Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 20, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Ingredion Inc | ' | ' |
Entity Central Index Key | '0001046257 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $4,844,000,000 |
Entity Common Stock, Shares Outstanding | ' | 74,492,000 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Income | ' | ' | ' |
Net sales before shipping and handling costs | $6,653 | $6,868 | $6,544 |
Less - shipping and handling costs | 325 | 336 | 325 |
Net sales | 6,328 | 6,532 | 6,219 |
Cost of sales | 5,197 | 5,294 | 5,093 |
Gross profit | 1,131 | 1,238 | 1,126 |
Selling, general and administrative expenses | 534 | 556 | 543 |
Other (income) - net | -16 | -22 | -98 |
Restructuring/impairment charges | ' | 36 | 10 |
Operating expenses | 518 | 570 | 455 |
Operating income | 613 | 668 | 671 |
Financing costs-net | 66 | 67 | 78 |
Income before income taxes | 547 | 601 | 593 |
Provision for income taxes | 144 | 167 | 170 |
Net income | 403 | 434 | 423 |
Less - Net income attributable to non-controlling interests | 7 | 6 | 7 |
Net income attributable to Ingredion | $396 | $428 | $416 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 77 | 76.5 | 76.4 |
Diluted (in shares) | 78.3 | 78.2 | 78.2 |
Earnings per common share of Ingredion: | ' | ' | ' |
Basic (in dollars per share) | $5.14 | $5.59 | $5.44 |
Diluted (in dollars per share) | $5.05 | $5.47 | $5.32 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Net income | $403 | $434 | $423 |
Other comprehensive income: | ' | ' | ' |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19, respectively | -64 | 43 | 29 |
Reclassification adjustment for losses (gains) on cash-flow hedges included in net income, net of income tax effect of $19, $15 and $61, respectively | 41 | -25 | -105 |
Actuarial gains (losses) on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $32, $27 and $4, respectively | 63 | -56 | -10 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, net of income tax effect of $3, $2 and $5, respectively | 5 | 5 | -11 |
Unrealized gain on investment, net of income tax effect | 1 | ' | ' |
Currency translation adjustment | -154 | -29 | -126 |
Comprehensive income | 295 | 372 | 200 |
Less: Comprehensive income attributable to non-controlling interests | 7 | 6 | 7 |
Comprehensive income attributable to Ingredion | $288 | $366 | $193 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Gains (losses) on cash-flow hedges, income tax effect | ($29) | $25 | $19 |
Reclassification adjustment for losses (gains) on cash flow hedges included in net income, income tax effect | -19 | 15 | 61 |
Actuarial gains (losses) on pension and other postretirement obligations, settlements and plan amendments, income tax effect | 32 | -27 | -4 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, income tax effect | ($3) | ($2) | $5 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $574 | $609 |
Short-term investments | ' | 19 |
Accounts receivable - net | 832 | 814 |
Inventories | 723 | 834 |
Prepaid expenses | 17 | 19 |
Deferred income tax assets | 68 | 65 |
Total current assets | 2,214 | 2,360 |
Property, plant and equipment, at cost | ' | ' |
Land | 173 | 175 |
Buildings | 696 | 698 |
Machinery and equipment | 4,063 | 4,035 |
Property, plant and equipment - gross | 4,932 | 4,908 |
Less: accumulated depreciation | -2,776 | -2,715 |
Property, plant and equipment - net | 2,156 | 2,193 |
Goodwill | 535 | 557 |
Other intangible assets (less accumulated amortization of $49 and $35, respectively) | 311 | 329 |
Deferred income tax assets | 15 | 21 |
Investments | 11 | 10 |
Other assets | 118 | 122 |
Total assets | 5,360 | 5,592 |
Current liabilities | ' | ' |
Short-term borrowings | 93 | 76 |
Deferred income taxes | ' | 2 |
Accounts payable | 458 | 590 |
Accrued liabilities | 269 | 265 |
Total current liabilities | 820 | 933 |
Non-current liabilities | 163 | 297 |
Long-term debt | 1,717 | 1,724 |
Deferred income taxes | 207 | 160 |
Share-based payments subject to redemption | 24 | 19 |
Ingredion stockholders' equity | ' | ' |
Preferred stock - authorized 25,000,000 shares-$0.01 par value, none issued | ' | ' |
Common stock - authorized 200,000,000 shares-$0.01 par value, 77,672,670 and 77,141,691 issued at December 31, 2013 and 2012, respectively | 1 | 1 |
Additional paid-in capital | 1,166 | 1,148 |
Less - Treasury stock (common stock: 3,361,180 and 109,768 shares at December 31, 2013 and 2012, respectively) at cost | -225 | -6 |
Accumulated other comprehensive loss | -583 | -475 |
Retained earnings | 2,045 | 1,769 |
Total Ingredion stockholders' equity | 2,404 | 2,437 |
Non-controlling interests | 25 | 22 |
Total equity | 2,429 | 2,459 |
Total liabilities and equity | $5,360 | $5,592 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Other intangible assets, accumulated amortization (in dollars) | $49 | $35 |
Preferred stock, authorized shares | 25,000,000 | 25,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, issued shares | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 77,672,670 | 77,141,691 |
Treasury stock, shares | 3,361,180 | 109,768 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity and Redeemable Equity (USD $) | Total | Share-based Payments Subject to Redemption | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interests |
In Millions, unless otherwise specified | ||||||||
Balance at Dec. 31, 2010 | ' | ' | $1 | $1,119 | ($1) | ($190) | $1,046 | $26 |
Balance Share-based Payments Subject to Redemption at Dec. 31, 2010 | ' | 9 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Ingredion | 416 | ' | ' | ' | ' | ' | 416 | ' |
Net income attributable to non-controlling interests | -7 | ' | ' | ' | ' | ' | ' | 7 |
Dividends declared | ' | ' | ' | ' | ' | ' | -50 | -4 |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19 for the year ended 2013, 2012 and 2011, respectively | 29 | ' | ' | ' | ' | 29 | ' | ' |
Amount of (gains) losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19, $15 and $61 for the year ended 2013, 2012 and 2011 respectively | -105 | ' | ' | ' | ' | -105 | ' | ' |
Repurchases of common stock | ' | ' | ' | ' | -48 | ' | ' | ' |
Issuance of common stock on exercise of stock options | ' | ' | ' | 11 | 7 | ' | ' | ' |
Stock option expense | ' | ' | ' | 6 | ' | ' | ' | ' |
Other share-based compensation | ' | 6 | ' | 4 | ' | ' | ' | ' |
Excess tax benefit on share-based compensation | ' | ' | ' | 6 | ' | ' | ' | ' |
Currency translation adjustment | -126 | ' | ' | ' | ' | -126 | ' | ' |
Actuarial gains (losses) on postretirement obligations, settlements and plan amendments, net of income tax of $32, $27 and $4 for the year ended 2013, 2012 and 2011, respectively | -10 | ' | ' | ' | ' | -10 | ' | ' |
(Gains) losses related to postretirement obligations reclassified to earnings, net of income tax of $3, $2 and $5 for the year ended 2013, 2012 and 2011, respectively | -11 | ' | ' | ' | ' | -11 | ' | ' |
Balance at Dec. 31, 2011 | ' | ' | 1 | 1,146 | -42 | -413 | 1,412 | 29 |
Balance Share-based Payments Subject to Redemption at Dec. 31, 2011 | ' | 15 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Ingredion | 428 | ' | ' | ' | ' | ' | 428 | ' |
Net income attributable to non-controlling interests | -6 | ' | ' | ' | ' | ' | ' | 6 |
Dividends declared | ' | ' | ' | ' | ' | ' | -71 | -4 |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19 for the year ended 2013, 2012 and 2011, respectively | 43 | ' | ' | ' | ' | 43 | ' | ' |
Amount of (gains) losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19, $15 and $61 for the year ended 2013, 2012 and 2011 respectively | -25 | ' | ' | ' | ' | -25 | ' | ' |
Repurchases of common stock | ' | ' | ' | ' | -18 | ' | ' | ' |
Issuance of common stock on exercise of stock options | ' | ' | ' | -13 | 47 | ' | ' | ' |
Stock option expense | ' | ' | ' | 7 | ' | ' | ' | ' |
Other share-based compensation | ' | 4 | ' | -3 | 7 | ' | ' | ' |
Excess tax benefit on share-based compensation | ' | ' | ' | 11 | ' | ' | ' | ' |
Currency translation adjustment | -29 | ' | ' | ' | ' | -29 | ' | ' |
Sale of non-controlling interests | ' | ' | ' | ' | ' | ' | ' | -7 |
Actuarial gains (losses) on postretirement obligations, settlements and plan amendments, net of income tax of $32, $27 and $4 for the year ended 2013, 2012 and 2011, respectively | -56 | ' | ' | ' | ' | -56 | ' | ' |
(Gains) losses related to postretirement obligations reclassified to earnings, net of income tax of $3, $2 and $5 for the year ended 2013, 2012 and 2011, respectively | 5 | ' | ' | ' | ' | 5 | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | -2 |
Balance at Dec. 31, 2012 | 2,459 | ' | 1 | 1,148 | -6 | -475 | 1,769 | 22 |
Balance Share-based Payments Subject to Redemption at Dec. 31, 2012 | 19 | 19 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Ingredion | 396 | ' | ' | ' | ' | ' | 396 | ' |
Net income attributable to non-controlling interests | -7 | ' | ' | ' | ' | ' | ' | 7 |
Dividends declared | ' | ' | ' | ' | ' | ' | -120 | -4 |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19 for the year ended 2013, 2012 and 2011, respectively | -64 | ' | ' | ' | ' | -64 | ' | ' |
Amount of (gains) losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19, $15 and $61 for the year ended 2013, 2012 and 2011 respectively | 41 | ' | ' | ' | ' | 41 | ' | ' |
Repurchases of common stock | ' | ' | ' | ' | -228 | ' | ' | ' |
Issuance of common stock on exercise of stock options | ' | ' | ' | 8 | 6 | ' | ' | ' |
Stock option expense | ' | ' | ' | 6 | ' | ' | ' | ' |
Other share-based compensation | ' | 5 | ' | -1 | 3 | ' | ' | ' |
Excess tax benefit on share-based compensation | ' | ' | ' | 5 | ' | ' | ' | ' |
Currency translation adjustment | -154 | ' | ' | ' | ' | -154 | ' | ' |
Actuarial gains (losses) on postretirement obligations, settlements and plan amendments, net of income tax of $32, $27 and $4 for the year ended 2013, 2012 and 2011, respectively | 63 | ' | ' | ' | ' | 63 | ' | ' |
(Gains) losses related to postretirement obligations reclassified to earnings, net of income tax of $3, $2 and $5 for the year ended 2013, 2012 and 2011, respectively | 5 | ' | ' | ' | ' | 5 | ' | ' |
Unrealized gain on investment, net of income tax effect | 1 | ' | ' | ' | ' | 1 | ' | ' |
Balance at Dec. 31, 2013 | 2,429 | ' | 1 | 1,166 | -225 | -583 | 2,045 | 25 |
Balance Share-based Payments Subject to Redemption at Dec. 31, 2013 | $24 | $24 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity and Redeemable Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Equity and Redeemable Equity | ' | ' | ' |
Gains (losses) on cash flow hedges, income tax effect | ($29) | $25 | $19 |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | -19 | 15 | 61 |
Actuarial gain (loss) on postretirement obligations, settlements and plan amendments, income tax | 32 | -27 | -4 |
(Gains) losses related to postretirement obligations reclassified to earnings, income tax | ($3) | ($2) | $5 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash provided by operating activities: | ' | ' | ' |
Net income | $403 | $434 | $423 |
Non-cash charges (credits) to net income: | ' | ' | ' |
Depreciation and amortization | 194 | 211 | 211 |
Deferred income taxes | 30 | -3 | 18 |
Write-off of impaired assets | ' | 24 | ' |
Gain from change in benefit plans | ' | -5 | -30 |
Changes in working capital: | ' | ' | ' |
Accounts receivable and prepaid expenses | -69 | 22 | -134 |
Inventories | 76 | -69 | -149 |
Accounts payable and accrued liabilities | -78 | 80 | 27 |
Decrease (increase) in margin accounts | 14 | ' | -78 |
Other | 49 | 38 | 12 |
Cash provided by operating activities | 619 | 732 | 300 |
Cash used for investing activities: | ' | ' | ' |
Capital expenditures | -298 | -313 | -263 |
Short-term investments | 19 | -18 | ' |
Proceeds from disposal of plants and properties | 3 | 9 | 3 |
Payments for acquisitions | ' | ' | -15 |
Other | 2 | ' | 2 |
Cash used for investing activities | -274 | -322 | -273 |
Cash provided by (used for) financing activities: | ' | ' | ' |
Payments on debt | -53 | -462 | -22 |
Proceeds from borrowings | 21 | 312 | 182 |
Debt issuance costs | ' | -5 | ' |
Dividends paid (including to non-controlling interests) | -112 | -69 | -50 |
Repurchases of common stock | -228 | -18 | -48 |
Issuance of common stock | 14 | 34 | 18 |
Excess tax benefit on share-based compensation | 5 | 11 | 6 |
Cash provided by (used for) financing activities | -353 | -197 | 86 |
Effects of foreign exchange rate changes on cash | -27 | -5 | -14 |
Increase (decrease) in cash and cash equivalents | -35 | 208 | 99 |
Cash and cash equivalents, beginning of period | 609 | 401 | 302 |
Cash and cash equivalents, end of period | $574 | $609 | $401 |
Description_of_the_Business
Description of the Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of the Business | ' |
Description of the Business | ' |
NOTE 1- Description of the Business | |
Ingredion Incorporated (“the Company”) was founded in 1906 and became an independent and public company as of December 31, 1997. The Company manufactures and sells starches and sweeteners derived from the wet milling and processing of corn and other starch-based materials to a wide range of industries, both domestically and internationally. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
NOTE 2 — Summary of Significant Accounting Policies | ||||||||||||||||||||||||
Basis of presentation — The consolidated financial statements consist of the accounts of the Company, including all significant subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. | ||||||||||||||||||||||||
The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the value of purchase consideration, valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, legal contingencies, guarantee obligations, and assumptions used in the calculation of income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management will adjust such estimates and assumptions when facts and circumstances dictate. Foreign currency devaluations, corn price volatility, access to difficult credit markets and adverse changes in the global economic environment have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. | ||||||||||||||||||||||||
Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the US dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of accumulated other comprehensive income (loss). Income statement accounts are translated at the average exchange rate during the period. For foreign subsidiaries where the US dollar is the functional currency, monetary assets and liabilities are translated at current exchange rates with the related adjustment included in net income. Non-monetary assets and liabilities are translated at historical exchange rates. Although the Company hedges the predominance of its transactional foreign exchange risk (see Note 4), the Company incurs foreign currency transaction gains/losses relating to assets and liabilities that are denominated in a currency other than the functional currency. For 2013, 2012 and 2011, the Company incurred foreign currency transaction losses of $3 million, less than $1 million and $2 million, respectively. The Company’s accumulated other comprehensive loss included in equity on the Consolidated Balance Sheets includes cumulative translation loss adjustments of $489 million and $335 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Cash and cash equivalents — Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value. | ||||||||||||||||||||||||
Inventories — Inventories are stated at the lower of cost or net realizable value. Costs are determined using the weighted average method. | ||||||||||||||||||||||||
Investments — Investments in the common stock of affiliated companies over which the Company does not exercise significant influence are accounted for under the cost method. The Company’s wholly-owned Canadian subsidiary has an investment that is accounted for under the cost method. The carrying value of this investment was $6 million at December 31, 2013 and 2012. Investments that enable the Company to exercise significant influence, but do not represent a controlling interest, are accounted for under the equity method; such investments are carried at cost, adjusted to reflect the Company’s proportionate share of income or loss, less dividends received. The Company did not have any investments accounted for under the equity method at December 31, 2013 or 2012. The Company also has equity interests in the CME Group Inc., which it classifies as available for sale securities. The investment is carried at fair value with unrealized gains and losses recorded to other comprehensive income. | ||||||||||||||||||||||||
The Company would recognize a loss on its investments when there is a loss in value of an investment that is other than temporary. In 2011, the Company sold its investment in Smurfit-Stone Container Corporation which had been accounted for as an available for sale security and recorded a nominal gain. | ||||||||||||||||||||||||
Property, plant and equipment and depreciation — Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is generally computed on the straight-line method over the estimated useful lives of depreciable assets, which range from 10 to 50 years for buildings and from 3 to 20 years for all other assets. Where permitted by law, accelerated depreciation methods are used for tax purposes. The Company reviews the recoverability of the net book value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. If this review indicates that the carrying values will not be recovered, the carrying values would be reduced to fair value and an impairment loss would be recognized. As required under accounting principles generally accepted in the United States, the impairment analysis for long-lived assets occurs before the goodwill impairment assessment described below. | ||||||||||||||||||||||||
Goodwill and other intangible assets — Goodwill ($535 million and $557 million at December 31, 2013 and 2012, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. The Company also has other intangible assets aggregating $311 million and $329 million at December 31, 2013 and 2012, respectively. The carrying amount of goodwill by geographic segment at December 31, 2013 and 2012 was as follows: | ||||||||||||||||||||||||
(in millions) | North | South | Asia | EMEA | Total | |||||||||||||||||||
America | America | Pacific | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 278 | $ | 101 | $ | 106 | $ | 77 | $ | 562 | ||||||||||||||
Impairment charges | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Currency translation | — | (6 | ) | — | 3 | (3 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Currency translation | — | (17 | ) | (7 | ) | 2 | (22 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 95 | $ | 225 | $ | 80 | $ | 679 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 78 | $ | 218 | $ | 82 | $ | 657 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
The following table summarizes the Company’s other intangible assets for the periods presented: | ||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | ||||||||||||||||
Amortization | Average | Amortization | Average | |||||||||||||||||||||
Useful | Useful | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||
(years) | (years) | |||||||||||||||||||||||
Trademarks/tradenames | $ | 132 | $ | — | $ | 132 | — | $ | 132 | $ | — | $ | 132 | — | ||||||||||
Customer relationships | 139 | (18 | ) | 121 | 25 | 143 | (13 | ) | 130 | 25 | ||||||||||||||
Technology | 83 | (27 | ) | 56 | 10 | 83 | (19 | ) | 64 | 10 | ||||||||||||||
Other | 6 | (4 | ) | 2 | 8 | 6 | (3 | ) | 3 | 8 | ||||||||||||||
Total other intangible assets | $ | 360 | $ | (49 | ) | $ | 311 | 19 | $ | 364 | $ | (35 | ) | $ | 329 | 19 | ||||||||
For definite-lived intangible assets, the Company recognizes the cost of such amortizable assets in operations over their estimated useful lives and evaluates the recoverability of the assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Amortization expense related to intangible assets was $14 million for each of the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Based on acquisitions completed through December 31, 2013, the Company expects intangible asset amortization expense for subsequent years to be approximately $14 million annually through 2018. | ||||||||||||||||||||||||
The Company assesses goodwill and other indefinite-lived intangible assets for impairment annually (or more frequently if impairment indicators arise). The Company has chosen to perform this annual impairment assessment as of October 1 of each year. The Company has completed the required impairment assessments and determined there to be no impairment in the fourth quarter of 2013. | ||||||||||||||||||||||||
In testing goodwill for impairment, the Company first assesses qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then the Company does not perform the two-step impairment test. If the Company concludes otherwise, then it performs the first step of the two-step impairment test as described in ASC Topic 350. In the first step, the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of its net assets, goodwill is not considered impaired and no further testing is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, a second step of the impairment assessment is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires a valuation of the reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of its goodwill, goodwill is deemed impaired and is written down to the extent of the difference. Based on the results of the annual assessment, the Company concluded that as of October 1, 2013 (although the estimated fair values of the Southern Cone of South America and Brazil reporting units decreased compared to the 2012 assessment due to recent trends experienced in these reporting units), it was more likely than not that the fair value of all reporting units was greater than their carrying value. | ||||||||||||||||||||||||
In testing indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is impaired. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, then it would not be required to compute the fair value of the indefinite-lived intangible asset. In the event the qualitative assessment leads the Company to conclude otherwise, then it would be required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test in accordance with ASC subtopic 350-30. In performing the qualitative analysis, the Company considers various factors including net sales derived from these intangibles and certain market and industry conditions. Based on the results of this qualitative assessment, the Company concluded that as of October 1, 2013, it was more likely than not that the fair value of the indefinite-lived intangible assets was greater than their carrying value. | ||||||||||||||||||||||||
Revenue recognition — The Company recognizes operating revenues at the time title to the goods and all risks of ownership transfer to the customer. This transfer is considered complete when a sales agreement is in place, delivery has occurred, pricing is fixed or determinable and collection is reasonably assured. In the case of consigned inventories, the title passes and the transfer of ownership risk occurs when the goods are used by the customer. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from revenues. | ||||||||||||||||||||||||
Hedging instruments — The Company uses derivative financial instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. Derivative financial instruments used by the Company consist of commodity futures and option contracts, forward currency contracts and options, interest rate swap agreements and treasury lock agreements. The Company enters into futures and option contracts, which are designated as hedges of specific volumes of commodities (corn and natural gas) that will be purchased in a future month. These derivative financial instruments are recognized in the Consolidated Balance Sheets at fair value. The Company has also entered into interest rate swap agreements that effectively convert the interest rate on certain fixed rate debt to a variable interest rate and, on certain variable rate debt, to a fixed interest rate. The Company periodically enters into treasury lock agreements to lock the benchmark rate for an anticipated fixed-rate borrowing. See also Note 4 and Note 5 of the notes to the consolidated financial statements for additional information. | ||||||||||||||||||||||||
On the date a derivative contract is entered into, the Company designates the derivative as either a hedge of variable cash flows to be paid related to interest on variable rate debt, as a hedge of market variation in the benchmark rate for a future fixed rate debt issue, as a hedge of foreign currency cash flows associated with certain forecasted commercial transactions or loans, or as a hedge of certain forecasted purchases of corn or natural gas used in the manufacturing process (“a cash-flow hedge”), or as a hedge of the fair value of certain debt obligations (“a fair-value hedge”). This process includes linking all derivatives that are designated as fair-value or cash-flow hedges to specific assets and liabilities on the Consolidated Balance Sheet, or to specific firm commitments or forecasted transactions. For all hedging relationships, the Company formally documents the hedging relationships and its risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed and a description of the method of measuring ineffectiveness. The Company also formally assesses both, at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. | ||||||||||||||||||||||||
Changes in the fair value of floating-to-fixed interest rate swaps, treasury locks or commodity futures and option contracts that are highly effective and that are designated and qualify as cash-flow hedges are recorded in other comprehensive income, net of applicable income taxes. Realized gains and losses associated with changes in the fair value of interest rate swaps and treasury locks are reclassified from accumulated other comprehensive income (“AOCI”) to the Consolidated Statement of Income over the life of the underlying debt. Gains and losses on hedges of foreign currency cash flows associated with certain forecasted commercial transactions or loans are reclassified from AOCI to the Consolidated Statement of Income when such transactions or obligations are settled. Gains and losses on commodity hedging contracts are reclassified from AOCI to the Consolidated Statement of Income when the finished goods produced using the hedged item are sold. The maximum term over which the Company hedges exposures to the variability of cash flows for commodity price risk is 24 months. Changes in the fair value of a fixed-to-floating interest rate swap agreement that is highly effective and that is designated and qualifies as a fair-value hedge, along with the loss or gain on the hedged debt obligation, are recorded in earnings. The ineffective portion of the change in fair value of a derivative instrument that qualifies as either a cash-flow hedge or a fair-value hedge is reported in earnings. | ||||||||||||||||||||||||
The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows or fair value of the hedged item, the derivative is de-designated as a hedging instrument because it is unlikely that a forecasted transaction will occur, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company continues to carry the derivative on the Consolidated Balance Sheet at its fair value, and gains and losses that were included in AOCI are recognized in earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective. | ||||||||||||||||||||||||
The Company uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage the transactional foreign exchange risk that is created when transactions not denominated in the functional currency of the operating unit are revalued. The changes in fair value of these derivative instruments and the offsetting changes in the value of the underlying non-functional currency denominated transactions are recorded in earnings on a monthly basis. | ||||||||||||||||||||||||
Stock-based compensation — The Company has a stock incentive plan that provides for stock-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units and performance shares to certain key employees. Compensation expense is recognized in the Consolidated Statements of Income for the Company’s stock-based employee compensation plan. The plan is more fully described in Note 10. | ||||||||||||||||||||||||
Earnings per common share — Basic earnings per common share is computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, which totaled 77.0 million for 2013, 76.5 million for 2012 and 76.4 million for 2011. Diluted earnings per share (EPS) is computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, including the dilutive effect of outstanding stock options and other instruments associated with long-term incentive compensation plans. The weighted average number of shares outstanding for diluted EPS calculations was 78.3 million, 78.2 million and 78.2 million for 2013, 2012 and 2011, respectively. In 2013, 2012 and 2011, options to purchase approximately 0.4 million, 0.9 million and 0.4 million shares of common stock, respectively, were excluded from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive. | ||||||||||||||||||||||||
