Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
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 | Mar. 31, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Shares, Shares Outstanding | 84,043,296 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Sales | $ 847 | $ 873.1 |
Cost of sales | 661.5 | 703.3 |
Gross margin | 185.5 | 169.8 |
Selling and administrative expense | 114.2 | 99.7 |
Operating income | 71.3 | 70.1 |
Interest expense, net | (14.6) | (16.1) |
Other income (expense), net | 0.3 | (0.7) |
Income before income taxes | 57 | 53.3 |
Income tax expense | (18) | (23.1) |
Net income | 39 | 30.2 |
Net loss attributable to noncontrolling interests | 0.1 | 0 |
Net income attributable to PolyOne common shareholders | $ 39.1 | $ 30.2 |
Earnings per common share attributable to PolyOne common shareholders - Basic (USD per share) | $ 0.46 | $ 0.34 |
Earnings per common share attributable to PolyOne common shareholders - Diluted (USD per share) | $ 0.46 | $ 0.34 |
Weighted-average shares used to compute earnings per common share: | ||
Basic (in shares) | 84.7 | 89.2 |
Diluted (in shares) | 85.5 | 90.1 |
Cash dividends declared per share of common stock (in usd per share) | $ 0.12 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 39 | $ 30.2 |
Other comprehensive income | ||
Translation adjustments | (0.2) | (17.9) |
Total comprehensive income | 38.8 | 12.3 |
Comprehensive loss attributable to noncontrolling interests | 0.1 | 0 |
Comprehensive income attributable to PolyOne common shareholders | $ 38.9 | $ 12.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 155.4 | $ 279.8 |
Accounts receivable, net | 429.2 | 347 |
Inventories, net | 323.5 | 287 |
Other current assets | 40.8 | 47 |
Total current assets | 948.9 | 960.8 |
Property, net | 579.9 | 583.5 |
Goodwill | 634.8 | 597.7 |
Intangible assets, net | 353.1 | 344.6 |
Other non-current assets | 107.7 | 108.5 |
Total assets | 2,624.4 | 2,595.1 |
Current liabilities: | ||
Short-term and current portion of long-term debt | 18.6 | 18.6 |
Accounts payable | 383.4 | 351.6 |
Accrued expenses and other current liabilities | 116.4 | 127.9 |
Total current liabilities | 518.4 | 498.1 |
Non-current liabilities: | ||
Long-term debt | 1,174.3 | 1,128 |
Pension and other post-retirement benefits | 55.6 | 77.5 |
Deferred income taxes | 34.1 | 33.8 |
Other non-current liabilities | 148.5 | 152.5 |
Total non-current liabilities | 1,412.5 | 1,391.8 |
Shareholders’ equity: | ||
PolyOne shareholders’ equity | 692.6 | 704.2 |
Noncontrolling interests | 0.9 | 1 |
Total equity | 693.5 | 705.2 |
Total liabilities and shareholders’ equity | $ 2,624.4 | $ 2,595.1 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 39 | $ 30.2 |
Adjustments to reconcile net income to net cash used by operating activities: | ||
Depreciation and amortization | 24.3 | 25 |
Accelerated depreciation and fixed asset charges associated with restructuring activities | 2.8 | 5.4 |
Provision for doubtful accounts | 0.1 | 0 |
Share-based compensation expense | 2.2 | 1.9 |
Change in assets and liabilities, net of the effect of acquisitions: | ||
Increase in accounts receivable | (79.5) | (55.8) |
(Increase) decrease in inventories | (13.3) | 7.4 |
Increase in accounts payable | 29.9 | 22.2 |
Decrease in pension and other post-retirement benefits | (23.7) | (24) |
Decrease in accrued expenses and other assets and liabilities - net | (11) | (70.1) |
Net cash used by operating activities | (29.2) | (57.8) |
Investing Activities | ||
Capital expenditures | (19.6) | (15.1) |
Business acquisitions | (72.8) | 0 |
Proceeds from sale of businesses and other assets | 0 | 1.1 |
Net cash used by investing activities | (92.4) | (14) |
Financing Activities | ||
Repayment of long-term debt | (1.4) | 0 |
Borrowings under credit facilities | 221.9 | 274.7 |
Repayments under credit facilities | (174.6) | (187.4) |
Purchase of common shares for treasury | (39.6) | (19.6) |
Exercise of share awards | 0.6 | 3.8 |
Cash dividends paid | (10.4) | (9) |
Net cash (used) provided by financing activities | (3.5) | 62.5 |
Effect of exchange rate changes on cash | 0.7 | (2.9) |
Decrease in cash and cash equivalents | (124.4) | (12.2) |
Cash and cash equivalents at beginning of period | 279.8 | 238.6 |
Cash and cash equivalents at end of period | $ 155.4 | $ 226.4 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 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 months ended March 31, 2016 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2016 . Accounting Standards Not Yet Adopted In March 2016, the FASB issued Accounting Standards Update 2016-09, " Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting " (ASU 2016-09), which simplifies the the accounting for share-based payment transactions. This update requires that excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than additional paid-in capital. Additionally, the excess tax benefits will be classified along with other income tax cash flows as an operating activity, rather than a financing activity, on the Statement of Cash Flows. Further, the update allows an entity to make a policy election to recognize forfeitures as they occur or estimate the number of awards expected to be forfeited. ASU 2016-09 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively, with certain cumulative effect adjustments. Early adoption is permitted. We do not expect this standard to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, " Leases (Topic 842) " (ASU 2016-02), which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. The Company will adopt ASU 2016-02 no later than the required date of January 1, 2019. We are currently assessing the impact this standard will have on our Consolidated Financial Statements. In July 2015, the FASB issued Accounting Standards Update 2015-11, " Inventory (Topic 300): Simplifying the Measurement of Inventory " (ASU 2015-11), which applies to inventory measured using first-in, first out (FIFO) or average cost. This update requires 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. We do not expect this standard to have a material impact on our Consolidated Financial Statements. In May 2014, the FASB issued Auditing Standards Update 2014-09, " Revenue from Contracts with Customers " (ASU 2014-09). Under this standard, a company recognizes 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 or services. The standard implements a five-step process for customer contract revenue recognition that focuses on transfer of control. The Company will adopt ASU 2014-09 no later than the required date of January 1, 2018. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact this standard will have on our Consolidated Financial Statements as well as the method by which we will adopt the new standard. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 — BUSINESS COMBINATIONS On December 9, 2015, the Company completed the acquisition of Magenta Master Fibers (Magenta), a leading innovative developer of the specialty color concentrates for the global fiber industry, for approximately $18.1 million , net of cash acquired. The results of operations of Magenta 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 Color, Additives and Inks segment. The preliminary purchase price allocation is subject to change and not yet finalized. This preliminary allocation resulted in goodwill of $6.6 million . Goodwill recognized as a result of this acquisition is not deductible for tax purposes. On January 29, 2016, the Company completed the acquisition of certain technologies and assets from Kraton Performance Polymers, Inc (Kraton), to expand its global footprint and expertise in thermoplastic elastomer (TPE) innovation and design, for approximately $72.8 million . The results of operations of Kraton are included in the Company's Consolidated Statements of Income for the period subsequent to the date of the acquisition and are reported in the Specialty Engineered Materials segment. The preliminary purchase price allocation is subject to change and not yet finalized. This preliminary allocation resulted in goodwill of $36.9 million and $13.8 million in intangible assets that will be amortized over a period of seven to ten years. Goodwill recognized as a result of this acquisition is deductible for tax purposes. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Note 3 — GOODWILL AND INTANGIBLE ASSETS Goodwill as of March 31, 2016 and December 31, 2015 , and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Color, Designed Structures and Solutions Performance PolyOne Total Balance December 31, 2014 $ 99.4 $ 333.7 $ 144.7 $ 11.2 $ 1.6 $ 590.6 Acquisitions of businesses — 8.6 — — — 8.6 Currency translation and other adjustments (1.4 ) (0.1 ) — — — (1.5 ) Balance December 31, 2015 $ 98.0 $ 342.2 $ 144.7 $ 11.2 $ 1.6 $ 597.7 Acquisitions of businesses 36.9 — — — — 36.9 Currency translation and other adjustments 0.2 — — — — 0.2 Balance March 31, 2016 $ 135.1 $ 342.2 $ 144.7 $ 11.2 $ 1.6 $ 634.8 Indefinite and finite-lived intangible assets consisted of the following: As of March 31, 2016 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 202.0 $ (44.6 ) $ — $ 157.4 Patents, technology and other 148.2 (48.6 ) (0.2 ) 99.4 Indefinite-lived trade names 96.3 — — 96.3 Total $ 446.5 $ (93.2 ) $ (0.2 ) $ 353.1 As of December 31, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 199.4 $ (42.1 ) $ — $ 157.3 Patents, technology and other 137.0 (45.7 ) (0.3 ) 91.0 Indefinite-lived trade names 96.3 — — 96.3 Total $ 432.7 $ (87.8 ) $ (0.3 ) $ 344.6 |
Employee Separation and Restruc
Employee Separation and Restructuring Costs | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Employee Separation And Restructuring Costs | Note 4 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS In the second half of 2015, PolyOne determined it would close two manufacturing facilities within the Designed Structures and Solutions segment and take other corporate actions to reduce administrative costs. These actions were taken as a result of Designed Structures and Solutions' declining results and near-term outlook. During the three months ended March 31, 2016, we recognized $5.1 million , primarily related to severance and asset-related charges, associated with these actions. Total costs for these actions to-date has been $22.2 million , which include $8.3 million of severance costs, $12.7 million of asset-related charges, including accelerated depreciation of $8.6 million , and $1.2 million of other ongoing costs associated with exiting these plants and transferring equipment. We anticipate the remaining accelerated depreciation charges and ongoing costs of $5.0 million to be incurred in the second and third quarters of 2016. 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 was part of the Company’s efforts to improve service, on time delivery and quality as we align assets with our customers' needs. There were no charges related to the Spartech actions during the three months ended March 31, 2016 as these actions were complete as of December 31, 2015. We recognized $9.3 million related to these actions during the three months ended March 31, 2015. During the three months ended March 31, 2016 , we recognized total employee separation and restructuring charges of $7.1 million , of which $2.7 million was recognized within Cost of goods sold and $4.4 million within Selling and administrative expenses . During the three months ended March 31, 2015 , we recognized total employee separation and restructuring charges of $10.6 million , of which $7.9 million was recognized within Cost of goods sold and $2.7 million within Selling and administrative expenses. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5 — INVENTORIES, NET Components of Inventories, net are as follows: (In millions) March 31, 2016 December 31, 2015 Finished products $ 202.7 $ 172.7 Work in process 6.4 5.0 Raw materials and supplies 114.4 109.3 Inventories, net $ 323.5 $ 287.0 |
Property, Net
