Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Ingredion Inc | ' |
Entity Central Index Key | '0001046257 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 74,584,000 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Income | ' | ' |
Net sales before shipping and handling costs | $1,435 | $1,662.40 |
Less: shipping and handling costs | 77.8 | 78.6 |
Net sales | 1,357.20 | 1,583.80 |
Cost of sales | 1,107.40 | 1,278.20 |
Gross profit | 249.8 | 305.6 |
Operating expenses | 132.4 | 135.5 |
Other (income), net | -4.9 | -5 |
Operating income | 122.3 | 175.1 |
Financing costs, net | 16.6 | 16.8 |
Income before income taxes | 105.7 | 158.3 |
Provision for income taxes | 30.5 | 46.3 |
Net income | 75.2 | 112 |
Less: Net income attributable to non-controlling interests | 2.6 | 1.2 |
Net income attributable to Ingredion | $72.60 | $110.80 |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 74.6 | 77.4 |
Diluted (in shares) | 75.8 | 78.8 |
Earnings per common share of Ingredion: | ' | ' |
Basic (in dollars per share) | $0.97 | $1.43 |
Diluted (in dollars per share) | $0.96 | $1.41 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Comprehensive Income | ' | ' |
Net income | $75.20 | $112 |
Other comprehensive income (loss): | ' | ' |
Gains (losses) on cash flow hedges, net of income tax effect of $13 and $4, respectively | 26 | -9 |
Amount of (gains) losses on cash flow hedges reclassified to earnings, net of income tax effect of $6 and $6, respectively | 13 | -12 |
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | 1 |
Currency translation adjustment | -32 | -22 |
Comprehensive income | 83 | 70 |
Comprehensive income attributable to non-controlling interests | -3 | -1 |
Comprehensive income attributable to Ingredion | $80 | $69 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Comprehensive Income | ' | ' |
Gains (losses) on cash flow hedges, income tax effect | $13 | ($4) |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | ($6) | $6 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $560 | $574 |
Accounts receivable - net | 813 | 832 |
Inventories | 757 | 723 |
Prepaid expenses | 21 | 17 |
Deferred income taxes | 36 | 68 |
Total current assets | 2,187 | 2,214 |
Property, plant and equipment - net of accumulated depreciation of $2,801 and $2,776, respectively | 2,136 | 2,156 |
Goodwill | 530 | 535 |
Other intangible assets - net of accumulated amortization of $53 and $49, respectively | 308 | 311 |
Deferred income taxes | 14 | 15 |
Investments | 10 | 11 |
Other assets | 116 | 118 |
Total assets | 5,301 | 5,360 |
Current liabilities | ' | ' |
Short-term borrowings | 61 | 93 |
Accounts payable and accrued liabilities | 658 | 727 |
Total current liabilities | 719 | 820 |
Non-current liabilities | 153 | 163 |
Long-term debt | 1,718 | 1,717 |
Deferred income taxes | 207 | 207 |
Share-based payments subject to redemption | 15 | 24 |
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 - 77,810,875 and 77,672,670 shares issued at March 31, 2014 and December 31, 2013, respectively | 1 | 1 |
Additional paid-in capital | 1,171 | 1,166 |
Less: Treasury stock (common stock; 3,268,524 and 3,361,180 shares at March 31, 2014 and December 31, 2013, respectively) at cost | -220 | -225 |
Accumulated other comprehensive loss | -575 | -583 |
Retained earnings | 2,086 | 2,045 |
Total Ingredion stockholders' equity | 2,463 | 2,404 |
Non-controlling interests | 26 | 25 |
Total equity | 2,489 | 2,429 |
Total liabilities and equity | $5,301 | $5,360 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Property, plant and equipment, accumulated depreciation (in dollars) | $2,801 | $2,776 |
Other intangible assets, accumulated amortization (in dollars) | $53 | $49 |
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 | 77,810,875 | 77,672,670 |
Treasury stock, shares | 3,268,524 | 3,361,180 |
Condensed_Consolidated_Stateme3
Condensed 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, 2012 | ' | ' | $1 | $1,148 | ($6) | ($475) | $1,769 | $22 |
Balance Share-based Payments Subject to Redemption at Dec. 31, 2012 | ' | 19 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Ingredion | 110.8 | ' | ' | ' | ' | ' | 111 | ' |
Net income attributable to non-controlling interests | -1.2 | ' | ' | ' | ' | ' | ' | 1 |
Dividends declared | ' | ' | ' | ' | ' | ' | -30 | -2 |
Gains (Losses) on cash flow hedges, net of income tax effect of $13 and $4 for the three months ended March 31, 2014 and 2013, respectively | -9 | ' | ' | ' | ' | -9 | ' | ' |
Amount of (gains) losses on cash flow hedges reclassified to earnings, net of income tax effect of $6 and $6 for the three months ended March 31, 2014 and 2013, respectively | -12 | ' | ' | ' | ' | -12 | ' | ' |
Share-based compensation | ' | -3 | ' | 11 | -1 | ' | ' | ' |
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | ' | ' | ' | ' | 1 | ' | ' |
Currency translation adjustment | -22 | ' | ' | ' | ' | -22 | ' | ' |
Balance at Mar. 31, 2013 | ' | ' | 1 | 1,159 | -7 | -517 | 1,850 | 21 |
Balance Share-based Payments Subject to Redemption at Mar. 31, 2013 | ' | 16 | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Ingredion | 72.6 | ' | ' | ' | ' | ' | 73 | ' |
Net income attributable to non-controlling interests | -2.6 | ' | ' | ' | ' | ' | ' | 3 |
Dividends declared | ' | ' | ' | ' | ' | ' | -32 | -2 |
Gains (Losses) on cash flow hedges, net of income tax effect of $13 and $4 for the three months ended March 31, 2014 and 2013, respectively | 26 | ' | ' | ' | ' | 26 | ' | ' |
Amount of (gains) losses on cash flow hedges reclassified to earnings, net of income tax effect of $6 and $6 for the three months ended March 31, 2014 and 2013, respectively | 13 | ' | ' | ' | ' | 13 | ' | ' |
Share-based compensation | ' | -9 | ' | 5 | 5 | ' | ' | ' |
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | ' | ' | ' | ' | 1 | ' | ' |
Currency translation adjustment | -32 | ' | ' | ' | ' | -32 | ' | ' |
Balance at Mar. 31, 2014 | 2,489 | ' | 1 | 1,171 | -220 | -575 | 2,086 | 26 |
Balance Share-based Payments Subject to Redemption at Mar. 31, 2014 | $15 | $15 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Equity and Redeemable Equity (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Equity and Redeemable Equity | ' | ' |
Gains (losses) on cash flow hedges, income tax effect | $13 | ($4) |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | ($6) | $6 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash provided by operating activities: | ' | ' |
Net income | $75.20 | $112 |
Non-cash charges to net income: | ' | ' |
