Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'WEST PHARMACEUTICAL SERVICES INC |
Entity Central Index Key | '0000105770 |
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 Common Stock, Shares Outstanding | 70,764,711 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $368.90 | $344.50 | $715.70 | $683.90 |
Cost of goods and services sold | 247.1 | 233.6 | 487.5 | 461.3 |
Gross profit | 121.8 | 110.9 | 228.2 | 222.6 |
Research and development | 9.9 | 9.5 | 19.9 | 18.6 |
Selling, general and administrative expenses | 57.5 | 59.7 | 113.9 | 118.7 |
Other expense (income) (Note 11) | 0.3 | -0.8 | 1 | -0.6 |
Operating profit | 54.1 | 42.5 | 93.4 | 85.9 |
Loss on debt extinguishment | 0 | 0 | 0 | 0.2 |
Interest expense | 4.2 | 4.1 | 8.2 | 8.7 |
Interest income | 0.5 | 0.4 | 0.9 | 1 |
Income before income taxes | 50.4 | 38.8 | 86.1 | 78 |
Income tax expense | 14 | 10.3 | 23.8 | 18.9 |
Equity in net income of affiliated companies | 1.2 | 1.7 | 2.4 | 2.8 |
Net income | $37.60 | $30.20 | $64.70 | $61.90 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.53 | $0.44 | $0.92 | $0.90 |
Diluted (in dollars per share) | $0.52 | $0.43 | $0.89 | $0.88 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 70.8 | 69.5 | 70.7 | 69.2 |
Diluted (in shares) | 72.4 | 70.8 | 72.4 | 70.6 |
Dividends declared per share | $0.10 | $0.10 | $0.20 | $0.19 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $37.60 | $30.20 | $64.70 | $61.90 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -1.5 | -0.8 | -3.3 | -19.1 |
Defined benefit pension and other postretirement plan adjustments, net of tax of $0, $0.7, $0.2 and $1.8, respectively | 0.1 | 1.1 | 0.3 | 3.2 |
Net gains on derivatives, net of tax of $0.2, $0.5, $0.4 and $0.1, respectively | 0.5 | 0.7 | 0.7 | 0.4 |
Other comprehensive (loss) income, net of tax | -0.9 | 1 | -2.3 | -15.5 |
Comprehensive income | $36.70 | $31.20 | $62.40 | $46.40 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Defined benefit pension and other postretirement plan adjustments, tax | $0 | $0.70 | $0.20 | $1.80 |
Net gains on derivatives, tax | $0.20 | $0.50 | $0.40 | $0.10 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $226.70 | $230 |
Accounts receivable, net | 209.6 | 185.7 |
Inventories | 187.9 | 176.9 |
Deferred income taxes | 16.8 | 15.9 |
Other current assets | 44.4 | 42.2 |
Total current assets | 685.4 | 650.7 |
Property, plant and equipment | 1,402.30 | 1,369 |
Less accumulated depreciation and amortization | 693.1 | 657.3 |
Property, plant and equipment, net | 709.2 | 711.7 |
Investments in affiliated companies | 60.4 | 60.9 |
Goodwill | 114 | 114.2 |
Deferred income taxes | 65.5 | 61.8 |
Intangible assets, net | 46.1 | 48.3 |
Other noncurrent assets | 24.1 | 24 |
Total Assets | 1,704.70 | 1,671.60 |
Current liabilities: | ' | ' |
Notes payable and other current debt | 2.2 | 2.2 |
Accounts payable | 94.5 | 108 |
Pension and other postretirement benefits | 2.2 | 2.2 |
Accrued salaries, wages and benefits | 51.7 | 59.1 |
Income taxes payable | 15 | 14.3 |
Other current liabilities | 55.6 | 51.1 |
Total current liabilities | 221.2 | 236.9 |
Long-term debt | 359.3 | 371.3 |
Deferred income taxes | 19.6 | 18.9 |
Pension and other postretirement benefits | 79.1 | 83.1 |
Other long-term liabilities | 52.9 | 55 |
Total Liabilities | 732.1 | 765.2 |
Commitments and contingencies (Note 13) | ' | ' |
Equity: | ' | ' |
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.25 par value; 100.0 million shares authorized; issued: 70.9 million and 70.4 million; outstanding: 70.8 million and 70.2 million | 17.8 | 17.6 |
Capital in excess of par value | 138.2 | 120 |
Retained earnings | 855.5 | 805 |
Accumulated other comprehensive loss | -34.7 | -32.4 |
Treasury stock, at cost (0.1 million and 0.2 million shares) | -4.2 | -3.8 |
Total Equity | 972.6 | 906.4 |
Total Liabilities and Equity | $1,704.70 | $1,671.60 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Preferred Stock, Shares Authorized | 3 | 3 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.25 | $0.25 |
Common Stock, Shares Authorized | 100 | 100 |
Common Stock, Shares, Issued | 70.9 | 70.4 |
Common Stock, Shares, Outstanding | 70.8 | 70.2 |
Treasury Stock, Shares | 0.1 | 0.2 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) (USD $) | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $906.40 | $17.60 | $120 | ($3.80) | $805 | ($32.40) |
Balance (in shares) at Dec. 31, 2013 | ' | 70.4 | ' | ' | ' | ' |
Increase (Decrease) in Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 64.7 | ' | ' | ' | 64.7 | ' |
Stock-based compensation | 8.6 | ' | 9 | -0.4 | ' | ' |
Shares issued under stock plans (shares) | ' | 0.6 | ' | ' | ' | ' |
Shares issued under stock plans | 9.8 | 0.2 | 9.6 | ' | ' | ' |
Shares repurchased for employee tax withholdings (shares) | ' | -0.1 | ' | ' | ' | ' |
Shares repurchased for employee tax withholdings | -4.1 | ' | -4.1 | ' | ' | ' |
Excess tax benefit from employee stock plans | 3.7 | ' | 3.7 | ' | ' | ' |
Dividends declared | -14.2 | ' | ' | ' | -14.2 | ' |
Other comprehensive loss, net of tax | -2.3 | ' | ' | ' | ' | -2.3 |
Balance at Jun. 30, 2014 | $972.60 | $17.80 | $138.20 | ($4.20) | $855.50 | ($34.70) |
Balance (in shares) at Jun. 30, 2014 | ' | 70.9 | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $64.70 | $61.90 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 42.6 | 39.1 |
Amortization | 2.3 | 2.1 |
Loss on debt extinguishment | 0 | 0.2 |
Stock-based compensation | 8.9 | 10.4 |
Other non-cash items, net | -1.9 | -2.7 |
Changes in assets and liabilities | -43.6 | -12.6 |
Net cash provided by operating activities | 73 | 98.4 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -56.2 | -83.8 |
Purchases of short-term investments | -9.3 | -8.8 |
Sales and maturities of short-term investments | 8.3 | 13.7 |
Other, net | 0.2 | -3 |
Net cash used in investing activities | -57 | -81.9 |
Cash flows from financing activities: | ' | ' |
Borrowings under revolving credit agreements | 182.9 | 178.3 |
Repayments under revolving credit agreements | -192.9 | -171.6 |
Issuance of long-term debt | 0 | 43.3 |
Repayments of long-term debt | -1.1 | -29.3 |
Dividend payments | -14.1 | -13.1 |
Excess tax benefit from employee stock plans | 3.7 | 1.1 |
Shares repurchased for employee tax withholdings | -4.1 | -5.2 |
Proceeds from stock option exercises | 5.2 | 10.7 |
Employee stock purchase plan contributions | 1.5 | 1.1 |
Contingent consideration payments | -0.1 | 0 |
Net cash (used in) provided by financing activities | -19 | 15.3 |
Effect of exchange rates on cash | -0.3 | -3.1 |
Net (decrease) increase in cash and cash equivalents | -3.3 | 28.7 |
Cash and cash equivalents at beginning of period | 230 | 161.9 |
Cash and cash equivalents at end of period | $226.70 | $190.60 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and six months ended June 30, 2014 should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. (which may be referred to as “West”, “the Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year. | |
Stock Split: On August 1, 2013, our Board of Directors approved a two-for-one stock split of our outstanding shares of common stock, effected in the form of a stock dividend. The record date for the stock split was September 12, 2013, and the share distribution occurred on September 26, 2013. All share and per share amounts presented in the accompanying condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the impact of this stock split. |
New_Accounting_Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
Recently Adopted Standards | |
In July 2013, the FASB issued revised guidance to address the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. We adopted this guidance as of January 1, 2014, on a prospective basis. The adoption did not have a material impact on our financial statements. | |
In March 2013, the FASB issued guidance that clarifies the application of U.S. GAAP to the release of cumulative translation adjustments related to changes of ownership in or within foreign entities, including step acquisitions. This guidance, which we adopted as of January 1, 2014, will be applied prospectively if and when changes of ownership related to foreign entities occur. | |
