Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information Abstract | ' | ' |
Entity Registrant Name | 'BEMIS CO INC | ' |
Entity Central Index Key | '0000011199 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 100,853,359 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $1,237.80 | $1,255 |
Cost of products sold | 1,023.20 | 1,013.20 |
Gross profit | 214.6 | 241.8 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 122.7 | 130.6 |
Research and development | 13.1 | 11.3 |
Facility consolidation and other costs | 0 | 9.3 |
Other operating (income) expense, net | -0.4 | -1.5 |
Operating income | 79.2 | 92.1 |
Interest expense | 16.9 | 16.6 |
Other non-operating (income) expense, net | -12.6 | 4.1 |
Income before income taxes | 74.9 | 71.4 |
Provision for income taxes | 25.7 | 22.1 |
Net income | $49.20 | $49.30 |
Basic earnings per share (in dollars per share) | $0.48 | $0.48 |
Diluted earnings per share (in dollars per share) | $0.48 | $0.47 |
Cash dividends paid per share (in dollars per share) | $0.27 | $0.26 |
CONDENSED_STATEMENT_OF_COMPREH
CONDENSED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $49.20 | $49.30 |
Translation adjustments | 10 | 8.4 |
Pension and other postretirement liability adjustments, net of tax | 1.3 | 4.2 |
Other comprehensive income (loss) | 11.3 | 12.6 |
Total comprehensive income | 60.5 | 61.9 |
Tax amounts related to pension and postretirement liability adjustments | ($0.70) | ($2.60) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $152.20 | $141.70 |
Accounts receivable, net | 654.1 | 615.4 |
Inventories | 665.9 | 648.5 |
Prepaid expenses and other current assets | 110.5 | 98.9 |
Total current assets | 1,582.70 | 1,504.50 |
Property and equipment, net | 1,242.70 | 1,284.30 |
Goodwill | 1,046.30 | 1,052.20 |
Other intangible assets, net | 187 | 190.6 |
Deferred charges and other assets | 89.5 | 78.6 |
Total other long-term assets | 1,322.80 | 1,321.40 |
TOTAL ASSETS | 4,148.20 | 4,110.20 |
LIABILITIES | ' | ' |
Current portion of long-term debt | 0.1 | 0.2 |
Short-term borrowings | 18.4 | 14.7 |
Accounts payable | 395 | 362.8 |
Accrued salaries and wages | 84.3 | 99.6 |
Accrued income and other taxes | 56.7 | 32.3 |
Other current liabilities | 90.5 | 92.3 |
Total current liabilities | 645 | 601.9 |
Long-term debt, less current portion | 1,441.50 | 1,421.40 |
Deferred taxes | 258.5 | 269.8 |
Other liabilities and deferred credits | 126.2 | 132.3 |
Total Liabilities | 2,471.20 | 2,425.40 |
Bemis Company, Inc. shareholders' equity: | ' | ' |
Common stock issued | 12.8 | 12.8 |
Capital in excess of par value | 550.5 | 548.1 |
Retained earnings | 2,026.80 | 2,005.10 |
Accumulated other comprehensive loss | -87.4 | -98.7 |
Common stock held in treasury | -825.7 | -782.5 |
Total Equity | 1,677 | 1,684.80 |
TOTAL LIABILITIES AND EQUITY | $4,148.20 | $4,110.20 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, shares issued | 128 | 127.9 |
Common stock held in treasury, shares | 27.1 | 26 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $49.20 | $49.30 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 47.6 | 49.2 |
Excess tax benefit from share-based payment arrangements | -0.4 | 0 |
Share-based compensation | 3.5 | 4.5 |
Deferred income taxes | -12.5 | 5.8 |
Income of unconsolidated affiliated company | -0.4 | -0.6 |
(Gain) loss on sale of property and equipment | 0 | 0.2 |
Net facility consolidation and other costs | 0 | -1.7 |
Gain on divestiture | -9.4 | 0 |
Changes in working capital, excluding effect of acquisitions, divestitures and currency | -56.8 | -100.7 |
Changes in other assets and liabilities | -8.3 | 2.4 |
Net cash provided by operating activities | 12.5 | 8.4 |
Cash flows from investing activities | ' | ' |
Additions to property and equipment | -33.5 | -27.2 |
Business acquisitions and adjustments, net of cash acquired | 0 | 0.2 |
Proceeds from sale of property and equipment | 2.5 | 0.3 |
Proceeds from Divestiture | 79.8 | 0 |
Net cash provided by (used in) investing activities | 48.8 | -26.7 |
Cash flows from financing activities | ' | ' |
Net borrowing of commercial paper | 13.3 | 129.2 |
Net (repayment) borrowing of short-term debt | 5.1 | 0.1 |
Cash dividends paid to shareholders | -27.5 | -27.2 |
Common stock purchased for the treasury | -43.2 | -35.6 |
Excess tax benefit from share-based payment arrangements | 0.4 | 0 |
Stock incentive programs and related tax withholdings | -1.5 | -12.7 |
Net cash (used in) provided by financing activities | -53.4 | 53.8 |
Effect of exchange rates on cash and cash equivalents | 2.6 | 3.1 |
Net increase in cash and cash equivalents | 10.5 | 38.6 |
Cash and cash equivalents balance at beginning of year | 141.7 | 114.1 |
Cash and cash equivalents balance at end of period | $152.20 | $152.70 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Common Stock | Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock Held In Treasury |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $1,640.90 | $12.70 | $545.40 | $1,900.90 | ($112.90) | ($705.20) |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 49.3 | ' | ' | 49.3 | ' | ' |
Other comprehensive income (loss) | 12.6 | ' | ' | ' | 12.6 | ' |
Cash dividends declared on common stock | -26.9 | ' | ' | -26.9 | ' | ' |
Stock incentive programs and related tax withholdings | -12.7 | 0.1 | -12.8 | ' | ' | ' |
Excess tax benefit (expense) from share-based payment arrangements | -0.9 | ' | -0.9 | ' | ' | ' |
Share-based compensation | 4.5 | ' | 4.5 | ' | ' | ' |
Purchase of common stock | -35.6 | ' | ' | ' | ' | -35.6 |
Balance at Mar. 31, 2013 | 1,631.20 | 12.8 | 536.2 | 1,923.30 | -100.3 | -740.8 |
Balance at Dec. 31, 2013 | 1,684.80 | 12.8 | 548.1 | 2,005.10 | -98.7 | -782.5 |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 49.2 | ' | ' | 49.2 | ' | ' |
Other comprehensive income (loss) | 11.3 | ' | ' | ' | 11.3 | ' |
Cash dividends declared on common stock | -27.5 | ' | ' | -27.5 | ' | ' |
Stock incentive programs and related tax withholdings | -1.5 | ' | -1.5 | ' | ' | ' |
Excess tax benefit (expense) from share-based payment arrangements | 0.4 | ' | 0.4 | ' | ' | ' |
Share-based compensation | 3.5 | ' | 3.5 | ' | ' | ' |
Purchase of common stock | -43.2 | ' | ' | ' | ' | -43.2 |
Balance at Mar. 31, 2014 | $1,677 | $12.80 | $550.50 | $2,026.80 | ($87.40) | ($825.70) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Stock incentive programs and related tax withholdings, shares | 100,000 | 600,000 |
Purchase of common stock, shares | 1,100,000 | 1,000,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared by Bemis Company, Inc. (the "Company") in accordance with accounting principles for interim financial information generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position and results of operations. It is management’s opinion, however, that all material adjustments (consisting of normal recurring accruals) have been made which are necessary for a fair financial statement presentation. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
New_Accounting_Guidance_Notes
New Accounting Guidance (Notes) | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Guidance [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
