using cash proceeds from the sale of Diversey. As a result, $755.2 million of payments of borrowings is included within investing activities for a total payment of borrowings of $1.1 billion through the year ended December 31, 2017. | |||
[2] | The Company entered into an accelerated share repurchase agreement with a third-party financial institution to repurchase $400.0 million of the Company’s common stock. The full amount was paid as of December 31, 2017; however, only $320.0 million was used to repurchase shares at that point in time. The ASR program concluded in February 2018. | |||
[3] | Due to the adoption of ASU 2016-18, the Company now is required to include restricted cash as part of the change in the total cash balance. As a result, amounts which were previously classified as cash flows from financing activities related to Sealed Air continuing operations and amounts which were previously classified as cash flows from investing activities related to restricted cash sold with the sale of Diversey have been reclassified as they are recognized in the total change in cash. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," of the Notes to Consolidated Financial Statements for more information. | |||
[4] | Restricted cash and cash equivalents included compensating balance deposits related to certain short-term borrowings and were included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of December 31, 2016. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Payments of borrowings included in investing activities | $ 755,200,000 |
Total payment of borrowings | 1,100,000,000 |
Value, shares repurchased | 1,302,100,000 |
ASR Program | |
Stock repurchase program, authorized amount | 400,000,000 |
Value, shares repurchased | $ 320,000,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations We are a global leader in food safety and security and product protection. We serve an array of end markets including food and beverage processing, food service, retail and commercial and consumer applications. Our focus is on achieving quality profitable growth and increased earnings power through partnering with our customers to provide innovative, sustainable packaging solutions that solve their most complex packaging problems and create differential value for them. We do so through our iconic brands, differentiated technologies, leading market positions, global scale and market access and well-established customer relationships. We conduct substantially all of our business through two wholly-owned subsidiaries, Cryovac, LLC and Sealed Air Corporation (US). 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recently Issued Accounting Standards | Summary of Significant Accounting Policies and Recently Issued Accounting Standards Summary of Significant Accounting Policies Basis of Presentation Our 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. All amounts are in millions, except per share amounts, and are approximate due to rounding. Reclassification As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other (expense) income, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million , respectively. Use of Estimates The preparation of our Consolidated Financial Statements and related disclosures in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the period reported. These estimates include, among other items, assessing the collectability of receivables, asset retirement obligations, the use and recoverability of inventory, the estimation of fair value of financial instruments, assumptions used in the calculation of income taxes, useful lives and recoverability of tangible assets and goodwill and other intangible assets, assumptions used in our defined benefit pension plans and other post-employment benefit plans, estimates related to self-insurance such as the aggregate liability for uninsured claims using historical experience, insurance and actuarial estimates and estimated trends in claim values, fair value measurement of assets, costs for incentive compensation and accruals for commitments and contingencies. We review these estimates and assumptions periodically using historical experience and other factors and reflect the effects of any revisions in the Consolidated Financial Statements in the period we determine any revisions to be necessary. Actual results could differ from these estimates. Financial Instruments We may use financial instruments, such as cross-currency swaps, interest rate swaps, caps and collars, U.S. Treasury lock agreements and foreign currency exchange forward contracts and options related to our borrowing and trade activities. We may use these financial instruments from time to time to manage our exposure to fluctuations in interest rates and foreign currency exchange rates. We do not purchase, hold or sell derivative financial instruments for trading purposes. We face credit risk if the counterparties to these transactions are unable to perform their obligations. Our policy is to have counterparties to these contracts that have at least an investment grade rating. We report derivative instruments at fair value and establish criteria for designation and effectiveness of transactions entered into for hedging purposes. Before entering into any derivative transaction, we identify our specific financial risk, the appropriate hedging instrument to use to reduce this risk, and the correlation between the financial risk and the hedging instrument. We use forecasts and historical data as the basis for determining the anticipated values of the transactions to be hedged. We do not enter into derivative transactions that do not have a high correlation with the underlying financial risk we are trying to reduce. We regularly review our hedge positions and the correlation between the transaction risks and the hedging instruments. We account for derivative instruments as hedges of the related underlying risks if we designate these derivative instruments as hedges and the derivative instruments are effective as hedges of recognized assets or liabilities, forecasted transactions, unrecognized firm commitments or forecasted intercompany transactions. We record gains and losses on derivatives qualifying as cash flow hedges in AOCL, to the extent that hedges are effective and until the underlying transactions are recognized on the Consolidated Statements of Operations, at which time we recognize the gains and losses on the Consolidated Statements of Operations. We recognize gains and losses on qualifying fair value hedges and the related loss or gain on the hedged item attributable to the hedged risk on the Consolidated Statements of Operations. Generally, 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. Any deferred gains or losses associated with derivative instruments are recognized on the Consolidated Statements of Operations over the period in which the income or expense on the underlying hedged transaction is recognized. See Note 13, “Derivatives and Hedging Activities,” of the Notes to Consolidated Financial Statements for further details. Foreign Currency Translation In non-U.S. locations that are not considered highly inflationary, we translate the balance sheets at the end of period exchange rates with translation adjustments accumulated in stockholders’ equity on our Consolidated Balance Sheets. We translate the statements of operations at the average exchange rates during the applicable period. We translate assets and liabilities of our operations in countries with highly inflationary economies at the end of period exchange rates, except that nonmonetary asset and liability amounts are translated at historical exchange rates. In countries with highly inflationary economies, we translate items reflected in the statements of operations at average rates of exchange prevailing during the period, except that nonmonetary amounts are translated at historical exchange rates. Impact of Inflation and Currency Fluctuation Argentina Economic and political events in Argentina have continued to expose us to heightened levels of foreign currency exchange risk. As of July 1, 2018, Argentina was designated as a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the Argentine peso as the functional currency for our subsidiaries in Argentina. All Argentine peso-denominated monetary assets and liabilities were remeasured into U.S. dollars using the current exchange rate available to us, and any changes in the exchange rate are reflected in net foreign exchange transaction loss, within other (expense) income, net related to our Argentinian subsidiaries on the Consolidated Statements of Operations. For the year ended December 31, 2018 , the Company recorded a $2.4 million remeasurement loss. The exchange rate as of December 31, 2018 was 37.6679 . We will continue to evaluate each reporting period the appropriate exchange rate to remeasure our financial statements based on the facts and circumstances as applicable. Venezuela Economic and political events in Venezuela exposed 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 Consolidated Statements of Operations. Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in 2016 to cease operations in the country. Foreign exchange control regulations have affected our Venezuelan subsidiaries’ ability to obtain inventory and maintain normal production. This resulted in total costs incurred of $49.4 million which included the following (i) a voluntary reduction in headcount including severance and termination benefits for employees of $0.3 million , (ii) depreciation and amortization expense related to fixed assets and intangibles of $0.5 million , (iii) inventory reserves of $0.4 million , (iv) income tax expense of $0.9 million and (v) the reclassification of $47.3 million of cumulative translation adjustment resulting in a charge to Net earnings as the Company’s decision to cease operations is similar to a substantially complete liquidation. The Company reported a remeasurement loss of $3.4 million (of which $1.7 million was recorded to net earnings from discontinued operations, net of taxes) for the year ended December 31, 2016. The Company reported a remeasurement loss of less than $1.0 million for the year ended December 31, 2017 (which included less than $0.1 million of earnings related to continuing operations). The impact of remeasurement was not material for the year ended December 31, 2018, due to the cessation of operations in Venezuela. Commitments and Contingencies — Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of these actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of these matters and whether a reasonable estimation of the probable loss, if any, can be made. In assessing probable losses, we make estimates of the amount of insurance recoveries, if any. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that disputed matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. We expense legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred. Revenue Recognition Revenue from contracts with customers is recognized using a five-step model consisting of the following: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Performance obligations are satisfied when the Company transfers control of a good or service to a customer, which can occur over time or at a point in time. The amount of revenue recognized is based on the consideration to which the Company expects to be entitled in exchange for those goods or services, including the expected value of variable consideration. The customer’s ability and intent to pay the transaction price is assessed in determining whether a contract exists with the customer. If collectability of substantially all of the consideration in a contract is not probable, consideration received is not recognized as revenue unless the consideration is nonrefundable and the Company no longer has an obligation to transfer additional goods or services to the customer or collectability becomes probable. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales on the Consolidated Statements of Operations. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments impact the amount of net sales recognized by us in the period of adjustment. Charges for rebates and other allowances were approximately 5% of sales in 2018 , 2017 and 2016 . Refer to Note 3, "Revenue Recognition, Contracts with Customers," of the Notes to Consolidated Financial Statements for further discussion of revenue. Assets recognized for the costs to obtain or fulfill a contract The Company recognizes incremental costs to fulfill a contract as an asset if such incremental costs are expected to be recovered, relate directly to a contract or anticipated contract, and generate or enhance resources that will be used to satisfy performance obligations in the future. The Company recognizes incremental costs to obtain a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. For example, the Company generally expenses sales commissions when incurred because the contract term is less than 1 year. These costs are recorded within sales and marketing expenses. Costs for shipping and handling activities performed after a customer obtains control of a good are accounted for as costs to fulfill a contract and are included in cost of goods sold. Shipping and Handling Costs Costs incurred for the transfer and delivery of goods to customers are recorded as a component of cost of sales. Research and Development We expense research and development costs as incurred. Research and development costs were $80.8 million in 2018 , $91.8 million in 2017 and $88.0 million in 2016 . Share-Based Incentive Compensation At the 2014 Annual Meeting, the 2014 Omnibus Incentive Plan (the “Omnibus Plan”) was approved by our stockholders. At the 2018 Annual Shareholders' Meeting, the Board of Directors adopted, and our shareholders approved an amendment and restatement to the 2014 Omnibus Incentive Plan. See Note 19, “Stockholders’ Equity (Deficit),” of the Notes to the Consolidated Financial Statements for further information on this plan. We record share-based compensation awards exchanged for employee services at fair value on the date of grant and record the expense for these awards in cost of sales and in selling, general and administrative expense, as applicable, on our Consolidated Statements of Operations over the requisite employee service period. Share-based incentive compensation expense includes an estimate for forfeitures and anticipated achievement levels and is generally recognized over the expected term of the award on a straight-line basis. The Company accelerates expense on performance based awards using a graded vesting schedule for employees who meet retirement eligibility requirements prior to the end of the award’s service period. For performance-based awards, the Company reassesses at each reporting date whether achievement of the performance condition is probable and accrues compensation expense if and when achievement of the performance condition is probable. For performance awards with market based conditions, the fair value of the award is determined at the grant date and is recognized at 100% over the performance period regardless of actual market condition performance. Income Taxes We file a consolidated U.S. federal income tax return and our non-U.S. subsidiaries file income tax returns in their respective local jurisdictions. We provide for income taxes on those portions of our foreign subsidiaries’ accumulated earnings that we believe are not reinvested indefinitely in our businesses. We account for income taxes under the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax benefit carryforwards. We determine deferred tax assets and liabilities at the end of each period using enacted tax rates. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon settlement with tax authorities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense on our Consolidated Statements of Operations. See Note 17, “Income Taxes,” of the Notes to Consolidated Financial Statements for further discussion. Cash and Cash Equivalents We consider highly liquid investments with original maturities of three months or less to be cash equivalents. Our policy is to invest cash in excess of short-term operating and debt service requirements in cash equivalents. Cash equivalents are stated at cost, which approximates fair value because of the short-term maturity of the instruments. Our policy is to transact with counterparties that are rated at least A- by Standard & Poor’s and A3 by Moody’s. Some of our operations are located in countries that are rated below A- or A3. In this case, we try to minimize our risk by holding cash and cash equivalents at financial institutions with which we have existing global relationships whenever possible, diversifying counterparty exposures and minimizing the amount held by each counterparty and within the country in total. Accounts Receivable Securitization Programs 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 an issuer of commercial paper administered by these banks. The wholly-owned subsidiary retains the receivables it purchases from the operating subsidiaries. Any transfers of undivided fractional ownership interests of receivables under the U.S. receivables securitization program to the two banks and an issuer 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 Consolidated Balance Sheets. 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 Consolidated Balance Sheets. We have a European accounts receivable securitization and purchase program with a special purpose vehicle, or SPV, two banks and a group of our European subsidiaries. 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 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 Consolidated Balance Sheets. 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 Consolidated Balance Sheets. See Note 9, “Accounts Receivable Securitization Programs,” of the Notes to Consolidated Financial Statements for further details. Accounts Receivable Factoring Agreements The Company has entered into factoring agreements, to sell certain receivables to unrelated third-party financial institutions. We account for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from Accounts receivable, net on the Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. Gross amounts factored under this program at December 31, 2018 and 2017 were $249.8 million and $181.1 million respectively. The fees associated with transfer of receivables for all programs were approximately $2 million for the years ended December 31, 2018 and 2017. Trade Receivables, Net In the normal course of business, we extend credit to customers that satisfy pre-defined credit criteria. Trade receivables, which are included on the Consolidated Balance Sheets, are stated at amounts due from our customers net of allowances for doubtful accounts. We maintain trade receivable allowances for estimated losses resulting from the likelihood of failure of our customers to make required payments. An additional allowance may be required if the financial condition of our customers deteriorate. Inventories, Net Our inventories are determined using the FIFO method or a weighted average for some raw materials. We state inventories at the lower of cost or net realizable value. Costs related to inventories include raw materials, direct labor and manufacturing overhead which are included in cost of sales on the Consolidated Statements of Operations. Property and Equipment, Net We state property and equipment at cost, except for property and equipment that have been impaired, for which we reduce the carrying amount to the estimated fair value at the impairment date. We capitalize significant improvements and charge repairs and maintenance costs that do not extend the lives of the assets to expense as incurred. We remove the cost and accumulated depreciation of assets sold or otherwise disposed of from the accounts and recognize any resulting gain or loss upon the disposition of the assets. We depreciate the cost of property and equipment over their estimated useful lives on a straight-line basis as follows: buildings — 20 to 40 years; machinery and equipment — 5 to 10 years; and other property and equipment — 2 to 10 years. Goodwill and Identifiable Intangible Assets, Net Goodwill represents the excess of the aggregate of the following (1) consideration transferred, (2) the fair value of any noncontrolling interest in the acquiree and, (3) if the business combination is achieved in stages, the acquisition-date fair value of our previously held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Identifiable intangible assets consist primarily of patents, licenses, trademarks, trade names, customer lists and relationships, non-compete agreements and technology based intangibles and other contractual agreements. We amortize finite lived identifiable intangible assets over the shorter of their stated or statutory duration or their estimated useful lives, generally ranging from 3 to 17 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. See Note 8, “Goodwill and Identifiable Intangible Assets, net,” of the Notes to Consolidated Financial Statements for further details. Impairment and Disposal of Long-Lived Assets For finite-lived intangible assets, such as customer relationships, contracts, intellectual property, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we perform a review for impairment. We calculate the undiscounted value of the projected cash flows associated with the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is found to be greater, we record an impairment loss for the excess of book value over the fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate. For indefinite-lived intangible assets, such as trademarks and trade names, each year and whenever impairment indicators are present, we determine the fair value of the asset and record an impairment loss for the excess of book value over the fair value, if any. In addition, in all cases of an impairment review we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. See Note 8, “Goodwill and Identifiable Intangible Assets, net,” of the Notes to Consolidated Financial Statements for additional details. Self-Insurance We retain the obligation for specified claims and losses related to property, casualty, workers’ compensation and employee benefit claims. We accrue for outstanding reported claims and claims that have been incurred but not reported based upon management’s estimates of the aggregate liability for retained losses using historical experience, insurance company estimates and the estimated trends in claim values. Our estimates include management’s and independent insurance companies’ assumptions regarding economic conditions, the frequency and severity of claims and claim development patterns and settlement practices. These estimates and assumptions are monitored and evaluated on a periodic basis by management and are adjusted when warranted by changing circumstances. Although management believes it has the ability to adequately project and record estimated claim payments, actual results could differ significantly from the recorded liabilities. Pensions For a number of our U.S. and international employees, we maintain defined benefit pension plans. We are required to make assumptions regarding the valuation of projected benefit obligations and the performance of plan assets for our defined benefit pension plans. We review and approve the assumptions made by our third-party actuaries regarding the valuation of benefit obligations and performance of plan assets. The principal assumptions concern the discount rate used to measure future obligations, the expected future rate of return on plan assets, the expected rate of future compensation increases and various other actuarial assumptions. The measurement date used to determine benefit obligations and plan assets is December 31. In general, significant changes to these assumptions could have a material impact on the costs and liabilities recorded in our Consolidated Financial Statements. See Note 15, “Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans,” of the Notes to Consolidated Financial Statements for information about the Company’s benefit plans. Net Earnings per Common Share Basic earnings per common share is calculated by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the period. Non-vested share-based payment awards that contain non-forfeitable rights to dividends are treated as participating securities and therefore included in computing earnings per common share using the “two-class method.” The two-class method is an earnings allocation formula that calculates basic and diluted net earnings per common share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Non-vested restricted stock issued under our Omnibus Plan prior to January 1, 2018 are considered participating securities since these securities have non-forfeitable rights to dividends when we declare a dividend during the contractual vesting period of the share-based payment award and are therefore included in our earnings allocation formula using the two-class method. When calculating diluted net earnings per common share, the more dilutive effect of applying either of the following is presented: (a) the two-class method (described above) assuming that the participating security is not exercised or converted, or, (b) the treasury stock method for the participating security. Our diluted net earnings per common share for all periods presented was calculated using the two-class method since such method was more dilutive. See Note 22, “Net Earnings Per Common Share,” of the Notes to Consolidated Financial Statements for further discussion. Recently Adopted Accounting Standards In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). As a result of the TCJA, this ASU was issued to provide entities with the option to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings. The Company elected to early adopt ASU 2018-02 as of October 1, 2018 in which the impact was applied to the period of adoption. As part of the adoption, the Company has elected to reclassify the tax effects of the TCJA from AOCL to retained earnings. The adoption of the ASU 2018-02 resulted in a $13.4 million reclassification from AOCL to retained earnings due to the stranded tax effects of the TCJA. The primary AOCL balances which were impacted by the TCJA were unrecognized pension items and unrecognized gains (losses) on derivative instruments. In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). This update is intended to align the financial statements with an entity's risk management activities. ASU 2017-12 allows for changes in the designation and measurement of hedges as well as expands the disclosures of hedge results. The amendments in ASU 2017-12 are effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. The Company elected to early adopt ASU 2017-12 as of January 1, 2018. The adoption did not have an impact on the Company's Consolidated Financial Results. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 amends the considerations for determining what events require modification accounting. This new guidance requires an entity to consider the fair value of an award before and after modification, the vesting conditions of the modified award and the classification of the modified award as an equity instrument. The amendments in ASU 2017-09 are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2017-09 on January 1, 2018. The adoption did not have an impact on the Company's Consolidated Financial Results. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Benefit Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. Thi |
Revenue Recognition, Contracts
Revenue Recognition, Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Contracts with Customers | Revenue Recognition, Contracts with Customers Description of Revenue Generating Activities We employ sales, marketing and customer service personnel throughout the world who sell and market our products and services to and/or through a large number of distributors, fabricators, converters, e-commerce and mail order fulfillment firms, and contract packaging firms as well as directly to end-users such as food processors, foodservice businesses, supermarket retailers, pharmaceutical companies, healthcare facilities, medical device manufacturers, and other manufacturers. As discussed in Note 5, "Segments," of the Notes to Consolidated Financial Statements, our reporting segments include: Food Care and Product Care. Our Food Care applications are largely sold directly to end customers, while most of our Product Care products are sold through business supply distributors. Food Care: Food Care largely serves perishable food processors, predominantly in fresh red meat, smoked and processed meats, poultry and dairy (solids and liquids) markets worldwide, and maintains a leading position in target applications. Food Care provides integrated packaging materials and equipment solutions to provide food safety, shelf life extension, and total cost optimization with innovative, sustainable packaging that enables customers to reduce costs and enhance their brands in the marketplace. Product Care: Product Care packaging solutions are utilized across many global markets and are especially valuable to e-Commerce, electronics and industrial manufacturing. Product Care solutions are designed to protect valuable goods in shipping, and drive operational excellence for our customers, increasing their order fulfillment velocity while minimizing material usage, dimensional weight and packaging labor requirements. The acquisition of Fagerdala in 2017 and AFP in 2018 enabled us to further expand our protective packaging solutions in electronics, transportation and industrial markets with turnkey, custom-engineered, fabricated solutions. Product Care benefits from the continued expansion of e-Commerce, increasing freight costs, scarcity of labor, and increasing demand for more sustainable packaging. Product Care solutions are largely sold through supply distributors that sell to business/industrial end-users. Product Care solutions are additionally sold directly to fabricators, original equipment manufacturers, contract manufacturers, third-party logistics partners, e-commerce/fulfillment operations, and at various retail centers. Product Care solutions are marketed under industry-leading brands including Bubble Wrap ® packaging, Cryovac ® performance shrink films, Instapak ® polyurethane foam packaging systems, and Korrvu ® suspension and retention packaging. Identify Contract with Customer: For Sealed Air, the determination of whether an arrangement meets the definition of a contract under Topic 606 depends on whether it creates enforceable rights and obligations. While enforceability is a matter of law, we believe that enforceable rights and obligations in a contract must be substantive in order for the contract to be in scope of Topic 606. That is, the penalty for noncompliance must be significant relative to the minimum obligation. Fixed or minimum purchase obligations with penalties for noncompliance are the most common examples of substantive enforceable rights present in our contracts. We determined that the contract term is the period of enforceability outlined by the terms of the contract. This means that in many cases, the term stated in the contract is different than the period of enforceability. After the minimum purchase obligation is met, subsequent sales are treated as separate contracts on a purchase order by purchase order basis. If no minimum purchase obligation exists, each purchase order represents the contract. Performance Obligations: The most common goods and services determined to be distinct performance obligations are consumables/materials, equipment sales, and maintenance. Free on loan and leased equipment is typically identified as a separate lease component in scope of Topic 840. The other goods or services promised in the contract with the customer in most cases do not represent performance obligations because they are neither separate nor distinct, or they are not material in the context of the contract. Transaction Price and Variable Consideration: Sealed Air has many forms of variable consideration present in its contracts with customers, including rebates and other discounts. Sealed Air estimates variable consideration using either the expected value method or the most likely amount method as described in the standard. We include in the transaction price some or all of an amount of variable consideration estimated to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For all contracts that contain a form of variable consideration, Sealed Air estimates at contract inception, and periodically throughout the term of the contract, what volume of goods and/or services the customer will purchase in a given period and determines how much consideration is payable to the customer or how much consideration Sealed Air would be able to recover from the customer based on the structure of the type of variable consideration. In most cases the variable consideration in contracts with customers results in amounts payable to the customer by Sealed Air. Sealed Air adjusts the contract transaction price based on any changes in estimates each reporting period and performs an inception to date cumulative adjustment to the amount of revenue previously recognized. When the contract with a customer contains a minimum purchase obligation, Sealed Air only has enforceable rights to the amount of consideration promised in the minimum purchase obligation through the enforceable term of the contract. This amount of consideration, plus any variable consideration, makes up the transaction price for the contract. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments of transaction price impact the amount of net sales recognized by us in the period of adjustment. Revenue recognized for the year ended December 31, 2018 from performance obligations satisfied in previous reporting periods was $5.6 million . The Company does not adjust consideration in contracts with customers for the effects of a significant financing component if the Company expects that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of contracts. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales on the Consolidated Statements of Operations. Allocation of Transaction Price: Sealed Air determines the standalone selling price for a performance obligation by first looking for observable selling prices of that performance obligation sold on a standalone basis. If an observable price is not available, we estimate the standalone selling price of the performance obligation using one of the three suggested methods in the following order of preference: adjusted market assessment approach, expected cost plus a margin approach, and residual approach. Sealed Air often offers rebates to customers in their contracts that are related to the amount of consumables purchased. We believe that this form of variable consideration should only be allocated to consumables because the entire amount of variable consideration relates to the customer’s purchase of and Sealed Air’s efforts to provide consumables. Additionally, Sealed Air has many contracts that have pricing tied to third-party indices. We believe that variability from index-based pricing should be allocated specifically to consumables because the pricing formulas in these contracts are related to the cost to produce consumables. Transfer of Control: Revenue is recognized upon transfer of control to the customer. Revenue for consumables and equipment sales is recognized based on shipping terms, which is the point in time the customer obtains control of the promised goods. Maintenance revenue is recognized straight-line on the basis that the level of effort is consistent over the term of the contract. Lease components within contracts with customers are recognized in accordance with Topic 840. Disaggregated Revenue For the year ended December 31, 2018 , revenues from contracts with customers summarized by Segment Geography were as follows: Year Ended December 31, 2018 (In millions) Food Care Product Care Total North America $ 1,444.1 $ 1,085.5 $ 2,529.6 EMEA (1) 651.6 382.1 1,033.7 Latin America 368.5 47.9 416.4 APAC (2) 423.8 300.1 723.9 Topic 606 Segment Revenue 2,888.0 1,815.6 4,703.6 Non-Topic 606 Revenue (Leasing) 20.1 9.0 29.1 Total $ 2,908.1 $ 1,824.6 $ 4,732.7 (1) EMEA = Europe, Middle East and Africa (2) APAC = Asia, Australia and New Zealand Contract Balances The time between when a performance obligation is satisfied and when billing and payment occur is closely aligned, with the exception of equipment accruals. An equipment accrual is a contract offering, whereby a customer is incentivized to use a portion of the consumables transaction price for future equipment purchases. Long-term contracts that include an equipment accrual create a timing difference between when cash is collected and the performance obligation is satisfied, resulting in a contract liability (unearned revenue). The opening and closing balances of contract liabilities arising from contracts with customers as of December 31, 2018 were as follows: (In millions) December 31, 2017 January 1, 2018, as adjusted December 31, 2018 Contract liabilities 3.1 5.5 10.4 Revenue recognized in the year ended December 31, 2018 that was included in the contract liability balance at the beginning of the period was $4.9 million . This revenue was driven primarily by equipment performance obligations being satisfied. The contract liability balance represents deferred revenue, primarily related to equipment accruals. The increase in 2018 to deferred revenue was driven predominately by new contracts. Remaining Performance Obligations Our enforceable contractual obligations tend to be short term in nature, and the following table does not include the transaction price of any remaining performance obligations that are part of the contracts with expected durations of less than one year. Additionally, the following table summarizes the estimated transaction price from contracts with customers allocated to performance obligations or portions of performance obligations that have not yet been satisfied as of December 31, 2018 , as well as the expected timing of recognition of that transaction price. (In millions) Short-Term Long-Term Total Total transaction price $ 1.6 $ 8.8 $ 10.4 |
Discontinued Operations, Divest
Discontinued Operations, Divestitures and Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations, Divestitures and Acquisitions | Discontinued Operations, Divestitures and Acquisitions Discontinued Operations On March 25, 2017, we entered into a definitive agreement to sell our Diversey Care division and the food hygiene and cleaning business within our Food Care division (collectively, "Diversey") for gross proceeds of USD equivalent of $ 3.2 billion , subject to customary closing conditions. The transaction was completed on September 6, 2017. We recorded a net gain on the sale of Diversey of $640.7 million , net of taxes of $197.5 million . During 2018 , we recorded an additional net gain on the sale of Diversey of $42.8 million , net of taxes. This was related to the final net working capital settlement as well as the release of tax indemnity reserves upon expiration of statute of limitations. We have classified the operating results of Diversey, together with certain costs related to the divestiture transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016. Summary operating results of Diversey were as follows: Year Ended December 31, (In millions) 2017 2016 Net sales $ 1,669.0 $ 2,567.0 Cost of sales 950.4 1,440.3 Gross profit 718.6 1,126.7 Selling, general and administrative expenses 538.3 859.2 Amortization expense of intangible assets acquired 23.9 79.9 Operating profit 156.4 187.6 Other expense, net (17.0 ) (9.7 ) Earnings from discontinued operations before income tax provision (benefit) 139.4 177.9 Income tax provision (benefit) from discontinued operations (1) 28.0 (16.2 ) Net earnings from discontinued operations $ 111.4 $ 194.1 (1) For the year ended December 31, 2017 , net earnings from discontinued operations included tax expense of $28.0 million , primarily driven by a change in our repatriation strategy and offset by a favorable earnings mix in jurisdictions with lower rates. For the year ended December 31, 2016 , net earnings from discontinued operations were impacted by tax benefits of $16.2 million , primarily related to the release of reserves and favorable earnings mix in jurisdictions with lower tax rates. The following table presents selected financial information regarding cash flows of Diversey in the Consolidated Statements of Cash Flows but are within discontinued operations in the Consolidated Statements of Operations: Year Ended December 31, (In millions) 2017 2016 Non-cash items included in net earnings from discontinued operations: Depreciation and amortization $ 29.3 $ 111.4 Share-based incentive compensation 10.2 12.0 Profit sharing expense 3.0 2.9 Provision for bad debt 2.3 5.0 Capital expenditures 11.9 17.8 The amounts disclosed in the tables above have been excluded from disclosures unless otherwise noted. On April 1, 2017, the Diversey Care division acquired the UVC disinfection portfolio of Daylight Medical, a manufacturer of innovative medical devices. The preliminary fair value of the consideration transferred was approximately $ 25.2 million which included $ 3.5 million of cash paid at closing as well as a preliminary fair value of $ 21.7 million related to $14.4 million of noncontingent consideration which will be paid in the future and a $7.3 million of preliminary fair value for liability-classified contingent consideration. The assets and liabilities acquired as part of the acquisition are transferred with the sale of Diversey. Divestitures Divestiture of Embalagens Ltda. On August 1, 2017, we entered into an agreement to sell our polystyrene food tray business in Guarulhos, Brazil for a gross purchase price of R$26.9 million (or $8.2 million as of closing date of March 19, 2018). The purchase price was subject to working capital, cash and debt adjustments, which were finalized in the fourth quarter of 2018 for R $1.6 million (or $0.4 million ). For the year ended December 31, 2018 , the Company recognized a net gain on the sale of $1.4 million , on the Consolidated Statements of Operations. Acquisitions Acquisition of AFP On August 1, 2018, the Company acquired AFP, Inc., a leading, privately held fabricator of foam, corrugated, molded pulp and wood packaging solutions, to join its Product Care division. This acquisition further expands our protective packaging solutions in the electronics, transportation and industrial markets with custom-engineered applications. We acquired 100% of AFP shares for an estimated consideration of $74.1 million , excluding $2.9 million of cash acquired. The following table summarizes the consideration transferred to acquire AFP and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation Measurement Period Revised Preliminary Allocation (In millions) As of August 1, 2018 Adjustments As of December 31, 2018 Total consideration transferred $ 70.8 $ 3.3 $ 74.1 Assets: Cash and cash equivalents 2.9 — 2.9 Trade receivables, net 30.8 — 30.8 Inventories, net 7.1 0.1 7.2 Prepaid expenses and other current assets 0.7 — 0.7 Property and equipment, net 3.5 (0.4 ) 3.1 Identifiable intangible assets, net 18.6 4.1 22.7 Goodwill 21.6 (2.0 ) 19.6 Other non-current assets 0.7 (0.4 ) 0.3 Total assets $ 85.9 $ 1.4 $ 87.3 Liabilities: Current portion of long-term debt — 0.1 0.1 Accounts payable 13.8 (2.2 ) 11.6 Other current liabilities 1.3 — 1.3 Long-term debt, less current portion — 0.2 0.2 Total liabilities $ 15.1 $ (1.9 ) $ 13.2 The following tables summarizes the identifiable intangible assets, net and their useful life. Amount Useful life (in millions) (in years) Customer relationships $ 18.6 11 Trademarks and tradenames 4.1 5 Total intangible assets with definite lives $ 22.7 Acquisition of Fagerdala On October 2, 2017, the Company acquired Fagerdala Singapore Pte Ltd. ("Fagerdala"), a manufacturer and fabricator of polyethylene foam based in Singapore, to join its Product Care division. We acquired 100% of Fagerdala shares for estimated consideration of S$144.7 million , or $106.2 million , net of cash acquired of $13.3 million , inclusive of purchase price adjustments which were finalized in the third quarter of 2018. We acquired Fagerdala to leverage its manufacturing footprint in Asia, expertise in foam manufacturing and fabrication, and commercial organization to grow sales in the consumer electronics, medical equipment and devices, automotive, temperature assurance, and e-commerce fulfillment sectors. The following table summarizes the consideration transferred to acquire Fagerdala and the final allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation Measurement Period Final Allocation (In millions) As of October 2, 2017 Adjustments As of December 31, 2018 Total consideration transferred $ 106.6 $ (0.4 ) $ 106.2 Assets: Cash and cash equivalents 13.3 — 13.3 Trade receivables, net 22.4 — 22.4 Inventories, net 10.0 0.1 10.1 Prepaid expenses and other current assets 8.4 — 8.4 Property and equipment, net 23.3 — 23.3 Identifiable intangible assets, net 41.4 0.7 42.1 Goodwill 39.3 (1.5 ) 37.8 Total assets $ 158.1 $ (0.7 ) $ 157.4 Liabilities: Short-term borrowings 14.0 — 14.0 Accounts payable 6.9 — 6.9 Other current liabilities 15.1 (0.1 ) 15.0 Long-term debt, less current portion 3.8 — 3.8 Non-current deferred taxes 11.7 (0.2 ) 11.5 Total liabilities $ 51.5 $ (0.3 ) $ 51.2 The following tables summarizes the identifiable intangible assets, net and their useful life. Amount Useful life (in millions) (in years) Customer relationships $ 25.4 17 Trademarks and tradenames 10.6 15 Technology 6.1 13 Total intangible assets with definite lives $ 42.1 Acquisition of Deltaplam On August 1, 2017, the Company acquired Deltaplam Embalagens Indústria e Comércio Ltda ("Deltaplam"), a family owned and operated Brazilian flexible packaging manufacturer, to join its Food Care division. The preliminary fair value of consideration transferred was approximately $25.8 million . We recorded the fair value of the assets acquired and liabilities assumed on the acquisition date, which included a preliminary allocation of $8.1 million of goodwill and $7.4 million of intangible assets. The final fair value of consideration transferred was $25.3 million , which included $9.7 million of goodwill and $5.9 million of intangible assets. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company’s segment reporting structure consists of two reportable segments and a Corporate category as follows: • Food Care; and • Product Care. The Company’s Food Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products and management team. Corporate 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. The Company evaluates performance of the reportable segments based on the results of each segment. The Company allocates expense to each segment based on various factors including direct usage of resources, allocation of headcount, allocation of software licenses or, in cases where costs are not clearly delineated, costs may be allocated on portion of either net trade sales or an expense factor such as cost of goods sold. To accelerate productivity improvements and elimination of operational redundancies, the Company implemented a change in allocation of Corporate expenses. These expenses are now allocated to Food Care and Product Care segments. For comparison purposes, the Company presented 2017 and 2016 results to reflect the revised allocation of these costs. This change in expense allocation has no impact on the Company's reportable segments or total Company operating results. We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Adjusted EBITDA. We also allocate and disclose restructuring and other charges and impairment of goodwill and other intangible assets by segment, although they are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges and impairment of goodwill and other intangible assets are categorized as Special Items. The accounting policies of the reportable segments and Corporate are the same as those applied to the Consolidated Financial Statements. Refer to "Non-U.S. GAAP Information" for additional details on the use and calculation of our non-U.S. GAAP measures presented below. The following tables show net sales and Adjusted EBITDA by our segment reporting structure: Year Ended December 31, (In millions) 2018 2017 2016 Net Sales Food Care $ 2,908.1 $ 2,815.2 $ 2,686.8 As a % of Total Company net sales 61.4 % 63.1 % 63.8 % Product Care 1,824.6 1,646.4 1,524.5 As a % of Total Company net sales 38.6 % 36.9 % 36.2 % Total Company Net Sales $ 4,732.7 $ 4,461.6 $ 4,211.3 Year Ended December 31, (In millions) 2018 2017 2016 Adjusted EBITDA from continuing operations Food Care $ 577.8 $ 538.1 $ 520.1 Adjusted EBITDA Margin 19.9 % 19.1 % 19.4 % Product Care 318.6 292.2 284.8 Adjusted EBITDA Margin 17.5 % 17.7 % 18.7 % Corporate (6.9 ) 3.0 4.3 Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations $ 889.5 $ 833.3 $ 809.2 Adjusted EBITDA Margin 18.8 % 18.7 % 19.2 % The following table shows a reconciliation of U.S. GAAP net earnings from continuing operations to Non-U.S. GAAP Total Company Adjusted EBITDA: Year Ended December 31, (In millions) 2018 2017 2016 Net earnings from continuing operations (1) $ 150.3 $ 62.8 $ 292.3 Plus: Interest expense, net (177.9 ) (184.2 ) (191.9 ) Plus: Income tax provision 307.5 330.5 95.6 Plus: Depreciation and amortization (3) (161.4 ) (158.3 ) (154.0 ) Less: Depreciation and amortization adjustments 2.4 — 1.7 Plus Special Items: Restructuring and other charges (4) (47.8 ) (12.1 ) (2.5 ) Other restructuring associated costs (15.8 ) (14.3 ) (19.8 ) Foreign currency exchange loss due to highly inflationary economies (2.5 ) — (1.7 ) Charges related to ceasing operations in Venezuela (2) — — (48.5 ) Charges related to acquisition and divestiture activity (13.3 ) (15.5 ) (1.8 ) Charges incurred related to the sale of Diversey (20.9 ) (68.6 ) (1.4 ) Gain from class-action litigation settlement 14.9 — — Curtailment related to retained Diversey retirement plans — 13.5 — Other Special Items (5) (9.4 ) (0.5 ) (1.4 ) Pre-tax impact of Special Items (94.8 ) (97.5 ) (77.1 ) Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations $ 889.5 $ 833.3 $ 809.2 (1) The sign values of the individual line items are consistent with those presented on our Consolidated Statements of Operations, where applicable. Interest expense, net; Income tax provision; Depreciation and amortization, net of adjustments and total Pre-tax impact of Special Items should be added to net earnings from continuing operations to calculate Non-U.S. GAAP Total Company Adjusted EBTIDA from continuing operations. (2) Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards," of the Notes to Consolidated Financial Statements for further details. (3) Depreciation and amortization by segment is as follows: Year Ended December 31, (In millions) 2018 2017 2016 Food Care $ 105.4 $ 108.9 $ 110.0 Product Care 56.0 49.4 44.0 Total Company depreciation and amortization (i) $ 161.4 $ 158.3 $ 154.0 (i) Includes share-based incentive compensation of $29.9 million in 2018 , $38.2 million in 2017 and $50.9 million in 2016 . (4) Restructuring and other charges by segment were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Food Care $ 17.7 $ 7.6 $ 1.6 Product Care 30.1 4.5 0.9 Total Company restructuring and other charges (i) $ 47.8 $ 12.1 $ 2.5 (i) For the year ended December 31, 2016 restructuring and other charges excludes $0.3 million related to severance and termination benefits for employees in our Venezuelan subsidiaries. (5) Other Special Items for the year ended December 31, 2018 primarily included fees related to professional services. Other Special Items for the year ended December 31, 2017 primarily included transaction costs related to reorganizations. Other Special Items for the year ended December 31, 2016 primarily included legal fees associated with restructuring. Assets by Reportable Segments The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net, inventory, net, property and equipment, net, goodwill, intangible assets, net and leased systems, net. December 31, (In millions) 2018 2017 Assets allocated to segment: Food Care $ 1,541.5 $ 1,545.5 Product Care 2,643.5 2,620.2 Total segments $ 4,185.0 $ 4,165.7 Assets not allocated: Cash and cash equivalents 271.7 594.0 Assets held for sale 0.6 4.0 Income tax receivables 58.4 85.1 Other receivables 81.3 90.2 Deferred taxes 170.5 176.2 Other 282.7 165.1 Total $ 5,050.2 $ 5,280.3 Geographic Information Year Ended December 31, (In millions) 2018 2017 2016 Net sales (1) : North America (3) $ 2,548.9 $ 2,415.0 $ 2,237.8 EMEA 1,038.0 984.7 962.7 Latin America 417.1 409.3 396.8 APAC 728.7 652.6 614.0 Total $ 4,732.7 $ 4,461.6 $ 4,211.3 Total long-lived assets (1)(2) : North America $ 726.0 $ 639.6 EMEA 270.5 274.1 Latin America 67.3 74.6 APAC 211.8 226.0 Total $ 1,275.6 $ 1,214.3 (1) Net sales to external customers attributed to geographic areas represent net sales to external customers based on destination. No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2018 , 2017 or 2016 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2018 and 2017 . (2) Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill, intangible assets and non-current assets held for sale. (3) Net sales to external customers within the U.S. were $2,402.8 million , $2,278.6 million and $2,112.