Property, Net | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Net | Note 6 — PROPERTY, NET Components of Property, net are as follows: (In millions) March 31, 2016 December 31, 2015 Land $ 47.1 $ 46.9 Buildings 321.0 318.3 Machinery and equipment 1,120.9 1,104.7 Property, gross 1,489.0 1,469.9 Less accumulated depreciation and amortization (909.1 ) (886.4 ) Property, net $ 579.9 $ 583.5 Depreciation expense was $21.7 million for the three months ended March 31, 2016 and $20.2 million for the three months ended March 31, 2015 . Included in depreciation expense is accelerated depreciation of $2.8 million and $0.1 million during the three months ended March 31, 2016 and 2015, respectively, related to restructuring actions. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — INCOME TAXES During the first quarter of 2016, the Company's effective tax rate of 31.6% differed from the Company's federal statutory rate of 35.0% primarily due to the favorable impact of foreign tax rate differences on foreign earnings. The effective tax rate for the three months ended March 31, 2015 was 43.3% . The decrease in effective tax rate of 11.7% is primarily due to a foreign court ruling that settled an uncertain tax position taken in a prior year negatively impacting the 2015 effective tax rate by 15.3% . Partially offsetting this increase in the first quarter of 2015 was a benefit of amending certain prior period tax returns associated with the use of foreign tax credits. |
Weighted-Average Shares Used In
Weighted-Average Shares Used In Computing Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In millions) 2016 2015 Weighted-average common shares outstanding – basic 84.7 89.2 Plus dilutive impact of share-based compensation 0.8 0.9 Weighted-average common shares – diluted 85.5 90.1 For the three months ended March 31, 2016 and 2015 , 0.3 million and 0.1 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. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In millions) 2016 2015 Service cost $ 0.2 $ 0.4 Interest cost 5.2 5.3 Expected return on plan assets (7.9 ) (8.2 ) Net periodic benefit gains $ (2.5 ) $ (2.5 ) Components of post-retirement health care plan benefit costs are as follows: Three Months Ended March 31, (In millions) 2016 2015 Interest cost $ 0.1 $ 0.1 Net periodic benefit costs $ 0.1 $ 0.1 |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 10 — FINANCING ARRANGEMENTS Debt consists of the following instruments: As of March 31, 2016 (In millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Senior term loan due 2022 $ 548.6 $ 8.5 $ 540.1 Revolving credit facility due 2018 47.3 — 47.3 5.25% senior notes due 2023 600.0 8.0 592.0 Other debt 13.5 — 13.5 Total long-term debt $ 1,209.4 16.5 $ 1,192.9 Less current portion 18.6 — 18.6 Total long-term debt, net of current portion $ 1,190.8 $ 16.5 $ 1,174.3 As of December 31, 2015 (In millions) Principal Amount Unamortized discount and debt issuance cost Net debt Senior term loan due 2022 $ 550.0 $ 8.6 $ 541.4 5.25% senior notes due 2023 600.0 8.3 591.7 Other debt 13.5 — 13.5 Total debt $ 1,163.5 $ 16.9 $ 1,146.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Long-term debt $ 1,144.9 $ 16.9 $ 1,128.0 On November 12, 2015, PolyOne entered into a senior secured term loan having an aggregate principal amount of $550.0 million . $5.5 million of the principal amount is payable annually while the remaining balance matures on November 12, 2022. The interest rate associated with the term loan is 300 basis points plus the greater of (i) the 1-, 2-, 3-, or 6-month LIBOR, at the Company's discretion, or (ii) 75 basis points. The weighted average annual interest rate for the senior secured term loan for the three months ended March 31, 2016 was 3.75% . The total aggregate principal repayments as of the three months ended March 31, 2016 was $1.4 million . PolyOne has outstanding $600.0 million aggregate principal amount of senior notes, which mature on March 15, 2023. The senior notes bear an interest rate of 5.25% per year, payable semi-annually, in arrears, on March 15 and September 15 of each year. 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 months ended March 31, 2016 was 3.03% . As of March 31, 2016 , we had $47.3 million of outstanding borrowings and had availability of $329.2 million under this facility. The agreements governing our revolving credit facility and our secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary restrictive covenants that, among other things, limit our ability to: consummate asset sales, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. In addition, these agreements require us to comply with specific financial tests, under which we are required to achieve certain or specific financial and operating results. As of March 31, 2016, we were in compliance with all covenants. 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 March 31, 2016 , letters of credit under the credit line were $0.2 million and borrowings were $12.6 million with an interest rate of 2.07% . The estimated fair value of PolyOne’s debt instruments at March 31, 2016 and December 31, 2015 was $ 1,188.5 million and $ 1,136.2 million , respectively, compared to carrying values of $ 1,192.9 million and $1,146.6 million as of March 31, 2016 and December 31, 2015 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
