Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 17, 2013 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ALV | |
Entity Registrant Name | AUTOLIV INC | |
Entity Central Index Key | 1034670 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 95,892,944 |
Consolidated_Statements_of_Net
Consolidated Statements of Net Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $2,119 | $1,947.10 | $6,451.50 | $6,214.80 |
Cost of sales | -1,714.10 | -1,559.50 | -5,201.80 | -4,964 |
Gross profit | 404.9 | 387.6 | 1,249.70 | 1,250.80 |
Selling, general & administrative expenses | -93.8 | -88.8 | -286.7 | -276.3 |
Research, development & engineering expenses, net | -120.2 | -96.8 | -379.7 | -350 |
Amortization of intangibles | -5.1 | -4.8 | -15.3 | -14.5 |
Other income (expense), net | -3.5 | -9.8 | -9.3 | -78.9 |
Operating income | 182.3 | 187.4 | 558.7 | 531.1 |
Equity in earnings of affiliates, net of tax | 1.8 | 1.8 | 5.4 | 5.3 |
Interest income | 0.9 | 0.9 | 2.5 | 2.4 |
Interest expense | -8.1 | -10.9 | -24.3 | -32.6 |
Other financial items, net | -0.3 | -4.1 | -2.9 | -7.6 |
Income before income taxes | 176.6 | 175.1 | 539.4 | 498.6 |
Income tax expense | -51.7 | -57.1 | -150 | -153 |
Net income | 124.9 | 118 | 389.4 | 345.6 |
Less: net income attributable to non-controlling interests | 1 | 0.5 | 3.3 | 1.2 |
Net income attributable to controlling interest | $123.90 | $117.50 | $386.10 | $344.40 |
Net earnings per share - basic | $1.29 | $1.23 | $4.03 | $3.71 |
Net earnings per share - diluted | $1.29 | $1.23 | $4.02 | $3.63 |
Weighted average number of shares outstanding, net of treasury shares (in millions) | 95.8 | 95.4 | 95.7 | 92.8 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | 96.2 | 95.7 | 96 | 94.9 |
Number of shares outstanding, excluding dilution and net of treasury shares (in millions) | 95.9 | 95.4 | 95.9 | 95.4 |
Cash dividend per share - declared | $0.50 | $0.50 | $1.50 | $1.44 |
Cash dividend per share - paid | $0.50 | $0.47 | $1.50 | $1.39 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $124.90 | $118 | $389.40 | $345.60 |
Foreign currency translation adjustments | 39 | 45.5 | -15.6 | 24.3 |
Defined benefit pension plan | 2.8 | 2 | 7.9 | 5.6 |
Other comprehensive (loss), before tax | 41.8 | 47.5 | -7.7 | 29.9 |
Income tax expense related to defined benefit pension plan | -1 | -0.7 | -2.8 | -2 |
Other comprehensive (loss), net of tax | 40.8 | 46.8 | -10.5 | 27.9 |
Comprehensive income | 165.7 | 164.8 | 378.9 | 373.5 |
Less: comprehensive income attributable to non-controlling interest | 1 | 0.8 | 3.6 | 1.3 |
Comprehensive income attributable to controlling interest | $164.70 | $164 | $375.30 | $372.20 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash & cash equivalents | $1,134.70 | $977.70 |
Receivables, net | 1,710.80 | 1,509.30 |
Inventories, net | 642.4 | 611 |
Other current assets | 221 | 191.2 |
Total current assets | 3,708.90 | 3,289.20 |
Property, plant & equipment, net | 1,291.80 | 1,232.80 |
Investments and other non-current assets | 328.3 | 341.3 |
Goodwill | 1,608.50 | 1,610.80 |
Intangible assets, net | 82.7 | 96.2 |
Total assets | 7,020.20 | 6,570.30 |
Liabilities and equity | ||
Short-term debt | 216.4 | 69.8 |
Accounts payable | 1,114.10 | 1,055.90 |
Accrued expenses | 621.9 | 497.1 |
Other current liabilities | 215.6 | 227 |
Total current liabilities | 2,168 | 1,849.80 |
Long-term debt | 423.5 | 562.9 |
Pension liability | 263.9 | 255.4 |
Other non-current liabilities | 132.5 | 126.1 |
Total non-current liabilities | 819.9 | 944.4 |
Common stock | 102.8 | 102.8 |
Additional paid-in capital | 1,329.30 | 1,329.30 |
Retained earnings | 2,914.90 | 2,672.50 |
Accumulated other comprehensive income | -51.3 | -40.5 |
Treasury stock | -284.1 | -305.5 |
Total parent shareholders' equity | 4,011.60 | 3,758.60 |
Non-controlling interests | 20.7 | 17.5 |
Total equity | 4,032.30 | 3,776.10 |
Total liabilities and equity | $7,020.20 | $6,570.30 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ||
Net income | $389.40 | $345.60 |
Depreciation and amortization | 210.6 | 204 |
Other, net | 38.4 | 13.4 |
Changes in operating assets and liabilities | -99.7 | -115.7 |
Net cash provided by operating activities | 538.7 | 447.3 |
Investing activities | ||
Expenditures for property, plant and equipment | -271.2 | -264.2 |
Proceeds from sale of property, plant and equipment | 3.8 | 2.9 |
Acquisitions and divestitures of businesses and other, net | -1 | 3.5 |
Net cash used in investing activities | -268.4 | -257.8 |
Financing activities | ||
Net increase (decrease) in short-term debt | 147.8 | -26.6 |
Issuance of long-term debt | 32.5 | |
Repayments and other changes in long-term debt | -135 | -8.9 |
Dividends paid to non-controlling interest | -0.4 | -0.8 |
Dividends paid | -143.5 | -129.9 |
Common stock issue, net | 106.3 | |
Common stock options exercised | 16 | 12.1 |
Other, net | 0.9 | -1 |
Net cash used in financing activities | -114.2 | -16.3 |
Effect of exchange rate changes on cash and cash equivalents | 0.9 | -4.2 |
Increase(decrease) in cash and cash equivalents | 157 | 169 |
Cash and cash equivalents at beginning of period | 977.7 | 739.2 |
Cash and cash equivalents at end of period | $1,134.70 | $908.20 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | 1 Basis of Presentation |
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited financial statements and all adjustments considered necessary for a fair presentation have been included in the financial statements. All such adjustments are of a normal recurring nature. The result for the interim period is not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2013. Certain prior-year amounts have been reclassified to conform to current year presentation. | |
The condensed consolidated balance sheet at December 31, 2012 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. | |
Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 22, 2013. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements | 2 New Accounting Pronouncements |
The following accounting guidance has been issued and is effective for the Company in or after fiscal year 2013: | |
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”, which requires disclosure of financial instruments and derivatives that are either offset on the balance sheet in accordance with Accounting Standards Codification (ASC) 210-20-45 or ASC 815-10-45, or subject to a master netting arrangement, irrespective of whether they are offset on the balance sheet. ASU No. 2011-11 is effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. Entities should provide the disclosures required by this ASU retrospectively for all comparative periods presented. Subsequent to the issuance of ASU 2011-11, the FASB issued in January 2013 ASU 2013-01 and limited the scope of the new balance sheet offsetting disclosure requirements to certain derivatives, repurchase agreements and securities lending arrangements. The adoption of ASU 2011-11 and ASU 2013-01 had an impact on the Company’s disclosures about its financial instruments in the consolidated financial statements. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Measurement | 3 Fair Value Measurement | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||||||||||||||||
The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. The derivatives outstanding at September 30, 2013 are foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond six months. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. | |||||||||||||||||||||||||
When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statement of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income, (OCI), and reclassified into the Consolidated Statement of Net Income when the hedge transaction affects net earnings. There were no reclassifications from OCI to the Consolidated Statement of Net Income during the three and nine months ended September 30, 2013 and September 30, 2012 and, likewise, no reclassifications are expected for the next twelve months. Any ineffectiveness has been immaterial. During the first quarter of 2013 the Company closed a $60 million interest rate swap and the amount received was included in the debt balance and will be amortized over the remaining life of the underlying debt. No fair value adjustments were made as a consequence of the close-out. | |||||||||||||||||||||||||
The Company records derivatives at fair value. Any gains and losses on derivatives recorded at fair value are reflected in the Consolidated Statement of Net Income with the exception of cash flow hedges where an immaterial portion of the fair value is reflected in other comprehensive income. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Derivatives with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. | |||||||||||||||||||||||||
Under existing GAAP, there is a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: | |||||||||||||||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |||||||||||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. | |||||||||||||||||||||||||
Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |||||||||||||||||||||||||
The following tables summarize the valuation of the Company’s derivatives by the above noted pricing observability levels: | |||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Using | |||||||||||||||||||||||||
Description | Total carrying | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
amount in | |||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Derivatives a) | $ | 0.4 | — | $ | 0.4 | — | |||||||||||||||||||
Total Assets | $ | 0.4 | — | $ | 0.4 | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | $ | 0.2 | — | $ | 0.2 | — | |||||||||||||||||||