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table details our inventories, net: December 31, (In millions) 2018 2017 Raw materials $ 79.9 $ 82.8 Work in process 142.4 125.7 Finished goods 322.6 298.3 Total $ 544.9 $ 506.8 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following table details our property and equipment, net. December 31, (In millions) 2018 2017 Land and improvements $ 41.2 $ 43.5 Buildings 728.6 718.9 Machinery and equipment 2,325.7 2,330.5 Other property and equipment 135.6 116.3 Construction-in-progress 155.1 114.7 Property and equipment, gross 3,386.2 3,323.9 Accumulated depreciation and amortization (2,350.0 ) (2,325.5 ) Property and equipment, net $ 1,036.2 $ 998.4 The following table details our interest cost capitalized and depreciation and amortization expense for property and equipment. Year Ended December 31, (In millions) 2018 2017 2016 Interest cost capitalized $ 6.3 $ 10.3 $ 11.0 Depreciation and amortization expense for property and equipment $ 115.9 $ 107.0 $ 88.2 |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets, Net | Goodwill and Identifiable Intangible Assets, net Goodwill We review goodwill for impairment on a reporting unit basis annually during the fourth quarter of each year, using a measurement date of October 1st, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company performed a qualitative assessment by reporting unit as of October 1, 2018 , during the fourth quarter of 2018 . This assessment included consideration of key factors including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity-and reporting unit-specific events. We concluded it was more likely than not that the fair value of each reporting unit exceeded its carrying amount. As such, it was not necessary to perform a quantitative goodwill impairment test. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed as of October 1, 2018. Allocation of Goodwill to Reporting Segment The following table shows our goodwill balances by reportable segment: (In millions) Food Care Product Care Total Gross Carrying Value at December 31, 2016 $ 560.3 $ 1,513.0 $ 2,073.3 Accumulated impairment (49.5 ) (140.9 ) (190.4 ) Carrying Value at December 31, 2016 $ 510.8 $ 1,372.1 $ 1,882.9 Acquisition and divestiture 10.1 39.3 49.4 Currency translation 6.0 1.5 7.5 Gross Carrying Value at December 31, 2017 $ 576.5 $ 1,554.1 $ 2,130.6 Accumulated impairment (49.6 ) (141.2 ) (190.8 ) Carrying Value at December 31, 2017 $ 526.9 $ 1,412.9 $ 1,939.8 Acquisition, purchase price and other adjustments (0.6 ) 18.2 17.6 Currency translation (6.6 ) (3.2 ) (9.8 ) Gross Carrying Value at December 31, 2018 $ 568.9 $ 1,568.9 $ 2,137.8 Accumulated impairment (49.2 ) (141.0 ) (190.2 ) Carrying Value at December 31, 2018 $ 519.7 $ 1,427.9 $ 1,947.6 As noted above, it was determined under a qualitative assessment that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount. Therefore, there was no impairment of goodwill. However, if events or circumstances change in future periods, the Company may be required to perform a quantitative test. If we were required to perform a quantitative test, the amount of the impairment charge to be recognized would be the amount by which the carrying value exceeded the estimated fair value at a reporting unit level. The future occurrence of a potential indicator of impairment, such as a decrease in expected net earnings, adverse equity market conditions, a decline in current market multiples, a decline in our common stock price, a significant adverse change in legal factors or business climates, an adverse action or assessment by a regulator, unanticipated competition, strategic decisions made in response to economic or competitive conditions, or a more likely than not expectation that a reporting unit or a significant portion of a reporting unit will be sold or disposed of, could require an interim assessment for some or all of the reporting units before the next required annual assessment. In the event of significant adverse changes of the nature described above, we might have to recognize a non-cash impairment of goodwill, which could have a material adverse effect on our consolidated financial condition and results of operations. Identifiable Intangible Assets, net The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives: December 31, 2018 December 31, 2017 (In millions) Gross Carrying Value Accumulated Amortization Net (1) Gross Carrying Value Accumulated Amortization Net Customer relationships $ 72.4 $ (22.3 ) $ 50.1 $ 59.7 $ (19.7 ) $ 40.0 Trademarks and tradenames 15.1 (1.6 ) 13.5 11.6 (0.5 ) 11.1 Capitalized software 62.2 (49.8 ) 12.4 50.6 (40.0 ) 10.6 Technology 37.2 (23.5 ) 13.7 39.2 (27.5 ) 11.7 Contracts 13.2 (10.1 ) 3.1 10.9 (9.6 ) 1.3 Total intangible assets with definite lives 200.1 (107.3 ) 92.8 172.0 (97.3 ) 74.7 Trademarks and tradenames with indefinite lives 8.9 — 8.9 8.9 — 8.9 Total identifiable intangible assets, net $ 209.0 $ (107.3 ) $ 101.7 $ 180.9 $ (97.3 ) $ 83.6 (1) As of December 31, 2018, intangible assets increased due to the AFP acquisition. See Note 4, "Discontinued Operations, Divestitures and Acquisitions," to the Notes to Consolidated Financial Statements for additional information related to the AFP acquisition. The following table shows the remaining estimated future amortization expense at December 31, 2018 . Year Amount (in millions) 2019 $ 14.2 2020 12.0 2021 9.0 2022 7.6 Thereafter 50.0 Total $ 92.8 Amortization expense was $15.7 million in 2018 , $13.1 million in 2017 and $15.0 million in 2016 . The following table shows the remaining weighted average useful life of our definite lived intangible assets as of December 31, 2018 . Remaining weighted average useful lives Customer relationships 13.3 Trademarks and trade names 11.1 Technology 6.3 Contracts 8.2 Total identifiable intangible assets, net with definite lives 10.8 |
Accounts Receivable Securitizat
Accounts Receivable Securitization Programs | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization Programs | 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 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 Consolidated Balance Sheets. As of December 31, 2018 , the maximum purchase limit for receivable interests was $60.0 million , subject to the availability limits described below. The amounts available from time to time under this program may be less than $60.0 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. As of December 31, 2018 , the amount available to us under the program was $60.0 million . 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 August and is renewable. European Accounts Receivable 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 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 Consolidated Balance Sheets. 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 Consolidated Balance Sheets. As of December 31, 2018 , the maximum purchase limit for receivable interests was €80.0 million , ( $91.6 million equivalent) subject to availability limits. The terms and provisions of this program are similar to our U.S. program discussed above. As of December 31, 2018 , the amount available under this program before utilization was €78.9 million ( $90.3 million equivalent). This program expires annually in August and is renewable. Utilization of Our Accounts Receivable Securitization Programs As of December 31, 2018 , there were no amounts outstanding under our U.S. program and €73.3 million , ( $83.9 million equivalent) outstanding under our European program. As of December 31, 2017 , there were no amounts outstanding under our U.S. and European programs. We continue to service the trade receivables supporting the programs, and the banks are permitted to re-pledge this collateral. The total interest paid for these programs was approximately $0.6 million , $1.0 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. 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 December 31, 2018 . |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities For the year ended December 31, 2018, the Company incurred $47.8 million of restructuring charges and $13.9 million of other related costs. These were primarily a result of restructuring costs associated with the announcement on December 13, 2018 as part of the Company’s Reinvent SEE strategy, and the completion of our efforts to eliminate stranded costs. 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.” The Program consists of previously existing restructuring programs and the new three-year restructuring program which is part of our Reinvent SEE strategy. The Company expects restructuring activities to be completed by the end of 2021. The Board of Directors has approved restructuring spend as follows: (in millions) Total Restructuring Program Range Cumulative Spend to Date Remaining Restructuring Spend (2) Low High Low High Costs of reduction in headcount as a result of reorganization $ 385 $ 405 $ (285 ) $ 100 $ 120 Other expenses associated with the Program 205 225 (137 ) 68 88 Total expense $ 590 $ 630 $ (422 ) $ 168 $ 208 Capital expenditures 250 255 (236 ) 14 19 Total estimated cash cost (1) $ 840 $ 885 $ (658 ) $ 182 $ 227 (1) Total estimated cash cost excludes the impact of proceeds and foreign currency impact. (2) Remaining restructuring spend primarily consists of restructuring costs associated with the announcement on December 13, 2018 as part of the Company’s Reinvent SEE strategy, and the completion of our efforts to eliminate stranded costs. The following table details our restructuring activities as reflected in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, (In millions) 2018 2017 2016 Continuing operations: Other associated costs (1) $ 13.9 $ 14.3 $ 19.8 Restructuring charges 47.8 12.1 2.5 Total charges from continuing operations 61.7 26.4 22.3 Charges included in discontinued operations — 2.4 18.6 Total charges $ 61.7 $ 28.8 $ 40.9 Capital expenditures $ 1.0 $ 21.3 $ 123.5 (1) Other associated costs excludes non-cash cost of $1.9 million for the year ended December 31, 2018 related to share based compensation expense. The restructuring accrual, spending and other activity for the year ended December 31, 2018 and the accrual balance remaining at December 31, 2018 related to the Program were as follows: (In millions) Restructuring accrual at December 31, 2017 $ 16.1 Accrual and accrual adjustments 47.8 Cash payments during 2018 (25.0 ) Effect of changes in foreign currency exchange rates (1.4 ) Restructuring accrual at December 31, 2018 $ 37.5 We expect to pay $33.5 million of the accrual balance remaining at December 31, 2018 within the next twelve months. This amount is included in accrued restructuring costs on the Consolidated Balance Sheets at December 31, 2018 . The majority of the remaining accrual of $4.0 million is expected to be paid in 2020. This amount is included in other non-current liabilities on our Consolidated Balance Sheets at December 31, 2018 . |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | Other Current and Non-Current Liabilities The following tables detail our other current liabilities and other non-current liabilities at December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Other current liabilities: Accrued salaries, wages and related costs $ 164.9 $ 194.0 Accrued operating expenses 135.8 237.2 Accrued customer volume rebates 84.6 87.9 Accrued interest 38.2 38.5 Accrued employee benefit liability 5.4 4.4 Total $ 428.9 $ 562.0 December 31, (In millions) 2018 2017 Other non-current liabilities: Accrued employee benefit liability $ 172.0 $ 169.3 Other postretirement liability 41.3 46.1 Other various liabilities (1) 440.0 275.4 Total $ 653.3 $ 490.8 (1) As of December 31, 2018 , other various liabilities included income tax liabilities of $382 million , including indemnifications of legacy Diversey tax liabilities. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Our total debt outstanding consisted of the amounts set forth on the following table: December 31, (In millions) 2018 2017 Short-term borrowings (1) $ 232.8 $ 25.3 Current portion of long-term debt 4.9 2.2 Total current debt 237.7 27.5 Term Loan A due July 2023 222.2 222.7 6.50% Senior Notes due December 2020 424.0 423.6 4.875% Senior Notes due December 2022 421.1 420.4 5.25% Senior Notes due April 2023 421.2 420.4 4.50% Senior Notes due September 2023 454.9 474.3 5.125% Senior Notes due December 2024 421.3 420.7 5.50% Senior Notes due September 2025 397.1 396.7 6.875% Senior Notes due July 2033 445.5 445.4 Other 29.2 6.3 Total long-term debt, less current portion (3) 3,236.5 3,230.5 Total debt (2) $ 3,474.2 $ 3,258.0 (1) Short-term borrowings of $232.8 million at December 31, 2018 were comprised of $140.0 million under our revolving credit facility, $83.9 million under our European securitization program and $8.9 million of short-term borrowings from various lines of credit. Short-term borrowings of $25.3 million at December 31, 2017 were comprised of $2.1 million of Diversey accounts payable obligations under financing arrangements which Sealed Air was fully reimbursed for as part of the sale of Diversey as well as $23.2 million of short-term borrowing from various lines of credit. (2) As of December 31, 2018 , our weighted average interest rate on our short-term borrowings outstanding was 2.8% and on our long-term debt outstanding was 5.4% . As of December 31, 2017 , our weighted average interest rate on our short-term borrowings outstanding was 5.4% and on our long-term debt outstanding was 5.3% . (3) Amounts are net of unamortized discounts and issuance costs of $24.3 million and $29.5 million as of December 31, 2018 and 2017 , respectively. Debt Maturities The following table summarizes the scheduled annual maturities for the next five years and thereafter of our long-term debt, including the current portion of long-term debt and capital leases. This schedule represents the principal portion of our debt, and therefore excludes debt discounts, interest rate swaps and lender and finance fees. Year Amount (in millions) 2019 $ 4.9 2020 430.8 2021 15.8 2022 437.2 2023 1,084.1 Thereafter 1,292.9 Total $ 3,265.7 Amended and Restated Senior Secured Credit Facility 2018 Activity On July 12, 2018, the Company and certain of its subsidiaries entered into a third amended and restated credit agreement and an amendment No. 1 thereto (the "Third Amended and Restated Agreement") whereby its senior secured credit facility was amended and restated with Bank of America, N.A., as agent and the other financial institutions party thereto. The changes include: (i) the refinancing of the term loan A facilities and revolving credit facilities with a new U.S. dollar term loan A facility in an aggregate principal amount of approximately $186.5 million , a new pounds sterling term loan A facility in an aggregate principal amount of approximately £29.4 million , and increased our revolving credit facilities from $700 million to $1.0 billion (including revolving facilities available in U.S. dollars, euros, pounds sterling, Canadian dollars, Australian dollars, Japanese yen, New Zealand dollars and Mexican pesos), (ii) increased flexibility to lower the interest rate margin for the term loan A facilities and revolving credit facilities, which will range from 125 to 200 basis points (bps) in the case of LIBOR loans, subject to the achievement of certain leverage tests, (iii) the extension of the final maturity of the term loan A facilities and revolving credit commitment to July 11, 2023, (iv) the removal of the requirement to prepay the loans with respect to excess cash flow, (v) adjustments to the financial maintenance covenant of Consolidated Net Debt to Consolidated EBITDA (in each case, as defined in the Third Amended and Restated Credit Agreement) and other covenants to provide additional flexibility to the Company, (vi) the release of certain non-U.S. asset collateral previously pledged by certain of the Company's subsidiaries and (vii) other amendments. As a result of the Third Amended and Restated Credit Agreement, we recognized $1.9 million of loss on debt redemption in our Consolidated Statements of Operations. This amount includes $1.5 million of accelerated amortization of original issuance discount related to the term loan A and lender and non-lender fees related to the entire credit facility. Also included in the loss on debt redemption was $0.4 million of non-lender fees incurred in connection with the Third Amended and Restated Credit Agreement. In addition, we incurred $0.7 million of lender and third-party fees that are included in the carrying amounts of the outstanding debt under the credit facility. We also capitalized $4.9 million of fees that are included in other assets on our Consolidated Balance Sheets. The amortization expense related to original issuance discount and lender and non-lender fees is calculated using the effective interest rate method over the lives of the respective debt instruments. Total amortization expense related to the senior secured credit facility was $3.2 million for the year ended December 31, 2018 , and is included in interest expense in our Consolidated Statements of Operations. 2017 Activity On July 1, 2017, we executed an amendment to the Amended Credit Facility in order to permit the sale of Diversey. The amendment primarily allowed us to take steps necessary for the legal separation of the Diversey business and release the loan security effective with the sale closing. Subsequent to the execution of the amendment, we prepaid the Brazilian tranche of our Term Loan A facility due in July 2019 in the amount of $96.3 million in connection with the anticipated Diversey transaction. An additional $755.2 million of this facility was prepaid in conjunction with the Diversey closing. As of December 31, 2017, the remaining balance of this facility was $222.7 million and no further amortization payments will be required before the maturity of the facility. Also, in July 2017, we paid the full $250.0 million principal balance of the Term Loan A facility due in July 2017, upon its maturity. 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. December 31, (In millions) 2018 2017 Used lines of credit (1) $ 232.8 $ 23.2 Unused lines of credit 1,135.3 1,108.6 Total available lines of credit (2) $ 1,368.1 $ 1,131.8 (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) Of the total available lines of credit, $1,150.3 million were committed as of December 31, 2018 . Covenants Each issue of our outstanding senior notes imposes limitations on our operations and those of specified subsidiaries. The Third Amended and Restated Credit Agreement 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 Third Amended and Restated Credit Agreement). We were in compliance with the above financial covenants and limitations at December 31, 2018 and 2017 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities We report all derivative instruments on our 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 AOCL 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 Consolidated Statements of Operations. Cash flows from derivative financial instruments are classified as cash flows from operating activities on the Consolidated Statements of Cash Flows. These contracts generally have original maturities of less than 12 months. Net unrealized after-tax gains (losses) related to cash flow hedging activities that were included in AOCL were $2.9 million , $(5.0) million and $1.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The unrealized amounts in AOCL will fluctuate based on changes in the fair value of open contracts during each reporting period. We estimate that $1.5 million of net unrealized gains related to cash flow hedging activities included in AOCL 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 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 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 December 31, 2018 and 2017 , we had no outstanding interest rate swaps. Net Investment Hedge The €400.0 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 translated value of the debt was $7.8 million ( $5.9 million net of tax) as of December 31, 2018 , and is reflected in AOCL on our Consolidated Balance Sheets. In March 2015, we entered into a series of cross-currency swaps with a combined notional amount of $425.0 million , hedging a portion of the net investment in a certain European subsidiary against fluctuations in foreign exchange rates. As a result of the sale of Diversey, we terminated these cross-currency swaps in September 2017 and settled these swaps in October 2017. The fair value of the swaps on the date of termination was a liability of $ 61.9 million which was partially offset by semi-annual interest settlements of $ 17.7 million . This resulted in a net impact of $(44.2) million which is recorded in AOCL. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, 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 AOCL, 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 (expense) income, net on the 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 14, “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 Consolidated Balance Sheets. Cash Flow Hedge Non-Designated as Hedging Instruments Total December 31, December 31, December 31, (In millions) 2018 2017 2018 2017 2018 2017 Derivative Assets Foreign currency forward contracts $ 1.8 $ 0.5 $ 1.7 $ 3.6 $ 3.5 $ 4.1 Total Derivative Assets $ 1.8 $ 0.5 $ 1.7 $ 3.6 $ 3.5 $ 4.1 Derivative Liabilities Foreign currency forward contracts $ (0.2 ) $ (2.4 ) $ (2.7 ) $ (3.3 ) $ (2.9 ) $ (5.7 ) Total Derivative Liabilities (1) $ (0.2 ) $ (2.4 ) $ (2.7 ) $ (3.3 ) $ (2.9 ) $ (5.7 ) Net Derivatives (2) $ 1.6 $ (1.9 ) $ (1.0 ) $ 0.3 $ 0.6 $ (1.6 ) (1) Excludes €400.0 million of euro-denominated debt ( $454.9 million equivalent at December 31, 2018 and $474.3 million equivalent at December 31, 2017 ), 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 December 31, December 31, (In millions) 2018 2017 2018 2017 Gross position $ 3.5 $ 4.1 $ (2.9 ) $ (5.7 ) Impact of master netting agreements (1.4 ) (0.4 ) 1.4 0.4 Net amounts recognized on the Consolidated Balance Sheets $ 2.1 $ 3.7 $ (1.5 ) $ (5.3 ) The following table details the effect of our derivative instruments on our Consolidated Statements of Operations. Location of Gain (Loss) Recognized on Amount of Gain (Loss) Recognized in Earnings on Derivatives Consolidated Statements of Operations Year Ended December 31, (In millions) 2018 2017 2016 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts Cost of sales $ 0.2 $ (0.2 ) $ (1.5 ) Treasury locks Interest expense, net 0.1 0.1 0.1 Sub-total cash flow hedges 0.3 (0.1 ) (1.4 ) Fair Value Hedges: Interest rate swaps Interest expense, net 0.5 0.5 0.5 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (expense) income, net (12.3 ) (11.5 ) (19.2 ) Total $ (11.5 ) $ (11.1 ) $ (20.1 ) |
Fair Value Measurements and Oth
Fair Value Measurements and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Other Financial Instruments | Fair Value Measurements and Other Financial Instruments Fair Value Measurements The fair value of our financial instruments, using the fair value hierarchy under U.S. GAAP are included in the table below. December 31, 2018 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 38.6 $ 38.6 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward and option contracts $ 0.6 $ — $ 0.6 $ — December 31, 2017 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 297.5 $ 297.5 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ (1.6 ) $ — $ (1.6 ) $ — Cash Equivalents Our cash equivalents consist 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 remaining maturities of 3 months or less, they present negligible risk of changes in fair value due to changes in interest rates. The amount of cash equivalents decreased from 2017, primarily due to utilization of proceeds from the sale of Diversey. Derivative Financial Instruments Our foreign currency forward contracts, foreign currency options, interest rate swaps and cross-currency swaps are recorded at fair value on our 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 have at least an investment grade rating. 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 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 Consolidated Balance Sheets include our credit facilities and 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: December 31, 2018 December 31, 2017 (In millions) Carrying Fair Carrying Fair Term Loan A Facility due July 2023 (1) (2) $ 222.2 $ 222.2 $ 222.7 $ 222.7 6.50% Senior Notes due December 2020 424.0 440.1 423.6 465.1 4.875% Senior Notes due December 2022 421.1 421.2 420.4 451.0 5.25% Senior Notes due April 2023 421.2 424.5 420.4 455.6 4.50% Senior Notes due September 2023 (1) 454.9 489.9 474.3 544.4 5.125% Senior Notes due December 2024 421.3 419.8 420.7 456.2 5.50% Senior Notes due September 2025 397.1 394.8 396.7 439.9 6.875% Senior Notes due July 2033 445.5 453.4 445.4 527.3 Other foreign borrowings (1) 98.5 99.2 30.2 30.4 Other domestic borrowings 168.4 170.0 3.6 3.6 Total debt $ 3,474.2 $ 3,535.1 $ 3,258.0 $ 3,596.2 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) On July 12, 2018, the Company entered into a third amended and restated credit agreement, which included the refinancing of the term loan A facilities and revolving credit facilities. In addition to the table above, the Company remeasures amounts related to contingent consideration liabilities related to acquisitions and certain equity compensation, that were carried at fair value on a recurring basis in the Consolidated Financial Statements or for which a fair value measurement was required. Refer to Note 4 “Discontinued Operations, Divestitures and Acquisitions,” of the Notes to Consolidated Financial Statements for information regarding contingent consideration and Note 19 “Stockholders’ Equity (Deficit),” of the Notes to Consolidated Financial Statements for share based compensation in the Notes to Consolidated Financial Statements. 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. 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 have at least an investment grade rating. 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. |
Profit Sharing, Retirement Savi
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans | Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans Profit Sharing and Retirement Savings Plans We have a qualified non-contributory profit sharing plan covering most of our U.S. employees. Contributions to this plan, which are made at the discretion of our Board of Directors, may be made in cash, shares of our common stock, or in a combination of cash and shares of our common stock. We also maintain qualified contributory retirement savings plans in which most of our U.S. employees are eligible to participate. The qualified contributory retirement savings plans generally provide for our contributions in cash based upon the amount contributed to the plans by the participants. Our contributions to our profit sharing plan accrual and retirement savings plans are charged to operations and amounted to $36.3 million in 2018 , $39.9 million in 2017 and $42.9 million in 2016 . In 2018 , 538,524 shares were contributed as part of our contribution to the profit sharing plan related to 2017 ; in 2017 , 502,519 shares were contributed as part of our contribution to the profit sharing plan related to 2016 , and in 2016 , 830,600 shares were contributed as part of our contribution to the profit sharing plan related to 2015. These shares were issued out of treasury stock. We have various international defined contribution benefit plans which cover certain employees. We have expanded use of these plans in select countries where they have been used to supplement or replace defined benefit plans. Defined Benefit Pension Plans We recognize the funded status of each defined pension benefit plan as the difference between the fair value of plan assets and the projected benefit obligation of the employee benefit plans in the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of taxes. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability on our Consolidated Balance Sheets. Subsequent changes in the funded status are reflected on the Consolidated Balance Sheets in unrecognized pension items, a component of AOCL, which are included in total stockholders’ equity. The amount of unamortized pension items is recorded net of tax. The measurement date used to determine the projected benefit obligation and the fair value of plan assets is December 31. We have amortized actuarial gains or losses over the average future working lifetime (or remaining lifetime of inactive participants if there are no active participants). We have used the corridor method, where the corridor is the greater of ten percent of the projected benefit obligation or fair value of assets at year end. If actuarial gains or losses do not exceed the corridor, then there is no amortization of gain or loss. During the year ended December 31, 2017, several of our pension plans transferred in the sale of Diversey. Two international plans were split between Diversey and Sealed Air at the close of the sale. Unless noted, the tables in this disclosure show only activity related to plans retained by Sealed Air as of December 31, 2017. The impact of the divestiture on the plans that were split is shown in the lines labeled “Business divestiture”, as applicable below. The following table shows the components of our net periodic benefit cost for the three years ended December 31, for our pension plans charged to operations: Year Ended December 31, (In millions) 2018 2017 2016 Net periodic benefit (income) cost: U.S. and international net periodic benefit cost included in cost of sales (1) $ 0.8 $ 1.4 $ 1.5 U.S. and international net periodic benefit cost included in selling, general and administrative expenses 3.5 5.6 9.1 U.S. and international net periodic (income) benefit cost included in other income (expense) (8.4 ) (6.0 ) 1.3 Total (income) benefit cost $ (4.1 ) $ 1.0 $ 11.9 (1) The amount recorded in inventory for the years ended December 31, 2018 , 2017 and 2016 was not material. A number of our U.S. employees, including some employees who are covered by collective bargaining agreements, participate in defined benefit pension plans. Some of our international employees participate in defined benefit pension plans in their respective countries. The following table presents our funded status for 2018 and 2017 for our U.S. and international pension plans. The measurement date used to determine benefit obligations and plan assets is December 31 for all material plans. December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Change in benefit obligation: Projected benefit obligation at beginning of period $ 204.7 $ 702.2 $ 906.9 $ 213.1 $ 765.8 $ 978.9 Service cost 0.1 4.2 4.3 0.1 6.9 7.0 Interest cost 6.5 15.2 21.7 6.8 16.1 22.9 Actuarial (gain) loss (10.6 ) (21.5 ) (32.1 ) 11.3 16.5 27.8 Settlement/curtailment (7.6 ) (15.1 ) (22.7 ) (13.8 ) (21.2 ) (35.0 ) Benefits paid (11.2 ) (22.9 ) (34.1 ) (12.9 ) (22.6 ) (35.5 ) Employee contributions — 0.7 0.7 — 2.2 2.2 Business divestiture — — — — (120.2 ) (120.2 ) Other 0.2 5.8 6.0 0.1 1.1 1.2 Foreign exchange impact — (35.1 ) (35.1 ) — 57.6 57.6 Projected benefit obligation at end of period $ 182.1 $ 633.5 $ 815.6 $ 204.7 $ 702.2 $ 906.9 Change in plan assets: Fair value of plan assets at beginning of period $ 148.7 $ 627.5 $ 776.2 $ 150.3 $ 621.5 $ 771.8 Actual return on plan assets (10.5 ) (23.5 ) (34.0 ) 19.3 50.8 70.1 Employer contributions 0.4 15.3 15.7 6.3 21.8 28.1 Employee contributions — 0.7 0.7 — 2.2 2.2 Benefits paid (11.2 ) (22.9 ) (34.1 ) (12.9 ) (22.6 ) (35.5 ) Settlement (7.6 ) (15.1 ) (22.7 ) (14.3 ) (16.1 ) (30.4 ) Business divestiture — — — — (74.2 ) (74.2 ) Other 0.1 0.6 0.7 — (0.5 ) (0.5 ) Foreign exchange impact — (33.8 ) (33.8 ) — 44.6 44.6 Fair value of plan assets at end of period $ 119.9 $ 548.8 $ 668.7 $ 148.7 $ 627.5 $ 776.2 Underfunded status at end of year $ (62.2 ) $ (84.7 ) $ (146.9 ) $ (56.0 ) $ (74.7 ) $ (130.7 ) Accumulated benefit obligation at end of year $ 182.1 $ 620.9 $ 803.0 $ 204.8 $ 688.9 $ 893.7 Amounts included in the Consolidated Balance Sheets, including plans which were deemed immaterial and not included above, consisted of: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Other non-current assets $ — $ 26.3 $ 26.3 $ — $ 39.1 $ 39.1 Other current liabilities — (2.3 ) (2.3 ) — (2.4 ) (2.4 ) Other non-current liabilities (62.1 ) (109.8 ) (171.9 ) (56.1 ) (113.3 ) (169.4 ) Net amount recognized $ (62.1 ) $ (85.8 ) $ (147.9 ) $ (56.1 ) $ (76.6 ) $ (132.7 ) The following table shows the components of our net periodic benefit cost (income) for the years ended December 31, for our pension plans charged to operations: December 31, 2018 December 31, 2017 December 31, 2016 (In millions) U.S. International Total U.S. International Total U.S. International Total Components of net periodic benefit (income) cost: Service cost $ 0.1 $ 4.2 $ 4.3 $ 0.1 $ 6.9 $ 7.0 $ 0.6 $ 10.0 $ 10.6 Interest cost 6.5 15.2 21.7 6.8 16.1 22.9 7.8 18.3 26.1 Expected return on plan assets (8.7 ) (29.2 ) (37.9 ) (9.8 ) (30.6 ) (40.4 ) (10.0 ) (24.3 ) (34.3 ) Other adjustments 0.1 — 0.1 — — — 1.3 — 1.3 Amortization of net prior service cost — — — — (0.1 ) (0.1 ) — — — Amortization of net actuarial loss 0.9 2.4 3.3 0.8 5.7 6.5 2.2 5.3 7.5 Net periodic (income) benefit cost $ (1.1 ) $ (7.4 ) $ (8.5 ) $ (2.1 ) $ (2.0 ) $ (4.1 ) $ 1.9 $ 9.3 $ 11.2 Cost (income) of settlement/curtailment 1.6 2.8 4.4 2.1 3.0 5.1 0.6 0.1 0.7 Total benefit (income) cost $ 0.5 $ (4.6 ) $ (4.1 ) $ — $ 1.0 $ 1.0 $ 2.5 $ 9.4 $ 11.9 The amounts in AOCL that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 and 2017 are: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Unrecognized prior service costs $ 0.1 $ 4.7 $ 4.8 $ 0.1 $ 0.6 $ 0.7 Unrecognized net actuarial loss 47.3 130.8 178.1 41.4 104.7 146.1 Total $ 47.4 $ 135.5 $ 182.9 $ 41.5 $ 105.3 $ 146.8 Changes in plan assets and benefit obligations recognized in AOCL at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Current year actuarial loss (gain) $ 8.6 $ 31.2 $ 39.8 $ 2.3 $ (8.7 ) $ (6.4 ) Amortization of actuarial loss (0.9 ) (2.4 ) (3.3 ) (0.8 ) (5.7 ) (6.5 ) Prior service cost occurring during the year (1) — 4.2 4.2 — — — Business divestiture — — — — (42.6 ) (42.6 ) Other adjustments (0.1 ) (0.1 ) (0.2 ) — 1.3 1.3 Settlement/curtailment gain (1.6 ) (2.7 ) (4.3 ) (2.1 ) (2.3 ) (4.4 ) Total $ 6.0 $ 30.2 $ 36.2 $ (0.6 ) $ (58.0 ) $ (58.6 ) (1) On October 26, 2018, the UK High Court ruled that formulas used to determine guaranteed minimum pension (GMP) benefits violated gender-pay equality laws due to differences in the way benefits were calculated for men and women. This will result in the Company amending plan benefit formulas for our UK defined benefit plans to account for the higher pension payments. While the specifics of the calculation are not yet known, the Company has recorded our current best estimate of the GMP equalization as a prior service cost deferred in AOCL. The court ruling did not have an impact on our Consolidated Statements of Operations for the year ended December 31, 2018. The amounts in AOCL that are expected to be recognized as components of net periodic benefit cost during the year ending December 31, 2019 are as follows: Year Ended 2019 (In millions) U.S. International Total Unrecognized prior service costs $ — $ 0.2 $ 0.2 Unrecognized net actuarial loss 1.4 3.7 5.1 Total $ 1.4 $ 3.9 $ 5.3 Information for plans with accumulated benefit obligations in excess of plan assets as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Accumulated benefit obligation $ 182.1 $ 418.0 $ 600.1 $ 204.8 $ 338.7 $ 543.5 Fair value of plan assets 119.9 315.4 435.3 148.7 236.2 384.9 Actuarial Assumptions Weighted average assumptions used to determine benefit obligations at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International U.S. International Benefit obligations Discount rate 4.3 % 2.6 % 3.6 % 2.5 % Rate of compensation increase N/A 2.3 % N/A 2.3 % Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were as follows: December 31, 2018 December 31, 2017 December 31, 2016 (In millions) U.S. International U.S. International U.S. International Net periodic benefit cost Discount rate 3.6 % 2.5 % 4.0 % 2.4 % 4.3 % 2.8 % Expected long-term rate of return 6.2 % 4.9 % 6.7 % 5.0 % 6.7 % 4.3 % Rate of compensation increase N/A 2.3 % N/A 2.4 % 3.0 % 2.5 % Estimated Future Benefit Payments We expect the following estimated future benefit payments, which reflect expected future service as appropriate, to be paid in the years indicated: Amount (in millions) Year U.S. International Total 2019 $ 11.7 $ 28.2 $ 39.9 2020 11.8 24.7 36.5 2021 11.7 27.2 38.9 2022 11.7 27.8 39.5 2023 11.8 27.0 38.8 2024 to 2028 (combined) 58.1 150.9 209.0 Total $ 116.8 $ 285.8 $ 402.6 Plan Assets We review the expected long-term rate of return on plan assets annually, taking into consideration our asset allocation, historical returns, and the current economic environment. The expected return on plan assets is calculated based on the fair value of plan assets at year end. To determine the expected return on plan assets, expected cash flows have been taken into account. Our long-term objectives for plan investments are to ensure that (a) there is an adequate level of assets to support benefit obligations to participants over the life of the plans, (b) there is sufficient liquidity in plan assets to cover current benefit obligations, and (c) there is a high level of investment return consistent with a prudent level of investment risk. The investment strategy is focused on a long-term total return in excess of a pure fixed income strategy with short-term volatility less than that of a pure equity strategy. To accomplish this objective, we invest assets primarily in a diversified mix of equity and fixed income investments. For U.S. plans, the target asset allocation will typically be 40 - 50% in equity securities, with a maximum equity allocation of 65% , and 50 - 60% in fixed income securities, with a minimum fixed income allocation of 35% including cash. In some of our international pension plans, we have purchased bulk annuity contracts (buy-in's). These annuity contracts provide cash flows that match the future benefit payments for a specific group of pensioners. These contacts are issued by third party insurance companies with no affiliation to Sealed Air. Insurance companies from which we purchase the annuity contracts are assessed as credit worthy. As of December 31, 2018, buy-in's represented $112.0 million of total plan assets. We currently expect our contributions to the pension plans to be approximately $17 million in 2019 . Additionally, we expect benefits paid directly by the Company related to our defined benefit pension plans to be $3 million in 2019. The fair values of our U.S. and international pension plan assets, by asset category and by the level of fair values are as follows: December 31, 2018 December 31, 2017 Total Total (In millions) Fair Value Level 1 Level 2 Level 3 NAV (5) Fair Value Level 1 Level 2 Level 3 NAV (5) Cash and cash equivalents (1) $ 36.5 $ 3.5 $ 4.5 $ — $ 28.5 $ 7.5 $ 5.6 $ 1.9 $ — $ — Fixed income funds (2) 283.4 — 131.7 — 151.7 385.9 — 162.5 — 223.4 Equity funds (3) 147.1 — 89.7 — 57.4 257.6 — 177.9 — 79.7 Other (4) 201.7 — 20.1 165.4 16.2 125.2 — 18.5 86.5 20.2 Total $ 668.7 $ 3.5 $ 246.0 $ 165.4 $ 253.8 $ 776.2 $ 5.6 $ 360.8 $ 86.5 $ 323.3 (1) Short-term investment fund that invests in a collective trust that holds short-term highly liquid investments with principal preservation and daily liquidity as its primary objectives. Investments are primarily comprised of certificates of deposit, government securities, commercial paper, and time deposits. (2) Fixed income funds that invest in a diversified portfolio primarily consisting of publicly traded government bonds and corporate bonds. There are no restrictions on these investments, and they are valued at the net asset value of shares held at year end. (3) Equity funds that invest in a diversified portfolio of publicly traded domestic and international common stock, with an emphasis in European equities. There are no restrictions on these investments, and they are valued at the net asset value of shares held at year end. (4) The majority of these assets are invested in real estate funds and other alternative investments. Also includes guaranteed insurance contracts, which consists of Company and employee contributions and accumulated interest income at guaranteed stated interest rates and provides for benefit payments and plan expenses. (5) These assets are measured at Net Asset Value (NAV). The following table shows the activity of our U.S. and international plan assets, which are measured at fair value using Level 3 inputs. December 31, (In millions) 2018 2017 Balance at beginning of period $ 86.5 $ 100.7 (Losses) gains on assets still held at end of year (15.5 ) 2.3 Purchases, sales, issuance, and settlements (1) 103.6 1.3 Transfers in and/or out of Level 3 1.0 (24.2 ) Foreign exchange (loss) gain (10.2 ) 6.4 Balance at end of period $ 165.4 $ 86.5 (1) Purchases of Level 3 assets primarily represent the purchase of bulk annuity contracts (Buy-in) in some of our international plans. |
Other Post-Employment Benefits