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) Color, Additives and Inks; (2) Specialty Engineered Materials; (3) Designed Structures and Solutions; (4) Performance Products and Solutions; and (5) PolyOne Distribution. Segment information for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended Three Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Color, Additives and Inks $ 201.2 $ 204.9 $ 34.9 $ 206.0 $ 208.5 $ 33.8 Specialty Engineered Materials 128.4 141.0 23.4 130.6 141.9 23.1 Designed Structures and Solutions 108.1 108.5 0.4 118.7 119.1 3.2 Performance Products and Solutions 145.2 166.2 19.7 155.7 175.9 11.5 PolyOne Distribution 264.1 268.8 17.5 262.1 265.7 15.7 Corporate and eliminations — (42.4 ) (24.6 ) — (38.0 ) (17.2 ) Total $ 847.0 $ 847.0 $ 71.3 $ 873.1 $ 873.1 $ 70.1 Total Assets (In millions) March 31, 2016 December 31, 2015 Color, Additives and Inks $ 956.7 $ 939.5 Specialty Engineered Materials 445.1 353.4 Designed Structures and Solutions 453.7 449.5 Performance Products and Solutions 251.7 237.4 PolyOne Distribution 229.7 200.0 Corporate and eliminations 287.5 415.3 Total assets $ 2,624.4 $ 2,595.1 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 environmental investigation and remediation of certain 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 may also 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 allocation 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 accrual, we will adjust our accrual, 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 approximately 17 miles of the lower Passaic River (the lower Passaic River Study Area). 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 Study Area. The RIFS costs are exclusive of any costs that may ultimately be required to remediate the lower Passaic River Study Area 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 February 2015, the Cooperating Parties submitted to the USEPA a remedial investigation report for the lower Passaic River Study Area. 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 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. The Cooperating Parties are currently revising their RIFS, which has not yet been approved by the USEPA, as part of continuing technical discussions with the USEPA. On March 4, 2016, the USEPA issued a Record of Decision selecting a remedy for an eight -mile portion of the lower Passaic River Study Area at an estimated and discounted cost of $1.4 billion . On March 31, 2016, the USEPA sent a Notice of Potential Liability (the Notice) to over 100 companies, including Franklin-Burlington, and several municipalities for this eight -mile portion. In the Notice, the USEPA states that it expects to negotiate an Administrative Order on Consent for Remedial Design with Occidental Chemical Corporation and, upon signature, plans to negotiate a consent decree with other major PRPs to perform remedial actions. The Notice does not identify the “other major PRPs.” Further, the Notice communicates that the USEPA will provide to certain parties separate notice of the opportunity to discuss a cash-out settlement at a later date. Based on the currently available information, we have found no evidence that Franklin-Burlington contributed any of the primary contaminants of concern to the lower Passaic River. Any allocation to Franklin-Burlington, including a final resolution of our de minimis petition or other opportunity for cash-out settlement, or further appropriate legal actions has not been determined. As a result of these uncertainties, we are unable to estimate a liability, if any, related to this matter. As of March 31, 2016 , we have not accrued for costs of remediation related to the lower Passaic River. During the three months ended March 31, 2016 and 2015 , PolyOne recognized $1.7 million and $1.5 million , respectively, of expense related to environmental remediation activities. During the three months ended March 31, 2015 , we received $0.5 million 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 Consolidated Balance Sheet includes accruals totaling $119.8 million and $119.9 million as of March 31, 2016 and December 31, 2015 , respectively, based on our estimates of probable future environmental expenditures relating to previously contaminated sites. These undiscounted amounts are included in Accrued expenses and other liabilities and Other non-current liabilities on the accompanying Consolidated Balance Sheets. The accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology 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, technology development, 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 March 31, 2016 . However, such additional costs, if any, cannot be currently estimated. Further, we have not recorded receivables for future available insurance recoveries associated with these costs. Guarantee — On February 28, 2011, we sold our 50% equity interest in SunBelt Chlor Alkali Partnership (Sunbelt) to Olin Corporation (Olin). As a result of the sale, Olin assumed our obligations under our guarantee of senior secured notes issued by SunBelt, which are $12.2 million as of March 31, 2016 . 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. The senior secured notes mature in December 2017. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Equity | Note 13 — EQUITY Changes in equity for the three months ended March 31, 2016 and March 31, 2015 are as follows: (In millions) PolyOne Noncontrolling Total Balance at December 31, 2015 $ 704.2 $ 1.0 $ 705.2 Net income 39.1 (0.1 ) 39.0 Other comprehensive income Translation adjustments (0.2 ) — (0.2 ) Total comprehensive income 38.9 (0.1 ) 38.8 Cash dividend declared (9.8 ) — (9.8 ) Repurchase of common shares (39.6 ) — (39.6 ) Share-based incentive plan activity (1.1 ) — (1.1 ) Balance at March 31, 2016 $ 692.6 $ 0.9 $ 693.5 Balance at December 31, 2014 $ 776.3 $ 0.9 $ 777.2 Net income 30.2 — 30.2 Other comprehensive income Translation adjustments (17.9 ) — (17.9 ) Total comprehensive income 12.3 — 12.3 Cash dividend declared (8.9 ) — (8.9 ) Repurchase of common shares (19.6 ) — (19.6 ) Share-based incentive plan activity (1.9 ) — (1.9 ) Balance at March 31, 2015 $ 758.2 $ 0.9 $ 759.1 Changes in accumulated other comprehensive loss year-to-date as of March 31, 2016 and 2015 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, 2016 $ (76.8 ) $ 5.2 $ 0.3 $ (71.3 ) Translation adjustments (0.2 ) — — (0.2 ) Balance at March 31, 2016 $ (77.0 ) $ 5.2 $ 0.3 $ (71.5 ) Balance at January 1, 2015 $ (47.7 ) $ 5.2 $ 0.2 $ (42.3 ) Translation adjustments (17.9 ) — — (17.9 ) Balance at March 31, 2015 $ (65.6 ) $ 5.2 $ 0.2 $ (60.2 