Total Liabilities | $ | 0.2 | — | $ | 0.2 | — | |||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Using | |||||||||||||||||||||||||
Description | Total carrying | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
amount in | |||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Derivatives | $ | 16.5 | — | $ | 16.5 | — | |||||||||||||||||||
Total Assets | $ | 16.5 | — | $ | 16.5 | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | $ | 0.7 | — | $ | 0.7 | — | |||||||||||||||||||
Total Liabilities | $ | 0.7 | — | $ | 0.7 | — | |||||||||||||||||||
The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. Although the Company is party to close-out netting agreements with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at September 30, 2013 and December 31, 2012, have been presented on a gross basis. The net amounts subject to netting agreements that the Company choose not to offset are presented in footnotes. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. | |||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Balance sheet | |||||||||||||||||||||
volume | asset | liability | location | ||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swaps, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | — | Other non-current | ||||||||||||||||||
asset | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | — | $ | — | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 512.1 | 1) | $ | 0.4 | 2) | $ | 0.2 | 3) | Other current assets/ | |||||||||||||||
liabilities | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | $ | 0.4 | $ | 0.2 | |||||||||||||||||||
Total derivatives | $ | 512.1 | $ | 0.4 | $ | 0.2 | |||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps $0.4 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps $0.2 million. | ||||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Balance sheet | |||||||||||||||||||||
volume | asset | liability | location | ||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swaps, less than 7 years (fair value hedge) | $ | 60 | $ | 15.8 | $ | — | Other non-current | ||||||||||||||||||
asset | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | $ | 15.8 | $ | — | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 700.8 | 1) | $ | 0.7 | 2) | $ | 0.7 | 3) | Other current assets/ | |||||||||||||||
liabilities | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 700.8 | $ | 0.7 | $ | 0.7 | |||||||||||||||||||
Total derivatives | $ | 760.8 | $ | 16.5 | $ | 0.7 | |||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $569.9 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps $0.6 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps $0.6 million. | ||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in Consolidated | |||||||||||||||||||||||||
Statement of Net Income Three | |||||||||||||||||||||||||
months ended September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
Volume | Financial | Expense | Income | (loss) | gain (loss) | ||||||||||||||||||||
Items, | recognized in | reclassified | |||||||||||||||||||||||
net | OCI on | from | |||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in Consolidated | |||||||||||||||||||||||||
Statement of Net Income Nine | |||||||||||||||||||||||||
months ended September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
Volume | Financial | Expense | Income | (loss) | gain (loss) | ||||||||||||||||||||
Items, | recognized in | reclassified | |||||||||||||||||||||||
net | OCI on | from | |||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | (1.3 | ) | $ | — | $ | — | $ | — | ||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | — | $ | — | $ | 1.3 | $ | — | $ | — | $ | — | |||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Amount of gain (loss) recognized | |||||||||||||||||||||||||
in Consolidated Statement | |||||||||||||||||||||||||
of Net Income | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
volume | financial | expense | income | (loss) | gain (loss) | ||||||||||||||||||||
items, net | recognized in | reclassified | |||||||||||||||||||||||
OCI on | from | ||||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 8 years (fair value hedge) | $ | 60 | $ | — | $ | 0.6 | $ | — | $ | — | $ | — | |||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | |||||||||||||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | 60 | $ | — | $ | (0.6 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
Amount of gain (loss) recognized | |||||||||||||||||||||||||
in Consolidated Statement | |||||||||||||||||||||||||
of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
volume | financial | expense | income | (loss) | gain (loss) | ||||||||||||||||||||
items, net | recognized in | reclassified | |||||||||||||||||||||||
OCI on | from | ||||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 8 years (fair value hedge) | $ | 60 | $ | — | $ | 1.5 | $ | — | $ | — | $ | — | |||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | |||||||||||||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | 60 | $ | — | $ | (1.5 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 512.1 | 1) | $ | 0.3 | $ | (0.0 | ) | $ | — | |||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 512.1 | 1) | $ | 0.3 | $ | 0 | $ | — | ||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 1,272.80 | 1) | $ | 1.4 | $ | 0 | $ | — | ||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1,272.80 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $715.7 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 1,272.80 | 1) | $ | (8.5 | ) | $ | (0.0 | ) | $ | — | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1,272.80 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $715.7 million. | ||||||||||||||||||||||||
All amounts recognized in the Consolidated Statement of Net Income related to derivatives, not designated as hedging instruments, relate to economic hedges and thus have been materially off-set by an opposite Consolidated Statement of Net Income effect of the related financial liabilities or financial assets. | |||||||||||||||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt approximate their fair value because of the short term maturity of these instruments. The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The fair value of derivatives is estimated using a discounted cash flow method based on quoted market prices. The fair value and carrying value of debt is summarized in the table below. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The discount rates for all derivative contracts are based on bank deposit or swap interest rates. Credit risk has been considered when determining the discount rates used for the derivative contracts, which when aggregated by counterparty, are in a liability position. | |||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||
September 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value 1) | value | value 1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 303.2 | $ | 325.9 | $ | 305.8 | $ | 329.5 | |||||||||||||||||
Medium-term notes | 101.1 | 100.6 | 99.8 | 99.4 | |||||||||||||||||||||
Notes | — | — | 107.6 | 108.9 | |||||||||||||||||||||
Other long-term debt | 19.2 | 19.2 | 49.7 | 49.7 | |||||||||||||||||||||
Total | $ | 423.5 | $ | 445.7 | $ | 562.9 | $ | 587.5 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 82.6 | $ | 82.6 | $ | 60.3 | $ | 60.3 | |||||||||||||||||
Short-term portion of long-term debt | 133.8 | 135.5 | 9.5 | 9.5 | |||||||||||||||||||||
Total | $ | 216.4 | $ | 218.1 | $ | 69.8 | $ | 69.8 | |||||||||||||||||
1) | Debt as reported in balance sheet. | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis | |||||||||||||||||||||||||
In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a non-recurring basis include long-lived assets, including investments in affiliates, and restructuring liabilities (see Note 6). | |||||||||||||||||||||||||
The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets. For restructuring obligations, the amount recorded represents the fair value of the payments expected to be made, and such provisions are discounted if the payments are expected to extend beyond one year. | |||||||||||||||||||||||||
As of September 30, 2013 the Company had $68.9 million of restructuring reserves which were measured at fair value upon initial recognition of the associated liability (see Note 6). For the three and nine months ended September 30, 2013, the Company did not record any impairment charges on its long-lived assets. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | 4 Income Taxes |
For the first nine months of 2013, the effective tax rate was 27.8%, compared with an effective tax rate of 30.7% in the first nine months of 2012. In the first nine months of 2013, the net impact of discrete tax items caused a 0.5% decrease to the effective tax rate. The net impact of discrete tax items in the first nine months of 2012 caused a 1.7% increase to the effective tax rate. | |
The Company files income tax returns in the United States federal jurisdiction, various state jurisdictions and foreign jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is effectively no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2009. In addition, with few exceptions, the Company is also no longer subject to income tax examination by U.S. state and local and non-U.S. tax authorities for years prior to 2004. | |
The Company is undergoing tax audits in several jurisdictions covering multiple years. As of September 30, 2013, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would have a material impact on the Company’s financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. | |
