Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 10, 2014 | Jun. 30, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'drc | ' | ' |
Entity Registrant Name | 'Dresser-Rand Group Inc. | ' | ' |
Entity Central Index Key | '0001316656 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 76,476,205 | ' |
Entity Public Float | ' | ' | $4,471,977,324 |
Consolidated_Statement_Of_Inco
Consolidated Statement Of Income (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales of products | $2,219.80 | $1,925.10 | $1,639.80 |
Net sales of services | 812.8 | 811.3 | 671.8 |
Total revenues | 3,032.60 | 2,736.40 | 2,311.60 |
Cost of products sold | 1,664 | 1,429.10 | 1,190.10 |
Cost of services sold | 583.3 | 575.2 | 477.8 |
Total cost of sales | 2,247.30 | 2,004.30 | 1,667.90 |
Gross profit | 785.3 | 732.1 | 643.7 |
Selling and administrative expenses | 385.5 | 365.8 | 357.4 |
Research and development expenses | 38.8 | 30.4 | 27.6 |
Asset impairment | 40 | ' | ' |
Income from operations | 321 | 335.9 | 258.7 |
Interest expense, net | -46.9 | -60.2 | -61.7 |
Early redemption premium on debt | ' | ' | -10.1 |
Other expense, net | -16.6 | ' | -3 |
Income before income taxes | 257.5 | 275.7 | 183.9 |
Provision for income taxes | 88.2 | 92.8 | 62.9 |
Net income | 169.3 | 182.9 | 121 |
Net income attributable to noncontrolling interest | -0.9 | -3.9 | -0.2 |
Net income attributable to Dresser-Rand | $168.40 | $179 | $120.80 |
Net income attributable to Dresser-Rand per share | ' | ' | ' |
Basic | $2.21 | $2.37 | $1.56 |
Diluted | $2.19 | $2.35 | $1.54 |
Weighted-average shares outstanding-(in thousands ) | ' | ' | ' |
Basic | 76,139 | 75,487 | 77,532 |
Diluted | 76,826 | 76,276 | 78,319 |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $169.30 | $182.90 | $121 |
Other comprehensive income (loss) | ' | ' | ' |
Foreign currency translation adjustments | -18.8 | 10.4 | -65.1 |
Unrealized gain (loss) on derivatives - net of tax (benefit) expense of ($0.1), $0.0 and $0.2 for 2013, 2012 and 2011, respectively | 0.3 | -0.1 | -0.5 |
Pension and other postretirement benefit plans - net of tax (benefit) expense of ($21.1), $3.7 and $19.1 for 2013, 2012 and 2011, respectively | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs | 5.6 | 5.7 | 1.8 |
Curtailment / settlement | 9.2 | ' | ' |
Benefit plan amendments | -0.6 | ' | 0.3 |
Net actuarial gain (loss) arising during the year | 19.6 | -12.3 | -35.1 |
Total other comprehensive income (loss) | 15.3 | 3.7 | -98.6 |
Total comprehensive income | 184.6 | 186.6 | 22.4 |
Comprehensive income attributable to noncontrolling interest | -0.3 | -3.5 | -0.2 |
Comprehensive income attributable to Dresser-Rand | $184.30 | $183.10 | $22.20 |
Consolidated_Statement_Of_Comp1
Consolidated Statement Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Unrealized gain (loss) on derivatives, tax | ($0.10) | $0 | $0.20 |
Pensions and other postretirement benefit plans, tax | ($21.10) | $3.70 | $19.10 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $190.40 | $122.80 |
Restricted cash | 8.1 | 17.6 |
Accounts receivable, less allowance for losses of $9.1 at 2013 and $9.6 at 2012 | 727.4 | 565.9 |
Inventories, net | 716 | 552.5 |
Prepaid expenses and other | 68.8 | 66.7 |
Deferred income taxes, net | 25.2 | 30.5 |
Total current assets | 1,735.90 | 1,356 |
Property, plant and equipment, net | 472.3 | 466.9 |
Goodwill | 927.6 | 911.3 |
Intangible assets, net | 479 | 506.9 |
Deferred income taxes | 11.8 | 14.9 |
Other assets | 111.2 | 98 |
Total assets | 3,737.80 | 3,354 |
Current liabilities | ' | ' |
Accounts payable and accruals | 729.1 | 600.4 |
Customer advance payments | 164.5 | 282.3 |
Accrued income taxes payable | 36.1 | 44.4 |
Short-term borrowings and current portion of long-term debt | 40.1 | 35.9 |
Total current liabilities | 969.8 | 963 |
Deferred income taxes | 55.4 | 35.8 |
Postemployment and other employee benefit liabilities | 74 | 142.8 |
Long-term debt | 1,246.90 | 1,014.90 |
Other noncurrent liabilities | 90.3 | 102.6 |
Total liabilities | 2,436.40 | 2,259.10 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders' equity | ' | ' |
Common stock, $0.01 par value, 250,000,000 shares authorized; and 76,293,924 and 75,675,854 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 0.8 | 0.8 |
Additional paid-in capital | 162.4 | 140.5 |
Retained earnings | 1,253 | 1,084.60 |
Accumulated other comprehensive loss | -118.8 | -134.7 |
Total Dresser-Rand stockholders' equity | 1,297.40 | 1,091.20 |
Noncontrolling interest | 4 | 3.7 |
Total stockholders' equity | 1,301.40 | 1,094.90 |
Total liabilities and stockholders' equity | $3,737.80 | $3,354 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for losses | $9.10 | $9.60 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 76,293,924 | 75,675,854 |
Common stock, shares outstanding | 76,293,924 | 75,675,854 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $169.30 | $182.90 | $121 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 92.3 | 85.5 | 78.9 |
Deferred income taxes | 3.8 | 8.6 | 20.8 |
Stock-based compensation | 25.9 | 28.4 | 19.8 |
Excess tax benefits from stock-based compensation | -6.8 | -4.1 | -4.4 |
Amortization of debt financing costs | 3.4 | 3.9 | 11.7 |
Provision for losses on inventory | 2.2 | 3.1 | -0.6 |
Asset impairment | 40 | ' | ' |
(Gain) loss on sale of property, plant and equipment | 0.6 | 3.6 | 0.7 |
Loss from equity investments | 5.6 | 2.1 | 2.6 |
Changes in working capital and other, net of acquisitions | ' | ' | ' |
Accounts receivable, net | -164.6 | -85 | -106.5 |
Inventories | -162.3 | -140.9 | -85.2 |
Prepaid expenses and other | -5.2 | 0.4 | -22.7 |
Accounts payable and accruals | 116.4 | -7.8 | 76.5 |
Customer advances | -123 | 3.8 | 18.5 |
Taxes payable | -16 | 21.5 | -44 |
Pension and other post-retirement benefits | -12.8 | 16.4 | 47.8 |
Other | -35.6 | -29.6 | -26.8 |
Net cash (used in) provided by operating activities | -66.8 | 92.8 | 108.1 |
Cash flows from investing activities | ' | ' | ' |
Capital expenditures | -82.6 | -73.3 | -50.8 |
Proceeds from sales of property, plant and equipment | 2.4 | 0.9 | 0.5 |
Acquisitions, net of cash acquired | ' | -48.8 | -283.5 |
Other investments | -13.4 | -15.3 | -14.7 |
Decrease in restricted cash balances | 10.1 | 12.4 | 2.5 |
Net cash used in investing activities | -83.5 | -124.1 | -346 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from exercise of stock options | 4.1 | 2.8 | 5.9 |
Proceeds from borrowings | 2,303.10 | 717.9 | 1,490.10 |
Excess tax benefits from stock-based compensation | 6.8 | 4.1 | 4.4 |
Repayments of borrowings | -2,075.10 | -697.1 | -1,032.60 |
Repurchase of common stock | -1.5 | ' | -505 |
Payments for debt financing costs | -5.1 | -0.5 | -16.1 |
Net cash provided by financing activities | 232.3 | 27.2 | -53.3 |
Effect of exchange rate changes on cash and cash equivalents | -14.4 | -1.3 | -1.4 |
Net increase in cash and cash equivalents | 67.6 | -5.4 | -292.6 |
Cash and cash equivalents, beginning of period | 122.8 | 128.2 | 420.8 |
Cash and cash equivalents, end of period | $190.40 | $122.80 | $128.20 |
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, 2010 | $0.80 | $341.90 | $784.80 | ($40.20) | ' | $1,087.30 |
Stock-based compensation | ' | 24.8 | ' | ' | ' | 24.8 |
Stock repurchases | ' | -505 | ' | ' | ' | -505 |
Stock issued for acquisition | ' | 243.5 | ' | ' | ' | 243.5 |
Net income | ' | ' | 120.8 | ' | 0.2 | 121 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | -65.1 | ' | -65.1 |
Unrealized gain on derivatives, net of tax | ' | ' | ' | -0.5 | ' | -0.5 |
Pension and other postretirement benefit plans: | ' | ' | ' | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs-net of tax | ' | ' | ' | 1.8 | ' | 1.8 |
Benefit plan amendments | ' | ' | ' | 0.3 | ' | 0.3 |
Net actuarial gain (loss) arising during the year | ' | ' | ' | -35.1 | ' | -35.1 |
Ending Balance at Dec. 31, 2011 | 0.8 | 105.2 | 905.6 | -138.8 | 0.2 | 873 |
Stock-based compensation | ' | 35.3 | ' | ' | ' | 35.3 |
Net income | ' | ' | 179 | ' | 3.9 | 182.9 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | 10.8 | -0.4 | 10.4 |
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 | ' | ' | ' | 5.7 | ' | 5.7 |
Net actuarial gain (loss) arising during the year | ' | ' | ' | -12.3 | ' | -12.3 |
Ending Balance at Dec. 31, 2012 | 0.8 | 140.5 | 1,084.60 | -134.7 | 3.7 | 1,094.90 |
Stock-based compensation | ' | 23.4 | ' | ' | ' | 23.4 |
Stock repurchases | ' | -1.5 | ' | ' | ' | -1.5 |
Net income | ' | ' | 168.4 | ' | 0.9 | 169.3 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | -18.2 | -0.6 | -18.8 |
Unrealized gain on derivatives, net of tax | ' | ' | ' | 0.3 | ' | 0.3 |
Pension and other postretirement benefit plans: | ' | ' | ' | ' | ' | ' |
Amortization of prior service cost and net actuarial loss included in net periodic costs-net of tax | ' | ' | ' | 5.6 | ' | 5.6 |
Curtailment / settlement | ' | ' | ' | 9.2 | ' | 9.2 |
Benefit plan amendments | ' | ' | ' | -0.6 | ' | -0.6 |
Net actuarial gain (loss) arising during the year | ' | ' | ' | 19.6 | ' | 19.6 |
Ending Balance at Dec. 31, 2013 | $0.80 | $162.40 | $1,253 | ($118.80) | $4 | $1,301.40 |
Consolidated_Statement_Of_Chan1
Consolidated Statement Of Changes In Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Unrealized gain (loss) on derivatives, tax | ($0.10) | $0 | $0.20 |
Pensions and other postretirement benefit plans, tax | ($21.10) | $3.70 | $19.10 |
Business_Activities_And_Certai
Business Activities And Certain Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Business Activities and Certain Related Party Transactions [Abstract] | ' |
Business Activities and Certain Related Party Transactions | ' |
1.Business Activities and Certain Related Party Transactions | |
Dresser-Rand Group Inc., a company incorporated in the State of Delaware (together with its subsidiaries, the “Company”), commenced operations on October 30, 2004, when it acquired Dresser-Rand Company and the operations of Dresser-Rand Canada, Inc. and Dresser-Rand GmbH (the “Acquisition”) from Ingersoll Rand Company Limited (“Ingersoll Rand”). The Company is engaged in the design, manufacture, sale and servicing of centrifugal and reciprocating compressors, gas and steam turbines, gas expanders, gas engines and associated control panels. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2.Summary of Significant Accounting Policies | |||||||||
A summary of significant accounting policies used in the preparation of these consolidated financial statements follows: | |||||||||
Principles of Consolidation | |||||||||
The consolidated financial statements include the accounts and activities of the Company and its controlled subsidiaries or variable interest entities for which the Company has determined that it is the primary beneficiary. Fifty percent or less owned companies (which are not variable interest entities of which the Company is the primary beneficiary), and for which the Company exercises significant influence but does not control, are accounted for under the equity method. Intercompany accounts and transactions among entities included in the consolidated financial statements have been eliminated. | |||||||||
Use of Estimates | |||||||||
In conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), management has used estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Significant estimates include 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, contract losses, penalties, environmental contingencies, product liability, self-insurance programs and other contingencies. Actual results could differ from those estimates. | |||||||||
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 generally 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 and valuations of long-lived assets that are impaired. | |||||||||
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 15 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | |||||
Tradable emission allowances | Note 15 | Level 1 | Not applicable | Not applicable | |||||
Long-term debt (disclosure only) | Note 11 | Level 2 | Quoted prices in markets that are not active | Not applicable | |||||
Impairment of long-lived assets | Note 25 | Level 3 | Not applicable | Income approach using projected results and weighted-average cost of capital | |||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. These cash equivalents consist principally of money market accounts. | |||||||||
Restricted Cash | |||||||||
Restricted cash includes cash and cash equivalents that are restricted as to withdrawal or usage. The nature of restrictions includes restrictions imposed by financing agreements such as debt service reserves. The Company is required to maintain sinking funds associated with certain of its borrowings, generally based on the short-term debt service requirements of such borrowings. Sinking fund requirements totaled $8.1 and $16.5 at December 31, 2013 and 2012, respectively, and have been classified as restricted cash in the current assets section of the consolidated balance sheet. | |||||||||
Allowance for Losses on Receivables | |||||||||
The Company establishes an allowance for losses on receivables by applying specified percentages to the adjusted receivable aging categories. The percentage applied against the aging categories increases as the accounts become further past due so that accounts in excess of 360 days past due are initially considered for a 100% reserve. The allowance is further adjusted for specific customer accounts that have aged but collection is determined to be probable and accounts that have become past due but collection is determined to be doubtful due to insolvency, disputes or other collection issues as identified by the Company. | |||||||||
Inventories, net | |||||||||
Inventories are stated at the lower of cost (generally first-in first-out or average) or market (estimated net realizable value). Cost includes labor, materials and facility overhead. A provision is also recorded for slow-moving, obsolete or unusable inventory. Customer progress payments are credited to inventory and any payments in excess of our related investment in inventory are recorded as customer advance payments in current liabilities. Company progress payments to suppliers are included in work-in-process. | |||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of buildings and improvements range from five years to 40 years; the useful lives of machinery and equipment range from three years to 10 years. Maintenance and repairs are expensed as incurred. | |||||||||
Capitalized Interest | |||||||||
The Company capitalizes interest costs for qualifying construction and upgrade projects. Capitalized interest costs were not material for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Capitalized Software | |||||||||
The Company capitalizes computer software for internal use following the guidelines established in Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. The amounts capitalized were not material for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Impairment of Long-Lived Assets | |||||||||
The Company reviews long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. | |||||||||
Goodwill & Intangible Assets | |||||||||
Goodwill has an indefinite life and is not amortized, but is tested for impairment at least annually. The Company has recorded goodwill in connection with its acquisition by First Reserve in 2004, as well as its acquisitions of other companies. The Company performs its annual impairment assessment at the reporting unit level for each reporting unit that carries a balance of goodwill. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test described below. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is performed. Qualitative indicators including deterioration in macroeconomic conditions, declining financial performance, or a sustained decrease in share price, among other things, may trigger the need for a quantitative impairment test of goodwill for a reporting unit. | |||||||||
The Company’s goodwill impairment assessment is performed at August 31, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. For instance, a decrease in the Company’s market capitalization below book value, a significant change in business climate, as well as the qualitative indicators reference above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. | |||||||||
The Company determined a qualitative analysis was appropriate for its aftermarket parts and services reporting unit. In its qualitative analysis, the Company considered factors such as the industry, buyer and supplier bargaining power, market size and share, operating margin consistency and other economic factors. | |||||||||
The Company utilized a quantitative impairment test for the new units reporting unit. The first step of the quantitative test involves comparing the fair value of each of the Company’s reporting units with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, a second step is performed. The second step compares the carrying amount of the reporting unit’s goodwill to the implied fair value of its goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss would be recorded as a reduction to goodwill with a corresponding charge to operating expense. | |||||||||
The Company determines the fair value of its reporting units using a discounted cash flow valuation approach. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, discount rates, weighted average costs of capital and future market conditions, among others. The Company believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. Under the discounted cash flow method, the Company determines fair value based on the estimated future cash flows of each reporting unit, discounted to present value using risk-adjusted industry discount rates, which reflect the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from operating forecasts, which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur, along with a terminal value derived from the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). | |||||||||
The following table presents the significant estimates used by management in determining the fair value of the Company’s reporting units at August 31, 2013: | |||||||||
Years of cash flows before terminal value | 7 | ||||||||
Terminal growth rate | 2.5% | ||||||||
Weighted average cost of capital | 14.0% | ||||||||
Management also considered the sensitivity of its fair value estimates to changes in certain valuation assumptions and, after giving consideration to at least a 10% decrease in the fair value of the Company’s new units reporting unit, the results of the assessment did not change. However, circumstances such as market declines, unfavorable economic conditions, or other factors could impact the valuation of goodwill in future periods. | |||||||||
The Company amortizes its other intangible assets with finite lives over their estimated useful lives. See Note 8 for additional details regarding the components and estimated useful lives of intangible assets. | |||||||||
Income Taxes | |||||||||
The Company determines the consolidated provision for income taxes for its operations on a legal entity, jurisdiction-by-jurisdiction basis. Deferred taxes are provided for operating losses, tax credit carryforwards and temporary differences between the tax bases of assets and liabilities. The deferred tax amounts included in the consolidated financial statements are measured by the enacted tax rates expected to apply when temporary differences are settled or realized. A valuation allowance is established on the deferred tax assets when it is more-likely-than-not that all or a portion of the asset will not be realized. | |||||||||
Uncertain tax positions are recognized in the financial statements only if it is more-likely-than-not that the position will be sustained upon examination through any appeal and litigation processes based on the technical merits of the position and, if recognized, are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company’s policy is to recognize accrued interest on estimated future required tax payments on unrecognized tax expense as interest expense and estimated tax penalties as non-operating expenses. | |||||||||
Product Warranty | |||||||||
Warranty accruals are recorded at the time the products are sold and are estimated based upon product warranty terms and historical experience. Warranty accruals are adjusted for known or anticipated warranty claims as new information becomes available. | |||||||||
Environmental Costs | |||||||||
Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations that have no significant future economic benefit are expensed. Costs to prepare environmental site evaluations and feasibility studies are accrued when the Company commits to perform them. Liabilities for remediation costs are recorded when they are probable and reasonably estimable, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The Company determines any required liability based on existing technology without reflecting any offset for possible recoveries from insurance companies and discounting. Expenditures that prevent or mitigate environmental contamination that is yet to occur are capitalized. | |||||||||
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 can 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 based on the revenue recognition policy described above. | |||||||||
Percentage of completion | |||||||||
We also enter 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 on these projects 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 6.5% and 0.8% of consolidated revenues for the years ended December 31, 2013 and 2012, 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, estimated cost of sales and estimated gross profit to be 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, as described below. 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 Item 1A, Risk Factors, above. In the event that the Company experiences 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 updated 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; and | |||||||||
•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 contract 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 and estimated gross profit 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. | |||||||||
Business interruption insurance recoveries | |||||||||
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. | |||||||||
Taxes Imposed on Revenue Transactions | |||||||||
The Company accounts for taxes imposed on specific revenue transactions, e.g., sales, value-added and similar taxes, on a net basis as such taxes are excluded from revenue and costs. | |||||||||
Shipping and Handling Costs | |||||||||
Amounts billed to clients for shipping and handling are classified as sales of products with the related costs incurred included in cost of sales. | |||||||||
Research and Development and In-Process Research and Development Costs | |||||||||
Research and development expenditures are comprised of salaries, qualifying engineering costs and an allocation of related overhead costs, and are expensed when incurred. | |||||||||
Comprehensive Income (Loss) | |||||||||
Comprehensive income (loss) includes net income and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments, post-retirement benefit plan liability adjustments and fair value changes of financial instruments designated as hedges, net of tax, as applicable. | |||||||||
Foreign Currency | |||||||||
Assets and liabilities of non-United States (“U.S.”) consolidated entities that use the local currency as the functional currency are translated at year-end exchange rates, while income and expenses are translated using weighted-average-for-the-year exchange rates. Adjustments resulting from translation are recorded in other comprehensive income (loss) and are included in earnings only upon sale or liquidation of the underlying foreign investment. The Company recognizes transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred, except for those intercompany balances that are designated as long-term investments. | |||||||||
Inventory, prepaid expenses, warranty liabilities and property balances and related statement of income accounts of non-U.S. entities that use the U.S. dollar as the functional currency are translated using historical exchange rates. The resulting gains and losses are credited or charged to the Consolidated Statement of Income. | |||||||||
Financial Instruments | |||||||||
The Company manages exposure to changes in foreign currency exchange rates through its normal operating and financing activities, as well as through the use of financial instruments, principally forward exchange contracts. | |||||||||
The purpose of the Company’s currency hedging activities is to mitigate the economic impact of changes in foreign currency exchange 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. Major exposure areas considered for hedging include foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. The Company has also 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 Company recognizes all derivatives used in hedging activities as assets or liabilities on the balance sheet at fair value. Any properly documented effective portion of a cash flow hedging instrument’s gain or loss is reported as a component of other comprehensive income (loss) in the Consolidated Statement of Changes in Stockholders’ Equity and is reclassified to earnings in the period during which the transaction being hedged affects income. Gains or losses subsequently reclassified from stockholders’ equity are classified in accordance with income statement treatment of the hedged transaction. Any ineffective portion of a cash flow hedging instrument’s fair value change is immediately recorded in the Consolidated Statement of Income. Classification in the Consolidated Statement of Income of the effective portion of the hedging instrument’s gain or loss is based on the income statement classification of the transaction being hedged. If a cash flow hedging instrument does not qualify as a hedge for accounting purposes, the change in the fair value of the derivative is immediately recognized in the Consolidated Statement of Income in other expense, net. Except for the interest rate swap, the derivative financial instruments in existence at December 31, 2013 and 2012, were not designated as hedges for accounting purposes. | |||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation cost for stock-based compensation awards in accordance with ASC 718, Compensation — Stock Compensation. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that has vested at that date. | |||||||||
Conditional Asset Retirement Obligations | |||||||||
Any legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may not be within our control is recognized as a liability at the fair value of the conditional asset retirement obligation, if the fair value of the liability can be reasonably estimated. U.S. GAAP acknowledges that, in some cases, sufficient information may not be available to reasonably estimate the fair value of an asset retirement obligation. The fair value of the obligation can be reasonably estimated if (a) it is evident that the fair value of the obligation is embodied in the acquisition of an asset, (b) an active market exists for the transfer of the obligation or, (c) sufficient information is available to reasonably estimate (1) the settlement date or the range of settlement dates, (2) the method of settlement or potential methods of settlement and (3) the probabilities associated with the range of potential settlement dates and potential settlement methods. The Company has not recorded any conditional asset retirement obligations because there is no current active market in which the obligations could be transferred and we do not have sufficient information to reasonably estimate the range of settlement dates and their related probabilities. | |||||||||
New Accounting Standards | |||||||||
Effective January 1, 2013, the Company adopted FASB Accounting Standards Update (“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 has 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 21, 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 15, 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. | |||||||||
Reclassification | |||||||||
Certain amounts in previously issued financial statements have been reclassified to conform to the 2013 presentation, herein. | |||||||||
Acquisitions_And_Other_Investm
Acquisitions And Other Investments | 12 Months Ended | ||||||
Dec. 31, 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 December 31, 2013, the Company had made all contractually required contingent consideration payments totaling $4.7 to the sellers of Synchrony. | |||||||
On May 4, 2011, the Company acquired all of the issued and outstanding capital stock of Grupo Guascor, S.L. (“Guascor”) pursuant to a Share Purchase Agreement (the “SPA”), at which time Guascor became a 100%-owned subsidiary of the Company. Guascor is a supplier of diesel and gas engines and provides customized energy solutions across worldwide energy infrastructure markets based upon reciprocating engine power systems technologies. Pursuant to the SPA, the Company paid approximately $283.5, net of cash acquired, assumed $253.4 of debt, and delivered 5,033,172 shares of Company common stock at closing. The total purchase price was approximately $543.2, subject to a further cash purchase price adjustment to the extent that net debt (debt minus cash), as defined in the SPA, is different from the net debt at the end of business on the date of closing, which is being contested by the parties and could take several months and potentially years to finalize and could be material. | |||||||
Goodwill from each of the acquisitions principally resulted from expected synergies from combining the operations of the acquired businesses and the Company. A portion of the goodwill associated with the Guascor acquisition may be amortized for income tax purposes over a period of not less than five years. Due to the delayed implementation of certain tax planning strategies, the amount of goodwill amortization that may be deductible for income tax purposes has not yet been determined. The amortization of goodwill related to the acquisition of Synchrony is not deductible for income tax purposes. | |||||||
The acquisition price was allocated to the fair values of assets acquired and liabilities assumed as follows: | |||||||
Acquisitions | |||||||
Synchrony | Guascor | ||||||
2012 | 2011 | ||||||
Cash and cash equivalents | $ | 0.1 | $ | 21.7 | |||
Restricted cash | - | 36.6 | |||||
Accounts receivable | 2.1 | 79.3 | |||||
Inventory | 1.5 | 41.9 | |||||
Prepaid expenses | 0.1 | 21.1 | |||||
Total current assets | 3.8 | 200.6 | |||||
Property, plant and equipment | 2.2 | 206.9 | |||||
Amortizable intangible assets | 22.9 | 136.5 | |||||
Goodwill | 26.3 | 452.7 | |||||
Other assets | 0.6 | 21.4 | |||||
Total assets acquired | 55.8 | 1,018.1 | |||||
Accounts payable and accruals | 2.6 | 141.7 | |||||
Customer advance payments | - | 9.0 | |||||
Accrued income taxes payable | - | 3.1 | |||||
Current portion of long-term debt | - | 98.8 | |||||
Long-term debt | - | 154.6 | |||||
Other noncurrent liabilities | - | 67.7 | |||||
Total liabilities assumed | 2.6 | 474.9 | |||||
Purchase price | 53.2 | 543.2 | |||||
Fair value of contingent consideration (non-cash) | -4.3 | 5.5 | |||||
Fair value of Dresser-Rand common stock as partial consideration | - | -243.5 | |||||
Cash acquired | -0.1 | -21.7 | |||||
Cash paid | $ | 48.8 | $ | 283.5 | |||
Acquired intangible assets consist principally 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. As of December, 31, 2013, the Company had invested a total of $5.0 for a 10.0% ownership interest in Bethel. The remaining 90.0% 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. In determining whether the Company should consolidate Bethel, the Company considered that its board participation and ownership interest would not give the Company the power to direct the activities of Bethel and, consequently, would not result in the Company being the primary beneficiary. The investment in Bethel 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 December 31, 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. Aggregate minimum royalties of $6.0 must be paid in the first five years of commercialization, which has not begun, regardless of the amount of revenues generated, or the license will terminate. As of December 31, 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 $17.1 at December 31, 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 $34.4, which have resulted in an aggregate noncontrolling interest of 42.2% at December 31, 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 $29.7 at December 31, 2013. | |||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings Per Share | ' | |||||||||
4.Earnings Per Share | ||||||||||
We calculate basic income per share of common stock by dividing net income by the weighted-average number of common shares outstanding for the period. We exclude non-vested shares of common stock issued in connection with our stock compensation plans from the calculation of the basic weighted-average common shares outstanding until those shares vest. The calculation of diluted income per share of common stock reflects the potential dilution under the treasury stock method that would occur if options issued under our stock compensation plans are exercised and includes any dilutive effect of non-vested shares of common stock issued. The calculation of diluted income per share of common stock excludes the potential exercise of anti-dilutive options. Following is a reconciliation of net income and weighted-average common shares outstanding for purposes of calculating basic and diluted income per share: | ||||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net income attributable to Dresser-Rand | $ | 168.4 | $ | 179.0 | $ | 120.8 | ||||
Weighted-average common shares outstanding: | ||||||||||
(In thousands) | ||||||||||
Basic | 76,139 | 75,487 | 77,532 | |||||||
Dilutive effect of stock-based compensation awards | 687 | 789 | 787 | |||||||
Diluted | 76,826 | 76,276 | 78,319 | |||||||
Net income per share: | ||||||||||
Basic | $ | 2.21 | $ | 2.37 | $ | 1.56 | ||||
Diluted | $ | 2.19 | $ | 2.35 | $ | 1.54 | ||||
Costs_And_Estimated_Earnings_I
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts [Abstract] | ' | ||||||
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | ' | ||||||
5.Costs and Estimated Earnings on Uncompleted Contracts | |||||||
Costs and estimated earnings on uncompleted contracts were as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Costs incurred on uncompleted contracts | $ | 195.5 | $ | 35.0 | |||
Estimated earnings | 52.4 | 15.5 | |||||
247.9 | 50.5 | ||||||
Less: billings to date | -162.7 | -33.4 | |||||
$ | 85.2 | $ | 17.1 | ||||
Costs and estimated earnings in excess of billings | $ | 98.1 | $ | 17.1 | |||
Billings in excess of costs and estimated earnings | -12.9 | - | |||||
$ | 85.2 | $ | 17.1 | ||||
Inventories_Net
Inventories, Net | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory, Net [Abstract] | ' | ||||||
Inventories, net | ' | ||||||
6. Inventories, net | |||||||
Inventories were as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Raw materials | $ | 71.0 | $ | 59.3 | |||
Finished parts | 262.4 | 203.1 | |||||
Work-in-process | 845.9 | 707.9 | |||||
1,179.3 | 970.3 | ||||||
Less: progress payments from clients | -463.3 | -417.8 | |||||
Inventories, net | $ | 716.0 | $ | 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 $129.0 and $101.1 at December 31, 2013 and 2012, respectively. The total allowance for obsolescence for slow-moving inventory for all categories of inventory was $30.7 and $31.6 at December 31, 2013 and 2012, respectively. | |||||||
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property Plant And Equipment [Abstract] | ' | ||||||
Property, Plant And Equipment | ' | ||||||
7. Property, plant and equipment | |||||||
Property, plant and equipment were as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Cost: | |||||||
Land | $ | 33.1 | $ | 31.0 | |||
Buildings and improvements | 261.4 | 213.2 | |||||
Machinery and equipment | 479.0 | 484.1 | |||||
773.5 | 728.3 | ||||||
Less: accumulated depreciation | -301.2 | -261.4 | |||||
Property, plant and equipment, net | $ | 472.3 | $ | 466.9 | |||
Depreciation expense was $63.4, $56.1 and $45.9 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||
The costs above have been reduced for an impairment charge associated with the suspension of operations at our six pig manure treatment facilities in Spain. See Note 25 for additional details regarding the fixed asset impairment charge. | |||||||
Intangible_Assets_And_Goodwill
Intangible Assets And Goodwill | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Intangible Assets And Goodwill [Abstract] | ' | ||||||||||||||
Intangible Assets And Goodwill | ' | ||||||||||||||
8.Intangible Assets and Goodwill | |||||||||||||||
The following table sets forth the weighted-average useful life, gross amount and accumulated amortization of intangible assets: | |||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 120.0 | $ | 24.2 | 39 years | $ | 119.0 | $ | 20.9 | ||||||
Customer relationships | 333.2 | 79.4 | 32 years | 331.7 | 65.9 | ||||||||||
Non-compete agreements | 5.5 | 5.0 | 3 years | 5.4 | 3.8 | ||||||||||
Existing technology | 160.6 | 55.3 | 23 years | 161.6 | 48.0 | ||||||||||
Contracts and purchase agreements | 10.2 | 1.4 | 11 years | 11.1 | 1.0 | ||||||||||
Software | 28.7 | 26.3 | 10 years | 30.6 | 25.0 | ||||||||||
In-process research and development | 12.7 | 0.3 | 10 years | 12.1 | - | ||||||||||
Total amortizable intangible assets | $ | 670.9 | $ | 191.9 | $ | 671.5 | $ | 164.6 | |||||||
Intangible asset amortization expense was $28.9, $29.4 and $33.0 for the years ended December 31, 2013, 2012 and 2011, respectively. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: $29.0 in 2014, $25.4 in 2015, $24.8 in 2016, $24.7 in 2017 and $24.3 in 2018. | |||||||||||||||
The following table represents the changes in goodwill in total and by segment (see Note 22 for additional segment information): | |||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
Balance, December 31, 2011 | $ | 442.6 | $ | 427.2 | $ | 869.8 | |||||||||
Acquisitions | 26.3 | - | 26.3 | ||||||||||||
Foreign currency adjustments | 7.8 | 7.4 | 15.2 | ||||||||||||
Balance, December 31, 2012 | 476.7 | 434.6 | 911.3 | ||||||||||||
Foreign currency adjustments | 11.7 | 4.6 | 16.3 | ||||||||||||
Balance, December 31, 2013 | $ | 488.4 | $ | 439.2 | $ | 927.6 | |||||||||
Accounts_Payable_And_Accruals
Accounts Payable And Accruals | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounts Payable and Accruals [Abstract] | ' | ||||||
Accounts Payable and Accruals | ' | ||||||
9.Accounts Payable and Accruals | |||||||
Accounts payable and accruals were as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Accounts payable | $ | 404.5 | $ | 361.5 | |||
Accruals: | |||||||
Payroll and benefits | 67.7 | 71.6 | |||||
Taxes other than income | 49.4 | 39.3 | |||||
Major inventory purchases | 27.7 | - | |||||
Warranties | 21.4 | 20.1 | |||||
Third-party commissions | 21.4 | 19.3 | |||||
Refundable payments related to cogeneration facilities | 22.3 | - | |||||
Billings in excess of costs and estimated earnings | 12.9 | - | |||||
Interest | 11.8 | 12.8 | |||||
Legal, audit and consulting | 7.6 | 8.3 | |||||
Insurance and claims | 7.2 | 7.7 | |||||
Pension and postretirement benefits | 4.5 | 5.2 | |||||
Forward exchange contracts | 16.3 | 3.8 | |||||
Other | 54.4 | 50.8 | |||||
Total accounts payable and accruals | $ | 729.1 | $ | 600.4 | |||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes [Abstract] | ' | ||||||||||
Income Taxes | ' | ||||||||||
10.Income taxes | |||||||||||
Income before income taxes was generated within the following jurisdictions: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
United States | $ | 98.7 | $ | 92.5 | $ | 52.8 | |||||
Foreign | 158.8 | 183.2 | 131.1 | ||||||||
Total | $ | 257.5 | $ | 275.7 | $ | 183.9 | |||||
The provision for income taxes was as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax expense (benefit) | |||||||||||
United States | $ | 10.6 | $ | 30.7 | $ | -4.7 | |||||
Foreign | 73.8 | 53.5 | 46.8 | ||||||||
Total current | 84.4 | 84.2 | 42.1 | ||||||||
Deferred tax expense (benefit) | |||||||||||
United States | 10.7 | 9.0 | 21.9 | ||||||||
Foreign | -6.9 | -0.4 | -1.1 | ||||||||
Total deferred | 3.8 | 8.6 | 20.8 | ||||||||
Total provision for income taxes | $ | 88.2 | $ | 92.8 | $ | 62.9 | |||||
The provision for income taxes differs from the amount determined by applying the U.S. statutory income tax rate to income before income taxes as a result of the following differences: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
(Decrease) increase in rates resulting from: | |||||||||||
Foreign operations | -12.6 | -4.2 | -3.6 | ||||||||