Other Post-Employment Benefits and Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Other Post-Employment Benefits and Other Employee Benefit Plans | Other Post-Employment Benefits and Other Employee Benefit Plans In addition to providing pension benefits, we provide for a portion of healthcare, dental, vision and life insurance benefits for certain retired legacy Diversey employees, primarily in North America. Covered employees retiring on or after attaining age 55 and who have rendered at least 10 years of service are entitled to post-retirement healthcare, dental and life insurance benefits. These benefits are subject to deductibles, co-payment provisions and other limitations. Contributions made by us, net of Medicare Part D subsidies received in the U.S., are reported below as benefits paid. We may change the benefits at any time. The status of these plans, including a reconciliation of benefit obligations, a reconciliation of plan assets and the funded status of the plans, follows: December 31, (In millions) 2018 2017 Change in benefit obligations: Benefit obligation at beginning of period $ 51.3 $ 54.0 Service cost 0.1 0.1 Interest cost 1.4 1.6 Actuarial (gain) loss (1.7 ) 1.0 Benefits paid, net (4.5 ) (4.3 ) Settlement/curtailment — (1.2 ) Loss due to exchange rate movements — 0.1 Plan amendments (0.2 ) — Benefit obligation at end of period $ 46.4 $ 51.3 Change in plan assets: Fair value of plan assets at beginning of period $ — $ — Employer contribution 4.5 4.3 Benefits paid, net (4.5 ) (4.3 ) Fair value of plan assets at end of period $ — $ — Net amount recognized: Underfunded status $ (46.4 ) $ (51.3 ) Accumulated benefit obligation at end of year $ 46.4 $ 51.3 Net amount recognized in consolidated balance sheets consists of: Current liability $ (5.3 ) $ (5.2 ) Non-current liability (41.1 ) (46.1 ) Net amount recognized $ (46.4 ) $ (51.3 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 0.4 $ 2.0 Prior service credit (3.0 ) (3.1 ) Total $ (2.6 ) $ (1.1 ) The accumulated post-retirement benefit obligations were determined using a weighted-average discount rate of 4.1% at December 31, 2018 and 3.4% at December 31, 2017 . The components of net periodic benefit cost were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.1 $ 0.2 Interest cost 1.4 1.6 1.9 Amortization of net loss (0.2 ) (0.2 ) — Amortization of prior service credit (0.3 ) (1.2 ) (1.6 ) Net periodic benefit cost $ 1.0 $ 0.3 $ 0.5 Income of settlement/curtailment — (13.5 ) — Total benefit (income) cost for fiscal year $ 1.0 $ (13.2 ) $ 0.5 The amounts in AOCL at December 31, 2018 that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows: (In millions) December 31, 2018 Unrecognized prior service costs $ (0.3 ) Unrecognized net actuarial loss (0.2 ) Total $ (0.5 ) Healthcare Cost Trend Rates For the year ended December 31, 2018 , healthcare cost trend rates were assumed to be 6.5% for the U.S. plan in 2018 and decreasing to 5.0% by 2025 , and 5.0% for the Canada plan in 2018 , and unchanged in future years. The assumed healthcare cost trend rate has an effect on the amounts reported for the healthcare plans. A one percentage point change on assumed healthcare cost trend rates would have the following effect for the year ended December 31, 2018 : (In millions) 1% Increase 1% Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit obligation 0.3 (0.3 ) The amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan. Expected post-retirement benefits (net of Medicare Part D subsidies) for each of the next five years and succeeding five years are as follows: Year Amount (in millions) 2019 $ 5.4 2020 5.4 2021 5.0 2022 4.6 2023 4.3 2024 to 2028 (combined) 15.6 Total $ 40.3 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2018, 2017 and 2016, we recorded net tax provisions of $307.5 million , $330.5 million and $95.6 million , respectively. Cash tax payments, net of refunds were $155.0 million , $161.7 million and $125.8 million for 2018, 2017 and 2016. Tax Cuts and Jobs Act On December 22, 2017, the President of the United States signed into law the TCJA. The legislation significantly changed U.S. tax law by, among other things, lowering the corporate income tax rate, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. ("Transition Tax"). The TCJA permanently reduced the U.S. corporate income tax rate from a maximum of 35% to 21% , effective January 1, 2018. While the TCJA provides for a territorial tax system, beginning in 2018, it includes the global intangible low-taxed income (“GILTI”) provision. The Company has elected to account for GILTI tax in the period in which it is incurred. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. As a result of the GILTI provisions, the Company’s effective tax rate increased by 1.0% for 2018. Provisional Tax Impacts On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. SAB 118 provides that where reasonable estimates can be made, the provisional accounting should be based on such estimates and when no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the TCJA. We applied the guidance in SAB 118 when accounting for the enactment-date effects of TCJA. Accordingly, we remeasured U.S. deferred tax assets and liabilities based on the income tax rates at which the deferred tax assets and liabilities are expected to reverse in the future in 2017 and recorded a provisional amount of $41.1 million of tax expense for the year ended December 31, 2017 . Upon further analysis and refinement of our calculations, during the year ended December 31, 2018 , we recorded an incremental expense of $1.6 million related to the remeasurement of the U.S. deferred tax assets. At December 31, 2017, we were not able to reasonably estimate the impact of Transition Tax and therefore our estimate of Transition Tax expense was recorded in the first quarter of 2018. Accordingly, we recognized a provisional tax expense of $290 million related to the tax on the deemed repatriated earnings in our consolidated financial statements for the quarter ended March 31, 2018. The one-time Transition Tax is based on our total post-1986 earnings and profits ("E&P"), which we had been deferred from U.S taxes under prior law. A final adjustment was made to the provisional amounts allowed under SAB 118 in the fourth quarter of 2018 based on additional guidance by the IRS and state taxing authorities, and the filing of the 2017 tax returns. After the adjustment, total Transition Tax recorded in 2018 was $222 million . The impact of the Transition Tax comprised 48.5% of the 2018 effective tax rate. As of December 31, 2018, we have completed our accounting for the tax effects of enactment of the TCJA. The components of earnings before income tax provision were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Domestic $ 255.1 $ 192.1 $ 175.9 Foreign 202.7 201.2 212.0 Total $ 457.8 $ 393.3 $ 387.9 The components of our income tax provision (benefit) were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Current tax expense: Federal $ 228.2 $ 79.6 $ 57.6 State and local 9.8 14.3 1.2 Foreign 59.8 106.0 67.3 Total current expense $ 297.8 $ 199.9 $ 126.1 Deferred tax expense (benefit): Federal $ 56.8 $ 130.1 $ (15.8 ) State and local (21.2 ) 5.3 3.6 Foreign (25.9 ) (4.8 ) (18.3 ) Total deferred tax expense (benefit) 9.7 130.6 (30.5 ) Total income tax provision $ 307.5 $ 330.5 $ 95.6 Deferred tax assets (liabilities) consist of the following: December 31, (In millions) 2018 2017 Restructuring reserves $ 8.4 $ 2.7 Accruals not yet deductible for tax purposes 9.1 10.7 Net operating loss carryforwards 265.5 199.4 Foreign, federal and state credits 10.4 69.2 Employee benefit items 77.0 69.6 Capitalized expenses 8.9 10.8 Derivatives and other 38.0 23.7 Sub-total deferred tax assets 417.3 386.1 Valuation allowance (218.4 ) (189.2 ) Total deferred tax assets $ 198.9 $ 196.9 Depreciation and amortization $ (26.8 ) $ (13.9 ) Unremitted foreign earnings — (9.0 ) Intangible assets (21.7 ) (26.3 ) Other (0.4 ) — Total deferred tax liabilities (48.9 ) (49.2 ) Net deferred tax assets $ 150.0 $ 147.7 There was minimal change in net deferred tax assets from the prior year. The increase in net operating losses and valuation allowance is primarily attributable to foreign losses and the decrease in credits is related to full utilization of U.S foreign tax credits as of December 31, 2018 . In assessing the need for a valuation allowance, we estimate future reversals of existing temporary differences, future taxable earnings, taxable income in carryback periods and tax planning strategies to determine which deferred tax assets are more likely than not to be realized in the future. Changes to tax laws, statutory tax rates and future taxable earnings can have an impact on valuation allowances related to deferred tax assets. A valuation allowance has been provided based on the uncertainty of utilizing the tax benefits primarily related to the following deferred tax assets: • $202.1 million of foreign items, primarily net operating losses; • $2.2 million of state net operating loss carryforwards; and • $9.8 million of state tax credits. For the year ended December 31, 2018 , the valuation allowance increased by $29.2 million . This is primarily driven by an increase in valuation allowance on foreign items offset by the implementation of tax initiatives to utilize state and certain foreign net operating losses. As of December 31, 2018 , we have foreign net operating loss carryforwards of $915.6 million expiring in years beginning in 2019 with the majority of losses having an unlimited carryover. The state net operating loss carryforwards totaling $659.1 million expire in various amounts over one to 20 years. As of December 31, 2018 , we have $0.6 million of foreign and federal tax credit carryforwards. We have $12.4 million of state credit carryovers expiring in 2019 – 2029. We have provided a full valuation allowance on the state credits. The Company is indefinitely reinvested on U.S. and foreign outside basis differences, principally unremitted foreign earnings. The total amount of unremitted foreign earnings is $4.7 billion on which the U.S. federal income tax effect has largely been recorded due to the transition tax and related changes of U.S. taxation of foreign earnings brought about by the TCJA. Remitting these earnings would result in additional foreign and U.S. income tax consequences. The net tax costs of such potential remittance is not practicable to determine. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate ( 21% in 2018 and 35% in 2016-2017) to income before provision for income taxes, is as follows (dollars in millions): Year Ended December 31, 2018 2017 2016 Computed expected tax $ 96.1 21.0 % $ 137.7 35.0 % $ 135.9 35.0 % State income taxes, net of federal tax benefit 8.4 1.8 % 7.6 1.9 % 4.8 1.2 % Foreign earnings taxed at different rates 8.3 1.8 % (22.3 ) (5.7 )% (22.4 ) (5.8 )% U.S. tax on foreign earnings 13.5 2.9 % 72.3 18.4 % 10.7 2.8 % Tax credits (20.7 ) (4.5 )% (16.8 ) (4.3 )% (31.5 ) (8.1 )% Unremitted foreign earnings — — % — — % (9.4 ) (2.4 )% Reorganization and divestitures — — % 75.9 19.3 % — — % Withholding tax 21.7 4.7 % 7.4 1.9 % 10.1 2.6 % Net change in valuation allowance (39.8 ) (8.7 )% (2.0 ) (0.5 )% (31.7 ) (8.2 )% Net change in unrecognized tax benefits 95.0 20.8 % 33.4 8.5 % 16.0 4.1 % Tax Cuts and Jobs Act 117.6 25.7 % 41.1 10.5 % — — % Deferred tax adjustments — — % 14.1 3.6 % 31.0 8.0 % Other 7.4 1.7 % (17.9 ) (4.6 )% (17.9 ) (4.6 )% Income tax expense and rate $ 307.5 67.2 % $ 330.5 84.0 % $ 95.6 24.6 % The primary adjustments to the statutory rate in 2018 were the following items: • one-time tax on unremitted cumulative non-U.S. earnings of foreign subsidiaries ("Transition Tax"); • increase in tax expense for unrecognized tax benefits; • new minimum tax on certain non-U.S. earnings; • decrease in tax expense for release of valuation allowance attributable to tax initiatives; and • decrease in tax expense due to increase in U.S. tax credits Unrecognized Tax Benefits We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized: Year Ended December 31, (in millions) 2018 2017 2016 Beginning balance of unrecognized tax benefits $ 214.3 $ 162.6 $ 131.3 Additions for tax positions of current year 106.0 7.3 11.1 Additions for tax positions of prior years 59.5 49.3 23.4 Reductions for tax positions of prior years (7.0 ) (4.3 ) (1.4 ) Reductions for lapses of statutes of limitation and settlements (16.4 ) (0.6 ) (1.8 ) Ending balance of unrecognized tax benefits $ 356.4 $ 214.3 $ 162.6 In 2018 , our unrecognized tax benefit increased by $142.1 million , related primarily to an increase in unrecognized tax benefits in North America. In 2017 , we increased our unrecognized tax benefit by $51.7 million primarily related to an increase in unrecognized tax benefits in North America. If the unrecognized tax benefits at December 31, 2018 were recognized, our income tax provision would decrease by $332.5 million , resulting in a substantially lower effective tax rate. Based on the potential outcome of the Company’s global tax examinations and the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the unrecognized tax benefits will change within the next 12 months. The associated impact on the reserve balance is estimated to be a decrease in the range of $0 to $2.5 million . We recognize interest and penalties related to unrecognized tax benefits in income tax provision in the Consolidated Statements of Operations. We had a liability of approximately of $18.2 million at December 31, 2018 for the payment of interest (before any tax benefit), a liability of $14.8 million (of which $4.5 million represents penalties) at December 31, 2017 and a liability of approximately $12.0 million (of which $3.7 million represents penalties) at December 31, 2016 . In 2018 , there was a negligible net change in interest and penalties in the tax accruals for uncertainties in prior years. In 2017 , there was a $4.0 million increase in interest and penalties in the tax accruals for uncertainties in prior years. In 2016 , there was a $ 5.6 million increase in interest and penalties in the tax accruals for uncertainties in prior years. Most of the unrecognized tax benefit amount of $356.4 million relates to North America. Income Tax Returns The Internal Revenue Service (the “Service”) has concluded its examination of the legacy Sealed Air U.S. federal income tax returns for all years through 2008, except 2007 which remains open to the extent of a capital loss carryback. The Service is currently auditing 2011 U.S. federal income tax returns of legacy Sealed Air. We are also under examination by the IRS for the years 2012-2014. The outcome of the negotiations for this exam period, which includes the Settlement Agreement payments described below, may affect the utilization of certain tax attributes and require us to make a significant payment. State income tax returns are generally subject to examination for a period of 3 to 5 years after their filing date. We have various state income tax returns in the process of examination, and are open to examination for periods after 2002. Our foreign income tax returns are under examination in various jurisdictions in which we conduct business. Income tax returns in foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years after their filing date. We have various foreign returns in the process of examination but have largely concluded all other income tax matters for the years prior to 2010. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Cryovac Transaction Commitments and Contingencies Settlement Agreement and Related Costs As discussed below, on February 3, 2014 (the “Effective Date”), the Plan (as defined below) implementing the Settlement agreement (as defined below) became effective with W. R. Grace & Co., or Grace, emerging from bankruptcy and the injunctions and releases provided by the Plan becoming effective. The Settlement agreement provided for resolution of current and future asbestos-related claims, fraudulent transfer claims, and successor liability claims made against the Company and our affiliates in connection with the Cryovac transaction described below, as well as indemnification claims by Fresenius Medical Care Holdings, Inc. and affiliated companies in connection with the Cryovac transaction. On the Effective Date, the Company’s subsidiary, Cryovac, Inc. (which was converted to Cryovac, LLC on December 31, 2018), made the payments contemplated by the Settlement agreement, consisting of aggregate cash payments in the amount of $929.7 million to the WRG Asbestos PI Trust (the “PI Trust”) and the WRG Asbestos PD Trust (the “PD Trust”) and the transfer of 18 million shares of Sealed Air common stock (the “Settlement Shares”) to the PI Trust, in each case reflecting adjustments made in accordance with the Settlement agreement. To fund the cash payment, we used $555 million of cash and cash equivalents and utilized borrowings of $260 million from our revolving credit facility and $115 million from our accounts receivable securitization programs. In connection with the issuance of the Settlement Shares and their transfer to the PI Trust by Cryovac, the Company entered into a Registration Rights Agreement, dated as of February 3, 2014 (the “Registration Rights Agreement”), with the PI Trust as initial holder of the Settlement Shares. In accordance with the Registration Rights Agreement, the Company filed with the SEC a shelf registration statement covering resales of the Settlement Shares on April 4, 2014 , and the shelf registration statement became effective on such date. On June 13, 2014, we repurchased $130 million , or 3,932,244 shares, of common stock at a price of $33.06 per share from the PI Trust. We are currently under examination by the IRS with respect to the deduction of the approximately $1.49 billion for the 2014 taxable year for the payments made pursuant to the Settlement agreement. The IRS has indicated that it intends to disallow this deduction in full. We strongly disagree with the IRS position and are protesting this finding with the IRS. The resolution of the IRS's challenge could take several years and the outcome cannot be predicted. Nevertheless, we believe that we have meritorious defenses for the deduction of the payments made pursuant to the Settlement agreement. If the IRS's disallowance of the deduction were sustained, in whole or in part, we would have to remit all or a portion of the refund of taxes previously received and such disallowance could have a material adverse effect on our consolidated financial condition and results of operations. For a description of the Cryovac transaction, asbestos-related claims and the parties involved, see “Cryovac Transaction,” “Discussion of Cryovac Transaction Commitments and Contingencies,” “Fresenius Claims,” “Canadian Claims” and “Additional Matters Related to the Cryovac Transaction” below. Cryovac Transaction On March 31, 1998, we completed a multi-step transaction that brought the Cryovac packaging business and the former Sealed Air Corporation’s business under the common ownership of the Company. These businesses operated as subsidiaries of the Company, and the Company acted as a holding company. As part of that transaction, the parties separated the Cryovac packaging business, which previously had been held by various direct and indirect subsidiaries of the Company, from the remaining businesses previously held by the Company. The parties then arranged for the contribution of these remaining businesses to a company now known as W. R. Grace & Co., and the Company distributed the Grace shares to the Company’s stockholders. As a result, W. R. Grace & Co. became a separate publicly owned company. The Company recapitalized its outstanding shares of common stock into a new common stock and a new convertible preferred stock. A subsidiary of the Company then merged into the former Sealed Air Corporation, which became a subsidiary of the Company and changed its name to Sealed Air Corporation (US). Discussion of Cryovac Transaction Commitments and Contingencies In connection with the Cryovac transaction, Grace and its subsidiaries retained all liabilities arising out of their operations before the Cryovac transaction, whether accruing or occurring before or after the Cryovac transaction, other than liabilities arising from or relating to Cryovac’s operations. Among the liabilities retained by Grace are liabilities relating to asbestos-containing products previously manufactured or sold by Grace’s subsidiaries prior to the Cryovac transaction, including its primary U.S. operating subsidiary, W. R. Grace & Co. — Conn., which has operated for decades and has been a subsidiary of Grace since the Cryovac transaction. The Cryovac transaction agreements provided that, should any claimant seek to hold the Company or any of its subsidiaries responsible for liabilities retained by Grace or its subsidiaries, including the asbestos-related liabilities, Grace and its subsidiaries would indemnify and defend us. Since the beginning of 2000, we have been served with a number of lawsuits alleging that, as a result of the Cryovac transaction, we were responsible for alleged asbestos liabilities of Grace and its subsidiaries, some of which were also named as co-defendants in some of these actions. Among these lawsuits were several purported class actions and a number of personal injury lawsuits. Some plaintiffs sought damages for personal injury or wrongful death, while others sought medical monitoring, environmental remediation or remedies related to an attic insulation product. Neither the former Sealed Air Corporation nor Cryovac, Inc. ever produced or sold any of the asbestos-containing materials that were the subjects of these cases. While the allegations in these actions directed to us varied, these actions all appeared to allege that the transfer of the Cryovac business as part of the Cryovac transaction was a fraudulent transfer or gave rise to successor liability. In the Joint Proxy Statement furnished to their respective stockholders in connection with the Cryovac transaction, both parties to the transaction stated their belief that none of the transfers contemplated to occur in the Cryovac transaction would be fraudulent transfers and the parties’ belief that the Cryovac transaction complied with other relevant laws. However, if a court applying the relevant legal standards had reached conclusions adverse to us, these determinations could have had a materially adverse effect on our consolidated financial condition and results of operations, and we could have been required to return the property or its value to the transferor or to fund liabilities of Grace or its subsidiaries for the benefit of their creditors, including asbestos claimants. None of these cases reached resolution through judgment, settlement or otherwise. We signed the Settlement agreement, described below, that provided for the resolution of these claims. Moreover, as discussed below, Grace’s Chapter 11 bankruptcy proceeding stayed all of these cases and the orders confirming Grace’s plan of reorganization enjoined parties from prosecuting Grace-related asbestos claims against the Company. We signed the Settlement agreement, described below, that provided for the resolution of these claims. On April 2, 2001, Grace and a number of its subsidiaries filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in the District of Delaware (the “Bankruptcy Court”). In connection with Grace’s Chapter 11 filing and at Grace’s request, the court issued an order dated May 3, 2001, which was modified on January 22, 2002, under which the court stayed all the filed or pending asbestos actions against us and, upon filing and service on us, all future asbestos actions (collectively, the “Preliminary Injunction”). Pursuant to the Preliminary Injunction, no further proceedings involving us could occur in the actions that were stayed except upon further order of the Bankruptcy Court. Committees appointed to represent asbestos claimants in Grace’s bankruptcy case received the court’s permission to pursue fraudulent transfer and other claims against the Company and its subsidiary Cryovac, Inc., and against Fresenius. This proceeding was brought in the U.S. District Court for the District of Delaware (the “District Court”) (Adv. No. 2-2210). The claims against Fresenius were based upon a 1996 transaction between Fresenius and W. R. Grace & Co. — Conn. Fresenius is not affiliated with us. In June 2002, the court permitted the U.S. government to intervene as a plaintiff in the fraudulent transfer proceeding, so that the U.S. government could pursue allegations that environmental remediation expenses were underestimated or omitted in the solvency analysis of Grace conducted at the time of the Cryovac transaction. On November 27, 2002, we reached an agreement in principle with the Committees prosecuting the claims against the Company and Cryovac, Inc., to resolve all current and future asbestos-related claims arising from the Cryovac transaction (as memorialized by the parties and approved by the Bankruptcy Court, the “Settlement agreement”). The parties subsequently signed the definitive Settlement agreement as of November 10, 2003 consistent with the terms of the agreement in principle, and the Settlement agreement was approved by order of the Bankruptcy Court dated June 27, 2005. The Settlement agreement called for payment of nine million shares of our common stock and $513 million in cash, plus interest on the cash payment at a 5.5% annual rate starting on December 21, 2002 and ending on the effective date of an appropriate plan of reorganization in the Grace bankruptcy, when we would be required to make the payment. These shares were subject to customary anti-dilution provisions that adjust for the effects of stock splits, stock dividends and other events affecting our common stock, and as a result, the number of shares of our common stock issued under the Settlement agreement increased to eighteen million shares upon the two -for-one stock split in March 2007. The Settlement agreement provided that, upon the effective date of the final plan of reorganization and payment of the shares and cash, all present and future asbestos-related claims against us that arise from alleged asbestos liabilities of Grace and its affiliates (including former affiliates that became our affiliates through the Cryovac transaction) would be channeled to and become the responsibility of one or more trusts established under Section 524(g) of the Bankruptcy Code. The Settlement agreement also provided for resolution of all fraudulent transfer claims against us arising from the Cryovac transaction as well as the Fresenius claims described below. The Settlement agreement provided for releases of all those claims upon payment. Under the Settlement agreement, we cannot seek indemnity from Grace for our payments required by the Settlement agreement. The order approving the Settlement agreement also provided that the Preliminary Injunction stay of proceedings involving us described above continued through the effective date of the final plan of reorganization, after which, upon implementation of the Settlement agreement, we have been released from the Grace asbestos liabilities asserted in those proceedings and their continued prosecution against us are enjoined. As more fully discussed below, the Settlement agreement became effective upon Grace’s emergence from bankruptcy pursuant to the Plan. Following the Effective Date, the Bankruptcy Court issued an order dismissing the proceedings pursuant to which the Preliminary Injunction was issued. On September 19, 2008, Grace, the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants’ Representative, and the Official Committee of Equity Security Holders filed, as co-proponents, a plan of reorganization that incorporated a settlement of all present and future asbestos-related personal injury claims against Grace (as filed and amended from time to time, the “Plan”). Amended versions of the Plan and related exhibits and documents were filed with the Bankruptcy Court from time to time. The Plan provides for the establishment of two asbestos trusts under Section 524(g) of the United States Bankruptcy Code to which present and future asbestos-related personal injury and property damage claims are channeled. The Plan also incorporates the Settlement agreement, including our payment of the amounts contemplated by the Settlement agreement. The Bankruptcy Court entered a memorandum opinion overruling certain objections to the Plan on January 31, 2011, and entered orders on January 31, 2011 and February 15, 2011 (collectively with the opinion, the “Bankruptcy Court Confirmation Orders”) confirming the Plan and requesting that the District Court issue and affirm the Bankruptcy Court Confirmation Order, including the injunction under Section 524(g) of the Bankruptcy Code. Various parties appealed or otherwise challenged the Bankruptcy Court Confirmation Orders. On January 30, 2012 and June 11, 2012, the District Court issued memorandum opinions and orders (collectively with the Bankruptcy Court Confirmation Orders, the “Confirmation Orders”) overruling all objections to the Plan and confirming the Plan in its entirety, including the approval and issuance of the injunctions under Section 524(g) of the Bankruptcy Code and the other injunctions, releases, and indemnifications set forth in the Plan and the Bankruptcy Court Confirmation Order. Five appeals to the Confirmation Orders were filed with the United States Court of Appeals for the Third Circuit (the “Third Circuit Court of Appeals”). The Third Circuit Court of Appeals dismissed or denied the appeals in separate opinions, with the final dismissal occurring on the Effective Date. On January 29, 2014, by agreement of the parties, the Bankruptcy Court dismissed with prejudice the fraudulent transfer action brought against the Company by the Committees appointed to represent asbestos claimants in Grace’s bankruptcy. Also on the Effective Date, the remaining conditions to the effectiveness of the Plan and the Settlement agreement were satisfied or waived by the relevant parties (including the Company), and the Plan implementing the Settlement agreement became effective and Grace emerged from bankruptcy on the Effective Date. In addition, under the Plan, the Confirmation Orders, and the Settlement agreement, Grace is required to indemnify us with respect to asbestos and certain other liabilities. Although we believe the possibility to be remote, if any courts were to refuse to enforce the injunctions or releases contained in the Plan and the Settlement agreement with respect to any claims, and if, in addition, Grace were unwilling or unable to defend and indemnify the Company and its subsidiaries for such claims, then we could be required to pay substantial damages, which could have a material adverse effect on our consolidated financial condition and results of operations. Fresenius Claims In January 2002, we filed a declaratory judgment action against Fresenius Medical Care Holdings, Inc., its parent, Fresenius AG, a German company, and specified affiliates in New York State court asking the court to resolve a contract dispute between the parties. The Fresenius parties contended that we were obligated to indemnify them for liabilities that they might incur as a result of the 1996 Fresenius transaction mentioned above. The Fresenius parties’ contention was based on their interpretation of the agreements between them and W. R. Grace & Co. — Conn. in connection with the 1996 Fresenius transaction. In February 2002, the Fresenius parties announced that they had accrued a charge of $172 million for these potential liabilities, which included pre-transaction tax liabilities of Grace and the costs of defense of litigation arising from Grace’s Chapter 11 filing. We believe that we were not responsible to indemnify the Fresenius parties under the 1996 agreements and filed the action to proceed to a resolution of the Fresenius parties’ claims. In April 2002, the Fresenius parties filed a motion to dismiss the action and for entry of declaratory relief in its favor. We opposed the motion, and in July 2003, the court denied the motion without prejudice in view of the November 27, 2002 agreement in principle referred to above. On the Effective Date, and in connection with the Plan and the Settlement agreement, we and the Fresenius parties exchanged mutual releases, releasing us from any and all claims related to the 1996 Fresenius transaction. Canadian Claims In November 2004, the Company’s Canadian subsidiary Sealed Air (Canada) Co./Cie learned that it had been named a defendant in the case of Thundersky v. The Attorney General of Canada, et al. (File No. CI4-1-39818), pending in the Manitoba Court of Queen’s Bench. Grace and W. R. Grace & Co. — Conn. were also named as defendants. The plaintiff brought the claim as a putative class proceeding and sought recovery for alleged injuries suffered by any Canadian resident, other than in the course of employment, as a result of Grace’s marketing, selling, processing, manufacturing, distributing and/or delivering asbestos or asbestos-containing products in Canada prior to the Cryovac Transaction. A plaintiff filed another proceeding in January 2005 in the Manitoba Court of Queen’s Bench naming the Company and specified subsidiaries as defendants. The latter proceeding, Her Majesty the Queen in Right of the Province of Manitoba v. The Attorney General of Canada, et al. (File No. CI5-1-41069), sought the recovery of the cost of insured health services allegedly provided by the Government of Manitoba to the members of the class of plaintiffs in the Thundersky proceeding. In October 2005, we learned that six additional putative class proceedings had been brought in various provincial and federal courts in Canada seeking recovery from the Company and its subsidiaries Cryovac, Inc. and Sealed Air (Canada) Co./Cie, as well as other defendants including W. R. Grace & Co. and W. R. Grace & Co. — Conn., for alleged injuries suffered by any Canadian resident, other than in the course of employment (except with respect to one of these six claims), as a result of Grace’s marketing, selling, manufacturing, processing, distributing and/or delivering asbestos or asbestos-containing products in Canada prior to the Cryovac transaction. Grace and W. R. Grace & Co. — Conn. agreed to defend, indemnify and hold harmless the Company and its affiliates in respect of any liability and expense, including legal fees and costs, in these actions. In April 2001, Grace Canada, Inc. had obtained an order of the Superior Court of Justice, Commercial List, Toronto (the “Canadian Court”), recognizing the Chapter 11 actions in the United States of America involving Grace Canada, Inc.’s U.S. parent corporation and other affiliates of Grace Canada, Inc., and enjoining all new actions and staying all current proceedings against Grace Canada, Inc. related to asbestos under the Companies’ Creditors Arrangement Act. That order was renewed repeatedly. In November 2005, upon motion by Grace Canada, Inc., the Canadian Court ordered an extension of the injunction and stay to actions involving asbestos against the Company and its Canadian affiliate and the Attorney General of Canada, which had the effect of staying all of the Canadian actions referred to above. The parties finalized a global settlement of these Canadian actions (except for claims against the Canadian government). That settlement, which has subsequently been amended (the “Canadian Settlement”), will be entirely funded by Grace. The Canadian Court issued an Order on December 13, 2009 approving the Canadian Settlement. We do not have any positive obligations under the Canadian Settlement, but we are a beneficiary of the release of claims. The release in favor of the Grace parties (including us) became operative upon the effective date of a plan of reorganization in Grace’s United States Chapter 11bankruptcy proceeding. As filed, the Plan contemplates that the claims released under the Canadian Settlement will be subject to injunctions under Section 524(g) of the Bankruptcy Code. As indicated above, the Confirmation Orders with respect to the Plan were entered by the Bankruptcy Court on January 31, 2011 and February 15, 2011 and the District Court on January 30, 2012 and on June 11, 2012. The Canadian Court issued an Order on April 8, 2011 recognizing and giving full effect to the Bankruptcy Court’s Confirmation Order in all provinces and territories of Canada in accordance with the Bankruptcy Court Confirmation Order’s terms. As described above, the Plan became effective on February 3, 2014. In accordance with the above-mentioned December 13, 2009 order of the Canadian court, on the Effective Date the actions became permanently stayed until they were amended to remove the Grace parties as named defendants. The above-mentioned actions in the Manitoba Court of Queen’s Bench were dismissed by the Manitoba court as against the Grace parties on February 19, 2014. The remaining actions were either dismissed or discontinued with prejudice by the Canadian courts as against the Grace parties in May and June 2015, but for two actions in the Province of Quebec, which were discontinued by order of the Quebec court in February 2016. Although we believe the possibility to be remote, if the Canadian courts refuse to enforce the final plan of reorganization in the Canadian courts, and if in addition Grace is unwilling or unable to defend and indemnify the Company and its subsidiaries in these cases, then we could be required to pay substantial damages, which we cannot estimate at this time and which could have a material adverse effect on our consolidated financial condition and results of operations. Additional Matters Related to the Cryovac Transaction In view of Grace’s Chapter 11 filing, we may receive additional claims asserting that we are liable for obligations that Grace had agreed to retain in the Cryovac transaction and for which we may be contingently liable. To date, we are not aware of any material claims having been asserted or threatened against us. Final determinations and accountings under the Cryovac transaction agreements with respect to matters pertaining to the transaction had not been completed at the time of Grace’s Chapter 11 filing in 2001. We filed claims in the bankruptcy proceeding that reflect the costs and liabilities that we have incurred or may incur and that Grace and its affiliates agreed to retain or that are subject to indemnification by Grace and its affiliates under the Cryovac transaction agreements, other than payments to be made under the Settlement agreement. Grace has alleged that we are responsible for specified amounts under the Cryovac transaction agreements. On February 3, 2014, following Grace’s emergence from bankruptcy, the Company (for itself and its affiliates, collectively, the “Sealed Air Parties”) and Grace (for itself and its affiliates, collectively, the “Grace Parties”) entered into a claims settlement agreement (the “Claims Settlement”) to resolve certain of the parties’ claims against one another arising under the Cryovac transaction agreements (the “Transaction Claims”). Under the Claims Settlement, the Sealed Air Parties released and waived Transaction Claims against the Grace Parties other than asbestos-related claims, Fresenius-related claims, environmental claims, insurance claims, mass tort claims, non-monetary tax sharing agreement claims, certain claims listed in annexes to proofs of claim filed by the Sealed Air Companies in connection with the Grace bankruptcy, claims relating to certain matters described in the Plan, certain executory contract claims relating to certain leased sites or sites that were divided as part of the Cryovac transaction, and certain indemnification claims. Under the Claims Settlement, the Grace Parties released and waived Transaction Claims against the Sealed Air Companies other than non-monetary tax sharing agreement claims, certain executory contract claims relating to certain leased sites or sites that were divided as part of the Cryovac transaction, and certain indemnification claims. The Claims Settlement also provides that the Sealed Air Parties and the Grace Parties will share equally all fees and expenses relating to certain litigation brought by former Cryovac employees. Except to the extent that a claim is specifically referenced, the Claims Settlement does not supersede or affect the obligations of the parties under the Plan or our Settlement agreement. 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 consolidated financial condition or results 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 consolidated financial condition or results 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: • indemnities in connection with the sale of businesses, primarily related to the sale of Diversey. Our indemnity obligations under the relevant agreements may be limited in terms of time, amount or scope. As it relates to certain income tax related liabilities, the relevant agreements may not provide any cap for such liabilities, and the period in which we would be liable would lapse upon expiration of the statute of limitation for assessment of the underlying taxes. Because of the conditional nature of these obligations and the unique facts and circumstances involved in each particular agreement, we are unable to reasonably estimate the potential maximum exposure associated with these items; • 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 consolidated financial position and results of operations; and • licenses of intellectual property by us to third parties in which we have agreed to indemnify the licensee against third-party infringement claims. As of December 31, 2018, the Company has no reason to believe a loss exceeding amounts already recognized would be incurred. Other Principal Contractual Obligations At December 31, 2018 , we had other principal contractual obligations, which included agreements to purchase an estimated amount of goods, including raw materials, or services in the normal course of business, aggregating to approximately $70.2 million . The estimated future cash outlays are as follows: Year Amount (in millions) 2019 $ 43.4 2020 19.3 2021 6.9 2022 0.6 Total $ 70.2 Asset Retirement Obligations The Company has recorded asset retirement obligations primarily associated with asbestos abatement, lease restitution and the removal of underground tanks. The Company's asset retirement obligation liabilities were $10.5 million and $11.0 million at December 31, 2018 and 2017 , respectively. The Company also recorded assets within property and equipment, net which included $3.6 million and $3.7 million related to buildings and $6.9 million and $7.3 million related to leasehold improvements as of December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 , 2017 and 2016 accretion expense was $0.3 million . Leases We are obligated under the terms of various leases covering primarily warehouse and office facilities and production equipment, as well as smaller manufacturing sites that we occupy. We account for the majority of our leases as operating leases, which may include purchase or renewal options. At December 31, 2018 , estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: Year Amount (in millions) 2019 $ 28.5 2020 20.1 2021 14.7 2022 10.1 2023 6.9 Thereafter 17.0 Total $ 97.3 Net rental expense was $32.3 million in 2018 , $12.1 million in 2017 and $27.5 million in 2016 . |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' (Deficit) Equity | Stockholders’ Equity (Deficit) Repurchase of Common Stock In July 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. That repurchase program had no expiration date and replaced the previously authorized program, which was terminated. In March 2017, our Board of Directors authorized an increase to the existing share repurchase program by up to an additional $1.5 billion of the Company’s common stock. Additionally, on May 2, 2018, the Board of Directors increased the share repurchase program authorization to $1.0 billion . This new program has no expiration date and replaces the previous authorizations. Refer to Part II, Item 5., "Issuer Purchases of Equity Securities" for further information During the year ended December 31, 2018 , we repurchased 14,898,454 shares for a total of approximately $651.4 million with an average share price of $43.72 . During the year ended December 31, 2017 , we repurchased 27,320,816 shares, for approximately $1.2 billion with an average share price of $45.44 . These repurchases were made under privately negotiated, accelerated share repurchase programs or open market transactions pursuant to the share repurchase program previously approved by our Board of Directors. During the year ended December 31, 2018, share purchases under open market transactions were 13,678,818 shares, for approximately $571.4 million with an average share price of $41.77 . In November 2017, the Company entered into an accelerated share repurchase agreement with a third-party financial institution to repurchase $400.0 million of the Company’s common stock. Through December 31, 2017, the Company had received a total of 7,089,056 shares under this agreement. At the conclusion of the program in February 2018, the Company received a total of 8,308,692 shares with an average price of $48.14 . Dividends The following table shows our total cash dividends paid in the years ended December 31: (In millions, except per share amounts) Total Cash Dividends Paid Total Cash Dividends Paid Per Common Share 2016 $ 121.6 $ 0.61 2017 119.7 0.64 2018 102.9 0.64 Total $ 344.2 On February 14, 2019 , our Board of Directors declared a quarterly cash dividend of $0.16 per common share payable on March 22, 2019 to stockholders of record at the close of business on March 8, 2019 . The estimated amount of this dividend payment is $24.9 million based on 156 million shares of our common stock issued and outstanding as of February 9, 2019. The dividend payments discussed above are recorded as reductions to cash and cash equivalents and retained earnings on our Consolidated Balance Sheets. Our credit facility and our notes contain covenants that restrict our ability to declare or pay dividends and repurchase stock. 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 consolidated financial condition and results of operations. There is no guarantee that our Board of Directors will declare any further dividends. Common Stock The following is a summary of changes during the years ended December 31, in shares of our common stock and common stock in treasury: 2018 2017 2016 Changes in common stock: Number of shares, beginning of year 230,080,944 227,638,738 225,625,636 Restricted stock shares issued for new awards under the Omnibus Incentive Plan and 2005 Contingent Stock Plan (1) 569,960 480,283 481,834 Restricted stock shares, forfeited (1) (86,518 ) (184,235 ) (89,699 ) Shares issued for vested restricted stock units 151,280 607,231 179,826 Shares issued as part of acquisition (2) 20,000 — — Shares issued for 2012 President and Chief Operating Officer (COO) Four-Year Award — — 325,000 Shares issued for 2014 Special Performance Stock Units (PSU) Awards 658,783 749,653 — Shares issued for 2015 Three-Year PSU Awards 129,139 — — Shares issued for 2014 Three-Year PSU Awards — 636,723 — Shares issued for 2013 Three-Year PSU Awards — — 1,074,017 Shares issued for Stock Leverage Opportunity Awards ( SLO) 109,841 136,783 20,587 Shares granted and issued under the Omnibus Incentive Plan and Directors Stock Plan to Directors 10,841 15,768 21,537 Other activity (3) (25,233 ) — — Number of shares issued, end of year (1) 231,619,037 230,080,944 227,638,738 Changes in common stock in treasury: Number of shares held, beginning of year 61,485,423 34,156,355 29,612,337 Repurchase of common stock (4) 14,826,924 27,320,816 4,680,313 Profit sharing contribution paid in stock (538,524 ) (502,519 ) (830,613 ) Restricted stock shares, forfeited — — (1,813 ) Shares withheld for taxes 190,844 510,771 696,131 Number of shares held, end of year (4) 75,964,667 61,485,423 34,156,355 Number of common stock outstanding, end of year 155,654,370 168,595,521 193,482,383 (1) As of December 31, 2018, there were 1,478 restricted stock shares issued for new awards under the Omnibus Incentive Plan and ( 5,024 ) restricted stock shares forfeited that were not yet reflected by our Recordkeeper. The table above and our Consolidated Balance Sheets reflects the number of shares issued per our Recordkeeper. (2) In connection with the acquisition of B+ Equipment in the third quarter of 2015, the Company issued 20,000 shares of restricted common stock on September 26, 2018 to certain former equity holders of B+ Equipment. These shares were issued in offshore transactions with no direct selling efforts in the United States and without registration under the Securities Act of 1933, as amended, in reliance upon the issuer safe harbor provided by Regulation S. (3) Other activity in 2018 primarily relates to prior period adjustment related to years not contained within the table. (4) As of December 31, 2018, there were 71,530 shares of common stock that had been repurchased by the Company but not yet reflected by the Recordkeeper. The table above and our Consolidated Balance Sheets reflects the number of shares held in treasury per our Recordkeeper. Share-Based Compensation In 2014, the Board of Directors adopted, and its stockholders approved, the 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”). Under the Omnibus Incentive Plan, the maximum number of shares of Common Stock authorized was 4,250,000 , plus total shares available to be issued as of May 22, 2014 under the 2002 Directors Stock Plan and the 2005 Contingent Stock Plan (collectively, the “Predecessor Plans”). The Omnibus Incentive Plan replaced the Predecessor Plans and no further awards were granted under the Predecessor Plans. The Omnibus Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance share units known as PSU awards, other stock awards and cash awards to officers, non-employee directors, key employees, consultants and advisors. In 2018, the Board of Directors adopted, and its shareholders approved an amendment and restatement to the 2014 Omnibus Incentive Plan. The amended plan adds 2,199,114 shares of common stock to the share pool previously available under the Omnibus Incentive Plan. Prior to the Omnibus Incentive Plan, the 2005 Contingent Stock Plan represented our sole long-term equity compensation program for officers and employees. The 2005 Contingent Stock Plan provided for awards of equity-based compensation, including restricted stock, restricted stock units, PSU awards and cash awards measured by share price, to our executive officers and other key employees, as well as U.S.