Depreciation and amortization | 48 | 49 |
Changes in working capital: | ' | ' |
Accounts receivable and prepaid items | -8 | -75 |
Inventories | -35 | -80 |
Accounts payable and accrued liabilities | -12 | -67 |
Decrease in margin accounts | 32 | ' |
Other | 21 | 31 |
Cash provided by (used for) operating activities | 121 | -30 |
Cash used for investing activities: | ' | ' |
Capital expenditures, net of proceeds on disposals | -59 | -66 |
Short-term investments | ' | 19 |
Other | ' | 2 |
Cash used for investing activities | -59 | -45 |
Cash used for financing activities: | ' | ' |
Proceeds from borrowings | 12 | 17 |
Payments on debt | -46 | -6 |
Issuance (repurchase) of common stock | -1 | 8 |
Dividends paid (including to non-controlling interests) | -33 | -22 |
Cash used for financing activities | -68 | -3 |
Effect of foreign exchange rate changes on cash | -8 | -5 |
Decrease in cash and cash equivalents | -14 | -83 |
Cash and cash equivalents, beginning of period | 574 | 609 |
Cash and cash equivalents, end of period | $560 | $526 |
Interim_Financial_Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2014 | |
Interim Financial Statements | ' |
Interim Financial Statements | ' |
1. Interim Financial Statements | |
References to the “Company” are to Ingredion Incorporated (“Ingredion”) and its consolidated subsidiaries. These statements should be read in conjunction with the consolidated financial statements and the related notes to those statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
The unaudited condensed consolidated interim financial statements included herein were prepared by management on the same basis as the Company’s audited consolidated financial statements for the year ended December 31, 2013 and reflect all adjustments (consisting solely of normal recurring items unless otherwise noted) which are, in the opinion of management, necessary for the fair presentation of results of operations and cash flows for the interim periods ended March 31, 2014 and 2013, and the financial position of the Company as of March 31, 2014. The results for the interim periods are not necessarily indicative of the results expected for the full years. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Standards | ' |
New Accounting Standards | ' |
2. New Accounting Standards | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This Update clarifies the guidance pertaining to the release of the cumulative translation adjustment (“CTA”) to resolve diversity in practice. The Update clarifies that when a company ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the company should release any related CTA into net income. In such instances, the CTA should be released into net income only if a sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Update also requires the release of the CTA (or applicable pro rata portion thereof) upon the sale or partial sale of an equity method investment that is a foreign entity and for a step acquisition in which the acquirer held an equity method investment prior to obtaining control. The guidance in this Update is effective prospectively for fiscal years beginning after December 15, 2013, and interim periods within those fiscal years. The adoption of the guidance contained in this Update did not have an impact on the Company’s 2014 Condensed Consolidated Financial Statements. However, the guidance contained in this Update will impact the accounting for the CTA upon any future de-recognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity; and the effect will be dependent upon a relevant transaction at that time. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update provides guidance pertaining to the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, to resolve diversity in practice. The Update requires that companies present an unrecognized tax benefit as a reduction of a deferred tax asset for a tax loss or credit carryforward on the balance sheet when (a) the tax law requires the company to use the tax loss or credit carryforward to satisfy amounts payable upon disallowance of the tax position; or (b) the tax loss or credit carryforward is available to satisfy amounts payable upon disallowance of the tax position, and the company intends to use the deferred tax asset for that purpose. The guidance in this Update is effective prospectively for fiscal years beginning after December 15, 2013, and interim periods within those fiscal years. The Company adopted the guidance in this Update prospectively and the adoption did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Segment Information | ' | |||||||
3. 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, the Middle East and Africa (“EMEA”). The 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. The 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. | ||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Net Sales | ||||||||
North America | $ | 736.9 | $ | 909.8 | ||||
South America | 293.8 | 348.7 | ||||||
Asia Pacific | 185.4 | 195.5 | ||||||
EMEA | 141.1 | 129.8 | ||||||
Total | $ | 1,357.20 | $ | 1,583.80 | ||||
Operating Income | ||||||||
North America | $ | 65.2 | $ | 107.7 | ||||
South America | 29.9 | 43.4 | ||||||
Asia Pacific | 25.7 | 23 | ||||||
EMEA | 21.1 | 19.3 | ||||||
Corporate | (19.6 | ) | (18.3 | ) | ||||
Total | $ | 122.3 | $ | 175.1 | ||||
(in millions) | At | At | ||||||
March 31, 2014 | Dec. 31, 2013 | |||||||
Total Assets | ||||||||
North America | $ | 2,984 | $ | 3,008 | ||||
South America | 1,031 | 1,088 | ||||||
Asia Pacific | 713 | 711 | ||||||
EMEA | 573 | 553 | ||||||
Total | $ | 5,301 | $ | 5,360 |
Financial_Instruments_Derivati
Financial Instruments, Derivatives and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Financial Instruments, Derivatives and Hedging Activities | ' | |||||||||||||||||||||||||
Financial Instruments, Derivatives and Hedging Activities | ' | |||||||||||||||||||||||||
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 and swaps, 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. 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 Condensed Consolidated Balance Sheets as part of accumulated other comprehensive income/loss (“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 March 31, 2014, AOCI included $8 million of gains, net of tax of $4 million, pertaining to commodities-related derivative instruments designated as cash-flow hedges. 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. | ||||||||||||||||||||||||||