Risks and uncertainties — The Company operates domestically and internationally. In each country, the business and assets are subject to varying degrees of risk and uncertainty. The Company insures its business and assets in each country against insurable risks in a manner that it deems appropriate. Because of this geographic dispersion, the Company believes that a loss from non-insurable events in any one country would not have a material adverse effect on the Company’s operations as a whole. Additionally, the Company believes there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect the Company’s results. | ||||||||||||||||||||||||
Recently adopted accounting standards — In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which requires new asset and liability offsetting disclosures for derivatives, repurchase agreements and security lending transactions to the extent that they are: (1) offset in the financial statements; or (2) subject to an enforceable master netting arrangement or similar agreement. This Update requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet and was effective for the Company in the first quarter of 2013. The Company’s derivative instruments are not offset in the financial statements and are not subject to right of offset provisions with our counterparties. Accordingly, this Update did not have a material impact on the Company’s 2013 Consolidated Financial Statements but could have an impact on future disclosures. Additional information about derivative instruments can be found in Note 4. | ||||||||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This Update does not change the current requirements for reporting net income or other comprehensive income in financial statements; however, it requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income for only amounts reclassified in their entirety in the same reporting period. This guidance was effective for annual periods beginning after December 15, 2012, and interim periods within those annual periods. The disclosures required by this Update are provided in Note 10. | ||||||||||||||||||||||||
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Asset Impairment Charges | ' |
Restructuring and Asset Impairment Charges | ' |
NOTE 3 — Restructuring and Asset Impairment Charges | |
In the second quarter of 2012, the Company decided to restructure its business operations in Kenya and to close its manufacturing plant in the country. As part of that decision, the Company recorded $20 million of restructuring charges to its Statement of Income consisting of an $8 million charge to realize the cumulative translation adjustment associated with the Kenyan operations, a $6 million fixed asset impairment charge, a $2 million charge to reduce certain working capital balances to net realizable value based on the announced closure, $2 million of costs primarily consisting of severance pay related to the termination of the majority of its employees in Kenya and $2 million of additional charges related to this restructuring. | |
As part of the Company’s ongoing strategic optimization, in the third quarter of 2012, the Company decided to exit its investment in Shouguang Golden Far East Modified Starch Co., Ltd (“GFEMS”), a non-wholly-owned consolidated subsidiary in China. In conjunction with that decision, the Company recorded a $4 million impairment charge to reduce the carrying value of GFEMS to its estimated net realizable value. The Company also recorded a $1 million charge for impaired assets in Colombia in 2012. The Company sold its interest in GFEMS in 2012 for $3 million in cash, which approximated the carrying value of the investment in GFEMS following the aforementioned impairment charge. | |
Additionally, as part of a manufacturing optimization program developed in conjunction with the acquisition of National Starch to improve profitability, in the second quarter of 2011 the Company committed to a plan to optimize its production capabilities at certain of its North American facilities. The plan was completed in October 2012. As a result, the Company recorded restructuring charges to write-off certain equipment by the plan completion date. These charges totaled $11 million and $10 million in 2012 and 2011, respectively, of which $10 million and $8 million represented accelerated depreciation on the equipment. | |
Financial_Instruments_Derivati
Financial Instruments, Derivatives and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Financial Instruments, Derivatives and Hedging Activities | ' | |||||||||||||||||||||||||
Financial Instruments, Derivatives and Hedging Activities | ' | |||||||||||||||||||||||||
NOTE 4 — Financial Instruments, Derivatives and Hedging Activities | ||||||||||||||||||||||||||
The Company is exposed to market risk stemming from changes in commodity prices (corn and natural gas), foreign currency exchange rates and interest rates. In the normal course of business, the Company actively manages its exposure to these market risks by entering into various hedging transactions, authorized under established policies that place clear controls on these activities. These transactions utilize exchange-traded derivatives or over-the-counter derivatives with investment-grade counterparties. Derivative financial instruments currently used by the Company consist of commodity futures, options and swap contracts, foreign currency forward contracts, swaps and options, and interest rate swaps. | ||||||||||||||||||||||||||
Commodity price hedging: The Company’s principal use of derivative financial instruments is to manage commodity price risk in North America relating to anticipated purchases of corn and natural gas to be used in the manufacturing process, generally over the next twelve to eighteen months. The Company maintains a commodity-price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity-price volatility. For example, the manufacturing of the Company’s products requires a significant volume of corn and natural gas. Price fluctuations in corn and natural gas cause the actual purchase price of corn and natural gas to differ from anticipated prices. | ||||||||||||||||||||||||||
To manage price risk related to corn purchases in North America, the Company uses corn futures and options contracts that trade on regulated commodity exchanges to lock in its corn costs associated with firm-priced customer sales contracts. The Company uses over-the-counter gas swaps to hedge a portion of its natural gas usage in North America. These derivative financial instruments limit the impact that volatility resulting from fluctuations in market prices will have on corn and natural gas purchases and have been designated as cash-flow hedges. Unrealized gains and losses associated with marking the commodity hedging contracts to market (fair value) are recorded as a component of other comprehensive income (“OCI”) and included in the equity section of the Consolidated Balance Sheets as part of AOCI. These amounts are subsequently reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective. The Company assesses the effectiveness of a commodity hedge contract based on changes in the contract’s fair value. The changes in the market value of such contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in the price of the hedged items. The amounts representing the ineffectiveness of these cash- flow hedges are not significant. | ||||||||||||||||||||||||||
At December 31, 2013, AOCI included $32 million of losses, net of tax of $15 million, pertaining to commodities-related derivative instruments designated as cash-flow hedges. At December 31, 2012, AOCI included $7 million of losses, net of tax of $4 million, pertaining to commodities-related derivative instruments designated as cash-flow hedges. | ||||||||||||||||||||||||||
Interest rate hedging: The Company assesses its exposure to variability in interest rates by identifying and monitoring changes in interest rates that may adversely impact future cash flows and the fair value of existing debt instruments, and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate risk attributable to both the Company’s outstanding and forecasted debt obligations as well as the Company’s offsetting hedge positions. The risk management control systems involve the use of analytical techniques, including sensitivity analysis, to estimate the expected impact of changes in interest rates on future cash flows and the fair value of the Company’s outstanding and forecasted debt instruments. | ||||||||||||||||||||||||||
Derivative financial instruments that have been used by the Company to manage its interest rate risk consist of Treasury Lock agreements (“T-Locks”) and interest rate swaps. The Company periodically enters into T-Locks to fix the benchmark component of the interest rate to be established for certain planned fixed-rate debt issuances. The T-Locks are designated as hedges of the variability in cash flows associated with future interest payments caused by market fluctuations in the benchmark interest rate until the fixed interest rate is established, and are accounted for as cash-flow hedges. Accordingly, changes in the fair value of the T-Locks are recorded to AOCI until the consummation of the underlying debt offering, at which time any realized gain (loss) is amortized to earnings over the life of the debt. The net gain or loss recognized in earnings during 2013, 2012 and 2011 was not significant. The Company has also, from time to time, entered into interest rate swap agreements that effectively converted the interest rate on certain fixed-rate debt to a variable rate. These swaps called for the Company to receive interest at a fixed rate and to pay interest at a variable rate, thereby creating the equivalent of variable-rate debt. The Company designated these interest rate swap agreements as hedges of the changes in fair value of the underlying debt obligation attributable to changes in interest rates and accounted for them as fair-value hedges. Changes in the fair value of interest rate swaps designated as hedging instruments that effectively offset the variability in the fair value of outstanding debt obligations are reported in earnings. These amounts offset the gain or loss (that is, the change in fair value) of the hedged debt instrument that is attributable to changes in interest rates (that is, the hedged risk) which is also recognized in earnings. The Company did not have any T-Locks outstanding at December 31, 2013 or 2012. At December 31, 2013, AOCI included $8 million of losses (net of income taxes of $5 million) related to settled T-Locks. At December 31, 2012, AOCI included $10 million of losses (net of income taxes of $6 million) related to settled T-Locks. These deferred losses are being amortized to financing costs over the terms of the senior notes with which they are associated. | ||||||||||||||||||||||||||
On March 25, 2011, the Company entered into interest rate swap agreements that effectively convert the interest rate on the Company’s 3.2 percent $350 million senior notes due November 1, 2015 to a variable rate. These swap agreements call for the Company to receive interest at a fixed rate (3.2 percent) and to pay interest at a variable rate based on the six-month US dollar LIBOR rate plus a spread. The Company has designated these interest rate swap agreements as hedges of the changes in fair value of the underlying debt obligation attributable to changes in interest rates and accounts for them as fair-value hedges. The fair value of these interest rate swap agreements at December 31, 2013 and 2012 approximated $13 million and $20 million, respectively, and is reflected in the Consolidated Balance Sheets within other assets, with an offsetting amount recorded in long-term debt to adjust the carrying amount of the hedged debt obligation. | ||||||||||||||||||||||||||
Foreign currency hedging: Due to the Company’s global operations, including many emerging markets, it is exposed to fluctuations in foreign currency exchange rates. As a result, the Company has exposure to translational foreign exchange risk when its foreign operation results are translated to US dollars and to transactional foreign exchange risk when transactions not denominated in the functional currency of the operating unit are revalued. The Company primarily uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage its transactional foreign exchange risk. At December 31, 2013, the Company had foreign currency forward sales contracts with an aggregate notional amount of $147 million and foreign currency forward purchase contracts with an aggregate notional amount of $78 million that hedged transactional exposures. At December 31, 2012, the Company had foreign currency forward sales contracts with an aggregate notional amount of $268 million and foreign currency forward purchase contracts with an aggregate notional amount of $167 million that hedged transactional exposures. The fair values of these derivative instruments at both December 31, 2013 and 2012 are liabilities of $5 million. | ||||||||||||||||||||||||||
The Company also has foreign currency derivative instruments that hedge certain foreign currency transactional exposures and are designated as cash-flow hedges. At December 31, 2013, AOCI included $1 million of net gains, net of income taxes, associated with these hedges. Such cash-flow hedges were not material at December 31, 2012. | ||||||||||||||||||||||||||
By using derivative financial instruments to hedge exposures, the Company exposes itself to credit risk and market risk. Credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The Company minimizes the credit risk in derivative instruments by entering into over-the-counter transactions only with investment grade counterparties or by utilizing exchange-traded derivatives. Market risk is the adverse effect on the value of a financial instrument that results from a change in commodity prices, interest rates or foreign exchange rates. The market risk associated with commodity-price, interest rate or foreign exchange contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. | ||||||||||||||||||||||||||
The fair value and balance sheet location of the Company’s derivative instruments accounted for as cash-flow hedges are presented below: | ||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Derivatives designated as | Balance Sheet | At | At | Balance Sheet | At | At | ||||||||||||||||||||
hedging instruments: | Location | December 31, | December 31, | Location | December 31, | December 31, | ||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Commodity and foreign currency contracts | Accounts receivable-net | $ | 2 | $ | 5 | Accounts payable and accrued liabilities | $ | 27 | $ | 34 | ||||||||||||||||
Commodity and foreign currency contracts | Other assets | 5 | — | Non-current liabilities | — | 6 | ||||||||||||||||||||
Total | $ | 7 | $ | 5 | $ | 27 | $ | 40 | ||||||||||||||||||
At December 31, 2013, the Company had outstanding futures and option contracts that hedged the forecasted purchase of approximately 68 million bushels of corn. Also at December 31, 2013, the Company had outstanding swap and option contracts that hedged the forecasted purchase of approximately 12 million mmbtu’s of forecasted natural gas. The Company is unable to directly hedge price risk related to co-product sales; however, it occasionally enters into hedges of soybean oil (a competing product to corn oil) in order to mitigate the price risk of corn oil sales. No such hedges were in place at December 31, 2013. | ||||||||||||||||||||||||||
Additional information relating to the Company’s derivative instruments is presented below (in millions, pre-tax): | ||||||||||||||||||||||||||
Amount of Gains (Losses) | Amount of Gains (Losses) | |||||||||||||||||||||||||
Recognized in OCI on Derivatives | Reclassified from AOCI into Income | |||||||||||||||||||||||||
Derivatives in | Year Ended | Year Ended | Year Ended | Location of Gains | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Cash-Flow | December 31, | December 31, | December 31, | (Losses) | December 31, | December 31, | December 31, | |||||||||||||||||||
Hedging | 2013 | 2012 | 2011 | Reclassified from | 2013 | 2012 | 2011 | |||||||||||||||||||
Relationships | AOCI | |||||||||||||||||||||||||
into Income | ||||||||||||||||||||||||||
Commodity and foreign currency contracts | $ | (93 | ) | $ | 68 | $ | 48 | Cost of Sales | $ | (57 | ) | $ | 43 | $ | 169 | |||||||||||
Interest rate contracts | — | — | — | Financing costs, net | (3 | ) | (3 | ) | (3 | ) | ||||||||||||||||
Total | $ | (93 | ) | $ | 68 | $ | 48 | $ | (60 | ) | $ | 40 | $ | 166 | ||||||||||||
At December 31, 2013, AOCI included approximately $31 million of losses, net of income taxes of $15 million, on commodities-related derivative instruments designated as cash-flow hedges that are expected to be reclassified into earnings during the next twelve months. Transactions and events expected to occur over the next twelve months that will necessitate reclassifying these derivative losses to earnings include the sale of finished goods inventory that includes previously hedged purchases of corn and natural gas. The Company expects the losses to be offset by changes in the underlying commodities cost. Additionally at December 31, 2013, AOCI included $2 million of losses on settled T-Locks (net of income taxes of $1 million) and $2 million of losses related to foreign currency hedges (net of income taxes of $1 million), which are expected to be reclassified into earnings during the next twelve months. Cash-flow hedges discontinued during 2013 or 2012 were not material. | ||||||||||||||||||||||||||
Presented below are the fair values of the Company’s financial instruments and derivatives for the periods presented: | ||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available for sale securities | $ | 4 | $ | 4 | $ | — | $ | — | $ | 3 | $ | 3 | $ | — | $ | — | ||||||||||
Derivative assets | 20 | — | 20 | — | 25 | 5 | 20 | — | ||||||||||||||||||
Derivative liabilities | 32 | 22 | 10 | — | 45 | 24 | 21 | — | ||||||||||||||||||
Long-term debt | 1,813 | — | 1,813 | — | 1,914 | — | 1,914 | — | ||||||||||||||||||
Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. | ||||||||||||||||||||||||||
The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable and short-term borrowings approximate fair values. Commodity futures, options and swap contracts are recognized at fair value. Foreign currency forward contracts, swaps and options are also recognized at fair value. The fair value of the Company’s long-term debt is estimated based on quotations of major securities dealers who are market makers in the securities. Presented below are the carrying amounts and the fair values of the Company’s long-term debt at December 31, 2013 and 2012. | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
amount | value | amount | value | |||||||||||||||||||||||
4.625% senior notes, due November 1, 2020 | $ | 399 | $ | 420 | $ | 399 | $ | 448 | ||||||||||||||||||
3.2% senior notes, due November 1, 2015 | 350 | 363 | 350 | 368 | ||||||||||||||||||||||
1.8% senior notes, due September 25, 2017 | 298 | 296 | 298 | 300 | ||||||||||||||||||||||
6.625% senior notes, due April 15, 2037 | 257 | 281 | 257 | 315 | ||||||||||||||||||||||
6.0% senior notes, due April 15, 2017 | 200 | 219 | 200 | 227 | ||||||||||||||||||||||
5.62% senior notes due March 25, 2020 | 200 | 221 | 200 | 236 | ||||||||||||||||||||||
Fair value adjustment related to hedged fixed rate debt instrument | 13 | 13 | 20 | 20 | ||||||||||||||||||||||
Total long-term debt | $ | 1,717 | $ | 1,813 | $ | 1,724 | $ | 1,914 | ||||||||||||||||||
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ' | |||||||
NOTE 5 — Financing Arrangements | ||||||||
The Company had total debt outstanding of $1.81 billion and $1.80 billion at December 31, 2013 and 2012, respectively. Short-term borrowings at December 31, 2013 and 2012 consist primarily of amounts outstanding under various unsecured local country operating lines of credit. | ||||||||
Short-term borrowings consist of the following at December 31: | ||||||||
(in millions) | 2013 | 2012 | ||||||
Short-term borrowings in various currencies (at rates ranging from 1% to 11% for 2013 and 1% to 7% for 2012) | $ | 93 | $ | 76 | ||||
On October 22, 2012, the Company entered into a new five-year, senior unsecured $1 billion revolving credit agreement (the “Revolving Credit Agreement”). The Company paid fees of approximately $3 million relating to the new credit facility, which are being amortized to financing costs over the term of the facility. | ||||||||
Subject to certain terms and conditions, the Company may increase the amount of the revolving facility under the Revolving Credit Agreement by up to $250 million in the aggregate. All committed pro rata borrowings under the revolving facility will bear interest at a variable annual rate based on the LIBOR or prime rate, at the Company’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin based on the Company’s leverage ratio (as reported in the financial statements delivered pursuant to the Revolving Credit Agreement). | ||||||||
The Revolving Credit Agreement contains customary representations, warranties, covenants, events of default, terms and conditions, including limitations on liens, incurrence of debt, mergers and significant asset dispositions. The Company must also comply with a leverage ratio and an interest coverage ratio covenant. The occurrence of an event of default under the Revolving Credit Agreement could result in all loans and other obligations under the agreement being declared due and payable and the revolving credit facility being terminated. | ||||||||
The Company had no borrowings outstanding under its $1 billion revolving credit facility at December 31, 2013. In addition to borrowing availability under its Revolving Credit Agreement, the Company has approximately $487 million of unused operating lines of credit in the various foreign countries in which it operates. | ||||||||
On September 20, 2012, the Company issued 1.80 percent Senior Notes due September 25, 2017, in an aggregate principal amount of $300 million. These notes rank equally with the Company’s other senior unsecured debt. Interest on the notes is required to be paid semi-annually on March 25th and September 25th, beginning in March 2013. The notes are subject to optional prepayment by the Company at 100 percent of the principal amount plus interest up to the prepayment date and, in certain circumstances, a make-whole amount. The net proceeds from the sale of the notes of approximately $297 million were used to repay $205 million of borrowings under the Company’s previously existing $1 billion revolving credit facility and for general corporate purposes. The Company paid debt issuance costs of approximately $2 million relating to the notes, which are being amortized to financing costs over the life of the notes. | ||||||||
Long-term debt consists of the following at December 31: | ||||||||
(in millions) | 2013 | 2012 | ||||||
4.625% senior notes, due November 1, 2020, net of discount of $1 | $ | 399 | $ | 399 | ||||
3.2% senior notes, due November 1, 2015 | 350 | 350 | ||||||
1.8% senior notes, due September 25, 2017, net of discount of $2 | 298 | 298 | ||||||
6.625% senior notes, due April 15, 2037, net of premium of $8 and discount of $1 | 257 | 257 | ||||||
6.0% senior notes, due April 15, 2017 | 200 | 200 | ||||||
5.62% senior notes, due March 25, 2020 | 200 | 200 | ||||||
Fair value adjustment related to hedged fixed rate debt instrument | 13 | 20 | ||||||
Total | $ | 1,717 | $ | 1,724 | ||||
Less: current maturities | — | — | ||||||
Long-term debt | $ | 1,717 | $ | 1,724 | ||||
The Company’s long-term debt matures as follows: $350 million in 2015, $500 million in 2017, $600 million in 2020 and $250 million in 2037. | ||||||||
Ingredion Incorporated guarantees certain obligations of its consolidated subsidiaries. The amount of the obligations guaranteed aggregated $225 million and $93 million at December 31, 2013 and 2012, respectively. |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases | ' | ||||
Leases | ' | ||||
NOTE 6 - Leases | |||||
The Company leases rail cars, certain machinery and equipment, and office space under various operating leases. Rental expense under operating leases was $47 million, $45 million and $44 million in 2013, 2012 and 2011, respectively. Minimum lease payments due on non-cancellable leases existing at December 31, 2013 are shown below: | |||||
(in millions) | |||||
Year | Minimum Lease Payments | ||||
2014 | $ | 44 | |||
2015 | 37 | ||||
2016 | 33 | ||||
2017 | 25 | ||||
2018 | 19 | ||||
Balance thereafter | 38 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
NOTE 7 - Income Taxes | |||||||||||
The components of income before income taxes and the provision for income taxes are shown below: | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Income before income taxes: | |||||||||||
United States | $ | 138 | $ | 91 | $ | 158 | |||||
Foreign | 409 | 510 | 435 | ||||||||
Total | $ | 547 | $ | 601 | $ | 593 | |||||
Provision for income taxes: | |||||||||||
Current tax expense | |||||||||||
US federal | $ | 5 | $ | 3 | $ | 9 | |||||
State and local | 3 | 1 | 2 | ||||||||
Foreign | 106 | 166 | 141 | ||||||||
Total current | $ | 114 | $ | 170 | $ | 152 | |||||
Deferred tax expense (benefit) | |||||||||||
US federal | $ | 11 | $ | (5 | ) | $ | 10 | ||||
State and local | (2 | ) | 2 | 3 | |||||||
Foreign | 21 | — | 5 | ||||||||
Total deferred | $ | 30 | $ | (3 | ) | $ | 18 | ||||
Total provision for income taxes | $ | 144 | $ | 167 | $ | 170 | |||||
Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting basis and tax basis of assets and liabilities. Significant temporary differences at December 31, 2013 and 2012 are summarized as follows: | |||||||||||
(in millions) | 2013 | 2012 | |||||||||
Deferred tax assets attributable to: | |||||||||||
Employee benefit accruals | $ | 23 | $ | 19 | |||||||
Pensions and postretirement plans | 24 | 65 | |||||||||
Derivative contracts | 20 | 10 | |||||||||
Net operating loss carryforwards | 16 | 23 | |||||||||
Foreign tax credit carryforwards | 11 | 24 | |||||||||
Other | 42 | 53 | |||||||||
Gross deferred tax assets | $ | 136 | $ | 194 | |||||||
Valuation allowance | (3 | ) | (9 | ) | |||||||
Net deferred tax assets | $ | 133 | $ | 185 | |||||||
Deferred tax liabilities attributable to: | |||||||||||
Property, plant and equipment | $ | 200 | $ | 202 | |||||||
Identified intangibles | 57 | 59 | |||||||||
Gross deferred tax liabilities | $ | 257 | $ | 261 | |||||||
Net deferred tax liabilities | $ | 124 | $ | 76 | |||||||
Of the $16 million of tax-effected net operating loss carryforwards at December 31, 2013, approximately $12 million are in Korea, and are scheduled to expire in 2021. The Company anticipates full utilization of the Korean carryforward. The foreign tax credit carryforwards of $11 million at December 31, 2013, are scheduled to expire in 2015 through 2022. The Company anticipates full utilization of the foreign tax credits before any expiration. | |||||||||||
Income tax accounting requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making this assessment, management considers the level of historical taxable income, scheduled reversal of deferred tax liabilities, tax planning strategies, tax carryovers and projected future taxable income. At December 31, 2013, the Company maintains valuation allowances of $2 million for state loss carryforwards and $1 million for foreign net operating losses that management has determined will more likely than not expire prior to realization. | |||||||||||
A reconciliation of the US federal statutory tax rate to the Company’s effective tax rate follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Provision for tax at US statutory rate | 35 | % | 35 | % | 35 | % | |||||
Tax rate difference on foreign income | (5.28 | ) | (3.86 | ) | (3.62 | ) | |||||
State and local taxes — net | 0.35 | 0.79 | 0.58 | ||||||||
Change in valuation allowance — foreign tax credits | — | — | (0.62 | ) | |||||||
Reversal of Korea valuation allowance | — | (2.52 | ) | — | |||||||
Reversal of Chile valuation allowance | — | (0.06 | ) | (0.09 | ) | ||||||
Non-deductible National Starch acquisition costs | — | 0.04 | 0.04 | ||||||||
NAFTA Award | — | — | (3.45 | ) | |||||||
Other items — net | (3.74 | ) | (1.61 | ) | 0.83 | ||||||
Provision at effective tax rate | 26.33 | % | 27.78 | % | 28.67 | % | |||||
Provisions are made for estimated US and foreign income taxes, less credits that may be available, on distributions from foreign subsidiaries to the extent dividends are anticipated. No provision has been made for income taxes on approximately $1.931 billion of undistributed earnings of foreign subsidiaries at December 31, 2013, as such amounts are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable withholding taxes and credits, that would be due upon the repatriation of these earnings. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, for 2013 and 2012 is as follows: | |||||||||||
(in millions) | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 37 | $ | 35 | |||||||
Additions for tax positions related to prior years | 5 | 3 | |||||||||
Reductions for tax positions related to prior years | (6 | ) | — | ||||||||
Additions based on tax positions related to the current year | 1 | 6 | |||||||||
Reductions related to a lapse in the statute of limitations | (3 | ) | (7 | ) | |||||||