-based key consultants. Prior to the Omnibus Incentive Plan, the 2002 Directors Stock Plan provided for annual grants of shares to non-employee directors, and interim grants of shares to eligible directors elected at times other than at an annual meeting, as all or part of the annual or interim retainer fees for non-employee directors. During 2002, we adopted a plan that permitted non-employee directors to elect to defer all or part of their annual retainer until the non-employee director retires from the Board of Directors. The non-employee director could elect to defer the portion of the annual retainer payable in shares of stock, as well as the portion, if any, payable in cash. Cash dividends on deferred shares are reinvested into additional deferred units in each non-employee director’s account. A summary of the changes in common shares available for awards under the Omnibus Incentive Plan and Predecessor Plans follows: 2018 2017 2016 Number of shares available, beginning of year 3,668,954 5,385,870 7,694,739 Newly Registered Shares under Omnibus Incentive Plan 2,199,114 — — Restricted stock shares issued for new awards under the Omnibus Incentive Plan and 2005 Contingent Stock Plan (1) (571,438 ) (480,283 ) (481,834 ) Restricted stock shares forfeited (1) 91,542 184,235 87,886 Restricted stock units awarded (219,923 ) (351,946 ) (428,595 ) Restricted stock units forfeited 64,122 288,801 29,774 Shares issued for 2012 President and COO Four-Year Award — — (325,000 ) Shares issued for 2014 Special PSU Awards (658,783 ) (749,653 ) — Shares issued for 2015 Three-Year PSU Awards (129,139 ) — — Shares issued for 2014 Three-Year PSU Awards — (636,723 ) — Shares issued for 2013 Three-Year PSU Awards — — (1,074,017 ) Restricted stock units awarded for SLO Awards (23,478 ) (44,254 ) (81,614 ) SLO units forfeited 817 3,639 — Director shares granted and issued (10,560 ) (15,491 ) (18,022 ) Director units granted and deferred (2) (16,505 ) (17,008 ) (17,447 ) Shares withheld for taxes (3) 94,624 101,767 — Number of shares available, end of year (4) 4,489,347 3,668,954 5,385,870 (1) As of December 31, 2018, there were 1,478 restricted stock shares issued for new awards under the Omnibus Incentive Plan and (5,024) restricted stock shares forfeited that were not yet reflected by our Recordkeeper. The table above (shares available under the Omnibus Incentive Plan) reflects this activity as occurred creating a reconciling difference between shares issued and number of shares available under the Omnibus Plan. (2) Director units granted and deferred include the impact of share-settled dividends earned and deferred on deferred shares. (3) The Omnibus Incentive Plan and 2005 Contingent Stock Plan permit withholding of taxes and other charges that may be required by law to be paid attributable to awards by withholding a portion of the shares attributable to such awards. (4) The above table excludes approximately 1.0 million contingently issuable shares under the PSU awards and SLO awards, which represents the maximum number of shares that could be issued under those plans as of December 31, 2018 . We record share-based incentive compensation expense in selling, general and administrative expenses and cost of sales on our Consolidated Statements of Operations for both equity-classified awards and liability-classified awards. We record corresponding credit to additional paid-in capital within stockholders’ equity for equity-classified awards, and to either current or non-current liability for liability-classified awards based on the fair value of the share-based incentive compensation awards at the date of grant. Total expense for the liability-classified awards continues to be remeasured to fair value at the end of each reporting period. We recognize an expense or credit reflecting the straight-line recognition, net of estimated forfeitures, of the expected cost of the program. The number of PSUs earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. The following table summarizes the Company’s pre-tax share-based incentive compensation expense and related income tax benefit for the years ended December 31, 2018 , 2017 and 2016 related to the Company’s PSU awards, SLO awards and restricted stock awards. (In millions) 2018 2017 2016 2018 Three-year PSU Awards $ 2.7 $ — $ — 2017 Three-year PSU Awards (1) 3.7 9.8 — 2017 COO and Chief Executive Officer-Designate 2017 New Hire Equity Awards 0.2 0.1 — 2016 Three-year PSU Awards (1) (3.0 ) 2.0 6.3 2016 President & CEO Inducement Award — 0.5 0.5 2015 Three-year PSU Awards — (0.8 ) 3.5 2014 Special PSU Awards (2) — 3.2 8.8 2014 Three-year PSU Awards — — 4.9 2012 President & COO Four-year Incentive Compensation — — 0.2 SLO Awards 1.6 1.1 2.5 Other long-term share-based incentive compensation programs (3)(4) 24.7 32.6 36.2 Total share-based incentive compensation expense (5) $ 29.9 $ 48.5 $ 62.9 Associated tax benefits recognized $ 4.9 $ 11.8 $ 19.7 (1) On May 18, 2017, The Organization and Compensation Committee of our Board of Directors (“O&C Committee”) approved a change in the vesting policy regarding the existing 2017 Three-year PSU Awards and 2016 Three-year PSU Awards for Ilham Kadri. The approved change resulted in a pro-rata share of vesting calculated on the close date of the sale of Diversey. Dr. Kadri’s awards were still subject to the performance metrics stipulated in the plan documents, and will be paid out in accordance with the original planned timing. (2) The amount does not include expense related to the 2014 Special PSU awards that were settled in cash of $1.0 million in the year ended December 31, 2017. (3) The amount includes the expenses associated with the restricted stock awards consisting of restricted stock shares, restricted stock units and cash-settled restricted stock unit awards. (4) On August 4, 2017, the Equity Award Committee approved a change in the vesting condition regarding the existing long-term share based compensation programs transferring to Diversey as part of the sale of Diversey. The approved change resulted in a pro-rata share of vesting calculated on the close date of the sale of Diversey. In December 2018, the Equity Award Committee approved a change in the vesting condition for certain individuals who would be leaving the Company under a phase of our Reinvent SEE Restructuring program. For both modifications, we recorded the cumulative expense of the higher fair value of the impacted awards at modification approval. (5) The amounts do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock as these contributions are not considered share-based incentive compensation. Restricted Stock, Restricted Stock Units and Cash-Settled Restricted Stock Unit Awards Restricted stock, restricted stock units and cash-settled restricted stock unit awards (cash payment in an amount equal to the value of the shares on the vesting date) provide for a vesting period. Awards vest earlier in the event of the participant’s death or disability. If a participant terminates employment prior to vesting, then the award of restricted stock, restricted stock units or cash-settled restricted stock unit awards is forfeited, except for certain circumstances following a change in control. The O&C Committee may waive the forfeiture of all or a portion of an award. During the vesting period, holders of unvested shares of restricted stock (but not holders of unvested shares of restricted stock units or cash-settled restricted stock unit awards) are entitled to receive dividends on the same basis as dividends are paid to other stockholders and are entitled to vote the unvested shares. The following table summarizes activity for unvested restricted stock and restricted stock units for 2018 : Restricted stock shares Restricted stock units Shares Weighted-Average per Share Fair Value on Grant Date Aggregate Intrinsic Value (in millions) Shares Weighted-Average per Share Fair Value on Grant Date Aggregate Intrinsic Value (in millions) Non-vested at December 31, 2017 1,045,416 $ 45.21 557,422 $ 45.34 Granted 571,438 44.24 219,923 44.60 Vested (296,754 ) 45.34 $ 13.1 (151,280 ) 45.28 $ 6.7 Forfeited or expired (91,542 ) 45.46 (64,122 ) 45.16 Non-vested at December 31, 2018 1,228,558 $ 44.98 561,943 $ 45.08 A summary of the Company’s fair values of its vested restricted stock shares and restricted stock units are shown in the following table: (In millions) 2018 2017 2016 Fair value of restricted stock shares vested $ 13.5 $ 19.5 $ 10.0 Fair value of restricted stock units vested $ 6.9 $ 22.4 $ 5.2 A summary of the Company’s unrecognized compensation cost and weighted average periods over which the compensation cost is expected to be recognized for its non-vested restricted stock shares and restricted stock units are shown in the following table: (In millions) Unrecognized Compensation Costs Weighted Average to be recognized (in years) Restricted Stock shares $ 25.2 1.3 Restricted Stock units $ 10.9 1.3 The non-vested cash awards excluded from table above had $0.9 million unrecognized compensation costs and weighted-average remaining contractual life of approximately 1.2 years. We have recognized a liability of $1.4 million in other non-current liabilities on our Consolidated Balance Sheets. PSU Awards Three -year PSU awards for 2016, 2017 and 2018 During the first 90 days of each year, the 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 Consolidated Balance Sheets. The O&C Committee established principal performance goals, which are (i) total shareholder return for three -year performance period weighted at 50% for the 2016 awards and 34% for 2017 and 2018 awards; (ii) consolidated Adjusted EBITDA margin measured in the final year of the award weighted at 50% for the 2016 and 33% for 2017 and 2018 awards; and (iii) three-year compound annual growth rate of net trade sales weighted at 33% for the 2017 and 2018 awards. The total number of shares to be issued for these awards can range from zero to 200% of the target number of shares. PSUs – Adjusted EBITDA The PSUs granted based on Adjusted EBITDA are contingently awarded and will be payable in shares of the Company’s common stock based on the Company’s Adjusted EBITDA during the three years of the performance period compared a target set at the time of the grant by the O&C Committee. The fair value of the PSUs based on Adjusted EBITDA is based on grant date fair value which is equivalent to the closing price of one share of the Company’s common stock on the date of grant. The number of PSUs based on Adjusted EBITDA varies based on the probable outcome of the performance condition. The Company reassesses at each reporting date whether achievement of the performance condition is probable and accrues compensation expense if and when achievement of the performance condition is probable. The number of PSUs granted based on Adjusted EBITDA and the grant date fair value are shown in the following table: 2018 2017 2016 Number of units granted 57,378 99,522 165,391 Weighted average fair value on grant date (1) $ 41.72 $ 45.21 $ 43.09 (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 Three -year PSU Awards and 2016 Three -year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. PSUs – Total Shareholder Return (TSR) The PSUs granted based on TSR are contingently awarded and will be payable in shares of the Company’s common stock subject to the condition that the number of PSUs, if any, earned by the employees upon the expiration of a three -year award performance period is dependent on the Company’s TSR ranking relative to a peer group of companies. The fair value of the PSUs based on TSR was estimated on the grant date using a Monte Carlo Simulation. Other assumptions include the expected volatility of all companies included in the TSR, the historical share price returns analysis of all companies included in the TSR 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 PSUs based on TSR (which is considered a market condition) is a fixed amount determined at the grant date fair value and is recognized 100% over the three -year award performance period regardless of whether PSUs are awarded at the end of the award performance period. The number of PSUs granted based on TSR and the assumptions used to calculate the grant date fair value of the PSUs based on TSR are shown in the following table: 2018 2017 2016 Number of units granted 56,829 100,958 124,755 Weighted average fair value on grant date (1) $ 43.40 $ 44.24 $ 54.94 Expected Price volatility (1) 22.00 % 25.31 % 26.69 % Risk-free interest rate (1) 2.00 % 1.56 % 0.98 % (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 three -year PSU Awards and 2016 three -year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. PSUs - Net Trade Sales Compound Annual Growth Rate The PSUs granted based on Net Trade Sales Compound Annual Growth Rate (CAGR) are contingently awarded and will be payable in shares of the Company’s common stock based on the Company’s Net Trade Sales growth over a three-year award performance period compared to a target set at the time of the grant by the O&C Committee. The fair value of the PSUs based on Net Trade Sales Growth is based on grant date fair value which is equivalent to the closing price of one share of the Company’s common stock on the date of grant. The number of PSUs based on Net Trade Sales Growth varies based on the probable outcome of the performance condition. The Company reassesses at each reporting date whether achievement of the performance condition is probable and accrues compensation expense if and when achievement of the performance condition is probable. The number of PSUs granted based on Net Trade Sales Growth and the grant date fair value are shown in the following table: 2018 2017 Number of units granted 57,378 99,522 Weighted average fair value on grant date (1) $ 41.72 $ 45.21 (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 three -year PSU Awards and 2016 three - year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. The following table includes additional information related to estimated earned payout based on the probable outcome of the performance condition and market condition as of December 31, 2018 : Estimated Payout % Net Trade Sales Growth Adjusted EBITDA TSR Combined 2018 Three-year PSU Awards 100 % 100 % 100 % 100 % 2017 Three-year PSU Awards 200 % 77 % 100 % 125 % 2016 Three-year PSU Awards NA — % — % — % The following table summarizes activity for outstanding Three -year PSU awards (excluding 2014 Special PSU Award) for 2018 : Shares Aggregate Intrinsic Value (in millions) (2) Outstanding at December 31, 2017 662,931 Granted (1) 171,585 Converted (176,169 ) $ 7.5 Forfeited or expired (14,491 ) Outstanding at December 31, 2018 643,856 Fully vested at December 31, 2018 426,649 $ 14.9 (1) This represents the target number of performance units granted. Actual number of PSUs earned, if any, is dependent upon performance and may range from 0% to 200% percent of the target. (2) The aggregate intrinsic value is based on the actual number of PSUs earned and vested at December 31, 2017 which were issued in February 2018 . The following table summarizes activity for non-vested Three -year PSU awards for 2018 : Shares Weighted-Average per Share Fair Value on Grant Date Non-vested at December 31, 2017 118,956 $ 48.40 Granted 171,585 42.29 Vested (61,091 ) 47.50 Forfeited or expired (12,243 ) 45.67 Non-vested at December 31, 2018 217,207 $ 42.94 A summary of the Company’s fair value for its vested three-year PSU awards is shown in the following table: (In millions) 2018 2017 2016 Fair value of three-year PSU awards vested $ 14.9 $ 24.0 $ 14.3 A summary of the Company’s unrecognized compensation cost for three-year PSU awards at the current estimated earned payout based on the probable outcome of the performance condition and weighted average periods over which the compensation cost is expected to be recognized as shown in the following table: (In millions) Unrecognized Compensation Costs Weighted Average to be recognized (in years) 2018 Three-year PSU Awards $ 4.4 2 2017 Three-year PSU Awards 0.9 1 2016 Three-year PSU Awards — 0 Chief Operating Officer (COO) and Chief Executive Officer-Designate 2017 New Hire Equity Awards On September 5, 2017, the Board elected Edward L. Doheny II, Chief Operating Officer and CEO-Designate and elected him as a Director of the Company effective September 18, 2017. Mr. Doheny worked on transitioning with Jerome Peribere until December 31, 2017 and then assumed the role and title of President and Chief Executive Officer effective as of January 1, 2018. Additionally, on September 5, 2017, the Company entered into an offer letter agreement, effective September 18, 2017, with Mr. Doheny. The Letter Agreement provides that Mr. Doheny will be granted on his start date two new-hire equity awards, one that is time-vesting and the other that is performance-vesting (the “New Hire Awards”). The time-vesting New Hire Award, for 30,000 shares, requires Mr. Doheny to remain in service with the Company through December 31, 2020. The grant date fair value for this award was $42.89 per share. The performance-vesting New Hire Award, for 70,000 shares, in addition to the time-vesting requirement noted above, requires that either (i) the Company’s cumulative total stockholder return for 2018-2020 be in the top 33% 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, 2020 equals at least $60.00 per share, or (ii) the Company’s stock price as of December 31, 2020 equals at least $75.00 per share. The Letter Agreement provides that the stock price as of December 31, 2020 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 of peer companies for a period of time that approximates the duration between the beginning 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% from the time of the award to the end of the 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 New Hire Award are shown in the following table: 2017 Performance-vesting New Hire Award Fair value on grant date $ 10.63 Expected price volatility 25.0 % Risk-free interest rate 1.6 % The awards are described in further detail in Mr. Doheny’s Offer Letter filed with the SEC as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 7, 2017. 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 is time-vesting and the other 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 per share. As of December 31, 2017, the requirements of the performance-vesting Inducement Awards were not met; as such, no shares vested for this Inducement Award. 2014 Special PSU Award During March 2014, the O&C Committee approved a special PSU award to the named executive officers and a broader group of other employees. The special PSU awards are earned principally based on achievement of specified levels of free cash flow, above targets established in the Company’s three-year strategic plan, over the three -year performance period of 2014-2016. In addition, no portion of an award is earned unless we achieve a minimum specified level of adjusted earnings per share for 2016, in order to balance the free cash flow goal with an appropriate focus on generating earnings. To further balance the incentives, the award earned based on free cash flow performance will be reduced by 25% if our relative TSR for the performance period is below the 50th percentile of an approved peer group of companies. Actual achievement of the award based on performance through 2016 was 200% , and the special PSUs earned were paid out in equal installments over two years . The first half was paid in 2017, and following the achievement of a 2017 performance requirement, the second half was paid in 2018. Based on the additional 2017 performance requirement, 658,783 shares were vested to individuals during the first quarter 2018. Stock Leverage Opportunity Awards Before the start of each performance year, certain key executives are eligible to elect to receive all or a portion of their annual cash bonus for that year, in increments of 25% of the annual bonus, as an award of restricted stock or restricted stock units under the Omnibus Incentive Plan in lieu of cash. The portion provided as an equity award may be given a premium to be determined by the O&C Committee each year and will be rounded up to the nearest whole share. The award will be granted following the end of the performance year and after determination by the O&C Committee of the amount of the annual bonus award for each executive officer and other selected key executives who has elected to take all |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides details of comprehensive loss: (In millions) Unrecognized Pension Items Cumulative Translation Adjustment Unrecognized Gains (Losses) on Derivative Instruments for net investment hedge Unrecognized Gains (Losses) on Derivative Instruments for cash flow hedge Impact of Accounting Standard Update (1) Accumulated Other Comprehensive Loss, Net of Taxes Balance at December 31, 2016 (2) $ (276.7 ) $ (701.9 ) $ 21.0 $ 8.5 $ — $ (949.1 ) Other comprehensive income (loss) before reclassifications 167.1 7.5 (67.8 ) (10.4 ) — 96.4 Less: amounts reclassified from accumulated other comprehensive loss 6.2 — — 1.6 — 7.8 Net current period other comprehensive income (loss) 173.3 7.5 (67.8 ) (8.8 ) — 104.2 Balance at December 31, 2017 (2) $ (103.4 ) $ (694.4 ) $ (46.8 ) $ (0.3 ) $ — $ (844.9 ) Other comprehensive (loss) income before reclassifications (31.5 ) (50.4 ) 15.0 2.9 — (64.0 ) Less: amounts reclassified from accumulated other comprehensive loss 2.1 — — (0.2 ) — 1.9 Net current period other comprehensive (loss) income (29.4 ) (50.4 ) 15.0 2.7 — (62.1 ) Impact of Accounting Standard Update — — — — (13.4 ) (13.4 ) Balance at December 31, 2018 (2) $ (132.8 ) $ (744.8 ) $ (31.8 ) $ 2.4 $ (13.4 ) $ (920.4 ) (1) In the fourth quarter, the Company Adopted ASU 2018-02. As part of the adoption, the Company has elected to reclassify the tax effects of the TCJA from AOCL to retained earnings. The adoption of the ASU 2018-02 resulted in a $13.4 million reclassification from AOCL to retained earnings due to the stranded tax effects of the TCJA. (2) The ending balance in AOCL includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustments were $65.8 million , $(78.2) million and $(8.3) million for the years ended December 31, 2018 , 2017 and 2016 . The following table provides detail of amounts reclassified from AOCL: (In millions) 2018 (1) 2017 (1) 2016 (1) Location of Amount Reclassified from AOCL Defined benefit pension plans and other post-employment benefits: Prior service costs $ 0.3 $ 1.3 $ 1.6 Actuarial losses (3.1 ) (10.0 ) (11.2 ) Total pre-tax amount (4) (2.8 ) (8.7 ) (9.6 ) Other (expense) income, net Tax benefit 0.7 2.5 2.3 Net of tax (2.1 ) (6.2 ) (7.3 ) Reclassifications from cumulative translation adjustment: Charges related to Venezuelan subsidiaries — — 46.0 (3) Net gains (losses) on cash flow hedging derivatives: Foreign currency forward contracts 0.2 0.9 0.6 (2) Other (expense) income, net Interest rate and currency swaps — (3.4 ) (25.9 ) Interest expense, net and Other (expense) income, net Treasury locks 0.1 0.1 0.1 (2) Interest expense, net Total pre-tax amount 0.3 (2.4 ) (25.2 ) Tax (expense) benefit (0.1 ) 0.8 8.3 Net of tax 0.2 (1.6 ) (16.9 ) Total reclassifications for the period $ (1.9 ) $ (7.8 ) $ 21.8 (1) Amounts in parenthesis indicate changes to earnings (loss). (2) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 13, “Derivatives and Hedging Activities,” of the Notes to Consolidated Financial Statements for additional details. (3) Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2, “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the “Impact of Inflation and Currency Fluctuation” section of the Notes to the Consolidated Financial Statements for further details. (4) Amounts related to Diversey have been reclassified to earnings from discontinued operations, net of tax on the Consolidated Statements of Operations. For the years ended December 31, 2017 and 2016, there was $3.7 million and $3.8 million reclassified, respectively. |
Other (Expense) Income, net
Other (Expense) Income, net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, net | Other (Expense) Income, net The following table provides details of other (expense) income, net: Year Ended December 31, (In millions) 2018 2017 2016 Net foreign exchange transaction (loss) gain $ (16.7 ) $ (5.9 ) $ 8.3 Bank fee expense (4.4 ) (5.8 ) (5.4 ) Pension income (expense) other than service costs 3.9 16.7 (3.8 ) Other, net (0.9 ) 1.2 0.8 Other (expense) income, net $ (18.1 ) $ 6.2 $ (0.1 ) |
Net Earnings per Common Share
Net Earnings per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings per Common Share | Net Earnings per Common Share The following table sets forth the calculation of basic and diluted net earnings per common share under the two-class method for the years ended December 31: Year Ended December 31, (In millions, except per share amounts) 2018 2017 2016 Basic Net Earnings Per Common Share: Numerator Net earnings $ 193.1 $ 814.9 $ 486.4 Distributed and allocated undistributed net earnings to unvested restricted stockholders (0.9 ) (4.9 ) (3.4 ) Distributed and allocated undistributed net earnings 192.2 810.0 483.0 Distributed net earnings - dividends paid to common stockholders (101.7 ) (118.7 ) (118.7 ) Allocation of undistributed net earnings to common stockholders $ 90.5 $ 691.3 $ 364.3 Denominator Weighted average number of common shares outstanding - basic 159.4 186.9 194.3 Basic net earnings per common share: Distributed net earnings $ 0.64 $ 0.64 $ 0.61 Allocated undistributed net earnings to common stockholders 0.57 3.69 1.88 Basic net earnings per common share $ 1.21 $ 4.33 $ 2.49 Diluted Net Earnings Per Common Share: Numerator Distributed and allocated undistributed net earnings to common stockholders $ 192.2 $ 810.0 $ 483.0 Add: Allocated undistributed net earnings to unvested restricted stockholders 0.5 4.3 2.6 Less: Undistributed net earnings reallocated to unvested restricted stockholders (0.5 ) (4.3 ) (2.6 ) Net earnings available to common stockholders - diluted $ 192.2 $ 810.0 $ 483.0 Denominator Weighted average number of common shares outstanding - basic 159.4 186.9 194.3 Effect of contingently issuable shares 0.1 0.7 1.2 Effect of unvested restricted stock units 0.3 0.7 0.7 Weighted average number of common shares outstanding - diluted under two-class 159.8 188.3 196.2 Effect of unvested restricted stock - participating security 0.4 0.6 1.0 Weighted average number of common shares outstanding - diluted under treasury stock 160.2 188.9 197.2 Diluted net earnings per common share $ 1.20 $ 4.29 $ 2.46 PSU Awards We included contingently issuable shares using the treasury stock method for our PSU awards in the diluted weighted average number of common shares outstanding based on the number of contingently issuable shares that would be issued assuming the end of our reporting period was the end of the relevant PSU award contingency period. The calculation of diluted weighted average shares outstanding related to PSUs was nominal in 2018 and approximately 1 million shares in the years 2017 and 2016 . SLO Awards The shares or units associated with the 2018 SLO awards are considered contingently issuable shares and therefore are not included in the basic or diluted weighted average number of common shares outstanding for the year ended December 31, 2018 . These shares or units will not be included in the common shares outstanding until the final determination of the amount of annual incentive compensation is made in the first quarter of 2019 . Once this determination is made, the shares or units will be included in diluted weighted average number of common shares outstanding if the impact to diluted net earnings per common share is dilutive. The numbers of shares or units associated with SLO awards for 2018 , 2017 and 2016 were nominal. |
Summarized Quarterly Financial
Summarized Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information (Unaudited) | Summarized Quarterly Financial Information (Unaudited) 2018 First Second Third Fourth (In millions, except per share amounts) Quarter Quarter Quarter Quarter Net sales $ 1,131.0 $ 1,155.2 $ 1,186.2 $ 1,260.3 Gross profit 374.0 363.5 365.5 399.1 Net (loss) earnings from continuing operations (208.0 ) 83.3 75.6 199.4 Gain on sale of discontinued operations, net of tax 7.4 31.1 3.4 0.9 Net (loss) earnings (1) $ (200.6 ) $ 114.4 $ 79.0 $ 200.3 Basic: Continuing operations $ (1.25 ) $ 0.52 $ 0.48 $ 1.28 Discontinued operations 0.04 0.19 0.02 0.01 Net (loss) earnings per common share - basic $ (1.21 ) $ 0.71 $ 0.50 $ 1.29 Diluted: Continuing operations $ (1.25 ) $ 0.52 $ 0.48 $ 1.28 Discontinued operations 0.04 0.19 0.02 — Net (loss) earnings per common share - diluted $ (1.21 ) $ 0.71 $ 0.50 $ 1.28 2017 First Second Third Fourth (In millions, except per share amounts) Quarter Quarter Quarter Quarter Net sales $ 1,032.2 $ 1,070.3 $ 1,131.3 $ 1,227.8 Gross profit 335.4 343.5 360.7 372.5 Net (loss) earnings from continuing operations (53.7 ) 29.0 62.5 25.0 Gain (loss) on sale of discontinued operations, net of tax — — 699.3 (58.6 ) Net earnings from discontinued operations, net of tax 10.5 75.1 25.7 0.1 Net (loss) earnings (1) $ (43.2 ) $ 104.1 $ 787.5 $ (33.5 ) Basic: Continuing operations $ (0.27 ) $ 0.14 $ 0.33 $ 0.14 Discontinued operations 0.05 0.39 3.86 (0.33 ) Net (loss) earnings per common share - basic $ (0.22 ) $ 0.53 $ 4.19 $ (0.19 ) Diluted: Continuing operations $ (0.27 ) $ 0.14 $ 0.33 $ 0.14 Discontinued operations 0.05 0.38 3.82 (0.33 ) Net (loss) earnings per common share - diluted $ (0.22 ) $ 0.52 $ 4.15 $ (0.19 ) (1) The sum of the quarterly per share amounts may not agree to the respective annual amounts due to rounding. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Description Balance at Beginning of Year Charged to Costs and Expenses Deductions Foreign Currency Translation and Other Balance at End of Year (in millions) Year Ended December 31, 2018 Allowance for doubtful accounts $ 6.5 $ 2.3 $ (1.0 ) (1) $ 1.3 $ 9.1 Inventory obsolescence reserve $ 15.5 $ 4.8 $ (1.4 ) (2) $ (0.8 ) $ 18.1 Valuation allowance on deferred tax assets $ 189.2 $ 32.8 $ — $ (3.6 ) $ 218.4 Year Ended December 31, 2017 Allowance for doubtful accounts $ 8.4 $ 0.3 $ (2.5 ) (1) $ 0.3 $ 6.5 Inventory obsolescence reserve $ 13.4 $ 3.5 $ (2.7 ) (2) $ 1.3 $ 15.5 Valuation allowance on deferred tax assets $ 167.7 $ 3.4 $ — $ 18.1 $ 189.2 Year Ended December 31, 2016 Allowance for doubtful accounts $ 10.5 $ (0.1 ) $ (2.1 ) (1) $ 0.1 $ 8.4 Inventory obsolescence reserve $ 12.2 $ 3.8 $ (2.1 ) (2) $ (0.5 ) $ 13.4 Valuation allowance on deferred tax assets $ 208.9 $ (37.4 ) $ — $ (3.8 ) $ 167.7 (1) Primarily accounts receivable balances written off, net of recoveries. (2) Primarily items removed from inventory. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our 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. All amounts are in millions, except per share amounts, and are approximate due to rounding. |
Reclassification | Reclassification As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other (expense) income, net to cost of sales. |
Use of Estimates | Use of Estimates The preparation of our Consolidated Financial Statements and related disclosures in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the period reported. These estimates include, among other items, assessing the collectability of receivables, asset retirement obligations, the use and recoverability of inventory, the estimation of fair value of financial instruments, assumptions used in the calculation of income taxes, useful lives and recoverability of tangible assets and goodwill and other intangible assets, assumptions used in our defined benefit pension plans and other post-employment benefit plans, estimates related to self-insurance such as the aggregate liability for uninsured claims using historical experience, insurance and actuarial estimates and estimated trends in claim values, fair value measurement of assets, costs for incentive compensation and accruals for commitments and contingencies. We review these estimates and assumptions periodically using historical experience and other factors and reflect the effects of any revisions in the Consolidated Financial Statements in the period we determine any revisions to be necessary. Actual results could differ from these estimates. |
Financial Instruments | Financial Instruments We may use financial instruments, such as cross-currency swaps, interest rate swaps, caps and collars, U.S. Treasury lock agreements and foreign currency exchange forward contracts and options related to our borrowing and trade activities. We may use these financial instruments from time to time to manage our exposure to fluctuations in interest rates and foreign currency exchange rates. We do not purchase, hold or sell derivative financial instruments for trading purposes. We face credit risk if the counterparties to these transactions are unable to perform their obligations. Our policy is to have counterparties to these contracts that have at least an investment grade rating. We report derivative instruments at fair value and establish criteria for designation and effectiveness of transactions entered into for hedging purposes. Before entering into any derivative transaction, we identify our specific financial risk, the appropriate hedging instrument to use to reduce this risk, and the correlation between the financial risk and the hedging instrument. We use forecasts and historical data as the basis for determining the anticipated values of the transactions to be hedged. We do not enter into derivative transactions that do not have a high correlation with the underlying financial risk we are trying to reduce. We regularly review our hedge positions and the correlation between the transaction risks and the hedging instruments. We account for derivative instruments as hedges of the related underlying risks if we designate these derivative instruments as hedges and the derivative instruments are effective as hedges of recognized assets or liabilities, forecasted transactions, unrecognized firm commitments or forecasted intercompany transactions. We record gains and losses on derivatives qualifying as cash flow hedges in AOCL, to the extent that hedges are effective and until the underlying transactions are recognized on the Consolidated Statements of Operations, at which time we recognize the gains and losses on the Consolidated Statements of Operations. We recognize gains and losses on qualifying fair value hedges and the related loss or gain on the hedged item attributable to the hedged risk on the Consolidated Statements of Operations. Generally, 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. Any deferred gains or losses associated with derivative instruments are recognized on the Consolidated Statements of Operations over the period in which the income or expense on the underlying hedged transaction is recognized. See Note 13, “Derivatives and Hedging Activities,” of the Notes to Consolidated Financial Statements for further details. |
Foreign Currency Translation | Foreign Currency Translation In non-U.S. locations that are not considered highly inflationary, we translate the balance sheets at the end of period exchange rates with translation adjustments accumulated in stockholders’ equity on our Consolidated Balance Sheets. We translate the statements of operations at the average exchange rates during the applicable period. We translate assets and liabilities of our operations in countries with highly inflationary economies at the end of period exchange rates, except that nonmonetary asset and liability amounts are translated at historical exchange rates. In countries with highly inflationary economies, we translate items reflected in the statements of operations at average rates of exchange prevailing during the period, except that nonmonetary amounts are translated at historical exchange rates. Impact of Inflation and Currency Fluctuation Argentina Economic and political events in Argentina have continued to expose us to heightened levels of foreign currency exchange risk. As of July 1, 2018, Argentina was designated as a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the Argentine peso as the functional currency for our subsidiaries in Argentina. All Argentine peso-denominated monetary assets and liabilities were remeasured into U.S. dollars using the current exchange rate available to us, and any changes in the exchange rate are reflected in net foreign exchange transaction loss, within other (expense) income, net related to our Argentinian subsidiaries on the Consolidated Statements of Operations. For the year ended December 31, 2018 , the Company recorded a $2.4 million remeasurement loss. The exchange rate as of December 31, 2018 was 37.6679 . We will continue to evaluate each reporting period the appropriate exchange rate to remeasure our financial statements based on the facts and circumstances as applicable. Venezuela Economic and political events in Venezuela exposed 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 Consolidated Statements of Operations. |
Commitments and Contingencies - Litigation | Commitments and Contingencies — Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of these actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of these matters and whether a reasonable estimation of the probable loss, if any, can be made. In assessing probable losses, we make estimates of the amount of insurance recoveries, if any. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that disputed matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. We expense legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred. |
Revenue Recognition | Revenue Recognition Revenue from contracts with customers is recognized using a five-step model consisting of the following: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Performance obligations are satisfied when the Company transfers control of a good or service to a customer, which can occur over time or at a point in time. The amount of revenue recognized is based on the consideration to which the Company expects to be entitled in exchange for those goods or services, including the expected value of variable consideration. The customer’s ability and intent to pay the transaction price is assessed in determining whether a contract exists with the customer. If collectability of substantially all of the consideration in a contract is not probable, consideration received is not recognized as revenue unless the consideration is nonrefundable and the Company no longer has an obligation to transfer additional goods or services to the customer or collectability becomes probable. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales on the Consolidated Statements of Operations. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments impact the amount of net sales recognized by us in the period of adjustment. Charges for rebates and other allowances were approximately 5% of sales in 2018 , 2017 and 2016 . Refer to Note 3, "Revenue Recognition, Contracts with Customers," of the Notes to Consolidated Financial Statements for further discussion of revenue. Assets recognized for the costs to obtain or fulfill a contract The Company recognizes incremental costs to fulfill a contract as an asset if such incremental costs are expected to be recovered, relate directly to a contract or anticipated contract, and generate or enhance resources that will be used to satisfy performance obligations in the future. The Company recognizes incremental costs to obtain a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. For example, the Company generally expenses sales commissions when incurred because the contract term is less than 1 year. These costs are recorded within sales and marketing expenses. Costs for shipping and handling activities performed after a customer obtains control of a good are accounted for as costs to fulfill a contract and are included in cost of goods sold. The Company does not adjust consideration in contracts with customers for the effects of a significant financing component if the Company expects that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of contracts. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales on the Consolidated Statements of Operations. Allocation of Transaction Price: Sealed Air determines the standalone selling price for a performance obligation by first looking for observable selling prices of that performance obligation sold on a standalone basis. If an observable price is not available, we estimate the standalone selling price of the performance obligation using one of the three suggested methods in the following order of preference: adjusted market assessment approach, expected cost plus a margin approach, and residual approach. Sealed Air often offers rebates to customers in their contracts that are related to the amount of consumables purchased. We believe that this form of variable consideration should only be allocated to consumables because the entire amount of variable consideration relates to the customer’s purchase of and Sealed Air’s efforts to provide consumables. Additionally, Sealed Air has many contracts that have pricing tied to third-party indices. We believe that variability from index-based pricing should be allocated specifically to consumables because the pricing formulas in these contracts are related to the cost to produce consumables. Transfer of Control: Revenue is recognized upon transfer of control to the customer. Revenue for consumables and equipment sales is recognized based on shipping terms, which is the point in time the customer obtains control of the promised goods. Maintenance revenue is recognized straight-line on the basis that the level of effort is consistent over the term of the contract. Lease components within contracts with customers are recognized in accordance with Topic 840. Description of Revenue Generating Activities We employ sales, marketing and customer service personnel throughout the world who sell and market our products and services to and/or through a large number of distributors, fabricators, converters, e-commerce and mail order fulfillment firms, and contract packaging firms as well as directly to end-users such as food processors, foodservice businesses, supermarket retailers, pharmaceutical companies, healthcare facilities, medical device manufacturers, and other manufacturers. As discussed in Note 5, "Segments," of the Notes to Consolidated Financial Statements, our reporting segments include: Food Care and Product Care. Our Food Care applications are largely sold directly to end customers, while most of our Product Care products are sold through business supply distributors. Food Care: Food Care largely serves perishable food processors, predominantly in fresh red meat, smoked and processed meats, poultry and dairy (solids and liquids) markets worldwide, and maintains a leading position in target applications. Food Care provides integrated packaging materials and equipment solutions to provide food safety, shelf life extension, and total cost optimization with innovative, sustainable packaging that enables customers to reduce costs and enhance their brands in the marketplace. Product Care: Product Care packaging solutions are utilized across many global markets and are especially valuable to e-Commerce, electronics and industrial manufacturing. Product Care solutions are designed to protect valuable goods in shipping, and drive operational excellence for our customers, increasing their order fulfillment velocity while minimizing material usage, dimensional weight and packaging labor requirements. The acquisition of Fagerdala in 2017 and AFP in 2018 enabled us to further expand our protective packaging solutions in electronics, transportation and industrial markets with turnkey, custom-engineered, fabricated solutions. Product Care benefits from the continued expansion of e-Commerce, increasing freight costs, scarcity of labor, and increasing demand for more sustainable packaging. Product Care solutions are largely sold through supply distributors that sell to business/industrial end-users. Product Care solutions are additionally sold directly to fabricators, original equipment manufacturers, contract manufacturers, third-party logistics partners, e-commerce/fulfillment operations, and at various retail centers. Product Care solutions are marketed under industry-leading brands including Bubble Wrap ® packaging, Cryovac ® performance shrink films, Instapak ® polyurethane foam packaging systems, and Korrvu ® suspension and retention packaging. Identify Contract with Customer: For Sealed Air, the determination of whether an arrangement meets the definition of a contract under Topic 606 depends on whether it creates enforceable rights and obligations. While enforceability is a matter of law, we believe that enforceable rights and obligations in a contract must be substantive in order for the contract to be in scope of Topic 606. That is, the penalty for noncompliance must be significant relative to the minimum obligation. Fixed or minimum purchase obligations with penalties for noncompliance are the most common examples of substantive enforceable rights present in our contracts. We determined that the contract term is the period of enforceability outlined by the terms of the contract. This means that in many cases, the term stated in the contract is different than the period of enforceability. After the minimum purchase obligation is met, subsequent sales are treated as separate contracts on a purchase order by purchase order basis. If no minimum purchase obligation exists, each purchase order represents the contract. Performance Obligations: The most common goods and services determined to be distinct performance obligations are consumables/materials, equipment sales, and maintenance. Free on loan and leased equipment is typically identified as a separate lease component in scope of Topic 840. The other goods or services promised in the contract with the customer in most cases do not represent performance obligations because they are neither separate nor distinct, or they are not material in the context of the contract. Transaction Price and Variable Consideration: Sealed Air has many forms of variable consideration present in its contracts with customers, including rebates and other discounts. Sealed Air estimates variable consideration using either the expected value method or the most likely amount method as described in the standard. We include in the transaction price some or all of an amount of variable consideration estimated to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For all contracts that contain a form of variable consideration, Sealed Air estimates at contract inception, and periodically throughout the term of the contract, what volume of goods and/or services the customer will purchase in a given period and determines how much consideration is payable to the customer or how much consideration Sealed Air would be able to recover from the customer based on the structure of the type of variable consideration. In most cases the variable consideration in contracts with customers results in amounts payable to the customer by Sealed Air. Sealed Air adjusts the contract transaction price based on any changes in estimates each reporting period and performs an inception to date cumulative adjustment to the amount of revenue previously recognized. When the contract with a customer contains a minimum purchase obligation, Sealed Air only has enforceable rights to the amount of consideration promised in the minimum purchase obligation through the enforceable term of the contract. This amount of consideration, plus any variable consideration, makes up the transaction price for the contract. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments of transaction price impact the amount of net sales recognized by us in the period of adjustment. |
Shipping and Handling Costs | Shipping and Handling Costs Costs incurred for the transfer and delivery of goods to customers are recorded as a component of cost of sales. |
Research and Development | Research and Development We expense research and development costs as incurred. |
Share-Based Incentive Compensation | Share-Based Incentive Compensation At the 2014 Annual Meeting, the 2014 Omnibus Incentive Plan (the “Omnibus Plan”) was approved by our stockholders. At the 2018 Annual Shareholders' Meeting, the Board of Directors adopted, and our shareholders approved an amendment and restatement to the 2014 Omnibus Incentive Plan. See Note 19, “Stockholders’ Equity (Deficit),” of the Notes to the Consolidated Financial Statements for further information on this plan. We record share-based compensation awards exchanged for employee services at fair value on the date of grant and record the expense for these awards in cost of sales and in selling, general and administrative expense, as applicable, on our Consolidated Statements of Operations over the requisite employee service period. Share-based incentive compensation expense includes an estimate for forfeitures and anticipated achievement levels and is generally recognized over the expected term of the award on a straight-line basis. The Company accelerates expense on performance based awards using a graded vesting schedule for employees who meet retirement eligibility requirements prior to the end of the award’s service period. For performance-based awards, the Company reassesses at each reporting date whether achievement of the performance condition is probable and accrues compensation expense if and when achievement of the performance condition is probable. For performance awards with market based conditions, the fair value of the award is determined at the grant date and is recognized at 100% over the performance period regardless of actual market condition performance. |
Income Taxes | Income Taxes We file a consolidated U.S. federal income tax return and our non-U.S. subsidiaries file income tax returns in their respective local jurisdictions. We provide for income taxes on those portions of our foreign subsidiaries’ accumulated earnings that we believe are not reinvested indefinitely in our businesses. We account for income taxes under the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax benefit carryforwards. We determine deferred tax assets and liabilities at the end of each period using enacted tax rates. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon settlement with tax authorities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense on our Consolidated Statements of Operations. See Note 17, “Income Taxes,” of the Notes to Consolidated Financial Statements for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider highly liquid investments with original maturities of three months or less to be cash equivalents. Our policy is to invest cash in excess of short-term operating and debt service requirements in cash equivalents. Cash equivalents are stated at cost, which approximates fair value because of the short-term maturity of the instruments. Our policy is to transact with counterparties that are rated at least A- by Standard & Poor’s and A3 by Moody’s. Some of our operations are located in countries that are rated below A- or A3. In this case, we try to minimize our risk by holding cash and cash equivalents at financial institutions with which we have existing global relationships whenever possible, diversifying counterparty exposures and minimizing the amount held by each counterparty and within the country in total. |
Accounts Receivable Securitization Programs | Accounts Receivable Securitization Programs 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 an issuer of commercial paper administered by these banks. The wholly-owned subsidiary retains the receivables it purchases from the operating subsidiaries. Any transfers of undivided fractional ownership interests of receivables under the U.S. receivables securitization program to the two banks and an issuer 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 Consolidated Balance Sheets. 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 Consolidated Balance Sheets. We have a European accounts receivable securitization and purchase program with a special purpose vehicle, or SPV, two banks and a group of our European subsidiaries. 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 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 Consolidated Balance Sheets. 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 Consolidated Balance Sheets. See Note 9, “Accounts Receivable Securitization Programs,” of the Notes to Consolidated Financial Statements for further details. |
Accounts Receivable Factoring Agreements | Accounts Receivable Factoring Agreements The Company has entered into factoring agreements, to sell certain receivables to unrelated third-party financial institutions. We account for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from Accounts receivable, net on the Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. |
Trade Receivables, Net | Trade Receivables, Net In the normal course of business, we extend credit to customers that satisfy pre-defined credit criteria. Trade receivables, which are included on the Consolidated Balance Sheets, are stated at amounts due from our customers net of allowances for doubtful accounts. We maintain trade receivable allowances for estimated losses resulting from the likelihood of failure of our customers to make required payments. An additional allowance may be required if the financial condition of our customers deteriorate. |
Inventories, Net | Inventories, Net Our inventories are determined using the FIFO method or a weighted average for some raw materials. We state inventories at the lower of cost or net realizable value. Costs related to inventories include raw materials, direct labor and manufacturing overhead which are included in cost of sales on the Consolidated Statements of Operations. |
Property and Equipment, Net | Property and Equipment, Net We state property and equipment at cost, except for property and equipment that have been impaired, for which we reduce the carrying amount to the estimated fair value at the impairment date. We capitalize significant improvements and charge repairs and maintenance costs that do not extend the lives of the assets to expense as incurred. We remove the cost and accumulated depreciation of assets sold or otherwise disposed of from the accounts and recognize any resulting gain or loss upon the disposition of the assets. We depreciate the cost of property and equipment over their estimated useful lives on a straight-line basis as follows: buildings — 20 to 40 years; machinery and equipment — 5 to 10 years; and other property and equipment — 2 to 10 years. |
Goodwill and Identifiable Intangible Assets, Net | Goodwill and Identifiable Intangible Assets, Net Goodwill represents the excess of the aggregate of the following (1) consideration transferred, (2) the fair value of any noncontrolling interest in the acquiree and, (3) if the business combination is achieved in stages, the acquisition-date fair value of our previously held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Identifiable intangible assets consist primarily of patents, licenses, trademarks, trade names, customer lists and relationships, non-compete agreements and technology based intangibles and other contractual agreements. We amortize finite lived identifiable intangible assets over the shorter of their stated or statutory duration or their estimated useful lives, generally ranging from 3 to 17 years, on a straight-line basis to their estimated residual values and periodically review them for impairment. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. See Note 8, “Goodwill and Identifiable Intangible Assets, net,” of the Notes to Consolidated Financial Statements for further details. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets For finite-lived intangible assets, such as customer relationships, contracts, intellectual property, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we perform a review for impairment. We calculate the undiscounted value of the projected cash flows associated with the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is found to be greater, we record an impairment loss for the excess of book value over the fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate. For indefinite-lived intangible assets, such as trademarks and trade names, each year and whenever impairment indicators are present, we determine the fair value of the asset and record an impairment loss for the excess of book value over the fair value, if any. In addition, in all cases of an impairment review we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. See Note 8, “Goodwill and Identifiable Intangible Assets, net,” of the Notes to Consolidated Financial Statements for additional details. |