During the third quarter of 2013, the Company recorded a net increase of $2.6 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current and prior years, including accruing additional interest related to unrecognized tax benefits of prior years. Of the total unrecognized tax benefits of $23.1 million recorded at September 30, 2013, $2.3 million is classified as current tax payable and $20.8 million is classified as non-current tax payable on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories | 5 Inventories | ||||||||
Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: | |||||||||
As of | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Raw materials | $ | 313.7 | $ | 287.7 | |||||
Work in progress | 233.8 | 225.9 | |||||||
Finished products | 182.4 | 180.9 | |||||||
Inventories | 729.9 | 694.5 | |||||||
Inventory valuation reserve | (87.5 | ) | (83.5 | ) | |||||
Total inventories, net of reserve | $ | 642.4 | $ | 611 |
Restructuring
Restructuring | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Restructuring | 6 Restructuring | ||||||||||||||||||||||||
Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. | |||||||||||||||||||||||||
Third quarter of 2013 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the third quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from June 30, 2013 to September 30, 2013. | |||||||||||||||||||||||||
June 30, | Provision/ | Provision/ | Cash | Translation | September 30, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 70.2 | $ | 1 | $ | (0.1 | ) | $ | (5.0 | ) | $ | 2.3 | $ | 68.4 | |||||||||||
Other | 0.5 | — | — | (0.0 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 70.7 | $ | 1 | $ | (0.1 | ) | $ | (5.0 | ) | $ | 2.3 | $ | 68.9 | |||||||||||
Second quarter of 2013 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the second quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2013 to June 30, 2013. | |||||||||||||||||||||||||
March 31, | Provision/ | Provision/ | Cash | Translation | June 30, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 70.1 | $ | 3 | $ | (0.1 | ) | $ | (4.1 | ) | $ | 1.3 | $ | 70.2 | |||||||||||
Other | 0.5 | — | — | (0.0 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 70.6 | $ | 3 | $ | (0.1 | ) | $ | (4.1 | ) | $ | 1.3 | $ | 70.7 | |||||||||||
First quarter of 2013 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the first quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2012 to March 31, 2013. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2012 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 74.9 | $ | 2.3 | $ | (0.1 | ) | $ | (4.7 | ) | $ | (2.3 | ) | $ | 70.1 | ||||||||||
Other | 0.9 | — | — | (0.4 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 75.8 | $ | 2.3 | $ | (0.1 | ) | $ | (5.1 | ) | $ | (2.3 | ) | $ | 70.6 | ||||||||||
2012 | |||||||||||||||||||||||||
In 2012, the employee-related restructuring provisions mainly related to headcount reductions throughout Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2011 to December 31, 2012. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | December 31, | ||||||||||||||||||||
2011 | Charge | Reversal | payments | difference | 2012 | ||||||||||||||||||||
Restructuring employee-related | $ | 31.4 | $ | 76.6 | $ | (1.8 | ) | $ | (33.3 | ) | $ | 2 | $ | 74.9 | |||||||||||
Other | 0.9 | 0.3 | (0.3 | ) | (0.0 | ) | — | 0.9 | |||||||||||||||||
Total reserve | $ | 32.3 | $ | 76.9 | $ | (2.1 | ) | $ | (33.3 | ) | $ | 2 | $ | 75.8 |
ProductRelated_Liabilities
Product-Related Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Product-Related Liabilities | 7 Product-Related Liabilities | ||||||||||||||||
The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. | |||||||||||||||||
The Company records liabilities for product-related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of the products sold. The provisions are recorded on an accrual basis. For further explanation, see Note 11 Contingent Liabilities below. | |||||||||||||||||
The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three months ended September 30, 2013 mainly relate to warranty related issues and the nine months ended September 30, 2013 mainly relate to recall related issues. The cash paid for the three and nine months ended September 30, 2013 related mainly to warranty related issues. The provisions and cash paid for the three and nine months ended September 30, 2012 mainly related to warranty related issues. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Reserve at beginning of the period | $ | 37.1 | $ | 31.6 | $ | 29.9 | $ | 33 | |||||||||
Change in reserve | 2.9 | 3.5 | 16.4 | 13.3 | |||||||||||||
Cash payments | (2.8 | ) | (4.5 | ) | (8.5 | ) | (15.3 | ) | |||||||||
Translation difference | 0.6 | 0.7 | (0.0 | ) | 0.3 | ||||||||||||
Reserve at end of the period | $ | 37.8 | $ | 31.3 | $ | 37.8 | $ | 31.3 |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Retirement Plans | 8 Retirement Plans | ||||||||||||||||
The Company has contributory and non-contributory defined benefit pension plans covering employees at most operations in the United States and in certain other countries. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. Certain supplemental funded and unfunded plan arrangements also provide retirement benefits to specified groups of participants. | |||||||||||||||||
The Company has frozen participation in the U.S. pension plans to include only those employees hired as of December 31, 2003. The U.K. defined benefit plan is the most significant individual non-U.S. pension plan and the Company has frozen participation to include only those employees hired as of April 30, 2003. | |||||||||||||||||
The Net Periodic Benefit Costs related to Other Post-retirement Benefits were not significant to the Condensed Consolidated Financial Statements of the Company for the three and nine months ended September 30, 2013 and September 30, 2012. | |||||||||||||||||
For further information on Pension Plans and Other Post-retirement Benefits, see Note 18 to the Consolidated Financial Statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on February 22, 2013. | |||||||||||||||||
The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 5.6 | $ | 4.9 | $ | 16.9 | $ | 14.6 | |||||||||
Interest cost | 4.9 | 4.7 | 14.8 | 14.1 | |||||||||||||
Expected return on plan assets | (3.9 | ) | (3.5 | ) | (11.7 | ) | (10.5 | ) | |||||||||
Amortization prior service credit | (0.2 | ) | (0.3 | ) | (0.6 | ) | (0.7 | ) | |||||||||
Amortization of actuarial loss | 3.1 | 2.3 | 9.2 | 6.7 | |||||||||||||
Net Periodic Benefit Cost | $ | 9.5 | $ | 8.1 | $ | 28.6 | $ | 24.2 |
Equity_and_Equity_Units_Offeri
Equity and Equity Units Offering | 9 Months Ended |
Sep. 30, 2013 | |
Equity and Equity Units Offering | 9 Equity and Equity Units Offering |
On March 30, 2009, the Company sold, in an underwritten registered public offering, approximately 14.7 million common shares from treasury stock and 6.6 million equity units (the Equity Units), listed on the NYSE as Corporate Units, for an aggregate stated amount and public offering price of $235 million and $165 million, respectively. “Equity Units” is a term that describes a security that is either a Corporate Unit or a Treasury Unit, depending upon what type of note is used by the holder to secure the forward purchase contract (either a Note or a Treasury Security, as described below). The Equity Units initially consisted of a Corporate Unit which is (i) a forward purchase contract obligating the holder to purchase from the Company for a price in cash of $25, on the purchase contract settlement date of April 30, 2012, subject to early settlement in accordance with the terms of the Purchase Contract and Pledge Agreement, a certain number (at the Settlement Rate outlined in the Purchase Contract and Pledge Agreement) of shares of Common Stock and (ii) a 1/40, or 2.5%, undivided beneficial ownership interest in a $1,000 principal amount of the Company’s 8% senior notes due 2014 (the “Senior Notes”). | |
The Company allocated proceeds received upon issuance of the Equity Units based on relative fair values at the time of issuance. The fair value of the purchase contract at issuance was $3.75 and the fair value of the note was $21.25. The discount on the notes is amortized using the effective interest rate method. Accordingly, the difference between the stated rate (i.e. cash payments of interest) and the effective interest rate is credited to the value of the notes. Thus, at the end of the three years, the notes were stated on the balance sheet at their face amount. The Company allocated 1% of the 6% of underwriting commissions paid to the debt as deferred charges based on commissions paid for similar debt issuances, but including factors for market conditions at the time of the offering and the Company’s credit rating. The deferred charges were being amortized over the life of the note (until the remarketing settlement date on March 15, 2012) using the effective interest rate method. The remaining underwriting commissions of 5% were allocated to the equity forward and recorded as a reduction to paid-in capital. The fees associated with the remarketing were allocated the same way and the deferred charges will be similarly amortized over the life of the notes until April 30, 2014. Following separately negotiated accelerated exchanges with holders representing an aggregate of approximately 2.3 million Equity Units in the second quarter 2010, 4,250,920 Equity Units remained outstanding prior to settlement on April 30, 2012. | |