New Accounting Guidance | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued new guidance that redefines a | |
discontinued operation as a component or group of components that has been disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s financial results. Continuing involvement will no longer preclude presentation as a discontinued operation. The guidance is required to be applied by the Company prospectively to new disposals and new classifications of disposal groups as held for sale beginning in fiscal 2015. However, early adoption is permitted. The Company does not expect the adoption of this standard will have a material impact on the consolidated financial statements. |
Divestiture_Notes
Divestiture (Notes) | 3 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' |
Divestiture and Plant Closure | |
Divestiture of Paper Packaging Division | |
On March 31, 2014, the Company completed the sale of its Paper Packaging Division. Annual net sales by this division were approximately $160 million. Net proceeds of the transaction totaled $79.8 million, subject to customary post-closing adjustments. A $9.4 million pre-tax gain on the sale was recorded as part of other non-operating (income) expense for the three months ended March 31, 2014. | |
Pressure Sensitive Materials Plant Closure | |
In March 2014, the Company announced that it will close its plant in Stow, Ohio, one of its Pressure Sensitive Materials manufacturing facilities. Total estimated costs are approximately $30 million, with approximately $26 million in cash payments expected. During the three months ended March 31, 2014, plant closure costs of $25.0 million were recorded. These costs were primarily recorded within cost of products sold ($23.8 million) and included the Company's best estimate of a withdrawal liability for a multi-employer pension plan settlement. Management expects to cease operations at this location in May 2014, with all closure costs and cash payments to be incurred during fiscal 2014. |
Financial_Assets_and_Financial
Financial Assets and Financial Liabilities Measured at Fair Value | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Assets and Financial Liabilities Measured at Fair Value | ' | ||||||||||||||||
Financial Assets and Financial Liabilities Measured at Fair Value | |||||||||||||||||
The fair values of the Company’s financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). | |||||||||||||||||
The Company’s non-derivative financial instruments include cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings, and long-term debt. At March 31, 2014 and December 31, 2013, the carrying value of these financial instruments, excluding long-term debt, approximates fair value because of the short-term maturities of these instruments. | |||||||||||||||||
Fair value disclosures are classified based on the fair value hierarchy. Level 1 fair value measurements represent exchange-traded securities which are valued at quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Level 2 fair value measurements are determined using input prices that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 fair value measurements are determined using unobservable inputs, such as internally developed pricing models for the asset or liability due to little or no market activity for the asset or liability. | |||||||||||||||||
The fair value measurements of the Company’s long-term debt represent non-active market exchange-traded securities which are valued at quoted prices or using input prices that are directly observable or indirectly observable through corroboration with observable market data. The carrying values and estimated fair values of long-term debt at March 31, 2014 and December 31, 2013 follow: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | |||||||||||||
Long-term debt | $ | 1,441.50 | $ | 1,552.30 | $ | 1,421.40 | $ | 1,520.10 | |||||||||
The fair values for derivatives are based on inputs other than quoted prices that are observable for the asset or liability. These inputs include interest rates. The financial assets and financial liabilities are primarily valued using standard calculations / models that use as their basis readily observable market parameters. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and currency rates, with resulting valuations periodically validated through third-party or counterparty quotes. | |||||||||||||||||
Fair Value As of | Fair Value As of | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | (Level 2) | (Level 2) | |||||||||||||||
Interest rate swaps — net liability position | $ | 13.5 | $ | 20.2 | |||||||||||||
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Derivative Instruments | ' | ||||||||||
Derivative Instruments | |||||||||||
The Company enters into derivative transactions to manage exposures arising in the normal course of business. The Company does not enter into derivative transactions for speculative or trading purposes. The Company recognizes all derivative instruments on the balance sheet at fair value. Derivatives not designated as hedging instruments are adjusted to fair value through income. Depending on the nature of derivatives designated as hedging instruments, changes in the fair value are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in shareholders’ equity through other comprehensive income until the hedged item is recognized. Gains or losses, if any, related to the ineffective portion of any hedge are recognized through earnings in the current period. | |||||||||||
The Company enters into interest rate swap contracts to economically convert a portion of the Company’s fixed-rate debt to variable rate debt. During the fourth quarter of 2011, the Company entered into four interest rate swap agreements with a total notional amount of $400 million. These contracts were designated as fair value hedges of the Company’s $400 million 4.50 percent fixed-rate debt due in 2021. The variable rate for each of the interest rate swaps is based on the six-month London Interbank Offered Rate (LIBOR), set in arrears, plus a fixed spread. The variable rates are reset semi-annually at each net settlement date. Fair values of these interest rate swaps are determined using discounted cash flow or other appropriate methodologies. Asset positions are included in deferred charges and other assets with a corresponding increase in long-term debt. Liability positions are included in other liabilities and deferred credits with a corresponding decrease in long-term debt. | |||||||||||
The Company enters into forward exchange contracts to manage foreign currency exchange rate exposures associated with certain foreign currency denominated receivables and payables. Forward exchange contracts generally have maturities of less than six months and relate primarily to major Western European currencies for the Company’s European operations, the U.S. dollar for the Company’s Brazilian operations, and the U.S. and Australian dollars for the Company’s New Zealand and Australian operations. The Company has not designated these derivative instruments as hedging instruments. At March 31, 2014 and December 31, 2013, the Company had outstanding forward exchange contracts with notional amounts aggregating $10.3 million and $5.5 million, respectively. The net settlement amount (fair value) related to active forward exchange contracts is recorded on the balance sheet as either a current or long-term asset or liability and as an element of other operating income which offsets the related transaction gains or losses. The net settlement amounts were immaterial for all periods presented. | |||||||||||
