Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Neenah Paper Inc | ' | ' |
Entity Central Index Key | '0001296435 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $509,000,000 |
Entity Common Stock, Shares Outstanding | ' | 16,375,000 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Net sales | $844.50 | $808.80 | $696 |
Cost of products sold | 678.9 | 649.7 | 570.6 |
Gross profit | 165.6 | 159.1 | 125.4 |
Selling, general and administrative expenses | 79.4 | 77.4 | 68.2 |
Integration/restructuring costs | 0.6 | 5.8 | ' |
SERP settlement charge | 0.2 | 3.5 | ' |
Loss on early retirement of debt | 0.5 | 0.6 | 2.4 |
Other (income) expense - net | 1.1 | 1.4 | -1.8 |
Operating income | 83.8 | 70.4 | 56.6 |
Interest expense | 11.2 | 13.5 | 15.6 |
Interest income | -0.2 | -0.1 | -0.3 |
Income from continuing operations before income taxes | 72.8 | 57 | 41.3 |
Provision for income taxes | 23.4 | 17.1 | 12 |
Income from continuing operations | 49.4 | 39.9 | 29.3 |
Income (loss) from discontinued operations, net of taxes (Note 12) | 2.6 | 4.4 | -0.2 |
Net income | $52 | $44.30 | $29.10 |
Basic | ' | ' | ' |
Continuing operations (in dollars per share) | $3.02 | $2.46 | $1.91 |
Discontinued operations (in dollars per share) | $0.16 | $0.27 | ($0.01) |
Total Basic (in dollars per share) | $3.18 | $2.73 | $1.90 |
Diluted | ' | ' | ' |
Continuing operations (in dollars per share) | $2.96 | $2.41 | $1.82 |
Discontinued operations (in dollars per share) | $0.16 | $0.27 | ($0.01) |
Total Diluted (in dollars per share) | $3.12 | $2.68 | $1.81 |
Weighted Average Common Shares Outstanding (in thousands) | ' | ' | ' |
Basic (in shares) | 16,072 | 15,752 | 14,974 |
Diluted (in shares) | 16,403 | 16,072 | 15,649 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $52 | $44.30 | $29.10 |
Reclassification of amounts recognized in the consolidated statement of operations: | ' | ' | ' |
Amortization of adjustments to pension and other postretirement benefit liabilities | 6.5 | 5.1 | 2.5 |
SERP settlement charge | 0.2 | 3.5 | ' |
Curtailment loss | ' | 0.3 | ' |
Unrealized gain (loss) on "available-for-sale" securities | -0.1 | 0.1 | ' |
Amounts recognized in the consolidated statement of operations | 6.6 | 9 | 2.5 |
Unrealized foreign currency translation gain (loss) | 8.7 | 4.4 | -5 |
Net gain (loss) from pension and other postretirement benefit liabilities | 15.8 | -31.2 | -29.9 |
Gain (loss) from other comprehensive income items before income taxes | 31.1 | -17.8 | -32.4 |
Provision (benefit) for income taxes | 8.6 | -7.7 | -10.2 |
Other comprehensive income (loss) | 22.5 | -10.1 | -22.2 |
Comprehensive income | $74.50 | $34.20 | $6.90 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $73.40 | $7.80 |
Accounts receivable, net | 90.5 | 79.6 |
Inventories | 101.1 | 102.9 |
Income taxes receivable | 0.6 | 2.5 |
Deferred income taxes | 22.8 | 27.2 |
Prepaid and other current assets | 17 | 14.1 |
Total Current Assets | 305.4 | 234.1 |
Property, Plant and Equipment - net | 261.7 | 254.8 |
Deferred Income Taxes | 13.3 | 35.3 |
Goodwill (Note 4) | 43.1 | 41.4 |
Intangible Assets - net (Note 4) | 38.5 | 34 |
Other Assets | 13.9 | 11.1 |
TOTAL ASSETS | 675.9 | 610.7 |
Current Liabilities | ' | ' |
Debt payable within one year | 21.4 | 4.7 |
Accounts payable | 36.4 | 35.1 |
Accrued expenses | 45.8 | 47.6 |
Total Current Liabilities | 103.6 | 87.4 |
Long-Term Debt | 190.5 | 177.6 |
Deferred Income Taxes | 15.6 | 12.5 |
Noncurrent Employee Benefits | 97.7 | 131.1 |
Other Noncurrent Obligations | 1 | 4.3 |
TOTAL LIABILITIES | 408.4 | 412.9 |
Commitments and Contingencies (Notes 10 and 11) | ' | ' |
Stockholders' Equity | ' | ' |
Common stock, par value $0.01 - authorized: 100,000,000 shares; issued and outstanding: 17,383,000 shares and 16,826,000 shares | 0.2 | 0.2 |
Treasury stock, at cost: 1,022,000 shares and 911,000 shares | -27.2 | -22.6 |
Additional paid-in capital | 285.2 | 273.9 |
Retained earnings/accumulated deficit | 36.6 | -3.9 |
Accumulated other comprehensive loss | -27.3 | -49.8 |
Total Stockholders' Equity | 267.5 | 197.8 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $675.90 | $610.70 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 17,383,000 | 16,826,000 |
Common stock, outstanding shares | 17,383,000 | 16,826,000 |
Treasury stock, shares | 1,022,000 | 911,000 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/Accumulated Deficit | Accumulated Other Comprehensive Income |
In Millions, except Share data in Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | ' | $0.10 | ($10.40) | $249 | ($62) | ($17.50) |
Balance (in shares) at Dec. 31, 2010 | ' | 15,237 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 29.1 | ' | ' | ' | 29.1 | ' |
Other comprehensive income (loss), net of income taxes | -22.2 | ' | ' | ' | ' | -22.2 |
Dividends declared | -6.7 | ' | ' | 0.8 | -7.5 | ' |
Excess tax benefits from stock-based compensation | 1 | ' | ' | 1 | ' | ' |
Stock options exercised | 2.5 | ' | ' | 2.5 | ' | ' |
Stock options exercised (in shares) | ' | 268 | ' | ' | ' | ' |
Restricted stock vesting (Note 9) | -0.5 | ' | -0.5 | ' | ' | ' |
Restricted stock vesting (in shares) | ' | 89 | ' | ' | ' | ' |
Stock-based compensation | 4.3 | ' | ' | 4.3 | ' | ' |
Balance at Dec. 31, 2011 | 166.7 | 0.1 | -10.9 | 257.6 | -40.4 | -39.7 |
Balance (in shares) at Dec. 31, 2011 | ' | 15,594 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 44.3 | ' | ' | ' | 44.3 | ' |
Other comprehensive income (loss), net of income taxes | -10.1 | ' | ' | ' | ' | -10.1 |
Dividends declared | -7.8 | ' | ' | ' | -7.8 | ' |
Excess tax benefits from stock-based compensation | 6.1 | ' | ' | 6.1 | ' | ' |
Shares purchased (Note 9) | -4.1 | ' | -4.1 | ' | ' | ' |
Stock options exercised | 5.3 | ' | ' | 5.3 | ' | ' |
Stock options exercised (in shares) | ' | 371 | ' | ' | ' | ' |
Restricted stock vesting (Note 9) | -7.5 | 0.1 | -7.6 | ' | ' | ' |
Restricted stock vesting (in shares) | ' | 861 | ' | ' | ' | ' |
Stock-based compensation | 4.9 | ' | ' | 4.9 | ' | ' |
Balance at Dec. 31, 2012 | 197.8 | 0.2 | -22.6 | 273.9 | -3.9 | -49.8 |
Balance (in shares) at Dec. 31, 2012 | ' | 16,826 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 52 | ' | ' | ' | 52 | ' |
Other comprehensive income (loss), net of income taxes | 22.5 | ' | ' | ' | ' | 22.5 |
Dividends declared | -11.5 | ' | ' | -0.1 | -11.5 | ' |
Excess tax benefits from stock-based compensation | 2.6 | ' | ' | 2.6 | ' | ' |
Stock options exercised | 3.1 | ' | -0.6 | 3.7 | ' | ' |
Stock options exercised (in shares) | ' | 336 | ' | ' | ' | ' |
Restricted stock vesting (Note 9) | -4 | ' | -4 | ' | ' | ' |
Restricted stock vesting (in shares) | ' | 221 | ' | ' | ' | ' |
Stock-based compensation | 4.9 | ' | ' | 4.9 | ' | ' |
Balance at Dec. 31, 2013 | $267.50 | $0.20 | ($27.20) | $285.20 | $36.60 | ($27.30) |
Balance (in shares) at Dec. 31, 2013 | ' | 17,383 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $52 | $44.30 | $29.10 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 29.4 | 28.8 | 31 |
Stock-based compensation | 4.9 | 4.9 | 4.3 |
Excess tax benefit from stock-based compensation (Note 8) | -2.6 | -6.1 | -1 |
Deferred income tax provision | 19.3 | 10.7 | 7.4 |
Non-cash effects of changes in liabilities for uncertain income tax positions | -0.1 | -3.9 | ' |
Loss on early retirement of debt | 0.5 | 0.6 | 2.4 |
Inventory acquired in acquisitions (Note 3) | -1.8 | -6.6 | ' |
SERP payment, net of settlement charge | -0.2 | -3.4 | ' |
Loss on asset dispositions | 0.5 | 0.1 | 0.1 |
Net cash used in changes in operating working capital (Note 14) | -6.6 | -20.9 | -7.2 |
Pension and other post-employment benefits | -11.5 | -7.3 | -7.7 |
Other | -0.3 | -1.1 | -1.2 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 83.5 | 40.1 | 57.2 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -28.7 | -25.1 | -23.1 |
Decrease (increase) in restricted cash | ' | 7 | -7 |
Sales (purchases) of marketable securities | -0.1 | -0.1 | 1.2 |
Purchase of brands (Note 3) | -5.2 | -14.1 | ' |
Proceeds from sale of property, plant and equipment | 0.6 | ' | ' |
Other | 0.1 | ' | ' |
NET CASH USED IN INVESTING ACTIVITIES | -33.3 | -32.3 | -28.9 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from issuance of long-term debt | 218.8 | 111.9 | 30.3 |
Debt issuance costs | -3.5 | ' | ' |
Repayments of long-term debt | -209.2 | -96 | -98.7 |
Short-term borrowings | 19.3 | 1.2 | 16.4 |
Repayments of short-term borrowings | -0.2 | -21.1 | -7.8 |
Proceeds from exercise of stock options | 3.7 | 5.3 | 2.6 |
Excess tax benefit from stock-based compensation (Note 8) | 2.6 | 6.1 | 1 |
Cash dividends paid | -11.4 | -7.8 | -6.7 |
Shares purchased (Note 9) | -4.6 | -11.7 | -0.5 |
Other | -0.5 | -0.9 | -0.4 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 15 | -13 | -63.8 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0.4 | 0.2 | ' |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 65.6 | -5 | -35.5 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 7.8 | 12.8 | 48.3 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $73.40 | $7.80 | $12.80 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Background and Basis of Presentation | ' |
Background and Basis of Presentation | ' |
Note 1. Background and Basis of Presentation | |
Background | |
Neenah Paper, Inc. ("Neenah" or the "Company"), is a Delaware corporation incorporated in April 2004. The Company has two primary operations: its technical products business and its fine paper business. | |
The technical products business is an international producer of transportation and other filter media and durable, saturated and coated substrates for industrial products backings and a variety of other end markets. The fine paper business is a supplier of premium writing, text and cover papers, bright papers and specialty papers primarily in North America. The Company's premium writing, text and cover papers, and specialty papers are used in commercial printing and imaging applications for corporate identity packages, invitations, personal stationery and high-end advertising, as well as premium labels and luxury packaging. | |
On January 31, 2013, the Company purchased certain premium business paper brands and other assets from the Southworth Company ("Southworth") for a payment of $7.0 million. See Note 3, "Acquisitions." | |
On January 31, 2012, the Company purchased certain premium paper brands and other assets from Wausau Paper Mills, LLC, a subsidiary of Wausau Paper Corp. ("Wausau") for approximately $21 million. See Note 3, "Acquisitions." | |
In June 2008, the Company's wholly owned subsidiary, Neenah Paper Company of Canada ("Neenah Canada") sold its pulp mill in Pictou, Nova Scotia (the "Pictou Mill") to Northern Pulp Nova Scotia Corporation ("Northern Pulp"), a new operating company jointly owned by Atlas Holdings LLC ("Atlas") and Blue Wolf Capital Management LLC. In March 2010, Neenah Canada sold approximately 475,000 acres of woodland assets in Nova Scotia (the "Woodlands") to Northern Timber Nova Scotia Corporation, an affiliate of Northern Pulp. The sale of the Woodlands resulted in the substantially complete liquidation of the Company's investment in Neenah Canada. For the years ended December 31, 2013, 2012 and 2011, the results of operations of the Pictou Mill and the Woodlands are reported as discontinued operations. See Note 12, "Discontinued Operations." | |
Basis of Presentation | |
The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||
Note 2. Summary of Significant Accounting Policies | ||||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, pension and postretirement benefits, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, future cash flows associated with impairment testing for tangible and intangible long-lived assets, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. | ||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||
The Company recognizes sales revenue when all of the following have occurred: (1) delivery has occurred, (2) persuasive evidence of an agreement exists, (3) pricing is fixed or determinable, and (4) collection is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership. The timing of revenue recognition is largely dependent on shipping terms. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. | ||||||||||||||||||||||||||
The Company's businesses manage seasonal peaks in inventory demand by providing certain customers with finished goods inventory on consignment. The Company accounts for such inventory as finished goods until title to the inventory is transferred and the customer assumes the risks and rewards of ownership at which time the Company recognizes sales revenue. | ||||||||||||||||||||||||||
Earnings per Share ("EPS") | ||||||||||||||||||||||||||
The Company computes basic earnings per share ("EPS") in accordance with Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share ("ASC Topic 260"). In accordance with ASC Topic 260, share-based awards with non-forfeitable dividends are classified as participating securities. In calculating basic earnings per share, this method requires net income to be reduced by the amount of dividends declared in the current period for each participating security and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period. Undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed. Holders of restricted stock and restricted stock units ("RSUs") have contractual participation rights that are equivalent to those of common stockholders. Therefore, the Company allocates undistributed earnings to restricted stock, RSUs and common stockholders based on their respective ownership percentage, as of the end of the period. | ||||||||||||||||||||||||||
ASC Topic 260 also requires companies with participating securities to calculate diluted earnings per share using the "Two Class" method. The "Two Class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lowest diluted earnings per share amount under the two calculations subject to the anti-dilution provisions of ASC Topic 260. | ||||||||||||||||||||||||||
Diluted EPS was calculated to give effect to all potentially dilutive non-participating common share equivalents using the "Treasury Stock" method. Outstanding stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Units") represent the only potentially dilutive non-participating security effects on the Company's weighted-average shares. For the years ended December 31, 2013, 2012 and 2011, approximately 450,000, 1,015,000 and 1,365,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the period the options were outstanding. | ||||||||||||||||||||||||||
The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): | ||||||||||||||||||||||||||
Earnings per basic common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.2 | ) | (0.7 | ) | ||||||||||||||||||||
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Income from continuing operations available to common stockholders | 48.6 | 38.7 | 28.6 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
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Net income available to common stockholders | $ | 51.2 | $ | 43 | $ | 28.4 | ||||||||||||||||||||
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Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
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Basic earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 3.02 | $ | 2.46 | $ | 1.91 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
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$ | 3.18 | $ | 2.73 | $ | 1.9 | |||||||||||||||||||||
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Earnings per diluted common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.1 | ) | (0.8 | ) | ||||||||||||||||||||
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Income from continuing operations available to common stockholders | 48.6 | 38.8 | 28.5 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
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Net income available to common stockholders | $ | 51.2 | $ | 43.1 | $ | 28.3 | ||||||||||||||||||||
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Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
Add: Assumed incremental shares under stock-based compensation plans | 331 | 320 | 675 | |||||||||||||||||||||||
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Weighted average diluted shares | 16,403 | 16,072 | 15,649 | |||||||||||||||||||||||
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Earnings Per Common Share | ||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 2.96 | $ | 2.41 | $ | 1.82 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
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$ | 3.12 | $ | 2.68 | $ | 1.81 | |||||||||||||||||||||
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Cash and Cash Equivalents | ||||||||||||||||||||||||||
Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2013 and 2012, $0.5 million and $0.7 million, respectively, of the Company's cash and cash equivalent is restricted to the payment of postretirement benefits for certain former Fox River executives. | ||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||
U.S. inventories are valued at the lower of cost, using the Last-In, First-Out (LIFO) method for financial reporting purposes, or market. German inventories are valued at the lower of cost, using a weighted-average cost method, or market. Cost includes labor, materials and production overhead. | ||||||||||||||||||||||||||
Foreign Currency | ||||||||||||||||||||||||||
Balance sheet accounts of Neenah Germany and Neenah Canada are translated from Euros and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany and Canada are recorded as unrealized foreign currency translation adjustments within accumulated other comprehensive income (loss) in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in other (income) expense — net in the consolidated statements of operations. | ||||||||||||||||||||||||||
Property and Depreciation | ||||||||||||||||||||||||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in other (income) expense — net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 18 years, 13 years and 10 years, respectively. For income tax purposes, accelerated methods of depreciation are used. | ||||||||||||||||||||||||||
Estimated useful lives are periodically reviewed and changed when warranted. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their cost may not be recoverable. An impairment loss would be recognized when estimated undiscounted future pre-tax cash flows from the use of an asset are less than its carrying amount. Measurement of an impairment loss is based on the excess of the carrying amount of the asset over its fair value. Fair value is generally measured using discounted cash flows. | ||||||||||||||||||||||||||
The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is charged to operations as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. | ||||||||||||||||||||||||||
The Company accounts for asset retirement obligations ("AROs") in accordance with ASC Topic 410, Asset Retirements and Environmental Obligations, which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2013, the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. | ||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||||
The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. | ||||||||||||||||||||||||||
Under ASC Topic 350, Intangibles — Goodwill and Other ("ASC Topic 350"), goodwill is subject to impairment testing at least annually. ASC Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the two-step impairment test is necessary, a fair-value-based test is applied at the reporting unit level, which is generally one level below the operating segment level. The test compares the fair value of an entity's reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The Company estimates the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. | ||||||||||||||||||||||||||
The Company tested goodwill for impairment as of November 30, 2013. In the Company's testing of goodwill for impairment, it estimated the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. Significant assumptions used in developing the discounted operating cash flow approach were revenue growth rates and pricing, costs for manufacturing inputs, levels of capital investment and estimated cost of capital for high, medium and low growth environments. As of November 30, 2013 no impairment was indicated. | ||||||||||||||||||||||||||
Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment. Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually. See Note 4, "Goodwill and Other Intangible Assets." | ||||||||||||||||||||||||||
Research and Development Expense | ||||||||||||||||||||||||||
Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 14, "Supplemental Data — Supplemental Statement of Operations Data." | ||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
The Company measures the fair value of pension plan assets in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described below: | ||||||||||||||||||||||||||
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plan has the ability to access. | ||||||||||||||||||||||||||
Level 2 — Inputs to the valuation methodology include: | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Quoted prices for identical or similar assets or liabilities in inactive markets; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Inputs other than quoted prices that are observable for the asset or liability; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||||||||||||
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||||||||||||||||||||||||||
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||||||||||||||||
The asset's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques attempt to maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the fair value of the Company's pension plan assets: | ||||||||||||||||||||||||||
Assets at Fair Value at December 31, | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Domestic | $ | — | $ | — | $ | 49.4 | $ | 53.2 | $ | — | $ | — | $ | 49.4 | $ | 53.2 | ||||||||||
International | — | — | 42.4 | 43.2 | — | — | 42.4 | 43.2 | ||||||||||||||||||
Fixed income | — | — | 168.4 | 141.9 | — | — | 168.4 | 141.9 | ||||||||||||||||||
Cash and equivalents | 1.1 | 1 | — | — | — | — | 1.1 | 1 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets at fair value | $ | 1.1 | $ | 1 | $ | 260.2 | $ | 238.3 | $ | — | $ | — | $ | 261.3 | $ | 239.3 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||||||||
Pension plan assets are invested in a master collective trust (the "Master Trust") which holds mutual funds and common stock. Shares of mutual funds and common stock owned by the Master Trust are valued at quoted market prices. Pension plan assets invested in the Master Trust are presented at fair value, which has been determined based on the fair value of the underlying investments of the Master Trust. | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using current market prices for the Company's publicly traded debt or rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt at December 31, 2013 and 2012. | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 163.7 | $ | — | $ | — | ||||||||||||||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||||||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||||||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||||||||||||||
Neenah Germany revolving line of credit (variable rates) | 19.3 | 19.3 | — | — | ||||||||||||||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.2 | 5.1 | 6.6 | 6.9 | ||||||||||||||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.4 | 10.9 | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total Debt | $ | 211.9 | $ | 199 | $ | 182.3 | $ | 182.6 | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
(a) | ||||||||||||||||||||||||||
Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. | ||||||||||||||||||||||||||
The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and unrealized holding gains and losses are reported in other comprehensive income until realized upon sale. At December 31, 2013, the Company had $2.6 million in marketable securities classified as "Other Assets" on the consolidated balance sheet. The cost of such marketable securities was $2.5 million. Fair value for the Company's marketable securities was estimated from Level 2 measurements. The Company's marketable securities are restricted to the payment of benefits under its supplemental retirement contribution plan (the "SERP"). | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Comprehensive income (loss) includes, in addition to net income (loss), gains and losses recorded directly into stockholders' equity on the consolidated balance sheet. These gains and losses are referred to as other comprehensive income items. Accumulated other comprehensive income (loss) consists of foreign currency translation gains and (losses), deferred gains and (losses) on "available-for-sale" securities, and adjustments related to pensions and other post-retirement benefits. The Company does not provide income taxes for foreign currency translation adjustments related to indefinite investments in foreign subsidiaries. | ||||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Unrealized foreign currency translation gains | $ | 17.9 | $ | 9.2 | ||||||||||||||||||||||
Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $26.3 million and $34.9 million, respectively) | (45.2 | ) | (59.1 | ) | ||||||||||||||||||||||
Unrealized gain on "available-for-sale" securities | — | 0.1 | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Accumulated other comprehensive loss | $ | (27.3 | ) | $ | (49.8 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Accounting Standards Changes | ||||||||||||||||||||||||||
As of December 31, 2013, no amendments to the ASC had been issued that will have or are reasonably likely to have a material effect on the Company's financial position, results of operations or cash flows. | ||||||||||||||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions | ' |
Acquisitions | ' |
Note 3. Acquisitions | |
On January 31, 2013, the Company purchased certain premium paper brands and other assets from Southworth. The Company made a payment of $7.0 million for (i) certain premium fine paper brands including Southworth®, which is the leading writing, text and cover brand sold in the retail channel, (ii) approximately one month of finished goods inventory valued at $1.8 million and (iii) certain converting equipment used for retail grades. In addition, the parties entered into a supply agreement under which Southworth will manufacture and supply certain products to the Company during a transition period. The acquisition was financed through the Company's existing credit facility and cash on hand. The results of the Southworth brands are reported in the Fine Paper segment from the date of acquisition. | |
The Company accounted for the acquisition of the Southworth brands as an asset purchase in accordance with ASC Topic 805 "Business Combinations." The acquisition price for the Southworth brands was allocated to the fair value of assets acquired as follows: (i) $5.0 million in non-amortizable intangible trade names and $0.6 million in amortizable customer based intangible assets, (ii) $1.8 million of finished goods inventory and (iii) $0.2 million of property, plant and equipment. The Company estimated the fair value of the assets acquired in accordance with ASC Topic 820. The Company estimated the fair value of finished goods inventory using Level II inputs. The fair value of the non-amortizable intangible trade names, the amortizable customer based intangible assets and the property, plant and equipment was estimated using Level III inputs. The Company also recognized a liability of $0.6 million as a reserve against the resolution of certain contingencies in the purchase agreement. As of December 31, 2013, substantially all such contingencies had been resolved. For the year ended December 31, 2013, the Company incurred $0.4 million in acquisition-related integration costs. | |