Balance at December 31 | $ | 34 | $ | 37 | |||||||
Of the $34 million at December 31, 2013, $19 million represents the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in future periods. The remaining $15 million would include an offset of $12 million of foreign tax credit carryforwards that would otherwise be created as part of the Canada and US audit process described below. In addition, $3 million of the unrecognized benefit would be offset by reversing a receivable recorded for indemnity claims that we would expect to collect from Akzo Nobel N.V. as part of the National Starch acquisition. | |||||||||||
The Company accounts for interest and penalties related to income tax matters in income tax expense. The Company has accrued $5 million of interest expense (net of $3 million interest income) and $1 million of penalties related to the unrecognized tax benefits as of December 31, 2013. The accrued interest expense was $2 million (net of $4 million interest income) and accrued penalties were $1 million as of December 31, 2012. | |||||||||||
The Company is subject to US federal income tax as well as income tax in multiple state and non-US jurisdictions. The US federal tax returns are subject to audit for the years 2010 to 2013. In general, the Company’s foreign subsidiaries remain subject to audit for years 2008 and later. | |||||||||||
In 2008 and 2007, the Company made deposits of approximately $13 million and $17 million, respectively, to the Canadian tax authorities relating to an ongoing audit examination. The Company did not make any additional deposits relating to this ongoing audit examination in 2013. The Company has settled $2 million of the claims and is in the process of pursuing relief from double taxation under the US and Canadian tax treaty for the remaining items raised in the audit. As a result, the US and Canadian tax returns are subject to adjustment from 2000 and forward for the specific issues being contested. During 2013, the countries reached a tentative agreement that would settle the issues for the years 2000 through 2003, such that it is reasonably possible that a conclusion could be reached within 12 months of December 31, 2013. The Company believes that it has adequately provided for the most likely outcome of the settlement process. | |||||||||||
It is also reasonably possible that the total amount of unrecognized tax benefits will increase or decrease within twelve months of December 31, 2013. The Company has classified $25 million of the unrecognized tax benefits as current because they are expected to be resolved within the next twelve months. Approximately $12 million relates to settling the US and Canada tax treaty matter discussed above, and the remainder relates to the lapsing of the statute of limitations in various jurisdictions. |
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Benefit Plans | ' | |||||||||||||
Benefit Plans | ' | |||||||||||||
NOTE 8 — Benefit Plans | ||||||||||||||
The Company and its subsidiaries sponsor noncontributory defined benefit pension plans covering substantially all employees in the United States and Canada, and certain employees in other foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat dollar amounts and years of service. The Company’s general funding policy is to make contributions to the plans in amounts that comply with minimum funding requirements and are within the limits of deductibility under current tax regulations. Certain foreign countries allow income tax deductions without regard to contribution levels, and the Company’s policy in those countries is to make contributions required by the terms of the applicable plan. | ||||||||||||||
US salaried employees are covered by a defined benefit “cash balance” pension plan, which provides benefits based on service credits to the participating employees’ accounts of between 3 percent and 10 percent of base salary, bonus and overtime. | ||||||||||||||
Included in the Company’s pension obligation are nonqualified supplemental retirement plans for certain key employees. All benefits provided under these plans are unfunded, and payments to plan participants are made by the Company. | ||||||||||||||
The Company also provides healthcare and/or life insurance benefits for retired employees in the United States, Canada and Brazil. Healthcare benefits for retirees outside of the United States, Canada, and Brazil are generally covered through local government plans. US salaried employees are provided with access to postretirement medical insurance through retirement healthcare spending accounts. US salaried employees accrue an account during employment, which can be used after employment to purchase postretirement medical insurance from the Company, Medigap or through Medicare HMO policies after age 65. The accounts are credited with a flat dollar amount and indexed for inflation annually during employment. The accounts also accrue interest credits using a rate equal to a specified amount above the yield on five-year US Treasury notes. Employees can use the amounts accumulated in these accounts, including credited interest, to purchase postretirement medical insurance. Employees become eligible for benefits when they meet minimum age and service requirements. The Company recognizes the cost of these postretirement benefits by accruing a flat dollar amount on an annual basis for each US salaried employee. | ||||||||||||||
Pension Obligation and Funded Status — The changes in pension benefit obligations and plan assets during 2013 and 2012, as well as the funded status and the amounts recognized in the Company’s Consolidated Balance Sheets related to the Company’s pension plans at December 31, 2013 and 2012, were as follows: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Benefit obligation | ||||||||||||||
At January 1 | $ | 323 | $ | 271 | $ | 272 | $ | 216 | ||||||
Service cost | 8 | 7 | 9 | 8 | ||||||||||
Interest cost | 11 | 12 | 12 | 13 | ||||||||||
Benefits paid | (14 | ) | (15 | ) | (12 | ) | (12 | ) | ||||||
Actuarial (gain) loss | (36 | ) | 48 | (15 | ) | 34 | ||||||||
Business combinations / transfers | 1 | — | — | 12 | ||||||||||
Curtailment / settlement | — | — | (2 | ) | (4 | ) | ||||||||
Foreign currency translation | — | — | (14 | ) | 5 | |||||||||
Benefit obligation at December 31 | $ | 293 | $ | 323 | $ | 250 | $ | 272 | ||||||
Fair value of plan assets | ||||||||||||||
At January 1 | $ | 257 | $ | 222 | $ | 189 | $ | 156 | ||||||
Actual return on plan assets | 41 | 27 | 16 | 12 | ||||||||||
Employer contributions | 13 | 23 | 43 | 15 | ||||||||||
Benefits paid | (14 | ) | (15 | ) | (12 | ) | (12 | ) | ||||||
Business combinations / transfers | — | — | — | 15 | ||||||||||
Foreign currency translation | — | — | (13 | ) | 3 | |||||||||
Fair value of plan assets at December 31 | $ | 297 | $ | 257 | $ | 223 | $ | 189 | ||||||
Funded status | $ | 4 | $ | (66 | ) | $ | (27 | ) | $ | (83 | ) | |||
Amounts recognized in the Consolidated Balance Sheets as of December 31, 2013 and 2012 were as follows: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Non-current asset | $ | 16 | $ | — | $ | 26 | $ | 1 | ||||||
Current liabilities | (1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||
Non-current liabilities | (11 | ) | (65 | ) | (50 | ) | (81 | ) | ||||||
Net asset (liability) recognized | $ | 4 | $ | (66 | ) | $ | (27 | ) | $ | (83 | ) | |||
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2013 and 2012 were as follows: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net actuarial loss | $ | 7 | $ | 67 | $ | 59 | $ | 92 | ||||||
Transition obligation | — | — | 2 | 2 | ||||||||||
Net amount recognized | $ | 7 | $ | 67 | $ | 61 | $ | 94 | ||||||
The decrease in net amount recognized in accumulated comprehensive loss at December 31, 2013, as compared to December 31, 2012, is largely due to an increase in discount rates used to measure the Company’s obligation under our pension plans in addition to higher than expected returns on plan assets for most plans. | ||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $493 million and $548 million at December 31, 2013 and 2012, respectively. | ||||||||||||||
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets is as follows: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Projected benefit obligation | $ | 10 | $ | 323 | $ | 52 | $ | 262 | ||||||
Accumulated benefit obligation | 8 | 314 | 42 | 227 | ||||||||||
Fair value of plan assets | — | 257 | 3 | 178 | ||||||||||
Components of net periodic benefit cost consist of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||
Service cost | $8 | $7 | $7 | $9 | $8 | $5 | ||||||||
Interest cost | 11 | 12 | 13 | 12 | 13 | 15 | ||||||||
Expected return on plan assets | (18 | ) | (16 | ) | (15 | ) | (12 | ) | (13 | ) | (11 | ) | ||
Amortization of actuarial loss | 2 | 1 | 1 | 5 | 4 | 2 | ||||||||
Amortization of transition obligation | — | — | — | — | 1 | 1 | ||||||||
Settlement/Curtailment | — | — | 2 | — | 1 | — | ||||||||
Net periodic benefit cost | $3 | $4 | $8 | $14 | $14 | $12 | ||||||||
For the US plans, the Company estimates that net periodic benefit cost for 2014 will include approximately $0.5 million relating to the amortization of its accumulated actuarial loss included in accumulated other comprehensive loss at December 31, 2013. | ||||||||||||||
For the non-US plans, the Company estimates that net periodic benefit cost for 2014 will include approximately $3 million relating to the amortization of its accumulated actuarial loss and $0.3 million relating to the amortization of transition obligation included in accumulated other comprehensive loss at December 31, 2013. | ||||||||||||||
Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets are recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees for active defined benefit pension plans and over the average remaining life of a plan’s active employees for frozen defined benefit pension plans. | ||||||||||||||
Total amounts recorded in other comprehensive income and net periodic benefit cost during 2013 was as follows: | ||||||||||||||
(in millions, pre-tax) | US Plans | Non-US Plans | ||||||||||||
Net actuarial gain | $ | (58 | ) | $ | (23 | ) | ||||||||
Amortization of actuarial loss | (2 | ) | (5 | ) | ||||||||||
Foreign currency translation | — | (5 | ) | |||||||||||
Total recorded in other comprehensive income | (60 | ) | (33 | ) | ||||||||||
Net periodic benefit cost | 3 | 14 | ||||||||||||
Total recorded in other comprehensive income and net periodic benefit cost | $ | (57 | ) | $ | (19 | ) | ||||||||
The following weighted average assumptions were used to determine the Company’s obligations under the pension plans: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Discount rate | 4.6 | % | 3.6 | % | 5.6 | % | 4.85 | % | ||||||
Rate of compensation increase | 4.22 | % | 4.19 | % | 4.39 | % | 4.35 | % | ||||||
The following weighted average assumptions were used to determine the Company’s net periodic benefit cost for the pension plans: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||
Discount rate | 3.6 | % | 4.5 | % | 5.35 | % | 4.88 | % | 5.68 | % | 5.73 | % | ||
Expected long-term return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | 6.69 | % | 6.81 | % | 6.73 | % | ||
Rate of compensation increase | 4.19 | % | 4.19 | % | 2.75 | % | 4.35 | % | 4.51 | % | 3.79 | % | ||
The Company has assumed an expected long-term rate of return on assets of 7.25 percent for US plans and 6.10 percent for Canadian plans. In developing the expected long-term rate of return assumption on plan assets, which consist mainly of US and Canadian equity and debt securities, management evaluated historical rates of return achieved on plan assets and the asset allocation of the plans, input from the Company’s independent actuaries and investment consultants, and historical trends in long-term inflation rates. Projected return estimates made by such consultants are based upon broad equity and bond indices. | ||||||||||||||
The discount rate reflects a rate of return on high-quality fixed income investments that match the duration of the expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption. | ||||||||||||||
Plan Assets — The Company’s investment policy for its pension plans is to balance risk and return through diversified portfolios of equity instruments, fixed income securities, and short-term investments. Maturities for fixed income securities are managed such that sufficient liquidity exists to meet near-term benefit payment obligations. For US pension plans, the weighted average target range allocation of assets was 38-72 percent in equities, 31-58 percent in fixed income and 1-3 percent in cash and other short-term investments. The asset allocation is reviewed regularly and portfolio investments are rebalanced to the targeted allocation when considered appropriate. | ||||||||||||||
The Company’s weighted average asset allocation as of December 31, 2013 and 2012 for US and non-US pension plan assets is as follows: | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
Asset Category | 2013 | 2012 | 2013 | 2012 | ||||||||||
Equity securities | 62 | % | 61 | % | 51 | % | 42 | % | ||||||
Debt securities | 36 | % | 38 | % | 39 | % | 47 | % | ||||||
Cash and other | 2 | % | 1 | % | 10 | % | 11 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||
The fair values of the Company’s plan assets at December 31, 2013, by asset category and level in the fair value hierarchy are as follows: | ||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Asset Category | Quoted Prices | Significant | Significant | Total | ||||||||||
(in millions) | in Active | Observable | Unobservable | |||||||||||
Markets for | Inputs | Inputs | ||||||||||||
Identical | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
US Plans: | ||||||||||||||
Equity index: | ||||||||||||||
US (a) | $ | 151 | $ | 151 | ||||||||||
International (b) | 32 | 32 | ||||||||||||
Real estate (c) | 3 | 3 | ||||||||||||
Fixed income index: | ||||||||||||||
Intermediate bond (d) | 57 | 57 | ||||||||||||
Long bond (e) | 50 | 50 | ||||||||||||
Cash (f) | 4 | 4 | ||||||||||||
Total US Plans | $ | 297 | $ | 297 | ||||||||||
Non-US Plans: | ||||||||||||||
Equity index: | ||||||||||||||
US (a) | $ | 38 | $ | 38 | ||||||||||
Canada (g) | 38 | 38 | ||||||||||||
International (b) | 39 | 39 | ||||||||||||
Fixed income index: | ||||||||||||||
Intermediate bond (d) | 1 | 1 | ||||||||||||
Long bond (h) | 85 | 85 | ||||||||||||
Other (i) | 19 | 19 | ||||||||||||
Cash (f) | 3 | 3 | ||||||||||||
Total Non-US Plans | $ | 3 | $ | 220 | $ | 223 | ||||||||
(a) This category consists of a passively managed equity index fund that tracks the return of large capitalization US equities. | ||||||||||||||
(b) This category consists of a passively managed equity index fund that tracks an index of returns on international developed market equities. | ||||||||||||||
(c) This category consists of a passively managed equity index fund that tracks a US real estate equity securities index that includes equities of real estate investment trusts and real estate operating companies. | ||||||||||||||
(d) This category consists of a passively managed fixed income index fund that tracks the return of intermediate duration government and investment grade corporate bonds. | ||||||||||||||
(e) This category consists of a passively managed fixed income fund that tracks the return of long duration US government and investment grade corporate bonds. | ||||||||||||||
(f) This category represents cash or cash equivalents. | ||||||||||||||
(g) This category consists of a passively managed equity index fund that tracks the return of large and mid-sized capitalization equities traded on the Toronto Stock Exchange. | ||||||||||||||
(h) This category consists of a passively managed fixed income index fund that tracks the return of the universe of Canada government and investment grade corporate bonds. | ||||||||||||||
(i) This category mainly consists of investment products provided by an insurance company that offers returns that are subject to a minimum guarantee. | ||||||||||||||
All significant pension plan assets are held in collective trusts by the Company’s US and non-US plans. The fair values of shares of collective trusts are based upon the net asset values of the funds reported by the fund managers based on quoted market prices of the underlying securities as of the balance sheet date and are considered to be Level 2 fair value measurements. This may produce a fair value measurement that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies could result in different fair value measurements at the reporting date. | ||||||||||||||
In 2013, the Company made cash contributions of $13 million and $43 million to its US and non-US pension plans, respectively. The Company anticipates that in 2014 it will make cash contributions of $2 million and $8 million to its US and non-US pension plans, respectively. Cash contributions in subsequent years will depend on a number of factors including the performance of plan assets. The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made: | ||||||||||||||
(in millions) | US Plans | Non-US Plans | ||||||||||||
2014 | $ | 18 | $ | 15 | ||||||||||
2015 | 17 | 14 | ||||||||||||
2016 | 17 | 14 | ||||||||||||
2017 | 19 | 14 | ||||||||||||
2018 | 20 | 15 | ||||||||||||
Years 2019 - 2023 | 105 | 79 | ||||||||||||
The Company and certain subsidiaries also maintain defined contribution plans. The Company makes matching contributions to these plans that are subject to certain vesting requirements and are based on a percentage of employee contributions. Amounts charged to expense for defined contribution plans totaled $15 million, $13 million and $12 million in 2013, 2012 and 2011, respectively. | ||||||||||||||
Postretirement Benefit Plans — The Company’s postretirement benefit plans currently are not funded. The information presented below includes plans in the United States, Brazil, and Canada. The changes in the benefit obligations of the plans during 2013 and 2012, and the amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2013 and 2012, are as follows: | ||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Accumulated postretirement benefit obligation | ||||||||||||||
At January 1 | $ | 74 | $ | 54 | ||||||||||
Service cost | 3 | 2 | ||||||||||||
Interest cost | 4 | 3 | ||||||||||||
Curtailment / settlement | (1 | ) | — | |||||||||||
Actuarial (gain) loss | (15 | ) | 17 | |||||||||||
Benefits paid | (3 | ) | (2 | ) | ||||||||||
Foreign currency translation | (5 | ) | — | |||||||||||
At December 31 | $ | 57 | $ | 74 | ||||||||||
Fair value of plan assets | — | — | ||||||||||||
Funded status | $ | (57 | ) | $ | (74 | ) | ||||||||
A United States hourly postretirement plan became a member of a multi-employer plan and because of this change, a non-cash curtailment gain of $30 million was recognized as a reduction of net periodic benefit cost in 2011. This curtailment gain represented the previously established liability related to this coverage, net of unrecognized actuarial amounts and prior service previously included in accumulated other comprehensive loss. | ||||||||||||||
Amounts recognized in the Consolidated Balance Sheet consist of: | ||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Current liabilities | $ | (2 | ) | $ | (2 | ) | ||||||||
Non-current liabilities | (55 | ) | (72 | ) | ||||||||||
Net liability recognized | $ | (57 | ) | $ | (74 | ) | ||||||||
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2013 and 2012 were as follows: | ||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Net actuarial loss | $ | 7 | $ | 26 | ||||||||||
Prior service cost | — | 1 | ||||||||||||
Net amount recognized | $ | 7 | $ | 27 | ||||||||||
Components of net periodic benefit cost consisted of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 3 | $ | 2 | $ | 2 | ||||||||
Interest cost | 4 | 3 | 4 | |||||||||||
Amortization of actuarial loss (gain) | 1 | 1 | (1 | ) | ||||||||||
Amortization of prior service cost | — | — | 1 | |||||||||||
Settlement / curtailment | — | — | (31 | ) | ||||||||||
Net periodic benefit cost | $ | 8 | $ | 6 | $ | (25 | ) | |||||||
The Company estimates that postretirement benefit expense for 2014 will include approximately $0.2 million relating to the amortization of its accumulated actuarial loss and $0.1 million relating to the amortization of its prior service cost included in accumulated other comprehensive loss at December 31, 2013. | ||||||||||||||
Total amounts recorded in other comprehensive income and net periodic benefit cost during 2013 was as follows: | ||||||||||||||
(in millions, pre-tax) | 2013 | |||||||||||||
Net actuarial gain | $ | (15 | ) | |||||||||||
Amortization of actuarial loss | (1 | ) | ||||||||||||
Amortization of prior service cost | (1 | ) | ||||||||||||
Foreign currency translation | (3 | ) | ||||||||||||
Total recorded in other comprehensive income | (20 | ) | ||||||||||||
Net periodic benefit cost | 8 | |||||||||||||
Total recorded in other comprehensive income and net periodic benefit cost | $ | (12 | ) | |||||||||||
The following weighted average assumptions were used to determine the Company’s obligations under the postretirement plans: | ||||||||||||||
2013 | 2012 | |||||||||||||
Discount rate | 6.47 | % | 5.44 | % | ||||||||||
The following weighted average assumptions were used to determine the Company’s net postretirement benefit cost: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Discount rate | 5.44 | % | 6.23 | % | 5.69 | % | ||||||||
The discount rate reflects a rate of return on high-quality fixed-income investments that match the duration of expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption. | ||||||||||||||
The health-care cost trend rates used in valuing the Company’s post-retirement benefit obligations are established based upon actual health-care trends and consultation with actuaries and benefit providers. The following assumptions were used as of December 31, 2013: | ||||||||||||||
US | Canada | Brazil | ||||||||||||
2014 Increase in per capita cost | 6.9 | % | 7.2 | % | 8.66 | % | ||||||||
Ultimate trend | 4.5 | % | 4.5 | % | 8.66 | % | ||||||||
Year ultimate trend reached | 2028 | 2031 | 2013 | |||||||||||
The sensitivities of service cost and interest cost and year-end benefit obligations to changes in health care trend rates for the postretirement benefit plans as of December 31, 2013 are as follows: | ||||||||||||||
2013 | ||||||||||||||
One-percentage point increase in trend rates: | ||||||||||||||
· Increase in service cost and interest cost components | $ | 1 million | ||||||||||||
· Increase in year-end benefit obligations | $ | 6 million | ||||||||||||
One-percentage point decrease in trend rates: | ||||||||||||||
· Decrease in service cost and interest cost components | $ | (1 million) | ||||||||||||
· Decrease in year-end benefit obligations | $ | (4 million) | ||||||||||||
The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made under the Company’s postretirement benefit plans: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 2 | ||||||||||||
2015 | 3 | |||||||||||||
2016 | 3 | |||||||||||||
2017 | 3 | |||||||||||||
2018 | 3 | |||||||||||||
Years 2019 - 2023 | $ | 21 | ||||||||||||
Multiemployer Plans — The Company participates in and contributes to one multiemployer benefit plan under the terms of a collective bargaining agreement that covers certain union-represented employees and retirees in the US. The plan covers medical and dental benefits for active hourly employees and retirees represented by the United States Steel Workers Union for certain US locations. | ||||||||||||||
The risks of participating in this multiemployer plan are different from single-employer plans. This plan receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan. | ||||||||||||||
The Company is required to make contributions to this plan as determined by the terms and conditions of the collective bargaining agreements and plan terms. For the years ended December 31, 2013, 2012 and 2011, the Company made regular contributions of $12 million, $12 million and $9 million, respectively, to this multi-employer plan. The Company cannot currently estimate the amount of multi-employer plan contributions that will be required in 2014 and future years, but these contributions could increase due to healthcare cost trends. | ||||||||||||||
Supplementary_Information
Supplementary Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplementary Information | ' | ||||||||||
Supplementary Information | ' | ||||||||||
NOTE 9 — Supplementary Information | |||||||||||
Balance Sheets | |||||||||||
(in millions) | 2013 | 2012 | |||||||||
Accounts receivable — net: | |||||||||||
Accounts receivable — trade | $ | 667 | $ | 707 | |||||||
Accounts receivable — other | 171 | 117 | |||||||||
Allowance for doubtful accounts | (6 | ) | (10 | ) | |||||||
Total accounts receivable — net | $ | 832 | $ | 814 | |||||||
Inventories: | |||||||||||
Finished and in process | $ | 440 | $ | 475 | |||||||
Raw materials | 235 | 313 | |||||||||
Manufacturing supplies | 48 | 46 | |||||||||
Total inventories | $ | 723 | $ | 834 | |||||||
Accrued liabilities: | |||||||||||
Compensation-related costs | $ | 75 | $ | 90 | |||||||
Income taxes payable | 14 | 25 | |||||||||
Dividends payable | 32 | 20 | |||||||||
Accrued interest | 16 | 16 | |||||||||
Taxes payable other than income taxes | 32 | 33 | |||||||||
Other | 100 | 81 | |||||||||
Total accrued liabilities | $ | 269 | $ | 265 | |||||||
Non-current liabilities: | |||||||||||
Employees’ pension, indemnity and postretirement | $ | 133 | $ | 235 | |||||||
Other | 30 | 62 | |||||||||
Total non-current liabilities | $ | 163 | $ | 297 | |||||||
Statements of Income | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Other income - net: | |||||||||||
Gain from change in benefit plan in North America | $ | — | $ | 5 | $ | — | |||||
Gain from sale of land | — | 2 | — | ||||||||
NAFTA award | — | — | 58 | ||||||||
Gain from change in a postretirement plan | — | — | 30 | ||||||||
Other | 16 | 15 | 10 | ||||||||
Other income - net | $ | 16 | $ | 22 | $ | 98 | |||||
Financing costs-net: | |||||||||||
Interest expense, net of amounts capitalized (a) | $ | 74 | $ | 77 | $ | 81 | |||||
Interest income | (11 | ) | (10 | ) | (5 | ) | |||||
Foreign currency transaction losses | 3 | — | 2 | ||||||||
Financing costs-net | $ | 66 | $ | 67 | $ | 78 | |||||
(a) Interest capitalized amounted to $4 million, $6 million and $5 million in 2013, 2012 and 2011, respectively. | |||||||||||
Statements of Cash Flow | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Interest paid | $ | 67 | $ | 72 | $ | 85 | |||||
Income taxes paid | 135 | 133 | 177 | ||||||||
Equity
Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity | ' | ||||||||||||||||
Equity | ' | ||||||||||||||||
NOTE 10 - Equity | |||||||||||||||||
Preferred stock: | |||||||||||||||||
The Company has authorized 25 million shares of $0.01 par value preferred stock, none of which were issued or outstanding at December 31, 2013 and 2012. | |||||||||||||||||
Treasury stock: | |||||||||||||||||
The Company reacquired 21,629, 44,674 and 73,260 shares of its common stock during 2013, 2012 and 2011, respectively, by both repurchasing shares from employees under the stock incentive plan and through the cancellation of forfeited restricted stock. The Company repurchased shares from employees at average purchase prices of $44.55, $58.59 and $47.48, or fair value at the date of purchase, during 2013, 2012 and 2011, respectively. All of the acquired shares are held as common stock in treasury, less shares issued to employees under the stock incentive plan. | |||||||||||||||||
On December 13, 2013, the Board of Directors authorized a new stock repurchase program permitting the Company to purchase up to 4 million of its outstanding common shares through December 12, 2018. The Company’s previous stock repurchase program permitting the purchase of up to 5 million shares was completed in the fourth quarter of 2013. In 2013, the Company repurchased 3,385,000 common shares in open market transactions at a cost of approximately $227 million. In 2012, the Company repurchased 300,000 common shares in open market transactions at a cost of approximately $15 million. In 2011, the Company repurchased 1,000,000 common shares in open market transactions at a cost of approximately $45 million. At December 31, 2013, the Company had 4,000,000 shares available to be repurchased under its program. The parameters of the Company’s stock repurchase program are not established solely with reference to the dilutive impact of shares issued under the Company’s stock incentive plan. However, the Company expects that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan. | |||||||||||||||||
Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2011, 2012 and 2013: | |||||||||||||||||
(Shares of common stock, in thousands) | Issued | Held in Treasury | Outstanding | ||||||||||||||
Balance at December 31, 2010 | 76,035 | 12 | 76,023 | ||||||||||||||
Issuance of restricted stock units as compensation | 56 | — | 56 | ||||||||||||||
Issuance under incentive and other plans | 91 | (9 | ) | 100 | |||||||||||||
Stock options exercised | 640 | (137 | ) | 777 | |||||||||||||
Purchase/acquisition of treasury stock | — | 1,073 | (1,073 | ) | |||||||||||||
Balance at December 31, 2011 | 76,822 | 939 | 75,883 | ||||||||||||||