The Company is exposed to credit loss in the event of non-performance by counterparties in forward exchange contracts and interest-rate swap contracts. Collateral is generally not required of the counterparties or of the Company. In the event a counterparty fails to meet the contractual terms of a currency swap or forward exchange contract, the Company’s risk is limited to the fair value of the instrument. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. The Company has not had any historical instances of non-performance by any counterparties, nor does it anticipate any future instances of non-performance. | |||||||||||
The fair values, balance sheet presentation, and the hedge designation status of derivative instruments at March 31, 2014 and December 31, 2013 are presented in the table below: | |||||||||||
Fair Value (Level 2) as of | |||||||||||
(in millions) | Balance Sheet Location | 31-Mar-14 | 31-Dec-13 | ||||||||
Liability Derivatives | |||||||||||
Interest rate swaps — designated as hedge | Other liabilities and deferred credits | $ | 13.5 | $ | 20.2 | ||||||
The income statement impact of derivatives are presented in the table below: | |||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | Location of Gain (Loss) Recognized in Income on Derivatives | 2014 | 2013 | ||||||||
Designated as hedges | |||||||||||
Interest rate swaps | Interest expense | $ | 2.1 | $ | 2 | ||||||
Not designated as hedges | |||||||||||
Forward exchange contracts | Other operating income | (0.3 | ) | — | |||||||
Total | $ | 1.8 | $ | 2 | |||||||
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are valued at the lower of cost, as determined by the first-in, first-out (FIFO) method, or market. Inventory values using the FIFO method of accounting approximate replacement cost. Inventories are summarized as follows: | |||||||||
(in millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 217.7 | $ | 215.6 | |||||
Work in process and finished goods | 448.2 | 432.9 | |||||||
Total inventories | $ | 665.9 | $ | 648.5 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
Changes in the carrying amount of goodwill attributable to each reportable business segment follow: | |||||||||||||||||
(in millions) | U.S. Packaging Segment | Global Packaging Segment | Pressure Sensitive Materials Segment | Total | |||||||||||||
Reported balance at December 31, 2013 | $ | 632.3 | $ | 367.3 | $ | 52.6 | $ | 1,052.20 | |||||||||
Reclassification | 12.8 | (12.8 | ) | — | — | ||||||||||||
Divestiture | (10.1 | ) | — | — | (10.1 | ) | |||||||||||
Currency translation | (0.4 | ) | 4.6 | — | 4.2 | ||||||||||||
Reported balance at March 31, 2014 | $ | 634.6 | $ | 359.1 | $ | 52.6 | $ | 1,046.30 | |||||||||
The components of amortized intangible assets follow: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Intangible Assets | Amount | Amortization | Amount | Amortization | |||||||||||||
Contract based | $ | 25.7 | $ | (14.3 | ) | $ | 26.2 | $ | (14.4 | ) | |||||||
Technology based | 82.6 | (42.1 | ) | 82.6 | (40.9 | ) | |||||||||||
Marketing related | 23.5 | (14.5 | ) | 23 | (14.2 | ) | |||||||||||
Customer based | 200.6 | (74.5 | ) | 200.1 | (71.8 | ) | |||||||||||
Reported balance | $ | 332.4 | $ | (145.4 | ) | $ | 331.9 | $ | (141.3 | ) | |||||||
Amortization expense for intangible assets was $3.9 million during the first three months of 2014 and 2013. Estimated amortization expense for the remainder of 2014 is $11.8 million; $15.7 million for 2015; $15.5 million for 2016; $15.4 million for 2017 and 2018; and $15.2 million for 2019. The Company does not have any accumulated impairment losses. |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||
Components of Net Periodic Benefit Cost | |||||||||
Benefit costs for defined benefit pension plans are shown below. The funding policy and assumptions disclosed in the Company’s 2013 Annual Report on Form 10-K are expected to continue unchanged throughout 2014. | |||||||||
Three Months Ended March 31, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Service cost - benefits earned during the period | $ | 1.9 | $ | 3.5 | |||||
Interest cost on projected benefit obligation | 8.6 | 8.1 | |||||||
Expected return on plan assets | (12.0 | ) | (12.0 | ) | |||||
Settlement loss | 0.4 | — | |||||||
Curtailment loss | 0.9 | — | |||||||
Amortization: | |||||||||
Unrecognized transition obligation | 0.1 | 0.1 | |||||||
Prior service cost | 0.4 | 0.4 | |||||||
Actuarial net loss | 2.8 | 6.6 | |||||||
Net periodic benefit cost | $ | 3.1 | $ | 6.7 | |||||
Costs for defined contribution pension plans were $5.4 million and $5.0 million for the three months ended March 31, 2014 and 2013, respectively. For the three months ended March 31, 2014, a curtailment benefit of $3.0 million was recorded related to other postretirement plan changes. Benefit costs for other postretirement plans were not significant for the three months ended March 31, 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
The components and activity of accumulated other comprehensive loss are as follows: | |||||||||||||
(in millions) | Foreign Currency Translation | Pension And Other Postretirement Liability Adjustment | Accumulated Other Comprehensive Loss | ||||||||||
31-Dec-12 | $ | 80.5 | $ | (193.4 | ) | $ | (112.9 | ) | |||||
Other comprehensive income before reclassifications | 8.4 | — | 8.4 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4.2 | 4.2 | ||||||||||
Net current period other comprehensive income | 8.4 | 4.2 | 12.6 | ||||||||||
31-Mar-13 | $ | 88.9 | $ | (189.2 | ) | $ | (100.3 | ) | |||||
December 31, 2013 | $ | (8.0 | ) | $ | (90.7 | ) | $ | (98.7 | ) | ||||
Other comprehensive income before reclassifications | 10 | — | 10 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1.3 | 1.3 | ||||||||||
Net current period other comprehensive income | 10 | 1.3 | 11.3 | ||||||||||
March 31, 2014 | $ | 2 | $ | (89.4 | ) | $ | (87.4 | ) | |||||
Accumulated other comprehensive loss associated with pension and other postretirement liability adjustments are net of tax effects of $54.9 million and $55.6 million as of March 31, 2014 and December 31, 2013, respectively. Reclassifications of $4.2 million ($2.6 million, net of tax) and $7.1 million ($4.2 million, net of tax) for the three months ended March 31, 2014 and 2013, respectively, related to pension costs. An additional reclassification of $2.2 million ($1.3 million, net of tax) for the three months ended March 31, 2014 related to curtailment benefits associated with other postretirement plans. Refer to Note 8 — Components of Net Periodic Benefit Cost for additional detail. |
Earnings_Per_Share_Computation
Earnings Per Share Computations | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share Computations | ' | ||||||||||
Earnings Per Share Computations | |||||||||||
