Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | POLYONE CORP |
Entity Central Index Key | 1,122,976 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 86,287,381 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 841.6 | $ 958.4 | $ 2,601.8 | $ 2,966.2 |
Cost of sales | 672.5 | 775.8 | 2,077.2 | 2,410.9 |
Gross margin | 169.1 | 182.6 | 524.6 | 555.3 |
Selling and administrative expense | 99.9 | 119 | 305 | 385.9 |
Operating income | 69.2 | 63.6 | 219.6 | 169.4 |
Interest expense, net | (16.2) | (15.4) | (48.5) | (46.6) |
Other expense, net | (1.6) | (1.8) | (3) | (3.2) |
Income from continuing operations before income taxes | 51.4 | 46.4 | 168.1 | 119.6 |
Income tax expense | (6.9) | (14.1) | (26.4) | (27.4) |
Net income from continuing operations | 44.5 | 32.3 | 141.7 | 92.2 |
Income from discontinued operations, net of income taxes | 0 | 0.4 | 0 | 1.2 |
Net Income | 44.5 | 32.7 | 141.7 | 93.4 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | (0.2) | 0.4 |
Net income attributable to PolyOne common shareholders | $ 44.5 | $ 32.7 | $ 141.5 | $ 93.8 |
Earnings per common share attributable to PolyOne common shareholders - Basic: | ||||
Continuing Operations, Basic (in usd per share) | $ 0.51 | $ 0.35 | $ 1.60 | $ 0.99 |
Discontinued operations, Basic (in usd per share) | 0 | 0.01 | 0 | 0.02 |
Total, Basic (in usd per share) | 0.51 | 0.36 | 1.60 | 1.01 |
Earnings per common share attributable to PolyOne common shareholders - Diluted: | ||||
Continuing Operations, Diluted (in usd per share) | 0.50 | 0.35 | 1.58 | 0.98 |
Discontinued operations, Diluted (in usd per share) | 0 | 0 | 0 | 0.01 |
Total, Diluted (in usd per share) | $ 0.50 | $ 0.35 | $ 1.58 | $ 0.99 |
Weighted-average shares used to compute earnings per share: | ||||
Basic (in shares) | 87.5 | 91.8 | 88.5 | 93.1 |
Diluted (in shares) | 88.4 | 93.1 | 89.4 | 94.3 |
Cash dividends declared per common stock (in usd per share) | $ 0.10 | $ 0.08 | $ 0.30 | $ 0.24 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 44.5 | $ 32.7 | $ 141.7 | $ 93.4 |
Other comprehensive income | ||||
Translation adjustments | (9.2) | (16) | (23.8) | (15.6) |
Unrealized loss on available-for-sale securities | (0.4) | 0 | 0 | 0 |
Total comprehensive income | 34.9 | 16.7 | 117.9 | 77.8 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | (0.2) | 0.4 |
Comprehensive income attributable to PolyOne common shareholders | $ 34.9 | $ 16.7 | $ 117.7 | $ 78.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 235.7 | $ 238.6 |
Accounts receivable, net | 407.3 | 396.8 |
Inventories, net | 285.9 | 309 |
Other current assets | 82.8 | 98.3 |
Total current assets | 1,011.7 | 1,042.7 |
Property, net | 574.5 | 596.7 |
Goodwill | 591 | 590.6 |
Intangible assets, net | 345.9 | 362.7 |
Other non-current assets | 114.3 | 118.5 |
Total assets | 2,637.4 | 2,711.2 |
Current liabilities: | ||
Short-term and current portion of long-term debt | 61.8 | 61.8 |
Accounts payable | 374.6 | 365.9 |
Accrued expenses and other current liabilities | 125.2 | 173.5 |
Total current liabilities | 561.6 | 601.2 |
Non-current liabilities: | ||
Long-term debt | 1,038 | 962 |
Pension and other post-retirement benefits | 69.6 | 103.7 |
Deferred income taxes | 68.4 | 88.8 |
Other non-current liabilities | 150.8 | 178.3 |
Total non-current liabilities | 1,326.8 | 1,332.8 |
Shareholders’ equity: | ||
PolyOne shareholders’ equity | 747.9 | 776.3 |
Noncontrolling interests | 1.1 | 0.9 |
Total equity | 749 | 777.2 |
Total liabilities and shareholders’ equity | $ 2,637.4 | $ 2,711.2 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 141.7 | $ 93.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73.8 | 76 |
Accelerated depreciation and fixed asset charges associated with restructuring activities | 16.1 | 25.9 |
Provision for doubtful accounts | 0.1 | 0.2 |
Share-based compensation expense | 6 | 11.4 |
Gain on sale of business | 0 | (1.2) |
Change in assets and liabilities: | ||
Increase in accounts receivable | (18.5) | (37.9) |
Decrease in inventories | 18.9 | 30.3 |
Increase in accounts payable | 15 | 26.3 |
Decrease in pension and other post-retirement benefits | (32.1) | (24.3) |
Decrease in accrued expenses and other assets and liabilities - net | (92.4) | (68.3) |
Net cash provided by operating activities | 128.6 | 131.8 |
Investing Activities | ||
Capital expenditures | (61.6) | (60.7) |
Proceeds from sale of equity affiliate and other assets | 1.9 | 28.2 |
Net cash used by investing activities | (59.7) | (32.5) |
Financing Activities | ||
Repayment of debt | 0 | (8) |
Borrowings under credit facilities | 781.7 | 21.7 |
Repayments under credit facilities | (705.7) | (20.9) |
Purchase of common shares | (117.8) | (175) |
Exercise of share awards | 4.3 | 6.8 |
Cash dividends paid | (26.8) | (22.5) |
Net cash used by financing activities | (64.3) | (197.9) |
Effect of exchange rate changes on cash | (7.5) | (3) |
Decrease in cash and cash equivalents | (2.9) | (101.6) |
Cash and cash equivalents at beginning of period | 238.6 | 365.2 |
Cash and cash equivalents at end of period | $ 235.7 | $ 263.6 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Note 1 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the annual report on Form 10-K for the year ended December 31, 2014 of PolyOne Corporation. When used in this quarterly report on Form 10-Q, the terms “we,” “us,” “our”, "PolyOne" and the “Company” mean PolyOne Corporation and its consolidated subsidiaries. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2015 . Accounting Standards Not Yet Adopted In July 2015, the Financial Accounting Standards Board (FASB) issued Auditing Standards Update 2015-11, " Inventory (Topic 330): Simplifying the Measurement of Inventory " (ASU 2015-11), which applies to inventory measured using first-in, first out (FIFO) or average cost. This update proscribes that an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements, but does not expect this standard to have a material impact on its Consolidated Financial Statements. In April 2015, the FASB issued Auditing Standards Update 2015-03, " Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs " (ASU 2015-03), which requires unamortized debt issuance costs to be presented as a reduction of the corresponding debt liability rather than a separate asset. The Company will adopt ASU 2015-03 no later than the required date of January 1, 2016. The Company does not expect this standard to have a material impact on its Consolidated Financial Statements. In May 2014, the FASB issued Auditing Standards Update 2014-09, " Revenue from Contracts with Customers " (ASU 2014-09), which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 will be effective for the Company on January 1, 2018. The Company is in the process of determining what impact, if any, the adoption of ASU 2014-09 will have on its Consolidated Financial Statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 — BUSINESS COMBINATIONS On December 1, 2014, the Company acquired the specialty assets of Accella Performance Materials (Accella), a leading North American manufacturer of liquid polymer formulations, for $47.2 million , net of cash acquired. The results of operations of Accella were included in the Company’s Consolidated Statements of Income for the period subsequent to the date of the acquisition and are reported in the Global Color, Additives and Inks segment. The final purchase price allocation resulted in goodwill of $24.7 million and intangible assets of $16.0 million . Goodwill recognized as a result of this acquisition is deductible for tax purposes. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Note 3 — GOODWILL AND INTANGIBLE ASSETS Goodwill as of September 30, 2015 and December 31, 2014 , and changes in the carrying amount of goodwill by segment were as follows: (In millions) Global Specialty Global Color, Designed Structures and Solutions Performance PolyOne Total Balance December 31, 2013 $ 99.9 $ 310.2 $ 136.3 $ 11.0 $ 1.6 $ 559.0 Acquisitions of businesses — 23.5 8.4 0.2 — 32.1 Currency translation and other adjustments (0.5 ) — — — — (0.5 ) Balance December 31, 2014 $ 99.4 $ 333.7 $ 144.7 $ 11.2 $ 1.6 $ 590.6 Acquisitions of businesses — 2.0 — — — 2.0 Currency translation and other adjustments (1.5 ) (0.1 ) — — — (1.6 ) Balance September 30, 2015 $ 97.9 $ 335.6 $ 144.7 $ 11.2 $ 1.6 $ 591.0 Indefinite and finite-lived intangible assets consisted of the following: As of September 30, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 196.3 $ (39.6 ) $ — $ 156.7 Patents, technology and other 136.3 (43.1 ) (0.3 ) 92.9 Indefinite-lived trade names 96.3 — — 96.3 Total $ 428.9 $ (82.7 ) $ (0.3 ) $ 345.9 As of December 31, 2014 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 198.1 $ (32.6 ) $ — $ 165.5 Patents, technology and other 132.9 (35.3 ) (0.1 ) 97.5 Indefinite-lived trade names 96.3 — — 96.3 In-process research and development 3.4 — — 3.4 Total $ 430.7 $ (67.9 ) $ (0.1 ) $ 362.7 |
Employee Separation and Restruc
