Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Neenah Paper Inc | ' |
Entity Central Index Key | '0001296435 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,200,000 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Net sales | $214.10 | $206.30 | $639.60 | $616.20 |
Cost of products sold | 177 | 170.6 | 516.2 | 494.8 |
Gross profit | 37.1 | 35.7 | 123.4 | 121.4 |
Selling, general and administrative expenses | 19.8 | 18.5 | 60 | 57.1 |
Integration/restructuring costs (Note 3) | 0.4 | 0.3 | 0.6 | 4.7 |
SERP settlement charge (Note 7) | ' | ' | 0.2 | 3.5 |
Loss on early extinguishment of debt | ' | ' | 0.5 | 0.2 |
Other expense - net | 0.5 | 0.6 | 0.9 | 1.4 |
Operating income | 16.4 | 16.3 | 61.2 | 54.5 |
Interest expense - net | 2.6 | 3.3 | 8.3 | 10.4 |
Income from continuing operations before income taxes | 13.8 | 13 | 52.9 | 44.1 |
Provision for income taxes | 2.4 | 3.8 | 16.6 | 13.3 |
Income from continuing operations | 11.4 | 9.2 | 36.3 | 30.8 |
Income (loss) from discontinued operations, net of income taxes (Note 12) | ' | -0.1 | 2.6 | -0.1 |
Net income | $11.40 | $9.10 | $38.90 | $30.70 |
Basic | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.69 | $0.56 | $2.22 | $1.90 |
Discontinued operations (in dollars per share) | ' | ' | $0.16 | ' |
Total Basic (in dollars per share) | $0.69 | $0.56 | $2.38 | $1.90 |
Diluted | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.68 | $0.55 | $2.18 | $1.87 |
Discontinued operations (in dollars per share) | ' | ' | $0.16 | ' |
Total Diluted (in dollars per share) | $0.68 | $0.55 | $2.34 | $1.87 |
Weighted Average Common Shares Outstanding (in thousands) | ' | ' | ' | ' |
Basic (in shares) | 16,089 | 15,828 | 16,016 | 15,655 |
Diluted (in shares) | 16,469 | 16,145 | 16,338 | 15,982 |
Cash Dividends Declared Per Share of Common Stock (in dollars per share) | $0.20 | $0.12 | $0.50 | $0.36 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $11.40 | $9.10 | $38.90 | $30.70 |
Unrealized foreign currency translation gain (loss) | 7.2 | 6.2 | 4.8 | -0.8 |
Net gain from adjustments to pension and other postretirement benefit liabilities | ' | ' | 6.6 | 1.1 |
Reclassification of amortization of adjustments to pension and other postretirement benefit liabilities recognized in net periodic benefit cost (Note 4) | 1.6 | 1.2 | 4.9 | 3.7 |
SERP settlement charge | ' | ' | 0.2 | 3.5 |
Curtailment loss | ' | ' | ' | 0.3 |
Unrealized gain (loss) on "available-for-sale" securities | ' | ' | -0.1 | 0.1 |
Income from other comprehensive income items | 8.8 | 7.4 | 16.4 | 7.9 |
Provision for income taxes | 0.6 | 0.4 | 4.4 | 3.3 |
Other comprehensive income | 8.2 | 7 | 12 | 4.6 |
Comprehensive income | $19.60 | $16.10 | $50.90 | $35.30 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $48.20 | $7.80 |
Accounts receivable (less allowances of $1.5 million and $1.9 million) | 100.7 | 79.6 |
Inventories | 99.4 | 102.9 |
Income taxes receivable | 0.6 | 2.5 |
Deferred income taxes | 22.8 | 27.2 |
Prepaid and other current assets | 14.7 | 14.1 |
Total Current Assets | 286.4 | 234.1 |
Property, Plant and Equipment, at cost | 625.3 | 604.7 |
Less accumulated depreciation | 367.6 | 349.9 |
Property, plant and equipment-net | 257.7 | 254.8 |
Deferred Income Taxes | 21.4 | 35.3 |
Goodwill | 42.3 | 41.4 |
Intangible Assets-net | 38.7 | 34 |
Other Assets | 13.5 | 11.1 |
TOTAL ASSETS | 660 | 610.7 |
Current Liabilities | ' | ' |
Debt payable within one year | 1.7 | 4.7 |
Accounts payable | 41.7 | 35.1 |
Accrued expenses | 48.1 | 47.6 |
Total Current Liabilities | 91.5 | 87.4 |
Long-term Debt | 191.4 | 177.6 |
Deferred Income Taxes | 15.9 | 12.5 |
Noncurrent Employee Benefits | 113.6 | 131.1 |
Other Noncurrent Obligations | 1 | 4.3 |
TOTAL LIABILITIES | 413.4 | 412.9 |
Contingencies and Legal Matters (Note 11) | ' | ' |
Stockholders' Equity | ' | ' |
TOTAL STOCKHOLDERS' EQUITY | 246.6 | 197.8 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $660 | $610.70 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowances | $1.50 | $1.90 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net income | $38.90 | $30.70 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 21.8 | 21.8 |
Stock-based compensation | 4 | 3.9 |
Excess tax benefits from stock-based compensation (Note 8) | -0.4 | -5.1 |
Deferred income tax provision | 13.7 | 8.9 |
Inventory acquired in acquisitions (Note 3) | -1.8 | -6.6 |
SERP payment, net of settlement charge (Note 7) | -0.2 | -3.4 |
Loss on early extinguishment of debt | 0.5 | 0.2 |
Non-cash effects of changes in liabilities for uncertain income tax | -0.2 | ' |
Loss on asset dispositions | 0.4 | 0.2 |
Increase in working capital | -5.3 | -26.8 |
Pension and other postretirement benefits | -5.9 | -1.3 |
Other | -1 | -0.6 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 64.5 | 21.9 |
INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -20.4 | -15.8 |
Purchase of brands (Note 3) | -5.2 | -14.1 |
Proceeds from sale of property, plant and equipment | 0.6 | ' |
Decrease in restricted cash | ' | 7 |
Purchase of marketable securities | ' | -0.1 |
Other | 0.2 | 0.2 |
NET CASH USED IN INVESTING ACTIVITIES | -24.8 | -22.8 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of long-term debt | 218.7 | 45.2 |
Debt issuance costs | -3.4 | ' |
Repayments of long-term debt | -208.3 | -28.3 |
Short-term borrowings | 0.2 | 1.2 |
Repayments of short-term debt | -0.2 | -21.1 |
Shares purchased (Note 10) | -0.7 | -6.3 |
Proceeds from exercise of stock options | 2.4 | 4.9 |
Excess tax benefits from stock-based compensation (Note 8) | 0.4 | 5.1 |
Cash dividends paid | -8.2 | -5.8 |
Other | -0.5 | -0.2 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 0.4 | -5.3 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0.3 | ' |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 40.4 | -6.2 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 7.8 | 12.8 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 48.2 | 6.6 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid during period for interest, net of interest expense capitalized | 5.3 | 7 |
Cash paid during period for income taxes | 4.2 | 5.5 |
Non-cash investing activities: | ' | ' |
Liability for equipment acquired | $1.90 | $1.30 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Background and Basis of Presentation | ' | |||||||||||||
Background and Basis of Presentation | ' | |||||||||||||
Note 1. Background and Basis of Presentation | ||||||||||||||
Background | ||||||||||||||
Neenah Paper, Inc. (“Neenah” or the “Company”), is a Delaware corporation incorporated in April 2004. The Company has two primary operations: its technical products business and its fine paper business. | ||||||||||||||
The technical products business is an international producer of transportation and other filter media and durable, saturated and coated substrates for industrial products backings and a variety of other end markets. The fine paper business is a supplier of premium writing, text and cover papers, bright papers and specialty papers primarily in North America. The Company’s premium writing, text and cover papers, and specialty papers are used in commercial printing and imaging applications for corporate identity packages, invitations, personal stationery and high-end advertising, as well as premium labels and luxury packaging. | ||||||||||||||
On January 31, 2013, the Company purchased certain premium business paper brands from the Southworth Company (“Southworth”) for a payment of $7.0 million. See Note 3, “Acquisitions.” | ||||||||||||||
Basis of Consolidation and Presentation | ||||||||||||||
These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair presentation of the Company’s results of operations, financial position and cash flows. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the results of operations, financial position and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make extensive use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. | ||||||||||||||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. | ||||||||||||||
The condensed consolidated financial statements of Neenah and its subsidiaries included herein are unaudited, except for the December 31, 2012 condensed consolidated balance sheet, which was derived from audited financial statements. The condensed consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated from the condensed consolidated financial statements. | ||||||||||||||
Earnings per Share (“EPS”) | ||||||||||||||
Diluted EPS was calculated to give effect to all potentially dilutive non-participating common share equivalents using the “Treasury Stock” method. Outstanding stock options, stock appreciation rights (“SARs”) and target awards of Restricted Stock Units (“RSUs”) with performance conditions (“Performance Units”) represent the only potentially dilutive non-participating security effects on the Company’s weighted-average shares. For the three and nine months ended September 30, 2013 approximately 10,000 and 600,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company’s common stock for the period the options were outstanding. For the three and nine months ended September 30, 2012 approximately 980,000 and 1,030,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company’s common stock for the period the options were outstanding. | ||||||||||||||
The following table presents the computation of basic and diluted EPS (dollars in millions except per share amounts, shares in thousands): | ||||||||||||||
Earnings Per Basic Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.7 | ) | (1.0 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.6 | 29.8 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.2 | $ | 29.7 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Basic | ||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.56 | $ | 2.22 | $ | 1.9 | ||||||
Discontinued operations | — | — | 0.16 | — | ||||||||||
$ | 0.69 | $ | 0.56 | $ | 2.38 | $ | 1.9 | |||||||
Earnings Per Diluted Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.6 | ) | (0.9 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.7 | 29.9 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.3 | $ | 29.8 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Add: Assumed incremental shares under stock compensation plans | 380 | 317 | 322 | 327 | ||||||||||
Weighted-average diluted shares | 16,469 | 16,145 | 16,338 | 15,982 | ||||||||||
Diluted | ||||||||||||||
Continuing operations | $ | 0.68 | $ | 0.55 | $ | 2.18 | $ | 1.87 | ||||||
Discontinued operations | — | 0.16 | — | |||||||||||
$ | 0.68 | $ | 0.55 | $ | 2.34 | $ | 1.87 | |||||||
Fair Value of Financial Instruments | ||||||||||||||
The Company measures the fair value of financial instruments 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 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 fair value of short and long-term debt is estimated using current market prices for the Company’s publicly traded debt or rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company’s debt. | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||
Value | Value | |||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 166.5 | $ | — | $ | — | ||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.9 | 5.9 | 6.6 | 6.9 | ||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.2 | 10.7 | — | — | ||||||||||
Total Debt | $ | 193.1 | $ | 183.1 | $ | 182.3 | $ | 182.6 | ||||||
(a) Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. | ||||||||||||||
The Company’s investments in marketable securities are accounted for as “available-for-sale securities” in accordance with Accounting Standards Codification (“ASC”) Topic 320, Investments — Debt and Equity Securities (“ASC Topic 320”). As of September 30, 2013, the cost and fair value of the Company’s marketable securities was $2.6 million. Fair value for the Company’s marketable securities was estimated from Level 1 measurements. These marketable securities are classified as “Other Assets” on the condensed consolidated balance sheet and are restricted to the payment of benefits under the Company’s Supplemental Executive Retirement Plan (“SERP”). | ||||||||||||||
Accounting_Standard_Changes
Accounting Standard Changes | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Standard Changes | ' |
Accounting Standard Changes | ' |
Note 2. Accounting Standard Changes | |
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU No. 2013-11”) which amends ASC Topic 740, Income Taxes. In general, ASU No. 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The Company prospectively adopted ASU No. 2013-11 on September 30, 2013. The adoption of ASU No. 2013-11 resulted in a $3.7 million reduction in the Company’s deferred tax assets due to the reclassification of benefits for uncertain income tax positions. | |
As of September 30, 2013, no other amendments to the ASC had been issued that will have or are reasonably likely to have a material effect on the Company’s financial position, results of operations or cash flows. | |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Acquisitions | ' |
Acquisitions | ' |
Note 3. Acquisitions | |
On January 31, 2013, the Company purchased certain premium paper brands and other assets from Southworth. The Company made a payment of $7.0 million for (i) certain premium fine paper brands including Southworth®, which is the leading writing, text and cover brand sold in the retail channel, (ii) approximately one month of finished goods inventory valued at $1.8 million and (iii) certain converting equipment used for retail grades. In addition, the parties entered into a supply agreement under which Southworth will manufacture and supply certain products to the Company during a transition period. The acquisition was financed through the Company’s existing credit facility and cash on hand. The results of the Southworth brands are reported in the Fine Paper segment from the date of acquisition. | |
The Company accounted for the acquisition of the Southworth brands as an asset purchase in accordance with ASC Topic 805 “Business Combinations.” The acquisition price for the Southworth brands was allocated to the fair value of assets acquired as follows: (i) $5.0 million in non-amortizable intangible trade names and $0.6 million in amortizable customer based intangible assets, (ii) $1.8 million of finished goods inventory and (iii) $0.2 million of property, plant and equipment. The Company estimated the fair value of the assets acquired in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. The Company estimated the fair value of finished goods inventory using Level II inputs. The fair value of the non-amortizable intangible trade names, the amortizable customer based intangible assets and the property, plant and equipment was estimated using Level III inputs. The Company also recognized a liability of $0.6 million as a reserve against the resolution of certain contingencies in the purchase agreement. As of September 30,2013, substantially all such contingencies had been resolved. The Company expects to incur approximately $0.6 million in acquisition-related integration costs. For the three and nine months ended September 30, 2013, the Company incurred $0.2 million and $0.4 million, respectively, of such costs. | |
On January 31, 2012, the Company purchased certain premium paper brands and other assets from Wausau Paper Mills, LLC, a subsidiary of Wausau Paper Corp. (“Wausau”). The Company paid approximately $21 million for (i) the premium fine paper brands ASTROBRIGHTS®, ASTROPARCHE® and ROYAL, (ii) exclusive, royalty free and perpetual license rights for a portion of the EXACT® brand specialty business, including Index, Tag and Vellum Bristol, (iii) approximately one month of finished goods inventory and (iv) certain converting equipment used for retail grades. The results of the Index, Tag and Vellum Bristol brands are reported in the Other segment from the date of acquisition. The results of all other brands acquired from Wausau are reported in the Fine Paper segment from the date of acquisition. For the three and nine months ended September 30, 2012, the Company incurred $0.3 million and $4.7 million, respectively, in acquisition integration costs. | |
Supplemental_Balance_Sheet_Dat
Supplemental Balance Sheet Data | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Supplemental Balance Sheet Data | ' | |||||||||||||
Supplemental Balance Sheet Data | ' | |||||||||||||
Note 4. Supplemental Balance Sheet Data | ||||||||||||||
The following presents inventories by major class: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Raw materials | $ | 22.1 | $ | 20.8 | ||||||||||
Work in progress | 23.1 | 24.9 | ||||||||||||
Finished goods | 63.8 | 66.3 | ||||||||||||
Supplies and other | 4 | 3.7 | ||||||||||||
113 | 115.7 | |||||||||||||
Adjust FIFO inventories to LIFO cost | (13.6 | ) | (12.8 | ) | ||||||||||
Total | $ | 99.4 | $ | 102.9 | ||||||||||
The FIFO values of inventories valued on the LIFO method were $87.7 million and $91.8 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
The following table presents changes in accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2013: | ||||||||||||||
Unrealized foreign | Net gain (loss) from | Unrealized gain (loss) | Accumulated other | |||||||||||
currency translation | pension and other | on “available-for- | comprehensive income | |||||||||||
gain | postretirement | sale” securities | (loss) | |||||||||||
liabilities | ||||||||||||||
AOCI — December 31, 2012 | $ | 9.2 | $ | (59.1 | ) | $ | 0.1 | $ | (49.8 | ) | ||||
Other comprehensive income before reclassifications | 4.8 | 6.6 | (0.1 | ) | 11.3 | |||||||||
Amounts reclassified from AOCI | — | 5.1 | — | 5.1 | ||||||||||
Income (loss) from other comprehensive income items | 4.8 | 11.7 | (0.1 | ) | 16.4 | |||||||||
Provision for income taxes | — | 4.4 | — | 4.4 | ||||||||||
Other comprehensive income (loss) | 4.8 | 7.3 | (0.1 | ) | 12 | |||||||||
AOCI — September 30, 2013 | $ | 14 | $ | (51.8 | ) | $ | — | $ | (37.8 | ) | ||||
For the three and nine months ended September 30, 2013, the Company reclassified $1.6 million and $4.9 million, respectively, from accumulated other comprehensive income to cost of products sold and selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. In addition, for the nine months ended September 30, 2013, $0.2 million was reclassified from accumulated other comprehensive income to SERP settlement charge on the Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2013, the Company recognized a tax benefit of $0.7 million and $2.0 million, respectively, related to such reclassifications classified as Provision for income taxes on the Condensed Consolidated Statements of Operations. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ' | |||||||||||
Note 5. Income Taxes | ||||||||||||
The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. 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: | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 4.8 | 35 | % | $ | 4.5 | ||||
U.S. state income taxes, net of federal income tax benefit | 3.6 | % | 0.5 | 2.3 | % | 0.3 | ||||||
Foreign tax rate differences (a) | (1.5 | )% | (0.2 | ) | (1.7 | )% | (0.2 | ) | ||||
Foreign financing structure (b) | (1.5 | )% | (0.2 | ) | (4.7 | )% | (0.6 | ) | ||||
Tax on foreign dividends | 4.3 | % | 0.6 | — | % | — | ||||||
Research and development tax credits | (13.8 | )% | (1.9 | ) | — | % | — | |||||
Uncertain tax positions | 0.7 | % | 0.1 | — | % | — | ||||||
Other differences — net | (9.4 | )% | (1.3 | ) | (1.7 | )% | (0.2 | ) | ||||
Effective income tax rate | 17.4 | % | $ | 2.4 | 29.2 | % | $ | 3.8 | ||||
Nine Months Ended September 30, | ||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 18.5 | 35 | % | $ | 15.4 | ||||
U.S. state income taxes, net of federal income tax benefit | 2.3 | % | 1.2 | 1.8 | % | 0.8 | ||||||
Foreign tax rate differences (a) | (2.5 | )% | (1.3 | ) | (3.2 | )% | (1.4 | ) | ||||
Foreign financing structure (b) | (3.6 | )% | (1.9 | ) | (4.1 | )% | (1.8 | ) | ||||
Tax on foreign dividends | 3 | % | 1.6 | — | % | — | ||||||
Research and development tax credits | (3.6 | )% | (1.9 | ) | — | % | — | |||||
Uncertain tax positions | 1.3 | % | 0.7 | (0.2 | )% | (0.1 | ) | |||||
Other differences — net | (0.5 | )% | (0.3 | ) | 0.9 | % | 0.4 | |||||
Effective income tax rate | 31.4 | % | $ | 16.6 | 30.2 | % | $ | 13.3 | ||||
(a) Represents the impact on the Company’s effective tax rate due to changes in the mix of earnings among taxing jurisdictions with differing statutory rates. | ||||||||||||
(b) Represents the impact on the Company’s effective tax rate of the Company’s financing strategies. | ||||||||||||
The Company’s effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in taxing jurisdictions with differing statutory rates, changes in corporate structure as a result of business acquisitions and dispositions, changes in the timing and amounts of dividends repatriated from foreign subsidiaries, 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. | ||||||||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
Note 6. Debt | ||||||||
Long-term debt consisted of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
2021 Senior Notes (5.25% fixed rate) due May 2021 | $ | 175 | $ | — | ||||
2014 Senior Notes (7.375% fixed rate) retired June 2013 | — | 90 | ||||||
Revolving bank credit facility (variable rates) due November 2017 | — | 55.7 | ||||||
Term Loan (variable rates) repaid June 2013 | — | 30 | ||||||
Neenah Germany project financing (3.8% fixed rate) due in 16 equal semi-annual installments ending December 2016 | 5.9 | 6.6 | ||||||
Second German Loan Agreement (2.5% fixed rate) due in 32 equal quarterly installments ending September 2022 | 12.2 | — | ||||||
Total debt | 193.1 | 182.3 | ||||||
Less: Debt payable within one year | 1.7 | 4.7 | ||||||
Long-term debt | $ | 191.4 | $ | 177.6 | ||||
Unsecured Senior Notes | ||||||||
2021 Senior Notes | ||||||||
In May 2013, the Company completed an underwritten offering of eight-year senior unsecured notes (the “2021 Senior Notes”) at a face amount of $175 million. The 2021 Senior Notes bear interest at a rate of 5.25%, payable in arrears on May 15 and November 15 of each year, commencing on November 15, 2013, and mature on May 15, 2021. Proceeds from this offering were used to redeem $70 million in aggregate principal amount of 2014 Senior Notes (as defined below), to repay approximately $56 million in outstanding Revolver (as defined below) borrowings and for general corporate purposes. The 2021 Senior Notes are fully and unconditionally guaranteed by substantially all of the Company’s domestic subsidiaries (the “Guarantors”). The 2021 Senior Notes were sold in a private placement transaction, have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration requirements. | ||||||||
The 2021 Senior Notes are senior unsecured obligations of the Company and will rank equally in right of payment with all its existing and future senior unsecured indebtedness. The guarantees of the 2021 Senior Notes are senior unsecured obligations of the Guarantors and will rank equally in right of payment with all existing and future senior unsecured indebtedness of the Guarantors. The 2021 Senior Notes and the guarantees of the 2021 Senior Notes will be effectively subordinated to the Company’s and the Guarantors’ existing and future secured indebtedness (to the extent of the value of the collateral) and will be structurally subordinated to all indebtedness and other obligations of the Company’s subsidiaries that do not guarantee the 2021 Senior Notes, including the trade creditors of such non-guarantor subsidiaries. | ||||||||
The 2021 Senior Notes contain terms, covenants and events of default with which the Company must comply, which the Company believes are ordinary and standard for notes of this nature. Among other things, the 2021 Senior Notes contain covenants restricting our ability to incur certain additional debt, make specified restricted payments, pay dividends, authorize or issue capital stock, enter into transactions with our affiliates, consolidate or merge with or acquire another business, sell certain of our assets or liquidate, dissolve or wind-up the Company. As of September 30, 2013, the Company was in compliance with all terms of the indenture for the 2021 Senior Notes. | ||||||||
2014 Senior Notes | ||||||||
As of September 30, 2013, the Company had no ten-year 7.375% senior unsecured notes, originally issued on November 30, 2004 (the “2014 Senior Notes”) outstanding. In May 2013, the Company redeemed $20 million of the 2014 Senior Notes at par value. The redemption was financed with Revolver borrowings and resulted in a pre-tax loss of $0.1 million due to the write-off of related unamortized debt issuance costs. | ||||||||
In June 2013, the Company used a portion of the proceeds from the issuance of the 2021 Senior Notes to retire the remaining $70 million in outstanding 2014 Senior Notes at par value (the “Retirement of the 2014 Senior Notes”). The Retirement of the 2014 Senior Notes resulted in a pre-tax loss of $0.3 million due to the write-off of related unamortized debt issuance costs. | ||||||||
The Retirement of the 2014 Senior Notes eliminated the requirement for the Company to present condensed consolidating financial statements in lieu of consolidated financial statements for the guaranteeing subsidiaries. | ||||||||
Secured Bank Credit Facility | ||||||||
In October 2012, the Company amended and extended its secured bank credit facility by entering into a Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement provides for, among other things; a secured revolving credit commitment of $105 million (the “Revolver”) and a secured $30 million term loan commitment (the “Term Loan”). In June 2013, the Company repaid all outstanding Term Loan borrowings ($29.3 million) and recognized a pre-tax loss of $0.1 million for the early extinguishment of debt due to the write-off of unamortized debt issuance costs. As of September 30, 2013, there were no Term Loan borrowings outstanding and such amounts may not be redrawn. | ||||||||
In June 2013, the Company amended the Second Amended and Restated Credit Agreement (as amended, the “Bank Credit Agreement”) to, among other things; (i) modify the Bank Credit Agreement’s accordion feature to permit the Company, subject to certain conditions, to increase the aggregate revolving credit facility commitments by up to $30 million, to a maximum amount of $180 million (ii) increase the Company’s allowable dividends paid to shareholders in any period of 12 consecutive months to $25 million, (iii) allow the Company to repurchase up to $30 million of its own common stock on or before December 31, 2014, with no more than $15 million of that amount to be repurchased on or before December 31, 2013, and (iv) make certain definitional and administrative changes. | ||||||||
As of September 30, 2013, the Company had a $105 million Revolver pursuant to the Bank Credit Agreement of which no amounts were outstanding. As of September 30, 2013, the Company had $104.3 million of available credit under the Revolver. As of December 31, 2012, the weighted-average interest rate on outstanding Revolver and Term Loan borrowings was 2.4 percent per annum and 4.0 percent per annum, respectively. | ||||||||
Terms, Covenants and Events of Default. If borrowing availability under the Revolver is less than $20 million, the Company is required to achieve a fixed charge coverage ratio (as defined in the Bank Credit Agreement) of not less than 1.1 to 1.0 for the preceding four-quarter period, tested as of the end of each quarter. As of September 30, 2013, the Company was in compliance with all terms of the Bank Credit Agreement. | ||||||||
The Company’s ability to pay cash dividends on its common stock is limited under the terms of both the Bank Credit Agreement and the 2021 Senior Notes. As of September 30, 2013, the Company’s ability to pay cash dividends on its common stock was limited to a total of $25 million in a 12-month period. | ||||||||
Other Debt | ||||||||
German Project Financing | ||||||||
German Loan Agreement. In December 2006, Neenah Germany entered into a 10-year agreement with HypoVereinsbank and IKB Deutsche Industriebank AG (“IKB”) to provide €10.0 million of project financing (the “German Loan Agreement”). As of September 30, 2013, €4.4 million ($5.9 million, based on exchange rates at September 30, 2013) was outstanding under the German Loan Agreement. | ||||||||
Second German Loan Agreement. In January 2013, Neenah Germany entered into a project financing agreement for the construction of a melt blown machine (the “Second German Loan Agreement”). The agreement provides for €9.0 million of construction financing which is secured by the melt blown machine. The loan matures in September 2022 and principal is repaid in equal quarterly installments beginning in December 2014. The interest rate on amounts outstanding is 2.45% based on actual days elapsed in a 360-day year and is payable quarterly. At September 30, 2013, €9.0 million ($12.2 million, based on exchange rates at September 30, 2013) was outstanding under the Second German Loan Agreement. | ||||||||
German Lines of Credit | ||||||||
HypoVereinsbank Line of Credit. Neenah Germany has a revolving line of credit with HypoVereinsbank (the “HypoVereinsbank Line of Credit”) that provides for secured borrowings of up to €15 million for general corporate purposes. As of September 30, 2013, no borrowings were outstanding and €15.0 million ($20.3 million, based on exchange rates at September 30, 2013) of credit was available under the HypoVereinsbank Line of Credit. | ||||||||
Commerzbank Line of Credit. Neenah Germany has a revolving line of credit with Commerzbank AG (“Commerzbank”) that provides for borrowings of up to €5 million for general corporate purposes (the “Commerzbank Line of Credit. As of September 30, 2013, no borrowings were outstanding and €5.0 million ($6.7 million, based on exchange rates at September 30, 2013) of credit was available under the Commerzbank Line of Credit. | ||||||||
Restrictions under German Credit Facilities | ||||||||
The terms of the HypoVereinsbank and Commerzbank lines of credit require Neenah Germany to maintain a ratio of stockholders’ equity to total assets equal to or greater than 45 percent. The Company was in compliance with all provisions of the HypoVereinsbank and Commerzbank lines of credit as of September 30, 2013. | ||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
Note 7. Pension and Other Postretirement Benefits | ||||||||||||||
Pension Plans | ||||||||||||||
Substantially all active employees of the Company’s U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. Neenah Germany has defined benefit plans designed to provide a monthly pension upon retirement for substantially all its employees in Germany. In addition, the Company maintains a SERP which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans. | ||||||||||||||
In February 2013, the Company reached agreement with the United Steelworkers Union (the “USW”) on new collective bargaining agreements for all of our U.S. paper mills. The new agreements resulted in a net reduction in the Company’s liability for post-retirement benefits. In accordance with ASC Topic 715, Compensation — Retirement Benefits (“ASC Topic 715”), the Company measured the assets and liabilities of its U.S. post-retirement benefit plans as of February 28, 2013 and recorded a curtailment gain in OCI of $6.6 million less a provision for income taxes of $2.5 million. | ||||||||||||||
For the nine months ended September 30, 2013, benefit payments under the SERP exceeded the sum of expected service cost and interest costs for the plan for calendar 2013. In accordance with ASC Topic 715, the Company measured the liabilities of the SERP as of January 1, 2013 and recognized a settlement charge of $0.2 million. For the nine months ended September 30, 2012, benefit payments under the SERP exceeded the sum of expected service cost and interest costs for the plan for calendar 2012. As a result, the Company measured the liabilities of the SERP as of January 1, 2012 and recognized a settlement charge of $3.5 million. | ||||||||||||||
The following table presents the components of net periodic benefit cost: | ||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Other than Pensions | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 1.4 | $ | 1.1 | $ | 0.4 | $ | 0.5 | ||||||
Interest cost | 3.4 | 3.5 | 0.5 | 0.5 | ||||||||||
Expected return on plan assets (a) | (4.3 | ) | (3.8 | ) | — | — | ||||||||
Recognized net actuarial loss | 1.4 | 1 | 0.1 | — | ||||||||||
Amortization of prior service cost (benefit) | 0.1 | 0.1 | (0.1 | ) | — | |||||||||
Net periodic benefit cost | $ | 2 | $ | 1.9 | $ | 0.9 | $ | 1 | ||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Other than Pensions | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 4 | $ | 3.4 | $ | 1.3 | $ | 1.4 | ||||||
Interest cost | 10.2 | 10.6 | 1.4 | 1.5 | ||||||||||
Expected return on plan assets (a) | (12.8 | ) | (11.4 | ) | — | — | ||||||||
Recognized net actuarial loss | 4.3 | 3.1 | 0.4 | 0.2 | ||||||||||
Amortization of prior service cost (benefit) | 0.2 | 0.2 | (0.2 | ) | 0.1 | |||||||||
SERP settlement charge | 0.2 | 3.5 | — | — | ||||||||||
Curtailment loss | — | — | — | 0.3 | ||||||||||
Net periodic benefit cost | $ | 6.1 | $ | 9.4 | $ | 2.9 | $ | 3.5 | ||||||
(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. | ||||||||||||||
The Company expects to make aggregate contributions to qualified defined benefit pension trusts and pay pension benefits for unfunded pension plans of approximately $18 million (based on exchange rates at September 30, 2013) in calendar 2013. For the nine months ended September 30, 2013, the Company made $13.0 million of such payments. | ||||||||||||||
Stock_Compensation_Plan
Stock Compensation Plan | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Compensation Plan | ' | |||||||||||||
Stock Compensation Plan | ' | |||||||||||||
Note 8. Stock Compensation Plan | ||||||||||||||
At the 2013 Annual Meeting of Stockholders, the Company’s stockholders approved an amendment and restatement of the Neenah Paper, Inc. 2004 Omnibus Stock and Incentive Compensation Plan (as amended and restated the “Omnibus Plan”). The amendment and restatement authorized the Company to reserve an additional 1,577,000 shares of $0.01 par value common stock (“Common Stock”) for future issuance. As of September 30, 2013, the Company had 1,870,000 shares of Common Stock reserved for future issuance under the Omnibus Plan. 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 | ||||||||||||||
Substantially all stock-based compensation expense is recorded in selling, general and administrative expenses on the condensed consolidated statements of operations. The following table summarizes stock-based compensation expense and related income tax benefits. | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Stock-based compensation expense | $ | 0.8 | $ | 0.9 | $ | 4 | $ | 3.9 | ||||||
Income tax benefit | (0.3 | ) | (0.3 | ) | (1.5 | ) | (1.5 | ) | ||||||
Stock-based compensation, net of Income tax benefit | $ | 0.5 | $ | 0.6 | $ | 2.5 | $ | 2.4 | ||||||
The following table summarizes total compensation costs related to the Company’s equity awards and amounts recognized in the nine months ended September 30, 2013. | ||||||||||||||
Stock Options and | Performance Units | |||||||||||||
SARs | and RSUs | |||||||||||||
Unrecognized compensation cost — December 31, 2012 | $ | 1.6 | $ | 2.5 | ||||||||||
Grant date fair value of current year grants | 1 | 3.5 | ||||||||||||
Compensation expense recognized | (1.1 | ) | (2.9 | ) | ||||||||||
Unrecognized compensation cost — September 30, 2013 | $ | 1.5 | $ | 3.1 | ||||||||||
Expected amortization period (in years) | 2.6 | 1.7 | ||||||||||||
Stock Options and SARs | ||||||||||||||
The following tables present information regarding stock options awarded during the nine months ended September 30, 2013: | ||||||||||||||
Nonqualified stock options granted (a) | 111,200 | |||||||||||||
Per share weighted average exercise price | $ | 31.23 | ||||||||||||
Per share weighted average grant date fair value | $ | 9.61 | ||||||||||||
(a) No stock options were awarded during the three months ended September 30, 2013. | ||||||||||||||
The weighted-average grant date fair value for stock options granted during the nine months ended September 30, 2013 was estimated using the Black-Scholes option valuation model with the following assumptions: | ||||||||||||||
Expected term in years | 5.3 | |||||||||||||
Risk free interest rate | 0.9 | % | ||||||||||||
Volatility | 40.4 | % | ||||||||||||
Dividend yield | 1.9 | % | ||||||||||||
Volatility and the expected term were estimated by reference to the historical stock price performance of the Company and historical data for the Company’s stock option awards, respectively. The risk-free interest rate was based on the yield on U.S. Treasury bonds with a remaining term approximately equivalent to the expected term of the stock option awards. Forfeitures were estimated at the date of grant. | ||||||||||||||
The following table presents information regarding vested stock options and SARs. | ||||||||||||||
Nine Months Ended | ||||||||||||||
September 30, 2013 | ||||||||||||||
Nonqualified stock options and SARs vested | 123,400 | |||||||||||||
Aggregate grant date fair value of stock options and SARs vested | $ | 0.9 | ||||||||||||
For the three and nine months ended September 30, 2013, the aggregate pre-tax intrinsic value of stock options and SARs exercised was $4.4 million and $5.8 million, respectively. For the three and nine months ended September 30, 2012, the aggregate pre-tax intrinsic value of stock options and SARs exercised was $1.0 million and $4.5 million, respectively. | ||||||||||||||
As of September 30, 2013, certain participants met age and service requirements that allowed their stock options and SARs to qualify for accelerated vesting upon retirement. As of September 30, 2013, such participants held options to purchase 42,000 shares of common stock that would have been exercisable if they had retired as of such date. The aggregate grant date fair value of options subject to accelerated vesting was $0.4 million. Stock options subject to accelerated vesting for expense recognition become exercisable according to the contract terms of the stock-based awards. | ||||||||||||||
The following table presents information regarding outstanding stock options and SARs: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Stock options and SARs vested or expected to vest | 1,143,000 | 2,035,000 | ||||||||||||
Aggregate intrinsic value | $ | 17.8 | $ | 8.1 | ||||||||||
Per share weighted average grant date fair value | $ | 8.69 | $ | 9.03 | ||||||||||
Exercisable stock options and SARs | 818,000 | 1,660,000 | ||||||||||||
Aggregate intrinsic value | $ | 13.4 | $ | 4.7 | ||||||||||
Unvested stock options and SARs | 329,000 | 395,000 | ||||||||||||
Per share weighted average grant date fair value | $ | 9.11 | $ | 5.25 | ||||||||||
Performance Units | ||||||||||||||
For the nine months ended September 30, 2013, the Company granted target awards of 78,900 Performance Units. The measurement period for the Performance Units is January 1, 2013 through December 31, 2013. The Performance Units vest on December 31, 2015. Common Stock equal to not less than 40 percent and not more 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 September 30, 2013, the Company expects that Common Stock equal to approximately 125 percent of the Performance Unit targets will be earned. The market price on the date of grant for the Performance Units was $31.23 per share. Based on the expected achievement of performance targets, the Company is recognizing stock-based compensation expense pro-rata over the vesting term of the Performance Units. | ||||||||||||||
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. Excess tax benefits are a non-cash item and therefore a reduction in cash flow from operations is recorded to offset the amount of excess tax benefits reported in cash flows from financing activities. For the nine months ended September 30, 2013 and 2012, the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $0.3 million and $5.0 million, respectively. | ||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Note 9. Goodwill and Other Intangible Assets | ||||||||||||||
The following table presents changes in the carrying amount of goodwill for the nine months ended September 30, 2013. All such goodwill is reported in the Technical Products segment. | ||||||||||||||
Gross | Cumulative | Net | ||||||||||||
Amount | Impairment Loss | |||||||||||||
Balance at December 31, 2012 | $ | 96.1 | $ | (54.7 | ) | $ | 41.4 | |||||||
Foreign currency translation | 2.2 | (1.3 | ) | 0.9 | ||||||||||
Balance at September 30, 2013 | $ | 98.3 | $ | (56.0 | ) | $ | 42.3 | |||||||
The following table presents the gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization. | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Amortizable intangible assets | ||||||||||||||
Customer based intangibles | $ | 17.2 | $ | (7.2 | ) | $ | 16.3 | $ | (6.2 | ) | ||||
Trade names and trademarks | 5.7 | (4.0 | ) | 5.5 | (3.4 | ) | ||||||||
Acquired technology | 1.1 | (0.7 | ) | 1.1 | (0.7 | ) | ||||||||
Total amortizable intangible assets | 24 | (11.9 | ) | 22.9 | (10.3 | ) | ||||||||
Non-amortizable trade names | 26.6 | — | 21.4 | — | ||||||||||
Total | $ | 50.6 | $ | (11.9 | ) | $ | 44.3 | $ | (10.3 | ) | ||||
In conjunction with the acquisition of the Southworth brands, the Company recorded $5.0 million in non-amortizable intangible trade names and $0.6 million in amortizable customer based intangible assets. All other changes in the carrying value of the Company’s intangible assets not specifically identified are due to foreign currency translation effects. The weighted average useful lives assigned to amortizable intangible trade names and trademarks and customer based intangible assets was 8 years and 15 years, respectively. | ||||||||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 10. 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. As of September 30, 2013 and December 31, 2012, the Company had 16,160,000 shares and 15,915,000 shares of Common Stock outstanding, respectively. | |
In May 2013, the Company’s Board of Directors authorized a program that would allow the Company to repurchase up to $10 million of its outstanding Common Stock over the next 12 months (the “2013 Stock Purchase Plan”). The Company had a similarly-sized program in place during the preceding 12 months that expired in May 2013 (the “2012 Stock Purchase Plan”). For the year ended December 31, 2012, the Company made aggregate purchases of $4.1 million of Common Stock under the 2012 Stock Purchase Plan of which $1.2 million occurred in the nine months ended September 30, 2012. For the nine months ended September 30, 2013, there were no purchases under either stock purchase plan. | |
Purchases under the 2013 Stock Purchase Plan will be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The program does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time. The 2013 Stock Purchase Plan is expected to be funded using cash on hand or borrowings under the Company’s existing revolving credit facility. | |
For the nine months ended September 30, 2013 and 2012, the Company acquired 21,000 shares and 214,000 shares of Common Stock, respectively, at a cost of $0.7 million and $5.1 million, respectively, for shares surrendered by employees to pay taxes due on vested restricted stock awards and SARs exercised. | |
Contingencies_and_Legal_Matter
Contingencies and Legal Matters | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies and Legal Matters | ' |
Contingencies and Legal Matters | ' |
Note 11. Contingencies and Legal Matters | |
Litigation | |
The Company is involved in certain legal actions and claims arising in the ordinary course of business. While the outcome of these legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claim which is pending or threatened, either individually or on a combined basis, will not have a material effect on the consolidated financial condition, results of operations or cash flows 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 tax authority. | |
German Tax Audit — Tax Years 2006 to 2007 | |
In November 2010, the Company received a tax examination report from the German tax authorities challenging the validity of certain interest expense deductions claimed on the Company’s tax returns for the years 2006 and 2007. In August 2011, the Company received tax assessments totaling €3.7 million from the German tax authorities and submitted an appeal challenging these assessments. The Company paid a total of €1.9 million against the August 2011 tax assessments and reflected these payments as assets (in “Income taxes receivable”) in recognition that such amounts would be treated as prepayments against any assessments ultimately owed. During the first quarter of 2013, the Company reached a settlement with the German tax authorities for all issues related to the tax examination. The settlement resulted in a revised tax assessment of €0.5 million, which was approximately equal to the Company’s liability for uncertain tax positions related to this issue at December 31, 2012. For the nine months ended September 30, 2013, the Company received refunds of the above tax prepayments of €1.4 million. | |
As of September 30, 2013, the Company reflected a liability for unrecognized tax benefits based on an assessment of the likelihood of alternative outcomes related to certain ongoing interest expense deductions through September 30, 2013. Management believes it is remote that the Company’s liability for unrecognized tax benefits related to these matters will significantly increase within the next 12 months. | |
Employees and Labor Relations | |
In February 2013, the Company reached agreement with the USW on new collective bargaining agreements for all of our U.S. paper mills. The new agreements between the Whiting, Neenah, Munising and Appleton paper mills and the USW expire on January 31, 2018, June 30, 2018, July 14, 2018 and May 31, 2019, respectively. | |
Approximately 50 percent of salaried employees and 80 percent of hourly employees of Neenah Germany are eligible to be represented by the Mining, Chemicals and Energy Trade Union, Industriegewerkschaft Bergbau, Chemie and Energie (the “IG BCE”). In June 2013, the IG BCE and a national trade association representing all employers in the industry signed a collective bargaining agreement covering union employees of Neenah Germany that expires in June 2015. The Company believes it has satisfactory relations with its employees covered by collective bargaining agreements. | |
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations | ' |
Discontinued Operations | ' |
Note 12. Discontinued Operations | |
In March 2010, the Company concluded its operating activities in Canada; however, the Company has certain continuing post-employment benefit obligations related to its former Canadian operations. In the first quarter of 2013, the Company received a refund of excess pension contributions, less withholding taxes, from the terminated Terrace Bay pension plan. As a result, the Company recorded income from discontinued operations of $2.6 million, net of income taxes of $1.6 million, on the Condensed Consolidated Statement of Operations. | |
Business_Segment_Information
Business Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Business Segment Information | ' | |||||||||||||
Business Segment Information | ' | |||||||||||||
Note 13. Business Segment Information | ||||||||||||||
The Company reports its operations in two primary segments: Technical Products and Fine Paper. The technical products business is an international producer of transportation and other filter media and durable, saturated and coated substrates for industrial products backings and a variety of other end markets. The fine paper business is a supplier of premium writing, text and cover papers, bright papers, and luxury packaging and premium label specialty papers in North America. Each segment employs different technologies and marketing strategies. In addition, the Company reports in the Other segment results for the non-premium Index, Tag and Vellum Bristol brands acquired as part of the purchase of the Wausau brands. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. | ||||||||||||||
The following table summarizes the net sales, operating income and total assets for each of the Company’s business segments. | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net sales | ||||||||||||||
Technical Products | $ | 104.4 | $ | 98.7 | $ | 317.2 | $ | 311.6 | ||||||
Fine Paper | 102.6 | 99.1 | 302 | 281.8 | ||||||||||
Other | 7.1 | 8.5 | 20.4 | 22.8 | ||||||||||
Consolidated | $ | 214.1 | $ | 206.3 | $ | 639.6 | $ | 616.2 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Operating income (loss) | ||||||||||||||
Technical Products | $ | 6.7 | $ | 6.4 | $ | 28.3 | $ | 31.2 | ||||||
Fine Paper | 13.3 | 12.8 | 45.1 | 36.9 | ||||||||||
Other | 0.3 | 0.5 | — | 1.8 | ||||||||||
Unallocated corporate costs | (3.9 | ) | (3.4 | ) | (12.2 | ) | (15.4 | ) | ||||||
Consolidated | $ | 16.4 | $ | 16.3 | $ | 61.2 | $ | 54.5 | ||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Total Assets | ||||||||||||||
Technical Products | $ | 365.9 | $ | 348.5 | ||||||||||
Fine Paper | 217.4 | 214 | ||||||||||||
Corporate and Other | 76.7 | 48.2 | ||||||||||||
Total | $ | 660 | $ | 610.7 | ||||||||||
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Policies) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Background and Basis of Presentation | ' | |||||||||||||
Basis of Consolidation and Presentation | ' | |||||||||||||
Basis of Consolidation and Presentation | ||||||||||||||
These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair presentation of the Company’s results of operations, financial position and cash flows. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the results of operations, financial position and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make extensive use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. | ||||||||||||||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. | ||||||||||||||
The condensed consolidated financial statements of Neenah and its subsidiaries included herein are unaudited, except for the December 31, 2012 condensed consolidated balance sheet, which was derived from audited financial statements. The condensed consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated from the condensed consolidated financial statements. | ||||||||||||||
Earnings per Share ("EPS") | ' | |||||||||||||
Earnings per Share (“EPS”) | ||||||||||||||
Diluted EPS was calculated to give effect to all potentially dilutive non-participating common share equivalents using the “Treasury Stock” method. Outstanding stock options, stock appreciation rights (“SARs”) and target awards of Restricted Stock Units (“RSUs”) with performance conditions (“Performance Units”) represent the only potentially dilutive non-participating security effects on the Company’s weighted-average shares. For the three and nine months ended September 30, 2013 approximately 10,000 and 600,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company’s common stock for the period the options were outstanding. For the three and nine months ended September 30, 2012 approximately 980,000 and 1,030,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company’s common stock for the period the options were outstanding. | ||||||||||||||
The following table presents the computation of basic and diluted EPS (dollars in millions except per share amounts, shares in thousands): | ||||||||||||||
Earnings Per Basic Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.7 | ) | (1.0 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.6 | 29.8 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.2 | $ | 29.7 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Basic | ||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.56 | $ | 2.22 | $ | 1.9 | ||||||
Discontinued operations | — | — | 0.16 | — | ||||||||||
$ | 0.69 | $ | 0.56 | $ | 2.38 | $ | 1.9 | |||||||
Earnings Per Diluted Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.6 | ) | (0.9 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.7 | 29.9 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.3 | $ | 29.8 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Add: Assumed incremental shares under stock compensation plans | 380 | 317 | 322 | 327 | ||||||||||
Weighted-average diluted shares | 16,469 | 16,145 | 16,338 | 15,982 | ||||||||||
Diluted | ||||||||||||||
Continuing operations | $ | 0.68 | $ | 0.55 | $ | 2.18 | $ | 1.87 | ||||||
Discontinued operations | — | 0.16 | — | |||||||||||
$ | 0.68 | $ | 0.55 | $ | 2.34 | $ | 1.87 | |||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The Company measures the fair value of financial instruments 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 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 fair value of short and long-term debt is estimated using current market prices for the Company’s publicly traded debt or rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company’s debt. | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||
Value | Value | |||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 166.5 | $ | — | $ | — | ||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.9 | 5.9 | 6.6 | 6.9 | ||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.2 | 10.7 | — | — | ||||||||||
Total Debt | $ | 193.1 | $ | 183.1 | $ | 182.3 | $ | 182.6 | ||||||
(a) Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. | ||||||||||||||
The Company’s investments in marketable securities are accounted for as “available-for-sale securities” in accordance with Accounting Standards Codification (“ASC”) Topic 320, Investments — Debt and Equity Securities (“ASC Topic 320”). As of September 30, 2013, the cost and fair value of the Company’s marketable securities was $2.6 million. Fair value for the Company’s marketable securities was estimated from Level 1 measurements. These marketable securities are classified as “Other Assets” on the condensed consolidated balance sheet and are restricted to the payment of benefits under the Company’s Supplemental Executive Retirement Plan (“SERP”). | ||||||||||||||
Background_and_Basis_of_Presen2
Background and Basis of Presentation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Background and Basis of Presentation | ' | |||||||||||||
Schedule of computation of basic and diluted EPS | ' | |||||||||||||
The following table presents the computation of basic and diluted EPS (dollars in millions except per share amounts, shares in thousands): | ||||||||||||||
Earnings Per Basic Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.7 | ) | (1.0 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.6 | 29.8 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.2 | $ | 29.7 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Basic | ||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.56 | $ | 2.22 | $ | 1.9 | ||||||
Discontinued operations | — | — | 0.16 | — | ||||||||||
$ | 0.69 | $ | 0.56 | $ | 2.38 | $ | 1.9 | |||||||
Earnings Per Diluted Common Share | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 11.4 | $ | 9.2 | $ | 36.3 | $ | 30.8 | ||||||
Distributed and undistributed amounts allocated to participating securities | (0.2 | ) | (0.2 | ) | (0.6 | ) | (0.9 | ) | ||||||
Income from continuing operations available to common stockholders | 11.2 | 9 | 35.7 | 29.9 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (0.1 | ) | 2.6 | (0.1 | ) | ||||||||
Net income available to common stockholders | $ | 11.2 | $ | 8.9 | $ | 38.3 | $ | 29.8 | ||||||
Weighted-average basic shares outstanding | 16,089 | 15,828 | 16,016 | 15,655 | ||||||||||
Add: Assumed incremental shares under stock compensation plans | 380 | 317 | 322 | 327 | ||||||||||
Weighted-average diluted shares | 16,469 | 16,145 | 16,338 | 15,982 | ||||||||||
Diluted | ||||||||||||||
Continuing operations | $ | 0.68 | $ | 0.55 | $ | 2.18 | $ | 1.87 | ||||||
Discontinued operations | — | 0.16 | — | |||||||||||
$ | 0.68 | $ | 0.55 | $ | 2.34 | $ | 1.87 | |||||||
Schedule of the carrying value and the fair value of the Company's debt | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair Value | Carrying | Fair Value (a) | |||||||||||
Value | Value | |||||||||||||
2021 Senior Notes (5.25% fixed rate) | $ | 175 | $ | 166.5 | $ | — | $ | — | ||||||
2014 Senior Notes (7.375% fixed rate) | — | — | 90 | 90 | ||||||||||
Revolving bank credit facility (variable rates) | — | — | 55.7 | 55.7 | ||||||||||
Term Loan (variable rates) | — | — | 30 | 30 | ||||||||||
Neenah Germany project financing (3.8% fixed rate) | 5.9 | 5.9 | 6.6 | 6.9 | ||||||||||
Second German Loan Agreement (2.5% fixed rate) | 12.2 | 10.7 | — | — | ||||||||||
Total Debt | $ | 193.1 | $ | 183.1 | $ | 182.3 | $ | 182.6 | ||||||
(a) Fair value for the 2014 Senior Notes was estimated from Level 1 measurements, the fair value for all other debt instruments was estimated from Level 2 measurements. |
Supplemental_Balance_Sheet_Dat1
Supplemental Balance Sheet Data (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Supplemental Balance Sheet Data | ' | |||||||||||||
Schedule of inventories by major class | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Raw materials | $ | 22.1 | $ | 20.8 | ||||||||||
Work in progress | 23.1 | 24.9 | ||||||||||||
Finished goods | 63.8 | 66.3 | ||||||||||||
Supplies and other | 4 | 3.7 | ||||||||||||
113 | 115.7 | |||||||||||||
Adjust FIFO inventories to LIFO cost | (13.6 | ) | (12.8 | ) | ||||||||||
Total | $ | 99.4 | $ | 102.9 | ||||||||||
Schedule of changes in accumulated other comprehensive income | ' | |||||||||||||
Unrealized foreign | Net gain (loss) from | Unrealized gain (loss) | Accumulated other | |||||||||||
currency translation | pension and other | on “available-for- | comprehensive income | |||||||||||
gain | postretirement | sale” securities | (loss) | |||||||||||
liabilities | ||||||||||||||
AOCI — December 31, 2012 | $ | 9.2 | $ | (59.1 | ) | $ | 0.1 | $ | (49.8 | ) | ||||
Other comprehensive income before reclassifications | 4.8 | 6.6 | (0.1 | ) | 11.3 | |||||||||
Amounts reclassified from AOCI | — | 5.1 | — | 5.1 | ||||||||||
Income (loss) from other comprehensive income items | 4.8 | 11.7 | (0.1 | ) | 16.4 | |||||||||
Provision for income taxes | — | 4.4 | — | 4.4 | ||||||||||
Other comprehensive income (loss) | 4.8 | 7.3 | (0.1 | ) | 12 | |||||||||
AOCI — September 30, 2013 | $ | 14 | $ | (51.8 | ) | $ | — | $ | (37.8 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Taxes | ' | |||||||||||
Schedule of difference between the effective income tax rate and the U.S. federal statutory income tax rate | ' | |||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 4.8 | 35 | % | $ | 4.5 | ||||
U.S. state income taxes, net of federal income tax benefit | 3.6 | % | 0.5 | 2.3 | % | 0.3 | ||||||
Foreign tax rate differences (a) | (1.5 | )% | (0.2 | ) | (1.7 | )% | (0.2 | ) | ||||
Foreign financing structure (b) | (1.5 | )% | (0.2 | ) | (4.7 | )% | (0.6 | ) | ||||
Tax on foreign dividends | 4.3 | % | 0.6 | — | % | — | ||||||
Research and development tax credits | (13.8 | )% | (1.9 | ) | — | % | — | |||||
Uncertain tax positions | 0.7 | % | 0.1 | — | % | — | ||||||
Other differences — net | (9.4 | )% | (1.3 | ) | (1.7 | )% | (0.2 | ) | ||||
Effective income tax rate | 17.4 | % | $ | 2.4 | 29.2 | % | $ | 3.8 | ||||
Nine Months Ended September 30, | ||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
U.S. federal statutory income tax rate | 35 | % | $ | 18.5 | 35 | % | $ | 15.4 | ||||
U.S. state income taxes, net of federal income tax benefit | 2.3 | % | 1.2 | 1.8 | % | 0.8 | ||||||
Foreign tax rate differences (a) | (2.5 | )% | (1.3 | ) | (3.2 | )% | (1.4 | ) | ||||
Foreign financing structure (b) | (3.6 | )% | (1.9 | ) | (4.1 | )% | (1.8 | ) | ||||
Tax on foreign dividends | 3 | % | 1.6 | — | % | — | ||||||
Research and development tax credits | (3.6 | )% | (1.9 | ) | — | % | — | |||||
Uncertain tax positions | 1.3 | % | 0.7 | (0.2 | )% | (0.1 | ) | |||||
Other differences — net | (0.5 | )% | (0.3 | ) | 0.9 | % | 0.4 | |||||
Effective income tax rate | 31.4 | % | $ | 16.6 | 30.2 | % | $ | 13.3 | ||||
(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. |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt | ' | |||||||
Schedule of long-term debt | ' | |||||||
September 30, 2013 | December 31, 2012 | |||||||
2021 Senior Notes (5.25% fixed rate) due May 2021 | $ | 175 | $ | — | ||||
2014 Senior Notes (7.375% fixed rate) retired June 2013 | — | 90 | ||||||
Revolving bank credit facility (variable rates) due November 2017 | — | 55.7 | ||||||
Term Loan (variable rates) repaid June 2013 | — | 30 | ||||||
Neenah Germany project financing (3.8% fixed rate) due in 16 equal semi-annual installments ending December 2016 | 5.9 | 6.6 | ||||||
Second German Loan Agreement (2.5% fixed rate) due in 32 equal quarterly installments ending September 2022 | 12.2 | — | ||||||
Total debt | 193.1 | 182.3 | ||||||
Less: Debt payable within one year | 1.7 | 4.7 | ||||||
Long-term debt | $ | 191.4 | $ | 177.6 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Other than Pensions | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 1.4 | $ | 1.1 | $ | 0.4 | $ | 0.5 | ||||||
Interest cost | 3.4 | 3.5 | 0.5 | 0.5 | ||||||||||
Expected return on plan assets (a) | (4.3 | ) | (3.8 | ) | — | — | ||||||||
Recognized net actuarial loss | 1.4 | 1 | 0.1 | — | ||||||||||
Amortization of prior service cost (benefit) | 0.1 | 0.1 | (0.1 | ) | — | |||||||||
Net periodic benefit cost | $ | 2 | $ | 1.9 | $ | 0.9 | $ | 1 | ||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Other than Pensions | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 4 | $ | 3.4 | $ | 1.3 | $ | 1.4 | ||||||
Interest cost | 10.2 | 10.6 | 1.4 | 1.5 | ||||||||||
Expected return on plan assets (a) | (12.8 | ) | (11.4 | ) | — | — | ||||||||
Recognized net actuarial loss | 4.3 | 3.1 | 0.4 | 0.2 | ||||||||||
Amortization of prior service cost (benefit) | 0.2 | 0.2 | (0.2 | ) | 0.1 | |||||||||
SERP settlement charge | 0.2 | 3.5 | — | — | ||||||||||
Curtailment loss | — | — | — | 0.3 | ||||||||||
Net periodic benefit cost | $ | 6.1 | $ | 9.4 | $ | 2.9 | $ | 3.5 | ||||||
(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. |
Stock_Compensation_Plan_Tables
Stock Compensation Plan (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Compensation Plan | ' | |||||||||||||
Schedule of stock-based compensation expense and related income tax benefits | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Stock-based compensation expense | $ | 0.8 | $ | 0.9 | $ | 4 | $ | 3.9 | ||||||
Income tax benefit | (0.3 | ) | (0.3 | ) | (1.5 | ) | (1.5 | ) | ||||||
Stock-based compensation, net of Income tax benefit | $ | 0.5 | $ | 0.6 | $ | 2.5 | $ | 2.4 | ||||||
Schedule of total compensation costs related to the Company's equity awards and amounts recognized | ' | |||||||||||||
Stock Options and | Performance Units | |||||||||||||
SARs | and RSUs | |||||||||||||
Unrecognized compensation cost — December 31, 2012 | $ | 1.6 | $ | 2.5 | ||||||||||
Grant date fair value of current year grants | 1 | 3.5 | ||||||||||||
Compensation expense recognized | (1.1 | ) | (2.9 | ) | ||||||||||
Unrecognized compensation cost — September 30, 2013 | $ | 1.5 | $ | 3.1 | ||||||||||
Expected amortization period (in years) | 2.6 | 1.7 | ||||||||||||
Schedule of stock options awarded | ' | |||||||||||||
Nonqualified stock options granted (a) | 111,200 | |||||||||||||
Per share weighted average exercise price | $ | 31.23 | ||||||||||||
Per share weighted average grant date fair value | $ | 9.61 | ||||||||||||
(a) No stock options were awarded during the three months ended September 30, 2013. | ||||||||||||||
Schedule of assumptions used to determine the grant date fair value of options granted | ' | |||||||||||||
Expected term in years | 5.3 | |||||||||||||
Risk free interest rate | 0.9 | % | ||||||||||||
Volatility | 40.4 | % | ||||||||||||
Dividend yield | 1.9 | % | ||||||||||||
Schedule of vested stock options and SARs | ' | |||||||||||||
Nine Months Ended | ||||||||||||||
September 30, 2013 | ||||||||||||||
Nonqualified stock options and SARs vested | 123,400 | |||||||||||||
Aggregate grant date fair value of stock options and SARs vested | $ | 0.9 | ||||||||||||
Schedule of outstanding stock options and SARs | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Stock options and SARs vested or expected to vest | 1,143,000 | 2,035,000 | ||||||||||||
Aggregate intrinsic value | $ | 17.8 | $ | 8.1 | ||||||||||
Per share weighted average grant date fair value | $ | 8.69 | $ | 9.03 | ||||||||||
Exercisable stock options and SARs | 818,000 | 1,660,000 | ||||||||||||
Aggregate intrinsic value | $ | 13.4 | $ | 4.7 | ||||||||||
Unvested stock options and SARs | 329,000 | 395,000 | ||||||||||||
Per share weighted average grant date fair value | $ | 9.11 | $ | 5.25 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||||
Gross | Cumulative | Net | ||||||||||||
Amount | Impairment Loss | |||||||||||||
Balance at December 31, 2012 | $ | 96.1 | $ | (54.7 | ) | $ | 41.4 | |||||||
Foreign currency translation | 2.2 | (1.3 | ) | 0.9 | ||||||||||
Balance at September 30, 2013 | $ | 98.3 | $ | (56.0 | ) | $ | 42.3 | |||||||
Schedule of gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Amortizable intangible assets | ||||||||||||||
Customer based intangibles | $ | 17.2 | $ | (7.2 | ) | $ | 16.3 | $ | (6.2 | ) | ||||
Trade names and trademarks | 5.7 | (4.0 | ) | 5.5 | (3.4 | ) | ||||||||
Acquired technology | 1.1 | (0.7 | ) | 1.1 | (0.7 | ) | ||||||||
Total amortizable intangible assets | 24 | (11.9 | ) | 22.9 | (10.3 | ) | ||||||||
Non-amortizable trade names | 26.6 | — | 21.4 | — | ||||||||||
Total | $ | 50.6 | $ | (11.9 | ) | $ | 44.3 | $ | (10.3 | ) |
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Business Segment Information | ' | |||||||||||||
Schedule of net sales, operating income and total assets for each of the business segments | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net sales | ||||||||||||||
Technical Products | $ | 104.4 | $ | 98.7 | $ | 317.2 | $ | 311.6 | ||||||
Fine Paper | 102.6 | 99.1 | 302 | 281.8 | ||||||||||
Other | 7.1 | 8.5 | 20.4 | 22.8 | ||||||||||
Consolidated | $ | 214.1 | $ | 206.3 | $ | 639.6 | $ | 616.2 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Operating income (loss) | ||||||||||||||
Technical Products | $ | 6.7 | $ | 6.4 | $ | 28.3 | $ | 31.2 | ||||||
Fine Paper | 13.3 | 12.8 | 45.1 | 36.9 | ||||||||||
Other | 0.3 | 0.5 | — | 1.8 | ||||||||||
Unallocated corporate costs | (3.9 | ) | (3.4 | ) | (12.2 | ) | (15.4 | ) | ||||||
Consolidated | $ | 16.4 | $ | 16.3 | $ | 61.2 | $ | 54.5 | ||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Total Assets | ||||||||||||||
Technical Products | $ | 365.9 | $ | 348.5 | ||||||||||
Fine Paper | 217.4 | 214 | ||||||||||||
Corporate and Other | 76.7 | 48.2 | ||||||||||||
Total | $ | 660 | $ | 610.7 |
Background_and_Basis_of_Presen3
Background and Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 |
item | Southworth Company | |||||
Background and Basis of Presentation | ' | ' | ' | ' | ' | ' |
Number of primary operations | ' | ' | ' | 2 | ' | ' |
Potentially dilutive stock-based compensation awards excluded from computation of dilutive common shares | 10,000 | ' | 980,000 | 600,000 | 1,030,000 | ' |
Earnings Per Basic Common Share | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $11.40 | ' | $9.20 | $36.30 | $30.80 | ' |
Distributed and undistributed amounts allocated to participating securities | -0.2 | ' | -0.2 | -0.7 | -1 | ' |
Income from continuing operations available to common stockholders | 11.2 | ' | 9 | 35.6 | 29.8 | ' |
Income (loss) from discontinued operations, net of income taxes | ' | 2.6 | -0.1 | 2.6 | -0.1 | ' |
Net income available to common stockholders | 11.2 | ' | 8.9 | 38.2 | 29.7 | ' |
Weighted-average basic shares outstanding | 16,089,000 | ' | 15,828,000 | 16,016,000 | 15,655,000 | ' |
Basic | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.69 | ' | $0.56 | $2.22 | $1.90 | ' |
Discontinued operations (in dollars per share) | ' | ' | ' | $0.16 | ' | ' |
Total Basic (in dollars per share) | $0.69 | ' | $0.56 | $2.38 | $1.90 | ' |
Earnings Per Diluted Common Share | ' | ' | ' | ' | ' | ' |
Income from continuing operations | 11.4 | ' | 9.2 | 36.3 | 30.8 | ' |
Distributed and undistributed amounts allocated to participating securities | -0.2 | ' | -0.2 | -0.6 | -0.9 | ' |
Income from continuing operations available to common stockholders | 11.2 | ' | 9 | 35.7 | 29.9 | ' |
Income (loss) from discontinued operations, net of income taxes | ' | 2.6 | -0.1 | 2.6 | -0.1 | ' |
Net income available to common stockholders | 11.2 | ' | 8.9 | 38.3 | 29.8 | ' |
Weighted-average basic shares outstanding | 16,089,000 | ' | 15,828,000 | 16,016,000 | 15,655,000 | ' |
Add: Assumed incremental shares under stock compensation | 380,000 | ' | 317,000 | 322,000 | 327,000 | ' |
Weighted-average diluted shares | 16,469,000 | ' | 16,145,000 | 16,338,000 | 15,982,000 | ' |
Diluted | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.68 | ' | $0.55 | $2.18 | $1.87 | ' |
Discontinued operations (in dollars per share) | ' | ' | ' | $0.16 | ' | ' |
Total Diluted (in dollars per share) | $0.68 | ' | $0.55 | $2.34 | $1.87 | ' |
Background and Basis of Presentation | ' | ' | ' | ' | ' | ' |
Cash payment | ' | ' | ' | $5.20 | $14.10 | $7 |
Background_and_Basis_of_Presen4
Background and Basis of Presentation (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value of Financial Instruments | ' | ' |
Cost of marketable securities | $2.60 | ' |
Fair value of marketable securities | 2.6 | ' |
Carrying Value | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 193.1 | 182.3 |
Carrying Value | 2021 Senior Notes (5.25% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 175 | ' |
Carrying Value | 2014 Senior Notes (7.375% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 90 |
Carrying Value | Revolving bank credit facility (variable rates) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 55.7 |
Carrying Value | Term Loan (variable rates) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 30 |
Carrying Value | Neenah Germany project financing (3.8% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 5.9 | 6.6 |
Carrying Value | Second German Loan Agreement (2.5% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 12.2 | ' |
Fair Value | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 183.1 | 182.6 |
Fair Value | 2021 Senior Notes (5.25% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 166.5 | ' |
Fair Value | 2014 Senior Notes (7.375% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 90 |
Fair Value | Revolving bank credit facility (variable rates) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 55.7 |
Fair Value | Term Loan (variable rates) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | ' | 30 |
Fair Value | Neenah Germany project financing (3.8% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | 5.9 | 6.9 |
Fair Value | Second German Loan Agreement (2.5% fixed rate) | ' | ' |
Carrying value and fair value of debt | ' | ' |
Long-term debt | $10.70 | ' |
Accounting_Standard_Changes_De
Accounting Standard Changes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Accounting Standard Changes | ' |
Reduction in deferred tax assets due to reclassification of benefits for uncertain income tax positions | $3.70 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Southworth Company | Southworth Company | Southworth Company | Southworth Company | Southworth Company | Southworth Company | Southworth Company | Wausau Paper Mills, LLC | Wausau Paper Mills, LLC | Wausau Paper Mills, LLC | ||||||
Trade names and trademarks | Trade names and trademarks | Customer based intangibles | Customer based intangibles | ||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment | ' | ' | $5.20 | $14.10 | ' | $7 | ' | ' | ' | ' | ' | ' | $21 | ' | ' |
Period of finished goods inventory purchased | ' | ' | ' | ' | ' | '1 month | ' | ' | ' | ' | ' | ' | '1 month | ' | ' |
Acquisition-related integration costs | 0.4 | 0.3 | 0.6 | 4.7 | ' | ' | 0.2 | 0.4 | ' | ' | ' | ' | ' | 0.3 | 4.7 |
Non amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | ' | ' | ' |
Finished goods inventory | 63.8 | ' | 63.8 | ' | 66.3 | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized liability | ' | ' | ' | ' | ' | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected acquisition-related integration costs | ' | ' | ' | ' | ' | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Balance_Sheet_Dat2
Supplemental Balance Sheet Data (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Supplemental Balance Sheet Data | ' | ' |
Raw materials | $22.10 | $20.80 |
Work in progress | 23.1 | 24.9 |
Finished goods | 63.8 | 66.3 |
Supplies and other | 4 | 3.7 |
Inventories, gross | 113 | 115.7 |
Adjust FIFO inventories to LIFO cost | -13.6 | -12.8 |
Total | 99.4 | 102.9 |
FIFO values of inventories valued on the LIFO method | $87.70 | $91.80 |
Supplemental_Balance_Sheet_Dat3
Supplemental Balance Sheet Data (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in accumulated other comprehensive income | ' | ' | ' | ' |
AOCI, Balance at the beginning of the period | ' | ' | ($49.80) | ' |
Other comprehensive income before reclassifications | ' | ' | 11.3 | ' |
Amounts reclassified from AOCI | ' | ' | 5.1 | ' |
Income from other comprehensive income items | 8.8 | 7.4 | 16.4 | 7.9 |
Provision for income taxes | 0.6 | 0.4 | 4.4 | 3.3 |
Other comprehensive income (loss) | 8.2 | 7 | 12 | 4.6 |
AOCI, Balance at the end of the period | -37.8 | ' | -37.8 | ' |
SERP settlement charge | ' | ' | 0.2 | 3.5 |
Tax benefit | -2.4 | -3.8 | -16.6 | -13.3 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Changes in accumulated other comprehensive income | ' | ' | ' | ' |
Cost of products sold and selling, general and administrative expenses | 1.6 | ' | 4.9 | ' |
SERP settlement charge | ' | ' | 0.2 | ' |
Tax benefit | 0.7 | ' | 2 | ' |
Unrealized foreign currency translation gain | ' | ' | ' | ' |
Changes in accumulated other comprehensive income | ' | ' | ' | ' |
AOCI, Balance at the beginning of the period | ' | ' | 9.2 | ' |
Other comprehensive income before reclassifications | ' | ' | 4.8 | ' |
Income from other comprehensive income items | ' | ' | 4.8 | ' |
Other comprehensive income (loss) | ' | ' | 4.8 | ' |
AOCI, Balance at the end of the period | 14 | ' | 14 | ' |
Net gain (loss) from pension and other postretirement liabilities | ' | ' | ' | ' |
Changes in accumulated other comprehensive income | ' | ' | ' | ' |
AOCI, Balance at the beginning of the period | ' | ' | -59.1 | ' |
Other comprehensive income before reclassifications | ' | ' | 6.6 | ' |
Amounts reclassified from AOCI | ' | ' | 5.1 | ' |
Income from other comprehensive income items | ' | ' | 11.7 | ' |
Provision for income taxes | ' | ' | 4.4 | ' |
Other comprehensive income (loss) | ' | ' | 7.3 | ' |
AOCI, Balance at the end of the period | -51.8 | ' | -51.8 | ' |
Unrealized gain (loss) on "available-for-sale" securities | ' | ' | ' | ' |
Changes in accumulated other comprehensive income | ' | ' | ' | ' |
AOCI, Balance at the beginning of the period | ' | ' | 0.1 | ' |
Other comprehensive income before reclassifications | ' | ' | -0.1 | ' |
Income from other comprehensive income items | ' | ' | -0.1 | ' |
Other comprehensive income (loss) | ' | ' | ($0.10) | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
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% | 35.00% |
U.S. state income taxes, net of federal income tax benefit (as a percent) | 3.60% | 2.30% | 2.30% | 1.80% |
Foreign tax rate differences (as a percent) | -1.50% | -1.70% | -2.50% | -3.20% |
Foreign financing structure (as a percent) | -1.50% | -4.70% | -3.60% | -4.10% |
Tax on foreign dividends (as a percent) | 4.30% | ' | 3.00% | ' |
Research and development tax credits (as a percent) | -13.10% | ' | -3.40% | ' |
Uncertain tax positions (as a percent) | 0.70% | ' | 1.30% | -0.20% |
Other differences - net (as a percent) | -10.10% | -1.70% | -0.70% | 0.90% |
Effective income tax rate (as a percent) | 17.40% | 29.20% | 31.40% | 30.20% |
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ' | ' | ' | ' |
U.S. federal statutory income tax rate | $4.80 | $4.50 | $18.50 | $15.40 |
U.S. state income taxes, net of federal income tax benefit | 0.5 | 0.3 | 1.2 | 0.8 |
Foreign tax rate differences | -0.2 | -0.2 | -1.3 | -1.4 |
Foreign financing structure | -0.2 | -0.6 | -1.9 | -1.8 |
Tax on foreign dividends | 0.6 | ' | 1.6 | ' |
Research and development tax credits | -1.8 | ' | -1.8 | ' |
Uncertain tax positions | 0.1 | ' | 0.7 | -0.1 |
Other differences - net | -1.4 | -0.2 | -0.4 | 0.4 |
Effective income tax rate | $2.40 | $3.80 | $16.60 | $13.30 |
Debt_Details
Debt (Details) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 31-May-13 | Sep. 30, 2013 | Jun. 30, 2013 | 31-May-13 | Nov. 30, 2012 | Apr. 30, 2012 | Nov. 30, 2004 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2013 |
USD ($) | USD ($) | USD ($) | 2021 Senior Notes (5.25% fixed rate) due May 2021 | 2021 Senior Notes (5.25% fixed rate) due May 2021 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | Revolving bank credit facility due November 2017 | Term loan repaid June 2013 | Term loan repaid June 2013 | Term loan repaid June 2013 | Term loan repaid June 2013 | Neenah Germany project financing | Neenah Germany project financing | Neenah Germany project financing | Neenah Germany project financing | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Neenah Germany revolving lines of credit (variable rates) | Revolving bank credit facility (variable rates), due 2017 | Revolving bank credit facility (variable rates), due 2017 | Revolving bank credit facility (variable rates), due 2017 | Revolving bank credit facility (variable rates), due 2017 | Revolving bank credit facility (variable rates), due 2017 | Revolving bank credit facility (variable rates), due 2017 | Second German Loan Agreement | Second German Loan Agreement | Second German Loan Agreement | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | HypoVereinsbank | HypoVereinsbank | Total Commerzbank borrowings | Total Commerzbank borrowings | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | USD ($) | EUR (€) | EUR (€) | |||||
installment | installment | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | installment | installment | |||||||||||||||||||||||||||||
Principal Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | $193.10 | ' | $182.30 | ' | $175 | ' | ' | ' | ' | ' | ' | ' | ' | $90 | $55.70 | ' | ' | $30 | ' | ' | $5.90 | ' | $6.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.20 | ' | ' |
Less: Debt payable within one year | 1.7 | ' | 4.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 191.4 | ' | 177.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed rate of interest (as a percent) | ' | ' | ' | ' | 5.25% | ' | ' | ' | ' | 7.38% | 7.38% | ' | ' | 7.38% | ' | ' | ' | ' | ' | ' | 3.80% | 3.80% | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 2.50% | 2.45% |
Number of equal semi-annual installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal quarterly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 32 | ' |
Total term of notes | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debt redeemed or repaid | ' | ' | ' | 70 | ' | 70 | 20 | 58 | 10 | ' | ' | 65 | 2 | ' | ' | 29.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' | ' | ' | ' | ' | ' | ' |
Pre-tax loss for the early extinguishment of debt | 0.5 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity that may be increased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which debt may be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | 101.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax loss, including the write-off of related unamortized debt issuance costs | ' | ' | ' | ' | ' | 0.3 | 0.1 | 0.4 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | 15 | ' | 5 | ' | 180 | ' | ' | ' | 105 | ' | ' | ' | 9 |
Dividend restriction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of the company's stock allowed to be repurchased on or before December 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' |
Maximum amount of the company's stock to be repurchased on or before December 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105 | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.40% | ' | ' | ' | ' | ' |
Length of the year considered for interest calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '360 days | '360 days | ' |
Available credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.3 | 15 | 6.7 | 5 | ' | ' | ' | 104.3 | ' | ' | ' | ' | ' | ' |
Total outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 5.9 | 4.4 | ' | 0 | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | 12.2 | 9 | ' |
Borrowing availability for not achieving the fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' | ' | ' | ' | ' | ' |
Period for maintaining a fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' |
Stockholder's equity to total assets ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Postretirement Benefits Other than Pensions | Postretirement Benefits Other than Pensions | Postretirement Benefits Other than Pensions | Postretirement Benefits Other than Pensions | U.S.Postretirement Benefit Plan | |||
Forecast | ||||||||||||
Pension and other postretirement benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | $1.40 | $1.10 | $4 | $3.40 | ' | $0.40 | $0.50 | $1.30 | $1.40 | ' |
Interest cost | ' | ' | 3.4 | 3.5 | 10.2 | 10.6 | ' | 0.5 | 0.5 | 1.4 | 1.5 | ' |
Expected return on plan assets | ' | ' | -4.3 | -3.8 | -12.8 | -11.4 | ' | ' | ' | ' | ' | ' |
Recognized net actuarial loss | ' | ' | 1.4 | 1 | 4.3 | 3.1 | ' | 0.1 | ' | 0.4 | 0.2 | ' |
Amortization of prior service cost (benefit) | ' | ' | 0.1 | 0.1 | 0.2 | 0.2 | ' | -0.1 | ' | -0.2 | 0.1 | ' |
SERP settlement charge | 0.2 | 3.5 | ' | ' | 0.2 | 3.5 | ' | ' | ' | ' | ' | ' |
Curtailment loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | 6.6 |
Curtailment gain, provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 |
Net periodic benefit cost | ' | ' | 2 | 1.9 | 6.1 | 9.4 | ' | 0.9 | 1 | 2.9 | 3.5 | ' |
Contribution by the company | ' | ' | ' | ' | $13 | ' | $18 | ' | ' | ' | ' | ' |
Stock_Compensation_Plan_Detail
Stock Compensation Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Stock Compensation Plans | ' | ' | ' | ' | ' |
Excess tax benefits related to the exercise or vesting of stock-based awards | ' | ' | $0.40 | $5.10 | ' |
Stock-based compensation expense and related income tax benefits | ' | ' | ' | ' | ' |
Stock-based compensation expense | 0.8 | 0.9 | 4 | 3.9 | ' |
Income tax benefit | -0.3 | -0.3 | -1.5 | -1.5 | ' |
Stock-based compensation, net of Income tax benefit | 0.5 | 0.6 | 2.5 | 2.4 | ' |
Compensation costs related to equity awards and amounts recognized | ' | ' | ' | ' | ' |
Compensation expense recognized | -0.8 | -0.9 | -4 | -3.9 | ' |
Performance Shares and RSUs | ' | ' | ' | ' | ' |
Stock-based compensation expense and related income tax benefits | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 2.9 | ' | ' |
Compensation costs related to equity awards and amounts recognized | ' | ' | ' | ' | ' |
Unrecognized compensation cost at the beginning of the period | ' | ' | 2.5 | ' | ' |
Grant date fair value of current year grants | ' | ' | 3.5 | ' | ' |
Compensation expense recognized | ' | ' | -2.9 | ' | ' |
Unrecognized compensation cost at the end of the period | 3.1 | ' | 3.1 | ' | ' |
Expected amortization period | ' | ' | '1 year 8 months 12 days | ' | ' |
Stock options and SARs | ' | ' | ' | ' | ' |
Stock-based compensation expense and related income tax benefits | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 1.1 | ' | ' |
Compensation costs related to equity awards and amounts recognized | ' | ' | ' | ' | ' |
Unrecognized compensation cost at the beginning of the period | ' | ' | 1.6 | ' | ' |
Grant date fair value of current year grants | ' | ' | 1.1 | ' | ' |
Compensation expense recognized | ' | ' | -1.1 | ' | ' |
Unrecognized compensation cost at the end of the period | 1.5 | ' | 1.5 | ' | ' |
Expected amortization period | ' | ' | '2 years 7 months 6 days | ' | ' |
Fair value assumptions | ' | ' | ' | ' | ' |
Expected term in years | ' | ' | '5 years 3 months 18 days | ' | ' |
Risk free interest rate (as a percent) | ' | ' | 0.90% | ' | ' |
Volatility (as a percent) | ' | ' | 40.40% | ' | ' |
Dividend yield (as a percent) | ' | ' | 1.90% | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' |
Aggregate pre-tax intrinsic value of stock options and SARs exercised | 4.4 | 1 | 5.8 | 4.5 | ' |
Outstanding stock options and SARs | ' | ' | ' | ' | ' |
Stock options and SARs vested or expected to vest (in shares) | 1,143,000 | ' | 1,143,000 | ' | 2,035,000 |
Aggregate intrinsic value (in dollars) | 17.8 | ' | 17.8 | ' | 8.1 |
Per share weighted average grant date fair value (in dollars per share) | $8.69 | ' | $8.69 | ' | $9.03 |
Exercisable stock options and SARs (in shares) | 818,000 | ' | 818,000 | ' | 1,660,000 |
Aggregate intrinsic value (in dollars) | 13.4 | ' | 13.4 | ' | 4.7 |
Unvested stock options and SARs (in shares) | 329,000 | ' | 329,000 | ' | 395,000 |
Per share weighted average grant date fair value (in dollars per share) | $9.11 | ' | $9.11 | ' | $5.25 |
Performance units | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' |
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 | 125.00% | ' | 125.00% | ' | ' |
Market price at grant date of performance units | $31.23 | ' | $31.23 | ' | ' |
Granted (in shares) | ' | ' | 78,900 | ' | ' |
Nonqualified stock options | ' | ' | ' | ' | ' |
Stock options awarded | ' | ' | ' | ' | ' |
Nonqualified stock options granted (in shares) | 0 | ' | 111,200 | ' | ' |
Per share weighted average exercise price (in dollars per share) | ' | ' | $31.23 | ' | ' |
Per share weighted average grant date fair value (in dollars per share) | ' | ' | $9.61 | ' | ' |
Nonqualified stock options and SARs | ' | ' | ' | ' | ' |
Stock options and SARs vested | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | 123,400 | ' | ' |
Aggregate grant date fair value | ' | ' | 0.9 | ' | ' |
Omnibus Plan | ' | ' | ' | ' | ' |
Stock Compensation Plans | ' | ' | ' | ' | ' |
Additional common stock reserved for issuance subject to shareholders approval (in shares) | ' | ' | 1,577,000 | ' | ' |
Par value of shares of common stock (in dollars per share) | $0.01 | ' | $0.01 | ' | ' |
Shares of common stock reserved for future issuance | 1,870,000 | ' | 1,870,000 | ' | ' |
LTIP | Stock options | Participants | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' |
Shares outstanding that vested and would have been exercisable had the participants reached retirement age | 42,000 | ' | 42,000 | ' | ' |
Aggregate grant date fair value of options subject to accelerated vesting | ' | ' | $0.40 | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Gross Amount | ' |
Balance at the beginning of the period | $96.10 |
Foreign currency translation | 2.2 |
Balance at the end of the period | 98.3 |
Cumulative Impairment Loss | ' |
Balance at the beginning of the period | -54.7 |
Foreign currency translation | -1.3 |
Balance at the end of the period | -56 |
Net | ' |
Balance at the beginning of the period | 41.4 |
Foreign currency translation | 0.9 |
Balance at the end of the period | $42.30 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Trade names | Trade names | Customer based intangibles | Customer based intangibles | Customer based intangibles | Customer based intangibles | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Acquired technology | Acquired technology | ||
Southworth Company | Southworth Company | Southworth Company | Southworth Company | |||||||||||
Other Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $5 | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, Gross Amount | 24 | 22.9 | ' | ' | 17.2 | 16.3 | ' | ' | 5.7 | 5.5 | ' | ' | 1.1 | 1.1 |
Amortizable intangible assets, Accumulated Amortization | -11.9 | -10.3 | ' | ' | -7.2 | -6.2 | ' | ' | -4 | -3.4 | ' | ' | -0.7 | -0.7 |
Non-amortizable, Gross Amount | ' | ' | 26.6 | 21.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total, Gross Amount | $50.60 | $44.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average useful lives | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | '8 years | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Stockholders' equity | ' | ' | ' | ' |
Cost of shares acquired by the entity | ' | 0.7 | 5.1 | ' |
Authorized shares of common stock | ' | 100,000,000 | ' | ' |
Voting rights per common share | ' | 1 | ' | ' |
Common stock, outstanding shares | ' | 16,160,000 | ' | 15,915,000 |
Shares acquired by the entity | ' | 21,000 | 214,000 | ' |
2013 Stock Purchase Plan | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Authorized amount of repurchase under the stock purchase plan | 10 | ' | ' | ' |
Period over which repurchases allowed under the plan | '12 months | ' | ' | ' |
Common stock purchased under the stock purchase plan (in shares) | ' | 0 | ' | ' |
2012 Stock Purchase Plan | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Preceding period in which repurchases were allowed under the plan | '12 months | ' | ' | ' |
Common stock purchased under the stock purchase plan (in shares) | ' | 0 | 1,200,000 | 4,100,000 |
Contingencies_and_Legal_Matter1
Contingencies and Legal Matters (Details) (EUR €) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2011 | Jan. 31, 2012 | Sep. 30, 2013 |
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% |
German tax authorities | ' | ' | ' |
Income Taxes | ' | ' | ' |
Tax assessment amount | € 3.70 | ' | ' |
Payment against the tax assessments | ' | 1.9 | ' |
Revised tax assessment resulting from settlement between the Company and the foreign tax authorities | ' | ' | 0.5 |
Refund received of tax prepayments from foreign tax authorities | ' | ' | € 1.40 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Discontinued Operations | ' | ' | ' | ' |
Income from discontinued operations | $2.60 | ($0.10) | $2.60 | ($0.10) |
Income taxes related to the refund of excess pension contributions from the terminated Terrace Bay pension plan | $1.60 | ' | ' | ' |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
item | |||||
Business Segment Information | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales | $214.10 | $206.30 | $639.60 | $616.20 | ' |
Operating income (loss) | 16.4 | 16.3 | 61.2 | 54.5 | ' |
TOTAL ASSETS | 660 | ' | 660 | ' | 610.7 |
Technical Products | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales | 104.4 | 98.7 | 317.2 | 311.6 | ' |
Operating income (loss) | 6.7 | 6.4 | 28.3 | 31.2 | ' |
TOTAL ASSETS | 365.9 | ' | 365.9 | ' | 348.5 |
Fine Paper | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales | 102.6 | 99.1 | 302 | 281.8 | ' |
Operating income (loss) | 13.3 | 12.8 | 45.1 | 36.9 | ' |
TOTAL ASSETS | 217.4 | ' | 217.4 | ' | 214 |
Other | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales | 7.1 | 8.5 | 20.4 | 22.8 | ' |
Operating income (loss) | 0.3 | 0.5 | ' | 1.8 | ' |
Unallocated corporate costs | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Operating income (loss) | -3.9 | -3.4 | -12.2 | -15.4 | ' |
Corporate and Other | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
TOTAL ASSETS | $76.70 | ' | $76.70 | ' | $48.20 |