Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Neenah Paper Inc | ||
Entity Central Index Key | 1,296,435 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 985,000,000 | ||
Entity Common Stock, Shares Outstanding | 16,725,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 887.7 | $ 839.7 | $ 781.7 |
Cost of products sold | 692.3 | 668.9 | 621.8 |
Gross profit | 195.4 | 170.8 | 159.9 |
Selling, general and administrative expenses | 86.5 | 78 | 74.7 |
Integration/restructuring costs | 6.5 | 2.3 | 0.4 |
Pension plan settlement charge | 3.5 | 0.2 | |
Loss on early extinguishment of debt | 0.2 | 0.5 | |
Other expense - net | 1 | 0.2 | 1.5 |
Operating income | 101.4 | 86.6 | 82.6 |
Interest expense | 11.7 | 11.4 | 11.2 |
Interest income | (0.2) | (0.3) | (0.2) |
Income from continuing operations before income taxes | 89.9 | 75.5 | 71.6 |
Provision for income taxes | 29.4 | 7.5 | 23.1 |
Income from continuing operations | 60.5 | 68 | 48.5 |
Income (loss) from discontinued operations, net of taxes (Note 12) | (9.4) | 0.7 | 3.5 |
Net income | $ 51.1 | $ 68.7 | $ 52 |
Basic | |||
Continuing operations | $ 3.58 | $ 4.05 | $ 2.97 |
Discontinued operations | (0.56) | 0.04 | 0.21 |
Basic (in dollars per share) | 3.02 | 4.09 | 3.18 |
Diluted | |||
Continuing operations | 3.53 | 3.99 | 2.91 |
Discontinued operations | (0.55) | 0.04 | 0.21 |
Diluted (in dollars per share) | $ 2.98 | $ 4.03 | $ 3.12 |
Weighted Average Common Shares Outstanding | |||
Basic (in shares) | 16,754 | 16,584 | 16,072 |
Diluted (in shares) | 17,012 | 16,872 | 16,403 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 51.1 | $ 68.7 | $ 52 |
Reclassification of amounts recognized in the consolidated statement of operations: | |||
Amortization of adjustments to pension and other postretirement benefit liabilities | 7.1 | 4.7 | 6.5 |
Pension plan settlement/curtailment charge (2015 amount in discontinued operations) | 5.5 | 3.5 | 0.2 |
Amounts recognized in the consolidated statement of operations | 12.6 | 8.2 | 6.7 |
Unrealized foreign currency translation gain (loss) | (15) | (23.7) | 8.7 |
Net gain (loss) from pension and other postretirement benefit liabilities | (6.3) | (34.3) | 15.8 |
Deferred loss on "available-for-sale" securities | (0.1) | ||
Gain (loss) from other comprehensive income items before income taxes | (8.7) | (49.8) | 31.1 |
Provision (benefit) for income taxes | 1.2 | (8.7) | 8.6 |
Other comprehensive income (loss) | (9.9) | (41.1) | 22.5 |
Comprehensive income | $ 41.2 | $ 27.6 | $ 74.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 4.2 | $ 72.6 |
Accounts receivable, net | 97.3 | 84.7 |
Inventories | 120.6 | 101.2 |
Prepaid and other current assets | 24.5 | 14.3 |
Assets held for sale (Note 12) | 46.3 | |
Total Current Assets | 246.6 | 319.1 |
Property, Plant and Equipment - net | 323 | 241.7 |
Deferred Income Taxes | 20 | 45.7 |
Goodwill (Note 4) | 72.2 | 50.5 |
Intangible Assets - net (Note 4) | 79.1 | 56.6 |
Other Assets | 10.5 | 10.9 |
TOTAL ASSETS | 751.4 | 724.5 |
Current Liabilities | ||
Debt payable within one year | 1.2 | 1.4 |
Accounts payable | 53.7 | 44.5 |
Accrued expenses | 51.2 | 43.8 |
Liabilities related to facilities held for sale (Note 12) | 27.3 | |
Total Current Liabilities | 106.1 | 117 |
Long-term Debt | 228.2 | 226.8 |
Deferred Income Taxes | 11.8 | 9.9 |
Noncurrent Employee Benefits | 89.7 | 80.9 |
Other Noncurrent Obligations | 4 | 1.2 |
TOTAL LIABILITIES | $ 439.8 | $ 435.8 |
Commitments and Contingencies (Notes 10 and 11) | ||
Stockholders' Equity | ||
Common stock, par value $0.01 - authorized: 100,000,000 shares; issued and outstanding: 18,063,000 shares and 17,383,000 shares | $ 0.2 | $ 0.2 |
Treasury stock, at cost: 1,244,000 shares and 1,101,000 shares | (40.1) | (31.7) |
Additional paid-in capital | 310.8 | 300.4 |
Retained earnings | 119 | 88.2 |
Accumulated other comprehensive loss | (78.3) | (68.4) |
Total Stockholders' Equity | 311.6 | 288.7 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 751.4 | $ 724.5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 18,063,000 | 17,849,000 |
Common stock, outstanding shares | 18,063,000 | 17,849,000 |
Treasury stock, shares | 1,244,000 | 1,101,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings/Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2012 | $ 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) | |||||
Dividends-in-kind | 0.1 | |||||
Excess tax benefits from stock-based compensation | 2.6 | 2.6 | ||||
Stock options exercised | (0.6) | 3.7 | ||||
Stock options exercised (in shares) | 336 | |||||
Restricted stock vesting (Note 9) | (4) | |||||
Restricted stock vesting (in shares) | 221 | |||||
Stock-based compensation | 4.9 | |||||
Balance at Dec. 31, 2013 | $ 0.2 | (27.2) | 285.2 | 36.6 | (27.3) | |
Balance (in shares) at Dec. 31, 2013 | 17,383 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 68.7 | 68.7 | ||||
Other comprehensive income (loss), net of income taxes | (41.1) | (41.1) | ||||
Dividends declared | (17.1) | |||||
Excess tax benefits from stock-based compensation | 5.6 | 5.6 | ||||
Shares purchased (Note 9) | (1.1) | |||||
Stock options exercised | 3.6 | |||||
Stock options exercised (in shares) | 316 | |||||
Restricted stock vesting (Note 9) | (3.4) | |||||
Restricted stock vesting (in shares) | 150 | |||||
Stock-based compensation | 6 | |||||
Balance at Dec. 31, 2014 | $ 0.2 | (31.7) | 300.4 | 88.2 | (68.4) | 288.7 |
Balance (in shares) at Dec. 31, 2014 | 17,849 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 51.1 | 51.1 | ||||
Other comprehensive income (loss), net of income taxes | (9.9) | (9.9) | ||||
Dividends declared | (20.3) | |||||
Excess tax benefits from stock-based compensation | 2.6 | 2.6 | ||||
Shares purchased (Note 9) | (5.9) | |||||
Stock options exercised | 1.2 | |||||
Stock options exercised (in shares) | 108 | |||||
Restricted stock vesting (Note 9) | (2.5) | |||||
Restricted stock vesting (in shares) | 106 | |||||
Stock-based compensation | 6.5 | |||||
Other/Currency | 0.1 | |||||
Balance at Dec. 31, 2015 | $ 0.2 | $ (40.1) | $ 310.8 | $ 119 | $ (78.3) | $ 311.6 |
Balance (in shares) at Dec. 31, 2015 | 18,063 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 51.1 | $ 68.7 | $ 52 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 31.5 | 30 | 29.4 |
Stock-based compensation | 6.5 | 6 | 4.9 |
Excess tax benefit from stock-based compensation (Note 8) | (2.6) | (5.6) | (2.6) |
Deferred income tax provision | 8.3 | 3.7 | 19.3 |
Non-cash effects of changes in liabilities for uncertain income tax positions | (0.1) | (2) | (0.1) |
Loss on early extinguishment of debt | 0.2 | 0.5 | |
Inventory acquired in acquisitions (Note 3) | (1.8) | ||
Pension settlement charge, net of plan payments | 3.5 | (0.2) | |
Non-cash loss on discontinued operations | 12 | ||
(Gain) loss on asset dispositions | (0.1) | 0.2 | 0.5 |
Net cash provided by (used in) changes in operating working capital, net of effect of acquisitions (Note 14) | 1.8 | 9 | (6.6) |
Pension and other postemployment benefits | 2.9 | (18.3) | (11.5) |
Other | (0.1) | (0.9) | (0.3) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 111.2 | 94.5 | 83.5 |
INVESTING ACTIVITIES | |||
Capital expenditures | (48.1) | (27.9) | (28.7) |
Purchases of marketable securities | (0.2) | (0.6) | (0.1) |
Purchase of brands (Note 3) | (5.2) | ||
Net proceeds from sale of discontinued operations | 5.4 | ||
Proceeds from sale of property, plant and equipment | 0.5 | 0.6 | |
Acquisitions (Note 3) | (118.2) | (72.4) | |
Purchase of equity investment | (2.9) | ||
Other | 0.5 | (1.1) | 0.1 |
NET CASH USED IN INVESTING ACTIVITIES | (160.1) | (104.9) | (33.3) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of longterm debt | 151.6 | 49.5 | 218.8 |
Debt issuance costs | (2.4) | (3.5) | |
Repayments of long-term debt | (145.6) | (5.6) | (209.2) |
Short-term borrowings | 6.5 | 19.3 | |
Repayments of short-term borrowings | (25.4) | (0.1) | |
Proceeds from exercise of stock options | 1.2 | 3.6 | 3.7 |
Excess tax benefit from stockbased compensation (Note 8) | 2.6 | 5.6 | 2.6 |
Cash dividends paid | (20.3) | (17.1) | (11.5) |
Shares purchased (Note 9) | (8.4) | (4.5) | (4.6) |
Other | 0.1 | (0.5) | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (18.8) | 10.2 | 15 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.7) | (0.6) | 0.4 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (68.4) | (0.8) | 65.6 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 72.6 | 73.4 | 7.8 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 4.2 | $ 72.6 | $ 73.4 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
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 and packaging business (formerly known as the fine paper business). On January 1, 2015, we changed the name of our fine paper business to fine paper and packaging. The name change better reflects the increasing importance, and plans for continued growth, of our premium packaging products. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media, tape and abrasives backings products, and durable label and specialty substrate products. The fine paper and packaging business is a supplier of branded premium printing, packaging and other high end 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 July 1, 2015, the Company reorganized its internal management structure and, accordingly, addressed its segment reporting structure. As a result of this reorganization, the Other operating segment (composed of the non-premium Index, Tag and Vellum Bristol product lines acquired as part of the purchase of the Wausau brands) was combined with the Fine Paper and Packaging operating segment to reflect the manner in which this business is managed. In addition, as part of the FiberMark acquisition, the Company acquired certain product lines composed of papers sold to converters for end uses such as covering materials for datebooks, diaries, yearbooks and traditional photo albums. Due to the dissimilar nature of these products, management decided that they would not be managed as part of either the existing Fine Paper and Packaging or Technical Products businesses. These product lines represent an operating segment which does not meet the quantitative threshold for a reportable segment. See Note 13, "Business Segment and Geographic Information." On October 31, 2015, the Company sold its paper mill located in Lahnstein, Germany (the "Lahnstein Mill") to the Kajo Neukirchen Group (the "Buyer") for net cash proceeds of approximately $5.4 million. For the year ended December 31, 2015, discontinued operations reported on the consolidated statements of operations reflect the results of operations and the loss on sale of the Lahnstein Mill. The consolidated statements of operations for the years ended December 31, 2014 and 2013 have been restated to report results of the Lahnstein Mill as discontinued operations. As of December 31, 2014, the assets and liabilities of the Lahnstein Mill are classified as assets held for sale on the consolidated balance sheet. See Note 12, "Discontinued Operations and Assets Held for Sale." On August 1, 2015, the Company purchased all of the outstanding equity of ASP FiberMark, LLC ("FiberMark") from ASP FiberMark Holdings, LLC ("American Securities") for approximately $118 million (the "FiberMark Acquisition"). The purchase price was financed through $80 million of cash on hand and the balance from available borrowing capacity on the Company's revolving credit facility. FiberMark is a specialty coatings and finishing company with a strong presence in luxury packaging and technical products. In September 2015, the Company announced the planned closure of the Fitchburg, Massachusetts mill (the "Fitchburg Mill"), acquired in the FiberMark Acquisition to consolidate its manufacturing footprint. Manufacturing operations at the Fitchburg Mill ceased in December 2015. See Note 3, "Acquisitions" and Note 12, "Discontinued Operations and Assets Held for Sale." On July 1, 2014, the Company purchased all of the outstanding equity of Crane Technical Materials, Inc. from Crane & Co., Inc. for approximately $72 million. The acquired technical materials business provides performance-oriented wet laid nonwoven media for filtration end markets as well as environmental, energy and industrial uses. The acquired technical materials business has two manufacturing facilities in Pittsfield, Massachusetts. See Note 3, "Acquisitions." 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." Basis of Presentation The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, goodwill, 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. Earnings per Share ("EPS") The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC Topic 260") 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 lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of Restricted Stock Units with performance conditions ("Performance Units"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2015, 2014 and 2013, approximately 45,000, 15,000 and 450,000 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 respective 12-month periods during which 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, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per diluted common share Year Ended December 31, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding Add: Assumed incremental shares under stock-based compensation plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2015 and 2014, $0.3 million and $0.4 million, respectively, of the Company's cash and cash equivalents 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 the Company's operations in Germany, the United Kingdom (the "U.K.") and Canada are translated from Euros, British Pounds 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, the U.K. 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 expensed 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, 2015, 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 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, 2015. In the Company's testing of goodwill for impairment, it estimated the fair value of the reporting units 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, 2015 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 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Plan assets subject to leveling: Cash and cash equivalents $ $ $ — $ — $ — $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan assets measured at NAV: Investment funds (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets at fair value $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Certain pension plan assets are measured at NAV (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices. Following is the fair value of each such investment category: • U.S and Non-U.S. Equities ($92.4 million and $99.2 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • U.S and Non-U.S. Fixed Income Securities ($185.8 million and $188.1 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • Hedge Funds ($23.2 million at December 31, 2015) — These funds are valued using net asset values calculated by the fund managers and allow for quarterly or more frequent redemptions. 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 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. December 31, 2015 December 31, 2014 Carrying Value Fair Value (a) Carrying Value Fair Value (a) 2021 Senior Notes (5.25% fixed rate) $ $ $ $ Global Revolving Credit Facilities (variable rates) Second German Loan Agreement (2.5% fixed rate) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total debt $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Fair value for all 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, 2015, the Company had $3.3 million in marketable securities classified as "Other Assets" on the consolidated balance sheet. The cost of such marketable securities was $3.4 million. Fair value for the Company's marketable securities was estimated from Level 1 inputs. 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, 2015 2014 Unrealized foreign currency translation losses $ ) $ ) Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $33.8 million and $31.1 million, respectively) ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive loss $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents changes in accumulated other comprehensive income ("AOCI"): Year Ended December 31, 2015 2014 2013 Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Unrealized foreign currency translation gains (losses) $ ) $ — $ ) $ ) $ — $ ) $ $ — $ Adjustment to pension and other benefit liabilities ) ) ) ) Unrealized loss on "available-for-sale" securities — — — — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) $ ) $ ) $ ) $ ) $ $ ) $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2015, 2014 and 2013, the Company reclassified $7.1 million, $4.7 million and $6.5 million, respectively, of costs from accumulated other comprehensive income to cost of products sold and selling, general and administrative expenses on the Consolidated Statements of Operations. For the years ended December 31, 2015, 2014 and 2013, the Company recognized an income tax benefit of $2.7 million, $1.7 million and $2.5 million, respectively, related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. For the year ended December 31, 2015, the Company reclassified $5.5 million of costs from accumulated other comprehensive income to loss from discontinued operations on the Consolidated Statements of Operations. For the years ended December 31, 2014 and 2013, the Company reclassified $3.5 million and $0.2 million, respectively, of costs from accumulated other comprehensive income to pension plan settlement charge on the Consolidated Statements of Operations. For the years ended December 31, 2014 and 2013, the Company recognized an income tax benefit of $1.3 million and $0.1 million, respectively, related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-03, Interest-Imputation of Interest ("ASU 2015-03"). ASU 2015-03 requires that unamortized debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. ASU 2015-03 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. In August 2015, the FASB issued ASU No. 2015-15, Imputation of Interest (Subtopic 835-30) ("ASU No. 2015-15"). ASU No. 2015-15 updates the changes in ASU No. 2015-03 based on an announcement of the staff of the U.S. Securities and Exchange Commission. ASU No. 2015-15 provides an exception to ASU No. 2015-03 allowing debt issuance costs related to line-of-credit arrangements to continue to be presented as an asset regardless of whether there are any outstanding borrowings under such arrangement. Early adoption of ASU 2015-03 is permitted and the Company elected to early adopt ASU No. 2015-03 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-03 resulted in the reclassification of $5.0 million and $6.1 million of unamortized deferred financing costs from Other Assets to Long-Term Debt on the consolidated balance sheet at December 31, 2015 and 2014, respectively. In July 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"). ASU 2015-07 requires that investments for which fair value is measured at net asset value per share ("NAV") (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy. By removing these investments from the fair value hierarchy, ASU 2015-07 ensures that all investments categorized in the fair value hierarchy are classified using a consistent approach. ASU 2015-07 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. Early adoption of ASU 2015-07 is permitted and the Company elected to early adopt ASU No. 2015-07 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-07 resulted in the removal of approximately $301.4 million and $287.3 million of pension plan assets from the fair value hierarchy at December 31, 2015 and 2014, respectively. See "Fair Value Measurements" above. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) — Simplifying the Accounting for Measurement-Period Adjustments ("ASU No. 2015-16"). ASU No. 2015-16 changes the accounting for measurement-period adjustments related to business combinations. Currently, an acquiring entity is required to retrospectively adjust the balance sheet amounts of the acquiree recognized at the acquisition date with a corresponding adjustment to goodwill during the measurement period, as well as revise comparative information for prior periods presented within financial statements as needed, including revising income effects, such as depreciation and amortization, as a result of changes made to the balance sheet amounts of the acquiree. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The measurement period is the period after the acquisition date during which the acquirer may adjust the balance sheet amounts recognized for a business combination (generally up to one year from the date of acquisition). ASU No. 2015-16 eliminates the requirement to make such retrospective adjustments, and, instead requires the acquiring entity to record these adjustments in the reporting period they are determined. Additionally, the changes require the acquiring entity to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period income by line item that would have been recorded in previous reporting periods if the adjustment to the balance sheet amounts had been recognized as of the acquisition date. ASU No. 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. Early adoption is permitted and the Company elected to early adopt ASU 2015-16 as of December 31, 2015. As a result of the adoption of ASU 2015-16, the Company recorded the measurement-period adjustments related to the FiberMark Acquisition determined during the three months ended December 31, 2015 on the December 31, 2015 Consolidated Balance Sheet. See Note 3, "Acquisitions." In November 2015, the FASB issued ASU 2015-17, Income Taxes ("ASU 2015-17"). ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of ASU 2015-17, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. ASU 2015-17 represents a change in accounting principle and is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the Company elected to early adopt ASU 2015-17 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-17 resulted in the reclassification of $19.8 million and $15.8 million from current deferred income taxes to noncurrent deferred income taxes on the consolidated balance sheet at December 31, 2015 and 2014, respectively. Accounting Standards Changes In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers ("ASC Topic 606"). ASU 2014-09 supersedes the revenue recognition guidance in ASC Topic 605, Revenue Recognition. The core principle of the guidance in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Therefore, the Company will adopt ASU 2014-09 on January 1, 2017. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. As of December 31, 2015, no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | |
Acquisitions | Note 3. Acquisitions Acquisition of FiberMark On August 1, 2015, the Company purchased all of the outstanding equity of FiberMark from American Securities for approximately $118 million. FiberMark is a specialty coatings and finishing company with a strong presence in luxury packaging and technical products. In September 2015, the Company announced the planned closure of the Fitchburg Mill, acquired in the FiberMark Acquisition to consolidate its manufacturing footprint. Manufacturing operations at the Fitchburg Mill ceased in December 2015. See Note 12, "Discontinued Operations and Assets Held for Sale." The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The preliminary allocation of the purchase price is based on estimates of the fair value of assets acquired and liabilities assumed as of August 1, 2015 and are subject to adjustment as additional information is obtained. The Company has up to 12 months from the closing of the acquisition to finalize its valuations. Changes to the valuation of assets and liabilities acquired may result in adjustments to the carrying value of assets and liabilities acquired or goodwill. The Company has not identified any material unrecorded pre-acquisition contingencies. Prior to the end of the one-year purchase price allocation period, if information becomes available which would indicate it is probable that such events had occurred as of the acquisition date and the amounts can be reasonably estimated, such items will be included in the final purchase price allocation and may result in an adjustment to the carrying value of assets and liabilities acquired or goodwill. The Company did not recognize any in-process research and development assets as part of the acquisition. The following table summarizes the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed as of December 31, 2015. During the three months ended December 31, 2015, the Company reduced the amount of acquired goodwill recognized by $1.2 million from the amount reported at September 30, 2015 due to an increase in the estimated fair value associated with inventories. December 31, 2015 Assets Acquired Cash and cash equivalents $ Accounts receivable Inventories Deferred income taxes Prepaid and other current assets Property, plant and equipment Non-amortizable intangible assets Amortizable intangible assets Acquired goodwill ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Liabilities Assumed Accounts payable Accrued expenses Deferred income taxes Noncurrent employee benefits Other noncurrent obligations ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company estimated the fair value of the assets and liabilities acquired in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). The fair value of amortizable and non-amortizable intangible assets was estimated by applying a royalty rate to projected revenue, net of tax impacts and adjusted for present value considerations. The Company estimated the fair value of acquired property, plant and equipment using a combination of cost and market approaches. In general, the fair value of other acquired assets and liabilities was estimated using the cost basis of FiberMark. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets acquired was recorded as acquired goodwill. The factors contributing to the amount of goodwill recognized are based on several strategic and synergistic benefits that are expected to be realized from the acquisition of FiberMark. These benefits include entry into profitable new markets for premium packaging, performance materials and specialty papers with new capabilities and recognized brands, synergies from combining the business with Neenah's existing infrastructure, and the opportunity to accelerate sales growth in areas like premium packaging. None of the goodwill recognized as part of the FiberMark acquisition will be deductible for income tax purposes. However, the Company did acquire all of the tax attributes associated with the FiberMark assets and liabilities, including an insignificant amount of tax deductible goodwill. Approximately $18.9 million, $6.2 million and $0.4 million of the goodwill acquired in the FiberMark acquisition is allocated to the Technical Products, Fine Paper and Packaging and Other segments, respectively. For the year ended December 31, 2015, approximately 30 percent, 40 percent and 30 percent of the results of FiberMark are reported in the Technical Products, Fine Paper and Packaging, and Other segments, respectively. For the year ended December 31, 2015, the Company incurred $5.3 million of acquisition and integration costs. For the year ended December 31, 2015, net sales and income from operations before income taxes for the acquired businesses were $58.1 million and $1.5 million (excluding the acquisition related costs described above), respectively. The following selected unaudited pro forma consolidated statements of operations data for the years ended December 31, 2015 and 2014 was prepared as though the FiberMark acquisition had occurred on January 1, 201 4 . The information does not reflect future events that may occur after December 31, 2015 or any operating efficiencies or inefficiencies that may result from the FiberMark acquisition. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2015 2014 Net sales $ $ Operating income Income from continuing operations Income (loss) from discontinued operations ) Net income Earnings (Loss) Per Common Share Basic Continuing operations $ $ Discontinued Operations ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Continuing operations $ $ Discontinued Operations ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition of Crane Technical Materials On July 1, 2014, the Company purchased all of the outstanding equity of the Crane Technical Materials business for approximately $72 million. The acquired business provides performance-oriented wet laid nonwoven media for filtration end markets as well as environmental, energy and industrial uses. The results of this business are reported in the Technical Products segment from the date of acquisition. The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805. The allocation of the purchase price is based on estimates of the fair value of assets acquired and liabilities assumed as of July 1, 2014. The Company did not identify any material unrecorded pre-acquisition contingencies. The Company did not acquire any in-process research and development assets as part of the acquisition. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets acquired was recorded as acquired goodwill. The factors contributing to the amount of goodwill recognized are based on several long-term strategic benefits that are expected to be realized from the acquisition of the technical materials business. These benefits include entry into growing and profitable global markets for water filtration, environmental/emissions control, and energy management with defensible technologies and brands, and the opportunity to accelerate sales growth through synergies with the Company's existing European-based filtration business. In addition, the acquisition of brands and complementary offerings facilitates the Company's expansion into non-woven product lines containing fiberglass, polymer fibers and carbon fibers. Substantially all of the acquired goodwill will be deductible for income tax purposes and is entirely allocated to the Technical Products segment. For the year ended December 31, 2014, the Company incurred $1.0 million of acquisition-related integration costs. In addition, the Company incurred approximately $1.1 in capital costs for IT systems and infrastructure projects. For the year ended December 31, 2014, net sales and income from operations before income taxes for the acquired technical materials business were $24.1 million and $3.1 million (excluding the acquisition related integration costs described above), respectively. The following selected unaudited pro forma consolidated statements of operations data for the years ended December 31, 2014 and 2013 was prepared as though the acquisition of the technical materials business had occurred on January 1, 2013. The information does not reflect future events that may occur after December 31, 2014 or any operating efficiencies or inefficiencies that may result from the acquisition of the technical materials business. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2014 2013 Net sales $ $ Operating income Income from continuing operations Income from discontinued operations Net income Earnings Per Common Share Basic Continuing operations $ $ Discontinued Operations ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Continuing operations $ $ Discontinued Operations ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition of Southworth On January 31, 2013, the Company purchased certain premium paper brands and other assets from Southworth. The Company paid $7.0 million for (i) certain premium fine paper brands including Southworth, (ii) approximately one month of finished goods inventory valued at $1.8 million and (iii) certain converting equipment used for retail grades. The results of the Southworth brands are reported in the Fine Paper and Packaging segment from the date of acquisition. For the year ended December 31, 2013, the Company incurred $0.4 million in acquisition-related integration costs. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets The following table presents the carrying value of goodwill by business segment at December 31, 2015, 2014 and 2013 and changes in the carrying value of goodwill for the years ended December 31, 2015 and 2014. Technical Products Fine Paper and Packaging Other Gross Amount Accumulated Impairment Losses Gross Amount Net Gross Amount Net Balance at December 31, 2013 $ $ ) $ $ — $ — $ Goodwill acquired in acquisition of the technical materials business — — — Foreign currency translation ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 (1) ) — — Goodwill acquired in the Fibermark Acquisition — Foreign currency translation ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ ) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) As of December 31, 2014, $1.0 million of goodwill allocated to the Lahnstein Mill was classified as Assets Held for Sale on the Consolidated Balance Sheet. Impairment As of December 31, 2015 and 2014, there was no impairment in the carrying value of goodwill. Other Intangible Assets As of December 31, 2015, the Company had net identifiable intangible assets of $79.1 million. All such intangible assets were acquired in the acquisitions of Neenah Germany, Fox River, FiberMark and the technical materials business; and the acquisition of the Wausau and Southworth brands. The following table details amounts related to those assets. December 31, 2015 December 31, 2014 (1) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizable intangible assets Customer based intangibles $ $ ) $ $ ) Trade names and trademarks ) ) Acquired technology ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total amortizable intangible assets ) ) Trade names ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) As of December 31, 2014, $2.3 million of intangible assets allocated to the Lahnstein Mill were classified as Assets Held for Sale on the Consolidated Balance Sheet. The following table presents intangible assets acquired in conjunction with the FiberMark acquisition: Intangibles Estimated Useful Lives (Years) Intangible assets — definite lived Trade names and trademarks $ Customer based intangibles Acquired technology ​ ​ ​ ​ ​ ​ ​ ​ Total Non-amortizable trade names ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015, $49.8 million, $28.3 million and $1.0 million of such intangible assets are reported within the Technical Products, Fine Paper and Packaging and Other segments, respectively. See Note 13, "Business Segment and Geographic Information." Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2015, 2014 and 2013 was $2.9 million, $2.3 million and $1.9 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, 2016, 2017, 2018, 2019 and 2020 is $3.9 million, $3.6 million, $3.6 million, $3.6 million and $3.6 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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 32.7 percent, 9.9 percent and 32.3 percent of income from continuing operations before income taxes for the years ended December 31, 2015, 2014 and 2013, 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, 2015 2015 2014 2014 2013 2013 U.S. federal statutory income tax rate % $ % $ % $ U.S. state income taxes, net of federal income tax benefit % % % Tax on foreign dividends % % % Foreign tax rate differences (a) )% ) )% ) )% ) Foreign financing structure (b) )% ) )% ) )% ) Research and development and other tax credits (c)(d) )% ) )% ) )% ) Domestic production activities deduction )% ) — — — — Uncertain income tax positions % % % Other differences — net % % )% ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective income tax rate % $ % $ % $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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. (c) For 2015, the Company recognized a $1.4 million benefit related to research and development ("R&D") tax credits of FiberMark for the period 2012 through July 2015. For 2014, following an extensive study of the Company's R&D activities for the years 2005 through 2013 and a change in methodology, the Company recognized a $21.9 million net benefit related to R&D tax credits. (d) In 2015, this benefit is shown net of a valuation allowance of $2.9 million. 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, the availability of R&D and other tax credits, 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, 2015 2014 2013 Income from continuing operations before income taxes: U.S. $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents the components of the provision (benefit) for income taxes: Year Ended December 31, 2015 2014 2013 Provision (benefit) for income taxes: Current: Federal $ $ $ ) State — Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal State ) — Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2015 2014 Net deferred income tax assets Employee benefits $ $ Research and development tax credits Net operating losses and credits Accrued liabilities Inventories Accelerated depreciation ) ) Intangibles ) — Other ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax liabilities Accelerated depreciation $ $ Intangibles Employee benefits ) ) Interest limitation ) ) Net operating losses ) ) Other — ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The net deferred tax assets relate to U.S. federal and state jurisdictions and the net deferred tax liabilities relate to operations of Germany and the U.K. As of December 31, 2015, we had $78.1 million of state NOLs which may be used to offset state taxable income. Our financial statements reflect a related deferred tax asset of approximately 2.5 million, net of uncertain tax positions and valuation allowance. If not used, substantially all of the NOLs will expire in various amounts between 2016 and 2035. As of December 31, 2015, the Company had $30.2 million of U.S. federal and state R&D credits which, if not used, will expire between 2027 and 2035 for the U.S. federal R&D credits and between 2017 and 2030 for the state R&D credits. The Company also has pre-acquisition and recognized built-in loss carryovers of $11.0 million. In addition, the Company has $3.5 million of Alternative Minimum Tax Credit carryovers, which can be carried forward indefinitely. As of December 31, 2015, the Company had a valuation allowance of $2.9 million against its state R&D credits and $0.1 million against its state NOLs, which are shown net in the above table. As of December 31, 2014, the Company had no valuation allowances. 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, 2015 and 2014, 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, 2015, 2014 and 2013: For the Years Ended December 31, 2015 2014 2013 Balance at January 1, $ $ $ Increases in prior period tax positions — Decreases in prior period tax positions — ) ) Increases in current period tax positions Decreases due to settlements with tax authorities — ) ) Increase (decrease) from foreign exchange rate changes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In conjunction with the FiberMark Acquisition, the Company identified various uncertain tax positions totaling $4.7 million. Such amount was reflected in the purchase price allocation as $3.7 million of goodwill and $1.0 million of other current assets. The remaining $1.3 million of 2015 increases in uncertain tax positions related to R&D Tax Credits for which the tax benefit and the effects of the uncertain tax position were recognized in the 2015 tax provision. If recognized, $11.4 million of the benefit for uncertain tax positions at December 31, 2015 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, 2015. 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 2012. 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, 2015 and 2014, the Company had $0.4 million and less than $0.1 million, respectively, accrued for interest and penalties related to uncertain income tax positions. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Debt | Note 6. Debt Long-term debt consisted of the following: December 31, 2015 2014 2021 Senior Notes (5.25% fixed rate) due May 2021 $ $ Global Revolving Credit Facilities (variable rates) due December 2019 Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 Deferred financing costs ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Debt Less: Debt payable within one year ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $70 million outstanding principal amount of ten-year 7.375% senior unsecured notes, originally issued on November 30, 2004, to repay approximately $56 million in outstanding revolving credit agreement 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 rank equally in right of payment with all the Company's existing and future senior unsecured indebtedness. The guarantees of the 2021 Senior Notes are senior unsecured obligations of the Guarantors and 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 are effectively subordinated to the Company's and the Guarantors' existing and future secured indebtedness (to the extent of the value of the collateral) and are 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, 2015, the Company was in compliance with all terms of the indenture for the 2021 Senior Notes. Amended and Restated Secured Revolving Credit Facility In December 2014, the Company amended and restated its existing credit facility by entering into the Third Amended and Restated Credit Agreement (the "Third Amended Credit Agreement") by and among the Company and certain of its domestic subsidiaries as the "Domestic Borrowers", Neenah Services GmbH & Co. KG ("Neenah Services") and certain of its German subsidiaries as the "German Borrowers", certain other subsidiaries as the "German Guarantors", the financial institutions signatory to the Third Amended Credit Agreement as lenders (the "Lenders"), and JPMorgan Chase Bank, N.A., as agent for the Lenders (the "Administrative Agent"). The Third Amended Credit Agreement, among other things: (1) increased the maximum principal amount of the existing credit facility for the Domestic Borrowers to $125 million (the "U.S. Revolving Credit Facility"); (2) established a secured, multicurrency, revolving credit facility for the German Borrowers in the maximum principal amount of $75 million (the "German Revolving Credit Facility," and together with the U.S. Revolving Credit Facility, the "Global Revolving Credit Facilities"); (3) caused the Company and the other Domestic Borrowers to guarantee, among other things, the obligations of the German Borrowers arising under the German Revolving Credit Facility; (4) provides for the Global Revolving Credit Facilities to mature on December 18, 2019; and (5) provides for an accordion feature permitting one or more increases in the Global Revolving Credit Facilities in an aggregate principal amount not exceeding $50 million, such that the aggregate commitments under the Global Revolving Credit Facilities do not exceed $250 million. In addition, the Domestic Borrowers may request letters of credit under the U.S. Revolving Credit Facility in an aggregate face amount not to exceed $20 million outstanding at any time, and the German Borrowers may request letters of credit under the German Revolving Credit Facility in an aggregate face amount not to exceed $2 million outstanding at any time. Proceeds of borrowings under the Global Revolving Credit Facilities may be used to finance working capital needs, permitted acquisitions, permitted investments (including certain intercompany loans), certain dividends, distributions and other restricted payments, and for other general corporate purposes. The consolidated statements of cash flows present borrowings and repayments under the Global Revolving Credit Facilities and the predecessor revolving bank credit facility using a gross approach. This approach presents not only discrete borrowings for transactions such as a business acquisition, but also reflects all borrowings and repayments that occur as part of daily management of cash receipts and disbursements. For the year ended December 31, 2015, $38.0 million was borrowed in conjunction with the FiberMark Acquisition and the remaining $113.6 million included borrowings for daily cash management. For the year ended December 31, 2014, all of the borrowings related to daily cash management. For the year ended December 31, 2013, $175.0 million was borrowed under the 2021 Senior Notes, $11.9 million was borrowed under the Second German Loan Agreement (discussed below), $7.0 million was borrowed under the revolving bank credit facility for the Southworth acquisition and the remaining $24.9 million borrowed under the revolving bank credit facility related to daily cash management activities. The right of the Domestic Borrowers to borrow and obtain letters of credit under the U.S. Revolving Credit Facility is subject to, among other things, the borrowing base of the Domestic Borrowers on a consolidated basis (the "Domestic Borrowing Base"). The right of the German Borrowers to borrow and obtain letters of credit under the German Revolving Credit Facility is similarly subject to a borrowing base requirement (the "German Borrowing Base"). The German Borrowing Base is initially determined on a combined basis for all German Borrowers. Under certain circumstances (including the occurrence of an event of default resulting from an act or omission of any German Borrower or German Guarantor), the Administrative Agent may require the German Borrowing Base to be determined separately for each of the German Borrowers. At its option the Company may, from time to time, allocate a portion of the Domestic Borrowing Base to the German Borrowing Base (resulting in a corresponding reduction of the Domestic Borrowing Base); however, the principal amount of borrowings and the outstanding letter of credit exposure under the German Revolving Credit Facility may not at any time exceed the German Revolving Credit Facility commitment amount then in effect. The guarantees of the German Guarantors are limited solely to the German Revolving Credit Facility obligations. Under the terms of the Third Amended Credit Agreement and related loan documentation, neither the German Borrowers nor the German Guarantors (collectively, the "German Loan Parties") will be liable for any obligations relating to the U.S. Revolving Credit Facility. The Global Revolving Credit Facilities are secured by liens on all or substantially all of the assets of the Domestic Borrowers. The German Revolving Credit Facility is secured by liens on all or substantially all of the assets of the German Borrowers and certain assets of the German Guarantors. Any liens granted by the German Loan Parties secure only the German Revolving Credit Facility obligations. Terms, Covenants and Events of Default. In general, borrowings under the Global Revolving Credit Facilities will bear interest at LIBOR (which cannot be less than zero percent) plus an applicable margin ranging from 1.50% to 2.00%, depending on the amount of availability under the Third Amended Credit Agreement. In addition, the Company may elect an Alternate Borrowing Rate ("ABR") for borrowings under the Global Revolving Credit Facilities. ABR borrowings under the Global Revolving Credit Facilities will bear interest at the highest interest rate shown in the following table: Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.50% Not applicable Federal funds rate +0.50% 0.00%-0.50% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.50% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.50%-2.00% The Company is also required to pay a monthly commitment fee on the unused amounts available under the Global Revolving Credit Facilities at a per annum rate of 0.25%. If aggregate availability under the Global Revolving Credit Facilities is less than the greater of (i) $20 million and (ii) 10% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company is required to comply with a fixed charge coverage ratio (as defined in the Third Amended 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. Such compliance, once required, would no longer be necessary once (x) aggregate availability under the Global Revolving Credit Facilities exceeds the greater of (i) 17.5% of the aggregate commitment for the Global Revolving Credit Facilities and (ii) $35 million for 60 consecutive days and (y) no default or event of default has occurred