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 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 March 2016, the FASB issued Accounting Standards Update 2016-09, " Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting " (ASU 2016-09), which simplifies the the accounting for share-based payment transactions. This update requires that excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than additional paid-in capital. Additionally, the excess tax benefits will be classified along with other income tax cash flows as an operating activity, rather than a financing activity, on the Statement of Cash Flows. Further, the update allows an entity to make a policy election to recognize forfeitures as they occur or estimate the number of awards expected to be forfeited. ASU 2016-09 is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively, with certain cumulative effect adjustments. Early adoption is permitted. We do not expect this standard to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, " Leases (Topic 842) " (ASU 2016-02), which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. The Company will adopt ASU 2016-02 no later than the required date of January 1, 2019. We are currently assessing the impact this standard will have on our Consolidated Financial Statements. In July 2015, the FASB issued Accounting Standards Update 2015-11, " Inventory (Topic 300): Simplifying the Measurement of Inventory " (ASU 2015-11), which applies to inventory measured using first-in, first out (FIFO) or average cost. This update requires 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. We do not expect this standard to have a material impact on our Consolidated Financial Statements. In May 2014, the FASB issued Auditing Standards Update 2014-09, " Revenue from Contracts with Customers " (ASU 2014-09). Under this standard, a company recognizes 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 or services. The standard implements a five-step process for customer contract revenue recognition that focuses on transfer of control. The Company will adopt ASU 2014-09 no later than the required date of January 1, 2018. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact this standard will have on our Consolidated Financial Statements as well as the method by which we will adopt the new standard. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Changes in Carrying Amount of Goodwill by Operating Segment | Goodwill as of March 31, 2016 and December 31, 2015 , and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Color, Designed Structures and Solutions Performance PolyOne Total Balance December 31, 2014 $ 99.4 $ 333.7 $ 144.7 $ 11.2 $ 1.6 $ 590.6 Acquisitions of businesses — 8.6 — — — 8.6 Currency translation and other adjustments (1.4 ) (0.1 ) — — — (1.5 ) Balance December 31, 2015 $ 98.0 $ 342.2 $ 144.7 $ 11.2 $ 1.6 $ 597.7 Acquisitions of businesses 36.9 — — — — 36.9 Currency translation and other adjustments 0.2 — — — — 0.2 Balance March 31, 2016 $ 135.1 $ 342.2 $ 144.7 $ 11.2 $ 1.6 $ 634.8 |
Schedule of Finite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of March 31, 2016 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 202.0 $ (44.6 ) $ — $ 157.4 Patents, technology and other 148.2 (48.6 ) (0.2 ) 99.4 Indefinite-lived trade names 96.3 — — 96.3 Total $ 446.5 $ (93.2 ) $ (0.2 ) $ 353.1 As of December 31, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 199.4 $ (42.1 ) $ — $ 157.3 Patents, technology and other 137.0 (45.7 ) (0.3 ) 91.0 Indefinite-lived trade names 96.3 — — 96.3 Total $ 432.7 $ (87.8 ) $ (0.3 ) $ 344.6 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of March 31, 2016 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 202.0 $ (44.6 ) $ — $ 157.4 Patents, technology and other 148.2 (48.6 ) (0.2 ) 99.4 Indefinite-lived trade names 96.3 — — 96.3 Total $ 446.5 $ (93.2 ) $ (0.2 ) $ 353.1 As of December 31, 2015 (In millions) Acquisition Accumulated Currency Net Customer relationships $ 199.4 $ (42.1 ) $ — $ 157.3 Patents, technology and other 137.0 (45.7 ) (0.3 ) 91.0 Indefinite-lived trade names 96.3 — — 96.3 Total $ 432.7 $ (87.8 ) $ (0.3 ) $ 344.6 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Components of Inventories, net are as follows: (In millions) March 31, 2016 December 31, 2015 Finished products $ 202.7 $ 172.7 Work in process 6.4 5.0 Raw materials and supplies 114.4 109.3 Inventories, net $ 323.5 $ 287.0 |
Property, Net (Tables)
Property, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Net | Components of Property, net are as follows: (In millions) March 31, 2016 December 31, 2015 Land $ 47.1 $ 46.9 Buildings 321.0 318.3 Machinery and equipment 1,120.9 1,104.7 Property, gross 1,489.0 1,469.9 Less accumulated depreciation and amortization (909.1 ) (886.4 ) Property, net $ 579.9 $ 583.5 |
Weighted-Average Shares Used 23
Weighted-Average Shares Used In Computing Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Shares Used in Computing Earnings Per Share | Three Months Ended March 31, (In millions) 2016 2015 Weighted-average common shares outstanding – basic 84.7 89.2 Plus dilutive impact of share-based compensation 0.8 0.9 Weighted-average common shares – diluted 85.5 90.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plan | |
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 March 31, (In millions) 2016 2015 Service cost $ 0.2 $ 0.4 Interest cost 5.2 5.3 Expected return on plan assets (7.9 ) (8.2 ) Net periodic benefit gains $ (2.5 ) $ (2.5 ) |
Postretirement Health Care Plan Benefit | |