Issuance of restricted stock units as compensation | — | (6 | ) | 6 | |||||||||||||
Issuance under incentive and other plans | — | (142 | ) | 142 | |||||||||||||
Stock options exercised | 320 | (1,026 | ) | 1,346 | |||||||||||||
Purchase/acquisition of treasury stock | — | 345 | (345 | ) | |||||||||||||
Balance at December 31, 2012 | 77,142 | 110 | 77,032 | ||||||||||||||
Issuance of restricted stock units as compensation | 6 | (3 | ) | 9 | |||||||||||||
Issuance under incentive and other plans | 130 | (43 | ) | 173 | |||||||||||||
Stock options exercised | 395 | (110 | ) | 505 | |||||||||||||
Purchase/acquisition of treasury stock | — | 3,407 | (3,407 | ) | |||||||||||||
Balance at December 31, 2013 | 77,673 | 3,361 | 74,312 | ||||||||||||||
Share-based payments: | |||||||||||||||||
The Company has a stock incentive plan (“SIP”) administered by the compensation committee of its Board of Directors that provides for the granting of stock options, restricted stock, restricted stock units and other share-based awards to certain key employees. A maximum of 8 million shares were originally authorized for awards under the SIP. As of December 31, 2013, 2.8 million shares were available for future grants under the SIP. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the SIP. Total share-based compensation expense for 2013 was $12 million, net of income tax effect of $5 million. Total share-based compensation expense for 2012 was $12 million, net of income tax effect of $5 million. Total share-based compensation expense for 2011 was $11 million, net of income tax effect of $5 million. | |||||||||||||||||
The Company grants nonqualified options to purchase shares of the Company’s common stock. The stock options have a ten-year life and are exercisable upon vesting, which occurs evenly over a three-year period at the anniversary dates of the date of grant. Compensation expense is recognized on a straight-line basis for awards. As of December 31, 2013, certain of these nonqualified options have been forfeited due to the termination of employees. | |||||||||||||||||
The fair value of stock option awards was estimated at the grant dates using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected life (in years) | 5.8 | 5.8 | 5.8 | ||||||||||||||
Risk-free interest rate | 1.1 | % | 1.1 | % | 2.8 | % | |||||||||||
Expected volatility | 32.6 | % | 33.3 | % | 32.7 | % | |||||||||||
Expected dividend yield | 1.6 | % | 1.2 | % | 1.2 | % | |||||||||||
The expected life of options represents the weighted-average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and the Company’s historical exercise patterns. The risk-free interest rate is based on the US Treasury yield curve in effect at the time of the grant for periods corresponding with the expected life of the options. Expected volatility is based on historical volatilities of the Company’s common stock. Dividend yields are based on historical dividend payments. The weighted average fair value of options granted during 2013, 2012 and 2011 was estimated to be $17.87, $16.16 and $15.17, respectively. | |||||||||||||||||
A summary of stock option transactions for the last three years follows: | |||||||||||||||||
(shares in thousands) | Stock Option | Stock Option | Weighted | ||||||||||||||
Shares | Price Range | Average | |||||||||||||||
per Share | |||||||||||||||||
Exercise Price | |||||||||||||||||
for Stock | |||||||||||||||||
Options | |||||||||||||||||
Outstanding at December 31, 2010 | 4,434 | $ | 14.17 to 40.71 | $ | 27.49 | ||||||||||||
Granted | 438 | 47.95 to 52.64 | 47.96 | ||||||||||||||
Exercised | (777 | ) | 14.17 to 40.71 | 24.24 | |||||||||||||
Cancelled | (65 | ) | 18.31 to 47.95 | 30.6 | |||||||||||||
Outstanding at December 31, 2011 | 4,030 | 14.33 to 52.64 | 30.29 | ||||||||||||||
Granted | 460 | 55.95 to 57.33 | 55.96 | ||||||||||||||
Exercised | (1,409 | ) | 14.33 to 47.95 | 26.8 | |||||||||||||
Cancelled | (49 | ) | 25.58 to 55.95 | 39.29 | |||||||||||||
Outstanding at December 31, 2012 | 3,032 | 16.92 to 57.33 | 35.66 | ||||||||||||||
Granted | 416 | 66.07 to 66.26 | 66.07 | ||||||||||||||
Exercised | (511 | ) | 16.92 to 57.33 | 28.74 | |||||||||||||
Cancelled | (88 | ) | 47.95 to 66.07 | 54.37 | |||||||||||||
Outstanding at December 31, 2013 | 2,849 | 24.70 to 66.26 | 40.77 | ||||||||||||||
The intrinsic values of stock options exercised during 2013, 2012 and 2011 were approximately $20 million, $46 million and $22 million, respectively. For the years ended December 31, 2013, 2012 and 2011, cash received from the exercise of stock options was $14 million, $34 million and $18 million, respectively. The excess income tax benefit realized from share-based compensation was $5 million, $11 million and $6 million in 2013, 2012 and 2011, respectively. As of December 31, 2013, the unrecognized compensation cost related to non-vested stock options totaled $8 million, which is expected to be amortized over the weighted-average period of approximately 1.7 years. | |||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||
(options in thousands) | Options | Weighted Average Exercise | Average Remaining | Options | Weighted Average | ||||||||||||
Range of Exercise Prices | Outstanding | Price per Share | Contractual Life (Years) | Exercisable | Exercise Price | ||||||||||||
Per Share | |||||||||||||||||
$ 24.70 to 27.30 | 557 | $ | 25.47 | 3.22 | 557 | $ | 25.47 | ||||||||||
$ 27.31 to 29.90 | 465 | 29 | 6.07 | 465 | 29 | ||||||||||||
$ 32.51 to 35.10 | 676 | 34.04 | 3.68 | 676 | 34.04 | ||||||||||||
$ 45.51 to 53.30 | 357 | 47.96 | 7.11 | 239 | 47.96 | ||||||||||||
$ 55.91 to 58.50 | 405 | 55.95 | 8.11 | 142 | 55.95 | ||||||||||||
$ 63.71 to 66.26 | 389 | 66.07 | 9.1 | — | — | ||||||||||||
2,849 | $ | 40.77 | 5.78 | 2,079 | $ | 33.71 | |||||||||||
Stock options outstanding at December 31, 2013 had an aggregate intrinsic value of approximately $79 million and an average remaining contractual life of 5.8 years. Stock options exercisable at December 31, 2013 had an aggregate intrinsic value of approximately $72 million and an average remaining contractual life of 4.8 years. Stock options outstanding at December 31, 2012 had an aggregate intrinsic value of approximately $87 million and an average remaining contractual life of 6.0 years. Stock options exercisable at December 31, 2012 had an aggregate intrinsic value of approximately $71 million and an average remaining contractual life of 4.9 years. | |||||||||||||||||
In addition to stock options, the Company awards shares of restricted common stock (“restricted shares”) and restricted stock units (“restricted units”) to certain key employees. The restricted shares and restricted units issued under the plan are subject to cliff vesting, generally after three to five years provided the employee remains in the service of the Company. Expense is recognized on a straight-line basis over the vesting period taking into account an estimated forfeiture rate. The fair value of the restricted stock and restricted units is determined based upon the number of shares granted and the quoted market price of the Company’s common stock at the date of the grant. The compensation expense recognized for restricted shares and restricted units was $7 million in 2013, $6 million in 2012 and $4 million in 2011. | |||||||||||||||||
The following table summarizes restricted share and restricted unit activity for the last three years: | |||||||||||||||||
(shares in thousands) | Number of | Weighted | Number of | Weighted | |||||||||||||
Restricted | Average | Restricted | Average | ||||||||||||||
Shares | Fair Value | Units | Fair Value | ||||||||||||||
per Share | per Share | ||||||||||||||||
Non-vested at December 31, 2010 | 181 | $ | 30.04 | 113 | $ | 30.56 | |||||||||||
Granted | — | — | 182 | 48.04 | |||||||||||||
Vested | (34 | ) | 27.56 | (56 | ) | 26.08 | |||||||||||
Cancelled | (11 | ) | 29.74 | (4 | ) | 47.98 | |||||||||||
Non-vested at December 31, 2011 | 136 | $ | 30.69 | 235 | $ | 44.24 | |||||||||||
Granted | — | — | 174 | 55.69 | |||||||||||||
Vested | (37 | ) | 33.73 | (9 | ) | 37.57 | |||||||||||
Cancelled | (4 | ) | 25.58 | (15 | ) | 44.95 | |||||||||||
Non-vested at December 31, 2012 | 95 | $ | 29.69 | 385 | $ | 49.77 | |||||||||||
Granted | — | — | 144 | 66.27 | |||||||||||||
Vested | (33 | ) | 34.02 | (17 | ) | 46.82 | |||||||||||
Cancelled | (14 | ) | 31.25 | (43 | ) | 54.93 | |||||||||||
Non-vested at December 31, 2013 | 48 | $ | 26.25 | 469 | $ | 54.47 | |||||||||||
Restricted shares with a total fair value of $1 million vested in each of 2013, 2012 and 2011. The total fair value of restricted units that vested in 2013, 2012 and 2011 was $1 million, $0.3 million and $1 million, respectively. | |||||||||||||||||
At December 31, 2013, the total remaining unrecognized compensation cost related to restricted units was $10 million which will be amortized on a weighted-average basis over approximately 1.9 years. Unrecognized compensation cost related to restricted shares was insignificant at December 31, 2013. Recognized compensation cost related to unvested restricted share and restricted stock unit awards is included in share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $17 million and $11 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Other share-based awards under the SIP: | |||||||||||||||||
Under the compensation agreement with the Board of Directors at least 50 percent of a director’s compensation is awarded in shares of common stock or restricted units based on each director’s election to receive his or her compensation or a portion thereof in the form of restricted units. These restricted units vest immediately, but cannot be transferred until a date not less than six months after the director’s termination of service from the board at which time the restricted units will be settled by delivering shares of common stock. The compensation expense relating to this plan included in the Consolidated Statements of Income for 2013, 2012 and 2011 was not material. At December 31, 2013, there were approximately 218,000 restricted units outstanding under this plan at a carrying value of approximately $6 million. | |||||||||||||||||
The Company has a long-term incentive plan for officers in the form of performance shares. The ultimate payments for performance shares awarded in 2011, 2012 and 2013 to be paid in 2014, 2015 and 2016 will be based solely on the Company’s stock performance as compared to the stock performance of a peer group. Compensation expense is based on the fair value of the performance shares at the grant date, established using a Monte Carlo simulation model. The total compensation expense for these awards is amortized over a three-year service period. Compensation expense relating to these awards included in the Consolidated Statements of Income for 2013, 2012 and 2011 was $3 million, $4 million and $6 million, respectively. As of December 31, 2013, the unrecognized compensation cost relating to these plans was $3 million, which will be amortized over the remaining requisite service periods of 1 to 2 years. Recognized compensation cost related to these unvested awards is included in share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $7 million and $8 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||
A summary of accumulated other comprehensive income (loss) for the years ended December 31, 2011, 2012 and 2013 is | |||||||||||||||||
presented below: | |||||||||||||||||
Unrealized | |||||||||||||||||
Cumulative | Deferred | Pension/ | Gain | Accumulated | |||||||||||||
Gain/(Loss) | (Loss) | Other | |||||||||||||||
Translation | on Hedging | Postretirement | on | Comprehensive | |||||||||||||
(in millions) | Adjustment | Activities | Adjustment | Investment | Loss | ||||||||||||
Balance, December 31, 2010 | $ | (180 | ) | $ | 41 | $ | (49 | ) | $ | (2 | ) | $ | (190 | ) | |||
Gains on cash-flow hedges, net of income tax effect of $19 | 29 | 29 | |||||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $61 | (105 | ) | (105 | ) | |||||||||||||
Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax of $4 | (10 | ) | (10 | ) | |||||||||||||
Gains related to pension and other postretirement obligations reclassified to earnings, net of income tax of $5 | (11 | ) | (11 | ) | |||||||||||||
Currency translation adjustment | (126 | ) | (126 | ) | |||||||||||||
Balance, December 31, 2011 | $ | (306 | ) | $ | (35 | ) | $ | (70 | ) | $ | (2 | ) | $ | (413 | ) | ||
Gains on cash-flow hedges, net of income tax effect of $25 | 43 | 43 | |||||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $15 | (25 | ) | (25 | ) | |||||||||||||
Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $27 | (56 | ) | (56 | ) | |||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $2 | 5 | 5 | |||||||||||||||
Currency translation adjustment | (29 | ) | (29 | ) | |||||||||||||
Balance, December 31, 2012 | $ | (335 | ) | $ | (17 | ) | $ | (121 | ) | $ | (2 | ) | $ | (475 | ) | ||
Losses on cash-flow hedges, net of income tax effect of $29 | (64 | ) | (64 | ) | |||||||||||||
Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19 | 41 | 41 | |||||||||||||||
Actuarial gain on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $32 | 63 | 63 | |||||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $3 | 5 | 5 | |||||||||||||||
Unrealized gain on investment, net of income tax effect | 1 | 1 | |||||||||||||||
Currency translation adjustment | (154 | ) | (154 | ) | |||||||||||||
Balance, December 31, 2013 | $ | (489 | ) | $ | (40 | ) | $ | (53 | ) | $ | (1 | ) | $ | (583 | ) | ||
The following table provides detail pertaining to reclassifications from AOCI into net income for the periods presented: | |||||||||||||||||
Affected Line Item in | |||||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Consolidated Statements | |||||||||||||||
(in millions) | 2013 | 2012 | 2011 | of Income | |||||||||||||
Gains (losses) on cash-flow hedges: | |||||||||||||||||
Commodity and foreign currency contracts | $ | (57 | ) | $ | 43 | $ | 169 | Cost of sales | |||||||||
Interest rate contracts | (3 | ) | (3 | ) | (3 | ) | Financing costs, net | ||||||||||
Gains (losses) related to pension and other postretirement obligations | (8 | ) | (7 | ) | 16 | (a) | |||||||||||
Total before tax reclassifications | $ | (68 | ) | $ | 33 | $ | 182 | ||||||||||
Income tax (expense) benefit | 22 | (13 | ) | (66 | ) | ||||||||||||
Total after-tax reclassifications | $ | (46 | ) | $ | 20 | $ | 116 | ||||||||||
(a) This component is included in the computation of net periodic benefit cost and affects both cost of sales and SG&A expenses on the Consolidated Statements of Income. | |||||||||||||||||
Mexican_Tax_on_Beverages_Sweet
Mexican Tax on Beverages Sweetened with HFCS | 12 Months Ended |
Dec. 31, 2013 | |
Mexican Tax on Beverages Sweetened with HFCS | ' |
Mexican Tax on Beverages Sweetened with HFCS | ' |
NOTE 11 — Mexican Tax on Beverages Sweetened with HFCS | |
On January 1, 2002, a discriminatory tax on beverages sweetened with high fructose corn syrup (“HFCS”) approved by the Mexican Congress late in 2001, became effective. In response to the enactment of the tax, which at the time effectively ended the use of HFCS for beverages in Mexico, the Company ceased production of HFCS 55 at its San Juan del Rio plant, one of its three plants in Mexico. Over time, the Company resumed production and sales of HFCS and by 2006 had returned to levels attained prior to the imposition of the tax as a result of certain customers having obtained court rulings exempting them from paying the tax. The Mexican Congress repealed this tax effective January 1, 2007. | |
On October 21, 2003, the Company submitted, on its own behalf and on behalf of its Mexican affiliate, CPIngredientes, S.A. de C.V. (previously known as Compania Proveedora de Ingredientes), a Request for Institution of Arbitration Proceedings Submitted Pursuant to Chapter 11 of the North American Free Trade Agreement (“NAFTA”) (the “Request”). The Request was submitted to the Additional Office of the International Centre for Settlement of Investment Disputes and was brought against the United Mexican States. In the Request, the Company asserted that the imposition by Mexico of a discriminatory tax on beverages containing HFCS in force from 2002 through 2006 breached various obligations of Mexico under the investment protection provisions of NAFTA. The case was bifurcated into two phases, liability and damages, and a hearing on liability was held before a Tribunal in July 2006. In a Decision dated January 15, 2008, the Tribunal unanimously held that Mexico had violated NAFTA Article 1102, National Treatment, by treating beverages sweetened with HFCS produced by foreign companies differently than those sweetened with domestic sugar. In July 2008, a hearing regarding the quantum of damages was held before the same Tribunal. The Company sought damages and pre- and post-judgment interest totaling $288 million through December 31, 2008. | |
In an award rendered August 18, 2009, the Tribunal awarded damages to CPIngredientes in the amount of $58.4 million, as a result of the tax and certain out-of-pocket expenses incurred by CPIngredientes, together with accrued interest. On October 1, 2009, the Company submitted to the Tribunal a request for correction of this award to avoid effective double taxation on the amount of the award in Mexico. | |
On March 26, 2010, the Tribunal issued a correction of its August 18, 2009 damages award. While the amount of damages had not changed, the decision made the damages payable to Ingredion Incorporated (formerly Corn Products International, Inc.) instead of CPIngredientes. | |
On January 24 and 25, 2011, the Company received cash payments totaling $58.4 million from the Government of the United Mexican States pursuant to the corrected award. Mexico made these payments pursuant to an agreement with Ingredion Incorporated that provides for terminating pending post-award litigation and waiving post-award interest. The $58.4 million award is included in other income in the Company’s Consolidated Statement of Income for 2011. | |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Segment Information | ' | ||||||||||
NOTE 12 - Segment Information | |||||||||||
The Company is principally engaged in the production and sale of starches and sweeteners for a wide range of industries, and is managed geographically on a regional basis. The Company’s operations are classified into four reportable business segments: North America, South America, Asia Pacific and Europe, Middle East and Africa (“EMEA”). Its North America segment includes businesses in the United States, Canada and Mexico. The Company’s South America segment includes businesses in Brazil, Colombia, Ecuador, Peru and the Southern Cone of South America, which includes Argentina, Chile and Uruguay. Its Asia Pacific segment includes businesses in Korea, Thailand, Malaysia, China, Japan, Indonesia, the Philippines, Singapore, India, Australia and New Zealand. The Company’s EMEA segment includes businesses in the United Kingdom, Germany, South Africa, Pakistan and Kenya. | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Net sales to unaffiliated customers: | |||||||||||
North America | $ | 3,647 | $ | 3,741 | $ | 3,356 | |||||
South America | 1,334 | 1,462 | 1,569 | ||||||||
Asia Pacific | 805 | 816 | 764 | ||||||||
EMEA | 542 | 513 | 530 | ||||||||
Total | $ | 6,328 | $ | 6,532 | $ | 6,219 | |||||
Operating income: | |||||||||||
North America | $ | 401 | $ | 408 | $ | 322 | |||||
South America | 116 | 198 | 203 | ||||||||
Asia Pacific | 97 | 95 | 79 | ||||||||
EMEA | 74 | 78 | 84 | ||||||||
Corporate | (75 | ) | (78 | ) | (64 | ) | |||||
Subtotal | 613 | 701 | 624 | ||||||||
Restructuring / impairment charges (a) | — | (36 | ) | (10 | ) | ||||||
Gain from change in benefit plans | — | 5 | 30 | ||||||||
Integration / acquisition costs | — | (4 | ) | (31 | ) | ||||||
Gain from land sale | — | 2 | — | ||||||||
NAFTA award | — | — | 58 | ||||||||
Total | $ | 613 | $ | 668 | $ | 671 | |||||
Total assets: | |||||||||||
North America | $ | 3,008 | $ | 3,116 | $ | 2,879 | |||||
South America | 1,088 | 1,230 | 1,218 | ||||||||
Asia Pacific | 711 | 730 | 757 | ||||||||
EMEA | 553 | 516 | 463 | ||||||||
Total | $ | 5,360 | $ | 5,592 | $ | 5,317 | |||||
Depreciation and amortization: | |||||||||||
North America | $ | 112 | $ | 130 | $ | 128 | |||||
South America | 41 | 44 | 47 | ||||||||
Asia Pacific | 25 | 24 | 23 | ||||||||
EMEA | 16 | 13 | 13 | ||||||||
Total | $ | 194 | $ | 211 | $ | 211 | |||||
Capital expenditures: | |||||||||||
North America | $ | 141 | $ | 162 | $ | 119 | |||||
South America | 76 | 75 | 84 | ||||||||
Asia Pacific | 28 | 33 | 24 | ||||||||
EMEA | 53 | 43 | 36 | ||||||||
Total | $ | 298 | $ | 313 | $ | 263 | |||||
(a). For 2012, includes $20 million of charges for impaired assets and restructuring costs in Kenya, $11 million of charges to write-down certain equipment as part of the Company’s North American manufacturing optimization plan and $5 million of charges for impaired assets in China and Colombia. For 2011, includes $10 million of charges to write-down certain equipment as part of the Company’s North American manufacturing optimization plan. | |||||||||||
The following table presents net sales to unaffiliated customers by country of origin for the last three years: | |||||||||||
Net Sales | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 1,970 | $ | 2,035 | $ | 1,863 | |||||
Mexico | 1,130 | 1,143 | 957 | ||||||||
Brazil | 670 | 731 | 841 | ||||||||
Canada | 547 | 564 | 536 | ||||||||
Argentina | 305 | 356 | 344 | ||||||||
Korea | 301 | 306 | 284 | ||||||||
Others | 1,405 | 1,397 | 1,394 | ||||||||
Total | $ | 6,328 | $ | 6,532 | $ | 6,219 | |||||
The following table presents long-lived assets (excluding intangible assets) by country at December 31: | |||||||||||
Long-lived Assets | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 822 | $ | 824 | $ | 830 | |||||
Brazil | 321 | 346 | 370 | ||||||||
Mexico | 296 | 290 | 277 | ||||||||
Canada | 181 | 199 | 189 | ||||||||
Germany | 151 | 114 | 90 | ||||||||
Thailand | 112 | 117 | 112 | ||||||||
Argentina | 92 | 111 | 107 | ||||||||
Korea | 91 | 90 | 83 | ||||||||
Others | 219 | 234 | 229 | ||||||||
Total | $ | 2,285 | $ | 2,325 | $ | 2,287 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
NOTE 13 — Commitments and Contingencies | |
As previously reported, on April 22, 2011, Western Sugar and two other sugar companies filed a complaint in the U.S. District Court for the Central District of California against the Corn Refiners Association (“CRA”) and certain of its member companies, including the Company, alleging false and/or misleading statements relating to high fructose corn syrup in violation of the Lanham Act and California’s unfair competition law. The complaint seeks injunctive relief and unspecified damages. On May 23, 2011, the plaintiffs amended the complaint to add additional plaintiffs, among other reasons. | |
On July 1, 2011, the CRA and the member companies in the case filed a motion to dismiss the first amended complaint on multiple grounds. On October 21, 2011, the U.S. District Court for the Central District of California dismissed all Federal and state claims against the Company and the other members of the CRA, with leave for the plaintiffs to amend their complaint, and also dismissed all state law claims against the CRA. | |
The state law claims against the CRA were dismissed pursuant to a California law known as the anti-SLAPP (Strategic Lawsuit Against Public Participation) statute, which, according to the court’s opinion, allows early dismissal of meritless first amendment cases aimed at chilling expression through costly, time-consuming litigation. The court held that the CRA’s statements were protected speech made in a public forum in connection with an issue of public interest (high fructose corn syrup). Under the anti-SLAPP statute, the CRA is entitled to recover its attorney’s fees and costs from the plaintiffs. | |
On November 18, 2011, the plaintiffs filed a second, amended complaint against certain of the CRA member companies, including the Company, seeking to reinstate the federal law claims, but not the state law claims, against certain of the CRA member companies, including the Company. On December 16, 2011, the CRA member companies filed a motion to dismiss the second amended complaint on multiple grounds. On July 31, 2012, the U.S. District Court for the Central District of California denied the motion to dismiss for all CRA member companies other than Roquette America, Inc. | |
On September 4, 2012, the Company and the other CRA member companies that remain defendants in the case filed an answer to the plaintiffs’ second, amended complaint that, among other things, added a counterclaim against the Sugar Association. The counterclaim alleges that the Sugar Association has made false and misleading statements that processed sugar differs from high fructose corn syrup in ways that are beneficial to consumers’ health (i.e., that consumers will be healthier if they consume foods and beverages containing processed sugar instead of high fructose corn syrup). The counterclaim, which was filed in the U.S. District Court for the Central District of California, seeks injunctive relief and unspecified damages. Although the counterclaim was initially only filed against the Sugar Association, the Company and the other CRA member companies that remain defendants in the Western Sugar case have reserved the right to add other plaintiffs to the counterclaim in the future. | |
On October 29, 2012, the Sugar Association and the other plaintiffs filed a motion to dismiss the counterclaim and certain related portions of the defendants’ answer, each on multiple grounds. On December 10, 2012, the remaining member companies which are defendants in the case responded to the motion to dismiss the counterclaim. On January 14, 2013, the plaintiffs filed a reply to the defendants’ response to the motion to dismiss. On September 16, 2013, the U.S. District Court for the Central District of California denied the motion to dismiss the counterclaim, which entitles the Company and the other CRA member companies to continue to pursue the counterclaim against the Sugar Association and the other plaintiffs. | |
The Company continues to believe that the second, amended complaint is without merit and intends to vigorously defend this case. In addition, the Company intends to vigorously pursue its rights in connection with the counterclaim. | |
In the ordinary course of business, the Company enters into purchase commitments principally related to power supply and raw material sourcing. Such agreements, including take or pay contracts, help to provide the Company with adequate supply of power and raw material at certain of our facilities. The Company would be subject to liquidated damages in the unlikely event that it did not fulfill such commitments. | |
The Company is currently subject to various other claims and suits arising in the ordinary course of business, including certain environmental proceedings and product liability claims. The Company does not believe that the results of such legal proceedings, even if unfavorable to the Company, will be material to the Company. There can be no assurance, however, that such claims or suits or those arising in the future, whether taken individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations. | |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||
Summarized quarterly financial data is as follows: | ||||||||||||||
(in millions, except per share amounts) | 1st QTR | 2nd QTR | 3rd QTR | 4th QTR | ||||||||||
2013 | ||||||||||||||
Net sales before shipping and handling costs | $ | 1,662 | $ | 1,715 | $ | 1,696 | $ | 1,579 | ||||||
Less: shipping and handling costs | 78 | 82 | 84 | 80 | ||||||||||
Net sales | $ | 1,584 | $ | 1,633 | $ | 1,612 | $ | 1,499 | ||||||
Gross profit | 306 | 276 | 259 | 291 | ||||||||||
Net income attributable to Ingredion | 111 | 95 | 86 | 104 | ||||||||||
Basic earnings per common share of Ingredion | $ | 1.43 | $ | 1.22 | $ | 1.12 | $ | 1.37 | ||||||
Diluted earnings per common share of Ingredion | $ | 1.41 | $ | 1.2 | $ | 1.1 | $ | 1.35 | ||||||
(in millions, except per share amounts) | 1st QTR | 2nd QTR | 3rd QTR | 4th QTR | ||||||||||
2012 | ||||||||||||||
Net sales before shipping and handling costs | $ | 1,658 | $ | 1,720 | $ | 1,764 | $ | 1,726 | ||||||
Less: shipping and handling costs | 84 | 85 | 85 | 82 | ||||||||||
Net sales | $ | 1,574 | $ | 1,635 | $ | 1,679 | $ | 1,644 | ||||||
Gross profit | 296 | 295 | 313 | 333 | ||||||||||
Net income attributable to Ingredion | 94 | 109 | 113 | 112 | ||||||||||
Basic earnings per common share of Ingredion | $ | 1.23 | $ | 1.42 | $ | 1.47 | $ | 1.45 | ||||||
Diluted earnings per common share of Ingredion | $ | 1.21 | $ | 1.4 | $ | 1.45 | $ | 1.42 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
Basis of presentation | ' | |||||||||||||||||||||||
Basis of presentation — The consolidated financial statements consist of the accounts of the Company, including all significant subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. | ||||||||||||||||||||||||