State and local income taxes, net of U.S. tax | 1.2 | 1.1 | 1.2 | ||||||||
Valuation allowances | 9.1 | 1.9 | 2.8 | ||||||||
Spanish tariff regulations valuation allowance | 5.0 | - | - | ||||||||
Export / manufacturing deductions | -0.8 | -0.9 | - | ||||||||
Qualifying advanced energy credit | - | -0.3 | -1.8 | ||||||||
Research and experimentation credit | -2.6 | -0.2 | -1.6 | ||||||||
Other | -0.1 | 1.3 | 2.2 | ||||||||
Effective tax rate | 34.2 | % | 33.7 | % | 34.2 | % | |||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 14.3 | $ | 13.8 | $ | 4.1 | |||||
Additions based on tax positions related to current year | 3.5 | 0.8 | 0.7 | ||||||||
Additions based on tax positions related to prior year | 2.1 | 1.3 | 1.9 | ||||||||
Tax benefits acquired or assumed in a business combination | - | - | 10.4 | ||||||||
Settlements | -1.2 | -1.6 | -3.2 | ||||||||
Lapse in statute of limitations | -0.5 | -0.2 | - | ||||||||
Foreign currency adjustments | 0.5 | 0.2 | -0.1 | ||||||||
Ending balance | $ | 18.7 | $ | 14.3 | $ | 13.8 | |||||
As of December 31, 2013, 2012 and 2011, the total liability for unrecognized tax benefits was $18.7, $14.3 and $13.8, respectively, all of which would affect the Company’s effective tax rate if recognized. For the year ended December 31, 2013, the Company recognized $4.7 of expense related to uncertain tax positions in the consolidated statement of income. We do not anticipate a material change to our uncertain tax positions during 2014. The Company’s policy is to recognize accrued interest on estimated future required tax payments on unrecognized tax expense as interest expense and any estimated tax penalties as non-operating expenses. Tax years that remain subject to examination by major tax jurisdiction follow: | |||||||||||
Jurisdiction | Open Years | ||||||||||
Brazil | 2008 - 2013 | ||||||||||
Canada | 2008 - 2013 | ||||||||||
France | 2013 | ||||||||||
Germany | 2007 - 2013 | ||||||||||
India | 2005 - 2013 | ||||||||||
Italy | 2009 - 2013 | ||||||||||
Malaysia | 2006 - 2013 | ||||||||||
Netherlands | 2009 - 2013 | ||||||||||
Nigeria | 2010 - 2013 | ||||||||||
Norway | 2006 - 2013 | ||||||||||
Spain | 2009 - 2013 | ||||||||||
United Kingdom | 2007 - 2013 | ||||||||||
United States | 2010 - 2013 | ||||||||||
Venezuela | 2009 - 2013 | ||||||||||
Any material tax amounts due from examination of Guascor locations for tax periods prior to May 4, 2011, are subject to indemnification under an agreement with the sellers of Guascor. | |||||||||||
A summary of the tax effect of temporary differences that create the deferred tax accounts follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | $ | 118.5 | $ | 125.4 | |||||||
Deferred tax assets | |||||||||||
Investment, research and experimentation and other credit carryforward, net | $ | -30.8 | $ | -26.1 | |||||||
Inventories and receivables | -21.1 | -17.2 | |||||||||
Foreign tax credit carryforward | -4.7 | -9 | |||||||||
Other accrued expenses | -12 | -6.9 | |||||||||
Tax net operating loss carryforwards | -107.2 | -86.1 | |||||||||
Pension and employee benefits | -41.9 | -66.7 | |||||||||
Total deferred tax assets | -217.7 | -212 | |||||||||
Valuation allowances | 121.2 | 83.6 | |||||||||
Net deferred tax assets | -96.5 | -128.4 | |||||||||
Total net deferred tax liability (asset) | $ | 22.0 | $ | -3 | |||||||
Presented on the consolidated balance sheet as: | |||||||||||
Current deferred tax assets | $ | -25.2 | $ | -30.5 | |||||||
Current deferred tax liabilities | 3.6 | 6.6 | |||||||||
Noncurrent deferred tax assets | -11.8 | -14.9 | |||||||||
Noncurrent deferred tax liabilities | 55.4 | 35.8 | |||||||||
Total net deferred tax liability (asset) | $ | 22.0 | $ | -3 | |||||||
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. | |||||||||||
As of December 31, 2013 and 2012, net operating loss carryforwards (“NOLs”) of approximately $371.1 and $295.0, respectively, were available to offset future taxable income in certain foreign jurisdictions. If not utilized, these NOLs will begin to expire in 2014. Also, as of December 31, 2013 and 2012, research and experimentation and other tax credits of $30.8 and $26.1, respectively, were available to reduce future foreign income tax liabilities. These tax credits can be carried forward indefinitely. Foreign tax credits as of December 31, 2013 and 2012, were $4.7 and $9.0, respectively. If not utilized, these credits will begin to expire in 2023. Valuation allowances as of December 31, 2013 and December 31, 2012, of $121.2 and $83.6, respectively, have been recorded against these NOLs and certain other deferred tax assets for which it is more-likely-than-not that the tax benefits will not be realized. Forecasted and historical book earnings, tax deductible goodwill, interest expense related to the acquisition and deferred tax liabilities established as a result of acquisition accounting were all used to determine the amount of valuation allowance necessary to reflect the realizability of the related deferred tax assets. | |||||||||||
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 year ended December 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 year ended December 31, 2013, our Luxembourg subsidiary paid a dividend from current earnings to the U.S. parent company of $47.5, generating U.S. foreign tax credits in excess of the statutory U.S. tax rate of approximately $10.6. The impact of these credits and related reserves on the effective tax rate for the year ended December 31, 2013, is a benefit of 3.4%. | |||||||||||
We have reached a settlement with the French tax authorities on an uncertain tax position related to our French operations. Consequently, the estimated liability for uncertain tax positions of approximately $2.3 has been released and a corresponding current tax liability has been recorded for $1.2. The net impact to the effective tax rate for the year ended December 31, 2013, is an increase of 0.4%. | |||||||||||
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 $3.1 for the year ended December 31, 2013. Had this amount been deductible, our effective tax rate would have been 0.4% lower for the year ended December 31, 2013. | |||||||||||
Certain foreign subsidiaries in Brazil and India are operating under tax holiday arrangements that will expire during 2014 and 2015, respectively, subject to potential extensions. For the years ended December 31, 2013, 2012 and 2011, the impact of these tax holiday arrangements lowered income tax expense by $9.1 ($0.12 per diluted share), $2.1 ($0.03 per diluted share) and $3.8 ($0.05 per diluted share), 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. As of December 31, 2013, the Company has accumulated undistributed foreign earnings of approximately $411.1. | |||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
11.Long-Term Debt | |||||||||||||
Long-term debt consists of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Amended Credit Facility | $ | 884.5 | $ | 615.6 | |||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | 4.6 | - | |||||||||||
Other indebtedness | 22.9 | 60.2 | |||||||||||
Total debt | 1,287.0 | 1,050.8 | |||||||||||
Less: current portion | -40.1 | -35.9 | |||||||||||
Total long-term debt | $ | 1,246.9 | $ | 1,014.9 | |||||||||
As of December 31, 2013, the maturities of our debt for each of the five years after 2013 and thereafter are as follows: | |||||||||||||
2014 | $ | 40.1 | |||||||||||
2015 | 23.6 | ||||||||||||
2016 | 20.8 | ||||||||||||
2017 | 20.7 | ||||||||||||
2018 | 805.2 | ||||||||||||
Thereafter | 376.6 | ||||||||||||
$ | 1,287.0 | ||||||||||||
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 euros, 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 December 31, 2013, total outstanding borrowings under the Amended Credit Facility amounted to $884.5, of which $588.8 was outstanding under the revolving credit facilities and $295.7 was outstanding under the term loan facility. The Company had issued $85.5 in letters of credit under the revolving credit facility at December 31, 2013. In addition to these letters of credit, $221.1 of letters of credit and bank guarantees was outstanding at December 31, 2013, which were issued by banks offering uncommitted lines of credit. | |||||||||||||
The Amended Credit Facility bears 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% per annum. | |||||||||||||
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 December 31, 2013. | |||||||||||||
In connection with executing the Amended Credit Facility, the Company incurred fees of $5.1, which are being amortized utilizing the effective interest method over the term of the Amended Credit Facility. Fees totaling $3.4 were amortized to earnings for fiscal year ended December 31, 2013. Included in interest expense were commitment and letter of credit fees of $2.8, $4.7 and $5.5 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Bank Overdraft Facility | |||||||||||||
The Company is party to a $20.0 bank overdraft facility that bears interest at a maximum of the bank’s base rate, plus 2.5% per annum. | |||||||||||||
Senior Subordinated Notes | |||||||||||||
The Company has issued $375.0 in aggregate principal amount of Senior Subordinated Notes, which bear interest at a rate of 6 1/2% per annum. The 6 1/2% Senior Subordinated Notes mature on May 1, 2021. The Company may redeem any of the 6 1/2% Senior Subordinated Notes beginning on May 1, 2016, at a redemption price of 103.250% of their principal amount, plus accrued interest. The redemption price will decline each year after 2016 and will be 100% of their principal amount, plus accrued interest, beginning on May 1, 2019. Prior to May 1, 2016, the Company may redeem the 6 1/2% Senior Subordinated Notes at a redemption price of 100% of the principal amount of the notes plus a “make-whole” premium and accrued interest. Prior to May 1, 2014, the Company may redeem up to 35% of the 6 1/2% Senior Subordinated Notes with the net cash proceeds from certain equity offerings at a redemption price of 106.5% of the principal amount of the notes plus accrued interest. | |||||||||||||
The 6 1/2% Senior Subordinated Notes are general unsecured obligations and are guaranteed on a senior subordinated basis by certain of the Company’s material domestic subsidiaries and rank junior to the Company’s Senior Secured Credit Facility. The 6 1/2% Senior Subordinated Notes contain customary covenants including certain limitations and restrictions on the Company’s ability to incur additional indebtedness, create liens, pay dividends and make distributions in respect of capital stock, redeem capital stock, make investments or certain other restricted payments, sell assets, issue or sell stock of restricted subsidiaries, enter into transactions with affiliates and effect consolidations or mergers. The Company was in compliance with the 6 1/2% Senior Subordinated Notes debt covenants at December 31, 2013. | |||||||||||||
The carrying and fair values of the Company’s Senior Subordinated Notes were as follows: | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 400.5 | $ | 375.0 | $ | 399.1 | |||||
The carrying values of all of the Company’s other long-term debt materially approximate their fair values. | |||||||||||||
Other Indebtedness | |||||||||||||
Bank Loans | |||||||||||||
The Company is party to various bank loans in Italy with a total outstanding principal balance of $0.5 at December 31, 2013. Interest rates for borrowings in Italy range from EURIBOR plus 1.70% to 1.80% per annum. At December 31, 2012, the outstanding principal balance of bank loans totaled $3.8. | |||||||||||||
Project Financing Arrangements | |||||||||||||
Approximately $10.0 of the outstanding project financing balance of $13.3 at December 31, 2013 (bearing interest at the six-month EURIBOR rate plus 1.25% per annum), is associated with pig manure treatment facilities in Spain. Approximately $3.3 of the outstanding project financing balance is related to the design, construction and development of a mini-hydroelectric power generation plant in Brazil, and bears interest at the Brazilian Long Term Rate (“TJLP”) plus 6.0% per annum. Each financing arrangement is senior to all other debt on the related project and is generally collateralized by the assets of the project and the stock of the subsidiary borrower. At December 31, 2012, the outstanding balance related to project financing arrangements was $24.9. | |||||||||||||
Subsidized Loans | |||||||||||||
The Company is party to non-interest bearing subsidized loans from the Ministry of Science and Technology in Spain, the Center for the Development of Industrial Technology in Spain and other similar government agencies. The subsidized loans totaled $5.4 at December 31, 2013. The Company imputed interest on the subsidized loans utilizing the effective interest method for the year ended December 31, 2013. The imputed interest rate was approximately 8.74% for the year ended December 31, 2013. At December 31, 2012, the outstanding balance of subsidized loans was $9.5. | |||||||||||||
Other Notes Payable | |||||||||||||
Other notes payable consist of notes with third parties with varying payment features. The Company is party to a participating loan that bears interest at the six-month EURIBOR rate plus 1.25% per annum. To the extent there is net income, interest accrues based on the financial results of one pig manure treatment plant. The participating loans totaled $1.4 at December 31, 2013. At December 31, 2012, approximately $22.0 of other notes payable was outstanding. | |||||||||||||
Pension_Plans
Pension Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Pension Plans [Abstract] | ' | |||||||||||||||||
Pension Plans | ' | |||||||||||||||||
12. Pension Plans | ||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||
The Company sponsors defined benefit pension plans at U.S. and non-U.S. locations. The U.S. qualified pension plan covers salaried, non-union hourly and certain bargaining unit employees. The benefits are largely frozen, with the exception of those for certain bargaining units, which accumulate according to a flat dollar formula that is not related to future earnings levels. Those employees whose benefits are frozen participate in a defined contribution plan. The defined benefit pension plans sponsored by the Company outside the U.S. are generally not frozen, with future benefits being determined using pensionable earnings and service at the time of determination. | ||||||||||||||||||
Information regarding our pension plans is as follows as of, and for the years ended, December 31: | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Change in projected benefit obligations | ||||||||||||||||||
Benefit obligation at beginning of the period | $ | 314.2 | $ | 286.2 | $ | 159.8 | $ | 141.0 | ||||||||||
Service cost | 3.8 | 3.8 | 5.6 | 5.3 | ||||||||||||||
Interest cost | 11.6 | 12.8 | 6.4 | 6.7 | ||||||||||||||
Employee contributions | - | - | 0.2 | 0.2 | ||||||||||||||
Expenses paid | -1 | -0.9 | -0.1 | -0.3 | ||||||||||||||
Actuarial (gain) loss | -28.8 | 26.4 | 17.2 | 6.8 | ||||||||||||||
Curtailment / settlement | - | - | -43.4 | - | ||||||||||||||
Plan amendments | 0.9 | - | - | - | ||||||||||||||
Benefits paid | -14.7 | -14.1 | -6.3 | -6.9 | ||||||||||||||
Foreign currency adjustments | - | - | -1.1 | 7.0 | ||||||||||||||
Benefit obligation at end of the period | $ | 286.0 | $ | 314.2 | $ | 138.3 | $ | 159.8 | ||||||||||
Change in plan assets | ||||||||||||||||||
Fair value at beginning of the period | $ | 219.2 | $ | 196.5 | $ | 130.9 | $ | 112.3 | ||||||||||
Actual return on assets | 31.9 | 24.5 | 10.0 | 11.7 | ||||||||||||||
Settlements | - | - | -26.8 | - | ||||||||||||||
Company contributions | 11.5 | 13.2 | 10.1 | 8.1 | ||||||||||||||
Employee contributions | - | - | 0.2 | 0.2 | ||||||||||||||
Expenses paid | -1 | -0.9 | -0.1 | -0.3 | ||||||||||||||
Benefits paid | -14.7 | -14.1 | -6.3 | -6.9 | ||||||||||||||
Foreign currency adjustments | - | - | -0.2 | 5.8 | ||||||||||||||
Fair value of assets at end of the period | $ | 246.9 | $ | 219.2 | $ | 117.8 | $ | 130.9 | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||||
Current liabilities | $ | 0.6 | $ | 0.7 | $ | 1.7 | $ | 1.5 | ||||||||||
Noncurrent liabilities | 38.5 | 94.3 | 18.8 | 27.4 | ||||||||||||||
Total balance sheet liability | $ | 39.1 | $ | 95.0 | $ | 20.5 | $ | 28.9 | ||||||||||
Amounts recognized in accumulated other | ||||||||||||||||||
comprehensive loss consists of: | ||||||||||||||||||
Cumulative net actuarial loss | $ | 52.6 | $ | 104.9 | $ | 18.0 | $ | 17.5 | ||||||||||
Cumulative prior service cost | 0.8 | - | 1.0 | 1.3 | ||||||||||||||
Total | $ | 53.4 | $ | 104.9 | $ | 19.0 | $ | 18.8 | ||||||||||
In 2013, the Company amended its Norwegian defined benefit pension plan to discontinue the benefits, which resulted in a curtailment, and concurrently converted the plan to a defined contribution plan, that was considered a plan settlement. As a result, the Company recognized a $3.6 gain in the consolidated statement of income during the year ended December 31, 2013. | ||||||||||||||||||
The components of the net pension expense and amounts recognized in the Consolidated Statement of Comprehensive Income include the following for the years ended December 31: | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Net pension expense | ||||||||||||||||||
Service cost | $ | 3.8 | $ | 3.8 | $ | 3.3 | $ | 5.6 | $ | 5.3 | $ | 4.8 | ||||||
Interest cost | 11.6 | 12.8 | 12.8 | 6.4 | 6.7 | 7.4 | ||||||||||||
Expected return on plan assets | -16.1 | -14.9 | -14.5 | -6.9 | -6.9 | -7.4 | ||||||||||||
Amortization of net actuarial loss | 7.8 | 7.2 | 2.2 | 0.4 | 0.6 | 0.3 | ||||||||||||
Curtailment / settlement | - | - | - | -3.6 | - | - | ||||||||||||
Amortization of prior service cost | - | 0.3 | 1.4 | 0.1 | -0.1 | -0.2 | ||||||||||||
Net pension expense | 7.1 | 9.2 | 5.2 | 2.0 | 5.6 | 4.9 | ||||||||||||
Amounts recognized in other | ||||||||||||||||||
comprehensive (income) loss | ||||||||||||||||||
Net actuarial (gain) loss | -44.5 | 16.7 | 51.4 | 14.0 | 2.1 | 1.2 | ||||||||||||
Prior service cost | 0.9 | - | -0.5 | - | - | - | ||||||||||||
Amortization of net actuarial loss | -7.8 | -7.2 | -2.2 | -0.4 | -0.6 | -0.3 | ||||||||||||
Curtailment / settlement | - | - | - | -13 | - | - | ||||||||||||
Amortization of prior service cost | - | -0.3 | -1.4 | -0.1 | 0.1 | 0.2 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive (income) loss | -51.4 | 9.2 | 47.3 | 0.5 | 1.6 | 1.1 | ||||||||||||
Total recognized | $ | -44.3 | $ | 18.4 | $ | 52.5 | $ | 2.5 | $ | 7.2 | $ | 6.0 | ||||||
The weighted-average assumptions used for benefit obligations and net periodic pension cost is as follows as of, and for the years ended, December 31: | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Weighted-average assumptions | ||||||||||||||||||
used for benefit obligations: | ||||||||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | 4.07 | % | 4.15 | % | 4.76 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.13 | % | 0.15 | % | 2.58 | % | 2.51 | % | 2.69 | % | ||||||
Weighted-average assumptions | ||||||||||||||||||
used for net periodic pension cost: | ||||||||||||||||||
Discount rate | 3.80 | % | 4.60 | % | 5.40 | % | 4.15 | % | 4.76 | % | 5.23 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.15 | % | 0.16 | % | 2.51 | % | 2.69 | % | 4.19 | % | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | 5.44 | % | 6.09 | % | 6.69 | % | ||||||
The Company develops an assumed discount rate for each plan, where possible, using the yields on high-quality corporate bonds with maturities that match the forecasted cash flow requirements of the plan. In locations where a cash flow matching approach is not feasible, due to a lack of available corporate bond information, alternative methods, such as government bond yield information, are used to determine an appropriate discount rate, taking into account the duration of the plan liabilities. | ||||||||||||||||||
The net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net pension expense during 2014 is estimated to be $3.0 and $0.5 for the U.S. and non-U.S. pension plans, respectively. | ||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows at December 31: | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | $ | 286.1 | $ | 314.1 | $ | 31.1 | $ | 56.0 | ||||||||||
Accumulated benefit obligation | 286.1 | 314.1 | 27.1 | 47.0 | ||||||||||||||
Fair value of plan assets | 247.0 | 219.2 | 11.2 | 24.5 | ||||||||||||||