Standards Issued Not Yet Adopted | |
In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management is currently reviewing this guidance to determine the impact it may have, if any, on our financial statements. | |
In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on our financial statements, if any, including which transition method it will adopt. | |
In April 2014, the FASB issued guidance for the reporting of discontinued operations, which also contains new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management believes that the adoption of this guidance will not have a material impact on our financial statements. |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
Net Income Per Share | ||||||||||||||||
The following table reconciles net income and shares used in the calculation of basic net income per share to those used for diluted net income per share: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 37.6 | $ | 30.2 | $ | 64.7 | $ | 61.9 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 70.8 | 69.5 | 70.7 | 69.2 | ||||||||||||
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method | 1.6 | 1.3 | 1.7 | 1.3 | ||||||||||||
Assumed conversion of convertible debt, based on the if-converted method | — | — | — | 0.1 | ||||||||||||
Weighted average shares assuming dilution | 72.4 | 70.8 | 72.4 | 70.6 | ||||||||||||
Under the "if-converted" method, the after-tax effect of interest expense related to convertible debt is added back to net income. During all periods presented, the add-back amount was immaterial. | ||||||||||||||||
In addition, during the three months ended June 30, 2014 and 2013, there were 0.6 million and 0.9 million shares, respectively, not included in the computation of diluted net income per share, because their impact was antidilutive. There were 0.4 million and 0.6 million antidilutive options outstanding during the six months ended June 30, 2014 and 2013, respectively. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are valued at the lower of cost (on a first-in, first-out basis) or market. Inventory balances were as follows: | ||||||||
($ in millions) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Finished goods | $ | 80.5 | $ | 80 | ||||
Work in process | 31 | 24.8 | ||||||
Raw materials | 76.4 | 72.1 | ||||||
$ | 187.9 | $ | 176.9 | |||||
Debt
Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
The following table summarizes our long-term debt obligations, net of current maturities: | ||||||||
($ in millions) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Term loan, due 2014 | $ | — | $ | 0.1 | ||||
Series B floating rate notes, due 2015 | 25 | 25 | ||||||
Euro note B, due 2016 | 83.4 | 84.1 | ||||||
Capital leases, due through 2016 | 0.3 | 0.4 | ||||||
Revolving credit facility, due 2017 | 43.6 | 53.7 | ||||||
Term loan, due 2018 | 40.3 | 41.3 | ||||||
Note payable, due 2019 | 0.3 | 0.3 | ||||||
Series A notes, due 2022 | 42 | 42 | ||||||
Series B notes, due 2024 | 53 | 53 | ||||||
Series C notes, due 2027 | 73 | 73 | ||||||
Convertible debt, due 2047 | 0.6 | 0.6 | ||||||
361.5 | 373.5 | |||||||
Less: current portion of long-term debt | 2.2 | 2.2 | ||||||
$ | 359.3 | $ | 371.3 | |||||
Please refer to Note 10, Debt, to the consolidated financial statements in our 2013 Annual Report for additional details regarding our debt agreements. | ||||||||
At June 30, 2014, we had $43.6 million in outstanding borrowings under our multi-currency revolving credit facility, of which $4.9 million was denominated in Yen, $28.7 million in Euro and the remainder in U.S. dollar ("USD"). The total amount outstanding as of June 30, 2014 and December 31, 2013, was classified as long-term. | ||||||||
At June 30, 2014, we had $40.3 million outstanding under our five-year term loan due January 2018, of which $2.1 million was classified as current. Please refer to Note 6, Derivative Financial Instruments, for a discussion of the interest-rate swap agreement associated with this loan. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
Our ongoing business operations expose us to various risks such as fluctuating interest rates, foreign exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments such as interest rate swaps, options and foreign exchange contracts for periods consistent with and for notional amounts equal to or less than the related underlying exposures. We do not purchase or hold any derivative financial instruments for speculation or trading purposes. All derivatives are recorded on the balance sheet at fair value. | ||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||
At June 30, 2014, we had $40.3 million of outstanding borrowings under our variable-rate five-year term loan related to the purchase of our new corporate office and research building. In anticipation of this debt, we entered into a forward-start interest rate swap to hedge the variability in cash flows due to changes in the applicable interest rate over the stated period. Under this swap, we receive variable interest rate payments based on one-month London Interbank Offering Rates (“LIBOR”) plus a margin in return for making monthly fixed interest payments at 5.41%. We designated this swap as a cash flow hedge. | ||||||||||||||||||
In addition, we have a $25.0 million interest rate swap agreement outstanding as of June 30, 2014, that is designated as a cash flow hedge to protect against volatility in the interest rates on our floating rate notes maturing on July 28, 2015 (“Series B Notes”). Under this swap, we receive variable interest rate payments based on three-month LIBOR in return for making quarterly fixed rate payments. Including the applicable margin, the interest rate swap agreement effectively fixes the interest rate payable on the Series B Notes at 5.51%. | ||||||||||||||||||
Foreign Exchange Rate Risk | ||||||||||||||||||
During 2014, we entered into several foreign currency hedge contracts that were designated as cash flow hedges of forecasted transactions denominated in foreign currencies, which are described in more detail below. | ||||||||||||||||||
We entered into a series of foreign currency contracts intended to hedge the currency risk associated with a portion of our forecasted Yen-denominated purchases of inventory from Daikyo Seiko Ltd. (“Daikyo”) made by West in the United States. As of June 30, 2014, there were six monthly contracts outstanding at ¥95.0 million ($0.9 million) each, for an aggregate notional amount of ¥570.0 million ($5.5 million). | ||||||||||||||||||
We also entered into a series of foreign currency contracts to hedge the currency risk associated with a portion of our forecasted USD-denominated inventory purchases made by certain European subsidiaries. As of June 30, 2014, there were six monthly contracts outstanding at a monthly amount ranging from $1.4 million to $3.0 million, for an aggregate notional amount of $14.1 million. | ||||||||||||||||||
Lastly, we entered into a series of foreign currency contracts to hedge the currency risk associated with a portion of our forecasted Euro-denominated sales of finished goods by one of our USD functional-currency subsidiaries. As of June 30, 2014, there were six monthly contracts outstanding at $1.5 million each, for an aggregate notional amount of $9.0 million. | ||||||||||||||||||
At June 30, 2014, a portion of our debt consists of borrowings denominated in currencies other than the U.S. dollar. We have designated our €61.1 million ($83.4 million) Euro note B and our €21.0 million ($28.7 million) Euro-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in certain European subsidiaries. A cumulative foreign currency translation loss of $4.7 million pre-tax ($2.9 million after tax) on this debt was recorded within accumulated other comprehensive loss as of June 30, 2014. We have also designated our ¥500.0 million ($4.9 million) Yen-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in Daikyo. At June 30, 2014, there was a cumulative foreign currency translation gain on this Yen-denominated debt of $0.5 million pre-tax ($0.3 million after tax) which was also included within accumulated other comprehensive loss. | ||||||||||||||||||