Interest rate hedging: 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 did not have any T-locks outstanding at March 31, 2014 or December 31, 2013. The Company has interest rate swap agreements that effectively convert the interest rate on its 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. 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 fair value of these interest rate swap agreements at March 31, 2014 and December 31, 2013 was $14 million and $13 million, respectively, and is reflected in the Condensed 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. | ||||||||||||||||||||||||||
AOCI included $8 million of losses (net of income taxes of $5 million) related to settled T-Locks at both March 31, 2014 and December 31, 2013. These deferred losses are being amortized to financing costs over the terms of the senior notes with which they are associated. | ||||||||||||||||||||||||||
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 March 31, 2014, the Company had foreign currency forward sales contracts with an aggregate notional amount of $136 million and foreign currency forward purchase contracts with an aggregate notional amount of $51 million that hedged transactional exposures. 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. The fair value of these derivative instruments are liabilities of $6 million and $5 million at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
The Company also has foreign currency derivative instruments that hedge certain foreign currency transactional exposures and are designated as cash-flow hedges. At March 31, 2014, AOCI included $1 million of net losses, net of income taxes, associated with these hedges. At December 31, 2013, AOCI included $1 million of net gains, net of income taxes, associated with these hedges. | ||||||||||||||||||||||||||
The fair value and balance sheet location of the Company’s derivative instruments, accounted for as cash-flow hedges and presented gross on the Condensed Consolidated Balance Sheets, are reflected below: | ||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Derivatives designated as cash-flow hedging instruments: | Balance | At | At | Balance | At | At | ||||||||||||||||||||
(in millions) | Sheet | March 31, | December 31, | Sheet | March 31, | December 31, | ||||||||||||||||||||
Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||||||
Commodity and foreign currency contracts | Accounts receivable-net | $ | 19 | $ | 2 | Accounts payable and accrued liabilities | $ | 6 | $ | 27 | ||||||||||||||||
Commodity and foreign currency contracts | Other assets | 2 | 5 | |||||||||||||||||||||||
Total | $ | 21 | $ | 7 | $ | 6 | $ | 27 | ||||||||||||||||||
At March 31, 2014, the Company had outstanding futures and option contracts that hedged the forecasted purchase of approximately 58 million bushels of corn. Also at March 31, 2014, the Company had outstanding swap and option contracts that hedged the forecasted purchase of approximately 10 million mmbtu’s of 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 March 31, 2014. | ||||||||||||||||||||||||||
Additional information relating to the Company’s derivative instruments is presented below (in millions, pre-tax): | ||||||||||||||||||||||||||
Amount of Gains (Losses) | Location of | Amount of Gains (Losses) | ||||||||||||||||||||||||
Recognized in OCI | Gains (Losses) | Reclassified from AOCI | ||||||||||||||||||||||||
on Derivatives | into Income | |||||||||||||||||||||||||
Derivatives in Cash-Flow Hedging Relationships | Three Months | Three Months | Reclassified | Three Months | Three Months | |||||||||||||||||||||
Ended | Ended | from AOCI | Ended | Ended | ||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | into Income | March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||
Commodity and foreign currency contracts | $ | 39 | $ | (13 | ) | Cost of sales | $ | (18 | ) | $ | 19 | |||||||||||||||
Interest rate contracts | — | — | Financing costs, net | (1 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 39 | $ | (13 | ) | $ | (19 | ) | $ | 18 | ||||||||||||||||
At March 31, 2014, AOCI included approximately $7 million of gains, net of income taxes of $4 million, on commodities-related derivative instruments designated as cash-flow hedges that are expected to be reclassified into earnings during the next twelve months. The Company expects the gains to be offset by changes in the underlying commodities cost. Additionally at March 31, 2014, 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. | ||||||||||||||||||||||||||
Presented below are the fair values of the Company’s financial instruments and derivatives for the periods presented: | ||||||||||||||||||||||||||
At March 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available for sale securities | $ | 3 | $ | 3 | $ | — | $ | — | $ | 4 | $ | 4 | $ | — | $ | — | ||||||||||
Derivative assets | 35 | 16 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||
Derivative liabilities | 12 | 3 | 9 | — | 32 | 22 | 10 | — | ||||||||||||||||||
Long-term debt | 1,847 | — | 1,847 | — | 1,813 | — | 1,813 | — | ||||||||||||||||||
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. At March 31, 2014, the carrying value and fair value of the Company’s long-term debt were $1.72 billion and $1.85 billion, respectively. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Share-Based Compensation | ' | |||||||||||
Share-Based Compensation | ' | |||||||||||
5. Share-Based Compensation | ||||||||||||
A summary of information with respect to share-based compensation is as follows: | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Total share-based compensation expense included in net income | $ | 4.7 | $ | 4.6 | ||||||||
Income tax benefit related to share-based compensation included in net income | $ | 1.4 | $ | 1.4 | ||||||||
Stock Options: | ||||||||||||
Under the Company’s stock incentive plan, stock options are granted at exercise prices that equal the market value of the underlying common stock on the date of grant. The options have a 10-year term and are exercisable upon vesting, which occurs over a three-year period at the anniversary dates of the date of grant. Compensation expense is recognized on a straight-line basis for all awards. Expense recognized for stock options was $2 million in both first quarter 2014 and 2013. | ||||||||||||
The Company granted non-qualified options to purchase 710 thousand shares and 415 thousand shares of the Company’s common stock during the three months ended March 31, 2014 and 2013, respectively. The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Expected life (in years) | 5.5 | 5.8 | ||||||||||