On January 31, 2012, the Company purchased certain premium paper brands and other assets from Wausau Paper Mills, LLC, a subsidiary of Wausau Paper Corp. ("Wausau"). The Company paid approximately $21 million for (i) the premium fine paper brands ASTROBRIGHTS®, ASTROPARCHE® and ROYAL, (ii) exclusive, royalty free and perpetual license rights for a portion of the EXACT® brand specialty business, including Index, Tag and Vellum Bristol, (iii) approximately one month of finished goods inventory and (iv) certain converting equipment used for retail grades. The results of the Index, Tag and Vellum Bristol product lines are reported in the Other segment from the date of acquisition. The results of all other brands acquired from Wausau are reported in the Fine Paper segment from the date of acquisition. For the year ended December 31, 2012, the Company incurred $5.8 million in acquisition-related integration costs. | |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Note 4. Goodwill and Other Intangible Assets | ||||||||||||||||
As of December 31, 2013, the Company had goodwill of $43.1 million which is not amortized. The following table presents changes in goodwill (all of which relates to the Company's Technical Products segment) for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
Gross | Accumulated | Net | ||||||||||||||
Amount | Impairment | |||||||||||||||
Losses | ||||||||||||||||
Balance at December 31, 2010 | $ | 91.4 | $ | (49.9 | ) | $ | 41.5 | |||||||||
Foreign currency translation | (2.3 | ) | 1.3 | (1.0 | ) | |||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2011 | 89.1 | (48.6 | ) | 40.5 | ||||||||||||
Foreign currency translation | 7 | (6.1 | ) | 0.9 | ||||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2012 | 96.1 | (54.7 | ) | 41.4 | ||||||||||||
Foreign currency translation | 4 | (2.3 | ) | 1.7 | ||||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2013 | $ | 100.1 | $ | (57.0 | ) | $ | 43.1 | |||||||||
| | | | | | | | | | | ||||||
| | | | | | | | | | | ||||||
Impairment | ||||||||||||||||
As of December 31, 2013 and 2012, the carrying amount of goodwill assigned to Neenah Germany was not impaired. | ||||||||||||||||
Other Intangible Assets | ||||||||||||||||
As of December 31, 2013, the Company had net identifiable intangible assets of $38.5 million. All such intangible assets were acquired in the acquisitions of Neenah Germany, Fox River and the Wausau and Southworth brands. The following table details amounts related to those assets. | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Weighted average | Gross | Accumulated | Gross | Accumulated | ||||||||||||
amortization | Amount | Amortization | Amount | Amortization | ||||||||||||
period (years) | ||||||||||||||||
Amortizable intangible assets | ||||||||||||||||
Customer based intangibles | 15 | $ | 17.5 | $ | (7.6 | ) | $ | 16.3 | $ | (6.2 | ) | |||||
Trade names and trademarks | 10 | 5.8 | (4.2 | ) | 5.5 | (3.4 | ) | |||||||||
Acquired technology | 10 | 1.1 | (0.8 | ) | 1.1 | (0.7 | ) | |||||||||
| | | | | | | | | | | | | | | | |
Total amortizable intangible assets | 24.4 | (12.6 | ) | 22.9 | (10.3 | ) | ||||||||||
Trade names | Not amortized | 26.7 | — | 21.4 | — | |||||||||||
| | | | | | | | | | | | | | | | |
Total | $ | 51.1 | $ | (12.6 | ) | $ | 44.3 | $ | (10.3 | ) | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
In conjunction with the acquisition of the Southworth brands, the Company recorded $5.0 million in non-amortizable intangible trade names and $0.6 million in amortizable customer based intangible assets. All other changes in the carrying value of the Company's intangible assets not specifically identified are due to foreign currency translation effects. The weighted average useful lives assigned to amortizable customer based intangible assets was 15 years. | ||||||||||||||||
As of December 31, 2013, $17.0 million and $21.5 million of such intangible assets are reported within the Technical Products and Fine Paper segments, respectively. See Note 13, "Business Segment and Geographic Information." Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2013, 2012 and 2011 was $1.9 million, $1.9 million and $1.7 million, respectively and was reported in Cost of Products Sold on the Consolidated Statement of Operations. Estimated amortization expense for the years ended December 31, 2014, 2015, 2016, 2017 and 2018 is $1.9 million, $1.9 million, $1.8 million, $1.7 million and $1.7 million, respectively. | ||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Note 5. Income Taxes | ||||||||||||||||||||
The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. Income tax expense represented 32.1 percent, 30.0 percent and 29.1 percent of income from continuing operations before income taxes for the years ended December 31, 2013, 2012 and 2011, respectively. The following table presents the principal reasons for the difference between the Company's effective income tax rate and the U.S. federal statutory income tax rate: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2013 | 2012 | 2012 | 2011 | 2011 | |||||||||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 25.5 | 35 | % | $ | 20 | 35 | % | $ | 14.5 | ||||||||
U.S. state income taxes, net of federal income tax effect | 2.3 | % | 1.7 | 1.9 | % | 1.1 | 1.8 | % | 0.7 | |||||||||||
Tax on foreign dividends | 2.8 | % | 2 | — | — | 3.6 | % | 1.5 | ||||||||||||
Research and development and other tax credits | (3.0 | )% | (2.2 | ) | — | — | — | — | ||||||||||||
Foreign tax rate differences (a) | (2.4 | )% | (1.7 | ) | (2.7 | )% | (1.6 | ) | (3.0 | )% | (1.3 | ) | ||||||||
Foreign financing structure (b) | (3.3 | )% | (2.4 | ) | (4.3 | )% | (2.4 | ) | (6.3 | )% | (2.6 | ) | ||||||||
Other differences — net | 0.7 | % | 0.5 | 0.1 | % | — | (2.0 | )% | (0.8 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Effective income tax rate | 32.1 | % | $ | 23.4 | 30 | % | $ | 17.1 | 29.1 | % | $ | 12 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
Represents the impact on the Company's effective tax rate due to changes in the mix of earnings among taxing jurisdictions with differing statutory rates. | ||||||||||||||||||||
(b) | ||||||||||||||||||||
Represents the impact on the Company's effective tax rate of the Company's financing strategies. | ||||||||||||||||||||
The Company's effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in taxing jurisdictions with differing statutory rates, changes in corporate structure as a result of business acquisitions and dispositions, changes in the valuation of deferred tax assets and liabilities, the results of audit examinations of previously filed tax returns and changes in tax laws. | ||||||||||||||||||||
The following table presents the U.S. and foreign components of income from continuing operations before income taxes: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Income from continuing operations before income taxes: | ||||||||||||||||||||
U.S. | $ | 48 | $ | 35.8 | $ | 23.1 | ||||||||||||||
Foreign | 24.8 | 21.2 | 18.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 72.8 | $ | 57 | $ | 41.3 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
The following table presents the components of the provision (benefit) for income taxes: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Provision (benefit) for income taxes: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | (0.5 | ) | $ | (2.2 | ) | $ | 0.2 | ||||||||||||
State | 0.3 | — | 0.4 | |||||||||||||||||
Foreign | 5.9 | 8.8 | 3.9 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total current tax provision | 5.7 | 6.6 | 4.5 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Deferred: | ||||||||||||||||||||
Federal | 18.4 | 12 | 8.9 | |||||||||||||||||
State | — | 0.4 | 1.2 | |||||||||||||||||
Foreign | (0.7 | ) | (1.9 | ) | (2.6 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total deferred tax provision | 17.7 | 10.5 | 7.5 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total provision for income taxes | $ | 23.4 | $ | 17.1 | $ | 12 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
The Company has elected to treat its Canadian operations as a branch for U.S. income tax purposes. Therefore, the amount of income (loss) before income taxes from Canadian operations are included in the Company's consolidated U.S. income tax returns and such amounts are subject to U.S. income taxes. | ||||||||||||||||||||
The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The components of deferred tax assets and liabilities are as follows: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Net current deferred income tax assets | ||||||||||||||||||||
Net operating losses and credits | $ | 13.7 | $ | 18.9 | ||||||||||||||||
Inventory | 4.8 | 3.6 | ||||||||||||||||||
Accrued liabilities | 2.4 | 2.8 | ||||||||||||||||||
Employee benefits | 1.6 | 1.7 | ||||||||||||||||||
Other | 0.3 | 0.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Net current deferred income tax assets before valuation allowance | 22.8 | 27.3 | ||||||||||||||||||
Valuation allowance | — | (0.1 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net current deferred income tax assets | 22.8 | 27.2 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets | ||||||||||||||||||||
Net operating losses and credits | 10 | 16 | ||||||||||||||||||
Employee benefits | 22.3 | 38.2 | ||||||||||||||||||
Accelerated depreciation | (18.4 | ) | (18.4 | ) | ||||||||||||||||
Other | (0.6 | ) | (0.2 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets before valuation allowance | 13.3 | 35.6 | ||||||||||||||||||
Valuation allowance | — | (0.3 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets | 13.3 | 35.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred income tax assets | $ | 36.1 | $ | 62.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax liability | ||||||||||||||||||||
Accelerated depreciation | $ | 18.8 | $ | 18.6 | ||||||||||||||||
Intangibles | 4.5 | 4.7 | ||||||||||||||||||
Interest limitation | (1.9 | ) | (5.2 | ) | ||||||||||||||||
Employee benefits | (5.2 | ) | (5.0 | ) | ||||||||||||||||
Net operating losses | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Other | (0.4 | ) | (0.4 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax liabilities | $ | 15.6 | $ | 12.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
As of December 31, 2013, the Company had no valuation allowance against its income tax assets. As of December 31, 2012, a valuation allowance of $0.4 million was provided against certain U.S. state deferred income tax assets in states where the Company no longer has operations. In determining the need for a valuation allowance, the Company considers many factors, including specific taxing jurisdictions, sources of taxable income, income tax strategies and forecasted earnings for the entities in each jurisdiction. A valuation allowance is recognized if, based on the weight of available evidence, the Company concludes that it is more likely than not that some portion or all of the deferred income tax asset will not be realized. | ||||||||||||||||||||
As of December 31, 2013, the Company had $32.9 million of U.S. Federal and $51.5 million of U.S. state net operating losses ("NOLs"). If not used, substantially all of the NOLs will expire in various amounts between 2028 and 2030. As of December 31, 2013, the Company had $2.3 million of state research and development credits which, if not used, will expire in 2017. The Company also has preacquisition and recognized built-in loss carryovers of $12.7 million, net of expected limitations. In addition, the Company has $2.8 million of Alternative Minimum Tax Credit carryovers, which can be carried forward indefinitely. | ||||||||||||||||||||
As of December 31, 2013 and 2012, the Company had no undistributed earnings of foreign subsidiaries. | ||||||||||||||||||||
The following is a tabular reconciliation of the total amounts of uncertain tax positions as of and for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Balance at January 1, | $ | 4.8 | $ | 8.4 | $ | 8.6 | ||||||||||||||
Increases in prior period tax positions | 0.2 | 4.4 | 0.2 | |||||||||||||||||
Decreases in prior period tax positions | (0.8 | ) | (7.5 | ) | (0.3 | ) | ||||||||||||||
Increases in current period tax positions | 1.3 | — | — | |||||||||||||||||
Decreases due to settlements with tax authorities | (1.3 | ) | (0.5 | ) | (0.1 | ) | ||||||||||||||
Increase from foreign exchange rate changes | 0.1 | — | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Balance at December 31, | $ | 4.3 | $ | 4.8 | $ | 8.4 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
If recognized, $4.1 million of the benefit for uncertain tax positions at December 31, 2013 would favorably affect the Company's effective tax rate in future periods. The Company does not expect that the expiration of the statute of limitations or the settlement of audits in the next 12 months will result in liabilities for uncertain income tax positions that are materially different than the amounts that were accrued as of December 31, 2013. | ||||||||||||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and foreign jurisdictions. The Company is no longer subject to U.S. federal examination for years before 2008 and state and local examinations for years before 2007 and non-U.S. income tax examinations for years before 2008. As of December 31, 2013, audit findings related to the 2008 through 2011 tax years were in the process of being settled with the German tax authorities. For a discussion of uncertainties related to tax matters see Note 11, "Contingencies and Legal Matters." | ||||||||||||||||||||
The Company recognizes accrued interest and penalties related to uncertain income tax positions in the Provision for income taxes on the consolidated statements of operations. As of December 31, 2013 and 2012, the Company had $0.1 million accrued for interest and penalties related to uncertain income tax positions. | ||||||||||||||||||||
Debt
Debt | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Debt | ' | ||||||||||||||||||||||
Debt | ' | ||||||||||||||||||||||
Note 6. Debt | |||||||||||||||||||||||
Long-term debt consisted of the following: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
2021 Senior Notes (5.25% fixed rate) due May 2021 | $ | 175 | $ | — | |||||||||||||||||||
2014 Senior Notes (7.375% fixed rate) retired June 2013 | — | 90 | |||||||||||||||||||||
Revolving bank credit facility (variable rates) due November 2017 | — | 55.7 | |||||||||||||||||||||
Term Loan (variable rates) repaid June 2013 | — | 30 | |||||||||||||||||||||
Neenah Germany revolving lines of credit (variable rates) | 19.3 | — | |||||||||||||||||||||
Neenah Germany project financing (3.8% fixed rate) due in 16 equal semi-annual installments ending December 2016 | 5.2 | 6.6 | |||||||||||||||||||||
Second German Loan Agreement (2.5% fixed rate) due in 32 equal quarterly installments ending September 2022 | 12.4 | — | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total Debt | 211.9 | 182.3 | |||||||||||||||||||||
Less: Debt payable within one year | 21.4 | 4.7 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Long-term debt | $ | 190.5 | $ | 177.6 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Unsecured Senior Notes | |||||||||||||||||||||||
2021 Senior Notes | |||||||||||||||||||||||
In May 2013, the Company completed an underwritten offering of eight-year senior unsecured notes (the "2021 Senior Notes") at a face amount of $175 million. The 2021 Senior Notes bear interest at a rate of 5.25%, payable in arrears on May 15 and November 15 of each year, commencing on November 15, 2013, and mature on May 15, 2021. Proceeds from this offering were used to redeem the remaining outstanding principal amount of 2014 Senior Notes (as defined below), to repay approximately $56 million in outstanding Revolver (as defined below) borrowings and for general corporate purposes. The 2021 Senior Notes are fully and unconditionally guaranteed by substantially all of the Company's domestic subsidiaries (the "Guarantors"). The 2021 Senior Notes were sold in a private placement transaction, have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration requirements. | |||||||||||||||||||||||
The 2021 Senior Notes are senior unsecured obligations of the Company and will rank equally in right of payment with all its existing and future senior unsecured indebtedness. The guarantees of the 2021 Senior Notes are senior unsecured obligations of the Guarantors and will rank equally in right of payment with all existing and future senior unsecured indebtedness of the Guarantors. The 2021 Senior Notes and the guarantees of the 2021 Senior Notes will be effectively subordinated to the Company's and the Guarantors' existing and future secured indebtedness (to the extent of the value of the collateral) and will be structurally subordinated to all indebtedness and other obligations of the Company's subsidiaries that do not guarantee the 2021 Senior Notes, including the trade creditors of such non-guarantor subsidiaries. | |||||||||||||||||||||||
The 2021 Senior Notes contain terms, covenants and events of default with which the Company must comply, which the Company believes are ordinary and standard for notes of this nature. Among other things, the 2021 Senior Notes contain covenants restricting our ability to incur certain additional debt, make specified restricted payments, pay dividends, authorize or issue capital stock, enter into transactions with our affiliates, consolidate or merge with or acquire another business, sell certain of our assets or liquidate, dissolve or wind-up the Company. As of December 31, 2013, the Company was in compliance with all terms of the indenture for the 2021 Senior Notes. | |||||||||||||||||||||||
2014 Senior Notes | |||||||||||||||||||||||
On December 31, 2012, the Company had $90 million of ten-year 7.375% senior unsecured notes, originally issued on November 30, 2004 (the "2014 Senior Notes") outstanding. In May 2013, the Company used Revolver borrowings to redeem $20 million of the 2014 Senior Notes. In June 2013, the Company retired the remaining $70 million in outstanding 2014 Senior Notes at par value. The redemption and early retirement the 2014 Senior Notes resulted in aggregate pre-tax losses of $0.4 million due to the write-off of unamortized debt issuance costs. | |||||||||||||||||||||||
The retirement of the 2014 Senior Notes eliminated the requirement for the Company to present condensed consolidating financial statements in lieu of consolidated financial statements for the guaranteeing subsidiaries. | |||||||||||||||||||||||
Amended and Restated Secured Revolving Credit Facility | |||||||||||||||||||||||
In October 2012, the Company amended and extended its secured bank credit facility by entering into a Second Amended and Restated Credit Agreement (the "Second Amended and Restated Credit Agreement"). The Second Amended and Restated Credit Agreement provides for, among other things; a secured revolving credit commitment of $105 million (the "Revolver") and a secured $30 million term loan commitment (the "Term Loan"). In June 2013, the Company repaid all outstanding Term Loan borrowings ($29.3 million) and recognized a pre-tax loss of $0.1 million for the early extinguishment of debt due to the write-off of unamortized debt issuance costs. As of December 31, 2013, there were no Term Loan borrowings outstanding and such amounts may not be redrawn. | |||||||||||||||||||||||
In June 2013, the Company amended the Second Amended and Restated Credit Agreement (as amended, the "Bank Credit Agreement") to, among other things; (i) modify the Second Amended and Restated Credit Agreement's accordion feature to permit the Company, subject to certain conditions, to increase the aggregate revolving credit facility commitments by up to $30 million, to a maximum amount of $180 million (ii) increase the Company's allowable dividends paid to shareholders in any period of 12 consecutive months to $25 million, (iii) allow the Company to repurchase up to $30 million of its own common stock on or before December 31, 2014, with no more than $15 million of that amount to be repurchased on or before December 31, 2013, and (iv) make certain definitional and administrative changes. | |||||||||||||||||||||||
As of December 31, 2013, the Company had a $105 million Revolver pursuant to the Bank Credit Agreement of which no amounts were outstanding. Borrowing availability under the Revolver is reduced by outstanding letters of credit and reserves for certain other items as defined in the Amended Credit Agreement. As of December 31, 2013, the Company had $104.2 million of available credit under the Revolver. As of December 31, 2012, the weighted-average interest rate on outstanding Revolver and Term Loan borrowings was 2.4 percent per annum and 4.0 percent per annum, respectively. | |||||||||||||||||||||||
As of December 31 2013, the Bank Credit Agreement had the following general terms and conditions: | |||||||||||||||||||||||
• | |||||||||||||||||||||||
Borrowing Limit. The Company's ability to borrow under the Revolver is limited to the lowest of (a) $105 million; (b) the Company's borrowing base (as determined in accordance with the Second Amended and Restated Credit Agreement) and (c) the applicable cap on the amount of "credit facilities" under the indenture for the 2021 Senior Notes. | |||||||||||||||||||||||
• | |||||||||||||||||||||||
Term and Security. The Second Amended and Restated Credit Agreement will terminate on November 30, 2017. The Second Amended and Restated Credit Agreement is secured by substantially all of the assets of the Company and the subsidiary borrowers. Neenah Germany is not obligated with respect to the Second Amended and Restated Credit Agreement, either as a borrower or a guarantor. | |||||||||||||||||||||||
• | |||||||||||||||||||||||
Interest Rate. The Revolver bears interest at either (1) a prime rate-based index, as defined, plus a percentage ranging from 0.25 percent to 0.75 percent, or (2) LIBOR plus a percentage ranging from 1.75 percent to 2.25 percent, depending upon the amount of borrowing availability under the Revolver. The Company is also required to pay a monthly facility fee on the unused amount of the Revolver commitment at a per annum rate ranging between 0.25 percent and 0.375 percent, depending upon usage under the Revolver. | |||||||||||||||||||||||
• | |||||||||||||||||||||||
Terms, Covenants and Events of Default. The Bank Credit Agreement contains terms, covenants and events of default with which the Company must comply, which the Company believed are ordinary and standard for agreements of this nature. Among other things, such covenants restrict the Company's ability to incur certain additional debt, make specified restricted payments, authorize or issue capital stock, enter into transactions with affiliates, consolidate or merge with or acquire another business, sell certain of its assets, or dissolve or wind up. If borrowing availability under the Revolver is less than $20 million, the Company is required to achieve a fixed charge coverage ratio (as defined in the Bank Credit Agreement) of not less than 1.1 to 1.0 for the preceding four-quarter period, tested as of the end of each quarter. As of December 31, 2013, the Company was in compliance with all terms of the Bank Credit Agreement. | |||||||||||||||||||||||
• | |||||||||||||||||||||||
Stock Repurchases. The Bank Credit Agreement allows the Company to repurchase up to $30 million of its own common stock on or before December 31, 2014, with no more than $15 million of that amount to be repurchased on or before December 31, 2013. | |||||||||||||||||||||||
The Company's ability to pay cash dividends on its common stock is limited under the terms of both the Bank Credit Agreement and the 2021 Senior Notes. As of December 31, 2013, the Company's ability to pay cash dividends on its common stock was limited to a total of $25 million in a 12-month period. | |||||||||||||||||||||||
Other Debt | |||||||||||||||||||||||
Neenah Germany Project Financing | |||||||||||||||||||||||
German Loan Agreement. In December 2006, Neenah Germany entered into a 10-year agreement with HypoVereinsbank and IKB Deutsche Industriebank AG ("IKB") to provide €10.0 million of project financing (the "German Loan Agreement"). As of December 31, 2013, €3.7 million ($5.2 million, based on exchange rates at December 31, 2013) was outstanding under the German Loan Agreement. | |||||||||||||||||||||||
Second German Loan Agreement. In January 2013, Neenah Germany entered into a project financing agreement for the construction of a melt blown machine (the "Second German Loan Agreement"). The agreement provides for €9.0 million of construction financing which is secured by the melt blown machine. The loan matures in September 2022 and principal is repaid in equal quarterly installments beginning in December 2014. The interest rate on amounts outstanding is 2.45% based on actual days elapsed in a 360-day year and is payable quarterly. At December 31, 2013, €9.0 million ($12.4 million, based on exchange rates at December 31, 2013) was outstanding under the Second German Loan Agreement. | |||||||||||||||||||||||
Neenah Germany Revolving Lines of Credit | |||||||||||||||||||||||
HypoVereinsbank Line of Credit. Neenah Germany has a revolving line of credit with HypoVereinsbank (the "HypoVereinsbank Line of Credit") that provides for borrowings of up to €15 million for general corporate purposes. As of December 31, 2013, €10.0 million ($13.8 million, based on exchange rates at December 31, 2013) was outstanding under the HypoVereinsbank Line of Credit and €5.0 million ($6.9 million, based on exchange rates at December 31, 2013) of credit was available. As of December 31, 2013 and 2012, the weighted-average interest rate on outstanding HypoVereinsbank Line of Credit borrowings was 3.1 percent per annum and 3.8 percent per annum, respectively. | |||||||||||||||||||||||
Commerzbank Line of Credit. In January 2012, Neenah Germany entered into an agreement with Commerzbank AG ("Commerzbank") to provide up to €3.0 million of unsecured revolving credit borrowings for general corporate purposes (the "Commerzbank Line of Credit"). In February 2013, the Company and Commerzbank amended the Commerzbank Line of Credit to provide up to €5.0 million of unsecured revolving credit borrowings. As of December 31, 2013, €4.0 million ($5.5 million, based on exchange rates at December 31, 2013) was outstanding under the Commerzbank Line of Credit and €1.0 million ($1.3 million, based on exchanges rates at December 31, 2013) of credit was available. As of December 31, 2013 and 2012, the weighted average interest rate on Commerzbank Line of Credit borrowings was 2.9 percent per annum and 3.6 percent per annum, respectively. | |||||||||||||||||||||||
Restrictions under German Credit Facilities | |||||||||||||||||||||||