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 March 31, (In millions) 2016 2015 Interest cost $ 0.1 $ 0.1 Net periodic benefit costs $ 0.1 $ 0.1 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Debt | Debt consists of the following instruments: As of March 31, 2016 (In millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Senior term loan due 2022 $ 548.6 $ 8.5 $ 540.1 Revolving credit facility due 2018 47.3 — 47.3 5.25% senior notes due 2023 600.0 8.0 592.0 Other debt 13.5 — 13.5 Total long-term debt $ 1,209.4 16.5 $ 1,192.9 Less current portion 18.6 — 18.6 Total long-term debt, net of current portion $ 1,190.8 $ 16.5 $ 1,174.3 As of December 31, 2015 (In millions) Principal Amount Unamortized discount and debt issuance cost Net debt Senior term loan due 2022 $ 550.0 $ 8.6 $ 541.4 5.25% senior notes due 2023 600.0 8.3 591.7 Other debt 13.5 — 13.5 Total debt $ 1,163.5 $ 16.9 $ 1,146.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Long-term debt $ 1,144.9 $ 16.9 $ 1,128.0 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended Three Months Ended (In millions) Sales to Total Operating Sales to Total Sales Operating Color, Additives and Inks $ 201.2 $ 204.9 $ 34.9 $ 206.0 $ 208.5 $ 33.8 Specialty Engineered Materials 128.4 141.0 23.4 130.6 141.9 23.1 Designed Structures and Solutions 108.1 108.5 0.4 118.7 119.1 3.2 Performance Products and Solutions 145.2 166.2 19.7 155.7 175.9 11.5 PolyOne Distribution 264.1 268.8 17.5 262.1 265.7 15.7 Corporate and eliminations — (42.4 ) (24.6 ) — (38.0 ) (17.2 ) Total $ 847.0 $ 847.0 $ 71.3 $ 873.1 $ 873.1 $ 70.1 Total Assets (In millions) March 31, 2016 December 31, 2015 Color, Additives and Inks $ 956.7 $ 939.5 Specialty Engineered Materials 445.1 353.4 Designed Structures and Solutions 453.7 449.5 Performance Products and Solutions 251.7 237.4 PolyOne Distribution 229.7 200.0 Corporate and eliminations 287.5 415.3 Total assets $ 2,624.4 $ 2,595.1 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Changes In Equity | Changes in equity for the three months ended March 31, 2016 and March 31, 2015 are as follows: (In millions) PolyOne Noncontrolling Total Balance at December 31, 2015 $ 704.2 $ 1.0 $ 705.2 Net income 39.1 (0.1 ) 39.0 Other comprehensive income Translation adjustments (0.2 ) — (0.2 ) Total comprehensive income 38.9 (0.1 ) 38.8 Cash dividend declared (9.8 ) — (9.8 ) Repurchase of common shares (39.6 ) — (39.6 ) Share-based incentive plan activity (1.1 ) — (1.1 ) Balance at March 31, 2016 $ 692.6 $ 0.9 $ 693.5 Balance at December 31, 2014 $ 776.3 $ 0.9 $ 777.2 Net income 30.2 — 30.2 Other comprehensive income Translation adjustments (17.9 ) — (17.9 ) Total comprehensive income 12.3 — 12.3 Cash dividend declared (8.9 ) — (8.9 ) Repurchase of common shares (19.6 ) — (19.6 ) Share-based incentive plan activity (1.9 ) — (1.9 ) Balance at March 31, 2015 $ 758.2 $ 0.9 $ 759.1 |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss year-to-date as of March 31, 2016 and 2015 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, 2016 $ (76.8 ) $ 5.2 $ 0.3 $ (71.3 ) Translation adjustments (0.2 ) — — (0.2 ) Balance at March 31, 2016 $ (77.0 ) $ 5.2 $ 0.3 $ (71.5 ) Balance at January 1, 2015 $ (47.7 ) $ 5.2 $ 0.2 $ (42.3 ) Translation adjustments (17.9 ) — — (17.9 ) Balance at March 31, 2015 $ (65.6 ) $ 5.2 $ 0.2 $ (60.2 ) |
Business Combinations Narrative
Business Combinations Narrative (Details) - USD ($) $ in Millions | Jan. 29, 2016 | Dec. 09, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 634.8 | $ 597.7 | $ 590.6 | |||
Business acquisitions | $ 72.8 | $ 0 | ||||
Magenta | ||||||
Business Acquisition [Line Items] | ||||||
Payment to acquire business, net of cash acquired | $ 18.1 | |||||
Goodwill | $ 6.6 | |||||
Kraton | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions | $ 72.8 | |||||
Goodwill acquired | 36.9 | |||||
Intangible assets acquired | $ 13.8 | |||||
Kraton | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired, amortization period | 7 years | |||||
Kraton | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired, amortization period | 10 years |
Goodwill And Intangible Asset29
Goodwill And Intangible Assets (Goodwill And Changes In Carrying Amount Of Goodwill By Operating Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 597.7 | $ 590.6 |
Acquisitions of businesses | 36.9 | 8.6 |
Currency translation and other adjustments | 0.2 | (1.5) |
Balance, end of period | 634.8 | 597.7 |
Specialty Engineered Materials | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 98 | 99.4 |
Acquisitions of businesses | 36.9 | 0 |
Currency translation and other adjustments | 0.2 | (1.4) |
Balance, end of period | 135.1 | 98 |
Color, Additives and Inks | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 342.2 | 333.7 |
Acquisitions of businesses | 0 | 8.6 |
Currency translation and other adjustments | 0 | (0.1) |
Balance, end of period | 342.2 | 342.2 |
Designed Structures and Solutions | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 144.7 | 144.7 |
Acquisitions of businesses | 0 | 0 |
Currency translation and other adjustments | 0 | 0 |
Balance, end of period | 144.7 | 144.7 |
Performance Products and Solutions | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 11.2 | 11.2 |
Acquisitions of businesses | 0 | 0 |
Currency translation and other adjustments | 0 | 0 |
Balance, end of period | 11.2 | 11.2 |
PolyOne Distribution | ||
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 Asset30
Goodwill And Intangible Assets (Schedule Of Indefinite And Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | $ 446.5 | $ 432.7 |
Accumulated Amortization | (93.2) | (87.8) |
Currency Translation | (0.2) | (0.3) |
Net | 353.1 | 344.6 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 96.3 | 96.3 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 202 | 199.4 |
Accumulated Amortization | (44.6) | (42.1) |
Currency Translation | 0 | 0 |
Net | 157.4 | 157.3 |
Patents, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 148.2 | 137 |
Accumulated Amortization | (48.6) | (45.7) |
Currency Translation | (0.2) | (0.3) |
Net | $ 99.4 | $ 91 |
Employee Separation And Restr31
Employee Separation And Restructuring Costs - Narrative (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015facility | Mar. 31, 2016USD ($) | Dec. 31, 2013officefacility | |
Restructuring Cost and Reserve [Line Items] | |||||
Charged to expense | $ 7,100,000 | $ 10,600,000 | |||
Accelerated depreciation costs | 2,800,000 | 100,000 | |||
Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charged to expense | 4,400,000 | 2,700,000 | |||
Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charged to expense | 2,700,000 | 7,900,000 | |||
DSS Manufacturing Facility Closure | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed | facility | 2 | ||||
Charged to expense | 5,100,000 | $ 22,200,000 | |||
Severance costs | 8,300,000 | ||||
Accelerated depreciation costs | 8,600,000 | ||||
Other associated restructuring costs | 1,200,000 | ||||
Expected remaining costs | 5,000,000 | 5,000,000 | |||
DSS Manufacturing Facility Closure | Asset and Deprecation Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charged to expense | $ 12,700,000 | ||||
Spartech | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed | facility | 7 | ||||
Charged to expense | $ 0 | $ 9,300,000 | |||
Spartech | Administrative Office Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities closed | office | 1 |
Inventories, Net (Components Of
Inventories, Net (Components Of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 202.7 | $ 172.7 |
Work in process | 6.4 | 5 |
Raw materials and supplies | 114.4 | 109.3 |
Inventories, net | $ 323.5 | $ 287 |
Property, Net (Details)
Property, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, gross | $ 1,489 | $ 1,469.9 | |
Less accumulated depreciation and amortization | (909.1) | (886.4) | |
Property, net | 579.9 | 583.5 | |
Depreciation expense | 21.7 | $ 20.2 | |
Accelerated depreciation costs | 2.8 | $ 0.1 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | 47.1 | 46.9 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | 321 | 318.3 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, gross | $ 1,120.9 | $ 1,104.7 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 31.60% | 43.30% | |
Federal statutory rate | 35.00% | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Decrease in effective tax rate | 11.70% | ||
Negative impact on effective tax rate | 15.30% |
Weighted-Average Shares Used 35
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted-average common shares outstanding - basic (in shares) | 84.7 | 89.2 |
Plus dilutive impact of share-based compensation (in shares) | 0.8 | 0.9 |
Weighted-average common shares - diluted (in shares) | 85.5 | 90.1 |
Weighted-Average Shares Used 36
Weighted-Average Shares Used In Computing Earnings Per Common Share Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Equity-based awards excluded (in shares) | 0.3 | 0.1 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Net Period Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.2 | $ 0.4 |
Interest cost | 5.2 | 5.3 |
Expected return on plan assets | (7.9) | (8.2) |
Net periodic benefit gains | (2.5) | (2.5) |
Postretirement Health Care Plan Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.1 | 0.1 |
Net periodic benefit gains | $ 0.1 | $ 0.1 |
Financing Arrangements (Compone
Financing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, Principal Amount | $ 1,209.4 | $ 1,163.5 |
Long-term debt, Unamortized discount and debt issuance cost | 16.5 | 16.9 |
Total long-term debt | 1,192.9 | 1,146.6 |
Less current portion, Principal Amount | 18.6 | 18.6 |
Less current portion, Unamortized discount and debt issuance cost | 0 | 0 |
Less current portion | 18.6 | 18.6 |
Total long-term debt, net of current portion, Principal Amount | 1,190.8 | 1,144.9 |
Total long-term debt, net of current portion, Unamortized discount and debt issuance cost | 16.5 | 16.9 |
Total long-term debt, net of current portion | 1,174.3 | 1,128 |
Senior term loan due 2022 | Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal Amount | 548.6 | 550 |
Long-term debt, Unamortized discount and debt issuance cost | 8.5 | 8.6 |
Total long-term debt | 540.1 | 541.4 |
Revolving credit facility due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal Amount | 47.3 | |
Long-term debt, Unamortized discount and debt issuance cost | 0 | |
Total long-term debt | 47.3 | |
5.25% senior notes due 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal Amount | 600 | 600 |
Long-term debt, Unamortized discount and debt issuance cost | 8 | 8.3 |
Total long-term debt | $ 592 | $ 591.7 |
Interest rate of senior notes due 2023 | 5.25% | 5.25% |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, Principal Amount | $ 13.5 | $ 13.5 |
Long-term debt, Unamortized discount and debt issuance cost | 0 | 0 |
Total long-term debt | $ 13.5 | $ 13.5 |
Financing Arrangements Narrativ
Financing Arrangements Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Nov. 12, 2015 | |
Debt Instrument [Line Items] | ||||
Total aggregate principal repayments | $ 1,400,000 | $ 0 | ||
Outstanding borrowings | 1,209,400,000 | $ 1,163,500,000 | ||
Fair value of debt instruments | 1,188,500,000 | 1,136,200,000 | ||
Amount of long-term debt | 1,192,900,000 | 1,146,600,000 | ||
Saudi Hollandi Bank | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 12,600,000 | |||
Line of credit interest rate | 2.07% | |||
Saudi Hollandi Bank | SAIBOR | ||||
Debt Instrument [Line Items] | ||||
Fixed rate on line of credit | 0.85% | |||
Saudi Hollandi Bank | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing facility size | $ 16,000,000 | |||
Outstanding letters of credit | $ 200,000 | |||
Senior term loan due 2022 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 550,000,000 | |||
Annual principal payment | $ 5,500,000 | |||
Weighted average annual interest rate | 3.75% | |||
Total aggregate principal repayments | $ 1,400,000 | |||
Senior term loan due 2022 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.00% | |||
Senior term loan due 2022 | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.75% | |||
5.25% senior notes due 2023 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 600,000,000 | $ 600,000,000 | ||
Stated interest rate | 5.25% | 5.25% | ||
Amount of long-term debt | $ 592,000,000 | $ 591,700,000 | ||
Senior Notes due 2023 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.25% | |||