The Company uses an annual measurement date of December 31. The expected long-term rates of return on plan assets are determined as of the measurement date. The expected long-term rates of return are projected to be the rates of return to be earned over the period until the benefits are paid. Accordingly, the long-term rates of return should reflect the rates of return on present investments and expected contributions to be received during the current year and on reinvestments over the period. The rates of return utilized reflect the expected rates of return during the periods for which the payment of benefits is deferred. The expected long-term rate of return on plan assets used is based on what is realistically achievable based on the types of assets held by the plans and the plans’ investment policy. Historical asset return trends for the larger plans are reviewed over fifteen, ten and five years. The Company reviews each plan and its historical returns and asset allocations to determine the appropriate expected long-term rate of return on plan assets to be used. | ||||||||||||||||||
U.S. Plans | ||||||||||||||||||
The asset allocations of the Company’s U.S. pension plans by asset category are as follows: | ||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 3.6 | $ | - | $ | 3.6 | $ | - | ||||||||||
U.S. large-cap equities | 67.8 | 67.8 | - | - | ||||||||||||||
U.S. small-cap value equities | 13.8 | 13.8 | - | - | ||||||||||||||
U.S. small-cap growth equities | 12.1 | 12.1 | - | - | ||||||||||||||
International equities | 39.3 | - | 39.3 | - | ||||||||||||||
U.S. fixed income (1) | 60.8 | 60.8 | - | - | ||||||||||||||
Global asset allocations (2) | 49.5 | 24.3 | 25.2 | - | ||||||||||||||
Total | $ | 246.9 | $ | 178.8 | $ | 68.1 | $ | - | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 2.9 | $ | - | $ | 2.9 | $ | - | ||||||||||
U.S. large-cap equities | 54.5 | 54.5 | - | - | ||||||||||||||
U.S. small-cap value equities | 10.8 | 10.8 | - | - | ||||||||||||||
U.S. small-cap growth equities | 10.1 | 10.1 | - | - | ||||||||||||||
International equities | 33.0 | - | 33.0 | - | ||||||||||||||
U.S. fixed income (1) | 63.3 | 63.3 | - | - | ||||||||||||||
Global asset allocations (2) | 44.6 | 22.1 | 22.5 | - | ||||||||||||||
Total | $ | 219.2 | $ | 160.8 | $ | 58.4 | $ | - | ||||||||||
(1)U.S. Fixed Income: Includes investments in the broad fixed income market such as government and agency bonds, mortgage bonds, and corporate bonds. Duration of the bonds may range from short (e.g., three months or less) to very long (e.g., 12 years or longer). Credit quality of U.S. Fixed Income is generally high quality in nature (e.g., AAA to BBB) but can also include lower quality or high yield bonds (e.g., BB or lower). Common indices are the Barclays Aggregate and Citigroup Broad Investment Grade Index. | ||||||||||||||||||
(2)Global Asset Allocations: Broadly diversified strategy where investment managers have the capacity to invest in multiple asset classes and the ability to alter asset class allocations with agreed tolerances. In some cases, there are no common indices for the assets in this asset class and typically a blended index of equities and fixed income is utilized, ex. 60% S&P 500/40% Barclays Aggregate. | ||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||
The asset allocations of the Company’s non-U.S. pension plans by asset category are as follows: | ||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 0.5 | $ | - | $ | 0.5 | $ | - | ||||||||||
U.S. equities | 10.4 | - | 10.4 | - | ||||||||||||||
International equities | 54.6 | - | 54.6 | - | ||||||||||||||
International fixed income (1) | 39.6 | - | 39.6 | - | ||||||||||||||
Insurance contracts (2) | 12.7 | - | - | 12.7 | ||||||||||||||
Total | $ | 117.8 | $ | - | $ | 105.1 | $ | 12.7 | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 1.2 | $ | - | $ | 1.2 | $ | - | ||||||||||
U.S. equities | 8.7 | - | 8.7 | - | ||||||||||||||
International equities | 50.0 | 2.2 | 47.8 | - | ||||||||||||||
International fixed income (1) | 41.5 | - | 41.5 | - | ||||||||||||||
Insurance contracts (2) | 29.5 | - | - | 29.5 | ||||||||||||||
Total | $ | 130.9 | $ | 2.2 | $ | 99.2 | $ | 29.5 | ||||||||||
(1)International Fixed Income: Includes investments in the broad fixed income market such as government and corporate bonds. Duration of the bonds usually range over 15 years. Credit quality of International Fixed Income is generally high quality in nature (e.g., AAA to A). Common indices are the FTSE UK Gilts >15 Years, iBoxx £ Non-Gilts ex BBB 15 Year + and FTSE A Index-Linked > Five Years. | ||||||||||||||||||
(2)Insurance Contracts: Provided by insurance companies that pay benefits to retirees. | ||||||||||||||||||
A reconciliation of the fair value measurements of non-U.S. plan assets using significant unobservable inputs (Level 3) is as follows for the years ended December 31: | ||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Beginning balance | $ | 29.5 | $ | 24.1 | ||||||||||||||
Actual return on assets | 0.1 | 1.5 | ||||||||||||||||
Company contributions | 12.6 | 3.7 | ||||||||||||||||
Foreign exchange | -2.5 | 1.7 | ||||||||||||||||
Benefit payments | -1.2 | -1.2 | ||||||||||||||||
Settlements | -25.8 | -0.3 | ||||||||||||||||
Ending balance | $ | 12.7 | $ | 29.5 | ||||||||||||||
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’s investment objectives in managing its defined benefit plan assets are to provide reasonable assurance that present and future benefit obligations to all participants and beneficiaries are met as they become due; to provide a total return that, over the long-term, maximizes the ratio of the plan assets to liabilities, while minimizing the present value of required Company contributions at the appropriate levels of risk; and to meet any statutory requirements, laws and local regulatory agencies’ requirements. Key investment decisions involving asset allocations, investment manager structure, investment managers, investment advisors and trustees or custodians are reviewed regularly. An asset liability modeling study is used as the basis for aggregated asset allocation decisions and updated approximately every five years or as required. The Company’s current global asset allocation strategy for its pension plans is 60% in equity securities and 40% in debt securities and cash excluding those assets in non-U.S. plans required by regulation to be in insurance contracts or other similar assets. The Company sets upper limits and lower limits of plus or minus 5%. The rebalancing strategy is reviewed quarterly if cash flows are not sufficient to rebalance the plans and appropriate action is taken to bring the plans within the strategic allocation ranges. | ||||||||||||||||||
The Company’s policy is to contribute to the U.S. qualified plan the amount necessary to maintain benefits under the Pension Protection Act of 2006, and additional discretionary amounts, up to the limitations imposed by the applicable tax codes. Contributions to the UK pension plans are determined in agreement with the plan trustees. Contributions to funded plans in other countries are based on applicable local funding requirements. The Company currently estimates that it will contribute to its U.S. and non-U.S. pension plans approximately $10.7 and $1.7, respectively, in 2014. | ||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company contributed approximately $1.1, $1.0 and $1.0, respectively, to two multiemployer plans that are insignificant to the Company individually and in the aggregate. | ||||||||||||||||||
U.S. pension benefit payments are expected to be paid as follows: $16.4 in 2014, $17.0 in 2015, $17.7 in 2016, $18.4 in 2017, $19.1 in 2018 and $104.3 for the years 2019 to 2023. Non-U.S. pension benefit payments are expected to be paid as follows: $7.0 in 2014, $6.1 in 2015, $8.1 in 2016, $7.1 in 2017, $7.4 in 2018 and $39.7 for the years 2019 to 2023. | ||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||
Most of the Company’s U.S. employees are covered by savings and other defined contribution plans. Employer contributions and costs are determined based on criteria specific to the individual plans and were $18.2 for the year ended December 31, 2013, $16.5 for 2012, and $16.5 for 2011. The Company’s costs relating to non-U.S. defined contribution plans, insured plans and other non-U.S. benefit plans were approximately $4.0 for the year ended December 31, 2013, $3.4 for 2012, and $3.2 for 2011. | ||||||||||||||||||
Certain key employees of the Company are eligible to participate, on a voluntary basis, in the Dresser-Rand Company Non-Qualified Deferred Compensation Retirement Plan (“Non-Qualified Plan”). On an annual basis, eligible participants elect to defer a percentage of their eligible annual base salary and/or annual incentive payment as contributions to the Non-Qualified Plan and elect the manner in which their account balance be distributed upon termination. The Company accounts for the deferred compensation arrangements of the Non-Qualified Plan, which are invested in mutual funds and held in a rabbi trust, separately as assets and liabilities of the Company. The assets of the Non-Qualified Plan, which are held in the rabbi trust, are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The Company recorded net compensation expense adjustments to the liability of $4.0, $4.3 and $3.9 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
PostRetirement_Benefits_Other_
Post-Retirement Benefits Other Than Pensions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Post-Retiements Benefits Other Than Pensions [Abstract] | ' | |||||||||||
Post-Retirement Benefits Other Than Pensions | ' | |||||||||||
13.Post-Retirement Benefits Other than Pensions | ||||||||||||
The Company sponsors post-retirement plans that cover certain eligible U.S. employees that provide for healthcare and life insurance benefits. The post-retirement health plans are generally contributory with the required retiree contributions adjusted annually, while the life insurance plans are fully paid for by the Company. The Company funds the post-retirement benefit costs principally on a pay-as-you-go basis. Healthcare coverage is coordinated with Medicare. | ||||||||||||
The post-retirement medical and life benefit coverage has been eliminated for certain future retirees, with the exception of some grandfathered employees. | ||||||||||||
Summary information on the Company’s plans was as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of the period | $ | 19.6 | $ | 18.6 | ||||||||
Interest cost | 0.8 | 0.8 | ||||||||||
Benefits paid | -0.6 | -0.4 | ||||||||||
Actuarial (gains) losses | -3.4 | 0.6 | ||||||||||
Unfunded benefit obligation at end of the period and consolidated balance sheet liability | $ | 16.4 | $ | 19.6 | ||||||||
Amounts recognized in the balance sheet: | ||||||||||||
Current liabilities | $ | 1.3 | $ | 1.0 | ||||||||
Noncurrent liabilities | 15.1 | 18.6 | ||||||||||
Total consolidated balance sheet liability | $ | 16.4 | $ | 19.6 | ||||||||
Amounts recognized in accumulated other comprehensive income: | ||||||||||||
Cumulative net actuarial loss | $ | 1.9 | $ | 5.9 | ||||||||
Cumulative net prior service credit | -0.6 | -0.6 | ||||||||||
Total | $ | 1.3 | $ | 5.3 | ||||||||
The net actuarial loss and prior service credit for the post-retirement benefit plans other than pensions that will be amortized from accumulated other comprehensive income into net post-retirement benefit income during 2014 is estimated to be $0.2. | ||||||||||||
Benefit payments for post-retirement benefits are expected to be paid as follows: $1.3 in 2014, $1.4 in 2015, $1.4 in 2016, $1.2 in 2017, $1.1 in 2018 and $5.1 in the aggregate for the years 2019 to 2023. | ||||||||||||
The components of the net post-retirement benefit expense (income) and amounts recognized in other comprehensive loss (income) were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net post-retirement benefits expense (income) | ||||||||||||
Interest cost | $ | 0.8 | $ | 0.8 | $ | 0.9 | ||||||
Amortization of | ||||||||||||
Net prior service credit | - | - | -1.7 | |||||||||
Net actuarial loss | 0.6 | 1.0 | 0.9 | |||||||||
Total post-retirement benefits expense | 1.4 | 1.8 | 0.1 | |||||||||
Amounts recognized as other comprehensive (income) loss | ||||||||||||
Net actuarial (gain) loss | -3.4 | 0.6 | 2.9 | |||||||||
Amortization of | ||||||||||||
Net prior service credit | - | - | 1.7 | |||||||||
Net actuarial loss | -0.6 | -1 | -0.9 | |||||||||
Total recognized in comprehensive (income) loss | -4 | -0.4 | 3.7 | |||||||||
Total recognized | $ | -2.6 | $ | 1.4 | $ | 3.8 | ||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 | ||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | ||||||
Measurement date | 12/31/13 | 12/31/12 | 12/31/11 | |||||||||
Weighted-average assumptions used to determine net periodic benefit expense (income) for the years ended December 31 | ||||||||||||
Discount rate | 3.80 | % | 4.60 | % | 5.30 | % | ||||||
Measurement date | 12/31/12 | 12/31/11 | 12/31/10 | |||||||||
Assumed health care cost trend rates | ||||||||||||
Current year trend rate | 7.70 | % | 8.30 | % | 8.30 | % | ||||||
Ultimate trend rate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||
Year that the rate reaches the ultimate trend rate | ||||||||||||
Benefit obligations at end of period | 2034 | 2034 | 2033 | |||||||||
Net periodic benefit cost for the year | 2034 | 2033 | 2032 | |||||||||
The Company selects the assumed discount rate using available high quality bonds with maturities and distributions that match the forecasted cash flow of the plan. | ||||||||||||
A 1% change in the medical trend rate assumed for post-retirement benefits would have the following effects for the year ended and as of December 31, 2013: | ||||||||||||
1% Increase | 1% Decrease | |||||||||||
Effect on total post-retirement benefit expense | $ | 0.1 | $ | -0.1 | ||||||||
Effect on post-retirement benefit liability | 1.3 | -1.1 | ||||||||||
Share_Repurchases
Share Repurchases | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Share Repurchases [Abstract] | ' | |||||||||||||
Share Repurchases | ' | |||||||||||||
14. Share Repurchases | ||||||||||||||
On February 10, 2011, the Company’s Board of Directors authorized the repurchase of up to $450.0 of the Company’s common stock. On August 26, 2011, the Company’s Board of Directors further authorized the repurchase of up to $150.0 of the Company’s common stock, including amounts authorized on February 10, 2011, but not yet used to repurchase common stock. | ||||||||||||||
During the year ended December 31, 2011, the Company completed three accelerated stock repurchase programs utilizing all of the repurchase authority granted by the Board. The repurchases were funded from operating cash flows and borrowings under the Company’s Senior Secured Credit Facility. The total number of shares purchased was determined by dividing the purchase price by the volume-weighted-average trading prices of the Company’s shares of common stock during the applicable valuation period, minus a fixed discount. The plans were executed as follows: | ||||||||||||||
Date Initiated | Type of Program | Amount Paid | Date Completed | Initial Shares Delivered | Final Share Settlement | Total Shares Purchased | ||||||||
15-Mar-11 | Collared | $ | 275.0 | 4-Aug-11 | 4,740,584 | 641,635 | 5,382,219 | |||||||
22-Mar-11 | Uncollared | $ | 80.0 | 4-Aug-11 | 1,143,293 | 448,487 | 1,591,780 | |||||||
26-Aug-11 | Uncollared | $ | 150.0 | 29-Sep-11 | 3,011,242 | 456,227 | 3,467,469 | |||||||
$ | 505.0 | 10,441,468 | ||||||||||||
Outstanding shares used to calculate earnings per share were reduced by the number of shares repurchased when they were delivered, and the total $505.0 purchase price of the programs was recorded as a reduction in consolidated stockholders’ equity. | ||||||||||||||
Since September 30, 2011, the Company had no remaining authorization to repurchase shares of the Company. | ||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Financial Instruments [Abstract] | ' | ||||||
Financial Instruments | ' | ||||||
15. 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 is party to 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 $24.8) 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 December 31, 2013 and 2012, was $0.7 and $1.0, respectively, and the related unrealized gain (loss) for the year ended December 31, 2013, 2012 and 2011, was $0.3, ($0.1) and ($0.5), 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: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Foreign currency exchange contracts assets | $ | 5.4 | $ | 8.5 | |||
Foreign currency exchange contracts liabilities | $ | 16.3 | $ | 3.8 | |||
The notional amount for the forward exchange contracts outstanding as of December 31, 2013, and December 31, 2012, was $546.6 and $576.6, respectively. The net foreign currency (losses) gains recognized for forward currency contracts were $(14.7), $7.9 and ($1.8) for the years ended December 31, 2013, 2012 and 2011, 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 $0.1 and $0.8 at December 31, 2013 and 2012, respectively. | |||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
16.Commitments and Contingencies (£, € and R$ 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 was renegotiated in 2013 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 amend properly 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 accrued £3.0 (approximately $5.0) 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. On January 31, 2014, the High Court found that the sex equalization had been correctly implemented at the relevant time. Accordingly, the Company does not believe that it has any further financial or legal exposure relating to this matter, eliminating the need for any accrual. | |
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 $9.6) 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 has been approved by the Court of Conti, MISE agreed to waive sanctions, interest and other related costs, which the Company had previously accrued, in exchange for which Enviroil paid to MISE approximately €7.3 (approximately $10.0) in satisfaction of all of MISE’s outstanding claims. Pursuant to an indemnification required in the SPA, the settlement was paid during 2013 by the sellers of Guascor directly to the counterparty. | |
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 $1.5) (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 $15.9). 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 ($5.8). 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 ($13.9). | |
Lease Commitments | |
On December 28, 2007, the Company executed a lease transaction including a committed line of credit of up to €23.0 (approximately $31.6) that was used to fund construction of a new compressor testing facility (the “Facility”) in close proximity to the Company’s operation in France. The Company began leasing the Facility in January 2010, and is required to pay rent during the initial base term of the lease in an amount equal to the aggregate amount of interest payable by the lessor on the outstanding principal amount of the debt incurred by the lessor. Interest is determined by reference to the EURIBOR Rate plus an applicable margin of between 1.25% and 2.50%. The initial base term of the lease expires in February 2015. At maturity, the Company may either terminate or, subject to the mutual agreement, extend the lease. The Company may purchase the Facility at any time for the amount of the lessor’s debt outstanding, including upon maturity of the lease. If the lease is terminated, the Company has guaranteed that the lessor will receive at least 80% of the cost of the Facility upon the sale of the Facility. The Company anticipates that the lease will mature in 2015. The operating lease contains representations, warranties and covenants typical of such leases. Any event of default could accelerate the Company’s payments under the terms of the lease. | |
Certain office and warehouse facilities, transportation vehicles and data processing equipment are leased. Total rental expense relating to these leases was approximately $28.9, $25.4 and $27.7 for the years ended December 31, 2013, 2012 and 2011, respectively. Minimum lease payments required under non-cancelable operating leases at December 31, 2013, with terms in excess of one year for the next five years and thereafter are as follows: $22.5 in 2014, $16.4 in 2015, $12.3 in 2016, $9.8 in 2017, $8.4 in 2018 and $22.1 thereafter. | |
Warranties
Warranties | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Warranties [Abstract] | ' | ||||||||