and is continuing during such 60-day period. As of December 31, 2015, aggregate availability under the Global Revolving Credit Facilities exceeded the minimum required amount, and the Company is not required to comply with such fixed charge coverage ratio. The Third Amended Credit Agreement contains covenants, which the Company believes are ordinary and standard for agreements of this nature, with which the Company and its subsidiaries must comply during the term of the agreement. Among other things, such covenants restrict the ability of the Company and its subsidiaries to incur certain debt, incur or create certain liens, make specified restricted payments, authorize or issue capital stock, enter into transactions with their affiliates, consolidate, merge with or acquire another business, sell certain of their assets, or dissolve or wind up. In addition, if the aggregate availability under the Global Revolving Credit Facilities is less than the greater of (i) $25 million and (ii) 12.5% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company will be subject to increased reporting obligations and controls until such time as availability is more than the greater of (a) $35 million and (b) 17.5% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect. Subject to certain conditions (including the absence of a default or event of default under the Third Amended Credit Agreement), the Third Amended Credit Agreement permits the Company the make up to $10 million in cash repurchases of its outstanding common stock during each fiscal year, beginning in 2015, and to pay up to $25 million in cash dividends to its stockholders during any period of 12 consecutive months; however, such stock repurchases can be made, and such cash dividends can be paid, on an unlimited basis if pro forma aggregate availability under the Global Revolving Credit Facilities is greater than or equal to the greater of (i) $25 million and (ii) 12.5% of the aggregate commitment under the Global Revolving Credit Facilities, at all times during the 60-day period ending on the date of such repurchase or dividend payment. The Third Amended Credit Agreement also contains events of default customary for financings of this type, including failure to pay principal or interest, materially false representations or warranties, failure to observe covenants and certain other terms of the Third Amended Credit Agreement, cross-defaults to certain other indebtedness, bankruptcy, insolvency, various ERISA and foreign pension violations, the incurrence of material judgments and changes in control. Availability under the Global Revolving Credit Facilities varies over time depending on the value of the Company's inventory, receivables and various capital assets. As of December 31, 2015, the Company had $51.1 million of borrowings and $2.8 million in letters of credit outstanding under the Global Revolving Credit Facilities and $122.9 million of available credit (based on exchanges rates at December 31, 2015). As of December 31, 2015 and 2014, the weighted-average interest rate on outstanding Revolver borrowings was 1.8 percent per annum. The Company's ability to pay cash dividends on its common stock is limited under the terms of both the Third Amended Credit Agreement and the 2021 Senior Notes. As of December 31, 2015, the Company's ability to pay cash dividends on its common stock under the most restrictive terms of its debt agreements was limited to a total of $25 million in a 12-month period. However, the Company can pay dividends in excess of $25 million in a 12-month period by utilizing "restricted payment baskets" as defined in the indenture for the 2021 Senior Notes and the Third Amended Credit Agreement. Other Debt 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, 2015, €7.6 million ($8.3 million, based on exchange rates at December 31, 2015) was outstanding under the Second German Loan Agreement. Principal Payments The following table presents the Company's required debt payments: 2016 2017 2018 2019 2020 Thereafter Total Debt payments $ $ $ $ $ $ $ |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefits | |
Pension and Other Postretirement Benefits | Note 7. Pension and Other Postretirement Benefits Pension Plans Except as described below for FiberMark, 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. During 2014, the Company offered a one-time lump sum payout option to all eligible U.S. participants in the Neenah Paper Pension Plan with a deferred vested pension benefit (the participant had a vested pension benefit but was no longer an employee of the Company). For the year ended December 31, 2014, approximately 425 individuals elected to receive their pension benefit as a lump-sum payment and the Company paid a total of $14.0 million in lump-sum payments. For the years ended December 31, 2014 and 2013, benefit payments under certain post-retirement benefit plans exceeded the sum of expected service cost and interest costs for these plans for the respective calendar years. In accordance with ASC Topic 715, Compensation — Retirement Benefits ("ASC Topic 715"), for the years ended December 31, 2014 and 2013, the Company measured the liabilities of the post-retirement benefit plans and recognized settlement losses of $3.5 million and $0.2 million, respectively. The Company's funding policy for its U.S. qualified defined benefit plan and its U.K. 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, 2015, Neenah Germany had investments of $2.0 million that were restricted to the payment of certain post-retirement employee benefits. As of December 31, 2015, $0.7 million and $1.3 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. FiberMark Defined benefit plans FiberMark has a qualified defined benefit plan covering certain U.S. employees. During 2009, FiberMark fully froze this plan so that additional benefits cannot be earned as a result of additional years of service or increases in annual earnings. Plan assets are principally invested in equity, government and corporate debt securities and fixed income mutual funds. FiberMark has a defined benefit plan covering all United Kingdom "U.K." employees, which is designed to provide a monthly pension upon retirement. This plan was fully frozen during 2011 and plan assets are primarily invested in equity mutual funds. Multi-Employer plan The hourly employees of the Lowville, New York facility are covered by a multi-employer defined benefit plan. The Company's expense under this plan was less than $0.1 million for the year ended December 31, 2015. The Company contributes to the multi-employer pension plan under a collective bargaining agreement which provides retirement benefits for certain union employees. The risks of participating in a multi-employer plan are different from single employer plans as assets contributed are available to provide benefits to employees of other employers and unfunded obligations from an employer that discontinues contributions are the responsibility of all remaining employers. In addition, in the event of a plan's termination or the Company's withdrawal from the plan, the Company may be liable for a portion of the plan's unfunded vested benefits. The Company does not anticipate withdrawing from the plan, nor is it aware of any expected plan terminations. The most recent Pension Protection Act zone status available is for the plan's year-end at December 31, 2014. The zone status in the following table is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. Information for the multi-employer pension plan in which the Company participates is shown in the table below. The "FIP/RP Status Pending/Implemented" column indicates a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented for the plan. For the year ended December 31, 2014, FiberMark's contributions to the plan were less than 5% of total plan contributions. Expiration Pension Fund EIN/Pension Plan Number Pension Zone Status 2014 FIP/RP Status Pending or Implemented Contributions 2015 Surcharge Imposed Date of Collective Bargaining Agreement PACE Industry Union Management Pension Fund 11-6166763 Red Implemented $ 0.1 million Yes 11/9/16 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, 2015, the assumed inflationary health care cost trend rates used to determine obligations at December 31, 2015 and costs for the year ended December 31, 2016 is 7.3 percent gradually decreasing to an ultimate rate of 4.5 percent in 2037. The assumed inflationary health care cost trend rates used to determine obligations at December 31, 2014 and costs for the year ended December 31, 2015 were 7.3 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, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of year $ $ $ $ Service cost Interest cost Currency ) ) ) ) Actuarial (gain) loss ) Benefit payments from plans ) ) ) ) Settlement payments — ) — — Net transfer in/(out) (1) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at end of year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in Plan Assets: Fair value of plan assets at beginning of year $ $ $ — $ — Actual gain on plan assets ) — — Employer contributions — — Currency ) — — — Benefit payments ) ) — — Settlement payments — ) — — Net transfers in (1) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of year $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Funded Status Fair value of plan assets $ $ $ — $ — Projected benefit obligation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net liability recognized in statement of financial position $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized in statement of financial position consist of: Current liabilities $ ) $ ) $ ) $ ) Noncurrent liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) For the year ended December 31, 2015, the Company acquired $48.3 million and $39.1 million of pension liabilities and assets, respectively, in conjunction with the FiberMark Acquisition. Amounts recognized in accumulated other comprehensive income consist of: Pension Benefits Postretirement Benefits Other than Pensions December 31, 2015 2014 2015 2014 Accumulated actuarial loss $ $ $ $ Prior service cost ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in accumulated other comprehensive income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary disaggregated information about the pension plans follows: December 31, Assets Exceed ABO ABO Exceed Assets Total 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation Fair value of plan assets — Components of Net Periodic Benefit Cost Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2015 2014 2013 2015 2014 2013 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets (a) ) ) ) — — — Recognized net actuarial loss Amortization of prior service cost (credit) ) ) ) Amount of settlement loss recognized — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost (credit) Amounts related to discontinued operations ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost $ ) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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, 2015 2014 2013 2015 2014 2013 Net periodic benefit expense $ ) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated actuarial gain (loss) ) ) — ) Prior service cost (credit) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in other comprehensive income ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in net periodic benefit cost and other comprehensive income $ ) $ $ ) $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $6.6 million and $0.2 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 $0.3 million and $(0.2) million, respectively. Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Postretirement Benefits Other than Pensions 2015 2014 2015 2014 Discount rate % % % % Rate of compensation increase % % — — 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, 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Expected long-term return on plan assets % % % — — — Rate of compensation increase % % % — — — 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 6.50 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 4 to 6 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, 2015 2014 2013 Asset Category Equity securities % % % Debt securities % % % Cash and money-market funds % — % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 % 35-45 % Debt securities / Fixed Income % 55-65 % As of December 31, 2015, 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, 2015, 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, 2015, 2014 and 2013, no plan assets were invested in the Company's securities. Cash Flows At December 31, 2015, the Company expects to make aggregate contributions to qualified pension trusts and payments of pension benefits for unfunded pension plans in 2016 of approximately $11.3 million (based on exchange rates at December 31, 2015). 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 2016 $ $ 2017 2018 2019 2020 Years 2021-2025 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 ) 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 $2.5 million in 2015 and $1.9 million in 2014 and 2013. 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, 2015, 2014 and 2013, the Company recognized expense related to the SRCP of $0.2 million, $0.1 million and $0.3 million, respectively. FiberMark has several qualified defined contribution plans covering certain hourly and salaried employees. The plans permit employee salary deferrals, with the Company match ranging from 0% to 3% of salary, depending on the plan and the level of employee deferral. 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, 2015, 2014 and 2013, costs charged to expense for company matching contributions under these plans were $2.7 million, $1.9 million and $1.8 million, respectively. |
Stock Compensation Plan
Stock Compensation Plan | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plans. | |
Stock Compensation Plan | 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 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, 2015, the Company had 1,240,000 shares of Common Stock reserved for future issuance under the 2013 Omnibus Plan. As of December 31, 2015, the number of shares available for future issuance was reduced by approximately 10,000 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, 2015 2014 2013 Stock-based compensation expense $ $ $ Income tax benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based compensation, net of income tax benefit $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2015. Stock Options Performance Shares and RSUs Unrecognized compensation cost — December 31, 2014 $ $ Grant date fair value current year grants Change in estimate of shares to be forfeited — ) Compensation expense recognized ) ) ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized compensation cost — December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expected amortization period (in years) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock Options/SARs In August 2014, the Compensation Committee of the Board of Directors approved the conversion of approximately 545,000 outstanding non-qualified stock options held by U.S. employees and U.S. non-employee directors to an equal number of SARs. Upon exercise, the holder of an SAR will receive common shares equal to the number of SARs exercised multiplied by a fraction where the numerator is equal to the market price at the time of exercise minus the exercise price of the SAR and the denominator is equal to the market price at the time of exercise. The SARs can only be settled for shares of Common Stock and the Company will not receive any cash proceeds upon exercise. All other contractual terms of the SARs are unchanged from those of the converted non-qualified stock options. At the date of conversion the fair value of the SARs was equal to the fair value of the stock options exchanged. As a result, the Company did not recognize any additional compensation expense due to the conversion. The following tables present information regarding stock options awarded during the years ended December 31, 2015, 2014 and 2013. 2015 2014 2013 Nonqualified stock options granted Per share weighted average exercise price $ $ $ Per share weighted average grant date fair value $ $ $ The weighted-average grant date fair value for stock options granted for the years ended December 31, 2015, 2014 and 2013 was estimated using the Black-Scholes option valuation model with the following assumptions: 2015 2014 2013 Expected term in years Risk free interest rate % % % Volatility % % % Dividend yield % % % 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 equal 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. As of December 31, 2015, 50 percent of the option award had been earned. If certain absolute total return to shareholder targets are achieved, 100 percent of the options 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, 2015: Number of Stock Options Weighted-Average Exercise Price Options outstanding — December 31, 2014 $ Add: Options granted $ Less: Options exercised $ Less: Options forfeited/cancelled $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding — December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The status of outstanding and exercisable stock options as of December 31, 2015, summarized by exercise price follows: Options Vested or Expected to Vest Options Exercisable Weighted- Average Remaining Contractual Life (Years) Exercise Price Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value (a) Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value (a) $7.41 — $19.25 $ $ $ $ $21.13 — $32.84 $ $ $35.92 — $42.82 $ $ $50.60 — $59.72 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Represents the total pre-tax intrinsic value as of December 31, 2015 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 $62.43 on December 31, 2015. The aggregate pre-tax intrinsic value of stock options exercised for the years ended December 31, 2015, 2014 and 2013 was $5.5 million, $12.7 million and $9.8 million, respectively. The following table summarizes the status of the Company's unvested stock options as of December 31, 2015 and activity for the year then ended: Number of Stock Options Weighted-Average Grant Date Fair Value Outstanding — December 31, 2014 $ Add: Options granted $ Less: Options vested $ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015, certain participants met age and service requirements that allowed their options to qualify for accelerated vesting upon retirement. As of December 31, 2015, there were approximately 95,000 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 $1.3 million. For the year ended December 31, 2015, stock-based compensation expense for such options was $0.9 million. For the year ended December 31, 2015, the aggregate grant date fair value of options vested, including options subject to accelerated vesting, was $2.4 million. Stock options that reflect accelerated vesting for expense recognition become exercisable according to the contract terms of the stock option grant. Performance Units/RSUs For the year ended December 31, 2015, the Company granted target awards of 45,060 Performance Units. The measurement period for the Performance Units is January 1, 2015 through December 31, 2015. The Performance Units vest on December 31, 2017. Common Stock 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 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. As of December 31, 2015, the Company expects that Common Stock equal to approximately 145 percent of the Performance Unit targets will be earned. The market price on the date of grant for the Performance Units was $59.72 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, 2015, the Company awarded 9,030 RSUs to non-employee members of the Board of Directors and 3,145 RSUs (net of forfeitures) to employees. The weighted average grant date fair value of such awards was $61.41 per share and the awards vest one year from the date of grant. During the vesting period, the holders of the RSUs are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer an employee or member of the Board of Directors on the vesting date. The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2015, 2014 and 2013: RSUs Weighted-Average Grant Date Fair Value Performance Units Weighted-Average Grant Date Fair Value Outstanding — December 31, 2012 $ $ Shares granted (a) $ $ Shares vested ) $ — — Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2013 $ $ Shares granted (a) $ $ Shares vested ) $ — — Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2014 $ $ Shares granted (a) $ $ Shares vested ) $ ) $ Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2015 (b) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) For the years ended December 31, 2015, 2014 and 2013, includes 495 RSUs, 622 RSUs and 950 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, 2015 was $7.4 million. The aggregate pre-tax intrinsic value of restricted stock and RSUs that vested for the years ended December 31, 2015, 2014 and 2013 was $6.6 million, $8.9 million and $9.3 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. The Company recorded a reduction in cash flows from operations which fully offset the amount of excess tax benefits reported in cash flows from financing activities. For the years ended December 31, 2015, 2014 and 2013, the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $2.6 million, $5.6 million and $2.6 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, the Company's Board of Directors authorized a program that would allow the Company to repurchase up to $25 million of its outstanding Common Stock over the next 12 months (the "2015 Stock Purchase Plan"). Purchases by the Company under the 2015 Stock Purchase Plan would 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 2015 Stock Purchase Plan does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time. The 2015 Stock Purchase Plan is expected to be funded using cash on hand or borrowings under the Company's bank credit facility. The Company had a substantially identical $25 million repurchase program in place during the preceding 12 months that expired in May 2015 (the "2014 Stock Purchase Plan"). The Company had a $10 million share repurchase program in place during the preceding 12 months that expired in May 2014 (the "2013 Stock Purchase Plan"). The following table shows shares purchased under the respective stock purchase plans: Year Ended December 31, 2015 2014 2013 Shares $ Shares $ Shares $ 2015 Stock Purchase Plan $ — $ — — $ — 2014 Stock Purchase Plan — — 2013 Stock Purchase Plan — — — — — — As of December 31, 2015, under the terms of the 2021 Senior Notes the Company has limitations on its ability to repurchase shares of its Common Stock. However, the Company can repurchase shares of its Common Stock in excess of such limitation by utilizing "restricted payment baskets" as defined in the indenture for the 2021 Senior Notes and the Third Amended Credit Agreement. For the years ended December 31, 2015, 2014 and 2013, the Company acquired 40,000 shares, 56,000 shares and 111,000 shares of Common Stock, respectively, at a cost of $2.5 million, $3.4 million and $4.6 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, 2015 | |
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, 2015 , are as follows: 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Future minimum lease obligations $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2015, 2014 and 2013 rent expense under operating leases was $5.4 million, $4.5 million and $4.2 million, respectively. Purchase Commitments The Company has certain minimum purchase commitments that extend beyond December 31, 2015. Commitments under these contracts are approximately $7.4 million, $1.1 million and $1.1 million for the years ended December 31, 2016, 2017 and 2018, respectively. Such purchase commitments for the year ended December 31, 2016 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 Matters
Contingencies and Legal Matters | 12 Months Ended |
Dec. 31, 2015 | |