Neenah Germany's ability to pay dividends or transfer funds to the Company is limited under the terms of both the HypoVereinsbank and Commerzbank lines of credit to not exceed certain limits defined in the agreement without lender approval or repayment of the amount outstanding under the line. In addition, the terms of the HypoVereinsbank and Commerzbank lines of credit require Neenah Germany to maintain a ratio of stockholder's equity to total assets equal to or greater than 45 percent. The Company was in compliance with all provisions of the agreements as of December 31, 2013. | |||||||||||||||||||||||
Principal Payments | |||||||||||||||||||||||
The following table presents the Company's required debt payments: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
Debt payments | $ | 21.4 | $ | 3.3 | $ | 3.2 | $ | 1.6 | $ | 1.6 | $ | 180.8 | $ | 211.9 |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||
Note 7. Pension and Other Postretirement Benefits | ||||||||||||||||||||
Pension Plans | ||||||||||||||||||||
Substantially all active employees of the Company's U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. Neenah Germany has defined benefit plans designed to provide a monthly pension upon retirement for substantially all its employees in Germany. In addition, the Company maintains a SERP which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans. | ||||||||||||||||||||
For the years ended December 31, 2013 and 2012, benefit payments under the SERP exceeded the sum of expected service cost and interest costs for the plan for the respective calendar years. In accordance with ASC Topic 715, Compensation — Retirement Benefits ("ASC Topic 715"), the Company measured the liabilities of the SERP and recognized settlement losses of $0.2 million and $3.5 million, respectively. | ||||||||||||||||||||
The Company's funding policy for its U.S. qualified defined benefit plan is to contribute assets to fully fund the projected benefit obligation. Subject to regulatory and tax deductibility limits, any funding shortfall is to be eliminated over a reasonable number of years. Nonqualified plans providing pension benefits in excess of limitations imposed by taxing authorities are not funded. There is no legal or governmental obligation to fund Neenah Germany's benefit plans and as such the Neenah Germany defined benefit plans are currently unfunded. As of December 31, 2013, Neenah Germany had investments of $2.0 million that were restricted to the payment of certain post-retirement employee benefits. As of December 31, 2013, $0.5 million and $1.5 million of such investments are classified as prepaid and other current assets and other assets, respectively, on the consolidated balance sheet. | ||||||||||||||||||||
The Company uses the fair value of pension plan assets to determine pension expense, rather than averaging gains and losses over a period of years. Investment gains or losses represent the difference between the expected return calculated using the fair value of the assets and the actual return based on the fair value of assets. The Company's pension obligations are measured annually as of December 31. | ||||||||||||||||||||
Other Postretirement Benefit Plans | ||||||||||||||||||||
The Company maintains postretirement health care and life insurance benefit plans for active employees of the Company and former employees of the Canadian pulp operations. The plans are generally noncontributory for employees who were eligible to retire on or before December 31, 1992 and contributory for most employees who became eligible to retire on or after January 1, 1993. The Company does not provide a subsidized benefit to most employees hired after 2003. | ||||||||||||||||||||
The Company's obligations for postretirement benefits other than pensions are measured annually as of December 31. At December 31, 2013, the assumed inflationary health care cost trend rates used to determine obligations at December 31, 2013 and costs for the year ended December 31, 2014 were 7.3 percent gradually decreasing to an ultimate rate of 4.5 percent in 2027. The assumed inflationary health care cost trend rates used to determine obligations at December 31, 2012 and costs for the year ended December 31, 2013 were 7.6 percent gradually decreasing to an ultimate rate of 4.5 percent in 2027. | ||||||||||||||||||||
The following table reconciles the benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans. | ||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 325.3 | $ | 287.4 | $ | 46.7 | $ | 42.5 | ||||||||||||
Service cost | 5.3 | 4.6 | 1.8 | 1.8 | ||||||||||||||||
Interest cost | 13.5 | 14.1 | 1.8 | 2.1 | ||||||||||||||||
Currency | 1.9 | 1.1 | 0.1 | 0.1 | ||||||||||||||||
Actuarial (gain) loss | (12.3 | ) | 36.9 | (4.0 | ) | 3.2 | ||||||||||||||
Benefit payments from plans | (13.5 | ) | (12.5 | ) | (3.7 | ) | (3.0 | ) | ||||||||||||
Loss on plan settlement | (0.4 | ) | (6.9 | ) | — | — | ||||||||||||||
Plan amendments | 0.5 | 0.6 | (1.4 | ) | — | |||||||||||||||
Gain on plan curtailment | — | — | (0.2 | ) | — | |||||||||||||||
Other | 0.1 | — | — | — | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Benefit obligation at end of year | $ | 320.4 | $ | 325.3 | $ | 41.1 | $ | 46.7 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Change in Plan Assets: | ||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 239.3 | $ | 210.6 | $ | — | $ | — | ||||||||||||
Actual gain on plan assets | 15.6 | 23.9 | — | — | ||||||||||||||||
Employer contributions | 18.1 | 15.3 | — | — | ||||||||||||||||
Benefit payments | (11.3 | ) | (10.5 | ) | — | — | ||||||||||||||
Settlement payments | (0.4 | ) | — | — | — | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Fair value of plan assets at end of year | $ | 261.3 | $ | 239.3 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Reconciliation of Funded Status | ||||||||||||||||||||
Fair value of plan assets | $ | 261.3 | $ | 239.3 | $ | — | $ | — | ||||||||||||
Projected benefit obligation | 320.4 | 325.3 | 41.1 | 46.7 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Net liability recognized in statement of financial position | $ | (59.1 | ) | $ | (86.0 | ) | $ | (41.1 | ) | $ | (46.7 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Amounts recognized in statement of financial position consist of: | ||||||||||||||||||||
Current liabilities | $ | (2.6 | ) | $ | (2.8 | ) | $ | (3.9 | ) | $ | (3.6 | ) | ||||||||
Noncurrent liabilities | (56.5 | ) | (83.2 | ) | (37.2 | ) | (43.1 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (59.1 | ) | $ | (86.0 | ) | $ | (41.1 | ) | $ | (46.7 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Accumulated actuarial loss | $ | 64.8 | $ | 81.2 | $ | 4.7 | $ | 9.8 | ||||||||||||
Prior service cost | 1.8 | 1.6 | (0.9 | ) | 0.4 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total recognized in accumulated other comprehensive income | $ | 66.6 | $ | 82.8 | $ | 3.8 | $ | 10.2 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Summary disaggregated information about the pension plans follows: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
Assets | ABO | Total | ||||||||||||||||||
Exceed ABO | Exceed Assets | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | $ | 266.4 | $ | — | $ | 54 | $ | 325.3 | $ | 320.4 | $ | 325.3 | ||||||||
Accumulated benefit obligation | 251.6 | — | 53.3 | 311.9 | 304.9 | 311.9 | ||||||||||||||
Fair value of plan assets | 261.3 | — | — | 239.3 | 261.3 | 239.3 | ||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Service cost | $ | 5.3 | $ | 4.6 | $ | 4.1 | $ | 1.8 | $ | 1.8 | $ | 1.7 | ||||||||
Interest cost | 13.5 | 14.1 | 14.5 | 1.8 | 2.1 | 2.3 | ||||||||||||||
Expected return on plan assets (a) | (17.1 | ) | (15.3 | ) | (15.0 | ) | — | — | — | |||||||||||
Recognized net actuarial loss | 5.7 | 4.1 | 1.6 | 0.7 | 0.5 | 0.2 | ||||||||||||||
Amortization of prior service cost | 0.3 | 0.3 | 0.2 | (0.1 | ) | 0.2 | 0.5 | |||||||||||||
Amount of curtailment loss recognized | — | — | — | — | 0.3 | — | ||||||||||||||
Amount of settlement loss recognized | 0.2 | 3.5 | — | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net periodic benefit cost | $ | 7.9 | $ | 11.3 | $ | 5.4 | $ | 4.2 | $ | 4.9 | $ | 4.7 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
The expected return on plan assets is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. | ||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Net periodic benefit expense | $ | 7.9 | $ | 11.3 | $ | 5.4 | $ | 4.2 | $ | 4.9 | $ | 4.7 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Accumulated actuarial gain (loss) | (16.4 | ) | 20.8 | 27.1 | (5.1 | ) | 2.7 | 0.1 | ||||||||||||
Prior service cost (credit) | 0.2 | 0.4 | (0.1 | ) | (1.3 | ) | (0.2 | ) | (1.4 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total recognized in other comprehensive income | (16.2 | ) | 21.2 | 27 | (6.4 | ) | 2.5 | (1.3 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total recognized in net periodic benefit cost and other comprehensive income | $ | (8.3 | ) | $ | 32.5 | $ | 32.4 | $ | (2.2 | ) | $ | 7.4 | $ | 3.4 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The estimated net actuarial loss and prior service cost for the defined benefit pension plans expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $4.2 million and $0.3 million, respectively. The estimated net actuarial loss and prior service (credit) for postretirement benefits other than pensions expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $0.1 million and $(0.2) million, respectively. | ||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | ||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Discount rate | 4.88 | % | 4.19 | % | 4.84 | % | 4.12 | % | ||||||||||||
Rate of compensation increase | 2.96 | % | 2.96 | % | — | — | ||||||||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | ||||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 4.19 | % | 5.14 | % | 5.86 | % | 4.12 | % | 5.03 | % | 5.7 | % | ||||||||
Expected long-term return on plan assets | 7 | % | 7.25 | % | 7.75 | % | — | — | — | |||||||||||
Rate of compensation increase | 2.96 | % | 2.95 | % | 3.91 | % | — | — | — | |||||||||||
Expected Long-Term Rate of Return and Investment Strategies | ||||||||||||||||||||
The expected long-term rate of return on pension fund assets held by the Company's pension trusts was determined based on several factors, including input from pension investment consultants and projected long-term returns of broad equity and bond indices. Also considered were the plans' historical 10-year and 15-year compounded annual returns. It is anticipated that, on average, actively managed U.S. pension plan assets will generate annual long-term rates of return of at least 7.00 percent. The expected long-term rate of return on the assets in the plans was based on an asset allocation assumption of approximately 35 percent with equity managers, with expected long-term rates of return of approximately 8 to10 percent, and 65 percent with fixed income managers, with an expected long-term rate of return of about 5 to 7 percent. The actual asset allocation is regularly reviewed and periodically rebalanced to the targeted allocation when considered appropriate. | ||||||||||||||||||||
Plan Assets | ||||||||||||||||||||
Pension plan asset allocations are as follows: | ||||||||||||||||||||
Percentage of Plan Assets | ||||||||||||||||||||
At December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Asset Category | ||||||||||||||||||||
Equity securities | 35 | % | 40 | % | 43 | % | ||||||||||||||
Debt securities | 64 | % | 59 | % | 55 | % | ||||||||||||||
Cash and money-market funds | 1 | % | 1 | % | 2 | % | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
The Company's investment objectives for pension plan assets is to ensure, over the long-term life of the pension plans, an adequate pool of assets to support the benefit obligations to participants, retirees, and beneficiaries. Specifically, these objectives include the desire to: (a) invest assets in a manner such that future assets are available to fund liabilities, (b) maintain liquidity sufficient to pay current benefits when due and (c) diversify, over time, among asset classes so assets earn a reasonable return with acceptable risk to capital. | ||||||||||||||||||||
The target investment allocation and permissible allocation range for plan assets by category are as follows: | ||||||||||||||||||||
Strategic Target | Permitted Range | |||||||||||||||||||
Asset Category | ||||||||||||||||||||
Equity securities | 35 | % | 35-45 | % | ||||||||||||||||
Debt securities / Fixed Income | 65 | % | 55-65 | % | ||||||||||||||||
As of December 31, 2013, no company or group of companies in a single industry represented more than five percent of plan assets. | ||||||||||||||||||||
The Company's investment assumptions are established by an investment committee composed of members of senior management and are validated periodically against actual investment returns. As of December 31, 2013, the Company's investment assumptions are as follows: | ||||||||||||||||||||
(a) | ||||||||||||||||||||
the plan should be substantially fully invested in debt and equity securities at all times because substantial cash holdings will reduce long-term rates of return; | ||||||||||||||||||||
(b) | ||||||||||||||||||||
equity investments will provide greater long-term returns than fixed income investments, although with greater short-term volatility; | ||||||||||||||||||||
(c) | ||||||||||||||||||||
it is prudent to diversify plan investments across major asset classes; | ||||||||||||||||||||
(d) | ||||||||||||||||||||
allocating a portion of plan assets to foreign equities will increase portfolio diversification, decrease portfolio risk and provide the potential for long-term returns; | ||||||||||||||||||||
(e) | ||||||||||||||||||||
investment managers with active mandates can reduce portfolio risk below market risk and potentially add value through security selection strategies, and a portion of plan assets should be allocated to such active mandates; | ||||||||||||||||||||
(f) | ||||||||||||||||||||
a component of passive, indexed management can benefit the plans through greater diversification and lower cost, and a portion of the plan assets should be allocated to such passive mandates, and | ||||||||||||||||||||
(g) | ||||||||||||||||||||
it is appropriate to retain more than one investment manager, given the size of the plans, provided that such managers offer asset class or style diversification. | ||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, no plan assets were invested in the Company's securities. | ||||||||||||||||||||
Cash Flows | ||||||||||||||||||||
At December 31, 2013, the Company expects to make aggregate contributions to qualified and non-qualified pension trusts and payments of pension benefits for unfunded pension plans in 2014 of approximately $16.0 million (based on exchange rates at December 31, 2013). | ||||||||||||||||||||
Future Benefit Payments | ||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||
Pension Plans | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
2014 | $ | 14.7 | $ | 3.9 | ||||||||||||||||
2015 | 15.3 | 3.3 | ||||||||||||||||||
2016 | 16.1 | 3.7 | ||||||||||||||||||
2017 | 17.9 | 4 | ||||||||||||||||||
2018 | 18 | 4.1 | ||||||||||||||||||
Years 2019-2023 | 104.1 | 19.8 | ||||||||||||||||||
Health Care Cost Trends | ||||||||||||||||||||
Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||
One Percentage- | ||||||||||||||||||||
Point | ||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||
Effect on total of service and interest cost components | $ | — | $ | — | ||||||||||||||||
Effect on post-retirement benefit other than pension obligation | 0.4 | (0.4 | ) | |||||||||||||||||
Defined Contribution Retirement Plans | ||||||||||||||||||||
Company contributions to defined contribution retirement plans are primarily based on the age and compensation of covered employees. Contributions to these plans, all of which were charged to expense, were $1.9 million in 2013, $1.8 million in 2012 and $1.6 million in 2011. In addition, the Company maintains a supplemental retirement contribution plan (the "SRCP") which is a non-qualified, unfunded defined contribution plan. The Company provides benefits under the SRCP to the extent necessary to fulfill the intent of its defined contribution retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined contribution plans. For the years ended December 31, 2013, 2012 and 2011, the Company recognized expense related to the SRCP of $0.3 million, $0.2 million and $0.1 million, respectively. | ||||||||||||||||||||
Investment Plans | ||||||||||||||||||||
The Company provides voluntary contribution investment plans to substantially all North American employees. Under the plans, the Company matches a portion of employee contributions. For the years ended December 31, 2013, 2012 and 2011, costs charged to expense for company matching contributions under these plans were $1.8 million, $1.7 million and $1.5 million, respectively. | ||||||||||||||||||||
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Stock Compensation Plans | ' | ||||||||||||||||||||||
Stock Compensation Plans | ' | ||||||||||||||||||||||
Note 8. Stock Compensation Plans | |||||||||||||||||||||||
The Company established the 2004 Omnibus Stock and Incentive Plan (the "2004 Omnibus Plan") in December 2004 and reserved 3,500,000 shares of $0.01 par value common stock ("Common Stock") for issuance under the Omnibus Plan. Pursuant to the terms of the 2004 Omnibus Plan, the compensation committee of the Company's Board of Directors may grant various types of equity-based compensation awards, including incentive and nonqualified stock options, SARs, restricted stock, RSUs, RSUs with performance conditions ("Performance Shares") and performance units, in addition to certain cash-based awards. All grants under the Omnibus Plan will be made at fair market value and no grant may be repriced. In general, the options expire ten years from the date of grant and vest over a three-year service period. | |||||||||||||||||||||||
At the 2013 Annual Meeting of Stockholders, the Company's stockholders approved an amendment and restatement of the 2004 Omnibus Plan (as amended and restated the "2013 Omnibus Plan"). The amendment and restatement authorized the Company to reserve an additional 1,577,000 shares of Common Stock for future issuance. As of December 31, 2013, the Company had 1,790,000 shares of Common Stock reserved for future issuance under the 2013 Omnibus Plan. As of December 31, 2013, the number of shares available for future issuance was reduced by approximately 50,000 shares for outstanding SARs where the closing market price for the Company's common stock was greater than the exercise price of the SAR. The Company accounts for stock-based compensation pursuant to the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). | |||||||||||||||||||||||
Valuation and Expense Information Under ASC Topic 718 | |||||||||||||||||||||||
Substantially all stock-based compensation expense has been recorded in selling, general and administrative expenses. The following table summarizes stock-based compensation costs and related income tax benefits. | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Stock-based compensation expense | $ | 4.9 | $ | 4.9 | $ | 4.3 | |||||||||||||||||
Income tax benefit | (1.9 | ) | (1.9 | ) | (1.6 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Stock-based compensation, net of income tax benefit | $ | 3 | $ | 3 | $ | 2.7 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2013. | |||||||||||||||||||||||
Stock Options | Performance Shares | ||||||||||||||||||||||
and RSUs | |||||||||||||||||||||||
Unrecognized compensation cost — December 31, 2012 | $ | 1.6 | $ | 2.5 | |||||||||||||||||||
Grant date fair value current year grants | 1 | 3.2 | |||||||||||||||||||||
Change in estimate of shares to be forfeited | — | (0.1 | ) | ||||||||||||||||||||
Compensation expense recognized | (1.3 | ) | (3.6 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
Unrecognized compensation cost — December 31, 2013 | $ | 1.3 | $ | 2 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Expected amortization period (in years) | 2.5 | 1.6 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Stock Options/SARs | |||||||||||||||||||||||
The following tables present information regarding stock options awarded during the years ended December 31, 2013, 2012 and 2011. For the year ended December 31, 2012, the table excludes 125,000 nonqualified stock options awarded to the Company's President and Chief Executive Officer as described below: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Nonqualified stock options granted | 111,200 | 97,600 | 152,300 | ||||||||||||||||||||
Per share weighted average exercise price | $ | 31.23 | $ | 24.14 | $ | 19.55 | |||||||||||||||||
Per share weighted average grant date fair value | $ | 9.61 | $ | 8.13 | $ | 8.34 | |||||||||||||||||
The weighted-average grant date fair value for stock options granted for the years ended December 31, 2013, 2012 and 2011 was estimated using the Black-Scholes option valuation model with the following assumptions: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected term in years | 5.3 | 4.9 | 5.3 | ||||||||||||||||||||
Risk free interest rate | 0.9 | % | 1.1 | % | 2.3 | % | |||||||||||||||||
Volatility | 40.4 | % | 45.4 | % | 57.1 | % | |||||||||||||||||
Dividend yield | 1.9 | % | 2 | % | 2.3 | % | |||||||||||||||||
Expected volatility and the expected term were estimated by reference to the historical stock price performance of the Company and historical data for the Company's stock option awards, respectively. The risk-free interest rate was based on the yield on U.S. Treasury bonds with a remaining term approximately equivalent to the expected term of the stock option awards. Forfeitures were estimated at the date of grant. | |||||||||||||||||||||||
During the year ended December 31, 2012, the Company awarded nonqualified stock options to its President and Chief Executive Officer to purchase 125,000 shares of Common Stock (subject to forfeiture due to termination of employment and other conditions). The exercise price of such nonqualified stock option awards was $24.09 per share and the options expire in ten years. If certain absolute total return to shareholder targets are achieved, 25 percent of the options will vest on December 31, 2014, 50 percent will vest on December 31, 2015 and 100 percent will vest on December 31, 2016. Any unvested shares as of December 31, 2016 will be forfeited. The grant date fair value of such stock options was $9.55 per share and was estimated using a "Monte-Carlo" simulation valuation model. | |||||||||||||||||||||||
The following table summarizes stock option activity under the Omnibus Plan for the year ended December 31, 2013: | |||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Stock Options | Exercise Price | ||||||||||||||||||||||
Options outstanding — December 31, 2012 | 1,704,712 | $ | 24.7 | ||||||||||||||||||||
Add: Options granted | 111,150 | $ | 31.23 | ||||||||||||||||||||
Less: Options exercised | 845,476 | $ | 26.9 | ||||||||||||||||||||
Less: Options forfeited/cancelled | 19,718 | $ | 31.78 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Options outstanding — December 31, 2013 | 950,668 | $ | 23.36 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
The status of outstanding and exercisable stock options as of December 31, 2013, summarized by exercise price follows: | |||||||||||||||||||||||
Options Vested or Expected to Vest | Options Exercisable | ||||||||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Aggregate | Number of | Weighted- | Aggregate | ||||||||||||||||
Options | Average | Average | Intrinsic | Options | Average | Intrinsic | |||||||||||||||||
Remaining | Exercise | Value (a) | Exercise | Value (a) | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||
$7.41 - $21.13 | 342,650 | 5.7 | $ | 12.85 | $ | 10.3 | 310,399 | $ | 12.19 | $ | 9.5 | ||||||||||||
$22.44 - $29.43 | 307,981 | 6.7 | $ | 24.8 | 5.5 | 122,378 | $ | 25.92 | 2.1 | ||||||||||||||
$30.15 - $34.61 | 178,761 | 6.1 | $ | 31.84 | 2 | 73,045 | $ | 32.72 | 0.7 | ||||||||||||||
$35.92 - $42.24 | 116,410 | 3.3 | $ | 37.3 | 0.6 | 116,410 | $ | 37.3 | 0.6 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
945,802 | 5.8 | $ | 23.34 | $ | 18.4 | 622,232 | $ | 22 | $ | 12.9 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||||||||
Represents the total pre-tax intrinsic value as of December 31, 2013 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $42.77 on December 31, 2013. | |||||||||||||||||||||||
The aggregate pre-tax intrinsic value of stock options exercised for the years ended December 31, 2013, 2012 and 2011 was $9.8 million, $5.1 million and $2.9 million, respectively. | |||||||||||||||||||||||
The following table summarizes the status of the Company's unvested stock options as of December 31, 2013 and activity for the year then ended: | |||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Stock Options | Grant Date Fair Value | ||||||||||||||||||||||
Outstanding — December 31, 2012 | 345,031 | $ | 8.26 | ||||||||||||||||||||
Add: Options granted | 111,150 | $ | 9.61 | ||||||||||||||||||||
Less: Options vested | 124,743 | $ | 7.23 | ||||||||||||||||||||
Less: Options forfeited/cancelled | 3,002 | $ | 8.54 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Outstanding — December 31, 2013 | 328,436 | $ | 9.11 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
As of December 31, 2013, certain participants met age and service requirements that allowed their options to qualify for accelerated vesting upon retirement. As of December 31, 2013, there were approximately 60,000 stock options subject to accelerated vesting that such participants would have been eligible to exercise if they had retired as of such date. The aggregate grant date fair value of options subject to accelerated vesting was $0.5 million. For the year ended December 31, 2013, stock-based compensation expense for such options was $0.4 million. For the year ended December 31, 2013, the aggregate grant date fair value of options vested, including options subject to accelerated vesting, was $1.4 million. Stock options that reflect accelerated vesting for expense recognition become exercisable according to the contract terms of the stock option grant. | |||||||||||||||||||||||
Performance Shares/RSUs | |||||||||||||||||||||||
For the year ended December 31, 2013, the Company granted target awards of 79,000 Performance Units. The measurement period for the Performance Units is January 1, 2013 through December 31, 2013. RSUs equal to not less than 40 percent and not more than 200 percent of the Performance Unit target will be awarded based on the Company's growth in return on invested capital, consolidated revenue growth, the percentage of consolidated free cash flow to revenue and total return to shareholders relative to the companies in the Russell 2000® Value small cap index. The RSUs will vest on December 31, 2015. During the vesting period, the holders of these RSUs are entitled to dividends, but the RSUs do not have voting rights and are subject to forfeiture due to termination of employment and other conditions. For the year ended December 31, 2013, 95,000 RSUs or approximately 120 percent of the Performance Unit targets were earned. The market price on the date of grant for the Performance Units was $31.23 per share. The Company is recognizing stock-based compensation expense pro-rata over the vesting term of the RSUs. | |||||||||||||||||||||||