The Company successfully completed the remarketing of the Senior Notes in March 2012, pursuant to which the interest rate on the Senior Notes was reset and certain other terms of the Senior Notes were modified. On March 15, 2012, the coupon was reset to 3.854% with a yield of 2.875% per annum which will be applicable until final maturity on April 30, 2014. Autoliv did not receive any proceeds from the remarketing until the settlement of the forward stock purchase contracts on April 30, 2012. On April 30, 2012, Autoliv settled the purchase contracts by issuing approximately 5.8 million shares of common stock in exchange for $106,273,000 in proceeds generated by the maturity of the U.S. Treasury securities purchased following the remarketing. The settlement of the purchase contracts concluded Autoliv’s equity obligations under the Equity Units. |
NonControlling_Interest
Non-Controlling Interest | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Non-Controlling Interest | 10 Non-Controlling Interest | ||||||||||||||||||||||||
July-September 2013 | July-September 2012 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Parent | Non-controlling | Total | Parent | Non-controlling | Total | ||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,886.10 | $ | 19.7 | $ | 3,905.80 | $ | 3,565.60 | $ | 15.3 | $ | 3,580.90 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 123.9 | 1 | 124.9 | 117.5 | 0.5 | 118 | |||||||||||||||||||
Foreign currency translation | 39 | 0 | 39 | 45.2 | 0.3 | 45.5 | |||||||||||||||||||
Defined benefit pension plan | 1.8 | — | 1.8 | 1.3 | — | 1.3 | |||||||||||||||||||
Total Comprehensive Income | 164.7 | 1 | 165.7 | 164 | 0.8 | 164.8 | |||||||||||||||||||
Common Stock incentives | 8.8 | — | 8.8 | 3.6 | — | 3.6 | |||||||||||||||||||
Cash dividends declared | (48.0 | ) | — | (48.0 | ) | (47.7 | ) | — | (47.7 | ) | |||||||||||||||
Common stock issuance, net | — | — | — | — | — | — | |||||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (0 | ) | (0 | ) | — | — | — | |||||||||||||||||
Balance at end of period | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | $ | 3,685.50 | $ | 16.1 | $ | 3,701.60 | |||||||||||||
January-September 2013 | January-September 2012 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Parent | Non-controlling | Total | Parent | Non-controlling | Total | ||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,758.60 | $ | 17.5 | $ | 3,776.10 | $ | 3,333.40 | $ | 15.6 | $ | 3,349.00 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 386.1 | 3.3 | 389.4 | 344.4 | 1.2 | 345.6 | |||||||||||||||||||
Foreign currency translation | (15.9 | ) | 0.3 | (15.6 | ) | 24.2 | 0.1 | 24.3 | |||||||||||||||||
Defined benefit pension plan | 5.1 | — | 5.1 | 3.6 | — | 3.6 | |||||||||||||||||||
Total Comprehensive Income | 375.3 | 3.6 | 378.9 | 372.2 | 1.3 | 373.5 | |||||||||||||||||||
Common Stock incentives | 21.4 | — | 21.4 | 12.5 | — | 12.5 | |||||||||||||||||||
Cash dividends declared | (143.7 | ) | — | (143.7 | ) | (137.4 | ) | — | (137.4 | ) | |||||||||||||||
Common stock issuance, net | — | — | — | 104.8 | — | 104.8 | |||||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (0.4 | ) | (0.4 | ) | — | (0.8 | ) | (0.8 | ) | |||||||||||||||
Balance at end of period | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | $ | 3,685.50 | $ | 16.1 | $ | 3,701.60 |
Contingent_Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2013 | |
Contingent Liabilities | 11 Contingent Liabilities |
Legal Proceedings | |
Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future. | |
General Litigation | |
In 2009, Autoliv initiated a closure of its Normandy Precision Components (“NPC”) plant located in France. Most of the former NPC-employees that were not “protected” (i.e. not union representatives) filed claims in a French court claiming damages in an aggregate amount of €12 million (approximately $16 million) and/or other remedies. In February 2012, the French court ruled in favor of plaintiffs in an aggregate amount of €5.6 million (approximately $7.5 million), while rejecting certain other claims. As required under French law, Autoliv had previously paid the €5.6 million award while appealing the matter. On appeal, the court reduced the amount owed by Autoliv to some employees and increased the amount to be paid to others. The court also assessed the compensation to be paid to the French government for past unemployment payments, for a total additional cost of approximately €1.0 million (approximately $1.3 million). | |
Antitrust Matters | |
Authorities in several jurisdictions are currently conducting broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations include, but are not limited to, segments in which the Company operates. In addition to pending matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations. It is the Company’s policy to cooperate with governmental investigations. | |
On February 8, 2011, a Company subsidiary received a grand jury subpoena from the Antitrust Division of the U.S. Department of Justice (“DOJ”) related to its investigation of anti-competitive behavior among suppliers of occupant safety systems. On June 6, 2012, the Company entered into a plea agreement with the DOJ and subsequently pled guilty to two counts of antitrust law violations involving a Japanese subsidiary and paid a fine of $14.5 million. Under the terms of the agreement the Company will continue to cooperate with the DOJ in its investigation of other suppliers, but the DOJ will not otherwise prosecute Autoliv or any of its subsidiaries, present or former directors, officers or employees for the matters investigated (the DOJ did reserve the option to prosecute three specific employees, none of whom is a member of the senior management of the Company). | |
On June 7-9, 2011, representatives of the European Commission (“EC”), the European antitrust authority, visited two facilities of a Company subsidiary in Germany to gather information for a similar investigation. The investigation is still pending and the Company remains unable to estimate the financial impact such investigation will have or predict the reporting periods in which such financial impact may be recorded and has consequently not recorded a provision for loss as of September 30, 2013. However, management has concluded that it is probable that the Company’s operating results and cash flows will be materially adversely impacted for the reporting periods in which the EC investigation is resolved or becomes estimable. | |
On October 3, 2012, the Company received a letter from the Competition Bureau of Canada (“CBC”) related to the subjects investigated by the DOJ and EC, seeking the voluntary production of certain corporate records and information related to sales subject to Canadian jurisdiction. The Company cooperated with CBC’s request. Based on information from the CBC, the Company currently does not anticipate an adverse outcome from the CBC related to sales subject to Canadian jurisdiction. | |
On November 6, 2012, the Korean Fair Trade Commission visited one of the Company’s South Korean subsidiaries to gather information for a similar investigation. The Company cannot predict the duration, scope or ultimate outcome of this investigation and is unable to estimate the financial impact it may have, or predict the reporting periods in which any such financial impacts may be recorded. Consequently, the Company has not recorded a provision for loss as of September 30, 2013 with respect to this investigation. Also, since the Company’s plea agreement with the DOJ involved the actions of employees of a Japanese subsidiary of the Company, the Japan Fair Trade Commission is evaluating whether to initiate an investigation. | |
The Company is also subject to civil litigation alleging anti-competitive conduct. Notably, the Company, several of its subsidiaries and its competitors are defendants in a total of sixteen purported antitrust class action lawsuits filed between July 2012 and July 2013. Thirteen of these lawsuits, brought by direct purchasers, auto dealers and end-payors, have been consolidated in the Occupant Safety Systems (OSS) segment of the Automobile Parts Antitrust Litigation, a Multi-District Litigation (MDL) proceeding in the United States District Court for the Eastern District of Michigan. Based on current schedules, substantive discovery in the OSS segment of the MDL, which includes Autoliv, is not likely to begin before May 2014. The other three lawsuits are pending in Canada (Sheridan Chevrolet Cadillac Ltd. et al. v. Autoliv, Inc. et al., filed in the Ontario Superior Court of Justice on January 18, 2013; M. Serge Asselin v. Autoliv, Inc. et al., filed in the Superior Court of Quebec on March 14, 2013; and Ewert v. Antoliv, Inc. et al., filed in the Supreme Court of British Columbia on July 18, 2013). The Canadian cases assert claims on behalf of putative classes of auto dealers and end-payors. Substantive discovery in those cases will likely be deferred pending a ruling in an unrelated case by the Supreme Court of Canada on whether indirect purchasers can sue for antitrust damages. | |
Plaintiffs in the above U.S. and Canadian civil antitrust class actions generally allege that the defendants have engaged in long-running global conspiracies to fix the prices of occupant safety systems or components thereof in violation of various antitrust laws and unfair or deceptive trade practice statutes. Plaintiffs seek to represent purported classes of direct purchasers, auto dealers and end-payors (e.g. consumers) who purchased occupant safety systems or components either directly from a defendant or indirectly through purchases of new vehicles containing such systems. Plaintiffs seek injunctive relief, treble damages and attorneys’ fees. The plaintiffs in these cases make allegations that extend significantly beyond the specific admissions of the plea discussed above. The Company denies these overly broad allegations and intends to actively defend itself against the same. While it is probable that the Company will incur losses as a result of these antitrust cases, the duration or ultimate outcome of these cases currently cannot be predicted or estimated and no provision for a loss has been recorded as of September 30, 2013. | |