The Company considers unvested share-based payment awards that contain nonforfeitable rights to receive dividends or dividend equivalents (whether paid or unpaid) to be participating securities, and thus includes them in the two-class method of computing earnings per share. Participating securities include a portion of the Company’s unvested employee stock awards, which receive nonforfeitable cash payments equal to the dividend on the Company’s common stock. The calculation of earnings per share for common stock shown below excludes the income attributable to the participating securities from the numerator and excludes the dilutive impact of those awards from the denominator. | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2014 | 2013 | |||||||||
Numerator | |||||||||||
Net income attributable to Bemis Company, Inc. | $ | 49.2 | $ | 49.3 | |||||||
Income allocated to participating securities | — | — | |||||||||
Net income available to common shareholders (1) | $ | 49.2 | $ | 49.3 | |||||||
Denominator | |||||||||||
Weighted average common shares outstanding — basic | 101.5 | 103.2 | |||||||||
Dilutive shares | 0.9 | 1.1 | |||||||||
Weighted average common and common equivalent shares outstanding — diluted | 102.4 | 104.3 | |||||||||
Per common share income | |||||||||||
Basic | $ | 0.48 | $ | 0.48 | |||||||
Diluted | $ | 0.48 | $ | 0.47 | |||||||
(1 | ) | Basic weighted average common shares outstanding | 101.5 | 103.2 | |||||||
Basic weighted average common shares outstanding and participating securities | 101.5 | 103.3 | |||||||||
Percentage allocated to common shareholders | 100 | % | 99.9 | % | |||||||
Certain stock awards outstanding were not included in the computation of diluted earnings per share above because they would not have had a dilutive effect. The excluded stock awards represented an aggregate of 0.4 million shares for the three months ended March 31, 2014. There were no anti-dilutive stock awards outstanding for the three months ended March 31, 2013. |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Proceedings | ' |
Legal Proceedings | |
The Company is involved in a number of lawsuits incidental to its business, including environmental-related litigation and routine litigation arising in the ordinary course of business. Although it is difficult to predict the ultimate outcome of these cases, the Company believes, except as discussed below, that any ultimate liability would not have a material adverse effect on the Company’s consolidated financial condition or results of operations. | |
Environmental Matters | |
The Company is a potentially responsible party ("PRP") pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as "Superfund") and similar state and foreign laws in proceedings associated with seventeen sites around the United States and one in Brazil. These proceedings were instituted by the United States Environmental Protection Agency and certain state and foreign environmental agencies at various times beginning in 1983. Superfund and similar state and foreign laws create liability for investigation and remediation in response to releases of hazardous substances in the environment. Under these statutes, joint and several liability may be imposed on waste generators, site owners and operators, and others regardless of fault. Although these regulations could require the Company to remove or mitigate the effects on the environment at various sites, perform remediation work at such sites, or pay damages for loss of use and non-use values, the Company expects its liability in these proceedings to be limited to monetary damages. The Company expects its future liability relative to these sites to be insignificant, individually and in the aggregate. The Company has accrued an amount that it believes to be adequate to cover its exposure. | |
São Paulo Tax Dispute | |
Dixie Toga Ltda ("Dixie Toga"), acquired by the Company on January 5, 2005, is involved in a tax dispute with the City of São Paulo, Brazil ("City"). The City imposes a tax on the rendering of printing services. The City has assessed this city services tax on the production and sale of printed labels and packaging products. Dixie Toga, along with a number of other packaging companies, disagrees and contends that the city services tax is not applicable to its products and that the products are subject only to the state value added tax ("VAT"). Under Brazilian law, state VAT and city services tax are mutually exclusive and the same transaction can be subject to only one of those taxes. Based on a ruling from the State of São Paulo, advice from legal counsel, and long standing business practice, Dixie Toga appealed the city services tax and instead continued to collect and pay only the state VAT. | |
The City disagreed and assessed Dixie Toga the city services tax for the years 1991-1995. The assessments for those years are estimated to be approximately $48.5 million at the date the Company acquired Dixie Toga, translated to U.S. dollars at the March 31, 2014 exchange rate. Dixie Toga challenged the assessments and ultimately litigated the issue. A decision by the Lower Tax Court in the city of São Paulo canceled all of the assessments for the years 1991-1995. The City, the State of São Paulo, and Dixie Toga had each appealed parts of the lower court decision. On February 8, 2010, the São Paulo Court of Justice issued a Decision in favor of Dixie Toga. This Decision has been appealed by the City. In the event of a successful appeal by the City and an adverse resolution, the estimated amount for these years could be substantially increased for additional interest, monetary adjustments and costs from the date of acquisition. | |
The City has also assessed Dixie Toga and Itap Bemis Ltda., a Company subsidiary ("Itap Bemis"), the city services tax for the years 1996-2001. The assessments for those years were upheld at the administrative level and are being challenged by the companies in the judicial courts. The assessments at the date of acquisition for these years for tax and penalties (exclusive of interest and monetary adjustments) are estimated to be approximately $7.3 million for Itap Bemis and $23.5 million for Dixie Toga, translated to U.S. dollars at the March 31, 2014 exchange rate. In the event of an adverse resolution, the estimated amounts for these years could be increased by $52.4 million for Itap Bemis and $151.5 million for Dixie Toga for interest, monetary adjustments and costs. | |
The City has also assessed the city services tax for the subsequent years 2004-2009 for both entities. The assessments for those years were upheld at the administrative level and are being challenged by the companies in the judicial courts. The assessments for tax, penalties, and interest are estimated to be approximately $51.1 million, translated to U.S. dollars at the March 31, 2014 exchange rate. | |
The Company strongly disagrees with the City’s position and intends to vigorously challenge any assessments by the City. The Company is unable at this time to predict the ultimate outcome of the controversy and as such has not recorded any liability related to this matter. An adverse resolution could be material to the Company's consolidated results of operations and/or cash flows of the period in which the matter is resolved. | |