For the year ended December 31, 2013, the Company awarded 11,270 RSUs to members of the Board of Directors (the "Director Awards"). The weighted average grant date fair value of the Director Awards was $31.07 per share and the awards vest one year from the date of grant. During the vesting period, the holders of Director Awards are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer a member of the Board of Directors. | |||||||||||||||||||||||
The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||
RSUs | Weighted- | Performance | Weighted- | ||||||||||||||||||||
Average Grant | Shares | Average Grant | |||||||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||||||||
Outstanding — December 31, 2010 | 387,560 | $ | 13.97 | 205,800 | $ | 10.59 | |||||||||||||||||
Shares granted (a) | 55,523 | $ | 14.68 | 124,800 | $ | 27.32 | |||||||||||||||||
Shares vested | (81,276 | ) | $ | 12.81 | — | — | |||||||||||||||||
Performance Shares vested | 693,208 | $ | 7.74 | (330,000 | ) | $ | 16.94 | ||||||||||||||||
Shares expired or cancelled | (9,185 | ) | $ | 25.36 | (600 | ) | $ | 20.56 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2011 | 1,045,830 | $ | 9.87 | — | — | ||||||||||||||||||
Shares granted (a) | 12,912 | $ | 22.72 | 103,000 | $ | 36.13 | |||||||||||||||||
Shares vested | (837,179 | ) | $ | 8.23 | — | — | |||||||||||||||||
Shares expired or cancelled | — | — | (5,100 | ) | $ | 36.13 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2012 | 221,563 | $ | 16.81 | 97,900 | $ | 36.13 | |||||||||||||||||
Shares granted (a) | 12,220 | $ | 31.26 | 78,900 | $ | 49.28 | |||||||||||||||||
Shares vested | (220,762 | ) | $ | 17.23 | — | — | |||||||||||||||||
Performance Shares vested | 145,871 | $ | 24.25 | (97,900 | ) | $ | 36.13 | ||||||||||||||||
Shares expired or cancelled | (6,701 | ) | $ | 19.73 | (1,900 | ) | $ | 49.28 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2013 (b) | 152,191 | $ | 24.36 | 77,000 | $ | 49.28 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
(a) | |||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, includes 950 RSUs, 887 RSUs and 48,323 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. | |||||||||||||||||||||||
(b) | |||||||||||||||||||||||
The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2013 was $6.3 million. | |||||||||||||||||||||||
The aggregate pre-tax intrinsic value of restricted stock and RSUs that vested for the years ended December 31, 2013, 2012 and 2011 was $9.3 million, $21.6 million and $1.7 million, respectively. | |||||||||||||||||||||||
Excess Tax Benefits | |||||||||||||||||||||||
ASC Topic 718 requires the reporting of excess tax benefits related to the exercise or vesting of stock-based awards as cash provided by financing activities within the statement of cash flows. Excess tax benefits represent the difference between the tax deduction the Company will receive on its tax return for compensation recognized by employees upon the vesting or exercise of stock-based awards and the tax benefit recognized for the grant date fair value of such awards. As of December 31, 2013, 2012 and 2011, because the Company had unused NOLs its excess tax benefits did not result in a reduction in taxes paid and therefore a reduction in cash flow from operations is recorded to offset the amount of excess tax benefits reported in cash flows from financing activities. For the years ended December 31, 2013, 2012 and 2011, the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $2.6 million, $6.1 million and $1.0 million, respectively. | |||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 9. Stockholders' Equity | |
Common Stock | |
The Company has authorized 100 million shares of Common Stock. Holders of the Company's Common Stock are entitled to one vote per share. | |
In May 2013, the Company's Board of Directors authorized a program that would allow the Company to repurchase up to $10 million of its outstanding Common Stock through May 2014 (the "2013 Stock Purchase Plan"). The Company had a similarly-sized program in place during the preceding 12 months that expired in May 2013 (the "2012 Stock Purchase Plan"). For the year ended December 31, 2012, the Company acquired 158,000 shares of Common Stock at an aggregate cost of $4.1 million under the 2012 Stock Purchase Plan. For the year ended December 31, 2013, there were no purchases under either stock purchase plan. For the year ended December 31, 2011, the Company did not have a stock purchase plan. | |
Purchases under the 2013 Stock Purchase Plan will be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The program does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time. The 2013 Stock Purchase Plan is expected to be funded using cash on hand or borrowings under the Company's existing revolving credit facility. | |
For the years ended December 31, 2013, 2012 and 2011, the Company acquired 111,000 shares, 302,000 shares and 25,000 shares of Common Stock, respectively, at a cost of $4.6 million, $7.6 million and $0.5 million, respectively, for shares surrendered by employees to pay taxes due on vested restricted stock awards and SARs exercised. | |
Each share of Common Stock contains a preferred stock purchase right that is associated with the share. These preferred stock purchase rights are transferred only with shares of Common Stock. The preferred stock purchase rights become exercisable and separately certificated only upon a "Rights Distribution Date" as that term is defined in the stockholder rights agreement adopted by the Company at the time of the Spin-Off. In general, a Rights Distribution Date occurs ten business days following either of these events: (i) a person or group has acquired or obtained the right to acquire beneficial ownership of 15 percent or more of the outstanding shares of our Common Stock then outstanding or (ii) a tender offer or exchange offer is commenced that would result in a person or group acquiring 15 percent or more of the outstanding shares of our Common Stock then outstanding. | |
Preferred Stock | |
The Company has authorized 20 million shares of $0.01 par value preferred stock. The preferred stock may be issued in one or more series and with such designations and preferences for each series as shall be stated in the resolutions providing for the designation and issue of each such series adopted by the Board of Directors of the Company. The Board of Directors is authorized by the Company's articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. No shares of preferred stock have been issued by the Company. | |
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments | ' | ||||
Commitments | ' | ||||
Note 10. Commitments | |||||
Leases | |||||
The future minimum obligations under operating leases having a noncancelable term in excess of one year as of December 31, 2013, are as follows: | |||||
2014 | $ | 1.8 | |||
2015 | 1.2 | ||||
2016 | 0.8 | ||||
2017 | 0.3 | ||||
2018 | — | ||||
Thereafter | — | ||||
| | | | | |
Future minimum lease obligations | $ | 4.1 | |||
| | | | | |
| | | | | |
For the years ended December 31, 2013, 2012 and 2011 rent expense under operating leases was $4.5 million, $4.2 million and $3.2 million, respectively. | |||||
Purchase Commitments | |||||
The Company has certain minimum purchase commitments that extend beyond December 31, 2013. Commitments under these contracts are approximately $7.6 million, $1.0 million, $1.0 million and $1.0 million for the years ended December 31, 2014, 2015, 2016 and 2017, respectively. Such purchase commitments for the year ended December 31, 2014 are primarily for coal contracts. Although the Company is primarily liable for payments on the above-mentioned leases and purchase commitments, management believes exposure to losses, if any, under these arrangements is not material. | |||||
Contingencies_and_Legal_Matter
Contingencies and Legal Matters | 12 Months Ended |
Dec. 31, 2013 | |
Contingencies and Legal Matters | ' |
Contingencies and Legal Matters | ' |
Note 11. Contingencies and Legal Matters | |
Litigation | |
The Company is involved in certain legal actions and claims arising in the ordinary course of business. While the outcome of these legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claim which is pending or threatened, either individually or on a combined basis, will not have a material effect on the consolidated financial condition, results of operations or liquidity of the Company. | |
Income Taxes | |
The Company is continuously undergoing examination by the Internal Revenue Service (the "IRS") as well as various state and foreign jurisdictions. The IRS and other taxing authorities routinely challenge certain deductions and credits reported by the Company on its income tax returns. See Note 5, "Income Taxes" for additional detail. | |
German Tax Audits — Tax Years 2006 to 2007 | |
In November 2010, the Company received a tax examination report from the German tax authorities challenging the validity of certain interest expense deductions claimed on the Company's tax returns for the years 2006 and 2007. In August 2011, the Company received tax assessments totaling €3.7 million from the German tax authorities and submitted an appeal challenging these assessments. The Company paid a total of €1.9 million against the August 2011 tax assessments and reflected these payments as assets (in "Income taxes receivable") in recognition that such amounts would be treated as prepayments against any assessments ultimately owed. During the first quarter of 2013, the Company reached a settlement with the German tax authorities for all issues related to the tax examination. The settlement resulted in a revised tax assessment of €0.5 million, which was approximately equal to the Company's liability for uncertain tax positions related to this issue at December 31, 2012. For the year ended December 31, 2013, the Company received refunds of the above tax prepayments of €1.4 million. | |
As of December 31, 2013, the Company reflected a liability for unrecognized tax benefits based on an assessment of the likelihood of alternative outcomes related to certain ongoing interest expense deductions through December 31, 2013. Management believes it is remote that the Company's liability for unrecognized tax benefits related to these matters will significantly increase within the next 12 months. | |
Indemnifications | |
Pursuant to a Distribution Agreement, an Employee Matters Agreement and a Tax Sharing Agreement, the Company has agreed to indemnify Kimberly-Clark for certain liabilities or risks related to the Spin-Off. Many of the potential indemnification liabilities under these agreements are unknown, remote or highly contingent. Furthermore, even in the event that an indemnification claim is asserted, liability for indemnification is subject to determination under the terms of the applicable agreement. For these reasons, the Company is unable to estimate the maximum potential amount of the possible future liability under the indemnity provisions of these agreements. However, the Company accrues for any potentially indemnifiable liability or risk under these agreements for which it believes a future payment is probable and a range of loss can be reasonably estimated. As of December 31, 2013, management believes the Company's liability, if any, under such indemnification obligations was not material to the consolidated financial statements. | |
Environmental, Health and Safety Matters | |
The Company is subject to federal, state and local laws, regulations and ordinances relating to various environmental, health and safety matters. The Company is in compliance with, or is taking actions designed to ensure compliance with, these laws, regulations and ordinances. However, the nature of the Company's business exposes it to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. Except for certain orders issued by environmental, health and safety regulatory agencies, with which management believes the Company is in compliance and which management believes are immaterial to the results of operations of the Company's business, Neenah is not currently named as a party in any judicial or administrative proceeding relating to environmental, health and safety matters. | |
While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental, health and safety laws, regulations and ordinances, management believes that the Company's future cost of compliance with environmental, health and safety laws, regulations and ordinances, and its exposure to liability for environmental, health and safety claims will not have a material effect on its financial condition, results of operations or liquidity. However, future events, such as changes in existing laws and regulations or contamination of sites owned, operated or used for waste disposal by the Company (including currently unknown contamination and contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on the Company's financial condition, results of operations or liquidity. | |
The Company incurs capital expenditures necessary to meet legal requirements and otherwise relating to the protection of the environment at its facilities in the United States and internationally. For these purposes, the Company has planned capital expenditures for environmental projects during the period 2014 through 2016 of approximately $1 million to $2 million annually. The Company's anticipated capital expenditures for environmental projects are not expected to have a material effect on our financial condition, results of operations or liquidity. | |
Employees and Labor Relations | |
As of December 31, 2013, the Company had approximately 1,875 regular full-time employees of whom 735 hourly and 360 salaried employees were located in the United States and 495 hourly and 285 salaried employees were located in Germany. | |
Hourly employees at the Whiting, Neenah, Munising and Appleton paper mills are represented by the United Steelworkers Union (the "USW"). In February 2013, the Company reached agreement with the USW on new collective bargaining agreements for all of its U.S. paper mills. The new agreements between the Whiting, Neenah, Munising and Appleton paper mills and the USW expire on January 31, 2018, June 30, 2018, July 14, 2018 and May 31, 2019, respectively. On pension matters, the Whiting, Neenah, Munising and Appleton paper mills have bargained jointly with the USW. The current agreement on pension matters with the USW will remain in effect until September 2019. | |
Approximately 50 percent of salaried employees and 80 percent of hourly employees of Neenah Germany are eligible to be represented by the Mining, Chemicals and Energy Trade Union, Industriegewerkschaft Bergbau, Chemie and Energie (the "IG BCE"). In June 2013, the IG BCE and a national trade association representing all employers in the industry signed a collective bargaining agreement covering union employees of Neenah Germany that expires in June 2015. Under German law union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE that expires in June 2015 cannot be determined. | |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Discontinued Operations | ' | ||||||||||
Note 12. Discontinued Operations | |||||||||||
In March 2010, the Company concluded its operating activities in Canada; however, the Company has certain continuing post-employment benefit obligations related to its former Canadian operations. | |||||||||||
The following table presents the results of discontinued operations: | |||||||||||
Year Ended December 31, | |||||||||||
2013 (a) | 2012 (b) | 2011 | |||||||||
Discontinued operations: | |||||||||||
Income (loss) before income taxes | $ | 4.2 | $ | (0.1 | ) | $ | (0.3 | ) | |||
Provision (benefit) for income taxes | 1.6 | (4.5 | ) | (0.1 | ) | ||||||
| | | | | | | | | | | |
Income (loss) from discontinued operations, net of income taxes | $ | 2.6 | $ | 4.4 | $ | (0.2 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
During the first quarter of 2013, the Company received a refund of excess pension contributions, less withholding taxes, from the terminated Terrace Bay pension plan. As a result, the Company recorded income before income taxes from discontinued operations of $4.2 million and a related provision for income taxes of $1.6 million. | |||||||||||
(b) | |||||||||||
In November 2012, audits of the 2007 and 2008 tax years were finalized with a finding of no additional taxes due. As a result, the Company recognized a non-cash tax benefit of $4.5 million related to the reversal of certain liabilities for uncertain income tax positions. | |||||||||||
Business_Segment_and_Geographi
Business Segment and Geographic Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Segment and Geographic Information | ' | ||||||||||
Business Segment and Geographic Information | ' | ||||||||||
Note 13. Business Segment and Geographic Information | |||||||||||
The Company reports its operations in two primary segments: Technical Products and Fine Paper. The technical products business is an international producer of transportation and other filter media and durable, saturated and coated substrates for industrial products backings and a variety of other end markets. The fine paper business is a supplier of premium writing, text and cover papers, bright papers, and luxury packaging and premium label specialty papers in North America. Each segment employs different technologies and marketing strategies. In addition, the Company reports in the Other segment results for the non-premium Index, Tag and Vellum Bristol product lines acquired as part of the purchase of the Wausau brands. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. The accounting policies of the reportable operating segments are the same as those described in Note 2, "Summary of Significant Accounting Policies." | |||||||||||
Business Segments | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net sales | |||||||||||
Technical Products | $ | 416.1 | $ | 406.6 | $ | 421.1 | |||||
Fine Paper | 401.8 | 372.7 | 274.9 | ||||||||
Other | 26.6 | 29.5 | — | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 844.5 | $ | 808.8 | $ | 696 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Operating income (loss) | |||||||||||
Technical Products | $ | 38.6 | $ | 37.6 | $ | 33.8 | |||||
Fine Paper (a) | 59.8 | 50 | 39.7 | ||||||||
Other | 1.2 | 2.4 | — | ||||||||
Unallocated corporate costs (b) | (15.8 | ) | (19.6 | ) | (16.9 | ) | |||||
| | | | | | | | | | | |
Consolidated | $ | 83.8 | $ | 70.4 | $ | 56.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Operating income for the years ended December 31, 2013 and 2012 include acquisition related integration costs of $0.4 million and $5.8 million, respectively. | |||||||||||
(b) | |||||||||||
Unallocated corporate costs for the year ended December 31, 2013 includes a SERP settlement charges of $0.2 million and a loss on the early extinguishment of debt of $0.5 million. Unallocated corporate costs for the year ended December 31, 2012 includes a SERP settlement charges of $3.5 million and a loss on the early extinguishment of debt of $0.2 million. | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation and amortization | |||||||||||
Technical Products | $ | 16.4 | $ | 15.7 | $ | 17.6 | |||||
Fine Paper | 9.3 | 9.4 | 9.5 | ||||||||
Corporate | 3.7 | 3.7 | 3.9 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 29.4 | $ | 28.8 | $ | 31 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Capital expenditures | |||||||||||
Technical Products | $ | 21.5 | $ | 14.7 | $ | 18 | |||||
Fine Paper | 5 | 10.2 | 4.2 | ||||||||
Corporate | 2.2 | 0.2 | 0.9 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 28.7 | $ | 25.1 | $ | 23.1 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Total Assets (a) | |||||||||||
Technical Products | $ | 365.9 | $ | 348.5 | |||||||
Fine Paper | 206.9 | 214 | |||||||||
Corporate and other (b) | 103.1 | 48.2 | |||||||||
| | | | | | | | ||||
Total | $ | 675.9 | $ | 610.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
(a) | |||||||||||
Segment identifiable assets are those that are directly used in the segments operations. | |||||||||||
(b) | |||||||||||
Corporate assets are primarily cash, deferred income taxes and deferred financing costs. | |||||||||||
Geographic Information | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net sales | |||||||||||
United States | $ | 564.4 | $ | 543.4 | $ | 416.2 | |||||
Europe | 280.1 | 265.4 | 279.8 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 844.5 | $ | 808.8 | $ | 696 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Total Assets | |||||||||||
United States | $ | 365.1 | $ | 322.5 | |||||||
Canada | 1 | 0.2 | |||||||||
Europe | 309.8 | 288 | |||||||||
| | | | | | | | ||||
Total | $ | 675.9 | $ | 610.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Net sales are attributed to geographic areas based on the physical location of the selling entities. | |||||||||||
Concentrations | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, sales to the three largest customers of the fine paper business represented approximately 30 percent, 30 percent and 40 percent, respectively, of its total sales. For the years ended December 31, 2013, 2012 and 2011, no single customer accounted for more than 10 percent of the Company's consolidated revenue. Except for certain specialty latex grades and specialty softwood pulp used by Technical Products, management is not aware of any significant concentration of business transacted with a particular supplier that could, if suddenly eliminated, have a material effect on its operations. | |||||||||||
Supplemental_Data
Supplemental Data | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Data | ' | ||||||||||
Supplemental Data | ' | ||||||||||
Note 14. Supplemental Data | |||||||||||
Supplemental Statement of Operations Data | |||||||||||
Summary of Advertising and Research and Development Expenses | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Advertising expense | $ | 7.6 | $ | 8.4 | $ | 6.2 | |||||
Research and development expense | 6.1 | 5.6 | 5.4 | ||||||||
(a) | |||||||||||
Advertising expense and research and development expense are recorded in selling, general and administrative expenses on the consolidated statements of operations. | |||||||||||
Supplemental Balance Sheet Data | |||||||||||
Summary of Accounts Receivable — net | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
From customers | $ | 92 | $ | 81.5 | |||||||
Less allowance for doubtful accounts and sales discounts | (1.5 | ) | (1.9 | ) | |||||||
| | | | | | | | ||||
Total | $ | 90.5 | $ | 79.6 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of Inventories | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Inventories by Major Class: | |||||||||||
Raw materials | $ | 20.3 | $ | 20.8 | |||||||
Work in progress | 22.9 | 24.9 | |||||||||
Finished goods | 67.3 | 66.3 | |||||||||
Supplies and other | 4.5 | 3.7 | |||||||||
| | | | | | | | ||||
115 | 115.7 | ||||||||||
Excess of FIFO over LIFO cost | (13.9 | ) | (12.8 | ) | |||||||
| | | | | | | | ||||
Total | $ | 101.1 | $ | 102.9 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The FIFO value of inventories valued on the LIFO method was $86.6 million and $91.8 million at December 31, 2013 and 2012, respectively. | |||||||||||
Summary of Prepaid and Other Current Assets | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Prepaid and other current assets | $ | 10.3 | $ | 7.7 | |||||||
Spare parts | 6.7 | 6.4 | |||||||||
| | | | | | | | ||||
Total | $ | 17 | $ | 14.1 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of Property, Plant and Equipment — Net | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Land and land improvements | $ | 21.7 | $ | 20.8 | |||||||
Buildings | 114.1 | 105.1 | |||||||||
Machinery and equipment | 496.3 | 465.1 | |||||||||
Construction in progress | 5 | 13.7 | |||||||||
| | | | | | | | ||||
637.1 | 604.7 | ||||||||||
Less accumulated depreciation | 375.4 | 349.9 | |||||||||
| | | | | | | | ||||
Net Property, Plant and Equipment | $ | 261.7 | $ | 254.8 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $26.7 million, $26.2 million and $28.2 million, respectively. Interest expense capitalized as part of the costs of capital projects was $0.2 million, $0.1 million and $0.1 million, respectively, for the years ended December 31, 2013, 2012 and 2011. | |||||||||||
Summary of Accrued Expenses | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Accrued salaries and employee benefits | $ | 23.1 | $ | 23.4 | |||||||
Amounts due to customers | 7.5 | 7.9 | |||||||||
Liability for uncertain income tax positions | 0.4 | 1.6 | |||||||||
Accrued interest | 1.2 | 0.8 | |||||||||
Accrued income taxes | 2 | 3.1 | |||||||||
Other | 11.6 | 10.8 | |||||||||
| | | | | | | | ||||
Total | $ | 45.8 | $ | 47.6 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of Noncurrent Employee Benefits | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Pension benefits | $ | 57.1 | $ | 83.7 | |||||||
Post-employment benefits other than pensions | 40.6 | 47.4 | |||||||||
| | | | | | | | ||||
Total (a) | $ | 97.7 | $ | 131.1 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
(a) | |||||||||||
Includes $4.0 million and $4.8 million in long-term disability benefits due to Terrace Bay retirees and SRCP benefits as of December 31, 2013 and 2012, respectively. | |||||||||||
Supplemental Cash Flow Data | |||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash paid during the year for interest, net of interest expense capitalized | $ | 9.9 | $ | 13.1 | $ | 15.2 | |||||
Cash paid during the year for income taxes, net of refunds | 5.4 | 6.7 | 4.7 | ||||||||
Non-cash investing activities: | |||||||||||
Liability for equipment acquired | 1.8 | 2.2 | 2.4 | ||||||||
Net cash provided by (used in) changes in working capital | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Accounts receivable | $ | (9.4 | ) | $ | (7.7 | ) | $ | (1.9 | ) | ||
Inventories | 4.8 | (26.8 | ) | (0.1 | ) | ||||||
Income taxes (receivable) payable | (0.1 | ) | (1.1 | ) | (0.5 | ) | |||||
Prepaid and other current assets | (2.7 | ) | — | (0.1 | ) | ||||||
Accounts payable | 1.3 | 5 | 0.5 | ||||||||
Accrued expenses | (0.5 | ) | 9.7 | (5.1 | ) | ||||||
| | | | | | | | | | | |
Total | $ | (6.6 | ) | $ | (20.9 | ) | $ | (7.2 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Unaudited_Quarterly_Data
Unaudited Quarterly Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Unaudited Quarterly Data | ' | ||||||||||||||||
Unaudited Quarterly Data | ' | ||||||||||||||||
Note 15. Unaudited Quarterly Data | |||||||||||||||||
2013 Quarters | |||||||||||||||||
First | Second | Third | Fourth | Year (a)(b)(c) | |||||||||||||
Net Sales | $ | 213.2 | $ | 212.3 | $ | 214.1 | $ | 204.9 | $ | 844.5 | |||||||
Gross Profit | 43.5 | 42.8 | 37.1 | 42.2 | 165.6 | ||||||||||||
Operating Income | 22.2 | 22.6 | 16.4 | 22.6 | 83.8 | ||||||||||||
Income From Continuing Operations | 12.1 | 12.8 | 11.4 | 13.1 | 49.4 | ||||||||||||
Earnings Per Common Share From Continuing Operations: | |||||||||||||||||
Basic | $ | 0.74 | $ | 0.79 | $ | 0.69 | $ | 0.8 | $ | 3.02 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | $ | 0.73 | $ | 0.77 | $ | 0.68 | $ | 0.78 | $ | 2.96 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||
Includes integration/restructuring costs of $0.6 million. | |||||||||||||||||
(b) | |||||||||||||||||
Includes a loss on the early extinguishment of debt of $0.5 million. | |||||||||||||||||
(c) | |||||||||||||||||
Includes a SERP settlement charge of $0.2 million. | |||||||||||||||||
2012 Quarters | |||||||||||||||||
First (b) | Second | Third | Fourth | Year (a)(b)(c) | |||||||||||||
Net Sales | $ | 198.2 | $ | 211.7 | $ | 206.3 | $ | 192.6 | $ | 808.8 | |||||||
Gross Profit | 41.9 | 43.8 | 35.7 | 37.7 | 159.1 | ||||||||||||
Operating Income | 16.2 | 22 | 16.3 | 15.9 | 70.4 | ||||||||||||