The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the value of purchase consideration, valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, legal contingencies, guarantee obligations, and assumptions used in the calculation of income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management will adjust such estimates and assumptions when facts and circumstances dictate. Foreign currency devaluations, corn price volatility, access to difficult credit markets and adverse changes in the global economic environment have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. | ||||||||||||||||||||||||
Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the US dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of accumulated other comprehensive income (loss). Income statement accounts are translated at the average exchange rate during the period. For foreign subsidiaries where the US dollar is the functional currency, monetary assets and liabilities are translated at current exchange rates with the related adjustment included in net income. Non-monetary assets and liabilities are translated at historical exchange rates. Although the Company hedges the predominance of its transactional foreign exchange risk (see Note 4), the Company incurs foreign currency transaction gains/losses relating to assets and liabilities that are denominated in a currency other than the functional currency. For 2013, 2012 and 2011, the Company incurred foreign currency transaction losses of $3 million, less than $1 million and $2 million, respectively. The Company’s accumulated other comprehensive loss included in equity on the Consolidated Balance Sheets includes cumulative translation loss adjustments of $489 million and $335 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Cash and cash equivalents | ' | |||||||||||||||||||||||
Cash and cash equivalents — Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value. | ||||||||||||||||||||||||
Inventories | ' | |||||||||||||||||||||||
Inventories — Inventories are stated at the lower of cost or net realizable value. Costs are determined using the weighted average method. | ||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
Investments — Investments in the common stock of affiliated companies over which the Company does not exercise significant influence are accounted for under the cost method. The Company’s wholly-owned Canadian subsidiary has an investment that is accounted for under the cost method. The carrying value of this investment was $6 million at December 31, 2013 and 2012. Investments that enable the Company to exercise significant influence, but do not represent a controlling interest, are accounted for under the equity method; such investments are carried at cost, adjusted to reflect the Company’s proportionate share of income or loss, less dividends received. The Company did not have any investments accounted for under the equity method at December 31, 2013 or 2012. The Company also has equity interests in the CME Group Inc., which it classifies as available for sale securities. The investment is carried at fair value with unrealized gains and losses recorded to other comprehensive income. | ||||||||||||||||||||||||
The Company would recognize a loss on its investments when there is a loss in value of an investment that is other than temporary. In 2011, the Company sold its investment in Smurfit-Stone Container Corporation which had been accounted for as an available for sale security and recorded a nominal gain. | ||||||||||||||||||||||||
Property, plant and equipment and depreciation | ' | |||||||||||||||||||||||
Property, plant and equipment and depreciation — Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is generally computed on the straight-line method over the estimated useful lives of depreciable assets, which range from 10 to 50 years for buildings and from 3 to 20 years for all other assets. Where permitted by law, accelerated depreciation methods are used for tax purposes. The Company reviews the recoverability of the net book value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. If this review indicates that the carrying values will not be recovered, the carrying values would be reduced to fair value and an impairment loss would be recognized. As required under accounting principles generally accepted in the United States, the impairment analysis for long-lived assets occurs before the goodwill impairment assessment described below. | ||||||||||||||||||||||||
Goodwill and other intangible assets | ' | |||||||||||||||||||||||
Goodwill and other intangible assets — Goodwill ($535 million and $557 million at December 31, 2013 and 2012, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. The Company also has other intangible assets aggregating $311 million and $329 million at December 31, 2013 and 2012, respectively. The carrying amount of goodwill by geographic segment at December 31, 2013 and 2012 was as follows: | ||||||||||||||||||||||||
(in millions) | North | South | Asia | EMEA | Total | |||||||||||||||||||
America | America | Pacific | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 278 | $ | 101 | $ | 106 | $ | 77 | $ | 562 | ||||||||||||||
Impairment charges | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Currency translation | — | (6 | ) | — | 3 | (3 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Currency translation | — | (17 | ) | (7 | ) | 2 | (22 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 95 | $ | 225 | $ | 80 | $ | 679 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 78 | $ | 218 | $ | 82 | $ | 657 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
The following table summarizes the Company’s other intangible assets for the periods presented: | ||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | ||||||||||||||||
Amortization | Average | Amortization | Average | |||||||||||||||||||||
Useful | Useful | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||
(years) | (years) | |||||||||||||||||||||||
Trademarks/tradenames | $ | 132 | $ | — | $ | 132 | — | $ | 132 | $ | — | $ | 132 | — | ||||||||||
Customer relationships | 139 | (18 | ) | 121 | 25 | 143 | (13 | ) | 130 | 25 | ||||||||||||||
Technology | 83 | (27 | ) | 56 | 10 | 83 | (19 | ) | 64 | 10 | ||||||||||||||
Other | 6 | (4 | ) | 2 | 8 | 6 | (3 | ) | 3 | 8 | ||||||||||||||
Total other intangible assets | $ | 360 | $ | (49 | ) | $ | 311 | 19 | $ | 364 | $ | (35 | ) | $ | 329 | 19 | ||||||||
For definite-lived intangible assets, the Company recognizes the cost of such amortizable assets in operations over their estimated useful lives and evaluates the recoverability of the assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Amortization expense related to intangible assets was $14 million for each of the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Based on acquisitions completed through December 31, 2013, the Company expects intangible asset amortization expense for subsequent years to be approximately $14 million annually through 2018. | ||||||||||||||||||||||||
The Company assesses goodwill and other indefinite-lived intangible assets for impairment annually (or more frequently if impairment indicators arise). The Company has chosen to perform this annual impairment assessment as of October 1 of each year. The Company has completed the required impairment assessments and determined there to be no impairment in the fourth quarter of 2013. | ||||||||||||||||||||||||
In testing goodwill for impairment, the Company first assesses qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount then the Company does not perform the two-step impairment test. If the Company concludes otherwise, then it performs the first step of the two-step impairment test as described in ASC Topic 350. In the first step, the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of its net assets, goodwill is not considered impaired and no further testing is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, a second step of the impairment assessment is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires a valuation of the reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of its goodwill, goodwill is deemed impaired and is written down to the extent of the difference. Based on the results of the annual assessment, the Company concluded that as of October 1, 2013 (although the estimated fair values of the Southern Cone of South America and Brazil reporting units decreased compared to the 2012 assessment due to recent trends experienced in these reporting units), it was more likely than not that the fair value of all reporting units was greater than their carrying value. | ||||||||||||||||||||||||
In testing indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is impaired. After assessing the qualitative factors, if the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, then it would not be required to compute the fair value of the indefinite-lived intangible asset. In the event the qualitative assessment leads the Company to conclude otherwise, then it would be required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test in accordance with ASC subtopic 350-30. In performing the qualitative analysis, the Company considers various factors including net sales derived from these intangibles and certain market and industry conditions. Based on the results of this qualitative assessment, the Company concluded that as of October 1, 2013, it was more likely than not that the fair value of the indefinite-lived intangible assets was greater than their carrying value. | ||||||||||||||||||||||||
Revenue recognition | ' | |||||||||||||||||||||||
Revenue recognition — The Company recognizes operating revenues at the time title to the goods and all risks of ownership transfer to the customer. This transfer is considered complete when a sales agreement is in place, delivery has occurred, pricing is fixed or determinable and collection is reasonably assured. In the case of consigned inventories, the title passes and the transfer of ownership risk occurs when the goods are used by the customer. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from revenues. | ||||||||||||||||||||||||
Hedging instruments | ' | |||||||||||||||||||||||
Hedging instruments — The Company uses derivative financial instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. Derivative financial instruments used by the Company consist of commodity futures and option contracts, forward currency contracts and options, interest rate swap agreements and treasury lock agreements. The Company enters into futures and option contracts, which are designated as hedges of specific volumes of commodities (corn and natural gas) that will be purchased in a future month. These derivative financial instruments are recognized in the Consolidated Balance Sheets at fair value. The Company has also entered into interest rate swap agreements that effectively convert the interest rate on certain fixed rate debt to a variable interest rate and, on certain variable rate debt, to a fixed interest rate. The Company periodically enters into treasury lock agreements to lock the benchmark rate for an anticipated fixed-rate borrowing. See also Note 4 and Note 5 of the notes to the consolidated financial statements for additional information. | ||||||||||||||||||||||||
On the date a derivative contract is entered into, the Company designates the derivative as either a hedge of variable cash flows to be paid related to interest on variable rate debt, as a hedge of market variation in the benchmark rate for a future fixed rate debt issue, as a hedge of foreign currency cash flows associated with certain forecasted commercial transactions or loans, or as a hedge of certain forecasted purchases of corn or natural gas used in the manufacturing process (“a cash-flow hedge”), or as a hedge of the fair value of certain debt obligations (“a fair-value hedge”). This process includes linking all derivatives that are designated as fair-value or cash-flow hedges to specific assets and liabilities on the Consolidated Balance Sheet, or to specific firm commitments or forecasted transactions. For all hedging relationships, the Company formally documents the hedging relationships and its risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed and a description of the method of measuring ineffectiveness. The Company also formally assesses both, at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. | ||||||||||||||||||||||||
Changes in the fair value of floating-to-fixed interest rate swaps, treasury locks or commodity futures and option contracts that are highly effective and that are designated and qualify as cash-flow hedges are recorded in other comprehensive income, net of applicable income taxes. Realized gains and losses associated with changes in the fair value of interest rate swaps and treasury locks are reclassified from accumulated other comprehensive income (“AOCI”) to the Consolidated Statement of Income over the life of the underlying debt. Gains and losses on hedges of foreign currency cash flows associated with certain forecasted commercial transactions or loans are reclassified from AOCI to the Consolidated Statement of Income when such transactions or obligations are settled. Gains and losses on commodity hedging contracts are reclassified from AOCI to the Consolidated Statement of Income when the finished goods produced using the hedged item are sold. The maximum term over which the Company hedges exposures to the variability of cash flows for commodity price risk is 24 months. Changes in the fair value of a fixed-to-floating interest rate swap agreement that is highly effective and that is designated and qualifies as a fair-value hedge, along with the loss or gain on the hedged debt obligation, are recorded in earnings. The ineffective portion of the change in fair value of a derivative instrument that qualifies as either a cash-flow hedge or a fair-value hedge is reported in earnings. | ||||||||||||||||||||||||
The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows or fair value of the hedged item, the derivative is de-designated as a hedging instrument because it is unlikely that a forecasted transaction will occur, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company continues to carry the derivative on the Consolidated Balance Sheet at its fair value, and gains and losses that were included in AOCI are recognized in earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective. | ||||||||||||||||||||||||
The Company uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage the transactional foreign exchange risk that is created when transactions not denominated in the functional currency of the operating unit are revalued. The changes in fair value of these derivative instruments and the offsetting changes in the value of the underlying non-functional currency denominated transactions are recorded in earnings on a monthly basis. | ||||||||||||||||||||||||
Stock-based compensation | ' | |||||||||||||||||||||||
Stock-based compensation — The Company has a stock incentive plan that provides for stock-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units and performance shares to certain key employees. Compensation expense is recognized in the Consolidated Statements of Income for the Company’s stock-based employee compensation plan. The plan is more fully described in Note 10. | ||||||||||||||||||||||||
Earnings per common share | ' | |||||||||||||||||||||||
Earnings per common share — Basic earnings per common share is computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, which totaled 77.0 million for 2013, 76.5 million for 2012 and 76.4 million for 2011. Diluted earnings per share (EPS) is computed by dividing net income attributable to Ingredion by the weighted average number of shares outstanding, including the dilutive effect of outstanding stock options and other instruments associated with long-term incentive compensation plans. The weighted average number of shares outstanding for diluted EPS calculations was 78.3 million, 78.2 million and 78.2 million for 2013, 2012 and 2011, respectively. In 2013, 2012 and 2011, options to purchase approximately 0.4 million, 0.9 million and 0.4 million shares of common stock, respectively, were excluded from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive. | ||||||||||||||||||||||||
Risks and uncertainties | ' | |||||||||||||||||||||||
Risks and uncertainties — The Company operates domestically and internationally. In each country, the business and assets are subject to varying degrees of risk and uncertainty. The Company insures its business and assets in each country against insurable risks in a manner that it deems appropriate. Because of this geographic dispersion, the Company believes that a loss from non-insurable events in any one country would not have a material adverse effect on the Company’s operations as a whole. Additionally, the Company believes there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect the Company’s results. | ||||||||||||||||||||||||
Recently adopted accounting standards | ' | |||||||||||||||||||||||
Recently adopted accounting standards — In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which requires new asset and liability offsetting disclosures for derivatives, repurchase agreements and security lending transactions to the extent that they are: (1) offset in the financial statements; or (2) subject to an enforceable master netting arrangement or similar agreement. This Update requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet and was effective for the Company in the first quarter of 2013. The Company’s derivative instruments are not offset in the financial statements and are not subject to right of offset provisions with our counterparties. Accordingly, this Update did not have a material impact on the Company’s 2013 Consolidated Financial Statements but could have an impact on future disclosures. Additional information about derivative instruments can be found in Note 4. | ||||||||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This Update does not change the current requirements for reporting net income or other comprehensive income in financial statements; however, it requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income for only amounts reclassified in their entirety in the same reporting period. This guidance was effective for annual periods beginning after December 15, 2012, and interim periods within those annual periods. The disclosures required by this Update are provided in Note 10. | ||||||||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
Schedule of carrying amount of goodwill by geographic segment | ' | |||||||||||||||||||||||
(in millions) | North | South | Asia | EMEA | Total | |||||||||||||||||||
America | America | Pacific | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 278 | $ | 101 | $ | 106 | $ | 77 | $ | 562 | ||||||||||||||
Impairment charges | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Currency translation | — | (6 | ) | — | 3 | (3 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Currency translation | — | (17 | ) | (7 | ) | 2 | (22 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 95 | $ | 225 | $ | 80 | $ | 679 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2012 | $ | 278 | $ | 95 | $ | 104 | $ | 80 | $ | 557 | ||||||||||||||
Goodwill before impairment charges | $ | 279 | $ | 78 | $ | 218 | $ | 82 | $ | 657 | ||||||||||||||
Accumulated impairment charges | (1 | ) | — | (121 | ) | — | (122 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 278 | $ | 78 | $ | 97 | $ | 82 | $ | 535 | ||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
(in millions) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | ||||||||||||||||
Amortization | Average | Amortization | Average | |||||||||||||||||||||
Useful | Useful | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||
(years) | (years) | |||||||||||||||||||||||
Trademarks/tradenames | $ | 132 | $ | — | $ | 132 | — | $ | 132 | $ | — | $ | 132 | — | ||||||||||
Customer relationships | 139 | (18 | ) | 121 | 25 | 143 | (13 | ) | 130 | 25 | ||||||||||||||
Technology | 83 | (27 | ) | 56 | 10 | 83 | (19 | ) | 64 | 10 | ||||||||||||||
Other | 6 | (4 | ) | 2 | 8 | 6 | (3 | ) | 3 | 8 | ||||||||||||||
Total other intangible assets | $ | 360 | $ | (49 | ) | $ | 311 | 19 | $ | 364 | $ | (35 | ) | $ | 329 | 19 |
Financial_Instruments_Derivati1
Financial Instruments, Derivatives and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Financial Instruments, Derivatives and Hedging Activities | ' | |||||||||||||||||||||||||
Schedule of location and amount of assets and liabilities reported in balance sheet | ' | |||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Derivatives designated as | Balance Sheet | At | At | Balance Sheet | At | At | ||||||||||||||||||||
hedging instruments: | Location | December 31, | December 31, | Location | December 31, | December 31, | ||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Commodity and foreign currency contracts | Accounts receivable-net | $ | 2 | $ | 5 | Accounts payable and accrued liabilities | $ | 27 | $ | 34 | ||||||||||||||||
Commodity and foreign currency contracts | Other assets | 5 | — | Non-current liabilities | — | 6 | ||||||||||||||||||||
Total | $ | 7 | $ | 5 | $ | 27 | $ | 40 | ||||||||||||||||||
Schedule of amount of gains and losses recognized in OCI and location and amount of gains and losses reported in income statement | ' | |||||||||||||||||||||||||
Additional information relating to the Company’s derivative instruments is presented below (in millions, pre-tax): | ||||||||||||||||||||||||||
Amount of Gains (Losses) | Amount of Gains (Losses) | |||||||||||||||||||||||||
Recognized in OCI on Derivatives | Reclassified from AOCI into Income | |||||||||||||||||||||||||
Derivatives in | Year Ended | Year Ended | Year Ended | Location of Gains | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Cash-Flow | December 31, | December 31, | December 31, | (Losses) | December 31, | December 31, | December 31, | |||||||||||||||||||
Hedging | 2013 | 2012 | 2011 | Reclassified from | 2013 | 2012 | 2011 | |||||||||||||||||||
Relationships | AOCI | |||||||||||||||||||||||||
into Income | ||||||||||||||||||||||||||
Commodity and foreign currency contracts | $ | (93 | ) | $ | 68 | $ | 48 | Cost of Sales | $ | (57 | ) | $ | 43 | $ | 169 | |||||||||||
Interest rate contracts | — | — | — | Financing costs, net | (3 | ) | (3 | ) | (3 | ) | ||||||||||||||||
Total | $ | (93 | ) | $ | 68 | $ | 48 | $ | (60 | ) | $ | 40 | $ | 166 | ||||||||||||
Schedule of fair value of financial instruments and derivatives | ' | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available for sale securities | $ | 4 | $ | 4 | $ | — | $ | — | $ | 3 | $ | 3 | $ | — | $ | — | ||||||||||
Derivative assets | 20 | — | 20 | — | 25 | 5 | 20 | — | ||||||||||||||||||
Derivative liabilities | 32 | 22 | 10 | — | 45 | 24 | 21 | — | ||||||||||||||||||
Long-term debt | 1,813 | — | 1,813 | — | 1,914 | — | 1,914 | — | ||||||||||||||||||
Schedule of carrying amounts and fair values of long-term debt | ' | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
amount | value | amount | value | |||||||||||||||||||||||
4.625% senior notes, due November 1, 2020 | $ | 399 | $ | 420 | $ | 399 | $ | 448 | ||||||||||||||||||
3.2% senior notes, due November 1, 2015 | 350 | 363 | 350 | 368 | ||||||||||||||||||||||
1.8% senior notes, due September 25, 2017 | 298 | 296 | 298 | 300 | ||||||||||||||||||||||
6.625% senior notes, due April 15, 2037 | 257 | 281 | 257 | 315 | ||||||||||||||||||||||
6.0% senior notes, due April 15, 2017 | 200 | 219 | 200 | 227 | ||||||||||||||||||||||
5.62% senior notes due March 25, 2020 | 200 | 221 | 200 | 236 | ||||||||||||||||||||||
Fair value adjustment related to hedged fixed rate debt instrument | 13 | 13 | 20 | 20 | ||||||||||||||||||||||
Total long-term debt | $ | 1,717 | $ | 1,813 | $ | 1,724 | $ | 1,914 | ||||||||||||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Financing Arrangements | ' | |||||||
Schedule of short-term borrowings | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Short-term borrowings in various currencies (at rates ranging from 1% to 11% for 2013 and 1% to 7% for 2012) | $ | 93 | $ | 76 | ||||
Schedule of components of long-term debt | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
4.625% senior notes, due November 1, 2020, net of discount of $1 | $ | 399 | $ | 399 | ||||
3.2% senior notes, due November 1, 2015 | 350 | 350 | ||||||
1.8% senior notes, due September 25, 2017, net of discount of $2 | 298 | 298 | ||||||
6.625% senior notes, due April 15, 2037, net of premium of $8 and discount of $1 | 257 | 257 | ||||||
6.0% senior notes, due April 15, 2017 | 200 | 200 | ||||||
5.62% senior notes, due March 25, 2020 | 200 | 200 | ||||||
Fair value adjustment related to hedged fixed rate debt instrument | 13 | 20 | ||||||
Total | $ | 1,717 | $ | 1,724 | ||||
Less: current maturities | — | — | ||||||
Long-term debt | $ | 1,717 | $ | 1,724 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases | ' | ||||
Schedule of minimum lease payments due on leases | ' | ||||
(in millions) | |||||
Year | Minimum Lease Payments | ||||
2014 | $ | 44 | |||
2015 | 37 | ||||
2016 | 33 | ||||
2017 | 25 | ||||
2018 | 19 | ||||
Balance thereafter | 38 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of income before income taxes and provision for income taxes | ' | ||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Income before income taxes: | |||||||||||
United States | $ | 138 | $ | 91 | $ | 158 | |||||
Foreign | 409 | 510 | 435 | ||||||||
Total | $ | 547 | $ | 601 | $ | 593 | |||||
Provision for income taxes: | |||||||||||
Current tax expense | |||||||||||
US federal | $ | 5 | $ | 3 | $ | 9 | |||||
State and local | 3 | 1 | 2 | ||||||||
Foreign | 106 | 166 | 141 | ||||||||
Total current | $ | 114 | $ | 170 | $ | 152 | |||||
Deferred tax expense (benefit) | |||||||||||
US federal | $ | 11 | $ | (5 | ) | $ | 10 | ||||
State and local | (2 | ) | 2 | 3 | |||||||
Foreign | 21 | — | 5 | ||||||||
Total deferred | $ | 30 | $ | (3 | ) | $ | 18 | ||||
Total provision for income taxes | $ | 144 | $ | 167 | $ | 170 | |||||
Schedule of tax effects of temporary differences between financial reporting basis and tax basis of assets and liabilities | ' | ||||||||||
(in millions) | 2013 | 2012 | |||||||||
Deferred tax assets attributable to: | |||||||||||
Employee benefit accruals | $ | 23 | $ | 19 | |||||||
Pensions and postretirement plans | 24 | 65 | |||||||||
Derivative contracts | 20 | 10 | |||||||||
Net operating loss carryforwards | 16 | 23 | |||||||||
Foreign tax credit carryforwards | 11 | 24 | |||||||||
Other | 42 | 53 | |||||||||
Gross deferred tax assets | $ | 136 | $ | 194 | |||||||
Valuation allowance | (3 | ) | (9 | ) | |||||||
Net deferred tax assets | $ | 133 | $ | 185 | |||||||
Deferred tax liabilities attributable to: | |||||||||||
Property, plant and equipment | $ | 200 | $ | 202 | |||||||
Identified intangibles | 57 | 59 | |||||||||
Gross deferred tax liabilities | $ | 257 | $ | 261 | |||||||
Net deferred tax liabilities | $ | 124 | $ | 76 | |||||||
Schedule of reconciliation of US federal statutory tax rate to effective tax rate | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Provision for tax at US statutory rate | 35 | % | 35 | % | 35 | % | |||||
Tax rate difference on foreign income | (5.28 | ) | (3.86 | ) | (3.62 | ) | |||||
State and local taxes — net | 0.35 | 0.79 | 0.58 | ||||||||
Change in valuation allowance — foreign tax credits | — | — | (0.62 | ) | |||||||
Reversal of Korea valuation allowance | — | (2.52 | ) | — | |||||||
Reversal of Chile valuation allowance | — | (0.06 | ) | (0.09 | ) | ||||||
Non-deductible National Starch acquisition costs | — | 0.04 | 0.04 | ||||||||
NAFTA Award | — | — | (3.45 | ) | |||||||
Other items — net | (3.74 | ) | (1.61 | ) | 0.83 | ||||||
Provision at effective tax rate | 26.33 | % | 27.78 | % | 28.67 | % | |||||
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | ' | ||||||||||
(in millions) | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 37 | $ | 35 | |||||||
Additions for tax positions related to prior years | 5 | 3 | |||||||||
Reductions for tax positions related to prior years | (6 | ) | — | ||||||||
Additions based on tax positions related to the current year | 1 | 6 | |||||||||
Reductions related to a lapse in the statute of limitations | (3 | ) | (7 | ) | |||||||
Balance at December 31 | $ | 34 | $ | 37 |
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Defined benefit pension plans | ' | |||||||||||||
Pension and postretirement benefit plans | ' | |||||||||||||
Schedule of funded status | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Benefit obligation | ||||||||||||||
At January 1 | $ | 323 | $ | 271 | $ | 272 | $ | 216 | ||||||
Service cost | 8 | 7 | 9 | 8 | ||||||||||
Interest cost | 11 | 12 | 12 | 13 | ||||||||||
Benefits paid | (14 | ) | (15 | ) | (12 | ) | (12 | ) | ||||||
Actuarial (gain) loss | (36 | ) | 48 | (15 | ) | 34 | ||||||||
Business combinations / transfers | 1 | — | — | 12 | ||||||||||
Curtailment / settlement | — | — | (2 | ) | (4 | ) | ||||||||
Foreign currency translation | — | — | (14 | ) | 5 | |||||||||
Benefit obligation at December 31 | $ | 293 | $ | 323 | $ | 250 | $ | 272 | ||||||
Fair value of plan assets | ||||||||||||||
At January 1 | $ | 257 | $ | 222 | $ | 189 | $ | 156 | ||||||
Actual return on plan assets | 41 | 27 | 16 | 12 | ||||||||||
Employer contributions | 13 | 23 | 43 | 15 | ||||||||||
Benefits paid | (14 | ) | (15 | ) | (12 | ) | (12 | ) | ||||||
Business combinations / transfers | — | — | — | 15 | ||||||||||