The following table summarizes the effects of derivative instruments designated as hedges on other comprehensive income (“OCI”) and earnings, net of tax: | ||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI for | Amount of Loss Reclassified from Accumulated OCI into Income for | Location of Loss Reclassified from Accumulated OCI into Income | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Foreign currency hedge contracts | $ | 0.1 | $ | (0.1 | ) | $ | — | $ | — | Net sales | ||||||||
Foreign currency hedge contracts | 0.2 | (1.0 | ) | — | 0.9 | Cost of goods and services sold | ||||||||||||
Interest rate swap contracts | (0.2 | ) | 0.4 | 0.4 | 0.4 | Interest expense | ||||||||||||
Forward treasury locks | — | — | — | 0.1 | Interest expense | |||||||||||||
Total | $ | 0.1 | $ | (0.7 | ) | $ | 0.4 | $ | 1.4 | |||||||||
Net Investment Hedges: | ||||||||||||||||||
Foreign currency-denominated debt | $ | 0.5 | $ | (1.0 | ) | $ | — | $ | — | Other expense (income) | ||||||||
Total | $ | 0.5 | $ | (1.0 | ) | $ | — | $ | — | |||||||||
Amount of Gain (Loss) Recognized in OCI for | Amount of Loss Reclassified from Accumulated OCI into Income for | Location of Loss Reclassified from Accumulated OCI into Income | ||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 0.2 | $ | — | $ | — | Net sales | |||||||||
Foreign currency hedge contracts | 0.1 | (2.7 | ) | — | 1.5 | Cost of goods and services sold | ||||||||||||
Interest rate swap contracts | (0.3 | ) | 0.5 | 0.8 | 0.8 | Interest expense | ||||||||||||
Forward treasury locks | — | — | 0.1 | 0.1 | Interest expense | |||||||||||||
Total | $ | (0.2 | ) | $ | (2.0 | ) | $ | 0.9 | $ | 2.4 | ||||||||
Net Investment Hedges: | ||||||||||||||||||
Foreign currency-denominated debt | $ | 0.5 | $ | 1.4 | $ | — | $ | — | Other expense (income) | |||||||||
Total | $ | 0.5 | $ | 1.4 | $ | — | $ | — | ||||||||||
For the three and six months ended June 30, 2014 and 2013, there was no material ineffectiveness related to our hedges. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels: | ||||||||||||||||
• | Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |||||||||||||||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | |||||||||||||||
The following tables present the assets and liabilities recorded at fair value on a recurring basis: | ||||||||||||||||
Balance at | Basis of Fair Value Measurements | |||||||||||||||
($ in millions) | June 30, | Level 1 | Level 2 | Level 3 | ||||||||||||
2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term investments | $ | 8.5 | $ | 8.5 | $ | — | $ | — | ||||||||
Deferred compensation assets | 6.1 | 6.1 | — | — | ||||||||||||
Foreign currency contracts | 0.1 | — | 0.1 | — | ||||||||||||
$ | 14.7 | $ | 14.6 | $ | 0.1 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 4.9 | $ | — | $ | — | $ | 4.9 | ||||||||
Deferred compensation liabilities | 7.7 | 7.7 | — | — | ||||||||||||
Interest rate swap contracts | 4.7 | — | 4.7 | — | ||||||||||||
Foreign currency contracts | 0.1 | — | 0.1 | — | ||||||||||||
$ | 17.4 | $ | 7.7 | $ | 4.8 | $ | 4.9 | |||||||||
Balance at | Basis of Fair Value Measurements | |||||||||||||||
($ in millions) | December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||
2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term investments | $ | 7.5 | $ | 7.5 | $ | — | $ | — | ||||||||
Deferred compensation assets | 5.7 | 5.7 | — | — | ||||||||||||
$ | 13.2 | $ | 13.2 | $ | — | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 4.3 | $ | — | $ | — | $ | 4.3 | ||||||||
Deferred compensation liabilities | 7.8 | 7.8 | — | — | ||||||||||||
Interest rate swap contracts | 5.6 | — | 5.6 | — | ||||||||||||
$ | 17.7 | $ | 7.8 | $ | 5.6 | $ | 4.3 | |||||||||
Short-term investments, which are comprised of certificates of deposit and mutual funds, are included within other current assets and are valued using a market approach based on quoted market prices in an active market. Deferred compensation assets are included within other noncurrent assets and are also valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current assets and other current liabilities, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of our contingent consideration is included within other current liabilities and other long-term liabilities and is discussed further in the section related to Level 3 measurements. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities. Interest rate swap contracts, included within other long-term liabilities, are valued based on the terms of the contract and observable market inputs (i.e., LIBOR, Eurodollar synthetic forwards and swap spreads). Refer to Note 6, Derivative Financial Instruments, for further discussion of our derivatives. | ||||||||||||||||
Level 3 Fair Value Measurements | ||||||||||||||||
The fair value of the contingent consideration liability related to our SmartDoseTM electronic patch injector system (“SmartDose contingent consideration”) was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other expense in our condensed consolidated statements of income. The significant unobservable inputs used in the fair value measurement of the contingent consideration are the sales projections, the probability of success factors, and the discount rate. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. As development and commercialization of SmartDose progresses, we may need to update the sales projections, the probability of success factors, and the discount rate used. This could result in a material increase or decrease to the contingent consideration liability. | ||||||||||||||||
The following table provides a summary of changes in our Level 3 fair value measurements: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Beginning Balance | $ | 4.3 | $ | 3.3 | ||||||||||||
Increase in fair value recorded in earnings | 0.7 | 0.2 | ||||||||||||||
Payments | (0.1 | ) | — | |||||||||||||
Ending Balance | $ | 4.9 | $ | 3.5 | ||||||||||||
Refer to Note 11, Other Expense, for further discussion of our acquisition-related contingency. | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
We believe that the carrying amounts of our cash and cash equivalents, accounts receivable and short-term borrowings approximate their fair values due to their near-term maturities. | ||||||||||||||||
Quoted market prices are used to estimate the fair value of publicly traded long-term debt. The fair value of debt that is not quoted on an exchange is estimated using a discounted cash flow method based on interest rates that are currently available to us for debt issuances with similar terms and maturities. At June 30, 2014, the estimated fair value of long-term debt was $359.2 million compared to a carrying amount of $359.3 million. At December 31, 2013, the estimated fair value of long-term debt was $365.8 million and the carrying amount was $371.3 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2014: | ||||||||||||||||||||
($ in millions) | Losses on | Unrealized gains | Defined benefit | Foreign | Total | |||||||||||||||
cash flow | on investment | pension and other | currency | |||||||||||||||||
hedges | securities | postretirement plans | translation | |||||||||||||||||
Balance, December 31, 2013 | $ | (6.0 | ) | $ | 4.3 | $ | (47.0 | ) | $ | 16.3 | $ | (32.4 | ) | |||||||
Other comprehensive loss before reclassifications | (0.2 | ) | — | (0.4 | ) | (3.3 | ) | (3.9 | ) | |||||||||||
Amounts reclassified out | 0.9 | — | 0.7 | — | 1.6 | |||||||||||||||
Other comprehensive income (loss), net of tax | 0.7 | — | 0.3 | (3.3 | ) | (2.3 | ) | |||||||||||||
Balance, June 30, 2014 | $ | (5.3 | ) | $ | 4.3 | $ | (46.7 | ) | $ | 13 | $ | (34.7 | ) | |||||||
A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
Detail of components | 2014 | 2013 | 2014 | 2013 | Location on Statement of Income | |||||||||||||||
Losses on cash flow hedges: | ||||||||||||||||||||
Foreign currency contracts | $ | — | $ | (1.4 | ) | $ | — | $ | (2.4 | ) | Cost of goods and services sold | |||||||||
Interest rate swap contracts | (0.7 | ) | (0.7 | ) | (1.3 | ) | (1.3 | ) | Interest expense | |||||||||||
Forward treasury locks | — | (0.1 | ) | (0.2 | ) | (0.2 | ) | Interest expense | ||||||||||||
Total before tax | (0.7 | ) | (2.2 | ) | (1.5 | ) | (3.9 | ) | ||||||||||||