On April 17, 2013, the Construction Laborers Pension Trust of Greater St. Louis (“Plaintiff”) filed a purported class action securities lawsuit against Autoliv and two of its officers in the United States District Court for the Southern District of New York (Civil Action File No. 13-CIV-2546). On October 21, 2013, Plaintiff filed an amended complaint in that lawsuit, adding as a third individual defendant an employee of one of the Company’s subsidiaries. The amended complaint alleges misrepresentations or failures to disclose material facts that artificially inflated the Company’s stock price in violation of the federal securities laws, in particular Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended, and failed to disclose prior to June 6, 2012 that employees had engaged in certain price fixing activity in violation of the law and that the Company’s prior financial results allegedly had been inflated as a result of the anti-competitive activity. Plaintiff purports to bring this lawsuit on behalf of a class of purchasers of common stock of the Company between October 26, 2010 and July 21, 2011. Plaintiff seeks to recover damages in an unspecified amount. The Company and its two officers deny any wrongdoing, believe the claims are baseless, and will defend accordingly. | |
Product Warranty, Recalls and Intellectual Property | |
Autoliv is exposed to various claims for damages and compensation if products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected the Company faces warranty and recall claims. Where such (actual or alleged) failure results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product-liability claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer. Accordingly, the future costs of warranty claims by the customers may be material. However, the Company believes its established reserves are adequate to cover potential warranty settlements. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the appropriateness of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due related to these matters could differ materially from the Company’s recorded estimates. | |
In addition, the global platforms and procedures used by vehicle manufacturers have led to quality performance evaluations being conducted on an increasingly global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations. | |
The Company believes that it is currently reasonably insured against recall and product liability risks, at levels sufficient to cover potential claims that are reasonably likely to arise in the Company’s businesses based on past experience. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend or increase insurance. | |
In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to identify the intellectual property rights of relevance to its products, and to procure the necessary rights to utilize such intellectual property rights, we may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, our customers may be entitled to be indemnified by us for the claims they suffer as a result thereof. Such claims could be material. | |
The table in Note 7 Product-Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the three and nine months ended September 30, 2013 and September 30, 2012, respectively. |
Earnings_per_share
Earnings per share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings per share | 12 Earnings per share | ||||||||||||||||
The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of common shares outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Stock Incentive Plan. | |||||||||||||||||
For the three and nine months ended September 30, 2013, approximately 0.0 million and 0.0 million common shares, respectively, were not included in the computation of the diluted EPS, which could potentially dilute basic EPS in the future. | |||||||||||||||||
During the nine months ended September 30, 2013 and September 30, 2012 approximately 0.4 million and 0.4 million shares, respectively, from the treasury stock have been utilized by the Stock Incentive Plan. | |||||||||||||||||
Actual weighted average shares used in calculating earnings per share were: | |||||||||||||||||
(In millions) | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average shares basic | 95.8 | 95.4 | 95.7 | 92.8 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
- stock options/share awards | 0.4 | 0.3 | 0.3 | 0.3 | |||||||||||||
- equity units 1) | — | 0 | — | 1.8 | |||||||||||||
Weighted average shares diluted | 96.2 | 95.7 | 96 | 94.9 | |||||||||||||
1) | For the three and nine months ended September 30, 2012, 0.0 million and 1.8 million shares, respectively, were included in the dilutive weighted average share amount related to the Equity Units. The number of shares that were issued on April 30, 2012, related to the final settlement of the Equity Units, was approximately 5.8 million. This reflects the effect from the exchange of Equity Units discussed in Note 9 and takes into account all previously paid dividends, including the dividend paid in the first quarter 2012. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | 13 Subsequent Events |
There were no reportable events subsequent to September 30, 2013. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Summary of Valuation of Company's Derivatives by Pricing Observability Levels | The following tables summarize the valuation of the Company’s derivatives by the above noted pricing observability levels: | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Using | |||||||||||||||||||||||||
Description | Total carrying | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
amount in | |||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Derivatives a) | $ | 0.4 | — | $ | 0.4 | — | |||||||||||||||||||
Total Assets | $ | 0.4 | — | $ | 0.4 | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | $ | 0.2 | — | $ | 0.2 | — | |||||||||||||||||||
Total Liabilities | $ | 0.2 | — | $ | 0.2 | — | |||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Using | |||||||||||||||||||||||||
Description | Total carrying | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
amount in | |||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Derivatives | $ | 16.5 | — | $ | 16.5 | — | |||||||||||||||||||
Total Assets | $ | 16.5 | — | $ | 16.5 | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | $ | 0.7 | — | $ | 0.7 | — | |||||||||||||||||||
Total Liabilities | $ | 0.7 | — | $ | 0.7 | — | |||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. Although the Company is party to close-out netting agreements with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at September 30, 2013 and December 31, 2012, have been presented on a gross basis. The net amounts subject to netting agreements that the Company choose not to offset are presented in footnotes. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Balance sheet | |||||||||||||||||||||
volume | asset | liability | location | ||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swaps, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | — | Other non-current | ||||||||||||||||||
asset | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | — | $ | — | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 512.1 | 1) | $ | 0.4 | 2) | $ | 0.2 | 3) | Other current assets/ | |||||||||||||||
liabilities | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | $ | 0.4 | $ | 0.2 | |||||||||||||||||||
Total derivatives | $ | 512.1 | $ | 0.4 | $ | 0.2 | |||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps $0.4 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps $0.2 million. | ||||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Balance sheet | |||||||||||||||||||||
volume | asset | liability | location | ||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swaps, less than 7 years (fair value hedge) | $ | 60 | $ | 15.8 | $ | — | Other non-current | ||||||||||||||||||
asset | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | $ | 15.8 | $ | — | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 700.8 | 1) | $ | 0.7 | 2) | $ | 0.7 | 3) | Other current assets/ | |||||||||||||||
liabilities | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 700.8 | $ | 0.7 | $ | 0.7 | |||||||||||||||||||
Total derivatives | $ | 760.8 | $ | 16.5 | $ | 0.7 | |||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $569.9 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps $0.6 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps $0.6 million. | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in Consolidated | |||||||||||||||||||||||||
Statement of Net Income Three | |||||||||||||||||||||||||
months ended September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
Volume | Financial | Expense | Income | (loss) | gain (loss) | ||||||||||||||||||||
Items, | recognized in | reclassified | |||||||||||||||||||||||
net | OCI on | from | |||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in Consolidated | |||||||||||||||||||||||||
Statement of Net Income Nine | |||||||||||||||||||||||||
months ended September 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
Volume | Financial | Expense | Income | (loss) | gain (loss) | ||||||||||||||||||||
Items, | recognized in | reclassified | |||||||||||||||||||||||
net | OCI on | from | |||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 7 years (fair value hedge) a) | $ | — | $ | — | $ | (1.3 | ) | $ | — | $ | — | $ | — | ||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | — | $ | — | $ | 1.3 | $ | — | $ | — | $ | — | |||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
a) | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. | ||||||||||||||||||||||||