Employee Separation and Restructuring Costs | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Employee Separation and Restructuring Costs | Note 4 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS In August 2015, PolyOne determined it would close its Granby, Quebec, Canada facility and upgrade certain equipment at other Design Structure and Solution segment locations. These actions were taken to streamline production, improve quality and gain operational efficiencies. The Company recognized $10.5 million of charges related to these actions during the three months ended September 30, 2015. These costs include $8.7 million of asset-related charges, including accelerated depreciation and asset write-offs, and cash charges of $1.8 million primarily related to severance. We expect cash savings of approximately $2.0 million annually as a result of these actions, beginning in the fourth quarter of 2015. These savings will be reflected within our Designed Structures and Solutions segment. We expect to incur approximately $3.0 million of additional cash charges, primarily in the fourth quarter of 2015, related to these actions. In June 2014, PolyOne determined it would close its Diadema and Joinville, Brazil facilities that were acquired in 2011 with the acquisition of Uniplen Industria de Polimeros Ltda. These actions were taken to streamline operations and improve our financial performance in Brazil. We recognized $0.1 million and $2.9 million related to these actions for the three months ended September 30, 2015 and 2014, respectively, and $0.8 million and $17.2 million for the nine months ended September 30, 2015 and 2014, respectively. Total costs of $17.8 million in connection with these actions include $11.2 million of asset-related charges, $2.7 million of severance and $3.9 million of other associated costs. Of the total charges, approximately $6.0 million represent the cash costs. Annual savings, as a result of these actions, of approximately $4.5 million were achieved and are primarily reflected within our Global Specialty Engineered Materials segment. We do not expect the remaining charges related to these actions to have a material impact to our consolidated financial statements going forward. In 2013, PolyOne determined it would close seven former Spartech Corporation (Spartech) manufacturing facilities and one administrative office and relocate operations to other PolyOne facilities. The closure of these manufacturing facilities are part of the Company’s efforts to improve service, on time delivery and quality as we align assets with our customers' needs. In addition to these actions, PolyOne incurred severance costs related to former Spartech executives and other employees, as well as fixed asset-related charges and other ongoing costs associated with restructuring actions that were underway prior to PolyOne's acquisition of Spartech. Since the date of acquisition, the Company has incurred $120.8 million of charges in connection with these Spartech actions. Costs include $47.0 million of asset-related charges, including accelerated depreciation and asset write-offs, and total cash charges of $73.8 million , including $25.9 million for severance and $47.9 million of other associated costs. Of the total cash charges, approximately $63.0 million relates to manufacturing realignment actions initiated by the Company. Annual savings, as a result of such actions, of approximately $30.0 million are reflected within our results of operations, including approximately $15.0 million within our Designed Structures and Solutions segment and the remaining $15.0 million within our Global Color, Additives and Inks, Global Specialty Engineered Materials and Performance Products and Solutions segments. These savings are in-line with our expectations and we do not expect additional charges or benefits related to these actions to have a material impact to our consolidated financial statements going forward. The table below summarizes restructuring activity related to Spartech. (In millions) Long-Lived Asset Charges Employee Separation Other Associated Costs Total Accrual balance at December 31, 2012 $ — $ — $ — $ — Charged to expense 13.6 21.1 9.4 44.1 Cash payments — (6.0 ) (9.4 ) (15.4 ) Non-cash utilization (13.6 ) — — (13.6 ) Accrual balance at December 31, 2013 $ — $ 15.1 $ — $ 15.1 Charged to expense 27.3 5.1 27.3 59.7 Cash payments — (17.5 ) (27.3 ) (44.8 ) Non-cash utilization (27.3 ) — — (27.3 ) Accrual balance at December 31, 2014 $ — $ 2.7 $ — $ 2.7 Charged to expense 5.3 (0.3 ) 4.3 9.3 Cash payments — (1.6 ) (4.3 ) (5.9 ) Non-cash utilization (5.3 ) — — (5.3 ) Accrual balance at March 31, 2015 $ — $ 0.8 $ — $ 0.8 Charged to expense 0.8 — 4.9 5.7 Cash payments — (0.3 ) (4.9 ) (5.2 ) Non-cash utilization (0.8 ) — — (0.8 ) Accrual balance at June 30, 2015 $ — $ 0.5 $ — $ 0.5 Charged to expense — — 2.0 2.0 Cash payments — (0.2 ) (2.0 ) (2.2 ) Non-cash utilization — — — — Accrual balance at September 30, 2015 $ — $ 0.3 $ — $ 0.3 In addition to the actions noted above, there were $1.1 million and $3.5 million of other restructuring charges recognized, respectively, in the three and nine months ended September 30, 2015. During the three months ended September 30, 2015 , we recognized total employee separation and restructuring charges of $13.7 million , of which $11.6 million was recognized within Cost of goods sold and $2.1 million within Selling and administrative expenses . During the three months ended September 30, 2014 , we recognized total employee separation and restructuring charges of $17.9 million , of which $7.8 million was recognized within Cost of goods sold and $10.1 million within Selling and administrative expenses. During the nine months ended September 30, 2015 , we recognized total employee separation and restructuring charges of $31.8 million , of which $24.8 million was recognized within Cost of goods sold and $7.0 million within Selling and administrative expenses . During the nine months ended September 30, 2014 , we recognized total employee separation and restructuring charges of $70.9 million , of which $40.9 million was recognized within Cost of goods sold and $30.0 million within Selling and administrative expenses. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5 — INVENTORIES, NET Components of Inventories, net are as follows: (In millions) September 30, 2015 December 31, 2014 Finished products $ 174.2 $ 187.8 Work in process 4.5 4.1 Raw materials and supplies 107.2 117.1 Inventories, net $ 285.9 $ 309.0 |
Property, Net
Property, Net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Net | Note 6 — PROPERTY, NET Components of Property, net are as follows: (In millions) September 30, 2015 December 31, 2014 Land $ 46.7 $ 49.2 Buildings 311.6 309.2 Machinery and equipment 1,098.3 1,077.2 Property, gross 1,456.6 1,435.6 Less accumulated depreciation and amortization (882.1 ) (838.9 ) Property, net $ 574.5 $ 596.7 Depreciation expense was $63.5 million for the nine months ended September 30, 2015 and $84.5 million for the nine months ended September 30, 2014. Included in depreciation expense is accelerated depreciation of $4.6 million and $22.9 million during the nine months ended 2015 and 2014, respectively, related to restructuring actions. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — INCOME TAXES The income tax provision includes U.S. federal, state and local, and foreign income taxes. During the third quarter and first nine months of 2015, the Company’s effective tax rate was 13.4% and 15.7% , respectively, compared to 30.4% and 22.9% , respectively, for the comparable periods of 2014. In determining the effective income tax rate, the Company analyzes various factors, including annual earnings, the laws of taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the ability to use tax credits, net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain items with respect to valuation allowances or other unusual or non-recurring tax adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision. A reconciliation of the federal statutory rate to the consolidated effective income tax rate is as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Income tax expense at 35% $ 18.0 $ 16.2 $ 58.8 $ 41.9 Uncertain tax positions (7.5 ) (0.8 ) 0.6 0.2 Foreign tax credits from amending prior returns (1.0 ) — (30.4 ) — Tax benefits on certain foreign investments — (5.1 ) — (10.5 ) Changes in valuation allowances 0.4 3.5 0.4 7.5 Tax settlements — — — (4.0 ) Other, net (3.0 ) 0.3 (3.0 ) (7.7 ) Income Tax Expense $ 6.9 $ 14.1 $ 26.4 $ 27.4 Effective Income Tax Rate 13.4 % 30.4 % 15.7 % 22.9 % The effective tax rates for all periods differed from the U.S. federal statutory rate primarily as a result of the significant items described below and permanent items, including state and local income taxes, foreign rate differences, and the impact of intraperiod tax allocations, as reflected in the Other, net line in the table above. The increased benefit of $3.3 million in the Other, net line for the third quarter of 2015 primarily relates to a $1.0 million increase in the estimated domestic production activities deduction compared to 2014, a $1.6 million favorable change related to a legal entity consolidation in a foreign jurisdiction with the remaining items being individually not material. For the nine months ended September 30, 2015, the decrease in Other, net of $4.7 million as compared to the nine months ended September 30, 2014 reflects a $1.9 million favorable adjustment in 2014 related to amended state tax returns, unfavorable state tax adjustments of $1.0 million in 2015, primarily as a result of a court ruling, and the remaining difference primarily related to higher state and local tax expense due to increased domestic pre-tax income. 