Warranties | ' | ||||||||
17. 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: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 20.1 | $ | 25.6 | $ | 28.2 | |||
Liabilities assumed from acquisitions | - | - | 6.7 | ||||||
Provision for warranties issued during period | 19.9 | 17.3 | 17.6 | ||||||
Adjustments to warranties issued in prior periods | 2.2 | -2.9 | -7.1 | ||||||
Payments during the period | -19.6 | -19.8 | -18.4 | ||||||
Foreign currency adjustments | -1.2 | -0.1 | -1.4 | ||||||
Ending balance | $ | 21.4 | $ | 20.1 | $ | 25.6 | |||
Incentive_StockBased_Compensat
Incentive Stock-Based Compensation Plans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Incentive Stock-Based Compensation Plans [Abstract] | ' | ||||||||
Incentive Stock-Based Compensation Plans | ' | ||||||||
18.Incentive Stock-Based Compensation Plans | |||||||||
The Company’s 2008 Stock Incentive Plan enables the Compensation Committee of the Board of Directors to award incentive and non-qualified stock options, stock appreciation rights, shares of common stock, restricted stock, restricted stock units and incentive bonuses (which may be paid in cash or stock or a combination thereof), any of which may be performance-based, with vesting and other award provisions, to Company employees (including officers) and other service providers. The Nominating and Governance Committee has similar rights under the 2008 Plan with respect to non-employee directors. The maximum number of shares that may be issued under the 2008 Plan is 6,000,000. The 2008 Plan is currently the sole plan for providing future grants of equity-based incentive compensation to eligible employees, non-employee directors and service providers. Expense for grants to employees under the 2005 Stock Incentive Plan, as amended, the 2005 Directors Stock Incentive Plan, as amended (collectively, the “Pre-existing Compensation Plans”), and the 2008 Plan totaled $25.9 for 2013, $28.4 for 2012 and $19.8 for 2011. At December 31, 2013, 2,228,540 shares were available for future grants and total unrecognized deferred stock compensation expected to be recognized over the remaining weighted-average vesting periods of 1.55 years for outstanding employee grants was $27.2. The Company currently expects to issue new shares upon exercise of options and vesting of restricted stock units. | |||||||||
The following table summarizes option and stock appreciation right activity during 2013, 2012 and 2011: | |||||||||
Shares | Weighted-Average Exercise Price | ||||||||
Balance, December 31, 2010 | 1,587,766 | $ | 26.02 | ||||||
Granted | 190,539 | $ | 46.53 | ||||||
Exercised | -247,838 | $ | 25.50 | ||||||
Forfeited | -4,438 | $ | 29.04 | ||||||
Expired | -594 | $ | 37.27 | ||||||
Balance, December 31, 2011 | 1,525,435 | $ | 28.60 | ||||||
Granted | 174,201 | $ | 52.40 | ||||||
Exercised | -117,729 | $ | 26.23 | ||||||
Forfeited | -24,215 | $ | 33.64 | ||||||
Expired | - | $ | - | ||||||
Balance, December 31, 2012 | 1,557,692 | $ | 31.35 | ||||||
Granted | 205,661 | $ | 62.27 | ||||||
Exercised | -285,917 | $ | 29.59 | ||||||
Forfeited | -11,344 | $ | 49.84 | ||||||
Expired | -282 | $ | 52.40 | ||||||
Balance, December 31, 2013 | 1,465,810 | $ | 35.89 | ||||||
Exercisable December 31, 2011 | 845,361 | $ | 26.11 | ||||||
Exercisable December 31, 2012 | 1,103,694 | $ | 26.27 | ||||||
Exercisable December 31, 2013 | 1,112,189 | $ | 28.73 | ||||||
The weighted-average grant date fair value per share of options and stock appreciation rights granted to employees during the year ended December 31, 2013, 2012 and 2011, was $21.52, $21.05, and $18.54, respectively. The total intrinsic value of options exercised during the year ended December 31, 2013, was approximately $8.2. The tax benefit realized from the exercise of stock options during the year ended December 31, 2013, was $1.5. The aggregate intrinsic value of options and stock appreciation rights outstanding at December 31, 2013, was $35.3. The total fair value of options and stock appreciation rights vested during the year ended December 31, 2013, 2012 and 2011, was $4.6, $4.9 and $5.2, respectively. | |||||||||
The options and stock appreciation rights granted have a 10 year contract term. Restricted stock, options and stock appreciation rights granted prior to 2010 vest over a four year period. Beginning in 2010, the Company granted restricted stock, options and stock appreciation rights which vest over a three year period, as well as Performance Restricted Stock Units (“PRSUs”). PRSUs vest annually over a three year period to the extent that the percentile rank of the shareholder return of the Company’s stock is at or above the 25th percentile of a selected peer group, with 16.67% vesting if such percentile rank is at this threshold level and up to 50.00% vesting if such percentile rank is at or above the 75th percentile of the selected peer group. | |||||||||
The Company estimates the grant date fair value of PRSUs using a Monte Carlo Simulation Model. Estimated fair value is determined based on certain input parameters of the Company and the peer group, including the stock price at the beginning of the performance period and on the valuation date, annual expected rate of return over the performance period, annual expected volatility over the performance period and the correlation coefficient of the daily returns. | |||||||||
The Company estimates the fair value of stock options and stock appreciation rights using a Black-Scholes option valuation model. Key inputs and assumptions used to estimate the fair value of stock options and stock appreciation rights include the grant price of the award, the expected option term, volatility of the Company’s stock, the risk-free rate and the Company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. The following table presents the weighted-average grant date assumptions used to estimate the fair value of options and stock appreciation rights granted. | |||||||||
2013 | 2012 | 2011 | |||||||
Option term (years) | 5.0 | 5.0 | 5.5 | ||||||
Volatility | 38.4 | % | 45.4 | % | 39.6 | % | |||
Risk-free interest rate (zero coupon U.S. Treasury note) | 0.92 | % | 0.81 | % | 2.35 | % | |||
Dividend yield | - | - | - | ||||||
The option term is the number of years that the company estimates that options will be outstanding prior to exercise. Volatility is based on the estimated daily price changes of the Company’s stock over the expected option term. Both of these estimates are based, in part, on similarly situated companies, as well as Company experience. | |||||||||
The following table summarizes employee shares, share units and PRSU activity during 2013, 2012 and 2011, and grant date fair values: | |||||||||
Shares | Weighted-Average Grant Price | ||||||||
Nonvested at December 31, 2010 | 1,017,923 | $ | 27.14 | ||||||
Granted | 353,950 | $ | 46.54 | ||||||
Vested | -412,784 | $ | 27.42 | ||||||
Forfeited | -23,570 | $ | 24.42 | ||||||
Nonvested at December 31, 2011 | 935,519 | $ | 34.44 | ||||||
Granted | 675,809 | $ | 51.06 | ||||||
Vested | -474,053 | $ | 33.11 | ||||||
Forfeited | -48,272 | $ | 39.12 | ||||||
Nonvested at December 31, 2012 | 1,089,003 | $ | 45.48 | ||||||
Granted | 402,730 | $ | 59.99 | ||||||
Vested | -789,700 | $ | 43.10 | ||||||
Forfeited | -47,015 | $ | 54.36 | ||||||
Nonvested at December 31, 2013 | 655,018 | $ | 56.70 | ||||||
The total fair value of restricted stock awards which vested during the years ended December 31, 2013, 2012 and 2011, was $51.9, $25.1 and $20.8, respectively. | |||||||||
The Company also grants shares to non-employee Directors. Shares granted to non-employee Directors after fiscal year 2008 vest after a one year period. Shares granted to non-employee Directors in 2013 vested immediately. The total fair value of the 13,972 shares granted in 2013 at the respective grant dates was $0.8, the 15,459 shares granted in 2012 at the respective grant dates was $0.8 and the 18,901 shares granted in 2011 at the respective grant dates was $0.9. | |||||||||
Significant_Clients_And_Concen
Significant Clients And Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Significant Concentration Of Credit Risk [Abstract] | ' |
Significant Concentration Of Credit Risk | ' |
19. Significant Clients and Concentration of Credit Risk | |
The Company supplies equipment and services to the oil and gas industry, which is comprised of a relatively small number of consumers. Within any given year, sales can vary greatly due to the large projects that might be underway with any given oil and gas producer. During the years ended December 31, 2013, 2012 and 2011, no one customer comprised more than 10% of sales. | |
The Company has operations and does business in various countries outside the U.S. It is possible that political instability, foreign currency devaluations or other unanticipated adverse events could materially affect the operations of the Company. At December 31, 2013, approximately 16.2% 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, and payments of approximately $24.7 have been received subsequent to December 31, 2013. 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. | |
Other_Expense_Net
Other Expense, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Expense, Net [Abstract] | ' | ||||||||
Other Expense, Net | ' | ||||||||
20. Other Expense, net | |||||||||
Other expense, net includes the following: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Foreign currency losses | $ | -0.8 | $ | -9 | $ | -2.7 | |||
(Loss) gain on forward exchange contracts | -14.7 | 7.9 | -1.8 | ||||||
Net loss from equity investment | -5.6 | -2.1 | -2.6 | ||||||
Realized gains of deferred compensation plan | -1.4 | -0.9 | -0.6 | ||||||
Unrealized (gain) loss of deferred compensation plan | -2.7 | -1.2 | 0.7 | ||||||
Deferred compensation expense due to changes in fair value | 4.1 | 2.1 | -0.1 | ||||||
Fair value adjustment of tradable emission allowances | 0.2 | 0.2 | 3.2 | ||||||
Fair value adjustment of contingent consideration | - | 1.0 | -0.9 | ||||||
Other miscellaneous income | 4.3 | 2.0 | 1.8 | ||||||
Total other expense, net | $ | -16.6 | $ | - | $ | -3 | |||
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 $3.1 for the year ended December 31, 2013. | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share Repurchases [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") | ' | ||||||||||||
21.Accumulated Other Comprehensive Income (Loss) (“AOCI”) | |||||||||||||
AOCI and the changes in AOCI by component, net of tax, 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 | -18.2 | - | - | -18.2 | |||||||||
Amounts reclassified from AOCI | - | 0.3 | 33.8 | 34.1 | |||||||||
Net current period other comprehensive (loss) income | -18.2 | 0.3 | 33.8 | 15.9 | |||||||||
At December 31, 2013 | $ | -69.5 | $ | -0.4 | $ | -48.9 | $ | -118.8 | |||||
Items reclassified out of AOCI into net income for the year ended December 31, 2013 were as follows: | |||||||||||||
Amount Reclassified From AOCI into Net Income | Affected Line Item in the | ||||||||||||
Year Ended | Consolidated Statement | ||||||||||||
Details About AOCI Components | 31-Dec-13 | of Income | |||||||||||
Unrealized gain on derivatives | $ | -0.4 | Interest expense, net | ||||||||||
0.1 | Provision for income taxes | ||||||||||||
$ | -0.3 | Net of tax | |||||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -8.9 | (a) | ||||||||||
Recognized net actuarial gain | -33.9 | (a) | |||||||||||
Gain from curtailment / settlement | -13 | (a) | |||||||||||
Benefit plan amendments | 0.9 | (a) | |||||||||||
Total before tax | -54.9 | Income before income taxes | |||||||||||
21.1 | Provision for income taxes | ||||||||||||
$ | -33.8 | Net of tax | |||||||||||
Total reclassifications, net of tax | $ | -34.1 | Net of tax | ||||||||||
(a)These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 12, Pension Plans and Note 13, Post-retirement Benefits Other than Pensions for additional information. | |||||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Information [Abstract] | ' | |||||||||
Segment Information | ' | |||||||||
22.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. | |||||||||
These functions have been defined as the operating segments of the Company because they are the segments (1) that engage in business activities from which revenues are earned and expenses are incurred; (2) whose operating results are regularly reviewed by the Corporation’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (3) for which discrete financial information is available. | ||||||||||
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 years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
New units | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Aftermarket parts and services | 1,508.5 | 1,434.8 | 1,229.4 | |||||||
Total revenues | $ | 3,032.6 | $ | 2,736.4 | $ | 2,311.6 | ||||
Income from operations | ||||||||||
New units | $ | 140.3 | $ | 117.9 | $ | 110.4 | ||||
Aftermarket parts and services | 295.7 | 323.2 | 252.7 | |||||||
Unallocable | -115 | -105.2 | -104.4 | |||||||
Total income from operations | $ | 321.0 | $ | 335.9 | $ | 258.7 | ||||
Depreciation and amortization | ||||||||||
New units | $ | 45.0 | $ | 44.3 | $ | 37.3 | ||||
Aftermarket parts and services | 47.3 | 41.2 | 41.6 | |||||||
Total depreciation and amortization | $ | 92.3 | $ | 85.5 | $ | 78.9 | ||||
External revenues by products and services | ||||||||||
New units: | ||||||||||
Products | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Total | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Aftermarket parts and services: | ||||||||||
Products | $ | 695.7 | $ | 623.5 | $ | 557.6 | ||||
Services | 812.8 | 811.3 | 671.8 | |||||||
Total | $ | 1,508.5 | $ | 1,434.8 | $ | 1,229.4 | ||||
Revenues by destination | ||||||||||
United States | $ | 854.1 | $ | 828.0 | $ | 664.8 | ||||
Canada | 73.9 | 73.5 | 56.2 | |||||||
North America | 928.0 | 901.5 | 721.0 | |||||||
Latin America | 428.3 | 445.7 | 409.5 | |||||||
Europe | 796.6 | 680.1 | 501.6 | |||||||
Asia-Pacific, Southern Asia | 520.8 | 422.8 | 353.1 | |||||||
Middle East, Africa | 358.9 | 286.3 | 326.4 | |||||||
Total revenues | $ | 3,032.6 | $ | 2,736.4 | $ | 2,311.6 | ||||
Total assets by segment were as follows: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Goodwill | ||||||||||
New units | $ | 488.4 | $ | 476.7 | ||||||
Aftermarket parts and services | 439.2 | 434.6 | ||||||||
Total goodwill | $ | 927.6 | $ | 911.3 | ||||||
Total assets (including goodwill) | ||||||||||
New units | $ | 1,113.8 | $ | 898.8 | ||||||
Aftermarket parts and services | 1,305.0 | 1,126.7 | ||||||||
Unallocable | 1,319.0 | 1,328.5 | ||||||||
Total assets | $ | 3,737.8 | $ | 3,354.0 | ||||||
Long-lived assets by geographic area | ||||||||||
United States | $ | 177.2 | $ | 180.8 | ||||||
Canada | 2.6 | 2.5 | ||||||||
North America | 179.8 | 183.3 | ||||||||
Latin America | 94.0 | 95.2 | ||||||||
Europe | 140.2 | 160.3 | ||||||||
Asia-Pacific, Southern Asia | 18.0 | 18.0 | ||||||||
Middle East, Africa | 40.3 | 10.1 | ||||||||
Total long-lived assets | $ | 472.3 | $ | 466.9 | ||||||
For the year ended December 31, 2011, sales to clients in Brazil were 11.2% of total revenues. No other sales to clients within individual countries outside the U.S. exceeded 10% of the total revenues in any year presented. | ||||||||||
Long-lived assets in Brazil were $91.9 and $93.6 as of December 31, 2013 and 2012, respectively. Long-lived assets in Spain were $35.4 and $81.7 as of December 31, 2013 and 2012, respectively. | ||||||||||
Selected_Unaudited_Quarterly_F
Selected Unaudited Quarterly Financial Data | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Selected Unaudited Quarterly Financial Data [Abstract] | ' | |||||||||||
Selected Unaudited Quarterly Financial Data | ' | |||||||||||
23. Selected Unaudited Quarterly Financial Data | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2013 | 2013 | 2013 | 2013 | |||||||||
Total revenues | $ | 766.4 | $ | 805.3 | $ | 633.9 | $ | 827.0 | ||||
Gross profit | 172.0 | 198.2 | 182.8 | 232.3 | ||||||||
Net income attributable to Dresser-Rand | 32.9 | 53.3 | 49.4 | 32.8 | ||||||||
Net income per share | ||||||||||||
Basic | 0.43 | 0.70 | 0.65 | 0.43 | ||||||||
Diluted | 0.43 | 0.69 | 0.64 | 0.43 | ||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2012 | 2012 | 2012 | 2012 | |||||||||
Total revenues | $ | 661.8 | $ | 635.8 | $ | 594.4 | $ | 844.4 | ||||
Gross profit | 144.9 | 167.8 | 170.6 | 248.8 | ||||||||
Net income attributable to Dresser-Rand | 23.6 | 34.0 | 41.2 | 80.2 | ||||||||
Net income per share | ||||||||||||
Basic | 0.31 | 0.45 | 0.55 | 1.06 | ||||||||
Diluted | 0.31 | 0.45 | 0.54 | 1.05 | ||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
Supplemental Cash Flow Information | ' | ||||||||
24. Supplemental Cash Flow Information | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Cash paid for interest, net of capitalized interest | $ | 54.1 | $ | 59.1 | $ | 61.7 | |||
Cash paid for income taxes, net of refunds | 80.8 | 56.9 | 41.0 | ||||||
Schedule of Noncash Investing and Financing Activities(1): | |||||||||
Assets acquired in acquisition | $ | - | $ | 55.8 | $ | 1,018.1 | |||
Liabilities assumed in acquisition | - | 2.6 | 474.9 | ||||||
(1) See Note 3 for additional discussion of the Company’s acquisitions. | |||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
25. Subsequent Event | |
The Company owns and operates six pig manure treatment facilities in Spain which it acquired in its acquisition of Guascor. The Spanish government published a draft regulation at the end of January 2014 that reflects a reduction in the tariffs of approximately 37%, which, if enacted, would be retroactive to July 2013. In view of the proposed change in the tariffs, the Company has decided to suspend the operations at its six facilities, although discussions with the Spanish government are ongoing. | |
The draft regulation is a clarification of a law that was passed in 2013 as the law did not have sufficient specificity to reasonably estimate the tariff. Consequently, the Company believes an impairment triggering event occurred in 2013 and has recorded an impairment charge of $40.0 in 2013 to reduce the value of the property, plant and equipment. At the time of the acquisition, the Company did not record any specific intangible assets related to the pig manure treatment facilities. Also in connection with the draft regulation being issued, the Company has reduced its 2013 revenues and gross margin by approximately $23.7 and $22.0, respectively, for the retroactive reduction of the tariffs. | |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts And Reserves | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Valuation and Qualifying Accounts and Reserves [Abstract] | ' | |||||||||||||||||
Valuation And Qualifying Accounts And Reserves | ' | |||||||||||||||||
Additions | ||||||||||||||||||
Description | Beginning Balance at 01/01/13 | Charges to costs and expenses | Charges to other accounts | Deductions | Ending Balance at 12/31/2013 | |||||||||||||
Allowance for losses on receivables | $ | 9.6 | $ | - | $ | - | $ | 0.5 | (a) | $ | 9.1 | |||||||
Valuation allowance for deferred tax asset | 83.6 | 38.2 | -1.2 | (b) | -0.6 | (c) | 121.2 | |||||||||||
Notes: | ||||||||||||||||||
(a) | Impact of change in provision of $(0.8), foreign exchange of $0.2 and write-off of bad debts of $0.1. | |||||||||||||||||
(b) | Impact of expired NOL’s of $(1.2). | |||||||||||||||||
(c) | Impact of foreign exchange. | |||||||||||||||||
Additions | ||||||||||||||||||
Description | Beginning Balance at 01/01/12 | Charges to costs and expenses | Charges to other accounts | Deductions | Ending Balance at 12/31/2012 | |||||||||||||
Allowance for losses on receivables | $ | 9.3 | $ | 0.5 | $ | - | $ | 0.2 | (a) | $ | 9.6 | |||||||
Valuation allowance for deferred tax asset | 81.6 | 6.3 | -3.6 | (b) | 0.7 | (c) | 83.6 | |||||||||||
Notes: | ||||||||||||||||||
(a) | Impact of write-off of bad debts of $0.2. | |||||||||||||||||
(b) | Impact of acquisition of Guascor of $(2.5) and other expired NOL’s of $(1.1). | |||||||||||||||||
(c) | Impact of foreign exchange. | |||||||||||||||||
Additions | ||||||||||||||||||
Description | Beginning Balance at 01/01/11 | Charges to costs and expenses | Charges to other accounts | Deductions | Ending Balance at 12/31/2011 | |||||||||||||
Allowance for losses on receivables | $ | 11.4 | $ | 0.1 | $ | - | $ | 2.2 | (a) | $ | 9.3 | |||||||
Valuation allowance for deferred tax asset | 15.1 | 4.4 | 62.7 | (b) | 0.6 | (c) | 81.6 | |||||||||||
