Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 26, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-8036 | ||
Entity Registrant Name | WEST PHARMACEUTICAL SERVICES, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-1210010 | ||
Entity Address, Address Line One | 530 Herman O. West Drive | ||
Entity Address, City or Town | Exton | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19341-0645 | ||
City Area Code | 610 | ||
Local Phone Number | 594-2900 | ||
Title of 12(b) Security | Common Stock, par value $.25 per share | ||
Trading Symbol | WST | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 26.5 | ||
Entity Common Stock, Shares Outstanding | 74,281,589 | ||
Documents Incorporated by Reference | Document Parts Into Which Incorporated Proxy Statement for the 2022 Annual Meeting of Shareholders to be filed not later than 120 days after the end of the fiscal year covered by this Form 10-K. Part III | ||
Entity Central Index Key | 0000105770 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Philadelphia, Pennsylvania |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 2,831.6 | $ 2,146.9 | $ 1,839.9 |
Cost of goods and services sold | 1,655.8 | 1,379.1 | 1,234.2 |
Gross profit | 1,175.8 | 767.8 | 605.7 |
Research and development | 52.8 | 46.9 | 38.9 |
Selling, general and administrative expenses | 362.8 | 302 | 272.7 |
Other expense (income) | 7.9 | 12 | (2.5) |
Operating profit | 752.3 | 406.9 | 296.6 |
Interest expense | 8.2 | 8.2 | 8.5 |
Interest income | (1) | (1.4) | (3.8) |
Other nonoperating (income) expense | (3.8) | (1.2) | 0.1 |
Total income before income taxes | 748.9 | 401.3 | 291.8 |
Income tax expense | 107.2 | 72.5 | 59 |
Equity in net income of affiliated companies | (20.1) | (17.4) | (8.9) |
Net income | $ 661.8 | $ 346.2 | $ 241.7 |
Net income per share: | |||
Basic (in dollars per share) | $ 8.89 | $ 4.68 | $ 3.27 |
Diluted (in dollars per share) | $ 8.67 | $ 4.57 | $ 3.21 |
Weighted average shares outstanding: | |||
Basic (in shares) | 74.4 | 73.9 | 74 |
Diluted (in shares) | 76.3 | 75.8 | 75.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 661.8 | $ 346.2 | $ 241.7 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (59.3) | 40.1 | 4.9 |
Prior service cost arising during period, net of tax of $0.5 | 1.5 | 0 | 0 |
Net actuarial gain (loss) arising during period, net of tax of $2.1, $(0.7), and $(0.3) | 5.9 | (2.5) | (1.9) |
Settlement effects arising during period, net of tax of $0.4, $0.9, and $0.8 | 1.4 | 2.9 | 2.7 |
Less: amortization of actuarial loss (gain), net of tax of $0.1, $0.0, and $0.0 | 0.1 | (0.1) | (0.2) |
Less: amortization of prior service credit, net of tax of $(0.1), $(0.1) and $(0.1). | (0.2) | (0.5) | (0.5) |
Net gain (loss) on equity affiliate accumulated other comprehensive income, net of tax of $0.0, $0.0, and $0.0 | 0.9 | 0.2 | 0 |
Net gain (loss) on derivatives, net of tax of $0.5, $(0.6), and $(0.2) | 0.7 | (1.1) | (0.4) |
Other comprehensive (loss) income, net of tax | (49) | 39 | 4.6 |
Comprehensive income | $ 612.8 | $ 385.2 | $ 246.3 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Prior service credit arising during period, tax | $ 0.5 | $ 0.5 | $ 0.5 |
Net actuarial gain (loss) arising during period, tax | 2.1 | (0.7) | (0.3) |
Settlement effects arising during period, tax | 0.4 | 0.9 | 0.8 |
Less: amortization of actuarial loss, tax | 0.1 | 0 | 0 |
Less: amortization of prior service credit, tax | (0.1) | (0.1) | (0.1) |
Net gain (loss) on investment securities, tax | 0 | 0 | 0 |
Net gain (loss) on derivatives, tax | $ 0.5 | $ (0.6) | $ (0.2) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 762.6 | $ 615.5 |
Accounts receivable, net | 489 | 385.3 |
Inventories | 378.4 | 321.3 |
Other current assets | 112 | 51.6 |
Total current assets | 1,742 | 1,373.7 |
Property, plant and equipment | 2,215 | 2,035.5 |
Less: accumulated depreciation and amortization | 1,157.5 | 1,092.3 |
Property, plant and equipment, net | 1,057.5 | 943.2 |
Operating lease right-of-use assets | 69.3 | 68.3 |
Investments in affiliated companies | 207.7 | 214.7 |
Goodwill | 109.9 | 111.1 |
Intangible assets, net | 23 | 30.5 |
Deferred income taxes | 48.5 | 16 |
Pension and other postretirement benefits | 16.7 | 12.9 |
Other noncurrent assets | 39.2 | 23.4 |
Total Assets | 3,313.8 | 2,793.8 |
Current liabilities: | ||
Notes payable and other current debt | 44.2 | 2.3 |
Accounts payable | 232.2 | 213.1 |
Pension and other postretirement benefits | 2.4 | 2.3 |
Accrued salaries, wages and benefits | 116.3 | 106 |
Income taxes payable | 26.3 | 26 |
Operating lease liabilities | 9.3 | 10.1 |
Other current liabilities | 163.4 | 143.6 |
Total current liabilities | 594.1 | 503.4 |
Long-term debt | 208.8 | 252.9 |
Deferred income taxes | 4.9 | 10.4 |
Pension and other postretirement benefits | 40.5 | 57.5 |
Operating lease liabilities | 63 | 60.4 |
Deferred compensation benefits | 28.9 | 22.9 |
Other long-term liabilities | 38.2 | 31.8 |
Total Liabilities | 978.4 | 939.3 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, 3.0 million shares authorized; 0.0 shares issued and outstanding in 2021 and 2020 | 0 | 0 |
Common stock, par value $0.25 per share; 200 million shares authorized; shares issued: 75.3 million in 2021 and 2020; shares outstanding: 74.2 million and 74.0 million in 2021 and 2020 | 18.8 | 18.8 |
Capital in excess of par value | 249 | 267.3 |
Retained earnings | 2,456.7 | 1,846.7 |
Accumulated other comprehensive loss | (159.6) | (110.6) |
Treasury stock, at cost (1.1 million and 1.3 million shares in 2021 and 2020) | (229.5) | (167.7) |
Total Equity | 2,335.4 | 1,854.5 |
Total Liabilities and Equity | $ 3,313.8 | $ 2,793.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 3 | 3 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 200 | 200 |
Common stock, shares issued (in shares) | 75.3 | 75.3 |
Common stock, shares outstanding (in shares) | 74.2 | 74 |
Treasury stock, at cost (in shares) | 1.1 | 1.3 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Capital in excess of par value | Treasury stock | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||
Balance (in shares) at Dec. 31, 2018 | 75,300,000 | 1,200,000 | ||||||
Beginning balance at Dec. 31, 2018 | $ 1,396.3 | $ 18.8 | $ 282 | $ (103.7) | $ 1,353.4 | $ (154.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 241.7 | 241.7 | ||||||
Activity related to stock-based compensation (in shares) | (800,000) | |||||||
Activity related to stock-based compensation | 54.5 | (11.1) | $ 65.6 | |||||
Shares purchased under share repurchase program (in shares) | 800,000 | |||||||
Shares purchased under share repurchase program | (83.1) | $ (83.1) | ||||||
Purchase of investment in affiliated companies | 4.9 | 1.8 | $ 3.1 | |||||
Dividends declared | (45.7) | (45.7) | ||||||
Other comprehensive income, net of tax | 4.6 | 4.6 | ||||||
Balance (in shares) at Dec. 31, 2019 | 75,300,000 | 1,200,000 | ||||||
Ending balance at Dec. 31, 2019 | 1,573.2 | $ (0.1) | $ 18.8 | 272.7 | $ (118.1) | 1,549.4 | $ (0.1) | (149.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 346.2 | 346.2 | ||||||
Activity related to stock-based compensation (in shares) | (700,000) | |||||||
Activity related to stock-based compensation | 60.5 | (5.4) | $ 65.9 | |||||
Shares purchased under share repurchase program (in shares) | 800,000 | |||||||
Shares purchased under share repurchase program | (115.5) | $ (115.5) | ||||||
Dividends declared | (48.8) | (48.8) | ||||||
Other comprehensive income, net of tax | 39 | 39 | ||||||
Balance (in shares) at Dec. 31, 2020 | 75,300,000 | 1,300,000 | ||||||
Ending balance at Dec. 31, 2020 | 1,854.5 | $ 18.8 | 267.3 | $ (167.7) | 1,846.7 | (110.6) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 661.8 | 661.8 | ||||||
Activity related to stock-based compensation (in shares) | (700,000) | |||||||
Activity related to stock-based compensation | $ 57 | (18.3) | $ 75.3 | |||||
Shares purchased under share repurchase program (in shares) | (479,000) | 500,000 | ||||||
Shares purchased under share repurchase program | $ (137.1) | $ (137.1) | ||||||
Dividends declared | (51.8) | (51.8) | ||||||
Other comprehensive income, net of tax | (49) | (49) | ||||||
Balance (in shares) at Dec. 31, 2021 | 75,300,000 | 1,100,000 | ||||||
Ending balance at Dec. 31, 2021 | $ 2,335.4 | $ 18.8 | $ 249 | $ (229.5) | $ 2,456.7 | $ (159.6) |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 0.70 | $ 0.66 | $ 0.62 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 661.8 | $ 346.2 | $ 241.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 116.9 | 104.7 | 100 |
Amortization | 5.4 | 4.4 | 3.4 |
Stock-based compensation | 37.5 | 34 | 24.4 |
Non-cash restructuring charges | 0 | 0 | 2.3 |
Pension settlement charge | 1.8 | 3.7 | 3.5 |
Contingent consideration payments in excess of acquisition-date liability | (1.4) | (0.9) | (0.5) |
Fixed asset impairments and sale of equipment, net | 1.3 | 7.7 | 0.8 |
Deferred income taxes | (42.9) | (5.8) | 15.3 |
Pension and other retirement plans, net | 14.8 | 4.6 | (2.6) |
Equity in undistributed earnings of affiliates, net of dividends | (17.4) | (15.8) | (6.7) |
Changes in assets and liabilities: | |||
Increase in accounts receivable | (123.5) | (46.6) | (33.3) |
Increase in inventories | (86.5) | (73.7) | (18.6) |
(Increase) decrease in other current assets | (7.3) | 5.5 | 2.6 |
Increase in accounts payable | 16.8 | 36.6 | 25.3 |
Changes in other assets and liabilities | 6.7 | 67.9 | 9.6 |
Net cash provided by operating activities | 584 | 472.5 | 367.2 |
Cash flows from investing activities: | |||
Capital expenditures | (253.4) | (174.4) | (126.4) |
Purchase of investment in affiliated companies | 0 | 0 | (85.1) |
Acquisition of business | (2.2) | 0 | (18.9) |
Other, net | 2.5 | (5.1) | 2.4 |
Net cash used in investing activities | (253.1) | (179.5) | (228) |
Cash flows from financing activities: | |||
Borrowings under revolving credit agreements | 0 | 0 | 108.5 |
Repayments under revolving credit agreements | 0 | 0 | (136.3) |
Issuance of long-term debt | 0 | 0 | 90 |
Debt issuance cost | 0 | 0 | (1.2) |
Repayments of long-term debt | (2.2) | (2.3) | (0.1) |
Dividend payments | (51.1) | (48.1) | (45.1) |
Proceeds from stock-based compensation awards | 29.4 | 28.3 | 27.3 |
Employee stock purchase plan contributions | 7.7 | 6.4 | 5.4 |
Shares purchased under share repurchase programs | (137.1) | (115.5) | (83.1) |
Shares repurchased for employee tax withholdings | (14.8) | (5.9) | (2.2) |
Net cash used in financing activities | (168.1) | (137.1) | (36.8) |
Effect of exchange rates on cash | (15.7) | 20.5 | (0.7) |
Net increase in cash and cash equivalents | 147.1 | 176.4 | 101.7 |
Cash, including cash equivalents at beginning of period | 615.5 | 439.1 | 337.4 |
Cash, including cash equivalents at end of period | 762.6 | 615.5 | 439.1 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 8 | 8.1 | 8.6 |
Income taxes paid, net | 171.8 | 48.4 | 47.5 |
Accrued capital expenditures | 41.1 | 31.3 | 17 |
Dividends declared, not paid | 13.4 | 12.6 | 11.8 |
Purchase of investment in affiliated companies, treasury stock | $ 0 | $ 0 | $ 4.9 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of West after the elimination of intercompany transactions. We have no participation or other rights in variable interest entities. In April 2019, we acquired the business of our distributor in South Korea for $18.9 million. As a result of the acquisition, we recorded inventories, property, plant and equipment, goodwill and a customer relationships intangible asset of $4.5 million, $0.6 million, $2.6 million and $11.2 million, respectively. The goodwill was recorded within our Proprietary Products reportable segment. The results of this acquisition have been included in our consolidated financial statements since the acquisition date. West has been actively monitoring the coronavirus (“COVID-19”) situation and its impact globally. Our production facilities continued to operate during the year as they had prior to the COVID-19 pandemic, other than for enhanced safety measures intended to prevent the spread of the virus and higher levels of production at certain plant locations to meet additional customer demand. The remote working arrangements and travel restrictions imposed by various governments had limited impact on our ability to maintain operations during the year, as our manufacturing operations have generally been exempted from stay-at-home orders. Use of Estimates: The financial statements are prepared in conformity with U.S. GAAP. These principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies in the financial statements. Actual amounts realized may differ from these estimates. Cash and Cash Equivalents: Cash equivalents include time deposits, certificates of deposit and all highly liquid short-term instruments with maturities of three months or less at the time of purchase. Accounts Receivable: Our accounts receivable balance was net of an allowance for doubtful accounts of $0.4 million and $1.1 million at December 31, 2021 and 2020, respectively. Under the current expected credit loss model, we have adopted a provision matrix approach, utilizing historical loss rates based on the number of days past due, adjusted to reflect current economic conditions and forecasts of future economic conditions. Inventories: Inventories are valued at the lower of cost (on a first-in, first-out basis) and net realizable value. The following is a summary of inventories at December 31: ($ in millions) 2021 2020 Raw materials $ 153.8 $ 133.5 Work in process 63.5 54.9 Finished goods 161.1 132.9 $ 378.4 $ 321.3 Property, Plant and Equipment : Property, plant and equipment assets are carried at cost. Maintenance and minor repairs and renewals are charged to expense as incurred. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and immediately expensed for preliminary project activities or post-implementation activities. Upon sale or retirement of depreciable assets, costs and related accumulated depreciation are eliminated, and gains or losses are recognized in other expense (income). Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the assets, or the remaining term of the lease, if shorter. Leases: Operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. We had no finance leases as of December 31, 2021. Please refer to Note 6, Leases , for additional information. Impairment of Long-Lived Assets : Long-lived assets, including property, plant and equipment and operating lease right-of-use assets, are tested for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. An asset is considered impaired if the carrying value of the asset exceeds the sum of the future expected undiscounted cash flows to be derived from the asset. Once an asset is considered impaired, an impairment loss is recorded within other expense (income) for the difference between the asset’s carrying value and its fair value. For assets held and used in the business, management determines fair value using estimated future cash flows to be derived from the asset, discounted to a net present value using an appropriate discount rate. For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs. Impairment of Goodwill and Other Intangible Assets: Goodwill is tested for impairment at least annually, following the completion of our annual budget and long-range planning process, or whenever circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the same as, or one level below, our operating segments. A goodwill impairment charge represents the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Accounting guidance also allows entities to first assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance, to determine whether it is necessary to perform the quantitative goodwill impairment test. We elected to follow this guidance for our annual impairment test. Based upon our assessment, we determined that it was not more likely than not that the fair value of each of our reporting units was less than its carrying amount and determined that it was not necessary to perform the quantitative goodwill impairment test. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives of 3 to 25 years, and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. Employee Benefits: The measurement of the obligations under our defined benefit pension and postretirement medical plans are subject to a number of assumptions. These include the rate of return on plan assets (for funded plans) and the rate at which the future obligations are discounted to present value. For our funded plans, we consider the current and expected asset allocations of our plan assets, as well as historical and expected rates of return, in estimating the long-term rate of return on plan assets. U.S. GAAP requires the recognition of an asset or liability for the funded status of a defined benefit postretirement plan, as measured by the difference between the fair value of plan assets, if any, and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement plan, such as a retiree health plan, the benefit obligation is the accumulated postretirement benefit obligation. Please refer to Note 15, Benefit Plans , for a more detailed discussion of our pension and other retirement plans. Financial Instruments : All derivatives are recognized as either assets or liabilities in the balance sheet and recorded at their fair value. For a derivative designated as hedging the exposure to variable cash flows of a forecasted transaction (referred to as a cash flow hedge), the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (“OCI”), net of tax, and subsequently reclassified into earnings when the forecasted transaction affects earnings. For a derivative designated as hedging the exposure to changes in the fair value of a recognized asset or liability or a firm commitment (referred to as a fair value hedge), the derivative’s gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item. For a derivative designated as hedging the foreign currency exposure of a net investment in a foreign operation, the gain or loss is reported in OCI, net of tax, as part of the cumulative translation adjustment. The ineffective portion of any derivative used in a hedging transaction is recognized immediately into earnings. Derivative financial instruments that are not designated as hedges are also recorded at fair value, with the change in fair value recognized immediately into earnings. We do not purchase or hold any derivative financial instrument for investment or trading purposes. Foreign Currency Translation : Foreign currency transaction gains and losses are recognized in the determination of net income. Foreign currency translation adjustments of subsidiaries and affiliates operating outside of the U.S. are accumulated in other comprehensive loss, a separate component of equity. Revenue Recognition: Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with Accounting Standards Codification ("ASC") 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service. We have elected to disregard the effects of a significant financing component, as we expect, at the inception of our contracts, that the period between when we transfer a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In addition, we have elected to omit the disclosure of the majority of our remaining performance obligations, which are satisfied within one year or less. Please refer to Note 3, Revenue , for additional information. Shipping and Handling Costs : Shipping and handling costs are included in cost of goods and services sold. Shipping and handling costs billed to customers in connection with the sale are included in net sales. Research and Development : Research and development expenditures are for the creation, engineering and application of new or improved products and processes. Expenditures include primarily salaries and outside services for those directly involved in research and development activities and are primarily expensed as incurred. Environmental Remediation and Compliance Costs : Environmental remediation costs are accrued when such costs are probable and reasonable estimates are determinable. Cost estimates include investigation, cleanup and monitoring activities; such estimates are adjusted, if necessary, based on additional findings. Environmental compliance costs are expensed as incurred as part of normal operations. Litigation : From time to time, we are involved in legal proceedings, investigations and claims generally incidental to our normal business activities. In accordance with U.S. GAAP, 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. These estimates are based on an analysis made by internal and external legal counsel considering information known at the time. Legal costs in connection with loss contingencies are expensed as incurred. Income Taxes: Deferred income taxes are recognized by applying enacted statutory tax rates to tax loss carryforwards and temporary differences between the tax basis and financial statement carrying values of our assets and liabilities. The enacted statutory tax rate applied is based on the rate expected to be applicable at the time of the forecasted utilization of the loss carryforward or reversal of the temporary difference. Valuation allowances on deferred tax assets are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The realizability of deferred tax assets is subject to our estimates of future taxable income, generally at the respective subsidiary company and the country level. Please refer to Note 17, Income Taxes , for additional information. We recognize interest costs related to income taxes in interest expense and penalties within other expense (income). The tax law ordering approach is used for purposes of determining whether an excess tax benefit has been realized during the year. Stock-Based Compensation : Under the fair value provisions of U.S. GAAP, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the grant date, we use the Black-Scholes valuation model. Please refer to Note 14, Stock-Based Compensation , for a more detailed discussion of our stock-based compensation plans. Net Income Per Share : Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income per share assuming dilution considers the dilutive effect of outstanding stock options and other stock awards based on the treasury stock method. The treasury stock method assumes the use of exercise proceeds to repurchase common stock at the average fair market value in the period. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards Standards Issued Not Yet Adopted In March 2020, the Financial Accounting Standards Board ("FASB") issued guidance which provides optional expedients and exceptions to address the impact of reference rate reform where contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate need to be discontinued. This guidance was effective upon issuance and generally can be applied through December 31, 2022. We have identified the contracts impacted by reference rate reform, and have executed certain amendments to replace the use of LIBOR. We are currently working with counterparties to identify alternative reference rates to be used in any remaining contracts that have not yet been amended. The Company does not expect such adoption to cause a material impact to the consolidated financial statements. In November 2021, the FASB issued guidance that seeks to improve the transparency of financial disclosures for government assistance received by business entities. The amendment requires disclosures for transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2021. We are currently evaluating the impact of this guidance on our financial statements and disclosures. The Company does not expect such adoption to cause a material impact to the consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition We recognize the majority of our revenue, primarily relating to Proprietary Products product sales, at a point in time, following the transfer of control of our products to our customers, which typically occurs upon shipment or delivery, depending on the terms of the related agreements. We recognize revenue relating to our Contract-Manufactured Products product sales and certain Proprietary Products product sales over time, as our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. We recognize revenue relating to our development and tooling agreements over time, as our performance creates or enhances an asset that the customer controls as the asset is created or enhanced. For revenue recognized over time, revenue is recognized by applying a method of measuring progress toward complete satisfaction of the related performance obligation. When selecting the method for measuring progress, we select the method that best depicts the transfer of control of goods or services promised to our customers. Revenue for our Contract-Manufactured Products product sales, certain Proprietary Products product sales, and our development and tooling agreements is recorded under an input method, which recognizes revenue on the basis of our efforts or inputs to the satisfaction of a performance obligation (for example, resources consumed, labor hours expended, costs incurred, time elapsed, or machine hours used) relative to the total expected inputs to the satisfaction of that performance obligation. The input method that we use is based on costs incurred. The majority of the performance obligations within our contracts are satisfied within one year or less. Performance obligations satisfied beyond one year include those relating to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of the SmartDose technology platform within a specific therapeutic area. As of December 31, 2021, there was $3.9 million of unearned income related to this payment, of which $0.9 million was included in other current liabilities and $3.0 million was included in other long-term liabilities. The unearned income is being recognized as 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. Our revenue can be generated from contracts with multiple performance obligations. When a sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration we expect to be entitled in exchange for transferring the promised good or service to the customer. Some customers receive pricing rebates upon attaining established sales volumes. We record rebate costs when sales occur based on our assessment of the likelihood that the required volumes will be attained. We also maintain an allowance for product returns, as we believe that we are able to reasonably estimate the amount of returns based on our substantial historical experience and specific identification of customer claims. The following table presents the approximate percentage of our net sales by market group: 2021 2020 2019 Biologics 41 % 31 % 25 % Generics 17 % 20 % 20 % Pharma 24 % 26 % 31 % Contract-Manufactured Products 18 % 23 % 24 % 100 % 100 % 100 % The following table presents the approximate percentage of our net sales by product category: 2021 2020 2019 High-Value Product Components 54 % 46 % 42 % High-Value Product Delivery Devices 5 % 5 % 5 % Standard Packaging 23 % 26 % 29 % Contract-Manufactured Products 18 % 23 % 24 % 100 % 100 % 100 % The following table presents the approximate percentage of our net sales by geographic location: 2021 2020 2019 Americas 45 % 48 % 48 % Europe, Middle East, Africa 45 % 43 % 44 % Asia Pacific 10 % 9 % 8 % 100 % 100 % 100 % Contract Assets and Liabilities Contract assets and liabilities result from transactions with revenue primarily recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, we record a contract asset. Contract assets are recorded on the consolidated balance sheet in accounts receivable, net, and other assets (current and noncurrent portions, respectively). Contract assets included in accounts receivable, net, relate to the unbilled amounts of our product sales for which we have recognized revenue over time. Contract assets included in other assets represent the remaining performance obligations of our development and tooling agreements. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, we record a contract liability. Contract liabilities are recorded on the consolidated balance sheet within other liabilities (current and noncurrent portions, respectively) and represent cash payments received in advance of our performance. The following table summarizes our contract assets and liabilities, excluding amounts included in accounts receivable, net: ($ in millions) Contract assets, December 31, 2020 $ 10.9 Contract assets, December 31, 2021 14.6 Change in contract assets - increase (decrease) $ 3.7 Deferred income, December 31, 2020 $ (57.1) Deferred income, December 31, 2021 (61.3) Change in deferred income - (increase) decrease $ (4.2) The increase in deferred income during 2021 was primarily due to additional cash payments of $112.3 million received in advance of satisfying future performance obligations, partially offset by the recognition of current year revenue of $72.0 million, and $31.8 million of revenue that was included in deferred income at the beginning of the year. Voluntary Recall On January 24, 2019, we issued a voluntary recall of our Vial2Bag ® product line due to reports of potential unpredictable or variable dosing under certain conditions. Our fourth quarter 2018 results included an $11.3 million provision for product returns, recorded as a reduction of sales, partially offset by a reduction in cost of goods sold reflecting our inventory balance for these devices at December 31, 2018. During 2019, we recorded a net provision of $5.4 million for inventory returns from our customers and related in-house inventory, partially offset by a reduction in our pro vision for product returns. On October 21, 2020 we received market clearance from the FDA for our Vial2BagAdvanced TM 2 0mm Admixture Device. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share: (in millions) 2021 2020 2019 Net income $ 661.8 $ 346.2 $ 241.7 Weighted average common shares outstanding 74.4 73.9 74.0 Dilutive effect of equity awards, based on the treasury stock method 1.9 1.9 1.4 Weighted average shares assuming dilution 76.3 75.8 75.4 During 2021, 2020 and 2019, there were 0.0 million, 0.0 million, and 0.1 million shares, respectively, from stock-based compensation plans not included in the computation of diluted net income per share because their impact was antidilutive. In December 2020, we announced a share repurchase program for calendar-year 2021 authorizing the repurchase of up to 631,000 shares of our common stock from time to time on the open market as permitted under Exchange Act Rule 10b-18 or in privately-negotiated transactions. There were no shares purchased during the three months ended December 31, 2021. During the year ended December 31, 2021, we purchased 479,000 shares of our common stock under the now completed program at a cost of $137.1 million, or an average price of $286.23 per share. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment A summary of gross property, plant and equipment at December 31 is presented in the following table: ($ in millions) Expected useful lives (years) 2021 2020 Land $ 29.3 $ 24.8 Buildings and improvements 15-35 644.8 618.1 Machinery and equipment 5-12 976.1 911.8 Molds and dies 4-7 139.5 131.2 Computer hardware and software 3-10 182.6 157.5 Construction in progress 242.7 192.1 $ 2,215.0 $ 2,035.5 Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $116.9 million, $104.7 million and $100.0 million, respectively. We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Capitalized interest for the years ended December 31, 2021, 2020 and 2019 was $2.0 million, $1.4 million and $0.9 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Adoption of ASC 842 On January 1, 2019, we adopted ASC 842, using the modified retrospective approach that allows companies to apply ASC 842 as of the effective date and on a prospective basis. As a result, we were not required to adjust our comparative period financial information for effects of ASC 842 or present the new required lease disclosures for periods prior to the date of adoption. As of December 31, 2021, we had operating leases primarily related to land, buildings, and machinery and equipment, with lease terms through 2047. Certain of our operating leases provide us with an option, exercisable at our sole discretion, to terminate the lease or extend the lease term for one year or more. At this time, the Company is not able to assert whether any of these options will be exercised. We had no finance leases as of December 31, 2021 and 2020. The operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. Judgments used in applying ASC 842 include determining: i) whether a contract is, or contains, a lease; ii) the discount rate to be used to discount the unpaid lease payments to present value; iii) the lease term; and iv) the lease payments. We determine if a contract is, or contains, a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As all of our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of our operating leases includes the noncancellable period of the lease plus any additional periods covered by either a lessee option to extend (or not to terminate) the lease that the lessee is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Lease payments included in the measurement of the operating lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise. The components of lease expense were as follows: ($ in millions) 2021 2020 2019 Operating lease cost $ 12.7 $ 12.8 $ 12.9 Short-term lease cost 1.3 0.8 0.8 Variable lease cost 4.8 3.8 3.3 Total lease cost $ 18.8 $ 17.4 $ 17.0 Supplemental information related to leases was as follows: ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.1 $ 12.6 $ 12.5 Right-of-use assets obtained in exchange for new operating lease liabilities 13.3 6.1 9.1 As of December 31, 2021 and December 31, 2020, the weighted average remaining lease term for operating leases was 10.7 years and 11.1 years and the weighted average discount rate was 3.58% and 3.68%, respectively. Maturities of lease liabilities as of December 31, 2021 were as follows: ($ in millions) Operating Year Leases 2022 $ 11.5 2023 10.7 2024 10.0 2025 8.2 2026 7.3 Thereafter 38.7 86.4 Less: imputed lease interest (14.1) Total lease liabilities $ 72.3 Practical Expedients and Exemptions We have elected to adopt practical expedients around the combination of lease and non-lease components and the portfolio approach relating to discount rates. These practical expedients were applied consistently to all leases. We have elected not to recognize operating lease right-of-use assets and operating lease liabilities for all short-term leases (leases with an initial lease term of 12 months or less). We recognize the lease payments associated with our short-term leases as an expense over the lease term. |
Affiliated Companies
Affiliated Companies | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Affiliated Companies | Affiliated Companies At December 31, 2021, the following affiliated companies were accounted for under the equity method: Location Ownership interest The West Company Mexico, S.A. de C.V. Mexico 49% Aluplast S.A. de C.V. Mexico 49% Pharma Tap S.A. de C.V. Mexico 49% Pharma Rubber S.A. de C.V. Mexico 49% Daikyo Japan 49% On November 1, 2019, in connection with the amendment of certain commercial agreements with Daikyo, we increased our ownership interest from 25% to 49% in Daikyo in exchange for $85.1 million in cash and $4.9 million in shares of our treasury stock to certain stockholders of Daikyo. Unremitted income of affiliated companies included in consolidated retained earnings amounted to $115.6 million, $98.2 million and $82.4 million at December 31, 2021, 2020 and 2019, respectively. Dividends received from affiliated companies were $2.7 million in 2021, $1.6 million in 2020 and $2.2 million in 2019. Our equity in net unrealized gains of Daikyo’s investment securities and derivative instruments, as well as pension adjustments, included in accumulated other comprehensive loss was $1.5 million, $0.6 million and $0.4 million at December 31, 2021, 2020 and 2019, respectively. Our purchases from, and royalty payments made to, affiliates totaled $155.0 million, $143.3 million and $115.1 million, respectively, in 2021, 2020 and 2019, of which $25.5 million and $33.6 million was due and payable as of December 31, 2021 and 2020, respectively. The majority of these transactions related to a distributorship agreement with Daikyo that allows us to purchase and re-sell Daikyo products. Sales to affiliates were $12.0 million, $9.7 million and $9.2 million, respectively, in 2021, 2020 and 2019, of which $2.3 million and $1.4 million was receivable as of December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $201.2 million and $201.9 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $6.5 million and $12.8 million, respectively. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows: ($ in millions) Proprietary Products Contract-Manufactured Products Total Balance, December 31, 2019 $ 78.1 $ 29.7 $ 107.8 Foreign currency translation 2.8 0.5 3.3 Balance, December 31, 2020 80.9 30.2 111.1 Goodwill recorded due to acquisition 1.7 — 1.7 Goodwill impairment charge (0.1) — (0.1) Foreign currency translation (2.4) (0.4) (2.8) Balance, December 31, 2021 $ 80.1 $ 29.8 $ 109.9 As of December 31, 2021, we had $0.1 million in accumulated goodwill impairment losses. Intangible assets and accumulated amortization as of December 31 were as follows: 2021 2020 ($ in millions) Cost Accumulated amortization Net Cost Accumulated amortization Net Patents and licensing $ 25.1 $ (19.4) $ 5.7 $ 25.9 $ (17.9) $ 8.0 Technology 3.3 (2.0) 1.3 3.3 (1.7) 1.6 Trademarks 2.0 (1.9) 0.1 2.0 (1.8) 0.2 Customer relationships 40.1 (25.4) 14.7 40.9 (23.4) 17.5 Customer contracts 10.6 (9.4) 1.2 11.1 (7.9) 3.2 $ 81.1 $ (58.1) $ 23.0 $ 83.2 $ (52.7) $ 30.5 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities as of December 31 included the following: ($ in millions) 2021 2020 Deferred income $ 48.7 $ 51.0 Dividends payable 13.4 12.6 Accrued commissions, rebates and royalties 38.7 10.0 Accrued retirement plans (excluding pension) 8.8 8.4 Accrued taxes other than income 13.0 15.4 Accrued professional services 3.7 3.7 Accrued interest 3.2 3.3 Restructuring and severance related charges 4.6 7.8 Short term derivative instruments 3.3 9.5 Other 26.0 21.9 Total other current liabilities $ 163.4 $ 143.6 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities, at December 31. The interest rates shown in parentheses are as of December 31, 2021. ($ in millions) 2021 2020 Term Loan, due December 31, 2024 (1.10%) $ 85.5 $ 87.7 Series A notes, due July 5, 2022 (3.67%) 42.0 42.0 Series B notes, due July 5, 2024 (3.82%) 53.0 53.0 Series C notes, due July 5, 2027 (4.02%) 73.0 73.0 253.5 255.7 Less: unamortized debt issuance costs 0.5 0.5 Total debt 253.0 255.2 Less: current portion of long-term debt 44.2 2.3 Long-term debt, net $ 208.8 $ 252.9 Credit Agreement - Credit Facility In March 2019, we entered into the Credit Agreement which expires in March 2024, and contains the Credit Facility of $300.0 million, with sublimits of up to $30.0 million for swing line loans for domestic borrowers in USD and a $20.0 million swing line loan for our German Holding Company and up to $30.0 million for the issuance of standby letters of credit. The Credit Facility may be increased from time-to-time by the greater of $350.0 million and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the preceding twelve month period in the aggregate through an increase in the Credit Facility, subject to the satisfaction of certain conditions. Borrowings under the Credit Facility bear interest at either the base rate (the per annum interest rate of the highest of the Prime Rate, the Federal Funds Rate plus 50 basis points or the daily LIBOR, plus 1.00%) or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our net consolidated debt to our modified EBITDA, ranging from 0 to 37.5 basis points for base rate loans and 87.5 to 137.5 basis points for LIBOR rate loans. The Credit Agreement contains financial covenants providing that we shall not permit the ratio of our net consolidated debt to our modified EBITDA to be greater than 3.5 to 1; provided that, no more than three times during the term of the Credit Agreement, upon the occurrence of a qualified acquisition for each of our four fiscal quarters immediately following such qualified acquisition, the ratio shall be increased to 4.0 to 1. The Credit Agreement also contains customary limitations on liens securing our indebtedness, fundamental changes (mergers, consolidations, liquidations and dissolutions), asset sales, distributions and acquisitions. As of December 31, 2021 and 2020, total unamortized debt issuance costs of $0.1 million and $0.4 million, respectively, were recorded in other noncurrent assets and are being amortized as additional interest expense over the term of the Credit Facility. At December 31, 2021, we had no outstanding borrowings under the Credit Facility. At December 31, 2021, the borrowing capacity available under the Credit Facility, including outstanding letters of credit of $2.4 million, was $297.6 million. Credit Agreement Amendment - Term Loan In December 2019, we entered into a First Amendment and Incremental Facility Amendment (the “First Amendment”) to the Credit Agreement. Pursuant to the First Amendment and the Credit Agreement, we established the Term Loan in the amount of $90.0 million, which is due on December 31, 2024. Borrowings under the Term Loan bear interest at the three-month LIBOR plus 87.5 basis points. As of December 31, 2021 and 2020, there were unamortized debt issuance costs remaining of $0.1 million and $0.1 million, respectively, which are being amortized as additional interest expense over the term of the Term Loan. At December 31, 2021, we had $85.5 million in borrowings under the Term Loan, of which $2.2 million was classified as current and $83.3 million was classified as long-term. Please refer to Note 11, Derivative Financial Instruments , for a discussion of the foreign currency hedge associated with the Term Loan. Private Placement In 2012, we concluded a private placement issuance of $168.0 million in senior unsecured notes. The total amount of the private placement issuance was divided into three tranches - $42.0 million 3.67% Series A Notes due July 5, 2022, $53.0 million 3.82% Series B Notes due July 5, 2024, and $73.0 million 4.02% Series C Notes due July 5, 2027 (the “Notes”). The Notes rank pari passu with our other senior unsecured debt. The weighted average of the coupon interest rates on the Notes is 3.87%. As of December 31, 2021 and 2020, there were unamortized debt issuance costs remaining of $0.3 million and $0.4 million, respectively, which are being amortized as additional interest expense over the term of the Notes. Covenants Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At December 31, 2021, we were in compliance with all of our debt covenants. Interest costs incurred during 2021, 2020 and 2019 were $10.2 million, $9.6 million and $9.4 million, respectively. The aggregate annual maturities of long-term debt, excluding unamortized debt issuance costs, are as follows: $44.2 million in 2022, 2023 - $2.3 million, 2024 - $134.0 million, 2025 - $0.0 million, 2026 - $0.0 million, and thereafter - $73.0 million. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 currency 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 investment or trading purposes. All derivatives are recorded in our consolidated balance sheet at fair value. Foreign Currency Exchange Rate Risk We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans. As of December 31, 2021 and December 31, 2020, the total amount of these forward exchange contracts was SGD 601.5 million and $13.4 million. In addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies. As of December 31, 2021, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD EUR USD 18.1 15.1 JPY 7,510.0 28.4 33.8 SGD 17.9 11.3 1.7 In November and December 2019, in conjunction with the repayment of the outstanding long-term borrowings under our Credit Facility denominated in Euro and Japanese Yen, we de-designated these borrowings as hedges of our net investments in certain European subsidiaries and Daikyo. The amounts recorded as cumulative translation adjustments within accumulated other comprehensive loss related to these borrowings (prior to de-designation) will remain in accumulated other comprehensive loss indefinitely, unless certain future events occur, such as the disposition of the operations for which the net investment hedges relate. In December 2019, we entered into a five-year floating-to-floating forward-starting cross-currency swap (the “cross-currency swap”) for $90 million, which we designated as a hedge of our net investment in Daikyo. The notional amount of the cross-currency swap is ¥9.4 billion ($85.5 million) as of December 31, 2021. Under the cross-currency swap, we receive floating interest rate payments based on three-month USD LIBOR plus a margin, in return for paying floating interest rate payments based on three-month Japanese Yen LIBOR or successor rate plus a margin. Commodity Price Risk Many of our proprietary products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception. From November 2017 through December 2021, we purchased several series of call options for a total of 640,267 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regards to a portion of our forecasted elastomer purchases. As of December 31, 2021, we had outstanding contracts to purchase 188,242 barrels of crude oil from January 2022 to June 2023, at a weighted-average strike price of $74.16 per barrel. Effects of Derivative Instruments on Financial Position and Results of Operations Please refer to Note 12, Fair Value Measurements , for the balance sheet location and fair values of our derivative instruments as of December 31, 2021 and 2020. The following table summarizes the effects of derivative instruments designated as fair value hedges in our consolidated statements of income for the years ended December 31: Amount of Gain (Loss) Recognized in Income Location on Statement of Income ($ in millions) 2021 2020 2019 Fair Value Hedges: Hedged item (intercompany loan) $ (22.1) $ 28.5 $ (15.3) Other expense (income) Derivative designated as hedging instrument 22.1 (28.5) 15.3 Other expense (income) Amount excluded from effectiveness testing 3.0 6.1 6.9 Other expense (income) Total $ 3.0 $ 6.1 $ 6.9 We recognize in earnings the initial value of forward point components on a straight-line basis over the life of the fair value hedge. The amounts recognized in earnings, pre-tax, for forward point components for the years ended December 31, 2021, 2020 and 2019 were $2.6 million, $6.3 million and $8.7 million, respectively. We expect to recognize $2.6 million in earnings, pre-tax, for forward point components in 2022. The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on OCI and earnings, net of tax, for the years ended December 31: Amount of Gain (Loss) Recognized in OCI ($ in millions) 2021 2020 2019 Fair Value Hedges: Foreign currency hedge contracts $ 0.6 $ 4.0 $ 4.8 Total $ 0.6 $ 4.0 $ 4.8 Cash Flow Hedges: Foreign currency hedge contracts $ (0.2) $ (0.6) $ 0.8 Foreign currency hedge contracts (1.8) (0.6) (0.2) Forward treasury locks — — — Total $ (2.0) $ (1.2) $ 0.6 Net Investment Hedges: Foreign currency-denominated debt — — 0.6 Cross-currency swap 7.7 (3.2) (1.1) Total $ 7.7 $ (3.2) $ (0.5) Amount of (Gain) Loss Reclassified from Accumulated OCI into Income Location of (Gain) Loss Reclassified from Accumulated OCI into Income ($ in millions) 2021 2020 2019 Fair Value Hedges: Foreign currency hedge contracts $ (0.8) $ (4.3) $ (4.6) Other expense (income) Total $ (0.8) $ (4.3) $ (4.6) Cash Flow Hedges: Foreign currency hedge contracts $ 0.9 $ 0.2 $ (0.9) Net sales Foreign currency hedge contracts 1.7 (0.1) (0.6) Cost of goods and services sold Forward treasury locks 0.3 0.3 0.3 Interest expense Total $ 2.9 $ 0.4 $ (1.2) Net Investment Hedges: Foreign currency-denominated debt $ — $ — $ — Other expense (income) Cross-currency swap — — — Other expense (income) Total $ — $ — $ — The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our consolidated statements of income for the years ended December 31: ($ in millions) 2021 2020 2019 Net sales $ 0.9 $ 0.2 $ (0.9) Cost of goods and services sold 1.7 (0.1) (0.6) Other expense (income) (0.8) (4.3) (4.6) Interest expense 0.3 0.3 0.3 The following table summarizes the effects of derivative instruments not designated as hedges in our consolidated statements of income for the years ended December 31: Amount of Gain (Loss) Recognized in Income Location on Statement of Income ($ in millions) 2021 2020 2019 Commodity call options $ 1.7 $ (0.2) $ (0.4) Other expense (income) Total $ 1.7 $ (0.2) $ (0.4) During 2021 and 2020, there was no material ineffectiveness related to our hedges. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 15.5 $ 15.5 $ — $ — Foreign currency contracts 14.8 — 14.8 — Cross-currency swap 4.4 — 4.4 — Commodity call options 1.7 — 1.7 — $ 36.4 $ 15.5 $ 20.9 $ — Liabilities: Contingent consideration $ 3.7 $ — $ — $ 3.7 Deferred compensation liabilities 16.1 16.1 — — Foreign currency contracts 3.4 — 3.4 — $ 23.2 $ 16.1 $ 3.4 $ 3.7 Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 12.8 $ 12.8 $ — $ — Foreign currency contracts 3.0 — 3.0 — Commodity call options 0.3 — 0.3 — $ 16.1 $ 12.8 $ 3.3 $ — Liabilities: Contingent consideration $ 3.6 $ — $ — $ 3.6 Deferred compensation liabilities 14.5 14.5 — — Cross-currency swap 5.6 — 5.6 — Foreign currency contracts 9.7 — 9.7 — $ 33.4 $ 14.5 $ 15.3 $ 3.6 Deferred compensation assets are included within other noncurrent assets and are 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 and other noncurrent assets, as well as other current and other long-term 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 commodity call options, included within other current and other noncurrent assets, is valued using a market approach. The fair value of our contingent consideration, included within other current and other long-term liabilities, is discussed further in the section related to Level 3 fair value 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. The fair value of the cross-currency swap, included within other long-term assets and other long-term liabilities as of December 31, 2021 and December 31, 2020, respectively, is valued using a market approach. Please refer to Note 11, Derivative Financial Instruments , for further discussion of our derivatives. Level 3 Fair Value Measurements The fair value of the contingent consideration liability related to the SmartDose technology platform (the “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 (income) in our consolidated statements of income. The significant unobservable inputs used in the fair value measurement of the SmartDose 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. Sales projections were derived using upside, base and downside forecasted cases for each partnership and applying probability-weighted scenarios of 10%, 50% and 40% to the three cases, respectively, to reflect the likelihood of West meeting the estimated sales projection targets. The probability of success factors included the probabilities of successful FDA approval for each partnership drug, which was estimated in a range of 19% to 100% based on the development phase of each respective drug, and the probability of the successful execution of supply agreements with each partnership, which was estimated in the range of 25% to 100% based on historical, current, and future supply agreements with the respective partnerships. The fair value of this liability utilized a risk-adjusted discount rate of 19% to present value the cash flows. The discount rate is calculated by determining the after-tax required returns on debt and equity and weighting each return by the respective percent of debt and equity to total capital. Key inputs for the discount rate include the risk-free rate on the 20-Year United States Treasury maturity, equity risk premium, company-specific risk premium, pre-tax cost of debt, and U.S. tax rate, among others. As development and commercialization of the SmartDose technology platform 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 SmartDose contingent consideration. The following table provides a summary of changes in our Level 3 fair value measurements: ($ in millions) Balance, December 31, 2019 $ 3.3 Increase in fair value recorded in earnings 1.2 Payments (0.9) Balance, December 31, 2020 3.6 Increase in fair value recorded in earnings 1.5 Payments (1.4) Balance, December 31, 2021 $ 3.7 Other Financial Instruments We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities. The estimated fair value of long-term debt is based on quoted market prices for debt issuances with similar terms and maturities, and is classified as Level 2 within the fair value hierarchy. At December 31, 2021, the estimated fair value of long-term debt was $217.9 million compared to a carrying amount of $208.8 million. At December 31, 2020, the estimated fair value of long-term debt was $265.7 million and the carrying amount was $252.9 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in the components of accumulated other comprehensive loss, net of tax: ($ in millions) (Losses) gains on derivatives Change in equity affiliate investment AOCI Defined benefit pension and other postretirement plans Foreign currency translation Total Balance, December 31, 2018 $ (0.4) $ 0.4 $ (40.4) $ (113.8) (154.2) Other comprehensive income (loss) before reclassifications 5.4 — (1.9) 4.9 8.4 Amounts reclassified out (5.8) — 2.0 — (3.8) Other comprehensive (loss) income, net of tax (0.4) — 0.1 4.9 4.6 Balance, December 31, 2019 (0.8) 0.4 (40.3) (108.9) (149.6) Other comprehensive income (loss) before reclassifications 2.8 0.2 (2.5) 40.1 40.6 Amounts reclassified out (3.9) — 2.3 — (1.6) Other comprehensive (loss) income, net of tax (1.1) 0.2 (0.2) 40.1 39.0 Balance, December 31, 2020 (1.9) 0.6 (40.5) (68.8) (110.6) Other comprehensive income (loss) before reclassifications (1.4) 0.9 7.4 (59.3) (52.4) Amounts reclassified out 2.1 — 1.3 — 3.4 Other comprehensive income (loss), net of tax 0.7 0.9 8.7 (59.3) (49.0) Balance, December 31, 2021 $ (1.2) $ 1.5 $ (31.8) $ (128.1) $ (159.6) A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions): Detail of components 2021 2020 2019 Location on Statement of Income Gains (losses) on derivatives: Foreign currency contracts $ (1.1) $ (0.2) $ 1.0 Net sales Foreign currency contracts (2.4) 0.1 1.0 Cost of goods and services sold Foreign currency contracts 1.2 5.9 6.9 Other expense (income) Forward treasury locks (0.4) (0.4) (0.5) Interest expense Total before tax (2.7) 5.4 8.4 Tax benefit (expense) 0.6 (1.5) (2.6) Net of tax $ (2.1) $ 3.9 $ 5.8 Amortization of defined benefit pension and other postretirement plans: Prior service credit $ 0.3 $ 0.6 $ 0.6 (a) Actuarial (losses) gains (0.2) (0.1) 0.2 (a) Settlements (1.8) (3.7) (3.5) (a) Total before tax (1.7) (3.2) (2.7) Tax benefit (expense) 0.4 0.9 0.7 Net of tax $ (1.3) $ (2.3) $ (2.0) Total reclassifications for the period, net of tax $ (3.4) $ 1.6 $ 3.8 (a) These components are included in the computation of net periodic benefit cost. Please refer to Note 15, Benefit Plans , for additional details. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The West Pharmaceutical Services, Inc. 2016 Omnibus Incentive Compensation Plan (the “2016 Plan”) provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. A committee of the Board of Directors determines the terms and conditions of awards to be granted. Vesting requirements vary by award. At December 31, 2021, there were 2,052,885 shares remaining in the 2016 Plan for future grants. Stock options and stock appreciation rights reduce the number of shares available by one share for each award granted. All other awards under the 2016 Plan will reduce the total number of shares available for grant by an amount equal to 2.5 times the number of shares awarded. If awards made under previous plans would entitle a plan participant to an amount of West stock in excess of the target amount, the additional shares (up to a maximum threshold amount) will be distributed under the 2016 Plan. The following table summarizes our stock-based compensation expense recorded within selling, general and administrative expenses for the years ended December 31: ($ in millions) 2021 2020 2019 Stock option and appreciation rights $ 12.5 $ 10.2 $ 9.1 Performance share units, stock-settled 17.6 16.6 9.5 Performance share units, cash-settled 1.0 0.4 0.1 Performance share units, dividend equivalents 0.2 0.6 0.2 Employee stock purchase plan 1.4 1.1 0.9 Deferred compensation plans and restricted share awards 4.8 5.1 4.6 Total stock-based compensation expense $ 37.5 $ 34.0 $ 24.4 The Company estimates expected forfeitures. The amount of unrecognized compensation expense for all non-vested awards as of December 31, 2021 was approximately $37.3 million, which is expected to be recognized over a weighted average period of 1.5 years. Stock Options Stock options granted to employees vest in equal increments. All awards expire 10 years from the date of grant. Upon the exercise of stock options, shares are issued in exchange for the exercise price of the options. The following table summarizes changes in outstanding options: (in millions, except per share data) 2021 2020 2019 Options outstanding, January 1 2.4 2.7 3.0 Granted 0.1 0.2 0.3 Exercised (0.5) (0.5) (0.6) Forfeited — — — Options outstanding, December 31 2.0 2.4 2.7 Options exercisable, December 31 1.5 1.6 1.6 Weighted Average Exercise Price 2021 2020 2019 Options outstanding, January 1 $ 81.37 $ 67.02 $ 58.93 Granted 280.22 178.11 103.40 Exercised 60.63 49.99 46.42 Forfeited 134.89 103.51 92.71 Options outstanding, December 31 $ 101.73 $ 81.37 $ 67.02 Options exercisable, December 31 $ 73.46 $ 62.42 $ 53.12 As of December 31, 2021, the weighted average remaining contractual life of options outstanding and of options exercisable was 5.5 years and 4.5 years, respectively. As of December 31, 2021, the aggregate intrinsic value of total options outstanding was $751.0 million, of which $573.7 million represented vested options. The fair value of the options was estimated on the date of grant using a Black-Scholes option valuation model that used the following weighted average assumptions in 2021, 2020 and 2019: a risk-free interest rate of 0.8%, 1.3%, and 2.3%, respectively; stock volatility of 23.9%, 22.4%, and 22.5%, respectively; and dividend yields of 0.3%, 0.4%, and 0.7%, respectively. Stock volatility is estimated based on historical data and the impact from expected future trends. Expected lives, which are based on prior experience, averaged 5.6 years for 2021 and 5.7 years for 2020 and 2019. The weighted average grant date fair value of options granted in 2021, 2020 and 2019 was $64.51, $40.28 and $24.72, respectively. Stock option expense is recognized over the vesting period, net of forfeitures. For the years ended December 31, 2021, 2020 and 2019, the intrinsic value of options exercised was $147.3 million, $88.8 million and $46.9 million, respectively. The grant date fair value of options vested during those same periods was $8.3 million, $8.4 million and $7.5 million, respectively. Stock Appreciation Rights Stock appreciation rights (“SARs”) granted to eligible international employees vest in equal annual increments over 4 years of continuous service. All awards expire 10 years from the date of grant. The fair value of each cash-settled SAR is adjusted at the end of each reporting period, with the resulting change reflected in expense. As of December 31, 2021, SARs outstanding were 21,054, all of which were cash-settled. Upon exercise of a cash-settled SAR, the employee receives cash for the difference between the grant date price and the fair market value of the Company’s stock on the date of exercise. As a result of the cash settlement feature, cash-settled SARs are recorded within other long-term liabilities. Upon exercise of a stock-settled SAR, shares are issued in exchange for the exercise price of the stock-settled SAR. As a result of the stock settlement feature, stock-settled SARs are recorded within equity. The following table summarizes changes in outstanding SARs: 2021 2020 2019 SARs outstanding, January 1 27,679 35,993 39,819 Granted 704 3,272 3,364 Exercised (6,029) (11,261) (6,790) Forfeited (1,300) (325) (400) SARs outstanding, December 31 21,054 27,679 35,993 SARs exercisable, December 31 16,644 27,182 27,781 Weighted Average Exercise Price 2021 2020 2019 SARs outstanding, January 1 $ 75.43 $ 52.36 $ 46.48 Granted 319.94 190.97 102.51 Exercised 48.62 35.37 42.08 Forfeited 125.36 71.43 63.43 SARs outstanding, December 31 $ 88.18 $ 75.43 $ 52.36 SARs exercisable, December 31 $ 64.61 $ 40.23 $ 40.73 Performance Awards In addition to stock options and SAR awards, we grant performance share unit (“PSU”) awards to eligible employees. These awards are earned based on the Company’s performance against pre-established targets, including annual growth rate of revenue and return on invested capital, over a specified performance period. Depending on the achievement of the targets, recipients of stock-settled PSU awards are entitled to receive a certain number of shares of common stock, whereas recipients of cash-settled PSU awards are entitled to receive a payment in cash per unit based on the fair market value of a share of our common stock at the end of the performance period. The following table summarizes changes in our outstanding stock-settled PSU awards: 2021 2020 2019 Non-vested stock-settled PSU awards, January 1 222,799 264,622 296,037 Granted at target level 37,701 53,659 84,309 Adjustments above/(below) target 50,965 (14,004) (50,556) Vested and converted (143,465) (70,074) (48,964) Forfeited (3,526) (11,404) (16,204) Non-vested stock-settled PSU awards, December 31 164,474 222,799 264,622 Weighted Average Fair Value 2021 2020 2019 Non-vested stock-settled PSU awards, January 1 $ 116.37 $ 92.80 $ 76.84 Granted at target level 333.58 177.31 103.40 Adjustments above/(below) target 93.38 77.02 83.89 Vested and converted 272.65 173.22 102.51 Forfeited 152.30 104.43 69.09 Non-vested stock-settled PSU awards, December 31 $ 179.88 $ 116.37 $ 92.80 Shares earned under PSU awards may vary from 0% to 200% of an employee’s targeted award. The fair value of stock-settled PSU 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. The weighted average grant date fair value of stock-settled PSU awards granted during the years 2021, 2020 and 2019 was $333.58, $177.31 and $103.40, respectively. Including forfeiture and target achievement expectations, we expect that the stock-settled PSU awards will convert to 144,488 shares to be issued over an average remaining term of one year. The fair value of cash-settled PSU awards is also based on the market price of our stock at the grant date. These awards are revalued at the end of each quarter based on changes in our stock price. As a result of the cash settlement feature, cash-settled PSU awards are recorded within other long-term liabilities. The following table summarizes changes in our outstanding cash-settled PSU awards: 2021 2020 2019 Non-vested cash-settled PSU awards, January 1 2,112 1,981 1,592 Granted at target level 163 732 806 Adjustments above/(below) target 311 (99) (206) Vested and converted (877) (502) (211) Forfeited (391) — — Non-vested cash-settled PSU awards, December 31 1,318 2,112 1,981 Weighted Average Fair Value 2021 2020 2019 Non-vested cash-settled PSU awards, January 1 $ 130.13 $ 93.28 $ 79.48 Granted at target level 320.12 190.71 102.51 Adjustments above/(below) target 91.40 74.43 56.95 Vested and converted 274.29 173.22 102.51 Forfeited 135.64 — — Non-vested cash-settled PSU awards, December 31 $ 169.53 $ 130.13 $ 93.28 Employee Stock Purchase Plan We also offer an Employee Stock Purchase Plan (“ESPP”), which provides for the sale of our common stock to eligible employees at 85% of the current market price on the last trading day of each quarterly offering period. Payroll deductions are limited to 25% of the employee’s base salary, not to exceed $25,000 in any one calendar year. In addition, employees may not buy more than 2,000 shares during any offering period (8,000 shares per year). Purchases under the ESPP were 27,016 shares, 36,494 shares and 51,391 shares for the years 2021, 2020 and 2019, respectively. At December 31, 2021, there were approximately 3,766,202 shares available for issuance under the ESPP. Deferred Compensation Plans and Restricted Share Awards Our deferred compensation plans include a Non-Qualified Deferred Compensation Plan for Non-Employee Directors, under which non-employee directors may defer all or part of their annual cash retainers. The deferred fees may be credited to a stock-equivalent account. Amounts credited to this account are converted into deferred stock units based on the fair market value of one share of our common stock on the last day of the quarter. For deferred stock units ultimately paid in cash, a liability is calculated at an amount determined by multiplying the number of units by the fair market value of our common stock at the end of each reporting period. In addition, deferred stock awards are granted on the date of our annual meeting, and are distributed in shares of common stock. In 2021, we granted 6,034 deferred stock awards, with a weighted grant date fair value of $338.38. In 2020, we granted 10,302 deferred stock awards, with a grant date fair value of $194.29. Similarly, a non-qualified deferred compensation plan for eligible employees provides for the conversion of compensation into deferred stock units. As of December 31, 2021, the two deferred compensation plans held a total of 406,361 deferred stock units, including 8,390 units to be paid in cash. In addition, during 2021, we granted 6,002 restricted share awards at a weighted grant-date fair value of $312.41 per share to employees under the 2016 Plan. During 2020, we granted 8,721 restricted share awards at a weighted grant-date fair value of $200.35 per share to employees under the 2016 Plan. During 2019, we granted 13,308 restricted share awards at a weighted grant-date fair value of $116.39 per share to employees under the 2016 Plan. The fair value of these awards is based on the market price of our stock at the grant date and is recognized as expense over the vesting period. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Certain of our U.S. and international subsidiaries sponsor defined benefit pension plans. In addition, we provide minimal death benefits for certain U.S. retirees and pay a portion of healthcare costs for retired U.S. salaried employees and their dependents. Benefits for participants are coordinated with Medicare when possible. We also sponsor a defined contribution plan for certain salaried and hourly U.S. employees. Our 401(k) plan contributions were $19.5 million for 2021, $16.8 million for 2020 and $15.6 million for 2019. Pension and Other Retirement Benefits The components of net periodic benefit cost and other amounts recognized in OCI were as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2019 2021 2020 2019 Net periodic benefit cost: Service cost $ 1.6 $ 1.5 $ 1.4 $ — $ — $ — Interest cost 6.2 7.1 9.2 0.2 0.2 0.2 Expected return on plan assets (11.9) (11.7) (12.0) — — — Amortization of prior service credit 0.1 0.1 0.1 (0.4) (0.7) (0.7) Amortization of actuarial loss (gain) 1.8 2.0 2.1 (1.6) (1.9) (2.3) Settlement loss 1.8 3.7 3.5 — — — Net periodic benefit cost $ (0.4) $ 2.7 $ 4.3 $ (1.8) $ (2.4) $ (2.8) Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: Net (gain) loss arising during period $ (6.3) $ 1.8 $ 1.5 $ (0.9) $ (0.4) $ 0.1 Prior service credit arising during period (2.0) — — — — — Amortization of prior service credit (0.1) (0.1) (0.1) 0.4 0.7 0.7 Amortization of actuarial (loss) gain (1.8) (2.0) (2.1) 1.6 1.9 2.3 Settlement loss (1.8) (3.7) (3.5) — — — Foreign currency translation (0.9) 1.8 0.6 — — — Total recognized in OCI $ (12.9) $ (2.2) $ (3.6) $ 1.1 $ 2.2 $ 3.1 Total recognized in net periodic benefit cost and OCI $ (13.3) $ 0.5 $ 0.7 $ (0.7) $ (0.2) $ 0.3 Net periodic benefit cost by geographic location is as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2019 2021 2020 2019 U.S. plans $ (2.3) $ 1.2 $ 2.4 $ (1.8) $ (2.4) $ (2.8) International plans 1.9 1.5 1.9 — — — Net periodic benefit cost $ (0.4) $ 2.7 $ 4.3 $ (1.8) $ (2.4) $ (2.8) The service cost component included within net periodic benefit cost is considered employee compensation and is therefore presented within the selling, general, and administrative and costs of goods and services sold financial statement line items of our consolidated statements of income. The remaining components of net periodic benefit cost are reported separately and are therefore presented within the other nonoperating (income) expense financial statement line item of our consolidated statements of income. During 2021, 2020, and 2019 we recorded $1.8 million, $3.7 million, and $3.5 million in pension settlement charges within other nonoperating (income) expense, respectively, as we determined that normal-course lump-sum payments for our U.S. qualified, and in 2020 and 2019 our non-qualified, defined benefit pension plans exceeded the threshold for settlement accounting under U.S. GAAP for the year. Effective January 1, 2019, except for interest crediting, benefit accruals under these defined benefit pension plans ceased. During 2021 and 2020, we did not contribute to our U.S. qualified defined benefit pension plan. The following table presents the changes in the benefit obligation and the fair value of plan assets, as well as the funded status of the plans: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, January 1 $ (298.9) $ (287.9) $ (6.1) $ (6.6) Service cost (1.6) (1.5) — — Interest cost (6.2) (7.1) (0.2) (0.2) Participants’ contributions (0.6) (0.3) (0.5) (0.1) Actuarial (loss) gain 12.1 (22.1) 0.9 0.5 Amendments/transfers in 2.0 — — — Benefits paid 7.1 6.2 0.3 0.3 Curtailment gain — 0.1 — — Settlement loss 13.1 18.6 — — Foreign currency translation 3.2 (4.9) — — Benefit obligation, December 31 $ (269.8) $ (298.9) $ (5.6) $ (6.1) Change in plan assets: Fair value of assets, January 1 $ 258.1 $ 244.1 $ — $ — Actual return on plan assets 6.1 31.8 — — Employer contribution 3.6 4.8 (0.2) 0.2 Participants’ contributions 0.6 0.3 0.5 0.1 Benefits paid (5.2) (6.0) (0.3) (0.3) Settlement loss (13.1) (18.6) — — Foreign currency translation (0.9) 1.7 — — Fair value of assets, December 31 $ 249.2 $ 258.1 $ — $ — Funded status at end of year $ (20.6) $ (40.8) $ (5.6) $ (6.1) International pension plan assets, at fair value, included in the preceding table were $49.3 million and $43.9 million at December 31, 2021 and 2020, respectively. Amounts recognized in the balance sheet were as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Noncurrent assets $ 16.7 $ 12.9 $ — $ — Current liabilities (1.7) (1.6) (0.7) (0.7) Noncurrent liabilities (35.6) (52.1) (4.9) (5.4) $ (20.6) $ (40.8) $ (5.6) $ (6.1) The amounts in accumulated other comprehensive loss, pre-tax, consisted of: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Net actuarial loss (gain) $ 56.5 $ 67.3 $ (4.7) $ (5.4) Prior service cost (credit) (1.3) 0.8 — (0.4) Total $ 55.2 $ 68.1 $ (4.7) $ (5.8) The accumulated benefit obligation for all defined benefit pension plans was $265.2 million and $293.9 million at December 31, 2021 and 2020, respectively, including $73.0 million and $83.1 million, respectively, for international pension plans. As of December 31, 2021, our U.S. and United Kingdom qualified defined benefit pension plan had plan assets in excess of its obligations. As of December 31, 2020, only the U.S. qualified defined benefit pension plan had assets in excess of its obligations. As of December 31, 2021 and December 31, 2020, our other defined benefit pension plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. Benefit payments expected to be paid under our defined benefit pension and other retirement benefit plans in the next ten years are as follows. The U.S. qualified defined benefit pension plan is in the process of being terminated. The expected benefit payments listed correspond to regular ongoing benefit payments expected to be made by the plan during future years, and does not reflect additional disbursements that are expected to be made during 2022 as a result of lump sum offering and annuity purchase related to the plan termination process. ($ in millions) Domestic International Total 2022 $ 13.7 $ 2.4 $ 16.1 2023 14.0 2.4 16.4 2024 13.4 2.7 16.1 2025 12.7 3.1 15.8 2026 11.9 3.6 15.5 2027 to 2031 55.2 19.6 74.8 $ 120.9 $ 33.8 $ 154.7 In 2022, we expect to contribute $0.8 million to pension plans, all of which is in the U.S. In addition, we expect to contribute $0.7 million for other retirement benefits in 2022. We periodically consider additional, voluntary contributions depending on the investment returns generated by pension plan assets, changes in benefit obligation projections and other factors. For the U.S. qualified defined benefit pension plan, a contribution might be needed in order to settle the plan's obligations during the plan termination process. Weighted average assumptions used to determine net periodic benefit cost were as follows: Pension benefits Other retirement benefits 2021 2020 2019 2021 2020 2019 Discount rate 2.29 % 2.61 % 2.70 % 2.30 % 3.20 % 4.20 % Rate of compensation increase 2.41 % 2.33 % 2.41 % — — — Expected long-term rate of return on assets 4.93 % 5.10 % 5.54 % — — — Weighted average assumptions used to determine the benefit obligations were as follows: Pension benefits Other retirement benefits 2021 2020 2021 2020 Discount rate 2.48 % 2.10 % 2.75 % 2.30 % Rate of compensation increase 2.79 % 2.58 % — — The discount rate used to determine the benefit obligations for U.S. pension plans was 2.95% and 2.60% as of December 31, 2021 and 2020, respectively. The weighted average discount rate used to determine the benefit obligations for all international plans was 1.32% and 0.89% as of December 31, 2021 and 2020, respectively. The weighted average rate of compensation increase for all international plans was 2.79% for 2021 and 2.58% for 2020, while there was no rate increase for the U.S. plans since they are frozen. Other retirement benefits were only available to U.S. employees. The expected long-term rate of return for U.S. plans, which accounts for 80.2% of global plan assets, was 5.10% for 2021, 5.10% for 2020 and 5.60% for 2019. The assumed healthcare cost trend rate used to determine benefit obligations was 6.25% for all participants in 2021, decreasing to 5.0% by 2027. The assumed healthcare cost trend rate used to determine net periodic benefit cost was 6.5% for all participants in 2021, decreasing to 5.0% by 2027. The defined pension plan benefit and other retirement plan benefit obligations decreased for the year ended December 31, 2021 primarily due to an increase in the discount rate used to calculate the obligation. The net actuarial losses will be impacted in future periods by actual asset returns, discount rate changes, currency exchange rate fluctuations, actual demographic experience, and certain other factors. The other retirement plan benefit obligation decreased slightly due to the activity mentioned above. The Company has cash balance plans and other plans with promised interest crediting rates. For these plans, the interest crediting rates are set in line with plan rules or country legislation and do not change with market conditions. The weighted average interest crediting rating used to determine net periodic benefit cost by geographic location for our pension plans, at December 31, were as follows: 2021 2020 2019 U.S. plans 3.31 % 3.30 % 3.30 % International plans 0.67 % 0.52 % 0.85 % The weighted average asset allocations by asset category for our pension plans, at December 31, were as follows: 2021 2020 Equity securities 12 % 34 % Debt securities 86 % 64 % Other 2 % 2 % 100 % 100 % Our U.S. pension plan is managed as a balanced portfolio comprised of two components: equity and fixed income debt securities. Equity investments are used to maximize the long-term real growth of fund assets, while fixed income investments are used to generate current income, provide for a more stable periodic return and provide some protection against a prolonged decline in the market value of equity investments. Temporary funds may be held as cash. We maintain a long-term strategic asset allocation policy which provides guidelines for ensuring that the fund’s investments are managed with the short-term and long-term financial goals of the fund, while allowing the flexibility to react to unexpected changes in capital markets. Diversification across and within asset classes is the primary means by which we mitigate risk. We maintain guidelines for all asset and sub-asset categories in order to avoid excessive investment concentrations. Fund assets are monitored on a regular basis. If at any time the fund asset allocation is not within the acceptable allocation range, funds will be reallocated. We also review the fund on a regular basis to ensure that the investment returns received are consistent with the short-term and long-term goals of the fund and with comparable market returns. We are prohibited from pledging fund securities and from investing pension fund assets in our own stock, securities on margin or derivative securities. The following are the U.S. target asset allocations and acceptable allocation ranges: Target allocation Allocation range Equity securities 5% 2% - 8% Debt securities 95% 92% - 98% Other —% 0% - 3% The following tables present the fair value of our pension plan assets, utilizing the fair value hierarchy discussed in Note 12, Fair Value Measurements . In accordance with U.S. GAAP, certain pension plan assets measured at net asset value (“NAV”) have not been classified in the fair value hierarchy. Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2021 Level 1 Level 2 Level 3 Cash $ 1.6 $ 1.6 $ — $ — Equity securities: International mutual funds 21.2 — 21.2 — Fixed income securities: Mutual funds 22.1 — 22.1 — Other mutual funds 4.6 — 4.6 — Pension plan assets in the fair value hierarchy $ 49.5 $ 1.6 $ 47.9 $ — Pension plan assets measured at NAV 199.7 Pension plan assets at fair value $ 249.2 Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2020 Level 1 Level 2 Level 3 Cash $ 1.5 $ 1.5 $ — $ — Equity securities: International mutual funds 20.6 — 20.6 — Fixed income securities: Mutual funds 18.7 — 18.7 — Other mutual funds 2.9 — 2.9 — Pension plan assets in the fair value hierarchy $ 43.7 $ 1.5 $ 42.2 $ — Pension plan assets measured at NAV 214.4 Pension plan assets at fair value $ 258.1 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income) | Other Expense (Income) Other expense (income) consisted of: ($ in millions) 2021 2020 2019 Restructuring and related charges: Severance and post-employment benefits $ 0.6 $ 4.6 $ 2.6 Asset-related charges — — 0.3 Other charges 1.6 — 2.0 Total restructuring and related charges $ 2.2 $ 4.6 $ 4.9 Fixed asset impairments and sale of equipment, net 1.3 7.7 0.8 Argentina currency devaluation — — 1.0 Brazil tax recovery — — (4.7) Development and licensing income (0.9) (0.9) (0.9) Contingent consideration 1.5 1.2 2.1 Foreign exchange transaction gains (1.4) (1.5) (4.6) Cost investment activity 4.3 2.5 — Other items 0.9 (1.6) (1.1) Total other expense (income) $ 7.9 $ 12.0 $ (2.5) Restructuring and Related Charges In July 2020, our Board of Directors approved a restructuring plan designed to optimize certain organizational structures within the Company to better support our continued growth and business priorities. These changes are expected to be implemented over a period of up to twenty-four months from the date of the approval. The plan was originally expected to require restructuring and related charges of approximately $15 million to $17 million, with annualized savings being in the range of $3.5 million to $4.5 million. Due to the recent increase in customer demand, the Company will no longer proceed with certain portions of the plan, thus reducing the total expected charges to be approximately $7 million to $8 million. Similarly, annualized savings are now expected to be in the range of $0.9 million to $1.6 million. Since its approval, we recorded a net pre-tax amount equal to $6.8 million in restructuring related charges associated with this plan. The following table presents activity related to our restructuring obligations related to our 2020 restructuring plan: ($ in millions) Severance and benefits Other charges Total Balance, December 31, 2020 $ 4.6 $ — $ 4.6 Charges 0.6 1.6 2.2 Cash payments (2.4) (1.1) (3.5) Balance, December 31, 2021 $ 2.8 $ 0.5 $ 3.3 In February 2018, our Board of Directors approved a restructuring plan designed to realign our manufacturing capacity with demand. These changes were expected to be implemented over a period of up to twenty-four months from the date of the approval. The plan was expected to require restructuring and related charges of approximately $16.0 million. Since its approval, we recorded $13.7 million in restructuring and related charges associated with this plan. The plan is now considered complete. During 2019, we recorded $4.9 million in restructuring and related charges associated with this plan, consisting of $2.6 million for severance charges, $0.3 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $2.0 million for other non-cash charges. The following table presents activity related to our restructuring obligations related to our 2018 restructuring plan: ($ in millions) Severance and benefits Total Balance, December 31, 2019 $ 1.4 $ 1.4 Cash payments (1.3) (1.3) Balance, December 31, 2020 $ 0.1 $ 0.1 Cash payments (0.1) (0.1) Balance, December 31, 2021 $ — $ — On February 15, 2016, our Board of Directors approved a restructuring plan designed to repurpose several of our production facilities in support of growing high-value proprietary products and to realign operational and commercial activities to meet the needs of our new market-focused commercial organization. During 2019, we recorded $0.3 million in additional charges related to this restructuring plan. Our remaining restructuring obligations related to our 2016 restructuring plan are complete. Other During 2021, specific to our cost method investments, we recorded a total impairment charge of $4.6 million which was offset by a net gain of $0.3 million on the sale of a cost investment. During 2020, specific to our cost method investments, we recorded a total impairment charge of $2.5 million. During 2019, we recorded a charge of $1.0 million as a result of the continued devaluation of Argentina’s currency. During 2019, we recognized a tax recovery of $4.7 million related to previously-paid international excise taxes, following a favorable court ruling. During 2021, 2020 and 2019, we recorded development income of $0.9 million in each year, related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of the SmartDose technology platform within a specific therapeutic area. Please refer to Note 3, Revenue , for additional information. Contingent consideration represents changes in the fair value of the SmartDose contingent consideration. Please refer to Note 12, Fair Value Measurements |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a global organization, we and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2021, the statute of limitations for the U.S. federal tax years 2017 through 2021 remain open to examination. For U.S. state and local jurisdictions, tax years 2013 through 2021 are open to examination. We are also subject to examination in various foreign jurisdictions for tax years 2014 through 2021. A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows: ($ in millions) 2021 2020 Balance at January 1 $ 10.4 $ 5.0 Increase due to current year position 16.3 4.9 (Decrease) increase due to prior year position (1.0) 0.6 Reduction for expiration of statute of limitations/audits (0.8) (0.1) Balance at December 31 $ 24.9 $ 10.4 In addition, we had balances in accrued liabilities for interest and penalties of $0.5 million and $0.3 million at December 31, 2021 and 2020, respectively. As of December 31, 2021, we had $24.9 million of total gross unrecognized tax benefits, which, if recognized, $16.7 million would favorably impact the effective income tax rate. It is reasonably possible that, due to the expiration of statutes and the closing of tax audits, the amount of gross unrecognized tax benefits may be reduced by approximately $0.4 million during the next twelve months, which would favorably impact our effective tax rate. The components of income before income taxes are: ($ in millions) 2021 2020 2019 U.S. operations $ 420.0 $ 227.0 $ 161.2 International operations 328.9 174.3 130.6 Total income before income taxes $ 748.9 $ 401.3 $ 291.8 The related provision for income taxes consists of: ($ in millions) 2021 2020 2019 Current: Federal $ 64.8 $ 28.9 $ 10.8 State 10.9 3.4 2.4 International 74.4 46.0 30.5 Current income tax provision 150.1 78.3 43.7 Deferred: Federal and state 7.3 0.2 10.3 International (50.2) (6.0) 5.0 Deferred income tax provision (42.9) (5.8) 15.3 Income tax expense $ 107.2 $ 72.5 $ 59.0 Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of our deferred tax assets and liabilities at December 31 are : ($ in millions) 2021 2020 Deferred tax assets Net operating loss carryforwards $ 14.0 $ 21.4 Tax credit carryforwards 1.5 2.0 Pension and deferred compensation 31.6 35.3 Royalty acceleration 45.1 — Other 12.2 11.0 Valuation allowance (12.2) (15.1) Total deferred tax assets 92.2 54.6 Deferred tax liabilities: Property, plant, and equipment 47.2 42.1 Tax on undistributed earnings of subsidiaries 1.8 6.5 Other (0.4) 0.4 Total deferred tax liabilities 48.6 49.0 Net deferred tax asset (liability) $ 43.6 $ 5.6 A reconciliation of the U.S. federal corporate tax rate to our effective consolidated tax rate on income before income taxes is as follows: 2021 2020 2019 U.S. federal corporate tax rate 21.0 % 21.0 % 21.0 % Tax on international operations other than U.S. tax rate 1.9 1.2 2.7 Adjustments to reserves for unrecognized tax benefits 0.1 1.4 0.4 U.S. tax on international earnings, net of foreign tax credits 0.3 0.4 0.4 Foreign-Derived Intangible Income Deductions (FDII) (1.5) (1.1) (0.6) State income taxes, net of federal tax effect (0.1) 1.2 1.4 U.S. research and development credits (0.4) (0.7) (1.0) Excess tax benefits on share-based payments (4.2) (5.2) (3.5) Royalty acceleration (2.5) — — Tax on undistributed earnings of subsidiaries (0.6) 0.1 (0.2) Other 0.3 (0.2) (0.4) Effective tax rate 14.3 % 18.1 % 20.2 % During 2021, we recorded a tax benefit of $1.4 million due to the impact of tax law changes enacted during the year, a tax benefit of $18.5 million due to the Company's prepayment of future royalties from one of its subsidiaries, and a tax benefit of $31.5 million associated with stock-based compensation. During 2020, we recorded a tax benefit of $0.5 million due to the impact of tax law changes enacted during the year and a tax benefit of $20.8 million associated with stock-based compensation. During 2019, we recorded a net tax benefit of $0.3 million for the estimated impact of the 2017 Tax Act and a tax benefit of $10.3 million associated with stock-based compensation. State operating loss carryforwards of $138.6 million created a deferred tax asset of $10.6 million, while foreign operating loss carryforwards of $20.0 million created a deferred tax asset of $3.4 million. Management estimates that certain state and foreign operating loss carryforwards are unlikely to be utilized and the associated deferred tax assets have been fully reserved. In 2021, it was determined that $4.4 million of previously reserved state loss carryforwards were more likely than not to be utilized prior to expiration. State loss carryforwards expire as follows: $7.8 million in 2022 and $130.8 million thereafter. Foreign loss carryforwards will begin to expire in 2030, while $18.0 million of the total $20.0 million will not expire. During 2019, we utilized all of our remaining U.S. federal research and development credit carryforwards. State research and development credit carryforwards of $1.0 million created a deferred tax asset of $0.8 million. As of December 31, 2021, $0.4 million of state research and development credits expire in 2025. In response to the 2017 Tax Act, we reevaluated our position regarding permanent reinvestment of foreign subsidiary earnings and profits through 2017 (with the exception of China and Mexico) and decided that those profits were no longer permanently reinvested. As of January 1, 2018, we reasserted indefinite reinvestment related to all post-2017 unremitted earnings in all of our foreign subsidiaries. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is de minimis, and that position has not changed subsequent to the one-time transition tax under the 2017 Tax Act, except as noted above. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of approximately $635.3 million of undistributed earnings from foreign subsidiaries to the U.S., as those earnings continue to be permanently reinvested. Further, it is impracticable for us to estimate any future tax costs for any unrecognized deferred tax liabilities associated with our indefinite reinvestment assertion, because the actual tax liability, if any, would be dependent on complex analysis and calculations considering various tax laws, exchange rates, circumstances existing when there is a repatriation, sale or liquidation, or other factors. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At December 31, 2021, we were obligated under various operating lease agreements. Please refer to Note 6, Leases , for additional details. At December 31, 2021, we were obligated under various defined benefit pension plans in the U.S. and other countries that cover employees who meet eligibility requirements. Please refer to Note 15, Benefit Plans , for additional details. At December 31, 2021, our outstanding unconditional contractual commitments, including for the purchase of raw materials and finished goods, amounted to $93.6 million, the majority of which is to be paid in the next two years, with $48.3 million due to be paid in 2022. We have letters of credit totaling $2.4 million supporting the reimbursement of workers’ compensation and other claims paid on our behalf by insurance carriers. Our accrual for insurance obligations was $3.1 million at December 31, 2021, of which $0.9 million is in excess of our deductible and, therefore, is reimbursable by the insurance company. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationOur business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment and drug delivery products, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. The Chief Operating Decision Maker ("CODM") evaluates the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that the CODM considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. The segment operating profit metric is what the CODM uses in evaluating our results of operations and the financial measure that provides a valuable insight into our overall performance and financial position. The following table presents net sales information about our reportable segments, reconciled to consolidated totals: ($ in millions) 2021 2020 2019 Net sales: Proprietary Products $ 2,317.3 $ 1,648.6 $ 1,398.6 Contract-Manufactured Products 514.7 498.6 441.5 Intersegment sales elimination (0.4) (0.3) (0.2) Consolidated net sales $ 2,831.6 $ 2,146.9 $ 1,839.9 The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments. We do not have any customers accounting for greater than 10% of consolidated net sales. The following table presents net sales and long-lived assets, by the country in which the legal subsidiary is domiciled and assets are located: Net Sales Long-Lived Assets ($ in millions) 2021 2020 2019 2021 2020 United States $ 1,198.0 $ 975.6 $ 814.7 $ 504.1 $ 407.8 Germany 474.3 282.1 236.3 124.1 112.0 Ireland 247.6 226.0 173.8 187.3 197.6 France 213.0 172.7 150.6 86.1 76.0 Other European countries 341.3 236.8 251.1 65.1 66.8 Other 357.4 253.7 213.4 160.1 151.3 $ 2,831.6 $ 2,146.9 $ 1,839.9 $ 1,126.8 $ 1,011.5 The following tables provide summarized financial information for our segments: ($ in millions) 2021 2020 2019 Proprietary Products $ 796.1 $ 434.5 $ 313.6 Contract-Manufactured Products 67.2 68.6 49.1 Total business segment operating profit $ 863.3 $ 503.1 $ 362.7 Corporate and Unallocated Stock-based compensation expense $ (37.5) $ (34.0) $ (24.4) Corporate general costs (1) (63.4) (52.1) (41.9) Unallocated Items: Restructuring and severance related charges (2) (2.2) (7.0) (4.9) Amortization of acquisition-related intangible assets (3) (0.8) (0.6) — Asset impairment (4) (2.8) — — Cost investment activity (5) (4.3) (2.5) — Gain on restructuring-related sale of assets — — 1.7 Argentina currency devaluation — — (1.0) Tax recovery (6) — — 4.4 Total Corporate and Unallocated (111.0) (96.2) (66.1) Total consolidated operating profit $ 752.3 $ 406.9 $ 296.6 Other expense/(income), net 3.4 5.6 4.8 Income before income taxes $ 748.9 $ 401.3 $ 291.8 (1) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. (2) During 2021 and 2020, the Company recorded a restructuring and severance related charge of $2.2 million and $7.0 million, respectively, to optimize certain organizational structure within the Company. During 2019, the Company recorded $4.9 million in restructuring and related charges in connection with the 2018 plan. (3) During 2021, the company recorded $0.8 million of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020. During 2020, the company recorded $0.6 million of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020. (4) The Company recorded a $2.8 million impairment charge for certain long-lived and intangible assets within the Proprietary Products segment as it determined the carrying value was not fully recoverable. $1.9 million of this charge is recorded in Cost of Goods Sold and $0.9 million of the charge is recorded in Selling, General, and Administrative expense, due to the nature of the impaired assets. (5) During 2021, the net cost investment activity was equal to $4.3 million, inclusive of an impairment charge of $4.6 million partially offset by a $0.3 million gain on the sale of a cost investment. During 2020, the Company recorded a cost investment impairment charge of $2.5 million. (6) During the twelve months ended December 31, 2019, the Company recorded a net tax recovery of $4.4 million related to previously-paid international excise taxes, following a favorable court ruling. Please refer to Note 16, Other Expense (Income) , for further discussion of unallocated items. The following tables provide summarized financial information for our two reportable segments and corporate and unallocated: ($ in millions) Assets 2021 2020 Proprietary Products $ 2,152.6 $ 1,798.3 Contract-Manufactured Products 443.7 411.6 Corporate and Unallocated 717.5 583.9 Total consolidated $ 3,313.8 $ 2,793.8 ($ in millions) Depreciation and Amortization 2021 2020 2019 Proprietary Products $ 93.8 $ 84.6 $ 82.2 Contract-Manufactured Products 21.1 20.4 17.9 Corporate and Unallocated 7.4 4.1 3.3 Total consolidated $ 122.3 $ 109.1 $ 103.4 ($ in millions) Capital Expenditures 2021 2020 2019 Proprietary Products $ 218.0 $ 139.5 $ 88.7 Contract-Manufactured Products 26.6 25.0 36.1 Corporate and Unallocated 8.8 9.9 1.6 Total consolidated $ 253.4 $ 174.4 $ 126.4 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts ($ in millions) Balance at beginning of period Charged to costs and expenses Deductions (1) Balance at end of period For the year ended December 31, 2021 Allowances deducted from assets: Deferred tax asset valuation allowance $ 15.1 $ (2.9) $ — $ 12.2 Allowance for doubtful accounts 1.1 (0.7) — 0.4 Total allowances deducted from assets $ 16.2 $ (3.6) $ — $ 12.6 For the year ended December 31, 2020 Allowances deducted from assets: Deferred tax asset valuation allowance $ 15.9 $ — $ (0.8) $ 15.1 Allowance for doubtful accounts 0.5 0.7 (0.1) 1.1 Total allowances deducted from assets $ 16.4 $ 0.7 $ (0.9) $ 16.2 For the year ended December 31, 2019 Allowances deducted from assets: Deferred tax asset valuation allowance $ 16.0 $ — $ (0.1) $ 15.9 Allowance for doubtful accounts 2.0 0.1 (1.6) 0.5 Total allowances deducted from assets $ 18.0 $ 0.1 $ (1.7) $ 16.4 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of West after the elimination of intercompany transactions. We have no participation or other rights in variable interest entities. In April 2019, we acquired the business of our distributor in South Korea for $18.9 million. As a result of the acquisition, we recorded inventories, property, plant and equipment, goodwill and a customer relationships intangible asset of $4.5 million, $0.6 million, $2.6 million and $11.2 million, respectively. The goodwill was recorded within our Proprietary Products reportable segment. The results of this acquisition have been included in our consolidated financial statements since the acquisition date. |
Use of Estimates | Use of Estimates: The financial statements are prepared in conformity with U.S. GAAP. These principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies in the financial statements. Actual amounts realized may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents include time deposits, certificates of deposit and all highly liquid short-term instruments with maturities of three months or less at the time of purchase. |
Accounts Receivable | Accounts Receivable: Our accounts receivable balance was net of an allowance for doubtful accounts of $0.4 million and $1.1 million at December 31, 2021 and 2020, respectively. Under the current expected credit loss model, we have adopted a provision matrix approach, utilizing historical loss rates based on the number of days past due, adjusted to reflect current economic conditions and forecasts of future economic conditions. |
Inventories | Inventories: Inventories are valued at the lower of cost (on a first-in, first-out basis) and net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment : Property, plant and equipment assets are carried at cost. Maintenance and minor repairs and renewals are charged to expense as incurred. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and immediately expensed for preliminary project activities or post-implementation activities. Upon sale or retirement of depreciable assets, costs and related accumulated depreciation are eliminated, and gains or losses are recognized in other expense (income). Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the assets, or the remaining term of the lease, if shorter. |