Income From Continuing Operations | 8.9 | 12.7 | 9.2 | 9.1 | 39.9 | ||||||||||||
Earnings Per Common Share From Continuing Operations: | |||||||||||||||||
Basic | $ | 0.55 | $ | 0.78 | $ | 0.56 | $ | 0.56 | $ | 2.46 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | $ | 0.54 | $ | 0.77 | $ | 0.55 | $ | 0.55 | $ | 2.41 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||
Includes acquisition integration costs of $5.8 million. | |||||||||||||||||
(b) | |||||||||||||||||
Includes a SERP settlement charge of $3.5 million. | |||||||||||||||||
(c) | |||||||||||||||||
Includes a loss on the early extinguishment of debt of $0.6 million. | |||||||||||||||||
< END XBRL NOTE > | |||||||||||||||||
SCHEDULE_II_SCHEDULE_OF_VALUAT
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Description | Balance at | Charged to | Charged | Write-offs | Balance at | ||||||||||||
Beginning | Costs and | to Other | and | End of Period | |||||||||||||
of Period | Expenses | Accounts | Reclassifications | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Allowances deducted from assets to | |||||||||||||||||
which they apply | |||||||||||||||||
Allowance for doubtful accounts | $ | 1.4 | $ | 0.4 | $ | — | $ | (0.9 | ) | $ | 0.9 | ||||||
Allowance for sales discounts | 0.5 | 0.1 | — | — | 0.6 | ||||||||||||
Valuation allowance — deferred | 0.4 | — | — | (0.4 | ) | — | |||||||||||
income taxes | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Allowances deducted from assets to | |||||||||||||||||
which they apply | |||||||||||||||||
Allowance for doubtful accounts | $ | 1.4 | $ | 0.2 | $ | — | $ | (0.2 | ) | $ | 1.4 | ||||||
Allowance for sales discounts | 0.5 | — | — | — | 0.5 | ||||||||||||
Valuation allowance — deferred | 1.7 | (1.3 | ) | — | — | 0.4 | |||||||||||
income taxes | |||||||||||||||||
December 31, 2011 | |||||||||||||||||
Allowances deducted from assets to | |||||||||||||||||
which they apply | |||||||||||||||||
Allowance for doubtful accounts | $ | 1.4 | $ | 0.6 | $ | — | $ | (0.6 | ) | $ | 1.4 | ||||||
Allowance for sales discounts | 0.5 | — | — | — | 0.5 | ||||||||||||
Valuation allowance — deferred | 1.7 | — | — | — | 1.7 | ||||||||||||
income taxes |
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Background and Basis of Presentation | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||
Use of Estimates | ' | |||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, pension and postretirement benefits, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, future cash flows associated with impairment testing for tangible and intangible long-lived assets, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. | ||||||||||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||
The Company recognizes sales revenue when all of the following have occurred: (1) delivery has occurred, (2) persuasive evidence of an agreement exists, (3) pricing is fixed or determinable, and (4) collection is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership. The timing of revenue recognition is largely dependent on shipping terms. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. | ||||||||||||||||||||||||||
The Company's businesses manage seasonal peaks in inventory demand by providing certain customers with finished goods inventory on consignment. The Company accounts for such inventory as finished goods until title to the inventory is transferred and the customer assumes the risks and rewards of ownership at which time the Company recognizes sales revenue. | ||||||||||||||||||||||||||
Earnings per Share ("EPS") | ' | |||||||||||||||||||||||||
Earnings per Share ("EPS") | ||||||||||||||||||||||||||
The Company computes basic earnings per share ("EPS") in accordance with Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share ("ASC Topic 260"). In accordance with ASC Topic 260, share-based awards with non-forfeitable dividends are classified as participating securities. In calculating basic earnings per share, this method requires net income to be reduced by the amount of dividends declared in the current period for each participating security and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period. Undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed. Holders of restricted stock and restricted stock units ("RSUs") have contractual participation rights that are equivalent to those of common stockholders. Therefore, the Company allocates undistributed earnings to restricted stock, RSUs and common stockholders based on their respective ownership percentage, as of the end of the period. | ||||||||||||||||||||||||||
ASC Topic 260 also requires companies with participating securities to calculate diluted earnings per share using the "Two Class" method. The "Two Class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lowest diluted earnings per share amount under the two calculations subject to the anti-dilution provisions of ASC Topic 260. | ||||||||||||||||||||||||||
Diluted EPS was calculated to give effect to all potentially dilutive non-participating common share equivalents using the "Treasury Stock" method. Outstanding stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Units") represent the only potentially dilutive non-participating security effects on the Company's weighted-average shares. For the years ended December 31, 2013, 2012 and 2011, approximately 450,000, 1,015,000 and 1,365,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the period the options were outstanding. | ||||||||||||||||||||||||||
The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): | ||||||||||||||||||||||||||
Earnings per basic common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.2 | ) | (0.7 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Income from continuing operations available to common stockholders | 48.6 | 38.7 | 28.6 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net income available to common stockholders | $ | 51.2 | $ | 43 | $ | 28.4 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Basic earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 3.02 | $ | 2.46 | $ | 1.91 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
$ | 3.18 | $ | 2.73 | $ | 1.9 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Earnings per diluted common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.1 | ) | (0.8 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Income from continuing operations available to common stockholders | 48.6 | 38.8 | 28.5 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net income available to common stockholders | $ | 51.2 | $ | 43.1 | $ | 28.3 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
Add: Assumed incremental shares under stock-based compensation plans | 331 | 320 | 675 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted average diluted shares | 16,403 | 16,072 | 15,649 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 2.96 | $ | 2.41 | $ | 1.82 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
$ | 3.12 | $ | 2.68 | $ | 1.81 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||||
Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2013 and 2012, $0.5 million and $0.7 million, respectively, of the Company's cash and cash equivalent is restricted to the payment of postretirement benefits for certain former Fox River executives. | ||||||||||||||||||||||||||
Inventories | ' | |||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||
U.S. inventories are valued at the lower of cost, using the Last-In, First-Out (LIFO) method for financial reporting purposes, or market. German inventories are valued at the lower of cost, using a weighted-average cost method, or market. Cost includes labor, materials and production overhead. | ||||||||||||||||||||||||||
Foreign Currency | ' | |||||||||||||||||||||||||
Foreign Currency | ||||||||||||||||||||||||||
Balance sheet accounts of Neenah Germany and Neenah Canada are translated from Euros and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany and Canada are recorded as unrealized foreign currency translation adjustments within accumulated other comprehensive income (loss) in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in other (income) expense — net in the consolidated statements of operations. | ||||||||||||||||||||||||||
Property and Depreciation | ' | |||||||||||||||||||||||||
Property and Depreciation | ||||||||||||||||||||||||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in other (income) expense — net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 18 years, 13 years and 10 years, respectively. For income tax purposes, accelerated methods of depreciation are used. | ||||||||||||||||||||||||||
Estimated useful lives are periodically reviewed and changed when warranted. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their cost may not be recoverable. An impairment loss would be recognized when estimated undiscounted future pre-tax cash flows from the use of an asset are less than its carrying amount. Measurement of an impairment loss is based on the excess of the carrying amount of the asset over its fair value. Fair value is generally measured using discounted cash flows. | ||||||||||||||||||||||||||
The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is charged to operations as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. | ||||||||||||||||||||||||||
The Company accounts for asset retirement obligations ("AROs") in accordance with ASC Topic 410, Asset Retirements and Environmental Obligations, which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2013, the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. | ||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||||
The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed. | ||||||||||||||||||||||||||
Under ASC Topic 350, Intangibles — Goodwill and Other ("ASC Topic 350"), goodwill is subject to impairment testing at least annually. ASC Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the two-step impairment test is necessary, a fair-value-based test is applied at the reporting unit level, which is generally one level below the operating segment level. The test compares the fair value of an entity's reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The Company estimates the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit. An adjustment to goodwill will be recorded for any goodwill that is determined to be impaired. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. | ||||||||||||||||||||||||||
The Company tested goodwill for impairment as of November 30, 2013. In the Company's testing of goodwill for impairment, it estimated the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. Significant assumptions used in developing the discounted operating cash flow approach were revenue growth rates and pricing, costs for manufacturing inputs, levels of capital investment and estimated cost of capital for high, medium and low growth environments. As of November 30, 2013 no impairment was indicated. | ||||||||||||||||||||||||||
Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment. Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually. See Note 4, "Goodwill and Other Intangible Assets." | ||||||||||||||||||||||||||
Research and Development Expense | ' | |||||||||||||||||||||||||
Research and Development Expense | ||||||||||||||||||||||||||
Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 14, "Supplemental Data — Supplemental Statement of Operations Data." | ||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
The Company measures the fair value of pension plan assets in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described below: | ||||||||||||||||||||||||||
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plan has the ability to access. | ||||||||||||||||||||||||||
Level 2 — Inputs to the valuation methodology include: | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Quoted prices for identical or similar assets or liabilities in inactive markets; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Inputs other than quoted prices that are observable for the asset or liability; | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||||||||||||
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||||||||||||||||||||||||||
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||||||||||||||||
The asset's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques attempt to maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the fair value of the Company's pension plan assets: | ||||||||||||||||||||||||||
Assets at Fair Value at December 31, | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Domestic | $ | — | $ | — | $ | 49.4 | $ | 53.2 | $ | — | $ | — | $ | 49.4 | $ | 53.2 | ||||||||||
International | — | — | 42.4 | 43.2 | — | — | 42.4 | 43.2 | ||||||||||||||||||
Fixed income | — | — | 168.4 | 141.9 | — | — | 168.4 | 141.9 | ||||||||||||||||||
Cash and equivalents | 1.1 | 1 | — | — | — | — | 1.1 | 1 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets at fair value | $ | 1.1 | $ | 1 | $ | 260.2 | $ | 238.3 | $ | — | $ | — | $ | 261.3 | $ | 239.3 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||||||||
Pension plan assets are invested in a master collective trust (the "Master Trust") which holds mutual funds and common stock. Shares of mutual funds and common stock owned by the Master Trust are valued at quoted market prices. Pension plan assets invested in the Master Trust are presented at fair value, which has been determined based on the fair value of the underlying investments of the Master Trust. | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using current market prices for the Company's publicly traded debt or rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt at December 31, 2013 and 2012. | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 163.7 | $ | — | $ | — | ||||||||||||||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||||||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||||||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||||||||||||||
Neenah Germany revolving line of credit (variable rates) | 19.3 | 19.3 | — | — | ||||||||||||||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.2 | 5.1 | 6.6 | 6.9 | ||||||||||||||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.4 | 10.9 | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total Debt | $ | 211.9 | $ | 199 | $ | 182.3 | $ | 182.6 | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
(a) | ||||||||||||||||||||||||||
Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. | ||||||||||||||||||||||||||
The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and unrealized holding gains and losses are reported in other comprehensive income until realized upon sale. At December 31, 2013, the Company had $2.6 million in marketable securities classified as "Other Assets" on the consolidated balance sheet. The cost of such marketable securities was $2.5 million. Fair value for the Company's marketable securities was estimated from Level 2 measurements. The Company's marketable securities are restricted to the payment of benefits under its supplemental retirement contribution plan (the "SERP"). | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Comprehensive income (loss) includes, in addition to net income (loss), gains and losses recorded directly into stockholders' equity on the consolidated balance sheet. These gains and losses are referred to as other comprehensive income items. Accumulated other comprehensive income (loss) consists of foreign currency translation gains and (losses), deferred gains and (losses) on "available-for-sale" securities, and adjustments related to pensions and other post-retirement benefits. The Company does not provide income taxes for foreign currency translation adjustments related to indefinite investments in foreign subsidiaries. | ||||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Unrealized foreign currency translation gains | $ | 17.9 | $ | 9.2 | ||||||||||||||||||||||
Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $26.3 million and $34.9 million, respectively) | (45.2 | ) | (59.1 | ) | ||||||||||||||||||||||
Unrealized gain on "available-for-sale" securities | — | 0.1 | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Accumulated other comprehensive loss | $ | (27.3 | ) | $ | (49.8 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Accounting Standards Changes | ' | |||||||||||||||||||||||||
Accounting Standards Changes | ||||||||||||||||||||||||||
As of December 31, 2013, no amendments to the ASC had been issued that will have or are reasonably likely to have a material effect on the Company's financial position, results of operations or cash flows. | ||||||||||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||
Schedule of computation of basic and diluted EPS | ' | |||||||||||||||||||||||||
The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): | ||||||||||||||||||||||||||
Earnings per basic common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.2 | ) | (0.7 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Income from continuing operations available to common stockholders | 48.6 | 38.7 | 28.6 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net income available to common stockholders | $ | 51.2 | $ | 43 | $ | 28.4 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Basic earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 3.02 | $ | 2.46 | $ | 1.91 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
$ | 3.18 | $ | 2.73 | $ | 1.9 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Earnings per diluted common share | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Income from continuing operations | $ | 49.4 | $ | 39.9 | $ | 29.3 | ||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | (0.8 | ) | (1.1 | ) | (0.8 | ) | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Income from continuing operations available to common stockholders | 48.6 | 38.8 | 28.5 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | 2.6 | 4.4 | (0.2 | ) | ||||||||||||||||||||||
Distributed and undistributed amounts allocated to participating securities | — | (0.1 | ) | — | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net income available to common stockholders | $ | 51.2 | $ | 43.1 | $ | 28.3 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted-average basic shares outstanding | 16,072 | 15,752 | 14,974 | |||||||||||||||||||||||
Add: Assumed incremental shares under stock-based compensation plans | 331 | 320 | 675 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Weighted average diluted shares | 16,403 | 16,072 | 15,649 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||
Continuing operations | $ | 2.96 | $ | 2.41 | $ | 1.82 | ||||||||||||||||||||
Discontinued operations | 0.16 | 0.27 | (0.01 | ) | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
$ | 3.12 | $ | 2.68 | $ | 1.81 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Schedule of fair value of Company's pension plan assets | ' | |||||||||||||||||||||||||
Assets at Fair Value at December 31, | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Domestic | $ | — | $ | — | $ | 49.4 | $ | 53.2 | $ | — | $ | — | $ | 49.4 | $ | 53.2 | ||||||||||
International | — | — | 42.4 | 43.2 | — | — | 42.4 | 43.2 | ||||||||||||||||||
Fixed income | — | — | 168.4 | 141.9 | — | — | 168.4 | 141.9 | ||||||||||||||||||
Cash and equivalents | 1.1 | 1 | — | — | — | — | 1.1 | 1 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets at fair value | $ | 1.1 | $ | 1 | $ | 260.2 | $ | 238.3 | $ | — | $ | — | $ | 261.3 | $ | 239.3 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||||||||
Pension plan assets are invested in a master collective trust (the "Master Trust") which holds mutual funds and common stock. Shares of mutual funds and common stock owned by the Master Trust are valued at quoted market prices. Pension plan assets invested in the Master Trust are presented at fair value, which has been determined based on the fair value of the underlying investments of the Master Trust. | ||||||||||||||||||||||||||
Schedule of the carrying value and the fair value of the Company's debt | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 163.7 | $ | — | $ | — | ||||||||||||||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||||||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||||||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||||||||||||||
Neenah Germany revolving line of credit (variable rates) | 19.3 | 19.3 | — | — | ||||||||||||||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.2 | 5.1 | 6.6 | 6.9 | ||||||||||||||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.4 | 10.9 | — | — | ||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Total Debt | $ | 211.9 | $ | 199 | $ | 182.3 | $ | 182.6 | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
(a) | ||||||||||||||||||||||||||
Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. | ||||||||||||||||||||||||||
Schedule of components of accumulated other comprehensive income (loss), net of applicable income taxes | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Unrealized foreign currency translation gains | $ | 17.9 | $ | 9.2 | ||||||||||||||||||||||
Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $26.3 million and $34.9 million, respectively) | (45.2 | ) | (59.1 | ) | ||||||||||||||||||||||
Unrealized gain on "available-for-sale" securities | — | 0.1 | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Accumulated other comprehensive loss | $ | (27.3 | ) | $ | (49.8 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||||
Gross | Accumulated | Net | ||||||||||||||
Amount | Impairment | |||||||||||||||
Losses | ||||||||||||||||
Balance at December 31, 2010 | $ | 91.4 | $ | (49.9 | ) | $ | 41.5 | |||||||||
Foreign currency translation | (2.3 | ) | 1.3 | (1.0 | ) | |||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2011 | 89.1 | (48.6 | ) | 40.5 | ||||||||||||
Foreign currency translation | 7 | (6.1 | ) | 0.9 | ||||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2012 | 96.1 | (54.7 | ) | 41.4 | ||||||||||||
Foreign currency translation | 4 | (2.3 | ) | 1.7 | ||||||||||||
| | | | | | | | | | | ||||||
Balance at December 31, 2013 | $ | 100.1 | $ | (57.0 | ) | $ | 43.1 | |||||||||
| | | | | | | | | | | ||||||
| | | | | | | | | | | ||||||
Schedule of intangible assets | ' | |||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Weighted average | Gross | Accumulated | Gross | Accumulated | ||||||||||||
amortization | Amount | Amortization | Amount | Amortization | ||||||||||||
period (years) | ||||||||||||||||
Amortizable intangible assets | ||||||||||||||||
Customer based intangibles | 15 | $ | 17.5 | $ | (7.6 | ) | $ | 16.3 | $ | (6.2 | ) | |||||
Trade names and trademarks | 10 | 5.8 | (4.2 | ) | 5.5 | (3.4 | ) | |||||||||
Acquired technology | 10 | 1.1 | (0.8 | ) | 1.1 | (0.7 | ) | |||||||||
| | | | | | | | | | | | | | | | |
Total amortizable intangible assets | 24.4 | (12.6 | ) | 22.9 | (10.3 | ) | ||||||||||
Trade names | Not amortized | 26.7 | — | 21.4 | — | |||||||||||
| | | | | | | | | | | | | | | | |
Total | $ | 51.1 | $ | (12.6 | ) | $ | 44.3 | $ | (10.3 | ) | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Schedule of difference between the effective income tax rate and the U.S. federal statutory income tax rate | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2013 | 2012 | 2012 | 2011 | 2011 | |||||||||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 25.5 | 35 | % | $ | 20 | 35 | % | $ | 14.5 | ||||||||
U.S. state income taxes, net of federal income tax effect | 2.3 | % | 1.7 | 1.9 | % | 1.1 | 1.8 | % | 0.7 | |||||||||||
Tax on foreign dividends | 2.8 | % | 2 | — | — | 3.6 | % | 1.5 | ||||||||||||
Research and development and other tax credits | (3.0 | )% | (2.2 | ) | — | — | — | — | ||||||||||||
Foreign tax rate differences (a) | (2.4 | )% | (1.7 | ) | (2.7 | )% | (1.6 | ) | (3.0 | )% | (1.3 | ) | ||||||||
Foreign financing structure (b) | (3.3 | )% | (2.4 | ) | (4.3 | )% | (2.4 | ) | (6.3 | )% | (2.6 | ) | ||||||||
Other differences — net | 0.7 | % | 0.5 | 0.1 | % | — | (2.0 | )% | (0.8 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Effective income tax rate | 32.1 | % | $ | 23.4 | 30 | % | $ | 17.1 | 29.1 | % | $ | 12 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
Represents the impact on the Company's effective tax rate due to changes in the mix of earnings among taxing jurisdictions with differing statutory rates. | ||||||||||||||||||||
(b) | ||||||||||||||||||||
Represents the impact on the Company's effective tax rate of the Company's financing strategies. | ||||||||||||||||||||
Schedule of the U.S. and foreign components of income from continuing operations before income taxes | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Income from continuing operations before income taxes: | ||||||||||||||||||||
U.S. | $ | 48 | $ | 35.8 | $ | 23.1 | ||||||||||||||
Foreign | 24.8 | 21.2 | 18.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 72.8 | $ | 57 | $ | 41.3 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of components of the provision (benefit) for income taxes | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Provision (benefit) for income taxes: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | (0.5 | ) | $ | (2.2 | ) | $ | 0.2 | ||||||||||||
State | 0.3 | — | 0.4 | |||||||||||||||||
Foreign | 5.9 | 8.8 | 3.9 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total current tax provision | 5.7 | 6.6 | 4.5 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Deferred: | ||||||||||||||||||||
Federal | 18.4 | 12 | 8.9 | |||||||||||||||||
State | — | 0.4 | 1.2 | |||||||||||||||||
Foreign | (0.7 | ) | (1.9 | ) | (2.6 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total deferred tax provision | 17.7 | 10.5 | 7.5 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total provision for income taxes | $ | 23.4 | $ | 17.1 | $ | 12 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of components of deferred tax assets and liabilities | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Net current deferred income tax assets | ||||||||||||||||||||
Net operating losses and credits | $ | 13.7 | $ | 18.9 | ||||||||||||||||
Inventory | 4.8 | 3.6 | ||||||||||||||||||
Accrued liabilities | 2.4 | 2.8 | ||||||||||||||||||
Employee benefits | 1.6 | 1.7 | ||||||||||||||||||
Other | 0.3 | 0.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Net current deferred income tax assets before valuation allowance | 22.8 | 27.3 | ||||||||||||||||||
Valuation allowance | — | (0.1 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net current deferred income tax assets | 22.8 | 27.2 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets | ||||||||||||||||||||
Net operating losses and credits | 10 | 16 | ||||||||||||||||||
Employee benefits | 22.3 | 38.2 | ||||||||||||||||||
Accelerated depreciation | (18.4 | ) | (18.4 | ) | ||||||||||||||||
Other | (0.6 | ) | (0.2 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets before valuation allowance | 13.3 | 35.6 | ||||||||||||||||||
Valuation allowance | — | (0.3 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax assets | 13.3 | 35.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total deferred income tax assets | $ | 36.1 | $ | 62.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax liability | ||||||||||||||||||||
Accelerated depreciation | $ | 18.8 | $ | 18.6 | ||||||||||||||||
Intangibles | 4.5 | 4.7 | ||||||||||||||||||
Interest limitation | (1.9 | ) | (5.2 | ) | ||||||||||||||||
Employee benefits | (5.2 | ) | (5.0 | ) | ||||||||||||||||