Notes: | ||||||||||||||||||
(a) | Impact of foreign exchange of $0.3 and write-off of bad debts of $1.9. | |||||||||||||||||
(b) | Impact of acquisition of Guascor of $64.5 offset by other expired NOL’s of $(1.8). | |||||||||||||||||
(c) | Impact of foreign exchange. | |||||||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The consolidated financial statements include the accounts and activities of the Company and its controlled subsidiaries or variable interest entities for which the Company has determined that it is the primary beneficiary. Fifty percent or less owned companies (which are not variable interest entities of which the Company is the primary beneficiary), and for which the Company exercises significant influence but does not control, are accounted for under the equity method. Intercompany accounts and transactions among entities included in the consolidated financial statements have been eliminated. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
In conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), management has used estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Significant estimates include 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, contract losses, penalties, environmental contingencies, product liability, self-insurance programs and other contingencies. Actual results could differ from those estimates. | |||||||||
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 generally 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 and valuations of long-lived assets that are impaired. | |||||||||
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 15 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | |||||
Tradable emission allowances | Note 15 | Level 1 | Not applicable | Not applicable | |||||
Long-term debt (disclosure only) | Note 11 | Level 2 | Quoted prices in markets that are not active | Not applicable | |||||
Impairment of long-lived assets | Note 25 | Level 3 | Not applicable | Income approach using projected results and weighted-average cost of capital | |||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. These cash equivalents consist principally of money market accounts. | |||||||||
Restricted Cash | ' | ||||||||
Restricted Cash | |||||||||
Restricted cash includes cash and cash equivalents that are restricted as to withdrawal or usage. The nature of restrictions includes restrictions imposed by financing agreements such as debt service reserves. The Company is required to maintain sinking funds associated with certain of its borrowings, generally based on the short-term debt service requirements of such borrowings. Sinking fund requirements totaled $8.1 and $16.5 at December 31, 2013 and 2012, respectively, and have been classified as restricted cash in the current assets section of the consolidated balance sheet. | |||||||||
Allowance for Losses on Receivables | ' | ||||||||
Allowance for Losses on Receivables | |||||||||
The Company establishes an allowance for losses on receivables by applying specified percentages to the adjusted receivable aging categories. The percentage applied against the aging categories increases as the accounts become further past due so that accounts in excess of 360 days past due are initially considered for a 100% reserve. The allowance is further adjusted for specific customer accounts that have aged but collection is determined to be probable and accounts that have become past due but collection is determined to be doubtful due to insolvency, disputes or other collection issues as identified by the Company. | |||||||||
Inventories, net | ' | ||||||||
Inventories, net | |||||||||
Inventories are stated at the lower of cost (generally first-in first-out or average) or market (estimated net realizable value). Cost includes labor, materials and facility overhead. A provision is also recorded for slow-moving, obsolete or unusable inventory. Customer progress payments are credited to inventory and any payments in excess of our related investment in inventory are recorded as customer advance payments in current liabilities. Company progress payments to suppliers are included in work-in-process. | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of buildings and improvements range from five years to 40 years; the useful lives of machinery and equipment range from three years to 10 years. Maintenance and repairs are expensed as incurred. | |||||||||
Capitalized Interest | ' | ||||||||
Capitalized Interest | |||||||||
The Company capitalizes interest costs for qualifying construction and upgrade projects. Capitalized interest costs were not material for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Capitalized Software | ' | ||||||||
Capitalized Software | |||||||||
The Company capitalizes computer software for internal use following the guidelines established in Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. The amounts capitalized were not material for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Impairment of Long-Lived Assets | |||||||||
The Company reviews long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. | |||||||||
Intangible Assets | ' | ||||||||
Goodwill & Intangible Assets | |||||||||
Goodwill has an indefinite life and is not amortized, but is tested for impairment at least annually. The Company has recorded goodwill in connection with its acquisition by First Reserve in 2004, as well as its acquisitions of other companies. The Company performs its annual impairment assessment at the reporting unit level for each reporting unit that carries a balance of goodwill. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test described below. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is performed. Qualitative indicators including deterioration in macroeconomic conditions, declining financial performance, or a sustained decrease in share price, among other things, may trigger the need for a quantitative impairment test of goodwill for a reporting unit. | |||||||||
The Company’s goodwill impairment assessment is performed at August 31, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. For instance, a decrease in the Company’s market capitalization below book value, a significant change in business climate, as well as the qualitative indicators reference above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. | |||||||||
The Company determined a qualitative analysis was appropriate for its aftermarket parts and services reporting unit. In its qualitative analysis, the Company considered factors such as the industry, buyer and supplier bargaining power, market size and share, operating margin consistency and other economic factors. | |||||||||
The Company utilized a quantitative impairment test for the new units reporting unit. The first step of the quantitative test involves comparing the fair value of each of the Company’s reporting units with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, a second step is performed. The second step compares the carrying amount of the reporting unit’s goodwill to the implied fair value of its goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss would be recorded as a reduction to goodwill with a corresponding charge to operating expense. | |||||||||
The Company determines the fair value of its reporting units using a discounted cash flow valuation approach. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, discount rates, weighted average costs of capital and future market conditions, among others. The Company believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. Under the discounted cash flow method, the Company determines fair value based on the estimated future cash flows of each reporting unit, discounted to present value using risk-adjusted industry discount rates, which reflect the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from operating forecasts, which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur, along with a terminal value derived from the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). | |||||||||
The following table presents the significant estimates used by management in determining the fair value of the Company’s reporting units at August 31, 2013: | |||||||||
Years of cash flows before terminal value | 7 | ||||||||
Terminal growth rate | 2.5% | ||||||||
Weighted average cost of capital | 14.0% | ||||||||
Management also considered the sensitivity of its fair value estimates to changes in certain valuation assumptions and, after giving consideration to at least a 10% decrease in the fair value of the Company’s new units reporting unit, the results of the assessment did not change. However, circumstances such as market declines, unfavorable economic conditions, or other factors could impact the valuation of goodwill in future periods. | |||||||||
The Company amortizes its other intangible assets with finite lives over their estimated useful lives. See Note 8 for additional details regarding the components and estimated useful lives of intangible assets. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
The Company determines the consolidated provision for income taxes for its operations on a legal entity, jurisdiction-by-jurisdiction basis. Deferred taxes are provided for operating losses, tax credit carryforwards and temporary differences between the tax bases of assets and liabilities. The deferred tax amounts included in the consolidated financial statements are measured by the enacted tax rates expected to apply when temporary differences are settled or realized. A valuation allowance is established on the deferred tax assets when it is more-likely-than-not that all or a portion of the asset will not be realized. | |||||||||
Uncertain tax positions are recognized in the financial statements only if it is more-likely-than-not that the position will be sustained upon examination through any appeal and litigation processes based on the technical merits of the position and, if recognized, are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company’s policy is to recognize accrued interest on estimated future required tax payments on unrecognized tax expense as interest expense and estimated tax penalties as non-operating expenses. | |||||||||
Product Warranty | ' | ||||||||
Product Warranty | |||||||||
Warranty accruals are recorded at the time the products are sold and are estimated based upon product warranty terms and historical experience. Warranty accruals are adjusted for known or anticipated warranty claims as new information becomes available. | |||||||||
Environmental Costs | ' | ||||||||
Environmental Costs | |||||||||
Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations that have no significant future economic benefit are expensed. Costs to prepare environmental site evaluations and feasibility studies are accrued when the Company commits to perform them. Liabilities for remediation costs are recorded when they are probable and reasonably estimable, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The Company determines any required liability based on existing technology without reflecting any offset for possible recoveries from insurance companies and discounting. Expenditures that prevent or mitigate environmental contamination that is yet to occur are capitalized. | |||||||||
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 can 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 based on the revenue recognition policy described above. | |||||||||
Percentage of completion | |||||||||
We also enter 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 on these projects 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 6.5% and 0.8% of consolidated revenues for the years ended December 31, 2013 and 2012, 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, estimated cost of sales and estimated gross profit to be 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, as described below. 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 Item 1A, Risk Factors, above. In the event that the Company experiences 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 updated 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; and | |||||||||
•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 contract 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 and estimated gross profit 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. | |||||||||
Business interruption insurance recoveries | |||||||||
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. | |||||||||
Taxes Imposed on Revenue Transactions | ' | ||||||||
Taxes Imposed on Revenue Transactions | |||||||||
The Company accounts for taxes imposed on specific revenue transactions, e.g., sales, value-added and similar taxes, on a net basis as such taxes are excluded from revenue and costs. | |||||||||
Shipping and Handling Costs | ' | ||||||||
Shipping and Handling Costs | |||||||||
Amounts billed to clients for shipping and handling are classified as sales of products with the related costs incurred included in cost of sales. | |||||||||
Research and Development Costs | ' | ||||||||
Research and Development and In-Process Research and Development Costs | |||||||||
Research and development expenditures are comprised of salaries, qualifying engineering costs and an allocation of related overhead costs, and are expensed when incurred. | |||||||||
Comprehensive Income (Loss) | ' | ||||||||
Comprehensive Income (Loss) | |||||||||
Comprehensive income (loss) includes net income and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments, post-retirement benefit plan liability adjustments and fair value changes of financial instruments designated as hedges, net of tax, as applicable. | |||||||||
Foreign Currency | ' | ||||||||
Foreign Currency | |||||||||
Assets and liabilities of non-United States (“U.S.”) consolidated entities that use the local currency as the functional currency are translated at year-end exchange rates, while income and expenses are translated using weighted-average-for-the-year exchange rates. Adjustments resulting from translation are recorded in other comprehensive income (loss) and are included in earnings only upon sale or liquidation of the underlying foreign investment. The Company recognizes transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred, except for those intercompany balances that are designated as long-term investments. | |||||||||
Inventory, prepaid expenses, warranty liabilities and property balances and related statement of income accounts of non-U.S. entities that use the U.S. dollar as the functional currency are translated using historical exchange rates. The resulting gains and losses are credited or charged to the Consolidated Statement of Income. | |||||||||
Financial Instruments | ' | ||||||||
Financial Instruments | |||||||||
The Company manages exposure to changes in foreign currency exchange rates through its normal operating and financing activities, as well as through the use of financial instruments, principally forward exchange contracts. | |||||||||
The purpose of the Company’s currency hedging activities is to mitigate the economic impact of changes in foreign currency exchange 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. Major exposure areas considered for hedging include foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. The Company has also 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 Company recognizes all derivatives used in hedging activities as assets or liabilities on the balance sheet at fair value. Any properly documented effective portion of a cash flow hedging instrument’s gain or loss is reported as a component of other comprehensive income (loss) in the Consolidated Statement of Changes in Stockholders’ Equity and is reclassified to earnings in the period during which the transaction being hedged affects income. Gains or losses subsequently reclassified from stockholders’ equity are classified in accordance with income statement treatment of the hedged transaction. Any ineffective portion of a cash flow hedging instrument’s fair value change is immediately recorded in the Consolidated Statement of Income. Classification in the Consolidated Statement of Income of the effective portion of the hedging instrument’s gain or loss is based on the income statement classification of the transaction being hedged. If a cash flow hedging instrument does not qualify as a hedge for accounting purposes, the change in the fair value of the derivative is immediately recognized in the Consolidated Statement of Income in other expense, net. Except for the interest rate swap, the derivative financial instruments in existence at December 31, 2013 and 2012, were not designated as hedges for accounting purposes. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation cost for stock-based compensation awards in accordance with ASC 718, Compensation — Stock Compensation. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that has vested at that date. | |||||||||
Conditional Asset Retirement Obligations | ' | ||||||||
Conditional Asset Retirement Obligations | |||||||||
Any legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may not be within our control is recognized as a liability at the fair value of the conditional asset retirement obligation, if the fair value of the liability can be reasonably estimated. U.S. GAAP acknowledges that, in some cases, sufficient information may not be available to reasonably estimate the fair value of an asset retirement obligation. The fair value of the obligation can be reasonably estimated if (a) it is evident that the fair value of the obligation is embodied in the acquisition of an asset, (b) an active market exists for the transfer of the obligation or, (c) sufficient information is available to reasonably estimate (1) the settlement date or the range of settlement dates, (2) the method of settlement or potential methods of settlement and (3) the probabilities associated with the range of potential settlement dates and potential settlement methods. The Company has not recorded any conditional asset retirement obligations because there is no current active market in which the obligations could be transferred and we do not have sufficient information to reasonably estimate the range of settlement dates and their related probabilities. | |||||||||
New Accounting Standards | ' | ||||||||
New Accounting Standards | |||||||||
Effective January 1, 2013, the Company adopted FASB Accounting Standards Update (“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 has 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 21, 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 15, 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. | |||||||||
Reclassification | ' | ||||||||
Reclassification | |||||||||
Certain amounts in previously issued financial statements have been reclassified to conform to the 2013 presentation, herein. | |||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Inputs used in determining fair value of reporting unit | ' | ||
Years of cash flows before terminal value | 7 | ||
Terminal growth rate | 2.5% | ||
Weighted average cost of capital | 14.0% | ||
Acquisitions_And_Other_Investm1
Acquisitions And Other Investments (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Acquisitons And Other Investments [Abstract] | ' | ||||||
Acquisition Price Allocated To Fair Values Of Assets Acquired And Liabilities Assumed | ' | ||||||
Acquisitions | |||||||
Synchrony | Guascor | ||||||
2012 | 2011 | ||||||
Cash and cash equivalents | $ | 0.1 | $ | 21.7 | |||
Restricted cash | - | 36.6 | |||||
Accounts receivable | 2.1 | 79.3 | |||||
Inventory | 1.5 | 41.9 | |||||
Prepaid expenses | 0.1 | 21.1 | |||||
Total current assets | 3.8 | 200.6 | |||||
Property, plant and equipment | 2.2 | 206.9 | |||||
Amortizable intangible assets | 22.9 | 136.5 | |||||
Goodwill | 26.3 | 452.7 | |||||
Other assets | 0.6 | 21.4 | |||||
Total assets acquired | 55.8 | 1,018.1 | |||||
Accounts payable and accruals | 2.6 | 141.7 | |||||
Customer advance payments | - | 9.0 | |||||
Accrued income taxes payable | - | 3.1 | |||||
Current portion of long-term debt | - | 98.8 | |||||
Long-term debt | - | 154.6 | |||||
Other noncurrent liabilities | - | 67.7 | |||||
Total liabilities assumed | 2.6 | 474.9 | |||||
Purchase price | 53.2 | 543.2 | |||||
Fair value of contingent consideration (non-cash) | -4.3 | 5.5 | |||||
Fair value of Dresser-Rand common stock as partial consideration | - | -243.5 | |||||
Cash acquired | -0.1 | -21.7 | |||||