Leases | Leases: Operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets : Long-lived assets, including property, plant and equipment and operating lease right-of-use assets, are tested for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. An asset is considered impaired if the carrying value of the asset exceeds the sum of the future expected undiscounted cash flows to be derived from the asset. Once an asset is considered impaired, an impairment loss is recorded within other expense (income) for the difference between the asset’s carrying value and its fair value. For assets held and used in the business, management determines fair value using estimated future cash flows to be derived from the asset, discounted to a net present value using an appropriate discount rate. For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs. |
Impairment of Goodwill and Other Intangible Assets | Impairment of Goodwill and Other Intangible Assets: Goodwill is tested for impairment at least annually, following the completion of our annual budget and long-range planning process, or whenever circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the same as, or one level below, our operating segments. A goodwill impairment charge represents the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Accounting guidance also allows entities to first assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance, to determine whether it is necessary to perform the quantitative goodwill impairment test. We elected to follow this guidance for our annual impairment test. Based upon our assessment, we determined that it was not more likely than not that the fair value of each of our reporting units was less than its carrying amount and determined that it was not necessary to perform the quantitative goodwill impairment test. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives of 3 to 25 years, and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. |
Employee Benefits | Employee Benefits: The measurement of the obligations under our defined benefit pension and postretirement medical plans are subject to a number of assumptions. These include the rate of return on plan assets (for funded plans) and the rate at which the future obligations are discounted to present value. For our funded plans, we consider the current and expected asset allocations of our plan assets, as well as historical and expected rates of return, in estimating the long-term rate of return on plan assets. U.S. GAAP requires the recognition of an asset or liability for the funded status of a defined benefit postretirement plan, as measured by the difference between the fair value of plan assets, if any, and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement plan, such as a retiree health plan, the benefit obligation is the accumulated postretirement benefit obligation. Please refer to Note 15, Benefit Plans |
Financial Instruments | Financial Instruments : All derivatives are recognized as either assets or liabilities in the balance sheet and recorded at their fair value. For a derivative designated as hedging the exposure to variable cash flows of a forecasted transaction (referred to as a cash flow hedge), the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (“OCI”), net of tax, and subsequently reclassified into earnings when the forecasted transaction affects earnings. For a derivative designated as hedging the exposure to changes in the fair value of a recognized asset or liability or a firm commitment (referred to as a fair value hedge), the derivative’s gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item. For a derivative designated as hedging the foreign currency exposure of a net investment in a foreign operation, the gain or loss is reported in OCI, net of tax, as part of the cumulative translation adjustment. The ineffective portion of any derivative used in a hedging transaction is recognized immediately into earnings. Derivative financial instruments that are not designated as hedges are also recorded at fair value, with the change in fair value recognized immediately into earnings. We do not purchase or hold any derivative financial instrument for investment or trading purposes. |
Foreign Currency Translation | Foreign Currency Translation : Foreign currency transaction gains and losses are recognized in the determination of net income. Foreign currency translation adjustments of subsidiaries and affiliates operating outside of the U.S. are accumulated in other comprehensive loss, a separate component of equity. |
Revenue Recognition | Revenue Recognition: Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with Accounting Standards Codification ("ASC") 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service. We have elected to disregard the effects of a significant financing component, as we expect, at the inception of our contracts, that the period between when we transfer a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In addition, we have elected to omit the disclosure of the majority of our remaining performance obligations, which are satisfied within one year or less. |
Shipping and Handling Costs | Shipping and Handling Costs : Shipping and handling costs are included in cost of goods and services sold. Shipping and handling costs billed to customers in connection with the sale are included in net sales. |
Research and Development | Research and Development: Research and development expenditures are for the creation, engineering and application of new or improved products and processes. Expenditures include primarily salaries and outside services for those directly involved in research and development activities and are primarily expensed as incurred. |
Environmental Remediation and Compliance Costs | Environmental Remediation and Compliance Costs: Environmental remediation costs are accrued when such costs are probable and reasonable estimates are determinable. Cost estimates include investigation, cleanup and monitoring activities; such estimates are adjusted, if necessary, based on additional findings. Environmental compliance costs are expensed as incurred as part of normal operations. |
Litigation | Litigation : From time to time, we are involved in legal proceedings, investigations and claims generally incidental to our normal business activities. In accordance with U.S. GAAP, 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. These estimates are based on an analysis made by internal and external legal counsel considering information known at the time. Legal costs in connection with loss contingencies are expensed as incurred. |
Income Taxes | Income Taxes: Deferred income taxes are recognized by applying enacted statutory tax rates to tax loss carryforwards and temporary differences between the tax basis and financial statement carrying values of our assets and liabilities. The enacted statutory tax rate applied is based on the rate expected to be applicable at the time of the forecasted utilization of the loss carryforward or reversal of the temporary difference. Valuation allowances on deferred tax assets are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The realizability of deferred tax assets is subject to our estimates of future taxable income, generally at the respective subsidiary company and the country level. Please refer to Note 17, Income Taxes , for additional information. We recognize interest costs related to income taxes in interest expense and penalties within other expense (income). The tax law ordering approach is used for purposes of determining whether an excess tax benefit has been realized during the year. |
Stock-based Compensation | Stock-Based Compensation: Under the fair value provisions of U.S. GAAP, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the grant date, we use the Black-Scholes valuation model. |
Net Income Per Share | Net Income Per Share : Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income per share assuming dilution considers the dilutive effect of outstanding stock options and other stock awards based on the treasury stock method. The treasury stock method assumes the use of exercise proceeds to repurchase common stock at the average fair market value in the period. |
New Accounting Standards | Standards Issued Not Yet Adopted In March 2020, the Financial Accounting Standards Board ("FASB") issued guidance which provides optional expedients and exceptions to address the impact of reference rate reform where contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate need to be discontinued. This guidance was effective upon issuance and generally can be applied through December 31, 2022. We have identified the contracts impacted by reference rate reform, and have executed certain amendments to replace the use of LIBOR. We are currently working with counterparties to identify alternative reference rates to be used in any remaining contracts that have not yet been amended. The Company does not expect such adoption to cause a material impact to the consolidated financial statements. In November 2021, the FASB issued guidance that seeks to improve the transparency of financial disclosures for government assistance received by business entities. The amendment requires disclosures for transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This guidance is effective for fiscal years beginning after December 15, 2021. We are currently evaluating the impact of this guidance on our financial statements and disclosures. The Company does not expect such adoption to cause a material impact to the consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Inventories | The following is a summary of inventories at December 31: ($ in millions) 2021 2020 Raw materials $ 153.8 $ 133.5 Work in process 63.5 54.9 Finished goods 161.1 132.9 $ 378.4 $ 321.3 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the approximate percentage of our net sales by market group: 2021 2020 2019 Biologics 41 % 31 % 25 % Generics 17 % 20 % 20 % Pharma 24 % 26 % 31 % Contract-Manufactured Products 18 % 23 % 24 % 100 % 100 % 100 % The following table presents the approximate percentage of our net sales by product category: 2021 2020 2019 High-Value Product Components 54 % 46 % 42 % High-Value Product Delivery Devices 5 % 5 % 5 % Standard Packaging 23 % 26 % 29 % Contract-Manufactured Products 18 % 23 % 24 % 100 % 100 % 100 % The following table presents the approximate percentage of our net sales by geographic location: 2021 2020 2019 Americas 45 % 48 % 48 % Europe, Middle East, Africa 45 % 43 % 44 % Asia Pacific 10 % 9 % 8 % 100 % 100 % 100 % |
Schedule of Change in Contract with Customer, Asset and Liability | The following table summarizes our contract assets and liabilities, excluding amounts included in accounts receivable, net: ($ in millions) Contract assets, December 31, 2020 $ 10.9 Contract assets, December 31, 2021 14.6 Change in contract assets - increase (decrease) $ 3.7 Deferred income, December 31, 2020 $ (57.1) Deferred income, December 31, 2021 (61.3) Change in deferred income - (increase) decrease $ (4.2) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic to Diluted Net Income Per Share | The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share: (in millions) 2021 2020 2019 Net income $ 661.8 $ 346.2 $ 241.7 Weighted average common shares outstanding 74.4 73.9 74.0 Dilutive effect of equity awards, based on the treasury stock method 1.9 1.9 1.4 Weighted average shares assuming dilution 76.3 75.8 75.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of gross property, plant and equipment at December 31 is presented in the following table: ($ in millions) Expected useful lives (years) 2021 2020 Land $ 29.3 $ 24.8 Buildings and improvements 15-35 644.8 618.1 Machinery and equipment 5-12 976.1 911.8 Molds and dies 4-7 139.5 131.2 Computer hardware and software 3-10 182.6 157.5 Construction in progress 242.7 192.1 $ 2,215.0 $ 2,035.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows: ($ in millions) 2021 2020 2019 Operating lease cost $ 12.7 $ 12.8 $ 12.9 Short-term lease cost 1.3 0.8 0.8 Variable lease cost 4.8 3.8 3.3 Total lease cost $ 18.8 $ 17.4 $ 17.0 |
Cash Flow and Supplemental information | Supplemental information related to leases was as follows: ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.1 $ 12.6 $ 12.5 Right-of-use assets obtained in exchange for new operating lease liabilities 13.3 6.1 9.1 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2021 were as follows: ($ in millions) Operating Year Leases 2022 $ 11.5 2023 10.7 2024 10.0 2025 8.2 2026 7.3 Thereafter 38.7 86.4 Less: imputed lease interest (14.1) Total lease liabilities $ 72.3 |
Affiliated Companies (Tables)
Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | At December 31, 2021, the following affiliated companies were accounted for under the equity method: Location Ownership interest The West Company Mexico, S.A. de C.V. Mexico 49% Aluplast S.A. de C.V. Mexico 49% Pharma Tap S.A. de C.V. Mexico 49% Pharma Rubber S.A. de C.V. Mexico 49% Daikyo Japan 49% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment were as follows: ($ in millions) Proprietary Products Contract-Manufactured Products Total Balance, December 31, 2019 $ 78.1 $ 29.7 $ 107.8 Foreign currency translation 2.8 0.5 3.3 Balance, December 31, 2020 80.9 30.2 111.1 Goodwill recorded due to acquisition 1.7 — 1.7 Goodwill impairment charge (0.1) — (0.1) Foreign currency translation (2.4) (0.4) (2.8) Balance, December 31, 2021 $ 80.1 $ 29.8 $ 109.9 |
Schedule of Intangible Assets by Major Class | Intangible assets and accumulated amortization as of December 31 were as follows: 2021 2020 ($ in millions) Cost Accumulated amortization Net Cost Accumulated amortization Net Patents and licensing $ 25.1 $ (19.4) $ 5.7 $ 25.9 $ (17.9) $ 8.0 Technology 3.3 (2.0) 1.3 3.3 (1.7) 1.6 Trademarks 2.0 (1.9) 0.1 2.0 (1.8) 0.2 Customer relationships 40.1 (25.4) 14.7 40.9 (23.4) 17.5 Customer contracts 10.6 (9.4) 1.2 11.1 (7.9) 3.2 $ 81.1 $ (58.1) $ 23.0 $ 83.2 $ (52.7) $ 30.5 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities as of December 31 included the following: ($ in millions) 2021 2020 Deferred income $ 48.7 $ 51.0 Dividends payable 13.4 12.6 Accrued commissions, rebates and royalties 38.7 10.0 Accrued retirement plans (excluding pension) 8.8 8.4 Accrued taxes other than income 13.0 15.4 Accrued professional services 3.7 3.7 Accrued interest 3.2 3.3 Restructuring and severance related charges 4.6 7.8 Short term derivative instruments 3.3 9.5 Other 26.0 21.9 Total other current liabilities $ 163.4 $ 143.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Obligations, Net of Current Maturities | The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities, at December 31. The interest rates shown in parentheses are as of December 31, 2021. ($ in millions) 2021 2020 Term Loan, due December 31, 2024 (1.10%) $ 85.5 $ 87.7 Series A notes, due July 5, 2022 (3.67%) 42.0 42.0 Series B notes, due July 5, 2024 (3.82%) 53.0 53.0 Series C notes, due July 5, 2027 (4.02%) 73.0 73.0 253.5 255.7 Less: unamortized debt issuance costs 0.5 0.5 Total debt 253.0 255.2 Less: current portion of long-term debt 44.2 2.3 Long-term debt, net $ 208.8 $ 252.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Contracts | As of December 31, 2021, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD EUR USD 18.1 15.1 JPY 7,510.0 28.4 33.8 SGD 17.9 11.3 1.7 |
Schedule of Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings | The following table summarizes the effects of derivative instruments designated as fair value hedges in our consolidated statements of income for the years ended December 31: Amount of Gain (Loss) Recognized in Income Location on Statement of Income ($ in millions) 2021 2020 2019 Fair Value Hedges: Hedged item (intercompany loan) $ (22.1) $ 28.5 $ (15.3) Other expense (income) Derivative designated as hedging instrument 22.1 (28.5) 15.3 Other expense (income) Amount excluded from effectiveness testing 3.0 6.1 6.9 Other expense (income) Total $ 3.0 $ 6.1 $ 6.9 The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on OCI and earnings, net of tax, for the years ended December 31: Amount of Gain (Loss) Recognized in OCI ($ in millions) 2021 2020 2019 Fair Value Hedges: Foreign currency hedge contracts $ 0.6 $ 4.0 $ 4.8 Total $ 0.6 $ 4.0 $ 4.8 Cash Flow Hedges: Foreign currency hedge contracts $ (0.2) $ (0.6) $ 0.8 Foreign currency hedge contracts (1.8) (0.6) (0.2) Forward treasury locks — — — Total $ (2.0) $ (1.2) $ 0.6 Net Investment Hedges: Foreign currency-denominated debt — — 0.6 Cross-currency swap 7.7 (3.2) (1.1) Total $ 7.7 $ (3.2) $ (0.5) Amount of (Gain) Loss Reclassified from Accumulated OCI into Income Location of (Gain) Loss Reclassified from Accumulated OCI into Income ($ in millions) 2021 2020 2019 Fair Value Hedges: Foreign currency hedge contracts $ (0.8) $ (4.3) $ (4.6) Other expense (income) Total $ (0.8) $ (4.3) $ (4.6) Cash Flow Hedges: Foreign currency hedge contracts $ 0.9 $ 0.2 $ (0.9) Net sales Foreign currency hedge contracts 1.7 (0.1) (0.6) Cost of goods and services sold Forward treasury locks 0.3 0.3 0.3 Interest expense Total $ 2.9 $ 0.4 $ (1.2) Net Investment Hedges: Foreign currency-denominated debt $ — $ — $ — Other expense (income) Cross-currency swap — — — Other expense (income) Total $ — $ — $ — The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our consolidated statements of income for the years ended December 31: ($ in millions) 2021 2020 2019 Net sales $ 0.9 $ 0.2 $ (0.9) Cost of goods and services sold 1.7 (0.1) (0.6) Other expense (income) (0.8) (4.3) (4.6) Interest expense 0.3 0.3 0.3 |
Derivatives Not Designated as Hedging Instruments | The following table summarizes the effects of derivative instruments not designated as hedges in our consolidated statements of income for the years ended December 31: Amount of Gain (Loss) Recognized in Income Location on Statement of Income ($ in millions) 2021 2020 2019 Commodity call options $ 1.7 $ (0.2) $ (0.4) Other expense (income) Total $ 1.7 $ (0.2) $ (0.4) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 15.5 $ 15.5 $ — $ — Foreign currency contracts 14.8 — 14.8 — Cross-currency swap 4.4 — 4.4 — Commodity call options 1.7 — 1.7 — $ 36.4 $ 15.5 $ 20.9 $ — Liabilities: Contingent consideration $ 3.7 $ — $ — $ 3.7 Deferred compensation liabilities 16.1 16.1 — — Foreign currency contracts 3.4 — 3.4 — $ 23.2 $ 16.1 $ 3.4 $ 3.7 Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 12.8 $ 12.8 $ — $ — Foreign currency contracts 3.0 — 3.0 — Commodity call options 0.3 — 0.3 — $ 16.1 $ 12.8 $ 3.3 $ — Liabilities: Contingent consideration $ 3.6 $ — $ — $ 3.6 Deferred compensation liabilities 14.5 14.5 — — Cross-currency swap 5.6 — 5.6 — Foreign currency contracts 9.7 — 9.7 — $ 33.4 $ 14.5 $ 15.3 $ 3.6 |
Schedule of Changes in Level 3 Fair Value Measurements | The following table provides a summary of changes in our Level 3 fair value measurements: ($ in millions) Balance, December 31, 2019 $ 3.3 Increase in fair value recorded in earnings 1.2 Payments (0.9) Balance, December 31, 2020 3.6 Increase in fair value recorded in earnings 1.5 Payments (1.4) Balance, December 31, 2021 $ 3.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The following table presents the changes in the components of accumulated other comprehensive loss, net of tax: ($ in millions) (Losses) gains on derivatives Change in equity affiliate investment AOCI Defined benefit pension and other postretirement plans Foreign currency translation Total Balance, December 31, 2018 $ (0.4) $ 0.4 $ (40.4) $ (113.8) (154.2) Other comprehensive income (loss) before reclassifications 5.4 — (1.9) 4.9 8.4 Amounts reclassified out (5.8) — 2.0 — (3.8) Other comprehensive (loss) income, net of tax (0.4) — 0.1 4.9 4.6 Balance, December 31, 2019 (0.8) 0.4 (40.3) (108.9) (149.6) Other comprehensive income (loss) before reclassifications 2.8 0.2 (2.5) 40.1 40.6 Amounts reclassified out (3.9) — 2.3 — (1.6) Other comprehensive (loss) income, net of tax (1.1) 0.2 (0.2) 40.1 39.0 Balance, December 31, 2020 (1.9) 0.6 (40.5) (68.8) (110.6) Other comprehensive income (loss) before reclassifications (1.4) 0.9 7.4 (59.3) (52.4) Amounts reclassified out 2.1 — 1.3 — 3.4 Other comprehensive income (loss), net of tax 0.7 0.9 8.7 (59.3) (49.0) Balance, December 31, 2021 $ (1.2) $ 1.5 $ (31.8) $ (128.1) $ (159.6) |
Schedule of 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): Detail of components 2021 2020 2019 Location on Statement of Income Gains (losses) on derivatives: Foreign currency contracts $ (1.1) $ (0.2) $ 1.0 Net sales Foreign currency contracts (2.4) 0.1 1.0 Cost of goods and services sold Foreign currency contracts 1.2 5.9 6.9 Other expense (income) Forward treasury locks (0.4) (0.4) (0.5) Interest expense Total before tax (2.7) 5.4 8.4 Tax benefit (expense) 0.6 (1.5) (2.6) Net of tax $ (2.1) $ 3.9 $ 5.8 Amortization of defined benefit pension and other postretirement plans: Prior service credit $ 0.3 $ 0.6 $ 0.6 (a) Actuarial (losses) gains (0.2) (0.1) 0.2 (a) Settlements (1.8) (3.7) (3.5) (a) Total before tax (1.7) (3.2) (2.7) Tax benefit (expense) 0.4 0.9 0.7 Net of tax $ (1.3) $ (2.3) $ (2.0) Total reclassifications for the period, net of tax $ (3.4) $ 1.6 $ 3.8 (a) These components are included in the computation of net periodic benefit cost. Please refer to Note 15, Benefit Plans , for additional details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Allocation of Share-based Compensation Costs by Plan | The following table summarizes our stock-based compensation expense recorded within selling, general and administrative expenses for the years ended December 31: ($ in millions) 2021 2020 2019 Stock option and appreciation rights $ 12.5 $ 10.2 $ 9.1 Performance share units, stock-settled 17.6 16.6 9.5 Performance share units, cash-settled 1.0 0.4 0.1 Performance share units, dividend equivalents 0.2 0.6 0.2 Employee stock purchase plan 1.4 1.1 0.9 Deferred compensation plans and restricted share awards 4.8 5.1 4.6 Total stock-based compensation expense $ 37.5 $ 34.0 $ 24.4 |
Schedule of Stock Options Activity | The following table summarizes changes in outstanding options: (in millions, except per share data) 2021 2020 2019 Options outstanding, January 1 2.4 2.7 3.0 Granted 0.1 0.2 0.3 Exercised (0.5) (0.5) (0.6) Forfeited — — — Options outstanding, December 31 2.0 2.4 2.7 Options exercisable, December 31 1.5 1.6 1.6 Weighted Average Exercise Price 2021 2020 2019 Options outstanding, January 1 $ 81.37 $ 67.02 $ 58.93 Granted 280.22 178.11 103.40 Exercised 60.63 49.99 46.42 Forfeited 134.89 103.51 92.71 Options outstanding, December 31 $ 101.73 $ 81.37 $ 67.02 Options exercisable, December 31 $ 73.46 $ 62.42 $ 53.12 |
Schedule of Stock Appreciation Rights Award Activity | The following table summarizes changes in outstanding SARs: 2021 2020 2019 SARs outstanding, January 1 27,679 35,993 39,819 Granted 704 3,272 3,364 Exercised (6,029) (11,261) (6,790) Forfeited (1,300) (325) (400) SARs outstanding, December 31 21,054 27,679 35,993 SARs exercisable, December 31 16,644 27,182 27,781 Weighted Average Exercise Price 2021 2020 2019 SARs outstanding, January 1 $ 75.43 $ 52.36 $ 46.48 Granted 319.94 190.97 102.51 Exercised 48.62 35.37 42.08 Forfeited 125.36 71.43 63.43 SARs outstanding, December 31 $ 88.18 $ 75.43 $ 52.36 SARs exercisable, December 31 $ 64.61 $ 40.23 $ 40.73 |
Schedule of Nonvested Performance-based Share Activity | The following table summarizes changes in our outstanding stock-settled PSU awards: 2021 2020 2019 Non-vested stock-settled PSU awards, January 1 222,799 264,622 296,037 Granted at target level 37,701 53,659 84,309 Adjustments above/(below) target 50,965 (14,004) (50,556) Vested and converted (143,465) (70,074) (48,964) Forfeited (3,526) (11,404) (16,204) Non-vested stock-settled PSU awards, December 31 164,474 222,799 264,622 Weighted Average Fair Value 2021 2020 2019 Non-vested stock-settled PSU awards, January 1 $ 116.37 $ 92.80 $ 76.84 Granted at target level 333.58 177.31 103.40 Adjustments above/(below) target 93.38 77.02 83.89 Vested and converted 272.65 173.22 102.51 Forfeited 152.30 104.43 69.09 Non-vested stock-settled PSU awards, December 31 $ 179.88 $ 116.37 $ 92.80 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes changes in our outstanding cash-settled PSU awards: 2021 2020 2019 Non-vested cash-settled PSU awards, January 1 2,112 1,981 1,592 Granted at target level 163 732 806 Adjustments above/(below) target 311 (99) (206) Vested and converted (877) (502) (211) Forfeited (391) — — Non-vested cash-settled PSU awards, December 31 1,318 2,112 1,981 Weighted Average Fair Value 2021 2020 2019 Non-vested cash-settled PSU awards, January 1 $ 130.13 $ 93.28 $ 79.48 Granted at target level 320.12 190.71 102.51 Adjustments above/(below) target 91.40 74.43 56.95 Vested and converted 274.29 173.22 102.51 Forfeited 135.64 — — Non-vested cash-settled PSU awards, December 31 $ 169.53 $ 130.13 $ 93.28 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost and other amounts recognized in OCI were as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2019 2021 2020 2019 Net periodic benefit cost: Service cost $ 1.6 $ 1.5 $ 1.4 $ — $ — $ — Interest cost 6.2 7.1 9.2 0.2 0.2 0.2 Expected return on plan assets (11.9) (11.7) (12.0) — — — Amortization of prior service credit 0.1 0.1 0.1 (0.4) (0.7) (0.7) Amortization of actuarial loss (gain) 1.8 2.0 2.1 (1.6) (1.9) (2.3) Settlement loss 1.8 3.7 3.5 — — — Net periodic benefit cost $ (0.4) $ 2.7 $ 4.3 $ (1.8) $ (2.4) $ (2.8) Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: Net (gain) loss arising during period $ (6.3) $ 1.8 $ 1.5 $ (0.9) $ (0.4) $ 0.1 Prior service credit arising during period (2.0) — — — — — Amortization of prior service credit (0.1) (0.1) (0.1) 0.4 0.7 0.7 Amortization of actuarial (loss) gain (1.8) (2.0) (2.1) 1.6 1.9 2.3 Settlement loss (1.8) (3.7) (3.5) — — — Foreign currency translation (0.9) 1.8 0.6 — — — Total recognized in OCI $ (12.9) $ (2.2) $ (3.6) $ 1.1 $ 2.2 $ 3.1 Total recognized in net periodic benefit cost and OCI $ (13.3) $ 0.5 $ 0.7 $ (0.7) $ (0.2) $ 0.3 Net periodic benefit cost by geographic location is as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2019 2021 2020 2019 U.S. plans $ (2.3) $ 1.2 $ 2.4 $ (1.8) $ (2.4) $ (2.8) International plans 1.9 1.5 1.9 — — — Net periodic benefit cost $ (0.4) $ 2.7 $ 4.3 $ (1.8) $ (2.4) $ (2.8) |