Brazil Tax Dispute - Goodwill Amortization | |
During October 2013, Dixie Toga, received an income tax assessment in Brazil for the tax years 2009 through 2011 that relates to the amortization of certain goodwill generated from the acquisition of Dixie Toga. The income tax assessed for those years is approximately $16.8 million, translated to U.S. dollars at the March 31, 2014 exchange rate. The Company expects that tax examinations for years after 2011 will include similar assessments as the Company continues to claim the tax benefits associated with the goodwill amortization. An ultimate adverse resolution on these assessments, including interest and penalties, could be material to the Company's consolidated results of operations and/or cash flows. | |
The Company has been advised by its legal and tax advisors that its position with respect to the deductions is allowable under the tax laws of Brazil. The Company is contesting the disallowance and believes it is more likely than not the tax benefit will be sustained in its entirety and consequently has not recorded a liability. The Company intends to litigate the matter if it is not resolved at the administrative appeals levels. The ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which could take several years. At this time, the Company believes that final resolution of the assessment will not have a material impact on the Company's consolidated financial statements. | |
Brazil Investigation | |
On September 18, 2007, the Secretariat of Economic Law ("SDE"), a governmental agency in Brazil, initiated an investigation into possible anti-competitive practices in the Brazilian flexible packaging industry against a number of Brazilian companies including a Dixie Toga subsidiary. The investigation relates to periods prior to the Company’s acquisition of control of Dixie Toga and its subsidiaries. Given the nature of the proceedings, the Company is unable at the present time to predict the outcome of this matter. | |
Multi-employer Defined Benefit Pension Plans | |
As of March 31, 2014, the Company participates in two multi-employer defined benefit pension plans based on obligations arising under collective bargaining agreements covering union-represented employees. The Company does not directly manage these multi-employer pension plans, which are generally managed by boards of trustees, half of whom are appointed by the unions and the other half by employers contributing to the plans. Based on the information provided by the plan administrators, the Company is aware that these plans are underfunded. In addition, pension-related legislation requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, the Company expects its contributions to these plans to increase in the future. | |
Under current law regarding multi-employer defined benefit plans, a plan’s termination, the Company’s voluntary partial or full withdrawal, or the mass withdrawal of all contributing employers from any underfunded multi-employer pension plan would require the Company to make payments to the plan for the Company’s proportionate share of the multi-employer pension plan’s unfunded vested liabilities. In addition, if a multi-employer defined benefit pension plan fails to satisfy certain minimum funding requirements, the IRS may impose a nondeductible excise tax of five percent on the amount of the accumulated funding deficiency for those employers contributing to the fund. It cannot be assured that there will not be a withdrawal event where the amount the Company would be required to contribute would have a material adverse impact on our consolidated financial condition, results of operations or cash flows. | |
Based on the most recently available valuation data, the Company estimates a full withdrawal from both plans would result in a charge of approximately $25 million, with the option to pay the balance in installments over twenty years. During the three months ended March 31, 2014, the Company recorded charges related to the best estimate of a withdrawal liability for the planned withdrawal from the Central States Southeast and Southwest Areas Pension Fund as part of a Pressure Sensitive Materials plant closure (refer to Note 3 — Divestiture and Plant Closure). |
Segments_of_Business
Segments of Business | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segments of Business | ' | ||||||||
Segments of Business | |||||||||
The Company's business activities are organized around and aggregated into its three principal business segments, U.S. Packaging, Global Packaging and Pressure Sensitive Materials, based on their similar economic characteristics, products, production process, types of customers, and distribution methods. Both internal and external reporting conforms to this organizational structure, with no significant differences in accounting policies applied. Minor intersegment sales are generally priced to reflect nominal markups. The Company evaluates the performance of its segments and allocates resources to them based primarily on operating profit, which is defined as profit before general corporate expense, interest expense, other non-operating (income) expense, and income taxes. | |||||||||
A summary of the Company’s business activities reported by its three business segments follows: | |||||||||
Three Months Ended March 31, | |||||||||
Business Segments (in millions) | 2014 | 2013 | |||||||
Sales including intersegment sales: | |||||||||
U.S. Packaging | $ | 745.6 | $ | 753 | |||||
Global Packaging | 361.7 | 374.3 | |||||||
Pressure Sensitive Materials | 143.1 | 140.8 | |||||||
Intersegment sales: | |||||||||
U.S. Packaging | (7.4 | ) | (7.0 | ) | |||||
Global Packaging | (4.9 | ) | (5.8 | ) | |||||
Pressure Sensitive Materials | (0.3 | ) | (0.3 | ) | |||||
Total net sales | $ | 1,237.80 | $ | 1,255.00 | |||||
U.S. Packaging | |||||||||
Operating profit before facility consolidation and other costs | $ | 91.8 | $ | 95.4 | |||||
Facility consolidation and other costs | — | (9.4 | ) | ||||||
Operating profit | 91.8 | 86 | |||||||
Global Packaging | |||||||||
Operating profit before facility consolidation and other costs | 24.1 | 25.8 | |||||||
Facility consolidation and other costs | — | 0.1 | |||||||
Operating profit | 24.1 | 25.9 | |||||||
Pressure Sensitive Materials | |||||||||
Operating (loss) profit | (14.5 | ) | 7.7 | ||||||
Corporate | |||||||||
General corporate expenses | (22.2 | ) | (27.5 | ) | |||||
Operating income | 79.2 | 92.1 | |||||||
Interest expense | 16.9 | 16.6 | |||||||
Other non-operating (income) expense | (12.6 | ) | 4.1 | ||||||
Income before income taxes | $ | 74.9 | $ | 71.4 | |||||
Business Segments (in millions) | 31-Mar-14 | December 31, 2013 | |||||||
Total assets: | |||||||||
U.S. Packaging | $ | 2,017.00 | $ | 2,016.80 | |||||
Global Packaging | 1,502.90 | 1,463.50 | |||||||
Pressure Sensitive Materials | 334.6 | 319.8 | |||||||
Total identifiable assets (1) | 3,854.50 | 3,800.10 | |||||||
Corporate assets (2) | 293.7 | 310.1 | |||||||
Total | $ | 4,148.20 | $ | 4,110.20 | |||||
(1) Total assets by business segment include only those assets that are specifically identified with each segment’s operations. | |||||||||