Cash paid | $ | 48.8 | $ | 283.5 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Reconciliation of Net Income and Weighted-Average Common Shares Outstanding for Purposes of Calculating Basic and Diluted Income Per Share | ' | |||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net income attributable to Dresser-Rand | $ | 168.4 | $ | 179.0 | $ | 120.8 | ||||
Weighted-average common shares outstanding: | ||||||||||
(In thousands) | ||||||||||
Basic | 76,139 | 75,487 | 77,532 | |||||||
Dilutive effect of stock-based compensation awards | 687 | 789 | 787 | |||||||
Diluted | 76,826 | 76,276 | 78,319 | |||||||
Net income per share: | ||||||||||
Basic | $ | 2.21 | $ | 2.37 | $ | 1.56 | ||||
Diluted | $ | 2.19 | $ | 2.35 | $ | 1.54 | ||||
Costs_And_Estimated_Earnings_I1
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts (Tables) | 12 Months Ended | ||||||
Dec. 31, 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 | ' | ||||||
December 31, | |||||||
2013 | 2012 | ||||||
Costs incurred on uncompleted contracts | $ | 195.5 | $ | 35.0 | |||
Estimated earnings | 52.4 | 15.5 | |||||
247.9 | 50.5 | ||||||
Less: billings to date | -162.7 | -33.4 | |||||
$ | 85.2 | $ | 17.1 | ||||
Costs and estimated earnings in excess of billings | $ | 98.1 | $ | 17.1 | |||
Billings in excess of costs and estimated earnings | -12.9 | - | |||||
$ | 85.2 | $ | 17.1 | ||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory, Net [Abstract] | ' | ||||||
Inventories | ' | ||||||
December 31, | |||||||
2013 | 2012 | ||||||
Raw materials | $ | 71.0 | $ | 59.3 | |||
Finished parts | 262.4 | 203.1 | |||||
Work-in-process | 845.9 | 707.9 | |||||
1,179.3 | 970.3 | ||||||
Less: progress payments from clients | -463.3 | -417.8 | |||||
Inventories, net | $ | 716.0 | $ | 552.5 | |||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property Plant And Equipment [Abstract] | ' | ||||||
Property, Plant And Equipment | ' | ||||||
December 31, | |||||||
2013 | 2012 | ||||||
Cost: | |||||||
Land | $ | 33.1 | $ | 31.0 | |||
Buildings and improvements | 261.4 | 213.2 | |||||
Machinery and equipment | 479.0 | 484.1 | |||||
773.5 | 728.3 | ||||||
Less: accumulated depreciation | -301.2 | -261.4 | |||||
Property, plant and equipment, net | $ | 472.3 | $ | 466.9 | |||
Intangible_Assets_And_Goodwill1
Intangible Assets And Goodwill (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Intangible Assets And Goodwill [Abstract] | ' | ||||||||||||||
Weighted Average Useful Life, Gross Amount And Accumulated Amortization Of Intangible Assets | ' | ||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 120.0 | $ | 24.2 | 39 years | $ | 119.0 | $ | 20.9 | ||||||
Customer relationships | 333.2 | 79.4 | 32 years | 331.7 | 65.9 | ||||||||||
Non-compete agreements | 5.5 | 5.0 | 3 years | 5.4 | 3.8 | ||||||||||
Existing technology | 160.6 | 55.3 | 23 years | 161.6 | 48.0 | ||||||||||
Contracts and purchase agreements | 10.2 | 1.4 | 11 years | 11.1 | 1.0 | ||||||||||
Software | 28.7 | 26.3 | 10 years | 30.6 | 25.0 | ||||||||||
In-process research and development | 12.7 | 0.3 | 10 years | 12.1 | - | ||||||||||
Total amortizable intangible assets | $ | 670.9 | $ | 191.9 | $ | 671.5 | $ | 164.6 | |||||||
Changes In Goodwill, In Total And By Segment | ' | ||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
Balance, December 31, 2011 | $ | 442.6 | $ | 427.2 | $ | 869.8 | |||||||||
Acquisitions | 26.3 | - | 26.3 | ||||||||||||
Foreign currency adjustments | 7.8 | 7.4 | 15.2 | ||||||||||||
Balance, December 31, 2012 | 476.7 | 434.6 | 911.3 | ||||||||||||
Foreign currency adjustments | 11.7 | 4.6 | 16.3 | ||||||||||||
Balance, December 31, 2013 | $ | 488.4 | $ | 439.2 | $ | 927.6 | |||||||||
Accounts_Payable_And_Accruals_
Accounts Payable And Accruals (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounts Payable and Accruals [Abstract] | ' | ||||||
Accounts Payable and Accruals | ' | ||||||
December 31, | |||||||
2013 | 2012 | ||||||
Accounts payable | $ | 404.5 | $ | 361.5 | |||
Accruals: | |||||||
Payroll and benefits | 67.7 | 71.6 | |||||
Taxes other than income | 49.4 | 39.3 | |||||
Major inventory purchases | 27.7 | - | |||||
Warranties | 21.4 | 20.1 | |||||
Third-party commissions | 21.4 | 19.3 | |||||
Refundable payments related to cogeneration facilities | 22.3 | - | |||||
Billings in excess of costs and estimated earnings | 12.9 | - | |||||
Interest | 11.8 | 12.8 | |||||
Legal, audit and consulting | 7.6 | 8.3 | |||||
Insurance and claims | 7.2 | 7.7 | |||||
Pension and postretirement benefits | 4.5 | 5.2 | |||||
Forward exchange contracts | 16.3 | 3.8 | |||||
Other | 54.4 | 50.8 | |||||
Total accounts payable and accruals | $ | 729.1 | $ | 600.4 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes [Abstract] | ' | ||||||||||
Income Before Income Taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
United States | $ | 98.7 | $ | 92.5 | $ | 52.8 | |||||
Foreign | 158.8 | 183.2 | 131.1 | ||||||||
Total | $ | 257.5 | $ | 275.7 | $ | 183.9 | |||||
Provision for Income Tax | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax expense (benefit) | |||||||||||
United States | $ | 10.6 | $ | 30.7 | $ | -4.7 | |||||
Foreign | 73.8 | 53.5 | 46.8 | ||||||||
Total current | 84.4 | 84.2 | 42.1 | ||||||||
Deferred tax expense (benefit) | |||||||||||
United States | 10.7 | 9.0 | 21.9 | ||||||||
Foreign | -6.9 | -0.4 | -1.1 | ||||||||
Total deferred | 3.8 | 8.6 | 20.8 | ||||||||
Total provision for income taxes | $ | 88.2 | $ | 92.8 | $ | 62.9 | |||||
Provision for Income Tax Difference | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
(Decrease) increase in rates resulting from: | |||||||||||
Foreign operations | -12.6 | -4.2 | -3.6 | ||||||||
State and local income taxes, net of U.S. tax | 1.2 | 1.1 | 1.2 | ||||||||
Valuation allowances | 9.1 | 1.9 | 2.8 | ||||||||
Spanish tariff regulations valuation allowance | 5.0 | - | - | ||||||||
Export / manufacturing deductions | -0.8 | -0.9 | - | ||||||||
Qualifying advanced energy credit | - | -0.3 | -1.8 | ||||||||
Research and experimentation credit | -2.6 | -0.2 | -1.6 | ||||||||
Other | -0.1 | 1.3 | 2.2 | ||||||||
Effective tax rate | 34.2 | % | 33.7 | % | 34.2 | % | |||||
Reconciliation of Beginning and Ending Unrecognized Tax Benefits Associated with Uncertain Tax Positions | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 14.3 | $ | 13.8 | $ | 4.1 | |||||
Additions based on tax positions related to current year | 3.5 | 0.8 | 0.7 | ||||||||
Additions based on tax positions related to prior year | 2.1 | 1.3 | 1.9 | ||||||||
Tax benefits acquired or assumed in a business combination | - | - | 10.4 | ||||||||
Settlements | -1.2 | -1.6 | -3.2 | ||||||||
Lapse in statute of limitations | -0.5 | -0.2 | - | ||||||||
Foreign currency adjustments | 0.5 | 0.2 | -0.1 | ||||||||
Ending balance | $ | 18.7 | $ | 14.3 | $ | 13.8 | |||||
Tax Years Remaining Subject to Examination by Major Tax Jurisdiction | ' | ||||||||||
Jurisdiction | Open Years | ||||||||||
Brazil | 2008 - 2013 | ||||||||||
Canada | 2008 - 2013 | ||||||||||
France | 2013 | ||||||||||
Germany | 2007 - 2013 | ||||||||||
India | 2005 - 2013 | ||||||||||
Italy | 2009 - 2013 | ||||||||||
Malaysia | 2006 - 2013 | ||||||||||
Netherlands | 2009 - 2013 | ||||||||||
Nigeria | 2010 - 2013 | ||||||||||
Norway | 2006 - 2013 | ||||||||||
Spain | 2009 - 2013 | ||||||||||
United Kingdom | 2007 - 2013 | ||||||||||
United States | 2010 - 2013 | ||||||||||
Venezuela | 2009 - 2013 | ||||||||||
Summary of Tax Effect of Temporary Differences that Create Deferred Tax Accounts | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | $ | 118.5 | $ | 125.4 | |||||||
Deferred tax assets | |||||||||||
Investment, research and experimentation and other credit carryforward, net | $ | -30.8 | $ | -26.1 | |||||||
Inventories and receivables | -21.1 | -17.2 | |||||||||
Foreign tax credit carryforward | -4.7 | -9 | |||||||||
Other accrued expenses | -12 | -6.9 | |||||||||
Tax net operating loss carryforwards | -107.2 | -86.1 | |||||||||
Pension and employee benefits | -41.9 | -66.7 | |||||||||
Total deferred tax assets | -217.7 | -212 | |||||||||
Valuation allowances | 121.2 | 83.6 | |||||||||
Net deferred tax assets | -96.5 | -128.4 | |||||||||
Total net deferred tax liability (asset) | $ | 22.0 | $ | -3 | |||||||
Presented on the consolidated balance sheet as: | |||||||||||
Current deferred tax assets | $ | -25.2 | $ | -30.5 | |||||||
Current deferred tax liabilities | 3.6 | 6.6 | |||||||||
Noncurrent deferred tax assets | -11.8 | -14.9 | |||||||||
Noncurrent deferred tax liabilities | 55.4 | 35.8 | |||||||||
Total net deferred tax liability (asset) | $ | 22.0 | $ | -3 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Long-Term Debt [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Amended Credit Facility | $ | 884.5 | $ | 615.6 | |||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | 4.6 | - | |||||||||||
Other indebtedness | 22.9 | 60.2 | |||||||||||
Total debt | 1,287.0 | 1,050.8 | |||||||||||
Less: current portion | -40.1 | -35.9 | |||||||||||
Total long-term debt | $ | 1,246.9 | $ | 1,014.9 | |||||||||
Debt Maturities | ' | ||||||||||||
2014 | $ | 40.1 | |||||||||||
2015 | 23.6 | ||||||||||||
2016 | 20.8 | ||||||||||||
2017 | 20.7 | ||||||||||||
2018 | 805.2 | ||||||||||||
Thereafter | 376.6 | ||||||||||||
$ | 1,287.0 | ||||||||||||
Carrying And Fair Values Of Senior Subordinated Notes | ' | ||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 400.5 | $ | 375.0 | $ | 399.1 | |||||
Pension_Plans_Tables
Pension Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Pension Plans [Abstract] | ' | |||||||||||||||||
Information Regarding Pension Plans | ' | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Change in projected benefit obligations | ||||||||||||||||||
Benefit obligation at beginning of the period | $ | 314.2 | $ | 286.2 | $ | 159.8 | $ | 141.0 | ||||||||||
Service cost | 3.8 | 3.8 | 5.6 | 5.3 | ||||||||||||||
Interest cost | 11.6 | 12.8 | 6.4 | 6.7 | ||||||||||||||
Employee contributions | - | - | 0.2 | 0.2 | ||||||||||||||
Expenses paid | -1 | -0.9 | -0.1 | -0.3 | ||||||||||||||
Actuarial (gain) loss | -28.8 | 26.4 | 17.2 | 6.8 | ||||||||||||||
Curtailment / settlement | - | - | -43.4 | - | ||||||||||||||
Plan amendments | 0.9 | - | - | - | ||||||||||||||
Benefits paid | -14.7 | -14.1 | -6.3 | -6.9 | ||||||||||||||
Foreign currency adjustments | - | - | -1.1 | 7.0 | ||||||||||||||
Benefit obligation at end of the period | $ | 286.0 | $ | 314.2 | $ | 138.3 | $ | 159.8 | ||||||||||
Change in plan assets | ||||||||||||||||||
Fair value at beginning of the period | $ | 219.2 | $ | 196.5 | $ | 130.9 | $ | 112.3 | ||||||||||
Actual return on assets | 31.9 | 24.5 | 10.0 | 11.7 | ||||||||||||||
Settlements | - | - | -26.8 | - | ||||||||||||||
Company contributions | 11.5 | 13.2 | 10.1 | 8.1 | ||||||||||||||
Employee contributions | - | - | 0.2 | 0.2 | ||||||||||||||
Expenses paid | -1 | -0.9 | -0.1 | -0.3 | ||||||||||||||
Benefits paid | -14.7 | -14.1 | -6.3 | -6.9 | ||||||||||||||
Foreign currency adjustments | - | - | -0.2 | 5.8 | ||||||||||||||
Fair value of assets at end of the period | $ | 246.9 | $ | 219.2 | $ | 117.8 | $ | 130.9 | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||||
Current liabilities | $ | 0.6 | $ | 0.7 | $ | 1.7 | $ | 1.5 | ||||||||||
Noncurrent liabilities | 38.5 | 94.3 | 18.8 | 27.4 | ||||||||||||||
Total balance sheet liability | $ | 39.1 | $ | 95.0 | $ | 20.5 | $ | 28.9 | ||||||||||
Amounts recognized in accumulated other | ||||||||||||||||||
comprehensive loss consists of: | ||||||||||||||||||
Cumulative net actuarial loss | $ | 52.6 | $ | 104.9 | $ | 18.0 | $ | 17.5 | ||||||||||
Cumulative prior service cost | 0.8 | - | 1.0 | 1.3 | ||||||||||||||
Total | $ | 53.4 | $ | 104.9 | $ | 19.0 | $ | 18.8 | ||||||||||
Components Of Net Pension Expense Amounts Recognized in Consolidated Statement of Comprehensive Income | ' | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Net pension expense | ||||||||||||||||||
Service cost | $ | 3.8 | $ | 3.8 | $ | 3.3 | $ | 5.6 | $ | 5.3 | $ | 4.8 | ||||||
Interest cost | 11.6 | 12.8 | 12.8 | 6.4 | 6.7 | 7.4 | ||||||||||||
Expected return on plan assets | -16.1 | -14.9 | -14.5 | -6.9 | -6.9 | -7.4 | ||||||||||||
Amortization of net actuarial loss | 7.8 | 7.2 | 2.2 | 0.4 | 0.6 | 0.3 | ||||||||||||
Curtailment / settlement | - | - | - | -3.6 | - | - | ||||||||||||
Amortization of prior service cost | - | 0.3 | 1.4 | 0.1 | -0.1 | -0.2 | ||||||||||||
Net pension expense | 7.1 | 9.2 | 5.2 | 2.0 | 5.6 | 4.9 | ||||||||||||
Amounts recognized in other | ||||||||||||||||||
comprehensive (income) loss | ||||||||||||||||||
Net actuarial (gain) loss | -44.5 | 16.7 | 51.4 | 14.0 | 2.1 | 1.2 | ||||||||||||
Prior service cost | 0.9 | - | -0.5 | - | - | - | ||||||||||||
Amortization of net actuarial loss | -7.8 | -7.2 | -2.2 | -0.4 | -0.6 | -0.3 | ||||||||||||
Curtailment / settlement | - | - | - | -13 | - | - | ||||||||||||
Amortization of prior service cost | - | -0.3 | -1.4 | -0.1 | 0.1 | 0.2 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive (income) loss | -51.4 | 9.2 | 47.3 | 0.5 | 1.6 | 1.1 | ||||||||||||
Total recognized | $ | -44.3 | $ | 18.4 | $ | 52.5 | $ | 2.5 | $ | 7.2 | $ | 6.0 | ||||||
Weighted-Average Assumptions Used for Benefit Obligations and Net Periodic Pension Cost | ' | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Weighted-average assumptions | ||||||||||||||||||
used for benefit obligations: | ||||||||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | 4.07 | % | 4.15 | % | 4.76 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.13 | % | 0.15 | % | 2.58 | % | 2.51 | % | 2.69 | % | ||||||
Weighted-average assumptions | ||||||||||||||||||
used for net periodic pension cost: | ||||||||||||||||||
Discount rate | 3.80 | % | 4.60 | % | 5.40 | % | 4.15 | % | 4.76 | % | 5.23 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.15 | % | 0.16 | % | 2.51 | % | 2.69 | % | 4.19 | % | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | 5.44 | % | 6.09 | % | 6.69 | % | ||||||
Information for Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Projected benefit obligation | $ | 286.1 | $ | 314.1 | $ | 31.1 | $ | 56.0 | ||||||||||
Accumulated benefit obligation | 286.1 | 314.1 | 27.1 | 47.0 | ||||||||||||||
Fair value of plan assets | 247.0 | 219.2 | 11.2 | 24.5 | ||||||||||||||
Asset Allocations of Pension Plans by Asset Category | ' | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 3.6 | $ | - | $ | 3.6 | $ | - | ||||||||||
U.S. large-cap equities | 67.8 | 67.8 | - | - | ||||||||||||||
U.S. small-cap value equities | 13.8 | 13.8 | - | - | ||||||||||||||
U.S. small-cap growth equities | 12.1 | 12.1 | - | - | ||||||||||||||
International equities | 39.3 | - | 39.3 | - | ||||||||||||||
U.S. fixed income (1) | 60.8 | 60.8 | - | - | ||||||||||||||
Global asset allocations (2) | 49.5 | 24.3 | 25.2 | - | ||||||||||||||
Total | $ | 246.9 | $ | 178.8 | $ | 68.1 | $ | - | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 2.9 | $ | - | $ | 2.9 | $ | - | ||||||||||
U.S. large-cap equities | 54.5 | 54.5 | - | - | ||||||||||||||
U.S. small-cap value equities | 10.8 | 10.8 | - | - | ||||||||||||||
U.S. small-cap growth equities | 10.1 | 10.1 | - | - | ||||||||||||||
International equities | 33.0 | - | 33.0 | - | ||||||||||||||
U.S. fixed income (1) | 63.3 | 63.3 | - | - | ||||||||||||||
Global asset allocations (2) | 44.6 | 22.1 | 22.5 | - | ||||||||||||||
Total | $ | 219.2 | $ | 160.8 | $ | 58.4 | $ | - | ||||||||||
(1)U.S. Fixed Income: Includes investments in the broad fixed income market such as government and agency bonds, mortgage bonds, and corporate bonds. Duration of the bonds may range from short (e.g., three months or less) to very long (e.g., 12 years or longer). Credit quality of U.S. Fixed Income is generally high quality in nature (e.g., AAA to BBB) but can also include lower quality or high yield bonds (e.g., BB or lower). Common indices are the Barclays Aggregate and Citigroup Broad Investment Grade Index. | ||||||||||||||||||
(2)Global Asset Allocations: Broadly diversified strategy where investment managers have the capacity to invest in multiple asset classes and the ability to alter asset class allocations with agreed tolerances. In some cases, there are no common indices for the assets in this asset class and typically a blended index of equities and fixed income is utilized, ex. 60% S&P 500/40% Barclays Aggregate. | ||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||
The asset allocations of the Company’s non-U.S. pension plans by asset category are as follows: | ||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 0.5 | $ | - | $ | 0.5 | $ | - | ||||||||||
U.S. equities | 10.4 | - | 10.4 | - | ||||||||||||||
International equities | 54.6 | - | 54.6 | - | ||||||||||||||
International fixed income (1) | 39.6 | - | 39.6 | - | ||||||||||||||
Insurance contracts (2) | 12.7 | - | - | 12.7 | ||||||||||||||
Total | $ | 117.8 | $ | - | $ | 105.1 | $ | 12.7 | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||||
Asset Category | ||||||||||||||||||
Cash and cash equivalents | $ | 1.2 | $ | - | $ | 1.2 | $ | - | ||||||||||
U.S. equities | 8.7 | - | 8.7 | - | ||||||||||||||
International equities | 50.0 | 2.2 | 47.8 | - | ||||||||||||||
International fixed income (1) | 41.5 | - | 41.5 | - | ||||||||||||||
Insurance contracts (2) | 29.5 | - | - | 29.5 | ||||||||||||||
Total | $ | 130.9 | $ | 2.2 | $ | 99.2 | $ | 29.5 | ||||||||||
(1)International Fixed Income: Includes investments in the broad fixed income market such as government and corporate bonds. Duration of the bonds usually range over 15 years. Credit quality of International Fixed Income is generally high quality in nature (e.g., AAA to A). Common indices are the FTSE UK Gilts >15 Years, iBoxx £ Non-Gilts ex BBB 15 Year + and FTSE A Index-Linked > Five Years. | ||||||||||||||||||
(2)Insurance Contracts: Provided by insurance companies that pay benefits to retirees. | ||||||||||||||||||
Reconciliation of Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level Three) | ' | |||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Beginning balance | $ | 29.5 | $ | 24.1 | ||||||||||||||
Actual return on assets | 0.1 | 1.5 | ||||||||||||||||
Company contributions | 12.6 | 3.7 | ||||||||||||||||
Foreign exchange | -2.5 | 1.7 | ||||||||||||||||
Benefit payments | -1.2 | -1.2 | ||||||||||||||||
Settlements | -25.8 | -0.3 | ||||||||||||||||
Ending balance | $ | 12.7 | $ | 29.5 | ||||||||||||||
PostRetirement_Benefits_Other_1
Post-Retirement Benefits Other Than Pensions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Post-Retiements Benefits Other Than Pensions [Abstract] | ' | |||||||||||
Summary Post-Retirement Benefits Other Than Pension Plans | ' | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of the period | $ | 19.6 | $ | 18.6 | ||||||||
Interest cost | 0.8 | 0.8 | ||||||||||
Benefits paid | -0.6 | -0.4 | ||||||||||
Actuarial (gains) losses | -3.4 | 0.6 | ||||||||||
Unfunded benefit obligation at end of the period and consolidated balance sheet liability | $ | 16.4 | $ | 19.6 | ||||||||
Amounts recognized in the balance sheet: | ||||||||||||
Current liabilities | $ | 1.3 | $ | 1.0 | ||||||||
Noncurrent liabilities | 15.1 | 18.6 | ||||||||||
Total consolidated balance sheet liability | $ | 16.4 | $ | 19.6 | ||||||||
Amounts recognized in accumulated other comprehensive income: | ||||||||||||
Cumulative net actuarial loss | $ | 1.9 | $ | 5.9 | ||||||||
Cumulative net prior service credit | -0.6 | -0.6 | ||||||||||
Total | $ | 1.3 | $ | 5.3 | ||||||||
Components Of Net Post-Retirement Benefit Expense (Income) and Amounts Recognized in Other Comprehensive Loss (Income) | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net post-retirement benefits expense (income) | ||||||||||||
Interest cost | $ | 0.8 | $ | 0.8 | $ | 0.9 | ||||||
Amortization of | ||||||||||||
Net prior service credit | - | - | -1.7 | |||||||||
Net actuarial loss | 0.6 | 1.0 | 0.9 | |||||||||
Total post-retirement benefits expense | 1.4 | 1.8 | 0.1 | |||||||||
Amounts recognized as other comprehensive (income) loss | ||||||||||||
Net actuarial (gain) loss | -3.4 | 0.6 | 2.9 | |||||||||
Amortization of | ||||||||||||
Net prior service credit | - | - | 1.7 | |||||||||
Net actuarial loss | -0.6 | -1 | -0.9 | |||||||||
Total recognized in comprehensive (income) loss | -4 | -0.4 | 3.7 | |||||||||
Total recognized | $ | -2.6 | $ | 1.4 | $ | 3.8 | ||||||
Weighted-Average Assumptions Used for Benefit Obligations and Net Periodic Benefit Costs | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 | ||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | ||||||