Risk-free interest rate | 1.63 | % | 1.11 | % | ||||||||
Expected volatility | 30.28 | % | 32.64 | % | ||||||||
Expected dividend yield | 2.82 | % | 1.57 | % | ||||||||
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 grant date for the period 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. | ||||||||||||
Stock option activity for the three months ended March 31, 2014 was as follows: | ||||||||||||
(dollars and options in thousands, except per share amounts) | Number of | Weighted | Average | Aggregate | ||||||||
Options | Average | Remaining | Intrinsic | |||||||||
Exercise | Contractual | Value | ||||||||||
Price per | Term (Years) | |||||||||||
Share | ||||||||||||
Outstanding at December 31, 2013 | 2,849 | $ | 40.77 | |||||||||
Granted | 710 | 59.58 | ||||||||||
Exercised | -83 | 32.95 | ||||||||||
Cancelled | -13 | 61.3 | ||||||||||
Outstanding at March 31, 2014 | 3,463 | 44.74 | 6.45 | $ | 80,829 | |||||||
Exercisable at March 31, 2014 | 2,392 | 37.63 | 5.13 | $ | 72,844 | |||||||
For the three months ended March 31, 2014, cash received from the exercise of stock options was $3 million. At March 31, 2014, the total remaining unrecognized compensation cost related to stock options approximated $14 million, which will be amortized over the weighted-average period of approximately 2.3 years. | ||||||||||||
Additional information pertaining to stock option activity is as follows: | ||||||||||||
(dollars in thousands, except per share) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted average grant date fair value of stock options granted (per share) | $ | 12.97 | $ | 17.87 | ||||||||
Total intrinsic value of stock options exercised | $ | 2,775 | $ | 11,185 | ||||||||
Restricted Shares of Common Stock and Restricted Stock Units: | ||||||||||||
The Company has granted shares of restricted common stock (“restricted shares”) and restricted stock units (“restricted units”) to certain key employees. The restricted shares and restricted units are subject to cliff vesting, generally after three to five years provided the employee remains in the service of the Company. The fair value of the restricted shares 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. Expense recognized for restricted shares and restricted units for the three months ended March 31, 2014 aggregated $2 million, consistent with the comparable prior-year period. | ||||||||||||
The following table summarizes restricted share and restricted unit activity for the three months ended March 31, 2014: | ||||||||||||
Restricted Shares | Restricted Units | |||||||||||
(in thousands, except per share amounts) | 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, 2013 | 48 | $ | 26.25 | 469 | $ | 54.47 | ||||||
Granted | — | — | 143 | 60.26 | ||||||||
Vested | (30 | ) | 25.58 | (150 | ) | 49.27 | ||||||
Cancelled | — | — | (10 | ) | 53.14 | |||||||
Non-vested at March 31, 2014 | 18 | 27.33 | 452 | 58.06 | ||||||||
At March 31, 2014, the total remaining unrecognized compensation cost related to restricted units was $16 million, which will be amortized over a weighted-average period of approximately 2.3 years. Unrecognized compensation cost related to restricted shares was insignificant at March 31, 2014. |
Net_Periodic_Pension_and_Postr
Net Periodic Pension and Postretirement Benefit Costs | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Net Periodic Pension and Postretirement Benefit Costs | ' | |||||||||||||
Net Periodic Pension and Postretirement Benefit Costs | ' | |||||||||||||
6. Net Periodic Pension and Postretirement Benefit Costs | ||||||||||||||
For detailed information about the Company’s pension and postretirement benefit plans, please refer to Note 8 of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||
The following table sets forth the components of net periodic benefit cost of the US and non-US defined benefit pension plans for the periods presented: | ||||||||||||||
(in millions) | Three Months | |||||||||||||
Ended March 31, | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 1.8 | $ | 2 | $ | 1.5 | $ | 2.4 | ||||||
Interest cost | 3.3 | 2.8 | 3.6 | 3.1 | ||||||||||
Expected return on plan assets | (5.2 | ) | (4.6 | ) | (3.5 | ) | (3.0 | ) | ||||||
Amortization of net actuarial loss | 0.1 | 0.5 | 0.8 | 1.2 | ||||||||||
Amortization of transition obligation | — | — | 0.1 | 0.1 | ||||||||||
Net pension cost | $ | — | $ | 0.7 | $ | 2.5 | $ | 3.8 | ||||||
The Company currently anticipates that it will make approximately $10 million in cash contributions to its pension plans in 2014, consisting of $2 million to its US pension plans and $8 million to its non-US pension plans. For the three months ended March 31, 2014, cash contributions of approximately $2 million were made to the non-US plans. No cash contributions were made to the US plans during first quarter 2014. | ||||||||||||||
The following table sets forth the components of net postretirement benefit cost for the periods presented: | ||||||||||||||
(in millions) | Three Months | |||||||||||||
Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Service cost | $ | 0.7 | $ | 0.8 | ||||||||||
Interest cost | 0.9 | 1 | ||||||||||||
Amortization of net actuarial loss | 0.1 | 0.3 | ||||||||||||
Net postretirement benefit cost | $ | 1.7 | $ | 2.1 |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
7. Inventories | ||||||||
Inventories are summarized as follows: | ||||||||
(in millions) | At | At | ||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Finished and in process | $ | 454 | $ | 440 | ||||
Raw materials | 258 | 235 | ||||||
Manufacturing supplies and other | 45 | 48 | ||||||
Total inventories | $ | 757 | $ | 723 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
8. Accumulated Other Comprehensive Loss | |||||||||||||||||
A summary of accumulated other comprehensive loss for the three months ended March 31, 2014 and 2013 is provided below: | |||||||||||||||||
(in millions) | Cumulative | Deferred | Pension/ | Unrealized | Accumulated | ||||||||||||
Translation | Gain/(Loss) | Postretirement | Loss on | Other | |||||||||||||
Adjustment | on Hedging | Adjustment | Investment | Comprehensive | |||||||||||||
Activities | Loss | ||||||||||||||||
Balance, December 31, 2013 | $ | (489 | ) | $ | (40 | ) | $ | (53 | ) | $ | (1 | ) | $ | (583 | ) | ||
Gains on cash-flow hedges, net of income tax effect of $13 | 26 | 26 | |||||||||||||||
Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of $6 | 13 | 13 | |||||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | 1 | |||||||||||||||
Currency translation adjustment | (32 | ) | (32 | ) | |||||||||||||
Balance, March 31, 2014 | $ | (521 | ) | $ | (1 | ) | $ | (52 | ) | $ | (1 | ) | $ | (575 | ) | ||
(in millions) | Cumulative | Deferred | Pension/ | Unrealized | Accumulated | ||||||||||||
Translation | Gain/(Loss) | Postretirement | Loss on | Other | |||||||||||||
Adjustment | on Hedging | Adjustment | Investment | Comprehensive | |||||||||||||
Activities | Loss | ||||||||||||||||
Balance, December 31, 2012 | $ | (335 | ) | $ | (17 | ) | $ | (121 | ) | $ | (2 | ) | $ | (475 | ) | ||
Losses on cash-flow hedges, net of income tax effect of $4 | (9 | ) | (9 | ) | |||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $6 | (12 | ) | (12 | ) | |||||||||||||
Losses related to pensions and other postretirement obligations reclassified to earnings, net of income tax | 1 | 1 | |||||||||||||||
Currency translation adjustment | (22 | ) | (22 | ) | |||||||||||||
Balance, March 31, 2013 | $ | (357 | ) | $ | (38 | ) | $ | (120 | ) | $ | (2 | ) | $ | (517 | ) | ||
The following table provides detail pertaining to reclassifications from AOCI into net income for the periods presented: | |||||||||||||||||
Details about AOCI Components | Amount Reclassified | Affected Line Item in | |||||||||||||||
from AOCI | |||||||||||||||||
Three Months ended March 31, | Condensed Consolidated | ||||||||||||||||
(in millions) | 2014 | 2013 | Statements of Income | ||||||||||||||
Gains (losses) on cash-flow hedges: | |||||||||||||||||
Commoditity and foreign currency contracts | (18 | ) | 19 | Cost of sales | |||||||||||||
Interest rate contracts | (1 | ) | (1 | ) | Financing costs, net | ||||||||||||
Losses related to pension and other postretirement obligations | (1 | ) | (2 | ) | (a) | ||||||||||||
Total before tax reclassifications | (20 | ) | 16 | ||||||||||||||
Income tax (expense) benefit | 6 | (5 | ) | ||||||||||||||
Total after tax reclassifications | (14 | ) | 11 | ||||||||||||||
(a) This component is included in the computation of net periodic benefit cost and affects both cost of sales and operating expenses on the Condensed Consolidated Statements of Income. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Schedule of segment reporting of net sales, operating income and total assets | ' | |||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Net Sales | ||||||||
North America | $ | 736.9 | $ | 909.8 | ||||
South America | 293.8 | 348.7 | ||||||
Asia Pacific | 185.4 | 195.5 | ||||||
EMEA | 141.1 | 129.8 | ||||||
Total | $ | 1,357.20 | $ | 1,583.80 | ||||
Operating Income | ||||||||
North America | $ | 65.2 | $ | 107.7 | ||||
South America | 29.9 | 43.4 | ||||||
Asia Pacific | 25.7 | 23 | ||||||
EMEA | 21.1 | 19.3 | ||||||
Corporate | (19.6 | ) | (18.3 | ) | ||||
Total | $ | 122.3 | $ | 175.1 | ||||
(in millions) | At | At | ||||||
March 31, 2014 | Dec. 31, 2013 | |||||||
Total Assets | ||||||||
North America | $ | 2,984 | $ | 3,008 | ||||
South America | 1,031 | 1,088 | ||||||
Asia Pacific | 713 | 711 | ||||||
EMEA | 573 | 553 | ||||||
Total | $ | 5,301 | $ | 5,360 |
Financial_Instruments_Derivati1
Financial Instruments, Derivatives and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
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 cash-flow hedging instruments: | Balance | At | At | Balance | At | At | ||||||||||||||||||||
(in millions) | Sheet | March 31, | December 31, | Sheet | March 31, | December 31, | ||||||||||||||||||||
Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||||||
Commodity and foreign currency contracts | Accounts receivable-net | $ | 19 | $ | 2 | Accounts payable and accrued liabilities | $ | 6 | $ | 27 | ||||||||||||||||
Commodity and foreign currency contracts | Other assets | 2 | 5 | |||||||||||||||||||||||
Total | $ | 21 | $ | 7 | $ | 6 | $ | 27 | ||||||||||||||||||
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) | Location of | Amount of Gains (Losses) | ||||||||||||||||||||||||
Recognized in OCI | Gains (Losses) | Reclassified from AOCI | ||||||||||||||||||||||||
on Derivatives | into Income | |||||||||||||||||||||||||
Derivatives in Cash-Flow Hedging Relationships | Three Months | Three Months | Reclassified | Three Months | Three Months | |||||||||||||||||||||
Ended | Ended | from AOCI | Ended | Ended | ||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | into Income | March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||
Commodity and foreign currency contracts | $ | 39 | $ | (13 | ) | Cost of sales | $ | (18 | ) | $ | 19 | |||||||||||||||
Interest rate contracts | — | — | Financing costs, net | (1 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 39 | $ | (13 | ) | $ | (19 | ) | $ | 18 | ||||||||||||||||
Schedule of fair value of financial instruments and derivatives | ' | |||||||||||||||||||||||||
At March 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available for sale securities | $ | 3 | $ | 3 | $ | — | $ | — | $ | 4 | $ | 4 | $ | — | $ | — | ||||||||||
Derivative assets | 35 | 16 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||
Derivative liabilities | 12 | 3 | 9 | — | 32 | 22 | 10 | — | ||||||||||||||||||
Long-term debt | 1,847 | — | 1,847 | — | 1,813 | — | 1,813 | — | ||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Share-Based Compensation | ' | |||||||||||
Schedule of information with respect to share-based compensation | ' | |||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Total share-based compensation expense included in net income | $ | 4.7 | $ | 4.6 | ||||||||
Income tax benefit related to share-based compensation included in net income | $ | 1.4 | $ | 1.4 | ||||||||
Schedule of valuation assumptions for stock options | ' | |||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Expected life (in years) | 5.5 | 5.8 | ||||||||||
Risk-free interest rate | 1.63 | % | 1.11 | % | ||||||||
Expected volatility | 30.28 | % | 32.64 | % | ||||||||
Expected dividend yield | 2.82 | % | 1.57 | % | ||||||||
Schedule of stock option activity | ' | |||||||||||
(dollars and options in thousands, except per share amounts) | Number of | Weighted | Average | Aggregate | ||||||||
Options | Average | Remaining | Intrinsic | |||||||||
Exercise | Contractual | Value | ||||||||||
Price per | Term (Years) | |||||||||||
Share | ||||||||||||
Outstanding at December 31, 2013 | 2,849 | $ | 40.77 | |||||||||
Granted | 710 | 59.58 | ||||||||||
Exercised | -83 | 32.95 | ||||||||||
Cancelled | -13 | 61.3 | ||||||||||