Schedule of Changes in Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status | The following table presents the changes in the benefit obligation and the fair value of plan assets, as well as the funded status of the plans: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, January 1 $ (298.9) $ (287.9) $ (6.1) $ (6.6) Service cost (1.6) (1.5) — — Interest cost (6.2) (7.1) (0.2) (0.2) Participants’ contributions (0.6) (0.3) (0.5) (0.1) Actuarial (loss) gain 12.1 (22.1) 0.9 0.5 Amendments/transfers in 2.0 — — — Benefits paid 7.1 6.2 0.3 0.3 Curtailment gain — 0.1 — — Settlement loss 13.1 18.6 — — Foreign currency translation 3.2 (4.9) — — Benefit obligation, December 31 $ (269.8) $ (298.9) $ (5.6) $ (6.1) Change in plan assets: Fair value of assets, January 1 $ 258.1 $ 244.1 $ — $ — Actual return on plan assets 6.1 31.8 — — Employer contribution 3.6 4.8 (0.2) 0.2 Participants’ contributions 0.6 0.3 0.5 0.1 Benefits paid (5.2) (6.0) (0.3) (0.3) Settlement loss (13.1) (18.6) — — Foreign currency translation (0.9) 1.7 — — Fair value of assets, December 31 $ 249.2 $ 258.1 $ — $ — Funded status at end of year $ (20.6) $ (40.8) $ (5.6) $ (6.1) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the balance sheet were as follows: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Noncurrent assets $ 16.7 $ 12.9 $ — $ — Current liabilities (1.7) (1.6) (0.7) (0.7) Noncurrent liabilities (35.6) (52.1) (4.9) (5.4) $ (20.6) $ (40.8) $ (5.6) $ (6.1) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts in accumulated other comprehensive loss, pre-tax, consisted of: Pension benefits Other retirement benefits ($ in millions) 2021 2020 2021 2020 Net actuarial loss (gain) $ 56.5 $ 67.3 $ (4.7) $ (5.4) Prior service cost (credit) (1.3) 0.8 — (0.4) Total $ 55.2 $ 68.1 $ (4.7) $ (5.8) |
Schedule of Expected Benefit Payments | Benefit payments expected to be paid under our defined benefit pension and other retirement benefit plans in the next ten years are as follows. The U.S. qualified defined benefit pension plan is in the process of being terminated. The expected benefit payments listed correspond to regular ongoing benefit payments expected to be made by the plan during future years, and does not reflect additional disbursements that are expected to be made during 2022 as a result of lump sum offering and annuity purchase related to the plan termination process. ($ in millions) Domestic International Total 2022 $ 13.7 $ 2.4 $ 16.1 2023 14.0 2.4 16.4 2024 13.4 2.7 16.1 2025 12.7 3.1 15.8 2026 11.9 3.6 15.5 2027 to 2031 55.2 19.6 74.8 $ 120.9 $ 33.8 $ 154.7 |
Schedule of Assumptions Used | Weighted average assumptions used to determine net periodic benefit cost were as follows: Pension benefits Other retirement benefits 2021 2020 2019 2021 2020 2019 Discount rate 2.29 % 2.61 % 2.70 % 2.30 % 3.20 % 4.20 % Rate of compensation increase 2.41 % 2.33 % 2.41 % — — — Expected long-term rate of return on assets 4.93 % 5.10 % 5.54 % — — — Weighted average assumptions used to determine the benefit obligations were as follows: Pension benefits Other retirement benefits 2021 2020 2021 2020 Discount rate 2.48 % 2.10 % 2.75 % 2.30 % Rate of compensation increase 2.79 % 2.58 % — — The weighted average interest crediting rating used to determine net periodic benefit cost by geographic location for our pension plans, at December 31, were as follows: 2021 2020 2019 U.S. plans 3.31 % 3.30 % 3.30 % International plans 0.67 % 0.52 % 0.85 % |
Schedule of Allocation of Plan Assets | The weighted average asset allocations by asset category for our pension plans, at December 31, were as follows: 2021 2020 Equity securities 12 % 34 % Debt securities 86 % 64 % Other 2 % 2 % 100 % 100 % The following are the U.S. target asset allocations and acceptable allocation ranges: Target allocation Allocation range Equity securities 5% 2% - 8% Debt securities 95% 92% - 98% Other —% 0% - 3% The following tables present the fair value of our pension plan assets, utilizing the fair value hierarchy discussed in Note 12, Fair Value Measurements . In accordance with U.S. GAAP, certain pension plan assets measured at net asset value (“NAV”) have not been classified in the fair value hierarchy. Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2021 Level 1 Level 2 Level 3 Cash $ 1.6 $ 1.6 $ — $ — Equity securities: International mutual funds 21.2 — 21.2 — Fixed income securities: Mutual funds 22.1 — 22.1 — Other mutual funds 4.6 — 4.6 — Pension plan assets in the fair value hierarchy $ 49.5 $ 1.6 $ 47.9 $ — Pension plan assets measured at NAV 199.7 Pension plan assets at fair value $ 249.2 Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2020 Level 1 Level 2 Level 3 Cash $ 1.5 $ 1.5 $ — $ — Equity securities: International mutual funds 20.6 — 20.6 — Fixed income securities: Mutual funds 18.7 — 18.7 — Other mutual funds 2.9 — 2.9 — Pension plan assets in the fair value hierarchy $ 43.7 $ 1.5 $ 42.2 $ — Pension plan assets measured at NAV 214.4 Pension plan assets at fair value $ 258.1 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income) | Other expense (income) consisted of: ($ in millions) 2021 2020 2019 Restructuring and related charges: Severance and post-employment benefits $ 0.6 $ 4.6 $ 2.6 Asset-related charges — — 0.3 Other charges 1.6 — 2.0 Total restructuring and related charges $ 2.2 $ 4.6 $ 4.9 Fixed asset impairments and sale of equipment, net 1.3 7.7 0.8 Argentina currency devaluation — — 1.0 Brazil tax recovery — — (4.7) Development and licensing income (0.9) (0.9) (0.9) Contingent consideration 1.5 1.2 2.1 Foreign exchange transaction gains (1.4) (1.5) (4.6) Cost investment activity 4.3 2.5 — Other items 0.9 (1.6) (1.1) Total other expense (income) $ 7.9 $ 12.0 $ (2.5) |
Schedule of Restructuring Obligations | The following table presents activity related to our restructuring obligations related to our 2020 restructuring plan: ($ in millions) Severance and benefits Other charges Total Balance, December 31, 2020 $ 4.6 $ — $ 4.6 Charges 0.6 1.6 2.2 Cash payments (2.4) (1.1) (3.5) Balance, December 31, 2021 $ 2.8 $ 0.5 $ 3.3 The following table presents activity related to our restructuring obligations related to our 2018 restructuring plan: ($ in millions) Severance and benefits Total Balance, December 31, 2019 $ 1.4 $ 1.4 Cash payments (1.3) (1.3) Balance, December 31, 2020 $ 0.1 $ 0.1 Cash payments (0.1) (0.1) Balance, December 31, 2021 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows: ($ in millions) 2021 2020 Balance at January 1 $ 10.4 $ 5.0 Increase due to current year position 16.3 4.9 (Decrease) increase due to prior year position (1.0) 0.6 Reduction for expiration of statute of limitations/audits (0.8) (0.1) Balance at December 31 $ 24.9 $ 10.4 |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes are: ($ in millions) 2021 2020 2019 U.S. operations $ 420.0 $ 227.0 $ 161.2 International operations 328.9 174.3 130.6 Total income before income taxes $ 748.9 $ 401.3 $ 291.8 |
Schedule of Components of Income Tax Expense | The related provision for income taxes consists of: ($ in millions) 2021 2020 2019 Current: Federal $ 64.8 $ 28.9 $ 10.8 State 10.9 3.4 2.4 International 74.4 46.0 30.5 Current income tax provision 150.1 78.3 43.7 Deferred: Federal and state 7.3 0.2 10.3 International (50.2) (6.0) 5.0 Deferred income tax provision (42.9) (5.8) 15.3 Income tax expense $ 107.2 $ 72.5 $ 59.0 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities at December 31 are : ($ in millions) 2021 2020 Deferred tax assets Net operating loss carryforwards $ 14.0 $ 21.4 Tax credit carryforwards 1.5 2.0 Pension and deferred compensation 31.6 35.3 Royalty acceleration 45.1 — Other 12.2 11.0 Valuation allowance (12.2) (15.1) Total deferred tax assets 92.2 54.6 Deferred tax liabilities: Property, plant, and equipment 47.2 42.1 Tax on undistributed earnings of subsidiaries 1.8 6.5 Other (0.4) 0.4 Total deferred tax liabilities 48.6 49.0 Net deferred tax asset (liability) $ 43.6 $ 5.6 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal corporate tax rate to our effective consolidated tax rate on income before income taxes is as follows: 2021 2020 2019 U.S. federal corporate tax rate 21.0 % 21.0 % 21.0 % Tax on international operations other than U.S. tax rate 1.9 1.2 2.7 Adjustments to reserves for unrecognized tax benefits 0.1 1.4 0.4 U.S. tax on international earnings, net of foreign tax credits 0.3 0.4 0.4 Foreign-Derived Intangible Income Deductions (FDII) (1.5) (1.1) (0.6) State income taxes, net of federal tax effect (0.1) 1.2 1.4 U.S. research and development credits (0.4) (0.7) (1.0) Excess tax benefits on share-based payments (4.2) (5.2) (3.5) Royalty acceleration (2.5) — — Tax on undistributed earnings of subsidiaries (0.6) 0.1 (0.2) Other 0.3 (0.2) (0.4) Effective tax rate 14.3 % 18.1 % 20.2 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Significant Product Group | The following table presents net sales information about our reportable segments, reconciled to consolidated totals: ($ in millions) 2021 2020 2019 Net sales: Proprietary Products $ 2,317.3 $ 1,648.6 $ 1,398.6 Contract-Manufactured Products 514.7 498.6 441.5 Intersegment sales elimination (0.4) (0.3) (0.2) Consolidated net sales $ 2,831.6 $ 2,146.9 $ 1,839.9 |
Schedule of Sales and Long-Lived Assets, by Geographical Areas | The following table presents net sales and long-lived assets, by the country in which the legal subsidiary is domiciled and assets are located: Net Sales Long-Lived Assets ($ in millions) 2021 2020 2019 2021 2020 United States $ 1,198.0 $ 975.6 $ 814.7 $ 504.1 $ 407.8 Germany 474.3 282.1 236.3 124.1 112.0 Ireland 247.6 226.0 173.8 187.3 197.6 France 213.0 172.7 150.6 86.1 76.0 Other European countries 341.3 236.8 251.1 65.1 66.8 Other 357.4 253.7 213.4 160.1 151.3 $ 2,831.6 $ 2,146.9 $ 1,839.9 $ 1,126.8 $ 1,011.5 |
Schedule of Segment Reporting Information, by Segment | The following tables provide summarized financial information for our segments: ($ in millions) 2021 2020 2019 Proprietary Products $ 796.1 $ 434.5 $ 313.6 Contract-Manufactured Products 67.2 68.6 49.1 Total business segment operating profit $ 863.3 $ 503.1 $ 362.7 Corporate and Unallocated Stock-based compensation expense $ (37.5) $ (34.0) $ (24.4) Corporate general costs (1) (63.4) (52.1) (41.9) Unallocated Items: Restructuring and severance related charges (2) (2.2) (7.0) (4.9) Amortization of acquisition-related intangible assets (3) (0.8) (0.6) — Asset impairment (4) (2.8) — — Cost investment activity (5) (4.3) (2.5) — Gain on restructuring-related sale of assets — — 1.7 Argentina currency devaluation — — (1.0) Tax recovery (6) — — 4.4 Total Corporate and Unallocated (111.0) (96.2) (66.1) Total consolidated operating profit $ 752.3 $ 406.9 $ 296.6 Other expense/(income), net 3.4 5.6 4.8 Income before income taxes $ 748.9 $ 401.3 $ 291.8 (1) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. (2) During 2021 and 2020, the Company recorded a restructuring and severance related charge of $2.2 million and $7.0 million, respectively, to optimize certain organizational structure within the Company. During 2019, the Company recorded $4.9 million in restructuring and related charges in connection with the 2018 plan. (3) During 2021, the company recorded $0.8 million of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020. During 2020, the company recorded $0.6 million of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020. (4) The Company recorded a $2.8 million impairment charge for certain long-lived and intangible assets within the Proprietary Products segment as it determined the carrying value was not fully recoverable. $1.9 million of this charge is recorded in Cost of Goods Sold and $0.9 million of the charge is recorded in Selling, General, and Administrative expense, due to the nature of the impaired assets. (5) During 2021, the net cost investment activity was equal to $4.3 million, inclusive of an impairment charge of $4.6 million partially offset by a $0.3 million gain on the sale of a cost investment. During 2020, the Company recorded a cost investment impairment charge of $2.5 million. (6) During the twelve months ended December 31, 2019, the Company recorded a net tax recovery of $4.4 million related to previously-paid international excise taxes, following a favorable court ruling. The following tables provide summarized financial information for our two reportable segments and corporate and unallocated: ($ in millions) Assets 2021 2020 Proprietary Products $ 2,152.6 $ 1,798.3 Contract-Manufactured Products 443.7 411.6 Corporate and Unallocated 717.5 583.9 Total consolidated $ 3,313.8 $ 2,793.8 ($ in millions) Depreciation and Amortization 2021 2020 2019 Proprietary Products $ 93.8 $ 84.6 $ 82.2 Contract-Manufactured Products 21.1 20.4 17.9 Corporate and Unallocated 7.4 4.1 3.3 Total consolidated $ 122.3 $ 109.1 $ 103.4 ($ in millions) Capital Expenditures 2021 2020 2019 Proprietary Products $ 218.0 $ 139.5 $ 88.7 Contract-Manufactured Products 26.6 25.0 36.1 Corporate and Unallocated 8.8 9.9 1.6 Total consolidated $ 253.4 $ 174.4 $ 126.4 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Apr. 01, 2019 | |
Accounting Policies [Abstract] | |||
Business acquisition, transaction costs | $ 18.9 | ||
Business acquisition, recognized inventory | 4.5 | ||
Business acquisition, recognized property, plant, and equipment | 0.6 | ||
Business acquisition, recognized goodwill | 2.6 | ||
Business acquisition, recognized intangible assets | $ 11.2 | ||
Allowance for doubtful accounts | $ 0.4 | $ 1.1 | |
Raw materials | 153.8 | 133.5 | |
Work in process | 63.5 | 54.9 | |
Finished goods | 161.1 | 132.9 | |
Total inventories | 378.4 | 321.3 | |
Finance lease | $ 0 | $ 0 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of finite-lived intangible assets | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of finite-lived intangible assets | 25 years |
Revenue - Revenue Recognition (
Revenue - Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2013 | |
Disaggregation of Revenue [Line Items] | ||||
Contract with customer, liability | $ 61.3 | $ 57.1 | ||
Percentage of net sales | 100.00% | 100.00% | 100.00% | |
Americas | Revenue Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 45.00% | 48.00% | 48.00% | |
Europe, Middle East, Africa | Revenue Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 45.00% | 43.00% | 44.00% | |
Asia Pacific | Revenue Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 10.00% | 9.00% | 8.00% | |
SmartDose | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract with customer, liability | $ 3.9 | |||
Deferred income, current | 0.9 | |||
Deferred income, noncurrent | $ 3 | |||
High-Value Product Components | Revenue Benchmark | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 54.00% | 46.00% | 42.00% | |
High-Value Product Delivery Devices | Revenue Benchmark | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 5.00% | 5.00% | 5.00% | |
Standard Packaging | Revenue Benchmark | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 23.00% | 26.00% | 29.00% | |
Contract-Manufactured Products | Revenue Benchmark | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 18.00% | 23.00% | 24.00% | |
Biologics | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 41.00% | 31.00% | 25.00% | |
Generics | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 17.00% | 20.00% | 20.00% | |
Pharma | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 24.00% | 26.00% | 31.00% | |
Contract-Manufactured Products | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of net sales | 18.00% | 23.00% | 24.00% | |
SmartDose | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract with customer, liability | $ 20 |
Revenue - Contracts Assets and
Revenue - Contracts Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Contract With Customer, Asset [Roll Forward] | |
Contract assets, December 31, 2020 | $ 10.9 |
Contract assets, December 31, 2021 | 14.6 |
Change in contract assets - increase (decrease) | 3.7 |
Contract With Customer, Liability [Roll Forward] | |
Deferred income, December 31, 2020 | (57.1) |
Deferred income, December 31, 2021 | (61.3) |
Change in deferred income - (increase) decrease | $ (4.2) |
Revenue - Contracts and Liabili
Revenue - Contracts and Liabilities, Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Cash payments received in advance | $ 112.3 | |
Revenue recognized during the period | $ 31.8 | $ 72 |
Revenue - Voluntary Recall (Det
Revenue - Voluntary Recall (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Provision for product returns | $ 11.3 | $ 5.4 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 661.8 | $ 346.2 | $ 241.7 | |
Weighted average common shares outstanding (in shares) | 74,400,000 | 73,900,000 | 74,000,000 | |
Dilutive effect of equity awards, based on the treasury stock method (in shares) | 1,900,000 | 1,900,000 | 1,400,000 | |
Weighted average shares assuming dilution (in shares) | 76,300,000 | 75,800,000 | 75,400,000 | |
Antidilutive options excluded from computation of diluted net income per share (in shares) | 0 | 0 | 100,000 | |
Stock repurchase program, shares authorized (in shares) | 650,000 | 650,000 | 631,000 | |
Shares purchased under share repurchase program (in shares) | 0 | 479,000 | ||
Shares purchased under share repurchase program | $ 137.1 | $ 115.5 | $ 83.1 | |
Shares purchased under share repurchase program, average cost per share (in dollars per share) | $ 286.23 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment, Gross (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 2,215 | $ 2,035.5 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 29.3 | 24.8 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 644.8 | 618.1 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 35 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 976.1 | 911.8 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | |
Molds and dies | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 139.5 | 131.2 |
Molds and dies | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 years | |
Molds and dies | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years | |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 182.6 | 157.5 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 242.7 | $ 192.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 116.9 | $ 104.7 | $ 100 |
Capitalized interest | $ 2 | $ 1.4 | $ 0.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease, operating lease, terminate term | 1 year | |
Finance lease | $ 0 | $ 0 |
Weighted average remaining lease term | 10 years 8 months 12 days | 11 years 1 month 6 days |
Weighted average discount rate | 3.58% | 3.68% |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, term of contract | 12 months |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 12.7 | $ 12.8 | $ 12.9 |
Short-term lease cost | 1.3 | 0.8 | 0.8 |
Variable lease cost | 4.8 | 3.8 | 3.3 |
Total lease cost | $ 18.8 | $ 17.4 | $ 17 |
Leases - Lease Cash Flow and Su
Leases - Lease Cash Flow and Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 12.1 | $ 12.6 | $ 12.5 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 13.3 | $ 6.1 | $ 9.1 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 11.5 |
2023 | 10.7 |
2024 | 10 |
2025 | 8.2 |
2026 | 7.3 |
Thereafter | 38.7 |
Operating lease liability payments due | 86.4 |
Less: imputed lease interest | (14.1) |
Total lease liabilities | $ 72.3 |
Affiliated Companies - Schedule
Affiliated Companies - Schedule of Investments (Details) | Dec. 31, 2021 | Nov. 01, 2019 | Oct. 31, 2019 |
The West Company Mexico, S.A. de C.V. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 49.00% | ||
Aluplast S.A. de C.V. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 49.00% | ||
Pharma Tap S.A. de C.V. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 49.00% | ||
Pharma Rubber S.A. de C.V. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 49.00% | ||
Daikyo | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 49.00% | 49.00% | 25.00% |
Affiliated Companies - Narrativ
Affiliated Companies - Narrative (Details) - USD ($) $ in Millions | Nov. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase in investment in affiliated companies in cash | $ 85.1 | $ 0 | $ 0 | $ 85.1 | |
Purchase of investment in affiliated companies | $ 4.9 | 4.9 | |||
Unremitted income of affiliated companies | 115.6 | 98.2 | 82.4 | ||
Dividends received from affiliated companies | 2.7 | 1.6 | 2.2 | ||
Purchases and royalty payments made to affiliates | 155 | 143.3 | 115.1 | ||
Amount due and payable to affiliates | 25.5 | 33.6 | |||
Sales to affiliates | 12 | 9.7 | 9.2 | ||
Amount receivable from affiliates | 2.3 | 1.4 | |||
Equity method investments | 201.2 | 201.9 | |||
Aggregate carrying amount of investment in affiliated companies that are not accounted for under the equity method | $ 6.5 | 12.8 | |||
Daikyo | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 49.00% | 49.00% | 25.00% | ||
Equity in unrealized gains (losses) in securities available-for-sale and derivative instruments | $ 1.5 | $ 0.6 | $ 0.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 111.1 | $ 107.8 |
Goodwill recorded due to acquisition | 1.7 | |
Goodwill impairment charge | (0.1) | |
Foreign currency translation | (2.8) | 3.3 |
Goodwill, ending balance | 109.9 | 111.1 |
Proprietary Products | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 80.9 | 78.1 |
Goodwill recorded due to acquisition | 1.7 | |
Goodwill impairment charge | (0.1) | |
Foreign currency translation | (2.4) | 2.8 |
Goodwill, ending balance | 80.1 | 80.9 |
Contract-Manufactured Products | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 30.2 | 29.7 |
Goodwill recorded due to acquisition | 0 | |
Goodwill impairment charge | 0 | |
Foreign currency translation | (0.4) | 0.5 |
Goodwill, ending balance | $ 29.8 | $ 30.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated goodwill impairment losses | $ 0.1 | ||
Foreign currency translation gains (losses) | (1.3) | $ 1.3 | |
Amortization of intangible assets | 5.4 | $ 4.4 | $ 3.4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated annual amortization expense, 2022 | 4 | ||
Estimated annual amortization expense, 2023 | 4 | ||
Estimated annual amortization expense, 2024 | 4 | ||
Estimated annual amortization expense, 2025 | 3 | ||
Estimated annual amortization expense, 2026 | $ 2.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | $ 81.1 | $ 83.2 |
Accumulated amortization | (58.1) | (52.7) |
Net | 23 | 30.5 |
Patents and licensing | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | 25.1 | 25.9 |
Accumulated amortization | (19.4) | (17.9) |
Net | 5.7 | 8 |
Technology | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | 3.3 | 3.3 |
Accumulated amortization | (2) | (1.7) |
Net | 1.3 | 1.6 |
Trademarks | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | 2 | 2 |
Accumulated amortization | (1.9) | (1.8) |
Net | 0.1 | 0.2 |
Customer relationships | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | 40.1 | 40.9 |
Accumulated amortization | (25.4) | (23.4) |
Net | 14.7 | 17.5 |
Customer contracts | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Cost | 10.6 | 11.1 |
Accumulated amortization | (9.4) | (7.9) |
Net | $ 1.2 | $ 3.2 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Current Liabilities [Abstract] | |||
Deferred income | $ 48.7 | $ 51 | |
Dividends payable | 13.4 | 12.6 | $ 11.8 |
Accrued commissions, rebates and royalties | 38.7 | 10 | |
Accrued retirement plans (excluding pension) | 8.8 | 8.4 | |
Accrued taxes other than income | 13 | 15.4 | |
Accrued professional services | 3.7 | 3.7 | |
Accrued interest | 3.2 | 3.3 | |
Restructuring and severance related charges | 4.6 | 7.8 | |
Short term derivative instruments | 3.3 | 9.5 | |
Other | 26 | 21.9 | |
Total other current liabilities | $ 163.4 | $ 143.6 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 253.5 | $ 255.7 |