Net operating losses | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Other | (0.4 | ) | (0.4 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net noncurrent deferred income tax liabilities | $ | 15.6 | $ | 12.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of reconciliation of the total amounts of uncertain tax positions | ' | |||||||||||||||||||
For the Years Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Balance at January 1, | $ | 4.8 | $ | 8.4 | $ | 8.6 | ||||||||||||||
Increases in prior period tax positions | 0.2 | 4.4 | 0.2 | |||||||||||||||||
Decreases in prior period tax positions | (0.8 | ) | (7.5 | ) | (0.3 | ) | ||||||||||||||
Increases in current period tax positions | 1.3 | — | — | |||||||||||||||||
Decreases due to settlements with tax authorities | (1.3 | ) | (0.5 | ) | (0.1 | ) | ||||||||||||||
Increase from foreign exchange rate changes | 0.1 | — | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Balance at December 31, | $ | 4.3 | $ | 4.8 | $ | 8.4 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Debt | ' | ||||||||||||||||||||||
Schedule of long-term debt | ' | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
2021 Senior Notes (5.25% fixed rate) due May 2021 | $ | 175 | $ | — | |||||||||||||||||||
2014 Senior Notes (7.375% fixed rate) retired June 2013 | — | 90 | |||||||||||||||||||||
Revolving bank credit facility (variable rates) due November 2017 | — | 55.7 | |||||||||||||||||||||
Term Loan (variable rates) repaid June 2013 | — | 30 | |||||||||||||||||||||
Neenah Germany revolving lines of credit (variable rates) | 19.3 | — | |||||||||||||||||||||
Neenah Germany project financing (3.8% fixed rate) due in 16 equal semi-annual installments ending December 2016 | 5.2 | 6.6 | |||||||||||||||||||||
Second German Loan Agreement (2.5% fixed rate) due in 32 equal quarterly installments ending September 2022 | 12.4 | — | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total Debt | 211.9 | 182.3 | |||||||||||||||||||||
Less: Debt payable within one year | 21.4 | 4.7 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Long-term debt | $ | 190.5 | $ | 177.6 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of debt payments | ' | ||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
Debt payments | $ | 21.4 | $ | 3.3 | $ | 3.2 | $ | 1.6 | $ | 1.6 | $ | 180.8 | $ | 211.9 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||
Schedule of reconciliation of benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans | ' | |||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 325.3 | $ | 287.4 | $ | 46.7 | $ | 42.5 | ||||||||||||
Service cost | 5.3 | 4.6 | 1.8 | 1.8 | ||||||||||||||||
Interest cost | 13.5 | 14.1 | 1.8 | 2.1 | ||||||||||||||||
Currency | 1.9 | 1.1 | 0.1 | 0.1 | ||||||||||||||||
Actuarial (gain) loss | (12.3 | ) | 36.9 | (4.0 | ) | 3.2 | ||||||||||||||
Benefit payments from plans | (13.5 | ) | (12.5 | ) | (3.7 | ) | (3.0 | ) | ||||||||||||
Loss on plan settlement | (0.4 | ) | (6.9 | ) | — | — | ||||||||||||||
Plan amendments | 0.5 | 0.6 | (1.4 | ) | — | |||||||||||||||
Gain on plan curtailment | — | — | (0.2 | ) | — | |||||||||||||||
Other | 0.1 | — | — | — | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Benefit obligation at end of year | $ | 320.4 | $ | 325.3 | $ | 41.1 | $ | 46.7 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Change in Plan Assets: | ||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 239.3 | $ | 210.6 | $ | — | $ | — | ||||||||||||
Actual gain on plan assets | 15.6 | 23.9 | — | — | ||||||||||||||||
Employer contributions | 18.1 | 15.3 | — | — | ||||||||||||||||
Benefit payments | (11.3 | ) | (10.5 | ) | — | — | ||||||||||||||
Settlement payments | (0.4 | ) | — | — | — | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Fair value of plan assets at end of year | $ | 261.3 | $ | 239.3 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Reconciliation of Funded Status | ||||||||||||||||||||
Fair value of plan assets | $ | 261.3 | $ | 239.3 | $ | — | $ | — | ||||||||||||
Projected benefit obligation | 320.4 | 325.3 | 41.1 | 46.7 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Net liability recognized in statement of financial position | $ | (59.1 | ) | $ | (86.0 | ) | $ | (41.1 | ) | $ | (46.7 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Amounts recognized in statement of financial position consist of: | ||||||||||||||||||||
Current liabilities | $ | (2.6 | ) | $ | (2.8 | ) | $ | (3.9 | ) | $ | (3.6 | ) | ||||||||
Noncurrent liabilities | (56.5 | ) | (83.2 | ) | (37.2 | ) | (43.1 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (59.1 | ) | $ | (86.0 | ) | $ | (41.1 | ) | $ | (46.7 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of amounts recognized in accumulated other comprehensive income | ' | |||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Accumulated actuarial loss | $ | 64.8 | $ | 81.2 | $ | 4.7 | $ | 9.8 | ||||||||||||
Prior service cost | 1.8 | 1.6 | (0.9 | ) | 0.4 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total recognized in accumulated other comprehensive income | $ | 66.6 | $ | 82.8 | $ | 3.8 | $ | 10.2 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Summary of disaggregated information about the pension plans | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
Assets | ABO | Total | ||||||||||||||||||
Exceed ABO | Exceed Assets | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | $ | 266.4 | $ | — | $ | 54 | $ | 325.3 | $ | 320.4 | $ | 325.3 | ||||||||
Accumulated benefit obligation | 251.6 | — | 53.3 | 311.9 | 304.9 | 311.9 | ||||||||||||||
Fair value of plan assets | 261.3 | — | — | 239.3 | 261.3 | 239.3 | ||||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Service cost | $ | 5.3 | $ | 4.6 | $ | 4.1 | $ | 1.8 | $ | 1.8 | $ | 1.7 | ||||||||
Interest cost | 13.5 | 14.1 | 14.5 | 1.8 | 2.1 | 2.3 | ||||||||||||||
Expected return on plan assets (a) | (17.1 | ) | (15.3 | ) | (15.0 | ) | — | — | — | |||||||||||
Recognized net actuarial loss | 5.7 | 4.1 | 1.6 | 0.7 | 0.5 | 0.2 | ||||||||||||||
Amortization of prior service cost | 0.3 | 0.3 | 0.2 | (0.1 | ) | 0.2 | 0.5 | |||||||||||||
Amount of curtailment loss recognized | — | — | — | — | 0.3 | — | ||||||||||||||
Amount of settlement loss recognized | 0.2 | 3.5 | — | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net periodic benefit cost | $ | 7.9 | $ | 11.3 | $ | 5.4 | $ | 4.2 | $ | 4.9 | $ | 4.7 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
The expected return on plan assets is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. | ||||||||||||||||||||
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | ' | |||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Net periodic benefit expense | $ | 7.9 | $ | 11.3 | $ | 5.4 | $ | 4.2 | $ | 4.9 | $ | 4.7 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Accumulated actuarial gain (loss) | (16.4 | ) | 20.8 | 27.1 | (5.1 | ) | 2.7 | 0.1 | ||||||||||||
Prior service cost (credit) | 0.2 | 0.4 | (0.1 | ) | (1.3 | ) | (0.2 | ) | (1.4 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total recognized in other comprehensive income | (16.2 | ) | 21.2 | 27 | (6.4 | ) | 2.5 | (1.3 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total recognized in net periodic benefit cost and other comprehensive income | $ | (8.3 | ) | $ | 32.5 | $ | 32.4 | $ | (2.2 | ) | $ | 7.4 | $ | 3.4 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of weighted-average assumptions used to determine benefit obligations | ' | |||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||
Other than | ||||||||||||||||||||
Pensions | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Discount rate | 4.88 | % | 4.19 | % | 4.84 | % | 4.12 | % | ||||||||||||
Rate of compensation increase | 2.96 | % | 2.96 | % | — | — | ||||||||||||||
Schedule of weighted-average assumptions used to determine net periodic benefit cost | ' | |||||||||||||||||||
Pension Benefits | Postretirement | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 4.19 | % | 5.14 | % | 5.86 | % | 4.12 | % | 5.03 | % | 5.7 | % | ||||||||
Expected long-term return on plan assets | 7 | % | 7.25 | % | 7.75 | % | — | — | — | |||||||||||
Rate of compensation increase | 2.96 | % | 2.95 | % | 3.91 | % | — | — | — | |||||||||||
Schedule of pension plan asset allocations | ' | |||||||||||||||||||
Percentage of Plan Assets | ||||||||||||||||||||
At December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Asset Category | ||||||||||||||||||||
Equity securities | 35 | % | 40 | % | 43 | % | ||||||||||||||
Debt securities | 64 | % | 59 | % | 55 | % | ||||||||||||||
Cash and money-market funds | 1 | % | 1 | % | 2 | % | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of target investment allocation and permissible allocation range for plan assets by category | ' | |||||||||||||||||||
Strategic Target | Permitted Range | |||||||||||||||||||
Asset Category | ||||||||||||||||||||
Equity securities | 35 | % | 35-45 | % | ||||||||||||||||
Debt securities / Fixed Income | 65 | % | 55-65 | % | ||||||||||||||||
Schedule of future benefit payments | ' | |||||||||||||||||||
Pension Plans | Postretirement Benefits | |||||||||||||||||||
Other than Pensions | ||||||||||||||||||||
2014 | $ | 14.7 | $ | 3.9 | ||||||||||||||||
2015 | 15.3 | 3.3 | ||||||||||||||||||
2016 | 16.1 | 3.7 | ||||||||||||||||||
2017 | 17.9 | 4 | ||||||||||||||||||
2018 | 18 | 4.1 | ||||||||||||||||||
Years 2019-2023 | 104.1 | 19.8 | ||||||||||||||||||
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | ' | |||||||||||||||||||
One Percentage- | ||||||||||||||||||||
Point | ||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||
Effect on total of service and interest cost components | $ | — | $ | — | ||||||||||||||||
Effect on post-retirement benefit other than pension obligation | 0.4 | (0.4 | ) |
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Stock Compensation Plans | ' | ||||||||||||||||||||||
Schedule of stock-based compensation expense and related income tax benefits | ' | ||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Stock-based compensation expense | $ | 4.9 | $ | 4.9 | $ | 4.3 | |||||||||||||||||
Income tax benefit | (1.9 | ) | (1.9 | ) | (1.6 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Stock-based compensation, net of income tax benefit | $ | 3 | $ | 3 | $ | 2.7 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Schedule of total compensation costs related to the Company's equity awards and amounts recognized | ' | ||||||||||||||||||||||
Stock Options | Performance Shares | ||||||||||||||||||||||
and RSUs | |||||||||||||||||||||||
Unrecognized compensation cost — December 31, 2012 | $ | 1.6 | $ | 2.5 | |||||||||||||||||||
Grant date fair value current year grants | 1 | 3.2 | |||||||||||||||||||||
Change in estimate of shares to be forfeited | — | (0.1 | ) | ||||||||||||||||||||
Compensation expense recognized | (1.3 | ) | (3.6 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
Unrecognized compensation cost — December 31, 2013 | $ | 1.3 | $ | 2 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Expected amortization period (in years) | 2.5 | 1.6 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of stock options awarded | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Nonqualified stock options granted | 111,200 | 97,600 | 152,300 | ||||||||||||||||||||
Per share weighted average exercise price | $ | 31.23 | $ | 24.14 | $ | 19.55 | |||||||||||||||||
Per share weighted average grant date fair value | $ | 9.61 | $ | 8.13 | $ | 8.34 | |||||||||||||||||
Schedule of assumptions used to determine the grant date fair value of options granted | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected term in years | 5.3 | 4.9 | 5.3 | ||||||||||||||||||||
Risk free interest rate | 0.9 | % | 1.1 | % | 2.3 | % | |||||||||||||||||
Volatility | 40.4 | % | 45.4 | % | 57.1 | % | |||||||||||||||||
Dividend yield | 1.9 | % | 2 | % | 2.3 | % | |||||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Stock Options | Exercise Price | ||||||||||||||||||||||
Options outstanding — December 31, 2012 | 1,704,712 | $ | 24.7 | ||||||||||||||||||||
Add: Options granted | 111,150 | $ | 31.23 | ||||||||||||||||||||
Less: Options exercised | 845,476 | $ | 26.9 | ||||||||||||||||||||
Less: Options forfeited/cancelled | 19,718 | $ | 31.78 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Options outstanding — December 31, 2013 | 950,668 | $ | 23.36 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of outstanding and exercisable stock options summarized by exercise price | ' | ||||||||||||||||||||||
Options Vested or Expected to Vest | Options Exercisable | ||||||||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Aggregate | Number of | Weighted- | Aggregate | ||||||||||||||||
Options | Average | Average | Intrinsic | Options | Average | Intrinsic | |||||||||||||||||
Remaining | Exercise | Value (a) | Exercise | Value (a) | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||
$7.41 - $21.13 | 342,650 | 5.7 | $ | 12.85 | $ | 10.3 | 310,399 | $ | 12.19 | $ | 9.5 | ||||||||||||
$22.44 - $29.43 | 307,981 | 6.7 | $ | 24.8 | 5.5 | 122,378 | $ | 25.92 | 2.1 | ||||||||||||||
$30.15 - $34.61 | 178,761 | 6.1 | $ | 31.84 | 2 | 73,045 | $ | 32.72 | 0.7 | ||||||||||||||
$35.92 - $42.24 | 116,410 | 3.3 | $ | 37.3 | 0.6 | 116,410 | $ | 37.3 | 0.6 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
945,802 | 5.8 | $ | 23.34 | $ | 18.4 | 622,232 | $ | 22 | $ | 12.9 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||||||||
Represents the total pre-tax intrinsic value as of December 31, 2013 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $42.77 on December 31, 2013. | |||||||||||||||||||||||
Schedule of status of the Company's unvested stock options | ' | ||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||
Stock Options | Grant Date Fair Value | ||||||||||||||||||||||
Outstanding — December 31, 2012 | 345,031 | $ | 8.26 | ||||||||||||||||||||
Add: Options granted | 111,150 | $ | 9.61 | ||||||||||||||||||||
Less: Options vested | 124,743 | $ | 7.23 | ||||||||||||||||||||
Less: Options forfeited/cancelled | 3,002 | $ | 8.54 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Outstanding — December 31, 2013 | 328,436 | $ | 9.11 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Summary of the Company's unvested stock-based awards | ' | ||||||||||||||||||||||
RSUs | Weighted- | Performance | Weighted- | ||||||||||||||||||||
Average Grant | Shares | Average Grant | |||||||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||||||||
Outstanding — December 31, 2010 | 387,560 | $ | 13.97 | 205,800 | $ | 10.59 | |||||||||||||||||
Shares granted (a) | 55,523 | $ | 14.68 | 124,800 | $ | 27.32 | |||||||||||||||||
Shares vested | (81,276 | ) | $ | 12.81 | — | — | |||||||||||||||||
Performance Shares vested | 693,208 | $ | 7.74 | (330,000 | ) | $ | 16.94 | ||||||||||||||||
Shares expired or cancelled | (9,185 | ) | $ | 25.36 | (600 | ) | $ | 20.56 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2011 | 1,045,830 | $ | 9.87 | — | — | ||||||||||||||||||
Shares granted (a) | 12,912 | $ | 22.72 | 103,000 | $ | 36.13 | |||||||||||||||||
Shares vested | (837,179 | ) | $ | 8.23 | — | — | |||||||||||||||||
Shares expired or cancelled | — | — | (5,100 | ) | $ | 36.13 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2012 | 221,563 | $ | 16.81 | 97,900 | $ | 36.13 | |||||||||||||||||
Shares granted (a) | 12,220 | $ | 31.26 | 78,900 | $ | 49.28 | |||||||||||||||||
Shares vested | (220,762 | ) | $ | 17.23 | — | — | |||||||||||||||||
Performance Shares vested | 145,871 | $ | 24.25 | (97,900 | ) | $ | 36.13 | ||||||||||||||||
Shares expired or cancelled | (6,701 | ) | $ | 19.73 | (1,900 | ) | $ | 49.28 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Outstanding — December 31, 2013 (b) | 152,191 | $ | 24.36 | 77,000 | $ | 49.28 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
(a) | |||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, includes 950 RSUs, 887 RSUs and 48,323 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. | |||||||||||||||||||||||
(b) | |||||||||||||||||||||||
The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2013 was $6.3 million. | |||||||||||||||||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments | ' | ||||
Schedule of future minimum obligations under operating leases | ' | ||||
The future minimum obligations under operating leases having a noncancelable term in excess of one year as of December 31, 2013, are as follows: | |||||
2014 | $ | 1.8 | |||
2015 | 1.2 | ||||
2016 | 0.8 | ||||
2017 | 0.3 | ||||
2018 | — | ||||
Thereafter | — | ||||
| | | | | |
Future minimum lease obligations | $ | 4.1 | |||
| | | | | |
| | | | | |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Schedule of results of discontinued operations | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 (a) | 2012 (b) | 2011 | |||||||||
Discontinued operations: | |||||||||||
Income (loss) before income taxes | $ | 4.2 | $ | (0.1 | ) | $ | (0.3 | ) | |||
Provision (benefit) for income taxes | 1.6 | (4.5 | ) | (0.1 | ) | ||||||
| | | | | | | | | | | |
Income (loss) from discontinued operations, net of income taxes | $ | 2.6 | $ | 4.4 | $ | (0.2 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
During the first quarter of 2013, the Company received a refund of excess pension contributions, less withholding taxes, from the terminated Terrace Bay pension plan. As a result, the Company recorded income before income taxes from discontinued operations of $4.2 million and a related provision for income taxes of $1.6 million. | |||||||||||
(b) | |||||||||||
In November 2012, audits of the 2007 and 2008 tax years were finalized with a finding of no additional taxes due. As a result, the Company recognized a non-cash tax benefit of $4.5 million related to the reversal of certain liabilities for uncertain income tax positions. | |||||||||||
Business_Segment_and_Geographi1
Business Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Segment and Geographic Information | ' | ||||||||||
Schedule of business segment | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net sales | |||||||||||
Technical Products | $ | 416.1 | $ | 406.6 | $ | 421.1 | |||||
Fine Paper | 401.8 | 372.7 | 274.9 | ||||||||
Other | 26.6 | 29.5 | — | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 844.5 | $ | 808.8 | $ | 696 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Operating income (loss) | |||||||||||
Technical Products | $ | 38.6 | $ | 37.6 | $ | 33.8 | |||||
Fine Paper (a) | 59.8 | 50 | 39.7 | ||||||||
Other | 1.2 | 2.4 | — | ||||||||
Unallocated corporate costs (b) | (15.8 | ) | (19.6 | ) | (16.9 | ) | |||||
| | | | | | | | | | | |
Consolidated | $ | 83.8 | $ | 70.4 | $ | 56.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Operating income for the years ended December 31, 2013 and 2012 include acquisition related integration costs of $0.4 million and $5.8 million, respectively. | |||||||||||
(b) | |||||||||||
Unallocated corporate costs for the year ended December 31, 2013 includes a SERP settlement charges of $0.2 million and a loss on the early extinguishment of debt of $0.5 million. Unallocated corporate costs for the year ended December 31, 2012 includes a SERP settlement charges of $3.5 million and a loss on the early extinguishment of debt of $0.2 million. | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation and amortization | |||||||||||
Technical Products | $ | 16.4 | $ | 15.7 | $ | 17.6 | |||||
Fine Paper | 9.3 | 9.4 | 9.5 | ||||||||
Corporate | 3.7 | 3.7 | 3.9 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 29.4 | $ | 28.8 | $ | 31 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Capital expenditures | |||||||||||
Technical Products | $ | 21.5 | $ | 14.7 | $ | 18 | |||||
Fine Paper | 5 | 10.2 | 4.2 | ||||||||
Corporate | 2.2 | 0.2 | 0.9 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 28.7 | $ | 25.1 | $ | 23.1 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Total Assets (a) | |||||||||||
Technical Products | $ | 365.9 | $ | 348.5 | |||||||
Fine Paper | 206.9 | 214 | |||||||||
Corporate and other (b) | 103.1 | 48.2 | |||||||||
| | | | | | | | ||||
Total | $ | 675.9 | $ | 610.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
(a) | |||||||||||
Segment identifiable assets are those that are directly used in the segments operations. | |||||||||||
(b) | |||||||||||
Corporate assets are primarily cash, deferred income taxes and deferred financing costs. | |||||||||||
Schedule of net sales and assets by geographic areas | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net sales | |||||||||||
United States | $ | 564.4 | $ | 543.4 | $ | 416.2 | |||||
Europe | 280.1 | 265.4 | 279.8 | ||||||||
| | | | | | | | | | | |
Consolidated | $ | 844.5 | $ | 808.8 | $ | 696 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Total Assets | |||||||||||
United States | $ | 365.1 | $ | 322.5 | |||||||
Canada | 1 | 0.2 | |||||||||
Europe | 309.8 | 288 | |||||||||
| | | | | | | | ||||
Total | $ | 675.9 | $ | 610.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Supplemental_Data_Tables
Supplemental Data (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Data | ' | ||||||||||
Summary of advertising and research and development expenses | ' | ||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Advertising expense | $ | 7.6 | $ | 8.4 | $ | 6.2 | |||||
Research and development expense | 6.1 | 5.6 | 5.4 | ||||||||
(a) | |||||||||||
Advertising expense and research and development expense are recorded in selling, general and administrative expenses on the consolidated statements of operations. | |||||||||||
Summary of accounts receivable - net | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
From customers | $ | 92 | $ | 81.5 | |||||||
Less allowance for doubtful accounts and sales discounts | (1.5 | ) | (1.9 | ) | |||||||
| | | | | | | | ||||
Total | $ | 90.5 | $ | 79.6 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of inventories by major class | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Inventories by Major Class: | |||||||||||
Raw materials | $ | 20.3 | $ | 20.8 | |||||||
Work in progress | 22.9 | 24.9 | |||||||||
Finished goods | 67.3 | 66.3 | |||||||||
Supplies and other | 4.5 | 3.7 | |||||||||
| | | | | | | | ||||
115 | 115.7 | ||||||||||
Excess of FIFO over LIFO cost | (13.9 | ) | (12.8 | ) | |||||||
| | | | | | | | ||||
Total | $ | 101.1 | $ | 102.9 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of prepaid and other current assets | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Prepaid and other current assets | $ | 10.3 | $ | 7.7 | |||||||
Spare parts | 6.7 | 6.4 | |||||||||
| | | | | | | | ||||
Total | $ | 17 | $ | 14.1 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of property, plant and equipment - net | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Land and land improvements | $ | 21.7 | $ | 20.8 | |||||||
Buildings | 114.1 | 105.1 | |||||||||
Machinery and equipment | 496.3 | 465.1 | |||||||||
Construction in progress | 5 | 13.7 | |||||||||
| | | | | | | | ||||
637.1 | 604.7 | ||||||||||
Less accumulated depreciation | 375.4 | 349.9 | |||||||||
| | | | | | | | ||||
Net Property, Plant and Equipment | $ | 261.7 | $ | 254.8 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of accrued expenses | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Accrued salaries and employee benefits | $ | 23.1 | $ | 23.4 | |||||||
Amounts due to customers | 7.5 | 7.9 | |||||||||
Liability for uncertain income tax positions | 0.4 | 1.6 | |||||||||
Accrued interest | 1.2 | 0.8 | |||||||||
Accrued income taxes | 2 | 3.1 | |||||||||
Other | 11.6 | 10.8 | |||||||||
| | | | | | | | ||||
Total | $ | 45.8 | $ | 47.6 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary of noncurrent employee benefits | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Pension benefits | $ | 57.1 | $ | 83.7 | |||||||
Post-employment benefits other than pensions | 40.6 | 47.4 | |||||||||
| | | | | | | | ||||
Total (a) | $ | 97.7 | $ | 131.1 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
(a) | |||||||||||
Includes $4.0 million and $4.8 million in long-term disability benefits due to Terrace Bay retirees and SRCP benefits as of December 31, 2013 and 2012, respectively. | |||||||||||
Schedule of supplemental disclosure of cash flow information | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash paid during the year for interest, net of interest expense capitalized | $ | 9.9 | $ | 13.1 | $ | 15.2 | |||||
Cash paid during the year for income taxes, net of refunds | 5.4 | 6.7 | 4.7 | ||||||||
Non-cash investing activities: | |||||||||||
Liability for equipment acquired | 1.8 | 2.2 | 2.4 | ||||||||
Schedule of net cash provided by (used in) changes in working capital | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Accounts receivable | $ | (9.4 | ) | $ | (7.7 | ) | $ | (1.9 | ) | ||
Inventories | 4.8 | (26.8 | ) | (0.1 | ) | ||||||
Income taxes (receivable) payable | (0.1 | ) | (1.1 | ) | (0.5 | ) | |||||
Prepaid and other current assets | (2.7 | ) | — | (0.1 | ) | ||||||
Accounts payable | 1.3 | 5 | 0.5 | ||||||||
Accrued expenses | (0.5 | ) | 9.7 | (5.1 | ) | ||||||
| | | | | | | | | | | |
Total | $ | (6.6 | ) | $ | (20.9 | ) | $ | (7.2 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Unaudited_Quarterly_Data_Table
Unaudited Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Unaudited Quarterly Data | ' | ||||||||||||||||
Schedule of unaudited quarterly data | ' | ||||||||||||||||
2013 Quarters | |||||||||||||||||
First | Second | Third | Fourth | Year (a)(b)(c) | |||||||||||||
Net Sales | $ | 213.2 | $ | 212.3 | $ | 214.1 | $ | 204.9 | $ | 844.5 | |||||||
Gross Profit | 43.5 | 42.8 | 37.1 | 42.2 | 165.6 | ||||||||||||
Operating Income | 22.2 | 22.6 | 16.4 | 22.6 | 83.8 | ||||||||||||
Income From Continuing Operations | 12.1 | 12.8 | 11.4 | 13.1 | 49.4 | ||||||||||||
Earnings Per Common Share From Continuing Operations: | |||||||||||||||||
Basic | $ | 0.74 | $ | 0.79 | $ | 0.69 | $ | 0.8 | $ | 3.02 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | $ | 0.73 | $ | 0.77 | $ | 0.68 | $ | 0.78 | $ | 2.96 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||
Includes integration/restructuring costs of $0.6 million. | |||||||||||||||||
(b) | |||||||||||||||||
Includes a loss on the early extinguishment of debt of $0.5 million. | |||||||||||||||||
(c) | |||||||||||||||||
Includes a SERP settlement charge of $0.2 million. | |||||||||||||||||
2012 Quarters | |||||||||||||||||
First (b) | Second | Third | Fourth | Year (a)(b)(c) | |||||||||||||
Net Sales | $ | 198.2 | $ | 211.7 | $ | 206.3 | $ | 192.6 | $ | 808.8 | |||||||
Gross Profit | 41.9 | 43.8 | 35.7 | 37.7 | 159.1 | ||||||||||||
Operating Income | 16.2 | 22 | 16.3 | 15.9 | 70.4 | ||||||||||||
Income From Continuing Operations | 8.9 | 12.7 | 9.2 | 9.1 | 39.9 | ||||||||||||
Earnings Per Common Share From Continuing Operations: | |||||||||||||||||
Basic | $ | 0.55 | $ | 0.78 | $ | 0.56 | $ | 0.56 | $ | 2.46 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | $ | 0.54 | $ | 0.77 | $ | 0.55 | $ | 0.55 | $ | 2.41 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(a) | |||||||||||||||||
Includes acquisition integration costs of $5.8 million. | |||||||||||||||||
(b) | |||||||||||||||||
Includes a SERP settlement charge of $3.5 million. | |||||||||||||||||
(c) | |||||||||||||||||
Includes a loss on the early extinguishment of debt of $0.6 million. | |||||||||||||||||
Background_and_Basis_of_Presen2
Background and Basis of Presentation (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2010 | Jan. 31, 2013 | Jan. 31, 2012 |
item | Woodlands | Southworth Company | Wausau Paper Mills, LLC | ||
acre | |||||
Background and Basis of Presentation | ' | ' | ' | ' | ' |
Number of primary operations | 2 | ' | ' | ' | ' |