Tax expense | 0.3 | 0.8 | 0.6 | 1.5 | ||||||||||||||||
Net of tax | $ | (0.4 | ) | $ | (1.4 | ) | $ | (0.9 | ) | $ | (2.4 | ) | ||||||||
Amortization of defined benefit pension and other postretirement plans: | ||||||||||||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | (0.1 | ) | (a) | ||||||||||
Prior service cost | 0.3 | 0.3 | 0.6 | 0.7 | (a) | |||||||||||||||
Actuarial losses | (0.8 | ) | (2.3 | ) | (1.6 | ) | (4.7 | ) | (a) | |||||||||||
Total before tax | (0.5 | ) | (2.0 | ) | (1.0 | ) | (4.1 | ) | ||||||||||||
Tax expense | 0.2 | 0.7 | 0.3 | 1.5 | ||||||||||||||||
Net of tax | $ | (0.3 | ) | $ | (1.3 | ) | $ | (0.7 | ) | $ | (2.6 | ) | ||||||||
Total reclassifications for the period, net of tax | $ | (0.7 | ) | $ | (2.7 | ) | $ | (1.6 | ) | $ | (5.0 | ) | ||||||||
(a) These components are included in the computation of net periodic benefit cost. Refer to Note 10, Benefit Plans, for additional details. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The 2011 Omnibus Incentive Compensation Plan (the "2011 Plan") provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. The terms and conditions of awards to be granted are determined by our Board's nominating and compensation committees. Vesting requirements vary by award. At June 30, 2014, there were 3,875,996 shares remaining in the 2011 Plan for future grants. | |
During the six months ended June 30, 2014, we granted 597,093 stock options at a weighted average exercise price of $47.26 per share based on the grant-date fair value of our stock to key employees under the 2011 Plan. The weighted average grant date fair value of options granted was $10.35 per share as determined by the Black-Scholes option valuation model using the following weighted average assumptions: a risk-free interest rate of 1.57%; expected life of 6 years based on prior experience; stock volatility of 22.1% based on historical data; and a dividend yield of 0.8%. Stock option expense is recognized over the vesting period, net of forfeitures. | |
In addition, during the six months ended June 30, 2014, we granted 130,486 performance vesting share (“PVS”) awards at a weighted grant-date fair value of $47.27 per share to key employees under the 2011 Plan. Each PVS award entitles the holder to one share of our common stock if the annual growth rate of revenue and return on invested capital targets are achieved over a three-year performance period. The actual payout may vary from 0% to 200% of an employee’s targeted award. The fair value of PVS awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures. | |
Total stock-based compensation expense was $4.6 million and $8.9 million for the three and six months ended June 30, 2014, respectively. For the three and six months ended June 30, 2013, total stock-based compensation expense was $5.0 million and $10.4 million, respectively. |
Benefit_Plans
Benefit Plans | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' | |||||||||||||||||||||||
Benefit Plans | ' | |||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||
The components of net periodic benefit cost for the three months ended June 30 were as follows ($ in millions): | ||||||||||||||||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 2.5 | $ | 2.5 | $ | 0.1 | $ | 0.3 | $ | 2.6 | $ | 2.8 | ||||||||||||
Interest cost | 4.3 | 3.7 | 0.1 | 0.3 | 4.4 | 4 | ||||||||||||||||||
Expected return on assets | (4.8 | ) | (4.3 | ) | — | — | (4.8 | ) | (4.3 | ) | ||||||||||||||
Amortization of prior service credit | (0.3 | ) | (0.3 | ) | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||
Recognized actuarial losses (gains) | 1.1 | 2.3 | (0.3 | ) | — | 0.8 | 2.3 | |||||||||||||||||
Net periodic benefit cost | $ | 2.8 | $ | 3.9 | $ | (0.1 | ) | $ | 0.6 | $ | 2.7 | $ | 4.5 | |||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
U.S. plans | $ | 2 | $ | 3.1 | $ | (0.1 | ) | $ | 0.6 | $ | 1.9 | $ | 3.7 | |||||||||||
International plans | 0.8 | 0.8 | — | — | 0.8 | 0.8 | ||||||||||||||||||
Net periodic benefit cost | $ | 2.8 | $ | 3.9 | $ | (0.1 | ) | $ | 0.6 | $ | 2.7 | $ | 4.5 | |||||||||||
The components of net periodic benefit cost for the six months ended June 30 were as follows ($ in millions): | ||||||||||||||||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 5.1 | $ | 5 | $ | 0.2 | $ | 0.7 | $ | 5.3 | $ | 5.7 | ||||||||||||
Interest cost | 8.5 | 7.4 | 0.2 | 0.5 | 8.7 | 7.9 | ||||||||||||||||||
Expected return on assets | (9.7 | ) | (8.6 | ) | — | — | (9.7 | ) | (8.6 | ) | ||||||||||||||
Amortization of transition obligation | — | 0.1 | — | — | — | 0.1 | ||||||||||||||||||
Amortization of prior service credit | (0.6 | ) | (0.7 | ) | — | — | (0.6 | ) | (0.7 | ) | ||||||||||||||
Recognized actuarial losses (gains) | 2.3 | 4.7 | (0.7 | ) | — | 1.6 | 4.7 | |||||||||||||||||
Net periodic benefit cost | $ | 5.6 | $ | 7.9 | $ | (0.3 | ) | $ | 1.2 | $ | 5.3 | $ | 9.1 | |||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
U.S. plans | $ | 4.1 | $ | 6.3 | $ | (0.3 | ) | $ | 1.2 | $ | 3.8 | $ | 7.5 | |||||||||||
International plans | 1.5 | 1.6 | — | — | 1.5 | 1.6 | ||||||||||||||||||
Net periodic benefit cost | $ | 5.6 | $ | 7.9 | $ | (0.3 | ) | $ | 1.2 | $ | 5.3 | $ | 9.1 | |||||||||||
Other_Expense_Income
Other Expense (Income) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Expense (Income) | ' | |||||||||||||||
Other expense (income) consists of: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Development income | $ | (0.5 | ) | $ | (0.5 | ) | $ | (0.9 | ) | $ | (0.8 | ) | ||||
Acquisition-related contingencies | 0.3 | 0.2 | 0.7 | 0.2 | ||||||||||||
Foreign exchange and other | 0.5 | (0.5 | ) | 1.2 | — | |||||||||||
$ | 0.3 | $ | (0.8 | ) | $ | 1 | $ | (0.6 | ) | |||||||
During the three and six months ended June 30, 2014, we recognized development income of $0.5 million and $0.9 million, respectively, within our Pharmaceutical Delivery Systems segment ("Delivery Systems"), most of which related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of SmartDose within a specific therapeutic area. As of June 30, 2014, there was $18.2 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $16.7 million was included in other long-term liabilities. The unearned income is being recognized as development income on a straight-line basis over the remaining term of the agreement. The agreement does not include a future minimum purchase commitment from the customer. During the three and six months ended June 30, 2013, we recorded development income of $0.5 million and $0.8 million, respectively, within Delivery Systems, of which $0.3 million related to the nonrefundable customer payment described above. | ||||||||||||||||
During the three months ended June 30, 2014, the SmartDose contingent consideration increased by $0.3 million due to the time value of money. During the six months ended June 30, 2014, we increased the SmartDose contingent consideration by $0.7 million due to the time value of money and changes made to sales projections during the first quarter of 2014. The change in the SmartDose contingent consideration during both the three and six months ended June 30, 2013 was $0.2 million due to the time value of money and adjustments related to changes in sales projections. These adjustments are included within Delivery Systems' results. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. For both the three and six months ended June 30, 2014, our effective tax rate was 27.7%, compared with 26.5% and 24.2% for the same periods in 2013. The increase in the second-quarter effective tax rate primarily reflects the absence of the Research and Development ("R&D") tax credit in 2014 and changes in our geographic mix of earnings. The R&D tax credit was retroactively reinstated in January 2013 for two years, from January 1, 2012 through December 31, 2013, as a result of the enactment of the American Taxpayer Relief Act of 2012 (the "Taxpayer Relief Act"). The year-to-date effective tax rate increased due to the items mentioned above, as well as the impact of the $1.3 million discrete tax benefit recorded during the six months ended June 30, 2013 related to the R&D tax credit for activities completed in 2012. In accordance with U.S. GAAP, although the Taxpayer Relief Act reinstated the tax credit on a retroactive basis to January 1, 2012, the credit was not taken into account for financial reporting purposes until 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