Outstanding at March 31, 2014 | 3,463 | 44.74 | 6.45 | $ | 80,829 | |||||||
Exercisable at March 31, 2014 | 2,392 | 37.63 | 5.13 | $ | 72,844 | |||||||
Schedule of additional information pertaining to stock option activity | ' | |||||||||||
(dollars in thousands, except per share) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted average grant date fair value of stock options granted (per share) | $ | 12.97 | $ | 17.87 | ||||||||
Total intrinsic value of stock options exercised | $ | 2,775 | $ | 11,185 | ||||||||
Schedule of restricted share and restricted unit activity | ' | |||||||||||
Restricted Shares | Restricted Units | |||||||||||
(in thousands, except per share amounts) | 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, 2013 | 48 | $ | 26.25 | 469 | $ | 54.47 | ||||||
Granted | — | — | 143 | 60.26 | ||||||||
Vested | (30 | ) | 25.58 | (150 | ) | 49.27 | ||||||
Cancelled | — | — | (10 | ) | 53.14 | |||||||
Non-vested at March 31, 2014 | 18 | 27.33 | 452 | 58.06 | ||||||||
Net_Periodic_Pension_and_Postr1
Net Periodic Pension and Postretirement Benefit Costs (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Defined benefit pension plans | ' | |||||||||||||
Pension and postretirement benefit plans | ' | |||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||
(in millions) | Three Months | |||||||||||||
Ended March 31, | ||||||||||||||
US Plans | Non-US Plans | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 1.8 | $ | 2 | $ | 1.5 | $ | 2.4 | ||||||
Interest cost | 3.3 | 2.8 | 3.6 | 3.1 | ||||||||||
Expected return on plan assets | (5.2 | ) | (4.6 | ) | (3.5 | ) | (3.0 | ) | ||||||
Amortization of net actuarial loss | 0.1 | 0.5 | 0.8 | 1.2 | ||||||||||
Amortization of transition obligation | — | — | 0.1 | 0.1 | ||||||||||
Net pension cost | $ | — | $ | 0.7 | $ | 2.5 | $ | 3.8 | ||||||
Postretirement Benefit Plans | ' | |||||||||||||
Pension and postretirement benefit plans | ' | |||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||
(in millions) | Three Months | |||||||||||||
Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Service cost | $ | 0.7 | $ | 0.8 | ||||||||||
Interest cost | 0.9 | 1 | ||||||||||||
Amortization of net actuarial loss | 0.1 | 0.3 | ||||||||||||
Net postretirement benefit cost | $ | 1.7 | $ | 2.1 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventories | ' | |||||||
Components of inventories | ' | |||||||
(in millions) | At | At | ||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Finished and in process | $ | 454 | $ | 440 | ||||
Raw materials | 258 | 235 | ||||||
Manufacturing supplies and other | 45 | 48 | ||||||
Total inventories | $ | 757 | $ | 723 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Summary of accumulated other comprehensive loss | ' | ||||||||||||||||
(in millions) | Cumulative | Deferred | Pension/ | Unrealized | Accumulated | ||||||||||||
Translation | Gain/(Loss) | Postretirement | Loss on | Other | |||||||||||||
Adjustment | on Hedging | Adjustment | Investment | Comprehensive | |||||||||||||
Activities | Loss | ||||||||||||||||
Balance, December 31, 2013 | $ | (489 | ) | $ | (40 | ) | $ | (53 | ) | $ | (1 | ) | $ | (583 | ) | ||
Gains on cash-flow hedges, net of income tax effect of $13 | 26 | 26 | |||||||||||||||
Amount of losses on cash-flow hedges reclassified to earnings, net of income tax effect of $6 | 13 | 13 | |||||||||||||||
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | 1 | |||||||||||||||
Currency translation adjustment | (32 | ) | (32 | ) | |||||||||||||
Balance, March 31, 2014 | $ | (521 | ) | $ | (1 | ) | $ | (52 | ) | $ | (1 | ) | $ | (575 | ) | ||
(in millions) | Cumulative | Deferred | Pension/ | Unrealized | Accumulated | ||||||||||||
Translation | Gain/(Loss) | Postretirement | Loss on | Other | |||||||||||||
Adjustment | on Hedging | Adjustment | Investment | Comprehensive | |||||||||||||
Activities | Loss | ||||||||||||||||
Balance, December 31, 2012 | $ | (335 | ) | $ | (17 | ) | $ | (121 | ) | $ | (2 | ) | $ | (475 | ) | ||
Losses on cash-flow hedges, net of income tax effect of $4 | (9 | ) | (9 | ) | |||||||||||||
Amount of gains on cash-flow hedges reclassified to earnings, net of income tax effect of $6 | (12 | ) | (12 | ) | |||||||||||||
Losses related to pensions and other postretirement obligations reclassified to earnings, net of income tax | 1 | 1 | |||||||||||||||
Currency translation adjustment | (22 | ) | (22 | ) | |||||||||||||
Balance, March 31, 2013 | $ | (357 | ) | $ | (38 | ) | $ | (120 | ) | $ | (2 | ) | $ | (517 | ) | ||
Schedule of reclassifications from AOCI into net income | ' | ||||||||||||||||
Details about AOCI Components | Amount Reclassified | Affected Line Item in | |||||||||||||||
from AOCI | |||||||||||||||||
Three Months ended March 31, | Condensed Consolidated | ||||||||||||||||
(in millions) | 2014 | 2013 | Statements of Income | ||||||||||||||
Gains (losses) on cash-flow hedges: | |||||||||||||||||
Commoditity and foreign currency contracts | (18 | ) | 19 | Cost of sales | |||||||||||||
Interest rate contracts | (1 | ) | (1 | ) | Financing costs, net | ||||||||||||
Losses related to pension and other postretirement obligations | (1 | ) | (2 | ) | (a) | ||||||||||||
Total before tax reclassifications | (20 | ) | 16 | ||||||||||||||
Income tax (expense) benefit | 6 | (5 | ) | ||||||||||||||
Total after tax reclassifications | (14 | ) | 11 | ||||||||||||||
(a) This component is included in the computation of net periodic benefit cost and affects both cost of sales and operating expenses on the Condensed Consolidated Statements of Income. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
item | |||
Segment Information | ' | ' | ' |
Number of reportable business segments | 4 | ' | ' |
Segment information | ' | ' | ' |
Net sales | $1,357.20 | $1,583.80 | ' |
Operating income | 122.3 | 175.1 | ' |
Assets | 5,301 | ' | 5,360 |
North America | ' | ' | ' |
Segment information | ' | ' | ' |
Net sales | 736.9 | 909.8 | ' |
Assets | 2,984 | ' | 3,008 |
South America | ' | ' | ' |
Segment information | ' | ' | ' |
Net sales | 293.8 | 348.7 | ' |
Assets | 1,031 | ' | 1,088 |
Asia Pacific | ' | ' | ' |
Segment information | ' | ' | ' |
Net sales | 185.4 | 195.5 | ' |
Assets | 713 | ' | 711 |
EMEA | ' | ' | ' |
Segment information | ' | ' | ' |
Net sales | 141.1 | 129.8 | ' |
Assets | 573 | ' | 553 |
Operating segments | North America | ' | ' | ' |
Segment information | ' | ' | ' |
Operating income | 65.2 | 107.7 | ' |
Operating segments | South America | ' | ' | ' |