Foreign currency translation | — | — | (13 | ) | 3 | |||||||||
Fair value of plan assets at December 31 | $ | 297 | $ | 257 | $ | 223 | $ | 189 | ||||||
Funded status | $ | 4 | $ | (66 | ) | $ | (27 | ) | $ | (83 | ) | |||
Schedule of amounts recognized in the consolidated balance sheets | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Non-current asset | $ | 16 | $ | — | $ | 26 | $ | 1 | ||||||
Current liabilities | (1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||
Non-current liabilities | (11 | ) | (65 | ) | (50 | ) | (81 | ) | ||||||
Net asset (liability) recognized | $ | 4 | $ | (66 | ) | $ | (27 | ) | $ | (83 | ) | |||
Schedule of amounts recognized in accumulated other comprehensive loss | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net actuarial loss | $ | 7 | $ | 67 | $ | 59 | $ | 92 | ||||||
Transition obligation | — | — | 2 | 2 | ||||||||||
Net amount recognized | $ | 7 | $ | 67 | $ | 61 | $ | 94 | ||||||
Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Projected benefit obligation | $ | 10 | $ | 323 | $ | 52 | $ | 262 | ||||||
Accumulated benefit obligation | 8 | 314 | 42 | 227 | ||||||||||
Fair value of plan assets | — | 257 | 3 | 178 | ||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||
Service cost | $8 | $7 | $7 | $9 | $8 | $5 | ||||||||
Interest cost | 11 | 12 | 13 | 12 | 13 | 15 | ||||||||
Expected return on plan assets | (18 | ) | (16 | ) | (15 | ) | (12 | ) | (13 | ) | (11 | ) | ||
Amortization of actuarial loss | 2 | 1 | 1 | 5 | 4 | 2 | ||||||||
Amortization of transition obligation | — | — | — | — | 1 | 1 | ||||||||
Settlement/Curtailment | — | — | 2 | — | 1 | — | ||||||||
Net periodic benefit cost | $3 | $4 | $8 | $14 | $14 | $12 | ||||||||
Schedule of amounts recorded in other comprehensive income and net periodic benefit cost | ' | |||||||||||||
(in millions, pre-tax) | US Plans | Non-US Plans | ||||||||||||
Net actuarial gain | $ | (58 | ) | $ | (23 | ) | ||||||||
Amortization of actuarial loss | (2 | ) | (5 | ) | ||||||||||
Foreign currency translation | — | (5 | ) | |||||||||||
Total recorded in other comprehensive income | (60 | ) | (33 | ) | ||||||||||
Net periodic benefit cost | 3 | 14 | ||||||||||||
Total recorded in other comprehensive income and net periodic benefit cost | $ | (57 | ) | $ | (19 | ) | ||||||||
Schedule of weighted average assumptions used to determine the company's obligations | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Discount rate | 4.6 | % | 3.6 | % | 5.6 | % | 4.85 | % | ||||||
Rate of compensation increase | 4.22 | % | 4.19 | % | 4.39 | % | 4.35 | % | ||||||
Schedule of weighted average assumptions used to determine the company's net periodic benefit cost | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||
Discount rate | 3.6 | % | 4.5 | % | 5.35 | % | 4.88 | % | 5.68 | % | 5.73 | % | ||
Expected long-term return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | 6.69 | % | 6.81 | % | 6.73 | % | ||
Rate of compensation increase | 4.19 | % | 4.19 | % | 2.75 | % | 4.35 | % | 4.51 | % | 3.79 | % | ||
Schedule of weighted average asset allocation | ' | |||||||||||||
US Plans | Non-US Plans | |||||||||||||
Asset Category | 2013 | 2012 | 2013 | 2012 | ||||||||||
Equity securities | 62 | % | 61 | % | 51 | % | 42 | % | ||||||
Debt securities | 36 | % | 38 | % | 39 | % | 47 | % | ||||||
Cash and other | 2 | % | 1 | % | 10 | % | 11 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||
Schedule of fair values of the company's plan assets, by asset category and level | ' | |||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||
Asset Category | Quoted Prices | Significant | Significant | Total | ||||||||||
(in millions) | in Active | Observable | Unobservable | |||||||||||
Markets for | Inputs | Inputs | ||||||||||||
Identical | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
US Plans: | ||||||||||||||
Equity index: | ||||||||||||||
US (a) | $ | 151 | $ | 151 | ||||||||||
International (b) | 32 | 32 | ||||||||||||
Real estate (c) | 3 | 3 | ||||||||||||
Fixed income index: | ||||||||||||||
Intermediate bond (d) | 57 | 57 | ||||||||||||
Long bond (e) | 50 | 50 | ||||||||||||
Cash (f) | 4 | 4 | ||||||||||||
Total US Plans | $ | 297 | $ | 297 | ||||||||||
Non-US Plans: | ||||||||||||||
Equity index: | ||||||||||||||
US (a) | $ | 38 | $ | 38 | ||||||||||
Canada (g) | 38 | 38 | ||||||||||||
International (b) | 39 | 39 | ||||||||||||
Fixed income index: | ||||||||||||||
Intermediate bond (d) | 1 | 1 | ||||||||||||
Long bond (h) | 85 | 85 | ||||||||||||
Other (i) | 19 | 19 | ||||||||||||
Cash (f) | 3 | 3 | ||||||||||||
Total Non-US Plans | $ | 3 | $ | 220 | $ | 223 | ||||||||
(a) This category consists of a passively managed equity index fund that tracks the return of large capitalization US equities. | ||||||||||||||
(b) This category consists of a passively managed equity index fund that tracks an index of returns on international developed market equities. | ||||||||||||||
(c) This category consists of a passively managed equity index fund that tracks a US real estate equity securities index that includes equities of real estate investment trusts and real estate operating companies. | ||||||||||||||
(d) This category consists of a passively managed fixed income index fund that tracks the return of intermediate duration government and investment grade corporate bonds. | ||||||||||||||
(e) This category consists of a passively managed fixed income fund that tracks the return of long duration US government and investment grade corporate bonds. | ||||||||||||||
(f) This category represents cash or cash equivalents. | ||||||||||||||
(g) This category consists of a passively managed equity index fund that tracks the return of large and mid-sized capitalization equities traded on the Toronto Stock Exchange. | ||||||||||||||
(h) This category consists of a passively managed fixed income index fund that tracks the return of the universe of Canada government and investment grade corporate bonds. | ||||||||||||||
(i) This category mainly consists of investment products provided by an insurance company that offers returns that are subject to a minimum guarantee. | ||||||||||||||
Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made | ' | |||||||||||||
(in millions) | US Plans | Non-US Plans | ||||||||||||
2014 | $ | 18 | $ | 15 | ||||||||||
2015 | 17 | 14 | ||||||||||||
2016 | 17 | 14 | ||||||||||||
2017 | 19 | 14 | ||||||||||||
2018 | 20 | 15 | ||||||||||||
Years 2019 - 2023 | 105 | 79 | ||||||||||||
Postretirement Benefit Plans | ' | |||||||||||||
Pension and postretirement benefit plans | ' | |||||||||||||
Schedule of funded status | ' | |||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Accumulated postretirement benefit obligation | ||||||||||||||
At January 1 | $ | 74 | $ | 54 | ||||||||||
Service cost | 3 | 2 | ||||||||||||
Interest cost | 4 | 3 | ||||||||||||
Curtailment / settlement | (1 | ) | — | |||||||||||
Actuarial (gain) loss | (15 | ) | 17 | |||||||||||
Benefits paid | (3 | ) | (2 | ) | ||||||||||
Foreign currency translation | (5 | ) | — | |||||||||||
At December 31 | $ | 57 | $ | 74 | ||||||||||
Fair value of plan assets | — | — | ||||||||||||
Funded status | $ | (57 | ) | $ | (74 | ) | ||||||||
Schedule of amounts recognized in the consolidated balance sheets | ' | |||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Current liabilities | $ | (2 | ) | $ | (2 | ) | ||||||||
Non-current liabilities | (55 | ) | (72 | ) | ||||||||||
Net liability recognized | $ | (57 | ) | $ | (74 | ) | ||||||||
Schedule of amounts recognized in accumulated other comprehensive loss | ' | |||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
Net actuarial loss | $ | 7 | $ | 26 | ||||||||||
Prior service cost | — | 1 | ||||||||||||
Net amount recognized | $ | 7 | $ | 27 | ||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 3 | $ | 2 | $ | 2 | ||||||||
Interest cost | 4 | 3 | 4 | |||||||||||
Amortization of actuarial loss (gain) | 1 | 1 | (1 | ) | ||||||||||
Amortization of prior service cost | — | — | 1 | |||||||||||
Settlement / curtailment | — | — | (31 | ) | ||||||||||
Net periodic benefit cost | $ | 8 | $ | 6 | $ | (25 | ) | |||||||
Schedule of amounts recorded in other comprehensive income and net periodic benefit cost | ' | |||||||||||||
(in millions, pre-tax) | 2013 | |||||||||||||
Net actuarial gain | $ | (15 | ) | |||||||||||
Amortization of actuarial loss | (1 | ) | ||||||||||||
Amortization of prior service cost | (1 | ) | ||||||||||||
Foreign currency translation | (3 | ) | ||||||||||||
Total recorded in other comprehensive income | (20 | ) | ||||||||||||
Net periodic benefit cost | 8 | |||||||||||||
Total recorded in other comprehensive income and net periodic benefit cost | $ | (12 | ) | |||||||||||
Schedule of weighted average assumptions used to determine the company's obligations | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Discount rate | 6.47 | % | 5.44 | % | ||||||||||
Schedule of weighted average assumptions used to determine the company's net periodic benefit cost | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Discount rate | 5.44 | % | 6.23 | % | 5.69 | % | ||||||||
Schedule of assumptions made in measuring the company's postretirement benefit obligation | ' | |||||||||||||
US | Canada | Brazil | ||||||||||||
2014 Increase in per capita cost | 6.9 | % | 7.2 | % | 8.66 | % | ||||||||
Ultimate trend | 4.5 | % | 4.5 | % | 8.66 | % | ||||||||
Year ultimate trend reached | 2028 | 2031 | 2013 | |||||||||||
Sensitivity to Trend Assumptions | ' | |||||||||||||
2013 | ||||||||||||||
One-percentage point increase in trend rates: | ||||||||||||||
· Increase in service cost and interest cost components | $ | 1 million | ||||||||||||
· Increase in year-end benefit obligations | $ | 6 million | ||||||||||||
One-percentage point decrease in trend rates: | ||||||||||||||
· Decrease in service cost and interest cost components | $ | (1 million) | ||||||||||||
· Decrease in year-end benefit obligations | $ | (4 million) | ||||||||||||
Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made | ' | |||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 2 | ||||||||||||
2015 | 3 | |||||||||||||
2016 | 3 | |||||||||||||
2017 | 3 | |||||||||||||
2018 | 3 | |||||||||||||
Years 2019 - 2023 | $ | 21 | ||||||||||||
Supplementary_Information_Tabl
Supplementary Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplementary Information | ' | ||||||||||
Balance Sheets - supplementary information | ' | ||||||||||
(in millions) | 2013 | 2012 | |||||||||
Accounts receivable — net: | |||||||||||
Accounts receivable — trade | $ | 667 | $ | 707 | |||||||
Accounts receivable — other | 171 | 117 | |||||||||
Allowance for doubtful accounts | (6 | ) | (10 | ) | |||||||
Total accounts receivable — net | $ | 832 | $ | 814 | |||||||
Inventories: | |||||||||||
Finished and in process | $ | 440 | $ | 475 | |||||||
Raw materials | 235 | 313 | |||||||||
Manufacturing supplies | 48 | 46 | |||||||||
Total inventories | $ | 723 | $ | 834 | |||||||
Accrued liabilities: | |||||||||||
Compensation-related costs | $ | 75 | $ | 90 | |||||||
Income taxes payable | 14 | 25 | |||||||||
Dividends payable | 32 | 20 | |||||||||
Accrued interest | 16 | 16 | |||||||||
Taxes payable other than income taxes | 32 | 33 | |||||||||
Other | 100 | 81 | |||||||||
Total accrued liabilities | $ | 269 | $ | 265 | |||||||
Non-current liabilities: | |||||||||||
Employees’ pension, indemnity and postretirement | $ | 133 | $ | 235 | |||||||
Other | 30 | 62 | |||||||||
Total non-current liabilities | $ | 163 | $ | 297 | |||||||
Statements of Income - supplementary information | ' | ||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Other income - net: | |||||||||||
Gain from change in benefit plan in North America | $ | — | $ | 5 | $ | — | |||||
Gain from sale of land | — | 2 | — | ||||||||
NAFTA award | — | — | 58 | ||||||||
Gain from change in a postretirement plan | — | — | 30 | ||||||||
Other | 16 | 15 | 10 | ||||||||
Other income - net | $ | 16 | $ | 22 | $ | 98 | |||||
Financing costs-net: | |||||||||||
Interest expense, net of amounts capitalized (a) | $ | 74 | $ | 77 | $ | 81 | |||||
Interest income | (11 | ) | (10 | ) | (5 | ) | |||||
Foreign currency transaction losses | 3 | — | 2 | ||||||||
Financing costs-net | $ | 66 | $ | 67 | $ | 78 | |||||
(a) Interest capitalized amounted to $4 million, $6 million and $5 million in 2013, 2012 and 2011, respectively. | |||||||||||
Statements of Cash Flow - supplementary information | ' | ||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Interest paid | $ | 67 | $ | 72 | $ | 85 | |||||
Income taxes paid | 135 | 133 | 177 | ||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity | ' | ||||||||||||||||
Schedule of reconciliation of common stock share activity | ' | ||||||||||||||||
(Shares of common stock, in thousands) | Issued | Held in Treasury | Outstanding | ||||||||||||||
Balance at December 31, 2010 | 76,035 | 12 | 76,023 | ||||||||||||||
Issuance of restricted stock units as compensation | 56 | — | 56 | ||||||||||||||
Issuance under incentive and other plans | 91 | (9 | ) | 100 | |||||||||||||
Stock options exercised | 640 | (137 | ) | 777 | |||||||||||||
Purchase/acquisition of treasury stock | — | 1,073 | (1,073 | ) | |||||||||||||
Balance at December 31, 2011 | 76,822 | 939 | 75,883 | ||||||||||||||
Issuance of restricted stock units as compensation | — | (6 | ) | 6 | |||||||||||||
Issuance under incentive and other plans | — | (142 | ) | 142 | |||||||||||||
Stock options exercised | 320 | (1,026 | ) | 1,346 | |||||||||||||
Purchase/acquisition of treasury stock | — | 345 | (345 | ) | |||||||||||||
Balance at December 31, 2012 | 77,142 | 110 | 77,032 | ||||||||||||||
Issuance of restricted stock units as compensation | 6 | (3 | ) | 9 | |||||||||||||
Issuance under incentive and other plans | 130 | (43 | ) | 173 | |||||||||||||
Stock options exercised | 395 | (110 | ) | 505 | |||||||||||||
Purchase/acquisition of treasury stock | — | 3,407 | (3,407 | ) | |||||||||||||
Balance at December 31, 2013 | 77,673 | 3,361 | 74,312 | ||||||||||||||
Schedule of valuation assumptions for stock options | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected life (in years) | 5.8 | 5.8 | 5.8 | ||||||||||||||
Risk-free interest rate | 1.1 | % | 1.1 | % | 2.8 | % | |||||||||||
Expected volatility | 32.6 | % | 33.3 | % | 32.7 | % | |||||||||||
Expected dividend yield | 1.6 | % | 1.2 | % | 1.2 | % | |||||||||||
Schedule of stock option activity | ' | ||||||||||||||||
(shares in thousands) | Stock Option | Stock Option | Weighted | ||||||||||||||
Shares | Price Range | Average | |||||||||||||||
per Share | |||||||||||||||||
Exercise Price | |||||||||||||||||
for Stock | |||||||||||||||||
Options | |||||||||||||||||
Outstanding at December 31, 2010 | 4,434 | $ | 14.17 to 40.71 | $ | 27.49 | ||||||||||||
Granted | 438 | 47.95 to 52.64 | 47.96 | ||||||||||||||
Exercised | (777 | ) | 14.17 to 40.71 | 24.24 | |||||||||||||
Cancelled | (65 | ) | 18.31 to 47.95 | 30.6 | |||||||||||||
Outstanding at December 31, 2011 | 4,030 | 14.33 to 52.64 | 30.29 | ||||||||||||||
Granted | 460 | 55.95 to 57.33 | 55.96 | ||||||||||||||
Exercised | (1,409 | ) | 14.33 to 47.95 | 26.8 | |||||||||||||
Cancelled | (49 | ) | 25.58 to 55.95 | 39.29 | |||||||||||||
Outstanding at December 31, 2012 | 3,032 | 16.92 to 57.33 | 35.66 | ||||||||||||||
Granted | 416 | 66.07 to 66.26 | 66.07 | ||||||||||||||
Exercised | (511 | ) | 16.92 to 57.33 | 28.74 | |||||||||||||
Cancelled | (88 | ) | 47.95 to 66.07 | 54.37 | |||||||||||||
Outstanding at December 31, 2013 | 2,849 | 24.70 to 66.26 | 40.77 | ||||||||||||||
Schedule of summary of information about outstanding and exercisable stock options, by range of exercise prices | ' | ||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||
(options in thousands) | Options | Weighted Average Exercise | Average Remaining | Options | Weighted Average | ||||||||||||
Range of Exercise Prices | Outstanding | Price per Share | Contractual Life (Years) | Exercisable | Exercise Price | ||||||||||||
Per Share | |||||||||||||||||
$ 24.70 to 27.30 | 557 | $ | 25.47 | 3.22 | 557 | $ | 25.47 | ||||||||||
$ 27.31 to 29.90 | 465 | 29 | 6.07 | 465 | 29 | ||||||||||||
$ 32.51 to 35.10 | 676 | 34.04 | 3.68 | 676 | 34.04 | ||||||||||||
$ 45.51 to 53.30 | 357 | 47.96 | 7.11 | 239 | 47.96 | ||||||||||||
$ 55.91 to 58.50 | 405 | 55.95 | 8.11 | 142 | 55.95 | ||||||||||||
$ 63.71 to 66.26 | 389 | 66.07 | 9.1 | — | — | ||||||||||||
2,849 | $ | 40.77 | 5.78 | 2,079 | $ | 33.71 | |||||||||||
Schedule of restricted share and restricted unit activity | ' | ||||||||||||||||
(shares in thousands) | Number of | Weighted | Number of | Weighted | |||||||||||||
Restricted | Average | Restricted | Average | ||||||||||||||
Shares | Fair Value | Units | Fair Value | ||||||||||||||
per Share | per Share | ||||||||||||||||
Non-vested at December 31, 2010 | 181 | $ | 30.04 | 113 | $ | 30.56 | |||||||||||
Granted | — | — | 182 | 48.04 | |||||||||||||
Vested | (34 | ) | 27.56 | (56 | ) | 26.08 | |||||||||||
Cancelled | (11 | ) | 29.74 | (4 | ) | 47.98 | |||||||||||
Non-vested at December 31, 2011 | 136 | $ | 30.69 | 235 | $ | 44.24 | |||||||||||
Granted | — | — | 174 | 55.69 | |||||||||||||
Vested | (37 | ) | 33.73 | (9 | ) | 37.57 | |||||||||||
Cancelled | (4 | ) | 25.58 | (15 | ) | 44.95 | |||||||||||
Non-vested at December 31, 2012 | 95 | $ | 29.69 | 385 | $ | 49.77 | |||||||||||
Granted | — | — | 144 | 66.27 | |||||||||||||
Vested | (33 | ) | 34.02 | (17 | ) | 46.82 | |||||||||||
Cancelled | (14 | ) | 31.25 | (43 | ) | 54.93 | |||||||||||
Non-vested at December 31, 2013 | 48 | $ | 26.25 | 469 | $ | 54.47 | |||||||||||
Summary of accumulated other comprehensive income (loss) | ' | ||||||||||||||||
Unrealized | |||||||||||||||||
Cumulative | Deferred | Pension/ | Gain | Accumulated | |||||||||||||
Gain/(Loss) | (Loss) | Other | |||||||||||||||
Translation | on Hedging | Postretirement | on | Comprehensive | |||||||||||||
(in millions) | Adjustment | Activities | Adjustment | Investment | Loss | ||||||||||||
Balance, December 31, 2010 | $ | (180 | ) | $ | 41 | $ | (49 | ) | $ | (2 | ) | $ | (190 | ) | |||
Gains on cash-flow hedges, net of income tax effect of $19 | 29 | 29 | |||||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $61 | (105 | ) | (105 | ) | |||||||||||||
Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax of $4 | (10 | ) | (10 | ) | |||||||||||||
Gains related to pension and other postretirement obligations reclassified to earnings, net of income tax of $5 | (11 | ) | (11 | ) | |||||||||||||
Currency translation adjustment | (126 | ) | (126 | ) | |||||||||||||
Balance, December 31, 2011 | $ | (306 | ) | $ | (35 | ) | $ | (70 | ) | $ | (2 | ) | $ | (413 | ) | ||
Gains on cash-flow hedges, net of income tax effect of $25 | 43 | 43 | |||||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $15 | (25 | ) | (25 | ) | |||||||||||||
Actuarial loss on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $27 | (56 | ) | (56 | ) | |||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $2 | 5 | 5 | |||||||||||||||
Currency translation adjustment | (29 | ) | (29 | ) | |||||||||||||
Balance, December 31, 2012 | $ | (335 | ) | $ | (17 | ) | $ | (121 | ) | $ | (2 | ) | $ | (475 | ) | ||
Losses on cash-flow hedges, net of income tax effect of $29 | (64 | ) | (64 | ) | |||||||||||||
Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19 | 41 | 41 | |||||||||||||||
Actuarial gain on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $32 | 63 | 63 | |||||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax of $3 | 5 | 5 | |||||||||||||||
Unrealized gain on investment, net of income tax effect | 1 | 1 | |||||||||||||||
Currency translation adjustment | (154 | ) | (154 | ) | |||||||||||||
Balance, December 31, 2013 | $ | (489 | ) | $ | (40 | ) | $ | (53 | ) | $ | (1 | ) | $ | (583 | ) | ||
Schedule of reclassifications from AOCI into net income | ' | ||||||||||||||||
Affected Line Item in | |||||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Consolidated Statements | |||||||||||||||
(in millions) | 2013 | 2012 | 2011 | of Income | |||||||||||||
Gains (losses) on cash-flow hedges: | |||||||||||||||||
Commodity and foreign currency contracts | $ | (57 | ) | $ | 43 | $ | 169 | Cost of sales | |||||||||
Interest rate contracts | (3 | ) | (3 | ) | (3 | ) | Financing costs, net | ||||||||||
Gains (losses) related to pension and other postretirement obligations | (8 | ) | (7 | ) | 16 | (a) | |||||||||||
Total before tax reclassifications | $ | (68 | ) | $ | 33 | $ | 182 | ||||||||||
Income tax (expense) benefit | 22 | (13 | ) | (66 | ) | ||||||||||||
Total after-tax reclassifications | $ | (46 | ) | $ | 20 | $ | 116 | ||||||||||
(a) This component is included in the computation of net periodic benefit cost and affects both cost of sales and SG&A expenses on the Consolidated Statements of Income. | |||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Schedule of segment reporting of net sales, operating income, total assets, depreciation and amortization and capital expenditures | ' | ||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Net sales to unaffiliated customers: | |||||||||||
North America | $ | 3,647 | $ | 3,741 | $ | 3,356 | |||||
South America | 1,334 | 1,462 | 1,569 | ||||||||
Asia Pacific | 805 | 816 | 764 | ||||||||
EMEA | 542 | 513 | 530 | ||||||||
Total | $ | 6,328 | $ | 6,532 | $ | 6,219 | |||||
Operating income: | |||||||||||
North America | $ | 401 | $ | 408 | $ | 322 | |||||
South America | 116 | 198 | 203 | ||||||||
Asia Pacific | 97 | 95 | 79 | ||||||||
EMEA | 74 | 78 | 84 | ||||||||
Corporate | (75 | ) | (78 | ) | (64 | ) | |||||
Subtotal | 613 | 701 | 624 | ||||||||
Restructuring / impairment charges (a) | — | (36 | ) | (10 | ) | ||||||
Gain from change in benefit plans | — | 5 | 30 | ||||||||
Integration / acquisition costs | — | (4 | ) | (31 | ) | ||||||
Gain from land sale | — | 2 | — | ||||||||
NAFTA award | — | — | 58 | ||||||||
Total | $ | 613 | $ | 668 | $ | 671 | |||||
Total assets: | |||||||||||
North America | $ | 3,008 | $ | 3,116 | $ | 2,879 | |||||
South America | 1,088 | 1,230 | 1,218 | ||||||||
Asia Pacific | 711 | 730 | 757 | ||||||||
EMEA | 553 | 516 | 463 | ||||||||
Total | $ | 5,360 | $ | 5,592 | $ | 5,317 | |||||
Depreciation and amortization: | |||||||||||
North America | $ | 112 | $ | 130 | $ | 128 | |||||
South America | 41 | 44 | 47 | ||||||||
Asia Pacific | 25 | 24 | 23 | ||||||||
EMEA | 16 | 13 | 13 | ||||||||
Total | $ | 194 | $ | 211 | $ | 211 | |||||
Capital expenditures: | |||||||||||
North America | $ | 141 | $ | 162 | $ | 119 | |||||
South America | 76 | 75 | 84 | ||||||||
Asia Pacific | 28 | 33 | 24 | ||||||||
EMEA | 53 | 43 | 36 | ||||||||
Total | $ | 298 | $ | 313 | $ | 263 | |||||
(a). For 2012, includes $20 million of charges for impaired assets and restructuring costs in Kenya, $11 million of charges to write-down certain equipment as part of the Company’s North American manufacturing optimization plan and $5 million of charges for impaired assets in China and Colombia. For 2011, includes $10 million of charges to write-down certain equipment as part of the Company’s North American manufacturing optimization plan. | |||||||||||
Schedule of net sales to unaffiliated customers by country of origin | ' | ||||||||||
Net Sales | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 1,970 | $ | 2,035 | $ | 1,863 | |||||
Mexico | 1,130 | 1,143 | 957 | ||||||||
Brazil | 670 | 731 | 841 | ||||||||
Canada | 547 | 564 | 536 | ||||||||
Argentina | 305 | 356 | 344 | ||||||||
Korea | 301 | 306 | 284 | ||||||||
Others | 1,405 | 1,397 | 1,394 | ||||||||
Total | $ | 6,328 | $ | 6,532 | $ | 6,219 | |||||
Schedule of long-lived assets (excluding intangible assets) by country | ' | ||||||||||
Long-lived Assets | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 822 | $ | 824 | $ | 830 | |||||
Brazil | 321 | 346 | 370 | ||||||||
Mexico | 296 | 290 | 277 | ||||||||
Canada | 181 | 199 | 189 | ||||||||
Germany | 151 | 114 | 90 | ||||||||
Thailand | 112 | 117 | 112 | ||||||||
Argentina | 92 | 111 | 107 | ||||||||
Korea | 91 | 90 | 83 | ||||||||
Others | 219 | 234 | 229 | ||||||||
Total | $ | 2,285 | $ | 2,325 | $ | 2,287 | |||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Schedule of quarterly financial data | ' | |||||||||||||
(in millions, except per share amounts) | 1st QTR | 2nd QTR | 3rd QTR | 4th QTR | ||||||||||
2013 | ||||||||||||||
Net sales before shipping and handling costs | $ | 1,662 | $ | 1,715 | $ | 1,696 | $ | 1,579 | ||||||
Less: shipping and handling costs | 78 | 82 | 84 | 80 | ||||||||||
Net sales | $ | 1,584 | $ | 1,633 | $ | 1,612 | $ | 1,499 | ||||||
Gross profit | 306 | 276 | 259 | 291 | ||||||||||
Net income attributable to Ingredion | 111 | 95 | 86 | 104 | ||||||||||
Basic earnings per common share of Ingredion | $ | 1.43 | $ | 1.22 | $ | 1.12 | $ | 1.37 | ||||||
Diluted earnings per common share of Ingredion | $ | 1.41 | $ | 1.2 | $ | 1.1 | $ | 1.35 | ||||||
(in millions, except per share amounts) | 1st QTR | 2nd QTR | 3rd QTR | 4th QTR | ||||||||||
2012 | ||||||||||||||
Net sales before shipping and handling costs | $ | 1,658 | $ | 1,720 | $ | 1,764 | $ | 1,726 | ||||||
Less: shipping and handling costs | 84 | 85 | 85 | 82 | ||||||||||
Net sales | $ | 1,574 | $ | 1,635 | $ | 1,679 | $ | 1,644 | ||||||
Gross profit | 296 | 295 | 313 | 333 | ||||||||||
Net income attributable to Ingredion | 94 | 109 | 113 | 112 | ||||||||||
Basic earnings per common share of Ingredion | $ | 1.23 | $ | 1.42 | $ | 1.47 | $ | 1.45 | ||||||
Diluted earnings per common share of Ingredion | $ | 1.21 | $ | 1.4 | $ | 1.45 | $ | 1.42 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Maximum | Building | Building | All other assets | All other assets | ||||
Minimum | Maximum | Minimum | Maximum | |||||
Investments | ' | ' | ' | ' | ' | ' | ' | ' |
Investments held by subsidiary accounted for under cost method | $6 | ' | $6 | ' | ' | ' | ' | ' |
Property, plant and equipment and depreciation | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life | ' | ' | ' | ' | '10 years | '50 years | '3 years | '20 years |
Foreign currency transaction and translation | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative translation loss adjustments | 489 | ' | 335 | ' | ' | ' | ' | ' |
Foreign currency transaction losses | $3 | $2 | ' | $1 | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
North America | North America | North America | South America | South America | Asia Pacific | Asia Pacific | EMEA | EMEA | |||
Carrying amount of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $557 | $562 | $278 | $278 | $278 | $95 | $101 | $104 | $106 | $80 | $77 |
Impairment charges | ' | -2 | ' | ' | ' | ' | ' | ' | -2 | ' | ' |
Currency translation | -22 | -3 | ' | ' | ' | -17 | -6 | -7 | ' | 2 | 3 |
Goodwill before impairment charges | 657 | 679 | 279 | 279 | ' | 78 | 95 | 218 | 225 | 82 | 80 |
Accumulated impairment charges | -122 | -122 | -1 | -1 | ' | ' | ' | -121 | -121 | ' | ' |
Balance at the end of the period | $535 | $557 | $278 | $278 | $278 | $78 | $95 | $97 | $104 | $82 | $80 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Identifiable intangible assets | ' | ' | ' | ' |
Gross | $360 | $360 | $364 | ' |
Accumulated Amortization | -49 | -49 | -35 | ' |
Net | 311 | 311 | 329 | ' |
Weighted Average Useful Life | ' | '19 years | '19 years | ' |
Amortization expense | ' | 14 | 14 | 14 |
Impairment of goodwill and other indefinite-lived intangible assets | 0 | ' | ' | ' |
Hedging instruments | ' | ' | ' | ' |
Maximum term over which the company hedges exposures to the variability of cash flows for commodity price risk | ' | '24 months | ' | ' |
Earnings per common share | ' | ' | ' | ' |
Weighted average number of shares outstanding, basic | ' | 77 | 76.5 | 76.4 |
Weighted average number of shares outstanding, diluted | ' | 78.3 | 78.2 | 78.2 |
Antidilutive securities excluded from computation of earnings per share amount | ' | 0.4 | 0.9 | 0.4 |
Expected intangible amortization expense for subsequent years | ' | ' | ' | ' |
2014 | 14 | 14 | ' | ' |
2015 | 14 | 14 | ' | ' |
2016 | 14 | 14 | ' | ' |
2017 | 14 | 14 | ' | ' |
2018 | 14 | 14 | ' | ' |
Trademarks / tradenames | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' |
Gross | 132 | 132 | 132 | ' |
Net | 132 | 132 | 132 | ' |
Customer relationships | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' |
Gross | 139 | 139 | 143 | ' |
Accumulated Amortization | -18 | -18 | -13 | ' |
Net | 121 | 121 | 130 | ' |
Weighted Average Useful Life | ' | '25 years | '25 years | ' |
Technology | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' |
Gross | 83 | 83 | 83 | ' |
Accumulated Amortization | -27 | -27 | -19 | ' |
Net | 56 | 56 | 64 | ' |
Weighted Average Useful Life | ' | '10 years | '10 years | ' |
Other | ' | ' | ' | ' |
Identifiable intangible assets | ' | ' | ' | ' |
Gross | 6 | 6 | 6 | ' |
Accumulated Amortization | -4 | -4 | -3 | ' |
Net | $2 | $2 | $3 | ' |
Weighted Average Useful Life | ' | '8 years | '8 years | ' |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment Charges (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
North American facilities | North American facilities | Kenya operations | China operations | China operations | Colombia operations | |||
Restructuring and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring/impairment charges | $36 | $10 | $11 | $10 | $20 | $4 | ' | ' |
Currency translation adjustment | ' | ' | ' | ' | 8 | ' | ' | ' |