2015 Significant items The $7.5 million benefit related to uncertain tax positions for the three months ended September 30, 2015 primarily relates to the reversal of an uncertain tax position due to the expiration of the statute of limitations. The expense of $0.6 million for the nine months ended September 30, 2015 is primarily due to an unfavorable foreign court ruling during the first quarter of 2015, which settled an uncertain tax position taken in a prior year, offsetting the benefit in the third quarter. We recognized benefits of $1.0 million and $30.4 million for the three and nine months ended September 30, 2015, respectively, as a result of amending U.S. federal income tax returns from 2004 through 2012 to use foreign tax credits. 2014 Significant items Tax benefits of $5.1 million and $10.5 million on certain foreign investments for the three and nine months ended September 30, 2014, respectively, related to the write-off of our investment in certain Brazil subsidiaries for tax purposes and operating losses primarily as a result of restructuring actions to close certain Brazil facilities discussed in Note 4, Employee Separation and Restructuring Costs . Changes in valuation allowances of $3.5 million and $7.5 million for the three and nine months ended September 30, 2014, respectively, related to certain foreign subsidiaries as a result of cumulative operating losses in those jurisdictions. Uncertain tax positions The Company records provisions for uncertain tax positions in accordance with ASC Topic 740, Income Taxes . A reconciliation of unrecognized tax benefits for September 30, 2015 is as follows: Unrecognized Tax Benefits (In millions) 2015 Balance as of January 1 $ 28.6 Increases as a result of positions taken during prior years 12.9 Decreases as a result of lapse of statute of limitations (13.1 ) Decreases relating to settlements with taxing authorities (16.9 ) Other 0.6 Balance as of September 30 $ 12.1 We recognize interest and penalties related to uncertain tax positions in the provision for income taxes. As of September 30, 2015 and December 31, 2014, we had $4.5 million and $8.6 million accrued for interest and penalties, respectively for each period, which are not reflected in the table above. The settlements were primarily associated with the unfavorable foreign court ruling discussed above. |
Weighted-Average Shares Used In
Weighted-Average Shares Used In Computing Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares Used In Computing Earnings Per Common Share | Note 8 — WEIGHTED-AVERAGE SHARES USED IN COMPUTING EARNINGS PER COMMON SHARE Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Weighted-average common shares outstanding – basic 87.5 91.8 88.5 93.1 Plus dilutive impact of share-based compensation 0.9 1.3 0.9 1.2 Weighted-average common shares – diluted 88.4 93.1 89.4 94.3 For the three months ended September 30, 2015 and 2014, 0.2 million and 0.3 million of equity-based awards, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive. For the nine months ended September 30, 2014 , 0.4 million of equity-based awards were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. No such equity-based awards were anti-dilutive for the computation of diluted earnings per common share for the nine months ended September 30, 2015. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 9 — EMPLOYEE BENEFIT PLANS Components of defined benefit pension plan net periodic gains are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Service cost $ 0.4 $ 0.5 $ 1.3 $ 1.4 Interest cost 5.3 6.3 16.0 18.8 Expected return on plan assets (8.2 ) (8.1 ) (24.6 ) (24.2 ) Net periodic benefit gains $ (2.5 ) $ (1.3 ) $ (7.3 ) $ (4.0 ) Components of post-retirement health care plan benefit costs are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Interest cost $ 0.1 $ 0.2 $ 0.4 $ 0.5 Net periodic benefit costs $ 0.1 $ 0.2 $ 0.4 $ 0.5 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 10 — FINANCING ARRANGEMENTS Debt consists of the following instruments: (Dollars in millions) September 30, 2015 December 31, 2014 7.500% debentures due 2015 $ 48.7 $ 48.7 Revolving credit facility due 2018 121.0 45.0 7.375% senior notes due 2020 316.6 316.6 5.250% senior notes due 2023 600.0 600.0 Other debt 13.5 13.5 Total long-term debt 1,099.8 1,023.8 Less current portion 61.8 61.8 Total long-term debt, net of current portion $ 1,038.0 $ 962.0 The Company maintains a senior secured revolving credit facility with a maturity date of March 1, 2018, which provides a maximum borrowing facility size of $400.0 million , subject to a borrowing base with advances against certain U.S. and Canadian accounts receivable, inventory and other assets as specified in the agreement. We have the option to increase the availability under the facility to $450.0 million , subject to meeting certain requirements and obtaining commitments for such increase. The senior secured revolving credit facility has a U.S. and a Canadian line of credit. Currently there are no borrowings on the Canadian portion of the facility. Advances under the U.S. portion of our revolving credit facility bear interest, at the Company’s option, at a Base Rate or a LIBOR Rate plus an applicable margin. The Base Rate is a fluctuating rate equal to the greater of (i) the Federal Funds Rate plus one-half percent, (ii) the prevailing LIBOR Rate plus one percent, and (iii) the prevailing Prime Rate. The applicable margins vary based on the Company’s daily average excess availability during the previous quarter. The weighted average annual interest rate under this facility for the three and nine months ended September 30, 2015 were 2.49% and 2.44% , respectively. As of September 30, 2015 , we were in compliance with all covenants, had $121.0 million of outstanding borrowings and had availability of $182.9 million under this facility. The Company also has a credit line of $16.0 million with Saudi Hollandi Bank. The credit line has an interest rate equal to the Saudi Arabia Interbank Offered Rate plus a fixed rate of 0.85% and is subject to annual renewal. Borrowings under this credit line were primarily used to fund capital expenditures related to the manufacturing facility in Jeddah, Saudi Arabia. As of September 30, 2015 , letters of credit under the credit line were $0.3 million and borrowings were $13.1 million with an interest rate of 1.70% . The estimated fair value of PolyOne’s debt instruments at September 30, 2015 and December 31, 2014 was $ 1,073.2 million and $ 1,045.4 million , respectively, compared to carrying values of $ 1,099.8 million and $1,023.8 million as of September 30, 2015 and December 31, 2014 , respectively. The fair value of PolyOne’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 — SEGMENT INFORMATION Operating income is the primary measure that is reported to our chief operating decision maker for purposes of allocating resources to the segments and assessing their performance. Operating income at the segment level does not include: corporate general and administrative expenses that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs; asset impairments; environmental remediation costs and other liabilities for facilities no longer owned or closed in prior years; gains and losses on the divestiture of joint ventures and equity investments; actuarial gains and losses associated with our pension and other post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our chief operating decision maker. These costs are included in Corporate and eliminations . PolyOne has five reportable segments: (1) Global Color, Additives and Inks; (2) Global Specialty Engineered Materials; (3) Designed Structures and Solutions; (4) Performance Products and Solutions; and (5) PolyOne Distribution. Segment information for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended Three Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Global Color, Additives and Inks $ 198.9 $ 199.9 $ 34.5 $ 207.4 $ 212.0 $ 30.1 Global Specialty Engineered Materials 123.6 136.0 20.0 135.3 145.8 18.4 Designed Structures and Solutions 109.3 112.4 4.3 152.1 152.3 13.1 Performance Products and Solutions 154.3 175.2 16.1 187.2 213.0 17.8 PolyOne Distribution 255.5 259.5 17.6 276.4 280.5 18.7 Corporate and eliminations — (41.4 ) (23.3 ) — (45.2 ) (34.5 ) Total $ 841.6 $ 841.6 $ 69.2 $ 958.4 $ 958.4 $ 63.6 Nine Months Ended Nine Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Global Color, Additives and Inks $ 618.7 $ 625.8 $ 107.9 $ 647.3 $ 660.3 $ 98.2 Global Specialty Engineered Materials 382.2 417.6 63.2 