Amount of gain (loss) recognized | |||||||||||||||||||||||||
in Consolidated Statement | |||||||||||||||||||||||||
of Net Income | |||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
volume | financial | expense | income | (loss) | gain (loss) | ||||||||||||||||||||
items, net | recognized in | reclassified | |||||||||||||||||||||||
OCI on | from | ||||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 8 years (fair value hedge) | $ | 60 | $ | — | $ | 0.6 | $ | — | $ | — | $ | — | |||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | |||||||||||||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | 60 | $ | — | $ | (0.6 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
Amount of gain (loss) recognized | |||||||||||||||||||||||||
in Consolidated Statement | |||||||||||||||||||||||||
of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest | Interest | Amount of gain | Amount of | |||||||||||||||||||
volume | financial | expense | income | (loss) | gain (loss) | ||||||||||||||||||||
items, net | recognized in | reclassified | |||||||||||||||||||||||
OCI on | from | ||||||||||||||||||||||||
derivative | accumulated | ||||||||||||||||||||||||
effective | OCI into | ||||||||||||||||||||||||
portion | interest | ||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Interest rate swap, less than 8 years (fair value hedge) | $ | 60 | $ | — | $ | 1.5 | $ | — | $ | — | $ | — | |||||||||||||
Total derivatives designated as hedging instruments | $ | 60 | |||||||||||||||||||||||
Hedged item (fair value hedge) | |||||||||||||||||||||||||
Fixed rate private placement debt due 2019 | $ | 60 | $ | — | $ | (1.5 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total gain(loss) in Consolidated Statement of Net Income | $ | 0 | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 512.1 | 1) | $ | 0.3 | $ | (0.0 | ) | $ | — | |||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 512.1 | 1) | $ | 0.3 | $ | 0 | $ | — | ||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 512.1 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 1,272.80 | 1) | $ | 1.4 | $ | 0 | $ | — | ||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1,272.80 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $715.7 million. | ||||||||||||||||||||||||
Amount of gain (loss) recognized in | |||||||||||||||||||||||||
Consolidated Statement of Net Income | |||||||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||
Description | Nominal | Other | Interest Expense | Interest Income | |||||||||||||||||||||
Volume | Financial | ||||||||||||||||||||||||
Items, net | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps | $ | 1,272.80 | 1) | $ | (8.5 | ) | $ | (0.0 | ) | $ | — | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1,272.80 | |||||||||||||||||||||||
1) | Net amount after deducting for offsetting swaps $715.7 million. | ||||||||||||||||||||||||
Fair Value of Debt | Fair Value of Debt | ||||||||||||||||||||||||
September 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value 1) | value | value 1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 303.2 | $ | 325.9 | $ | 305.8 | $ | 329.5 | |||||||||||||||||
Medium-term notes | 101.1 | 100.6 | 99.8 | 99.4 | |||||||||||||||||||||
Notes | — | — | 107.6 | 108.9 | |||||||||||||||||||||
Other long-term debt | 19.2 | 19.2 | 49.7 | 49.7 | |||||||||||||||||||||
Total | $ | 423.5 | $ | 445.7 | $ | 562.9 | $ | 587.5 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 82.6 | $ | 82.6 | $ | 60.3 | $ | 60.3 | |||||||||||||||||
Short-term portion of long-term debt | 133.8 | 135.5 | 9.5 | 9.5 | |||||||||||||||||||||
Total | $ | 216.4 | $ | 218.1 | $ | 69.8 | $ | 69.8 | |||||||||||||||||
1) | Debt as reported in balance sheet. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Components of Inventories | Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: | ||||||||
As of | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Raw materials | $ | 313.7 | $ | 287.7 | |||||
Work in progress | 233.8 | 225.9 | |||||||
Finished products | 182.4 | 180.9 | |||||||
Inventories | 729.9 | 694.5 | |||||||
Inventory valuation reserve | (87.5 | ) | (83.5 | ) | |||||
Total inventories, net of reserve | $ | 642.4 | $ | 611 |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Change in Balance Sheet Position of Restructuring Reserves | Third quarter of 2013 | ||||||||||||||||||||||||
The employee-related restructuring provisions in the third quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from June 30, 2013 to September 30, 2013. | |||||||||||||||||||||||||
June 30, | Provision/ | Provision/ | Cash | Translation | September 30, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 70.2 | $ | 1 | $ | (0.1 | ) | $ | (5.0 | ) | $ | 2.3 | $ | 68.4 | |||||||||||
Other | 0.5 | — | — | (0.0 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 70.7 | $ | 1 | $ | (0.1 | ) | $ | (5.0 | ) | $ | 2.3 | $ | 68.9 | |||||||||||
Second quarter of 2013 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the second quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2013 to June 30, 2013. | |||||||||||||||||||||||||
March 31, | Provision/ | Provision/ | Cash | Translation | June 30, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 70.1 | $ | 3 | $ | (0.1 | ) | $ | (4.1 | ) | $ | 1.3 | $ | 70.2 | |||||||||||
Other | 0.5 | — | — | (0.0 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 70.6 | $ | 3 | $ | (0.1 | ) | $ | (4.1 | ) | $ | 1.3 | $ | 70.7 | |||||||||||
First quarter of 2013 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the first quarter of 2013 mainly relate to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2012 to March 31, 2013. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2012 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 74.9 | $ | 2.3 | $ | (0.1 | ) | $ | (4.7 | ) | $ | (2.3 | ) | $ | 70.1 | ||||||||||
Other | 0.9 | — | — | (0.4 | ) | 0 | 0.5 | ||||||||||||||||||
Total reserve | $ | 75.8 | $ | 2.3 | $ | (0.1 | ) | $ | (5.1 | ) | $ | (2.3 | ) | $ | 70.6 | ||||||||||
2012 | |||||||||||||||||||||||||
In 2012, the employee-related restructuring provisions mainly related to headcount reductions throughout Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2011 to December 31, 2012. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | December 31, | ||||||||||||||||||||
2011 | Charge | Reversal | payments | difference | 2012 | ||||||||||||||||||||
Restructuring employee-related | $ | 31.4 | $ | 76.6 | $ | (1.8 | ) | $ | (33.3 | ) | $ | 2 | $ | 74.9 | |||||||||||
Other | 0.9 | 0.3 | (0.3 | ) | (0.0 | ) | — | 0.9 | |||||||||||||||||
Total reserve | $ | 32.3 | $ | 76.9 | $ | (2.1 | ) | $ | (33.3 | ) | $ | 2 | $ | 75.8 |
ProductRelated_Liabilities_Tab
Product-Related Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Change in Balance Sheet Position of Product-Related Liabilities | The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three months ended September 30, 2013 mainly relate to warranty related issues and the nine months ended September 30, 2013 mainly relate to recall related issues. The cash paid for the three and nine months ended September 30, 2013 related mainly to warranty related issues. The provisions and cash paid for the three and nine months ended September 30, 2012 mainly related to warranty related issues. | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Reserve at beginning of the period | $ | 37.1 | $ | 31.6 | $ | 29.9 | $ | 33 | |||||||||
Change in reserve | 2.9 | 3.5 | 16.4 | 13.3 | |||||||||||||
Cash payments | (2.8 | ) | (4.5 | ) | (8.5 | ) | (15.3 | ) | |||||||||
Translation difference | 0.6 | 0.7 | (0.0 | ) | 0.3 | ||||||||||||
Reserve at end of the period | $ | 37.8 | $ | 31.3 | $ | 37.8 | $ | 31.3 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Components of Total Net Periodic Benefit Cost | The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 5.6 | $ | 4.9 | $ | 16.9 | $ | 14.6 | |||||||||
Interest cost | 4.9 | 4.7 | 14.8 | 14.1 | |||||||||||||
Expected return on plan assets | (3.9 | ) | (3.5 | ) | (11.7 | ) | (10.5 | ) | |||||||||
Amortization prior service credit | (0.2 | ) | (0.3 | ) | (0.6 | ) | (0.7 | ) | |||||||||
Amortization of actuarial loss | 3.1 | 2.3 | 9.2 | 6.7 | |||||||||||||
Net Periodic Benefit Cost | $ | 9.5 | $ | 8.1 | $ | 28.6 | $ | 24.2 |
NonControlling_Interest_Tables
Non-Controlling Interest (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Non-Controlling Interest | |||||||||||||||||||||||||
July-September 2013 | July-September 2012 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Parent | Non-controlling | Total | Parent | Non-controlling | Total | ||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,886.10 | $ | 19.7 | $ | 3,905.80 | $ | 3,565.60 | $ | 15.3 | $ | 3,580.90 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 123.9 | 1 | 124.9 | 117.5 | 0.5 | 118 | |||||||||||||||||||
Foreign currency translation | 39 | 0 | 39 | 45.2 | 0.3 | 45.5 | |||||||||||||||||||
Defined benefit pension plan | 1.8 | — | 1.8 | 1.3 | — | 1.3 | |||||||||||||||||||
Total Comprehensive Income | 164.7 | 1 | 165.7 | 164 | 0.8 | 164.8 | |||||||||||||||||||
Common Stock incentives | 8.8 | — | 8.8 | 3.6 | — | 3.6 | |||||||||||||||||||
Cash dividends declared | (48.0 | ) | — | (48.0 | ) | (47.7 | ) | — | (47.7 | ) | |||||||||||||||
Common stock issuance, net | — | — | — | — | — | — | |||||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (0 | ) | (0 | ) | — | — | — | |||||||||||||||||
Balance at end of period | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | $ | 3,685.50 | $ | 16.1 | $ | 3,701.60 | |||||||||||||