Revolving credit facility due 2018 | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 47,300,000 | |||
Amount of long-term debt | 47,300,000 | |||
Revolving credit facility due 2018 | Canadian Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Canadian line of credit outstanding | $ 0 | |||
Revolving credit facility due 2018 | US Line of Credit | Federal Funds Effective Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Fixed rate on line of credit | 0.50% | |||
Revolving credit facility due 2018 | US Line of Credit | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Fixed rate on line of credit | 1.00% | |||
Revolving credit facility due 2018 | Various Banks | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average annual interest rate | 3.03% | |||
Maximum borrowing facility size | $ 400,000,000 | |||
Potential maximum borrowing capacity | 450,000,000 | |||
Current borrowing availability | $ 329,200,000 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Information) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 5 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 847 | $ 873.1 | |
Operating Income | 71.3 | 70.1 | |
Assets | 2,624.4 | $ 2,595.1 | |
Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 201.2 | 206 | |
Operating Income | 34.9 | 33.8 | |
Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 128.4 | 130.6 | |
Operating Income | 23.4 | 23.1 | |
Designed Structures and Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 108.1 | 118.7 | |
Operating Income | 0.4 | 3.2 | |
Performance Products and Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 145.2 | 155.7 | |
Operating Income | 19.7 | 11.5 | |
PolyOne Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 264.1 | 262.1 | |
Operating Income | 17.5 | 15.7 | |
Operating Segments | Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 204.9 | 208.5 | |
Assets | 956.7 | 939.5 | |
Operating Segments | Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 141 | 141.9 | |
Assets | 445.1 | 353.4 | |
Operating Segments | Designed Structures and Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 108.5 | 119.1 | |
Assets | 453.7 | 449.5 | |
Operating Segments | Performance Products and Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 166.2 | 175.9 | |
Assets | 251.7 | 237.4 | |
Operating Segments | PolyOne Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 268.8 | 265.7 | |
Assets | 229.7 | 200 | |
Corporate and eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | (42.4) | (38) | |
Operating Income | (24.6) | $ (17.2) | |
Assets | $ 287.5 | $ 415.3 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Mar. 31, 2016USD ($)companymi | Mar. 04, 2016USD ($)mi | Mar. 13, 2013companymi | Feb. 28, 2011 | Mar. 31, 2015entityparty | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||
Accrued probable future environmental expenditures | $ 119.8 | $ 119.8 | $ 119.9 | |||||
Sunbelt | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interest sold, percentage | 50.00% | |||||||
Guarantee assumed by acquirer | $ 12.2 | 12.2 | ||||||
Cost of Sales | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Expense related to environmental activities | $ 1.7 | $ 1.5 | ||||||
Proceeds from insurance recoveries | $ 0.5 | |||||||
Contamination of Passaic River Study Area | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Approximate number of other companies assuming responsibility | company | 70 | |||||||
Number of other potentially responsible parties that submitted a de minimis settlement petition | party | 9 | |||||||
Contamination of Passaic River Study Area | Lower Passaic River | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Length of portion of river | mi | 8 | 8 | 17 | |||||
Number of entities contributing little or no impact to lower passaic river | entity | 10 | |||||||
Total estimated cost of remedy | $ 1,400 | |||||||
Number of companies receiving Notice of Potential Liability (more than) | company | 100 |
Equity - Schedule of Changes in
Equity - Schedule of Changes in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in Equity [Rollforward] | ||
Balance at beginning of period | $ 705.2 | $ 777.2 |
Net income | 39 | 30.2 |
Other comprehensive income | ||
Translation adjustments | (0.2) | (17.9) |
Total comprehensive income | 38.8 | 12.3 |
Cash dividend declared | (9.8) | (8.9) |
Repurchase of common shares | (39.6) | (19.6) |
Share-based incentive plan activity | (1.1) | (1.9) |
Balance at end of period | 693.5 | 759.1 |
PolyOne Shareholders' Equity | ||
Changes in Equity [Rollforward] | ||
Balance at beginning of period | 704.2 | 776.3 |
Net income | 39.1 | 30.2 |
Other comprehensive income | ||
Translation adjustments | (0.2) | (17.9) |
Total comprehensive income | 38.9 | 12.3 |
Cash dividend declared | (9.8) | (8.9) |
Repurchase of common shares | (39.6) | (19.6) |
Share-based incentive plan activity | (1.1) | (1.9) |
Balance at end of period | 692.6 | 758.2 |
Noncontrolling Interests | ||
Changes in Equity [Rollforward] | ||
Balance at beginning of period | 1 | 0.9 |
Net income | (0.1) | 0 |
Other comprehensive income | ||
Translation adjustments | 0 | 0 |
Total comprehensive income | (0.1) | 0 |
Cash dividend declared | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Share-based incentive plan activity | 0 | 0 |
Balance at end of period | $ 0.9 | $ 0.9 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ (71.3) | $ (42.3) |
Translation adjustments | (0.2) | (17.9) |
Balance at end of period | (71.5) | (60.2) |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (76.8) | (47.7) |
Translation adjustments | (0.2) | (17.9) |
Balance at end of period | (77) | (65.6) |
Pension and Other Post-Retirement Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 5.2 | 5.2 |
Translation adjustments | 0 | 0 |
Balance at end of period | 5.2 | 5.2 |
Unrealized Gain in Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0.3 | 0.2 |
Translation adjustments | 0 | 0 |
Balance at end of period | $ 0.3 | $ 0.2 |