428.0 461.0 55.6 Designed Structures and Solutions 339.4 343.1 12.0 489.3 489.9 37.2 Performance Products and Solutions 480.7 541.4 43.9 560.2 631.8 51.4 PolyOne Distribution 780.8 792.0 52.4 841.4 851.6 53.2 Corporate and eliminations — (118.1 ) (59.8 ) — (128.4 ) (126.2 ) Total $ 2,601.8 $ 2,601.8 $ 219.6 $ 2,966.2 $ 2,966.2 $ 169.4 Total Assets (In millions) September 30, 2015 December 31, 2014 Global Color, Additives and Inks $ 930.2 $ 937.7 Global Specialty Engineered Materials 360.3 370.5 Designed Structures and Solutions 461.8 490.2 Performance Products and Solutions 253.0 265.5 PolyOne Distribution 219.4 214.2 Corporate and eliminations 412.7 433.1 Total assets $ 2,637.4 $ 2,711.2 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 — COMMITMENTS AND CONTINGENCIES Environmental — We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the investigation and remediation of certain environmental sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We initiate corrective and preventive environmental projects of our own to ensure safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows. In September 2007, we were informed of rulings by the United States District Court for the Western District of Kentucky on several pending motions in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al., which had been pending since 2003. The Court held that PolyOne must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls), together with certain defense costs of Goodrich Corporation. The rulings also provided that PolyOne can seek indemnification for contamination attributable to Westlake Vinyls. The environmental obligation at the site arose as a result of an agreement between The B.F.Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993, by which the Geon Company became a public company, to indemnify Goodrich Corporation for environmental costs at the site. At the time, neither PolyOne nor The Geon Company ever owned or operated the facility. Following the Court rulings, the parties to the litigation entered into settlement negotiations and agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocations of future remediation costs at the Calvert City site to Westlake Vinyls. While we do not currently assume any allocation of costs in our current reserve, we will adjust our reserve, in the future, consistent with any such future allocation of costs. A remedial investigation and feasibility study (RIFS) is underway at Calvert City. During the third quarter of 2013, we submitted a remedial investigation report to the United States Environmental Protection Agency (USEPA). The USEPA required certain changes to the remedial investigation report and provided a final report in the third quarter of 2015. Additionally, in the third quarter of 2015, the USEPA assumed responsibility for the completion of the feasibility study. We continue to pursue available insurance coverage related to this matter and recognize gains as we receive reimbursement. No receivable has been recognized for future recoveries. On March 13, 2013, PolyOne acquired Spartech. One of Spartech's subsidiaries, Franklin-Burlington Plastics, Inc. (Franklin-Burlington), operated a plastic resin compounding facility in Kearny, New Jersey, located adjacent to the Passaic River. The USEPA has requested that companies located in the area of the lower Passaic River, including Franklin-Burlington, cooperate in an investigation of contamination of the lower Passaic River. In response, Franklin-Burlington and approximately 70 other companies (collectively, the Cooperating Parties) agreed, pursuant to an Administrative Order of Consent with the USEPA, to assume responsibility for development of a RIFS of the lower Passaic River. The RIFS costs are exclusive of any costs that may ultimately be required to remediate the lower Passaic River area being studied or costs associated with natural resource damages that may be assessed. By agreeing to bear a portion of the cost of the RIFS, Franklin-Burlington did not admit to any liability or agree to bear any such remediation or natural resource damage costs. In April 2014, the USEPA released a Focused Feasibility Study for public comment for a portion of the lower Passaic River. The Cooperating Parties, along with other interested parties, have submitted comments, and the USEPA is currently reviewing the comments. In February 2015, the Cooperating Parties submitted to the USEPA a remedial investigation report for the lower Passaic River. In March 2015, Franklin-Burlington, along with nine other PRPs, submitted a de minimis settlement petition to the USEPA, asserting the ten entities contributed little or no impact to the lower Passaic River and seeking a meeting to commence settlement discussions. In response, the USEPA stated that it views the issuance of a Record of Decision for the Focused Feasibility Study, expected in late 2015, as the appropriate time for de minimis discussions. In April 2015, the Cooperating Parties submitted a feasibility study to the USEPA. The feasibility study does not contemplate who is responsible for remediation nor does it determine how such costs will be allocated to PRPs. As of September 30, 2015, we have not accrued for remedial costs related to the lower Passaic River as we believe Franklin-Burlington, based on the currently available information, contributed little to no contamination to the lower Passaic River and we are unable to estimate a liability, if any, given the uncertainties related to this matter, including the fact that the final remedial actions and scope, an allocation to Franklin-Burlington, if any, or a final resolution of the de minimis petition, have not yet been determined. During the nine months ended September 30, 2015 and 2014 , PolyOne recognized $7.8 million and $ 7.7 million , respectively, of expense related to environmental remediation activities. During the nine months ended September 30, 2015 and 2014, we received $2.6 million and $1.6 million , respectively, of insurance recoveries related to previously incurred environmental costs. These expenses and gains associated with these reimbursements are included within Cost of sales within our Condensed Consolidated Statements of Income . Our aggregate environmental reserve balance was $120.6 million at September 30, 2015 and $121.1 million at December 31, 2014 . The accruals represent our best estimate of the remaining probable remediation costs, based upon information and technology that is currently available and our view of the most likely remedy. Depending upon the results of future testing, completion and results of remedial investigation and feasibility studies, the ultimate remediation alternatives undertaken, changes in regulations, new information, newly discovered conditions and other factors, it is reasonably possible that we could incur additional costs in excess of the amount accrued at September 30, 2015 . However, such additional costs, if any, cannot be currently estimated. Further, future available insurance recoveries associated with these costs have not been accrued. Guarantee — On February 28, 2011, we sold our 50% equity interest in SunBelt Chlor Alkali Partnership (SunBelt) to Olin Corporation (Olin) for $132.3 million in cash and the assumption by Olin of the obligations under our guarantee of senior secured notes issued by SunBelt. The remaining guarantee is $ 18.3 million as of September 30, 2015 and will be reduced by $6.1 million annually until December 2017. Unless the guarantee is formally assigned to Olin, we remain obligated under the guarantee, although Olin has agreed to indemnify us for amounts that we may be obligated to pay under the guarantee. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 13 — DERIVATIVE INSTRUMENTS When translating results from foreign operations into U.S. dollars, we are subject to foreign exchange related risks in our operating results. We are also exposed to foreign exchange risk arising from intercompany transactions denominated in various foreign currencies that are subject to foreign exchange rate movement. To mitigate these risks, we enter into currency forward contracts. The counterparties to these instruments are financial institutions with strong credit ratings. PolyOne maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit ratings of these institutions. Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Condensed Consolidated Balance Sheets. These instruments have not been designated for hedge accounting, and therefore, any gain or loss is immediately recognized in the Consolidated Statements of Income. As noted in the table below, the increase in the notional amount of foreign currency forwards in 2015 is a result of the increased volatility in foreign exchange rates, which led to the Company entering into more foreign currency contracts. The fair value of derivative financial instruments recorded in the Condensed Consolidated Balance Sheets are as follows: September 30, 2015 (In millions) Notional Other current assets Foreign currency forwards $ 37.4 $ (0.1 ) December 31, 2014 (In millions) Notional Other current assets Foreign currency forwards $ 5.1 $ — The effects of derivative instruments on our Condensed Consolidated Statements of Income are as follows: Three Months Ended September 30, (In millions) 2015 2014 Location Foreign currency forwards - (losses) gains $ (0.1 ) $ 0.9 Other expense, net Nine Months Ended September 30, (In millions) 2015 2014 Location Foreign currency forwards - gains $ 1.0 $ 0.8 Other expense, net |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Equity | Note 14 — EQUITY Changes in equity for the nine months ended September 30, 2015 and September 30, 2014 are as follows: (In millions) PolyOne Noncontrolling Total Balance at December 31, 2014 $ 776.3 $ 0.9 $ 777.2 Net income 141.5 0.2 141.7 Other comprehensive income Translation adjustments (23.8 ) — (23.8 ) Total comprehensive income 117.7 0.2 117.9 Cash dividend declared (26.8 ) — (26.8 ) Repurchase of common shares (121.5 ) — (121.5 ) Share-based incentive plan activity 2.2 — 2.2 Balance at September 30, 2015 $ 747.9 $ 1.1 $ 749.0 Balance at December 31, 2013 $ 976.8 $ 1.7 $ 978.5 Net income (loss) 93.8 (0.4 ) 93.4 Other comprehensive income Translation adjustments (15.6 ) — (15.6 ) Total comprehensive income 78.2 (0.4 ) 77.8 Cash dividend declared (22.3 ) — (22.3 ) Repurchase of common shares (175.0 ) — (175.0 ) Share-based incentive plan activity 9.0 — 9.0 Balance at September 30, 2014 $ 866.7 $ 1.3 $ 868.0 Changes in accumulated other comprehensive loss year-to-date as of September 30, 2015 and 2014 were as follows: (In millions) Cumulative Translation Adjustment Pension and Other Post-Retirement Benefits Unrealized Gain in Available-for-Sale Securities Total Balance at January 1, 2015 $ (47.7 ) $ 5.2 $ 0.2 $ (42.3 ) Translation adjustments (23.8 ) — — (23.8 ) Balance at September 30, 2015 $ (71.5 ) $ 5.2 $ 0.2 $ (66.1 ) Balance at January 1, 2014 $ (20.2 ) $ 5.2 $ 0.2 $ (14.8 ) Translation adjustments (15.6 ) — — (15.6 ) Balance at September 30, 2014 $ (35.8 ) $ 5.2 $ 0.2 $ (30.4 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the annual report on Form 10-K for the year ended December 31, 2014 of PolyOne Corporation. When used in this quarterly report on Form 10-Q, the terms “we,” “us,” “our”, "PolyOne" and the “Company” mean PolyOne Corporation and its consolidated subsidiaries. |
Accounting Standards Not Yet Adopted | In July 2015, the Financial Accounting Standards Board (FASB) issued Auditing Standards Update 2015-11, " Inventory (Topic 330): Simplifying the Measurement of Inventory " (ASU 2015-11), which applies to inventory measured using first-in, first out (FIFO) or average cost. This update proscribes that an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements, but does not expect this standard to have a material impact on its Consolidated Financial Statements. In April 2015, the FASB issued Auditing Standards Update 2015-03, " Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs " (ASU 2015-03), which requires unamortized debt issuance costs to be presented as a reduction of the corresponding debt liability rather than a separate asset. The Company will adopt ASU 2015-03 no later than the required date of January 1, 2016. The Company does not expect this standard to have a material impact on its Consolidated Financial Statements. In May 2014, the FASB issued Auditing Standards Update 2014-09, " Revenue from Contracts with Customers " (ASU 2014-09), which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 will be effective for the Company on January 1, 2018. The Company is in the process of determining what impact, if any, the adoption of ASU 2014-09 will have on its Consolidated Financial Statements. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Changes In Carrying Amount Of Goodwill By Operating Segment | Goodwill as of September 30, 2015 and December 31, 2014 , and changes in the carrying amount of goodwill by segment were as follows: (In millions) Global Specialty Global Color, Designed Structures and Solutions Performance PolyOne Total Balance December 31, 2013 $ 99.9 $ 310.2 $ 136.3 $ 11.0 $ 1.6 $ 559.0 Acquisitions of businesses — 23.5 8.4 0.2 — 32.1 Currency translation and other adjustments (0.5 ) — — — — (0.5 ) Balance December 31, 2014 $ 99.4 $ 333.7 $ 144.7 $ 11.2 $ 1.6 $ 590.6 Acquisitions of businesses — 2.0 — — — 2.0 Currency translation and other adjustments (1.5 ) (0.1 ) — — — (1.6 ) Balance September 30, 2015 $ 97.9 $ 335.6 $ 144.7 $ 11.2 $ 1.6 $ 591.0 |
Schedule of Finite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of September 30, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 196.3 $ (39.6 ) $ — $ 156.7 Patents, technology and other 136.3 (43.1 ) (0.3 ) 92.9 Indefinite-lived trade names 96.3 — — 96.3 Total $ 428.9 $ (82.7 ) $ (0.3 ) $ 345.9 As of December 31, 2014 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 198.1 $ (32.6 ) $ — $ 165.5 Patents, technology and other 132.9 (35.3 ) (0.1 ) 97.5 Indefinite-lived trade names 96.3 — — 96.3 In-process research and development 3.4 — — 3.4 Total $ 430.7 $ (67.9 ) $ (0.1 ) $ 362.7 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of September 30, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 196.3 $ (39.6 ) $ — $ 156.7 Patents, technology and other 136.3 (43.1 ) (0.3 ) 92.9 Indefinite-lived trade names 96.3 — — 96.3 Total $ 428.9 $ (82.7 ) $ (0.3 ) $ 345.9 As of December 31, 2014 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 198.1 $ (32.6 ) $ — $ 165.5 Patents, technology and other 132.9 (35.3 ) (0.1 ) 97.5 Indefinite-lived trade names 96.3 — — 96.3 In-process research and development 3.4 — — 3.4 Total $ 430.7 $ (67.9 ) $ (0.1 ) $ 362.7 |
Employee Separation and Restr22
Employee Separation and Restructuring Costs Employee Separation and Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The table below summarizes restructuring activity related to Spartech. (In millions) Long-Lived Asset Charges Employee Separation Other Associated Costs Total Accrual balance at December 31, 2012 $ — $ — $ — $ — Charged to expense 13.6 21.1 9.4 44.1 Cash payments — (6.0 ) (9.4 ) (15.4 ) Non-cash utilization (13.6 ) — — (13.6 ) Accrual balance at December 31, 2013 $ — $ 15.1 $ — $ 15.1 Charged to expense 27.3 5.1 27.3 59.7 Cash payments — (17.5 ) (27.3 ) (44.8 ) Non-cash utilization (27.3 ) — — (27.3 ) Accrual balance at December 31, 2014 $ — $ 2.7 $ — $ 2.7 Charged to expense 5.3 (0.3 ) 4.3 9.3 Cash payments — (1.6 ) (4.3 ) (5.9 ) Non-cash utilization (5.3 ) — — (5.3 ) Accrual balance at March 31, 2015 $ — $ 0.8 $ — $ 0.8 Charged to expense 0.8 — 4.9 5.7 Cash payments — (0.3 ) (4.9 ) (5.2 ) Non-cash utilization (0.8 ) — — (0.8 ) Accrual balance at June 30, 2015 $ — $ 0.5 $ — $ 0.5 Charged to expense — — 2.0 2.0 Cash payments — (0.2 ) (2.0 ) (2.2 ) Non-cash utilization — — — — Accrual balance at September 30, 2015 $ — $ 0.3 $ — $ 0.3 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components Of Inventories | Components of Inventories, net are as follows: (In millions) September 30, 2015 December 31, 2014 Finished products $ 174.2 $ 187.8 Work in process 4.5 4.1 Raw materials and supplies 107.2 117.1 Inventories, net $ 285.9 $ 309.0 |
Property, Net (Tables)
Property, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property, Net | Components of Property, net are as follows: (In millions) September 30, 2015 December 31, 2014 Land $ 46.7 $ 49.2 Buildings 311.6 309.2 Machinery and equipment 1,098.3 1,077.2 Property, gross 1,456.6 1,435.6 Less accumulated depreciation and amortization (882.1 ) (838.9 ) Property, net $ 574.5 $ 596.7 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Contingencies | Unrecognized Tax Benefits (In millions) 2015 Balance as of January 1 $ 28.6 Increases as a result of positions taken during prior years 12.9 Decreases as a result of lapse of statute of limitations (13.1 ) Decreases relating to settlements with taxing authorities (16.9 ) Other 0.6 Balance as of September 30 $ 12.1 |
Schedule of Effective Income Tax Rate Reconciliation | Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Income tax expense at 35% $ 18.0 $ 16.2 $ 58.8 $ 41.9 Uncertain tax positions (7.5 ) (0.8 ) 0.6 0.2 Foreign tax credits from amending prior returns (1.0 ) — (30.4 ) — Tax benefits on certain foreign investments — (5.1 ) — (10.5 ) Changes in valuation allowances 0.4 3.5 0.4 7.5 Tax settlements — — — (4.0 ) Other, net (3.0 ) 0.3 (3.0 ) (7.7 ) Income Tax Expense $ 6.9 $ 14.1 $ 26.4 $ 27.4 Effective Income Tax Rate 13.4 % 30.4 % 15.7 % 22.9 % |
Weighted-Average Shares Used 26
Weighted-Average Shares Used In Computing Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Weighted-Average Shares Used In Computing Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Weighted-average common shares outstanding – basic 87.5 91.8 88.5 93.1 Plus dilutive impact of share-based compensation 0.9 1.3 0.9 1.2 Weighted-average common shares – diluted 88.4 93.1 89.4 94.3 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Period Benefit Costs | Components of defined benefit pension plan net periodic gains are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Service cost $ 0.4 $ 0.5 $ 1.3 $ 1.4 Interest cost 5.3 6.3 16.0 18.8 Expected return on plan assets (8.2 ) (8.1 ) (24.6 ) (24.2 ) Net periodic benefit gains $ (2.5 ) $ (1.3 ) $ (7.3 ) $ (4.0 ) |