Segment information | ' | ' | ' |
Operating income | 29.9 | 43.4 | ' |
Operating segments | Asia Pacific | ' | ' | ' |
Segment information | ' | ' | ' |
Operating income | 25.7 | 23 | ' |
Operating segments | EMEA | ' | ' | ' |
Segment information | ' | ' | ' |
Operating income | 21.1 | 19.3 | ' |
Corporate | ' | ' | ' |
Segment information | ' | ' | ' |
Operating income | ($19.60) | ($18.30) | ' |
Financial_Instruments_Derivati2
Financial Instruments, Derivatives and Hedging Activities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
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 | ||||
Minimum | Maximum | Commodity contracts | Commodity contracts | T-Locks | T-Locks | 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 | 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 | ($575) | ($583) | ($517) | ($475) | ' | ' | $8 | ($32) | ($8) | ($8) | ' | ' | ($1) | $1 | ' | ' | ' | ' |
Accumulated gains (losses) from derivative instruments, income tax effect | ' | ' | ' | ' | ' | ' | 4 | -15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 14 | 13 | ' | ' | ' | ' | ' | ' |
Debt, floating rate of interest basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'six-month US dollar LIBOR plus a spread | ' | ' | ' | ' | ' | ' | ' |
Losses on cash flow hedges, income tax effect | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of foreign currency forward contract liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 5 | ' | ' | ' | ' |
Foreign currency hedging | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $136 | $147 | $51 | $78 |
Financial_Instruments_Derivati3
Financial Instruments, Derivatives and Hedging Activities (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Corn Commodity | ' | ' |
Fair value of commodity contracts | ' | ' |
Corn futures contract (in bushels) | 58,000,000 | ' |
Natural Gas Commodity | ' | ' |
Fair value of commodity contracts | ' | ' |
Natural gas futures contract (in mmbtu) | 10,000,000 | ' |
Soybean Oil | ' | ' |
Fair value of commodity contracts | ' | ' |
Soybean oil futures contract (in pounds) | 0 | ' |
Derivatives designated as cash-flow hedging instruments | Cash-flow | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | $21 | $7 |
Fair value of liabilities | 6 | 27 |
Derivatives designated as cash-flow hedging instruments | Commodity and foreign currency contracts | Accounts receivable-net | Cash-flow | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | 19 | 2 |
Derivatives designated as cash-flow hedging instruments | Commodity and foreign currency contracts | Accounts payable and accrued liabilities | Cash-flow | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of liabilities | 6 | 27 |
Derivatives designated as cash-flow hedging instruments | Commodity and foreign currency contracts | Other assets | Cash-flow | ' | ' |
Fair value of commodity contracts | ' | ' |
Fair value of assets | $2 | $5 |
Financial_Instruments_Derivati4
Financial Instruments, Derivatives and Hedging Activities (Details 3) (Derivatives in Cash-Flow Hedging Relationships, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Gains or losses on derivatives | ' | ' |
Amount of Gains (Losses) Recognized in OCI on Derivatives | $39 | ($13) |
Amount of Gains (Losses) Reclassified from AOCI into Income | -19 | 18 |
Cost of Sales | ' | ' |
Gains or losses on derivatives | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI into Income | -18 | 19 |
Financing Costs, net | ' | ' |
Gains or losses on derivatives | ' | ' |
Amount of Gains (Losses) Reclassified from AOCI into Income | -1 | -1 |
Commodity contracts | ' | ' |
Gains or losses on derivatives | ' | ' |
Gains expected to be reclassified into earnings during the next 12 months on commodity hedging contracts, net of tax | 7 | ' |
Gains expected to be reclassified into earnings during the next 12 months on commodity hedging contracts, income tax effect | 4 | ' |
Commodity and foreign currency contracts | ' | ' |
Gains or losses on derivatives | ' | ' |
Amount of Gains (Losses) Recognized in OCI on Derivatives | 39 | -13 |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value of assets and liabilities | ' | ' |
Long -term debt, fair value | $1,850 | ' |
Recurring fair value measurements | Total | ' | ' |
Fair value of assets and liabilities | ' | ' |
Available for sale securities | 3 | 4 |
Derivatives assets | 35 | 20 |
Derivatives liabilities | 12 | 32 |
Long -term debt, fair value | 1,847 | 1,813 |
Recurring fair value measurements | Level 1 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Available for sale securities | 3 | 4 |
Derivatives assets | 16 | ' |
Derivatives liabilities | 3 | 22 |
Recurring fair value measurements | Level 2 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Derivatives assets | 19 | 20 |
Derivatives liabilities | 9 | 10 |
Long -term debt, fair value | $1,847 | $1,813 |
Financial_Instruments_Derivati6
Financial Instruments, Derivatives and Hedging Activities (Details 5) (USD $) | Mar. 31, 2014 |
In Billions, unless otherwise specified | |
Long-term debt | ' |
Carrying amount | $1.72 |
Long-term debt, fair value | $1.85 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity stock-based compensation | ' | ' |
Total share-based compensation expense included in net income | $4,700,000 | $4,600,000 |
Income tax benefit related to share-based compensation included in net income | 1,400,000 | 1,400,000 |
Stock Option Awards | ' | ' |
Equity stock-based compensation | ' | ' |
Total share-based compensation expense included in net income | 2,000,000 | 2,000,000 |
Term of options | '10 years | ' |
Period of vesting | '3 years | ' |
Assumptions used to measure the fair value of awards | ' | ' |
Expected life | '5 years 6 months | '5 years 9 months 18 days |
Risk-free interest rate (as a percent) | 1.63% | 1.11% |
Expected volatility (as a percent) | 30.28% | 32.64% |
Expected dividend yield (as a percent) | 2.82% | 1.57% |
Stock option activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 2,849 | ' |
Granted (in shares) | 710 | 415 |
Exercised (in shares) | -83 | ' |
Cancelled (in shares) | -13 | ' |
Outstanding at the end of the period (in shares) | 3,463 | ' |
Exercisable at the end of the period (in shares) | 2,392 | ' |
Share options, weighted average exercise price per share | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $40.77 | ' |
Granted (in dollars per share) | $59.58 | ' |
Exercised (in dollars per share) | $32.95 | ' |
Cancelled (in dollars per share) | $61.30 | ' |
Outstanding at the end of the period (in dollars per share) | $44.74 | ' |