January-September 2013 | January-September 2012 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Parent | Non-controlling | Total | Parent | Non-controlling | Total | ||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,758.60 | $ | 17.5 | $ | 3,776.10 | $ | 3,333.40 | $ | 15.6 | $ | 3,349.00 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 386.1 | 3.3 | 389.4 | 344.4 | 1.2 | 345.6 | |||||||||||||||||||
Foreign currency translation | (15.9 | ) | 0.3 | (15.6 | ) | 24.2 | 0.1 | 24.3 | |||||||||||||||||
Defined benefit pension plan | 5.1 | — | 5.1 | 3.6 | — | 3.6 | |||||||||||||||||||
Total Comprehensive Income | 375.3 | 3.6 | 378.9 | 372.2 | 1.3 | 373.5 | |||||||||||||||||||
Common Stock incentives | 21.4 | — | 21.4 | 12.5 | — | 12.5 | |||||||||||||||||||
Cash dividends declared | (143.7 | ) | — | (143.7 | ) | (137.4 | ) | — | (137.4 | ) | |||||||||||||||
Common stock issuance, net | — | — | — | 104.8 | — | 104.8 | |||||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (0.4 | ) | (0.4 | ) | — | (0.8 | ) | (0.8 | ) | |||||||||||||||
Balance at end of period | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | $ | 3,685.50 | $ | 16.1 | $ | 3,701.60 |
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Actual Weighted Average Shares Used In Calculating Earnings Per Share | Actual weighted average shares used in calculating earnings per share were: | ||||||||||||||||
(In millions) | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average shares basic | 95.8 | 95.4 | 95.7 | 92.8 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
- stock options/share awards | 0.4 | 0.3 | 0.3 | 0.3 | |||||||||||||
- equity units 1) | — | 0 | — | 1.8 | |||||||||||||
Weighted average shares diluted | 96.2 | 95.7 | 96 | 94.9 | |||||||||||||
1) | For the three and nine months ended September 30, 2012, 0.0 million and 1.8 million shares, respectively, were included in the dilutive weighted average share amount related to the Equity Units. The number of shares that were issued on April 30, 2012, related to the final settlement of the Equity Units, was approximately 5.8 million. This reflects the effect from the exchange of Equity Units discussed in Note 9 and takes into account all previously paid dividends, including the dividend paid in the first quarter 2012. |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Measurements [Line Items] | ||||||
Proceeds from interest rate swap | $60 | |||||
Restructuring reserves | 68.9 | 70.6 | 68.9 | 70.7 | 75.8 | 32.3 |
Asset impairment charges | 0 | 0 | ||||
Fair Value | ||||||
Fair Value Measurements [Line Items] | ||||||
Restructuring reserves | $68.90 | $68.90 |
Summary_of_Valuation_of_Compan
Summary of Valuation of Company's Derivatives by Pricing Observability Levels (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Total Carrying Amount | |||
Assets | |||
Derivatives | $0.40 | [1] | $16.50 |
Total Assets | 0.4 | 16.5 | |
Liabilities | |||
Derivatives | 0.2 | 0.7 | |
Total Liabilities | 0.2 | 0.7 | |
Fair Value, Inputs, Level 2 | |||
Assets | |||
Derivatives | 0.4 | [1] | 16.5 |
Total Assets | 0.4 | 16.5 | |
Liabilities | |||
Derivatives | 0.2 | 0.7 | |
Total Liabilities | $0.20 | $0.70 | |
[1] | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. |
Summary_of_Valuation_of_Compan1
Summary of Valuation of Company's Derivatives by Pricing Observability Levels (Parenthetical) (Detail) (Interest Rate Swaps, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Interest Rate Swaps | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Interest rate derivative asset | $60 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||
In Millions, unless otherwise specified | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Less Than 7 Years | Less Than Six Months | Less Than Six Months | ||||
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Foreign Exchange Swaps | Foreign Exchange Swaps | Derivatives Designated as Hedging Instruments | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | ||||||||||
Fair Value Hedge | Foreign Exchange Swaps | Foreign Exchange Swaps | |||||||||||||||
Interest Rate Swaps | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |||||||||||||||
Fair Value, Measurements, Recurring | Other Current Assets Liabilities | Other Current Assets Liabilities | |||||||||||||||
Other Non Current Asset | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||||||||||||
Nominal Volume | $512.10 | $760.80 | $60 | $60 | $512.10 | $1,272.80 | $512.10 | $700.80 | $512.10 | [1] | $1,272.80 | [1] | $60 | $512.10 | [1] | $700.80 | [2] |
Derivative asset | 0.4 | 16.5 | 15.8 | 0.4 | 0.7 | 15.8 | 0.4 | [3] | 0.7 | [4] | |||||||
Derivative liability | $0.20 | $0.70 | $0.20 | $0.70 | $0.20 | [5] | $0.70 | [4] | |||||||||
[1] | Net amount after deducting for offsetting swaps $468.3 million. | ||||||||||||||||
[2] | Net amount after deducting for offsetting swaps $569.9 million. | ||||||||||||||||
[3] | Net amount after deducting for offsetting swaps $0.4 million. | ||||||||||||||||
[4] | Net amount after deducting for offsetting swaps $0.6 million. | ||||||||||||||||
[5] | Net amount after deducting for offsetting swaps $0.2 million. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Interest Rate Swaps | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Less Than Six Months | Less Than Six Months | |
Foreign Exchange Swaps | Foreign Exchange Swaps | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||
Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | ||||
Foreign Exchange Swaps | Foreign Exchange Swaps | ||||
Other Current Assets Liabilities | Other Current Assets Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative notional volume, amount after offsetting swaps | $468.30 | $715.70 | $468.30 | $569.90 | |
Derivative asset, amount after offsetting swaps | 0.4 | 0.6 | |||
Derivative liability, amount after offsetting swaps | 0.2 | 0.6 | |||
Interest rate derivative asset | $60 |
Derivatives_Designated_as_Hedg
Derivatives Designated as Hedging Instruments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Other Financial Items, net | ||||||
Interest Expense | 0 | 0 | 0 | 0 | ||
Interest Income | ||||||
Amount of gain (loss) recognized in OCI on derivative effective portion | ||||||
Amount of gain (loss) reclassified from accumulated OCI into interest expense | ||||||
Fair Value Hedge | Fixed Rate Private Placement Debt Due 2019 | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Nominal Volume | 60 | 60 | ||||
Other Financial Items, net | ||||||
Interest Expense | -0.6 | 1.3 | -1.5 | |||
Interest Income | ||||||
Amount of gain (loss) recognized in OCI on derivative effective portion | ||||||
Amount of gain (loss) reclassified from accumulated OCI into interest expense | ||||||
Derivatives Designated as Hedging Instruments | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Nominal Volume | 60 | 60 | ||||
Other Financial Items, net | ||||||
Interest Income | ||||||
Amount of gain (loss) recognized in OCI on derivative effective portion | ||||||
Amount of gain (loss) reclassified from accumulated OCI into interest expense | ||||||
Derivatives Designated as Hedging Instruments | Fair Value Hedge | Interest Rate Swaps | Less Than 7 Years | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Other Financial Items, net | [1] | [1] | ||||
Interest Expense | -1.3 | [1] | ||||
Interest Income | [1] | [1] | ||||
Amount of gain (loss) recognized in OCI on derivative effective portion | [1] | [1] | ||||
Amount of gain (loss) reclassified from accumulated OCI into interest expense | [1] | [1] | ||||
Derivatives Designated as Hedging Instruments | Fair Value Hedge | Interest Rate Swaps | Less Than 8 Years | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Nominal Volume | 60 | 60 | ||||
Other Financial Items, net | ||||||
Interest Expense | 0.6 | 1.5 | ||||
Interest Income | ||||||
Amount of gain (loss) recognized in OCI on derivative effective portion | ||||||
Amount of gain (loss) reclassified from accumulated OCI into interest expense | ||||||
[1] | The decrease from year end is explained by the closure of a $60 million interest rate swap in Q1 of 2013. |
Derivatives_Designated_as_Hedg1
Derivatives Designated as Hedging Instruments (Parenthetical) (Detail) (Interest Rate Swaps, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Interest Rate Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Interest rate derivative asset | $60 |
Derivatives_Not_Designated_as_
Derivatives Not Designated as Hedging Instruments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Other Financial Items, net | ||||||||
Interest Expense | 0 | 0 | 0 | 0 | ||||
Interest Income | ||||||||
Not Designated as Hedging Instrument | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Nominal Volume | 512.1 | 1,272.80 | 512.1 | 1,272.80 | ||||
Interest Income | ||||||||
Not Designated as Hedging Instrument | Foreign Exchange Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Nominal Volume | 512.1 | [1] | 1,272.80 | [1] | 512.1 | [1] | 1,272.80 | [1] |
Other Financial Items, net | 0.3 | 1.4 | 0.3 | -8.5 | ||||
Interest Expense | 0 | 0 | 0 | 0 | ||||
Interest Income | ||||||||
[1] | Net amount after deducting for offsetting swaps $468.3 million. |
Derivatives_Not_Designated_as_1
Derivatives Not Designated as Hedging Instruments (Parenthetical) (Detail) (Not Designated as Hedging Instrument, Foreign Exchange Swaps, USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Not Designated as Hedging Instrument | Foreign Exchange Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $468.30 | $715.70 |
Fair_Value_of_Debt_Detail
Fair Value of Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
U.S. Private Placement - Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | $303.20 | [1] | $305.80 | [1] |
Fair value | 325.9 | 329.5 | ||
Medium-term Notes | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 101.1 | [1] | 99.8 | [1] |
Fair value | 100.6 | 99.4 | ||