Less: unamortized debt issuance costs | 0.5 | 0.5 |
Total debt | 253 | 255.2 |
Less: current portion of long-term debt | 44.2 | 2.3 |
Long-term debt, net | $ 208.8 | 252.9 |
Term Loan, due December 31, 2024 (1.10%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 1.10% | |
Long-term debt, gross | $ 85.5 | 87.7 |
Less: current portion of long-term debt | 2.2 | |
Long-term debt, net | $ 83.3 | |
Series A notes, due July 5, 2022 (3.67%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.67% | |
Long-term debt, gross | $ 42 | 42 |
Series B notes, due July 5, 2024 (3.82%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.82% | |
Long-term debt, gross | $ 53 | 53 |
Series C notes, due July 5, 2027 (4.02%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.02% | |
Long-term debt, gross | $ 73 | $ 73 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($)fiscal_quarterinstance | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2012USD ($)tranche | |
Line of Credit Facility [Line Items] | |||||
Long-term debt, gross | $ 253,500,000 | $ 255,700,000 | |||
Less: current portion of long-term debt | 44,200,000 | 2,300,000 | |||
Long-term debt, net | 208,800,000 | 252,900,000 | |||
Number of tranches | tranche | 3 | ||||
Unamortized debt issuance costs remaining | 500,000 | 500,000 | |||
Interest expense | 10,200,000 | 9,600,000 | $ 9,400,000 | ||
Aggregate annual maturities of long-term debt [Abstract] | |||||
2022 | 44,200,000 | ||||
2023 | 2,300,000 | ||||
2024 | 134,000,000 | ||||
2025 | 0 | ||||
2026 | 0 | ||||
Thereafter | 73,000,000 | ||||
Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, current borrowing capacity | $ 300,000,000 | ||||
Credit available for the issuance of letters of credit | 30,000,000 | ||||
Line of credit facility, additional borrowing capacity | $ 350,000,000 | ||||
Preceding period | 12 months | ||||
Number of instances not to exceed | instance | 3 | ||||
Number of quarters following acquisition | fiscal_quarter | 4 | ||||
Debt issuance costs | 100,000 | 400,000 | |||
Line of credit, noncurrent | 0 | ||||
Line of credit facility, unused commitment level | 297,600,000 | ||||
Revolving credit facility, due 2024 | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of debt to EBITDA | 3.5 | ||||
Revolving credit facility, due 2024 | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Ratio of debt to EBITDA | 4 | ||||
Term Loan, due December 31, 2024 (1.10%) | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | 100,000 | 100,000 | |||
Debt instrument, face amount | $ 90,000,000 | ||||
Long-term debt, gross | 85,500,000 | 87,700,000 | |||
Less: current portion of long-term debt | 2,200,000 | ||||
Long-term debt, net | $ 83,300,000 | ||||
Debt instrument, stated interest rate | 1.10% | ||||
Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 168,000,000 | ||||
Weighted average of the coupon interest rate | 3.87% | ||||
Unamortized debt issuance costs remaining | $ 300,000 | $ 400,000 | |||
Senior Notes | Series A notes, due July 5, 2022 (3.67%) | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 42,000,000 | ||||
Debt instrument, stated interest rate | 3.67% | ||||
Senior Notes | Series B notes, due July 5, 2024 (3.82%) | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 53,000,000 | ||||
Debt instrument, stated interest rate | 3.82% | ||||
Senior Notes | Series C notes, due July 5, 2027 (4.02%) | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 73,000,000 | ||||
Debt instrument, stated interest rate | 4.02% | ||||
Domestic Line of Credit | Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility is available for swing-line loans | $ 30,000,000 | ||||
Foreign Line of Credit | Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility is available for swing-line loans | $ 20,000,000 | ||||
Fed Funds Effective Rate Overnight Index Swap Rate | Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.50% | ||||
Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.375% | ||||
London Interbank Offered Rate (LIBOR) | Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) | Revolving credit facility, due 2024 | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.875% | ||||
London Interbank Offered Rate (LIBOR) | Revolving credit facility, due 2024 | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 1.375% | ||||
London Interbank Offered Rate (LIBOR) | Term Loan, due December 31, 2024 (1.10%) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 87.50% | ||||
Letter of Credit | Revolving credit facility, due 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding amount | $ 2,400,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Millions, $ in Millions, ¥ in Billions | 1 Months Ended | 12 Months Ended | 50 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021SGD ($)bbl$ / bbl | Dec. 31, 2021USD ($)bbl$ / bbl | Dec. 31, 2021JPY (¥)bbl$ / bbl | |
Fair Value Hedges | ||||||||
Derivative [Line Items] | ||||||||
Gain recognized in earnings | $ (2.6) | $ 6.3 | $ 8.7 | |||||
Fair Value Hedges | Forecast | ||||||||
Derivative [Line Items] | ||||||||
Gain recognized in earnings | $ (2.6) | |||||||
Forward Contracts | SGD | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 601.5 | |||||||
Forward Contracts | USD | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 13.4 | |||||||
Foreign Exchange Forward | ||||||||
Derivative [Line Items] | ||||||||
Derivative contract term | 18 months | |||||||
Cross Currency Interest Rate Contract | Net Investment Hedges | USD | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 90 | $ 90 | $ 85.5 | ¥ 9.4 | ||||
Derivative contract term | 5 years | |||||||
Commodity Call Options | ||||||||
Derivative [Line Items] | ||||||||
Derivative, nonmonetary notional amount, volume | bbl | 640,267 | |||||||
Derivative, nonmonetary notional amount outstanding | bbl | 188,242 | 188,242 | 188,242 | |||||
Derivative, average price risk option strike price | $ / bbl | 74.16 | 74.16 | 74.16 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Foreign Exchange Rate Risk (Details) - Dec. 31, 2021 - Foreign Exchange Forward - Designated as Hedging Instrument € in Millions, ¥ in Millions, $ in Millions, $ in Millions | SGD ($) | USD ($) | EUR (€) | JPY (¥) |
USD | Long | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 18.1 | |||
USD | Short | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | € 15.1 | |||
JPY | Long | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | ¥ | ¥ 7,510 | |||
JPY | Short | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 28.4 | 33.8 | ||
SGD | Long | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 17.9 | |||
SGD | Short | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 11.3 | € 1.7 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effects of Derivative Instruments on OCI and Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative (gain) loss recognized in income, fair value hedges | $ 3 | $ 6.1 | $ 6.9 |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 1.7 | (0.2) | (0.4) |
Fair Value Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value and net investment hedges, amount of gain (loss) recognized in OCI | 0.6 | 4 | 4.8 |
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income | (0.8) | (4.3) | (4.6) |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, amount of gain (loss) recognized in OCI | (2) | (1.2) | 0.6 |
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income | 2.9 | 0.4 | (1.2) |
Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value and net investment hedges, amount of gain (loss) recognized in OCI | 7.7 | (3.2) | (0.5) |
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income | 0 | 0 | 0 |
Other expense (income) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative (gain) loss on hedged item, fair value hedges | (22.1) | 28.5 | (15.3) |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 22.1 | (28.5) | 15.3 |
Derivative (gain) loss on amount excluded from effectiveness testing, fair value hedges | 3 | 6.1 | 6.9 |
Gain (loss) on derivative instruments, net, pretax | (0.8) | (4.3) | (4.6) |
Other expense (income) | Fair Value Hedges | Foreign currency hedge contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value and net investment hedges, amount of gain (loss) recognized in OCI | 0.6 | 4 | 4.8 |
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income | (0.8) | (4.3) | (4.6) |
Other expense (income) | Net Investment Hedges | Foreign currency-denominated debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value and net investment hedges, amount of gain (loss) recognized in OCI | 0 | 0 | 0.6 |
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income | 0 | 0 | 0 |
Other expense (income) | Net Investment Hedges | Cross-currency swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value and net investment hedges, amount of gain (loss) recognized in OCI | 7.7 | (3.2) | (1.1) |
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income | 0 | 0 | 0 |
Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net, pretax | 0.9 | 0.2 | (0.9) |
Net sales | Cash Flow Hedges | Foreign currency hedge contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, amount of gain (loss) recognized in OCI | (0.2) | (0.6) | 0.8 |
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income | 0.9 | 0.2 | (0.9) |
Cost of goods and services sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net, pretax | 1.7 | (0.1) | (0.6) |
Cost of goods and services sold | Commodity call options | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 1.7 | (0.2) | (0.4) |
Cost of goods and services sold | Cash Flow Hedges | Foreign currency hedge contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, amount of gain (loss) recognized in OCI | (1.8) | (0.6) | (0.2) |
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income | 1.7 | (0.1) | (0.6) |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net, pretax | 0.3 | 0.3 | 0.3 |
Interest expense | Cash Flow Hedges | Forward treasury locks | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, amount of gain (loss) recognized in OCI | 0 | 0 | 0 |
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income | $ 0.3 | $ 0.3 | $ 0.3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Deferred compensation assets | $ 15.5 | $ 12.8 |
Foreign currency contracts | 14.8 | 3 |
Total assets at fair value | 36.4 | 16.1 |
Liabilities: | ||
Contingent consideration | 3.7 | 3.6 |
Deferred compensation liabilities | 16.1 | 14.5 |
Total liabilities at fair value | 23.2 | 33.4 |
Cross-currency swap | ||
Assets: | ||
Commodity call options | 4.4 | |
Liabilities: | ||
Foreign currency contracts and swaps | 5.6 | |
Commodity call options | ||
Assets: | ||
Commodity call options | 1.7 | 0.3 |
Foreign currency hedge contracts | ||
Liabilities: | ||
Foreign currency contracts and swaps | 3.4 | 9.7 |
Level 1 | ||
Assets: | ||
Deferred compensation assets | 15.5 | 12.8 |
Foreign currency contracts | 0 | 0 |
Total assets at fair value | 15.5 | 12.8 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Deferred compensation liabilities | 16.1 | 14.5 |
Total liabilities at fair value | 16.1 | 14.5 |
Level 1 | Cross-currency swap | ||
Assets: | ||
Commodity call options | 0 | |
Liabilities: | ||
Foreign currency contracts and swaps | 0 | |
Level 1 | Commodity call options | ||
Assets: | ||
Commodity call options | 0 | 0 |
Level 1 | Foreign currency hedge contracts | ||
Liabilities: | ||
Foreign currency contracts and swaps | 0 | 0 |
Level 2 | ||
Assets: | ||
Deferred compensation assets | 0 | 0 |
Foreign currency contracts | 14.8 | 3 |
Total assets at fair value | 20.9 | 3.3 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Deferred compensation liabilities | 0 | 0 |
Total liabilities at fair value | 3.4 | 15.3 |
Level 2 | Cross-currency swap | ||
Assets: | ||
Commodity call options | 4.4 | |
Liabilities: | ||
Foreign currency contracts and swaps | 5.6 | |
Level 2 | Commodity call options | ||
Assets: | ||
Commodity call options | 1.7 | 0.3 |
Level 2 | Foreign currency hedge contracts | ||
Liabilities: | ||
Foreign currency contracts and swaps | 3.4 | 9.7 |
Level 3 | ||
Assets: | ||
Deferred compensation assets | 0 | 0 |
Foreign currency contracts | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Contingent consideration | 3.7 | 3.6 |
Deferred compensation liabilities | 0 | 0 |
Total liabilities at fair value | 3.7 | 3.6 |
Level 3 | Cross-currency swap | ||
Assets: | ||
Commodity call options | 0 | |
Liabilities: | ||
Foreign currency contracts and swaps | 0 | |
Level 3 | Commodity call options | ||
Assets: | ||
Commodity call options | 0 | 0 |
Level 3 | Foreign currency hedge contracts | ||
Liabilities: | ||
Foreign currency contracts and swaps | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Level 3 Fair Value Measurements [Roll Forward] | ||
Balance, beginning of period | $ 3.6 | $ 3.3 |
Increase in fair value recorded in earnings | 1.5 | 1.2 |
Payments | (1.4) | (0.9) |
Balance, end of period | $ 3.7 | $ 3.6 |
Sales Projections | Minimum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 10.00% | |
Sales Projections | Maximum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 50.00% | |
Sales Projections | Weighted Average | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 40.00% | |
Probabilities of Successful FDA Approval | Minimum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 19.00% | |
Probabilities of Successful FDA Approval | Maximum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 100.00% | |
Probabilities of Successful Execution of Agreement | Minimum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 25.00% | |
Probabilities of Successful Execution of Agreement | Maximum | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 100.00% | |
Measurement Input, Discount Rate | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Business combination, contingent consideration, measurement input | 19.00% |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 217.9 | $ 265.7 |
Long-term debt | $ 208.8 | $ 252.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,854.5 | $ 1,573.2 | $ 1,396.3 |
Other comprehensive income (loss) before reclassifications | (52.4) | 40.6 | 8.4 |
Amounts reclassified out | 3.4 | (1.6) | (3.8) |
Other comprehensive (loss) income, net of tax | (49) | 39 | 4.6 |
Ending balance | 2,335.4 | 1,854.5 | 1,573.2 |
Total | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (110.6) | (149.6) | (154.2) |
Ending balance | (159.6) | (110.6) | (149.6) |
(Losses) gains on derivatives | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (1.9) | (0.8) | (0.4) |
Other comprehensive income (loss) before reclassifications | (1.4) | 2.8 | 5.4 |
Amounts reclassified out | 2.1 | (3.9) | (5.8) |
Other comprehensive (loss) income, net of tax | 0.7 | (1.1) | (0.4) |
Ending balance | (1.2) | (1.9) | (0.8) |
Change in equity affiliate investment AOCI | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | 0.6 | 0.4 | 0.4 |
Other comprehensive income (loss) before reclassifications | 0.9 | 0.2 | 0 |
Amounts reclassified out | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | 0.9 | 0.2 | 0 |
Ending balance | 1.5 | 0.6 | 0.4 |
Defined benefit pension and other postretirement plans | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (40.5) | (40.3) | (40.4) |
Other comprehensive income (loss) before reclassifications | 7.4 | (2.5) | (1.9) |
Amounts reclassified out | 1.3 | 2.3 | 2 |
Other comprehensive (loss) income, net of tax | 8.7 | (0.2) | 0.1 |
Ending balance | (31.8) | (40.5) | (40.3) |
Foreign currency translation | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (68.8) | (108.9) | (113.8) |
Other comprehensive income (loss) before reclassifications | (59.3) | 40.1 | 4.9 |
Amounts reclassified out | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | (59.3) | 40.1 | 4.9 |
Ending balance | $ (128.1) | $ (68.8) | $ (108.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Other Comprehensive Loss Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Proprietary Products | $ 2,831.6 | $ 2,146.9 | $ 1,839.9 |
Cost of goods and services sold | (1,655.8) | (1,379.1) | (1,234.2) |
Interest expense | (8.2) | (8.2) | (8.5) |
Income before income taxes | 748.9 | 401.3 | 291.8 |
Income tax expense | (107.2) | (72.5) | (59) |
Net income | 661.8 | 346.2 | 241.7 |
Reclassification out of Accumulated Other Comprehensive Loss | |||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Net income | (3.4) | 1.6 | 3.8 |
Reclassification out of Accumulated Other Comprehensive Loss | Gains (losses) on derivatives | |||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Income before income taxes | (2.7) | 5.4 | 8.4 |
Income tax expense | 0.6 | (1.5) | (2.6) |
Net income | (2.1) | 3.9 | 5.8 |
Reclassification out of Accumulated Other Comprehensive Loss | Amortization of Defined Benefit Pension and Other Postretirement Plans | |||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Prior service credit | 0.3 | 0.6 | 0.6 |
Actuarial (losses) gains | (0.2) | (0.1) | 0.2 |
Settlements | (1.8) | (3.7) | (3.5) |
Income before income taxes | (1.7) | (3.2) | (2.7) |
Income tax expense | 0.4 | 0.9 | 0.7 |
Net income | (1.3) | (2.3) | (2) |
Foreign currency contracts | Reclassification out of Accumulated Other Comprehensive Loss | Gains (losses) on derivatives | |||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Proprietary Products | (1.1) | (0.2) | 1 |
Cost of goods and services sold | (2.4) | 0.1 | 1 |
Other expense (income) | 1.2 | 5.9 | 6.9 |
Forward treasury locks | Reclassification out of Accumulated Other Comprehensive Loss | Gains (losses) on derivatives | |||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | |||
Interest expense | $ (0.4) | $ (0.4) | $ (0.5) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)plan$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance under the 2016 Plan (in shares) | 2,052,885 | ||
Unrecognized compensation expense for all nonvested awards | $ | $ 37,300 | ||
Weighted average period for recognition | 1 year 6 months | ||
Deferred Compensation, Share-based Payments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation conversion unit (in shares) | 1 | ||
Number of deferred compensation plans | plan | 2 | ||
Number of deferred stock units (in shares) | 406,361 | ||
Number of deferred stock units payable in cash (in shares) | 8,390 | ||
Deferred Compensation, Share-based Payments | Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted at target level (in shares) | 6,034 | 10,302 | |
Granted at target level (in dollars per share) | $ / shares | $ 338.38 | $ 194.29 | |
Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reduced for each award granted (in shares) | 1 | ||
Awards, expiration period | 10 years | ||
Award Types Other than Stock Options and Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reduced for each award granted (in shares) | 2.5 | ||
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, expiration period | 10 years | ||
Vesting period | 4 years | ||
Stock-settled PSU awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted at target level (in shares) | 37,701 | 53,659 | 84,309 |
Granted at target level (in dollars per share) | $ / shares | $ 333.58 | $ 177.31 | $ 103.40 |
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance under the 2016 Plan (in shares) | 3,766,202 | ||
Percentage of current market price for sales to eligible employees | 85.00% | ||
Limitation on payroll deductions of employee's base salary, percent | 25.00% | ||
Limitation on payroll deductions of employee's base salary, amount | $ | $ 25 | ||
Maximum number of shares per employee (in shares) | 2,000 | ||
Maximum number of shares per employee, per year (in shares) | 8,000 | ||
Purchases of shares (in shares) | 27,016 | 36,494 | 51,391 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted at target level (in shares) | 6,002 | 8,721 | 13,308 |
Granted at target level (in dollars per share) | $ / shares | $ 312.41 | $ 200.35 | $ 116.39 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Share-based Compensation Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 37.5 | $ 34 | $ 24.4 |
Stock option and appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 12.5 | 10.2 | 9.1 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 17.6 | 16.6 | 9.5 |
Cash-Settled PSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 1 | 0.4 | 0.1 |
Performance-vesting Shares or Units Dividend Equivalents | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0.2 | 0.6 | 0.2 |
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 1.4 | 1.1 | 0.9 |
Deferred Compensation, Share-based Payments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 4.8 | $ 5.1 | $ 4.6 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual life of options outstanding | 5 years 6 months | ||
Weighted average remaining contractual life of options exercisable | 4 years 6 months | ||
Aggregate intrinsic value of total options outstanding | $ 751 | ||
Aggregate intrinsic value of total options vested | $ 573.7 | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 64.51 | $ 40.28 | $ 24.72 |
Intrinsic value of options exercised | $ 147.3 | $ 88.8 | $ 46.9 |
Grant date fair value of options vested | $ 8.3 | $ 8.4 | $ 7.5 |
Stock Options Activity [Roll Forward] | |||
Options outstanding, beginning (in shares) | 2.4 | 2.7 | 3 |
Granted (in shares) | 0.1 | 0.2 | 0.3 |
Exercised (in shares) | (0.5) | (0.5) | (0.6) |
Forfeited (in shares) | 0 | 0 | 0 |
Options outstanding, ending (in shares) | 2 | 2.4 | 2.7 |
Options exercisable (in shares) | 1.5 | 1.6 | 1.6 |
Stock Options, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning (in dollars per share) | $ 81.37 | $ 67.02 | $ 58.93 |
Granted (in dollars per share) | 280.22 | 178.11 | 103.40 |
Exercised (in dollars per share) | 60.63 | 49.99 | 46.42 |
Forfeited (in dollars per share) | 134.89 | 103.51 | 92.71 |
Options outstanding, ending (in dollars per share) | 101.73 | 81.37 | 67.02 |
Options exercisable (in dollars per share) | $ 73.46 | $ 62.42 | $ 53.12 |
Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, expiration period | 10 years | ||
Risk-free interest rate | 0.80% | 1.30% | 2.30% |
Stock volatility | 23.90% | 22.40% | 22.50% |
Dividend yield | 0.30% | 0.40% | 0.70% |
Expected life | 5 years 7 months 6 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Appreciation Rights Award Activity (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, expiration period | 10 years | ||
SARs Activity [Roll Forward] | |||
Outstanding, beginning (in shares) | 27,679 | 35,993 | 39,819 |
Granted (in shares) | 704 | 3,272 | 3,364 |
Exercised (in shares) | (6,029) | (11,261) | (6,790) |
Forfeited (in shares) | (1,300) | (325) | (400) |
Outstanding, ending (in shares) | 21,054 | 27,679 | 35,993 |
Exercisable (in shares) | 16,644 | 27,182 | 27,781 |
SARs, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning (in dollars per share) | $ 75.43 | $ 52.36 | $ 46.48 |
Granted (in dollars per share) | 319.94 | 190.97 | 102.51 |
Exercised (in dollars per share) | 48.62 | 35.37 | 42.08 |
Forfeited (in dollars per share) | 125.36 | 71.43 | 63.43 |
Outstanding, ending (in dollars per share) | 88.18 | 75.43 | 52.36 |
Exercisable (in dollars per share) | $ 64.61 | $ 40.23 | $ 40.73 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Performance-based Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-Employee Directors | Deferred Compensation, Share-based Payments | |||
Non-vested PSU Awards [Roll Forward] | |||
Granted at target level (in shares) | 6,034 | 10,302 | |
Non-vested PSU Awards, Weighted Average Fair Value [Roll Forward] | |||
Granted at target level (in dollars per share) | $ 338.38 | $ 194.29 | |
Stock-settled PSU awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares to be issued upon conversion (in shares) | 144,488 | ||
Average remaining term of shares issued at conversion | 1 year | ||
Non-vested PSU Awards [Roll Forward] | |||
Outstanding, beginning (in shares) | 222,799 | 264,622 | 296,037 |
Granted at target level (in shares) | 37,701 | 53,659 | 84,309 |
Adjustments above/(below) target (in shares) | 50,965 | (14,004) | (50,556) |
Vested and converted (in shares) | (143,465) | (70,074) | (48,964) |
Forfeited (in shares) | (3,526) | (11,404) | (16,204) |
Outstanding, ending (in shares) | 164,474 | 222,799 | 264,622 |
Non-vested PSU Awards, Weighted Average Fair Value [Roll Forward] | |||
Outstanding, beginning (in dollars per share) | $ 116.37 | $ 92.80 | $ 76.84 |
Granted at target level (in dollars per share) | 333.58 | 177.31 | 103.40 |
Adjustments above/(below) target (in dollars per share) | 93.38 | 77.02 | 83.89 |
Vested and converted (in dollars per share) | 272.65 | 173.22 | 102.51 |
Forfeited (in dollars per share) | 152.30 | 104.43 | 69.09 |
Outstanding, ending (in dollars per share) | $ 179.88 | $ 116.37 | $ 92.80 |
Stock-settled PSU awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 0.00% | ||