Postretirement Health Care Plan Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Period Benefit Costs | Components of post-retirement health care plan benefit costs are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2015 2014 2015 2014 Interest cost $ 0.1 $ 0.2 $ 0.4 $ 0.5 Net periodic benefit costs $ 0.1 $ 0.2 $ 0.4 $ 0.5 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components Of Debt | Debt consists of the following instruments: (Dollars in millions) September 30, 2015 December 31, 2014 7.500% debentures due 2015 $ 48.7 $ 48.7 Revolving credit facility due 2018 121.0 45.0 7.375% senior notes due 2020 316.6 316.6 5.250% senior notes due 2023 600.0 600.0 Other debt 13.5 13.5 Total long-term debt 1,099.8 1,023.8 Less current portion 61.8 61.8 Total long-term debt, net of current portion $ 1,038.0 $ 962.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Information | Segment information for the three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended Three Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Global Color, Additives and Inks $ 198.9 $ 199.9 $ 34.5 $ 207.4 $ 212.0 $ 30.1 Global Specialty Engineered Materials 123.6 136.0 20.0 135.3 145.8 18.4 Designed Structures and Solutions 109.3 112.4 4.3 152.1 152.3 13.1 Performance Products and Solutions 154.3 175.2 16.1 187.2 213.0 17.8 PolyOne Distribution 255.5 259.5 17.6 276.4 280.5 18.7 Corporate and eliminations — (41.4 ) (23.3 ) — (45.2 ) (34.5 ) Total $ 841.6 $ 841.6 $ 69.2 $ 958.4 $ 958.4 $ 63.6 Nine Months Ended Nine Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Global Color, Additives and Inks $ 618.7 $ 625.8 $ 107.9 $ 647.3 $ 660.3 $ 98.2 Global Specialty Engineered Materials 382.2 417.6 63.2 428.0 461.0 55.6 Designed Structures and Solutions 339.4 343.1 12.0 489.3 489.9 37.2 Performance Products and Solutions 480.7 541.4 43.9 560.2 631.8 51.4 PolyOne Distribution 780.8 792.0 52.4 841.4 851.6 53.2 Corporate and eliminations — (118.1 ) (59.8 ) — (128.4 ) (126.2 ) Total $ 2,601.8 $ 2,601.8 $ 219.6 $ 2,966.2 $ 2,966.2 $ 169.4 Total Assets (In millions) September 30, 2015 December 31, 2014 Global Color, Additives and Inks $ 930.2 $ 937.7 Global Specialty Engineered Materials 360.3 370.5 Designed Structures and Solutions 461.8 490.2 Performance Products and Solutions 253.0 265.5 PolyOne Distribution 219.4 214.2 Corporate and eliminations 412.7 433.1 Total assets $ 2,637.4 $ 2,711.2 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Of Derivative Financial Instruments Recorded In Condensed Consolidated Balance Sheets | The fair value of derivative financial instruments recorded in the Condensed Consolidated Balance Sheets are as follows: September 30, 2015 (In millions) Notional Other current assets Foreign currency forwards $ 37.4 $ (0.1 ) December 31, 2014 (In millions) Notional Other current assets Foreign currency forwards $ 5.1 $ — |
The effects of derivative instruments on our Condensed Consolidated Statements of Income | The effects of derivative instruments on our Condensed Consolidated Statements of Income are as follows: Three Months Ended September 30, (In millions) 2015 2014 Location Foreign currency forwards - (losses) gains $ (0.1 ) $ 0.9 Other expense, net Nine Months Ended September 30, (In millions) 2015 2014 Location Foreign currency forwards - gains $ 1.0 $ 0.8 Other expense, net |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule Of Changes In Equity | Changes in equity for the nine months ended September 30, 2015 and September 30, 2014 are as follows: (In millions) PolyOne Noncontrolling Total Balance at December 31, 2014 $ 776.3 $ 0.9 $ 777.2 Net income 141.5 0.2 141.7 Other comprehensive income Translation adjustments (23.8 ) — (23.8 ) Total comprehensive income 117.7 0.2 117.9 Cash dividend declared (26.8 ) — (26.8 ) Repurchase of common shares (121.5 ) — (121.5 ) Share-based incentive plan activity 2.2 — 2.2 Balance at September 30, 2015 $ 747.9 $ 1.1 $ 749.0 Balance at December 31, 2013 $ 976.8 $ 1.7 $ 978.5 Net income (loss) 93.8 (0.4 ) 93.4 Other comprehensive income Translation adjustments (15.6 ) — (15.6 ) Total comprehensive income 78.2 (0.4 ) 77.8 Cash dividend declared (22.3 ) — (22.3 ) Repurchase of common shares (175.0 ) — (175.0 ) Share-based incentive plan activity 9.0 — 9.0 Balance at September 30, 2014 $ 866.7 $ 1.3 $ 868.0 |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss year-to-date as of September 30, 2015 and 2014 were as follows: (In millions) Cumulative Translation Adjustment Pension and Other Post-Retirement Benefits Unrealized Gain in Available-for-Sale Securities Total Balance at January 1, 2015 $ (47.7 ) $ 5.2 $ 0.2 $ (42.3 ) Translation adjustments (23.8 ) — — (23.8 ) Balance at September 30, 2015 $ (71.5 ) $ 5.2 $ 0.2 $ (66.1 ) Balance at January 1, 2014 $ (20.2 ) $ 5.2 $ 0.2 $ (14.8 ) Translation adjustments (15.6 ) — — (15.6 ) Balance at September 30, 2014 $ (35.8 ) $ 5.2 $ 0.2 $ (30.4 ) |
Business Combinations Narrative
Business Combinations Narrative (Details) - USD ($) $ in Millions | Dec. 01, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill acquired | $ 591 | $ 590.6 | $ 559 | |
Accella [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses net of cash acquired | $ 47.2 | |||
Goodwill acquired | 24.7 | |||
Intangible assets acquired | $ 16 |
Goodwill And Intangible Asset33
Goodwill And Intangible Assets (Goodwill And Changes In Carrying Amount Of Goodwill By Operating Segment) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 590.6 | $ 559 |
Acquisitions of businesses | 2 | 32.1 |
Currency translation and other adjustments | (1.6) | (0.5) |
Balance, end of period | 591 | 590.6 |
Global Specialty Engineered Materials [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 99.4 | 99.9 |
Acquisitions of businesses | 0 | 0 |
Currency translation and other adjustments | (1.5) | (0.5) |
Balance, end of period | 97.9 | 99.4 |
Global Color, Additives And Inks [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 333.7 | 310.2 |
Acquisitions of businesses | 2 | 23.5 |
Currency translation and other adjustments | (0.1) | 0 |
Balance, end of period | 335.6 | 333.7 |
Designed Structures and Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 144.7 | 136.3 |
Acquisitions of businesses | 0 | 8.4 |
Currency translation and other adjustments | 0 | 0 |
Balance, end of period | 144.7 | 144.7 |
Performance Products And Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 11.2 | 11 |
Acquisitions of businesses | 0 | 0.2 |
Currency translation and other adjustments | 0 | 0 |
Balance, end of period | 11.2 | 11.2 |
PolyOne Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 1.6 | 1.6 |
Acquisitions of businesses | 0 | 0 |
Currency translation and other adjustments | 0 | 0 |
Balance, end of period | $ 1.6 | $ 1.6 |
Goodwill And Intangible Asset34
Goodwill And Intangible Assets (Schedule Of Indefinite And Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Indefinite And Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | $ 428.9 | $ 430.7 |
Accumulated Amortization | (82.7) | (67.9) |
Currency Translation | (0.3) | (0.1) |
Net | 345.9 | 362.7 |
Customer Relationships [Member] | ||
Indefinite And Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 196.3 | 198.1 |
Accumulated Amortization | (39.6) | (32.6) |
Currency Translation | 0 | 0 |
Net | 156.7 | 165.5 |
Patents Technology And Other [Member] | ||
Indefinite And Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 136.3 | 132.9 |
Accumulated Amortization | (43.1) | (35.3) |
Currency Translation | (0.3) | (0.1) |
Net | 92.9 | 97.5 |
Trade Names [Member] | ||
Indefinite And Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost (indefinite lived) | $ 96.3 | 96.3 |
In Process Research and Development [Member] | ||
Indefinite And Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost (indefinite lived) | $ 3.4 |
Employee Separation and Restr35
Employee Separation and Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | 33 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Charged to expense | $ 13.7 | $ 17.9 | $ 31.8 | $ 70.9 | ||||||
Spartech [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring related costs, beginning balance | 0.5 | $ 0.8 | $ 2.7 | 2.7 | 15.1 | $ 15.1 | $ 0 | $ 0 | ||
Charged to expense | 2 | 5.7 | 9.3 | 59.7 | 44.1 | 120.8 | ||||
Cash payments | (2.2) | (5.2) | (5.9) | (44.8) | (15.4) | (73.8) | ||||
Non-cash utilization | 0 | (0.8) | (5.3) | (27.3) | (13.6) | |||||
Restructuring related costs, ending balance | 0.3 | 0.5 | 0.8 | 0.3 | 2.7 | 15.1 | $ 0.3 | 0.3 | ||
Spartech [Member] | Long-Lived Asset Charges [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring related costs, beginning balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Charged to expense | 0 | 0.8 | 5.3 | 27.3 | 13.6 | 47 | ||||
Cash payments | 0 | 0 | 0 | 0 | 0 | |||||
Non-cash utilization | 0 | (0.8) | (5.3) | (27.3) | (13.6) | |||||