Self-Insurance | Self-Insurance We retain the obligation for specified claims and losses related to property, casualty, workers’ compensation and employee benefit claims. We accrue for outstanding reported claims and claims that have been incurred but not reported based upon management’s estimates of the aggregate liability for retained losses using historical experience, insurance company estimates and the estimated trends in claim values. Our estimates include management’s and independent insurance companies’ assumptions regarding economic conditions, the frequency and severity of claims and claim development patterns and settlement practices. These estimates and assumptions are monitored and evaluated on a periodic basis by management and are adjusted when warranted by changing circumstances. Although management believes it has the ability to adequately project and record estimated claim payments, actual results could differ significantly from the recorded liabilities. |
Pensions | Pensions For a number of our U.S. and international employees, we maintain defined benefit pension plans. We are required to make assumptions regarding the valuation of projected benefit obligations and the performance of plan assets for our defined benefit pension plans. We review and approve the assumptions made by our third-party actuaries regarding the valuation of benefit obligations and performance of plan assets. The principal assumptions concern the discount rate used to measure future obligations, the expected future rate of return on plan assets, the expected rate of future compensation increases and various other actuarial assumptions. The measurement date used to determine benefit obligations and plan assets is December 31. In general, significant changes to these assumptions could have a material impact on the costs and liabilities recorded in our Consolidated Financial Statements. See Note 15, “Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans,” of the Notes to Consolidated Financial Statements for information about the Company’s benefit plans. |
Net Earnings per Common Share | Net Earnings per Common Share Basic earnings per common share is calculated by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the period. Non-vested share-based payment awards that contain non-forfeitable rights to dividends are treated as participating securities and therefore included in computing earnings per common share using the “two-class method.” The two-class method is an earnings allocation formula that calculates basic and diluted net earnings per common share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Non-vested restricted stock issued under our Omnibus Plan prior to January 1, 2018 are considered participating securities since these securities have non-forfeitable rights to dividends when we declare a dividend during the contractual vesting period of the share-based payment award and are therefore included in our earnings allocation formula using the two-class method. When calculating diluted net earnings per common share, the more dilutive effect of applying either of the following is presented: (a) the two-class method (described above) assuming that the participating security is not exercised or converted, or, (b) the treasury stock method for the participating security. Our diluted net earnings per common share for all periods presented was calculated using the two-class method since such method was more dilutive. See Note 22, “Net Earnings Per Common Share,” of the Notes to Consolidated Financial Statements for further discussion. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). As a result of the TCJA, this ASU was issued to provide entities with the option to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings. The Company elected to early adopt ASU 2018-02 as of October 1, 2018 in which the impact was applied to the period of adoption. As part of the adoption, the Company has elected to reclassify the tax effects of the TCJA from AOCL to retained earnings. The adoption of the ASU 2018-02 resulted in a $13.4 million reclassification from AOCL to retained earnings due to the stranded tax effects of the TCJA. The primary AOCL balances which were impacted by the TCJA were unrecognized pension items and unrecognized gains (losses) on derivative instruments. In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). This update is intended to align the financial statements with an entity's risk management activities. ASU 2017-12 allows for changes in the designation and measurement of hedges as well as expands the disclosures of hedge results. The amendments in ASU 2017-12 are effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. The Company elected to early adopt ASU 2017-12 as of January 1, 2018. The adoption did not have an impact on the Company's Consolidated Financial Results. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 amends the considerations for determining what events require modification accounting. This new guidance requires an entity to consider the fair value of an award before and after modification, the vesting conditions of the modified award and the classification of the modified award as an equity instrument. The amendments in ASU 2017-09 are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2017-09 on January 1, 2018. The adoption did not have an impact on the Company's Consolidated Financial Results. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Benefit Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. This new guidance requires entities to report the service cost component in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component outside of income from operations. The amendments in ASU 2017-07 are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2017-07 on January 1, 2018. The effect of retrospectively adopting this guidance resulted in a reclassification of $16.7 million from cost of sales and selling, general and administrative expenses to other (expense) income, net on the Consolidated Statements of Operations for the year ended December 31, 2017 and a reclassification of $(3.8) million from cost of sales and selling, general and administrative expenses to other (expense) income, net on the Consolidated Statements of Operations for the year ended December 31, 2016. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 as part of the goodwill impairment test. The amount of the impairment charge to be recognized would now be the amount by which the carrying value exceeds the reporting unit’s fair value. The loss to be recognized cannot exceed the amount of goodwill allocated to that reporting unit. The amendments in ASU 2017-04 are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company has elected to early adopt ASU 2017-04 as of January 1, 2018. The Company has applied the guidance related to ASU 2017-04 during our annual impairment test in the fourth quarter of 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 provides a screen to determine when a set of assets is a business. This screen states that when substantially all of the fair value of a group of assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The amendments in ASU 2017-01 are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted ASU 2017-01 on January 1, 2018. The adoption did not have an impact on the Company's Consolidated Financial Results however, it could have a material impact on the Company's Consolidated Financial Results if the Company enters into future business combinations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that entities include restricted cash and restricted cash equivalents with cash and cash equivalents in the beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows. The amendments in ASU 2016-18 are effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. The Company adopted ASU 2016-18 on January 1, 2018. As a result of this retrospective adoption, the reclassification of restricted cash into a change in total cash resulted in a decrease in financing activities of $25.4 million and investing activities of $27.5 million for the year ended December 31, 2017 and an increase in cash used in financing activities of $3.6 million for the year ended December 31, 2016. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in ASU 2016-16 are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company adopted ASU 2016-16 on January 1, 2018. This was adopted using the modified retrospective approach which resulted in a decrease in other assets of $7.5 million , an increase in non-current deferred tax assets of $4.8 million , a decrease in other non-current liabilities of $1.7 million and a decrease in retained earnings was $1.0 million on the Consolidated Balance Sheets. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statements of cash flows. The amendments in ASU 2016-15 are effective for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The Company adopted ASU 2016-15 on January 1, 2018. As a result of the adoption, there were no impacts on prior year statements of cash flow however this adoption may impact future periods. 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. Additionally, in February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2018-03") and in March 2018, the FASB issued ASU 2018-04, Investments - Debt Securities (Subtopic 320) and Regulated Operations (Topic 980), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) ("ASU 2018-04") which were issued to clarify some of the language in ASU 2016-01. The amendments in ASU 2016-01, 2018-03 and 2018-04 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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. The Company adopted ASU 2016-01, 2018-03 and 2018-04 on January 1, 2018. The adoption of these standards did not have an impact on the Company's Consolidated Financial Results. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”) and issued subsequent amendments to the initial guidance, collectively, Topic 606. 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. 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, 2017. The Company adopted the new revenue recognition standard using the modified retrospective approach with a cumulative effect adjustment to beginning retained earnings at January 1, 2018. Prior periods presented were not retrospectively adjusted for this change. The Company has applied the new revenue recognition standard only to contracts that were not completed as of January 1, 2018. The Company elected to reflect the aggregate effect of all contract modifications that occurred before the beginning of the earliest period presented under the new revenue recognition standard when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations for the modified contract at transition. The effects of application of this relief are de minimis. Changes in accounting policy resulting from adoption of Topic 606 The adoption of Topic 606 did not have a significant impact on our consolidated financial statements with the exception of new and expanded disclosures. The following tables summarizes the effect of adoption of the new revenue recognition standard by line item on the Company’s Consolidated Financial Statements, and the reason for the change: Year Ended December 31, 2018 (In millions) As Reported Balances without Adoption of Topic 606 Effect of Change Net sales $ 4,732.7 $ 4,731.8 $ 0.9 Other current liabilities 428.9 428.1 0.8 Other non-current liabilities 653.3 648.9 4.4 Impact by Line Item Reason for Change Opening Balance Sheet Adjustment as of January 1, 2018 (In millions) Other current liabilities Certain contracts include an equipment accrual, whereby a customer is awarded a credit based on consumable purchases that can be redeemed for future equipment purchases. Long-term contracts that include an equipment accrual create a timing difference between when cash is collected and the performance obligation is satisfied. Upon the adoption of Topic 606 the equipment accrual balance was increased to reflect the standalone selling price within our equipment portfolio. $ 2.4 Retained earnings The modified retrospective adoption of the new revenue standard resulted in a cumulative adjustment decreasing retained earnings, which was associated with adjusting our equipment accrual contract offering to the standalone selling price value. (2.4 ) Lease income was an additional line item impacted by the new revenue standard; however, there is no timing change associated with the change in presentation. Under the new revenue standard, certain contracts that include free-on-loan equipment, with minimum purchase obligations and associated substantive penalties for noncompliance, were deemed to include a lease component that was not previously identified as an element to the contract under ASC 605. As such, a portion of the transaction price is reclassified from revenue to lease income. Recently Issued Accounting Standards In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. ASU 2018-16 adds the overnight index swap rate based on the Secured Overnight Financing Rate to the list of U.S. benchmark interest rates eligible to be hedged within ASC 815. This ASU names the Secured Overnight Financing Rate as the preferred reference rate alternative to the London Interbank Offered Rate (LIBOR). The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We are currently in the process of evaluating the effect that ASU 2018-16 will have on the Company's Consolidated Financial Results. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). ASU 2018-15 amends ASC 350-40 and aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. We are currently in the process of evaluating the effect that ASU 2018-15 will have on the Company's Consolidated Financial Results. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 eliminates, adds and clarifies certain disclosure requirements related to defined benefit plans and other postretirement plans. The guidance is effective for fiscal years ending after December 15, 2020, with early adoption permitted for reporting periods for which financial statements have yet to be issued or made available for issuance. We are currently in the process of evaluating the effect that ASU 2018-14 will have on the Company's Consolidated Financial Results. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 amends the fair value measurement disclosure requirements of ASC 820, including new, eliminated and modified disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted upon the issuance of this ASU, including interim periods for which financial statements have not yet been issued or made available for issuance. If adopted early, entities are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption of the new disclosure requirements until their effective date. We are currently in the process of evaluating the effect that ASU 2018-13 will have on the Company's Consolidated Financial Results. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and issued subsequent amendments to the initial guidance, collectively, Topic 326. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal periods. Entities may adopt earlier as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. We are currently in the process of evaluating this new standard update however we do not anticipate this to have a material impact on the Company's Consolidated Financial Results. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), (“ASU 2016-02”) and issued subsequent amendments to the initial guidance. This ASU requires an entity to recognize a right-of-use asset (ROU) 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. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for us on January 1, 2019, with early adoption permitted. Entities are required to adopt ASC 842 using a modified retrospective transition method. Full retrospective transition is prohibited. The guidance permits an entity to apply the standard’s transition provisions at either the beginning of the earliest comparative period presented in the financial statements or the beginning of the period of adoption (i.e., on the effective date). We expect to adopt the new standard on its effective date. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to: the recognition of new ROU assets and lease liabilities on our balance sheet for real estate and equipment operating leases; and providing significant new disclosures about our leasing activities. We do not expect a significant change in our leasing activities between now and adoption. The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. On adoption, we currently expect to recognize additional operating lease liabilities of approximately $75 to $95 million with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments for existing operating leases on our Consolidated Balance Sheets. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases, which will mean all consideration that is fixed, or in-substance fixed, relating to the non-lease components will be captured as part of our lease components for balance sheet purposes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Effect of Adoption of New Accounting Pronouncements | The following tables summarizes the effect of adoption of the new revenue recognition standard by line item on the Company’s Consolidated Financial Statements, and the reason for the change: Year Ended December 31, 2018 (In millions) As Reported Balances without Adoption of Topic 606 Effect of Change Net sales $ 4,732.7 $ 4,731.8 $ 0.9 Other current liabilities 428.9 428.1 0.8 Other non-current liabilities 653.3 648.9 4.4 Impact by Line Item Reason for Change Opening Balance Sheet Adjustment as of January 1, 2018 (In millions) Other current liabilities Certain contracts include an equipment accrual, whereby a customer is awarded a credit based on consumable purchases that can be redeemed for future equipment purchases. Long-term contracts that include an equipment accrual create a timing difference between when cash is collected and the performance obligation is satisfied. Upon the adoption of Topic 606 the equipment accrual balance was increased to reflect the standalone selling price within our equipment portfolio. $ 2.4 Retained earnings The modified retrospective adoption of the new revenue standard resulted in a cumulative adjustment decreasing retained earnings, which was associated with adjusting our equipment accrual contract offering to the standalone selling price value. (2.4 ) |
Revenue Recognition, Contract_2
Revenue Recognition, Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers Summarized by Segment Geography | For the year ended December 31, 2018 , revenues from contracts with customers summarized by Segment Geography were as follows: Year Ended December 31, 2018 (In millions) Food Care Product Care Total North America $ 1,444.1 $ 1,085.5 $ 2,529.6 EMEA (1) 651.6 382.1 1,033.7 Latin America 368.5 47.9 416.4 APAC (2) 423.8 300.1 723.9 Topic 606 Segment Revenue 2,888.0 1,815.6 4,703.6 Non-Topic 606 Revenue (Leasing) 20.1 9.0 29.1 Total $ 2,908.1 $ 1,824.6 $ 4,732.7 (1) EMEA = Europe, Middle East and Africa (2) APAC = Asia, Australia and New Zealand |
Contract Asset and Liabilities From Contracts with Customers | The opening and closing balances of contract liabilities arising from contracts with customers as of December 31, 2018 were as follows: (In millions) December 31, 2017 January 1, 2018, as adjusted December 31, 2018 Contract liabilities 3.1 5.5 10.4 |
Summary of Estimated Transaction Price Allocated to Performance Obligations or Portions of Performance Obligations Not Yet Satisfied | the following table summarizes the estimated transaction price from contracts with customers allocated to performance obligations or portions of performance obligations that have not yet been satisfied as of December 31, 2018 , as well as the expected timing of recognition of that transaction price. (In millions) Short-Term Long-Term Total Total transaction price $ 1.6 $ 8.8 $ 10.4 |
Discontinued Operations, Dive_2
Discontinued Operations, Divestitures and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Selected Financial Information of Discontinued Operations | The following table presents selected financial information regarding cash flows of Diversey in the Consolidated Statements of Cash Flows but are within discontinued operations in the Consolidated Statements of Operations: Year Ended December 31, (In millions) 2017 2016 Non-cash items included in net earnings from discontinued operations: Depreciation and amortization $ 29.3 $ 111.4 Share-based incentive compensation 10.2 12.0 Profit sharing expense 3.0 2.9 Provision for bad debt 2.3 5.0 Capital expenditures 11.9 17.8 Summary operating results of Diversey were as follows: Year Ended December 31, (In millions) 2017 2016 Net sales $ 1,669.0 $ 2,567.0 Cost of sales 950.4 1,440.3 Gross profit 718.6 1,126.7 Selling, general and administrative expenses 538.3 859.2 Amortization expense of intangible assets acquired 23.9 79.9 Operating profit 156.4 187.6 Other expense, net (17.0 ) (9.7 ) Earnings from discontinued operations before income tax provision (benefit) 139.4 177.9 Income tax provision (benefit) from discontinued operations (1) 28.0 (16.2 ) Net earnings from discontinued operations $ 111.4 $ 194.1 (1) For the year ended December 31, 2017 , net earnings from discontinued operations included tax expense of $28.0 million , primarily driven by a change in our repatriation strategy and offset by a favorable earnings mix in jurisdictions with lower rates. For the year ended December 31, 2016 , net earnings from discontinued operations were impacted by tax benefits of $16.2 million , primarily related to the release of reserves and favorable earnings mix in jurisdictions with lower tax rates. |
Summary of Identifiable intangible Assets, Net and Their Useful Life | The following tables summarizes the identifiable intangible assets, net and their useful life. Amount Useful life (in millions) (in years) Customer relationships $ 25.4 17 Trademarks and tradenames 10.6 15 Technology 6.1 13 Total intangible assets with definite lives $ 42.1 The following tables summarizes the identifiable intangible assets, net and their useful life. Amount Useful life (in millions) (in years) Customer relationships $ 18.6 11 Trademarks and tradenames 4.1 5 Total intangible assets with definite lives $ 22.7 |
Summary of Consideration Transferred and Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred to acquire Fagerdala and the final allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation Measurement Period Final Allocation (In millions) As of October 2, 2017 Adjustments As of December 31, 2018 Total consideration transferred $ 106.6 $ (0.4 ) $ 106.2 Assets: Cash and cash equivalents 13.3 — 13.3 Trade receivables, net 22.4 — 22.4 Inventories, net 10.0 0.1 10.1 Prepaid expenses and other current assets 8.4 — 8.4 Property and equipment, net 23.3 — 23.3 Identifiable intangible assets, net 41.4 0.7 42.1 Goodwill 39.3 (1.5 ) 37.8 Total assets $ 158.1 $ (0.7 ) $ 157.4 Liabilities: Short-term borrowings 14.0 — 14.0 Accounts payable 6.9 — 6.9 Other current liabilities 15.1 (0.1 ) 15.0 Long-term debt, less current portion 3.8 — 3.8 Non-current deferred taxes 11.7 (0.2 ) 11.5 Total liabilities $ 51.5 $ (0.3 ) $ 51.2 The following table summarizes the consideration transferred to acquire AFP and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation Measurement Period Revised Preliminary Allocation (In millions) As of August 1, 2018 Adjustments As of December 31, 2018 Total consideration transferred $ 70.8 $ 3.3 $ 74.1 Assets: Cash and cash equivalents 2.9 — 2.9 Trade receivables, net 30.8 — 30.8 Inventories, net 7.1 0.1 7.2 Prepaid expenses and other current assets 0.7 — 0.7 Property and equipment, net 3.5 (0.4 ) 3.1 Identifiable intangible assets, net 18.6 4.1 22.7 Goodwill 21.6 (2.0 ) 19.6 Other non-current assets 0.7 (0.4 ) 0.3 Total assets $ 85.9 $ 1.4 $ 87.3 Liabilities: Current portion of long-term debt — 0.1 0.1 Accounts payable 13.8 (2.2 ) 11.6 Other current liabilities 1.3 — 1.3 Long-term debt, less current portion — 0.2 0.2 Total liabilities $ 15.1 $ (1.9 ) $ 13.2 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Sales and Adjusted EBITDA of Reportable Segments | he following tables show net sales and Adjusted EBITDA by our segment reporting structure: Year Ended December 31, (In millions) 2018 2017 2016 Net Sales Food Care $ 2,908.1 $ 2,815.2 $ 2,686.8 As a % of Total Company net sales 61.4 % 63.1 % 63.8 % Product Care 1,824.6 1,646.4 1,524.5 As a % of Total Company net sales 38.6 % 36.9 % 36.2 % Total Company Net Sales $ 4,732.7 $ 4,461.6 $ 4,211.3 Year Ended December 31, (In millions) 2018 2017 2016 Adjusted EBITDA from continuing operations Food Care $ 577.8 $ 538.1 $ 520.1 Adjusted EBITDA Margin 19.9 % 19.1 % 19.4 % Product Care 318.6 292.2 284.8 Adjusted EBITDA Margin 17.5 % 17.7 % 18.7 % Corporate (6.9 ) 3.0 4.3 Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations $ 889.5 $ 833.3 $ 809.2 Adjusted EBITDA Margin 18.8 % 18.7 % 19.2 % |
Reconciliation of Non-U.S. GAAP Adjusted EBITDA to U.S. GAAP Net Earnings | The following table shows a reconciliation of U.S. GAAP net earnings from continuing operations to Non-U.S. GAAP Total Company Adjusted EBITDA: Year Ended December 31, (In millions) 2018 2017 2016 Net earnings from continuing operations (1) $ 150.3 $ 62.8 $ 292.3 Plus: Interest expense, net (177.9 ) (184.2 ) (191.9 ) Plus: Income tax provision 307.5 330.5 95.6 Plus: Depreciation and amortization (3) (161.4 ) (158.3 ) (154.0 ) Less: Depreciation and amortization adjustments 2.4 — 1.7 Plus Special Items: Restructuring and other charges (4) (47.8 ) (12.1 ) (2.5 ) Other restructuring associated costs (15.8 ) (14.3 ) (19.8 ) Foreign currency exchange loss due to highly inflationary economies (2.5 ) — (1.7 ) Charges related to ceasing operations in Venezuela (2) — — (48.5 ) Charges related to acquisition and divestiture activity (13.3 ) (15.5 ) (1.8 ) Charges incurred related to the sale of Diversey (20.9 ) (68.6 ) (1.4 ) Gain from class-action litigation settlement 14.9 — — Curtailment related to retained Diversey retirement plans — 13.5 — Other Special Items (5) (9.4 ) (0.5 ) (1.4 ) Pre-tax impact of Special Items (94.8 ) (97.5 ) (77.1 ) Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations $ 889.5 $ 833.3 $ 809.2 (1) The sign values of the individual line items are consistent with those presented on our Consolidated Statements of Operations, where applicable. Interest expense, net; Income tax provision; Depreciation and amortization, net of adjustments and total Pre-tax impact of Special Items should be added to net earnings from continuing operations to calculate Non-U.S. GAAP Total Company Adjusted EBTIDA from continuing operations. (2) Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards," of the Notes to Consolidated Financial Statements for further details. (3) Depreciation and amortization by segment is as follows: Year Ended December 31, (In millions) 2018 2017 2016 Food Care $ 105.4 $ 108.9 $ 110.0 Product Care 56.0 49.4 44.0 Total Company depreciation and amortization (i) $ 161.4 $ 158.3 $ 154.0 (i) Includes share-based incentive compensation of $29.9 million in 2018 , $38.2 million in 2017 and $50.9 million in 2016 . (4) Restructuring and other charges by segment were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Food Care $ 17.7 $ 7.6 $ 1.6 Product Care 30.1 4.5 0.9 Total Company restructuring and other charges (i) $ 47.8 $ 12.1 $ 2.5 (i) For the year ended December 31, 2016 restructuring and other charges excludes $0.3 million related to severance and termination benefits for employees in our Venezuelan subsidiaries. (5) Other Special Items for the year ended December 31, 2018 primarily included fees related to professional services. Other Special Items for the year ended December 31, 2017 primarily included transaction costs related to reorganizations. Other Special Items for the year ended December 31, 2016 primarily included legal fees associated with restructuring. |
Assets by Reportable Segments | The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net, inventory, net, property and equipment, net, goodwill, intangible assets, net and leased systems, net. December 31, (In millions) 2018 2017 Assets allocated to segment: Food Care $ 1,541.5 $ 1,545.5 Product Care 2,643.5 2,620.2 Total segments $ 4,185.0 $ 4,165.7 Assets not allocated: Cash and cash equivalents 271.7 594.0 Assets held for sale 0.6 4.0 Income tax receivables 58.4 85.1 Other receivables 81.3 90.2 Deferred taxes 170.5 176.2 Other 282.7 165.1 Total $ 5,050.2 $ 5,280.3 |
Geographic Information | Geographic Information Year Ended December 31, (In millions) 2018 2017 2016 Net sales (1) : North America (3) $ 2,548.9 $ 2,415.0 $ 2,237.8 EMEA 1,038.0 984.7 962.7 Latin America 417.1 409.3 396.8 APAC 728.7 652.6 614.0 Total $ 4,732.7 $ 4,461.6 $ 4,211.3 Total long-lived assets (1)(2) : North America $ 726.0 $ 639.6 EMEA 270.5 274.1 Latin America 67.3 74.6 APAC 211.8 226.0 Total $ 1,275.6 $ 1,214.3 (1) Net sales to external customers attributed to geographic areas represent net sales to external customers based on destination. No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2018 , 2017 or 2016 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2018 and 2017 . (2) Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill, intangible assets and non-current assets held for sale. (3) Net sales to external customers within the U.S. were $2,402.8 million , $2,278.6 million and $2,112.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | The following table details our inventories, net: December 31, (In millions) 2018 2017 Raw materials $ 79.9 $ 82.8 Work in process 142.4 125.7 Finished goods 322.6 298.3 Total $ 544.9 $ 506.8 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table details our property and equipment, net. December 31, (In millions) 2018 2017 Land and improvements $ 41.2 $ 43.5 Buildings 728.6 718.9 Machinery and equipment 2,325.7 2,330.5 Other property and equipment 135.6 116.3 Construction-in-progress 155.1 114.7 Property and equipment, gross 3,386.2 3,323.9 Accumulated depreciation and amortization (2,350.0 ) (2,325.5 ) Property and equipment, net $ 1,036.2 $ 998.4 |
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. Year Ended December 31, (In millions) 2018 2017 2016 Interest cost capitalized $ 6.3 $ 10.3 $ 11.0 Depreciation and amortization expense for property and equipment $ 115.9 $ 107.0 $ 88.2 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Balances by Segment Reporting Structure | The following table shows our goodwill balances by reportable segment: (In millions) Food Care Product Care Total Gross Carrying Value at December 31, 2016 $ 560.3 $ 1,513.0 $ 2,073.3 Accumulated impairment (49.5 ) (140.9 ) (190.4 ) Carrying Value at December 31, 2016 $ 510.8 $ 1,372.1 $ 1,882.9 Acquisition and divestiture 10.1 39.3 49.4 Currency translation 6.0 1.5 7.5 Gross Carrying Value at December 31, 2017 $ 576.5 $ 1,554.1 $ 2,130.6 Accumulated impairment (49.6 ) (141.2 ) (190.8 ) Carrying Value at December 31, 2017 $ 526.9 $ 1,412.9 $ 1,939.8 Acquisition, purchase price and other adjustments (0.6 ) 18.2 17.6 Currency translation (6.6 ) (3.2 ) (9.8 ) Gross Carrying Value at December 31, 2018 $ 568.9 $ 1,568.9 $ 2,137.8 Accumulated impairment (49.2 ) (141.0 ) (190.2 ) Carrying Value at December 31, 2018 $ 519.7 $ 1,427.9 $ 1,947.6 |
Summary of Identifiable Intangible Assets with Definite and Indefinite Useful Lives | The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives: December 31, 2018 December 31, 2017 (In millions) Gross Carrying Value Accumulated Amortization Net (1) Gross Carrying Value Accumulated Amortization Net Customer relationships $ 72.4 $ (22.3 ) $ 50.1 $ 59.7 $ (19.7 ) $ 40.0 Trademarks and tradenames 15.1 (1.6 ) 13.5 11.6 (0.5 ) 11.1 Capitalized software 62.2 (49.8 ) 12.4 50.6 (40.0 ) 10.6 Technology 37.2 (23.5 ) 13.7 39.2 (27.5 ) 11.7 Contracts 13.2 (10.1 ) 3.1 10.9 (9.6 ) 1.3 Total intangible assets with definite lives 200.1 (107.3 ) 92.8 172.0 (97.3 ) 74.7 Trademarks and tradenames with indefinite lives 8.9 — 8.9 8.9 — 8.9 Total identifiable intangible assets, net $ 209.0 $ (107.3 ) $ 101.7 $ 180.9 $ (97.3 ) $ 83.6 (1) As of December 31, 2018, intangible assets increased due to the AFP acquisition. See Note 4, "Discontinued Operations, Divestitures and Acquisitions," to the Notes to Consolidated Financial Statements for additional information related to the AFP acquisition. |
Remaining Estimated Future Amortization Expense | The following table shows the remaining estimated future amortization expense at December 31, 2018 . Year Amount (in millions) 2019 $ 14.2 2020 12.0 2021 9.0 2022 7.6 Thereafter 50.0 Total $ 92.8 |
Remaining Weighted Average Useful Life of Definite Lived Intangible Assets | The following table shows the remaining weighted average useful life of our definite lived intangible assets as of December 31, 2018 . Remaining weighted average useful lives Customer relationships 13.3 Trademarks and trade names 11.1 Technology 6.3 Contracts 8.2 Total identifiable intangible assets, net with definite lives 10.8 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Board of Directors Approved Restructuring | The Board of Directors has approved restructuring spend as follows: (in millions) Total Restructuring Program Range Cumulative Spend to Date Remaining Restructuring Spend (2) Low High Low High Costs of reduction in headcount as a result of reorganization $ 385 $ 405 $ (285 ) $ 100 $ 120 Other expenses associated with the Program 205 225 (137 ) 68 88 Total expense $ 590 $ 630 $ (422 ) $ 168 $ 208 Capital expenditures 250 255 (236 ) 14 19 Total estimated cash cost (1) $ 840 $ 885 $ (658 ) $ 182 $ 227 (1) Total estimated cash cost excludes the impact of proceeds and foreign currency impact. (2) Remaining restructuring spend primarily consists of restructuring costs associated with the announcement on December 13, 2018 as part of the Company’s Reinvent SEE strategy, and the completion of our efforts to eliminate stranded costs. |
Restructuring and Relocation Activities | The following table details our restructuring activities as reflected in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, (In millions) 2018 2017 2016 Continuing operations: Other associated costs (1) $ 13.9 $ 14.3 $ 19.8 Restructuring charges 47.8 12.1 2.5 Total charges from continuing operations 61.7 26.4 22.3 Charges included in discontinued operations — 2.4 18.6 Total charges $ 61.7 $ 28.8 $ 40.9 Capital expenditures $ 1.0 $ 21.3 $ 123.5 (1) Other associated costs excludes non-cash cost of $1.9 million for the year ended December 31, 2018 related to share based compensation expense. |
Components of Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining | The restructuring accrual, spending and other activity for the year ended December 31, 2018 and the accrual balance remaining at December 31, 2018 related to the Program were as follows: (In millions) Restructuring accrual at December 31, 2017 $ 16.1 Accrual and accrual adjustments 47.8 Cash payments during 2018 (25.0 ) Effect of changes in foreign currency exchange rates (1.4 ) Restructuring accrual at December 31, 2018 $ 37.5 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Current and Other Non-Current Liabilities | The following tables detail our other current liabilities and other non-current liabilities at December 31, 2018 and 2017 : December 31, (In millions) 2018 2017 Other current liabilities: Accrued salaries, wages and related costs $ 164.9 $ 194.0 Accrued operating expenses 135.8 237.2 Accrued customer volume rebates 84.6 87.9 Accrued interest 38.2 38.5 Accrued employee benefit liability 5.4 4.4 Total $ 428.9 $ 562.0 December 31, (In millions) 2018 2017 Other non-current liabilities: Accrued employee benefit liability $ 172.0 $ 169.3 Other postretirement liability 41.3 46.1 Other various liabilities (1) 440.0 275.4 Total $ 653.3 $ 490.8 (1) As of December 31, 2018 , other various liabilities included income tax liabilities of $382 million , including indemnifications of legacy Diversey tax liabilities. |
(Tables)
(Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Total Debt Outstanding | Our total debt outstanding consisted of the amounts set forth on the following table: December 31, (In millions) 2018 2017 Short-term borrowings (1) $ 232.8 $ 25.3 Current portion of long-term debt 4.9 2.2 Total current debt 237.7 27.5 Term Loan A due July 2023 222.2 222.7 6.50% Senior Notes due December 2020 424.0 423.6 4.875% Senior Notes due December 2022 421.1 420.4 5.25% Senior Notes due April 2023 421.2 420.4 4.50% Senior Notes due September 2023 454.9 474.3 5.125% Senior Notes due December 2024 421.3 420.7 5.50% Senior Notes due September 2025 397.1 396.7 6.875% Senior Notes due July 2033 445.5 445.4 Other 29.2 6.3 Total long-term debt, less current portion (3) 3,236.5 3,230.5 Total debt (2) $ 3,474.2 $ 3,258.0 (1) Short-term borrowings of $232.8 million at December 31, 2018 were comprised of $140.0 million under our revolving credit facility, $83.9 million under our European securitization program and $8.9 million of short-term borrowings from various lines of credit. Short-term borrowings of $25.3 million at December 31, 2017 were comprised of $2.1 million of Diversey accounts payable obligations under financing arrangements which Sealed Air was fully reimbursed for as part of the sale of Diversey as well as $23.2 million of short-term borrowing from various lines of credit. (2) As of December 31, 2018 , our weighted average interest rate on our short-term borrowings outstanding was 2.8% and on our long-term debt outstanding was 5.4% . As of December 31, 2017 , our weighted average interest rate on our short-term borrowings outstanding was 5.4% and on our long-term debt outstanding was 5.3% . (3) Amounts are net of unamortized discounts and issuance costs of $24.3 million and $29.5 million as of December 31, 2018 and 2017 , respectively. |
Scheduled Annual Maturities for Next Five Years and Thereafter | The following table summarizes the scheduled annual maturities for the next five years and thereafter of our long-term debt, including the current portion of long-term debt and capital leases. This schedule represents the principal portion of our debt, and therefore excludes debt discounts, interest rate swaps and lender and finance fees. Year Amount (in millions) 2019 $ 4.9 2020 430.8 2021 15.8 2022 437.2 2023 1,084.1 Thereafter 1,292.9 Total $ 3,265.7 |
Schedule of Available 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. December 31, (In millions) 2018 2017 Used lines of credit (1) $ 232.8 $ 23.2 Unused lines of credit 1,135.3 1,108.6 Total available lines of credit (2) $ 1,368.1 $ 1,131.8 (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) Of the total available lines of credit, $1,150.3 million were committed as of December 31, 2018 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Consolidated Balance Sheets. Cash Flow Hedge Non-Designated as Hedging Instruments Total December 31, December 31, December 31, (In millions) 2018 2017 2018 2017 2018 2017 Derivative Assets Foreign currency forward contracts $ 1.8 $ 0.5 $ 1.7 $ 3.6 $ 3.5 $ 4.1 Total Derivative Assets $ 1.8 $ 0.5 $ 1.7 $ 3.6 $ 3.5 $ 4.1 Derivative Liabilities Foreign currency forward contracts $ (0.2 ) $ (2.4 ) $ (2.7 ) $ (3.3 ) $ (2.9 ) $ (5.7 ) Total Derivative Liabilities (1) $ (0.2 ) $ (2.4 ) $ (2.7 ) $ (3.3 ) $ (2.9 ) $ (5.7 ) Net Derivatives (2) $ 1.6 $ (1.9 ) $ (1.0 ) $ 0.3 $ 0.6 $ (1.6 ) (1) Excludes €400.0 million of euro-denominated debt ( $454.9 million equivalent at December 31, 2018 and $474.3 million equivalent at December 31, 2017 ), 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 December 31, December 31, (In millions) 2018 2017 2018 2017 Gross position $ 3.5 $ 4.1 $ (2.9 ) $ (5.7 ) Impact of master netting agreements (1.4 ) (0.4 ) 1.4 0.4 Net amounts recognized on the Consolidated Balance Sheets $ 2.1 $ 3.7 $ (1.5 ) $ (5.3 ) |
Offsetting Assets | The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities December 31, December 31, (In millions) 2018 2017 2018 2017 Gross position $ 3.5 $ 4.1 $ (2.9 ) $ (5.7 ) Impact of master netting agreements (1.4 ) (0.4 ) 1.4 0.4 Net amounts recognized on the Consolidated Balance Sheets $ 2.1 $ 3.7 $ (1.5 ) $ (5.3 ) |
Offsetting Liabilities | The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities December 31, December 31, (In millions) 2018 2017 2018 2017 Gross position $ 3.5 $ 4.1 $ (2.9 ) $ (5.7 ) Impact of master netting agreements (1.4 ) (0.4 ) 1.4 0.4 Net amounts recognized on the Consolidated Balance Sheets $ 2.1 $ 3.7 $ (1.5 ) $ (5.3 ) |
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations | The following table details the effect of our derivative instruments on our Consolidated Statements of Operations. Location of Gain (Loss) Recognized on Amount of Gain (Loss) Recognized in Earnings on Derivatives Consolidated Statements of Operations Year Ended December 31, (In millions) 2018 2017 2016 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts Cost of sales $ 0.2 $ (0.2 ) $ (1.5 ) Treasury locks Interest expense, net 0.1 0.1 0.1 Sub-total cash flow hedges 0.3 (0.1 ) (1.4 ) Fair Value Hedges: Interest rate swaps Interest expense, net 0.5 0.5 0.5 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (expense) income, net (12.3 ) (11.5 ) (19.2 ) Total $ (11.5 ) $ (11.1 ) $ (20.1 ) |
Fair Value Measurements and O_2
Fair Value Measurements and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The fair value of our financial instruments, using the fair value hierarchy under U.S. GAAP are included in the table below. December 31, 2018 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 38.6 $ 38.6 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward and option contracts $ 0.6 $ — $ 0.6 $ — December 31, 2017 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 297.5 $ 297.5 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ (1.6 ) $ — $ (1.6 ) $ — |
Carrying Amounts and Estimated Fair Values of Debt | The table below shows the carrying amounts and estimated fair values of our total debt: December 31, 2018 December 31, 2017 (In millions) Carrying Fair Carrying Fair Term Loan A Facility due July 2023 (1) (2) $ 222.2 $ 222.2 $ 222.7 $ 222.7 6.50% Senior Notes due December 2020 424.0 440.1 423.6 465.1 4.875% Senior Notes due December 2022 421.1 421.2 420.4 451.0 5.25% Senior Notes due April 2023 421.2 424.5 420.4 455.6 4.50% Senior Notes due September 2023 (1) 454.9 489.9 474.3 544.4 5.125% Senior Notes due December 2024 421.3 419.8 420.7 456.2 5.50% Senior Notes due September 2025 397.1 394.8 396.7 439.9 6.875% Senior Notes due July 2033 445.5 453.4 445.4 527.3 Other foreign borrowings (1) 98.5 99.2 30.2 30.4 Other domestic borrowings 168.4 170.0 3.6 3.6 Total debt $ 3,474.2 $ 3,535.1 $ 3,258.0 $ 3,596.2 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) On July 12, 2018, the Company entered into a third amended and restated credit agreement, which included the refinancing of the term loan A facilities and revolving credit facilities. |
Profit Sharing, Retirement Sa_2
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table shows the components of our net periodic benefit cost (income) for the years ended December 31, for our pension plans charged to operations: December 31, 2018 December 31, 2017 December 31, 2016 (In millions) U.S. International Total U.S. International Total U.S. International Total Components of net periodic benefit (income) cost: Service cost $ 0.1 $ 4.2 $ 4.3 $ 0.1 $ 6.9 $ 7.0 $ 0.6 $ 10.0 $ 10.6 Interest cost 6.5 15.2 21.7 6.8 16.1 22.9 7.8 18.3 26.1 Expected return on plan assets (8.7 ) (29.2 ) (37.9 ) (9.8 ) (30.6 ) (40.4 ) (10.0 ) (24.3 ) (34.3 ) Other adjustments 0.1 — 0.1 — — — 1.3 — 1.3 Amortization of net prior service cost — — — — (0.1 ) (0.1 ) — — — Amortization of net actuarial loss 0.9 2.4 3.3 0.8 5.7 6.5 2.2 5.3 7.5 Net periodic (income) benefit cost $ (1.1 ) $ (7.4 ) $ (8.5 ) $ (2.1 ) $ (2.0 ) $ (4.1 ) $ 1.9 $ 9.3 $ 11.2 Cost (income) of settlement/curtailment 1.6 2.8 4.4 2.1 3.0 5.1 0.6 0.1 0.7 Total benefit (income) cost $ 0.5 $ (4.6 ) $ (4.1 ) $ — $ 1.0 $ 1.0 $ 2.5 $ 9.4 $ 11.9 The following table shows the components of our net periodic benefit cost for the three years ended December 31, for our pension plans charged to operations: Year Ended December 31, (In millions) 2018 2017 2016 Net periodic benefit (income) cost: U.S. and international net periodic benefit cost included in cost of sales (1) $ 0.8 $ 1.4 $ 1.5 U.S. and international net periodic benefit cost included in selling, general and administrative expenses 3.5 5.6 9.1 U.S. and international net periodic (income) benefit cost included in other income (expense) (8.4 ) (6.0 ) 1.3 Total (income) benefit cost $ (4.1 ) $ 1.0 $ 11.9 (1) The amount recorded in inventory for the years ended December 31, 2018 , 2017 and 2016 was not material. |
Funded Status for Pension Plans | The following table presents our funded status for 2018 and 2017 for our U.S. and international pension plans. The measurement date used to determine benefit obligations and plan assets is December 31 for all material plans. December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Change in benefit obligation: Projected benefit obligation at beginning of period $ 204.7 $ 702.2 $ 906.9 $ 213.1 $ 765.8 $ 978.9 Service cost 0.1 4.2 4.3 0.1 6.9 7.0 Interest cost 6.5 15.2 21.7 6.8 16.1 22.9 Actuarial (gain) loss (10.6 ) (21.5 ) (32.1 ) 11.3 16.5 27.8 Settlement/curtailment (7.6 ) (15.1 ) (22.7 ) (13.8 ) (21.2 ) (35.0 ) Benefits paid (11.2 ) (22.9 ) (34.1 ) (12.9 ) (22.6 ) (35.5 ) Employee contributions — 0.7 0.7 — 2.2 2.2 Business divestiture — — — — (120.2 ) (120.2 ) Other 0.2 5.8 6.0 0.1 1.1 1.2 Foreign exchange impact — (35.1 ) (35.1 ) — 57.6 57.6 Projected benefit obligation at end of period $ 182.1 $ 633.5 $ 815.6 $ 204.7 $ 702.2 $ 906.9 Change in plan assets: Fair value of plan assets at beginning of period $ 148.7 $ 627.5 $ 776.2 $ 150.3 $ 621.5 $ 771.8 Actual return on plan assets (10.5 ) (23.5 ) (34.0 ) 19.3 50.8 70.1 Employer contributions 0.4 15.3 15.7 6.3 21.8 28.1 Employee contributions — 0.7 0.7 — 2.2 2.2 Benefits paid (11.2 ) (22.9 ) (34.1 ) (12.9 ) (22.6 ) (35.5 ) Settlement (7.6 ) (15.1 ) (22.7 ) (14.3 ) (16.1 ) (30.4 ) Business divestiture — — — — (74.2 ) (74.2 ) Other 0.1 0.6 0.7 — (0.5 ) (0.5 ) Foreign exchange impact — (33.8 ) (33.8 ) — 44.6 44.6 Fair value of plan assets at end of period $ 119.9 $ 548.8 $ 668.7 $ 148.7 $ 627.5 $ 776.2 Underfunded status at end of year $ (62.2 ) $ (84.7 ) $ (146.9 ) $ (56.0 ) $ (74.7 ) $ (130.7 ) Accumulated benefit obligation at end of year $ 182.1 $ 620.9 $ 803.0 $ 204.8 $ 688.9 $ 893.7 |
Amounts Included in Consolidated Balance Sheets | Amounts included in the Consolidated Balance Sheets, including plans which were deemed immaterial and not included above, consisted of: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Other non-current assets $ — $ 26.3 $ 26.3 $ — $ 39.1 $ 39.1 Other current liabilities — (2.3 ) (2.3 ) — (2.4 ) (2.4 ) Other non-current liabilities (62.1 ) (109.8 ) (171.9 ) (56.1 ) (113.3 ) (169.4 ) Net amount recognized $ (62.1 ) $ (85.8 ) $ (147.9 ) $ (56.1 ) $ (76.6 ) $ (132.7 ) |
Amounts in Accumulated Other Comprehensive Loss, Not Yet Recognized | The amounts in AOCL that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 and 2017 are: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Unrecognized prior service costs $ 0.1 $ 4.7 $ 4.8 $ 0.1 $ 0.6 $ 0.7 Unrecognized net actuarial loss 47.3 130.8 178.1 41.4 104.7 146.1 Total $ 47.4 $ 135.5 $ 182.9 $ 41.5 $ 105.3 $ 146.8 |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | Changes in plan assets and benefit obligations recognized in AOCL at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Current year actuarial loss (gain) $ 8.6 $ 31.2 $ 39.8 $ 2.3 $ (8.7 ) $ (6.4 ) Amortization of actuarial loss (0.9 ) (2.4 ) (3.3 ) (0.8 ) (5.7 ) (6.5 ) Prior service cost occurring during the year (1) — 4.2 4.2 — — — Business divestiture — — — — (42.6 ) (42.6 ) Other adjustments (0.1 ) (0.1 ) (0.2 ) — 1.3 1.3 Settlement/curtailment gain (1.6 ) (2.7 ) (4.3 ) (2.1 ) (2.3 ) (4.4 ) Total $ 6.0 $ 30.2 $ 36.2 $ (0.6 ) $ (58.0 ) $ (58.6 ) (1) On October 26, 2018, the UK High Court ruled that formulas used to determine guaranteed minimum pension (GMP) benefits violated gender-pay equality laws due to differences in the way benefits were calculated for men and women. This will result in the Company amending plan benefit formulas for our UK defined benefit plans to account for the higher pension payments. While the specifics of the calculation are not yet known, the Company has recorded our current best estimate of the GMP equalization as a prior service cost deferred in AOCL. The court ruling did not have an impact on our Consolidated Statements of Operations for the year ended December 31, 2018. |
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Next Fiscal Year | The amounts in AOCL that are expected to be recognized as components of net periodic benefit cost during the year ending December 31, 2019 are as follows: Year Ended 2019 (In millions) U.S. International Total Unrecognized prior service costs $ — $ 0.2 $ 0.2 Unrecognized net actuarial loss 1.4 3.7 5.1 Total $ 1.4 $ 3.9 $ 5.3 |
Information for Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Information for plans with accumulated benefit obligations in excess of plan assets as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International Total U.S. International Total Accumulated benefit obligation $ 182.1 $ 418.0 $ 600.1 $ 204.8 $ 338.7 $ 543.5 Fair value of plan assets 119.9 315.4 435.3 148.7 236.2 384.9 |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (In millions) U.S. International U.S. International Benefit obligations Discount rate 4.3 % 2.6 % 3.6 % 2.5 % Rate of compensation increase N/A 2.3 % N/A 2.3 % |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were as follows: December 31, 2018 December 31, 2017 December 31, 2016 (In millions) U.S. International U.S. International U.S. International Net periodic benefit cost Discount rate 3.6 % 2.5 % 4.0 % 2.4 % 4.3 % 2.8 % Expected long-term rate of return 6.2 % 4.9 % 6.7 % 5.0 % 6.7 % 4.3 % Rate of compensation increase N/A 2.3 % N/A 2.4 % 3.0 % 2.5 % |
Estimated Future Benefit Payments | We expect the following estimated future benefit payments, which reflect expected future service as appropriate, to be paid in the years indicated: Amount (in millions) Year U.S. International Total 2019 $ 11.7 $ 28.2 $ 39.9 2020 11.8 24.7 36.5 2021 11.7 27.2 38.9 2022 11.7 27.8 39.5 2023 11.8 27.0 38.8 2024 to 2028 (combined) 58.1 150.9 209.0 Total $ 116.8 $ 285.8 $ 402.6 Expected post-retirement benefits (net of Medicare Part D subsidies) for each of the next five years and succeeding five years are as follows: Year Amount (in millions) 2019 $ 5.4 2020 5.4 2021 5.0 2022 4.6 2023 4.3 2024 to 2028 (combined) 15.6 Total $ 40.3 |