Notes Long Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 107.6 | [1] | ||
Fair value | 108.9 | |||
Other Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 19.2 | [1] | 49.7 | [1] |
Fair value | 19.2 | 49.7 | ||
Total Long-term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 423.5 | [1] | 562.9 | [1] |
Fair value | 445.7 | 587.5 | ||
Overdrafts And Other Short-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 82.6 | [1] | 60.3 | [1] |
Fair value | 82.6 | 60.3 | ||
Short-Term Portion Of Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 133.8 | [1] | 9.5 | [1] |
Fair value | 135.5 | 9.5 | ||
Total Short-term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Carrying value | 216.4 | [1] | 69.8 | [1] |
Fair value | $218.10 | $69.80 | ||
[1] | Debt as reported in balance sheet. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes [Line Items] | ||
Effective income tax rate | 27.80% | 30.70% |
Increase/decrease in effective tax rate due to impact of discrete tax items | 0.50% | 1.70% |
Unrecognized tax benefits, increases resulting from current and prior period tax positions | $2.60 | |
Total unrecognized tax benefits | 23.1 | |
Unrecognized tax payable, current | 2.3 | |
Unrecognized tax payable, non-current | $20.80 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $313.70 | $287.70 |
Work in progress | 233.8 | 225.9 |
Finished products | 182.4 | 180.9 |
Inventories | 729.9 | 694.5 |
Inventory valuation reserve | -87.5 | -83.5 |
Total inventories, net of reserve | $642.40 | $611 |
Schedule_of_Change_in_Balance_
Schedule of Change in Balance Sheet Position of Restructuring Reserves (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | $70.70 | $70.60 | $75.80 | $32.30 |
Provision/ Charge | 1 | 3 | 2.3 | 76.9 |
Provision/ Reversal | -0.1 | -0.1 | -0.1 | -2.1 |
Cash payments | -5 | -4.1 | -5.1 | -33.3 |
Translation difference | 2.3 | 1.3 | -2.3 | 2 |
Restructuring reserve, ending balance | 68.9 | 70.7 | 70.6 | 75.8 |
Restructuring employee-related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | 70.2 | 70.1 | 74.9 | 31.4 |
Provision/ Charge | 1 | 3 | 2.3 | 76.6 |
Provision/ Reversal | -0.1 | -0.1 | -0.1 | -1.8 |
Cash payments | -5 | -4.1 | -4.7 | -33.3 |
Translation difference | 2.3 | 1.3 | -2.3 | 2 |
Restructuring reserve, ending balance | 68.4 | 70.2 | 70.1 | 74.9 |
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | 0.5 | 0.5 | 0.9 | 0.9 |
Provision/ Charge | 0.3 | |||
Provision/ Reversal | -0.3 | |||
Cash payments | 0 | 0 | -0.4 | 0 |
Translation difference | 0 | 0 | 0 | |
Restructuring reserve, ending balance | $0.50 | $0.50 | $0.50 | $0.90 |
Schedule_of_Change_in_Balance_1
Schedule of Change in Balance Sheet Position of Product-related Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Product Liability Contingency [Line Items] | ||||
Reserve at beginning of the period | $37.10 | $31.60 | $29.90 | $33 |
Change in reserve | 2.9 | 3.5 | 16.4 | 13.3 |
Cash payments | -2.8 | -4.5 | -8.5 | -15.3 |
Translation difference | 0.6 | 0.7 | 0 | 0.3 |
Reserve at end of the period | $37.80 | $31.30 | $37.80 | $31.30 |
Components_of_Total_Net_Period
Components of Total Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $5.60 | $4.90 | $16.90 | $14.60 |
Interest cost | 4.9 | 4.7 | 14.8 | 14.1 |
Expected return on plan assets | -3.9 | -3.5 | -11.7 | -10.5 |
Amortization prior service credit | -0.2 | -0.3 | -0.6 | -0.7 |
Amortization of actuarial loss | 3.1 | 2.3 | 9.2 | 6.7 |
Net Periodic Benefit Cost | $9.50 | $8.10 | $28.60 | $24.20 |
Equity_and_Equity_Units_Offeri1
Equity and Equity Units Offering - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2012 | Mar. 30, 2009 | Jun. 30, 2010 | Sep. 30, 2013 | Mar. 15, 2012 | |
Y | |||||
Equity and Equity Units Offering Disclosure [Line Items] | |||||
Common shares sold from treasury stock | 14,700,000 | ||||
Equity units number issued, units | 6,600,000 | ||||
Common shares sold aggregate stated amount | $106,273,000 | $235,000,000 | |||
Equity units sold aggregate public offering price | 165,000,000 | ||||
Forward purchase price contract obligation per share | $25 | ||||
Undivided beneficial ownership interest | 2.50% | ||||
Senior notes principal amount | 1,000 | ||||
Senior notes interest rate | 8.00% | 3.85% | |||
Purchase contract settlement date | 30-Apr-12 | ||||
Senior notes maturity | 2014 | ||||
Fair value of purchase contract per unit at issuance | $3.75 | ||||
Senior notes fair value, per note | $21.25 | ||||
Period at end of which notes will be stated on balance sheet at face amount, in years | 3 | ||||
Allocation of underwriting commissions as deferred charges | 1.00% | ||||
Underwriting commissions paid, total | 6.00% | ||||
Underwriting commissions allocated to equity forward | 5.00% | ||||
Senior notes, final maturity date after which reset interest rate is applicable | 30-Apr-14 | ||||
Common shares issued in exchange for equity units | 2,300,000 | ||||
Equity units outstanding | 4,250,920 | ||||
Senior notes coupon yield per annum | 2.88% | ||||
Shares issued in exchange under purchase contracts | 5,800,000 |
Schedule_of_NonControlling_Int
Schedule of Non-Controlling Interest (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | $3,905.80 | $3,580.90 | $3,776.10 | $3,349 |
Total Comprehensive Income: | ||||
Net income | 124.9 | 118 | 389.4 | 345.6 |
Foreign currency translation | 39 | 45.5 | -15.6 | 24.3 |
Defined benefit pension plan | 1.8 | 1.3 | 5.1 | 3.6 |
Comprehensive income | 165.7 | 164.8 | 378.9 | 373.5 |
Common Stock incentives | 8.8 | 3.6 | 21.4 | 12.5 |
Cash dividends declared | -48 | -47.7 | -143.7 | -137.4 |
Common stock issuance, net | 104.8 | |||
Dividends paid to non-controlling interests on subsidiary shares | 0 | -0.4 | -0.8 | |
Balance at end of period | 4,032.30 | 3,701.60 | 4,032.30 | 3,701.60 |
Parent | ||||
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | 3,886.10 | 3,565.60 | 3,758.60 | 3,333.40 |
Total Comprehensive Income: | ||||
Net income | 123.9 | 117.5 | 386.1 | 344.4 |
Foreign currency translation | 39 | 45.2 | -15.9 | 24.2 |
Defined benefit pension plan | 1.8 | 1.3 | 5.1 | 3.6 |
Comprehensive income | 164.7 | 164 | 375.3 | 372.2 |
Common Stock incentives | 8.8 | 3.6 | 21.4 | 12.5 |
Cash dividends declared | -48 | -47.7 | -143.7 | -137.4 |
Common stock issuance, net | 104.8 | |||
Balance at end of period | 4,011.60 | 3,685.50 | 4,011.60 | 3,685.50 |
Noncontrolling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | 19.7 | 15.3 | 17.5 | 15.6 |
Total Comprehensive Income: | ||||
Net income | 1 | 0.5 | 3.3 | 1.2 |
Foreign currency translation | 0 | 0.3 | 0.3 | 0.1 |
Comprehensive income | 1 | 0.8 | 3.6 | 1.3 |
Dividends paid to non-controlling interests on subsidiary shares | 0 | -0.4 | -0.8 | |
Balance at end of period | $20.70 | $16.10 | $20.70 | $16.10 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 06, 2012 | Sep. 30, 2013 | Feb. 29, 2012 | Feb. 29, 2012 | Dec. 31, 2009 | Dec. 31, 2009 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | Defendant | Normandy Precision Components Case | Normandy Precision Components Case | Normandy Precision Components Case | Normandy Precision Components Case | United States District Court for Eastern District of Michigan | Ontario and Quebec Superior Court | |
Employee | USD ($) | EUR (€) | USD ($) | EUR (€) | Defendant | Defendant | ||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Damages sought | $16 | € 12 | ||||||
Damages awarded | 7.5 | 5.6 | ||||||
Damages paid value | 5.6 | |||||||
Total additional to be paid | 1.3 | 1 | ||||||
Cash paid for litigation settlements | $14.50 | |||||||
Number of employees impacted | 3 | |||||||
Number of defendants in antitrust class actions | 16 | |||||||
Number of pending antitrust class actions | 13 | 3 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share Basic And Diluted [Line Items] | |||
Potentially dilutive shares not included in the computation of the diluted EPS | 0 | 0 | |
Shares from treasury stock utilized by Stock Incentive Plan | 0.4 | 0.4 |
Schedule_of_Actual_Weighted_Av
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||||||
Weighted average shares basic | 95.8 | 95.4 | 95.7 | 92.8 | ||
- stock options/share awards | 0.4 | 0.3 | 0.3 | 0.3 | ||
- equity units | 0 | [1] | 1.8 | [1] | ||
Weighted average shares diluted | 96.2 | 95.7 | 96 | 94.9 | ||
[1] | For the three and nine months ended September 30, 2012, 0.0 million and 1.8 million shares, respectively, were included in the dilutive weighted average share amount related to the Equity Units. The number of shares that were issued on April 30, 2012, related to the final settlement of the Equity Units, was approximately 5.8 million. This reflects the effect from the exchange of Equity Units discussed in Note 9 and takes into account all previously paid dividends, including the dividend paid in the first quarter 2012. |
Schedule_of_Actual_Weighted_Av1
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Parenthetical) (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | ||
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | |||||
Shares included in dilutive weighted average share amounts related to equity units | 0 | [1] | 1.8 | [1] | |
Number of shares to be issued for equity units | 5.8 | ||||
[1] | For the three and nine months ended September 30, 2012, 0.0 million and 1.8 million shares, respectively, were included in the dilutive weighted average share amount related to the Equity Units. The number of shares that were issued on April 30, 2012, related to the final settlement of the Equity Units, was approximately 5.8 million. This reflects the effect from the exchange of Equity Units discussed in Note 9 and takes into account all previously paid dividends, including the dividend paid in the first quarter 2012. |