Restructuring related costs, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Spartech [Member] | Employee Separation [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring related costs, beginning balance | 0.5 | 0.8 | 2.7 | 2.7 | 15.1 | 15.1 | 0 | 0 | ||
Charged to expense | 0 | 0 | (0.3) | 5.1 | 21.1 | |||||
Cash payments | (0.2) | (0.3) | (1.6) | (17.5) | (6) | |||||
Non-cash utilization | 0 | 0 | 0 | 0 | 0 | |||||
Restructuring related costs, ending balance | 0.3 | 0.5 | 0.8 | 0.3 | 2.7 | 15.1 | 0.3 | 0.3 | ||
Spartech [Member] | Other Associated Costs [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Restructuring related costs, beginning balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Charged to expense | 2 | 4.9 | 4.3 | 27.3 | 9.4 | |||||
Cash payments | (2) | (4.9) | (4.3) | (27.3) | (9.4) | |||||
Non-cash utilization | 0 | 0 | 0 | 0 | 0 | |||||
Restructuring related costs, ending balance | 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | 0 | $ 0 | ||
Brazil Facility Closure [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Cash payments | (6) | |||||||||
Brazil Facility Closure [Member] | Long-Lived Asset Charges [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Charged to expense | $ 11.2 | |||||||||
Cost of Sales [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Charged to expense | $ 11.6 | $ 7.8 | $ 24.8 | $ 40.9 |
Employee Separation and Restr36
Employee Separation and Restructuring Costs - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | 33 Months Ended | |||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)officefacility | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | $ 13.7 | $ 17.9 | $ 31.8 | $ 70.9 | ||||||
Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Number of facilities closed | facility | 7 | |||||||||
Administrative Office Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Number of facilities closed | office | 1 | |||||||||
Cost of Sales [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 11.6 | 7.8 | 24.8 | 40.9 | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 2.1 | 10.1 | 7 | 30 | ||||||
Granby Facility Closure [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance costs | 1.8 | |||||||||
Expected future cash savings | 2 | |||||||||
Expected remaining costs | 3 | 3 | $ 3 | $ 3 | ||||||
Granby Facility Closure [Member] | Assets [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 8.7 | |||||||||
Granby Facility Closure [Member] | Selling, General and Administrative Expenses [Member] | Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 10.5 | |||||||||
Brazil Facility Closure [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance costs | 2.7 | |||||||||
Other associated restructuring costs | 3.9 | |||||||||
Payments for Restructuring | 6 | |||||||||
Annual savings from restructuring | 4.5 | |||||||||
Brazil Facility Closure [Member] | Assets [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 11.2 | |||||||||
Brazil Facility Closure [Member] | Selling, General and Administrative Expenses [Member] | Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 0.1 | $ 2.9 | 0.8 | $ 17.2 | $ 17.8 | |||||
Spartech [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 2 | $ 5.7 | $ 9.3 | $ 59.7 | $ 44.1 | 120.8 | ||||
Severance costs | 25.9 | |||||||||
Other associated restructuring costs | 47.9 | |||||||||
Payments for Restructuring | 2.2 | 5.2 | 5.9 | 44.8 | 15.4 | 73.8 | ||||
Expected future cash savings | 30 | |||||||||
Spartech [Member] | Assets [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Charged to expense | 0 | 0.8 | 5.3 | 27.3 | 13.6 | 47 | ||||
Payments for Restructuring | 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Spartech [Member] | Spartech Realignment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for Restructuring | $ 63 | |||||||||
Other Associated Costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other associated restructuring costs | $ 1.1 | 3.5 | ||||||||
Designed Structures and Solutions [Member] | Spartech [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected future cash savings | 15 | |||||||||
Global Color, Additives and Inks, Global Specialty Engineered Materials, Performance Products and Solutions [Member] | Spartech [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected future cash savings | $ 15 |
Inventories, Net (Components Of
Inventories, Net (Components Of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 174.2 | $ 187.8 |
Work in process | 4.5 | 4.1 |
Raw materials and supplies | 107.2 | 117.1 |
Inventories, net | $ 285.9 | $ 309 |
Property, Net (Details)
Property, Net (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, gross | $ 1,456.6 | $ 1,435.6 | |
Less accumulated depreciation and amortization | (882.1) | (838.9) | |
Property, net | 574.5 | 596.7 | |
Depreciation expense | 63.5 | $ 84.5 | |
Accelerated depreciation | 4.6 | $ 22.9 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | 46.7 | 49.2 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | 311.6 | 309.2 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | $ 1,098.3 | $ 1,077.2 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% | |
Other tax expense benefit | $ 3.3 | $ (4.7) | |||
Effective Income Tax Rate | 13.40% | 30.40% | 15.70% | 22.90% | |
Increase in deduction amount | $ 1 | ||||
Favorable change related to legal entity consolidation in foreign jurisdiction | 1.6 | ||||
Tax benefit from investment in foreign affiliates | 0 | $ 5.1 | $ 0 | $ 10.5 | |
Favorable adjustment related to amended state tax returns | 1.9 | ||||
Uncertain tax positions | 7.5 | 0.8 | (0.6) | (0.2) | |
Tax settlements | 0 | 0 | 0 | (4) | |
Foreign tax credits from amending prior returns | 1 | 0 | 30.4 | 0 | |
Changes in valuation allowances | 0.4 | $ 3.5 | 0.4 | $ 7.5 | |
Accrued for interest and penalties | 4.5 | 4.5 | $ 8.6 | ||
Tax Year 2004-2012 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits from amending prior returns | $ 1 | 30.4 | |||
Judicial Ruling [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Unfavorable state tax adjustments as result of court ruling | 1 | ||||
Judicial Ruling [Member] | Foreign Tax Authority [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax settlements | $ 0.6 |
Income Taxes Income Taxes Effec
Income Taxes Income Taxes Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at 35% | $ 18 | $ 16.2 | $ 58.8 | $ 41.9 |
Uncertain tax positions | (7.5) | (0.8) | 0.6 | 0.2 |
Foreign tax credits from amending prior returns | (1) | 0 | (30.4) | 0 |
Tax benefits on certain foreign investments | 0 | (5.1) | 0 | (10.5) |
Changes in valuation allowances | 0.4 | 3.5 | 0.4 | 7.5 |
Tax settlements | 0 | 0 | 0 | (4) |
Other, net | (3) | 0.3 | (3) | (7.7) |
Income Tax Expense | $ 6.9 | $ 14.1 | $ 26.4 | $ 27.4 |
Effective Income Tax Rate | 13.40% | 30.40% | 15.70% | 22.90% |
Income Taxes Income Taxes Provi
Income Taxes Income Taxes Provisions For Uncertain Tax Positions (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance as of January 1 | $ 28.6 |
Increases as a result of positions taken during prior years | 12.9 |
Decreases as a result of lapse of statute of limitations | (13.1) |
Decreases relating to settlements with taxing authorities | (16.9) |
Other | 0.6 |
Balance as of September 30 | $ 12.1 |
Weighted-Average Shares Used 42
Weighted-Average Shares Used In Computing Earnings Per Common Share (Schedule Of Weighted-Average Shares Used In Computing Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding - basic (in shares) | 87.5 | 91.8 | 88.5 | 93.1 |
Plus dilutive impact of share-based compensation (in shares) | 0.9 | 1.3 | 0.9 | 1.2 |
Weighted-average common shares - diluted (in shares) | 88.4 | 93.1 | 89.4 | 94.3 |
Weighted-Average Shares Used 43
Weighted-Average Shares Used In Computing Earnings Per Common Share Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Equity-based awards excluded (in shares) | 200,000 | 300,000 | 0 | 400,000 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Net Period Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.4 | $ 0.5 | $ 1.3 | $ 1.4 |
Interest cost | 5.3 | 6.3 | 16 | 18.8 |
Expected return on plan assets | (8.2) | (8.1) | (24.6) | (24.2) |
Net periodic benefit gains | (2.5) | (1.3) | (7.3) | (4) |
Postretirement Health Care Plan Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.1 | 0.2 | 0.4 | 0.5 |
Net periodic benefit gains | $ 0.1 | $ 0.2 | $ 0.4 | $ 0.5 |
Financing Arrangements (Compone
Financing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,099.8 | $ 1,023.8 |
Other debt | 13.5 | 13.5 |
Less current portion | 61.8 | 61.8 |
Total long-term debt, net of current portion | 1,038 | 962 |
7.500% Debentures Due 2015 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 48.7 | $ 48.7 |
Interest rate of senior notes, debentures and medium-term notes. | 7.50% | 7.50% |
Maturity date of debt instrument | Dec. 15, 2015 | Dec. 15, 2015 |
Revolving Credit Facility Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 121 | $ 45 |
7.375% Senior Notes Due 2020 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 316.6 | $ 316.6 |
Interest rate of senior notes, debentures and medium-term notes. | 7.375% | 7.375% |
Maturity date of debt instrument | Sep. 15, 2020 | Sep. 15, 2020 |