Fixed asset impairment charge | ' | ' | ' | ' | 6 | ' | ' | ' |
Working capital adjustments | ' | ' | ' | ' | 2 | ' | ' | ' |
Severance pay related to the termination of employees in Kenya | ' | ' | ' | ' | 2 | ' | ' | ' |
Additional restructuring costs | ' | ' | ' | ' | 2 | ' | ' | ' |
Write-off of impaired assets | 24 | ' | ' | ' | ' | ' | ' | 1 |
Proceeds from sale of business | ' | ' | ' | ' | ' | ' | 3 | ' |
Accelerated depreciation | ' | ' | $10 | $8 | ' | ' | ' | ' |
Financial_Instruments_Derivati2
Financial Instruments, Derivatives and Hedging Activities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 25, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Commodity contracts | Commodity contracts | Derivatives in Cash-Flow Hedging Relationships | Derivatives in Cash-Flow Hedging Relationships | Derivatives in Cash-Flow Hedging Relationships | Derivatives in Cash-Flow Hedging Relationships | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | Fair-value hedge | ||||
Minimum | Maximum | Commodity contracts | Commodity contracts | T-Locks | T-Locks | Interest rate swaps | Interest rate swaps | Interest rate swaps | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | |||||
3.2% senior notes due November 1, 2015 | 3.2% senior notes due November 1, 2015 | 3.2% senior notes due November 1, 2015 | Short | Short | Long | Long | |||||||||||||
Financial instruments, derivatives and hedging activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of price risk derivative | ' | ' | ' | ' | '12 months | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated gains (losses) from derivative instruments, net of tax effect | ($583) | ($475) | ($413) | ($190) | ' | ' | ($32) | ($7) | ($8) | ($10) | ' | ' | ' | $1 | ' | ' | ' | ' | ' |
Accumulated losses from derivative instruments, income tax effect | ' | ' | ' | ' | ' | ' | 15 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.20% | ' | ' | ' | ' | ' | ' |
Debt, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350 | ' | ' | ' | ' | ' | ' |
Debt, fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.20% | ' | ' | ' | ' | ' | ' |
Fair value of interest rate swap agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 20 | ' | ' | ' | ' | ' | ' | ' |
Debt, floating rate of interest basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'six-month US dollar LIBOR plus a spread | ' | ' | ' | ' | ' | ' | ' | ' |
Losses on cash flow hedges, income tax effect | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of foreign currency forward contract liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' |
Foreign currency hedging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $147 | $268 | $78 | $167 |
Financial_Instruments_Derivati3
Financial Instruments, Derivatives and Hedging Activities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Corn Commodity | ' | ' |
Fair value of commodity contracts | ' | ' |
Commodity futures contract (in bushels of corn, pounds of soy bean oil or mmbtu of gas) | 68,000,000 | ' |
Soybean Oil | ' | ' |
Fair value of commodity contracts | ' | ' |
Number of derivative hedges | 0 | ' |
Natural Gas Commodity | ' | ' |
Fair value of commodity contracts | ' | ' |
Commodity futures contract (in bushels of corn, pounds of soy bean oil or mmbtu of gas) | 12,000,000 | ' |
Derivatives designated as hedging instruments | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | $7 | $5 |
Fair value of liabilities | 27 | 40 |
Derivatives designated as hedging instruments | Commodity and foreign currency contracts | Accounts receivable-net | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | 2 | 5 |
Derivatives designated as hedging instruments | Commodity and foreign currency contracts | Accounts payable and accrued liabilities | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of liabilities | 27 | 34 |
Derivatives designated as hedging instruments | Commodity and foreign currency contracts | Other assets | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | 5 | ' |
Derivatives designated as hedging instruments | Commodity and foreign currency contracts | Non-current liabilities | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of liabilities | ' | $6 |
Financial_Instruments_Derivati4
Financial Instruments, Derivatives and Hedging Activities (Details 3) (Derivatives in Cash-Flow Hedging Relationships, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gains or losses on derivatives | ' | ' | ' |
Amount of Gains (Losses) Recognized in OCI on Derivatives | ($93) | $68 | $48 |
Amount of Gains (Losses) Reclassified from AOCI into Income | -60 | 40 | 166 |
Cost of Sales | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI into Income | -57 | 43 | 169 |
Financing Costs, net | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI into Income | -3 | -3 | -3 |
Commodity contracts | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Losses expected to be reclassified into earnings during the next 12 months on commodity hedging contracts, net of tax | 31 | ' | ' |
Losses expected to be reclassified into earnings during the next 12 months on commodity hedging contracts, income tax effect | 15 | ' | ' |
Commodity and foreign currency contracts | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Amount of Gains (Losses) Recognized in OCI on Derivatives | -93 | 68 | 48 |
T-Locks | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Losses expected to be reclassified into earnings during next 12 months on settled Treasury Lock Agreements, net of tax | 2 | ' | ' |
Losses expected to be reclassified into earnings during the next 12 months on settled Treasury Lock Agreements, income tax effect | 1 | ' | ' |
Foreign currency forward contracts | ' | ' | ' |
Gains or losses on derivatives | ' | ' | ' |
Losses related to foreign currency hedges expected to be reclassified into earnings during the next twelve months, net of tax | 2 | ' | ' |
Losses related to foreign currency hedges expected to be reclassified into earnings during the next twelve months, income tax effect | $1 | ' | ' |
Financial_Instruments_Derivati5
Financial Instruments, Derivatives and Hedging Activities (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair value of assets and liabilities | ' | ' |
Long -term debt, fair value | $1,813 | $1,914 |
Recurring fair value measurements | Total | ' | ' |
Fair value of assets and liabilities | ' | ' |
Available for sale | 4 | 3 |
Derivatives assets | 20 | 25 |
Derivatives liabilities | 32 | 45 |
Long -term debt, fair value | 1,813 | 1,914 |
Recurring fair value measurements | Level 1 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Available for sale | 4 | 3 |
Derivatives assets | ' | 5 |
Derivatives liabilities | 22 | 24 |
Recurring fair value measurements | Level 2 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Derivatives assets | 20 | 20 |
Derivatives liabilities | 10 | 21 |
Long -term debt, fair value | $1,813 | $1,914 |
Financial_Instruments_Derivati6
Financial Instruments, Derivatives and Hedging Activities (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Long-term debt | ' | ' |
Carrying amount | $1,717 | $1,724 |
Fair value | 1,813 | 1,914 |
Carrying amount of fair value adjustment related to hedged fixed rate debt | 13 | 20 |
Fair value adjustment related to hedged fixed rate debt | 13 | 20 |
4.625% senior notes, due November 1, 2020 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 4.63% | 4.63% |
Carrying amount | 399 | 399 |
Fair value | 420 | 448 |
3.2% senior notes, due November 1, 2015 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 3.20% | 3.20% |
Carrying amount | 350 | 350 |
Fair value | 363 | 368 |
1.8% senior notes, due September 25, 2017 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 1.80% | 1.80% |
Carrying amount | 298 | 298 |
Fair value | 296 | 300 |
6.625% senior notes, due April 15, 2037 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 6.63% | 6.63% |
Carrying amount | 257 | 257 |
Fair value | 281 | 315 |
6.0% senior notes, due April 15, 2017 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 6.00% | 6.00% |
Carrying amount | 200 | 200 |
Fair value | 219 | 227 |
5.62% senior notes due March 25, 2020 | ' | ' |
Long-term debt | ' | ' |
Debt, fixed interest rate (as a percent) | 5.62% | 5.62% |
Carrying amount | 200 | 200 |
Fair value | $221 | $236 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Arrangements | ' | ' |
Debt outstanding | $1,810,000,000 | $1,800,000,000 |
Short-term borrowings | ' | ' |
Short-term borrowings in various currencies (at rates ranging from 1% to 11% for 2013 and 1% to 7% for 2012) | $93,000,000 | $76,000,000 |
Maximum | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings in various currencies, interest rate (as a percent) | 11.00% | 7.00% |
Minimum | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings in various currencies, interest rate (as a percent) | 1.00% | 1.00% |
Financing_Arrangements_Details1
Financing Arrangements (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2012 | Oct. 22, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
US revolving credit facility, due October 22, 2017 | US revolving credit facility, due October 22, 2017 | Revolving credit agreement in foreign countries | ||
Long-term debt | ' | ' | ' | ' |
Term of the credit agreement | ' | '5 years | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | $1,000,000,000 | ' | ' |
Debt issuance costs | 5,000,000 | 3,000,000 | ' | ' |
Additional increase in borrowing capacity of the line of credit available at the entity's option | ' | 250,000,000 | ' | ' |
Borrowings outstanding | ' | ' | 0 | ' |
Unused operating lines of credit | ' | ' | ' | $487,000,000 |
Financing_Arrangements_Details2
Financing Arrangements (Details 3) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |
Dec. 31, 2012 | Sep. 30, 2012 | Oct. 22, 2012 | Sep. 20, 2012 | |
Previously existing revolving credit facility | Previously existing revolving credit facility | 1.80% Senior Notes due September 25,2017 | ||
Long-term debt | ' | ' | ' | ' |
Debt, interest rate (as a percent) | ' | ' | ' | 1.80% |
Aggregate principal Amount | ' | ' | ' | $300,000,000 |
Optional prepayment as a percentage of principal amount plus interest | ' | ' | ' | 100.00% |
Net proceeds from sale of the notes | ' | ' | ' | 297,000,000 |
Payment of borrowings under revolving credit facility | ' | 205,000,000 | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | 1,000,000,000 | ' |
Debt issuance costs | $5,000,000 | ' | ' | $2,000,000 |
Financing_Arrangements_Details3
Financing Arrangements (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Long-term debt | ' | ' |
Total | $1,717 | $1,724 |
Fair value adjustment related to hedged fixed rate debt | 13 | 20 |
Long-term debt | 1,717 | 1,724 |
Long-term debt maturities | ' | ' |
2015 | 350 | ' |
2017 | 500 | ' |
2020 | 600 | ' |
2037 | 250 | ' |
Guaranteed obligations of consolidated subsidiaries | 225 | 93 |
4.625% senior notes, due November 1, 2020 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 4.63% | 4.63% |
Long-term debt | ' | ' |
Total | 399 | 399 |
Long-term debt maturities | ' | ' |
Discount | 1 | 1 |
3.2% senior notes due on November 1, 2015 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 3.20% | 3.20% |
Long-term debt | ' | ' |
Total | 350 | 350 |
1.8% senior notes, due September 25, 2017 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 1.80% | 1.80% |
Long-term debt | ' | ' |
Total | 298 | 298 |
Long-term debt maturities | ' | ' |
Discount | 2 | 2 |
6.625% senior notes due on April 15, 2037 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 6.63% | 6.63% |
Long-term debt | ' | ' |
Total | 257 | 257 |
Long-term debt maturities | ' | ' |
Premium | 8 | 8 |
Discount | 1 | 1 |
6.0% senior notes, due April 15, 2017 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 6.00% | 6.00% |
Long-term debt | ' | ' |
Total | 200 | 200 |
5.62% senior notes due March 25, 2020 | ' | ' |
Long-term debt | ' | ' |
Debt, interest rate (as a percent) | 5.62% | 5.62% |
Long-term debt | ' | ' |
Total | $200 | $200 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases | ' | ' | ' |
Rental expense | $47 | $45 | $44 |
Minimum lease payments due on leases | ' | ' | ' |
2014 | 44 | ' | ' |
2015 | 37 | ' | ' |
2016 | 33 | ' | ' |
2017 | 25 | ' | ' |
2018 | 19 | ' | ' |
Balance thereafter | $38 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income before income taxes: | ' | ' | ' |
United States | $138 | $91 | $158 |
Foreign | 409 | 510 | 435 |
Income before income taxes | 547 | 601 | 593 |
Current tax expense | ' | ' | ' |
US federal | 5 | 3 | 9 |
State and local | 3 | 1 | 2 |
Foreign | 106 | 166 | 141 |
Total current | 114 | 170 | 152 |
Deferred tax expense (benefit) | ' | ' | ' |
US federal | 11 | -5 | 10 |
State and local | -2 | 2 | 3 |
Foreign | 21 | ' | 5 |
Total deferred | 30 | -3 | 18 |
Total provision for income taxes | 144 | 167 | 170 |
Deferred tax assets attributable to: | ' | ' | ' |
Employee benefit accruals | 23 | 19 | ' |
Pensions and postretirement plans | 24 | 65 | ' |
Derivative contracts | 20 | 10 | ' |
Net operating loss carryforwards | 16 | 23 | ' |
Foreign tax credit carryforwards expiring in 2015 through 2022 | 11 | 24 | ' |
Other | 42 | 53 | ' |
Gross deferred tax assets | 136 | 194 | ' |
Valuation allowance | -3 | -9 | ' |
Net deferred tax assets | 133 | 185 | ' |
Deferred tax liabilities attributable to: | ' | ' | ' |
Property, plant and equipment | 200 | 202 | ' |
Identified intangibles | 57 | 59 | ' |
Gross deferred tax liabilities | 257 | 261 | ' |
Net deferred tax liabilities | 124 | 76 | ' |
Korea | ' | ' | ' |
Deferred tax assets attributable to: | ' | ' | ' |
Net operating loss carryforwards | $12 | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
State | ' |
Valuation allowances | ' |
Net operating losses, valuation allowance | $2 |
Foreign | ' |
Valuation allowances | ' |
Net operating losses, valuation allowance | $1 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 2007 |
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate | ' | ' | ' | ' | ' |
Provision for tax at US statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | ' | ' |
Tax rate difference on foreign income (as a percent) | -5.28% | -3.86% | -3.62% | ' | ' |
State and local taxes - net (as a percent) | 0.35% | 0.79% | 0.58% | ' | ' |
Change in valuation allowance - foreign tax credits (as a percent) | ' | ' | -0.62% | ' | ' |
Non-deductible National Starch acquisition costs (as a percent) | ' | 0.04% | 0.04% | ' | ' |
NAFTA Award (as a percent) | ' | ' | -3.45% | ' | ' |
Other items - net (as a percent) | -3.74% | -1.61% | 0.83% | ' | ' |
Provision at effective tax rate (as a percent) | 26.33% | 27.78% | 28.67% | ' | ' |
Undistributed earnings of foreign subsidiaries | $1,931 | ' | ' | ' | ' |
Reconciliation of beginning and ending amount of unrecognized tax benefits excluding interest and penalties | ' | ' | ' | ' | ' |
Balance at January 1 | 37 | 35 | ' | ' | ' |
Additions for tax positions related to prior years | 5 | 3 | ' | ' | ' |
Reductions for tax positions related to prior years | -6 | ' | ' | ' | ' |
Additions based on tax positions related to the current year | 1 | 6 | ' | ' | ' |
Reductions related to a lapse in the statute of limitations | -3 | -7 | ' | ' | ' |
Balance at December 31 | 34 | 37 | 35 | ' | ' |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate in future periods | 19 | ' | ' | ' | ' |
Remaining unrecognized tax benefits | 15 | ' | ' | ' | ' |
Foreign tax credit carryforwards | 12 | ' | ' | ' | ' |
Unrecognized benefit offset by reversing receivable recorded for indemnity claims expected to be collected from Akzo Nobel N.V. as part of the National Starch acquisition | 3 | ' | ' | ' | ' |
Settlement of claims with Canadian tax authority | 2 | ' | ' | ' | ' |
Interest expense accrued, net of interest income | 5 | 2 | ' | ' | ' |
Interest income | 3 | 4 | ' | ' | ' |
Accrued penalties | 1 | 1 | ' | ' | ' |
Deposits made to Canadian tax authorities | ' | ' | ' | 13 | 17 |
Unrecognized tax benefits, current | 25 | ' | ' | ' | ' |
Unrecognized tax benefits related to settling the US and Canada tax treaty resolution | $12 | ' | ' | ' | ' |
Korea | ' | ' | ' | ' | ' |
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate | ' | ' | ' | ' | ' |
Reversal of valuation allowance (as a percent) | ' | -2.52% | ' | ' | ' |
Chile | ' | ' | ' | ' | ' |
Reconciliation of the US federal statutory tax rate to the Company's effective tax rate | ' | ' | ' | ' | ' |
Reversal of valuation allowance (as a percent) | ' | -0.06% | -0.09% | ' | ' |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined benefit pension plans | ' | ' | ' |
Benefit obligation | ' | ' | ' |
Balance at the end of the period | $493 | $548 | ' |
US Plans | ' | ' | ' |
Benefit obligation | ' | ' | ' |
Balance at the beginning of the period | 323 | 271 | ' |
Service cost | 8 | 7 | 7 |
Interest cost | 11 | 12 | 13 |
Benefits paid | -14 | -15 | ' |
Actuarial (gain) loss | -36 | 48 | ' |
Business Combinations/Transfers | 1 | ' | ' |
Balance at the end of the period | 293 | 323 | 271 |
Fair value of plan assets | ' | ' | ' |
Balance at the beginning of the period | 257 | 222 | ' |
Actual return on plan assets | 41 | 27 | ' |
Employer contributions | 13 | 23 | ' |
Benefits paid | -14 | -15 | ' |
Balance at the end of the period | 297 | 257 | 222 |
Funded status | 4 | -66 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Non-current asset | 16 | ' | ' |
Current liabilities | -1 | -1 | ' |
Non-current liabilities | -11 | -65 | ' |
Net asset (liability) recognized | 4 | -66 | ' |
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 7 | 67 | ' |
Net amount recognized | 7 | 67 | ' |
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | ' | ' | ' |
Projected benefit obligation | 10 | 323 | ' |
Accumulated benefit obligation | 8 | 314 | ' |
Fair value of plan assets | ' | 257 | ' |
Components of Net Periodic Benefit Costs | ' | ' | ' |
Service cost | 8 | 7 | 7 |
Interest cost | 11 | 12 | 13 |
Expected return on plan assets | -18 | -16 | -15 |
Amortization of actuarial loss | 2 | 1 | 1 |
Settlement/curtailment | ' | ' | 2 |
Net periodic benefit cost | 3 | 4 | 8 |
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year | 0.5 | ' | ' |
Amounts recorded in Other Comprehensive Income and net periodic benefit cost | ' | ' | ' |
Net actuarial gain | -58 | ' | ' |
Amortization of actuarial loss | -2 | ' | ' |
Total recorded in other comprehensive income | -60 | ' | ' |
Net periodic benefit cost | 3 | 4 | 8 |
Total recorded in other comprehensive income and net periodic benefit cost | -57 | ' | ' |
Weighted average assumptions used to determine the company's obligations | ' | ' | ' |
Discount rate (as a percent) | 4.60% | 3.60% | ' |
Rate of compensation increase (as a percent) | 4.22% | 4.19% | ' |
Weighted average assumptions used to determine the company's net periodic benefit cost | ' | ' | ' |
Discount rate (as a percent) | 3.60% | 4.50% | 5.35% |
Expected long-term return on plan assets (as a percent) | 7.25% | 7.25% | 7.25% |
Rate of compensation increase (as a percent) | 4.19% | 4.19% | 2.75% |
US Plans | Minimum | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Percent of base salary, bonus and overtime credited to participating employees' accounts by the Company | 3.00% | ' | ' |
US Plans | Maximum | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Percent of base salary, bonus and overtime credited to participating employees' accounts by the Company | 10.00% | ' | ' |
Non-US Plans | ' | ' | ' |
Benefit obligation | ' | ' | ' |
Balance at the beginning of the period | 272 | 216 | ' |
Service cost | 9 | 8 | 5 |
Interest cost | 12 | 13 | 15 |
Benefits paid | -12 | -12 | ' |
Actuarial (gain) loss | -15 | 34 | ' |
Business Combinations/Transfers | ' | 12 | ' |
Curtailment/settlement | -2 | -4 | ' |
Foreign currency translation | -14 | 5 | ' |
Balance at the end of the period | 250 | 272 | 216 |
Fair value of plan assets | ' | ' | ' |
Balance at the beginning of the period | 189 | 156 | ' |
Actual return on plan assets | 16 | 12 | ' |
Employer contributions | 43 | 15 | ' |
Benefits paid | -12 | -12 | ' |
Business Combinations/Transfers | ' | 15 | ' |
Foreign currency translation | -13 | 3 | ' |
Balance at the end of the period | 223 | 189 | 156 |
Funded status | -27 | -83 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Non-current asset | 26 | 1 | ' |
Current liabilities | -3 | -3 | ' |
Non-current liabilities | -50 | -81 | ' |
Net asset (liability) recognized | -27 | -83 | ' |
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 59 | 92 | ' |
Transition obligation | 2 | 2 | ' |
Net amount recognized | 61 | 94 | ' |
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | ' | ' | ' |
Projected benefit obligation | 52 | 262 | ' |
Accumulated benefit obligation | 42 | 227 | ' |
Fair value of plan assets | 3 | 178 | ' |
Components of Net Periodic Benefit Costs | ' | ' | ' |
Service cost | 9 | 8 | 5 |
Interest cost | 12 | 13 | 15 |
Expected return on plan assets | -12 | -13 | -11 |
Amortization of actuarial loss | 5 | 4 | 2 |
Amortization of transition obligation | ' | 1 | 1 |
Settlement/curtailment | ' | 1 | ' |
Net periodic benefit cost | 14 | 14 | 12 |
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year | 3 | ' | ' |
Amount related to the amortization of transition obligation included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year | 0.3 | ' | ' |
Amounts recorded in Other Comprehensive Income and net periodic benefit cost | ' | ' | ' |
Net actuarial gain | -23 | ' | ' |
Amortization of actuarial loss | -5 | ' | ' |
Foreign currency translation | -5 | ' | ' |
Total recorded in other comprehensive income | -33 | ' | ' |
Net periodic benefit cost | 14 | 14 | 12 |
Total recorded in other comprehensive income and net periodic benefit cost | ($19) | ' | ' |
Weighted average assumptions used to determine the company's obligations | ' | ' | ' |
Discount rate (as a percent) | 5.60% | 4.85% | ' |
Rate of compensation increase (as a percent) | 4.39% | 4.35% | ' |
Weighted average assumptions used to determine the company's net periodic benefit cost | ' | ' | ' |
Discount rate (as a percent) | 4.88% | 5.68% | 5.73% |
Expected long-term return on plan assets (as a percent) | 6.69% | 6.81% | 6.73% |
Rate of compensation increase (as a percent) | 4.35% | 4.51% | 3.79% |
Canadian plan | ' | ' | ' |
Weighted average assumptions used to determine the company's net periodic benefit cost | ' | ' | ' |
Expected long-term return on plan assets (as a percent) | 6.10% | ' | ' |
US Postretirement Benefit Plans | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Age of employees upon attaining which they can avail benefits accrued during their employment | '65 years | ' | ' |
Term of treasury notes used to calculate interest on accrued benefits | '5 years | ' | ' |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts charged to expense | ' | ' | ' |
Amounts charged to expense for defined contribution plans | $15 | $13 | $12 |
US Plans | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 100.00% | 100.00% | ' |
Fair value of plan assets | 297 | 257 | 222 |
Cash contributions to defined benefit pension plan | 13 | 23 | ' |
Expected contribution in next fiscal year | 2 | ' | ' |
Expected future benefit payments | ' | ' | ' |
2014 | 18 | ' | ' |
2015 | 17 | ' | ' |
2016 | 17 | ' | ' |
2017 | 19 | ' | ' |
2018 | 20 | ' | ' |
Years 2019 - 2023 | 105 | ' | ' |
US Plans | Equity Index, US | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 151 | ' | ' |
US Plans | Equity Index, International | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 32 | ' | ' |
US Plans | Equity Index, Real Estate | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 3 | ' | ' |
US Plans | Fixed Income Index, Intermediate Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 57 | ' | ' |
US Plans | Fixed Income Index, Long Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 50 | ' | ' |
US Plans | Cash and other | ' | ' | ' |
Plan assets | ' | ' | ' |
Plan assets minimum allocation percentage | 1.00% | ' | ' |
Plan assets maximum allocation percentage | 3.00% | ' | ' |
Weighted average asset allocation (as a percent) | 2.00% | 1.00% | ' |
US Plans | Cash | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 4 | ' | ' |
US Plans | Equity securities | ' | ' | ' |
Plan assets | ' | ' | ' |
Plan assets minimum allocation percentage | 38.00% | ' | ' |
Plan assets maximum allocation percentage | 72.00% | ' | ' |
Weighted average asset allocation (as a percent) | 62.00% | 61.00% | ' |
US Plans | Debt securities | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 36.00% | 38.00% | ' |
US Plans | Fixed income securities | ' | ' | ' |
Plan assets | ' | ' | ' |
Plan assets minimum allocation percentage | 31.00% | ' | ' |
Plan assets maximum allocation percentage | 58.00% | ' | ' |
US Plans | Level 2 | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 297 | ' | ' |
US Plans | Level 2 | Equity Index, US | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 151 | ' | ' |
US Plans | Level 2 | Equity Index, International | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 32 | ' | ' |
US Plans | Level 2 | Equity Index, Real Estate | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 3 | ' | ' |
US Plans | Level 2 | Fixed Income Index, Intermediate Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 57 | ' | ' |
US Plans | Level 2 | Fixed Income Index, Long Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 50 | ' | ' |
US Plans | Level 2 | Cash | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 4 | ' | ' |
Non-US Plans | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 100.00% | 100.00% | ' |
Fair value of plan assets | 223 | 189 | 156 |
Cash contributions to defined benefit pension plan | 43 | 15 | ' |
Expected contribution in next fiscal year | 8 | ' | ' |
Expected future benefit payments | ' | ' | ' |
2014 | 15 | ' | ' |
2015 | 14 | ' | ' |
2016 | 14 | ' | ' |
2017 | 14 | ' | ' |
2018 | 15 | ' | ' |
Years 2019 - 2023 | 79 | ' | ' |
Non-US Plans | Equity Index, US | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 38 | ' | ' |
Non-US Plans | Equity Index, Canada | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 38 | ' | ' |
Non-US Plans | Equity Index, International | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 39 | ' | ' |
Non-US Plans | Fixed Income Index, Intermediate Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 1 | ' | ' |
Non-US Plans | Fixed Income Index, Long Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 85 | ' | ' |
Non-US Plans | Cash and other | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 10.00% | 11.00% | ' |
Non-US Plans | Cash | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 3 | ' | ' |
Non-US Plans | Equity securities | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 51.00% | 42.00% | ' |
Non-US Plans | Debt securities | ' | ' | ' |
Plan assets | ' | ' | ' |
Weighted average asset allocation (as a percent) | 39.00% | 47.00% | ' |
Non-US Plans | Other | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 19 | ' | ' |
Non-US Plans | Level 1 | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 3 | ' | ' |
Non-US Plans | Level 1 | Cash | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 3 | ' | ' |
Non-US Plans | Level 2 | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 220 | ' | ' |
Non-US Plans | Level 2 | Equity Index, US | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 38 | ' | ' |
Non-US Plans | Level 2 | Equity Index, Canada | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 38 | ' | ' |
Non-US Plans | Level 2 | Equity Index, International | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 39 | ' | ' |
Non-US Plans | Level 2 | Fixed Income Index, Intermediate Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 1 | ' | ' |
Non-US Plans | Level 2 | Fixed Income Index, Long Bond | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | 85 | ' | ' |
Non-US Plans | Level 2 | Other | ' | ' | ' |
Plan assets | ' | ' | ' |
Fair value of plan assets | $19 | ' | ' |
Benefit_Plans_Details_3
Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Benefit obligation | ' | ' | ' |
Gain from change in benefit plan | ' | $5 | $30 |
Multiemployer Plans | ' | ' | ' |
Multiemployer benefit plan that company contributes to | 1 | ' | ' |
Multiemployer Plan contributions | 12 | 12 | 9 |
Postretirement Benefit Plans | ' | ' | ' |
Benefit obligation | ' | ' | ' |
Balance at the beginning of the period | 74 | 54 | ' |
Service cost | 3 | 2 | 2 |
Interest cost | 4 | 3 | 4 |
Curtailment/settlement | -1 | ' | ' |
Actuarial (gain) loss | -15 | 17 | ' |
Benefits paid | -3 | -2 | ' |
Foreign currency translation | -5 | ' | ' |
Balance at the end of the period | 57 | 74 | 54 |
Funded status | -57 | -74 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Current liabilities | -2 | -2 | ' |
Non-current liabilities | -55 | -72 | ' |
Net asset (liability) recognized | -57 | -74 | ' |
Amounts recognized in Accumulated Other Comprehensive Loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 7 | 26 | ' |
Prior service cost | ' | 1 | ' |
Net amount recognized | 7 | 27 | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Service cost | 3 | 2 | 2 |
Interest cost | 4 | 3 | 4 |
Amortization of actuarial loss (gain) | 1 | 1 | -1 |
Amortization of prior service cost | ' | ' | 1 |
Settlement/curtailment | ' | ' | -31 |
Net periodic benefit cost | 8 | 6 | -25 |