From time to time, we are involved in product liability matters and other legal proceedings and claims generally incidental to our normal business activities. We accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. While the outcome of current proceedings cannot be accurately predicted, we believe their ultimate resolution should not have a material adverse effect on our business, financial condition, results of operations or liquidity. | |
There have been no significant changes to the commitments and contingencies included in our 2013 Annual Report. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
Our business operations are organized into two reportable segments, which are aligned with the underlying markets and customers they serve. Our reportable segments are the Pharmaceutical Packaging Systems segment (“Packaging Systems”) and Delivery Systems. Packaging Systems develops, manufactures and sells primary packaging components and systems for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Delivery Systems develops, manufactures and sells safety and administration systems, multi-component systems for drug administration, and a variety of custom contract-manufacturing solutions targeted to the healthcare and consumer-products industries. In addition, Delivery Systems is responsible for the continued development and commercialization of our line of proprietary, multi-component systems for injectable drug administration and other healthcare applications. | ||||||||||||||||
Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. | ||||||||||||||||
The following table presents information about our reportable segments, reconciled to consolidated totals: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales: | ||||||||||||||||
Packaging Systems | $ | 268 | $ | 251.5 | $ | 520.9 | $ | 503 | ||||||||
Delivery Systems | 101.1 | 93.3 | 195.1 | 181.5 | ||||||||||||
Intersegment sales | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||||
Total net sales | $ | 368.9 | $ | 344.5 | $ | 715.7 | $ | 683.9 | ||||||||
Operating profit: | ||||||||||||||||
Packaging Systems | $ | 62.9 | $ | 56.8 | $ | 114.3 | $ | 115.5 | ||||||||
Delivery Systems | 3.7 | 2.3 | 3.5 | 3.5 | ||||||||||||
Corporate | (12.5 | ) | (16.6 | ) | (24.4 | ) | (33.1 | ) | ||||||||
Total operating profit | $ | 54.1 | $ | 42.5 | $ | 93.4 | $ | 85.9 | ||||||||
Loss on debt extinguishment | — | — | — | 0.2 | ||||||||||||
Interest expense | 4.2 | 4.1 | 8.2 | 8.7 | ||||||||||||
Interest income | 0.5 | 0.4 | 0.9 | 1 | ||||||||||||
Income before income taxes | $ | 50.4 | $ | 38.8 | $ | 86.1 | $ | 78 | ||||||||
The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and six months ended June 30, 2014 should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. (which may be referred to as “West”, “the Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year. | |
Stock Split | ' |
Stock Split: On August 1, 2013, our Board of Directors approved a two-for-one stock split of our outstanding shares of common stock, effected in the form of a stock dividend. The record date for the stock split was September 12, 2013, and the share distribution occurred on September 26, 2013. All share and per share amounts presented in the accompanying condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the impact of this stock split. | |
New Accounting Standards | ' |
Recently Adopted Standards | |
In July 2013, the FASB issued revised guidance to address the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. We adopted this guidance as of January 1, 2014, on a prospective basis. The adoption did not have a material impact on our financial statements. | |
In March 2013, the FASB issued guidance that clarifies the application of U.S. GAAP to the release of cumulative translation adjustments related to changes of ownership in or within foreign entities, including step acquisitions. This guidance, which we adopted as of January 1, 2014, will be applied prospectively if and when changes of ownership related to foreign entities occur. | |
Standards Issued Not Yet Adopted | |
In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management is currently reviewing this guidance to determine the impact it may have, if any, on our financial statements. | |
In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on our financial statements, if any, including which transition method it will adopt. | |
In April 2014, the FASB issued guidance for the reporting of discontinued operations, which also contains new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management believes that the adoption of this guidance will not have a material impact on our financial statements. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of Basic to Diluted Net Income Per Share | ' | |||||||||||||||
The following table reconciles net income and shares used in the calculation of basic net income per share to those used for diluted net income per share: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 37.6 | $ | 30.2 | $ | 64.7 | $ | 61.9 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 70.8 | 69.5 | 70.7 | 69.2 | ||||||||||||
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method | 1.6 | 1.3 | 1.7 | 1.3 | ||||||||||||
Assumed conversion of convertible debt, based on the if-converted method | — | — | — | 0.1 | ||||||||||||
Weighted average shares assuming dilution | 72.4 | 70.8 | 72.4 | 70.6 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories are valued at the lower of cost (on a first-in, first-out basis) or market. Inventory balances were as follows: | ||||||||
($ in millions) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Finished goods | $ | 80.5 | $ | 80 | ||||
Work in process | 31 | 24.8 | ||||||
Raw materials | 76.4 | 72.1 | ||||||
$ | 187.9 | $ | 176.9 | |||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt Obligations, Net of Current Maturities | ' | |||||||
The following table summarizes our long-term debt obligations, net of current maturities: | ||||||||
($ in millions) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Term loan, due 2014 | $ | — | $ | 0.1 | ||||
Series B floating rate notes, due 2015 | 25 | 25 | ||||||
Euro note B, due 2016 | 83.4 | 84.1 | ||||||
Capital leases, due through 2016 | 0.3 | 0.4 | ||||||
Revolving credit facility, due 2017 | 43.6 | 53.7 | ||||||
Term loan, due 2018 | 40.3 | 41.3 | ||||||
Note payable, due 2019 | 0.3 | 0.3 | ||||||
Series A notes, due 2022 | 42 | 42 | ||||||
Series B notes, due 2024 | 53 | 53 | ||||||
Series C notes, due 2027 | 73 | 73 | ||||||
Convertible debt, due 2047 | 0.6 | 0.6 | ||||||
361.5 | 373.5 | |||||||
Less: current portion of long-term debt | 2.2 | 2.2 | ||||||
$ | 359.3 | $ | 371.3 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings | ' | |||||||||||||||||
The following table summarizes the effects of derivative instruments designated as hedges on other comprehensive income (“OCI”) and earnings, net of tax: | ||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI for | Amount of Loss Reclassified from Accumulated OCI into Income for | Location of Loss Reclassified from Accumulated OCI into Income | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Foreign currency hedge contracts | $ | 0.1 | $ | (0.1 | ) | $ | — | $ | — | Net sales | ||||||||
Foreign currency hedge contracts | 0.2 | (1.0 | ) | — | 0.9 | Cost of goods and services sold | ||||||||||||
Interest rate swap contracts | (0.2 | ) | 0.4 | 0.4 | 0.4 | Interest expense | ||||||||||||
Forward treasury locks | — | — | — | 0.1 | Interest expense | |||||||||||||
Total | $ | 0.1 | $ | (0.7 | ) | $ | 0.4 | $ | 1.4 | |||||||||
Net Investment Hedges: | ||||||||||||||||||
Foreign currency-denominated debt | $ | 0.5 | $ | (1.0 | ) | $ | — | $ | — | Other expense (income) | ||||||||
Total | $ | 0.5 | $ | (1.0 | ) | $ | — | $ | — | |||||||||
Amount of Gain (Loss) Recognized in OCI for | Amount of Loss Reclassified from Accumulated OCI into Income for | Location of Loss Reclassified from Accumulated OCI into Income | ||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 0.2 | $ | — | $ | — | Net sales | |||||||||