Stock-settled PSU awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 200.00% | ||
Cash-Settled PSU Awards | |||
Non-vested PSU Awards [Roll Forward] | |||
Outstanding, beginning (in shares) | 2,112 | 1,981 | 1,592 |
Granted at target level (in shares) | 163 | 732 | 806 |
Adjustments above/(below) target (in shares) | 311 | (99) | (206) |
Vested and converted (in shares) | (877) | (502) | (211) |
Forfeited (in shares) | (391) | 0 | 0 |
Outstanding, ending (in shares) | 1,318 | 2,112 | 1,981 |
Non-vested PSU Awards, Weighted Average Fair Value [Roll Forward] | |||
Outstanding, beginning (in dollars per share) | $ 130.13 | $ 93.28 | $ 79.48 |
Granted at target level (in dollars per share) | 320.12 | 190.71 | 102.51 |
Adjustments above/(below) target (in dollars per share) | 91.40 | 74.43 | 56.95 |
Vested and converted (in dollars per share) | 274.29 | 173.22 | 102.51 |
Forfeited (in dollars per share) | 135.64 | 0 | 0 |
Outstanding, ending (in dollars per share) | $ 169.53 | $ 130.13 | $ 93.28 |
Restricted Stock | |||
Non-vested PSU Awards [Roll Forward] | |||
Granted at target level (in shares) | 6,002 | 8,721 | 13,308 |
Non-vested PSU Awards, Weighted Average Fair Value [Roll Forward] | |||
Granted at target level (in dollars per share) | $ 312.41 | $ 200.35 | $ 116.39 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
401 (k) plan contributions | $ 19,500,000 | $ 16,800,000 | $ 15,600,000 |
Employer contribution | 0 | 0 | |
Fair value of plan assets | 249,200,000 | 258,100,000 | |
Accumulated benefit obligation | 265,200,000 | 293,900,000 | |
Expected contribution to the plan | $ 800,000 | ||
Assumed healthcare cost trend rate, benefit obligation | 6.25% | ||
Ultimate healthcare cost trend rate, benefit obligation | 5.00% | ||
Assumed healthcare cost trend rate, net periodic benefit cost | 6.50% | ||
Ultimate healthcare cost trend rate, net periodic benefit cost | 5.00% | ||
Other Nonoperating Income (Expense) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ 1,800,000 | $ 3,700,000 | $ 3,500,000 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.95% | 2.60% | |
Percentage of global plan assets | 80.20% | ||
Expected long-term rate of return on assets | 5.10% | 5.10% | 5.60% |
International plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 49,300,000 | $ 43,900,000 | |
Accumulated benefit obligation | $ 73,000,000 | $ 83,100,000 | |
Discount rate | 1.32% | 0.89% | |
Rate of compensation increase | 2.79% | 2.58% | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ (1,800,000) | $ (3,700,000) | $ (3,500,000) |
Fair value of plan assets | $ 249,200,000 | $ 258,100,000 | $ 244,100,000 |
Discount rate | 2.48% | 2.10% | |
Rate of compensation increase | 2.79% | 2.58% | |
Expected long-term rate of return on assets | 4.93% | 5.10% | 5.54% |
Other retirement benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ 0 | $ 0 | $ 0 |
Fair value of plan assets | 0 | $ 0 | $ 0 |
Expected contribution to the plan | $ 700,000 | ||
Discount rate | 2.75% | 2.30% |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits | |||
Net periodic benefit cost: | |||
Service cost | $ 1.6 | $ 1.5 | $ 1.4 |
Interest cost | 6.2 | 7.1 | 9.2 |
Expected return on plan assets | (11.9) | (11.7) | (12) |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 |
Amortization of actuarial loss (gain) | 1.8 | 2 | 2.1 |
Settlement loss | 1.8 | 3.7 | 3.5 |
Net periodic benefit cost | (0.4) | 2.7 | 4.3 |
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Net (gain) loss arising during period | (6.3) | 1.8 | 1.5 |
Prior service credit arising during period | (2) | 0 | 0 |
Amortization of prior service credit | (0.1) | (0.1) | (0.1) |
Amortization of actuarial (loss) gain | (1.8) | (2) | (2.1) |
Settlement loss | (1.8) | (3.7) | (3.5) |
Foreign currency translation | (0.9) | 1.8 | 0.6 |
Total recognized in OCI | (12.9) | (2.2) | (3.6) |
Total recognized in net periodic benefit cost and OCI | (13.3) | 0.5 | 0.7 |
Pension benefits | United States | |||
Net periodic benefit cost: | |||
Net periodic benefit cost | (2.3) | 1.2 | 2.4 |
Pension benefits | International plans | |||
Net periodic benefit cost: | |||
Net periodic benefit cost | 1.9 | 1.5 | 1.9 |
Other retirement benefits | |||
Net periodic benefit cost: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.2 | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | (0.4) | (0.7) | (0.7) |
Amortization of actuarial loss (gain) | (1.6) | (1.9) | (2.3) |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | (1.8) | (2.4) | (2.8) |
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Net (gain) loss arising during period | (0.9) | (0.4) | 0.1 |
Prior service credit arising during period | 0 | 0 | 0 |
Amortization of prior service credit | 0.4 | 0.7 | 0.7 |
Amortization of actuarial (loss) gain | 1.6 | 1.9 | 2.3 |
Settlement loss | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 |
Total recognized in OCI | 1.1 | 2.2 | 3.1 |
Total recognized in net periodic benefit cost and OCI | (0.7) | (0.2) | 0.3 |
Other retirement benefits | United States | |||
Net periodic benefit cost: | |||
Net periodic benefit cost | (1.8) | (2.4) | (2.8) |
Other retirement benefits | International plans | |||
Net periodic benefit cost: | |||
Net periodic benefit cost | $ 0 | $ 0 | $ 0 |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in plan assets: | |||
Balance | $ 258.1 | ||
Balance | 249.2 | $ 258.1 | |
Pension benefits | |||
Change in benefit obligation: | |||
Balance | (298.9) | (287.9) | |
Service cost | (1.6) | (1.5) | $ (1.4) |
Interest cost | (6.2) | (7.1) | (9.2) |
Participants’ contributions | (0.6) | (0.3) | |
Actuarial (loss) gain | 12.1 | (22.1) | |
Amendments/transfers in | 2 | 0 | |
Benefits paid | 7.1 | 6.2 | |
Curtailment gain | 0 | 0.1 | |
Settlement loss | 13.1 | 18.6 | |
Foreign currency translation | 3.2 | (4.9) | |
Balance | (269.8) | (298.9) | (287.9) |
Change in plan assets: | |||
Balance | 258.1 | 244.1 | |
Actual return on plan assets | 6.1 | 31.8 | |
Employer contribution | 3.6 | 4.8 | |
Participants’ contributions | 0.6 | 0.3 | |
Benefits paid | (5.2) | (6) | |
Settlement loss | (13.1) | (18.6) | |
Foreign currency translation | (0.9) | 1.7 | |
Balance | 249.2 | 258.1 | 244.1 |
Funded status at end of year | (20.6) | (40.8) | |
Other retirement benefits | |||
Change in benefit obligation: | |||
Balance | (6.1) | (6.6) | |
Service cost | 0 | 0 | 0 |
Interest cost | (0.2) | (0.2) | (0.2) |
Participants’ contributions | (0.5) | (0.1) | |
Actuarial (loss) gain | 0.9 | 0.5 | |
Amendments/transfers in | 0 | 0 | |
Benefits paid | 0.3 | 0.3 | |
Curtailment gain | 0 | 0 | |
Settlement loss | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Balance | (5.6) | (6.1) | (6.6) |
Change in plan assets: | |||
Balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | (0.2) | 0.2 | |
Participants’ contributions | 0.5 | 0.1 | |
Benefits paid | (0.3) | (0.3) | |
Settlement loss | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Balance | 0 | 0 | $ 0 |
Funded status at end of year | $ (5.6) | $ (6.1) |
Benefit Plans - Amounts Recogni
Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Current liabilities | $ (2.4) | $ (2.3) |
Noncurrent liabilities | (40.5) | (57.5) |
Pension benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Noncurrent assets | 16.7 | 12.9 |
Current liabilities | (1.7) | (1.6) |
Noncurrent liabilities | (35.6) | (52.1) |
Total liabilities | (20.6) | (40.8) |
Other retirement benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (0.7) | (0.7) |
Noncurrent liabilities | (4.9) | (5.4) |
Total liabilities | $ (5.6) | $ (6.1) |
Benefit Plans - Amounts Recog_2
Benefit Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net actuarial loss (gain) | $ 56.5 | $ 67.3 |
Prior service cost (credit) | (1.3) | 0.8 |
Total | 55.2 | 68.1 |
Other retirement benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net actuarial loss (gain) | (4.7) | (5.4) |
Prior service cost (credit) | 0 | (0.4) |
Total | $ (4.7) | $ (5.8) |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2022 | $ 16.1 |
2023 | 16.4 |
2024 | 16.1 |
2025 | 15.8 |
2026 | 15.5 |
2027 to 2031 | 74.8 |
Total benefit payments expected | 154.7 |
United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2022 | 13.7 |
2023 | 14 |
2024 | 13.4 |
2025 | 12.7 |
2026 | 11.9 |
2027 to 2031 | 55.2 |
Total benefit payments expected | 120.9 |
International plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2022 | 2.4 |
2023 | 2.4 |
2024 | 2.7 |
2025 | 3.1 |
2026 | 3.6 |
2027 to 2031 | 19.6 |
Total benefit payments expected | $ 33.8 |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits | |||
Weighted average assumptions used in net periodic benefit cost: | |||
Discount rate | 2.29% | 2.61% | 2.70% |
Rate of compensation increase | 2.41% | 2.33% | 2.41% |
Expected long-term rate of return on assets | 4.93% | 5.10% | 5.54% |
Weighted average assumptions used in benefit obligations: | |||
Discount rate | 2.48% | 2.10% | |
Rate of compensation increase | 2.79% | 2.58% | |
Other retirement benefits | |||
Weighted average assumptions used in net periodic benefit cost: | |||
Discount rate | 2.30% | 3.20% | 4.20% |
Weighted average assumptions used in benefit obligations: | |||
Discount rate | 2.75% | 2.30% |
Benefit Plans - Weighted Averag
Benefit Plans - Weighted Average Interest Crediting Rating by Geographic Location (Details) - Pension benefits | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Weighted-average interest crediting rating used to determine net periodic benefit cost | 3.31% | 3.30% | 3.30% |
International plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Weighted-average interest crediting rating used to determine net periodic benefit cost | 0.67% | 0.52% | 0.85% |
Benefit Plans - Allocation of P
Benefit Plans - Allocation of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 100.00% | 100.00% |
Fair value of plan assets | $ 249.2 | $ 258.1 |
Pension plan assets in the fair value hierarchy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 49.5 | 43.7 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.6 | 1.5 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47.9 | 42.2 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Pension plan assets measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 199.7 | 214.4 |
Cash | Pension plan assets in the fair value hierarchy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.6 | 1.5 |
Cash | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.6 | 1.5 |
Cash | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 12.00% | 34.00% |
Equity securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5.00% | |
Equity securities | Pension plan assets in the fair value hierarchy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 21.2 | $ 20.6 |
Equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21.2 | 20.6 |
Equity securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 86.00% | 64.00% |
Debt securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 95.00% | |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 2.00% | 2.00% |
Other | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 0.00% | |
Mutual funds | Pension plan assets in the fair value hierarchy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 22.1 | $ 18.7 |
Mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22.1 | 18.7 |
Mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other mutual funds | Pension plan assets in the fair value hierarchy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.6 | 2.9 |
Other mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.6 | 2.9 |
Other mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Minimum | Equity securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 2.00% | |
Minimum | Debt securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 92.00% | |
Minimum | Other | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 0.00% | |
Maximum | Equity securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 8.00% | |
Maximum | Debt securities | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 98.00% | |
Maximum | Other | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 3.00% |
Other Expense (Income) - Schedu
Other Expense (Income) - Schedule of Other (Income) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Severance and post-employment benefits | $ 0.6 | $ 4.6 | $ 2.6 |
Asset-related charges | 0 | 0 | 0.3 |
Other charges | 1.6 | 0 | 2 |
Total restructuring and related charges | 2.2 | 4.6 | 4.9 |
Fixed asset impairments and sale of equipment, net | 1.3 | 7.7 | 0.8 |
Argentina currency devaluation | 0 | 0 | 1 |
Brazil tax recovery | 0 | 0 | (4.7) |
Development and licensing income | (0.9) | (0.9) | (0.9) |
Contingent consideration | 1.5 | 1.2 | 2.1 |
Foreign exchange transaction gains | (1.4) | (1.5) | (4.6) |
Cost investment activity | 4.3 | 2.5 | 0 |
Other items | 0.9 | (1.6) | (1.1) |
Total other expense | $ 7.9 | $ 12 | $ (2.5) |
Other Expense (Income) - Narrat
Other Expense (Income) - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2020 | Feb. 28, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2013 | |
Summary of Investment Holdings [Line Items] | ||||||
Total restructuring and related charges | $ 2.2 | $ 4.6 | $ 4.9 | |||
Severance Costs | 0.6 | 4.6 | 2.6 | |||
Asset-related charges | 0 | 0 | 0.3 | |||
Other charges | 1.6 | 0 | 2 | |||
Impairment of cost method investments | 4.6 | 2.5 | ||||
Gain on sale of investments | 0.3 | |||||
Argentina currency devaluation | 0 | 0 | 1 | |||
Tax recovery | 0 | 0 | 4.7 | |||
Development and licensing income | 0.9 | 0.9 | 0.9 | |||
Deferred income | 61.3 | 57.1 | ||||
SmartDose | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Development and licensing income | 0.9 | $ 0.9 | 0.9 | |||
Deferred income | $ 20 | |||||
2020 Restructuring Plan | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Restructuring and related activities, period of implementation | 24 months | |||||
Restructuring and related cost, cumulative cost incurred | 6.8 | |||||
Restructuring charges | 2.2 | |||||
2018 Restructuring Plan | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Restructuring and related activities, period of implementation | 24 months | |||||
Restructuring and related cost, expected cost | $ 16 | |||||
Restructuring and related cost, cumulative cost incurred | 13.7 | |||||
Total restructuring and related charges | 4.9 | |||||
Severance Costs | 2.6 | |||||
Asset-related charges | 0.3 | |||||
Other charges | 2 | |||||
Restructuring charges | 0.3 | |||||
Argentina currency devaluation | $ 1 | |||||
Minimum | 2020 Restructuring Plan | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Restructuring and related cost, expected cost | $ 15 | 7 | ||||
Effect on future earnings, amount | 3.5 | 0.9 | ||||
Maximum | 2020 Restructuring Plan | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Restructuring and related cost, expected cost | 17 | 8 | ||||
Effect on future earnings, amount | $ 4.5 | $ 1.6 |
Other Expense (Income) - Sche_2
Other Expense (Income) - Schedule of Restructuring and Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | $ 7.8 | ||
Restructuring , ending balance | 4.6 | $ 7.8 | |
2020 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | 4.6 | ||
Charges | 2.2 | ||
Cash payments | (3.5) | ||
Restructuring , ending balance | 3.3 | 4.6 | |
2020 Restructuring Plan | Severance and benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | 4.6 | ||
Charges | 0.6 | ||
Cash payments | (2.4) | ||
Restructuring , ending balance | 2.8 | 4.6 | |
2020 Restructuring Plan | Other charges | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | 0 | ||
Charges | 1.6 | ||
Cash payments | (1.1) | ||
Restructuring , ending balance | 0.5 | 0 | |
2018 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | 0.1 | 1.4 | |
Charges | $ 0.3 | ||
Cash payments | (0.1) | (1.3) | |
Restructuring , ending balance | 0 | 0.1 | 1.4 |
2018 Restructuring Plan | Severance and benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring beginning balance | 0.1 | 1.4 | |
Cash payments | (0.1) | (1.3) | |
Restructuring , ending balance | $ 0 | $ 0.1 | $ 1.4 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $ 10.4 | $ 5 |
Increase due to current year position | 16.3 | 4.9 |
Decrease due to prior year position | (1) | |
Increase due to prior year position | 0.6 | |
Reduction for expiration of statute of limitations/audits | (0.8) | (0.1) |
Balance at December 31 | $ 24.9 | $ 10.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Accrued liabilities for interest and penalties | $ 0.5 | $ 0.3 | |
Total gross unrecognized tax benefits | 24.9 | 10.4 | $ 5 |
Unrecognized tax benefits that would impact effective tax rate | 16.7 | ||
Estimated increase (decrease) in the liability for unrecognized tax benefits | 0.4 | ||
Tax benefit from impact of tax law changes enacted | 1.4 | 0.5 | 0.3 |
Effective income tax rate reconciliation, deduction, amount | 18.5 | ||
Tax benefit from stock-based compensation | 31.5 | $ 20.8 | 10.3 |
Operating loss carryforwards, state and local | 10.6 | ||
Operating loss carryforwards, foreign | 3.4 | 0.8 | |
Undistributed earnings of foreign subsidiaries | 635.3 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 138.6 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 20 | ||
Operating loss carryforwards, not subject to expiration | 18 | ||
Research Tax Credit Carryforward | State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward | 0.4 | $ 1 | |
Year 2021 | State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 4.4 | ||
Year 2022 | State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 7.8 | ||
Year After 2022 | State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 130.8 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 420 | $ 227 | $ 161.2 |
International operations | 328.9 | 174.3 | 130.6 |
Total income before income taxes | $ 748.9 | $ 401.3 | $ 291.8 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 64.8 | $ 28.9 | $ 10.8 |
State | 10.9 | 3.4 | 2.4 |
International | 74.4 | 46 | 30.5 |
Current income tax provision | 150.1 | 78.3 | 43.7 |
Deferred: | |||
Federal and state | 7.3 | 0.2 | 10.3 |
International | (50.2) | (6) | 5 |
Deferred income tax provision | (42.9) | (5.8) | 15.3 |
Income tax expense | $ 107.2 | $ 72.5 | $ 59 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 14 | $ 21.4 |
Tax credit carryforwards | 1.5 | 2 |
Pension and deferred compensation | 31.6 | 35.3 |
Royalty acceleration | 45.1 | 0 |
Other | 12.2 | 11 |
Valuation allowance | (12.2) | (15.1) |
Total deferred tax assets | 92.2 | 54.6 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 47.2 | 42.1 |
Tax on undistributed earnings of subsidiaries | 1.8 | 6.5 |
Other | (0.4) | 0.4 |
Total deferred tax liabilities | 48.6 | 49 |
Net deferred tax asset (liability) | $ 43.6 | $ 5.6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal corporate tax rate | 21.00% | 21.00% | 21.00% |
Tax on international operations other than U.S. tax rate | 1.90% | 1.20% | 2.70% |
Adjustments to reserves for unrecognized tax benefits | 0.10% | 1.40% | 0.40% |
U.S. tax on international earnings, net of foreign tax credits | 0.30% | 0.40% | 0.40% |
Foreign-Derived Intangible Income Deductions (FDII) | (1.50%) | (1.10%) | (0.60%) |
State income taxes, net of federal tax effect | (0.10%) | 1.20% | 1.40% |
U.S. research and development credits | (0.40%) | (0.70%) | (1.00%) |
Excess tax benefits on share-based payments | (4.20%) | (5.20%) | (3.50%) |
Royalty acceleration | (2.50%) | 0.00% | 0.00% |
Tax on undistributed earnings of subsidiaries | (0.60%) | 0.10% | (0.20%) |
Other | 0.30% | (0.20%) | (0.40%) |
Effective tax rate | 14.30% | 18.10% | 20.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Outstanding unconditional contractual commitments for the purchase of raw materials, utilities and equipment | $ 93.6 |
Outstanding unconditional contractual commitments due to be paid in 2021 | 48.3 |
Insurance Claims | |
Loss Contingencies [Line Items] | |
Accrual for insurance obligations | 3.1 |
Amount reimbursable by the insurance company | 0.9 |
Letter of Credit | Revolving credit facility, due 2024 | |
Loss Contingencies [Line Items] | |
Letters of credit supporting the reimbursement of workers' compensation and other claims | $ 2.4 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Sales by
Segment Information - Sales by Product Group (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Proprietary Products | $ 2,831.6 | $ 2,146.9 | $ 1,839.9 |
Operating Segments | Proprietary Products | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Proprietary Products | 2,317.3 | 1,648.6 | 1,398.6 |
Operating Segments | Contract-Manufactured Products | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Proprietary Products | 514.7 | 498.6 | 441.5 |
Intersegment sales elimination | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Proprietary Products | $ (0.4) | $ (0.3) | $ (0.2) |
Segment Information - Sales and
Segment Information - Sales and Long-lived Assets by Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | $ 2,831.6 | $ 2,146.9 | $ 1,839.9 |
Long-Lived Assets | 1,126.8 | 1,011.5 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 1,198 | 975.6 | 814.7 |
Long-Lived Assets | 504.1 | 407.8 | |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 474.3 | 282.1 | 236.3 |
Long-Lived Assets | 124.1 | 112 | |
Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 247.6 | 226 | 173.8 |
Long-Lived Assets | 187.3 | 197.6 | |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 213 | 172.7 | 150.6 |
Long-Lived Assets | 86.1 | 76 | |
Other European countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 341.3 | 236.8 | 251.1 |
Long-Lived Assets | 65.1 | 66.8 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Proprietary Products | 357.4 | 253.7 | $ 213.4 |
Long-Lived Assets | $ 160.1 | $ 151.3 |
Segment Information - Segment F
Segment Information - Segment Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating Profit | $ 752.3 | $ 406.9 | $ 296.6 |
Stock-based compensation expense | (37.5) | (34) | (24.4) |
Amortization of acquisition-related intangible assets | (5.4) | (4.4) | (3.4) |
Asset-related charges | 0 | 0 | (0.3) |
Tax recovery | 0 | 0 | 4.7 |
Other expense/(income), net | 3.4 | 5.6 | 4.8 |
Total income before income taxes | 748.9 | 401.3 | 291.8 |
Impairment of cost method investments | 4.6 | 2.5 | |
Assets | 3,313.8 | 2,793.8 | |
Depreciation and Amortization | 122.3 | 109.1 | 103.4 |
Capital Expenditures | 253.4 | 174.4 | 126.4 |
Foreign exchange transaction gains | (1.4) | (1.5) | (4.6) |
Second Quarter 2020 Acquisiiton | |||
Segment Reporting Information [Line Items] | |||
Amortization of acquisition-related intangible assets | (0.8) | (0.6) | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Profit | 863.3 | 503.1 | 362.7 |
Tax recovery | 4.4 | ||
Corporate and Unallocated | |||
Segment Reporting Information [Line Items] | |||
Operating Profit | (111) | (96.2) | (66.1) |
Stock-based compensation expense | (37.5) | (34) | (24.4) |
Corporate general costs | (63.4) | (52.1) | (41.9) |
Restructuring charges | (2.2) | (7) | (4.9) |
Amortization of acquisition-related intangible assets | (0.8) | (0.6) | 0 |
Asset-related charges | (2.8) | 0 | 0 |
Cost investment activity | (4.3) | (2.5) | 0 |
Gain on restructuring-related sale of assets | 0 | 0 | 1.7 |
Argentina currency devaluation | 0 | 0 | (1) |
Tax recovery | 0 | 0 | 4.4 |
Impairment of cost method investments | 4.6 | ||
Gain on sale of investments | 0.3 | ||
Assets | 717.5 | 583.9 | |
Depreciation and Amortization | 7.4 | 4.1 | 3.3 |
Capital Expenditures | 8.8 | 9.9 | 1.6 |
Corporate and Unallocated | Cost of goods and services sold | |||
Segment Reporting Information [Line Items] | |||
Asset-related charges | (1.9) | ||
Corporate and Unallocated | Selling, General and Administrative Expenses | |||
Segment Reporting Information [Line Items] | |||
Asset-related charges | (0.9) | ||
Proprietary Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Profit | 796.1 | 434.5 | 313.6 |
Assets | 2,152.6 | 1,798.3 | |
Depreciation and Amortization | 93.8 | 84.6 | 82.2 |
Capital Expenditures | 218 | 139.5 | 88.7 |
Contract-Manufactured Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Profit | 67.2 | 68.6 | 49.1 |
Assets | 443.7 | 411.6 | |
Depreciation and Amortization | 21.1 | 20.4 | 17.9 |
Capital Expenditures | $ 26.6 | $ 25 | $ 36.1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 16.2 | $ 16.4 | $ 18 |
Charged to costs and expenses | (3.6) | 0.7 | 0.1 |
Deductions | 0 | (0.9) | (1.7) |
Balance at end of period | 12.6 | 16.2 | 16.4 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 15.1 | 15.9 | 16 |
Charged to costs and expenses | (2.9) | 0 | 0 |
Deductions | 0 | (0.8) | (0.1) |
Balance at end of period | 12.2 | 15.1 | 15.9 |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 1.1 | 0.5 | 2 |
Charged to costs and expenses | (0.7) | 0.7 | 0.1 |
Deductions | 0 | (0.1) | (1.6) |
Balance at end of period | $ 0.4 | $ 1.1 | $ 0.5 |