Exercisable at the end of the period (in dollars per share) | $37.63 | ' |
Share options, aggregate intrinsic value | ' | ' |
Options outstanding average remaining contractual life | '6 years 5 months 12 days | ' |
Options outstanding aggregate intrinsic value | 80,829,000 | ' |
Stock options exercisable average remaining contractual life | '5 years 1 month 17 days | ' |
Stock options exercisable aggregate intrinsic value | 72,844,000 | ' |
Additional information pertaining to stock options | ' | ' |
Cash received from exercise of stock options | 3,000,000 | ' |
Unrecognized compensation cost | 14,000,000 | ' |
Weighted-average period for amortization of unrecognized compensation cost | '2 years 3 months 18 days | ' |
Weighted-average grant date fair value of stock options granted (in dollars per share) | $12.97 | $17.87 |
Total intrinsic value of stock options exercised | $2,775,000 | $11,185,000 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity stock-based compensation | ' | ' |
Expense recognized during the period | $4.70 | $4.60 |
Restricted Shares and Restricted Stock Units | ' | ' |
Equity stock-based compensation | ' | ' |
Expense recognized during the period | 2 | 2 |
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) | 48 | ' |
Vested (in shares) | -30 | ' |
Non-vested at the end of the period (in shares) | 18 | ' |
Weighted-average fair value per share | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $26.25 | ' |
Vested (in dollars per share) | $25.58 | ' |
Non-vested at the end of the period (in dollars per share) | $27.33 | ' |
Restricted Units | ' | ' |
Restricted shares and unit activity | ' | ' |
Non-vested at the beginning of the period (in shares) | 469 | ' |
Granted (in shares) | 143 | ' |
Vested (in shares) | -150 | ' |
Cancelled (in shares) | -10 | ' |
Non-vested at the end of the period (in shares) | 452 | ' |
Weighted-average fair value per share | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $54.47 | ' |
Granted (in dollars per share) | $60.26 | ' |
Vested (in dollars per share) | $49.27 | ' |
Cancelled (in dollars per share) | $53.14 | ' |
Non-vested at the end of the period (in dollars per share) | $58.06 | ' |
Unrecognized compensation cost | $16 | ' |
Weighted-average period for amortization of unrecognized compensation cost | '2 years 3 months 18 days | ' |
Net_Periodic_Pension_and_Postr2
Net Periodic Pension and Postretirement Benefit Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Anticipated cash contributions | ' | ' |
Anticipated cash contributions to pension plans in 2014 | $10 | ' |
US Plans | ' | ' |
Components of Net Periodic Benefit Costs | ' | ' |
Service cost | 1.8 | 2 |
Interest cost | 3.3 | 2.8 |
Expected return on plan assets | -5.2 | -4.6 |
Amortization of net actuarial loss | 0.1 | 0.5 |
Net periodic benefit cost | ' | 0.7 |
Employer Contributions | ' | ' |
Cash contributions to defined benefit pension plan | 0 | ' |
Anticipated cash contributions | ' | ' |
Anticipated cash contributions to pension plans in 2014 | 2 | ' |
Non-US Plans | ' | ' |
Components of Net Periodic Benefit Costs | ' | ' |
Service cost | 1.5 | 2.4 |
Interest cost | 3.6 | 3.1 |
Expected return on plan assets | -3.5 | -3 |
Amortization of net actuarial loss | 0.8 | 1.2 |
Amortization of transition obligation | 0.1 | 0.1 |
Net periodic benefit cost | 2.5 | 3.8 |
Employer Contributions | ' | ' |
Cash contributions to defined benefit pension plan | 2 | ' |
Anticipated cash contributions | ' | ' |
Anticipated cash contributions to pension plans in 2014 | 8 | ' |
Postretirement Benefit Plans | ' | ' |
Components of Net Periodic Benefit Costs | ' | ' |
Service cost | 0.7 | 0.8 |
Interest cost | 0.9 | 1 |
Amortization of net actuarial loss | 0.1 | 0.3 |
Net periodic benefit cost | $1.70 | $2.10 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Finished and in process | $454 | $440 |
Raw materials | 258 | 235 |
Manufacturing supplies and other | 45 | 48 |
Total inventories | $757 | $723 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Cumulative Translation Adjustment | Cumulative Translation Adjustment | Deferred Gain/(Loss) on Hedging Activities | Deferred Gain/(Loss) on Hedging Activities | Pension/Postretirement Adjustment | Pension/Postretirement Adjustment | Unrealized Loss on Investment | Unrealized Loss on Investment | Unrealized Loss on Investment | Unrealized Loss on Investment | |||
Accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ($583) | ($475) | ($489) | ($335) | ($40) | ($17) | ($53) | ($121) | ($1) | ($1) | ($2) | ($2) |
Gains (Losses) on cash-flow hedges, net of income tax effect of $13 and $4 for the three months ended March 31, 2014 and 2013, respectively | 26 | -9 | ' | ' | 26 | -9 | ' | ' | ' | ' | ' | ' |
Amount of (gains) losses on cash flow hedges reclassified to earnings, net of income tax effect of $6 and $6 for the three months ended March 31, 2014 and 2013, respectively | 13 | -12 | ' | ' | 13 | -12 | ' | ' | ' | ' | ' | ' |
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect | 1 | 1 | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' |
Currency translation adjustment | -32 | -22 | -32 | -22 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of the period | -575 | -517 | -521 | -357 | -1 | -38 | -52 | -120 | -1 | -1 | -2 | -2 |
Income tax effect of accumulated other comprehensive gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) on cash flow hedges, income tax effect | 13 | -4 | ' | ' | 13 | -4 | ' | ' | ' | ' | ' | ' |
Amount of (gains) losses on cash flow hedges reclassified to earnings, income tax effect | ($6) | $6 | ' | ' | ($6) | $6 | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' |
Cost of sales | ($1,107.40) | ($1,278.20) |
Financing costs, net | -16.6 | -16.8 |
Income before income taxes | 105.7 | 158.3 |
Income tax (expense) benefit | -30.5 | -46.3 |
Net income | 75.2 | 112 |
Gains (losses) on cash-flow hedges | Reclassification from Accumulated Other Comprehensive Income | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' |
Income before income taxes | -20 | 16 |
Income tax (expense) benefit | 6 | -5 |
Net income | -14 | 11 |
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 | -18 | 19 |
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 | -1 | -1 |
Pension and other postretirement obligations | Reclassification from Accumulated Other Comprehensive Income | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' |
Losses related to pension and other postretirement obligations | ($1) | ($2) |