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. These tax authorities routinely challenge certain deductions and credits reported by the Company on its income tax returns. No significant tax audit findings are being contested at this time with either the IRS or any state or foreign tax authority. 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. 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, 2015, the Company had approximately 2,340 regular full-time employees of whom 1,140 hourly and 540 salaried employees were located in the United States and 390 hourly and 270 salaried employees were located in Europe. All of the Company's U.S. hourly union employees are represented by the United Steelworkers Union (the "USW"). Hourly union employees at the Company's Bolton, England manufacturing facility are represented by Unite the Union ("UNITE"). The following table shows the status of the Company's bargaining agreements as of December 31, 2015. Contract Expiration Date Location Union May 5, 2016 Bolton England UNITE September 1, 2016 Brattleboro, VT USW September 27, 2016 Reading, PA USW November 9, 2016 Lowville, NY USW January 31, 2018 Whiting, WI (1) USW June 30, 2018 Neenah, WI (1) USW July 14, 2018 Munising, MI (1) USW May 31, 2019 Appleton, WI (1) USW (1) On pension matters the Whiting, Neenah, Munising and Appleton paper mills have bargained jointly with the USW. The current agreement on pension matters 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 2015, 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 2017. 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 2017 cannot be determined. As of December 31, 2015, approximately 235 employees are covered under collective bargaining agreements that expire in the next 12-months. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Assets Held for Sale | |
Discontinued Operations and Assets Held for Sale | Note 12. Discontinued Operations and Assets Held for Sale Discontinued Operations On October 31, 2015, the Company sold the Lahnstein Mill to the Buyer, a privately-owned enterprise specializing in equity holdings in German medium-sized companies, for net cash proceeds of approximately $5.4 million. The Buyer acquired all the assets and liabilities of the Lahnstein Mill, including pension and related liabilities of approximately $21 million. The Lahnstein Mill, which had annual sales of approximately €50 million, had been operating as a stand-alone business, manufacturing non-woven wallcoverings and various other specialty papers. The sale focuses the Company's portfolio on targeted growth markets such as filtration, premium fine papers and packaging and other performance materials. Upon reaching an agreement for the sale of the Lahnstein Mill, the Company compared the carrying value of the Lahnstein Mill assets to the fair value of such assets reflected in the sales agreement. As a result, the Company recognized an impairment charge of $12.0 million to reduce the carrying value of the Lahnstein Mill assets to fair value. In addition, the Company recognized approximately $1.7 million of transaction costs related to the sale. For the year ended December 31, 2015, discontinued operations reported on the consolidated statements of operations include the results of operations and the loss on sale of the Lahnstein Mill. The consolidated statements of operations for the years ended December 31, 2014 and 2013 have been restated to report results of the Lahnstein Mill as discontinued operations. The results of the Lahnstein Mill were previously reported in the Technical Products segment. The following table presents selected financial information for discontinued operations: Year Ended December 31, 2015 2014 2013 Net sales $ $ $ Cost of products sold (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit Selling, general and administrative expenses Restructuring costs Other income — net ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (Loss) From Discontinued Operations Before Income Taxes Loss on sale (b) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) Income tax provision (benefit) (a) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) 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. During the first quarter of 2013, the Company received a refund of excess pension contributions 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) This amount includes a net curtailment gain related to the divesture of the pension plan of $15.8 million, including a $5.5 million write-off of deferred actuarial losses. The following table presents selected cash flow information for discontinued operations: Year Ended December 31, 2015 2014 2013 Depreciation and amortization $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets Held for Sale As of December 31, 2014, all of the assets and liabilities reported as assets held for sale and liabilities related to facilities held for sale are related to the Lahnstein Mill. The following table presents the major components of assets held for sale and liabilities related to facilities held for sale on the consolidated balance sheet: At December 31, 2014 Assets Held For Sale Current Assets Accounts receivable — net $ Inventories Prepaid and other current assets ​ ​ ​ ​ ​ Total Current Assets ​ ​ ​ ​ ​ Property, Plant and Equipment Goodwill Intangible Assets — net Other Assets ​ ​ ​ ​ ​ Assets Held for Sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Related to Facilities Held for Sale Current Liabilities Accounts payable $ Accrued expenses Deferred Income Taxes Noncurrent Employee Benefits ​ ​ ​ ​ ​ Liabilities related to facilities held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment and Geographic Information | |
Business Segment and Geographic Information | Note 13. Business Segment and Geographic Information On July 1, 2015, the Company reorganized its internal management structure and, accordingly, addressed its segment reporting structure. As a result of this reorganization, the Other operating segment (composed of the non-premium Index, Tag and Vellum Bristol product lines acquired as part of the purchase of the Wausau brands) was combined with the Fine Paper and Packaging operating segment to reflect the manner in which this business is managed. Segment information for prior periods has been restated to conform to the current period presentation. In addition, as part of the FiberMark acquisition, the Company acquired certain product lines composed of papers sold to converters for end uses such as covering materials for datebooks, diaries, yearbooks and traditional photo albums. Due to the dissimilar nature of these products, management decided that they would not be managed as part of either the existing Fine Paper and Packaging or Technical Products businesses. These product lines represent an operating segment which does not meet the quantitative threshold for a reportable segment. The Company's reportable operating segments now consist of Technical Products, Fine Paper and Packaging and Other. The Technical Products segment is an aggregation of the Company's filtration and performance materials businesses which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media ("Filtration"), tape and abrasives backings products ("Backings"), and durable label and specialty substrate products ("Specialty"). The following table presents sales by product category for the technical products business: For the Year ended December 31, 2015 2014 2013 Filtration % % % Backings Specialty ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fine paper and packaging business is a leading supplier of premium printing and other high end specialty papers ("Graphic Imaging"), premium packaging ("Packaging") and specialty office papers ("Filing/Office") primarily in North America. The following table presents sales by product category for the fine paper and packaging business: For the Year ended December 31, 2015 2014 2013 Graphic Imaging % % % Packaging Filing/Office — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Each segment employs different technologies and marketing strategies. 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, 2015 2014 2013 Net sales Technical Products $ $ $ Fine Paper and Packaging Other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 2014 2013 Operating income (loss) Technical Products (a) $ $ $ Fine Paper and Packaging (b) Other (c) ) — — Unallocated corporate costs (d) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Operating income for the year ended December 31, 2015 includes acquisition related integration costs of $1.3 million and $0.4 million of restructuring costs. Operating income for the year ended December 31, 2014 includes acquisition related integration costs of $1.0 million and $0.6 million of restructuring costs. (b) Operating income for the years ended December 31, 2015 and 2013 include acquisition related integration costs of $1.5 million and $0.4 million, respectively. (c) Operating income for the year ended December 31, 2015 includes acquisition related integration costs of $2.4 million. (d) Unallocated corporate costs for the year ended December 31, 2015 includes $0.8 million of restructuring costs. Unallocated corporate costs for the year ended December 31, 2014 includes a pension plan settlement charge of $3.5 million, a loss on the early extinguishment of debt of $0.2 million and $0.7 million of restructuring costs. Unallocated corporate costs for the year ended December 31, 2013 includes a pension plan settlement charge of $0.2 million and a loss on the early extinguishment of debt of $0.5 million. Year Ended December 31, 2015 2014 2013 Depreciation and amortization Technical Products $ $ $ Fine Paper and Packaging Other — — Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Continuing Operations Discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 2014 2013 Capital expenditures Technical Products $ $ $ Fine Paper and Packaging Other — — Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Continuing Operations Discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 Total Assets (a) Technical Products $ $ Fine Paper and Packaging Corporate and other (b) Assets held for sale — ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily cash and deferred income taxes. Geographic Information Year Ended December 31, 2015 2014 2013 Net sales United States $ $ $ Europe ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 Total Assets (a) United States $ $ Canada Europe ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Long-lived assets (consisting principally of property and equipment, intangibles, goodwill and other assets) of $342.0 million and $202.0 million as of December 31, 2015 and 2014, respectively, were located in the United States and long-lived assets of $162.8 million and $203.4 million as of December 31, 2015 and 2014, respectively, were located principally in Europe. Net sales are attributed to geographic areas based on the physical location of the selling entities. Concentrations In July 2014, Unisource Worldwide, Inc ("Unisource") and xpedx, formerly owned by International Paper ("xpedx") merged to form Veritiv Corporation ("Veritiv"). For the years ended December 31, 2015, 2014 and 2013 sales to Unisource and xpedx (and as merged Veritiv) represented approximately 10 percent of consolidated net sales and approximately 20 percent of net sales of the fine paper and packaging business. 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, 2015 | |
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, 2015 2014 2013 Advertising expense $ $ $ Research and development expense (a) Adverting 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, 2015 2014 From customers $ $ Less allowance for doubtful accounts and sales discounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Inventories December 31, 2015 2014 Inventories by Major Class: Raw materials $ $ Work in progress Finished goods Supplies and other ​ ​ ​ ​ ​ ​ ​ ​ Excess of FIFO over LIFO cost ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The FIFO value of inventories valued on the LIFO method was $118.2 million and $95.7 million at December 31, 2015 and 2014, respectively. For the year ended December 31, 2015, income from continuing operations before income taxes was reduced by approximately $0.1 million due to a decrease in certain LIFO inventory quantities. Summary of Prepaid and Other Current Assets December 31, 2015 2014 Prepaid and other current assets $ $ Spare parts ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Property, Plant and Equipment — Net December 31, 2015 2014 Land and land improvements $ $ Buildings Machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ Net Property, Plant and Equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $24.8 million, $23.2 million and $23.2 million, respectively. Interest expense capitalized as part of the costs of capital projects was $0.2 million, $0.1 million and $0.2 million , respectively, for the years ended December 31, 2015, 2014 and 2013. Summary of Accrued Expenses December 31, 2015 2014 Accrued salaries and employee benefits $ $ Amounts due to customers Accrued interest Accrued income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Noncurrent Employee Benefits December 31, 2015 2014 Pension benefits $ $ Post-employment benefits other than pensions ​ ​ ​ ​ ​ ​ ​ ​ Total (a) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes $2.7 million and $3.4 million in long-term disability benefits due to Terrace Bay retirees and SRCP benefits as of December 31, 2015 and 2014, respectively. Supplemental Cash Flow Data Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2015 2014 2013 Cash paid during the year for interest, net of interest expense capitalized $ $ $ Cash paid during the year for income taxes, net of refunds Non-cash investing activities: Liability for equipment acquired Net cash provided by (used in) changes in working capital, net of effect of acquisitions Year Ended December 31, 2015 2014 2013 Accounts receivable $ ) $ $ ) Inventories ) Income taxes receivable ) ) Prepaid and other current assets ) ) Accounts payable ) Accrued expenses ) Other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Data | |
Unaudited Quarterly Data | Note 15. Unaudited Quarterly Data 2015 Quarters First Second Third Fourth Year (a) Net Sales $ $ $ $ $ Gross Profit Operating Income Income From Continuing Operations Earnings Per Common Share From Continuing Operations: Basic $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes integration/restructuring costs of $6.5 million. 2014 Quarters First Second Third Fourth (b)(c) Year (a)(b)(c) Net Sales $ $ $ $ $ Gross Profit Operating Income Income From Continuing Operations Earnings Per Common Share From Continuing Operations: Basic $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes integration/restructuring costs of $2.3 million. (b) Includes a loss on the early extinguishment of debt of $0.2 million. (c) Includes a pension plan settlement charge of $3.5 million. |
SCHEDULE II SCHEDULE OF VALUATI
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Write-offs and Reclassifications Balance at End of Period December 31, 2015 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ $ ) $ $ ) $ Allowance for sales discounts — — — Valuation allowance — deferred income taxes — — — December 31, 2014 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ $ $ — $ ) $ Allowance for sales discounts — — — December 31, 2013 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ $ $ — $ ) $ Allowance for sales discounts — — Valuation allowance — deferred income taxes — — ) — |
Background and Basis of Prese24
Background and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 inter-company balances and transactions have been eliminated in consolidation. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, goodwill, 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. |
Earnings per Share ("EPS") | Earnings per Share ("EPS") The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC Topic 260") 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 lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of Restricted Stock Units with performance conditions ("Performance Units"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2015, 2014 and 2013, approximately 45,000, 15,000 and 450,000 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 respective 12-month periods during which 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, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per diluted common share Year Ended December 31, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding Add: Assumed incremental shares under stock-based compensation plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2015 and 2014, $0.3 million and $0.4 million, respectively, of the Company's cash and cash equivalents 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 the Company's operations in Germany, the United Kingdom (the "U.K.") and Canada are translated from Euros, British Pounds 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, the U.K. 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 expensed 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, 2015, 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 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, 2015. In the Company's testing of goodwill for impairment, it estimated the fair value of the reporting units 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, 2015 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 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Plan assets subject to leveling: Cash and cash equivalents $ $ $ — $ — $ — $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan assets measured at NAV: Investment funds (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets at fair value $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Certain pension plan assets are measured at NAV (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices. Following is the fair value of each such investment category: • U.S and Non-U.S. Equities ($92.4 million and $99.2 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • U.S and Non-U.S. Fixed Income Securities ($185.8 million and $188.1 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • Hedge Funds ($23.2 million at December 31, 2015) — These funds are valued using net asset values calculated by the fund managers and allow for quarterly or more frequent redemptions. |
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 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. December 31, 2015 December 31, 2014 Carrying Value Fair Value (a) Carrying Value Fair Value (a) 2021 Senior Notes (5.25% fixed rate) $ $ $ $ Global Revolving Credit Facilities (variable rates) Second German Loan Agreement (2.5% fixed rate) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total debt $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Fair value for all 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, 2015, the Company had $3.3 million in marketable securities classified as "Other Assets" on the consolidated balance sheet. The cost of such marketable securities was $3.4 million. Fair value for the Company's marketable securities was estimated from Level 1 inputs. 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, 2015 2014 Unrealized foreign currency translation losses $ ) $ ) Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $33.8 million and $31.1 million, respectively) ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive loss $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents changes in accumulated other comprehensive income ("AOCI"): Year Ended December 31, 2015 2014 2013 Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Unrealized foreign currency translation gains (losses) $ ) $ — $ ) $ ) $ — $ ) $ $ — $ Adjustment to pension and other benefit liabilities ) ) ) ) Unrealized loss on "available-for-sale" securities — — — — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) $ ) $ ) $ ) $ ) $ $ ) $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2015, 2014 and 2013, the Company reclassified $7.1 million, $4.7 million and $6.5 million, respectively, of costs from accumulated other comprehensive income to cost of products sold and selling, general and administrative expenses on the Consolidated Statements of Operations. For the years ended December 31, 2015, 2014 and 2013, the Company recognized an income tax benefit of $2.7 million, $1.7 million and $2.5 million, respectively, related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. For the year ended December 31, 2015, the Company reclassified $5.5 million of costs from accumulated other comprehensive income to loss from discontinued operations on the Consolidated Statements of Operations. For the years ended December 31, 2014 and 2013, the Company reclassified $3.5 million and $0.2 million, respectively, of costs from accumulated other comprehensive income to pension plan settlement charge on the Consolidated Statements of Operations. For the years ended December 31, 2014 and 2013, the Company recognized an income tax benefit of $1.3 million and $0.1 million, respectively, related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-03, Interest-Imputation of Interest ("ASU 2015-03"). ASU 2015-03 requires that unamortized debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. ASU 2015-03 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. In August 2015, the FASB issued ASU No. 2015-15, Imputation of Interest (Subtopic 835-30) ("ASU No. 2015-15"). ASU No. 2015-15 updates the changes in ASU No. 2015-03 based on an announcement of the staff of the U.S. Securities and Exchange Commission. ASU No. 2015-15 provides an exception to ASU No. 2015-03 allowing debt issuance costs related to line-of-credit arrangements to continue to be presented as an asset regardless of whether there are any outstanding borrowings under such arrangement. Early adoption of ASU 2015-03 is permitted and the Company elected to early adopt ASU No. 2015-03 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-03 resulted in the reclassification of $5.0 million and $6.1 million of unamortized deferred financing costs from Other Assets to Long-Term Debt on the consolidated balance sheet at December 31, 2015 and 2014, respectively. In July 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"). ASU 2015-07 requires that investments for which fair value is measured at net asset value per share ("NAV") (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy. By removing these investments from the fair value hierarchy, ASU 2015-07 ensures that all investments categorized in the fair value hierarchy are classified using a consistent approach. ASU 2015-07 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. Early adoption of ASU 2015-07 is permitted and the Company elected to early adopt ASU No. 2015-07 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-07 resulted in the removal of approximately $301.4 million and $287.3 million of pension plan assets from the fair value hierarchy at December 31, 2015 and 2014, respectively. See "Fair Value Measurements" above. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) — Simplifying the Accounting for Measurement-Period Adjustments ("ASU No. 2015-16"). ASU No. 2015-16 changes the accounting for measurement-period adjustments related to business combinations. Currently, an acquiring entity is required to retrospectively adjust the balance sheet amounts of the acquiree recognized at the acquisition date with a corresponding adjustment to goodwill during the measurement period, as well as revise comparative information for prior periods presented within financial statements as needed, including revising income effects, such as depreciation and amortization, as a result of changes made to the balance sheet amounts of the acquiree. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The measurement period is the period after the acquisition date during which the acquirer may adjust the balance sheet amounts recognized for a business combination (generally up to one year from the date of acquisition). ASU No. 2015-16 eliminates the requirement to make such retrospective adjustments, and, instead requires the acquiring entity to record these adjustments in the reporting period they are determined. Additionally, the changes require the acquiring entity to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period income by line item that would have been recorded in previous reporting periods if the adjustment to the balance sheet amounts had been recognized as of the acquisition date. ASU No. 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. Early adoption is permitted and the Company elected to early adopt ASU 2015-16 as of December 31, 2015. As a result of the adoption of ASU 2015-16, the Company recorded the measurement-period adjustments related to the FiberMark Acquisition determined during the three months ended December 31, 2015 on the December 31, 2015 Consolidated Balance Sheet. See Note 3, "Acquisitions." In November 2015, the FASB issued ASU 2015-17, Income Taxes ("ASU 2015-17"). ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of ASU 2015-17, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. ASU 2015-17 represents a change in accounting principle and is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the Company elected to early adopt ASU 2015-17 as of December 31, 2015 and to apply the guidance retrospectively to all periods presented. The adoption of ASU 2015-17 resulted in the reclassification of $19.8 million and $15.8 million from current deferred income taxes to noncurrent deferred income taxes on the consolidated balance sheet at December 31, 2015 and 2014, respectively. |
Accounting Standard Changes | Accounting Standards Changes In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers ("ASC Topic 606"). ASU 2014-09 supersedes the revenue recognition guidance in ASC Topic 605, Revenue Recognition. The core principle of the guidance in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Therefore, the Company will adopt ASU 2014-09 on January 1, 2017. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. As of December 31, 2015, no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per diluted common share Year Ended December 31, 2015 2014 2013 Income from continuing operations $ $ $ Distributed and undistributed amounts allocated to participating securities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations available to common stockholders Income (loss) from discontinued operations, net of income taxes ) Distributed and undistributed amounts allocated to participating securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to common stockholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average basic shares outstanding Add: Assumed incremental shares under stock-based compensation plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per share Continuing operations $ $ $ Discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of fair value of Company's pension plan assets | Assets at Fair Value at December 31, Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Plan assets subject to leveling: Cash and cash equivalents $ $ $ — $ — $ — $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plan assets measured at NAV: Investment funds (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets at fair value $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Certain pension plan assets are measured at NAV (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices. Following is the fair value of each such investment category: • U.S and Non-U.S. Equities ($92.4 million and $99.2 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • U.S and Non-U.S. Fixed Income Securities ($185.8 million and $188.1 million at December 31, 2015 and 2014, respectively) — These proprietary mutual funds have observable net asset values (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • Hedge Funds ($23.2 million at December 31, 2015) — These funds are valued using net asset values calculated by the fund managers and allow for quarterly or more frequent redemptions. |
Schedule of the carrying value and fair value of the Company's debt | December 31, 2015 December 31, 2014 Carrying Value Fair Value (a) Carrying Value Fair Value (a) 2021 Senior Notes (5.25% fixed rate) $ $ $ $ Global Revolving Credit Facilities (variable rates) Second German Loan Agreement (2.5% fixed rate) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total debt $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Fair value for all debt instruments was estimated from Level 2 measurements. |
Schedule of components and changes in accumulated other comprehensive income (loss) | December 31, 2015 2014 Unrealized foreign currency translation losses $ ) $ ) Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $33.8 million and $31.1 million, respectively) ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive loss $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 2014 2013 Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Pretax Amount Tax Effect Net Amount Unrealized foreign currency translation gains (losses) $ ) $ — $ ) $ ) $ — $ ) $ $ — $ Adjustment to pension and other benefit liabilities ) ) ) ) Unrealized loss on "available-for-sale" securities — — — — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) $ ) $ ) $ ) $ ) $ $ ) $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fiber Mark | |
Summary of allocation of the purchase price to the estimated fair value of the assets acquired and liabilities | December 31, 2015 Assets Acquired Cash and cash equivalents $ Accounts receivable Inventories Deferred income taxes Prepaid and other current assets Property, plant and equipment Non-amortizable intangible assets Amortizable intangible assets Acquired goodwill ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Liabilities Assumed Accounts payable Accrued expenses Deferred income taxes Noncurrent employee benefits Other noncurrent obligations ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of pro forma consolidated statements of operations | Year Ended December 31, 2015 2014 Net sales $ $ Operating income Income from continuing operations Income (loss) from discontinued operations ) Net income Earnings (Loss) Per Common Share Basic Continuing operations $ $ Discontinued Operations ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Continuing operations $ $ Discontinued Operations ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Crane Technical Materials | |
Summary of pro forma consolidated statements of operations | Year Ended December 31, 2014 2013 Net sales $ $ Operating income Income from continuing operations Income from discontinued operations Net income Earnings Per Common Share Basic Continuing operations $ $ Discontinued Operations ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Continuing operations $ $ Discontinued Operations ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of changes in the carrying amount of goodwill | Technical Products Fine Paper and Packaging Other Gross Amount Accumulated Impairment Losses Gross Amount Net Gross Amount Net Balance at December 31, 2013 $ $ ) $ $ — $ — $ Goodwill acquired in acquisition of the technical materials business — — — Foreign currency translation ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 (1) ) — — Goodwill acquired in the Fibermark Acquisition — Foreign currency translation ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ ) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) As of December 31, 2014, $1.0 million of goodwill allocated to the Lahnstein Mill was classified as Assets Held for Sale on the Consolidated Balance Sheet. |
Schedule of gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization | December 31, 2015 December 31, 2014 (1) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizable intangible assets Customer based intangibles $ $ ) $ $ ) Trade names and trademarks ) ) Acquired technology ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total amortizable intangible assets ) ) Trade names ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) As of December 31, 2014, $2.3 million of intangible assets allocated to the Lahnstein Mill were classified as Assets Held for Sale on the Consolidated Balance Sheet. |
FiberMark | |
Schedule of gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization | Intangibles Estimated Useful Lives (Years) Intangible assets — definite lived Trade names and trademarks $ Customer based intangibles Acquired technology ​ ​ ​ ​ ​ ​ ​ ​ Total Non-amortizable trade names ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Schedule of difference between the effective income tax rate and the U.S. federal statutory income tax rate | Year Ended December 31, 2015 2015 2014 2014 2013 2013 U.S. federal statutory income tax rate % $ % $ % $ U.S. state income taxes, net of federal income tax benefit % % % Tax on foreign dividends % % % Foreign tax rate differences (a) )% ) )% ) )% ) Foreign financing structure (b) )% ) )% ) )% ) Research and development and other tax credits (c)(d) )% ) )% ) )% ) Domestic production activities deduction )% ) — — — — Uncertain income tax positions % % % Other differences — net % % )% ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective income tax rate % $ % $ % $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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. (c) For 2015, the Company recognized a $1.4 million benefit related to research and development ("R&D") tax credits of FiberMark for the period 2012 through July 2015. For 2014, following an extensive study of the Company's R&D activities for the years 2005 through 2013 and a change in methodology, the Company recognized a $21.9 million net benefit related to R&D tax credits. (d) In 2015, this benefit is shown net of a valuation allowance of $2.9 million. |
Schedule of the U.S. and foreign components of income from continuing operations before income taxes | Year Ended December 31, 2015 2014 2013 Income from continuing operations before income taxes: U.S. $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of the provision (benefit) for income taxes | Year Ended December 31, 2015 2014 2013 Provision (benefit) for income taxes: Current: Federal $ $ $ ) State — Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal State ) — Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of deferred tax assets and liabilities | December 31, 2015 2014 Net deferred income tax assets Employee benefits $ $ Research and development tax credits Net operating losses and credits Accrued liabilities Inventories Accelerated depreciation ) ) Intangibles ) — Other ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax liabilities Accelerated depreciation $ $ Intangibles Employee benefits ) ) Interest limitation ) ) Net operating losses ) ) Other — ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred income tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of the total amounts of uncertain tax positions | For the Years Ended December 31, 2015 2014 2013 Balance at January 1, $ $ $ Increases in prior period tax positions — Decreases in prior period tax positions — ) ) Increases in current period tax positions Decreases due to settlements with tax authorities — ) ) Increase (decrease) from foreign exchange rate changes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Schedule of long-term debt | December 31, 2015 2014 2021 Senior Notes (5.25% fixed rate) due May 2021 $ $ Global Revolving Credit Facilities (variable rates) due December 2019 Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 Deferred financing costs ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Debt Less: Debt payable within one year ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of ABR interest rates applicable to outstanding borrowings | Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.50% Not applicable Federal funds rate +0.50% 0.00%-0.50% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.50% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.50%-2.00% |
Schedule of debt payments | 2016 2017 2018 2019 2020 Thereafter Total Debt payments $ $ $ $ $ $ $ |
Pension and Other Postretirem31
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefits | |
Schedule of information for the multi-employer pension plans in which FiberMark participates | Pension Fund EIN/Pension Plan Number Pension Zone Status 2014 FIP/RP Status Pending or Implemented Contributions 2015 Surcharge Imposed Date of Collective Bargaining Agreement PACE Industry Union Management Pension Fund 11-6166763 Red Implemented $ 0.1 million Yes 11/9/16 |
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, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of year $ $ $ $ Service cost Interest cost Currency ) ) ) ) Actuarial (gain) loss ) Benefit payments from plans ) ) ) ) Settlement payments — ) — — Net transfer in/(out) (1) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at end of year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in Plan Assets: Fair value of plan assets at beginning of year $ $ $ — $ — Actual gain on plan assets ) — — Employer contributions — — Currency ) — — — Benefit payments ) ) — — Settlement payments — ) — — Net transfers in (1) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of year $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Funded Status Fair value of plan assets $ $ $ — $ — Projected benefit obligation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net liability recognized in statement of financial position $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized in statement of financial position consist of: Current liabilities $ ) $ ) $ ) $ ) Noncurrent liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) For the year ended December 31, 2015, the Company acquired $48.3 million and $39.1 million of pension liabilities and assets, respectively, in conjunction with the FiberMark Acquisition. |
Schedule of amounts recognized in accumulated other comprehensive income | Pension Benefits Postretirement Benefits Other than Pensions December 31, 2015 2014 2015 2014 Accumulated actuarial loss $ $ $ $ Prior service cost ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in accumulated other comprehensive income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of disaggregated information about the pension plans | December 31, Assets Exceed ABO ABO Exceed Assets Total 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation Fair value of plan assets — |
Schedule of components of net periodic benefit cost for Defined Benefit Plans | Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2015 2014 2013 2015 2014 2013 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets (a) ) ) ) — — — Recognized net actuarial loss Amortization of prior service cost (credit) ) ) ) Amount of settlement loss recognized — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost (credit) Amounts related to discontinued operations ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost $ ) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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, 2015 2014 2013 2015 2014 2013 Net periodic benefit expense $ ) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated actuarial gain (loss) ) ) — ) Prior service cost (credit) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in other comprehensive income ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recognized in net periodic benefit cost and other comprehensive income $ ) $ $ ) $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of weighted-average assumptions used to determine benefit obligations | Pension Benefits Postretirement Benefits Other than Pensions 2015 2014 2015 2014 Discount rate % % % % Rate of compensation increase % % — — |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2015 2014 2013 2015 2014 2013 Discount rate % % % % % % Expected long-term return on plan assets % % % — — — Rate of compensation increase % % % — — — |
Schedule of pension plan asset allocations | Percentage of Plan Assets At December 31, 2015 2014 2013 Asset Category Equity securities % % % Debt securities % % % Cash and money-market funds % — % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of target investment allocation and permissible allocation range for plan assets by category | Strategic Target Permitted Range Asset Category Equity securities % 35-45 % Debt securities / Fixed Income % 55-65 % |
Schedule of future benefit payments | Pension Plans Postretirement Benefits Other than Pensions 2016 $ $ 2017 2018 2019 2020 Years 2021-2025 |
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 ) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plans. | |
Schedule of stock-based compensation expense and related income tax benefits | Year Ended December 31, 2015 2014 2013 Stock-based compensation expense $ $ $ Income tax benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based compensation, net of income tax benefit $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2014 $ $ Grant date fair value current year grants Change in estimate of shares to be forfeited — ) Compensation expense recognized ) ) ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized compensation cost — December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expected amortization period (in years) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of stock options awarded | 2015 2014 2013 Nonqualified stock options granted Per share weighted average exercise price $ $ $ Per share weighted average grant date fair value $ $ $ |
Schedule of assumptions used to determine the grant date fair value of options granted | 2015 2014 2013 Expected term in years Risk free interest rate % % % Volatility % % % Dividend yield % % % |
Schedule of stock option activity under the Omnibus Plan | Number of Stock Options Weighted-Average Exercise Price Options outstanding — December 31, 2014 $ Add: Options granted $ Less: Options exercised $ Less: Options forfeited/cancelled $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding — December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of outstanding and exercisable stock options summarized by exercise price | Options Vested or Expected to Vest Options Exercisable Weighted- Average Remaining Contractual Life (Years) Exercise Price Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value (a) Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value (a) $7.41 — $19.25 $ $ $ $ $21.13 — $32.84 $ $ $35.92 — $42.82 $ $ $50.60 — $59.72 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Represents the total pre-tax intrinsic value as of December 31, 2015 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 $62.43 on December 31, 2015. |
Schedule of status of the Company's unvested stock options | Number of Stock Options Weighted-Average Grant Date Fair Value Outstanding — December 31, 2014 $ Add: Options granted $ Less: Options vested $ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity of unvested stock-based awards | RSUs Weighted-Average Grant Date Fair Value Performance Units Weighted-Average Grant Date Fair Value Outstanding — December 31, 2012 $ $ Shares granted (a) $ $ Shares vested ) $ — — Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2013 $ $ Shares granted (a) $ $ Shares vested ) $ — — Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2014 $ $ Shares granted (a) $ $ Shares vested ) $ ) $ Performance Shares vested $ ) $ Shares expired or cancelled ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding — December 31, 2015 (b) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) For the years ended December 31, 2015, 2014 and 2013, includes 495 RSUs, 622 RSUs and 950 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, 2015 was $7.4 million. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity | |
Schedules of shares purchased under stock purchase plan | Year Ended December 31, 2015 2014 2013 Shares $ Shares $ Shares $ 2015 Stock Purchase Plan $ — $ — — $ — 2014 Stock Purchase Plan — — 2013 Stock Purchase Plan — — — — — — |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 201 5 , are as follows: 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Future minimum lease obligations $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Contingencies and Legal Matte35
Contingencies and Legal Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies and Legal Matters | |
Schedule Of bargaining agreements | Contract Expiration Date Location Union May 5, 2016 Bolton England UNITE September 1, 2016 Brattleboro, VT USW September 27, 2016 Reading, PA USW November 9, 2016 Lowville, NY USW January 31, 2018 Whiting, WI (1) USW June 30, 2018 Neenah, WI (1) USW July 14, 2018 Munising, MI (1) USW May 31, 2019 Appleton, WI (1) USW (1) On pension matters the Whiting, Neenah, Munising and Appleton paper mills have bargained jointly with the USW. The current agreement on pension matters will remain in effect until September 2019. |
Discontinued Operations and A36
Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Assets Held for Sale | |
Schedule of selected financial information for discontinued operations | Year Ended December 31, 2015 2014 2013 Net sales $ $ $ Cost of products sold (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit Selling, general and administrative expenses Restructuring costs Other income — net ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (Loss) From Discontinued Operations Before Income Taxes Loss on sale (b) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) Income tax provision (benefit) (a) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) 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. During the first quarter of 2013, the Company received a refund of excess pension contributions 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) This amount includes a net curtailment gain related to the divesture of the pension plan of $15.8 million, including a $5.5 million write-off of deferred actuarial losses. |
Schedule of selected cash flow information for discontinued operations | Year Ended December 31, 2015 2014 2013 Depreciation and amortization $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of major components of assets and liabilities classified as held for sale | At December 31, 2014 Assets Held For Sale Current Assets Accounts receivable — net $ Inventories Prepaid and other current assets ​ ​ ​ ​ ​ Total Current Assets ​ ​ ​ ​ ​ Property, Plant and Equipment Goodwill Intangible Assets — net Other Assets ​ ​ ​ ​ ​ Assets Held for Sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Related to Facilities Held for Sale Current Liabilities Accounts payable $ Accrued expenses Deferred Income Taxes Noncurrent Employee Benefits ​ ​ ​ ​ ​ Liabilities related to facilities held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Business Segment and Geograph37
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of net sales, operating income (loss) and total assets for each business segment | Business Segments Year Ended December 31, 2015 2014 2013 Net sales Technical Products $ $ $ Fine Paper and Packaging Other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 2014 2013 Operating income (loss) Technical Products (a) $ $ $ Fine Paper and Packaging (b) Other (c) ) — — Unallocated corporate costs (d) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Operating income for the year ended December 31, 2015 includes acquisition related integration costs of $1.3 million and $0.4 million of restructuring costs. Operating income for the year ended December 31, 2014 includes acquisition related integration costs of $1.0 million and $0.6 million of restructuring costs. (b) Operating income for the years ended December 31, 2015 and 2013 include acquisition related integration costs of $1.5 million and $0.4 million, respectively. (c) Operating income for the year ended December 31, 2015 includes acquisition related integration costs of $2.4 million. (d) Unallocated corporate costs for the year ended December 31, 2015 includes $0.8 million of restructuring costs. Unallocated corporate costs for the year ended December 31, 2014 includes a pension plan settlement charge of $3.5 million, a loss on the early extinguishment of debt of $0.2 million and $0.7 million of restructuring costs. Unallocated corporate costs for the year ended December 31, 2013 includes a pension plan settlement charge of $0.2 million and a loss on the early extinguishment of debt of $0.5 million. Year Ended December 31, 2015 2014 2013 Depreciation and amortization Technical Products $ $ $ Fine Paper and Packaging Other — — Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Continuing Operations Discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 2014 2013 Capital expenditures Technical Products $ $ $ Fine Paper and Packaging Other — — Corporate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Continuing Operations Discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 Total Assets (a) Technical Products $ $ Fine Paper and Packaging Corporate and other (b) Assets held for sale — ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily cash and deferred income taxes. |
Schedule of net sales and assets by geographic areas | Geographic Information Year Ended December 31, 2015 2014 2013 Net sales United States $ $ $ Europe ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 Total Assets (a) United States $ $ Canada Europe ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Long-lived assets (consisting principally of property and equipment, intangibles, goodwill and other assets) of $342.0 million and $202.0 million as of December 31, 2015 and 2014, respectively, were located in the United States and long-lived assets of $162.8 million and $203.4 million as of December 31, 2015 and 2014, respectively, were located principally in Europe. |
Technical Products | |
Schedule of net sales by product | For the Year ended December 31, 2015 2014 2013 Filtration % % % Backings Specialty ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fine Paper and Packaging | |
Schedule of net sales by product | For the Year ended December 31, 2015 2014 2013 Graphic Imaging % % % Packaging Filing/Office — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Data | |
Summary of advertising and research and development expenses | Year Ended December 31, 2015 2014 2013 Advertising expense $ $ $ Research and development expense (a) Adverting 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, 2015 2014 From customers $ $ Less allowance for doubtful accounts and sales discounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of inventories by major class | December 31, 2015 2014 Inventories by Major Class: Raw materials $ $ Work in progress Finished goods Supplies and other ​ ​ ​ ​ ​ ​ ​ ​ Excess of FIFO over LIFO cost ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of prepaid and other current assets | December 31, 2015 2014 Prepaid and other current assets $ $ Spare parts ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of property, plant and equipment - net | December 31, 2015 2014 Land and land improvements $ $ Buildings Machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ Net Property, Plant and Equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of accrued expenses | December 31, 2015 2014 Accrued salaries and employee benefits $ $ Amounts due to customers Accrued interest Accrued income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of noncurrent employee benefits | December 31, 2015 2014 Pension benefits $ $ Post-employment benefits other than pensions ​ ​ ​ ​ ​ ​ ​ ​ Total (a) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes $2.7 million and $3.4 million in long-term disability benefits due to Terrace Bay retirees and SRCP benefits as of December 31, 2015 and 2014, respectively. |
Schedule of supplemental disclosure of cash flow information | Year Ended December 31, 2015 2014 2013 Cash paid during the year for interest, net of interest expense capitalized $ $ $ Cash paid during the year for income taxes, net of refunds Non-cash investing activities: Liability for equipment acquired |
Schedule of net cash provided by (used in) changes in working capital, net of effect of acquisitions | Year Ended December 31, 2015 2014 2013 Accounts receivable $ ) $ $ ) Inventories ) Income taxes receivable ) ) Prepaid and other current assets ) ) Accounts payable ) Accrued expenses ) Other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Data | |
Schedule of unaudited quarterly data | 2015 Quarters First Second Third Fourth Year (a) Net Sales $ $ $ $ $ Gross Profit Operating Income Income From Continuing Operations Earnings Per Common Share From Continuing Operations: Basic $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes integration/restructuring costs of $6.5 million. 2014 Quarters First Second Third Fourth (b)(c) Year (a)(b)(c) Net Sales $ $ $ $ $ Gross Profit Operating Income Income From Continuing Operations Earnings Per Common Share From Continuing Operations: Basic $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Includes integration/restructuring costs of $2.3 million. (b) Includes a loss on the early extinguishment of debt of $0.2 million. (c) Includes a pension plan settlement charge of $3.5 million. |
Background and Basis of Prese40
Background and Basis of Presentation (Details) $ in Millions | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | Jul. 01, 2014USD ($) | Jan. 31, 2013USD ($) | Jan. 31, 2013USD ($) | Jul. 31, 2014item | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Background and Basis of Presentation | |||||||||
Number of primary operations | item | 2 | ||||||||
Proceeds from sale of paper mill | $ 5.4 | ||||||||
Cash paid to acquire business | $ 118.2 | $ 72.4 | |||||||
Cash payment | $ 5.2 | ||||||||
FiberMark | |||||||||
Background and Basis of Presentation | |||||||||
Purchase price | $ 118 | ||||||||
Cash paid to acquire business | $ 80 | ||||||||
Crane Technical Materials | |||||||||
Background and Basis of Presentation | |||||||||
Purchase price | $ 72 | ||||||||
Number of manufacturing facilities | item | 2 | ||||||||
Cash payment | $ 72 | ||||||||
Lahnstein Mill | |||||||||
Background and Basis of Presentation | |||||||||
Proceeds from sale of paper mill | $ 5.4 | ||||||||
Southworth Company | |||||||||
Background and Basis of Presentation | |||||||||
Cash payment | $ 7 | $ 7 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 45,000 | 15,000 | 450,000 | ||||||||
Earnings per basic common share | |||||||||||
Income from continuing operations | $ 14.5 | $ 13.5 | $ 16.4 | $ 16.1 | $ 27.2 | $ 13.4 | $ 15 | $ 12.4 | $ 60.5 | $ 68 | $ 48.5 |
Distributed and undistributed amounts allocated to participating securities | (0.6) | (0.8) | (0.8) | ||||||||
Income from continuing operations available to common stockholders | 59.9 | 67.2 | 47.7 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (9.4) | 0.7 | 3.5 | ||||||||
Distributed and undistributed amounts allocated to participating securities | (0.1) | ||||||||||
Net income available to common stockholders | $ 50.6 | $ 67.9 | $ 51.2 | ||||||||
Weighted-average basic shares outstanding | 16,754,000 | 16,584,000 | 16,072,000 | ||||||||
Basic earnings (loss) per share | |||||||||||
Continuing operations | $ 0.86 | $ 0.79 | $ 0.97 | $ 0.95 | $ 1.61 | $ 0.79 | $ 0.89 | $ 0.75 | $ 3.58 | $ 4.05 | $ 2.97 |
Discontinued operations | (0.56) | 0.04 | 0.21 | ||||||||
Basic (in dollars per share) | $ 3.02 | $ 4.09 | $ 3.18 | ||||||||
Earnings per diluted common share | |||||||||||
Income from continuing operations | $ 14.5 | $ 13.5 | $ 16.4 | $ 16.1 | $ 27.2 | $ 13.4 | $ 15 | $ 12.4 | $ 60.5 | $ 68 | $ 48.5 |
Distributed and undistributed amounts allocated to participating securities | (0.5) | (0.8) | (0.8) | ||||||||
Income from continuing operations available to common stockholders | 60 | 67.2 | 47.7 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (9.4) | 0.7 | 3.5 | ||||||||
Distributed and undistributed amounts allocated to participating securities | 0.1 | ||||||||||
Net income available to common stockholders | $ 50.7 | $ 67.9 | $ 51.2 | ||||||||
Weighted-average basic shares outstanding | 16,754,000 | 16,584,000 | 16,072,000 | ||||||||
Add: Assumed incremental shares under stock-based compensation plans | 258,000 | 288,000 | 331,000 | ||||||||
Weighted average diluted shares | 17,012,000 | 16,872,000 | 16,403,000 | ||||||||
Diluted earnings (loss) per share | |||||||||||
Continuing operations | $ 0.85 | $ 0.78 | $ 0.96 | $ 0.94 | $ 1.59 | $ 0.78 | $ 0.88 | $ 0.74 | $ 3.53 | $ 3.99 | $ 2.91 |
Discontinued operations | (0.55) | 0.04 | 0.21 | ||||||||
Diluted (in dollars per share) | $ 2.98 | $ 4.03 | $ 3.12 | ||||||||
Postretirement Benefits Other than Pensions | |||||||||||
Cash and Cash Equivalents | |||||||||||
Restricted cash and cash equivalent | $ 0.3 | $ 0.4 | $ 0.3 | $ 0.4 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2015 | |
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 Accoun43
Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Millions | Nov. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Intangible Assets | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Minimum | |||
Other Intangible Assets | |||
Estimated useful lives of intangible assets | 10 years | ||
Maximum | |||
Other Intangible Assets | |||
Estimated useful lives of intangible assets | 15 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Equities | ||
Fair Value Measurements | ||
Pension plan assets at fair value | $ 92.4 | $ 99.2 |
Fixed Income Securities | ||
Fair Value Measurements | ||
Pension plan assets at fair value | 185.8 | 188.1 |
Hedge funds | ||
Fair Value Measurements | ||
Pension plan assets at fair value | 23.2 | |
Level 1 | Cash and equivalents | ||
Fair Value Measurements | ||
Pension plan assets at fair value | 6.9 | 1 |
Fair Value | ||
Fair Value Measurements | ||
Pension plan assets at fair value | 308.3 | 288.3 |
Fair Value | Cash and equivalents | ||
Fair Value Measurements | ||
Pension plan assets at fair value | 6.9 | 1 |
Fair Value | Investments funds | ||
Fair Value Measurements | ||
Pension plan assets at fair value | $ 301.4 | $ 287.3 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | May. 31, 2013 |
Marketable securities | |||
Cost of marketable securities | $ 3.4 | ||
Senior notes | 2021 Senior Notes (5.25% fixed rate) | |||
Fair Value of Financial Instruments | |||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | |
Secured debt | Second German Loan Agreement (2.5% fixed rate) | |||
Fair Value of Financial Instruments | |||
Fixed rate of interest (as a percent) | 2.50% | 2.50% | |
Carrying Value | |||
Fair Value of Financial Instruments | |||
Total Debt | $ 234.4 | $ 234.3 | |
Carrying Value | Senior notes | 2021 Senior Notes (5.25% fixed rate) | |||
Fair Value of Financial Instruments | |||
Total Debt | 175 | 175 | |
Carrying Value | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2019 | |||
Fair Value of Financial Instruments | |||
Total Debt | 51.1 | 48.7 | |
Carrying Value | Secured debt | Second German Loan Agreement (2.5% fixed rate) | |||
Fair Value of Financial Instruments | |||
Total Debt | 8.3 | 10.6 | |
Fair Value | |||
Fair Value of Financial Instruments | |||
Total Debt | 229.3 | 227.3 | |
Fair Value | Senior notes | 2021 Senior Notes (5.25% fixed rate) | |||
Fair Value of Financial Instruments | |||
Total Debt | 169.9 | 169.6 | |
Fair Value | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2019 | |||
Fair Value of Financial Instruments | |||
Total Debt | 51.1 | 48.7 | |
Fair Value | Secured debt | Second German Loan Agreement (2.5% fixed rate) | |||
Fair Value of Financial Instruments | |||
Total Debt | 8.3 | $ 9 | |
Fair Value | Level 1 | Other assets | |||
Marketable securities | |||
Fair value of marketable securities | $ 3.3 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of accumulated other comprehensive income (loss), net of applicable income taxes | |||
Unrealized foreign currency translation losses | $ (20.8) | $ (5.8) | |
Net loss from pension and other postretirement benefit liabilities (net of income tax benefits of $33.8 million and $31.1 million, respectively | (57.5) | (62.6) | |
Accumulated other comprehensive loss | (78.3) | (68.4) | |
Income tax benefits related to net loss from pension and other postretirement benefit liabilities | 33.8 | 31.1 | |
Changes in accumulated other comprehensive income, Pretax Amount | |||
Unrealized foreign currency translation gains (losses), Pretax Amount | (15) | (23.7) | $ 8.7 |
Adjustment to pension and other benefit liabilities, Pretax Amount | 6.3 | (26.1) | 22.5 |
Unrealized loss on "available-for-sale" securities, Pretax Amount | (0.1) | ||
Gain (loss) from other comprehensive income items before income taxes | (8.7) | (49.8) | 31.1 |
Changes in accumulated other comprehensive income, Tax Effect | |||
Adjustment to pension and other benefit liabilities, Tax Effect | (1.2) | 8.7 | (8.6) |
Other comprehensive income (loss), Tax Effect | (1.2) | 8.7 | (8.6) |
Changes in accumulated other comprehensive income, Net Amount | |||
Unrealized foreign currency translation gains (losses), Net Amount | (15) | (23.7) | 8.7 |
Adjustment to pension and other benefit liabilities, Net Amount | 5.1 | (17.4) | 13.9 |
Unrealized loss on "available-for-sale" securities, Net Amount | (0.1) | ||
Other comprehensive income (loss) | (9.9) | (41.1) | 22.5 |
Reclassification from Accumulated Other Comprehensive Income | |||
Pension plan settlement charge | 3.5 | 0.2 | |
Income tax benefit | (29.4) | (7.5) | (23.1) |
Unamortized deferred financing costs | 5 | 6.1 | |
Effect of early adoption of ASU | |||
Reclassification from Accumulated Other Comprehensive Income | |||
Unamortized deferred financing costs | 5 | 6.1 | |
Deferred noncurrent income taxes | 19.8 | 15.8 | |
Pension plan assets at fair value | 301.4 | 287.3 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification from Accumulated Other Comprehensive Income | |||
Loss from discontinued operations | 5.5 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cost of Sales and Selling, General and Administrative Expenses | |||
Reclassification from Accumulated Other Comprehensive Income | |||
Cost of products sold and selling, general and administrative expenses | 7.1 | 4.7 | 6.5 |
Income tax benefit | $ 2.7 | 1.7 | 2.5 |
Amount Reclassified from Accumulated Other Comprehensive Income | Pension Plan Settlement Charge | |||
Reclassification from Accumulated Other Comprehensive Income | |||
Pension plan settlement charge | 3.5 | 0.2 | |
Income tax benefit | $ 1.3 | $ 0.1 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Aug. 01, 2015USD ($) | Jul. 01, 2014USD ($) | Jan. 31, 2013USD ($) | Jan. 31, 2013USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares |
Assets Assumed | ||||||||||||||||
Acquired goodwill | $ 72.2 | $ 50.5 | $ 72.2 | $ 50.5 | ||||||||||||
Increase/(Decrease) | ||||||||||||||||
Goodwill expected to be deductible for income tax purpose | 0 | 0 | ||||||||||||||
Acquisition-related integration costs | 6.5 | 2.3 | $ 0.4 | |||||||||||||
Net sales | 230.4 | $ 231.6 | $ 211.3 | $ 214.4 | 203.6 | $ 215.3 | $ 214.6 | $ 206.2 | 887.7 | 839.7 | 781.7 | |||||
Pro Forma Information | ||||||||||||||||
Cash payment | 5.2 | |||||||||||||||
Finished goods inventory | 67.2 | 65.8 | 67.2 | 65.8 | ||||||||||||
FiberMark | ||||||||||||||||
Acquisitions | ||||||||||||||||
Purchase price | $ 118 | |||||||||||||||
Decrease in acquired goodwill | 1.2 | |||||||||||||||
Assets Assumed | ||||||||||||||||
Cash and cash equivalents | 4.8 | 4.8 | ||||||||||||||
Accounts receivable | 13.7 | 13.7 | ||||||||||||||
Inventories | 27.5 | 27.5 | ||||||||||||||
Deferred income taxes | 2.3 | 2.3 | ||||||||||||||
Prepaid and other current assets | 3.6 | 3.6 | ||||||||||||||
Property, plant and equipment | 68.9 | 68.9 | ||||||||||||||
Non-amortizable intangible assets | 1.8 | 1.8 | ||||||||||||||
Amortizable intangible assets | 25.1 | 25.1 | ||||||||||||||
Acquired goodwill | 25.5 | 25.5 | ||||||||||||||
Total assets acquired | 173.2 | 173.2 | ||||||||||||||
Liabilities Assumed | ||||||||||||||||
Accounts payable | 8 | 8 | ||||||||||||||
Accrued expenses | 5.6 | 5.6 | ||||||||||||||
Deferred income taxes | 24.1 | 24.1 | ||||||||||||||
Noncurrent employee benefits | 9.1 | 9.1 | ||||||||||||||
Other noncurrent obligations | 3.1 | 3.1 | ||||||||||||||
Total liabilities assumed | 49.9 | 49.9 | ||||||||||||||
Net assets acquired | 123.3 | 123.3 | ||||||||||||||
Increase/(Decrease) | ||||||||||||||||
Acquisition-related integration costs | 5.3 | |||||||||||||||
Capital costs | 68.9 | 68.9 | ||||||||||||||
Net sales | 58.1 | |||||||||||||||
Income from operation before income taxes | 1.5 | |||||||||||||||
Pro Forma Information | ||||||||||||||||
Net sales | 984 | 1,003.8 | ||||||||||||||
Operating income | 103.7 | 95.6 | ||||||||||||||
Income from continuing operations | 61.7 | 72.8 | ||||||||||||||
Income (loss) from discontinued operations | (9.4) | 0.7 | ||||||||||||||
Net income (loss) | $ 52.3 | $ 73.5 | ||||||||||||||
Basic earnings (loss) per share - Continuing operations | $ / shares | $ 3.65 | $ 4.34 | ||||||||||||||
Basic earnings (loss) per share - Discontinued operations | $ / shares | (0.56) | 0.04 | ||||||||||||||
Basic earnings (loss) per share | $ / shares | $ 3.09 | $ 4.38 | ||||||||||||||
Diluted earnings (loss) per share - Continuing operations | $ / shares | $ 3.60 | $ 4.27 | ||||||||||||||
Diluted earnings (loss) per share - Discontinued operations | $ / shares | (0.55) | 0.04 | ||||||||||||||
Diluted earnings (loss) per share | $ / shares | $ 3.05 | $ 4.31 | ||||||||||||||
Crane Technical Materials | ||||||||||||||||
Acquisitions | ||||||||||||||||
Purchase price | $ 72 | |||||||||||||||
Increase/(Decrease) | ||||||||||||||||
Acquisition-related integration costs | $ 1 | |||||||||||||||
Net sales | 24.1 | |||||||||||||||
Income from operation before income taxes | 3.1 | |||||||||||||||
Pro Forma Information | ||||||||||||||||
Net sales | 862.3 | 826.5 | ||||||||||||||
Operating income | 89.2 | 83.2 | ||||||||||||||
Income from continuing operations | 69.6 | 48.9 | ||||||||||||||
Income (loss) from discontinued operations | 0.7 | 3.5 | ||||||||||||||
Net income (loss) | $ 70.3 | $ 52.4 | ||||||||||||||
Basic earnings (loss) per share - Continuing operations | $ / shares | $ 4.15 | $ 2.99 | ||||||||||||||
Basic earnings (loss) per share - Discontinued operations | $ / shares | 0.04 | 0.21 | ||||||||||||||
Basic earnings (loss) per share | $ / shares | $ 4.19 | $ 3.20 | ||||||||||||||
Diluted earnings (loss) per share - Continuing operations | $ / shares | $ 4.08 | $ 2.93 | ||||||||||||||
Diluted earnings (loss) per share - Discontinued operations | $ / shares | 0.04 | 0.21 | ||||||||||||||
Diluted earnings (loss) per share | $ / shares | $ 4.12 | $ 3.14 | ||||||||||||||
Cash payment | $ 72 | |||||||||||||||
Crane Technical Materials | I T systems and infrastructure projects | ||||||||||||||||
Assets Assumed | ||||||||||||||||
Property, plant and equipment | 1.1 | $ 1.1 | ||||||||||||||
Increase/(Decrease) | ||||||||||||||||
Capital costs | 1.1 | 1.1 | ||||||||||||||
Southworth Company | ||||||||||||||||
Acquisitions | ||||||||||||||||
Period of finished goods inventory purchased | 1 month | |||||||||||||||
Assets Assumed | ||||||||||||||||
Inventories | $ 1.8 | $ 1.8 | $ 1.8 | |||||||||||||
Increase/(Decrease) | ||||||||||||||||
Acquisition-related integration costs | $ 0.4 | |||||||||||||||
Pro Forma Information | ||||||||||||||||
Cash payment | $ 7 | $ 7 | ||||||||||||||
Technical Products | ||||||||||||||||
Assets Assumed | ||||||||||||||||
Acquired goodwill | 65.2 | 50.5 | $ 65.2 | 50.5 | 41.9 | |||||||||||
Increase/(Decrease) | ||||||||||||||||
Goodwill acquired in acquisition | $ 18.5 | 13.5 | ||||||||||||||
Percentage of concentration risk | 30.00% | |||||||||||||||
Acquisition-related integration costs | $ 1.3 | 1 | ||||||||||||||
Net sales | 429.2 | 403.6 | 353.3 | |||||||||||||
Fine Paper and Packaging | ||||||||||||||||
Increase/(Decrease) | ||||||||||||||||
Goodwill acquired in acquisition | $ 6.5 | |||||||||||||||
Percentage of concentration risk | 40.00% | |||||||||||||||
Acquisition-related integration costs | $ 1.5 | 0.4 | ||||||||||||||
Net sales | 442.7 | 436.1 | 428.4 | |||||||||||||
Other segments | ||||||||||||||||
Assets Assumed | ||||||||||||||||
Acquired goodwill | $ 72.2 | $ 50.5 | 72.2 | $ 50.5 | $ 41.9 | |||||||||||
Increase/(Decrease) | ||||||||||||||||
Goodwill acquired in acquisition | $ 0.5 | |||||||||||||||
Percentage of concentration risk | 30.00% |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Nov. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Net | |||
Balance at the beginning of the period | $ 50.5 | ||
Balance at the end of the period | 72.2 | $ 50.5 | |
Impairment of goodwill | $ 0 | 0 | 0 |
Technical Products | |||
Gross Amount | |||
Balance at the beginning of the period | 100.8 | 98.9 | |
Goodwill acquired in acquisition | 18.5 | 13.5 | |
Foreign currency translation | (9) | (11.6) | |
Balance at the end of the period | 110.3 | 100.8 | |
Accumulated Impairment Losses | |||
Balance at the beginning of the period | (50.3) | (57) | |
Foreign currency translation | 5.2 | 6.7 | |
Balance at the end of the period | (45.1) | (50.3) | |
Net | |||
Balance at the beginning of the period | 50.5 | 41.9 | |
Goodwill acquired in acquisition of the Fibemark | 18.5 | 13.5 | |
Foreign currency translation | (3.8) | (4.9) | |
Balance at the end of the period | 65.2 | 50.5 | |
Fine Paper and Packaging | |||
Gross Amount | |||
Goodwill acquired in acquisition | 6.5 | ||
Balance at the end of the period | 6.5 | ||
Other segments | |||
Gross Amount | |||
Goodwill acquired in acquisition | 0.5 | ||
Balance at the end of the period | 0.5 | ||
Net | |||
Balance at the beginning of the period | 50.5 | 41.9 | |
Goodwill acquired in acquisition of the Fibemark | 25.5 | 13.5 | |
Foreign currency translation | (3.8) | (4.9) | |
Balance at the end of the period | $ 72.2 | 50.5 | |
Lahnstein Mill | |||
Net | |||
Goodwill classified under assets held for sale | $ 1 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Intangible Assets | |||
Amortizable intangible assets, Gross Amount | $ 55.9 | $ 31.7 | |
Amortizable intangible assets, Accumulated Amortization | (12.4) | (10.4) | |
Total, Gross Amount | 91.5 | 67 | |
Net identifiable intangible assets | 79.1 | 56.6 | |
Aggregate amortization expense of acquired intangible assets | 2.9 | 2.3 | $ 1.9 |
Estimated annual amortization expense | |||
2,016 | 3.9 | ||
2,017 | 3.6 | ||
2,018 | 3.6 | ||
2,019 | 3.6 | ||
2,020 | $ 3.6 | ||
Minimum | |||
Other Intangible Assets | |||
Average amortization | 10 years | ||
Maximum | |||
Other Intangible Assets | |||
Average amortization | 15 years | ||
Technical Products | |||
Other Intangible Assets | |||
Total, Gross Amount | $ 49.8 | ||
Fine Paper and Packaging | |||
Other Intangible Assets | |||
Total, Gross Amount | 28.3 | ||
Other segments | |||
Other Intangible Assets | |||
Total, Gross Amount | 1 | ||
Trade names | |||
Other Intangible Assets | |||
Non-amortizable, Gross Amount | 35.6 | 35.3 | |
Customer based intangibles | |||
Other Intangible Assets | |||
Amortizable intangible assets, Gross Amount | 35.5 | 22.7 | |
Amortizable intangible assets, Accumulated Amortization | (9.2) | (8.1) | |
Trade names and trademarks | |||
Other Intangible Assets | |||
Amortizable intangible assets, Gross Amount | 4.4 | 1.5 | |
Amortizable intangible assets, Accumulated Amortization | (1.8) | (1.3) | |
Acquired technology | |||
Other Intangible Assets | |||
Amortizable intangible assets, Gross Amount | 16 | 7.5 | |
Amortizable intangible assets, Accumulated Amortization | (1.4) | (1) | |
FiberMark | |||
Other Intangible Assets | |||
Intangible assets-definite lived | 25.1 | ||
Non-amortizable trade names | 1.8 | ||
Total intangible assets | $ 26.9 | ||
FiberMark | Customer based intangibles | |||
Other Intangible Assets | |||
Average amortization | 15 years | ||
Intangible assets-definite lived | $ 14.1 | ||
FiberMark | Trade names and trademarks | |||
Other Intangible Assets | |||
Average amortization | 15 years | ||
Intangible assets-definite lived | $ 2.3 | ||
FiberMark | Acquired technology | |||
Other Intangible Assets | |||
Average amortization | 13 years | ||
Intangible assets-definite lived | $ 8.7 | ||
Lahnstein Mill | |||
Other Intangible Assets | |||
Intangible assets classified as assets held for sale | $ 2.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | 108 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
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 benefit (as a percent) | 2.10% | 2.10% | 2.40% | |
Tax on foreign dividends (as a percent) | 3.60% | 3.00% | 2.80% | |
Foreign tax rate differences (as a percent) | (2.20%) | (2.80%) | (2.40%) | |
Foreign financing structure (as a percent) | (1.30%) | (2.50%) | (3.30%) | |
Research and development and other tax credits (as a percent) | (3.90%) | (31.90%) | (3.10%) | |
Domestic production activities deduction (as a percent) | (2.20%) | |||
Uncertain income tax positions (as a percent) | 1.30% | 6.50% | 1.30% | |
Other differences - net (as a percent) | 0.30% | 0.50% | (0.40%) | |
Effective income tax rate (as a percent) | 32.70% | 9.90% | 32.30% | |
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||
U.S. federal statutory income tax rate | $ 31.5 | $ 26.4 | $ 25.1 | |
U.S. state income taxes, net of federal income tax benefit | 1.9 | 1.6 | 1.7 | |
Tax on foreign dividends | 3.2 | 2.3 | 2 | |
Foreign tax rate differences | (2) | (2.1) | (1.7) | |
Benefit of tax structure | (1.2) | (1.9) | (2.4) | |
Research and development and other credits | (3.5) | (24.1) | (2.2) | $ 21.9 |
Domestic production activities deduction | (2) | |||
Uncertain tax positions | 1.2 | 4.9 | 0.9 | |
Other differences - net | 0.3 | 0.4 | (0.3) | |
Effective income tax rate | 29.4 | $ 7.5 | $ 23.1 | |
Valuation allowance provided against certain U.S. state deferred income tax assets | 2.9 | |||
FiberMark | ||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||
Research and development and other credits | $ 1.4 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income from continuing operations before income taxes: | |||
U.S. | $ 62.2 | $ 46.5 | $ 48 |
Foreign | 27.7 | 29 | 23.6 |
Income from continuing operations before income taxes | 89.9 | 75.5 | 71.6 |
Current: | |||
Federal | 12.7 | 0.5 | (0.5) |
State | 1.3 | 0.3 | |
Foreign | 5.1 | 3.4 | 5.8 |
Total current tax provision | 19.1 | 3.9 | 5.6 |
Deferred: | |||
Federal | 7.7 | 6.9 | 18.4 |
State | 2.3 | (5.9) | |
Foreign | 0.3 | 2.6 | (0.9) |
Total deferred tax provision | 10.3 | 3.6 | 17.5 |
Effective income tax rate | $ 29.4 | $ 7.5 | $ 23.1 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Net deferred income tax assets | ||
Employee benefits | $ 27.8 | $ 21.7 |
Research and development tax credits | 20.9 | 26.1 |
Net operating losses and credits | 10.7 | 12.9 |
Accrued liabilities | 2.9 | 2.5 |
Inventories | 1.3 | 0.9 |
Accelerated depreciation | (34.8) | (18.6) |
Intangibles | (10.2) | |
Other | 1.4 | 0.2 |
Net deferred income tax assets | 20 | 45.7 |
Net deferred income tax liabilities | ||
Accelerated depreciation | 12.8 | 16 |
Intangibles | 3.5 | 3.5 |
Employee benefits | (3.9) | (8.1) |
Interest limitation | (0.5) | (1.1) |
Net operating losses | (0.1) | (0.2) |
Other | (0.2) | |
Net deferred income tax liabilities | 11.8 | 9.9 |
Valuation allowance provided against certain U.S. state deferred income tax assets | 2.9 | |
Deferred tax asset related to net operating losses | 2.5 | |
Alternative minimum tax credit carryovers | 3.5 | |
R & D credits subject to expiration | 30.2 | |
Pre-acquisition built-in carryovers | 11 | |
R&D credit, valuation allowance | 2.9 | |
Operating loss carryfowards, valuation allowance | $ 0 | |
U.S. state | ||
Net deferred income tax liabilities | ||
Net operating losses | 78.1 | |
Operating loss carryfowards, valuation allowance | $ 0.1 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
NOLs | |||
Undistributed earnings of foreign subsidiaries | $ 0 | $ 0 | |
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at the beginning of the period | 7 | 4.3 | $ 4.8 |
Increases in prior period tax positions | 0.5 | 0.2 | |
Decreases in prior period tax positions | (2.2) | (0.8) | |
Increases in current period tax positions | 5.5 | 5.3 | 1.3 |
Decreases due to settlements with tax authorities | (0.2) | (1.3) | |
Decrease from foreign exchange rate | (0.1) | (0.2) | |
Increase from foreign exchange rate | 0.1 | ||
Balance at the end of the period | 12.9 | 7 | $ 4.3 |
Benefit for uncertain tax positions, if recognized | 11.4 | ||
Accrued for interest and penalties related to uncertain income tax positions | 0.4 | ||
Increase in uncertain tax positions related to R&D credits | 1.3 | ||
Maximum | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Accrued for interest and penalties related to uncertain income tax positions | $ 0.1 | ||
U.S. state | |||
NOLs | |||
Net operating losses | 78.1 | ||
FiberMark | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Various uncertain tax positions balance | 4.7 | ||
Purchase price for uncertain tax position for goodwill | 3.7 | ||
Purchase price for uncertain tax position for other current assets | $ 1 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Jan. 31, 2013EUR (€)installment | |
Principal Payments | |||||||
Deferred financing costs | $ (6.1) | $ (5) | |||||
Total Debt | 228.2 | 229.4 | |||||
Less: Debt payable within one year | 1.4 | 1.2 | |||||
Long-term debt | 226.8 | 228.2 | |||||
2021 Senior Notes (5.25% fixed rate) | |||||||
Principal Payments | |||||||
Proceeds from borrowings | $ 175 | ||||||
Revolving bank credit facility (variable rates) due November 2017 | |||||||
Principal Payments | |||||||
Proceeds from borrowings | 24.9 | ||||||
Revolving bank credit facility (variable rates) due November 2017 | Southworth Company | |||||||
Principal Payments | |||||||
Proceeds from borrowings | 7 | ||||||
Global Revolving Credit Facilities (variable rates) due December 2019 | |||||||
Principal Payments | |||||||
Proceeds from borrowings | $ 113.6 | ||||||
Global Revolving Credit Facilities (variable rates) due December 2019 | FiberMark | |||||||
Principal Payments | |||||||
Proceeds from borrowings | $ 38 | ||||||
U.S Revolving Credit Facility | Letter of Credit | |||||||
Principal Payments | |||||||
Maximum borrowing capacity | 20 | ||||||
German Revolving Credit Facility | Letter of Credit | |||||||
Principal Payments | |||||||
Maximum borrowing capacity | 2 | ||||||
Second German Loan Agreement (2.5% fixed rate) | |||||||
Principal Payments | |||||||
Proceeds from borrowings | $ 11.9 | ||||||
Senior notes | 2021 Senior Notes (5.25% fixed rate) | |||||||
Principal Payments | |||||||
Total Debt | 175 | $ 175 | |||||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | 5.25% | ||||
Total term of notes | 8 years | ||||||
Face amount | $ 175 | ||||||
Period to pay cash dividends on common stock | 12 months | ||||||
Senior notes | 2021 Senior Notes (5.25% fixed rate) | Maximum | |||||||
Principal Payments | |||||||
Dividend restriction | $ 25 | ||||||
Senior notes | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | |||||||
Principal Payments | |||||||
Fixed rate of interest (as a percent) | 7.375% | ||||||
Total term of notes | 10 years | ||||||
Amount of debt redeemed or repaid | $ 70 | ||||||
Secured debt | Letter of Credit | |||||||
Principal Payments | |||||||
Total outstanding | 2.8 | ||||||
Secured debt | Revolving bank credit facility (variable rates) due November 2017 | |||||||
Principal Payments | |||||||
Amount of debt redeemed or repaid | $ 56 | ||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | |||||||
Principal Payments | |||||||
Total Debt | 48.7 | $ 51.1 | |||||
Maximum borrowing capacity that may be increased | 50 | ||||||
Maximum borrowing capacity | 250 | ||||||
Facility fee on unused amount of Revolver commitment (as a percent) | 0.25% | ||||||
Period to pay cash dividends on common stock | 12 months | ||||||
Weighted-average interest rate (as a percent) | 1.80% | 1.80% | |||||
Available credit | $ 122.9 | ||||||
Total outstanding | 51.1 | ||||||
Fixed charge coverage ratio required | 1.1 | ||||||
Period for maintaining a fixed charge coverage ratio | 12 months | ||||||
Period to be maintained for available borrowing capacity | 60 days | ||||||
Amount of the company's stock allowed to be repurchased in each fiscal year beginning in 2015 | $ 10 | ||||||
Borrowing availability to determine stock repurchases and dividend payments | 25 | ||||||
Percentage of aggregate commitments to determine the stock repurchases and dividend payments | 12.50% | ||||||
Period to be maintained for stock repurchase or dividend payment | 60 days | ||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Minimum | |||||||
Principal Payments | |||||||
Borrowing availability for not achieving the fixed charge coverage ratio | 35 | ||||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 17.50% | ||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Maximum | |||||||
Principal Payments | |||||||
Dividend restriction | 25 | ||||||
Borrowing availability for not achieving the fixed charge coverage ratio | 20 | ||||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 10.00% | ||||||
Secured debt | U.S Revolving Credit Facility | |||||||
Principal Payments | |||||||
Maximum borrowing capacity | 125 | ||||||
Secured debt | German Revolving Credit Facility | |||||||
Principal Payments | |||||||
Maximum borrowing capacity | 75 | ||||||
Secured debt | German Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.00% | ||||||
Secured debt | Second German Loan Agreement (2.5% fixed rate) | |||||||
Principal Payments | |||||||
Total Debt | $ 10.6 | € 7.6 | $ 8.3 | ||||
Fixed rate of interest (as a percent) | 2.50% | 2.50% | 2.50% | ||||
Interest rate on amounts outstanding (as a percent) | 2.45% | ||||||
Number of equal quarterly installments | installment | 32 | ||||||
Maximum borrowing capacity | € | € 9 | ||||||
Length of the year considered for interest calculation | 360 days | ||||||
Prime rate | U.S Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.00% | ||||||
Prime rate | U.S Revolving Credit Facility | Maximum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.50% | ||||||
Federal funds rate | U.S Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.00% | ||||||
Federal funds rate | U.S Revolving Credit Facility | Maximum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.50% | ||||||
LIBOR | U.S Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.00% | ||||||
LIBOR | U.S Revolving Credit Facility | Maximum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 0.50% | ||||||
LIBOR | German Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument basis spread on variable rate (as a percent) | 1.50% | ||||||
LIBOR | German Revolving Credit Facility | Maximum | |||||||
Principal Payments | |||||||
Debt instrument reference rate | 2.00% | ||||||
LIBOR | Secured debt | German Revolving Credit Facility | |||||||
Principal Payments | |||||||
Debt instrument variable rate basis | LIBOR | ||||||
LIBOR | Secured debt | German Revolving Credit Facility | Minimum | |||||||
Principal Payments | |||||||
Debt instrument basis spread on variable rate (as a percent) | 1.50% | ||||||
LIBOR | Secured debt | German Revolving Credit Facility | Maximum | |||||||
Principal Payments | |||||||
Debt instrument basis spread on variable rate (as a percent) | 2.00% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt payments | ||
2,016 | $ 1.2 | |
2,017 | 1.3 | |
2,018 | 1.2 | |
2,019 | 52.3 | |
2,020 | 1.2 | |
Thereafter | 177.2 | |
Total debt | 234.4 | |
Total Debt | $ 229.4 | $ 228.2 |
Pension and Other Postretirem56
Pension and Other Postretirement Benefits (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)person | |
Amounts recognized in statement of financial position consist of: | |||||
Noncurrent liabilities | $ (89.7) | $ (80.9) | |||
Fiber Mark | |||||
Pension and other postretirement benefits | |||||
Employer contributions | $ 0.1 | ||||
Change in Plan Assets: | |||||
Fair value of plan assets at end of year | 39.1 | ||||
Reconciliation of Funded Status | |||||
Fair value of plan assets | 39.1 | 39.1 | |||
Net liability recognized in statement of financial position | 48.3 | ||||
Amounts recognized in statement of financial position consist of: | |||||
Net liability recognized in statement of financial position | 48.3 | ||||
Fiber Mark | Maximum | |||||
Pension and other postretirement benefits | |||||
Net periodic benefit cost | 0.1 | ||||
Matching contribution (as a percent) | 5.00% | ||||
Pension Benefits | |||||
Pension and other postretirement benefits | |||||
Number of eligible participants who accepted settlement | person | 425 | ||||
Cash paid for lump-sum payments | $ 14 | ||||
Liabilities of the SERP | 3.5 | $ 0.2 | |||
Settlement loss recognized | 3.5 | 0.2 | |||
Defined Benefit Plan, Assets for Plan Benefits, Total | 2 | ||||
Defined benefit plan investments classified as prepaid and other current assets | 0.7 | ||||
Defined benefit plan investments classified as other assets | 1.3 | ||||
Net periodic benefit cost | (8.4) | 11.8 | 7.9 | ||
Change in Benefit Obligation: | |||||
Benefit obligation at beginning of year | 330.2 | 300.9 | |||
Service cost | 5.5 | 5 | 5 | ||
Interest cost | 13.8 | 14.5 | 12.8 | ||
Currency | (4) | (4.1) | |||
Actuarial (gain) loss | (18.8) | 41.6 | |||
Benefit payments from plans | (14.9) | (13.8) | |||
Settlement payments | (14) | ||||
Net transfer in/(out) | 48.3 | 0.1 | |||
Benefit obligation at end of year | 360.1 | 330.2 | 300.9 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 288.3 | 261.3 | |||
Actual gain on plan assets | (6) | 28.6 | |||
Employer contributions | 1 | 24.5 | |||
Currency | (0.5) | ||||
Benefit payments | (13.6) | (12.1) | |||
Settlement payments | (14) | ||||
Net transfers in | 39.1 | ||||
Fair value of plan assets at end of year | 308.3 | 288.3 | 261.3 | ||
Reconciliation of Funded Status | |||||
Fair value of plan assets | 288.3 | 261.3 | 261.3 | 308.3 | $ 288.3 |
Projected benefit obligation | 330.2 | 300.9 | 300.9 | 360.1 | 330.2 |
Net liability recognized in statement of financial position | (51.8) | (41.9) | |||
Amounts recognized in statement of financial position consist of: | |||||
Current liabilities | (1.5) | (1.7) | |||
Noncurrent liabilities | (50.3) | (40.2) | |||
Net liability recognized in statement of financial position | (51.8) | (41.9) | |||
Postretirement Benefits Other than Pensions | |||||
Pension and other postretirement benefits | |||||
Net periodic benefit cost | $ 3.4 | 3.8 | 4.2 | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.30% | ||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | ||||
Change in Benefit Obligation: | |||||
Benefit obligation at beginning of year | $ 40.7 | 41.1 | |||
Service cost | 1.7 | 1.7 | 1.8 | ||
Interest cost | 1.6 | 1.9 | 1.8 | ||
Currency | (0.5) | (0.5) | |||
Actuarial (gain) loss | 1.5 | 0.4 | |||
Benefit payments from plans | (4) | (3.9) | |||
Net transfer in/(out) | (0.5) | ||||
Benefit obligation at end of year | 40.5 | 40.7 | 41.1 | ||
Reconciliation of Funded Status | |||||
Projected benefit obligation | $ 40.7 | $ 41.1 | $ 41.1 | 40.5 | 40.7 |
Net liability recognized in statement of financial position | (40.5) | (40.7) | |||
Amounts recognized in statement of financial position consist of: | |||||
Current liabilities | (3.8) | (3.6) | |||
Noncurrent liabilities | (36.7) | (37.1) | |||
Net liability recognized in statement of financial position | $ (40.5) | $ (40.7) |
Pension and Other Postretirem57
Pension and Other Postretirement Benefits (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Pension and other postretirement benefits | |||
Total recognized in accumulated other comprehensive income | $ 57.5 | $ 62.6 | |
Pension Benefits | |||
Pension and other postretirement benefits | |||
Accumulated actuarial loss | 84.1 | 91.2 | |
Prior service cost | 1.2 | 1.5 | |
Total recognized in accumulated other comprehensive income | 85.3 | 92.7 | |
Assets Exceed ABO | |||
Projected benefit obligation | 280.1 | 290.4 | |
Accumulated benefit obligation | 269.1 | 274.1 | |
Fair value of plan assets | 270.4 | 288.3 | |
ABO Exceed Assets | |||
Projected benefit obligation | 80 | 39.8 | |
Accumulated benefit obligation | 79.8 | 39.6 | |
Fair value of plan assets | 37.9 | ||
Total | |||
Projected benefit obligation | 360.1 | 330.2 | $ 300.9 |
Accumulated benefit obligation | 348.9 | 313.7 | |
Fair value of plan assets | 308.3 | 288.3 | 261.3 |
Postretirement Benefits Other than Pensions | |||
Pension and other postretirement benefits | |||
Accumulated actuarial loss | 5.8 | 4.7 | |
Prior service cost | (0.5) | (0.7) | |
Total recognized in accumulated other comprehensive income | 5.3 | 4 | |
Total | |||
Projected benefit obligation | $ 40.5 | $ 40.7 | $ 41.1 |
Pension and Other Postretirem58
Pension and Other Postretirement Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Pension and other postretirement benefits | |||
Service cost | $ 5.5 | $ 5 | $ 5 |
Interest cost | 13.8 | 14.5 | 12.8 |
Expected return on plan assets(a) | (19.3) | (16.7) | (17.1) |
Recognized net actuarial loss | 6.3 | 4.2 | 5.7 |
Amortization of prior service cost (credit) | 0.2 | 0.3 | 0.3 |
Amount of settlement loss recognized | 3.5 | 0.2 | |
Net periodic benefit cost (credit) | 6.5 | 10.8 | 6.9 |
Amounts related to discontinued operations | (14.9) | 1 | 1 |
Net periodic benefit cost | (8.4) | 11.8 | 7.9 |
Postretirement Benefits Other than Pensions | |||
Pension and other postretirement benefits | |||
Service cost | 1.7 | 1.7 | 1.8 |
Interest cost | 1.6 | 1.9 | 1.8 |
Recognized net actuarial loss | 0.3 | 0.4 | 0.7 |
Amortization of prior service cost (credit) | (0.2) | (0.2) | (0.1) |
Net periodic benefit cost (credit) | 3.4 | 3.8 | 4.2 |
Net periodic benefit cost | $ 3.4 | $ 3.8 | $ 4.2 |
Pension and Other Postretirem59
Pension and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension and other postretirement benefits | |||
Total recognized in other comprehensive income | $ (6.3) | $ 26.1 | $ (22.5) |
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 return on plan assets (as a percent) | 8.00% | ||
Minimum | Fixed Income Securities | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Expected long-term return on plan assets (as a percent) | 4.00% | ||
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 return on plan assets (as a percent) | 10.00% | ||
Maximum | Fixed Income Securities | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Expected long-term return on plan assets (as a percent) | 6.00% | ||
Pension Benefits | |||
Pension and other postretirement benefits | |||
Net periodic benefit expense | $ (8.4) | 11.8 | 7.9 |
Accumulated actuarial gain (loss) | (7.1) | 26.4 | (16.4) |
Prior service cost (credit) | (0.3) | (0.3) | 0.2 |
Total recognized in other comprehensive income | (7.4) | 26.1 | (16.2) |
Total recognized in net periodic benefit cost and other comprehensive income | (15.8) | $ 37.9 | $ (8.3) |
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 | 6.6 | ||
Estimated prior service cost | $ 0.2 | ||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Discount rate (as a percent) | 4.54% | 3.91% | |
Rate of compensation increase (as a percent) | 2.18% | 2.92% | |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 3.91% | 4.88% | 4.19% |
Expected long-term return on plan assets (as a percent) | 6.50% | 7.00% | |
Rate of compensation increase (as a percent) | 2.92% | 2.96% | 2.96% |
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 | $ 3.4 | $ 3.8 | $ 4.2 |
Accumulated actuarial gain (loss) | 1.1 | (5.1) | |
Prior service cost (credit) | 0.2 | 0.2 | (1.3) |
Total recognized in other comprehensive income | 1.3 | 0.2 | (6.4) |
Total recognized in net periodic benefit cost and other comprehensive income | 4.7 | $ 4 | $ (2.2) |
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 | 0.3 | ||
Estimated prior service cost | $ (0.2) | ||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Discount rate (as a percent) | 4.07% | 4.05% | |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 4.05% | 4.84% | 4.12% |
U.S. pension plan | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Expected long-term return on plan assets (as a percent) | 6.50% | ||
U.S. pension plan | Minimum | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Expected long-term return on plan assets (as a percent) | 6.50% |
Pension and Other Postretirem60
Pension and Other Postretirement Benefits (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 11.3 | ||
Equity securities | |||
Target investment allocation and permissible allocation range for plan assets | |||
Strategic Target (as a percent) | 35.00% | ||
Fixed Income 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 | 34.00% | 35.00% | 35.00% |
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 | Fixed Income Securities | |||
Pension plan | |||
Percentage of Plan Assets | 64.00% | 65.00% | 64.00% |
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 | 2.00% | 1.00% |
Pension and Other Postretirem61
Pension and Other Postretirement Benefits (Details 6) $ in Millions | Dec. 31, 2015USD ($) |
Pension Benefits | |
Future service benefit payments | |
2,016 | $ 17.5 |
2,017 | 19.4 |
2,018 | 19.2 |
2,019 | 21.9 |
2,020 | 20.2 |
Years 2021-2025 | 113.6 |
Postretirement Benefits Other than Pensions | |
Future service benefit payments | |
2,016 | 3.8 |
2,017 | 3.5 |
2,018 | 3.9 |
2,019 | 4.2 |
2,020 | 4.3 |
Years 2021-2025 | $ 18.6 |
Pension and Other Postretirem62
Pension and Other Postretirement Benefits (Details 7) - Postretirement Benefits Other than Pensions $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension and other postretirement benefits | |
Effect on post-retirement benefit other than pension obligation, Increase | $ 0.3 |
Effect on post-retirement benefit other than pension obligation, Decrease | $ 0.3 |
Pension and Other Postretirem63
Pension and Other Postretirement Benefits (Details 8) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fiber Mark | Minimum | |||
Pension and other postretirement benefits | |||
Matching contribution (as a percent) | 0.00% | ||
Fiber Mark | Maximum | |||
Pension and other postretirement benefits | |||
Matching contribution (as a percent) | 3.00% | ||
Defined contribution retirement plans | |||
Pension and other postretirement benefits | |||
Cost recognized | $ 2.5 | $ 1.9 | $ 1.9 |
Supplemental retirement contribution plan | |||
Pension and other postretirement benefits | |||
Cost recognized | 0.2 | 0.1 | 0.3 |
Voluntary contribution investment plans | |||
Pension and other postretirement benefits | |||
Cost recognized | $ 2.7 | $ 1.9 | $ 1.8 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2004 | Aug. 31, 2014 | |
Stock Compensation Plans | ||||||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 6.5 | $ 6 | $ 4.9 | |||
Income tax benefit | (2.5) | (2.3) | (1.9) | |||
Stock-based compensation, net of income tax benefit | 4 | 3.7 | 3 | |||
Compensation costs related to equity awards and amounts recognized | ||||||
Compensation expense recognized | $ (6.5) | $ (6) | $ (4.9) | |||
Stock options awarded | ||||||
Nonqualified stock options granted (in shares) | 87,930 | |||||
Per share weighted average exercise price (in dollars per share) | $ 59.72 | |||||
Per share weighted average grant date fair value (in dollars per share) | $ 16.47 | |||||
Number of Stock Options | ||||||
Options outstanding at the end of the period (in shares) | 526,611 | 603,961 | ||||
Add: Options granted (in shares) | 87,930 | |||||
Less: Options exercised (in shares) | 155,217 | |||||
Less: Options forfeited/cancelled (in shares) | 10,063 | |||||
Weighted-Average Exercise Price | ||||||
Options outstanding at the end of the period (in dollars per share) | $ 31.94 | $ 26.49 | ||||
Add: Options granted (in dollars per share) | 59.72 | |||||
Less: Options exercised (in dollars per share) | 26.20 | |||||
Less: Options forfeited/cancelled (in dollars per share) | $ 36.40 | |||||
President and chief operating officer | ||||||
Stock options awarded | ||||||
Nonqualified stock options granted (in shares) | 125,000 | |||||
Number of Stock Options | ||||||
Add: Options granted (in shares) | 125,000 | |||||
Stock options | ||||||
Stock Compensation Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 1.7 | |||||
Compensation costs related to equity awards and amounts recognized | ||||||
Unrecognized compensation cost at the beginning of the period | 1.1 | |||||
Grant date fair value current year grants | 1.4 | |||||
Compensation expense recognized | (1.7) | |||||
Unrecognized compensation cost at the end of the period | $ 0.8 | $ 1.1 | ||||
Expected amortization period | 1 year 9 months 18 days | |||||
Stock options awarded | ||||||
Number of stock options to be converted | 545,000 | |||||
Performance Shares and Restricted Stock | ||||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 4.8 | |||||
Compensation costs related to equity awards and amounts recognized | ||||||
Unrecognized compensation cost at the beginning of the period | 2.2 | |||||
Grant date fair value of current year grants | 4.3 | |||||
Change in estimate of shares to be forfeited | (0.1) | |||||
Compensation expense recognized | (4.8) | |||||
Unrecognized compensation cost at the end of the period | $ 1.6 | $ 2.2 | ||||
Expected amortization period | 1 year 8 months 12 days | |||||
Options | ||||||
Fair value assumptions | ||||||
Expected term in years | 5 years 9 months 18 days | 5 years 10 months 24 days | 5 years 3 months 18 days | |||
Risk free interest rate (as a percent) | 1.40% | 1.90% | 0.90% | |||
Volatility (as a percent) | 34.40% | 36.50% | 40.40% | |||
Dividend yield (as a percent) | 2.00% | 2.20% | 1.90% | |||
Nonqualified stock options | ||||||
Stock options awarded | ||||||
Nonqualified stock options granted (in shares) | 87,930 | 95,670 | 111,150 | |||
Per share weighted average exercise price (in dollars per share) | $ 59.72 | $ 43.17 | $ 31.23 | |||
Per share weighted average grant date fair value (in dollars per share) | $ 16.47 | $ 12.72 | $ 9.61 | |||
Number of Stock Options | ||||||
Add: Options granted (in shares) | 87,930 | 95,670 | 111,150 | |||
Weighted-Average Exercise Price | ||||||
Add: Options granted (in dollars per share) | $ 59.72 | $ 43.17 | $ 31.23 | |||
Nonqualified stock options | President and chief operating officer | ||||||
Stock Compensation Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Stock options awarded | ||||||
Per share weighted average exercise price (in dollars per share) | $ 24.09 | |||||
Per share weighted average grant date fair value (in dollars per share) | 9.55 | |||||
Fair value assumptions | ||||||
Percentage of awards earned | 50.00% | |||||
Weighted-Average Exercise Price | ||||||
Add: Options granted (in dollars per share) | $ 24.09 | |||||
Nonqualified stock options | President and chief operating officer | Vesting on December 31, 2016 | ||||||
Fair value assumptions | ||||||
Vesting rights (as a percent) | 100.00% | |||||
RSUs | Non-employee members of the board of directors | ||||||
Stock Compensation Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Omnibus Plan | ||||||
Stock Compensation Plans | ||||||
Shares of common stock reserved for future issuance | 3,500,000 | |||||
Par value of shares of common stock (in dollars per share) | $ 0.01 | |||||
2013 Omnibus Plan | ||||||
Stock Compensation Plans | ||||||
Shares of common stock reserved for future issuance | 1,240,000 | |||||
Additional common stock reserved for issuance subject to shareholders approval (in shares) | 1,577,000 | |||||
Common Stock Capital Shares Reserved for Future Issuance Reduction Due to Outstanding Non Option Equity Instruments | 10,000 |
Stock Compensation Plans (Det65
Stock Compensation Plans (Details 2) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 526,611 | ||
Weighted-Average Remaining Contractual Life | 6 years 2 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 31.93 | ||
Aggregate Intrinsic Value | $ 16.1 | ||
Options Exercisable | |||
Number of Options (in shares) | 232,594 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 23.76 | ||
Aggregate Intrinsic Value | $ 9 | ||
Closing market price for common stock (in dollars per share) | $ 62.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5.5 | $ 12.7 | $ 9.8 |
$7.41 $19.25 | 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) | $ 19.25 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 97,636 | ||
Weighted-Average Remaining Contractual Life | 3 years 10 months 24 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 13.06 | ||
Aggregate Intrinsic Value | $ 4.8 | ||
Options Exercisable | |||
Number of Options (in shares) | 97,636 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 13.06 | ||
Aggregate Intrinsic Value | $ 4.8 | ||
$21.13 $32.84 | Stock options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 21.13 | ||
Exercise price, high end of range (in dollars per share) | $ 32.84 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 250,022 | ||
Weighted-Average Remaining Contractual Life | 5 years 10 months 24 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 26.07 | ||
Aggregate Intrinsic Value | $ 9.1 | ||
Options Exercisable | |||
Number of Options (in shares) | 93,919 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 26.99 | ||
Aggregate Intrinsic Value | $ 3.3 | ||
$35.92 $42.82 | 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) | $ 42.82 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 89,723 | ||
Weighted-Average Remaining Contractual Life | 6 years 9 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 41.86 | ||
Aggregate Intrinsic Value | $ 1.9 | ||
Options Exercisable | |||
Number of Options (in shares) | 35,513 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 40.38 | ||
Aggregate Intrinsic Value | $ 0.8 | ||
$50.60 $59.72 | Stock options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 50.60 | ||
Exercise price, high end of range (in dollars per share) | $ 59.72 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 89,230 | ||
Weighted-Average Remaining Contractual Life | 9 years | ||
Weighted-Average Exercise Price (in dollars per share) | $ 59.07 | ||
Aggregate Intrinsic Value | $ 0.3 | ||
Options Exercisable | |||
Number of Options (in shares) | 5,526 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 50.87 | ||
Aggregate Intrinsic Value | $ 0.1 |
Stock Compensation Plans (Det66
Stock Compensation Plans (Details 3) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Stock Options | |
Outstanding at the beginning of the period (in shares) | 311,078 |
Add: Options granted (in shares) | 87,930 |
Less: Options vested (in shares) | 104,991 |
Outstanding at the end of the period (in shares) | 294,017 |
Weighted-Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 10.37 |
Add: Options granted (in dollars per share) | $ / shares | 16.47 |
Less: Options vested (in dollars per share) | $ / shares | 10.59 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 12.09 |
Stock options. | |
Additional disclosures | |
Shares outstanding that vested and would have been exercisable had the participants reached retirement age | 95,000 |
Accelerated compensation expense (in dollars) | $ | $ 0.9 |
Aggregate grant date fair value of options subject to accelerated vesting | $ | 1.3 |
Aggregate grant date fair value of options vested, including options subject to accelerated vesting | $ | $ 2.4 |
Stock Compensation Plans (Det67
Stock Compensation Plans (Details 4) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted-Average Grant Date Fair Value | |||
Excess tax benefits from stock-based compensation | $ 2.6 | $ 5.6 | $ 2.6 |
Performance units | |||
Stock Compensation Plans | |||
Granted (in shares) | 45,060 | 60,900 | 78,900 |
Percentage of target to be awarded, low end of range | 40.00% | ||
Percentage of target to be awarded, high end of range | 200.00% | ||
Common stock earned as a percentage of the performance unit target | 145.00% | ||
Market price at grant date of performance units | $ 59.72 | ||
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 58,270 | 77,000 | 97,900 |
Shares granted | 45,060 | 60,900 | 78,900 |
Shares vested | (810) | ||
Performance shares vested | (58,270) | (77,000) | (97,900) |
Shares expired or cancelled | (1,200) | (2,630) | (1,900) |
Outstanding at the end of the period (in shares) | 43,050 | 58,270 | 77,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 74.79 | $ 49.28 | $ 36.13 |
Shares granted (in dollars per share) | 78.79 | $ 74.79 | $ 49.28 |
Shares vested (in dollars per share) | $ 78.32 | ||
Performance Shares vested | (58,270) | (77,000) | (97,900) |
Performance shares vested (in dollars per share) | $ 74.79 | $ 35.85 | $ 36.13 |
Shares expired or cancelled (in dollars per share) | 78.32 | 74.79 | 49.28 |
Outstanding at the end of the period (in dollars per share) | $ 78.32 | $ 74.79 | $ 49.28 |
RSUs | |||
Stock Compensation Plans | |||
Granted (in shares) | 13,415 | 11,492 | 12,220 |
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 105,294 | 152,191 | 221,563 |
Shares granted | 13,415 | 11,492 | 12,220 |
Shares vested | (105,564) | (150,270) | (220,762) |
Performance shares vested | 107,219 | 94,710 | 145,871 |
Shares expired or cancelled | (1,526) | (2,829) | (6,701) |
Outstanding at the end of the period (in shares) | 118,838 | 105,294 | 152,191 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 31.15 | $ 24.36 | $ 16.81 |
Shares granted (in dollars per share) | 61.41 | 49.78 | 31.26 |
Shares vested (in dollars per share) | $ 32.12 | $ 22.60 | $ 17.23 |
Performance Shares vested | 107,219 | 94,710 | 145,871 |
Performance shares vested (in dollars per share) | $ 40.65 | $ 29.15 | $ 24.25 |
Shares expired or cancelled (in dollars per share) | 51.14 | 29.15 | 19.73 |
Outstanding at the end of the period (in dollars per share) | $ 43.29 | $ 31.15 | $ 24.36 |
Units issued in lieu of dividends (in shares) | 495 | 622 | 950 |
Aggregate pre-tax intrinsic value of outstanding RSUs | $ 7.4 | ||
Aggregate pre-tax intrinsic value of restricted stock and RSUs that vested during the period | $ 6.6 | $ 8.9 | $ 9.3 |
RSUs | Non-employee members of the board of directors | |||
Stock Compensation Plans | |||
Granted (in shares) | 9,030 | ||
Market price at grant date of performance units | $ 61.41 | ||
Vesting period | 1 year | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted | 9,030 | ||
RSUs | Employees | |||
Stock Compensation Plans | |||
Granted (in shares) | 3,145 | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted | 3,145 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) 10K $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Stockholders' equity | |||
Cost of shares acquired by the entity | $ | $ 2.5 | $ 3.4 | $ 4.6 |
Authorized shares of common stock | shares | 100,000,000 | 100,000,000 | |
Voting rights per common share | item | 1 | ||
Shares acquired by the entity | shares | 40,000 | 56,000 | 111,000 |
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 | shares | 20,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Minimum number of series of preferred stock to be issued | item | 1 | ||
Number of preferred shares issued | shares | 0 | ||
2013 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 | ||
2015 Stock Purchase Plan | |||
Stockholders' equity | |||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25 | ||
Common stock purchased under the stock purchase plan (in shares) | shares | 42,100 | ||
Cost of shares of common stock acquired | $ | $ 2.4 | ||
2014 Stock Purchase Plan | |||
Stockholders' equity | |||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25 | ||
Preceding period in which repurchases were allowed under the plan | 12 months | ||
Common stock purchased under the stock purchase plan (in shares) | shares | 60,900 | 22,600 | |
Cost of shares of common stock acquired | $ | $ 3.5 | $ 1.2 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments | |||
Minimum term of operating leases | 1 year | ||
Future minimum lease obligations | |||
2,016 | $ 2.6 | ||
2,017 | 2.2 | ||
2,018 | 1.6 | ||
2,019 | 1.2 | ||
2,020 | 1 | ||
Thereafter | 4.3 | ||
Future minimum lease obligations | 12.9 | ||
Rent expense under operating leases | 5.4 | $ 4.5 | $ 4.2 |
Purchase Commitments | |||
2,016 | 7.4 | ||
2,017 | 1.1 | ||
2,018 | $ 1.1 |
Contingencies and Legal Matte70
Contingencies and Legal Matters (Details) | 12 Months Ended |
Dec. 31, 2015employeeitem | |
Income Taxes | |
Number of regular full-time employees | employee | 2,340 |
Contract expiring in 12-months | |
Income Taxes | |
Number of regular full-time employees | employee | 235 |
United States | |
Income Taxes | |
Number of hourly employees | 1,140 |
Number of salaried employees | 540 |
Europe | |
Income Taxes | |
Number of hourly employees | 390 |
Number of salaried employees | 270 |
Germany | |
Income Taxes | |
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 and A71
Discontinued Operations and Assets Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2013 | Dec. 31, 2015 | |
Discontinued operations: | ||
Income (loss) from discontinued operations before income taxes | $ 4.2 | |
Provision for income taxes | $ 1.6 | |
Net curtailment gain related to divesture of pension plan | $ 15.8 | |
Write-off of deferred actuarial loss | $ 5.5 |
Discontinued Operations and A72
Discontinued Operations and Assets Held for Sale (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2015 | |
Discontinued Operations | |||||||||||||
Annual sales | $ 230.4 | $ 231.6 | $ 211.3 | $ 214.4 | $ 203.6 | $ 215.3 | $ 214.6 | $ 206.2 | $ 887.7 | $ 839.7 | $ 781.7 | ||
Selected financial information for discontinued operations | |||||||||||||
Income (loss) before income taxes | $ 4.2 | ||||||||||||
Income tax provision | $ 1.6 | ||||||||||||
Selected cash flow information of discontinued operations | |||||||||||||
Depreciation and amortization | 2.7 | 3.9 | 3.5 | ||||||||||
Assets Held For Sale | |||||||||||||
Total Current Assets | 246.6 | 319.1 | 246.6 | 319.1 | |||||||||
Assets Held for Sale | 46.3 | 46.3 | |||||||||||
Liabilities Related to Facilities Held for Sale | |||||||||||||
Liabilities related to facilities held for sale | 27.3 | 27.3 | |||||||||||
Lahnstein Mill | |||||||||||||
Discontinued Operations | |||||||||||||
Cash proceeds from sale of mill | $ 50 | 50 | $ 5.4 | ||||||||||
Pension and related liabilities of discontinued operations | 21 | ||||||||||||
Asset impairment | 12 | ||||||||||||
Transaction costs | 1.7 | ||||||||||||
Selected financial information for discontinued operations | |||||||||||||
Net sales | 43.2 | 63 | 62.8 | ||||||||||
Cost of products sold | 39.7 | 56.6 | 52.9 | ||||||||||
Gross Profit | 3.5 | 6.4 | 9.9 | ||||||||||
Selling, general and administrative expenses | 3.5 | 5.2 | 4.7 | ||||||||||
Restructuring costs | 0.1 | 0.6 | 0.2 | ||||||||||
Other income - net | (0.3) | (0.3) | (0.4) | ||||||||||
Income (Loss) From Discontinued Operations Before Income Taxes | 0.2 | 0.9 | 5.4 | ||||||||||
Loss on sale | (13.6) | ||||||||||||
Income (loss) before income taxes | (13.4) | 0.9 | 5.4 | ||||||||||
Income tax provision | (4) | 0.2 | 1.9 | ||||||||||
Income (loss) from discontinued operations | (9.4) | 0.7 | 3.5 | ||||||||||
Selected cash flow information of discontinued operations | |||||||||||||
Depreciation and amortization | 2.7 | 3.9 | 3.5 | ||||||||||
Capital expenditures | $ 0.6 | 0.7 | $ 0.8 | ||||||||||
Assets Held For Sale | |||||||||||||
Accounts receivable - net | 2.4 | 2.4 | |||||||||||
Inventories | 10.1 | 10.1 | |||||||||||
Prepaid and other current assets | 1.4 | 1.4 | |||||||||||
Total Current Assets | 13.9 | 13.9 | |||||||||||
Property, Plant and Equipment | 28.3 | 28.3 | |||||||||||
Goodwill | 1 | 1 | |||||||||||
Intangible Assets-net | 2.3 | 2.3 | |||||||||||
Other Assets | 0.8 | 0.8 | |||||||||||
Assets Held for Sale | 46.3 | 46.3 | |||||||||||
Liabilities Related to Facilities Held for Sale | |||||||||||||
Accounts payable | 2.4 | 2.4 | |||||||||||
Accrued expenses | 2 | 2 | |||||||||||
Deferred Income Taxes | 0.7 | 0.7 | |||||||||||
Noncurrent Employee Benefits | 22.2 | 22.2 | |||||||||||
Liabilities related to facilities held for sale | $ 27.3 | $ 27.3 |
Business Segment and Geograph73
Business Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business segment | |||||||||||
Net sales | $ 230.4 | $ 231.6 | $ 211.3 | $ 214.4 | $ 203.6 | $ 215.3 | $ 214.6 | $ 206.2 | $ 887.7 | $ 839.7 | $ 781.7 |
Operating income (loss) | 20.9 | $ 24.4 | $ 27.7 | $ 28.4 | 17 | $ 21.7 | $ 26 | $ 21.9 | 101.4 | 86.6 | 82.6 |
Restructuring costs | 6.5 | 2.3 | 0.4 | ||||||||
Pension plan settlement charge | 3.5 | 0.2 | |||||||||
Loss on early extinguishment of debt | 0.2 | 0.5 | |||||||||
Depreciation and amortization | 31.5 | 30 | 29.4 | ||||||||
Total continuing Operations | 28.8 | 26.1 | 25.9 | ||||||||
Discontinued operations | 2.7 | 3.9 | 3.5 | ||||||||
Capital expenditures | 48.1 | 27.9 | 28.7 | ||||||||
Total continuing Operations | 47.5 | 27.2 | 27.9 | ||||||||
Discontinued operations | 0.6 | 0.7 | 0.8 | ||||||||
Assets held for sale | 46.3 | 46.3 | |||||||||
TOTAL ASSETS | 751.4 | 724.5 | 751.4 | 724.5 | |||||||
United States | |||||||||||
Business segment | |||||||||||
Net sales | 687.3 | 612 | 564.4 | ||||||||
TOTAL ASSETS | 533.2 | 450.9 | 533.2 | 450.9 | |||||||
Long-lived assets | 342 | 202 | 342 | 202 | |||||||
Canada | |||||||||||
Business segment | |||||||||||
TOTAL ASSETS | 0.1 | 0.4 | 0.1 | 0.4 | |||||||
Europe | |||||||||||
Business segment | |||||||||||
Net sales | 200.4 | 227.7 | 217.3 | ||||||||
TOTAL ASSETS | 218.1 | 273.2 | 218.1 | 273.2 | |||||||
Long-lived assets | 162.8 | 203.4 | 162.8 | 203.4 | |||||||
Unallocated corporate costs | |||||||||||
Business segment | |||||||||||
Operating income (loss) | (18) | (20.2) | (15.8) | ||||||||
Restructuring cost | 0.7 | ||||||||||
Pension plan settlement charge | 0.8 | 3.5 | 0.2 | ||||||||
Loss on early extinguishment of debt | 0.2 | 0.5 | |||||||||
Technical Products | |||||||||||
Business segment | |||||||||||
Net sales | 429.2 | 403.6 | 353.3 | ||||||||
Operating income (loss) | 54.1 | 46 | 37.4 | ||||||||
Restructuring costs | 1.3 | 1 | |||||||||
Restructuring cost | 0.4 | 0.6 | |||||||||
Depreciation and amortization | 16.5 | 14.6 | 12.9 | ||||||||
Capital expenditures | 36 | 16.1 | $ 20.7 | ||||||||
TOTAL ASSETS | 483.4 | 371.9 | $ 483.4 | $ 371.9 | |||||||
Percentage of concentration risk | 30.00% | ||||||||||
Technical Products | Product Concentration Risk | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | ||||||||
Technical Products | Product Concentration Risk | Filtration Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 45.00% | 42.00% | 39.00% | ||||||||
Technical Products | Product Concentration Risk | Backings Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 30.00% | 29.00% | 32.00% | ||||||||
Technical Products | Product Concentration Risk | Specialty Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 25.00% | 29.00% | 29.00% | ||||||||
Fine Paper and Packaging | |||||||||||
Business segment | |||||||||||
Net sales | $ 442.7 | $ 436.1 | $ 428.4 | ||||||||
Operating income (loss) | 67.3 | 60.8 | 61 | ||||||||
Restructuring costs | 1.5 | 0.4 | |||||||||
Depreciation and amortization | 9.8 | 8.6 | 9.3 | ||||||||
Capital expenditures | 10.3 | 10 | $ 5 | ||||||||
TOTAL ASSETS | 261.9 | 228.8 | $ 261.9 | $ 228.8 | |||||||
Percentage of concentration risk | 40.00% | ||||||||||
Fine Paper and Packaging | Product Concentration Risk | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Graphic Imaging Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 80.00% | 91.00% | 92.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Packaging Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 15.00% | 9.00% | 8.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Filing/Office Product | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 5.00% | ||||||||||
Other | |||||||||||
Business segment | |||||||||||
Net sales | $ 15.8 | ||||||||||
Operating income (loss) | (2) | ||||||||||
Restructuring costs | 2.4 | ||||||||||
Depreciation and amortization | 0.6 | ||||||||||
Capital expenditures | 0.4 | ||||||||||
Corporate and Other | |||||||||||
Business segment | |||||||||||
Depreciation and amortization | 1.9 | $ 2.9 | $ 3.7 | ||||||||
Capital expenditures | 0.8 | 1.1 | $ 2.2 | ||||||||
TOTAL ASSETS | $ 6.1 | $ 77.5 | $ 6.1 | $ 77.5 |
Business Segment and Geograph74
Business Segment and Geographic Information (Details 2) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fine Paper and Packaging | ||
Concentrations | ||
Percentage of concentration risk | 40.00% | |
Sales | Customer concentration risk | ||
Concentrations | ||
Percentage of concentration risk | 10.00% | |
Sales | Customer concentration risk | Fine Paper and Packaging | ||
Concentrations | ||
Percentage of concentration risk | 20.00% |
Supplemental Data (Details)
Supplemental Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advertising and Research Development Expenses | |||
Advertising expense | $ 6.8 | $ 7 | $ 7.3 |
Research and development expense | 6.8 | 5.7 | $ 5.5 |
Accounts Receivable - net | |||
From customers | 99 | 86.2 | |
Less allowance for doubtful accounts and sales discounts | (1.7) | (1.5) | |
Total | 97.3 | 84.7 | |
Inventories by major class: | |||
Raw materials | 30.4 | 26.1 | |
Work in progress | 28.9 | 16.8 | |
Finished goods | 67.2 | 65.8 | |
Supplies and other | 4.1 | 6.5 | |
Inventories, gross | 130.6 | 115.2 | |
Adjust FIFO inventories to LIFO cost | (10) | (14) | |
Total | 120.6 | 101.2 | |
FIFO values of inventories valued on the LIFO method | 118.2 | 95.7 | |
Decrease in LIFO inventory | 0.1 | ||
Prepaid and Other Current Assets | |||
Prepaid and other current assets | 14.6 | 8.1 | |
Spare parts | 9.9 | 6.2 | |
Total | $ 24.5 | $ 14.3 |
Supplemental Data (Details 2)
Supplemental Data (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | $ 694.5 | $ 598.9 | |
Less accumulated depreciation | 371.5 | 357.2 | |
Property, plant and equipment-net | 323 | 241.7 | |
Depreciation expense | 24.8 | 23.2 | $ 23.2 |
Interest expense capitalized | 0.2 | 0.1 | $ 0.2 |
Accrued Expenses | |||
Accrued salaries and employee benefits | 25.2 | 23.2 | |
Amounts due to customers | 9.5 | 8.8 | |
Accrued interest | 1.2 | 1.2 | |
Accrued income taxes | 0.7 | 1 | |
Other | 14.6 | 9.6 | |
Total | 51.2 | 43.8 | |
Noncurrent Employee Benefits | |||
Pension benefits | 51.2 | 41.4 | |
Post-employment benefits other than pensions | 38.5 | 39.5 | |
Total (a) | 89.7 | 80.9 | |
Long-term disability benefits due to Terrace Bay retirees | 2.7 | 3.4 | |
Land and land improvements | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 19.6 | 15.7 | |
Buildings | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 121.4 | 107.5 | |
Machinery and equipment | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 512.2 | 461.4 | |
Construction in progress | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | $ 41.3 | $ 14.3 |
Supplemental Data (Details 3)
Supplemental Data (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during period for interest, net of interest expense capitalized | $ 10.6 | $ 10.3 | $ 9.9 |
Cash paid during the year for income taxes, net of refunds | 16.2 | 6.3 | 5.4 |
Non-cash investing activities: | |||
Liability for equipment acquired | 6.6 | 4.1 | 1.8 |
Net cash provided by (used in) changes in working capital | |||
Accounts receivable | (5.2) | 4.7 | (9.4) |
Inventories | 7.7 | (5.6) | 4.8 |
Income taxes receivable | 1 | (0.3) | (0.1) |
Prepaid and other current assets | (4.8) | 1.2 | (2.7) |
Accounts payable | (0.5) | 6.8 | 1.3 |
Accrued expenses | 3.2 | 2 | (0.5) |
Other | 0.4 | 0.2 | |
Increase (Decrease) in Operating Capital, Total | $ 1.8 | $ 9 | $ (6.6) |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unaudited Quarterly Data | |||||||||||
Net sales | $ 230.4 | $ 231.6 | $ 211.3 | $ 214.4 | $ 203.6 | $ 215.3 | $ 214.6 | $ 206.2 | $ 887.7 | $ 839.7 | $ 781.7 |
Gross Profit | 49.5 | 48.4 | 48 | 49.5 | 42.9 | 41.3 | 45.6 | 41 | 195.4 | 170.8 | 159.9 |
Operating Income | 20.9 | 24.4 | 27.7 | 28.4 | 17 | 21.7 | 26 | 21.9 | 101.4 | 86.6 | 82.6 |
Income from continuing operations | $ 14.5 | $ 13.5 | $ 16.4 | $ 16.1 | $ 27.2 | $ 13.4 | $ 15 | $ 12.4 | $ 60.5 | $ 68 | $ 48.5 |
Earnings (Loss) Per Common Share | |||||||||||
Basic (in dollar per share) | $ 0.86 | $ 0.79 | $ 0.97 | $ 0.95 | $ 1.61 | $ 0.79 | $ 0.89 | $ 0.75 | $ 3.58 | $ 4.05 | $ 2.97 |
Diluted (in dollars per share) | $ 0.85 | $ 0.78 | $ 0.96 | $ 0.94 | $ 1.59 | $ 0.78 | $ 0.88 | $ 0.74 | $ 3.53 | $ 3.99 | $ 2.91 |
Restructuring costs | $ 6.5 | $ 2.3 | $ 0.4 | ||||||||
Loss on early extinguishment of debt | 0.2 | 0.5 | |||||||||
Pension plan settlement charge | $ 3.5 | $ 0.2 |
SCHEDULE II SCHEDULE OF VALUA79
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 0.9 | $ 0.8 | $ 1.4 |
Charged to Costs and Expenses | (0.4) | 0.3 | 0.3 |
Charged to Other Accounts | 1 | ||
Write-offs and Reclassifications | (0.4) | (0.2) | (0.9) |
Balance at End of Period | 1.1 | 0.9 | 0.8 |
Allowance for sales discounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 0.6 | 0.6 | 0.5 |
Charged to Costs and Expenses | 0.1 | ||
Balance at End of Period | 0.6 | $ 0.6 | 0.6 |
Valuation allowance - deferred income taxes | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 0.4 | ||
Charged to Costs and Expenses | 3 | ||
Write-offs and Reclassifications | $ (0.4) | ||
Balance at End of Period | $ 3 |