Fair Values of Pension Plan Assets, by Asset Category and Level of Fair Values | The fair values of our U.S. and international pension plan assets, by asset category and by the level of fair values are as follows: December 31, 2018 December 31, 2017 Total Total (In millions) Fair Value Level 1 Level 2 Level 3 NAV (5) Fair Value Level 1 Level 2 Level 3 NAV (5) Cash and cash equivalents (1) $ 36.5 $ 3.5 $ 4.5 $ — $ 28.5 $ 7.5 $ 5.6 $ 1.9 $ — $ — Fixed income funds (2) 283.4 — 131.7 — 151.7 385.9 — 162.5 — 223.4 Equity funds (3) 147.1 — 89.7 — 57.4 257.6 — 177.9 — 79.7 Other (4) 201.7 — 20.1 165.4 16.2 125.2 — 18.5 86.5 20.2 Total $ 668.7 $ 3.5 $ 246.0 $ 165.4 $ 253.8 $ 776.2 $ 5.6 $ 360.8 $ 86.5 $ 323.3 (1) Short-term investment fund that invests in a collective trust that holds short-term highly liquid investments with principal preservation and daily liquidity as its primary objectives. Investments are primarily comprised of certificates of deposit, government securities, commercial paper, and time deposits. (2) Fixed income funds that invest in a diversified portfolio primarily consisting of publicly traded government bonds and corporate bonds. There are no restrictions on these investments, and they are valued at the net asset value of shares held at year end. (3) Equity funds that invest in a diversified portfolio of publicly traded domestic and international common stock, with an emphasis in European equities. There are no restrictions on these investments, and they are valued at the net asset value of shares held at year end. (4) The majority of these assets are invested in real estate funds and other alternative investments. Also includes guaranteed insurance contracts, which consists of Company and employee contributions and accumulated interest income at guaranteed stated interest rates and provides for benefit payments and plan expenses. (5) These assets are measured at Net Asset Value (NAV). |
Reconciliation of Plan Asset Measured Using Level 3 Inputs | The following table shows the activity of our U.S. and international plan assets, which are measured at fair value using Level 3 inputs. December 31, (In millions) 2018 2017 Balance at beginning of period $ 86.5 $ 100.7 (Losses) gains on assets still held at end of year (15.5 ) 2.3 Purchases, sales, issuance, and settlements (1) 103.6 1.3 Transfers in and/or out of Level 3 1.0 (24.2 ) Foreign exchange (loss) gain (10.2 ) 6.4 Balance at end of period $ 165.4 $ 86.5 (1) Purchases of Level 3 assets primarily represent the purchase of bulk annuity contracts (Buy-in) in some of our international plans. |
Other Post-Employment Benefit_2
Other Post-Employment Benefits and Other Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Reconciliation of Benefit Obligations, Fair Value of Plan Assets and Funded Status for Pension Plans | The status of these plans, including a reconciliation of benefit obligations, a reconciliation of plan assets and the funded status of the plans, follows: December 31, (In millions) 2018 2017 Change in benefit obligations: Benefit obligation at beginning of period $ 51.3 $ 54.0 Service cost 0.1 0.1 Interest cost 1.4 1.6 Actuarial (gain) loss (1.7 ) 1.0 Benefits paid, net (4.5 ) (4.3 ) Settlement/curtailment — (1.2 ) Loss due to exchange rate movements — 0.1 Plan amendments (0.2 ) — Benefit obligation at end of period $ 46.4 $ 51.3 Change in plan assets: Fair value of plan assets at beginning of period $ — $ — Employer contribution 4.5 4.3 Benefits paid, net (4.5 ) (4.3 ) Fair value of plan assets at end of period $ — $ — Net amount recognized: Underfunded status $ (46.4 ) $ (51.3 ) Accumulated benefit obligation at end of year $ 46.4 $ 51.3 Net amount recognized in consolidated balance sheets consists of: Current liability $ (5.3 ) $ (5.2 ) Non-current liability (41.1 ) (46.1 ) Net amount recognized $ (46.4 ) $ (51.3 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 0.4 $ 2.0 Prior service credit (3.0 ) (3.1 ) Total $ (2.6 ) $ (1.1 ) |
Components Of Net Periodic Benefit Cost Other Post Employment Benefit Plans | The components of net periodic benefit cost were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.1 $ 0.2 Interest cost 1.4 1.6 1.9 Amortization of net loss (0.2 ) (0.2 ) — Amortization of prior service credit (0.3 ) (1.2 ) (1.6 ) Net periodic benefit cost $ 1.0 $ 0.3 $ 0.5 Income of settlement/curtailment — (13.5 ) — Total benefit (income) cost for fiscal year $ 1.0 $ (13.2 ) $ 0.5 |
Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost | The amounts in AOCL at December 31, 2018 that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows: (In millions) December 31, 2018 Unrecognized prior service costs $ (0.3 ) Unrecognized net actuarial loss (0.2 ) Total $ (0.5 ) |
One Percentage Point Change on Assumed Healthcare Cost | A one percentage point change on assumed healthcare cost trend rates would have the following effect for the year ended December 31, 2018 : (In millions) 1% Increase 1% Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit obligation 0.3 (0.3 ) |
Estimated Future Benefit Payments | We expect the following estimated future benefit payments, which reflect expected future service as appropriate, to be paid in the years indicated: Amount (in millions) Year U.S. International Total 2019 $ 11.7 $ 28.2 $ 39.9 2020 11.8 24.7 36.5 2021 11.7 27.2 38.9 2022 11.7 27.8 39.5 2023 11.8 27.0 38.8 2024 to 2028 (combined) 58.1 150.9 209.0 Total $ 116.8 $ 285.8 $ 402.6 Expected post-retirement benefits (net of Medicare Part D subsidies) for each of the next five years and succeeding five years are as follows: Year Amount (in millions) 2019 $ 5.4 2020 5.4 2021 5.0 2022 4.6 2023 4.3 2024 to 2028 (combined) 15.6 Total $ 40.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings Before Income Tax Provision | The components of earnings before income tax provision were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Domestic $ 255.1 $ 192.1 $ 175.9 Foreign 202.7 201.2 212.0 Total $ 457.8 $ 393.3 $ 387.9 |
Components of Income Tax Provision (Benefit) | The components of our income tax provision (benefit) were as follows: Year Ended December 31, (In millions) 2018 2017 2016 Current tax expense: Federal $ 228.2 $ 79.6 $ 57.6 State and local 9.8 14.3 1.2 Foreign 59.8 106.0 67.3 Total current expense $ 297.8 $ 199.9 $ 126.1 Deferred tax expense (benefit): Federal $ 56.8 $ 130.1 $ (15.8 ) State and local (21.2 ) 5.3 3.6 Foreign (25.9 ) (4.8 ) (18.3 ) Total deferred tax expense (benefit) 9.7 130.6 (30.5 ) Total income tax provision $ 307.5 $ 330.5 $ 95.6 |
Components of Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) consist of the following: December 31, (In millions) 2018 2017 Restructuring reserves $ 8.4 $ 2.7 Accruals not yet deductible for tax purposes 9.1 10.7 Net operating loss carryforwards 265.5 199.4 Foreign, federal and state credits 10.4 69.2 Employee benefit items 77.0 69.6 Capitalized expenses 8.9 10.8 Derivatives and other 38.0 23.7 Sub-total deferred tax assets 417.3 386.1 Valuation allowance (218.4 ) (189.2 ) Total deferred tax assets $ 198.9 $ 196.9 Depreciation and amortization $ (26.8 ) $ (13.9 ) Unremitted foreign earnings — (9.0 ) Intangible assets (21.7 ) (26.3 ) Other (0.4 ) — Total deferred tax liabilities (48.9 ) (49.2 ) Net deferred tax assets $ 150.0 $ 147.7 |
Reconciliation of the Provision for Income Taxes | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate ( 21% in 2018 and 35% in 2016-2017) to income before provision for income taxes, is as follows (dollars in millions): Year Ended December 31, 2018 2017 2016 Computed expected tax $ 96.1 21.0 % $ 137.7 35.0 % $ 135.9 35.0 % State income taxes, net of federal tax benefit 8.4 1.8 % 7.6 1.9 % 4.8 1.2 % Foreign earnings taxed at different rates 8.3 1.8 % (22.3 ) (5.7 )% (22.4 ) (5.8 )% U.S. tax on foreign earnings 13.5 2.9 % 72.3 18.4 % 10.7 2.8 % Tax credits (20.7 ) (4.5 )% (16.8 ) (4.3 )% (31.5 ) (8.1 )% Unremitted foreign earnings — — % — — % (9.4 ) (2.4 )% Reorganization and divestitures — — % 75.9 19.3 % — — % Withholding tax 21.7 4.7 % 7.4 1.9 % 10.1 2.6 % Net change in valuation allowance (39.8 ) (8.7 )% (2.0 ) (0.5 )% (31.7 ) (8.2 )% Net change in unrecognized tax benefits 95.0 20.8 % 33.4 8.5 % 16.0 4.1 % Tax Cuts and Jobs Act 117.6 25.7 % 41.1 10.5 % — — % Deferred tax adjustments — — % 14.1 3.6 % 31.0 8.0 % Other 7.4 1.7 % (17.9 ) (4.6 )% (17.9 ) (4.6 )% Income tax expense and rate $ 307.5 67.2 % $ 330.5 84.0 % $ 95.6 24.6 % |
Unrecognized Tax Benefits and the Effect on Effective Income Tax Rate | We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized: Year Ended December 31, (in millions) 2018 2017 2016 Beginning balance of unrecognized tax benefits $ 214.3 $ 162.6 $ 131.3 Additions for tax positions of current year 106.0 7.3 11.1 Additions for tax positions of prior years 59.5 49.3 23.4 Reductions for tax positions of prior years (7.0 ) (4.3 ) (1.4 ) Reductions for lapses of statutes of limitation and settlements (16.4 ) (0.6 ) (1.8 ) Ending balance of unrecognized tax benefits $ 356.4 $ 214.3 $ 162.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimated Future Cash Outlays Related to Principal Contractual Obligations | At December 31, 2018 , we had other principal contractual obligations, which included agreements to purchase an estimated amount of goods, including raw materials, or services in the normal course of business, aggregating to approximately $70.2 million . The estimated future cash outlays are as follows: Year Amount (in millions) 2019 $ 43.4 2020 19.3 2021 6.9 2022 0.6 Total $ 70.2 |
Estimated Future Minimum Annual Rental Commitments Under Non-Cancelable Real and Personal Property Leases | At December 31, 2018 , estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: Year Amount (in millions) 2019 $ 28.5 2020 20.1 2021 14.7 2022 10.1 2023 6.9 Thereafter 17.0 Total $ 97.3 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Cash Dividends Paid | The following table shows our total cash dividends paid in the years ended December 31: (In millions, except per share amounts) Total Cash Dividends Paid Total Cash Dividends Paid Per Common Share 2016 $ 121.6 $ 0.61 2017 119.7 0.64 2018 102.9 0.64 Total $ 344.2 |
Summary of Changes in Common Stock and Common Stock in Treasury | The following is a summary of changes during the years ended December 31, in shares of our common stock and common stock in treasury: 2018 2017 2016 Changes in common stock: Number of shares, beginning of year 230,080,944 227,638,738 225,625,636 Restricted stock shares issued for new awards under the Omnibus Incentive Plan and 2005 Contingent Stock Plan (1) 569,960 480,283 481,834 Restricted stock shares, forfeited (1) (86,518 ) (184,235 ) (89,699 ) Shares issued for vested restricted stock units 151,280 607,231 179,826 Shares issued as part of acquisition (2) 20,000 — — Shares issued for 2012 President and Chief Operating Officer (COO) Four-Year Award — — 325,000 Shares issued for 2014 Special Performance Stock Units (PSU) Awards 658,783 749,653 — Shares issued for 2015 Three-Year PSU Awards 129,139 — — Shares issued for 2014 Three-Year PSU Awards — 636,723 — Shares issued for 2013 Three-Year PSU Awards — — 1,074,017 Shares issued for Stock Leverage Opportunity Awards ( SLO) 109,841 136,783 20,587 Shares granted and issued under the Omnibus Incentive Plan and Directors Stock Plan to Directors 10,841 15,768 21,537 Other activity (3) (25,233 ) — — Number of shares issued, end of year (1) 231,619,037 230,080,944 227,638,738 Changes in common stock in treasury: Number of shares held, beginning of year 61,485,423 34,156,355 29,612,337 Repurchase of common stock (4) 14,826,924 27,320,816 4,680,313 Profit sharing contribution paid in stock (538,524 ) (502,519 ) (830,613 ) Restricted stock shares, forfeited — — (1,813 ) Shares withheld for taxes 190,844 510,771 696,131 Number of shares held, end of year (4) 75,964,667 61,485,423 34,156,355 Number of common stock outstanding, end of year 155,654,370 168,595,521 193,482,383 (1) As of December 31, 2018, there were 1,478 restricted stock shares issued for new awards under the Omnibus Incentive Plan and ( 5,024 ) restricted stock shares forfeited that were not yet reflected by our Recordkeeper. The table above and our Consolidated Balance Sheets reflects the number of shares issued per our Recordkeeper. (2) In connection with the acquisition of B+ Equipment in the third quarter of 2015, the Company issued 20,000 shares of restricted common stock on September 26, 2018 to certain former equity holders of B+ Equipment. These shares were issued in offshore transactions with no direct selling efforts in the United States and without registration under the Securities Act of 1933, as amended, in reliance upon the issuer safe harbor provided by Regulation S. (3) Other activity in 2018 primarily relates to prior period adjustment related to years not contained within the table. (4) As of December 31, 2018, there were 71,530 shares of common stock that had been repurchased by the Company but not yet reflected by the Recordkeeper. The table above and our Consolidated Balance Sheets reflects the number of shares held in treasury per our Recordkeeper. |
Summary of Changes in Common Shares Available for Awards under Omnibus Plan and Predecessor Plans | A summary of the changes in common shares available for awards under the Omnibus Incentive Plan and Predecessor Plans follows: 2018 2017 2016 Number of shares available, beginning of year 3,668,954 5,385,870 7,694,739 Newly Registered Shares under Omnibus Incentive Plan 2,199,114 — — Restricted stock shares issued for new awards under the Omnibus Incentive Plan and 2005 Contingent Stock Plan (1) (571,438 ) (480,283 ) (481,834 ) Restricted stock shares forfeited (1) 91,542 184,235 87,886 Restricted stock units awarded (219,923 ) (351,946 ) (428,595 ) Restricted stock units forfeited 64,122 288,801 29,774 Shares issued for 2012 President and COO Four-Year Award — — (325,000 ) Shares issued for 2014 Special PSU Awards (658,783 ) (749,653 ) — Shares issued for 2015 Three-Year PSU Awards (129,139 ) — — Shares issued for 2014 Three-Year PSU Awards — (636,723 ) — Shares issued for 2013 Three-Year PSU Awards — — (1,074,017 ) Restricted stock units awarded for SLO Awards (23,478 ) (44,254 ) (81,614 ) SLO units forfeited 817 3,639 — Director shares granted and issued (10,560 ) (15,491 ) (18,022 ) Director units granted and deferred (2) (16,505 ) (17,008 ) (17,447 ) Shares withheld for taxes (3) 94,624 101,767 — Number of shares available, end of year (4) 4,489,347 3,668,954 5,385,870 (1) As of December 31, 2018, there were 1,478 restricted stock shares issued for new awards under the Omnibus Incentive Plan and (5,024) restricted stock shares forfeited that were not yet reflected by our Recordkeeper. The table above (shares available under the Omnibus Incentive Plan) reflects this activity as occurred creating a reconciling difference between shares issued and number of shares available under the Omnibus Plan. (2) Director units granted and deferred include the impact of share-settled dividends earned and deferred on deferred shares. (3) The Omnibus Incentive Plan and 2005 Contingent Stock Plan permit withholding of taxes and other charges that may be required by law to be paid attributable to awards by withholding a portion of the shares attributable to such awards. (4) The above table excludes approximately 1.0 million contingently issuable shares under the PSU awards and SLO awards, which represents the maximum number of shares that could be issued under those plans as of December 31, 2018 . |
Summarizes the Company's Pre-tax Share-based Incentive Compensation Expense and Income Tax Benefit | The following table summarizes the Company’s pre-tax share-based incentive compensation expense and related income tax benefit for the years ended December 31, 2018 , 2017 and 2016 related to the Company’s PSU awards, SLO awards and restricted stock awards. (In millions) 2018 2017 2016 2018 Three-year PSU Awards $ 2.7 $ — $ — 2017 Three-year PSU Awards (1) 3.7 9.8 — 2017 COO and Chief Executive Officer-Designate 2017 New Hire Equity Awards 0.2 0.1 — 2016 Three-year PSU Awards (1) (3.0 ) 2.0 6.3 2016 President & CEO Inducement Award — 0.5 0.5 2015 Three-year PSU Awards — (0.8 ) 3.5 2014 Special PSU Awards (2) — 3.2 8.8 2014 Three-year PSU Awards — — 4.9 2012 President & COO Four-year Incentive Compensation — — 0.2 SLO Awards 1.6 1.1 2.5 Other long-term share-based incentive compensation programs (3)(4) 24.7 32.6 36.2 Total share-based incentive compensation expense (5) $ 29.9 $ 48.5 $ 62.9 Associated tax benefits recognized $ 4.9 $ 11.8 $ 19.7 (1) On May 18, 2017, The Organization and Compensation Committee of our Board of Directors (“O&C Committee”) approved a change in the vesting policy regarding the existing 2017 Three-year PSU Awards and 2016 Three-year PSU Awards for Ilham Kadri. The approved change resulted in a pro-rata share of vesting calculated on the close date of the sale of Diversey. Dr. Kadri’s awards were still subject to the performance metrics stipulated in the plan documents, and will be paid out in accordance with the original planned timing. (2) The amount does not include expense related to the 2014 Special PSU awards that were settled in cash of $1.0 million in the year ended December 31, 2017. (3) The amount includes the expenses associated with the restricted stock awards consisting of restricted stock shares, restricted stock units and cash-settled restricted stock unit awards. (4) On August 4, 2017, the Equity Award Committee approved a change in the vesting condition regarding the existing long-term share based compensation programs transferring to Diversey as part of the sale of Diversey. The approved change resulted in a pro-rata share of vesting calculated on the close date of the sale of Diversey. In December 2018, the Equity Award Committee approved a change in the vesting condition for certain individuals who would be leaving the Company under a phase of our Reinvent SEE Restructuring program. For both modifications, we recorded the cumulative expense of the higher fair value of the impacted awards at modification approval. (5) The amounts do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock as these contributions are not considered share-based incentive compensation. |
Schedule of Unvested Restricted Stock and Restricted Stock Unit | The following table summarizes activity for unvested restricted stock and restricted stock units for 2018 : Restricted stock shares Restricted stock units Shares Weighted-Average per Share Fair Value on Grant Date Aggregate Intrinsic Value (in millions) Shares Weighted-Average per Share Fair Value on Grant Date Aggregate Intrinsic Value (in millions) Non-vested at December 31, 2017 1,045,416 $ 45.21 557,422 $ 45.34 Granted 571,438 44.24 219,923 44.60 Vested (296,754 ) 45.34 $ 13.1 (151,280 ) 45.28 $ 6.7 Forfeited or expired (91,542 ) 45.46 (64,122 ) 45.16 Non-vested at December 31, 2018 1,228,558 $ 44.98 561,943 $ 45.08 |
Schedule of Vested Restricted Stock | A summary of the Company’s fair values of its vested restricted stock shares and restricted stock units are shown in the following table: (In millions) 2018 2017 2016 Fair value of restricted stock shares vested $ 13.5 $ 19.5 $ 10.0 Fair value of restricted stock units vested $ 6.9 $ 22.4 $ 5.2 |
Schedule of Unrecognized Compensation Cost | A summary of the Company’s unrecognized compensation cost and weighted average periods over which the compensation cost is expected to be recognized for its non-vested restricted stock shares and restricted stock units are shown in the following table: (In millions) Unrecognized Compensation Costs Weighted Average to be recognized (in years) Restricted Stock shares $ 25.2 1.3 Restricted Stock units $ 10.9 1.3 A summary of the Company’s unrecognized compensation cost for three-year PSU awards at the current estimated earned payout based on the probable outcome of the performance condition and weighted average periods over which the compensation cost is expected to be recognized as shown in the following table: (In millions) Unrecognized Compensation Costs Weighted Average to be recognized (in years) 2018 Three-year PSU Awards $ 4.4 2 2017 Three-year PSU Awards 0.9 1 2016 Three-year PSU Awards — 0 |
Summary of Number of PSUs Granted Based on Adjusted EBITDA and Grant Date Fair Value | The number of PSUs granted based on Adjusted EBITDA and the grant date fair value are shown in the following table: 2018 2017 2016 Number of units granted 57,378 99,522 165,391 Weighted average fair value on grant date (1) $ 41.72 $ 45.21 $ 43.09 (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 Three -year PSU Awards and 2016 Three -year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. |
Summary of Assumptions Used to Calculate the Grant Date Fair Value Based on Total Shareholder Return | The number of PSUs granted based on TSR and the assumptions used to calculate the grant date fair value of the PSUs based on TSR are shown in the following table: 2018 2017 2016 Number of units granted 56,829 100,958 124,755 Weighted average fair value on grant date (1) $ 43.40 $ 44.24 $ 54.94 Expected Price volatility (1) 22.00 % 25.31 % 26.69 % Risk-free interest rate (1) 2.00 % 1.56 % 0.98 % (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 three -year PSU Awards and 2016 three -year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. |
Number of Performance Stock Units Granted Based On Net Trade Sales Growth and Grant Date Fair Value | The number of PSUs granted based on Net Trade Sales Growth and the grant date fair value are shown in the following table: 2018 2017 Number of units granted 57,378 99,522 Weighted average fair value on grant date (1) $ 41.72 $ 45.21 (1) On May 18, 2017, the O&C Committee approved a change in the vesting policy regarding the existing 2017 three -year PSU Awards and 2016 three - year PSU Awards for Ilham Kadri. The modified vesting terms resulted in award modification accounting treatment. The Weighted average fair value on grant date reflects the impact of the fair value on date of modification for these awards. |
Summary of Estimated Earned Payout | The following table includes additional information related to estimated earned payout based on the probable outcome of the performance condition and market condition as of December 31, 2018 : Estimated Payout % Net Trade Sales Growth Adjusted EBITDA TSR Combined 2018 Three-year PSU Awards 100 % 100 % 100 % 100 % 2017 Three-year PSU Awards 200 % 77 % 100 % 125 % 2016 Three-year PSU Awards NA — % — % — % |
Summary of Activity for Outstanding Three-year PSU Awards | The following table summarizes activity for outstanding Three -year PSU awards (excluding 2014 Special PSU Award) for 2018 : Shares Aggregate Intrinsic Value (in millions) (2) Outstanding at December 31, 2017 662,931 Granted (1) 171,585 Converted (176,169 ) $ 7.5 Forfeited or expired (14,491 ) Outstanding at December 31, 2018 643,856 Fully vested at December 31, 2018 426,649 $ 14.9 (1) This represents the target number of performance units granted. Actual number of PSUs earned, if any, is dependent upon performance and may range from 0% to 200% percent of the target. (2) The aggregate intrinsic value is based on the actual number of PSUs earned and vested at December 31, 2017 which were issued in February 2018 . |
Summary of Activity for Non-Vested PSUs Awards | The following table summarizes activity for non-vested Three -year PSU awards for 2018 : Shares Weighted-Average per Share Fair Value on Grant Date Non-vested at December 31, 2017 118,956 $ 48.40 Granted 171,585 42.29 Vested (61,091 ) 47.50 Forfeited or expired (12,243 ) 45.67 Non-vested at December 31, 2018 217,207 $ 42.94 |
Summary of Fair Value for Vested PSU Awards | A summary of the Company’s fair value for its vested three-year PSU awards is shown in the following table: (In millions) 2018 2017 2016 Fair value of three-year PSU awards vested $ 14.9 $ 24.0 $ 14.3 |
Summary of Assumptions Used to Calculate Grant Date Fair Value | The assumptions used to calculate the grant date fair value of the performance-vesting New Hire Award are shown in the following table: 2017 Performance-vesting New Hire Award Fair value on grant date $ 10.63 Expected price volatility 25.0 % Risk-free interest rate 1.6 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Details of Comprehensive Income (Loss) | The following table provides details of comprehensive loss: (In millions) Unrecognized Pension Items Cumulative Translation Adjustment Unrecognized Gains (Losses) on Derivative Instruments for net investment hedge Unrecognized Gains (Losses) on Derivative Instruments for cash flow hedge Impact of Accounting Standard Update (1) Accumulated Other Comprehensive Loss, Net of Taxes Balance at December 31, 2016 (2) $ (276.7 ) $ (701.9 ) $ 21.0 $ 8.5 $ — $ (949.1 ) Other comprehensive income (loss) before reclassifications 167.1 7.5 (67.8 ) (10.4 ) — 96.4 Less: amounts reclassified from accumulated other comprehensive loss 6.2 — — 1.6 — 7.8 Net current period other comprehensive income (loss) 173.3 7.5 (67.8 ) (8.8 ) — 104.2 Balance at December 31, 2017 (2) $ (103.4 ) $ (694.4 ) $ (46.8 ) $ (0.3 ) $ — $ (844.9 ) Other comprehensive (loss) income before reclassifications (31.5 ) (50.4 ) 15.0 2.9 — (64.0 ) Less: amounts reclassified from accumulated other comprehensive loss 2.1 — — (0.2 ) — 1.9 Net current period other comprehensive (loss) income (29.4 ) (50.4 ) 15.0 2.7 — (62.1 ) Impact of Accounting Standard Update — — — — (13.4 ) (13.4 ) Balance at December 31, 2018 (2) $ (132.8 ) $ (744.8 ) $ (31.8 ) $ 2.4 $ (13.4 ) $ (920.4 ) (1) In the fourth quarter, the Company Adopted ASU 2018-02. As part of the adoption, the Company has elected to reclassify the tax effects of the TCJA from AOCL to retained earnings. The adoption of the ASU 2018-02 resulted in a $13.4 million reclassification from AOCL to retained earnings due to the stranded tax effects of the TCJA. (2) The ending balance in AOCL includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustments were $65.8 million , $(78.2) million and $(8.3) million for the years ended December 31, 2018 , 2017 and 2016 . |
Detail of Amounts Reclassified from Accumulated Other Comprehensive Income | The following table provides detail of amounts reclassified from AOCL: (In millions) 2018 (1) 2017 (1) 2016 (1) Location of Amount Reclassified from AOCL Defined benefit pension plans and other post-employment benefits: Prior service costs $ 0.3 $ 1.3 $ 1.6 Actuarial losses (3.1 ) (10.0 ) (11.2 ) Total pre-tax amount (4) (2.8 ) (8.7 ) (9.6 ) Other (expense) income, net Tax benefit 0.7 2.5 2.3 Net of tax (2.1 ) (6.2 ) (7.3 ) Reclassifications from cumulative translation adjustment: Charges related to Venezuelan subsidiaries — — 46.0 (3) Net gains (losses) on cash flow hedging derivatives: Foreign currency forward contracts 0.2 0.9 0.6 (2) Other (expense) income, net Interest rate and currency swaps — (3.4 ) (25.9 ) Interest expense, net and Other (expense) income, net Treasury locks 0.1 0.1 0.1 (2) Interest expense, net Total pre-tax amount 0.3 (2.4 ) (25.2 ) Tax (expense) benefit (0.1 ) 0.8 8.3 Net of tax 0.2 (1.6 ) (16.9 ) Total reclassifications for the period $ (1.9 ) $ (7.8 ) $ 21.8 (1) Amounts in parenthesis indicate changes to earnings (loss). (2) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 13, “Derivatives and Hedging Activities,” of the Notes to Consolidated Financial Statements for additional details. (3) Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 2, “Summary of Significant Accounting Policies and Recently Issued Accounting Standards” under the “Impact of Inflation and Currency Fluctuation” section of the Notes to the Consolidated Financial Statements for further details. (4) Amounts related to Diversey have been reclassified to earnings from discontinued operations, net of tax on the Consolidated Statements of Operations. For the years ended December 31, 2017 and 2016, there was $3.7 million and $3.8 million reclassified, respectively. |
Other (Expense) Income, net (Ta
Other (Expense) Income, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Details of Other (Expense) Income, net | The following table provides details of other (expense) income, net: Year Ended December 31, (In millions) 2018 2017 2016 Net foreign exchange transaction (loss) gain $ (16.7 ) $ (5.9 ) $ 8.3 Bank fee expense (4.4 ) (5.8 ) (5.4 ) Pension income (expense) other than service costs 3.9 16.7 (3.8 ) Other, net (0.9 ) 1.2 0.8 Other (expense) income, net $ (18.1 ) $ 6.2 $ (0.1 ) |
Net Earnings per Common Share (
Net Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Earnings Per Common Share | The following table sets forth the calculation of basic and diluted net earnings per common share under the two-class method for the years ended December 31: Year Ended December 31, (In millions, except per share amounts) 2018 2017 2016 Basic Net Earnings Per Common Share: Numerator Net earnings $ 193.1 $ 814.9 $ 486.4 Distributed and allocated undistributed net earnings to unvested restricted stockholders (0.9 ) (4.9 ) (3.4 ) Distributed and allocated undistributed net earnings 192.2 810.0 483.0 Distributed net earnings - dividends paid to common stockholders (101.7 ) (118.7 ) (118.7 ) Allocation of undistributed net earnings to common stockholders $ 90.5 $ 691.3 $ 364.3 Denominator Weighted average number of common shares outstanding - basic 159.4 186.9 194.3 Basic net earnings per common share: Distributed net earnings $ 0.64 $ 0.64 $ 0.61 Allocated undistributed net earnings to common stockholders 0.57 3.69 1.88 Basic net earnings per common share $ 1.21 $ 4.33 $ 2.49 Diluted Net Earnings Per Common Share: Numerator Distributed and allocated undistributed net earnings to common stockholders $ 192.2 $ 810.0 $ 483.0 Add: Allocated undistributed net earnings to unvested restricted stockholders 0.5 4.3 2.6 Less: Undistributed net earnings reallocated to unvested restricted stockholders (0.5 ) (4.3 ) (2.6 ) Net earnings available to common stockholders - diluted $ 192.2 $ 810.0 $ 483.0 Denominator Weighted average number of common shares outstanding - basic 159.4 186.9 194.3 Effect of contingently issuable shares 0.1 0.7 1.2 Effect of unvested restricted stock units 0.3 0.7 0.7 Weighted average number of common shares outstanding - diluted under two-class 159.8 188.3 196.2 Effect of unvested restricted stock - participating security 0.4 0.6 1.0 Weighted average number of common shares outstanding - diluted under treasury stock 160.2 188.9 197.2 Diluted net earnings per common share $ 1.20 $ 4.29 $ 2.46 |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information (Unaudited, in millions, except per share data) | 2018 First Second Third Fourth (In millions, except per share amounts) Quarter Quarter Quarter Quarter Net sales $ 1,131.0 $ 1,155.2 $ 1,186.2 $ 1,260.3 Gross profit 374.0 363.5 365.5 399.1 Net (loss) earnings from continuing operations (208.0 ) 83.3 75.6 199.4 Gain on sale of discontinued operations, net of tax 7.4 31.1 3.4 0.9 Net (loss) earnings (1) $ (200.6 ) $ 114.4 $ 79.0 $ 200.3 Basic: Continuing operations $ (1.25 ) $ 0.52 $ 0.48 $ 1.28 Discontinued operations 0.04 0.19 0.02 0.01 Net (loss) earnings per common share - basic $ (1.21 ) $ 0.71 $ 0.50 $ 1.29 Diluted: Continuing operations $ (1.25 ) $ 0.52 $ 0.48 $ 1.28 Discontinued operations 0.04 0.19 0.02 — Net (loss) earnings per common share - diluted $ (1.21 ) $ 0.71 $ 0.50 $ 1.28 2017 First Second Third Fourth (In millions, except per share amounts) Quarter Quarter Quarter Quarter Net sales $ 1,032.2 $ 1,070.3 $ 1,131.3 $ 1,227.8 Gross profit 335.4 343.5 360.7 372.5 Net (loss) earnings from continuing operations (53.7 ) 29.0 62.5 25.0 Gain (loss) on sale of discontinued operations, net of tax — — 699.3 (58.6 ) Net earnings from discontinued operations, net of tax 10.5 75.1 25.7 0.1 Net (loss) earnings (1) $ (43.2 ) $ 104.1 $ 787.5 $ (33.5 ) Basic: Continuing operations $ (0.27 ) $ 0.14 $ 0.33 $ 0.14 Discontinued operations 0.05 0.39 3.86 (0.33 ) Net (loss) earnings per common share - basic $ (0.22 ) $ 0.53 $ 4.19 $ (0.19 ) Diluted: Continuing operations $ (0.27 ) $ 0.14 $ 0.33 $ 0.14 Discontinued operations 0.05 0.38 3.82 (0.33 ) Net (loss) earnings per common share - diluted $ (0.22 ) $ 0.52 $ 4.15 $ (0.19 ) (1) The sum of the quarterly per share amounts may not agree to the respective annual amounts due to rounding. |
Organization and Nature of Op_2
Organization and Nature of Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Recently Issued Accounting Standards - (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)bankBs. / $ | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Significant Accounting Policies [Line Items] | ||||
Other (expense) income | $ (0.9) | $ 1.2 | $ 0.8 | |
Cost of sales | [1],[2] | 3,230.6 | 3,049.5 | 2,810.3 |
Severance and termination benefits for employees | 47.8 | 12.1 | 2.8 | |
Depreciation and amortization expenses related to fixed assets and intangible assets | 2.4 | 0 | 1.7 | |
Inventory reserves | 4.8 | 3.6 | 6.4 | |
Income tax provision | $ 307.5 | 330.5 | 95.6 | |
Charges for rebates and other allowances | 5.00% | |||
Research and development costs | $ 80.8 | 91.8 | 88 | |
Target level for the determination of performance goals and measures | 100.00% | |||
Tax benefits realization percentage upon settlement | 50.00% | |||
Number of banks involved in sale of fractional ownership interest of accounts receivable | bank | 2 | |||
Amounts factored under accounts receivable securitization program | $ 249.8 | 181.1 | ||
Fees associated with transfer of receivables | $ 2 | 2 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite lived identifiable intangible assets useful life | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite lived identifiable intangible assets useful life | 17 years | |||
Buildings | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 20 years | |||
Buildings | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 40 years | |||
Machinery and equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 5 years | |||
Machinery and equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 10 years | |||
Other Property and Equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 2 years | |||
Other Property and Equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life | 10 years | |||
Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Costs related to ceasing operation of Venezuelan subsidiaries | 49.4 | |||
Venezuela Subsidiaries | Selling, General and Administrative Expenses | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation and amortization expenses related to fixed assets and intangible assets | 0.5 | |||
Argentina | Argentina Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction loss related to remeasurement | $ 2.4 | |||
Argentina | Argentina, Pesos | ||||
Significant Accounting Policies [Line Items] | ||||
Exchange rate, translation | Bs. / $ | 37.6679 | |||
Venezuela | Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction loss related to remeasurement | 1 | 3.4 | ||
Costs related to ceasing operation of Venezuelan subsidiaries | 47.3 | |||
Continuing Operations | Venezuela | Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction loss related to remeasurement | 0.1 | |||
Discontinued Operations | Venezuela | Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction loss related to remeasurement | 1.7 | |||
Cease Venezuelan Operations | Venezuela | Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory reserves | 0.4 | |||
Income tax provision | 0.9 | |||
Employee Severance | Cease Venezuelan Operations | Venezuela | Venezuela Subsidiaries | ||||
Significant Accounting Policies [Line Items] | ||||
Severance and termination benefits for employees | 0.3 | |||
Scenario, Adjustment | ||||
Significant Accounting Policies [Line Items] | ||||
Other (expense) income | (8.1) | (6.4) | ||
Cost of sales | 8.1 | 6.4 | ||
ASU 2017-07 | ||||
Significant Accounting Policies [Line Items] | ||||
Other (expense) income | 16.7 | 3.8 | ||
Cost of sales | $ (16.7) | $ 3.8 | ||
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | |||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2019 | Oct. 01, 2018 | Jan. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cost of sales | [1],[2] | $ (3,230.6) | $ (3,049.5) | $ (2,810.3) | |||
Other income (expense), net | (0.9) | 1.2 | 0.8 | ||||
(Decrease) Increase in financing activities | (478.3) | (1,889.7) | (544.5) | ||||
Decrease in investing activities | 266.7 | (1,786.1) | 314.8 | ||||
Deferred tax assets | 150 | 147.7 | |||||
Decrease in other noncurrent liabilities | (653.3) | (490.8) | |||||
Retained earnings | (1,835.5) | (1,735.2) | |||||
ASU 2018-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Tax Cuts And Jobs Act Of 2017 reclassification from accumulated other comprehensive income to retained earnings Tax Effect | $ 13.4 | $ 13.4 | |||||
ASU 2017-07 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cost of sales | 16.7 | (3.8) | |||||
Other income (expense), net | 16.7 | 3.8 | |||||
ASU 2016-18 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
(Decrease) Increase in financing activities | (25.4) | $ 3.6 | |||||
Decrease in investing activities | $ 27.5 | ||||||
ASU 2016-16 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other assets | $ 7.5 | ||||||
Deferred tax assets | 4.8 | ||||||
Decrease in other noncurrent liabilities | 1.7 | ||||||
Retained earnings | $ 1 | ||||||
Scenario, Forecast | ASU 2016-02 | Minimum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Lease liability | $ 75 | ||||||
ROU asset | 75 | ||||||
Scenario, Forecast | ASU 2016-02 | Maximum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Lease liability | 95 | ||||||
ROU asset | $ 95 | ||||||
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | ||||||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Effect of Adoption of New Revenue Recognition Standard (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Net sales | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 | |
Other current liabilities | 428.9 | 562 | 428.9 | 562 | ||||||||
Other non-current liabilities | 653.3 | 490.8 | 653.3 | 490.8 | ||||||||
Retained earnings | 1,835.5 | $ 1,735.2 | 1,835.5 | $ 1,735.2 | ||||||||
Balances without Adoption of Topic 606 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Net sales | 4,731.8 | |||||||||||
Other current liabilities | 428.1 | 428.1 | ||||||||||
Other non-current liabilities | 648.9 | 648.9 | ||||||||||
ASU 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Other current liabilities | $ 2.4 | |||||||||||
Retained earnings | $ 2.4 | |||||||||||
ASU 2014-09 | Effect of Change | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Net sales | 0.9 | |||||||||||
Other current liabilities | 0.8 | 0.8 | ||||||||||
Other non-current liabilities | $ 4.4 | $ 4.4 |
Revenue Recognition, Contract_3
Revenue Recognition, Contracts with Customers (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from performance obligation satisfied in previous periods | $ 5.6 |
Revenue Recognition, Contract_4
Revenue Recognition, Contracts with Customers - Revenues from Contracts with Customers Summarized By Segment Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | $ 4,703.6 | ||||||||||
Non-Topic 606 Revenue (Leasing) | 29.1 | ||||||||||
Total revenues | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | 4,732.7 | $ 4,461.6 | $ 4,211.3 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 2,529.6 | ||||||||||
Total revenues | 2,548.9 | 2,415 | 2,237.8 | ||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 1,033.7 | ||||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 416.4 | ||||||||||
Total revenues | 417.1 | $ 409.3 | $ 396.8 | ||||||||
APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 723.9 | ||||||||||
Food Care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 2,888 | ||||||||||
Non-Topic 606 Revenue (Leasing) | 20.1 | ||||||||||
Total revenues | 2,908.1 | ||||||||||
Food Care | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 1,444.1 | ||||||||||
Food Care | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 651.6 | ||||||||||
Food Care | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 368.5 | ||||||||||
Food Care | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 423.8 | ||||||||||
Product Care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 1,815.6 | ||||||||||
Non-Topic 606 Revenue (Leasing) | 9 | ||||||||||
Total revenues | 1,824.6 | ||||||||||
Product Care | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 1,085.5 | ||||||||||
Product Care | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 382.1 | ||||||||||
Product Care | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 47.9 | ||||||||||
Product Care | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | $ 300.1 |
Revenue Recognition, Contract_5
Revenue Recognition, Contracts with Customers - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 10.4 | $ 5.5 | |
Revenue recognized that was included in contract liability at beginning of period | $ 4.9 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 3.1 |
Revenue Recognition, Contract_6
Revenue Recognition, Contracts with Customers - Remaining Performance Obligation and Total Transaction Price (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Short-Term (12 months or less), remaining performance amount | $ 1.6 |
Long-Term, remaining performance amount | 8.8 |
Total, remaining Performance obligation, amount | $ 10.4 |
Discontinued Operations, Dive_3
Discontinued Operations, Divestitures and Acquisitions - Additional Information (Detail) R$ in Millions, $ in Millions, $ in Millions | Aug. 01, 2018USD ($) | Oct. 02, 2017SGD ($) | Oct. 02, 2017USD ($) | Sep. 06, 2017USD ($) | Aug. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 19, 2018BRL (R$) | Aug. 01, 2017BRL (R$) | Aug. 01, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Gain on sale of business, net of tax | $ 640.7 | $ 0.9 | $ 3.4 | $ 31.1 | $ 7.4 | $ (58.6) | $ 699.3 | $ 0 | $ 0 | $ 42.8 | $ 640.7 | $ 0 | |||||||||
Taxes on net gain on sale of business | 197.5 | ||||||||||||||||||||
Gain on sale of business | 42.5 | 641.2 | (1.9) | ||||||||||||||||||
Goodwill | 1,947.6 | $ 1,939.8 | 1,947.6 | 1,939.8 | 1,882.9 | ||||||||||||||||
Daylight Medical | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Purchase price of acquisition | $ 25.2 | ||||||||||||||||||||
Cash paid for acquisition | 3.5 | ||||||||||||||||||||
Preliminary fair value of contingent consideration | 21.7 | ||||||||||||||||||||
Noncontingent consideration to be paid in the future | 14.4 | ||||||||||||||||||||
Preliminary fair value for liability-classified contingent consideration | $ 7.3 | ||||||||||||||||||||
AFP | Product Care | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Purchase price of acquisition | $ 74.1 | ||||||||||||||||||||
Percentage of acquired equity interest | 100.00% | ||||||||||||||||||||
Cash acquired from acquisition | $ 2.9 | ||||||||||||||||||||
Goodwill | $ 21.6 | 19.6 | 19.6 | ||||||||||||||||||
Fagerdala Singapore Pte Ltd. | Product Care | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Purchase price of acquisition | $ 144.7 | $ 106.2 | |||||||||||||||||||
Percentage of acquired equity interest | 100.00% | ||||||||||||||||||||
Cash acquired from acquisition | $ 13.3 | ||||||||||||||||||||
Goodwill | $ 39.3 | 37.8 | 37.8 | ||||||||||||||||||
Deltaplam Embalagens Industria e Comercio Ltda (Deltaplam) | Food Care | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Purchase price of acquisition | $ 25.8 | 25.3 | |||||||||||||||||||
Goodwill | 9.7 | 9.7 | $ 8.1 | ||||||||||||||||||
Identifiable intangible assets, net | 5.9 | 5.9 | $ 7.4 | ||||||||||||||||||
Diversey Care | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Gain on sale of business | (20.9) | $ (68.6) | $ (1.4) | ||||||||||||||||||
Discontinued Operations, disposed of by sale | Diversey Care | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Proceeds from sale of businesses | $ 3,200 | ||||||||||||||||||||
Discontinued Operations, Held-for-sale | Polystyrene Food Tray Business | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Gross purchase price | R$ | R$ 8.2 | R$ 26.9 | |||||||||||||||||||
Adjustments to purchase price | R$ 1.6 | $ 0.4 | |||||||||||||||||||
Gain on sale of business | $ 1.4 |
Discontinued Operations, Dive_4
Discontinued Operations, Divestitures and Acquisitions - Summary of Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net earnings from discontinued operations | $ 0.1 | $ 25.7 | $ 75.1 | $ 10.5 | $ 0 | $ 111.4 | $ 194.1 |
Discontinued Operations, disposed of by sale | Diversey Care | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net sales | 1,669 | 2,567 | |||||
Cost of sales | 950.4 | 1,440.3 | |||||
Gross profit | 718.6 | 1,126.7 | |||||
Selling, general and administrative expenses | 538.3 | 859.2 | |||||
Amortization expense of intangible assets acquired | 23.9 | 79.9 | |||||
Operating profit | 156.4 | 187.6 | |||||
Other expense, net | (17) | (9.7) | |||||
Earnings from discontinued operations before income tax provision (benefit) | 139.4 | 177.9 | |||||
Income tax provision (benefit) from discontinued operations | 28 | (16.2) | |||||
Net earnings from discontinued operations | $ 111.4 | $ 194.1 |
Discontinued Operations, Dive_5
Discontinued Operations, Divestitures and Acquisitions - Summary of Select Financial Information (Details) - Diversey Care - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 29.3 | $ 111.4 |
Share-based incentive compensation | 10.2 | 12 |
Profit sharing expense | 3 | 2.9 |
Provision for bad debt | 2.3 | 5 |
Capital expenditures | $ 11.9 | $ 17.8 |
Discontinued Operations, Dive_6
Discontinued Operations, Divestitures and Acquisitions - Summary of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Aug. 01, 2018 | Oct. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, Net of cash acquired | $ 68.4 | $ 119.2 | $ 5.8 | ||||
Assets: | |||||||
Goodwill | $ 1,947.6 | 1,947.6 | $ 1,939.8 | $ 1,882.9 | $ 1,947.6 | ||
Product Care | AFP | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, Net of cash acquired | $ 70.8 | 3.3 | 74.1 | ||||
Assets: | |||||||
Cash and cash equivalents | 2.9 | 2.9 | 2.9 | 2.9 | |||
Trade receivables, net | 30.8 | 30.8 | 30.8 | 30.8 | |||
Inventories, net | 7.1 | 7.2 | 7.2 | 7.2 | |||
Prepaid expenses and other current assets | 0.7 | 0.7 | 0.7 | 0.7 | |||
Property and equipment, net | 3.5 | 3.1 | 3.1 | 3.1 | |||
Identifiable intangible assets, net | 18.6 | 22.7 | 22.7 | 22.7 | |||
Goodwill | 21.6 | 19.6 | 19.6 | 19.6 | |||
Other non-current assets | 0.7 | 0.3 | 0.3 | 0.3 | |||
Total assets | 85.9 | 87.3 | 87.3 | 87.3 | |||
Liabilities: | |||||||
Current portion of long-term debt | 0 | 0.1 | 0.1 | 0.1 | |||
Accounts payable | 13.8 | 11.6 | 11.6 | 11.6 | |||
Other current liabilities | 1.3 | 1.3 | 1.3 | 1.3 | |||
Long-term debt, less current portion | 0 | 0.2 | 0.2 | 0.2 | |||
Total liabilities | $ 15.1 | 13.2 | 13.2 | 13.2 | |||
Measurement Period | |||||||
Inventories, net | 0.1 | ||||||
Property and equipment, net | (0.4) | ||||||
Identifiable intangible assets, net | 4.1 | ||||||
Goodwill | (2) | ||||||
Other non-current assets | (0.4) | ||||||
Total assets | 1.4 | ||||||
Current portion of long-term debt | 0.1 | ||||||
Accounts payable | (2.2) | ||||||
Other current liabilities | 0 | ||||||
Long-term debt, less current portion | 0.2 | ||||||
Total Liabilities | (1.9) | ||||||
Product Care | Fagerdala Singapore Pte Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, Net of cash acquired | $ 106.6 | 106.2 | (0.4) | ||||
Assets: | |||||||
Cash and cash equivalents | 13.3 | 13.3 | 13.3 | 13.3 | |||
Trade receivables, net | 22.4 | 22.4 | 22.4 | 22.4 | |||
Inventories, net | 10 | 10.1 | 10.1 | 10.1 | |||
Prepaid expenses and other current assets | 8.4 | 8.4 | 8.4 | 8.4 | |||
Property and equipment, net | 23.3 | 23.3 | 23.3 | 23.3 | |||
Identifiable intangible assets, net | 41.4 | 42.1 | 42.1 | 42.1 | |||
Goodwill | 39.3 | 37.8 | 37.8 | 37.8 | |||
Total assets | 158.1 | 157.4 | 157.4 | 157.4 | |||
Liabilities: | |||||||
Short-term borrowings | 14 | 14 | 14 | 14 | |||
Accounts payable | 6.9 | 6.9 | 6.9 | 6.9 | |||
Other current liabilities | 15.1 | 15 | 15 | 15 | |||
Long-term debt, less current portion | 3.8 | 3.8 | 3.8 | 3.8 | |||
Non-current deferred taxes | 11.7 | 11.5 | 11.5 | 11.5 | |||
Total liabilities | $ 51.5 | $ 51.2 | $ 51.2 | 51.2 | |||
Measurement Period | |||||||
Inventories, net | 0.1 | ||||||
Identifiable intangible assets, net | 0.7 | ||||||
Goodwill | (1.5) | ||||||
Total assets | (0.7) | ||||||
Other current liabilities | (0.1) | ||||||
Non-current deferred taxes | (0.2) | ||||||
Total Liabilities | $ (0.3) |
Discontinued Operations, Dive_7
Discontinued Operations, Divestitures and Acquisitions - Schedule of Intangible Assets, net and Useful Life (Details) - Product Care - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Aug. 01, 2018 | Oct. 02, 2017 | |
AFP | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 22.7 | $ 18.6 | |
AFP | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 18.6 | ||
Useful life (in years) | 11 years | ||
AFP | Trademarks and tradenames | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 4.1 | ||
Useful life (in years) | 5 years | ||
Fagerdala Singapore Pte Ltd. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 42.1 | $ 41.4 | |
Fagerdala Singapore Pte Ltd. | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 25.4 | ||
Useful life (in years) | 17 years | ||
Fagerdala Singapore Pte Ltd. | Trademarks and tradenames | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 10.6 | ||
Useful life (in years) | 15 years | ||
Fagerdala Singapore Pte Ltd. | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 6.1 | ||
Useful life (in years) | 13 years |
Segments - Additional Informati
Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Net Sales and Adjust
Segments - Net Sales and Adjusted EBITDA of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 |
Adjusted EBITDA from continuing operations | $ 889.5 | $ 833.3 | $ 809.2 | ||||||||
Adjusted EBITDA Margin | 18.80% | 18.70% | 19.20% | ||||||||
Food Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,908.1 | ||||||||||
Product Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,824.6 | ||||||||||
Operating Segments | Food Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,908.1 | $ 2,815.2 | $ 2,686.8 | ||||||||
Adjusted EBITDA from continuing operations | $ 577.8 | $ 538.1 | $ 520.1 | ||||||||
Adjusted EBITDA Margin | 19.90% | 19.10% | 19.40% | ||||||||
Operating Segments | Product Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,824.6 | $ 1,646.4 | $ 1,524.5 | ||||||||
Adjusted EBITDA from continuing operations | $ 318.6 | $ 292.2 | $ 284.8 | ||||||||
Adjusted EBITDA Margin | 17.50% | 17.70% | 18.70% | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA from continuing operations | $ (6.9) | $ 3 | $ 4.3 | ||||||||
Product Concentration Risk | Net Sales | Operating Segments | Food Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
As a % of Total Company net sales | 61.40% | 63.10% | 63.80% | ||||||||
Product Concentration Risk | Net Sales | Operating Segments | Product Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
As a % of Total Company net sales | 38.60% | 36.90% | 36.20% |
Segments - Reconciliation of U.