(2) Corporate assets are principally cash and cash equivalents, prepaid expenses, prepaid income taxes, prepaid pension benefit costs, and corporate tangible and intangible property. |
Financial_Assets_and_Financial1
Financial Assets and Financial Liabilities Measured at Fair Value (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Carrying values and estimated fair values of long-term debt, including current maturities | ' | ||||||||||||||||
The carrying values and estimated fair values of long-term debt at March 31, 2014 and December 31, 2013 follow: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | |||||||||||||
Long-term debt | $ | 1,441.50 | $ | 1,552.30 | $ | 1,421.40 | $ | 1,520.10 | |||||||||
Fair values for derivatives | ' | ||||||||||||||||
Fair Value As of | Fair Value As of | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | (Level 2) | (Level 2) | |||||||||||||||
Interest rate swaps — net liability position | $ | 13.5 | $ | 20.2 | |||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Fair values for derivatives | ' | ||||||||||
The fair values, balance sheet presentation, and the hedge designation status of derivative instruments at March 31, 2014 and December 31, 2013 are presented in the table below: | |||||||||||
Fair Value (Level 2) as of | |||||||||||
(in millions) | Balance Sheet Location | 31-Mar-14 | 31-Dec-13 | ||||||||
Liability Derivatives | |||||||||||
Interest rate swaps — designated as hedge | Other liabilities and deferred credits | $ | 13.5 | $ | 20.2 | ||||||
Income statement impact of derivative instruments not designated as hedging instruments | ' | ||||||||||
The income statement impact of derivatives are presented in the table below: | |||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | Location of Gain (Loss) Recognized in Income on Derivatives | 2014 | 2013 | ||||||||
Designated as hedges | |||||||||||
Interest rate swaps | Interest expense | $ | 2.1 | $ | 2 | ||||||
Not designated as hedges | |||||||||||
Forward exchange contracts | Other operating income | (0.3 | ) | — | |||||||
Total | $ | 1.8 | $ | 2 | |||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of inventory | ' | ||||||||
Inventories are summarized as follows: | |||||||||
(in millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 217.7 | $ | 215.6 | |||||
Work in process and finished goods | 448.2 | 432.9 | |||||||
Total inventories | $ | 665.9 | $ | 648.5 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Changes in the carrying amount of goodwill attributable to each reportable business segment | ' | ||||||||||||||||
Changes in the carrying amount of goodwill attributable to each reportable business segment follow: | |||||||||||||||||
(in millions) | U.S. Packaging Segment | Global Packaging Segment | Pressure Sensitive Materials Segment | Total | |||||||||||||
Reported balance at December 31, 2013 | $ | 632.3 | $ | 367.3 | $ | 52.6 | $ | 1,052.20 | |||||||||
Reclassification | 12.8 | (12.8 | ) | — | — | ||||||||||||
Divestiture | (10.1 | ) | — | — | (10.1 | ) | |||||||||||
Currency translation | (0.4 | ) | 4.6 | — | 4.2 | ||||||||||||
Reported balance at March 31, 2014 | $ | 634.6 | $ | 359.1 | $ | 52.6 | $ | 1,046.30 | |||||||||
Components of amortized intangible assets | ' | ||||||||||||||||
The components of amortized intangible assets follow: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
(in millions) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Intangible Assets | Amount | Amortization | Amount | Amortization | |||||||||||||
Contract based | $ | 25.7 | $ | (14.3 | ) | $ | 26.2 | $ | (14.4 | ) | |||||||
Technology based | 82.6 | (42.1 | ) | 82.6 | (40.9 | ) | |||||||||||
Marketing related | 23.5 | (14.5 | ) | 23 | (14.2 | ) | |||||||||||
Customer based | 200.6 | (74.5 | ) | 200.1 | (71.8 | ) | |||||||||||
Reported balance | $ | 332.4 | $ | (145.4 | ) | $ | 331.9 | $ | (141.3 | ) | |||||||
Components_of_Net_Periodic_Ben1
Components of Net Periodic Benefit Cost (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ||||||||
Components of net periodic benefit cost | ' | ||||||||
Three Months Ended March 31, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Service cost - benefits earned during the period | $ | 1.9 | $ | 3.5 | |||||
Interest cost on projected benefit obligation | 8.6 | 8.1 | |||||||
Expected return on plan assets | (12.0 | ) | (12.0 | ) | |||||
Settlement loss | 0.4 | — | |||||||
Curtailment loss | 0.9 | — | |||||||
Amortization: | |||||||||
Unrecognized transition obligation | 0.1 | 0.1 | |||||||
Prior service cost | 0.4 | 0.4 | |||||||
Actuarial net loss | 2.8 | 6.6 | |||||||
Net periodic benefit cost | $ | 3.1 | $ | 6.7 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Components of accumulated other comprehensive income (loss) | ' | ||||||||||||
The components and activity of accumulated other comprehensive loss are as follows: | |||||||||||||
(in millions) | Foreign Currency Translation | Pension And Other Postretirement Liability Adjustment | Accumulated Other Comprehensive Loss | ||||||||||
31-Dec-12 | $ | 80.5 | $ | (193.4 | ) | $ | (112.9 | ) | |||||
Other comprehensive income before reclassifications | 8.4 | — | 8.4 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4.2 | 4.2 | ||||||||||
Net current period other comprehensive income | 8.4 | 4.2 | 12.6 | ||||||||||
31-Mar-13 | $ | 88.9 | $ | (189.2 | ) | $ | (100.3 | ) | |||||
December 31, 2013 | $ | (8.0 | ) | $ | (90.7 | ) | $ | (98.7 | ) | ||||
Other comprehensive income before reclassifications | 10 | — | 10 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1.3 | 1.3 | ||||||||||
Net current period other comprehensive income | 10 | 1.3 | 11.3 | ||||||||||
March 31, 2014 | $ | 2 | $ | (89.4 | ) | $ | (87.4 | ) | |||||
Earnings_Per_Share_Computation1
Earnings Per Share Computations (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Calculation of earnings per share | ' | ||||||||||
Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2014 | 2013 | |||||||||
Numerator | |||||||||||
Net income attributable to Bemis Company, Inc. | $ | 49.2 | $ | 49.3 | |||||||
Income allocated to participating securities | — | — | |||||||||
Net income available to common shareholders (1) | $ | 49.2 | $ | 49.3 | |||||||
Denominator | |||||||||||
Weighted average common shares outstanding — basic | 101.5 | 103.2 | |||||||||
Dilutive shares | 0.9 | 1.1 | |||||||||
Weighted average common and common equivalent shares outstanding — diluted | 102.4 | 104.3 | |||||||||
Per common share income | |||||||||||
Basic | $ | 0.48 | $ | 0.48 | |||||||
Diluted | $ | 0.48 | $ | 0.47 | |||||||
(1 | ) | Basic weighted average common shares outstanding | 101.5 | 103.2 | |||||||
Basic weighted average common shares outstanding and participating securities | 101.5 | 103.3 | |||||||||
Percentage allocated to common shareholders | 100 | % | 99.9 | % |
Segments_of_Business_Tables
Segments of Business (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Summary of the entity's business activities reported by business segments | ' | ||||||||
A summary of the Company’s business activities reported by its three business segments follows: | |||||||||
Three Months Ended March 31, | |||||||||
Business Segments (in millions) | 2014 | 2013 | |||||||
Sales including intersegment sales: | |||||||||