Background and Basis of Presentation | ' | ' | ' | ' | ' |
Cash payment | $5.20 | $14.10 | ' | $7 | $21 |
Woodland assets in Nova Scotia sold (in acres) | ' | ' | 475,000 | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Significant Accounting Policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potentially dilutive stock-based compensation awards excluded from computation of dilutive common shares | ' | ' | ' | ' | ' | ' | ' | ' | 450,000 | 1,015,000 | 1,365,000 |
Earnings per basic common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $13.10 | $11.40 | $12.80 | $12.10 | $9.10 | $9.20 | $12.70 | $8.90 | $49.40 | $39.90 | $29.30 |
Distributed and undistributed amounts allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -0.8 | -1.2 | -0.7 |
Income from continuing operations available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 48.6 | 38.7 | 28.6 |
Income (loss) from discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 | 4.4 | -0.2 |
Distributed and undistributed amounts allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | ' |
Net income available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 51.2 | 43 | 28.4 |
Weighted-average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 16,072,000 | 15,752,000 | 14,974,000 |
Basic earnings (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.80 | $0.69 | $0.79 | $0.74 | $0.56 | $0.56 | $0.78 | $0.55 | $3.02 | $2.46 | $1.91 |
Discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | $0.27 | ($0.01) |
Total Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $3.18 | $2.73 | $1.90 |
Earnings per diluted common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | 13.1 | 11.4 | 12.8 | 12.1 | 9.1 | 9.2 | 12.7 | 8.9 | 49.4 | 39.9 | 29.3 |
Distributed and undistributed amounts allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -0.8 | -1.1 | -0.8 |
Income from continuing operations available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 48.6 | 38.8 | 28.5 |
Income (loss) from discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 | 4.4 | -0.2 |
Distributed and undistributed amounts allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | ' |
Net income available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 51.2 | 43.1 | 28.3 |
Weighted-average basic shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 16,072,000 | 15,752,000 | 14,974,000 |
Add: Assumed incremental shares under stock-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | 331,000 | 320,000 | 675,000 |
Weighted-average diluted shares | ' | ' | ' | ' | ' | ' | ' | ' | 16,403,000 | 16,072,000 | 15,649,000 |
Diluted earnings (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.78 | $0.68 | $0.77 | $0.73 | $0.55 | $0.55 | $0.77 | $0.54 | $2.96 | $2.41 | $1.82 |
Discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | $0.27 | ($0.01) |
Total Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $3.12 | $2.68 | $1.81 |
Postretirement Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash and cash equivalent | $0.50 | ' | ' | ' | $0.70 | ' | ' | ' | $0.50 | $0.70 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | ' |
Property and Depreciation | ' |
Weighted average useful lives | '18 years |
Land improvements | ' |
Property and Depreciation | ' |
Weighted average useful lives | '13 years |
Machinery and equipment | ' |
Property and Depreciation | ' |
Weighted average useful lives | '10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Minimum | Maximum | ||
Other Intangible Assets | ' | ' | ' |
Impairment of goodwill | $0 | ' | ' |
Estimated useful lives of intangible assets | ' | '10 years | '15 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Level 1 | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | $1.10 | $1 |
Level 1 | Cash and equivalents | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 1.1 | 1 |
Level 2 | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 260.2 | 238.3 |
Level 2 | Equity securities, domestic | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 49.4 | 53.2 |
Level 2 | Equity securities, international | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 42.4 | 43.2 |
Level 2 | Fixed income | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 168.4 | 141.9 |
Total | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 261.3 | 239.3 |
Total | Equity securities, domestic | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 49.4 | 53.2 |
Total | Equity securities, international | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 42.4 | 43.2 |
Total | Fixed income | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | 168.4 | 141.9 |
Total | Cash and equivalents | ' | ' |
Fair Value Measurements | ' | ' |
Pension plan assets at fair value | $1.10 | $1 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | Jun. 30, 2013 | Dec. 31, 2012 | Nov. 30, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Secured debt | Secured debt | Secured debt | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | |
2021 Senior Notes (5.25% fixed rate) | 2021 Senior Notes (5.25% fixed rate) | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | Neenah Germany project financing (3.8% fixed rate) | Neenah Germany project financing (3.8% fixed rate) | Second German Loan Agreement (2.5% fixed rate) | Senior notes | Senior notes | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Line of credit | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | ||||||
2021 Senior Notes (5.25% fixed rate) | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | Revolving bank credit facility (variable rates) due November 2017 | Term loan repaid June 2013 | Neenah Germany project financing (3.8% fixed rate) | Neenah Germany project financing (3.8% fixed rate) | Second German Loan Agreement (2.5% fixed rate) | Neenah Germany revolving lines of credit (variable rates) | Senior notes | Other assets | Senior notes | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Line of credit | ||||||||||||||
2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2021 Senior Notes (5.25% fixed rate) | Revolving bank credit facility (variable rates) due November 2017 | Term loan repaid June 2013 | Neenah Germany project financing (3.8% fixed rate) | Neenah Germany project financing (3.8% fixed rate) | Second German Loan Agreement (2.5% fixed rate) | Neenah Germany revolving lines of credit (variable rates) | |||||||||||||||||||||||
Carrying value and fair value of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $211.90 | $182.30 | $175 | $90 | $55.70 | $30 | $5.20 | $6.60 | $12.40 | $19.30 | $199 | $182.60 | $90 | ' | $163.70 | $55.70 | $30 | $5.10 | $6.90 | $10.90 | $19.30 |
Fixed rate of interest (as a percent) | ' | 5.25% | 5.25% | 7.38% | 7.38% | 7.38% | 3.80% | 3.80% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of marketable securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 | ' | ' | ' | ' | ' | ' | ' |
Cost of marketable securities | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of accumulated other comprehensive income (loss), net of applicable income taxes | ' | ' |
Unrealized foreign currency translation gains | $17.90 | $9.20 |
Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $26.3 million and $34.9 million, respectively) | -45.2 | -59.1 |
Unrealized gain on "available-for-sale" securities | ' | 0.1 |
Accumulated other comprehensive loss | -27.3 | -49.8 |
Income tax benefits related to net loss from pension and other postretirement benefit liabilities | $26.30 | $34.90 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2012 | Dec. 31, 2012 |
Southworth Company | Southworth Company | Southworth Company | Southworth Company | Southworth Company | Southworth Company | Wausau Paper Mills, LLC | Wausau Paper Mills, LLC | |||
Trade names and trademarks | Trade names and trademarks | Customer based intangibles | Customer based intangibles | |||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment | $5.20 | $14.10 | $7 | ' | ' | ' | ' | ' | $21 | ' |
Period of finished goods inventory purchased | ' | ' | '1 month | ' | ' | ' | ' | ' | '1 month | ' |
Acquisition-related integration costs | 0.6 | 5.8 | ' | 0.4 | ' | ' | ' | ' | ' | 5.8 |
Non amortizable intangible assets | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | ' | ' |
Finished goods inventory | 67.3 | 66.3 | 1.8 | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | 0.2 | ' | ' | ' | ' | ' | ' | ' |
Recognized liability | ' | ' | $0.60 | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross Amount | ' | ' | ' |
Balance at the beginning of the period | $96.10 | $89.10 | $91.40 |
Foreign currency translation | 4 | 7 | -2.3 |
Balance at the end of the period | 100.1 | 96.1 | 89.1 |
Accumulated Impairment Losses | ' | ' | ' |
Balance at the beginning of the period | -54.7 | -48.6 | -49.9 |
Foreign currency translation | -2.3 | -6.1 | 1.3 |
Balance at the end of the period | -57 | -54.7 | -48.6 |
Net | ' | ' | ' |
Balance at the beginning of the period | 41.4 | 40.5 | 41.5 |
Foreign currency translation | 1.7 | 0.9 | -1 |
Balance at the end of the period | $43.10 | $41.40 | $40.50 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Technical Products | Fine Paper | Trade names | Trade names | Customer based intangibles | Customer based intangibles | Customer based intangibles | Customer based intangibles | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Acquired technology | Acquired technology | ||||
Southworth Company | Southworth Company | Southworth Company | Southworth Company | ||||||||||||||
Goodwill and Other Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net identifiable intangible assets | $38.50 | $34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average amortization period | ' | ' | ' | ' | ' | ' | ' | '15 years | '15 years | '15 years | ' | '10 years | '10 years | ' | ' | '10 years | '10 years |
Amortizable intangible assets, Gross Amount | 24.4 | 22.9 | ' | ' | ' | ' | ' | 17.5 | 16.3 | ' | ' | 5.8 | 5.5 | ' | ' | 1.1 | 1.1 |
Amortizable intangible assets, Accumulated Amortization | -12.6 | -10.3 | ' | ' | ' | ' | ' | -7.6 | -6.2 | ' | ' | -4.2 | -3.4 | ' | ' | -0.8 | -0.7 |
Non-amortizable, Gross Amount | ' | ' | ' | ' | ' | 26.7 | 21.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total, Gross Amount | 51.1 | 44.3 | ' | 17 | 21.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | ' | ' | ' | ' | ' | ' |
Aggregate amortization expense of acquired intangible assets | 1.9 | 1.9 | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated annual amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 1.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 1.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | $1.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Difference between the effective income tax provision rate and the U.S. federal statutory income tax provision rate | ' | ' | ' |
U.S. federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
U.S. state income taxes, net of federal income tax effect (as a percent) | 2.30% | 1.90% | 1.80% |
Tax on foreign dividends (as a percent) | 2.80% | ' | 3.60% |
Research and development and other tax credits (as a percent) | -3.00% | ' | ' |
Foreign tax rate differences (as a percent) | -2.40% | -2.70% | -3.00% |
Foreign financing structure (as a percent) | -3.30% | -4.30% | -6.30% |
Other differences - net (as a percent) | 0.70% | 0.10% | -2.00% |
Effective income tax rate (as a percent) | 32.10% | 30.00% | 29.10% |
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ' | ' | ' |
U.S. federal statutory income tax rate | $25.50 | $20 | $14.50 |
U.S. state income taxes, net of federal income tax effect | 1.7 | 1.1 | 0.7 |
Tax on foreign dividends | 2 | ' | 1.5 |
Research and development and other credits | -2.2 | ' | ' |
Foreign tax rate differences | -1.7 | -1.6 | -1.3 |
Benefit of tax structure | -2.4 | -2.4 | -2.6 |
Other differences - net | 0.5 | ' | -0.8 |
Effective income tax rate | $23.40 | $17.10 | $12 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income from continuing operations before income taxes: | ' | ' | ' |
U.S. | $48 | $35.80 | $23.10 |
Foreign | 24.8 | 21.2 | 18.2 |
Income from continuing operations before income taxes | 72.8 | 57 | 41.3 |
Current: | ' | ' | ' |
Federal | -0.5 | -2.2 | 0.2 |
State | 0.3 | ' | 0.4 |
Foreign | 5.9 | 8.8 | 3.9 |
Total current tax provision | 5.7 | 6.6 | 4.5 |
Deferred: | ' | ' | ' |
Federal | 18.4 | 12 | 8.9 |
State | ' | 0.4 | 1.2 |
Foreign | -0.7 | -1.9 | -2.6 |
Total deferred tax provision | 17.7 | 10.5 | 7.5 |
Effective income tax rate | $23.40 | $17.10 | $12 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Net current deferred income tax assets | ' | ' |
Net operating losses and credits | $13.70 | $18.90 |
Inventory | 4.8 | 3.6 |
Accrued liabilities | 2.4 | 2.8 |
Employee benefits | 1.6 | 1.7 |
Other | 0.3 | 0.3 |
Net current deferred income tax assets before valuation allowance | 22.8 | 27.3 |
Valuation allowance | ' | -0.1 |
Net current deferred income tax assets | 22.8 | 27.2 |
Net noncurrent deferred income tax assets | ' | ' |
Net operating losses and credits | 10 | 16 |
Employee benefits | 22.3 | 38.2 |
Accelerated depreciation | -18.4 | -18.4 |
Other | -0.6 | -0.2 |
Net noncurrent deferred income tax assets before valuation allowance | 13.3 | 35.6 |
Valuation allowance | 0 | -0.3 |
Net noncurrent deferred income tax assets | 13.3 | 35.3 |
Total deferred income tax assets | 36.1 | 62.5 |
Net noncurrent deferred income tax liability | ' | ' |
Accelerated depreciation | 18.8 | 18.6 |
Intangibles | 4.5 | 4.7 |
Interest limitation | -1.9 | -5.2 |
Employee benefits | -5.2 | -5 |
Net operating losses | -0.2 | -0.2 |
Other | -0.4 | -0.4 |
Net noncurrent deferred income tax liabilities | 15.6 | 12.5 |
Valuation allowance provided against certain U.S. state deferred income tax assets | $0 | $0.40 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
NOLs | ' | ' | ' | ' |
Preacquisition and recognized built-in loss carryovers | ' | $12.70 | ' | ' |
Alternative Minimum Tax credit carryovers | ' | 2.8 | ' | ' |
Undistributed earnings of foreign subsidiaries | ' | 0 | 0 | ' |
Reconciliation of the total amounts of uncertain tax positions | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 4.8 | 8.4 | 8.6 |
Increases in prior period tax positions | ' | 0.2 | 4.4 | 0.2 |
Decreases in prior period tax positions | ' | -0.8 | -7.5 | -0.3 |
Increases in current period tax positions | ' | 1.3 | ' | ' |
Decreases due to settlements with tax authorities | -4.5 | -1.3 | -0.5 | -0.1 |
Increase from foreign exchange rate changes | ' | 0.1 | ' | ' |
Balance at the end of the period | ' | 4.3 | 4.8 | 8.4 |
Benefit for uncertain tax positions, if recognized | ' | 4.1 | ' | ' |
Accrued for interest and penalties related to uncertain income tax positions | ' | 0.1 | 0.1 | ' |
U.S. Federal | ' | ' | ' | ' |
NOLs | ' | ' | ' | ' |
Net operating losses | ' | 32.9 | ' | ' |
U.S. state | ' | ' | ' | ' |
NOLs | ' | ' | ' | ' |
Net operating losses | ' | $51.50 | ' | ' |
Income_Taxes_Details_5
Income Taxes (Details 5) (Research and development, State, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Research and development | State | ' |
Tax credit carryforward | ' |
Tax credit carryforward amount | $2.30 |
Debt_Details
Debt (Details) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | Dec. 31, 2013 | Nov. 30, 2004 | Jun. 30, 2013 | 31-May-13 | Dec. 31, 2012 | Jun. 30, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Secured debt | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | |
2021 Senior Notes (5.25% fixed rate) due May 2021 | 2021 Senior Notes (5.25% fixed rate) due May 2021 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Revolving bank credit facility (variable rates) due November 2017 | Term loan repaid June 2013 | Term loan repaid June 2013 | Term loan repaid June 2013 | Term loan repaid June 2013 | Neenah Germany project financing | Neenah Germany project financing | Neenah Germany project financing | Neenah Germany project financing | Second German Loan Agreement | Second German Loan Agreement | Second German Loan Agreement | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Prime rate | LIBOR | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | HypoVereinsbank | HypoVereinsbank | HypoVereinsbank | Total Commerzbank borrowings | Total Commerzbank borrowings | Total Commerzbank borrowings | Total Commerzbank borrowings | Total Commerzbank borrowings | Minimum | |||||
Prime rate | LIBOR | USD ($) | USD ($) | Prime rate | LIBOR | installment | installment | USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | EUR (€) | |||||||||||||||||||||||||||||||
Principal Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Debt | $211.90 | $182.30 | ' | ' | $175 | ' | ' | ' | $90 | ' | ' | ' | $55.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | ' | ' | $5.20 | € 3.70 | $6.60 | $12.40 | € 9 | ' | $19.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Debt payable within one year | 21.4 | 4.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 190.5 | 177.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed rate of interest (as a percent) | ' | ' | ' | 5.25% | 5.25% | 7.38% | 7.38% | ' | 7.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | 3.80% | 3.80% | 2.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on amounts outstanding (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.45% | 2.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal semi-annual installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal quarterly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total term of notes | ' | ' | ' | '8 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debt redeemed or repaid | ' | ' | ' | ' | ' | ' | 70 | 20 | ' | ' | 56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax loss, including the write-off of related unamortized debt issuance costs | 0.5 | 0.6 | 2.4 | ' | ' | ' | 0.4 | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity that may be increased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180 | ' | ' | ' | 105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | 9 | ' | ' | 15 | ' | ' | ' | 5 | ' | 3 | ' |
Debt instrument variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 1.75% | ' | ' | 0.75% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fee on unused amount of Revolver commitment (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend restriction | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of the company's stock allowed to be repurchased on or before December 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of the company's stock to be repurchased on or before December 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.10% | 3.10% | 3.80% | 2.90% | 2.90% | ' | 3.60% | ' | ' |
Length of the year considered for interest calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '360 days | '360 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.9 | 5 | ' | 1.3 | 1 | ' | ' | ' | ' |
Total outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.8 | 10 | ' | 5.5 | 4 | ' | ' | ' | ' |
Borrowing availability for not achieving the fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for maintaining a fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholder's equity to total assets ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% |
Debt_Details_2
Debt (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt payments | ' | ' |
2014 | $21.40 | ' |
2015 | 3.3 | ' |
2016 | 3.2 | ' |
2017 | 1.6 | ' |
2018 | 1.6 | ' |
Thereafter | 180.8 | ' |
Total | $211.90 | $182.30 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension and other postretirement benefits | ' | ' | ' |
Cumulative unrecognized investment losses and other actuarial losses | ($45.20) | ($59.10) | ' |
Amounts recognized in statement of financial position consist of: | ' | ' | ' |
Noncurrent liabilities | -97.7 | -131.1 | ' |
Pension Benefits | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Liabilities of the SERP | 0.2 | 3.5 | ' |
Settlement loss recognized | 0.2 | 3.5 | ' |
Defined benefit plan investments | 2 | ' | ' |
Defined benefit plan investments classified as prepaid and other current assets | 0.5 | ' | ' |
Defined benefit plan investments classified as other assets | 1.5 | ' | ' |
Change in Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 325.3 | 287.4 | ' |
Service cost | 5.3 | 4.6 | 4.1 |
Interest cost | 13.5 | 14.1 | 14.5 |
Currency | 1.9 | 1.1 | ' |
Actuarial (gain) loss | -12.3 | 36.9 | ' |
Benefit payments from plans | -13.5 | -12.5 | ' |
Loss on plan settlement | -0.4 | -6.9 | ' |
Plan amendments | 0.5 | 0.6 | ' |
Other | 0.1 | ' | ' |
Benefit obligation at end of year | 320.4 | 325.3 | 287.4 |
Change in Plan Assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 239.3 | 210.6 | ' |
Actual gain on plan assets | 15.6 | 23.9 | ' |
Employer contributions | 18.1 | 15.3 | ' |
Benefit payments | -11.3 | -10.5 | ' |
Settlement payments | -0.4 | ' | ' |
Fair value of plan assets at end of year | 261.3 | 239.3 | 210.6 |
Reconciliation of Funded Status | ' | ' | ' |
Fair value of plan assets | 261.3 | 239.3 | 210.6 |
Projected benefit obligation | 320.4 | 325.3 | 287.4 |
Net liability recognized in statement of financial position | -59.1 | -86 | ' |
Amounts recognized in statement of financial position consist of: | ' | ' | ' |
Current liabilities | -2.6 | -2.8 | ' |
Noncurrent liabilities | -56.5 | -83.2 | ' |
Net liability recognized in statement of financial position | -59.1 | -86 | ' |
Postretirement Benefits Other than Pensions | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Assumed inflationary health care cost trend rates used to determine obligations (as a percent) | 7.30% | 7.60% | ' |
Ultimate health cost trend rate (as a percent) | 4.50% | 4.50% | ' |
Change in Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 46.7 | 42.5 | ' |
Service cost | 1.8 | 1.8 | 1.7 |
Interest cost | 1.8 | 2.1 | 2.3 |
Currency | 0.1 | 0.1 | ' |
Actuarial (gain) loss | -4 | 3.2 | ' |
Benefit payments from plans | -3.7 | -3 | ' |
Plan amendments | -1.4 | ' | ' |
Gain on plan curtailment | -0.2 | ' | ' |
Benefit obligation at end of year | 41.1 | 46.7 | 42.5 |
Reconciliation of Funded Status | ' | ' | ' |
Projected benefit obligation | 41.1 | 46.7 | 42.5 |
Net liability recognized in statement of financial position | -41.1 | -46.7 | ' |
Amounts recognized in statement of financial position consist of: | ' | ' | ' |
Current liabilities | -3.9 | -3.6 | ' |
Noncurrent liabilities | -37.2 | -43.1 | ' |
Net liability recognized in statement of financial position | ($41.10) | ($46.70) | ' |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Pension Benefits | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Accumulated actuarial loss | $64.80 | $81.20 | ' |
Prior service cost | 1.8 | 1.6 | ' |
Total recognized in accumulated other comprehensive income | 66.6 | 82.8 | ' |
Assets Exceed ABO | ' | ' | ' |
Projected benefit obligation | 266.4 | ' | ' |
Accumulated benefit obligation | 251.6 | ' | ' |
Fair value of plan assets | 261.3 | ' | ' |
ABO Exceed Assets | ' | ' | ' |
Projected benefit obligation | 54 | 325.3 | ' |
Accumulated benefit obligation | 53.3 | 311.9 | ' |
Fair value of plan assets | ' | 239.3 | ' |
Total | ' | ' | ' |
Projected benefit obligation | 320.4 | 325.3 | 287.4 |
Accumulated benefit obligation | 304.9 | 311.9 | ' |
Fair value of plan assets | 261.3 | 239.3 | 210.6 |
Postretirement Benefits Other than Pensions | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Accumulated actuarial loss | 4.9 | 9.8 | ' |
Prior service cost | -0.9 | 0.4 | ' |
Total recognized in accumulated other comprehensive income | 4 | 10.2 | ' |
Total | ' | ' | ' |
Projected benefit obligation | $41.10 | $46.70 | $42.50 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Service cost | $5.30 | $4.60 | $4.10 |
Interest cost | 13.5 | 14.1 | 14.5 |
Expected return on plan assets | -17.1 | -15.3 | -15 |
Recognized net actuarial loss | 5.7 | 4.1 | 1.6 |
Amortization of prior service cost | 0.3 | 0.3 | 0.2 |
Amount of settlement loss recognized | 0.2 | 3.5 | ' |
Net periodic benefit cost | 7.9 | 11.3 | 5.4 |
Postretirement Benefits Other than Pensions | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Service cost | 1.8 | 1.8 | 1.7 |
Interest cost | 1.8 | 2.1 | 2.3 |
Recognized net actuarial loss | 0.7 | 0.5 | 0.2 |
Amortization of prior service cost | -0.1 | 0.2 | 0.5 |
Amount of curtailment loss recognized | ' | 0.3 | ' |
Net periodic benefit cost | $4.20 | $4.90 | $4.70 |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefits (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity securities | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Asset allocation (as a percent) | 35.00% | ' | ' |
Fixed income securities | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Asset allocation (as a percent) | 65.00% | ' | ' |
Minimum | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Period for historical returns | '10 years | ' | ' |
Minimum | Equity securities | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 8.00% | ' | ' |
Minimum | Fixed income securities | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 5.00% | ' | ' |
Maximum | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Period for historical returns | '15 years | ' | ' |
Maximum | Equity securities | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 10.00% | ' | ' |
Maximum | Fixed income securities | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 7.00% | ' | ' |
Pension Benefits | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Net periodic benefit expense | $7.90 | $11.30 | $5.40 |
Accumulated actuarial gain (loss) | -16.4 | 20.8 | 27.1 |
Prior service cost (credit) | 0.2 | 0.4 | -0.1 |
Total recognized in other comprehensive income | -16.2 | 21.2 | 27 |
Total recognized in net periodic benefit cost and other comprehensive income | -8.3 | 32.5 | 32.4 |
Estimated cost expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ' | ' | ' |
Estimated net actuarial loss | 4.2 | ' | ' |
Estimated prior service cost | 0.3 | ' | ' |
Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | ' | ' |
Discount rate (as a percent) | 4.88% | 4.19% | ' |
Rate of compensation increase (as a percent) | 2.96% | 2.96% | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Discount rate (as a percent) | 4.19% | 5.14% | 5.86% |
Expected long-term rates of return (as a percent) | ' | 7.25% | 7.75% |
Rate of compensation increase (as a percent) | 2.96% | 2.95% | 3.91% |
Pension Benefits | Equity securities | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Asset allocation (as a percent) | 35.00% | ' | ' |
Pension Benefits | Fixed income securities | ' | ' | ' |
Expected Long Term Return And Investment Strategies | ' | ' | ' |
Asset allocation (as a percent) | 65.00% | ' | ' |
Postretirement Benefits Other than Pensions | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Net periodic benefit expense | 4.2 | 4.9 | 4.7 |
Accumulated actuarial gain (loss) | -4.9 | 2.7 | 0.1 |
Prior service cost (credit) | -1.3 | -0.2 | -1.4 |
Total recognized in other comprehensive income | -6.2 | 2.5 | -1.3 |
Total recognized in net periodic benefit cost and other comprehensive income | -2 | 7.4 | 3.4 |
Estimated cost expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ' | ' | ' |
Estimated net actuarial loss | 0.1 | ' | ' |
Estimated prior service cost | ($0.20) | ' | ' |
Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | ' | ' |
Discount rate (as a percent) | 4.84% | 4.12% | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Discount rate (as a percent) | 4.12% | 5.03% | 5.70% |
U.S. pension plan | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 7.00% | ' | ' |
U.S. pension plan | Minimum | ' | ' | ' |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Expected long-term rates of return (as a percent) | 7.00% | ' | ' |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefits (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Aggregate contributions to qualified and non-qualified pension trusts and payments of pension benefits for unfunded pension plans in 2014 | 16 | ' | ' |
Equity securities | ' | ' | ' |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Strategic Target (as a percent) | 35.00% | ' | ' |
Debt securities | ' | ' | ' |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Strategic Target (as a percent) | 65.00% | ' | ' |
Pension Benefits | ' | ' | ' |
Pension plan | ' | ' | ' |
Percentage of Plan Assets | 100.00% | 100.00% | 100.00% |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Amount of plan assets invested in the entity's securities | 0 | 0 | 0 |
Pension Benefits | Equity securities | ' | ' | ' |
Pension plan | ' | ' | ' |
Percentage of Plan Assets | 35.00% | 40.00% | 43.00% |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Strategic Target (as a percent) | 35.00% | ' | ' |
Permitted Range, minimum (as a percent) | 35.00% | ' | ' |
Permitted Range, maximum (as a percent) | 45.00% | ' | ' |
Pension Benefits | Debt securities | ' | ' | ' |
Pension plan | ' | ' | ' |
Percentage of Plan Assets | 64.00% | 59.00% | 55.00% |
Target investment allocation and permissible allocation range for plan assets | ' | ' | ' |
Strategic Target (as a percent) | 65.00% | ' | ' |
Permitted Range, minimum (as a percent) | 55.00% | ' | ' |
Permitted Range, maximum (as a percent) | 65.00% | ' | ' |
Pension Benefits | Cash and money-market funds | ' | ' | ' |
Pension plan | ' | ' | ' |
Percentage of Plan Assets | 1.00% | 1.00% | 2.00% |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefits (Details 6) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits | ' |
Future service benefit payments | ' |
2014 | $14.70 |
2015 | 15.3 |
2016 | 16.1 |
2017 | 17.9 |
2018 | 18 |
Years 2019-2023 | 104.1 |
Postretirement Benefits Other than Pensions | ' |
Future service benefit payments | ' |
2014 | 3.9 |
2015 | 3.3 |
2016 | 3.7 |
2017 | 4 |
2018 | 4.1 |
Years 2019-2023 | $19.80 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefits (Details 7) (Postretirement Benefits, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Postretirement Benefits | ' |
Pension and other postretirement benefits | ' |
Effect on total of service and interest cost components, Increase | $0 |
Effect on total of service and interest cost components, Decrease | 0 |
Effect on post-retirement benefit other than pension obligation, Increase | 0.4 |
Effect on post-retirement benefit other than pension obligation, Decrease | ($0.40) |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefits (Details 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined contribution retirement plans | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Cost recognized | $1.90 | $1.80 | $1.60 |
Supplemental retirement contribution plan | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Cost recognized | 0.3 | 0.2 | 0.1 |
Voluntary contribution investment plans | ' | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Cost recognized | $1.80 | $1.70 | $1.50 |
Stock_Compensation_Plans_Detai
Stock Compensation Plans (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2004 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2004 | Dec. 31, 2013 |
Stock options | Stock options | Performance Shares and RSUs | Stock options and SARs | Stock options and SARs | Stock options and SARs | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | RSUs | Omnibus Plan | 2013 Omnibus Plan | ||||
President and chief operating officer | President and chief operating officer | President and chief operating officer | President and chief operating officer | Non-employee members of the board of directors | |||||||||||||||
Vesting on December 31, 2014 | Vesting on December 31, 2015 | Vesting on December 31, 2016 | |||||||||||||||||
Stock Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | 3,500,000 | 1,790,000 |
Par value of shares of common stock (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Expiration period | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Additional common stock reserved for issuance subject to shareholders approval (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,577,000 |
Reduction in common stock reserved for future issuance due to outstanding SARs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 |
Stock-based compensation expense and related income tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $4.90 | $4.90 | $4.30 | $1.30 | ' | $3.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | -1.9 | -1.9 | -1.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of income tax benefit | 3 | 3 | 2.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation costs related to equity awards and amounts recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost at the beginning of the period | ' | ' | ' | 1.6 | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair value of current year grants | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair value of current year grants | ' | ' | ' | ' | ' | 3.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in estimate of shares to be forfeited | ' | ' | ' | ' | ' | -0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense recognized | -4.9 | -4.9 | -4.3 | -1.3 | ' | -3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost at the end of the period | ' | ' | ' | $1.30 | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization period | ' | ' | ' | '2 years 6 months | ' | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonqualified stock options granted (in shares) | 111,150 | ' | ' | ' | ' | ' | ' | ' | ' | 111,200 | 97,600 | 152,300 | ' | ' | ' | ' | ' | ' | ' |
Per share weighted average exercise price (in dollars per share) | $31.23 | ' | ' | ' | ' | ' | ' | ' | ' | $31.23 | $24.14 | $19.55 | $24.09 | ' | ' | ' | ' | ' | ' |
Per share weighted average grant date fair value (in dollars per share) | $9.61 | ' | ' | ' | ' | ' | ' | ' | ' | $9.61 | $8.13 | $8.34 | $9.55 | ' | ' | ' | ' | ' | ' |
Fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term in years | ' | ' | ' | ' | ' | ' | '5 years 3 months 18 days | '4 years 10 months 24 days | '5 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.90% | 1.10% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility (as a percent) | ' | ' | ' | ' | ' | ' | 40.40% | 45.40% | 57.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | 1.90% | 2.00% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting rights (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 50.00% | 100.00% | ' | ' | ' |
Number of Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in shares) | 950,668 | 1,704,712 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: Options granted (in shares) | 111,150 | ' | ' | ' | ' | ' | ' | ' | ' | 111,200 | 97,600 | 152,300 | ' | ' | ' | ' | ' | ' | ' |
Less: Options exercised (in shares) | 845,476 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Options forfeited/cancelled (in shares) | 19,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars per share) | $23.36 | $24.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: Options granted (in dollars per share) | $31.23 | ' | ' | ' | ' | ' | ' | ' | ' | $31.23 | $24.14 | $19.55 | $24.09 | ' | ' | ' | ' | ' | ' |
Less: Options exercised (in dollars per share) | $26.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Options forfeited/cancelled (in dollars per share) | $31.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Compensation_Plans_Detai1
Stock Compensation Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Options Vested or Expected to Vest | ' | ' | ' |
Number of Options (in shares) | 945,802 | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 9 months 18 days | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $23.34 | ' | ' |
Aggregate Intrinsic Value | $18.40 | ' | ' |
Options Exercisable | ' | ' | ' |
Number of Options (in shares) | 622,232 | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $22 | ' | ' |
Aggregate Intrinsic Value | 12.9 | ' | ' |
Closing market price for common stock (in dollars per share) | $42.77 | ' | ' |
Aggregate pre-tax intrinsic value of stock options exercised | 9.8 | 5.1 | 2.9 |
$7.41 - $21.13 | Stock options | ' | ' | ' |
Exercise Price | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $7.41 | ' | ' |
Exercise price, high end of range (in dollars per share) | $21.13 | ' | ' |
Options Vested or Expected to Vest | ' | ' | ' |
Number of Options (in shares) | 342,650 | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 8 months 12 days | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $12.85 | ' | ' |
Aggregate Intrinsic Value | 10.3 | ' | ' |
Options Exercisable | ' | ' | ' |
Number of Options (in shares) | 310,399 | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $12.19 | ' | ' |
Aggregate Intrinsic Value | 9.5 | ' | ' |
$22.44 - $29.43 | Stock options | ' | ' | ' |
Exercise Price | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $22.44 | ' | ' |
Exercise price, high end of range (in dollars per share) | $29.43 | ' | ' |
Options Vested or Expected to Vest | ' | ' | ' |
Number of Options (in shares) | 307,981 | ' | ' |
Weighted-Average Remaining Contractual Life | '6 years 8 months 12 days | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $24.80 | ' | ' |
Aggregate Intrinsic Value | 5.5 | ' | ' |
Options Exercisable | ' | ' | ' |
Number of Options (in shares) | 122,378 | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $25.92 | ' | ' |
Aggregate Intrinsic Value | 2.1 | ' | ' |
$30.15 - $34.61 | Stock options | ' | ' | ' |
Exercise Price | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $30.15 | ' | ' |
Exercise price, high end of range (in dollars per share) | $34.61 | ' | ' |
Options Vested or Expected to Vest | ' | ' | ' |
Number of Options (in shares) | 178,761 | ' | ' |
Weighted-Average Remaining Contractual Life | '6 years 1 month 6 days | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $31.84 | ' | ' |
Aggregate Intrinsic Value | 2 | ' | ' |
Options Exercisable | ' | ' | ' |
Number of Options (in shares) | 73,045 | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $32.72 | ' | ' |
Aggregate Intrinsic Value | 0.7 | ' | ' |
$35.92 - $42.24 | Stock options | ' | ' | ' |
Exercise Price | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $35.92 | ' | ' |
Exercise price, high end of range (in dollars per share) | $42.24 | ' | ' |
Options Vested or Expected to Vest | ' | ' | ' |
Number of Options (in shares) | 116,410 | ' | ' |
Weighted-Average Remaining Contractual Life | '3 years 3 months 18 days | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $37.30 | ' | ' |
Aggregate Intrinsic Value | 0.6 | ' | ' |
Options Exercisable | ' | ' | ' |
Number of Options (in shares) | 116,410 | ' | ' |
Weighted-Average Exercise Price (in dollars per share) | $37.30 | ' | ' |
Aggregate Intrinsic Value | $0.60 | ' | ' |
Stock_Compensation_Plans_Detai2
Stock Compensation Plans (Details 3) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Number of Stock Options | ' |
Outstanding at the beginning of the period (in shares) | 345,031 |
Add: Options granted (in shares) | 111,150 |
Less: Options vested (in shares) | 124,743 |
Less: Options forfeited/cancelled (in shares) | 3,002 |
Outstanding at the end of the period (in shares) | 328,436 |
Weighted-Average Grant Date Fair Value | ' |
Outstanding at the beginning of the period (in dollars per share) | $8.26 |
Add: Options granted (in dollars per share) | $9.61 |
Less: Options vested (in dollars per share) | $7.23 |
Less: Options forfeited/cancelled (in dollars per share) | $8.54 |
Outstanding at the end of the period (in dollars per share) | $9.11 |
Stock options | ' |
Additional disclosures | ' |
Shares outstanding that vested and would have been exercisable had the participants reached retirement age | 60,000 |
Accelerated compensation expense (in dollars) | $0.40 |
Aggregate grant date fair value of options subject to accelerated vesting | 0.5 |
Aggregate grant date fair value of options vested, including options subject to accelerated vesting | $1.40 |
Stock_Compensation_Plans_Detai3
Stock Compensation Plans (Details 4) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Excess tax benefits (deficiency) related to the exercise or vesting of stock-based awards | $2.60 | $6.10 | $1 |
Performance units | ' | ' | ' |
Stock Compensation Plans | ' | ' | ' |
Granted (in shares) | 78,900 | 103,000 | 124,800 |
Percentage of target to be awarded, low end of range | 40.00% | ' | ' |
Percentage of target to be awarded, high end of range | 200.00% | ' | ' |
RSUs earned (in shares) | 95,000 | ' | ' |
Common stock earned as a percentage of the performance unit target | 120.00% | ' | ' |
Market price at grant date of performance units | $31.23 | ' | ' |
Unvested stock-based awards (other than stock options) | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 97,900 | ' | 205,800 |
Shares granted | 78,900 | 103,000 | 124,800 |
Performance shares vested | -97,900 | ' | -330,000 |
Shares expired or cancelled | -1,900 | -5,100 | -600 |
Outstanding at the end of the period (in shares) | 77,000 | 97,900 | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $36.13 | ' | $10.59 |
Shares granted (in dollars per share) | $49.28 | $36.13 | $27.32 |
Performance shares vested (in dollars per share) | $36.13 | ' | $16.94 |
Shares expired or cancelled (in dollars per share) | $49.28 | $36.13 | $20.56 |
Outstanding at the end of the period (in dollars per share) | $49.28 | $36.13 | ' |
RSUs | ' | ' | ' |
Stock Compensation Plans | ' | ' | ' |
Granted (in shares) | 12,220 | 12,912 | 55,523 |
Unvested stock-based awards (other than stock options) | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 221,563 | 1,045,830 | 387,560 |
Shares granted | 12,220 | 12,912 | 55,523 |
Shares vested | -220,762 | -837,179 | -81,276 |
Performance shares vested | 145,871 | ' | 693,208 |
Shares expired or cancelled | -6,701 | ' | -9,185 |
Outstanding at the end of the period (in shares) | 152,191 | 221,563 | 1,045,830 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $16.81 | $9.87 | $13.97 |
Shares granted (in dollars per share) | $31.26 | $22.72 | $14.68 |
Shares vested (in dollars per share) | $17.23 | $8.23 | $12.81 |
Performance shares vested (in dollars per share) | $24.25 | ' | $7.74 |
Shares expired or cancelled (in dollars per share) | $19.73 | ' | $25.36 |
Outstanding at the end of the period (in dollars per share) | $24.36 | $16.81 | $9.87 |
Units issued in lieu of dividends (in shares) | 950 | 887 | 48,323 |
Aggregate pre-tax intrinsic value of outstanding RSUs | 6.3 | ' | ' |
Aggregate pre-tax intrinsic value of restricted stock and RSUs that vested during the period | $9.30 | $21.60 | $1.70 |
RSUs | Non-employee members of the board of directors | ' | ' | ' |
Stock Compensation Plans | ' | ' | ' |
Granted (in shares) | 11,270 | ' | ' |
Market price at grant date of performance units | $31.07 | ' | ' |
Vesting period | '1 year | ' | ' |
Unvested stock-based awards (other than stock options) | ' | ' | ' |
Shares granted | 11,270 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 |
item | 2013 Stock Purchase Plan | 2013 Stock Purchase Plan | 2012 Stock Purchase Plan | 2012 Stock Purchase Plan | |||
Stockholders' equity | ' | ' | ' | ' | ' | ' | ' |
Authorized amount of repurchase under the stock purchase plan | ' | ' | ' | $10 | ' | ' | ' |
Preceding period in which repurchases were allowed under the plan | ' | ' | ' | ' | ' | '12 months | ' |
Common stock purchased under the stock purchase plan (in shares) | ' | ' | ' | ' | ' | ' | 158,000 |
Cost of shares of common stock acquired | ' | 4.1 | ' | ' | 0 | ' | 4.1 |
Cost of shares acquired by the entity | $4.60 | $7.60 | $0.50 | ' | ' | ' | ' |
Authorized shares of common stock | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' |
Voting rights per common share | 1 | ' | ' | ' | ' | ' | ' |
Shares acquired by the entity | 111,000 | 302,000 | 25,000 | ' | ' | ' | ' |
Number of business days after which rights distribution date occurs | '10 days | ' | ' | ' | ' | ' | ' |
Minimum percentage of beneficial ownership interest in the entity's common stock to be achieved by a person or group for the rights to be exercisable | 15.00% | ' | ' | ' | ' | ' | ' |
Authorized shares of preferred stock | 20,000,000 | ' | ' | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | ' | ' | ' | ' | ' | ' |
Minimum number of series of preferred stock to be issued | 1 | ' | ' | ' | ' | ' | ' |
Number of preferred shares issued | 0 | ' | ' | ' | ' | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments | ' | ' | ' |
Minimum term of operating leases | '1 year | ' | ' |
Future minimum lease obligations | ' | ' | ' |
2014 | $1.80 | ' | ' |
2015 | 1.2 | ' | ' |
2016 | 0.8 | ' | ' |
2017 | 0.3 | ' | ' |
Future minimum lease obligations | 4.1 | ' | ' |
Rent expense under operating leases | 4.5 | 4.2 | 3.2 |
Purchase Commitments | ' | ' | ' |
2014 | 7.6 | ' | ' |
2015 | 1 | ' | ' |
2016 | 1 | ' | ' |
2017 | $1 | ' | ' |
Contingencies_and_Legal_Matter1
Contingencies and Legal Matters (Details) | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2011 | Jan. 31, 2012 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | United States | Germany | Minimum | Maximum | German tax authorities | German tax authorities | German tax authorities | |
item | item | USD ($) | USD ($) | EUR (€) | EUR (€) | EUR (€) | |||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax assessment amount | ' | ' | ' | ' | ' | ' | € 3.70 | ' | ' |
Payment against the tax assessments | ' | ' | ' | ' | ' | ' | ' | 1.9 | ' |
Revised tax assessment resulting from settlement between the Company and the foreign tax authorities | ' | 0 | ' | ' | ' | ' | ' | ' | 0.5 |
Refund received of tax prepayments from foreign tax authorities | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 |
Planned annual capital expenditures for environmental projects during the period from 2014 through 2016 | ' | ' | ' | ' | $1 | $2 | ' | ' | ' |
Number of regular full-time employees | 1,875 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hourly employees | ' | ' | 735 | 495 | ' | ' | ' | ' | ' |
Number of salaried employees | ' | ' | 360 | 285 | ' | ' | ' | ' | ' |
Percentage of salaried employees eligible to be represented by Mining, Chemicals and Energy Trade Union (IG BCE) | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Percentage of hourly employees eligible to be represented by Mining, Chemicals and Energy Trade Union (IG BCE) | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued operations: | ' | ' | ' | ' | ' |
Income (loss) before income taxes | ' | $4.20 | $4.20 | ($0.10) | ($0.30) |
Provision (benefit) for income taxes | ' | 1.6 | 1.6 | -4.5 | -0.1 |
Income (loss) from discontinued operations, net of income taxes | ' | ' | 2.6 | 4.4 | -0.2 |
Amount of additional taxes due | 0 | ' | ' | ' | ' |
Non-cash tax benefit related to the reversal of certain liabilities for uncertain income tax positions | $4.50 | ' | $1.30 | $0.50 | $0.10 |
Business_Segment_and_Geographi2
Business Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Business Segment and Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $204.90 | $214.10 | $212.30 | $213.20 | $192.60 | $206.30 | $211.70 | $198.20 | $844.50 | $808.80 | $696 |
Operating income (loss) | 22.6 | 16.4 | 22.6 | 22.2 | 15.9 | 16.3 | 22 | 16.2 | 83.8 | 70.4 | 56.6 |
Acquisition-related integration costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 5.8 | ' |
SERP settlement charge | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 3.5 | ' |
Loss on early retirement of debt | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.6 | 2.4 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 29.4 | 28.8 | 31 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 28.7 | 25.1 | 23.1 |
TOTAL ASSETS | 675.9 | ' | ' | ' | 610.7 | ' | ' | ' | 675.9 | 610.7 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 564.4 | 543.4 | 416.2 |
TOTAL ASSETS | 365.1 | ' | ' | ' | 322.5 | ' | ' | ' | 365.1 | 322.5 | ' |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TOTAL ASSETS | 1 | ' | ' | ' | 0.2 | ' | ' | ' | 1 | 0.2 | ' |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 280.1 | 265.4 | 279.8 |
TOTAL ASSETS | 309.8 | ' | ' | ' | 288 | ' | ' | ' | 309.8 | 288 | ' |
Technical Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 416.1 | 406.6 | 421.1 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 38.6 | 37.6 | 33.8 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 16.4 | 15.7 | 17.6 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 21.5 | 14.7 | 18 |
TOTAL ASSETS | 365.9 | ' | ' | ' | 348.5 | ' | ' | ' | 365.9 | 348.5 | ' |
Fine Paper | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 401.8 | 372.7 | 274.9 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 59.8 | 50 | 39.7 |
Acquisition-related integration costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 5.8 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9.3 | 9.4 | 9.5 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 10.2 | 4.2 |
TOTAL ASSETS | 206.9 | ' | ' | ' | 214 | ' | ' | ' | 206.9 | 214 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 26.6 | 29.5 | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 2.4 | ' |
Unallocated corporate costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -15.8 | -19.6 | -16.9 |
SERP settlement charge | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 3.5 | ' |
Loss on early retirement of debt | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.2 | ' |
Corporate and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3.7 | 3.7 | 3.9 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2.2 | 0.2 | 0.9 |
TOTAL ASSETS | $103.10 | ' | ' | ' | $48.20 | ' | ' | ' | $103.10 | $48.20 | ' |
Business_Segment_and_Geographi3
Business Segment and Geographic Information (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentrations | ' | ' | ' |
Number of customers | 3 | ' | ' |
Sales | Customer concentration risk | Three customers | Fine Paper | ' | ' | ' |
Concentrations | ' | ' | ' |
Percentage of concentration risk | 30.00% | 30.00% | 40.00% |
Supplemental_Data_Details
Supplemental Data (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advertising and Research Development Expenses | ' | ' | ' |
Advertising expense | $7.60 | $8.40 | $6.20 |
Research and development expense | 6.1 | 5.6 | 5.4 |
Accounts Receivable - net | ' | ' | ' |
From customers | 92 | 81.5 | ' |
Less allowance for doubtful accounts and sales discounts | -1.5 | -1.9 | ' |
Total | 90.5 | 79.6 | ' |
Inventories by major class: | ' | ' | ' |
Raw materials | 20.3 | 20.8 | ' |
Work in progress | 22.9 | 24.9 | ' |
Finished goods | 67.3 | 66.3 | ' |
Supplies and other | 4.5 | 3.7 | ' |
Inventories, gross | 115 | 115.7 | ' |
Excess of FIFO over LIFO cost | -13.9 | -12.8 | ' |
Total | 101.1 | 102.9 | ' |
FIFO values of inventories valued on the LIFO method | 86.6 | 91.8 | ' |
Prepaid and Other Current Assets | ' | ' | ' |
Prepaid and other current assets | 10.3 | 7.7 | ' |
Spare parts | 6.7 | 6.4 | ' |
Total | $17 | $14.10 | ' |
Supplemental_Data_Details_2
Supplemental Data (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment - Net | ' | ' | ' |
Gross property, plant and equipment | $637.10 | $604.70 | ' |
Less accumulated depreciation | 375.4 | 349.9 | ' |
Property, plant and equipment-net | 261.7 | 254.8 | ' |
Depreciation expense | 26.7 | 26.2 | 28.2 |
Interest expense capitalized | 0.2 | 0.1 | 0.1 |
Accrued Expenses | ' | ' | ' |
Accrued salaries and employee benefits | 23.1 | 23.4 | ' |
Amounts due to customers | 7.5 | 7.9 | ' |
Liability for uncertain income tax positions | 0.4 | 1.6 | ' |
Accrued interest | 1.2 | 0.8 | ' |
Accrued income taxes | 2 | 3.1 | ' |
Other | 11.6 | 10.8 | ' |
Total | 45.8 | 47.6 | ' |
Noncurrent Employee Benefits and Other Obligations | ' | ' | ' |
Pension benefits | 57.1 | 83.7 | ' |
Post-employment benefits other than pensions | 40.6 | 47.4 | ' |
Total | 97.7 | 131.1 | ' |
Long-term disability benefits due to Terrace Bay retirees | 4 | 4.8 | ' |
Land and land improvements | ' | ' | ' |
Property, Plant and Equipment - Net | ' | ' | ' |
Gross property, plant and equipment | 21.7 | 20.8 | ' |
Buildings | ' | ' | ' |
Property, Plant and Equipment - Net | ' | ' | ' |
Gross property, plant and equipment | 114.1 | 105.1 | ' |
Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment - Net | ' | ' | ' |
Gross property, plant and equipment | 496.3 | 465.1 | ' |
Construction in progress | ' | ' | ' |
Property, Plant and Equipment - Net | ' | ' | ' |
Gross property, plant and equipment | $5 | $13.70 | ' |
Supplemental_Data_Details_3
Supplemental Data (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' |
Cash paid during the year for interest, net of interest expense capitalized | $9.90 | $13.10 | $15.20 |
Cash paid during the year for income taxes, net of refunds | 5.4 | 6.7 | 4.7 |
Non-cash investing activities: | ' | ' | ' |
Liability for equipment acquired | 1.8 | 2.2 | 2.4 |
Net cash provided by (used in) changes in working capital | ' | ' | ' |
Accounts receivable | -9.4 | -7.7 | -1.9 |
Inventories | 4.8 | -26.8 | -0.1 |
Income taxes (receivable) payable | -0.1 | -1.1 | -0.5 |
Prepaid and other current assets | -2.7 | ' | -0.1 |
Accounts payable | 1.3 | 5 | 0.5 |
Accrued expenses | -0.5 | 9.7 | -5.1 |
Net cash provided by (used in) changes in operating working capital (Note 15) | ($6.60) | ($20.90) | ($7.20) |
Unaudited_Quarterly_Data_Detai
Unaudited Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unaudited Quarterly Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $204.90 | $214.10 | $212.30 | $213.20 | $192.60 | $206.30 | $211.70 | $198.20 | $844.50 | $808.80 | $696 |
Gross profit | 42.2 | 37.1 | 42.8 | 43.5 | 37.7 | 35.7 | 43.8 | 41.9 | 165.6 | 159.1 | 125.4 |
Operating Income | 22.6 | 16.4 | 22.6 | 22.2 | 15.9 | 16.3 | 22 | 16.2 | 83.8 | 70.4 | 56.6 |
Income from continuing operations | 13.1 | 11.4 | 12.8 | 12.1 | 9.1 | 9.2 | 12.7 | 8.9 | 49.4 | 39.9 | 29.3 |
Earnings Per Common Share From Continuing Operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.80 | $0.69 | $0.79 | $0.74 | $0.56 | $0.56 | $0.78 | $0.55 | $3.02 | $2.46 | $1.91 |
Diluted (in dollars per share) | $0.78 | $0.68 | $0.77 | $0.73 | $0.55 | $0.55 | $0.77 | $0.54 | $2.96 | $2.41 | $1.82 |
Integration/restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 5.8 | ' |
Loss on early retirement of debt | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.6 | 2.4 |
SERP settlement charge | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | $3.50 | ' |
SCHEDULE_II_SCHEDULE_OF_VALUAT1
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Allowance for doubtful accounts | Allowance for doubtful accounts | Allowance for doubtful accounts | Allowance for sales discounts | Allowance for sales discounts | Allowance for sales discounts | Valuation allowance - deferred income taxes | Valuation allowance - deferred income taxes | Valuation allowance - deferred income taxes | |
Movement in valuation and qualifying accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Beginning of Period | $1.40 | $1.40 | $1.40 | $0.50 | $0.50 | $0.50 | $0.40 | $1.70 | $1.70 |
Charged to Costs and Expenses | 0.4 | 0.2 | 0.6 | 0.1 | ' | ' | ' | -1.3 | ' |
Write-offs and Reclassifications | -0.9 | -0.2 | -0.6 | ' | ' | ' | -0.4 | ' | ' |
Balance at End of Period | $0.90 | $1.40 | $1.40 | $0.60 | $0.50 | $0.50 | ' | $0.40 | $1.70 |