Foreign currency hedge contracts | 0.1 | (2.7 | ) | — | 1.5 | Cost of goods and services sold | ||||||||||||
Interest rate swap contracts | (0.3 | ) | 0.5 | 0.8 | 0.8 | Interest expense | ||||||||||||
Forward treasury locks | — | — | 0.1 | 0.1 | Interest expense | |||||||||||||
Total | $ | (0.2 | ) | $ | (2.0 | ) | $ | 0.9 | $ | 2.4 | ||||||||
Net Investment Hedges: | ||||||||||||||||||
Foreign currency-denominated debt | $ | 0.5 | $ | 1.4 | $ | — | $ | — | Other expense (income) | |||||||||
Total | $ | 0.5 | $ | 1.4 | $ | — | $ | — | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value | ' | |||||||||||||||
The following tables present the assets and liabilities recorded at fair value on a recurring basis: | ||||||||||||||||
Balance at | Basis of Fair Value Measurements | |||||||||||||||
($ in millions) | June 30, | Level 1 | Level 2 | Level 3 | ||||||||||||
2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term investments | $ | 8.5 | $ | 8.5 | $ | — | $ | — | ||||||||
Deferred compensation assets | 6.1 | 6.1 | — | — | ||||||||||||
Foreign currency contracts | 0.1 | — | 0.1 | — | ||||||||||||
$ | 14.7 | $ | 14.6 | $ | 0.1 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 4.9 | $ | — | $ | — | $ | 4.9 | ||||||||
Deferred compensation liabilities | 7.7 | 7.7 | — | — | ||||||||||||
Interest rate swap contracts | 4.7 | — | 4.7 | — | ||||||||||||
Foreign currency contracts | 0.1 | — | 0.1 | — | ||||||||||||
$ | 17.4 | $ | 7.7 | $ | 4.8 | $ | 4.9 | |||||||||
Balance at | Basis of Fair Value Measurements | |||||||||||||||
($ in millions) | December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||
2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term investments | $ | 7.5 | $ | 7.5 | $ | — | $ | — | ||||||||
Deferred compensation assets | 5.7 | 5.7 | — | — | ||||||||||||
$ | 13.2 | $ | 13.2 | $ | — | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 4.3 | $ | — | $ | — | $ | 4.3 | ||||||||
Deferred compensation liabilities | 7.8 | 7.8 | — | — | ||||||||||||
Interest rate swap contracts | 5.6 | — | 5.6 | — | ||||||||||||
$ | 17.7 | $ | 7.8 | $ | 5.6 | $ | 4.3 | |||||||||
Summary of Changes in Level 3 Fair Value Measurements | ' | |||||||||||||||
The following table provides a summary of changes in our Level 3 fair value measurements: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Beginning Balance | $ | 4.3 | $ | 3.3 | ||||||||||||
Increase in fair value recorded in earnings | 0.7 | 0.2 | ||||||||||||||
Payments | (0.1 | ) | — | |||||||||||||
Ending Balance | $ | 4.9 | $ | 3.5 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2014: | ||||||||||||||||||||
($ in millions) | Losses on | Unrealized gains | Defined benefit | Foreign | Total | |||||||||||||||
cash flow | on investment | pension and other | currency | |||||||||||||||||
hedges | securities | postretirement plans | translation | |||||||||||||||||
Balance, December 31, 2013 | $ | (6.0 | ) | $ | 4.3 | $ | (47.0 | ) | $ | 16.3 | $ | (32.4 | ) | |||||||
Other comprehensive loss before reclassifications | (0.2 | ) | — | (0.4 | ) | (3.3 | ) | (3.9 | ) | |||||||||||
Amounts reclassified out | 0.9 | — | 0.7 | — | 1.6 | |||||||||||||||
Other comprehensive income (loss), net of tax | 0.7 | — | 0.3 | (3.3 | ) | (2.3 | ) | |||||||||||||
Balance, June 30, 2014 | $ | (5.3 | ) | $ | 4.3 | $ | (46.7 | ) | $ | 13 | $ | (34.7 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
Detail of components | 2014 | 2013 | 2014 | 2013 | Location on Statement of Income | |||||||||||||||
Losses on cash flow hedges: | ||||||||||||||||||||
Foreign currency contracts | $ | — | $ | (1.4 | ) | $ | — | $ | (2.4 | ) | Cost of goods and services sold | |||||||||
Interest rate swap contracts | (0.7 | ) | (0.7 | ) | (1.3 | ) | (1.3 | ) | Interest expense | |||||||||||
Forward treasury locks | — | (0.1 | ) | (0.2 | ) | (0.2 | ) | Interest expense | ||||||||||||
Total before tax | (0.7 | ) | (2.2 | ) | (1.5 | ) | (3.9 | ) | ||||||||||||
Tax expense | 0.3 | 0.8 | 0.6 | 1.5 | ||||||||||||||||
Net of tax | $ | (0.4 | ) | $ | (1.4 | ) | $ | (0.9 | ) | $ | (2.4 | ) | ||||||||
Amortization of defined benefit pension and other postretirement plans: | ||||||||||||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | (0.1 | ) | (a) | ||||||||||
Prior service cost | 0.3 | 0.3 | 0.6 | 0.7 | (a) | |||||||||||||||
Actuarial losses | (0.8 | ) | (2.3 | ) | (1.6 | ) | (4.7 | ) | (a) | |||||||||||
Total before tax | (0.5 | ) | (2.0 | ) | (1.0 | ) | (4.1 | ) | ||||||||||||
Tax expense | 0.2 | 0.7 | 0.3 | 1.5 | ||||||||||||||||
Net of tax | $ | (0.3 | ) | $ | (1.3 | ) | $ | (0.7 | ) | $ | (2.6 | ) | ||||||||
Total reclassifications for the period, net of tax | $ | (0.7 | ) | $ | (2.7 | ) | $ | (1.6 | ) | $ | (5.0 | ) | ||||||||
(a) These components are included in the computation of net periodic benefit cost. Refer to Note 10, Benefit Plans, for additional details. |
Benefit_Plans_Tables
Benefit Plans (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' | |||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
The components of net periodic benefit cost for the three months ended June 30 were as follows ($ in millions): | ||||||||||||||||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 2.5 | $ | 2.5 | $ | 0.1 | $ | 0.3 | $ | 2.6 | $ | 2.8 | ||||||||||||
Interest cost | 4.3 | 3.7 | 0.1 | 0.3 | 4.4 | 4 | ||||||||||||||||||
Expected return on assets | (4.8 | ) | (4.3 | ) | — | — | (4.8 | ) | (4.3 | ) | ||||||||||||||
Amortization of prior service credit | (0.3 | ) | (0.3 | ) | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||
Recognized actuarial losses (gains) | 1.1 | 2.3 | (0.3 | ) | — | 0.8 | 2.3 | |||||||||||||||||
Net periodic benefit cost | $ | 2.8 | $ | 3.9 | $ | (0.1 | ) | $ | 0.6 | $ | 2.7 | $ | 4.5 | |||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
U.S. plans | $ | 2 | $ | 3.1 | $ | (0.1 | ) | $ | 0.6 | $ | 1.9 | $ | 3.7 | |||||||||||
International plans | 0.8 | 0.8 | — | — | 0.8 | 0.8 | ||||||||||||||||||
Net periodic benefit cost | $ | 2.8 | $ | 3.9 | $ | (0.1 | ) | $ | 0.6 | $ | 2.7 | $ | 4.5 | |||||||||||
The components of net periodic benefit cost for the six months ended June 30 were as follows ($ in millions): | ||||||||||||||||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 5.1 | $ | 5 | $ | 0.2 | $ | 0.7 | $ | 5.3 | $ | 5.7 | ||||||||||||
Interest cost | 8.5 | 7.4 | 0.2 | 0.5 | 8.7 | 7.9 | ||||||||||||||||||
Expected return on assets | (9.7 | ) | (8.6 | ) | — | — | (9.7 | ) | (8.6 | ) | ||||||||||||||
Amortization of transition obligation | — | 0.1 | — | — | — | 0.1 | ||||||||||||||||||
Amortization of prior service credit | (0.6 | ) | (0.7 | ) | — | — | (0.6 | ) | (0.7 | ) | ||||||||||||||
Recognized actuarial losses (gains) | 2.3 | 4.7 | (0.7 | ) | — | 1.6 | 4.7 | |||||||||||||||||
Net periodic benefit cost | $ | 5.6 | $ | 7.9 | $ | (0.3 | ) | $ | 1.2 | $ | 5.3 | $ | 9.1 | |||||||||||
Pension benefits | Other retirement benefits | Total | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
U.S. plans | $ | 4.1 | $ | 6.3 | $ | (0.3 | ) | $ | 1.2 | $ | 3.8 | $ | 7.5 | |||||||||||
International plans | 1.5 | 1.6 | — | — | 1.5 | 1.6 | ||||||||||||||||||
Net periodic benefit cost | $ | 5.6 | $ | 7.9 | $ | (0.3 | ) | $ | 1.2 | $ | 5.3 | $ | 9.1 | |||||||||||
Other_Expense_Income_Tables
Other Expense (Income) (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Schedule of Other Expense (Income) | ' | |||||||||||||||
Other expense (income) consists of: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Development income | $ | (0.5 | ) | $ | (0.5 | ) | $ | (0.9 | ) | $ | (0.8 | ) | ||||
Acquisition-related contingencies | 0.3 | 0.2 | 0.7 | 0.2 | ||||||||||||
Foreign exchange and other | 0.5 | (0.5 | ) | 1.2 | — | |||||||||||
$ | 0.3 | $ | (0.8 | ) | $ | 1 | $ | (0.6 | ) | |||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
The following table presents information about our reportable segments, reconciled to consolidated totals: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales: | ||||||||||||||||
Packaging Systems | $ | 268 | $ | 251.5 | $ | 520.9 | $ | 503 | ||||||||