U.S. Packaging | $ | 745.6 | $ | 753 | |||||
Global Packaging | 361.7 | 374.3 | |||||||
Pressure Sensitive Materials | 143.1 | 140.8 | |||||||
Intersegment sales: | |||||||||
U.S. Packaging | (7.4 | ) | (7.0 | ) | |||||
Global Packaging | (4.9 | ) | (5.8 | ) | |||||
Pressure Sensitive Materials | (0.3 | ) | (0.3 | ) | |||||
Total net sales | $ | 1,237.80 | $ | 1,255.00 | |||||
U.S. Packaging | |||||||||
Operating profit before facility consolidation and other costs | $ | 91.8 | $ | 95.4 | |||||
Facility consolidation and other costs | — | (9.4 | ) | ||||||
Operating profit | 91.8 | 86 | |||||||
Global Packaging | |||||||||
Operating profit before facility consolidation and other costs | 24.1 | 25.8 | |||||||
Facility consolidation and other costs | — | 0.1 | |||||||
Operating profit | 24.1 | 25.9 | |||||||
Pressure Sensitive Materials | |||||||||
Operating (loss) profit | (14.5 | ) | 7.7 | ||||||
Corporate | |||||||||
General corporate expenses | (22.2 | ) | (27.5 | ) | |||||
Operating income | 79.2 | 92.1 | |||||||
Interest expense | 16.9 | 16.6 | |||||||
Other non-operating (income) expense | (12.6 | ) | 4.1 | ||||||
Income before income taxes | $ | 74.9 | $ | 71.4 | |||||
Business Segments (in millions) | 31-Mar-14 | December 31, 2013 | |||||||
Total assets: | |||||||||
U.S. Packaging | $ | 2,017.00 | $ | 2,016.80 | |||||
Global Packaging | 1,502.90 | 1,463.50 | |||||||
Pressure Sensitive Materials | 334.6 | 319.8 | |||||||
Total identifiable assets (1) | 3,854.50 | 3,800.10 | |||||||
Corporate assets (2) | 293.7 | 310.1 | |||||||
Total | $ | 4,148.20 | $ | 4,110.20 | |||||
(1) Total assets by business segment include only those assets that are specifically identified with each segment’s operations. | |||||||||
(2) Corporate assets are principally cash and cash equivalents, prepaid expenses, prepaid income taxes, prepaid pension benefit costs, and corporate tangible and intangible property. |
Divestiture_Details
Divestiture (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Reserve Disclosures [Line Items] | ' | ' |
Restructuring Charges | $0 | $9.30 |
Disposal Group, Including Discontinued Operation, Revenue | 160 | ' |
Proceeds from Divestiture | 79.8 | 0 |
Gain on divestiture | 9.4 | 0 |
Stow Plant Closure [Member] | ' | ' |
Restructuring Reserve Disclosures [Line Items] | ' | ' |
Expected Cash Payments for Stow Plant Closure | 26 | ' |
Restructuring Charges | 25 | ' |
Restructuring and Related Cost, Expected Cost | 30 | ' |
Cost of Sales [Member] | Stow Plant Closure [Member] | ' | ' |
Restructuring Reserve Disclosures [Line Items] | ' | ' |
Restructuring Charges | $23.80 | ' |
Financial_Assets_and_Financial2
Financial Assets and Financial Liabilities Measured at Fair Value (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Value | ' | ' |
Carrying values and estimated fair values of long-term debt, including current maturities | ' | ' |
Total long-term debt | $1,441.50 | $1,421.40 |
Fair Value | (Level 2) | ' | ' |
Carrying values and estimated fair values of long-term debt, including current maturities | ' | ' |
Total long-term debt | $1,552.30 | $1,520.10 |
Financial_Assets_and_Financial3
Financial Assets and Financial Liabilities Measured at Fair Value (Details 2) (Measured on a recurring basis, (Level 2), Interest-rate swap, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Measured on a recurring basis | (Level 2) | Interest-rate swap | ' | ' |
Fair values for derivatives | ' | ' |
Derivative Liabilities | $13.50 | $20.20 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Notes Payable 4.5 Percent Due 2021 [Member] | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Designated as Hedging Instrument [Member] | (Level 2) | (Level 2) | ||
Forward exchange contracts | Forward exchange contracts | Interest-rate swap | Measured on a recurring basis | Measured on a recurring basis | |||
Interest-rate swap | Interest-rate swap | ||||||
Derivative Instruments | ' | ' | ' | ' | ' | ' | ' |
Maximum Remaining Maturity of Foreign Currency Derivatives | '6 months | ' | ' | ' | ' | ' | ' |
Derivative Liabilities | ' | ' | ' | ' | ' | $13.50 | $20.20 |
Notional amounts of derivatives | ' | ' | 10.3 | 5.5 | 400 | ' | ' |
Number of swap agreements | ' | ' | ' | ' | 4 | ' | ' |
Debt instrument, face amount | ' | $400 | ' | ' | ' | ' | ' |
Fixed-rate (as a percent) | ' | 4.50% | ' | ' | ' | ' | ' |
Derivative_Instruments_Details1
Derivative Instruments (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $1.80 | $2 |
Designated as Hedging Instrument [Member] | Interest-rate swap | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2.1 | 2 |
Derivatives not designated as hedging instruments | Forward exchange contracts | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | ($0.30) | $0 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory valuation | ' | ' |
Raw materials and supplies | $217.70 | $215.60 |
Work in process and finished goods | 448.2 | 432.9 |
Total inventories | $665.90 | $648.50 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Changes in the carrying amount of goodwill | ' |
Reported balance at the beginning of the period | $1,052.20 |
Reclassification | 0 |
Divestiture | -10.1 |
Currency translation | 4.2 |
Reported balance at the end of the period | 1,046.30 |
USPackaging [Member] | ' |
Changes in the carrying amount of goodwill | ' |
Reported balance at the beginning of the period | 632.3 |
Reclassification | 12.8 |
Divestiture | -10.1 |
Currency translation | -0.4 |
Reported balance at the end of the period | 634.6 |
GlobalPackaging [Member] | ' |
Changes in the carrying amount of goodwill | ' |
Reported balance at the beginning of the period | 367.3 |
Reclassification | -12.8 |
Divestiture | 0 |
Currency translation | 4.6 |
Reported balance at the end of the period | 359.1 |
Pressure Sensitive Materials [Member] | ' |
Changes in the carrying amount of goodwill | ' |
Reported balance at the beginning of the period | 52.6 |
Reclassification | 0 |
Divestiture | 0 |
Currency translation | 0 |
Reported balance at the end of the period | $52.60 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of amortized intangible assets | ' | ' |
Gross Carrying Amount | $332.40 | $331.90 |
Accumulated Amortization | -145.4 | -141.3 |
Amortization expense for intangible assets | 3.9 | 3.9 |
Estimated amortization expense | ' | ' |
Remainder of fiscal year | 11.8 | ' |
2015 | 15.7 | ' |
2016 | 15.5 | ' |
2017 | 15.4 | ' |
2018 | 15.4 | ' |
2019 | 15.2 | ' |
Contract based | ' | ' |
Components of amortized intangible assets | ' | ' |
Gross Carrying Amount | 25.7 | 26.2 |
Accumulated Amortization | -14.3 | -14.4 |
Technology based | ' | ' |
Components of amortized intangible assets | ' | ' |
Gross Carrying Amount | 82.6 | 82.6 |
Accumulated Amortization | -42.1 | -40.9 |
Marketing related | ' | ' |
Components of amortized intangible assets | ' | ' |
Gross Carrying Amount | 23.5 | 23 |
Accumulated Amortization | -14.5 | -14.2 |
Customer based | ' | ' |
Components of amortized intangible assets | ' | ' |
Gross Carrying Amount | 200.6 | 200.1 |
Accumulated Amortization | ($74.50) | ($71.80) |
Components_of_Net_Periodic_Ben2
Components of Net Periodic Benefit Cost (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of Net Periodic Benefit Cost | ' | ' |