Amount related to the amortization of the entity's accumulated actuarial loss included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year | 0.2 | ' | ' |
Amount related to the amortization of prior service cost included in accumulated other comprehensive loss that will be recognized in net pension expense in next fiscal year | 0.1 | ' | ' |
Amounts recorded in other comprehensive income and net periodic benefit cost | ' | ' | ' |
Net actuarial gain | -15 | ' | ' |
Amortization of actuarial loss | -1 | ' | ' |
Amortization of prior service cost | -1 | ' | ' |
Foreign currency translation | -3 | ' | ' |
Total recorded in other comprehensive income | -20 | ' | ' |
Net periodic benefit cost | 8 | 6 | -25 |
Total recorded in other comprehensive income and net periodic benefit cost | -12 | ' | ' |
Weighted average assumptions used to determine the company's obligations | ' | ' | ' |
Discount rate (as a percent) | 6.47% | 5.44% | ' |
Weighted average assumptions used to determine the company's net periodic benefit cost | ' | ' | ' |
Discount rate (as a percent) | 5.44% | 6.23% | 5.69% |
Sensitivity to Trend Assumptions | ' | ' | ' |
One-percentage point increase, effect on service cost and interest cost components | 1 | ' | ' |
One-percentage point increase, effect on year-end benefit obligations | 6 | ' | ' |
One-percentage point decrease, effect on service cost and interest cost components | -1 | ' | ' |
One-percentage point decrease, effect on year-end benefit obligations | -4 | ' | ' |
Expected future benefit payments | ' | ' | ' |
2014 | 2 | ' | ' |
2015 | 3 | ' | ' |
2016 | 3 | ' | ' |
2017 | 3 | ' | ' |
2018 | 3 | ' | ' |
Years 2019 - 2023 | $21 | ' | ' |
US Postretirement Benefit Plans | ' | ' | ' |
Assumptions used in measuring benefit obligation | ' | ' | ' |
2014 increase in per capita cost (as a percent) | 6.90% | ' | ' |
Ultimate trend (as a percent) | 4.50% | ' | ' |
Canada Postretirement Benefit Plans | ' | ' | ' |
Assumptions used in measuring benefit obligation | ' | ' | ' |
2014 increase in per capita cost (as a percent) | 7.20% | ' | ' |
Ultimate trend (as a percent) | 4.50% | ' | ' |
Brazil Postretirement Benefit Plans | ' | ' | ' |
Assumptions used in measuring benefit obligation | ' | ' | ' |
2014 increase in per capita cost (as a percent) | 8.66% | ' | ' |
Ultimate trend (as a percent) | 8.66% | ' | ' |
Supplementary_Information_Deta
Supplementary Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts receivable net: | ' | ' |
Accounts receivable trade | $667 | $707 |
Accounts receivable other | 171 | 117 |
Allowance for doubtful accounts | -6 | -10 |
Total accounts receivable net | 832 | 814 |
Inventories: | ' | ' |
Finished and in process | 440 | 475 |
Raw materials | 235 | 313 |
Manufacturing supplies | 48 | 46 |
Total inventories | 723 | 834 |
Accrued liabilities: | ' | ' |
Compensation-related costs | 75 | 90 |
Income taxes payable | 14 | 25 |
Dividends payable | 32 | 20 |
Accrued interest | 16 | 16 |
Taxes payable other than income taxes | 32 | 33 |
Other | 100 | 81 |
Total accrued liabilities | 269 | 265 |
Non-current liabilities: | ' | ' |
Employees' pension, indemnity and postretirement | 133 | 235 |
Other | 30 | 62 |
Total non-current liabilities | $163 | $297 |
Supplementary_Information_Deta1
Supplementary Information (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other income -net: | ' | ' | ' |
Gain from change in benefit plan and postretirement plan | ' | $5 | $30 |
Gain from sale of land | ' | 2 | ' |
NAFTA award | ' | ' | 58 |
Other | 16 | 15 | 10 |
Other income-net | 16 | 22 | 98 |
Financing costs-net: | ' | ' | ' |
Interest expense, net of amounts capitalized | 74 | 77 | 81 |
Interest income | -11 | -10 | -5 |
Foreign currency transaction losses | 3 | ' | 2 |
Financing costs-net | 66 | 67 | 78 |
Interest capitalized | $4 | $6 | $5 |
Supplementary_Information_Deta2
Supplementary Information (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplementary Cash Flow Information | ' | ' | ' |
Interest paid | $67 | $72 | $85 |
Income taxes paid | $135 | $133 | $177 |
Equity_Details
Equity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 13, 2013 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Repurchased from employees under stock incentive plan and cancellation of restricted stock | Repurchased from employees under stock incentive plan and cancellation of restricted stock | Repurchased from employees under stock incentive plan and cancellation of restricted stock | Repurchase of common shares on the open market | Repurchase of common shares on the open market | Repurchase of common shares on the open market | New stock repurchase program | New stock repurchase program | Previous stock repurchase program | ||
Preferred stock: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized shares | 25,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value per share (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued shares | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, outstanding shares | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury stock: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of shares | ' | ' | 21,629 | 44,674 | 73,260 | 3,385,000 | 300,000 | 1,000,000 | ' | ' | ' |
Average purchase prices of treasury stock (in dollars per share) repurchased from employees under the stock incentive plan and the cancellation of restricted stock | ' | ' | $44.55 | $58.59 | $47.48 | ' | ' | ' | ' | ' | ' |
Shares authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 5,000,000 |
Cost to repurchase common shares on the open market | ' | ' | ' | ' | ' | $227 | $15 | $45 | ' | ' | ' |
Remaining shares available to be repurchased under its program | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' |
Equity_Details_2
Equity (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Increase (decrease) in common stock, number of shares | ' | ' | ' |
Balance at the end of the period | 77,672,670 | 77,141,691 | ' |
Issued | ' | ' | ' |
Increase (decrease) in common stock, number of shares | ' | ' | ' |
Balance at the beginning of the period | 77,142,000 | 76,822,000 | 76,035,000 |
Issuance of restricted stock units as compensation | 6,000 | ' | 56,000 |
Issuance under incentive and other plans | 130,000 | ' | 91,000 |
Stock options exercised | 395,000 | 320,000 | 640,000 |
Balance at the end of the period | 77,673,000 | 77,142,000 | 76,822,000 |
Held in treasury stock | ' | ' | ' |
Increase (decrease) in common stock, number of shares | ' | ' | ' |
Balance at the beginning of the period | 110,000 | 939,000 | 12,000 |
Issuance of restricted stock units as compensation | -3,000 | -6,000 | ' |
Issuance under incentive and other plans | -43,000 | -142,000 | -9,000 |
Stock options exercised | -110,000 | -1,026,000 | -137,000 |
Purchase/acquisition of treasury stock | 3,407,000 | 345,000 | 1,073,000 |
Balance at the end of the period | 3,361,000 | 110,000 | 939,000 |
Outstanding | ' | ' | ' |
Increase (decrease) in common stock, number of shares | ' | ' | ' |
Balance at the beginning of the period | 77,032,000 | 75,883,000 | 76,023,000 |
Issuance of restricted stock units as compensation | 9,000 | 6,000 | 56,000 |
Issuance under incentive and other plans | 173,000 | 142,000 | 100,000 |
Stock options exercised | 505,000 | 1,346,000 | 777,000 |
Purchase/acquisition of treasury stock | -3,407,000 | -345,000 | -1,073,000 |
Balance at the end of the period | 74,312,000 | 77,032,000 | 75,883,000 |
Equity_Details_3
Equity (Details 3) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Equity stock-based compensation | ' | ' | ' | ' |
Shares Authorized Under Stock Incentive Plan | 8,000,000 | ' | ' | ' |
Shares available for future grants under Stock Incentive Plan | 2,800,000 | ' | ' | ' |
Total share-based compensation expense included in net income | $12 | $12 | $11 | ' |
Income tax benefit related to share-based compensation included in net income | 5 | 5 | 5 | ' |
Stock Option Awards | ' | ' | ' | ' |
Equity stock-based compensation | ' | ' | ' | ' |
Term of options | '10 years | ' | ' | ' |
Period of vesting | '3 years | ' | ' | ' |
Weighted-average grant date fair value of stock options granted (in dollars per share) | $17.87 | $16.16 | $15.17 | ' |
Assumptions used to measure the fair value of awards | ' | ' | ' | ' |
Expected life | '5 years 9 months 18 days | '5 years 9 months 18 days | '5 years 9 months 18 days | ' |
Risk-free interest rate (as a percent) | 1.10% | 1.10% | 2.80% | ' |
Expected volatility (as a percent) | 32.60% | 33.30% | 32.70% | ' |
Expected dividend yield (as a percent) | 1.60% | 1.20% | 1.20% | ' |
Stock option activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 3,032,000 | 4,030,000 | 4,434,000 | ' |
Granted (in shares) | 416,000 | 460,000 | 438,000 | ' |
Exercised (in shares) | -511,000 | -1,409,000 | -777,000 | ' |
Cancelled (in shares) | -88,000 | -49,000 | -65,000 | ' |
Outstanding at the end of the period (in shares) | 2,849,000 | 3,032,000 | 4,030,000 | 4,434,000 |
Stock Option Price Range | ' | ' | ' | ' |
Options outstanding at the beginning of the period, price range, lower range limit (in dollars per share) | $24.70 | $16.92 | $14.33 | $14.17 |
Options outstanding at the beginning of the period, price range, Upper range limit (in dollars per share) | $66.26 | $57.33 | $52.64 | $40.71 |
Granted, low end of range (in dollars per share) | $66.07 | $55.95 | $47.95 | ' |
Granted, high end of range (in dollars per share) | $66.26 | $57.33 | $52.64 | ' |
Exercised, low end of range (in dollars per share) | $16.92 | $14.33 | $14.17 | ' |
Exercised, high end of range (in dollars per share) | $57.33 | $47.95 | $40.71 | ' |
Cancelled, low end of range (in dollars per share) | $47.95 | $25.58 | $18.31 | ' |
Cancelled, high end of range (in dollars per share) | $66.07 | $55.95 | $47.95 | ' |
Options outstanding at the end of the period, price range, lower range limit (in dollars per share) | $24.70 | $16.92 | $14.33 | $14.17 |
Options outstanding at the end of the period, price range, Upper range limit (in dollars per share) | $66.26 | $57.33 | $52.64 | $40.71 |
Share options, weighted average exercise price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $35.66 | $30.29 | $27.49 | ' |
Granted (in dollars per share) | $66.07 | $55.96 | $47.96 | ' |
Exercised (in dollars per share) | $28.74 | $26.80 | $24.24 | ' |
Cancelled (in dollars per share) | $54.37 | $39.29 | $30.60 | ' |
Outstanding at the end of the period (in dollars per share) | $40.77 | $35.66 | $30.29 | $27.49 |
Additional information pertaining to stock options | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | 20 | 46 | 22 | ' |
Cash received from exercise of stock options | 14 | 34 | 18 | ' |
Excess tax benefit realized from exercise of stock options | 5 | 11 | 6 | ' |
Unrecognized compensation cost | $8 | ' | ' | ' |
Weighted-average period for amortization of unrecognized compensation cost | '1 year 8 months 12 days | ' | ' | ' |
Equity_Details_4
Equity (Details 4) (USD $) | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options by exercise price range | ' | ' |
Options Outstanding (in shares) | 2,849 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $40.77 | ' |
Average Remaining Contractual Life | '5 years 9 months 11 days | ' |
Options Exercisable (in shares) | 2,079 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $33.71 | ' |
Share options, aggregate intrinsic value | ' | ' |
Options outstanding aggregate intrinsic value | $79 | $87 |
Options outstanding average remaining contractual life | '5 years 9 months 18 days | '6 years |
Stock options exercisable aggregate intrinsic value | $72 | $71 |
Stock options exercisable average remaining contractual life | '4 years 9 months 18 days | '4 years 10 months 24 days |
$24.70 to 27.30 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $24.70 | ' |
Exercise prices, high end of range (in dollars per share) | $27.30 | ' |
Options Outstanding (in shares) | 557 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $25.47 | ' |
Average Remaining Contractual Life | '3 years 2 months 19 days | ' |
Options Exercisable (in shares) | 557 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $25.47 | ' |
$27.31 to 29.90 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $27.31 | ' |
Exercise prices, high end of range (in dollars per share) | $29.90 | ' |
Options Outstanding (in shares) | 465 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $29 | ' |
Average Remaining Contractual Life | '6 years 25 days | ' |
Options Exercisable (in shares) | 465 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $29 | ' |
$32.51 to 35.10 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $32.51 | ' |
Exercise prices, high end of range (in dollars per share) | $35.10 | ' |
Options Outstanding (in shares) | 676 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $34.04 | ' |
Average Remaining Contractual Life | '3 years 8 months 5 days | ' |
Options Exercisable (in shares) | 676 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $34.04 | ' |
$45.51 to 53.30 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $45.51 | ' |
Exercise prices, high end of range (in dollars per share) | $53.30 | ' |
Options Outstanding (in shares) | 357 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $47.96 | ' |
Average Remaining Contractual Life | '7 years 1 month 10 days | ' |
Options Exercisable (in shares) | 239 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $47.96 | ' |
$55.91 to 58.50 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $55.91 | ' |
Exercise prices, high end of range (in dollars per share) | $58.50 | ' |
Options Outstanding (in shares) | 405 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $55.95 | ' |
Average Remaining Contractual Life | '8 years 1 month 10 days | ' |
Options Exercisable (in shares) | 142 | ' |
Weighted Average Exercise Price Per Share (in dollars per share) | $55.95 | ' |
$63.71 to 66.26 | ' | ' |
Stock options by exercise price range | ' | ' |
Exercise prices, low end of range (in dollars per share) | $63.71 | ' |
Exercise prices, high end of range (in dollars per share) | $66.26 | ' |
Options Outstanding (in shares) | 389 | ' |
Weighted Average Exercise Price per Share (in dollars per share) | $66.07 | ' |
Average Remaining Contractual Life | '9 years 1 month 6 days | ' |
Equity_Details_5
Equity (Details 5) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other disclosures | ' | ' | ' |
Total share-based compensation expense included in net income | $12 | $12 | $11 |
Share-based payments subject to redemption | 24 | 19 | ' |
Long Term Incentive Plan for Officers | ' | ' | ' |
Weighted-average grant date fair value | ' | ' | ' |
Unrecognized compensation cost | 3 | ' | ' |
Other disclosures | ' | ' | ' |
Service period over which compensation expense would be amortized | '3 years | ' | ' |
Total share-based compensation expense included in net income | 3 | 4 | 6 |
Share-based payments subject to redemption | 7 | 8 | ' |
Long Term Incentive Plan for Officers | Minimum | ' | ' | ' |
Weighted-average grant date fair value | ' | ' | ' |
Weighted-average period for amortization of unrecognized compensation cost | '1 year | ' | ' |
Long Term Incentive Plan for Officers | Maximum | ' | ' | ' |
Weighted-average grant date fair value | ' | ' | ' |
Weighted-average period for amortization of unrecognized compensation cost | '2 years | ' | ' |
Board of Directors' Compensation Arrangement | ' | ' | ' |
Other disclosures | ' | ' | ' |
Minimum percentage of Board of Director's compensation they may elect to be awarded in the form of common stock or restricted stock units | 50.00% | ' | ' |
Restricted Shares and Restricted Stock Units | ' | ' | ' |
Other disclosures | ' | ' | ' |
Total share-based compensation expense included in net income | 7 | 6 | 4 |
Compensation cost related to unvested restricted share and restricted stock units included in share-based payments subject to redemption on the Balance Sheet | 17 | 11 | ' |
Restricted Shares and Restricted Stock Units | Minimum | ' | ' | ' |
Equity stock-based compensation | ' | ' | ' |
Vesting terms | '3 years | ' | ' |
Restricted Shares and Restricted Stock Units | Maximum | ' | ' | ' |
Equity stock-based compensation | ' | ' | ' |
Vesting terms | '5 years | ' | ' |
Restricted Shares | ' | ' | ' |
Restricted shares and unit activity | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 95,000 | 136,000 | 181,000 |
Vested (in shares) | -33,000 | -37,000 | -34,000 |
Cancelled (in shares) | -14,000 | -4,000 | -11,000 |
Non-vested at the end of the period (in shares) | 48,000 | 95,000 | 136,000 |
Weighted-average grant date fair value | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $29.69 | $30.69 | $30.04 |
Vested (in dollars per share) | $34.02 | $33.73 | $27.56 |
Cancelled (in dollars per share) | $31.25 | $25.58 | $29.74 |
Non-vested at the end of the period (in dollars per share) | $26.25 | $29.69 | $30.69 |
Fair value of awards vested during the year | 1 | 1 | 1 |
Restricted Units | ' | ' | ' |
Restricted shares and unit activity | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 385,000 | 235,000 | 113,000 |
Granted (in shares) | 144,000 | 174,000 | 182,000 |
Vested (in shares) | -17,000 | -9,000 | -56,000 |
Cancelled (in shares) | -43,000 | -15,000 | -4,000 |
Non-vested at the end of the period (in shares) | 469,000 | 385,000 | 235,000 |
Weighted-average grant date fair value | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $49.77 | $44.24 | $30.56 |
Granted (in dollars per share) | $66.27 | $55.69 | $48.04 |
Vested (in dollars per share) | $46.82 | $37.57 | $26.08 |
Cancelled (in dollars per share) | $54.93 | $44.95 | $47.98 |
Non-vested at the end of the period (in dollars per share) | $54.47 | $49.77 | $44.24 |
Fair value of awards vested during the year | 1 | 0.3 | 1 |
Unrecognized compensation cost | 10 | ' | ' |
Weighted-average period for amortization of unrecognized compensation cost | '1 year 10 months 24 days | ' | ' |
Restricted Units | Board of Directors' Compensation Arrangement | ' | ' | ' |
Other disclosures | ' | ' | ' |
Minimum period of restriction for transfer of award after director's termination of service from the board | '6 months | ' | ' |
Awards outstanding (in shares) | 218,000 | ' | ' |
Carrying value of share units outstanding | $6 | ' | ' |
Equity_Details_6
Equity (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated other comprehensive loss | ' | ' | ' |
Balance at the beginning of the period | ($475) | ($413) | ($190) |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19 for the year ended 2013, 2012 and 2011, respectively | -64 | 43 | 29 |
Amount of (gains) losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19, $15 and $61 for the year ended 2013, 2012 and 2011 respectively | 41 | -25 | -105 |
Actuarial gains (losses) on pension and postretirement obligations, settlements and plan amendments, net of income tax of $32, $27 and $4 for the year ended 2013, 2012 and 2011, respectively | 63 | -56 | -10 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, net of income tax effect of $3, $2 and $5, respectively | 5 | 5 | -11 |
Unrealized gain on investment, net of income tax effect | 1 | ' | ' |
Currency translation adjustment | -154 | -29 | -126 |
Balance at end of the period | -583 | -475 | -413 |
Income tax effect of accumulated other comprehensive gain (loss) | ' | ' | ' |
Gains (losses) on cash-flow hedges, income tax effect | -29 | 25 | 19 |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | -19 | 15 | 61 |
Actuarial gains (losses) on pension and other postretirement obligations, settlements and plan amendments, income tax effect | 32 | -27 | -4 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, income tax effect | -3 | -2 | 5 |
Cumulative Translation Adjustment | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' |
Balance at the beginning of the period | -335 | -306 | -180 |
Currency translation adjustment | -154 | -29 | -126 |
Balance at end of the period | -489 | -335 | -306 |
Deferred Gain/(Loss) on Hedging Activities | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' |
Balance at the beginning of the period | -17 | -35 | 41 |
Gains (losses) on cash-flow hedges, net of income tax effect of $29, $25 and $19 for the year ended 2013, 2012 and 2011, respectively | -64 | 43 | 29 |
Amount of (gains) losses on cash-flow hedges reclassified to earnings, net of income tax effect of $19, $15 and $61 for the year ended 2013, 2012 and 2011 respectively | 41 | -25 | -105 |
Balance at end of the period | -40 | -17 | -35 |
Income tax effect of accumulated other comprehensive gain (loss) | ' | ' | ' |
Gains (losses) on cash-flow hedges, income tax effect | -29 | 25 | 19 |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | -19 | 15 | 61 |
Pension/Postretirement Adjustment | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' |
Balance at the beginning of the period | -121 | -70 | -49 |
Actuarial gains (losses) on pension and postretirement obligations, settlements and plan amendments, net of income tax of $32, $27 and $4 for the year ended 2013, 2012 and 2011, respectively | 63 | -56 | -10 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, net of income tax effect of $3, $2 and $5, respectively | 5 | 5 | -11 |
Balance at end of the period | -53 | -121 | -70 |
Income tax effect of accumulated other comprehensive gain (loss) | ' | ' | ' |
Actuarial gains (losses) on pension and other postretirement obligations, settlements and plan amendments, income tax effect | 32 | -27 | -4 |
Losses (gains) related to pension and other postretirement obligations reclassified to earnings, income tax effect | -3 | -2 | 5 |
Unrealized Gain (Loss) on Investment | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' |
Balance at the beginning of the period | -2 | -2 | -2 |
Unrealized gain on investment, net of income tax effect | 1 | 0 | 0 |
Balance at end of the period | ($1) | ($2) | ($2) |
Equity_Details_7
Equity (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' |
Cost of sales | ($5,197) | ($5,294) | ($5,093) |
Financing costs, net | -66 | -67 | -78 |
Income before income taxes | 547 | 601 | 593 |
Income tax (expense) benefit | -144 | -167 | -170 |
Net income | 403 | 434 | 423 |
Gains (losses) on cash-flow hedges | Reclassification from Accumulated Other Comprehensive Income | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' |
Income before income taxes | -68 | 33 | 182 |
Income tax (expense) benefit | 22 | -13 | -66 |
Net income | -46 | 20 | 116 |
Gains (losses) on cash-flow hedges | Reclassification from Accumulated Other Comprehensive Income | Commodity and foreign currency contracts | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' |
Cost of sales | -57 | 43 | 169 |
Gains (losses) on cash-flow hedges | Reclassification from Accumulated Other Comprehensive Income | Interest rate contracts | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' |
Financing costs, net | -3 | -3 | -3 |
Pension and other postretirement obligations | Reclassification from Accumulated Other Comprehensive Income | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' |
Gains (losses) related to pension and other postretirement obligations | ($8) | ($7) | $16 |
Mexican_Tax_on_Beverages_Sweet1
Mexican Tax on Beverages Sweetened with HFCS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Jan. 01, 2002 | Dec. 31, 2011 | Dec. 31, 2008 | Jul. 31, 2006 | Aug. 31, 2009 |
Discriminatory tax on beverages sweetened with HCFS | NAFTA arbitration proceedings | NAFTA arbitration proceedings | NAFTA arbitration proceedings | NAFTA arbitration proceedings | ||
Mexico | Mexico | Mexico | Mexico | Mexico | ||
item | item | CPIngredientes | ||||
Loss Contingencies | ' | ' | ' | ' | ' | ' |
Number of beverage producing plants | ' | 3 | ' | ' | ' | ' |
Number of phases in relation to the case under hearing | ' | ' | ' | ' | 2 | ' |
Damages and pre- and post-judgment interest sought | ' | ' | ' | $288 | ' | ' |
Damages awarded for tax and certain out-of-pocket expenses including accrued interest | 58 | ' | ' | ' | ' | 58.4 |
Settlement of cash proceed which is included in other income | ' | ' | $58.40 | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable business segments | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $1,499 | $1,612 | $1,633 | $1,584 | $1,644 | $1,679 | $1,635 | $1,574 | $6,328 | $6,532 | $6,219 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 613 | 668 | 671 |
Restructuring/impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 10 |
Gain from change in benefit plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 30 |
Integration / acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -31 |
Gain from sale of land | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
NAFTA award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58 |
Assets | 5,360 | ' | ' | ' | 5,592 | ' | ' | ' | 5,360 | 5,592 | 5,317 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 194 | 211 | 211 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 298 | 313 | 263 |
Long-lived assets | 2,285 | ' | ' | ' | 2,325 | ' | ' | ' | 2,285 | 2,325 | 2,287 |
Kenya | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring/impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring/impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | 10 |
China and Colombia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring/impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,970 | 2,035 | 1,863 |
Long-lived assets | 822 | ' | ' | ' | 824 | ' | ' | ' | 822 | 824 | 830 |
Brazil | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 670 | 731 | 841 |
Long-lived assets | 321 | ' | ' | ' | 346 | ' | ' | ' | 321 | 346 | 370 |
Mexico | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,130 | 1,143 | 957 |
Long-lived assets | 296 | ' | ' | ' | 290 | ' | ' | ' | 296 | 290 | 277 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 547 | 564 | 536 |
Long-lived assets | 181 | ' | ' | ' | 199 | ' | ' | ' | 181 | 199 | 189 |
Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 151 | ' | ' | ' | 114 | ' | ' | ' | 151 | 114 | 90 |
Thailand | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 112 | ' | ' | ' | 117 | ' | ' | ' | 112 | 117 | 112 |
Argentina | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 305 | 356 | 344 |
Long-lived assets | 92 | ' | ' | ' | 111 | ' | ' | ' | 92 | 111 | 107 |
Korea | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 301 | 306 | 284 |
Long-lived assets | 91 | ' | ' | ' | 90 | ' | ' | ' | 91 | 90 | 83 |
Others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,405 | 1,397 | 1,394 |
Long-lived assets | 219 | ' | ' | ' | 234 | ' | ' | ' | 219 | 234 | 229 |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,647 | 3,741 | 3,356 |
Assets | 3,008 | ' | ' | ' | 3,116 | ' | ' | ' | 3,008 | 3,116 | 2,879 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 112 | 130 | 128 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 141 | 162 | 119 |
South America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,334 | 1,462 | 1,569 |
Assets | 1,088 | ' | ' | ' | 1,230 | ' | ' | ' | 1,088 | 1,230 | 1,218 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 41 | 44 | 47 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 76 | 75 | 84 |
Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 805 | 816 | 764 |
Assets | 711 | ' | ' | ' | 730 | ' | ' | ' | 711 | 730 | 757 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 24 | 23 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 33 | 24 |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 542 | 513 | 530 |
Assets | 553 | ' | ' | ' | 516 | ' | ' | ' | 553 | 516 | 463 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 13 | 13 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 43 | 36 |
Operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 613 | 701 | 624 |
Operating segments | North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 401 | 408 | 322 |
Operating segments | South America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 116 | 198 | 203 |
Operating segments | Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 97 | 95 | 79 |
Operating segments | EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 74 | 78 | 84 |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ($75) | ($78) | ($64) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Violation of the Lanham Act and California's unfair competition law) | 0 Months Ended |
Apr. 22, 2011 | |
item | |
Violation of the Lanham Act and California's unfair competition law | ' |
Commitments and Contingencies | ' |
Number of other sugar companies who have filed a complaint in the U.S. District Court | 2 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales before shipping and handling costs | $1,579 | $1,696 | $1,715 | $1,662 | $1,726 | $1,764 | $1,720 | $1,658 | $6,653 | $6,868 | $6,544 |
Less: shipping and handling costs | 80 | 84 | 82 | 78 | 82 | 85 | 85 | 84 | 325 | 336 | 325 |
Net sales | 1,499 | 1,612 | 1,633 | 1,584 | 1,644 | 1,679 | 1,635 | 1,574 | 6,328 | 6,532 | 6,219 |
Gross profit | 291 | 259 | 276 | 306 | 333 | 313 | 295 | 296 | 1,131 | 1,238 | 1,126 |
Net income attributable to Ingredion | $104 | $86 | $95 | $111 | $112 | $113 | $109 | $94 | $396 | $428 | $416 |
Basic earnings per common share of Ingredion (in dollars per share) | $1.37 | $1.12 | $1.22 | $1.43 | $1.45 | $1.47 | $1.42 | $1.23 | $5.14 | $5.59 | $5.44 |
Diluted earnings per common share of Ingredion (in dollars per share) | $1.35 | $1.10 | $1.20 | $1.41 | $1.42 | $1.45 | $1.40 | $1.21 | $5.05 | $5.47 | $5.32 |