5.250% Senior Notes Due 2023 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 600 | $ 600 |
Interest rate of senior notes, debentures and medium-term notes. | 5.25% | 5.25% |
Maturity date of debt instrument | Mar. 15, 2023 | Mar. 15, 2023 |
Financing Arrangements Narrativ
Financing Arrangements Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Amount of long-term debt | $ 1,099,800,000 | $ 1,099,800,000 | $ 1,023,800,000 |
Fair value of debt instruments | 1,073,200,000 | 1,073,200,000 | 1,045,400,000 |
Saudi Hollandi Bank [Member] | |||
Debt Instrument [Line Items] | |||
Amount outstanding | $ 13,100,000 | $ 13,100,000 | |
Line of credit interest rate | 1.70% | 1.70% | |
SAIBOR [Member] | Saudi Hollandi Bank [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate on line of credit | 0.85% | ||
Saudi Hollandi Bank [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing facility size | $ 16,000,000 | $ 16,000,000 | |
Outstanding letters of credit | 300,000 | 300,000 | |
Revolving Credit Facility Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Amount of long-term debt | 121,000,000 | 121,000,000 | $ 45,000,000 |
Revolving Credit Facility Due 2018 [Member] | Canadian Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Canadian line of credit outstanding | $ 0 | ||
Revolving Credit Facility Due 2018 [Member] | Federal Funds Effective Swap Rate [Member] | US Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate on line of credit | 0.50% | ||
Revolving Credit Facility Due 2018 [Member] | London Interbank Offered Rate (LIBOR) [Member] | US Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate on line of credit | 1.00% | ||
Revolving Credit Facility Due 2018 [Member] | Various Banks [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing facility size | 400,000,000 | $ 400,000,000 | |
Potential maximum borrowing capacity | $ 450,000,000 | $ 450,000,000 | |
Facility weighted average interest rate | 2.49% | 2.44% | |
Current borrowing availability | $ 182,900,000 | $ 182,900,000 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Information) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 5 | ||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 841.6 | $ 958.4 | $ 2,601.8 | $ 2,966.2 | |
Operating Income | 69.2 | 63.6 | 219.6 | 169.4 | |
Assets | 2,637.4 | 2,637.4 | $ 2,711.2 | ||
Global Color Additives And Inks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 198.9 | 207.4 | 618.7 | 647.3 | |
Operating Income | 34.5 | 30.1 | 107.9 | 98.2 | |
Assets | 930.2 | 930.2 | 937.7 | ||
Global Specialty Engineered Materials [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 123.6 | 135.3 | 382.2 | 428 | |
Operating Income | 20 | 18.4 | 63.2 | 55.6 | |
Assets | 360.3 | 360.3 | 370.5 | ||
Designed Structures and Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 109.3 | 152.1 | 339.4 | 489.3 | |
Operating Income | 4.3 | 13.1 | 12 | 37.2 | |
Assets | 461.8 | 461.8 | 490.2 | ||
Performance Products And Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 154.3 | 187.2 | 480.7 | 560.2 | |
Operating Income | 16.1 | 17.8 | 43.9 | 51.4 | |
Assets | 253 | 253 | 265.5 | ||
PolyOne Distribution [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 255.5 | 276.4 | 780.8 | 841.4 | |
Operating Income | 17.6 | 18.7 | 52.4 | 53.2 | |
Assets | 219.4 | 219.4 | 214.2 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 841.6 | 958.4 | 2,601.8 | 2,966.2 | |
Operating Segments [Member] | Global Color Additives And Inks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 199.9 | 212 | 625.8 | 660.3 | |
Operating Segments [Member] | Global Specialty Engineered Materials [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 136 | 145.8 | 417.6 | 461 | |
Operating Segments [Member] | Designed Structures and Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 112.4 | 152.3 | 343.1 | 489.9 | |
Operating Segments [Member] | Performance Products And Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 175.2 | 213 | 541.4 | 631.8 | |
Operating Segments [Member] | PolyOne Distribution [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 259.5 | 280.5 | 792 | 851.6 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (41.4) | (45.2) | (118.1) | (128.4) | |
Operating Income | (23.3) | $ (34.5) | (59.8) | $ (126.2) | |
Assets | $ 412.7 | $ 412.7 | $ 433.1 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Mar. 13, 2013company | Feb. 28, 2011USD ($) | Mar. 31, 2015entityparty | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Companies | company | 71 | |||||
Number of potentially responsible parties | party | 10 | |||||
Number of entities contributing little or no impact to lower passaic river | entity | 10 | |||||
Accrued probable future environmental expenditures | $ 120.6 | $ 121.1 | ||||
Sunbelt [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest sold, percentage | 50.00% | |||||
Consideration received on transaction | $ 132.3 | |||||
Guarantee assumed by acquirer | 18.3 | |||||
Guarantee annual reduction | 6.1 | |||||
Cost of Sales [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Expense related to environmental activities | 7.8 | $ 7.7 | ||||
Proceeds from insurance recoveries | $ 2.6 | $ 1.6 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value Of Derivative Financial Instruments Recorded In Condensed Consolidated Balance Sheets) (Details) - Foreign Currency Forwards [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||||
Notional | $ 37.4 | $ 37.4 | $ 5.1 | ||
Other current assets | (0.1) | (0.1) | $ 0 | ||
Other Expense Net [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign currency forwards - (losses) gains | $ (0.1) | $ 0.9 | $ 1 | $ 0.8 |
Equity Rollforward (Details)
Equity Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
PolyOne Shareholders' Equity, Balance at the beginning | $ 776.3 | |||
Noncontrolling Interests, Balance at the beginning | 0.9 | |||
Total Equity, Balance at the beginning | 777.2 | $ 978.5 | ||
PolyOne Shareholders' Equity, Net Income | $ 44.5 | $ 32.7 | 141.5 | 93.8 |
Noncontrolling Interest, Net Income | 0 | 0 | 0.2 | (0.4) |
Total Equity, Net income | 44.5 | 32.7 | 141.7 | 93.4 |
Other comprehensive income | ||||
Translation adjustments | (9.2) | (16) | (23.8) | (15.6) |
Unrealized loss on available-for-sale securities | (0.4) | 0 | 0 | 0 |
PolyOne Shareholders' Equity, Total comprehensive income | 34.9 | 16.7 | 117.7 | 78.2 |
Noncontrolling Interests, Total comprehensive income | 0 | 0 | 0.2 | (0.4) |
Total comprehensive income | 34.9 | 16.7 | 117.9 | 77.8 |
Cash dividend declared | (26.8) | (22.3) | ||
Repurchase of common shares | (121.5) | (175) | ||
Share-based incentive plan activity | 2.2 | 9 | ||
PolyOne Shareholders' Equity, Balance at the ending | 747.9 | 747.9 | ||
Noncontrolling Interests, Balance at the ending | 1.1 | 1.1 | ||
Total Equity, Balance at the ending | 749 | 868 | 749 | 868 |
Parent [Member] | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
PolyOne Shareholders' Equity, Balance at the beginning | 776.3 | 976.8 | ||
PolyOne Shareholders' Equity, Net Income | 93.8 | |||
Other comprehensive income | ||||
Translation adjustments | (23.8) | (15.6) | ||
PolyOne Shareholders' Equity, Total comprehensive income | 117.7 | 78.2 | ||
Cash dividend declared | (26.8) | (22.3) | ||
Repurchase of common shares | (121.5) | (175) | ||
Share-based incentive plan activity | 2.2 | 9 | ||
PolyOne Shareholders' Equity, Balance at the ending | 747.9 | 866.7 | 747.9 | 866.7 |
Noncontrolling Interest [Member] | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling Interests, Balance at the beginning | 0.9 | 1.7 | ||
Noncontrolling Interest, Net Income | 0.2 | (0.4) | ||
Other comprehensive income | ||||
Translation adjustments | 0 | 0 | ||
Noncontrolling Interests, Total comprehensive income | 0.2 | (0.4) | ||
Cash dividend declared | 0 | 0 | ||
Repurchase of common shares | 0 | 0 | ||
Share-based incentive plan activity | 0 | 0 | ||
Noncontrolling Interests, Balance at the ending | $ 1.1 | $ 1.3 | $ 1.1 | $ 1.3 |
Rollforward of Schedule of Accu
Rollforward of Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total, Balance at beginning of period | $ (42.3) | $ (14.8) | ||
Translation adjustments | $ (9.2) | $ (16) | (23.8) | (15.6) |
Unrealized loss on available-for-sale securities | (0.4) | 0 | 0 | 0 |
Total, Balance at end of period | (66.1) | (30.4) | (66.1) | (30.4) |
Cumulative Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total, Balance at beginning of period | (47.7) | (20.2) | ||
Translation adjustments | (23.8) | (15.6) | ||
Total, Balance at end of period | (71.5) | (35.8) | (71.5) | (35.8) |
Pension and Other Post-Retirement Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total, Balance at beginning of period | 5.2 | 5.2 | ||
Translation adjustments | 0 | 0 | ||
Total, Balance at end of period | 5.2 | 5.2 | 5.2 | 5.2 |
Unrealized Gain in Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total, Balance at beginning of period | 0.2 | 0.2 | ||
Translation adjustments | 0 | 0 | ||
Total, Balance at end of period | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |