Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 24, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'drc | ' |
Entity Registrant Name | 'Dresser-Rand Group Inc. | ' |
Entity Central Index Key | '0001316656 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 76,290,473 |
Consolidated_Statement_Of_Inco
Consolidated Statement Of Income (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 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales of products | $430.20 | $390.30 | $1,592.40 | $1,312.40 |
Net sales of services | 203.7 | 204.1 | 613.2 | 579.6 |
Total revenues | 633.9 | 594.4 | 2,205.60 | 1,892 |
Cost of products sold | 303.7 | 279.5 | 1,222 | 989.1 |
Cost of services sold | 147.4 | 144.3 | 430.6 | 419.6 |
Total cost of sales | 451.1 | 423.8 | 1,652.60 | 1,408.70 |
Gross profit | 182.8 | 170.6 | 553 | 483.3 |
Selling and administrative expenses | 93.1 | 90.2 | 287.7 | 267.4 |
Research and development expenses | 8.3 | 6.4 | 31.2 | 17.6 |
Income from operations | 81.4 | 74 | 234.1 | 198.3 |
Interest expense, net | -7.8 | -15.7 | -35.5 | -47.9 |
Other (expense) income, net | -8.1 | 1.2 | -7.1 | 0.8 |
Income before income taxes | 65.5 | 59.5 | 191.5 | 151.2 |
Provision for income taxes | 15.5 | 17.4 | 52.7 | 49.8 |
Net income | 50 | 42.1 | 138.8 | 101.4 |
Net income attributable to noncontrolling interest | -0.6 | -0.9 | -3.2 | -2.6 |
Net income attributable to Dresser-Rand | $49.40 | $41.20 | $135.60 | $98.80 |
Net income attributable to Dresser-Rand per share | ' | ' | ' | ' |
Basic | $0.65 | $0.55 | $1.78 | $1.31 |
Diluted | $0.64 | $0.54 | $1.77 | $1.30 |
Weighted-average shares outstanding-(in thousands ) | ' | ' | ' | ' |
Basic | 76,263 | 75,542 | 76,092 | 75,455 |
Diluted | 76,890 | 76,351 | 76,790 | 76,168 |
Consolidated_Statement_Of_Comp
Consolidated Statement 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 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $50 | $42.10 | $138.80 | $101.40 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Foreign currency translation adjustments | 22.4 | 18.7 | -18.2 | -1.4 |
Unrealized gain (loss) on derivatives - net of tax of $0.0 and $0.0 for the three months ended September 30, 2013 and 2012, respectively, and $0.1 and $0.04 for the nine months ended September 30, 2013 and 2012, respectively | ' | ' | 0.2 | -0.1 |
Pension and other postretirement benefit plans: | ' | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs - net of tax of $0.8 and $0.8 for the three months ended September 30, 2013 and 2012, respectively, and $2.4 and $2.5 for the nine months ended September 30, 2013 and 2012, respectively | 1.4 | 1.5 | 4.1 | 4.3 |
Total other comprehensive income (loss) | 23.8 | 20.2 | -13.9 | 2.8 |
Total comprehensive income | 73.8 | 62.3 | 124.9 | 104.2 |
Comprehensive income attributable to noncontrolling interest | -0.8 | -0.8 | -2.5 | -2.2 |
Comprehensive income attributable to Dresser-Rand | $73 | $61.50 | $122.40 | $102 |
Consolidated_Statement_Of_Comp1
Consolidated Statement Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on derivatives, tax | $0 | $0 | $0.10 | $0.04 |
Amortization of prior service cost and net actuarial loss included in net periodic costs tax | $0.80 | $0.80 | $2.40 | $2.50 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $174.40 | $122.80 |
Restricted cash | 12.3 | 17.6 |
Accounts receivable, less allowance for losses of $9.3 at 2013 and $9.6 at 2012 | 706.7 | 565.9 |
Inventories, net | 711.1 | 552.5 |
Prepaid expenses and other | 79 | 66.7 |
Deferred income taxes, net | 30.3 | 30.5 |
Total current assets | 1,713.80 | 1,356 |
Property, plant and equipment, net | 468.2 | 466.9 |
Goodwill | 917.8 | 911.3 |
Intangible assets, net | 485 | 506.9 |
Deferred income taxes | 18.2 | 14.9 |
Other assets | 96.5 | 77 |
Total assets | 3,699.50 | 3,333 |
Current liabilities | ' | ' |
Accounts payable and accruals | 672.7 | 600.4 |
Customer advance payments | 168.7 | 282.3 |
Accrued income taxes payable | 36.3 | 44.4 |
Short-term borrowings and current portion of long-term debt | 43.6 | 35.9 |
Total current liabilities | 921.3 | 963 |
Deferred income taxes | 47.2 | 35.8 |
Postemployment and other employee benefit liabilities | 127.1 | 142.8 |
Long-term debt | 1,295.90 | 1,014.90 |
Other noncurrent liabilities | 71.3 | 81.6 |
Total liabilities | 2,462.80 | 2,238.10 |
Stockholders' equity | ' | ' |
Common stock, $0.01 par value, 250,000,000 shares authorized; and 76,286,174 and 75,675,854 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 0.8 | 0.8 |
Additional paid-in capital | 157.4 | 140.5 |
Retained earnings | 1,220.20 | 1,084.60 |
Accumulated other comprehensive loss | -147.9 | -134.7 |
Total Dresser-Rand stockholders' equity | 1,230.50 | 1,091.20 |
Noncontrolling interest | 6.2 | 3.7 |
Total stockholders' equity | 1,236.70 | 1,094.90 |
Total liabilities and stockholders' equity | $3,699.50 | $3,333 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for losses | $9.30 | $9.60 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 76,286,174 | 75,675,854 |
Common stock, shares outstanding | 76,286,174 | 75,675,854 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $138.80 | $101.40 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 67.1 | 64.2 |
Deferred income taxes | 4.4 | 7.4 |
Stock-based compensation | 22.8 | 26.7 |
Excess tax benefits from stock-based compensation | -6.8 | -4 |
Amortization of debt financing costs | 2.9 | 2.9 |
Provision for losses on inventory | 0.9 | 0.7 |
(Gain) loss on sale of property, plant and equipment | -0.4 | 0.8 |
Loss from equity investments | 4 | 1 |
Changes in working capital and other, net of acquisitions | ' | ' |
Accounts receivable, net | -142.7 | 67.1 |
Inventories | -165.4 | -95.9 |
Prepaid expenses and other | -13.8 | -20.7 |
Accounts payable and accruals | 57.8 | -64.7 |
Customer advances | -109 | -15.7 |
Taxes payable | -9.3 | -17.4 |
Pension and other post-retirement benefits | -9.1 | -5.6 |
Other | -4.6 | 1.1 |
Net cash (used in) provided by operating activities | -162.4 | 49.3 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -56.3 | -48.9 |
Proceeds from sales of property, plant and equipment | 1.4 | 0.8 |
Acquisitions, net of cash acquired | ' | -48.8 |
Other investments | -12.5 | -13.2 |
Decrease in restricted cash balances | 5.8 | 5.2 |
Net cash used in investing activities | -61.6 | -104.9 |
Cash flows from financing activities | ' | ' |
Proceeds from exercise of stock options | 4 | 2.5 |
Proceeds from borrowings | 1,445.60 | 387.6 |
Excess tax benefits from stock-based compensation | 6.8 | 4 |
Repayments of borrowings | -1,161.80 | -316.2 |
Repurchase of common stock | -1.5 | ' |
Payments for debt financing costs | -4.7 | -0.4 |
Net cash provided by financing activities | 288.4 | 77.5 |
Effect of exchange rate changes on cash and cash equivalents | -12.8 | 0.8 |
Net increase in cash and cash equivalents | 51.6 | 22.7 |
Cash and cash equivalents, beginning of period | 122.8 | 128.2 |
Cash and cash equivalents, end of period | $174.40 | $150.90 |
Consolidated_Statement_Of_Chan
Consolidated Statement Of Changes In Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-Controlling Interest [Member] | Total |
In Millions, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $0.80 | $105.20 | $905.60 | ($138.80) | $0.20 | $873 |
Stock-based compensation | ' | 25.8 | ' | ' | ' | 25.8 |
Net income | ' | ' | 98.8 | ' | 2.6 | 101.4 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | -1 | -0.4 | -1.4 |
Unrealized gain on derivatives, net of tax | ' | ' | ' | -0.1 | ' | -0.1 |
Pension and other postretirement benefit plans: | ' | ' | ' | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs-net of tax | ' | ' | ' | 4.3 | ' | 4.3 |
Ending Balance at Sep. 30, 2012 | 0.8 | 131 | 1,004.40 | -135.6 | 2.4 | 1,003 |
Beginning Balance at Dec. 31, 2012 | 0.8 | 140.5 | 1,084.60 | -134.7 | 3.7 | 1,094.90 |
Stock-based compensation | ' | 18.4 | ' | ' | ' | 18.4 |
Stock repurchases | ' | -1.5 | ' | ' | ' | -1.5 |
Net income | ' | ' | 135.6 | ' | 3.2 | 138.8 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | -17.5 | -0.7 | -18.2 |
Unrealized gain on derivatives, net of tax | ' | ' | ' | 0.2 | ' | 0.2 |
Pension and other postretirement benefit plans: | ' | ' | ' | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs-net of tax | ' | ' | ' | 4.1 | ' | 4.1 |
Ending Balance at Sep. 30, 2013 | $0.80 | $157.40 | $1,220.20 | ($147.90) | $6.20 | $1,236.70 |
Consolidated_Statement_Of_Chan1
Consolidated Statement Of Changes In Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on derivatives, tax | $0 | $0 | $0.10 | $0.04 |
Amortization of prior service cost and net actuarial loss included in net periodic costs- tax | $0.80 | $0.80 | $2.40 | $2.50 |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Basis Of Presentation [Abstract] | ' | |||||||||
Basis Of Presentation | ' | |||||||||
1.Basis of Presentation | ||||||||||
Unless the context otherwise indicates, the terms “we,” “our,” “us,” the “Company,” and similar terms refer to Dresser-Rand Group Inc. and its consolidated subsidiaries. | ||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of September 30, 2013, and December 31, 2012; the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2013 and 2012; and the Consolidated Statements of Cash Flows and Changes in Stockholders’ Equity for the nine months ended September 30, 2013 and 2012. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. | ||||||||||
In preparing financial statements in accordance with U.S. GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, including those related to fair values, allowance for losses on receivables, depreciation and amortization, inventory adjustments related to lower of cost or market, the carrying value and estimated useful lives of long-lived assets, valuation of assets including goodwill and other intangible assets, product warranties, sales allowances, taxes, pensions, postemployment benefits, stock-based compensation, stage of completion and ultimate profitability for certain long-term revenue contracts accounted for under the percentage of completion method, contract losses, penalties, environmental contingencies, product liability, self-insurance programs and other contingencies (including purchase price contingencies). Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. | ||||||||||
These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012, and our other filings with the Securities and Exchange Commission. Operating results for the three and nine months ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. Certain amounts in the prior periods consolidated financial statements have been reclassified to conform to the current period’s presentation. | ||||||||||
Revenue recognition | ||||||||||
We recognize revenue when it is realized or realizable and earned. Generally, we consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery of the product or service has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the client, risk of loss has transferred to the client, and either any required client acceptance has been obtained (or such provisions have lapsed) or we have objective evidence that the criteria specified in the client acceptance provisions have been satisfied. The amount of revenue related to any contingency is not recognized until the contingency is resolved. | ||||||||||
Multiple-element arrangements | ||||||||||
A substantial portion of our arrangements are multiple-element revenue arrangements or contracts, which may include any combination of designing, developing, manufacturing, modifying and commissioning complex products to customer specifications and providing services related to the performance of such products. These contracts often take up to fifteen months to complete. Provided that the separate deliverables have value to the client on a stand-alone basis, we use the selling price hierarchy described below to determine how to separate multiple-element revenue arrangements into separate units of accounting and how to allocate the arrangement consideration among those separate units of accounting: | ||||||||||
•Vendor-specific objective evidence. | ||||||||||
•Third-party evidence if vendor-specific objective evidence is not available. | ||||||||||
•Estimated selling price determined in the same manner as that used to determine the price at which we sell the deliverables on a stand-alone basis if neither vendor-specific objective evidence nor third-party evidence is available. | ||||||||||
Our sales arrangements do not include a general right of return of the delivered unit(s). If it is determined that the separate deliverables do not have value on a stand-alone basis, the entire arrangement is accounted for as one unit of accounting, which results in revenue being recognized when the last unit is delivered. | ||||||||||
Percentage of completion | ||||||||||
Near the end of 2012 we began entering into certain large contracts with expanded construction-type scope and risk. These contractual arrangements have a scope of activity that differs in substance from the scope of deliverables found in our traditional sales agreements. For these types of contracts, we apply the guidelines of ASC 605-35 – Construction-Type and Production-Type Contracts and utilize the percentage of completion method of revenue recognition. Non-traditional scope arrangements include activities typically performed by engineering, procurement and construction contractors. Our clients typically require us to act as a general construction contractor for all or a portion of these projects. These arrangements are often executed in the form of turnkey contracts, where the Company designs, engineers, manufactures, constructs, transports, erects and hands over to the client at the designated destination point the fully commissioned and tested module or facility, which is ready for operation. Percentage of completion revenue represents approximately 6.7% and 7.1% of consolidated revenues for the three and nine months ended September 30, 2013, respectively. | ||||||||||
Under the percentage of completion method, revenue is recognized as work on a contract progresses. For each contractual arrangement that qualifies for the percentage of completion method of accounting, the Company recognizes revenue, cost of sales and gross profit in the amounts that are equivalent to a percentage of the total estimated contract sales value, projected cost of sales and projected gross profit achieved upon completion of the project. This percentage is generally determined by dividing the cumulative amount of labor costs and labor converted material costs incurred to date by the sum of the cumulative costs incurred to date plus the estimated remaining costs to be incurred in order to complete the contract. Preparing these estimates is a process requiring judgment. Factors influencing these estimates include, but are not limited to, historical performance trends, inflationary trends, productivity and labor disruptions, availability of materials, claims, change orders and other factors as set forth in the Risk Factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and in Item 1A. of Part II in the Quarterly Report on Form 10-Q for the period ended March 31, 2013. In the event that the Company experienced changes in estimated revenues, cost of sales and gross profit, they would be recognized using a cumulative catch-up adjustment that recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract’s percentage of completion. | ||||||||||
We apply the percentage of completion method of accounting to agreements when the following conditions exist: | ||||||||||
•The costs are reasonably estimable. | ||||||||||
•The contract includes provisions that clearly specify the enforceable rights regarding products and services to be provided and received by the parties, the consideration to be exchanged and the manner and terms of settlement. | ||||||||||
•The customer can be expected to satisfy all obligations under the contract. | ||||||||||
•We expect to perform all of our contractual obligations. | ||||||||||
Cost of revenue for our construction-type contracts includes contract costs, such as materials and labor, and indirect costs that are attributable to contract activity. Generally, we bill our customers based on advance billing terms or completion of certain milestones. Cumulative costs and estimated earnings recognized to date in excess of cumulative billings are included in accounts receivable on the consolidated balance sheet. Cumulative billings in excess of cumulative costs and estimated earnings recognized to date are included in accounts payable and accruals on the consolidated balance sheet. | ||||||||||
We estimate the future costs that will be incurred related to sales arrangements to determine whether any arrangement will result in a loss. These costs include material, labor and overhead. Factors influencing these future costs include the availability of materials and skilled laborers. We record provisions for estimated losses on uncompleted contracts in the period in which such losses are identified. | ||||||||||
We recognize, as operating revenue, proceeds from business interruption insurance claims in the period in which the insurance company confirms that proceeds for insurance claims will be paid. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred. | ||||||||||
Fair Value Measurements | ||||||||||
Fair value, as defined in U.S. GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). U.S. GAAP classifies the inputs used to measure fair value into the following hierarchy: | ||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | |||||||||
Level 3 | Unobservable inputs for the asset or liability | |||||||||
Recurring Fair Value Measurements — Fair values of the Company’s cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and customer advance payments approximate their carrying values due to the short-term nature of these instruments. The Company’s financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||
Nonrecurring Fair Value Measurements — Fair value measurements were applied with respect to the Company’s nonfinancial assets and liabilities measured on a nonrecurring basis, which consists primarily of intangible assets, other long-lived assets and other assets acquired and liabilities assumed, including contingent consideration, related to purchased businesses in business combinations. | ||||||||||
Fair Value of Financial Instruments — Financial instruments consist principally of foreign currency derivatives, interest rate swaps, tradable emission allowances and fixed rate long-term debt. | ||||||||||
Input levels used for fair value measurements are as follows: | ||||||||||
Input | ||||||||||
Description | Disclosure | Level | Level 2 Inputs | Level 3 Inputs | ||||||
Acquired assets and liabilities | Note 3 | Level 3 | Not applicable | Income approach using projected results and weighted-average cost of capital | ||||||
Financial derivatives | Note 8 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | ||||||
Tradable emission allowances | Note 8 | Level 1 | Not applicable | Not applicable | ||||||
Long-term debt (disclosure only) | Note 10 | Level 2 | Quoted prices in markets that are not active | Not applicable | ||||||
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Standards [Abstract] | ' |
New Accounting Standards | ' |
2.New Accounting Standards | |
Effective January 1, 2013, the Company adopted FASB ASU 2012-02, Intangibles ― Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). The amendments in ASU 2012-02 are intended to reduce cost and complexity by providing an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments in ASU 2012-02 also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing an indefinite-lived intangible asset for impairment, which is equivalent to the impairment testing requirements for other long-lived assets. In accordance with the amendments in ASU 2012-02, an entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more-likely-than-not that the asset is impaired. The adoption of ASU 2012-02 did not have a material impact on the Company’s consolidated financial statements. | |
Effective January 1, 2013, the Company adopted FASB ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The amendments in ASU 2013-02 are intended to improve the transparency of reporting reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The adoption of ASU 2013-02 did not have a material impact on the Company’s consolidated financial statements. The required disclosures have been included in Note 17, Accumulated Other Comprehensive Income (Loss) (“AOCI”) of these financial statements. | |
Effective January 1, 2013, the Company adopted FASB ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). The amendments in ASU 2013-01 require an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The enhanced disclosures are intended to enable users of an entity’s financial statements to understand and evaluate the effect of master netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The adoption of ASU 2013-01 did not have a material impact on the Company’s consolidated financial statements. The required disclosures have been included in Note 8, Financial Instruments of these financial statements. | |
In February 2013 the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (“ASU 2013-04”). The amendments in ASU 2013-04 provide guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. In accordance with the amendments, an entity will measure the obligation as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors, and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in ASU 2013-04 also require an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in ASU 2013-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements that exist at the beginning of the fiscal year of adoption. The adoption of ASU 2013-04 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In March 2013 the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). The amendments in ASU 2013-05 resolve the diversity in practice in applying Subtopic 810-10, Consolidation, and Subtopic 830-30, Foreign Currency Matters, when a reporting entity ceases to have a controlling financial interest in a subsidiary within a foreign entity. The amendments in ASU 2013-05 require the reporting entity to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary resided. For an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment, if significant influence is retained. Additionally, the amendments clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity; and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (step acquisition). The amendments in ASU 2013-05 are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. The adoption of ASU 2013-05 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2013 the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting (“ASU 2013-07”). The amendments in ASU 2013-07 clarify when an entity should apply the liquidation basis of accounting and provide principles for the recognition and measurement of associated assets and liabilities. In accordance with the amendments, the liquidation basis is used when liquidation is imminent. Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces. The amendments in ASU 2013-07 are effective prospectively for entities that determine liquidation is imminent for reporting periods beginning after December 15, 2013. The adoption of ASU 2013-07 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In July 2013 the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2013-10”). The amendments in ASU 2013-10 permit the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes in addition to U.S. Treasury rates and the London Interbank Offered Rate. The update also removes the restriction on using different benchmark rates for similar hedges. The amendments in ASU 2013-10 are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In July 2013 the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The amendments in ASU 2013-11 clarify 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 if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in ASU 2013-11 are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. | |
Acquisitions_And_Other_Investm
Acquisitions And Other Investments | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Acquisitons And Other Investments [Abstract] | ' | |||
Acquisitions And Other Investments | ' | |||
3. Acquisitions and Other Investments | ||||
Acquisitions | ||||
On January 4, 2012, the Company acquired Synchrony, Inc. (“Synchrony”), a technology development company with a portfolio of technologies and products including active magnetic bearings, low power, high speed motors and generators, and power electronics for clean, efficient and reliable rotating machinery. Founded in 1993, Synchrony is headquartered in Roanoke County, Virginia, where it operates an ISO 9001 certified production facility, in-house test cells for high-speed machinery, a model shop for prototype fabrication and assembly and an on-site software integration laboratory. Pursuant to the terms of the acquisition agreement, the Company acquired Synchrony for approximately $48.8, net of cash acquired, at which time Synchrony became a 100%-owned indirect subsidiary of the Company. The acquisition gives the Company the ability to integrate Synchrony’s active magnetic bearing capability into its product development process and to offer oil-free solutions in high speed rotating equipment applications, the benefits of which include reduced footprint and weight of the application and more environmentally-friendly applications. The agreement included the potential for additional contingent consideration of up to a maximum of $10.0 based on technical milestones and business performance. As of September 30, 2013, the Company had made all contractually required contingent consideration payments totaling $4.7 to the sellers of Synchrony. | ||||
Goodwill from the Synchrony acquisition principally resulted from expected synergies from combining the operations of the acquired business and the Company. The amortization of goodwill related to the acquisition of Synchrony is not deductible for income tax purposes. | ||||
The acquisition price of Synchrony in 2012 was allocated to the fair values of assets acquired and liabilities assumed as follows: | ||||
2012 | ||||
Cash and cash equivalents | $ | 0.1 | ||
Accounts receivable | 2.1 | |||
Inventory | 1.5 | |||
Prepaid expenses | 0.1 | |||
Total current assets | 3.8 | |||
Property, plant and equipment | 2.2 | |||
Amortizable intangible assets | 22.9 | |||
Goodwill | 26.3 | |||
Other assets | 0.6 | |||
Total assets acquired | 55.8 | |||
Accounts payable and accruals | 2.6 | |||
Total liabilities assumed | 2.6 | |||
Purchase price | 53.2 | |||
Fair value of contingent consideration (non-cash) | -4.3 | |||
Cash acquired | -0.1 | |||
Cash paid | $ | 48.8 | ||
Intangible assets from the Synchrony acquisition consist of existing technology, customer relationships, trade names and non-compete agreements. | ||||
Pro forma financial information for the Synchrony acquisition, assuming it occurred at the beginning of 2011, has not been presented because the effect on our financial results was not considered material. The financial results of Synchrony have been included in our consolidated financial results from the date of acquisition and have been incorporated into the Company’s existing new units and aftermarket parts and services segments. | ||||
Other Investments | ||||
On June 28, 2013, the Company and Apex Compressed Air Energy Storage, LLC (“APEX”) formed Bethel Holdco, LLC (“Bethel”) to develop a 317 megawatt compressed air energy storage (“CAES”) facility to be constructed in the north zone of Texas. The Company will manufacture and supply the compression trains, expansion trains, balance of plant process equipment and installation, commissioning, start-up and on-site testing services to a subsidiary of Bethel. The Company contributed $5.0 in cash in exchange for an 11.1% ownership interest in Bethel. The remaining 88.9% interest is held by APEX. The Company has certain rights, but no obligations, to make additional capital contributions to Bethel. In connection with its investment in Bethel, the Company received an option to sell all of its initial ownership interests in Bethel to APEX at such time on or after the second anniversary of the CAES facility achieving commercial operation that Bethel has a net positive amount of available cash to distribute to its members for a trailing twelve-month period. The sale price under the option is the Company’s purchase price for the Bethel interests. The investment in APEX is being accounted for under the equity method of accounting, and the amount of the investment recorded in other noncurrent assets on the consolidated balance sheet is $5.0 at September 30, 2013. | ||||
In February 2011, the Company entered into an agreement to acquire a noncontrolling interest in Echogen Power Systems, LLC (“Echogen”), a privately-held technology company that is developing and commercializing power generation systems that harness waste heat for power and cooling applications. The Company also received an option to acquire the outstanding shares of Echogen, which expired unexercised on February 14, 2013, and certain broad license rights in certain of the Company’s key markets. The Company will pay Echogen a royalty based on future equipment sales in these markets. Minimum royalties of $6.0 must be paid in the first five years of commercialization, regardless of the amount of revenues generated, or the license will terminate. As of September 30, 2013, the Company had invested a total of $23.0 for a 35.5% noncontrolling interest in Echogen. In determining whether the Company should consolidate Echogen, the Company considered that its board participation, ownership interest and the option to acquire would not give the Company the power to direct the activities of Echogen and, consequently, would not result in the Company being the primary beneficiary. The investment in Echogen is being accounted for under the equity method of accounting, and the amount of the investment recorded in other noncurrent assets on the consolidated balance sheet is $17.9 at September 30, 2013. | ||||
In April 2009, the Company and Al Rushaid Petroleum Investment Company (“ARPIC”) executed a Business Venture Agreement to form a joint venture, Dresser-Rand Arabia LLC (“D-R Arabia”). D-R Arabia executes manufacturing, repair, and other services, and provides technical expertise and training in the Kingdom of Saudi Arabia. The Company and ARPIC each own approximately 50% of D-R Arabia. In determining whether the Company should consolidate D-R Arabia, the Company considered that its ownership and board participation would give the Company the ability to direct the activities of D-R Arabia, which would result in the Company being the primary beneficiary. Consequently, D-R Arabia is consolidated in the financial results of the Company. | ||||
In 2008, the Company entered into an agreement by which it acquired a noncontrolling interest in Ramgen Power Systems, LLC (“Ramgen”), a privately-held company that is developing compressor technology that applies proven supersonic aircraft technology to ground-based air and gas compressors. In addition to receiving a noncontrolling interest, the Company received an option to acquire the business of Ramgen at a price of $25.0 and a royalty commitment. The option is exercisable at any time through November 10, 2014. The Company has made investments totaling $33.5, which have resulted in an aggregate noncontrolling interest of 41.5% at September 30, 2013. The Company’s maximum exposure to loss on its investment in Ramgen is limited to amounts invested plus any amounts the Company may choose to invest in the future. In determining whether the Company should consolidate Ramgen, the Company considered that its board participation, ownership interest and the option to acquire would not give the Company the power to direct the activities of Ramgen and, consequently, would not result in the Company being the primary beneficiary. The investment in Ramgen is being accounted for under the equity method of accounting, and the amount of the investment recorded in other noncurrent assets on the consolidated balance sheet is $28.8 at September 30, 2013. | ||||
Costs_And_Estimated_Earnings_I
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts [Abstract] | ' | |||||||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | ' | |||||||
4.Costs and Estimated Earnings on Uncompleted Contracts | ||||||||
Costs and estimated earnings on uncompleted contracts were as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Costs incurred on uncompleted contracts | $ | 165.0 | $ | 35.0 | ||||
Estimated earnings | 41.9 | 15.5 | ||||||
206.9 | 50.5 | |||||||
Less: billings to date | -93.4 | -33.4 | ||||||
$ | 113.5 | $ | 17.1 | |||||
Costs and estimated earnings in excess of billings | $ | 127.8 | $ | 17.1 | ||||
Billings in excess of costs and estimated earnings | -14.3 | - | ||||||
$ | 113.5 | $ | 17.1 | |||||
Intangible_Assets_And_Goodwill
Intangible Assets And Goodwill | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Intangible Assets And Goodwill [Abstract] | ' | ||||||||||||||
Intangible Assets And Goodwill | ' | ||||||||||||||
5.Intangible Assets and Goodwill | |||||||||||||||
The following table sets forth the weighted-average useful life, gross amount and accumulated amortization of intangible assets: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 119.6 | $ | 23.5 | 39 years | $ | 119.0 | $ | 20.9 | ||||||
Customer relationships | 331.9 | 75.8 | 32 years | 331.7 | 65.9 | ||||||||||
Non-compete agreement | 5.5 | 4.7 | 3 years | 5.4 | 3.8 | ||||||||||
Existing technology | 160.6 | 53.5 | 23 years | 161.6 | 48.0 | ||||||||||
Contracts and purchase agreements | 10.6 | 1.3 | 11 years | 11.1 | 1.0 | ||||||||||
Software | 30.6 | 27.2 | 10 years | 30.6 | 25.0 | ||||||||||
In-process research and development | 12.4 | 0.2 | 10 years | 12.1 | - | ||||||||||
Total amortizable intangible assets | $ | 671.2 | $ | 186.2 | $ | 671.5 | $ | 164.6 | |||||||
Intangible asset amortization expense was $7.1 and $21.7 for the three and nine months ended September 30, 2013, respectively, and $7.7 and $22.3 for the three and nine months ended September 30, 2012, respectively, and is estimated to be $7.3 for the remainder of fiscal year 2013. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: $28.0 in 2014, $24.2 in 2015, $23.6 in 2016, $23.6 in 2017 and $23.5 in 2018. | |||||||||||||||
The Company had no goodwill impairments for the nine months ended September 30, 2013, and the year ended December 31, 2012. The following table represents the changes in goodwill in total and by segment (see Note 15 for additional segment information): | |||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
Balance, December 31, 2012 | $ | 476.7 | $ | 434.6 | $ | 911.3 | |||||||||
Foreign currency adjustments | 5.4 | 1.1 | 6.5 | ||||||||||||
Balance, September 30, 2013 | $ | 482.1 | $ | 435.7 | $ | 917.8 | |||||||||
Inventories_Net
Inventories, Net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories, net | ' | |||||||
6. Inventories, net | ||||||||
Inventories were as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 66.9 | $ | 59.3 | ||||
Finished parts | 244.2 | 203.1 | ||||||
Work-in-process | 816.8 | 707.9 | ||||||
1,127.9 | 970.3 | |||||||
Less: progress payments | -416.8 | -417.8 | ||||||
Inventories, net | $ | 711.1 | $ | 552.5 | ||||
Finished parts may be used in production or sold to customers. Progress payments represent payments from clients based on milestone completion schedules. Any payments received in excess of inventory investment are classified as “Customer Advance Payments” in the current liabilities section of the consolidated balance sheet. Progress payments to suppliers are included in work-in-process and were $122.7 and $101.1 at September 30, 2013, and December 31, 2012, respectively. The total allowance for obsolescence for slow-moving inventory for all categories of inventory was $31.0 and $31.6 at September 30, 2013, and December 31, 2012, respectively. | ||||||||
Property_Plant_And_Equipment
Property, Plant And Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property Plant And Equipment [Abstract] | ' | |||||||
Property, Plant And Equipment | ' | |||||||
7. Property, plant and equipment | ||||||||
Property, plant and equipment were as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Cost: | ||||||||
Land | $ | 30.0 | $ | 31.0 | ||||
Buildings and improvements | 234.7 | 213.2 | ||||||
Machinery and equipment | 509.0 | 484.1 | ||||||
773.7 | 728.3 | |||||||
Less: accumulated depreciation | -305.5 | -261.4 | ||||||
Property, plant and equipment, net | $ | 468.2 | $ | 466.9 | ||||
Depreciation expense was $14.1 and $45.4 for the three and nine months ended September 30, 2013, respectively, and $13.7 and $41.9 for the three and nine months ended September 30, 2012, respectively. | ||||||||
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments [Abstract] | ' | |||||||
Financial Instruments | ' | |||||||
8. Financial Instruments (€ in millions) | ||||||||
The Company manages exposure to changes in foreign currency exchange rates and interest rates through its normal operating and financing activities as well as through the use of financial instruments. | ||||||||
The purpose of the Company’s hedging activities is to mitigate the economic impact of changes in foreign currency exchange rates and interest rates. The Company attempts to hedge transaction exposures through natural offsets. To the extent that this is not practicable, the Company may enter into forward exchange contracts or interest rate swaps. Major exposure areas considered for hedging include foreign currency denominated receivables and payables, firm committed transactions, forecast sales and purchases and variable interest rates. | ||||||||
The Company has entered into an interest rate swap agreement to minimize the economic impact of unexpected fluctuations in interest rates on the lease of its compressor testing facility in France. The interest rate swap has a notional amount of €18.0 (approximately $24.3) and effectively converts substantially the entire interest component of the lease from a variable rate of interest to a fixed rate of interest of approximately 3.87% per annum. The interest rate swap has been designated as a cash flow hedge for accounting purposes, and unrealized gains and losses are recognized in other comprehensive income. The fair value of the interest rate swap at September 30, 2013, was $0.8 and the related unrealized gain for the three and nine months ended September 30, 2013, was $0.0 and $0.2, respectively. | ||||||||
None of the Company’s other derivative financial instruments are designated as hedges for accounting purposes. Changes in the fair values of derivatives that are not designated as hedges for accounting purposes are immediately recognized in the consolidated statement of income in other (expense) income, net. | ||||||||
All of the Company’s foreign currency derivative contracts are subject to master netting arrangements. These arrangements provide for the option to settle contracts on a net basis when they settle on the same day and the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. The Company has elected to present the derivative contracts on a gross basis in the consolidated balance sheet. The Company recognizes derivatives in prepaid expenses and other, or accounts payable and accruals, as appropriate, on the consolidated balance sheet and measures them at fair value each reporting period. Had the Company presented its derivative contracts on a net basis, the amounts recorded in the consolidated balance sheet would not be materially different from the presentation in the table below. In addition, the Company does not have any cash collateral due under such arrangements. | ||||||||
The following table sets forth the Company’s foreign currency exchange contracts that were accounted for at fair value on a recurring basis: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Foreign currency exchange contracts assets | $ | 5.2 | $ | 8.5 | ||||
Foreign currency exchange contracts liabilities | $ | 18.5 | $ | 3.8 | ||||
The notional amount for the forward exchange contracts outstanding as of September 30, 2013, and December 31, 2012, was $757.6 and $576.6, respectively. The net foreign currency losses recognized for forward currency contracts were $8.1 and $17.4 for the three and nine months ended September 30, 2013, respectively, compared to net foreign currency gains of $3.2 and $10.3 for the three and nine months ended September 30, 2012, respectively. | ||||||||
Certain countries in which the Company operates have emission reduction programs under which the Company receives tradable emission allowances. To the extent that actual emissions exceed tradable emission allowances, the Company records a liability at fair value. Changes in the fair value of this liability are recorded in other (expense) income, net. The fair value of the liability from the shortfall of tradable emission allowances was $0.5 and $0.8 at September 30, 2013, and December 31, 2012, respectively. | ||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
9.Income taxes | |
We operate in numerous countries and tax jurisdictions around the world and there is no assurance that future tax audits will not result in significant tax adjustments. Management believes that it has provided adequate estimated liabilities for taxes based on its understanding of the tax laws and regulations in those countries. | |
Our estimated income tax provisions for the three and nine months ended September 30, 2013 and 2012, result in effective rates that differ from the U.S. federal statutory rate of 35% principally because of different tax rates in foreign tax jurisdictions and certain deductions and credits allowable for income tax purposes, partially offset by state and local income taxes and valuation allowances on net operating loss carryforwards that more-likely-than-not will not be realized. We will adjust the valuation allowances in the future when it becomes more-likely-than-not that the benefits of deferred tax assets will or will not be realized. | |
On January 2, 2013, the American Taxpayer Relief Act (“ATRA”) of 2012 was signed into law. Some of the provisions were retroactive to January 1, 2012, including the exclusion from U.S. federal taxable income of certain interest, dividends, rents, and royalty income of foreign affiliates, as well as the tax benefits of the credits associated with that income and an extension of the research and experimentation credit. As required by U.S. GAAP, a $4.4 benefit was reflected in the three months ended March 31, 2013 as a discrete event. Furthermore, no benefits were reflected in 2012 and the current benefits are being reflected in 2013, affecting the comparability of the 2012 and 2013 effective tax rates. | |
During the three months ended September 30, 2013, our Luxembourg subsidiary declared a dividend from current earnings to the U.S. parent company not to exceed $49.0. The dividend will be paid before the end of 2013 and will generate U.S. foreign tax credits in excess of the statutory U.S. tax rate of approximately $11.0. The impact of these credits and related reserves on the effective tax rate for the three and nine months ended September 30, 2013, is a benefit of 7.8% and 2.7%, respectively. | |
The Company has reevaluated an uncertain tax position for all years in which the position had been taken related to its French operations. Based on its evaluation of the relevant laws, the Company had originally determined that it was more likely than not that it would prevail on the position. However, based on more recent positions taken by the French tax authorities, the Company no longer believes it is more likely than not that it will prevail. Consequently, an additional liability for uncertain tax positions of approximately $2.3 was recorded for all periods which the position had been taken. The additional liability impacted the effective tax rate for the three and nine months ended September 30, 2013, by 4.2% and 1.4%, respectively. | |
As a result of the devaluation of the Venezuelan bolivar on February 8, 2013, the Company recorded a nondeductible foreign exchange loss in its Consolidated Statement of Income of approximately $3.6 for the nine months ended September 30, 2013. Had this amount been deductible, our effective tax rate would have been 0.5 percentage points lower for the nine months ended September 30, 2013. The devaluation of the Venezuelan bolivar had no impact on our effective tax rate for the three months ended September 30, 2013. | |
Certain foreign subsidiaries in Brazil and India are operating under tax holiday arrangements that will expire during 2013 and 2015, respectively, subject to potential extensions. For the three and nine months ended September 30, 2013, the impact of these tax holiday arrangements lowered income tax expense by $1.9 ($0.02 per diluted share) and $5.2 ($0.07 per diluted share), respectively, and by $1.3 ($0.02 per diluted share) and $2.7 ($0.04 per diluted share) for the three and nine months ended September 30, 2012, respectively. | |
Except for the dividends of 2013 earnings declared by our Luxembourg subsidiary described above, management has decided to permanently reinvest the unremitted earnings of the Company’s foreign subsidiaries and, therefore, no provision for U.S. federal or state income taxes has been provided on those foreign earnings. If any permanently reinvested foreign earnings are distributed, in the form of dividends or otherwise, the Company could be subject to additional U.S. income taxes (subject to adjustment for foreign tax credits), as well as withholding taxes imposed by certain foreign jurisdictions. | |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
10.Long-Term Debt | |||||||||||||
Long-term debt consists of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Amended Credit Facility | $ | 907.7 | $ 615.6 | ||||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | 16.0 | - | |||||||||||
Other indebtedness | 40.8 | 60.2 | |||||||||||
Total debt | 1,339.5 | 1,050.8 | |||||||||||
Less: current portion | -43.6 | -35.9 | |||||||||||
Total long-term debt | $ | 1,295.9 | 1,014.9 | ||||||||||
Amended Credit Facility | |||||||||||||
On September 30, 2013, the Company and its indirect, wholly-owned subsidiary, Guascor, amended and extended its committed credit agreement (the “Amended Credit Facility”) with a syndicate of lenders, extending the final maturity date for the credit facility to September 30, 2018, and increasing the $700.0 U.S. dollar revolving credit facility by $400.0 to $1,100.0. | |||||||||||||
The Amended Credit Facility is comprised of revolving credit facilities, reflecting the newly increased $1,100.0 commitment and the existing €50.0 commitment, and a term loan facility comprised of tranche A and tranche B term loans denominated in U.S. dollars and euro, respectively. The term loans are subject to amortization in quarterly installments equal to $2.0, with respect to the tranche A term loans, and $3.0, with respect to the tranche B term loans. Any principal amount outstanding under the revolving credit facility and term loan facility is due and payable in full at maturity on September 30, 2018. At September 30, 2013, total outstanding borrowings under the Amended Credit Facility amounted to $907.7, of which $609.6 was outstanding under the revolving credit facilities and $298.1 was outstanding under the term loan facility. The Company had issued $99.3 in letters of credit under the revolving credit facility at September 30, 2013. In addition to these letters of credit, $235.0 of letters of credit and bank guarantees was outstanding at September 30, 2013, which were issued by banks offering uncommitted lines of credit. | |||||||||||||
The Amended Credit Facility reflects a 0.25% lower applicable margin compared to the original facility for revolving and term loans. The rate setting mechanisms for these decreased by 0.25% and bear interest, at the Company’s election, at either (a) a rate equal to an applicable margin ranging from 1.75% to 2.50%, depending on the Company’s leverage ratio, plus a LIBOR rate or (b) a rate equal to an applicable margin ranging from 0.75% to 1.50%, depending on the Company’s leverage ratio, plus a base rate as defined in the facility. | |||||||||||||
In addition to paying interest on outstanding principal under the Amended Credit Facility, the Company is required to pay a commitment fee under the revolving credit facility for unutilized commitments, and fees for outstanding performance and financial letters of credit. These fee amounts depend on the Company’s leverage ratio and range from 0.375% to 0.50%, 0.95% to 1.40%, and 1.75% to 2.50% per annum, respectively, for the preceding fee categories. | |||||||||||||
The Amended Credit Facility requires that certain net proceeds related to asset sales, to the extent not reinvested in assets used or useful in the Company’s business within one year, be used to pay down the outstanding balance. The Company may voluntarily prepay outstanding loans under the Amended Credit Facility at any time without premium or penalty, other than customary breakage costs. The Amended Credit Facility contains normal and customary covenants, including the provision of periodic financial information, financial covenants (including a maximum leverage ratio and a minimum interest coverage ratio), and certain other limitations governing, among others, such matters as the Company’s ability to incur additional debt, grant liens on assets, make investments, acquisitions or mergers, dispose of assets, make capital expenditures, engage in transactions with affiliates, make amendments to documentation for the Company’s 6 ½% Senior Subordinated Notes that would be materially adverse to lenders and pay dividends and distributions or repurchase capital stock. The Amended Credit Facility also provides for customary events of default. The Company was in compliance with the Amended Credit Facility debt covenants at September 30, 2013. | |||||||||||||
Bank Overdraft Facility | |||||||||||||
The Company is party to a $20.0 bank overdraft facility which bears interest at a maximum of the bank’s base rate, plus 2.5% per annum. | |||||||||||||
Senior Subordinated Notes | |||||||||||||
The carrying and fair values of the Company’s Senior Subordinated Notes were as follows: | |||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 398.0 | $ | 375.0 | $ | 399.1 | |||||
The carrying values of all of the Company’s other long-term debt materially approximate their fair values. | |||||||||||||
Pension_Plans
Pension Plans | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Pension Plans [Abstract] | ' | ||||||||||||
Pension Plans | ' | ||||||||||||
11. Pension Plans | |||||||||||||
The components of net pension expense were as follows: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 2.3 | $ | 2.2 | $ | 7.1 | $ | 6.8 | |||||
Interest cost | 4.5 | 4.9 | 13.4 | 14.6 | |||||||||
Expected return on plan assets | -5.8 | -5.4 | -17.2 | -16.3 | |||||||||
Amortization of net actuarial loss | 1.9 | 1.9 | 6.1 | 5.8 | |||||||||
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.2 | |||||||||
Net pension expense | $ | 3.0 | $ | 3.7 | $ | 9.5 | $ | 11.1 | |||||
The fair value measurement of certain plan assets (approximately 8.4% of plan assets) is derived using significant unobservable inputs (Level 3). Level 3 assets consist of annuities held as investments within the plan that cover a set amount of liabilities and the effect of changes in the values of the related assets and liabilities are generally offsetting. Level 3 assets also consist of annuities that require contribution premiums to fund ongoing liabilities as required by foreign governmental regulations. Annuities are valued using standard actuarial calculations such as discount rates, mortality rates and participant population. | |||||||||||||
The Company made pension contributions of $7.2 and $17.3, respectively, during the three and nine months ended September 30, 2013, and $3.5 and $19.0, respectively, during the three and nine months ended September 30, 2012. | |||||||||||||
PostRetirement_Benefits_Other_
Post-Retirement Benefits Other Than Pensions | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Post-Retiements Benefits Other Than Pensions [Abstract] | ' | ||||||||||||
Post-Retirement Benefits Other Than Pensions | ' | ||||||||||||
12.Post-Retirement Benefits Other than Pensions | |||||||||||||
The components of the net post-retirement benefit expense were as follows: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Interest cost | $ | 0.1 | $ | 0.2 | $ | 0.5 | $ | 0.6 | |||||
Amortization of net actuarial loss | 0.2 | 0.3 | 0.4 | 0.8 | |||||||||
Net post-retirement benefits expense | $ | 0.3 | $ | 0.5 | $ | 0.9 | $ | 1.4 | |||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
13.Commitments and Contingencies (£, € and R$ in millions) | |
Legal Proceedings | |
We are involved in various litigation, claims and administrative proceedings arising in the normal course of business. Amounts recorded for identified contingent liabilities are estimates, which are regularly reviewed and adjusted to reflect additional information when it becomes available. We are indemnified by our former owner, Ingersoll Rand Company Limited, for certain of these matters as part of Ingersoll Rand’s sale of the Company and by the sellers of Grupo Guascor for certain of these matters in connection with our acquisition of Grupo Guascor, S.L. (“Guascor”) in May 2011. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular period’s results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities and the benefit of the indemnities from Ingersoll Rand and the sellers of Guascor, management believes that any future accruals with respect to these currently known contingencies would not have a material effect on the financial condition, liquidity or cash flows of the Company. | |
Painted Post Labor Litigation | |
In November 2007, Local 313 of IUE-CWA, the union that represents certain employees at the Company’s Painted Post, New York, facility (the “IUE”) made an offer to have its striking members return to work under the terms of the previously expired union agreement. The Company rejected that offer and locked out these represented employees. Approximately one week later, after reaching an impasse in negotiations, the Company exercised its right to implement the terms of its last contract offer, ended the lockout, and the employees represented by the IUE agreed to return to work under the implemented terms. Subsequently, the IUE filed several unfair labor practice (“ULP”) charges against the Company with Region 3 of the National Labor Relations Board (“NLRB”), asserting multiple allegations arising from the protracted labor dispute, its termination, contract negotiations and related matters. | |
Region 3 of the NLRB decided to proceed to complaint on only one-third of the ULP allegations asserted by the IUE, while the remaining claims were dismissed. Notably, the NLRB found that many of the critical aspects of the Company’s negotiations with the IUE were handled appropriately, including the NLRB’s findings that the union’s strike was not an unfair labor practice strike and the Company’s declaration of impasse and its unilateral implementation of its last offer were lawful. The Company, therefore, continued to operate under a more contemporary and competitive implemented contract offer while contract negotiations with the IUE continued in 2008 and 2009. In November 2009, a collective bargaining agreement between the IUE and the Company was ratified, which agreement has been renegotiated and extended to March 2016. | |
The claims that proceeded to complaint before the NLRB included the Company’s handling of the one week lockout, the negotiation of the recall process used to return employees to the facility after reaching impasse and lifting the lockout, and the termination of two employees who engaged in misconduct on the picket line during the strike. The trial of this matter took place before a NLRB Administrative Law Judge (the “ALJ”) in Elmira and Painted Post, New York, during the summer of 2009. On January 29, 2010, the ALJ issued his decision in which he found in favor of the union on some issues and upheld the Company’s position on others. The Company timely appealed the ALJ’s rulings against the Company to the NLRB in Washington, D.C. On August 6, 2012, the NLRB affirmed the ALJ’s rulings. The Company timely appealed the matter to the U.S. Fifth Circuit Court of Appeals, which stayed the proceedings in July 2013 pending a ruling by the U.S. Supreme Court on a constitutional issue, in an unrelated case, that is also in controversy in the Company’s appeal. The Company continues to believe it complied with the law and that it will ultimately prevail with respect to these ULP allegations. The litigation process, including further appeals, could reasonably take one to two years to resolve with finality. Given the broad scope of possible remedies that may apply pursuant to conflicting case law, the Company cannot estimate the range of loss, if any, at this time. Although the ultimate outcome of these matters cannot be ascertained at this time, it is the opinion of management that the resolution of such matters will not have a material adverse effect on the Company’s financial condition. | |
United Kingdom (“UK”) Pension Plan | |
During July 2009, the Company received notification from the current plan trustees of one of its subsidiaries' pension plans in the UK that sex equalization under the plan may have been achieved later than originally expected. The third-party trustee at the time action was taken believes that it had taken the appropriate steps to properly amend the plan as originally expected. In June 2012, interpretation proceedings commenced in the English High Court to determine whether sex equalization of the plan was correctly implemented. The Company has accrued £3.0 (approximately $4.9) to address its estimate of contingent exposure regarding this dispute over potential unequal treatment of men and women under the pension plan related to a period in the 1990s and is exploring its rights against others. Based on the Company’s assessment of the exposure, the Company believes any liability that may be in excess of amounts recorded would not be material. | |
Enviroil Italia, S.p.A. (“Enviroil”) Litigation | |
In March 1998, Enviroil, which became an indirect wholly-owned subsidiary of the Company in May 2011, in conjunction with the acquisition of Grupo Guascor, executed an agreement with the Italian Ministry of Economic Development (“MISE”) to construct a plant in Gela, Italy, for the production of heating gas oil from exhausted oil. In August 2007, following the completion of construction and upon commencement of the operation of the plant, an accident occurred and the plant’s operations were discontinued. In November 2008, Enviroil proposed converting the plant into a facility for the manufacturing of solar panels, and this proposal was rejected by MISE. In January 2010, MISE issued a decree declaring Enviroil in default of the agreement and ordering Enviroil to reimburse MISE the approximately €7.0 (approximately $9.5) paid to Enviroil under the agreement, as well as sanctions, interest and other related costs. Enviroil initiated a proceeding in the Court of Caltanissetta requesting an order to suspend the effect of the MISE decree primarily based on Enviroil’s proposed conversion of the plant. The Court of Caltanissetta rejected Enviroil’s request by order issued in October 2010, and following an appeal by Enviroil, issued a second order in December 2010, denying the appeal. In June 2010, while the proceedings in the Court of Caltanissetta were still pending, Enviroil also initiated proceedings before the Lazio Administrative Court requesting the revocation of the MISE decree. In March 2011, Enviroil appealed the decree directly with MISE through an administrative procedure, and engaged in settlement negotiations with MISE. The Lazio Administrative Court held a hearing on this matter in October 2012 and issued a decision in November 2012 revoking the MISE decree issued in January 2010 and ordering MISE to reconsider the conversion proposal submitted by Enviroil in November 2008. Enviroil renewed settlement negotiations with MISE in October 2012, which concluded upon the parties reaching a settlement and entering into a settlement agreement in September 2013. Pursuant to this settlement agreement, which is subject to registration by the Court on Conti, MISE agreed to waive sanctions, interest and other related costs, which the Company had previously accrued, in exchange for which Enviroil will pay MISE approximately €7.3 (approximately $9.9) in satisfaction of all of MISE’s outstanding claims. | |
The Company has recorded an accrual of approximately €7.3 (approximately $9.9), which is the Company’s estimate of its aggregate exposure to loss associated with this matter. Based on the Company’s assessment of the exposure, the Company believes any liability that may be in excess of amounts recorded would not be material. Moreover, the Company has a claim against the sellers of Grupo Guascor. | |
Banco Santos Litigation | |
In July 2004, Guascor SA and Jaguari Energetica SA, subsidiaries of Guascor (collectively, the “GG Entities”), entered into an agreement (the “BNDES Agreement”) with the Bank of National Economic and Social Development (“BNDES”) for the construction of a power plant in Rio Grande do Sul, Brazil (the “Project”). Pursuant to the terms of the BNDES Agreement, in August 2004, the GG Entities entered into a separate agreement (the “Banco Santos Agreement”) with Banco Santos, a Brazilian bank previously based in Sao Paulo, Brazil. Per the terms of the Banco Santos Agreement, Banco Santos and the GG Entities agreed that: (i) in exchange for a fee paid by the GG Entities, Banco Santos would establish a reserve in favor of the GG Entities in the amount of R$3.6 (approximately $1.6) (the “Reserve”) to ensure that funds for a twelve month term would be available (if needed) by the GG Entities’ to fund their performance obligations under the BNDES Agreement; (ii) the GG Entities would issue twelve banking credit notes (the “Notes”) to Banco Santos (one for each of the twelve months), under which Notes the GG Entities would be obligated to make a payment to Banco Santos if the GG Entities used the applicable portion of the Reserve associated with a Note; and (iii) no portion of the Reserve would be invested by Banco Santos in any high risk investments. The GG Entities completed the Project in December 2006 and fulfilled their obligations under the BNDES Agreement, without using any portion of the Reserve. Accordingly, we believe that, pursuant to the terms of the Banco Santos Agreement, none of the Notes securing the Reserve became due or payable by the GG Entities to Banco Santos. | |
In September 2004, Banco Santos, without the knowledge or consent of the GG Entities, transferred the Reserve to its affiliates, Santos Credit Yield (“SCY”) and Santos Credit Master (“SCM,” and together with SCY, the “BS Affiliates”). Upon the receipt of the Reserve, the BS Affiliates invested the funds in a high risk investment, resulting in the loss of the entire Reserve. In addition, concurrently with the transfer of the Reserve, Banco Santos assigned its rights in the Notes to the BS Affiliates. Shortly after the assignment of the Notes, Banco Santos declared bankruptcy. | |
The GG Entities commenced an action (the “Declaratory Action”) in the Civil Courts in the State of Sao Paulo, Brazil, in April 2005 seeking a declaratory judgment that the BS Affiliates were barred from recovering any amounts with regard to the Notes because such Notes were null and void pursuant to the terms of the Banco Santos Agreement. In the fourth quarter of 2012, the Court appointed an expert to evaluate the GG Entities’ claims and allegations. However, notwithstanding the issuance of an expert’s report that was favorable to the GG Entities, the Court denied the declaratory relief sought by the GG Entities and ordered the GG Entities to pay attorneys’ fees. The GG Entities timely appealed the adverse judgment in August 2013, which appeal is currently pending. | |
In December 2010, while the Declaratory Action was still pending, the BS Affiliates filed a separate action (the “BS Action”) in the Sao Paulo Civil Court seeking to recover from the GG Entities the amount of the Reserve. The Court stayed the BS Action in September 2011 pending a final ruling in the Declaratory Action. | |
Although we believe, based on the factual circumstances and the applicable law, that Banco Santos and the BS Affiliates violated the terms of the Banco Santos Agreement and the payment terms of the Notes, and that the GG Entities should prevail in both Declaratory Action and the BS Action, the ultimate outcome of these proceedings cannot be ascertained at this time. The Company estimates that the total aggregate exposure for damages, interest and attorneys’ fees could be up to R$37.5 (approximately $16.9). Moreover, the Company has an indemnification claim against the sellers of Guascor with regard to this matter. | |
Italian Value-Added Tax Claim | |
The Company is in litigation with the Italian tax authorities regarding value-added taxes for tax years 2005-2008 and the application of Italian and European Union laws. The Company received an adverse judgment in February 2012 for tax years 2005-2006 for approximately €4.2 ($5.7). In July 2012, the Company appealed the judgment and continues to believe that it will prevail on its position that no tax is owed. The Company estimates the total aggregate exposure for taxes, interest and penalties could be up to €10.1 ($13.7). | |
Warranties
Warranties | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Warranties [Abstract] | ' | |||||
Warranties | ' | |||||
14. Warranties | ||||||
We maintain a product warranty liability that represents estimated future claims for equipment, parts and services covered during a warranty period. A warranty liability is provided at the time of revenue recognition based on historical experience and is adjusted as required. | ||||||
The following table represents the changes in the product warranty liability: | ||||||
Nine Months Ended September 30, | ||||||
2013 | 2012 | |||||
Beginning balance | $ | 20.1 | $ | 25.6 | ||
Provision for warranties issued during period | 13.5 | 12.2 | ||||
Adjustments to warranties issued in prior periods | 1.7 | -3.3 | ||||
Payments during the period | -14.9 | -14 | ||||
Foreign currency adjustments | -0.7 | -0.2 | ||||
Ending balance | $ | 19.7 | $ | 20.3 | ||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
15.Segment Information | |||||||||||||
The Company has two reportable segments based on the engineering and production processes, and the products and services provided by each segment, as follows: | |||||||||||||
1) | New units are predominately highly engineered solutions to new requests from clients. New units also include standardized equipment such as engines and single stage steam turbines. The segment includes engineering, manufacturing, project management, packaging, testing, sales and administrative support. | ||||||||||||
2) | Aftermarket parts and services consist of support solutions for the existing population of installed equipment and the operation and maintenance of several types of energy plants. The segment includes engineering, manufacturing, project management, installation, commissioning, start-up and other field services, repairs, overhauls, refurbishment, sales and administrative support. | ||||||||||||
Unallocated amounts represent expenses and assets that cannot be assigned directly to either reportable segment because of their nature. Unallocated net expenses include certain corporate expenses and research and development expenses. Assets that are directly assigned to the two reportable segments are trade accounts receivable, net inventories and goodwill. Unallocated assets include cash, prepaid expenses and other, deferred taxes, property, plant and equipment and intangible assets. There are no significant intercompany transactions between our reportable segments. | |||||||||||||
Segment results for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues | |||||||||||||
New units | $ | 272.9 | $ | 247.5 | $ | 1,136.3 | $ | 902.6 | |||||
Aftermarket parts and services | 361.0 | 346.9 | 1,069.3 | 989.4 | |||||||||
Total revenues | $ | 633.9 | $ | 594.4 | $ | 2,205.6 | $ | 1,892.0 | |||||
Income from operations | |||||||||||||
New units | $ | 33.5 | $ | 21.1 | $ | 87.9 | $ | 68.6 | |||||
Aftermarket parts and services | 75.0 | 76.1 | 234.2 | 199.3 | |||||||||
Unallocable | -27.1 | -23.2 | -88 | -69.6 | |||||||||
Total income from operations | $ | 81.4 | $ | 74.0 | $ | 234.1 | $ | 198.3 | |||||
Depreciation and amortization | |||||||||||||
New units | $ | 8.7 | $ | 10.7 | $ | 34.0 | $ | 33.5 | |||||
Aftermarket parts and services | 12.5 | 10.7 | 33.1 | 30.7 | |||||||||
Total depreciation and amortization | $ | 21.2 | $ | 21.4 | $ | 67.1 | $ | 64.2 | |||||
Total assets by segment were as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Total assets (including goodwill) | |||||||||||||
New units | $ | 1,167.0 | $ | 898.8 | |||||||||
Aftermarket parts and services | 1,160.2 | 1,126.7 | |||||||||||
Unallocable | 1,372.3 | 1,307.5 | |||||||||||
Total assets | $ | 3,699.5 | $ | 3,333.0 | |||||||||
Incentive_StockBased_Compensat
Incentive Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2013 | |
Incentive Stock-Based Compensation Plans [Abstract] | ' |
Incentive Stock-Based Compensation Plans | ' |
16.Incentive Stock-Based Compensation Plans | |
During the nine months ended September 30, 2013, the Compensation Committee of the Company’s Board of Directors (“Compensation Committee”), and with respect to the President and Chief Executive Officer, the independent members of the Board of Directors, approved grants of options and stock appreciation rights for 226,059 shares of common stock and grants of 320,023 shares of time-vested restricted stock units to employees under the Dresser-Rand Group Inc. 2008 Stock Incentive Plan (the “2008 Plan”). Also during the nine months ended September 30, 2013, they approved the issuance of Performance Restricted Stock Units with a target grant amount of 53,036 restricted stock units. | |
The Company also granted 13,972 shares of stock to non-employee Directors in February 2013. | |
The difference between basic weighted-average shares outstanding and diluted weighted-average shares outstanding in the computation of earnings per share presented in the Consolidated Statement of Income is comprised entirely of the dilutive effect of the stock-based compensation awards described above for all periods presented. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") | ' | ||||||||||||
17.Accumulated Other Comprehensive Income (Loss) (“AOCI”) | |||||||||||||
AOCI and the changes in AOCI by component were as follows: | |||||||||||||
Foreign | Pension and | ||||||||||||
Currency | Unrealized | Other | |||||||||||
Translation | (Loss) Gain on | Postretirement | |||||||||||
Adjustments | Derivatives | Benefit Plans | Total | ||||||||||
At December 31, 2012 | $ | -51.3 | $ | -0.7 | $ | -82.7 | $ | -134.7 | |||||
Other comprehensive loss before reclassifications | -17.5 | - | - | -17.5 | |||||||||
Amounts reclassified from AOCI | - | 0.2 | 4.1 | 4.3 | |||||||||
Net current period other comprehensive (loss) income | -17.5 | 0.2 | 4.1 | -13.2 | |||||||||
At September 30, 2013 | $ | -68.8 | $ | -0.5 | $ | -78.6 | $ | -147.9 | |||||
Items reclassified out of AOCI into net income for the three and nine months ended September 30, 2013 were as follows: | |||||||||||||
Amount Reclassified From AOCI into Net Income | Affected Line Item in the | ||||||||||||
Three Months Ended | Nine Months Ended | Consolidated Statement | |||||||||||
Details About AOCI Components | 30-Sep-13 | 30-Sep-13 | of Income | ||||||||||
Unrealized gain on derivatives | $ | - | $ | -0.3 | Interest expense, net | ||||||||
- | 0.1 | Provision for income taxes | |||||||||||
$ | - | $ | -0.2 | Net of tax | |||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -2.2 | $ | -6.5 | (a) | ||||||||
0.8 | 2.4 | Provision for income taxes | |||||||||||
$ | -1.4 | $ | -4.1 | Net of tax | |||||||||
Total reclassifications, net of tax | $ | -1.4 | $ | -4.3 | Net of tax | ||||||||
(a)These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 11, Pension Plans and Note 12, Post-retirement Benefits Other than Pensions for additional information. | |||||||||||||
Significant_Concentration_Of_C
Significant Concentration Of Credit Risk | 9 Months Ended |
Sep. 30, 2013 | |
Significant Concentration Of Credit Risk [Abstract] | ' |
Significant Concentration Of Credit Risk | ' |
18. Significant Concentration of Credit Risk | |
At September 30, 2013, approximately 16.4% of the Company’s net accounts receivable was from Petroleos de Venezuela, S.A. (“PDVSA”). Historically, the Company has collected its outstanding receivables from PDVSA. The Company believes that, based on this historical experience and discussions with PDVSA, the outstanding balance is ultimately collectible. Consequently, a provision for bad debts has not been recorded for these accounts receivable. | |
Basis_Of_Presentation_Policies
Basis Of Presentation (Policies) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Basis Of Presentation [Abstract] | ' | |||||||||
Revenue Recognition | ' | |||||||||
Revenue recognition | ||||||||||
We recognize revenue when it is realized or realizable and earned. Generally, we consider revenue realized or realizable and earned when we have persuasive evidence of an arrangement, delivery of the product or service has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the client, risk of loss has transferred to the client, and either any required client acceptance has been obtained (or such provisions have lapsed) or we have objective evidence that the criteria specified in the client acceptance provisions have been satisfied. The amount of revenue related to any contingency is not recognized until the contingency is resolved. | ||||||||||
Multiple-element arrangements | ||||||||||
A substantial portion of our arrangements are multiple-element revenue arrangements or contracts, which may include any combination of designing, developing, manufacturing, modifying and commissioning complex products to customer specifications and providing services related to the performance of such products. These contracts often take up to fifteen months to complete. Provided that the separate deliverables have value to the client on a stand-alone basis, we use the selling price hierarchy described below to determine how to separate multiple-element revenue arrangements into separate units of accounting and how to allocate the arrangement consideration among those separate units of accounting: | ||||||||||
•Vendor-specific objective evidence. | ||||||||||
•Third-party evidence if vendor-specific objective evidence is not available. | ||||||||||
•Estimated selling price determined in the same manner as that used to determine the price at which we sell the deliverables on a stand-alone basis if neither vendor-specific objective evidence nor third-party evidence is available. | ||||||||||
Our sales arrangements do not include a general right of return of the delivered unit(s). If it is determined that the separate deliverables do not have value on a stand-alone basis, the entire arrangement is accounted for as one unit of accounting, which results in revenue being recognized when the last unit is delivered. | ||||||||||
Percentage of completion | ||||||||||
Near the end of 2012 we began entering into certain large contracts with expanded construction-type scope and risk. These contractual arrangements have a scope of activity that differs in substance from the scope of deliverables found in our traditional sales agreements. For these types of contracts, we apply the guidelines of ASC 605-35 – Construction-Type and Production-Type Contracts and utilize the percentage of completion method of revenue recognition. Non-traditional scope arrangements include activities typically performed by engineering, procurement and construction contractors. Our clients typically require us to act as a general construction contractor for all or a portion of these projects. These arrangements are often executed in the form of turnkey contracts, where the Company designs, engineers, manufactures, constructs, transports, erects and hands over to the client at the designated destination point the fully commissioned and tested module or facility, which is ready for operation. Percentage of completion revenue represents approximately 6.7% and 7.1% of consolidated revenues for the three and nine months ended September 30, 2013, respectively. | ||||||||||
Under the percentage of completion method, revenue is recognized as work on a contract progresses. For each contractual arrangement that qualifies for the percentage of completion method of accounting, the Company recognizes revenue, cost of sales and gross profit in the amounts that are equivalent to a percentage of the total estimated contract sales value, projected cost of sales and projected gross profit achieved upon completion of the project. This percentage is generally determined by dividing the cumulative amount of labor costs and labor converted material costs incurred to date by the sum of the cumulative costs incurred to date plus the estimated remaining costs to be incurred in order to complete the contract. Preparing these estimates is a process requiring judgment. Factors influencing these estimates include, but are not limited to, historical performance trends, inflationary trends, productivity and labor disruptions, availability of materials, claims, change orders and other factors as set forth in the Risk Factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and in Item 1A. of Part II in the Quarterly Report on Form 10-Q for the period ended March 31, 2013. In the event that the Company experienced changes in estimated revenues, cost of sales and gross profit, they would be recognized using a cumulative catch-up adjustment that recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract’s percentage of completion. | ||||||||||
We apply the percentage of completion method of accounting to agreements when the following conditions exist: | ||||||||||
•The costs are reasonably estimable. | ||||||||||
•The contract includes provisions that clearly specify the enforceable rights regarding products and services to be provided and received by the parties, the consideration to be exchanged and the manner and terms of settlement. | ||||||||||
•The customer can be expected to satisfy all obligations under the contract. | ||||||||||
•We expect to perform all of our contractual obligations. | ||||||||||
Cost of revenue for our construction-type contracts includes contract costs, such as materials and labor, and indirect costs that are attributable to contract activity. Generally, we bill our customers based on advance billing terms or completion of certain milestones. Cumulative costs and estimated earnings recognized to date in excess of cumulative billings are included in accounts receivable on the consolidated balance sheet. Cumulative billings in excess of cumulative costs and estimated earnings recognized to date are included in accounts payable and accruals on the consolidated balance sheet. | ||||||||||
We estimate the future costs that will be incurred related to sales arrangements to determine whether any arrangement will result in a loss. These costs include material, labor and overhead. Factors influencing these future costs include the availability of materials and skilled laborers. We record provisions for estimated losses on uncompleted contracts in the period in which such losses are identified. | ||||||||||
We recognize, as operating revenue, proceeds from business interruption insurance claims in the period in which the insurance company confirms that proceeds for insurance claims will be paid. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in the period that the applicable proof of loss documentation is received. Proceeds from casualty insurance settlements that are expected to be less than the carrying value of damaged assets are recognized at the time the loss is incurred. | ||||||||||
Fair Value Measurements | ' | |||||||||
Fair Value Measurements | ||||||||||
Fair value, as defined in U.S. GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). U.S. GAAP classifies the inputs used to measure fair value into the following hierarchy: | ||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | |||||||||
Level 3 | Unobservable inputs for the asset or liability | |||||||||
Recurring Fair Value Measurements — Fair values of the Company’s cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and customer advance payments approximate their carrying values due to the short-term nature of these instruments. The Company’s financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||
Nonrecurring Fair Value Measurements — Fair value measurements were applied with respect to the Company’s nonfinancial assets and liabilities measured on a nonrecurring basis, which consists primarily of intangible assets, other long-lived assets and other assets acquired and liabilities assumed, including contingent consideration, related to purchased businesses in business combinations. | ||||||||||
Fair Value of Financial Instruments — Financial instruments consist principally of foreign currency derivatives, interest rate swaps, tradable emission allowances and fixed rate long-term debt. | ||||||||||
Input levels used for fair value measurements are as follows: | ||||||||||
Input | ||||||||||
Description | Disclosure | Level | Level 2 Inputs | Level 3 Inputs | ||||||
Acquired assets and liabilities | Note 3 | Level 3 | Not applicable | Income approach using projected results and weighted-average cost of capital | ||||||
Financial derivatives | Note 8 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | ||||||
Tradable emission allowances | Note 8 | Level 1 | Not applicable | Not applicable | ||||||
Long-term debt (disclosure only) | Note 10 | Level 2 | Quoted prices in markets that are not active | Not applicable | ||||||
Acquisitions_And_Other_Investm1
Acquisitions And Other Investments (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Acquisitons And Other Investments [Abstract] | ' | |||
Acquisition Price Allocated To Fair Values Of Assets Acquired And Liabilities Assumed | ' | |||
2012 | ||||
Cash and cash equivalents | $ | 0.1 | ||
Accounts receivable | 2.1 | |||
Inventory | 1.5 | |||
Prepaid expenses | 0.1 | |||
Total current assets | 3.8 | |||
Property, plant and equipment | 2.2 | |||
Amortizable intangible assets | 22.9 | |||
Goodwill | 26.3 | |||
Other assets | 0.6 | |||
Total assets acquired | 55.8 | |||
Accounts payable and accruals | 2.6 | |||
Total liabilities assumed | 2.6 | |||
Purchase price | 53.2 | |||
Fair value of contingent consideration (non-cash) | -4.3 | |||
Cash acquired | -0.1 | |||
Cash paid | $ | 48.8 | ||
Costs_And_Estimated_Earnings_I1
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts [Abstract] | ' | |||||||
Schedule Of Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Costs incurred on uncompleted contracts | $ | 165.0 | $ | 35.0 | ||||
Estimated earnings | 41.9 | 15.5 | ||||||
206.9 | 50.5 | |||||||
Less: billings to date | -93.4 | -33.4 | ||||||
$ | 113.5 | $ | 17.1 | |||||
Costs and estimated earnings in excess of billings | $ | 127.8 | $ | 17.1 | ||||
Billings in excess of costs and estimated earnings | -14.3 | - | ||||||
$ | 113.5 | $ | 17.1 | |||||
Intangible_Assets_And_Goodwill1
Intangible Assets And Goodwill (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Intangible Assets And Goodwill [Abstract] | ' | ||||||||||||||
Weighted Average Useful Life, Gross Amount And Accumulated Amortization Of Intangible Assets | ' | ||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 119.6 | $ | 23.5 | 39 years | $ | 119.0 | $ | 20.9 | ||||||
Customer relationships | 331.9 | 75.8 | 32 years | 331.7 | 65.9 | ||||||||||
Non-compete agreement | 5.5 | 4.7 | 3 years | 5.4 | 3.8 | ||||||||||
Existing technology | 160.6 | 53.5 | 23 years | 161.6 | 48.0 | ||||||||||
Contracts and purchase agreements | 10.6 | 1.3 | 11 years | 11.1 | 1.0 | ||||||||||
Software | 30.6 | 27.2 | 10 years | 30.6 | 25.0 | ||||||||||
In-process research and development | 12.4 | 0.2 | 10 years | 12.1 | - | ||||||||||
Total amortizable intangible assets | $ | 671.2 | $ | 186.2 | $ | 671.5 | $ | 164.6 | |||||||
Changes In Goodwill, In Total And By Segment | ' | ||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
Balance, December 31, 2012 | $ | 476.7 | $ | 434.6 | $ | 911.3 | |||||||||
Foreign currency adjustments | 5.4 | 1.1 | 6.5 | ||||||||||||
Balance, September 30, 2013 | $ | 482.1 | $ | 435.7 | $ | 917.8 | |||||||||
Inventories_Net_Tables
Inventories, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 66.9 | $ | 59.3 | ||||
Finished parts | 244.2 | 203.1 | ||||||
Work-in-process | 816.8 | 707.9 | ||||||
1,127.9 | 970.3 | |||||||
Less: progress payments | -416.8 | -417.8 | ||||||
Inventories, net | $ | 711.1 | $ | 552.5 | ||||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property Plant And Equipment [Abstract] | ' | |||||||
Property, Plant And Equipment | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Cost: | ||||||||
Land | $ | 30.0 | $ | 31.0 | ||||
Buildings and improvements | 234.7 | 213.2 | ||||||
Machinery and equipment | 509.0 | 484.1 | ||||||
773.7 | 728.3 | |||||||
Less: accumulated depreciation | -305.5 | -261.4 | ||||||
Property, plant and equipment, net | $ | 468.2 | $ | 466.9 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments [Abstract] | ' | |||||||
Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Foreign currency exchange contracts assets | $ | 5.2 | $ | 8.5 | ||||
Foreign currency exchange contracts liabilities | $ | 18.5 | $ | 3.8 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Amended Credit Facility | $ | 907.7 | $ 615.6 | ||||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | 16.0 | - | |||||||||||
Other indebtedness | 40.8 | 60.2 | |||||||||||
Total debt | 1,339.5 | 1,050.8 | |||||||||||
Less: current portion | -43.6 | -35.9 | |||||||||||
Total long-term debt | $ | 1,295.9 | 1,014.9 | ||||||||||
Carrying And Fair Values Of Senior Subordinated Notes | ' | ||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 398.0 | $ | 375.0 | $ | 399.1 | |||||
Pension_Plans_Tables
Pension Plans (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Pension Plans [Abstract] | ' | ||||||||||||
Components Of Net Pension Expense | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 2.3 | $ | 2.2 | $ | 7.1 | $ | 6.8 | |||||
Interest cost | 4.5 | 4.9 | 13.4 | 14.6 | |||||||||
Expected return on plan assets | -5.8 | -5.4 | -17.2 | -16.3 | |||||||||
Amortization of net actuarial loss | 1.9 | 1.9 | 6.1 | 5.8 | |||||||||
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.2 | |||||||||
Net pension expense | $ | 3.0 | $ | 3.7 | $ | 9.5 | $ | 11.1 | |||||
PostRetirement_Benefits_Other_1
Post-Retirement Benefits Other Than Pensions (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Post-Retiements Benefits Other Than Pensions [Abstract] | ' | ||||||||||||
Components Of Net Post-Retirement Benefit Expense | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Interest cost | $ | 0.1 | $ | 0.2 | $ | 0.5 | $ | 0.6 | |||||
Amortization of net actuarial loss | 0.2 | 0.3 | 0.4 | 0.8 | |||||||||
Net post-retirement benefits expense | $ | 0.3 | $ | 0.5 | $ | 0.9 | $ | 1.4 | |||||
Warranties_Tables
Warranties (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Warranties [Abstract] | ' | |||||
Changes In Product Warranty Liability | ' | |||||
Nine Months Ended September 30, | ||||||
2013 | 2012 | |||||
Beginning balance | $ | 20.1 | $ | 25.6 | ||
Provision for warranties issued during period | 13.5 | 12.2 | ||||
Adjustments to warranties issued in prior periods | 1.7 | -3.3 | ||||
Payments during the period | -14.9 | -14 | ||||
Foreign currency adjustments | -0.7 | -0.2 | ||||
Ending balance | $ | 19.7 | $ | 20.3 | ||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Results | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues | |||||||||||||
New units | $ | 272.9 | $ | 247.5 | $ | 1,136.3 | $ | 902.6 | |||||
Aftermarket parts and services | 361.0 | 346.9 | 1,069.3 | 989.4 | |||||||||
Total revenues | $ | 633.9 | $ | 594.4 | $ | 2,205.6 | $ | 1,892.0 | |||||
Income from operations | |||||||||||||
New units | $ | 33.5 | $ | 21.1 | $ | 87.9 | $ | 68.6 | |||||
Aftermarket parts and services | 75.0 | 76.1 | 234.2 | 199.3 | |||||||||
Unallocable | -27.1 | -23.2 | -88 | -69.6 | |||||||||
Total income from operations | $ | 81.4 | $ | 74.0 | $ | 234.1 | $ | 198.3 | |||||
Depreciation and amortization | |||||||||||||
New units | $ | 8.7 | $ | 10.7 | $ | 34.0 | $ | 33.5 | |||||
Aftermarket parts and services | 12.5 | 10.7 | 33.1 | 30.7 | |||||||||
Total depreciation and amortization | $ | 21.2 | $ | 21.4 | $ | 67.1 | $ | 64.2 | |||||
Total assets by segment were as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Total assets (including goodwill) | |||||||||||||
New units | $ | 1,167.0 | $ | 898.8 | |||||||||
Aftermarket parts and services | 1,160.2 | 1,126.7 | |||||||||||
Unallocable | 1,372.3 | 1,307.5 | |||||||||||
Total assets | $ | 3,699.5 | $ | 3,333.0 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") [Abstract] | ' | ||||||||||||
Changes In Accumulated Other Comprehensive Income (Loss) By Component | ' | ||||||||||||
Foreign | Pension and | ||||||||||||
Currency | Unrealized | Other | |||||||||||
Translation | (Loss) Gain on | Postretirement | |||||||||||
Adjustments | Derivatives | Benefit Plans | Total | ||||||||||
At December 31, 2012 | $ | -51.3 | $ | -0.7 | $ | -82.7 | $ | -134.7 | |||||
Other comprehensive loss before reclassifications | -17.5 | - | - | -17.5 | |||||||||
Amounts reclassified from AOCI | - | 0.2 | 4.1 | 4.3 | |||||||||
Net current period other comprehensive (loss) income | -17.5 | 0.2 | 4.1 | -13.2 | |||||||||
At September 30, 2013 | $ | -68.8 | $ | -0.5 | $ | -78.6 | $ | -147.9 | |||||
Schedule Of Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Amount Reclassified From AOCI into Net Income | Affected Line Item in the | ||||||||||||
Three Months Ended | Nine Months Ended | Consolidated Statement | |||||||||||
Details About AOCI Components | 30-Sep-13 | 30-Sep-13 | of Income | ||||||||||
Unrealized gain on derivatives | $ | - | $ | -0.3 | Interest expense, net | ||||||||
- | 0.1 | Provision for income taxes | |||||||||||
$ | - | $ | -0.2 | Net of tax | |||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -2.2 | $ | -6.5 | (a) | ||||||||
0.8 | 2.4 | Provision for income taxes | |||||||||||
$ | -1.4 | $ | -4.1 | Net of tax | |||||||||
Total reclassifications, net of tax | $ | -1.4 | $ | -4.3 | Net of tax | ||||||||
(a)These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 11, Pension Plans and Note 12, Post-retirement Benefits Other than Pensions for additional information. | |||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Basis Of Presentation [Abstract] | ' | ' |
Percentage of completion, consolidated revenues percentage | 6.70% | 7.10% |
Acquisitions_And_Other_Investm2
Acquisitions And Other Investments (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jan. 04, 2013 | Sep. 30, 2013 | Feb. 28, 2011 | Sep. 30, 2013 | Apr. 30, 2009 | Sep. 30, 2013 | Dec. 31, 2008 |
Bethel Holdco, LLC [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Echogen [Member] | Echogen [Member] | Dresser-Rand Arabia LLC [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | |
MW | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid | ' | $48.80 | ' | ' | ' | ' | ' | ' |
Business acquisition, ownership percentage | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Business acquisition, additional contingent consideration | ' | ' | 10 | ' | ' | ' | ' | ' |
Payment made to seller of Synchrony | ' | ' | 4.7 | ' | ' | ' | ' | ' |
Minimum royalties that should be paid in first five years of commercialization | ' | ' | ' | 6 | ' | ' | ' | ' |
Royalty guarantee term | ' | ' | ' | '5 years | ' | ' | ' | ' |
Option to acquire outstanding shares, expiration date | ' | ' | ' | ' | 14-Feb-13 | ' | ' | ' |
Energy storage facility, power level | 317 | ' | ' | ' | ' | ' | ' | ' |
Equity investment, cost | 5 | ' | ' | ' | ' | ' | 33.5 | ' |
Investment to acquire noncontrolling interest | ' | ' | ' | ' | 23 | ' | ' | ' |
Percentage of aggregate non-controlling interest acquired | 11.10% | ' | ' | ' | 35.50% | ' | 41.50% | ' |
Equity method investment, un-owned percentage | 88.90% | ' | ' | ' | ' | ' | ' | ' |
Equity method Investments | 5 | ' | ' | ' | 17.9 | ' | 28.8 | ' |
Ownership percentage in joint venture | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Option to acquire business | ' | ' | ' | ' | ' | ' | ' | $25 |
Dates within which options may be exercised to acquire business | ' | ' | ' | ' | ' | ' | 'November 10, 2014 | ' |
Acquisitions_And_Other_Investm3
Acquisitions And Other Investments (Acquisition Price Allocated To Fair Values Of Assets Acquired And Liabilities Assumed) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill | $917.80 | $911.30 |
Synchrony [Member] | ' | ' |
Cash and cash equivalents | ' | 0.1 |
Accounts receivable | ' | 2.1 |
Inventory | ' | 1.5 |
Prepaid expenses | ' | 0.1 |
Total current assets | ' | 3.8 |
Property, plant and equipment | ' | 2.2 |
Amortizable intangible assets | ' | 22.9 |
Goodwill | ' | 26.3 |
Other assets | ' | 0.6 |
Total assets acquired | ' | 55.8 |
Accounts payable and accruals | ' | 2.6 |
Total liabilities assumed | ' | 2.6 |
Purchase price | ' | 53.2 |
Fair value of contingent consideration (non-cash) | ' | -4.3 |
Cash acquired | ' | -0.1 |
Cash paid | ' | $48.80 |
Costs_And_Estimated_Earnings_I2
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts [Abstract] | ' | ' |
Costs incurred on uncompleted contracts | $165 | $35 |
Estimated earnings | 41.9 | 15.5 |
Costs incurred and estimated billings on uncompleted contracts | 206.9 | 50.5 |
Less: billings to date | -93.4 | -33.4 |
Net estimate billings on uncompleted contracts | 113.5 | 17.1 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 127.8 | 17.1 |
Billings in Excess of Cost | ($14.30) | ' |
Recovered_Sheet1
Intangible Assets and Goodwill (Narrative) (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 |
Intangible Assets And Goodwill [Abstract] | ' | ' | ' | ' |
Intangible asset amortization expense | $7.10 | $7.70 | $21.70 | $22.30 |
Remainder of fiscal year 2013 | 7.3 | ' | 7.3 | ' |
2014 | 28 | ' | 28 | ' |
2015 | 24.2 | ' | 24.2 | ' |
2016 | 23.6 | ' | 23.6 | ' |
2017 | 23.6 | ' | 23.6 | ' |
2018 | $23.50 | ' | $23.50 | ' |
Intangible_Assets_And_Goodwill2
Intangible Assets And Goodwill (Weighted Average Useful Life, Gross Amount And Accumulated Amortization Of Intangible Assets) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $671.20 | $671.50 |
Accumulated Amortization | 186.2 | 164.6 |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 119.6 | 119 |
Accumulated Amortization | 23.5 | 20.9 |
Weighted-Average Useful Lives | '39 years | ' |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 331.9 | 331.7 |
Accumulated Amortization | 75.8 | 65.9 |
Weighted-Average Useful Lives | '32 years | ' |
Non-Compete Agreement [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 5.5 | 5.4 |
Accumulated Amortization | 4.7 | 3.8 |
Weighted-Average Useful Lives | '3 years | ' |
Existing Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 160.6 | 161.6 |
Accumulated Amortization | 53.5 | 48 |
Weighted-Average Useful Lives | '23 years | ' |
Contracts And Purchase Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 10.6 | 11.1 |
Accumulated Amortization | 1.3 | 1 |
Weighted-Average Useful Lives | '11 years | ' |
Software [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 30.6 | 30.6 |
Accumulated Amortization | 27.2 | 25 |
Weighted-Average Useful Lives | '10 years | ' |
In-process Research And Development [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 12.4 | 12.1 |
Accumulated Amortization | $0.20 | ' |
Weighted-Average Useful Lives | '10 years | ' |
Intangible_Assets_And_Goodwill3
Intangible Assets And Goodwill (Changes In Goodwill In Total And By Segment) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Line Items] | ' |
Beginning Balance | $911.30 |
Foreign currency adjustments | 6.5 |
Ending Balance | 917.8 |
New Units [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 476.7 |
Foreign currency adjustments | 5.4 |
Ending Balance | 482.1 |
Aftermarket Parts And Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 434.6 |
Foreign currency adjustments | 1.1 |
Ending Balance | $435.70 |
Inventories_Net_Narrative_Deta
Inventories, Net (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Progress payments to suppliers included in work-in-process | $122.70 | $101.10 |
Allowance for obsolescence for slow-moving inventory | $31 | $31.60 |
Inventories_Net_Inventories_De
Inventories, Net (Inventories) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $66.90 | $59.30 |
Finished parts | 244.2 | 203.1 |
Work-in-process | 816.8 | 707.9 |
Inventories, gross | 1,127.90 | 970.3 |
Less: progress payments | -416.8 | -417.8 |
Inventories, net | $711.10 | $552.50 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment - (Narrative) (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 |
Property Plant And Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $14.10 | $13.70 | $45.40 | $41.90 |
Property_Plant_And_Equipment_P
Property, Plant And Equipment (Property, Plant And Equipment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cost: | ' | ' |
Land | $30 | $31 |
Buildings and improvements | 234.7 | 213.2 |
Machinery and equipment | 509 | 484.1 |
Property, plant and equipment, gross | 773.7 | 728.3 |
Less: accumulated depreciation | -305.5 | -261.4 |
Property, plant and equipment, net | $468.20 | $466.90 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | ||||||
Financial Instruments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivatives | ' | ' | ' | ' | ' | $24.30 | € 18 | $757.60 | $576.60 |
Interest rate swap, fixed rate of interest rate | 3.87% | ' | 3.87% | ' | ' | ' | ' | ' | ' |
Fair value of the interest rate swap | 0.8 | ' | 0.8 | ' | ' | ' | ' | ' | ' |
Fair value of the interest rate swap related unrealized gain | 0 | ' | 0.2 | ' | ' | ' | ' | ' | ' |
Net foreign currency (losses) gains recognized | -8.1 | 3.2 | -17.4 | 10.3 | ' | ' | ' | ' | ' |
Fair value of tradable emission allowances liability | $0.50 | ' | $0.50 | ' | $0.80 | ' | ' | ' | ' |
Financial_Instruments_Foreign_
Financial Instruments (Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Foreign currency exchange contracts assets | $5.20 | $8.50 |
Foreign currency exchange contracts liabilities | $18.50 | $3.80 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | ' | 35.00% | 35.00% | 35.00% |
Tax expense associated with discrete event | ' | $4.40 | ' | ' | ' |
Dividend declared foreign earnings repatriated, maximum amount | ' | ' | ' | 49 | ' |
Foreign exchange loss | -8.1 | ' | 3.2 | -17.4 | 10.3 |
Impact of tax holiday arrangements on income tax expense | 1.9 | ' | 1.3 | 5.2 | 2.7 |
Impact of tax holiday arrangements per diluted share | $0.02 | ' | $0.02 | $0.07 | $0.04 |
Income Tax Credits and Adjustments | ' | ' | ' | 11 | ' |
Liability for Uncertain Tax Positions, Current | 2.3 | ' | ' | 2.3 | ' |
Luxembourg subsidiary [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Percentage point increase decrease in effective tax rate | 7.80% | ' | ' | 2.70% | ' |
French operations [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Percentage point increase decrease in effective tax rate | 4.20% | ' | ' | 1.40% | ' |
Devaluation Of Venezuelan Bolivar [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Foreign exchange loss | ' | ' | ' | $3.60 | ' |
Percentage point increase decrease in effective tax rate | ' | ' | ' | -0.50% | ' |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | EUR (€) | USD ($) | Tranche A Term Loan [Member] | Tranche B Term Loan [Member] | Revolving Credit Facility [Member] | Term Loan [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Bank Overdraft Facility [Member] | Bank Overdraft Facility [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Banks, Uncommitted Lines Of Credit [Member] | USD ($) | Bank Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | ||||||
USD ($) | |||||||||||||||||
Credit facility expiration date | 30-Sep-18 | 30-Sep-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $1,100 | € 50 | $700 | ' | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowing capacity | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly amortization | ' | ' | ' | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current amount outstanding | $907.70 | ' | ' | ' | ' | $609.60 | $298.10 | $99.30 | $235 | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in interest rate | 0.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, additional margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | 1.75% | 0.75% | ' | 2.50% | 1.50% |
Unutilized commitments fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | 0.50% | ' | ' |
Outstanding performance fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.95% | ' | ' | 1.40% | ' | ' |
Financial letters of credit fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | 2.50% | ' | ' |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt (Long-Term Debt) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $1,339.50 | $1,050.80 |
Less: current portion | -43.6 | -35.9 |
Total long-term debt | 1,295.90 | 1,014.90 |
Amended Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 907.7 | 615.6 |
6 1/2% Senior Subordinated Notes Due May 2021 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 375 | 375 |
Long-term debt, maturity date | '2021-05 | '2021-05 |
Long-term debt, interest rate | 6.50% | 6.50% |
Bank Overdraft Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 16 | ' |
Other Indebtedness [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $40.80 | $60.20 |
LongTerm_Debt_Carrying_And_Fai
Long-Term Debt (Carrying And Fair Values Of Senior Subordinated Notes) (Details) (6 1/2% Senior Subordinated Notes Due May 2021 [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
6 1/2% Senior Subordinated Notes Due May 2021 [Member] | ' | ' |
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' |
Long term debt, carrying value | $375 | $375 |
Long term debt, fair value | $398 | $399.10 |
Long-term debt, maturity date | '2021-05 | '2021-05 |
Long-term debt, interest rate | 6.50% | 6.50% |
Pension_Plans_Narrative_Detail
Pension Plans - (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans [Abstract] | ' | ' | ' | ' |
Fair value of plan assets, percentage | 8.40% | ' | 8.40% | ' |
Contribution by employer | $7.20 | $3.50 | $17.30 | $19 |
Pension_Plans_Components_Of_Ne
Pension Plans - (Components Of Net Pension Expense) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Interest cost | $0.10 | $0.20 | $0.50 | $0.60 |
Amortization of net actuarial loss | 0.2 | 0.3 | 0.4 | 0.8 |
Net pension expense | 0.3 | 0.5 | 0.9 | 1.4 |
Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2.3 | 2.2 | 7.1 | 6.8 |
Interest cost | 4.5 | 4.9 | 13.4 | 14.6 |
Expected return on plan assets | -5.8 | -5.4 | -17.2 | -16.3 |
Amortization of net actuarial loss | 1.9 | 1.9 | 6.1 | 5.8 |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 | 0.2 |
Net pension expense | $3 | $3.70 | $9.50 | $11.10 |
PostRetirement_Benefits_Other_2
Post-Retirement Benefits Other Than Pensions - (Components of Net Post-Retirement Benefit Expense) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Post-Retiements Benefits Other Than Pensions [Abstract] | ' | ' | ' | ' |
Interest cost | $0.10 | $0.20 | $0.50 | $0.60 |
Amortization of net actuarial loss | 0.2 | 0.3 | 0.4 | 0.8 |
Net pension expense | $0.30 | $0.50 | $0.90 | $1.40 |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||
In Millions, unless otherwise specified | Feb. 29, 2012 | Feb. 29, 2012 | Nov. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2010 | Jan. 31, 2010 | Feb. 29, 2012 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | EUR (€) | USD ($) | EUR (€) | BRL | GBP (£) | Italian Ministry Of Economic Development ("MISE") [Member] | Italian Ministry Of Economic Development ("MISE") [Member] | Italian Tax Authorities [Member] | Italian Tax Authorities [Member] | Banco Santos [Member] | Banco Santos [Member] | Minimum [Member] | Maximum [Member] | ||
loan | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | BRL | |||||||||
employee | |||||||||||||||
item | |||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargaining agreement between IUE and the Company expiration date | ' | ' | '2016-03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees engaged in misconduct during strike and involuntary terminated | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated appeal processing period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '2 years |
Contingent exposure accrued | ' | ' | ' | $4.90 | ' | ' | £ 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Damage sought | 5.7 | 4.2 | ' | ' | ' | ' | ' | 9.5 | 7 | ' | ' | ' | ' | ' | ' |
Estimated aggregate loss exposure associated with Enviroil litigation | ' | ' | ' | 9.9 | 7.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate exposure | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.7 | 10.1 | 16.9 | 37.5 | ' | ' |
Period of available funds | ' | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of banking credit notes | ' | ' | ' | 12 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of banking credit notes each month | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Amount | ' | ' | ' | 9.9 | 7.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Restricted Assets, Current | ' | ' | ' | $1.60 | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranties_Changes_In_Product_
Warranties - (Changes In Product Warranty Liability) (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments And Contingencies [Abstract] | ' | ' |
Beginning balance | $20.10 | $25.60 |
Provision for warranties issued during period | 13.5 | 12.2 |
Adjustments to warranties issued in prior periods | 1.7 | -3.3 |
Payments during the period | -14.9 | -14 |
Foreign currency adjustments | -0.7 | -0.2 |
Ending balance | $19.70 | $20.30 |
Segment_Information_Narrative_
Segment Information (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Segment Information [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Information_Segment_Re
Segment Information - (Segment Results) (Detail) (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 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | $633.90 | $594.40 | $2,205.60 | $1,892 | ' |
Income from operations | 81.4 | 74 | 234.1 | 198.3 | ' |
Depreciation and amortization | 21.2 | 21.4 | 67.1 | 64.2 | ' |
Assets | 3,699.50 | ' | 3,699.50 | ' | 3,333 |
New Units [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 272.9 | 247.5 | 1,136.30 | 902.6 | ' |
Income from operations | 33.5 | 21.1 | 87.9 | 68.6 | ' |
Depreciation and amortization | 8.7 | 10.7 | 34 | 33.5 | ' |
Assets | 1,167 | ' | 1,167 | ' | 898.8 |
Aftermarket Parts And Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 361 | 346.9 | 1,069.30 | 989.4 | ' |
Income from operations | 75 | 76.1 | 234.2 | 199.3 | ' |
Depreciation and amortization | 12.5 | 10.7 | 33.1 | 30.7 | ' |
Assets | 1,160.20 | ' | 1,160.20 | ' | 1,126.70 |
Unallocated [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Income from operations | -27.1 | -23.2 | -88 | -69.6 | ' |
Assets | $1,372.30 | ' | $1,372.30 | ' | $1,307.50 |
Incentive_StockBased_Compensat1
Incentive Stock-Based Compensation Plans (Detail) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 28, 2013 |
Common Stock [Member] | Time-Vested Restricted Stock Units [Member] | Performance Restricted Stock Units [Member] | Non-Employee Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options and appreciation rights approved for stock compensation arrangements | 226,059 | 320,023 | 53,036 | ' |
Number of shares granted | ' | ' | ' | 13,972 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Beginning balance | ($134.70) |
Other comprehensive loss before reclassifications | -17.5 |
Amounts reclassified from AOCI | 4.3 |
Net current period other comprehensive (loss) income | -13.2 |
Ending balance | -147.9 |
Foreign Currency Translation Adjustments [Member] | ' |
Beginning balance | -51.3 |
Other comprehensive loss before reclassifications | -17.5 |
Net current period other comprehensive (loss) income | -17.5 |
Ending balance | -68.8 |
Unrealized (Loss) Gain On Derivatives [Member] | ' |
Beginning balance | -0.7 |
Amounts reclassified from AOCI | 0.2 |
Net current period other comprehensive (loss) income | 0.2 |
Ending balance | -0.5 |
Pension And Other Postretirement Benefit Plans [Member] | ' |
Beginning balance | -82.7 |
Amounts reclassified from AOCI | 4.1 |
Net current period other comprehensive (loss) income | 4.1 |
Ending balance | ($78.60) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - (Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Interest expense, net | ($7.80) | ($15.70) | ($35.50) | ($47.90) | ||
Amortization of net actuarial loss | -0.2 | -0.3 | -0.4 | -0.8 | ||
Provision for income taxes | 15.5 | 17.4 | 52.7 | 49.8 | ||
Net of tax | 50 | 42.1 | 138.8 | 101.4 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Net of tax | -1.4 | ' | -4.3 | ' | ||
Unrealized (Loss) Gain On Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Interest expense, net | ' | ' | -0.3 | ' | ||
Provision for income taxes | ' | ' | 0.1 | ' | ||
Net of tax | ' | ' | -0.2 | ' | ||
Pension And Other Postretirement Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Amortization of net actuarial loss | -2.2 | [1] | ' | -6.5 | [1] | ' |
Provision for income taxes | 0.8 | ' | 2.4 | ' | ||
Net of tax | ($1.40) | ' | ($4.10) | ' | ||
[1] | (a)These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 11, Pension Plans and Note 12, Post-retirement Benefits Other than Pensions for additional information. |
Significant_Concentration_Of_C1
Significant Concentration Of Credit Risk (Details) (Accounts Receivable [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Accounts Receivable [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration percentage | 16.40% |