Segments - Reconciliation of U.S. GAAP Net Earnings to Non-U.S. GAAP Total Company Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net earnings from continuing operations | $ 199.4 | $ 75.6 | $ 83.3 | $ (208) | $ 25 | $ 62.5 | $ 29 | $ (53.7) | $ 150.3 | $ 62.8 | $ 292.3 |
Plus: Interest expense, net | (177.9) | (184.2) | (191.9) | ||||||||
Income tax provision | 307.5 | 330.5 | 95.6 | ||||||||
Plus: Depreciation and amortization | (131.2) | (149.3) | (214) | ||||||||
Less: Depreciation and amortization adjustments | (2.4) | 0 | (1.7) | ||||||||
Plus Special Items: | |||||||||||
Restructuring and other charges | (47.8) | (12.1) | (2.5) | ||||||||
Other restructuring associated costs | (15.8) | (14.3) | (19.8) | ||||||||
Foreign currency exchange loss due to highly inflationary economies | (2.5) | 0 | (1.7) | ||||||||
Charges incurred related to the sale of Diversey | 42.5 | 641.2 | (1.9) | ||||||||
Gain from class-action litigation settlement | 14.9 | 0 | 0 | ||||||||
Other Special Items | (9.4) | (0.5) | (1.4) | ||||||||
Pre-tax impact of Special Items | (94.8) | (97.5) | (77.1) | ||||||||
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | 889.5 | 833.3 | 809.2 | ||||||||
Cease Venezuelan Operations | |||||||||||
Plus Special Items: | |||||||||||
Charges related to ceasing operations in Venezuela | 0 | 0 | (48.5) | ||||||||
European Food Trays Businesses | |||||||||||
Plus Special Items: | |||||||||||
Charges related to acquisition and divestiture activity | (13.3) | (15.5) | (1.8) | ||||||||
Diversey Care | |||||||||||
Plus Special Items: | |||||||||||
Charges incurred related to the sale of Diversey | (20.9) | (68.6) | (1.4) | ||||||||
Curtailment related to retained Diversey retirement plans | 0 | 13.5 | 0 | ||||||||
Share-based compensation expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Plus: Depreciation and amortization | $ (161.4) | $ (158.3) | $ (154) |
Segments - Reconciliation of _2
Segments - Reconciliation of U.S. GAAP Net Earnings to Non-U.S. GAAP Total Company Adjusted EBITDA Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 131.2 | $ 149.3 | $ 214 |
Share-based incentive compensation | 29.9 | 48.5 | 62.9 |
Restructuring and other charges | 47.8 | 12.1 | 2.5 |
Employee Severance | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 0.3 | ||
Share-based compensation expense | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 161.4 | 158.3 | 154 |
Depreciation and amortization | |||
Segment Reporting Information [Line Items] | |||
Share-based incentive compensation | 29.9 | 38.2 | 50.9 |
Food Care | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 17.7 | 7.6 | 1.6 |
Food Care | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 105.4 | 108.9 | 110 |
Product Care | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 30.1 | 4.5 | 0.9 |
Product Care | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 56 | $ 49.4 | $ 44 |
Segments - Assets by Reportable
Segments - Assets by Reportable Segments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets not allocated | |||||
Cash and cash equivalents | [1] | $ 271.7 | $ 594 | $ 333.7 | $ 321.7 |
Assets held for sale | 0.6 | 4 | |||
Deferred taxes | 170.5 | 176.2 | |||
Other | 239.4 | 215.9 | |||
Total assets | 5,050.2 | 5,280.3 | |||
Operating Segments | |||||
Assets not allocated | |||||
Total assets | 4,185 | 4,165.7 | |||
Operating Segments | Food Care | |||||
Assets not allocated | |||||
Total assets | 1,541.5 | 1,545.5 | |||
Operating Segments | Product Care | |||||
Assets not allocated | |||||
Total assets | 2,643.5 | 2,620.2 | |||
Segment Reconciling Items | |||||
Assets not allocated | |||||
Cash and cash equivalents | 271.7 | 594 | |||
Assets held for sale | 0.6 | 4 | |||
Income tax receivables | 58.4 | 85.1 | |||
Other receivables | 81.3 | 90.2 | |||
Deferred taxes | 170.5 | 176.2 | |||
Other | 282.7 | 165.1 | |||
Total assets | $ 5,050.2 | $ 5,280.3 | |||
[1] | Due to the adoption of ASU 2016-18, the Company now is required to include restricted cash as part of the change in the total cash balance. As a result, amounts which were previously classified as cash flows from financing activities related to Sealed Air continuing operations and amounts which were previously classified as cash flows from investing activities related to restricted cash sold with the sale of Diversey have been reclassified as they are recognized in the total change in cash. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," of the Notes to Consolidated Financial Statements for more information. |
Segments - Geographic Informati
Segments - Geographic Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales: | |||||||||||
Net sales | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 |
Total long-lived assets: | |||||||||||
Long-lived assets | 1,275.6 | 1,214.3 | 1,275.6 | 1,214.3 | |||||||
North America | |||||||||||
Net sales: | |||||||||||
Net sales | 2,548.9 | 2,415 | 2,237.8 | ||||||||
Total long-lived assets: | |||||||||||
Long-lived assets | 726 | 639.6 | 726 | 639.6 | |||||||
EMEA | |||||||||||
Net sales: | |||||||||||
Net sales | 1,038 | 984.7 | 962.7 | ||||||||
Total long-lived assets: | |||||||||||
Long-lived assets | 270.5 | 274.1 | 270.5 | 274.1 | |||||||
Latin America | |||||||||||
Net sales: | |||||||||||
Net sales | 417.1 | 409.3 | 396.8 | ||||||||
Total long-lived assets: | |||||||||||
Long-lived assets | 67.3 | 74.6 | 67.3 | 74.6 | |||||||
APAC | |||||||||||
Net sales: | |||||||||||
Net sales | 728.7 | 652.6 | $ 614 | ||||||||
Total long-lived assets: | |||||||||||
Long-lived assets | $ 211.8 | $ 226 | $ 211.8 | $ 226 |
Segments - Geographic Informa_2
Segments - Geographic Information Additional (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Net sales | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 |
Non-US | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Maximum percentage of net sales in any one non-U.S. country | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
Maximum percentage of long-lived assets in any one non-U.S. country | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
U.S.program | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Net sales | $ 2,402.8 | $ 2,278.6 | $ 2,112.1 |
Inventories, net (Detail)
Inventories, net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 79.9 | $ 82.8 |
Work in process | 142.4 | 125.7 |
Finished goods | 322.6 | 298.3 |
Total | $ 544.9 | $ 506.8 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment, Net [Abstract] | ||
Land and improvements | $ 41.2 | $ 43.5 |
Buildings | 728.6 | 718.9 |
Machinery and equipment | 2,325.7 | 2,330.5 |
Other property and equipment | 135.6 | 116.3 |
Construction-in-progress | 155.1 | 114.7 |
Property and equipment, gross | 3,386.2 | 3,323.9 |
Accumulated depreciation and amortization | (2,350) | (2,325.5) |
Property and equipment, net | $ 1,036.2 | $ 998.4 |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Interest cost capitalized | $ 6.3 | $ 10.3 | $ 11 |
Depreciation and amortization expense for property and equipment | $ 115.9 | $ 107 | $ 88.2 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets, Net - Summary of Goodwill Balances by Segment Reporting Structure (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Gross Carrying Value, at beginning of period | $ 2,130.6 | |
Accumulated impairment | (190.8) | |
Carrying Value, at beginning of period | 1,939.8 | |
Acquisition and Divestiture, purchase price and other adjustments | 17.6 | $ 49.4 |
Currency translation | (9.8) | 7.5 |
Gross Carrying Value, at end of period | 2,137.8 | 2,073.3 |
Accumulated impairment | (190.2) | (190.4) |
Carrying Value, at end of period | 1,947.6 | 1,882.9 |
Operating Segments | Food Care | ||
Goodwill [Roll Forward] | ||
Gross Carrying Value, at beginning of period | 576.5 | |
Accumulated impairment | (49.6) | |
Carrying Value, at beginning of period | 526.9 | |
Acquisition and Divestiture, purchase price and other adjustments | (0.6) | 10.1 |
Currency translation | (6.6) | 6 |
Gross Carrying Value, at end of period | 568.9 | 560.3 |
Accumulated impairment | (49.2) | (49.5) |
Carrying Value, at end of period | 519.7 | 510.8 |
Operating Segments | Product Care | ||
Goodwill [Roll Forward] | ||
Gross Carrying Value, at beginning of period | 1,554.1 | |
Accumulated impairment | (141.2) | |
Carrying Value, at beginning of period | 1,412.9 | |
Acquisition and Divestiture, purchase price and other adjustments | 18.2 | 39.3 |
Currency translation | (3.2) | 1.5 |
Gross Carrying Value, at end of period | 1,568.9 | 1,513 |
Accumulated impairment | (141) | (140.9) |
Carrying Value, at end of period | $ 1,427.9 | $ 1,372.1 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | $ 0 | $ 0 | |
Amortization expense of intangible assets acquired | $ 15,700,000 | $ 13,100,000 | $ 15,000,000 |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets, Net - Summary of Identifiable Intangible Assets with Definite and Indefinite Useful Lives (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 200.1 | $ 172 |
Accumulated Amortization | (107.3) | (97.3) |
Net | 92.8 | 74.7 |
Indefinite-lived intangible assets | ||
Total identifiable intangible assets, Gross Carrying Value | 209 | 180.9 |
Total identifiable intangible assets, Net | 101.7 | 83.6 |
Trademarks and tradenames with indefinite lives | ||
Indefinite-lived intangible assets | ||
Trademarks and tradenames with indefinite lives, Gross Carrying Value | 8.9 | 8.9 |
Trademarks and tradenames with indefinite lives, Net | 8.9 | 8.9 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 72.4 | 59.7 |
Accumulated Amortization | (22.3) | (19.7) |
Net | 50.1 | 40 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 15.1 | 11.6 |
Accumulated Amortization | (1.6) | (0.5) |
Net | 13.5 | 11.1 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 62.2 | 50.6 |
Accumulated Amortization | (49.8) | (40) |
Net | 12.4 | 10.6 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 37.2 | 39.2 |
Accumulated Amortization | (23.5) | (27.5) |
Net | 13.7 | 11.7 |
Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 13.2 | 10.9 |
Accumulated Amortization | (10.1) | (9.6) |
Net | $ 3.1 | $ 1.3 |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets, Net - Remaining Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 14.2 | |
2,020 | 12 | |
2,021 | 9 | |
2,022 | 7.6 | |
Thereafter | 50 | |
Net | $ 92.8 | $ 74.7 |
Goodwill and Identifiable Int_7
Goodwill and Identifiable Intangible Assets, Net - Remaining Weighted Average Useful Life of Definite Lived Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |
Finite lived identifiable intangible assets, remaining weighted average useful lives | 10 years 9 months |
Customer relationships | |
Finite Lived Intangible Assets [Line Items] | |
Finite lived identifiable intangible assets, remaining weighted average useful lives | 13 years 3 months |
Trademarks and trade names | |
Finite Lived Intangible Assets [Line Items] | |
Finite lived identifiable intangible assets, remaining weighted average useful lives | 11 years 1 month |
Technology | |
Finite Lived Intangible Assets [Line Items] | |
Finite lived identifiable intangible assets, remaining weighted average useful lives | 6 years 3 months |
Contracts | |
Finite Lived Intangible Assets [Line Items] | |
Finite lived identifiable intangible assets, remaining weighted average useful lives | 8 years 2 months |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization Programs (Detail) € in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)bank | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | |
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | ||||
Number of banks involved in sale of fractional ownership interest of accounts receivable | bank | 2 | |||
Amount available for accounts receivable securitization program | $ 249,800,000 | $ 181,100,000 | ||
Amount outstanding under accounts receivable securitization program | 0 | |||
Interest expense | $ 177,900,000 | 184,200,000 | $ 191,900,000 | |
U.S. Accounts Receivable Securitization Program | ||||
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 | $ 60,000,000 | |||
Amount available for accounts receivable securitization program | 60,000,000 | |||
Interest expense | 600,000 | 1,000,000 | $ 1,300,000 | |
U.S. Accounts Receivable Securitization Program | U.S.program | ||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | ||||
Level of eligible assets available under accounts receivable securitization program (less than) | 60,000,000 | |||
Amount outstanding under accounts receivable securitization program | $ 0 | 0 | ||
European Accounts Receivable Securitization Program | ||||
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 | $ 91,600,000 | € 80 | ||
Amount available for accounts receivable securitization program | 90,300,000 | 78.9 | ||
European Accounts Receivable Securitization Program | European Program | ||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | ||||
Amount outstanding under accounts receivable securitization program | $ 83,900,000 | $ 0 | € 73.3 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 47.8 | $ 12.1 | $ 2.5 |
Restructuring expected accrual to pay | 33.5 | ||
Restructuring expected accrual remaining to pay | $ 4 |
Restructuring Activities - Sche
Restructuring Activities - Schedule of Board Approved Restructuring (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total Restructuring Program Range | |||
Total expense | $ 61.7 | $ 28.8 | $ 40.9 |
Capital expenditures | 1 | $ 21.3 | $ 123.5 |
Program | |||
Restructuring Costs Incurred To Date [Abstract] | |||
Costs of reduction in headcount as a result of reorganization | (285) | ||
Other expenses associated with the Program | (137) | ||
Total expense | (422) | ||
Cumulative capital expenditures | (236) | ||
Total cash cost | (658) | ||
Program | Minimum | |||
Total Restructuring Program Range | |||
Costs of reduction in headcount as a result of reorganization | 385 | ||
Other expenses associated with the Program | 205 | ||
Total expense | 590 | ||
Capital expenditures | 250 | ||
Total estimated cash cost | 840 | ||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Costs of reduction in headcount as a result of reorganization | 100 | ||
Other expenses associated with the Program | 68 | ||
Total expense | 168 | ||
Capital expenditures | 14 | ||
Total estimated cash cost | 182 | ||
Program | Maximum | |||
Total Restructuring Program Range | |||
Costs of reduction in headcount as a result of reorganization | 405 | ||
Other expenses associated with the Program | 225 | ||
Total expense | 630 | ||
Capital expenditures | 255 | ||
Total estimated cash cost | 885 | ||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Costs of reduction in headcount as a result of reorganization | 120 | ||
Other expenses associated with the Program | 88 | ||
Total expense | 208 | ||
Capital expenditures | 19 | ||
Total estimated cash cost | $ 227 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 47.8 | $ 12.1 | $ 2.5 |
Total expense | 61.7 | 28.8 | 40.9 |
Capital expenditures | 1 | 21.3 | 123.5 |
Share-based compensation expense | 29.9 | 48.5 | 62.9 |
Continuing Operations | |||
Restructuring Cost And Reserve [Line Items] | |||
Other associated costs | 13.9 | 14.3 | 19.8 |
Restructuring charges | 47.8 | 12.1 | 2.5 |
Total expense | 61.7 | 26.4 | 22.3 |
Share-based compensation expense | 1.9 | ||
Discontinued Operations | |||
Restructuring Cost And Reserve [Line Items] | |||
Total expense | $ 0 | $ 2.4 | $ 18.6 |
Restructuring Activities - Comp
Restructuring Activities - Components of Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring accrual, beginning of period | $ 16.1 |
Accrual and accrual adjustments | 47.8 |
Cash payments during 2018 | (25) |
Effect of changes in foreign currency exchange rates | (1.4) |
Restructuring accrual, end of period | $ 37.5 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Components of Other Current and Other Non-Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other current liabilities: | ||
Accrued salaries, wages and related costs | $ 164.9 | $ 194 |
Accrued operating expenses | 135.8 | 237.2 |
Accrued customer volume rebates | 84.6 | 87.9 |
Accrued interest | 38.2 | 38.5 |
Accrued employee benefit liability | 5.4 | 4.4 |
Total | 428.9 | 562 |
Other non-current liabilities: | ||
Accrued employee benefit liability | 172 | 169.3 |
Other postretirement liability | 41.3 | 46.1 |
Other various liabilities | 440 | 275.4 |
Total | 653.3 | $ 490.8 |
Accrued various expenses, related tax liabilities | $ 382 |
Debt and Credit Facilities - To
Debt and Credit Facilities - Total Debt Outstanding (Detail) € in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 232,800,000 | $ 25,300,000 | |
Current portion of long-term debt | 4,900,000 | 2,200,000 | |
Total current debt | 237,700,000 | 27,500,000 | |
Other | 29,200,000 | 6,300,000 | |
Total long-term debt, less current portion | 3,236,500,000 | 3,230,500,000 | |
Total debt | $ 3,474,200,000 | 3,258,000,000 | |
Amount outstanding under accounts receivable securitization program | $ 0 | ||
Weighted average interest rate on short-term borrowing | 2.80% | 2.80% | 5.40% |
Weighted average interest rate on long-term debt | 5.40% | 5.40% | 5.30% |
Unamortized discount and issuance costs | $ 24,300,000 | $ 29,500,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 140,000,000 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 8,900,000 | 23,200,000 | |
Accounts Payable Under Financing Arrangements | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 2,100,000 | ||
European Accounts Receivable Securitization Program | European Program | |||
Debt Instrument [Line Items] | |||
Amount outstanding under accounts receivable securitization program | 83,900,000 | € 73.3 | 0 |
6.50% Senior Notes due December 2020 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 424,000,000 | 423,600,000 | |
Debt interest rate | 6.50% | 6.50% | |
4.875% Senior Notes due December 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 421,100,000 | 420,400,000 | |
Debt interest rate | 4.875% | 4.875% | |
5.25% Senior Notes due April 2023 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 421,200,000 | 420,400,000 | |
Debt interest rate | 5.25% | 5.25% | |
4.50% Senior Notes due September 2023 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 454,900,000 | 474,300,000 | |
Debt interest rate | 4.50% | 4.50% | |
5.125% Senior Notes due December 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 421,300,000 | 420,700,000 | |
Debt interest rate | 5.125% | 5.125% | |
5.50% Senior Notes due September 2025 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 397,100,000 | 396,700,000 | |
Debt interest rate | 5.50% | 5.50% | |
6.875% Senior Notes due July 2033 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 445,500,000 | 445,400,000 | |
Debt interest rate | 6.875% | 6.875% | |
Term Loan A due July 2023 | |||
Debt Instrument [Line Items] | |||
Term Loan A due July 2023 | $ 222,200,000 | $ 222,700,000 |
Debt and Credit Facilities - Sc
Debt and Credit Facilities - Scheduled Annual Maturities for Next Five Years and Thereafter (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 4.9 |
2,020 | 430.8 |
2,021 | 15.8 |
2,022 | 437.2 |
2,023 | 1,084.1 |
Thereafter | 1,292.9 |
Total | $ 3,265.7 |
Debt and Credit Facilities - Am
Debt and Credit Facilities - Amended and Restated Senior Secured Credit Facilities (Details) £ in Millions | Jul. 12, 2018USD ($) | Dec. 31, 2018USD ($) | Jul. 12, 2018GBP (£) | Jul. 11, 2018USD ($) |
Interest expense, net | ||||
Debt Instrument [Line Items] | ||||
Amortization expense | $ 3,200,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facilities | $ 700,000,000 | |||
Term Loan A Facility Due July 2023 | ||||
Debt Instrument [Line Items] | ||||
Term Loans | $ 186,500,000 | £ 29.4 | ||
Third Amended And Restated Credit Agreement | Base Rate | Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 1.25% | |||
Third Amended And Restated Credit Agreement | Base Rate | Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 2.00% | |||
Third Amended And Restated Credit Agreement | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facilities | $ 1,000,000,000 | |||
Loss on debt redemption and refinancing activities | 1,900,000 | |||
Accelerated amortization of original issuance discount | 1,500,000 | |||
Included in debt redemption was non-lender fees incurred | 400,000 | |||
Debt issuance lender fees | $ 700,000 | |||
Third Amended And Restated Credit Agreement | Line of Credit | Revolving Credit Facility | Other Assets | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs capitalized | $ 4,900,000 |
Debt and Credit Facilities - Cr
Debt and Credit Facilities - Credit Facility (Details) - USD ($) $ in Millions | Mar. 25, 2017 | Jul. 31, 2017 | Dec. 31, 2017 |
Term Loan A Due July 2017 | |||
Debt Instrument [Line Items] | |||
Repayment of Term Loan A facility due July 2017 | $ 250 | ||
Term Loan A Due July 2019 | |||
Debt Instrument [Line Items] | |||
Prepayments of Term Loan A facility due in July 2019 | $ 755.2 | $ 96.3 | |
Credit facility, remaining balance | $ 222.7 |
Debt and Credit Facilities - Li
Debt and Credit Facilities - Lines of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Used lines of credit | $ 232.8 | $ 23.2 |
Unused lines of credit | 1,135.3 | 1,108.6 |
Total available lines of credit | 1,368.1 | $ 1,131.8 |
Committed Line Of Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Total available lines of credit | $ 1,150.3 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Detail) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)derivative | Dec. 31, 2017USD ($)derivative | Dec. 31, 2016USD ($) | Jun. 30, 2015EUR (€) | Mar. 31, 2015USD ($) | |
4.50% Senior Notes due September 2023 | |||||
Derivative [Line Items] | |||||
Debt interest rate | 4.50% | ||||
Foreign Currency Forward Contracts | |||||
Derivative [Line Items] | |||||
Fair Value of (liability) derivatives | $ 600,000 | $ (1,600,000) | |||
Foreign Currency Forward Contracts | Not Designated as Hedging Instruments | |||||
Derivative [Line Items] | |||||
Maximum original maturity period of foreign currency forward contracts | 12 months | ||||
Foreign Currency Forward Contracts | Designated as Hedging Instruments | |||||
Derivative [Line Items] | |||||
Unrealized gain (losses) on derivative instruments, net of taxes | $ 2,900,000 | $ (5,000,000) | $ 1,500,000 | ||
Estimate of net unrealized gains that will be reclassified into earnings | $ 1,500,000 | ||||
Maximum original maturity period of foreign currency forward contracts | 12 months | ||||
Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Number of derivative instruments outstanding | derivative | 0 | 0 | |||
EUR - Denominated debt | Net Investment Hedge | 4.50% Senior Notes due September 2023 | |||||
Derivative [Line Items] | |||||
Debt instrument face amount | € | € 400,000,000 | ||||
Debt interest rate | 4.50% | ||||
EUR - Denominated debt | Designated as Hedging Instruments | Net Investment Hedge | |||||
Derivative [Line Items] | |||||
Fair Value of (liability) derivatives | $ 7,800,000 | ||||
Fair value of (liability) derivatives, after tax | 5,900,000 | ||||
Cross-currency swaps | Net Investment Hedge | |||||
Derivative [Line Items] | |||||
Notional amount of outstanding derivative | $ 425,000,000 | ||||
Cross-currency swaps | Designated as Hedging Instruments | Net Investment Hedge | |||||
Derivative [Line Items] | |||||
Fair Value of (liability) derivatives | $ 61,900,000 | ||||
Semi-annual interest settlement resulted in AOCI | $ 17,700,000 | ||||
Semi-annual interest settlement resulted in AOCI after tax | $ (44,200,000) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Detail) € in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) |
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | $ 3.5 | $ 4.1 | |
Total Derivative Liabilities | (2.9) | (5.7) | |
Net Derivatives | 0.6 | (1.6) | |
Excludes debt designated as net investment hedge | 3,236.5 | 3,230.5 | |
Foreign Currency Forward Contracts | |||
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | 3.5 | 4.1 | |
Total Derivative Liabilities | (2.9) | (5.7) | |
Non-Designated as Hedging Instruments | |||
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | 1.7 | 3.6 | |
Total Derivative Liabilities | (2.7) | (3.3) | |
Net Derivatives | (1) | 0.3 | |
Non-Designated as Hedging Instruments | Foreign Currency Forward Contracts | |||
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | 1.7 | 3.6 | |
Total Derivative Liabilities | (2.7) | (3.3) | |
Designated as Hedging Instruments | Foreign Currency Forward Contracts | |||
Derivatives Fair Value [Line Items] | |||
Excludes debt designated as net investment hedge | 454.9 | € 400 | 474.3 |
Cash Flow Hedge | Designated as Hedging Instruments | |||
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | 1.8 | 0.5 | |
Total Derivative Liabilities | (0.2) | (2.4) | |
Net Derivatives | 1.6 | (1.9) | |
Cash Flow Hedge | Designated as Hedging Instruments | Foreign Currency Forward Contracts | |||
Derivatives Fair Value [Line Items] | |||
Total Derivative Assets | 1.8 | 0.5 | |
Total Derivative Liabilities | $ (0.2) | $ (2.4) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Gross position | $ 3.5 | $ 4.1 |
Other Current Assets | ||
Offsetting Assets [Line Items] | ||
Gross position | 3.5 | 4.1 |
Impact of master netting agreements | (1.4) | (0.4) |
Net amounts recognized on the Consolidated Balance Sheets | $ 2.1 | $ 3.7 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Gross position | $ (2.9) | $ (5.7) |
Other Current Liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross position | (2.9) | (5.7) |
Impact of master netting agreements | 1.4 | 0.4 |
Net amounts recognized on the Consolidated Balance Sheet | $ (1.5) | $ (5.3) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (11.5) | $ (11.1) | $ (20.1) |
Designated as Hedging Instruments | Cash Flow Hedge | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.3 | (0.1) | (1.4) |
Cost of sales | Designated as Hedging Instruments | Cash Flow Hedge | Foreign Currency Forward Contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.2 | (0.2) | (1.5) |
Interest expense, net | Designated as Hedging Instruments | Cash Flow Hedge | Treasury Lock | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.1 | 0.1 | 0.1 |
Interest expense, net | Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Swaps | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | 0.5 | 0.5 | 0.5 |
Other (expense) income, net | Not Designated as Hedging Instruments | Foreign Currency Forward Contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (12.3) | $ (11.5) | $ (19.2) |
Fair Value Measurements and O_3
Fair Value Measurements and Other Financial Instruments - Fair Value Measurements of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 38.6 | $ 297.5 |
Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | 0.6 | (1.6) |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 38.6 | 297.5 |
Level 1 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | 0.6 | (1.6) |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial instruments net asset (liability) | $ 0 | $ 0 |
Fair Value Measurements and O_4
Fair Value Measurements and Other Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Certificates of deposits maturity period | 3 months |
Fair Value Measurements and O_5
Fair Value Measurements and Other Financial Instruments - Carrying Amounts and Estimated Fair Values of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
6.50% Senior Notes due December 2020 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 6.50% | |
4.875% Senior Notes due December 2022 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 4.875% | |
5.25% Senior Notes due April 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 5.25% | |
4.50% Senior Notes due September 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 4.50% | |
5.125% Senior Notes due December 2024 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 5.125% | |
5.50% Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 5.50% | |
6.875% Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 6.875% | |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other foreign loans | $ 98.5 | $ 30.2 |
Other domestic loans | 168.4 | 3.6 |
Total debt | 3,474.2 | 3,258 |
Carrying Amount | 6.50% Senior Notes due December 2020 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 424 | 423.6 |
Carrying Amount | 4.875% Senior Notes due December 2022 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421.1 | 420.4 |
Carrying Amount | 5.25% Senior Notes due April 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421.2 | 420.4 |
Carrying Amount | 4.50% Senior Notes due September 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 454.9 | 474.3 |
Carrying Amount | 5.125% Senior Notes due December 2024 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421.3 | 420.7 |
Carrying Amount | 5.50% Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 397.1 | 396.7 |
Carrying Amount | 6.875% Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 445.5 | 445.4 |
Carrying Amount | Term Loan A Facility Due July 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term Loan A Facility | 222.2 | 222.7 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other foreign loans | 99.2 | 30.4 |
Other domestic loans | 170 | 3.6 |
Total debt | 3,535.1 | 3,596.2 |
Fair Value | 6.50% Senior Notes due December 2020 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 440.1 | 465.1 |
Fair Value | 4.875% Senior Notes due December 2022 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421.2 | 451 |
Fair Value | 5.25% Senior Notes due April 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 424.5 | 455.6 |
Fair Value | 4.50% Senior Notes due September 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 489.9 | 544.4 |
Fair Value | 5.125% Senior Notes due December 2024 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 419.8 | 456.2 |
Fair Value | 5.50% Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 394.8 | 439.9 |
Fair Value | 6.875% Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 453.4 | 527.3 |
Fair Value | Term Loan A Facility Due July 2023 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term Loan A Facility | $ 222.2 | $ 222.7 |
Profit Sharing, Retirement Sa_3
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Provisions charged from operations for the profit sharing plan and retirement savings plans | $ 36.3 | $ 39.9 | $ 42.9 |
Contribution of common stock to profit sharing plan (in shares) | 538,524 | 502,519 | 830,600 |
Defined benefit pension plan corridor rate | 10.00% | ||
Percentage of equity allocation, maximum | 65.00% | ||
Percentage of fixed income allocation, minimum | 35.00% | ||
Plan assets | $ 668.7 | $ 776.2 | $ 771.8 |
Expected benefits paid | 39.9 | ||
Bulk Annuity Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 112 | ||
Minimum | Equity Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment target asset allocation | 40.00% | ||
Minimum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment target asset allocation | 50.00% | ||
Maximum | Equity Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment target asset allocation | 50.00% | ||
Maximum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment target asset allocation | 60.00% | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution | $ 17 | ||
Expected benefits paid | $ 3 |
Profit Sharing, Retirement Sa_4
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Schedule of Components of Net Periodic Benefit Cost (Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total (income) benefit cost | $ (4.1) | $ 1 | $ 11.9 |
U.S. and International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total (income) benefit cost | (4.1) | 1 | 11.9 |
U.S. and International | Cost of sales | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total (income) benefit cost | 0.8 | 1.4 | 1.5 |
U.S. and International | Selling, General and Administrative Expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total (income) benefit cost | 3.5 | 5.6 | 9.1 |
U.S. and International | Other Income (Expense) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total (income) benefit cost | $ (8.4) | $ (6) | $ 1.3 |
Profit Sharing, Retirement Sa_5
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Funded Status for Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligations: | |||
Benefit obligation at beginning of period | $ 906.9 | $ 978.9 | |
Service cost | 4.3 | 7 | $ 10.6 |
Interest cost | 21.7 | 22.9 | 26.1 |
Actuarial (gain) loss | (32.1) | 27.8 | |
Settlement/curtailment | (22.7) | (35) | |
Benefits paid | (34.1) | (35.5) | |
Employee contributions | 0.7 | 2.2 | |
Business divestiture | 0 | (120.2) | |
Other | 6 | 1.2 | |
Foreign exchange impact | (35.1) | 57.6 | |
Benefit obligation at end of period | 815.6 | 906.9 | 978.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 776.2 | 771.8 | |
Actual return on plan assets | (34) | 70.1 | |
Employer contributions | 15.7 | 28.1 | |
Employee contributions | 0.7 | 2.2 | |
Benefits paid | (34.1) | (35.5) | |
Settlement | (22.7) | (30.4) | |
Business divestiture | 0 | (74.2) | |
Other | 0.7 | (0.5) | |
Foreign exchange impact | (33.8) | 44.6 | |
Fair value of plan assets at end of period | 668.7 | 776.2 | 771.8 |
Underfunded status at end of year | (146.9) | (130.7) | |
Accumulated benefit obligation at end of year | 803 | 893.7 | |
U.S. | Pension Plan | |||
Change in benefit obligations: | |||
Benefit obligation at beginning of period | 204.7 | 213.1 | |
Service cost | 0.1 | 0.1 | 0.6 |
Interest cost | 6.5 | 6.8 | 7.8 |
Actuarial (gain) loss | (10.6) | 11.3 | |
Settlement/curtailment | (7.6) | (13.8) | |
Benefits paid | (11.2) | (12.9) | |
Employee contributions | 0 | 0 | |
Business divestiture | 0 | 0 | |
Other | 0.2 | 0.1 | |
Foreign exchange impact | 0 | 0 | |
Benefit obligation at end of period | 182.1 | 204.7 | 213.1 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 148.7 | 150.3 | |
Actual return on plan assets | (10.5) | 19.3 | |
Employer contributions | 0.4 | 6.3 | |
Employee contributions | 0 | 0 | |
Benefits paid | (11.2) | (12.9) | |
Settlement | (7.6) | (14.3) | |
Business divestiture | 0 | 0 | |
Other | 0.1 | 0 | |
Foreign exchange impact | 0 | 0 | |
Fair value of plan assets at end of period | 119.9 | 148.7 | 150.3 |
Underfunded status at end of year | (62.2) | (56) | |
Accumulated benefit obligation at end of year | 182.1 | 204.8 | |
International | Pension Plan | |||
Change in benefit obligations: | |||
Benefit obligation at beginning of period | 702.2 | 765.8 | |
Service cost | 4.2 | 6.9 | 10 |
Interest cost | 15.2 | 16.1 | 18.3 |
Actuarial (gain) loss | (21.5) | 16.5 | |
Settlement/curtailment | (15.1) | (21.2) | |
Benefits paid | (22.9) | (22.6) | |
Employee contributions | 0.7 | 2.2 | |
Business divestiture | 0 | (120.2) | |
Other | 5.8 | 1.1 | |
Foreign exchange impact | (35.1) | 57.6 | |
Benefit obligation at end of period | 633.5 | 702.2 | 765.8 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 627.5 | 621.5 | |
Actual return on plan assets | (23.5) | 50.8 | |
Employer contributions | 15.3 | 21.8 | |
Employee contributions | 0.7 | 2.2 | |
Benefits paid | (22.9) | (22.6) | |
Settlement | (15.1) | (16.1) | |
Business divestiture | 0 | (74.2) | |
Other | 0.6 | (0.5) | |
Foreign exchange impact | (33.8) | 44.6 | |
Fair value of plan assets at end of period | 548.8 | 627.5 | $ 621.5 |
Underfunded status at end of year | (84.7) | (74.7) | |
Accumulated benefit obligation at end of year | $ 620.9 | $ 688.9 |
Profit Sharing, Retirement Sa_6
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Amounts Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 26.3 | $ 39.1 |
Other current liabilities | (2.3) | (2.4) |
Other non-current liabilities | (171.9) | (169.4) |
Net amount recognized | (147.9) | (132.7) |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | 0 | 0 |
Other current liabilities | 0 | 0 |
Other non-current liabilities | (62.1) | (56.1) |
Net amount recognized | (62.1) | (56.1) |
International | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | 26.3 | 39.1 |
Other current liabilities | (2.3) | (2.4) |
Other non-current liabilities | (109.8) | (113.3) |
Net amount recognized | $ (85.8) | $ (76.6) |
Profit Sharing, Retirement Sa_7
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Components of Net Periodic Benefit Costs (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4.3 | $ 7 | $ 10.6 |
Interest cost | 21.7 | 22.9 | 26.1 |
Expected return on plan assets | (37.9) | (40.4) | (34.3) |
Other adjustments | 0.1 | 0 | 1.3 |
Amortization of net prior service cost | 0 | (0.1) | 0 |
Amortization of net actuarial loss | 3.3 | 6.5 | 7.5 |
Net periodic (income) benefit cost | (8.5) | (4.1) | 11.2 |
Cost (income) of settlement/curtailment | 4.4 | 5.1 | 0.7 |
Total benefit (income) cost | (4.1) | 1 | 11.9 |
U.S. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | 0.1 | 0.6 |
Interest cost | 6.5 | 6.8 | 7.8 |
Expected return on plan assets | (8.7) | (9.8) | (10) |
Other adjustments | 0.1 | 0 | 1.3 |
Amortization of net prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 0.9 | 0.8 | 2.2 |
Net periodic (income) benefit cost | (1.1) | (2.1) | 1.9 |
Cost (income) of settlement/curtailment | 1.6 | 2.1 | 0.6 |
Total benefit (income) cost | 0.5 | 0 | 2.5 |
International | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4.2 | 6.9 | 10 |
Interest cost | 15.2 | 16.1 | 18.3 |
Expected return on plan assets | (29.2) | (30.6) | (24.3) |
Other adjustments | 0 | 0 | 0 |
Amortization of net prior service cost | 0 | (0.1) | 0 |
Amortization of net actuarial loss | 2.4 | 5.7 | 5.3 |
Net periodic (income) benefit cost | (7.4) | (2) | 9.3 |
Cost (income) of settlement/curtailment | 2.8 | 3 | 0.1 |
Total benefit (income) cost | $ (4.6) | $ 1 | $ 9.4 |
Profit Sharing, Retirement Sa_8
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Amounts in Accumulated Other Comprehensive Loss, Not Yet Recognized (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service costs | $ 4.8 | $ 0.7 |
Unrecognized net actuarial loss | 178.1 | 146.1 |
Total | 182.9 | 146.8 |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service costs | 0.1 | 0.1 |
Unrecognized net actuarial loss | 47.3 | 41.4 |
Total | 47.4 | 41.5 |
International | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service costs | 4.7 | 0.6 |
Unrecognized net actuarial loss | 130.8 | 104.7 |
Total | $ 135.5 | $ 105.3 |
Profit Sharing, Retirement Sa_9
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial loss (gain) | $ 39.8 | $ (6.4) |
Amortization of actuarial loss | (3.3) | (6.5) |
Prior service cost occurring during the year | 4.2 | 0 |
Business divestiture | 0 | (42.6) |
Other adjustments | (0.2) | 1.3 |
Settlement/curtailment gain | (4.3) | (4.4) |
Total recognized in other comprehensive loss | 36.2 | (58.6) |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial loss (gain) | 8.6 | 2.3 |
Amortization of actuarial loss | (0.9) | (0.8) |
Prior service cost occurring during the year | 0 | 0 |
Business divestiture | 0 | 0 |
Other adjustments | (0.1) | 0 |
Settlement/curtailment gain | (1.6) | (2.1) |
Total recognized in other comprehensive loss | 6 | (0.6) |
International | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current year actuarial loss (gain) | 31.2 | (8.7) |
Amortization of actuarial loss | (2.4) | (5.7) |
Prior service cost occurring during the year | 4.2 | 0 |
Business divestiture | 0 | (42.6) |
Other adjustments | (0.1) | 1.3 |
Settlement/curtailment gain | (2.7) | (2.3) |
Total recognized in other comprehensive loss | $ 30.2 | $ (58) |
Profit Sharing, Retirement S_10
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Benefit Costs (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service costs | $ 0.2 |
Unrecognized net actuarial loss | 5.1 |
Total | 5.3 |
U.S. | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service costs | 0 |
Unrecognized net actuarial loss | 1.4 |
Total | 1.4 |
International | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service costs | 0.2 |
Unrecognized net actuarial loss | 3.7 |
Total | $ 3.9 |
Profit Sharing, Retirement S_11
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Information for Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 600.1 | $ 543.5 |
Fair value of plan assets | 435.3 | 384.9 |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 182.1 | 204.8 |
Fair value of plan assets | 119.9 | 148.7 |
International | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 418 | 338.7 |
Fair value of plan assets | $ 315.4 | $ 236.2 |
Profit Sharing, Retirement S_12
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) - Pension Plan | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. | ||
Benefit obligations | ||
Discount rate | 4.30% | 3.60% |
International | ||
Benefit obligations | ||
Discount rate | 2.60% | 2.50% |
Rate of compensation increase | 2.30% | 2.30% |
Profit Sharing, Retirement S_13
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) - Pension Plan | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | |||
Net periodic benefit cost | |||
Discount rate | 3.60% | 4.00% | 4.30% |
Expected long-term rate of return | 6.20% | 6.70% | 6.70% |
Rate of compensation increase | 3.00% | ||
International | |||
Net periodic benefit cost | |||
Discount rate | 2.50% | 2.40% | 2.80% |
Expected long-term rate of return | 4.90% | 5.00% | 4.30% |
Rate of compensation increase | 2.30% | 2.40% | 2.50% |
Profit Sharing, Retirement S_14
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 39.9 |
2,020 | 36.5 |
2,021 | 38.9 |
2,022 | 39.5 |
2,023 | 38.8 |
2024 to 2028 (combined) | 209 |
Total | 402.6 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 3 |
International | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 28.2 |
2,020 | 24.7 |
2,021 | 27.2 |
2,022 | 27.8 |
2,023 | 27 |
2024 to 2028 (combined) | 150.9 |
Total | 285.8 |
U.S. | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 11.7 |
2,020 | 11.8 |
2,021 | 11.7 |
2,022 | 11.7 |
2,023 | 11.8 |
2024 to 2028 (combined) | 58.1 |
Total | $ 116.8 |
Profit Sharing, Retirement S_15
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Fair Values of Pension Plan Assets, by Asset Category and Level of Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 668.7 | $ 776.2 | $ 771.8 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.5 | 5.6 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 246 | 360.8 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 165.4 | 86.5 | |
NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 253.8 | 323.3 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36.5 | 7.5 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.5 | 5.6 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.5 | 1.9 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28.5 | 0 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 283.4 | 385.9 | |
Fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 131.7 | 162.5 | |
Fixed income funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 151.7 | 223.4 | |
Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 147.1 | 257.6 | |
Equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89.7 | 177.9 | |
Equity funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 57.4 | 79.7 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 201.7 | 125.2 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20.1 | 18.5 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 165.4 | 86.5 | |
Other | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 16.2 | $ 20.2 |
Profit Sharing, Retirement S_16
Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans - Activity in Plan Asset Measured Using Level 3 Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 776.2 | $ 771.8 |
Foreign exchange (loss) gain | (33.8) | 44.6 |
Fair value of plan assets at end of period | 668.7 | 776.2 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 86.5 | |
Fair value of plan assets at end of period | 165.4 | 86.5 |
U.S. and International | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 86.5 | 100.7 |
(Losses) gains on assets still held at end of year | (15.5) | 2.3 |
Purchases, sales, issuance, and settlements | 103.6 | 1.3 |
Transfers in and/or out of Level 3 | 1 | (24.2) |
Foreign exchange (loss) gain | (10.2) | 6.4 |
Fair value of plan assets at end of period | $ 165.4 | $ 86.5 |
Other Post-Employment Benefit_3
Other Post-Employment Benefits and Other Employee Benefit Plans - Narrative (Detail) - Other Post-Employment Benefits and Other Employee Benefit Plans | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum age of employee for entitlement of other post retirement benefit plans | 55 years | |
Minimum number of years of service for entitlement of other post retirement benefit plans | 10 years | |
Accumulated post-retirement benefit obligations, weighted-average discount rate | 4.10% | 3.40% |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for the year | 6.50% | |
Health care cost trend rate downgraded | 5.00% | |
Canada Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for the year | 5.00% |
Other Post-Employment Benefit_4
Other Post-Employment Benefits and Other Employee Benefit Plans - Reconciliation of Benefit Obligations, Plan Assets and Funded Status for Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligations: | |||
Benefit obligation at beginning of period | $ 906.9 | $ 978.9 | |
Service cost | 4.3 | 7 | $ 10.6 |
Interest cost | 21.7 | 22.9 | 26.1 |
Actuarial (gain) loss | (32.1) | 27.8 | |
Benefits paid, net | (34.1) | (35.5) | |
Loss due to exchange rate movements | (35.1) | 57.6 | |
Benefit obligation at end of period | 815.6 | 906.9 | 978.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 776.2 | 771.8 | |
Employer contribution | 15.7 | 28.1 | |
Benefits paid, net | (34.1) | (35.5) | |
Fair value of plan assets at end of period | 668.7 | 776.2 | 771.8 |
Net amount recognized: | |||
Underfunded status | (146.9) | (130.7) | |
Accumulated benefit obligation at end of year | 803 | 893.7 | |
Net amount recognized in consolidated balance sheets consists of: | |||
Current liability | (2.3) | (2.4) | |
Non-current liability | (171.9) | (169.4) | |
Net amount recognized | (147.9) | (132.7) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net actuarial loss | 178.1 | 146.1 | |
Prior service credit | 4.8 | 0.7 | |
Total | 182.9 | 146.8 | |
Other Post-Employment Benefits and Other Employee Benefit Plans | |||
Change in benefit obligations: | |||
Benefit obligation at beginning of period | 51.3 | 54 | |
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 1.4 | 1.6 | 1.9 |
Actuarial (gain) loss | (1.7) | 1 | |
Benefits paid, net | (4.5) | (4.3) | |
Settlement/curtailment | 0 | (1.2) | |
Loss due to exchange rate movements | 0 | 0.1 | |
Plan amendments | (0.2) | 0 | |
Benefit obligation at end of period | 46.4 | 51.3 | 54 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Employer contribution | 4.5 | 4.3 | |
Benefits paid, net | (4.5) | (4.3) | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Net amount recognized: | |||
Underfunded status | (46.4) | (51.3) | |
Accumulated benefit obligation at end of year | 46.4 | 51.3 | |
Net amount recognized in consolidated balance sheets consists of: | |||
Current liability | (5.3) | (5.2) | |
Non-current liability | (41.1) | (46.1) | |
Net amount recognized | (46.4) | (51.3) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net actuarial loss | 0.4 | 2 | |
Prior service credit | (3) | (3.1) | |
Total | $ (2.6) | $ (1.1) |
Other Post-Employment Benefit_5
Other Post-Employment Benefits and Other Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of net periodic benefit cost: | |||
Service cost | $ 4.3 | $ 7 | $ 10.6 |
Interest cost | 21.7 | 22.9 | 26.1 |
Amortization of net loss | 3.3 | 6.5 | 7.5 |
Amortization of prior service credit | 0 | (0.1) | 0 |
Income of settlement/curtailment | 4.4 | 5.1 | 0.7 |
Total benefit (income) cost | (4.1) | 1 | 11.9 |
Other Post-Employment Benefits and Other Employee Benefit Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 1.4 | 1.6 | 1.9 |
Amortization of net loss | (0.2) | (0.2) | 0 |
Amortization of prior service credit | (0.3) | (1.2) | (1.6) |
Net periodic benefit cost | 1 | 0.3 | 0.5 |
Income of settlement/curtailment | 0 | (13.5) | 0 |
Total benefit (income) cost | $ 1 | $ (13.2) | $ 0.5 |