Delivery Systems | 101.1 | 93.3 | 195.1 | 181.5 | ||||||||||||
Intersegment sales | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||||
Total net sales | $ | 368.9 | $ | 344.5 | $ | 715.7 | $ | 683.9 | ||||||||
Operating profit: | ||||||||||||||||
Packaging Systems | $ | 62.9 | $ | 56.8 | $ | 114.3 | $ | 115.5 | ||||||||
Delivery Systems | 3.7 | 2.3 | 3.5 | 3.5 | ||||||||||||
Corporate | (12.5 | ) | (16.6 | ) | (24.4 | ) | (33.1 | ) | ||||||||
Total operating profit | $ | 54.1 | $ | 42.5 | $ | 93.4 | $ | 85.9 | ||||||||
Loss on debt extinguishment | — | — | — | 0.2 | ||||||||||||
Interest expense | 4.2 | 4.1 | 8.2 | 8.7 | ||||||||||||
Interest income | 0.5 | 0.4 | 0.9 | 1 | ||||||||||||
Income before income taxes | $ | 50.4 | $ | 38.8 | $ | 86.1 | $ | 78 | ||||||||
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $37.60 | $30.20 | $64.70 | $61.90 |
Weighted average common shares outstanding (in shares) | 70.8 | 69.5 | 70.7 | 69.2 |
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method (in shares) | 1.6 | 1.3 | 1.7 | 1.3 |
Assumed conversion of convertible debt, based on the if-converted method (in shares) | 0 | 0 | 0 | 0.1 |
Weighted average shares assuming dilution (in shares) | 72.4 | 70.8 | 72.4 | 70.6 |
Antidilutive options excluded from computation of diluted net income per share (in shares) | 0.6 | 0.9 | 0.4 | 0.6 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $80.50 | $80 |
Work in process | 31 | 24.8 |
Raw materials | 76.4 | 72.1 |
Total inventories | $187.90 | $176.90 |
Debt_Details
Debt (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $361.50 | $373.50 |
Notes payable and other current debt | 2.2 | 2.2 |
Long-term debt, excluding current portion | 359.3 | 371.3 |
Term Loan Due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 0 | 0.1 |
Series B Floating Rate Notes Due 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 25 | 25 |
Euro Note B Due 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 83.4 | 84.1 |
Capital leases, due through 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Capital leases | 0.3 | 0.4 |
Revolving credit facility, due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 43.6 | 53.7 |
Line of credit facility outstanding borrowings, Yen | 4.9 | ' |
Line of credit facility outstanding borrowings, Euro | 28.7 | ' |
Term Loan Due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 40.3 | 41.3 |
Current portion of long-term debt | 2.1 | ' |
Debt Instrument Term | '5 years 0 months 0 days | ' |
Notes Payable due 2019 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 0.3 | 0.3 |
Series A Notes, Due 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 42 | 42 |
Series B Notes, Due 2024 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 53 | 53 |
Series C Notes, Due 2027 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 73 | 73 |
Convertible Debt Due 2047 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $0.60 | $0.60 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | 6 Months Ended | 6 Months Ended | |||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Forward-Start Interest Rate Swap [Member] | Interest Rate Swap, Series B Note [Member] | Foreign Currency Hedge, Euro-Denominated Sales [Member] | Foreign Currency Hedge, Yen-denominated Inventory Purchases | Foreign Currency Hedge, Yen-denominated Inventory Purchases | Foreign Currency Hedge, USD-denominated Inventory Purchases | Euro-Denominated Revolver [Member] | Euro-Denominated Revolver [Member] | Yen-Denominated Revolver [Member] | Yen-Denominated Revolver [Member] | Euro Note B [Member] | Euro Note B [Member] | Euro-Denominated Debt [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | EUR (€) | USD ($) | JPY (¥) | USD ($) | EUR (€) | USD ($) | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | $25 | $1.50 | $0.90 | ¥ 95 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of hedged item | 40.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum term (in years) | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate | 5.41% | 5.51% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of debt | ' | 28-Jul-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | 'one-month London Interbank Offering Rates (bLIBORb) | 'three-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of monthly contracts remaining | ' | ' | 6 | 6 | 6 | 6 | ' | ' | ' | ' | ' | ' | ' |
Monthly notional amount, minimum | ' | ' | ' | ' | ' | 1.4 | ' | ' | ' | ' | ' | ' | ' |
Monthly notional amount, maximum | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Aggregate notional amount of remaining contracts | ' | ' | 9 | 5.5 | 570 | 14.1 | ' | ' | ' | ' | ' | ' | ' |
Notional amount, nonderivative instruments | ' | ' | ' | ' | ' | ' | 28.7 | 21 | 4.9 | 500 | 83.4 | 61.1 | ' |
Cumulative foreign currency translation loss (gain) | ' | ' | ' | ' | ' | ' | ' | ' | -0.5 | ' | ' | ' | 4.7 |
Cumulative foreign currency translation loss (gain), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ($0.30) | ' | ' | ' | $2.90 |
Effects_of_Derivative_Instrume
Effects of Derivative Instruments on OCI and Earnings (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | $0.10 | ($0.70) | ($0.20) | ($2) |
Amount of Loss Reclassified from Accumulated OCI into Income | 0.4 | 1.4 | 0.9 | 2.4 |
Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | 0.5 | -1 | 0.5 | 1.4 |
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | 0 | 0 | 0 |
Foreign Currency Hedge Contracts [Member] | Net Sales [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | 0.1 | -0.1 | 0 | 0.2 |
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | 0 | 0 | 0 |
Foreign Currency Hedge Contracts [Member] | Cost of Goods and Services Sold [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | 0.2 | -1 | 0.1 | -2.7 |
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | 0.9 | 0 | 1.5 |
Interest Rate Swap Contracts [Member] | Interest Expense [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | -0.2 | 0.4 | -0.3 | 0.5 |
Amount of Loss Reclassified from Accumulated OCI into Income | 0.4 | 0.4 | 0.8 | 0.8 |
Forward Treasury Locks [Member] | Interest Expense [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | 0 | 0 | 0 | 0 |
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | 0.1 | 0.1 | 0.1 |
Foreign Currency - Denominated Debt [Member] | Other Expense (Income) [Member] | Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI | 0.5 | -1 | 0.5 | 1.4 |
Amount of Loss Reclassified from Accumulated OCI into Income | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Short-term investments | $8.50 | $7.50 |
Deferred compensation assets | 6.1 | 5.7 |
Foreign currency contracts | 0.1 | ' |
Total assets at fair value | 14.7 | 13.2 |
Liabilities: | ' | ' |
Contingent consideration | 4.9 | 4.3 |
Deferred compensation liabilities | 7.7 | 7.8 |
Interest rate swap contracts | 4.7 | 5.6 |
Foreign currency contracts | 0.1 | ' |
Total liabilities at fair value | 17.4 | 17.7 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Short-term investments | 8.5 | 7.5 |
Deferred compensation assets | 6.1 | 5.7 |
Total assets at fair value | 14.6 | 13.2 |
Liabilities: | ' | ' |
Deferred compensation liabilities | 7.7 | 7.8 |
Total liabilities at fair value | 7.7 | 7.8 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Foreign currency contracts | 0.1 | ' |
Total assets at fair value | 0.1 | ' |
Liabilities: | ' | ' |
Interest rate swap contracts | 4.7 | 5.6 |
Foreign currency contracts | 0.1 | ' |
Total liabilities at fair value | 4.8 | 5.6 |
Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Contingent consideration | 4.9 | 4.3 |
Total liabilities at fair value | $4.90 | $4.30 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Level 3 Fair Value Measurements [Roll Forward] | ' | ' |
Balance, beginning of period | $4.30 | $3.30 |
Increase in fair value recorded in earnings | 0.7 | 0.2 |
Payments | -0.1 | ' |
Balance, end of period | $4.90 | $3.50 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Financial Instruments [Abstract] | ' | ' |
Long-term debt, fair value | $359.20 | $365.80 |
Long-term debt | $359.30 | $371.30 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | ' | ' | ($32.40) | ' |
Other comprehensive loss before reclassifications | ' | ' | -3.9 | ' |