Defined contribution benefits plans | $5.40 | $5 |
Pension Plan, Defined Benefit [Member] | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' |
Service cost - benefits earned during the period | 1.9 | 3.5 |
Interest cost on projected benefit obligation | 8.6 | 8.1 |
Expected return on plan assets | -12 | -12 |
Settlement loss | 0.4 | 0 |
Curtailment loss | 0.9 | 0 |
Amortization of unrecognized transition obligation | 0.1 | 0.1 |
Amortization of prior service cost | 0.4 | 0.4 |
Recognized actuarial net (gain) or loss | 2.8 | 6.6 |
Net periodic benefit (income) cost | 3.1 | 6.7 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' |
Curtailment loss | ($3) | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive loss, net of tax | ' | ' | ' | ' |
Foreign currency translation | $2 | $88.90 | ($8) | $80.50 |
Pension and other postretirement liability adjustment, net of deferred tax effect | -89.4 | -189.2 | -90.7 | -193.4 |
Accumulated other comprehensive loss | -87.4 | -100.3 | -98.7 | -112.9 |
Tax effect of pension liability adjustment | 54.9 | ' | 55.6 | ' |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | ' | 7.1 | ' | ' |
Other comprehensive income, before reclassification, foreign currency translation | 10 | 8.4 | ' | ' |
Other comprehensive income, before reclassification, pension | 0 | 0 | ' | ' |
Other comprehensive income, reclassification adjustment, foreign currency translation | 0 | 0 | ' | ' |
Other comprehensive income, reclassification, pension | 1.3 | 4.2 | ' | ' |
Translation adjustments | 10 | 8.4 | ' | ' |
Pension and other postretirement liability adjustments, net of tax | 1.3 | 4.2 | ' | ' |
Other comprehensive income (loss) | 11.3 | 12.6 | ' | ' |
Before reclassification [Member] | ' | ' | ' | ' |
Accumulated other comprehensive loss, net of tax | ' | ' | ' | ' |
Other comprehensive income (loss) | 10 | 8.4 | ' | ' |
Reclassified [Member] | ' | ' | ' | ' |
Accumulated other comprehensive loss, net of tax | ' | ' | ' | ' |
Other comprehensive income (loss) | 1.3 | 4.2 | ' | ' |
Pension Costs [Member] | ' | ' | ' | ' |
Accumulated other comprehensive loss, net of tax | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | 4.2 | ' | ' | ' |
Other comprehensive income, reclassification, pension | 2.6 | ' | ' | ' |
OPEB [Member] | ' | ' | ' | ' |
Accumulated other comprehensive loss, net of tax | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | 2.2 | ' | ' | ' |
Other comprehensive income, reclassification, pension | $1.30 | ' | ' | ' |
Earnings_Per_Share_Computation2
Earnings Per Share Computations (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator | ' | ' |
Net income | $49.20 | $49.30 |
Income allocated to participating securities (in dollars) | 0 | 0 |
Net income available to common shareholders (in dollars) | $49.20 | $49.30 |
Denominator | ' | ' |
Basic weighted-average common shares outstanding | 101.5 | 103.2 |
Dilutive shares | 0.9 | 1.1 |
Weighted-average common and common equivalent shares outstanding - diluted | 102.4 | 104.3 |
Per common share income | ' | ' |
Basic (in dollars per share) | $0.48 | $0.48 |
Diluted (in dollars per share) | $0.48 | $0.47 |
Basic weighted-average common shares outstanding | 101.5 | 103.2 |
Basic weighted-average common shares, outstanding and participating securities | 101.5 | 103.3 |
Percentage allocated to common shareholders | 100.00% | 99.90% |
Antidilutive stock options and stock awards | 0.4 | ' |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Loss contingencies | ' |
Number of sites for state law proceedings under environmental matters | 17 |
Number of Sites for Proceedings under Environmental Matters in Brazil | 1 |
Loss Contingency, Estimate of Possible Loss | $25 |
TaxAssessmentForGoodwillAmortization | 16.8 |
Number of multiemployer defined benefit pensions plans | 2 |
Percentage of nondeductible excise tax imposed upon by IRS on the amount of the accumulated funding deficiency for those employers contributing to the fund | 5.00% |
Sao Paulo city services tax for years 2004-2009 | ' |
Loss contingencies | ' |
Estimated city services tax, penalties and interest | 51.1 |
Dixie Toga Ltda | Sao Paulo city services tax for years 1991-1995 | ' |
Loss contingencies | ' |
Estimated city services tax | 48.5 |
Dixie Toga Ltda | Sao Paulo city services tax for years 1996-2001 | ' |
Loss contingencies | ' |
Estimated city services tax and penalties | 23.5 |
Estimated increase in city service tax and penalties for interest, monetary adjustments and costs | 151.5 |
Itap Bemis Ltda. | Sao Paulo city services tax for years 1996-2001 | ' |
Loss contingencies | ' |
Estimated city services tax and penalties | 7.3 |
Estimated increase in city service tax and penalties for interest, monetary adjustments and costs | $52.40 |
Segments_of_Business_Details
Segments of Business (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Reporting [Abstract] | ' | ' | ' |
Reporting Segments Number | 3 | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | $1,237.80 | $1,255 | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 79.2 | 92.1 | ' |
Interest expense | 16.9 | 16.6 | ' |
Other non-operating (income) expense, net | -12.6 | 4.1 | ' |
Income before income taxes | 74.9 | 71.4 | ' |
Total Assets | 4,148.20 | ' | 4,110.20 |
Segment Reconciling Items [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Total Assets | 293.7 | ' | 310.1 |
USPackaging [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 91.8 | 86 | ' |
Total Assets | 2,017 | ' | 2,016.80 |
GlobalPackaging [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 24.1 | 25.9 | ' |
Total Assets | 1,502.90 | ' | 1,463.50 |
Pressure Sensitive Materials [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | -14.5 | 7.7 | ' |
Total Assets | 334.6 | ' | 319.8 |
USPackagingBeforeRestructuring [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 91.8 | 95.4 | ' |
USPackagingRestructuring [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 0 | -9.4 | ' |
GlobalPackagingBeforeRestructuring [Member] [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 24.1 | 25.8 | ' |
GlobalPackagingRestructuring [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | 0 | 0.1 | ' |
GeneralCorporateExpenses [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Operating Income (Loss) | -22.2 | -27.5 | ' |
Operating Segments [Member] | ' | ' | ' |
Operating Profit and Pretax Profit: | ' | ' | ' |
Total Assets | 3,854.50 | ' | 3,800.10 |
Operating Segments [Member] | USPackaging [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | 745.6 | 753 | ' |
Operating Segments [Member] | GlobalPackaging [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | 361.7 | 374.3 | ' |
Operating Segments [Member] | Pressure Sensitive Materials [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | 143.1 | 140.8 | ' |
Intersegment Eliminations [Member] | USPackaging [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | -7.4 | -7 | ' |
Intersegment Eliminations [Member] | GlobalPackaging [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | -4.9 | -5.8 | ' |
Intersegment Eliminations [Member] | Pressure Sensitive Materials [Member] | ' | ' | ' |
Segment reporting information | ' | ' | ' |
Revenue | ($0.30) | ($0.30) | ' |