Other Post-Employment Benefit_6
Other Post-Employment Benefits and Other Employee Benefit Plans - Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service costs | $ (0.2) |
Unrecognized net actuarial loss | (5.1) |
Total | (5.3) |
Other Post-Employment Benefits and Other Employee Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service costs | (0.3) |
Unrecognized net actuarial loss | (0.2) |
Total | $ (0.5) |
Other Post-Employment Benefit_7
Other Post-Employment Benefits and Other Employee Benefit Plans - One Percentage Point Change on Assumed Healthcare Cost (Detail) - Other Post-Employment Benefits and Other Employee Benefit Plans $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total of service and interest cost components, 1% Increase | $ 0 |
Effect on post-retirement benefit obligation, 1% Increase | 0.3 |
Effect on total of service and interest cost components, 1% Decrease | 0 |
Effect on post-retirement benefit obligation, 1% Decrease | $ (0.3) |
Other Post-Employment Benefit_8
Other Post-Employment Benefits and Other Employee Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 39.9 |
2,020 | 36.5 |
2,021 | 38.9 |
2,022 | 39.5 |
2,023 | 38.8 |
2024 to 2028 (combined) | 209 |
Total | 402.6 |
Other Post-Employment Benefits and Other Employee Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 5.4 |
2,020 | 5.4 |
2,021 | 5 |
2,022 | 4.6 |
2,023 | 4.3 |
2024 to 2028 (combined) | 15.6 |
Total | $ 40.3 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||
Net tax provision | $ 307.5 | $ 330.5 | $ 95.6 | ||
Income taxes payments, net | $ 155 | 161.7 | 125.8 | ||
Increase in effective tax rate due to GILTI provision, percent | 1.00% | ||||
Tax Cuts And Jobs Act Of 2017, incomplete accounting, change In tax rate, deferred tax asset, provisional income tax expense | $ 41.1 | $ 1.6 | |||
Tax Cuts And Jobs Act Of 2017, incomplete accounting, Transition Tax, for accumulated foreign earnings, provisional income tax expense | $ 290 | ||||
Tax Cuts And Jobs Act Of 2017, Transition Tax | $ 222 | ||||
Increase in effective tax rate after Transition Tax, percent | 48.50% | ||||
Foreign net operating losses | $ 202.1 | ||||
State net operating loss carry forwards | 2.2 | ||||
State tax credits | 9.8 | ||||
Increase in valuation allowance | 29.2 | ||||
Unremitted foreign earnings | 4,700 | ||||
Increase in unrecognized tax benefit during the year | 142.1 | 51.7 | |||
Decrease in income tax provision if unrecognized tax benefits were recognized | 332.5 | ||||
Interest and penalties | 18.2 | 14.8 | 12 | ||
Tax penalties | 4.5 | 3.7 | |||
Change in interest and penalties in tax accruals for uncertainties | 4 | 5.6 | |||
Unrecognized tax benefits | 356.4 | $ 214.3 | $ 162.6 | $ 131.3 | |
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Reduction in unrecognized tax benefit in the next 12 months | $ 0 | ||||
Period subject to examination for income tax return | 3 years | ||||
Statute of limitation period for income tax return in foreign jurisdictions | 3 years | ||||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Reduction in unrecognized tax benefit in the next 12 months | $ 2.5 | ||||
Period subject to examination for income tax return | 5 years | ||||
Statute of limitation period for income tax return in foreign jurisdictions | 5 years | ||||
Federal | |||||
Income Tax Contingency [Line Items] | |||||
Tax credit carryforwards amount | $ 0.6 | ||||
State And Local Jurisdiction | |||||
Income Tax Contingency [Line Items] | |||||
State net operating loss carry forwards | 659.1 | ||||
Tax credit carryforwards amount | $ 12.4 | ||||
State And Local Jurisdiction | Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expirations, years | 1 year | ||||
State And Local Jurisdiction | Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expirations, years | 20 years | ||||
State And Local Jurisdiction | Over One | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expirations, years | 1 year | ||||
State And Local Jurisdiction | 20 | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expirations, years | 20 years | ||||
Foreign Country | |||||
Income Tax Contingency [Line Items] | |||||
Foreign net operating loss carryforwards | $ 915.6 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings Before Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 255.1 | $ 192.1 | $ 175.9 |
Foreign | 202.7 | 201.2 | 212 |
Earnings before income tax provision | $ 457.8 | $ 393.3 | $ 387.9 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense: | |||
Federal | $ 228.2 | $ 79.6 | $ 57.6 |
State and local | 9.8 | 14.3 | 1.2 |
Foreign | 59.8 | 106 | 67.3 |
Total current expense | 297.8 | 199.9 | 126.1 |
Deferred tax expense (benefit): | |||
Federal | 56.8 | 130.1 | (15.8) |
State and local | (21.2) | 5.3 | 3.6 |
Foreign | (25.9) | (4.8) | (18.3) |
Total deferred tax expense (benefit) | 9.7 | 130.6 | (30.5) |
Total income tax provision | $ 307.5 | $ 330.5 | $ 95.6 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Restructuring reserves | $ 8.4 | $ 2.7 |
Accruals not yet deductible for tax purposes | 9.1 | 10.7 |
Net operating loss carryforwards | 265.5 | 199.4 |
Foreign, federal and state credits | 10.4 | 69.2 |
Employee benefit items | 77 | 69.6 |
Capitalized expenses | 8.9 | 10.8 |
Derivatives and other | 38 | 23.7 |
Sub-total deferred tax assets | 417.3 | 386.1 |
Valuation allowance | (218.4) | (189.2) |
Total deferred tax assets | 198.9 | 196.9 |
Depreciation and amortization | (26.8) | (13.9) |
Unremitted foreign earnings | 0 | (9) |
Intangible assets | (21.7) | (26.3) |
Other | (0.4) | 0 |
Total deferred tax liabilities | (48.9) | (49.2) |
Net deferred tax assets | $ 150 | $ 147.7 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Corporate Tax Rate Reconciles to Our Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed expected tax | $ 96.1 | $ 137.7 | $ 135.9 |
State income taxes, net of federal tax benefit | 8.4 | 7.6 | 4.8 |
Foreign earnings taxed at different rates | 8.3 | (22.3) | (22.4) |
U.S. tax on foreign earnings | 13.5 | 72.3 | 10.7 |
Tax credits | (20.7) | (16.8) | (31.5) |
Unremitted foreign earnings | 0 | 0 | (9.4) |
Reorganization and divestitures | 0 | 75.9 | 0 |
Withholding tax | 21.7 | 7.4 | 10.1 |
Net change in valuation allowance | (39.8) | (2) | (31.7) |
Net change in unrecognized tax benefits | 95 | 33.4 | 16 |
Tax Cuts and Jobs Act | 117.6 | 41.1 | 0 |
Deferred tax adjustments | 0 | 14.1 | 31 |
Other | 7.4 | (17.9) | (17.9) |
Total income tax provision | $ 307.5 | $ 330.5 | $ 95.6 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Computed expected tax | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 1.80% | 1.90% | 1.20% |
Foreign earnings taxed at different rates | 1.80% | (5.70%) | (5.80%) |
U.S. tax on foreign earnings | 2.90% | 18.40% | 2.80% |
Tax credits | (4.50%) | (4.30%) | (8.10%) |
Unremitted foreign earnings | 0.00% | 0.00% | (2.40%) |
Reorganization and divestitures | 0.00% | 19.30% | 0.00% |
Withholding tax | 4.70% | 1.90% | 2.60% |
Net change in valuation allowance | (8.70%) | (0.50%) | (8.20%) |
Net change in unrecognized tax benefits | 20.80% | 8.50% | 4.10% |
Tax Cuts and Jobs Act | 25.70% | 10.50% | 0.00% |
Deferred tax adjustments | 0.00% | 3.60% | 8.00% |
Other | 1.70% | (4.60%) | (4.60%) |
Income tax expense and rate | 67.20% | 84.00% | 24.60% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits and Effect on Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance of unrecognized tax benefits | $ 214.3 | $ 162.6 | $ 131.3 |
Additions for tax positions of current year | 106 | 7.3 | 11.1 |
Additions for tax positions of prior years | 59.5 | 49.3 | 23.4 |
Reductions for tax positions of prior years | (7) | (4.3) | (1.4) |
Reductions for lapses of statutes of limitation | (16.4) | (0.6) | (1.8) |
Ending balance of unrecognized tax benefits | $ 356.4 | $ 214.3 | $ 162.6 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ / shares in Units, $ in Millions | Jun. 13, 2014USD ($)$ / sharesshares | Feb. 03, 2014USD ($)shares | Mar. 31, 2007shares | Feb. 28, 2002USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2002USD ($)shares | Sep. 19, 2008Trust |
Loss Contingencies [Line Items] | |||||||||
Original number of shares expected to be issued under settlement agreement, adjusted | shares | 18,000,000 | ||||||||
Cash payment for settlements from cash and cash equivalents | $ 555 | ||||||||
Cash payment for settlements from borrowings | 260 | ||||||||
Cash payment for settlements from receivables securitization | 115 | ||||||||
Common stock repurchase value | $ 3,336.5 | $ 2,700.6 | |||||||
Settlement agreement (as defined therein) and tax deduction | $ 1,490 | ||||||||
Original number of shares expect to be issued under settlement agreement | shares | 9,000,000 | ||||||||
Charge covering a cash payment that will be required to make under settlement agreement upon the effectiveness of an appropriate plan of reorganization | $ 513 | ||||||||
Percentage of annual interest that accrues on Settlement agreement charges from December 21, 2002 to the date of payment | 5.50% | ||||||||
Stock split ratio | 2 | ||||||||
Establishment of asbestos trust under Section 524(g) | Trust | 2 | ||||||||
Accrued charge for potential liabilities | $ 172 | ||||||||
Principal contractual obligations including agreements to purchase an estimated amount of goods, including raw materials, or services | 70.2 | ||||||||
Asset retirement obligation liabilities | 10.5 | 11 | |||||||
Assets held for sale | 1,036.2 | 998.4 | |||||||
Accretion expense | 0.3 | 0.3 | 0.3 | ||||||
Net rental expense | 32.3 | 12.1 | $ 27.5 | ||||||
Buildings | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assets held for sale | 3.6 | 3.7 | |||||||
Leasehold Improvements | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assets held for sale | $ 6.9 | $ 7.3 | |||||||
WRG Asbestos PI Trust and WRG Asbestos PD Trust | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cash payments under settlement agreement | $ 929.7 | ||||||||
WRG Asbestos PI Trust | |||||||||
Loss Contingencies [Line Items] | |||||||||
Original number of shares expected to be issued under settlement agreement, adjusted | shares | 18,000,000 | ||||||||
Common stock repurchase value | $ 130 | ||||||||
Number of common stock shares repurchased (in shares) | shares | 3,932,244 | ||||||||
Common stock repurchase (price per share) | $ / shares | $ 33.06 |
Commitments and Contingencies_2
Commitments and Contingencies - Estimated Future Cash Outlays Related to Principal Contractual Obligations (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 43.4 |
2,020 | 19.3 |
2,021 | 6.9 |
2,022 | 0.6 |
Total | $ 70.2 |
Commitments and Contingencies_3
Commitments and Contingencies - Estimated Future Minimum Annual Rental Commitments Under Non-Cancelable Real and Personal Property Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 28.5 |
2,020 | 20.1 |
2,021 | 14.7 |
2,022 | 10.1 |
2,023 | 6.9 |
Thereafter | 17 |
Total | $ 97.3 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Repurchase of Common Stock (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 02, 2018 | Nov. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2015 | Jul. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Treasury stock value | $ 571,700,000 | $ 1,302,100,000 | $ 217,000,000 | ||||||
Common stock in treasury, shares | 75,964,667 | 61,485,423 | 34,156,355 | 29,612,337 | |||||
July 2015 Repurchase Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 | ||||||||
Stock repurchase program, additional authorized amount | $ 1,000,000,000 | $ 1,500,000,000 | |||||||
Number of common stock shares repurchased (in shares) | 14,898,454 | ||||||||
Treasury stock value | $ 651,400,000 | ||||||||
Common stock repurchase (price per share) | $ 43.72 | ||||||||
Common Stock Repurchase Set Two | Share Trading Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Number of common stock shares repurchased (in shares) | 27,320,816 | ||||||||
Treasury stock value | $ 1,200,000,000 | ||||||||
Common stock repurchase (price per share) | $ 45.44 | ||||||||
Common Stock Repurchase Set One | Share Trading Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Number of common stock shares repurchased (in shares) | 13,678,818 | ||||||||
Treasury stock value | $ 571,400,000 | ||||||||
Common stock repurchase (price per share) | $ 41.77 | ||||||||
Accelerated Share Repurchase Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Stock repurchase program, authorized amount | $ 400,000,000 | $ 400,000,000 | |||||||
Treasury stock value | $ 320,000,000 | ||||||||
Common stock repurchase (price per share) | $ 48.14 | ||||||||
Common stock in treasury, shares | 8,308,692 | 7,089,056 |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) - Summary of Cash Dividends Paid (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 14, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 |
Equity [Abstract] | |||||
Total Cash Dividends Paid | $ 102.9 | $ 119.7 | $ 121.6 | $ 344.2 | |
Total Cash Dividends Paid Per Common Share (in usd per share) | $ 0.64 | $ 0.64 | $ 0.61 | ||
Subsequent Event [Line Items] | |||||
Dividends per share on common stock (in usd per share) | $ 0.64 | $ 0.64 | $ 0.61 | ||
Common stock, shares outstanding | 155,654,370 | 168,595,521 | 193,482,383 | 193,482,383 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends per share on common stock (in usd per share) | $ 0.16 | ||||
Estimated dividend payment | $ 24.9 | ||||
Common stock, shares outstanding | 156,000,000 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) - Summary of Changes in Common Stock and Common Stock in Treasury (Detail) - shares | Sep. 26, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Number of shares, beginning of year | 230,080,944 | 230,080,944 | 227,638,738 | 225,625,636 | |
Restricted stock shares forfeited (in shares) | (86,518) | (184,235) | (89,699) | ||
Shares issued for vested restricted stock units | 151,280 | 607,231 | 179,826 | ||
Other activity (in shares) | (25,233) | 0 | 0 | ||
Number of shares issued, end of year | 231,619,037 | 230,080,944 | 227,638,738 | ||
Number of shares held, beginning of year | 61,485,423 | 61,485,423 | 34,156,355 | 29,612,337 | |
Number of shares held, end of year | 75,964,667 | 61,485,423 | 34,156,355 | ||
Number of common stock outstanding, end of year | 155,654,370 | 168,595,521 | 193,482,383 | ||
Common Stock in Treasury | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Repurchase of common stock (in shares) | 14,826,924 | 27,320,816 | 4,680,313 | ||
Profit sharing contribution paid in stock (in shares) | (538,524) | (502,519) | (830,613) | ||
Restricted stock shares, forfeited | 0 | 0 | (1,813) | ||
Shares withheld for taxes | 190,844 | 510,771 | 696,131 | ||
Shares repurchased not reflected | 71,530 | ||||
Omnibus Incentive Plan and 2005 Contingent Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 569,960 | 480,283 | 481,834 | ||
Number of units granted (in shares) | 571,438 | 480,283 | 481,834 | ||
Shares granted and issued under the Omnibus Incentive Plan and Directors Stock Plan to Directors | 10,841 | 15,768 | 21,537 | ||
Shares withheld for taxes | 94,624 | 101,767 | 0 | ||
2014 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Number of units granted (in shares) | 1,478 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued as part of acquisition | 20,000 | 20,000 | 0 | 0 | |
Restricted Stock | Omnibus Incentive Plan and 2005 Contingent Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Restricted stock shares forfeited (in shares) | (91,542) | (184,235) | (87,886) | ||
Restricted Stock | 2014 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Restricted stock shares forfeited (in shares) | (5,024) | ||||
2012 President and COO Four-year Incentive Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 0 | 0 | 325,000 | ||
2014 Special PSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 658,783 | 749,653 | 0 | ||
Shares issued for vested restricted stock units | 658,783 | ||||
2015 Three-year PSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 129,139 | 0 | 0 | ||
2014 Three-year PSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 0 | 636,723 | 0 | ||
2013 Three-year PSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Shares issued for awards | 0 | 0 | 1,074,017 | ||
SLO Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Number of units granted (in shares) | 109,841 | 136,783 | 20,587 | ||
SLO Awards | Omnibus Incentive Plan and 2005 Contingent Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Restricted stock shares forfeited (in shares) | (817) | (3,639) | 0 |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) - Summary of Changes in Common Shares Available for Awards under Omnibus Incentive Plan and Predecessor Plans (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares forfeited (in shares) | (86,518) | (184,235) | (89,699) | |
Omnibus Incentive Plan and 2005 Contingent Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of shares available, beginning of year | 3,668,954 | 5,385,870 | 7,694,739 | |
Restricted stock shares issued for new awards | (571,438) | (480,283) | (481,834) | |
Shares withheld for taxes | 94,624 | 101,767 | 0 | |
Number of shares available, end of year | 4,489,347 | 3,668,954 | 5,385,870 | |
2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Newly Registered Shares under Omnibus Incentive Plan (in shares) | 2,199,114 | 0 | 0 | |
Restricted stock shares issued for new awards | (1,478) | |||
2012 President and COO Four-year Incentive Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | 0 | 0 | (325,000) | |
2014 Special PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | (658,783) | (749,653) | 0 | |
2015 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | (129,139) | 0 | 0 | |
2014 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | 0 | (636,723) | 0 | |
2013 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | 0 | 0 | (1,074,017) | |
2002 Directors Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Director shares granted and issued | (10,560) | (15,491) | (18,022) | |
Director units granted and deferred (in shares) | (16,505) | (17,008) | (17,447) | |
2014 Omnibus Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
The maximum number of shares of Common Stock authorized | 4,250,000 | |||
Restricted Stock | Omnibus Incentive Plan and 2005 Contingent Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares forfeited (in shares) | (91,542) | (184,235) | (87,886) | |
Restricted Stock | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares forfeited (in shares) | (5,024) | |||
Restricted Stock Units (RSUs) | Omnibus Incentive Plan and 2005 Contingent Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | (219,923) | (351,946) | (428,595) | |
Restricted stock shares forfeited (in shares) | (64,122) | (288,801) | (29,774) | |
PSU And SLO Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Contingently issuable shares | 1,000,000 | |||
Restricted Stock Units RSU SLO Awards | Omnibus Incentive Plan and 2005 Contingent Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | (23,478) | (44,254) | (81,614) | |
SLO Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares issued for new awards | (109,841) | (136,783) | (20,587) | |
SLO Awards | Omnibus Incentive Plan and 2005 Contingent Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock shares forfeited (in shares) | (817) | (3,639) | 0 |
Stockholders' Equity (Deficit_7
Stockholders' Equity (Deficit) - Summarizes the Company's Pre-tax Share-based Incentive Compensation Expense and Income Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | $ 29.9 | $ 48.5 | $ 62.9 |
Associated tax benefits recognized | 4.9 | 11.8 | 19.7 |
2018 Three-year PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 2.7 | 0 | 0 |
2017 Three-year PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 3.7 | 9.8 | 0 |
2017 COO and Chief Executive Officer-Designate 2017 New Hire Equity Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0.2 | 0.1 | 0 |
2016 Three-year PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | (3) | 2 | 6.3 |
2016 President & CEO Inducement Award | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0 | 0.5 | 0.5 |
2015 Three-year PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0 | (0.8) | 3.5 |
2014 Special PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0 | 3.2 | 8.8 |
Share-based compensation expense settled in cash | 1 | ||
2014 Three-year PSU Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0 | 0 | 4.9 |
2012 President & COO Four-year Incentive Compensation | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 0 | 0 | 0.2 |
SLO Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | 1.6 | 1.1 | 2.5 |
Other long-term share-based incentive compensation programs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based incentive compensation expense | $ 24.7 | $ 32.6 | $ 36.2 |
Stockholders' Equity (Deficit_8
Stockholders' Equity (Deficit) - Summary of Unvested Restricted Stock and Restricted Stock Unit (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | (151,280) | (607,231) | (179,826) |
Forfeited or expired (in shares) | (86,518) | (184,235) | (89,699) |
Restricted Stock Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested at beginng of period (in shares) | 1,045,416 | ||
Shares issued (in shares) | 571,438 | ||
Vested (in shares) | (296,754) | ||
Forfeited or expired (in shares) | (91,542) | ||
Non-vested at end of period (in shares) | 1,228,558 | 1,045,416 | |
Non-vested, Weighted- Average per Share Fair value on Grant Date, beginning of period (in usd per share) | $ 45.21 | ||
Fair value on grant date (in usd per share) | 44.24 | ||
Vested (in usd per share) | 45.34 | ||
Restricted stock forfeited or expired, Weighted- Average per Share Fair Value on Grant Date during the year | 45.46 | ||
Non-vested, Weighted- Average per Share Fair Value on Grant Date, end of period (in usd per share) | $ 44.98 | $ 45.21 | |
Aggregate Intrinsic Value | $ 13.1 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested at beginng of period (in shares) | 557,422 | ||
Shares issued (in shares) | 219,923 | ||
Vested (in shares) | (151,280) | ||
Forfeited or expired (in shares) | (64,122) | ||
Non-vested at end of period (in shares) | 561,943 | 557,422 | |
Non-vested, Weighted- Average per Share Fair value on Grant Date, beginning of period (in usd per share) | $ 45.34 | ||
Fair value on grant date (in usd per share) | 44.60 | ||
Vested (in usd per share) | 45.28 | ||
Restricted stock forfeited or expired, Weighted- Average per Share Fair Value on Grant Date during the year | 45.16 | ||
Non-vested, Weighted- Average per Share Fair Value on Grant Date, end of period (in usd per share) | $ 45.08 | $ 45.34 | |
Aggregate Intrinsic Value | $ 6.7 |
Stockholders' Equity (Deficit_9
Stockholders' Equity (Deficit) - Summary of Vested Restricted Stock (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock shares vested | $ 13.5 | $ 19.5 | $ 10 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock shares vested | $ 6.9 | $ 22.4 | $ 5.2 |
Stockholders' Equity (Defici_10
Stockholders' Equity (Deficit) - Summary of Unrecognized Compensation Cost for Non-vested Restricted Shares (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs of non-vested cash awards excluded | $ 0.9 |
Weighted average remaining contractual life (in years) | 1 year 2 months 12 days |
Non-current liabilities | $ 1.4 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Costs | $ 25.2 |
Weighted Average to be recognized (in years) | 1 year 4 months |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Costs | $ 10.9 |
Weighted Average to be recognized (in years) | 1 year 3 months |
Stockholders' Equity (Defici_11
Stockholders' Equity (Deficit) - PSU Awards (Detail) | May 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Three-year PSU Awards | Minimum | |||
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% | ||
Three-year PSU Awards | Maximum | |||
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% | ||
2016 Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Weighted average return on total shareholders | 50.00% | ||
Target level for the determination of performance goals and measures for adjusted EBITDA goal | 50.00% | ||
2017 Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Weighted average return on total shareholders | 34.00% | ||
Target level for the determination of performance goals and measures for adjusted EBITDA goal | 33.00% | ||
Compound annual growth rate of net trade sales | 33.00% | ||
2018 Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average return on total shareholders | 34.00% | ||
Target level for the determination of performance goals and measures for adjusted EBITDA goal | 50.00% | ||
Compound annual growth rate of net trade sales | 33.00% | ||
PSUs – Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years |
Stockholders' Equity (Defici_12
Stockholders' Equity (Deficit) - Summary of Number of PSUs Granted Based on Adjusted EBITDA and Grant Date Fair Value (Detail) - $ / shares | May 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
PSUs – Adjusted EBITDA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
Number of units granted (in shares) | 57,378 | 99,522 | 165,391 | |
Fair value on grant date (in usd per share) | $ 41.72 | $ 45.21 | $ 43.09 | |
2017 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
2016 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years |
Stockholders' Equity (Defici_13
Stockholders' Equity (Deficit) - Summary of Number of PSUs granted Based on TSR and Assumptions Used to Calculate the Grant Date Fair Value Based on Total Shareholder Return (Detail) - $ / shares | May 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target level for the determination of performance goals and measures | 100.00% | |||
PSUs – Total Shareholder Return | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target level for the determination of performance goals and measures | 100.00% | |||
Performance period | 3 years | |||
Number of units granted (in shares) | 56,829 | 100,958 | 124,755 | |
Fair value on grant date (in usd per share) | $ 43.40 | $ 44.24 | $ 54.94 | |
Expected price volatility, percent | 22.00% | 25.31% | 26.69% | |
Risk-free interest rate | 2.00% | 1.56% | 0.98% | |
2017 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
2016 Three-year PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years |
Stockholders' Equity (Defici_14
Stockholders' Equity (Deficit) - Number of PSUs Granted Based On Net Trade Sales Growth and Grant Date Fair Value (Details) - $ / shares | May 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
2017 Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2016 Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | 3 years | |
Number of units granted (in shares) | 171,585 | ||
Fair value on grant date (in usd per share) | $ 42.29 | ||
Net Trade Sales Growth | PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units granted (in shares) | 57,378 | 99,522 | |
Fair value on grant date (in usd per share) | $ 41.72 | $ 45.21 |
Stockholders' Equity (Defici_15
Stockholders' Equity (Deficit) - Summary of Estimated Earned Payout (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
2018 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target level for performance goals measure, three year compound annual growth rate of net trade sales | 100.00% |
Estimated Payout on Adjusted EBITDA | 100.00% |
Estimated Payout on TSR | 100.00% |
Estimated Payout Combined | 100.00% |
2017 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target level for performance goals measure, three year compound annual growth rate of net trade sales | 200.00% |
Estimated Payout on Adjusted EBITDA | 77.00% |
Estimated Payout on TSR | 100.00% |
Estimated Payout Combined | 125.00% |
2016 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated Payout on Adjusted EBITDA | 0.00% |
Estimated Payout on TSR | 0.00% |
Estimated Payout Combined | 0.00% |
Stockholders' Equity (Defici_16
Stockholders' Equity (Deficit) - Summary of Activity for Outstanding Three-year PSU Awards (Detail) - PSU Awards - USD ($) $ in Millions | May 18, 2017 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 662,931 | |
Granted (in shares) | 171,585 | |
Converted (in shares) | (176,169) | |
Forfeited or expired (in shares) | (14,491) | |
Outstanding at end of period (in shares) | 643,856 | |
Aggregate Intrinsic Value, converted | $ 7.5 | |
Fully vested at end of period (in shares) | 426,649 | |
Aggregate Intrinsic Value, Fully vested at end of period | $ 14.9 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Performance units granted percentage | 200.00% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Performance units granted percentage | 0.00% |
Stockholders' Equity (Defici_17
Stockholders' Equity (Deficit) - Summary of Activity for Non-vested Three-year PSU awards (Detail) - $ / shares | May 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Vested (in shares) | (151,280) | (607,231) | (179,826) | |
Forfeited or expired (in shares) | (86,518) | (184,235) | (89,699) | |
PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Non-vested at beginng of period (in shares) | 118,956 | |||
Shares issued (in shares) | 171,585 | |||
Vested (in shares) | (61,091) | |||
Forfeited or expired (in shares) | (12,243) | |||
Non-vested at end of period (in shares) | 217,207 | 118,956 | ||
Weighted-Average per Share Fair Value on Grant Date | ||||
Non-vested, Weighted- Average per Share Fair value on Grant Date, beginning of period (in usd per share) | $ 48.40 | |||
Granted (in usd per share) | 42.29 | |||
Vested (in usd per share) | 47.50 | |||
Forfeited or expired (in usd per share) | 45.67 | |||
Non-vested, Weighted- Average per Share Fair Value on Grant Date, end of period (in usd per share) | $ 42.94 | $ 48.40 |
Stockholders' Equity (Defici_18
Stockholders' Equity (Deficit) - Schedule of Fair Value of Vested for Three-year PSU Awards (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Three-year PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of three-year PSU awards vested | $ 14.9 | $ 24 | $ 14.3 |
Stockholders' Equity (Defici_19
Stockholders' Equity (Deficit) - Summary of Unrecognized Compensation Cost for Three-year PSU Awards and Weighted Average Period (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
2018 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Costs | $ 4.4 |
Weighted Average to be recognized (in years) | 2 years |
2017 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Costs | $ 0.9 |
Weighted Average to be recognized (in years) | 1 year |
2016 Three-year PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Costs | $ 0 |
Weighted Average to be recognized (in years) | 0 years |
Stockholders' Equity (Defici_20
Stockholders' Equity (Deficit) - New Hire Equity Awards, Inducement Awards, Incentive Compensation and Other Awards (Details) $ / shares in Units, $ in Millions | Sep. 26, 2018shares | Sep. 18, 2017$ / sharesshares | Jan. 15, 2016award$ / sharesshares | Mar. 31, 2018shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target level for the determination of performance goals and measures | 100.00% | ||||||
Additional awards of restricted stock | award | 2 | ||||||
Performance achievement, percentage | 200.00% | ||||||
Vested (in share) | 151,280 | 607,231 | 179,826 | ||||
Expense related to the SLO program | $ | $ 29.2 | $ 44.9 | $ 59.9 | ||||
Share based compensation expense recognized period | 15 months | ||||||
Forfeited (in shares) | 86,518 | 184,235 | 89,699 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued as part of acquisition | 20,000 | 20,000 | 0 | 0 | |||
2017 Performance-vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value on grant date (in usd per share) | $ / shares | $ 10.63 | ||||||
Time Vesting Inducement Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 75,000 | ||||||
Fair value on grant date (in usd per share) | $ / shares | $ 39.95 | ||||||
2014 Special PSU Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
PSU awards performance period | 3 years | ||||||
Percentage of reduction in amount earned based on free cash flow performance | 25.00% | ||||||
PSUs earned paid out period | 2 years | ||||||
Vested (in share) | 658,783 | ||||||
SLO Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 109,841 | 136,783 | 20,587 | ||||
Increments of cash bonus, percent | 25.00% | ||||||
Restricted stock shares and restricted stock units included in SLO Award target | 47,736 | ||||||
Expense related to the SLO program | $ | $ 1.6 | $ 1.1 | $ 2.5 | ||||
Performance Share Unit Awards For Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 30,506 | ||||||
Expense related to the SLO program | $ | $ 0.3 | ||||||
Forfeited (in shares) | 5,177 | ||||||
2017 Annual Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 23,478 | ||||||
Chief Operating Officer and CEO-Designate | Time Vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 30,000 | ||||||
Fair value on grant date (in usd per share) | $ / shares | $ 42.89 | ||||||
Chief Operating Officer and CEO-Designate | 2017 Performance-vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of units granted (in shares) | 70,000 | ||||||
Target level for the determination of performance goals and measures | 100.00% | ||||||
Chief Operating Officer and CEO-Designate | Tranche One | 2017 Performance-vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cumulative stockholder return rate | 33.00% | ||||||
Chief Operating Officer and CEO-Designate | Minimum | Tranche One | 2017 Performance-vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price (in usd per share) | $ / shares | $ 60 | ||||||
Chief Operating Officer and CEO-Designate | Minimum | Tranche Two | 2017 Performance-vesting New Hire Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price (in usd per share) | $ / shares | $ 75 |
Stockholders' Equity (Defici_21
Stockholders' Equity (Deficit) - Summary of Assumptions Used to Calculate Grant Date Fair Value New Hire Award (Details) - 2017 Performance-vesting New Hire Award | Sep. 18, 2017$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value on grant date (in usd per share) | $ 10.63 |
Expected price volatility, percent | 25.00% |
Risk-free interest rate | 1.60% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Details of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (152.3) | |||
Other comprehensive income (loss) before reclassifications | (64) | $ 96.4 | ||
Less: amounts reclassified from accumulated other comprehensive loss | 1.9 | 7.8 | ||
Other comprehensive (loss) income | (62.1) | 104.2 | $ (129.1) | |
Balance at end of period | 348.6 | (152.3) | ||
Intra-entity foreign currency translation adjustment | (744.8) | (694.4) | ||
Unrecognized Pension Items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 103.4 | 276.7 | ||
Other comprehensive income (loss) before reclassifications | (31.5) | 167.1 | ||
Less: amounts reclassified from accumulated other comprehensive loss | 2.1 | 6.2 | ||
Other comprehensive (loss) income | (29.4) | 173.3 | ||
Balance at end of period | 132.8 | 103.4 | 276.7 | |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 694.4 | 701.9 | ||
Other comprehensive income (loss) before reclassifications | (50.4) | 7.5 | ||
Less: amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Other comprehensive (loss) income | (50.4) | 7.5 | ||
Balance at end of period | 744.8 | 694.4 | 701.9 | |
Cumulative Translation Adjustment | Intra-entity transactions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Intra-entity foreign currency translation adjustment | 65.8 | (78.2) | (8.3) | |
Unrecognized Gains (Losses) on Derivative Instruments | Net Investment Hedge | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 46.8 | (21) | ||
Other comprehensive income (loss) before reclassifications | 15 | (67.8) | ||
Less: amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive (loss) income | 15 | (67.8) | ||
Balance at end of period | 31.8 | 46.8 | (21) | |
Unrecognized Gains (Losses) on Derivative Instruments | Cash Flow Hedge | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0.3 | (8.5) | ||
Other comprehensive income (loss) before reclassifications | 2.9 | (10.4) | ||
Less: amounts reclassified from accumulated other comprehensive loss | (0.2) | 1.6 | ||
Other comprehensive (loss) income | 2.7 | (8.8) | ||
Balance at end of period | (2.4) | 0.3 | (8.5) | |
Accumulated Other Comprehensive Loss, Net of Taxes | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 844.9 | 949.1 | ||
Balance at end of period | 920.4 | $ 844.9 | $ 949.1 | |
ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at end of period | (13.4) | |||
Impact of Accounting Standard Update | $ (13.4) | $ (13.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Detail of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total reclassifications for the period | $ (1.9) | $ (7.8) | ||||||||||
Charges related to Venezuelan subsidiaries | 0 | 0 | $ (46) | |||||||||
Other income (expense), net | [1],[2] | (18.1) | 6.2 | (0.1) | ||||||||
Net earnings from discontinued operations, net of tax | $ 0.1 | $ 25.7 | $ 75.1 | $ 10.5 | 0 | 111.4 | 194.1 | |||||
Interest expenses | 177.9 | 184.2 | 191.9 | |||||||||
Earnings before income tax provision | 457.8 | 393.3 | 387.9 | |||||||||
Tax (expense) benefit | (307.5) | (330.5) | (95.6) | |||||||||
Net earnings from continuing operations | $ 199.4 | $ 75.6 | $ 83.3 | $ (208) | $ 25 | $ 62.5 | $ 29 | $ (53.7) | 150.3 | 62.8 | 292.3 | |
Defined benefit pension plans and other post-employment benefits | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total reclassifications for the period | (2.1) | (6.2) | ||||||||||
Reclassifications from cumulative translation adjustment | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total reclassifications for the period | 0 | 0 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total reclassifications for the period | (1.9) | (7.8) | 21.8 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Prior service costs | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total pre-tax amount | 0.3 | 1.3 | 1.6 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total pre-tax amount | (3.1) | (10) | (11.2) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans and other post-employment benefits | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total pre-tax amount | (2.8) | (8.7) | (9.6) | |||||||||
Tax benefit | 0.7 | 2.5 | 2.3 | |||||||||
Total reclassifications for the period | (2.1) | (6.2) | (7.3) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans and other post-employment benefits | Diversey Care | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Total pre-tax amount | 3.7 | 3.8 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications from cumulative translation adjustment | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Charges related to Venezuelan subsidiaries | 0 | 0 | 46 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net gains losses) on cash flow hedging derivatives | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Earnings before income tax provision | 0.3 | (2.4) | (25.2) | |||||||||
Tax (expense) benefit | (0.1) | 0.8 | 8.3 | |||||||||
Net earnings from continuing operations | 0.2 | (1.6) | (16.9) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net gains losses) on cash flow hedging derivatives | Foreign currency forward contracts | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Other income (expense), net | 0.2 | 0.9 | 0.6 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net gains losses) on cash flow hedging derivatives | Interest rate and currency swaps | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Net earnings from discontinued operations, net of tax | 0 | (3.4) | (25.9) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net gains losses) on cash flow hedging derivatives | Treasury locks | ||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||||||
Interest expenses | $ 0.1 | $ 0.1 | $ 0.1 | |||||||||
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | |||||||||||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. |
Other (Expense) Income, net - (
Other (Expense) Income, net - (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Income and Expenses [Abstract] | ||||
Net foreign exchange transaction (loss) gain | $ (16.7) | $ (5.9) | $ 8.3 | |
Bank fee expense | (4.4) | (5.8) | (5.4) | |
Pension income (expense) other than service costs | 3.9 | 16.7 | (3.8) | |
Other, net | (0.9) | 1.2 | 0.8 | |
Other (expense) income, net | [1],[2] | $ (18.1) | $ 6.2 | $ (0.1) |
[1] | As part of our review of costs included in the corporate segment, amounts related to division operations were identified and reclassified out of other expense, net to cost of sales. The impact for the years ended December 31, 2017 and 2016 was $8.1 million and $6.4 million, respectively. | |||
[2] | Due to the adoption of ASU 2017-07, certain amounts related to defined benefit and other post-employment benefit plans were reclassified from cost of sales to other expense, net. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. |
Net Earnings per Common Share -
Net Earnings per Common Share - Calculation of Basic and Diluted Net Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator | |||||||||||
Net earnings | $ 200.3 | $ 79 | $ 114.4 | $ (200.6) | $ (33.5) | $ 787.5 | $ 104.1 | $ (43.2) | $ 193.1 | $ 814.9 | $ 486.4 |
Distributed and allocated undistributed net earnings to unvested restricted stockholders | (0.9) | (4.9) | (3.4) | ||||||||
Distributed and allocated undistributed net earnings | 192.2 | 810 | 483 | ||||||||
Distributed net earnings - dividends paid to common stockholders | (101.7) | (118.7) | (118.7) | ||||||||
Allocation of undistributed net earnings to common stockholders | $ 90.5 | $ 691.3 | $ 364.3 | ||||||||
Denominator | |||||||||||
Weighted average number of common shares outstanding - basic | 159.4 | 186.9 | 194.3 | ||||||||
Basic net earnings per common share | |||||||||||
Distributed net earnings (in dollars per share) | $ 0.64 | $ 0.64 | $ 0.61 | ||||||||
Allocated undistributed net earnings to common stockholders (in dollars per share) | 0.57 | 3.69 | 1.88 | ||||||||
Net earnings per common share - basic (in dollars per share) | $ 1.29 | $ 0.50 | $ 0.71 | $ (1.21) | $ (0.19) | $ 4.19 | $ 0.53 | $ (0.22) | $ 1.21 | $ 4.33 | $ 2.49 |
Numerator | |||||||||||
Distributed and allocated undistributed net earnings | $ 192.2 | $ 810 | $ 483 | ||||||||
Add: Allocated undistributed net earnings to unvested restricted stockholders | 0.5 | 4.3 | 2.6 | ||||||||
Less: Undistributed net earnings reallocated to unvested restricted stockholders | (0.5) | (4.3) | (2.6) | ||||||||
Net earnings available to common stockholders - diluted | $ 192.2 | $ 810 | $ 483 | ||||||||
Denominator | |||||||||||
Weighted average number of common shares outstanding - basic | 159.4 | 186.9 | 194.3 | ||||||||
Effect of contingently issuable shares | 0.1 | 0.7 | 1.2 | ||||||||
Effect of unvested restricted stock units (in shares) | 0.3 | 0.7 | 0.7 | ||||||||
Weighted average number of common shares outstanding - diluted under two-class | 159.8 | 188.3 | 196.2 | ||||||||
Effect of unvested restricted stock - participating security (in shares) | 0.4 | 0.6 | 1 | ||||||||
Weighted average number of common shares outstanding - diluted under treasury stock | 160.2 | 188.9 | 197.2 | ||||||||
Net earnings per common share - diluted (in dollars per share) | $ 1.28 | $ 0.50 | $ 0.71 | $ (1.21) | $ (0.19) | $ 4.15 | $ 0.52 | $ (0.22) | $ 1.20 | $ 4.29 | $ 2.46 |
Net Earnings per Common Share_2
Net Earnings per Common Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares included in calculation of diluted weighted average shares outstanding (in shares) | 160.2 | 188.9 | 197.2 |
Performance Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares included in calculation of diluted weighted average shares outstanding (in shares) | 1 | 1 | 1 |
Summarized Quarterly Financia_3
Summarized Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 06, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 1,260.3 | $ 1,186.2 | $ 1,155.2 | $ 1,131 | $ 1,227.8 | $ 1,131.3 | $ 1,070.3 | $ 1,032.2 | $ 4,732.7 | $ 4,461.6 | $ 4,211.3 | |
Gross profit | 399.1 | 365.5 | 363.5 | 374 | 372.5 | 360.7 | 343.5 | 335.4 | 1,502.1 | 1,412.1 | 1,401 | |
Net (loss) earnings from continuing operations | 199.4 | 75.6 | 83.3 | (208) | 25 | 62.5 | 29 | (53.7) | 150.3 | 62.8 | 292.3 | |
Gain (loss) on sale of discontinued operations, net of tax | $ 640.7 | 0.9 | 3.4 | 31.1 | 7.4 | (58.6) | 699.3 | 0 | 0 | 42.8 | 640.7 | 0 |
Net earnings from discontinued operations, net of tax | 0.1 | 25.7 | 75.1 | 10.5 | 0 | 111.4 | 194.1 | |||||
Net earnings | $ 200.3 | $ 79 | $ 114.4 | $ (200.6) | $ (33.5) | $ 787.5 | $ 104.1 | $ (43.2) | $ 193.1 | $ 814.9 | $ 486.4 | |
Continuing operations (in dollars per share) | $ 1.28 | $ 0.48 | $ 0.52 | $ (1.25) | $ 0.14 | $ 0.33 | $ 0.14 | $ (0.27) | $ 0.94 | $ 0.34 | $ 1.50 | |
Discontinued operations (in dollars per share) | 0.01 | 0.02 | 0.19 | 0.04 | (0.33) | 3.86 | 0.39 | 0.05 | 0.27 | 3.99 | 0.99 | |
Net earnings per common share - basic (in dollars per share) | 1.29 | 0.50 | 0.71 | (1.21) | (0.19) | 4.19 | 0.53 | (0.22) | 1.21 | 4.33 | 2.49 | |
Continuing operations (in dollars per share) | 1.28 | 0.48 | 0.52 | (1.25) | 0.14 | 0.33 | 0.14 | (0.27) | 0.94 | 0.33 | 1.48 | |
Discontinued operations (in dollars per share) | 0 | 0.02 | 0.19 | 0.04 | (0.33) | 3.82 | 0.38 | 0.05 | 0.26 | 3.96 | 0.98 | |
Net earnings per common share - diluted (in dollars per share) | $ 1.28 | $ 0.50 | $ 0.71 | $ (1.21) | $ (0.19) | $ 4.15 | $ 0.52 | $ (0.22) | $ 1.20 | $ 4.29 | $ 2.46 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves - Components of Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 6.5 | $ 8.4 | $ 10.5 |
Charged to Costs and Expenses | 2.3 | 0.3 | (0.1) |
Deductions | (1) | (2.5) | (2.1) |
Foreign Currency Translation and Other | 1.3 | 0.3 | 0.1 |
Balance at End of Year | 9.1 | 6.5 | 8.4 |
Inventory obsolescence reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 15.5 | 13.4 | 12.2 |
Charged to Costs and Expenses | 4.8 | 3.5 | 3.8 |
Deductions | (1.4) | (2.7) | (2.1) |
Foreign Currency Translation and Other | (0.8) | 1.3 | (0.5) |
Balance at End of Year | 18.1 | 15.5 | 13.4 |
Valuation allowance on deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 189.2 | 167.7 | 208.9 |
Charged to Costs and Expenses | 32.8 | 3.4 | (37.4) |
Deductions | 0 | 0 | |
Foreign Currency Translation and Other | (3.6) | 18.1 | (3.8) |
Balance at End of Year | $ 218.4 | $ 189.2 | $ 167.7 |
Uncategorized Items - see-20181
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,400,000) | [1] |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 56,500,000 | [2],[3] |
AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (13,400,000) | [1] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 10,000,000 | [1] |
[1] | Due to the adoption of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as of January 1, 2018, the Company recorded decreases to retained earnings of $1.0 million and $2.4 million, respectively. In addition, due to the adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income as of October 1, 2018, the Company recorded an increase to retained earnings of $13.4 million from accumulated other comprehensive loss. See Note 2, "Recently Adopted and Issued Accounting Standards," in the Notes to Consolidated Financial Statements for more information. | ||
[2] | Due to the adoption of ASU 2016-18, the Company now is required to include restricted cash as part of the change in the total cash balance. As a result, amounts which were previously classified as cash flows from financing activities related to Sealed Air continuing operations and amounts which were previously classified as cash flows from investing activities related to restricted cash sold with the sale of Diversey have been reclassified as they are recognized in the total change in cash. Refer to Note 2, "Recently Adopted and Issued Accounting Standards," of the Notes to Consolidated Financial Statements for more information. | ||
[3] | Restricted cash and cash equivalents included compensating balance deposits related to certain short-term borrowings and were included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of December 31, 2016. |