Amounts reclassified out | ' | ' | 1.6 | ' |
Other comprehensive (loss) income, net of tax | -0.9 | 1 | -2.3 | -15.5 |
Balance, ending | -34.7 | ' | -34.7 | ' |
Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | ' | ' | -6 | ' |
Other comprehensive loss before reclassifications | ' | ' | -0.2 | ' |
Amounts reclassified out | ' | ' | 0.9 | ' |
Other comprehensive (loss) income, net of tax | ' | ' | 0.7 | ' |
Balance, ending | -5.3 | ' | -5.3 | ' |
Unrealized Gains on Investment Securities [Member] | ' | ' | ' | ' |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | ' | ' | 4.3 | ' |
Other comprehensive loss before reclassifications | ' | ' | 0 | ' |
Amounts reclassified out | ' | ' | 0 | ' |
Other comprehensive (loss) income, net of tax | ' | ' | 0 | ' |
Balance, ending | 4.3 | ' | 4.3 | ' |
Defined Benefit Pension and Other Postretirement Plans [Member] | ' | ' | ' | ' |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | ' | ' | -47 | ' |
Other comprehensive loss before reclassifications | ' | ' | -0.4 | ' |
Amounts reclassified out | ' | ' | 0.7 | ' |
Other comprehensive (loss) income, net of tax | ' | ' | 0.3 | ' |
Balance, ending | -46.7 | ' | -46.7 | ' |
Foreign Currency Translation [Member] | ' | ' | ' | ' |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | ' | ' | 16.3 | ' |
Other comprehensive loss before reclassifications | ' | ' | -3.3 | ' |
Amounts reclassified out | ' | ' | 0 | ' |
Other comprehensive (loss) income, net of tax | ' | ' | -3.3 | ' |
Balance, ending | $13 | ' | $13 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Cost of goods and services sold | $247.10 | $233.60 | $487.50 | $461.30 | ||||
Interest expense | 4.2 | 4.1 | 8.2 | 8.7 | ||||
Transition Obligation | ' | ' | 0 | 0.1 | ||||
Prior service cost | 0.3 | 0.3 | 0.6 | 0.7 | ||||
Actuarial losses | -0.8 | -2.3 | -1.6 | -4.7 | ||||
Income before income taxes | 50.4 | 38.8 | 86.1 | 78 | ||||
Tax expense | -14 | -10.3 | -23.8 | -18.9 | ||||
Net income | 37.6 | 30.2 | 64.7 | 61.9 | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Net income | -0.7 | -2.7 | -1.6 | -5 | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Income before income taxes | -0.7 | -2.2 | -1.5 | -3.9 | ||||
Tax expense | 0.3 | 0.8 | 0.6 | 1.5 | ||||
Net income | -0.4 | -1.4 | -0.9 | -2.4 | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of Defined Benefit Pension and Other Postretirement Plans [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Transition Obligation | 0 | [1] | 0 | [1] | 0 | [1] | -0.1 | [1] |
Prior service cost | 0.3 | [1] | 0.3 | [1] | 0.6 | [1] | 0.7 | [1] |
Actuarial losses | -0.8 | [1] | -2.3 | [1] | -1.6 | [1] | -4.7 | [1] |
Income before income taxes | -0.5 | -2 | -1 | -4.1 | ||||
Tax expense | 0.2 | 0.7 | 0.3 | 1.5 | ||||
Net income | -0.3 | -1.3 | -0.7 | -2.6 | ||||
Foreign Currency Contract [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Cost of goods and services sold | 0 | -1.4 | 0 | -2.4 | ||||
Interest Rate Swap Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Interest expense | -0.7 | -0.7 | -1.3 | -1.3 | ||||
Forward Treasury Locks [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ' | ' | ' | ' | ||||
Interest expense | $0 | ($0.10) | ($0.20) | ($0.20) | ||||
[1] | These components are included in the computation of net periodic benefit cost. Refer to Note 10, Benefit Plans, for additional details. |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Shares available for issuance under the 2011 Plan (in shares) | 3,875,996 | ' | 3,875,996 | ' |
Stock options, granted (in shares) | ' | ' | 597,093 | ' |
Stock options, weighted average exercise price (in dollars per share) | ' | ' | $47.26 | ' |
Stock options, weighted average grant date fair value (in dollars per share) | ' | ' | $10.35 | ' |
Assumptions used in Black-Scholes model | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | ' | ' | 1.57% | ' |
Expected life (in years) | ' | ' | '6 years 0 months 0 days | ' |
Stock volatility (in hundredths) | ' | ' | 22.10% | ' |
Dividend yield (in hundredths) | ' | ' | 0.80% | ' |
Granted, PVS awards (in shares) | ' | ' | 130,486 | ' |
Grant date fair value, PVS awards (in dollars per share) | ' | ' | $47.27 | ' |
Number of shares of common stock per PVS award (in shares) | 1 | ' | 1 | ' |
Performance period | ' | ' | '3 years | ' |
PVS payout, Minimum (in hundredths) | 0.00% | ' | 0.00% | ' |
PVS payout, Maximum (in hundredths) | 200.00% | ' | 200.00% | ' |
Stock-based compensation expense | $4.60 | $5 | $8.90 | $10.40 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Service cost | $2.60 | $2.80 | $5.30 | $5.70 |
Interest cost | 4.4 | 4 | 8.7 | 7.9 |
Expected return on assets | -4.8 | -4.3 | -9.7 | -8.6 |
Amortization of transition obligation | ' | ' | 0 | 0.1 |
Amortization of prior service credit | -0.3 | -0.3 | -0.6 | -0.7 |
Recognized actuarial losses (gains) | 0.8 | 2.3 | 1.6 | 4.7 |
Net periodic benefit cost | 2.7 | 4.5 | 5.3 | 9.1 |
Pension Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Service cost | 2.5 | 2.5 | 5.1 | 5 |
Interest cost | 4.3 | 3.7 | 8.5 | 7.4 |
Expected return on assets | -4.8 | -4.3 | -9.7 | -8.6 |
Amortization of transition obligation | ' | ' | 0 | 0.1 |
Amortization of prior service credit | -0.3 | -0.3 | -0.6 | -0.7 |
Recognized actuarial losses (gains) | 1.1 | 2.3 | 2.3 | 4.7 |
Net periodic benefit cost | 2.8 | 3.9 | 5.6 | 7.9 |
Other Retirement Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Service cost | 0.1 | 0.3 | 0.2 | 0.7 |
Interest cost | 0.1 | 0.3 | 0.2 | 0.5 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of transition obligation | ' | ' | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Recognized actuarial losses (gains) | -0.3 | 0 | -0.7 | 0 |
Net periodic benefit cost | -0.1 | 0.6 | -0.3 | 1.2 |
U.S. Pension Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | 2 | 3.1 | 4.1 | 6.3 |
International Pension Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | 0.8 | 0.8 | 1.5 | 1.6 |
U.S. Other Retirement Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | -0.1 | 0.6 | -0.3 | 1.2 |
International Other Retirement Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | 0 | 0 | 0 | 0 |
U.S. Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | 1.9 | 3.7 | 3.8 | 7.5 |
International Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Net periodic benefit cost | $0.80 | $0.80 | $1.50 | $1.60 |
Other_Expense_Income_Details
Other Expense (Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Development Income | ($0.50) | ($0.50) | ($0.90) | ($0.80) |
Acquisition-related contingencies | 0.3 | 0.2 | 0.7 | 0.2 |
Foreign exchange and other | 0.5 | -0.5 | 1.2 | 0 |
Other expense (income) | $0.30 | ($0.80) | $1 | ($0.60) |
Other_Expense_Income_Details_1
Other Expense (Income) (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Increase in SmartDose contingent consideration | $0.30 | $0.20 | $0.70 | $0.20 |
Recognition of income related to nonrefundable payment | ' | 0.3 | ' | 0.3 |
Nonrefundable payment from customer | 18.2 | 20 | 18.2 | 20 |
Unearned income, current | 1.5 | ' | 1.5 | ' |
Unearned income, noncurrent | 16.7 | ' | 16.7 | ' |
Development Income | $0.50 | $0.50 | $0.90 | $0.80 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate (in hundredths) | 27.70% | 26.50% | 27.70% | 24.20% |
Discrete tax benefit, R&D credit | ' | ' | ' | $1.30 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Reportable segments | ' | ' | 2 | ' |
Net sales | $368.90 | $344.50 | $715.70 | $683.90 |
Operating profit | 54.1 | 42.5 | 93.4 | 85.9 |
Loss on debt extinguishment | 0 | 0 | 0 | 0.2 |
Interest expense | 4.2 | 4.1 | 8.2 | 8.7 |
Interest income | 0.5 | 0.4 | 0.9 | 1 |
Income before income taxes | 50.4 | 38.8 | 86.1 | 78 |
Packaging Systems [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 268 | 251.5 | 520.9 | 503 |
Operating profit | 62.9 | 56.8 | 114.3 | 115.5 |
Delivery Systems [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | 101.1 | 93.3 | 195.1 | 181.5 |
Operating profit | 3.7 | 2.3 | 3.5 | 3.5 |
Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Net sales | -0.2 | -0.3 | -0.3 | -0.6 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Operating profit | ($12.50) | ($16.60) | ($24.40) | ($33.10) |