Measurement date | 12/31/13 | 12/31/12 | 12/31/11 | |||||||||
Weighted-average assumptions used to determine net periodic benefit expense (income) for the years ended December 31 | ||||||||||||
Discount rate | 3.80 | % | 4.60 | % | 5.30 | % | ||||||
Measurement date | 12/31/12 | 12/31/11 | 12/31/10 | |||||||||
Assumed health care cost trend rates | ||||||||||||
Current year trend rate | 7.70 | % | 8.30 | % | 8.30 | % | ||||||
Ultimate trend rate | 4.75 | % | 4.75 | % | 4.75 | % | ||||||
Year that the rate reaches the ultimate trend rate | ||||||||||||
Benefit obligations at end of period | 2034 | 2034 | 2033 | |||||||||
Net periodic benefit cost for the year | 2034 | 2033 | 2032 | |||||||||
One Percent Change In Assumed Healthcare Cost Trend Rate | ' | |||||||||||
1% Increase | 1% Decrease | |||||||||||
Effect on total post-retirement benefit expense | $ | 0.1 | $ | -0.1 | ||||||||
Effect on post-retirement benefit liability | 1.3 | -1.1 | ||||||||||
Share_Repurchases_Tables
Share Repurchases (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Share Repurchases [Abstract] | ' | |||||||||||||
Share Repurchase Acquisition Programs | ' | |||||||||||||
Date Initiated | Type of Program | Amount Paid | Date Completed | Initial Shares Delivered | Final Share Settlement | Total Shares Purchased | ||||||||
15-Mar-11 | Collared | $ | 275.0 | 4-Aug-11 | 4,740,584 | 641,635 | 5,382,219 | |||||||
22-Mar-11 | Uncollared | $ | 80.0 | 4-Aug-11 | 1,143,293 | 448,487 | 1,591,780 | |||||||
26-Aug-11 | Uncollared | $ | 150.0 | 29-Sep-11 | 3,011,242 | 456,227 | 3,467,469 | |||||||
$ | 505.0 | 10,441,468 | ||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Financial Instruments [Abstract] | ' | ||||||
Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis | ' | ||||||
December 31, | |||||||
2013 | 2012 | ||||||
Foreign currency exchange contracts assets | $ | 5.4 | $ | 8.5 | |||
Foreign currency exchange contracts liabilities | $ | 16.3 | $ | 3.8 | |||
Warranties_Tables
Warranties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Warranties [Abstract] | ' | ||||||||
Changes In Product Warranty Liability | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 20.1 | $ | 25.6 | $ | 28.2 | |||
Liabilities assumed from acquisitions | - | - | 6.7 | ||||||
Provision for warranties issued during period | 19.9 | 17.3 | 17.6 | ||||||
Adjustments to warranties issued in prior periods | 2.2 | -2.9 | -7.1 | ||||||
Payments during the period | -19.6 | -19.8 | -18.4 | ||||||
Foreign currency adjustments | -1.2 | -0.1 | -1.4 | ||||||
Ending balance | $ | 21.4 | $ | 20.1 | $ | 25.6 | |||
Incentive_StockBased_Compensat1
Incentive Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Incentive Stock-Based Compensation Plans [Abstract] | ' | ||||||||
Summary of Option and Stock Appreciation Right Activity | ' | ||||||||
Shares | Weighted-Average Exercise Price | ||||||||
Balance, December 31, 2010 | 1,587,766 | $ | 26.02 | ||||||
Granted | 190,539 | $ | 46.53 | ||||||
Exercised | -247,838 | $ | 25.50 | ||||||
Forfeited | -4,438 | $ | 29.04 | ||||||
Expired | -594 | $ | 37.27 | ||||||
Balance, December 31, 2011 | 1,525,435 | $ | 28.60 | ||||||
Granted | 174,201 | $ | 52.40 | ||||||
Exercised | -117,729 | $ | 26.23 | ||||||
Forfeited | -24,215 | $ | 33.64 | ||||||
Expired | - | $ | - | ||||||
Balance, December 31, 2012 | 1,557,692 | $ | 31.35 | ||||||
Granted | 205,661 | $ | 62.27 | ||||||
Exercised | -285,917 | $ | 29.59 | ||||||
Forfeited | -11,344 | $ | 49.84 | ||||||
Expired | -282 | $ | 52.40 | ||||||
Balance, December 31, 2013 | 1,465,810 | $ | 35.89 | ||||||
Exercisable December 31, 2011 | 845,361 | $ | 26.11 | ||||||
Exercisable December 31, 2012 | 1,103,694 | $ | 26.27 | ||||||
Exercisable December 31, 2013 | 1,112,189 | $ | 28.73 | ||||||
Weighted-Average Grant Date Assumptions Used to Estimate Fair Value of Options and Stock Appreciation Rights Granted | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Option term (years) | 5.0 | 5.0 | 5.5 | ||||||
Volatility | 38.4 | % | 45.4 | % | 39.6 | % | |||
Risk-free interest rate (zero coupon U.S. Treasury note) | 0.92 | % | 0.81 | % | 2.35 | % | |||
Dividend yield | - | - | - | ||||||
Summary of Employee Shares and Share Units Activity and Grant Date Fair Value | ' | ||||||||
Shares | Weighted-Average Grant Price | ||||||||
Nonvested at December 31, 2010 | 1,017,923 | $ | 27.14 | ||||||
Granted | 353,950 | $ | 46.54 | ||||||
Vested | -412,784 | $ | 27.42 | ||||||
Forfeited | -23,570 | $ | 24.42 | ||||||
Nonvested at December 31, 2011 | 935,519 | $ | 34.44 | ||||||
Granted | 675,809 | $ | 51.06 | ||||||
Vested | -474,053 | $ | 33.11 | ||||||
Forfeited | -48,272 | $ | 39.12 | ||||||
Nonvested at December 31, 2012 | 1,089,003 | $ | 45.48 | ||||||
Granted | 402,730 | $ | 59.99 | ||||||
Vested | -789,700 | $ | 43.10 | ||||||
Forfeited | -47,015 | $ | 54.36 | ||||||
Nonvested at December 31, 2013 | 655,018 | $ | 56.70 | ||||||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Expense, Net [Abstract] | ' | ||||||||
Other Expense, Net | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Foreign currency losses | $ | -0.8 | $ | -9 | $ | -2.7 | |||
(Loss) gain on forward exchange contracts | -14.7 | 7.9 | -1.8 | ||||||
Net loss from equity investment | -5.6 | -2.1 | -2.6 | ||||||
Realized gains of deferred compensation plan | -1.4 | -0.9 | -0.6 | ||||||
Unrealized (gain) loss of deferred compensation plan | -2.7 | -1.2 | 0.7 | ||||||
Deferred compensation expense due to changes in fair value | 4.1 | 2.1 | -0.1 | ||||||
Fair value adjustment of tradable emission allowances | 0.2 | 0.2 | 3.2 | ||||||
Fair value adjustment of contingent consideration | - | 1.0 | -0.9 | ||||||
Other miscellaneous income | 4.3 | 2.0 | 1.8 | ||||||
Total other expense, net | $ | -16.6 | $ | - | $ | -3 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share Repurchases [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 | -18.2 | - | - | -18.2 | |||||||||
Amounts reclassified from AOCI | - | 0.3 | 33.8 | 34.1 | |||||||||
Net current period other comprehensive (loss) income | -18.2 | 0.3 | 33.8 | 15.9 | |||||||||
At December 31, 2013 | $ | -69.5 | $ | -0.4 | $ | -48.9 | $ | -118.8 | |||||
Schedule Of Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Amount Reclassified From AOCI into Net Income | Affected Line Item in the | ||||||||||||
Year Ended | Consolidated Statement | ||||||||||||
Details About AOCI Components | 31-Dec-13 | of Income | |||||||||||
Unrealized gain on derivatives | $ | -0.4 | Interest expense, net | ||||||||||
0.1 | Provision for income taxes | ||||||||||||
$ | -0.3 | Net of tax | |||||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -8.9 | (a) | ||||||||||
Recognized net actuarial gain | -33.9 | (a) | |||||||||||
Gain from curtailment / settlement | -13 | (a) | |||||||||||
Benefit plan amendments | 0.9 | (a) | |||||||||||
Total before tax | -54.9 | Income before income taxes | |||||||||||
21.1 | Provision for income taxes | ||||||||||||
$ | -33.8 | Net of tax | |||||||||||
Total reclassifications, net of tax | $ | -34.1 | Net of tax | ||||||||||
(a)These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 12, Pension Plans and Note 13, Post-retirement Benefits Other than Pensions for additional information. | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Information [Abstract] | ' | |||||||||
Segment Results | ' | |||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
New units | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Aftermarket parts and services | 1,508.5 | 1,434.8 | 1,229.4 | |||||||
Total revenues | $ | 3,032.6 | $ | 2,736.4 | $ | 2,311.6 | ||||
Income from operations | ||||||||||
New units | $ | 140.3 | $ | 117.9 | $ | 110.4 | ||||
Aftermarket parts and services | 295.7 | 323.2 | 252.7 | |||||||
Unallocable | -115 | -105.2 | -104.4 | |||||||
Total income from operations | $ | 321.0 | $ | 335.9 | $ | 258.7 | ||||
Depreciation and amortization | ||||||||||
New units | $ | 45.0 | $ | 44.3 | $ | 37.3 | ||||
Aftermarket parts and services | 47.3 | 41.2 | 41.6 | |||||||
Total depreciation and amortization | $ | 92.3 | $ | 85.5 | $ | 78.9 | ||||
External revenues by products and services | ||||||||||
New units: | ||||||||||
Products | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Total | $ | 1,524.1 | $ | 1,301.6 | $ | 1,082.2 | ||||
Aftermarket parts and services: | ||||||||||
Products | $ | 695.7 | $ | 623.5 | $ | 557.6 | ||||
Services | 812.8 | 811.3 | 671.8 | |||||||
Total | $ | 1,508.5 | $ | 1,434.8 | $ | 1,229.4 | ||||
Revenues by destination | ||||||||||
United States | $ | 854.1 | $ | 828.0 | $ | 664.8 | ||||
Canada | 73.9 | 73.5 | 56.2 | |||||||
North America | 928.0 | 901.5 | 721.0 | |||||||
Latin America | 428.3 | 445.7 | 409.5 | |||||||
Europe | 796.6 | 680.1 | 501.6 | |||||||
Asia-Pacific, Southern Asia | 520.8 | 422.8 | 353.1 | |||||||
Middle East, Africa | 358.9 | 286.3 | 326.4 | |||||||
Total revenues | $ | 3,032.6 | $ | 2,736.4 | $ | 2,311.6 | ||||
Total assets by segment were as follows: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Goodwill | ||||||||||
New units | $ | 488.4 | $ | 476.7 | ||||||
Aftermarket parts and services | 439.2 | 434.6 | ||||||||
Total goodwill | $ | 927.6 | $ | 911.3 | ||||||
Total assets (including goodwill) | ||||||||||
New units | $ | 1,113.8 | $ | 898.8 | ||||||
Aftermarket parts and services | 1,305.0 | 1,126.7 | ||||||||
Unallocable | 1,319.0 | 1,328.5 | ||||||||
Total assets | $ | 3,737.8 | $ | 3,354.0 | ||||||
Long-lived assets by geographic area | ||||||||||
United States | $ | 177.2 | $ | 180.8 | ||||||
Canada | 2.6 | 2.5 | ||||||||
North America | 179.8 | 183.3 | ||||||||
Latin America | 94.0 | 95.2 | ||||||||
Europe | 140.2 | 160.3 | ||||||||
Asia-Pacific, Southern Asia | 18.0 | 18.0 | ||||||||
Middle East, Africa | 40.3 | 10.1 | ||||||||
Total long-lived assets | $ | 472.3 | $ | 466.9 | ||||||
Selected_Unaudited_Quarterly_F1
Selected Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Selected Unaudited Quarterly Financial Data [Abstract] | ' | |||||||||||
Selected Unaudited Quarterly Financial Data | ' | |||||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2013 | 2013 | 2013 | 2013 | |||||||||
Total revenues | $ | 766.4 | $ | 805.3 | $ | 633.9 | $ | 827.0 | ||||
Gross profit | 172.0 | 198.2 | 182.8 | 232.3 | ||||||||
Net income attributable to Dresser-Rand | 32.9 | 53.3 | 49.4 | 32.8 | ||||||||
Net income per share | ||||||||||||
Basic | 0.43 | 0.70 | 0.65 | 0.43 | ||||||||
Diluted | 0.43 | 0.69 | 0.64 | 0.43 | ||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2012 | 2012 | 2012 | 2012 | |||||||||
Total revenues | $ | 661.8 | $ | 635.8 | $ | 594.4 | $ | 844.4 | ||||
Gross profit | 144.9 | 167.8 | 170.6 | 248.8 | ||||||||
Net income attributable to Dresser-Rand | 23.6 | 34.0 | 41.2 | 80.2 | ||||||||
Net income per share | ||||||||||||
Basic | 0.31 | 0.45 | 0.55 | 1.06 | ||||||||
Diluted | 0.31 | 0.45 | 0.54 | 1.05 | ||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
Supplemental Cash Flow Information | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Cash paid for interest, net of capitalized interest | $ | 54.1 | $ | 59.1 | $ | 61.7 | |||
Cash paid for income taxes, net of refunds | 80.8 | 56.9 | 41.0 | ||||||
Schedule of Noncash Investing and Financing Activities(1): | |||||||||
Assets acquired in acquisition | $ | - | $ | 55.8 | $ | 1,018.1 | |||
Liabilities assumed in acquisition | - | 2.6 | 474.9 | ||||||
(1) See Note 3 for additional discussion of the Company’s acquisitions. | |||||||||
Recovered_Sheet1
Summary of Significant Accounting Policies - (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | ' | ' |
Restricted cash, sinking fund requirements | $8.10 | $16.50 |
Allowance for losses on receivable 360 days past due, percentage | 100.00% | ' |
Years Of Cash Flows Before Terminal Value | '7 | ' |
Fair Value Inputs, Long-term Revenue Growth Rate | 2.50% | ' |
Fair Value Inputs, Discount Rate | 14.00% | ' |
Period to complete multiple-element revenue arrangements | '15 months | ' |
Percentage of completion, consolidated revenues percentage | 6.50% | 0.80% |
Building | Minimum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Property, plant and equipment useful life | '5 years | ' |
Building | Maximum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Property, plant and equipment useful life | '40 years | ' |
Machinery and Equipment | Minimum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Property, plant and equipment useful life | '3 years | ' |
Machinery and Equipment | Maximum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Property, plant and equipment useful life | '10 years | ' |
Acquisitions_And_Other_Investm2
Acquisitions And Other Investments - (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 04, 2013 | Dec. 31, 2013 | 4-May-11 | Dec. 31, 2011 | Feb. 28, 2011 | Dec. 31, 2013 | Apr. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2008 |
Bethel Holdco, LLC [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Guascor [Member] | Guascor [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 | ' | $283.50 | $283.50 | ' | ' | ' | ' | ' |
Business acquisition, ownership percentage | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Business acquisition, additional contingent consideration | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' |
Payment made to seller of Synchrony | ' | ' | 4.7 | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of additional consideration | ' | ' | ' | ' | -5.5 | ' | ' | ' | ' | ' |
Business acquisition, assumed debt | ' | ' | ' | 253.4 | ' | ' | ' | ' | ' | ' |
Common stock issued for acquisition | ' | ' | ' | 5,033,172 | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | 543.2 | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | 34.4 | ' |
Investment to acquire noncontrolling interest | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' |
Percentage of aggregate non-controlling interest acquired | 10.00% | ' | ' | ' | ' | ' | 35.50% | ' | 42.20% | ' |
Equity method investment, un-owned percentage | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method Investments | 5 | ' | ' | ' | ' | ' | 17.1 | ' | 29.7 | ' |
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 $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | 4-May-11 |
In Millions, unless otherwise specified | Synchrony [Member] | Guascor [Member] | Guascor [Member] | |||
Cash and cash equivalents | ' | ' | ' | $0.10 | $21.70 | ' |
Restricted cash | ' | ' | ' | ' | 36.6 | ' |
Accounts receivable | ' | ' | ' | 2.1 | 79.3 | ' |
Inventory | ' | ' | ' | 1.5 | 41.9 | ' |
Prepaid expenses | ' | ' | ' | 0.1 | 21.1 | ' |
Total current assets | ' | ' | ' | 3.8 | 200.6 | ' |
Property, plant and equipment | ' | ' | ' | 2.2 | 206.9 | ' |
Amortizable intangible assets | ' | ' | ' | 22.9 | 136.5 | ' |
Goodwill | 927.6 | 911.3 | 869.8 | 26.3 | 452.7 | ' |
Other assets | ' | ' | ' | 0.6 | 21.4 | ' |
Total assets acquired | ' | ' | ' | 55.8 | 1,018.10 | ' |
Accounts payable and accruals | ' | ' | ' | 2.6 | 141.7 | ' |
Customer advance payments | ' | ' | ' | ' | 9 | ' |
Accrued income taxes payable | ' | ' | ' | ' | 3.1 | ' |
Current portion of long-term debt | ' | ' | ' | ' | 98.8 | ' |
Long-term debt | ' | ' | ' | ' | 154.6 | ' |
Other noncurrent liabilities | ' | ' | ' | ' | 67.7 | ' |
Total liabilities assumed | ' | ' | ' | 2.6 | 474.9 | ' |
Purchase price | ' | ' | ' | 53.2 | 543.2 | ' |
Fair value of contingent consideration (non-cash) | ' | ' | ' | -4.3 | 5.5 | ' |
Fair value of Dresser-Rand common stock as partial consideration | ' | ' | ' | ' | -243.5 | ' |
Cash acquired | ' | ' | ' | -0.1 | -21.7 | ' |
Cash paid | ' | ' | ' | $48.80 | $283.50 | $283.50 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Dresser-Rand | $32.80 | $49.40 | $53.30 | $32.90 | $80.20 | $41.20 | $34 | $23.60 | $168.40 | $179 | $120.80 |
Weighted-average common shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | 76,139 | 75,487 | 77,532 |
Dilutive effect of stock-based compensation awards | ' | ' | ' | ' | ' | ' | ' | ' | 687 | 789 | 787 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 76,826 | 76,276 | 78,319 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.43 | $0.65 | $0.70 | $0.43 | $1.06 | $0.55 | $0.45 | $0.31 | $2.21 | $2.37 | $1.56 |
Diluted | $0.43 | $0.64 | $0.69 | $0.43 | $1.05 | $0.54 | $0.45 | $0.31 | $2.19 | $2.35 | $1.54 |
Costs_And_Estimated_Earnings_I2
Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts (Details) (USD $) | Dec. 31, 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 | $195.50 | $35 |
Estimated earnings | 52.4 | 15.5 |
Costs incurred and estimated billings on uncompleted contracts | 247.9 | 50.5 |
Less: billings to date | -162.7 | -33.4 |
Net estimate billings on uncompleted contracts | 85.2 | 17.1 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 98.1 | 17.1 |
Billings in Excess of Cost | ($12.90) | ' |
Inventories_Net_Inventories_De
Inventories, Net - (Inventories) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $71 | $59.30 |
Finished parts | 262.4 | 203.1 |
Work-in-process | 845.9 | 707.9 |
Inventories, gross | 1,179.30 | 970.3 |
Less: progress payments | -463.3 | -417.8 |
Inventories, net | $716 | $552.50 |
Inventories_Net_Narrative_Deta
Inventories, Net - (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Progress payments to suppliers included in work-in-process | $129 | $101.10 |
Allowance for obsolescence for slow-moving inventory | $30.70 | $31.60 |
Property_Plant_And_Equipment_P
Property, Plant And Equipment - (Property, Plant And Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cost: | ' | ' |
Land | $33.10 | $31 |
Buildings and improvements | 261.4 | 213.2 |
Machinery and equipment | 479 | 484.1 |
Property, plant and equipment, gross | 773.5 | 728.3 |
Less: accumulated depreciation | -301.2 | -261.4 |
Property, plant and equipment, net | $472.30 | $466.90 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment - (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation expense | $63.40 | $56.10 | $45.90 |
Intangible_Assets_And_Goodwill2
Intangible Assets And Goodwill - (Weighted Average Useful Life, Gross Amount And Accumulated Amortization Of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $670.90 | $671.50 |
Accumulated Amortization | 191.9 | 164.6 |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 120 | 119 |
Accumulated Amortization | 24.2 | 20.9 |
Weighted-Average Useful Lives | '39 years | ' |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 333.2 | 331.7 |
Accumulated Amortization | 79.4 | 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 | 5 | 3.8 |
Weighted-Average Useful Lives | '3 years | ' |
Existing Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 160.6 | 161.6 |
Accumulated Amortization | 55.3 | 48 |
Weighted-Average Useful Lives | '23 years | ' |
Contracts And Purchase Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 10.2 | 11.1 |
Accumulated Amortization | 1.4 | 1 |
Weighted-Average Useful Lives | '11 years | ' |
Software [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 28.7 | 30.6 |
Accumulated Amortization | 26.3 | 25 |
Weighted-Average Useful Lives | '10 years | ' |
In-process Research And Development [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 12.7 | 12.1 |
Accumulated Amortization | $0.30 | ' |
Weighted-Average Useful Lives | '10 years | ' |
Recovered_Sheet2
Intangible Assets and Goodwill - (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets And Goodwill [Abstract] | ' | ' | ' |
Intangible asset amortization expense | $28.90 | $29.40 | $33 |
2014 | 29 | ' | ' |
2015 | 25.4 | ' | ' |
2016 | 24.8 | ' | ' |
2017 | 24.7 | ' | ' |
2018 | $24.30 | ' | ' |
Intangible_Assets_And_Goodwill3
Intangible Assets And Goodwill - (Changes In Goodwill In Total And By Segment) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning Balance | $911.30 | $869.80 |
Acquisitions | ' | 26.3 |
Foreign currency adjustments | 16.3 | 15.2 |
Ending Balance | 927.6 | 911.3 |
New Units [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 476.7 | 442.6 |
Acquisitions | ' | 26.3 |
Foreign currency adjustments | 11.7 | 7.8 |
Ending Balance | 488.4 | 476.7 |
Aftermarket Parts And Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 434.6 | 427.2 |
Foreign currency adjustments | 4.6 | 7.4 |
Ending Balance | $439.20 | $434.60 |
Recovered_Sheet3
Accounts Payable and Accruals (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accruals [Abstract] | ' | ' |
Accounts payable | $404.50 | $361.50 |
Accruals: | ' | ' |
Payroll and benefits | 67.7 | 71.6 |
Taxes other than income | 49.4 | 39.3 |
Accrual for major inventory purchases | 27.7 | ' |
Warranties | 21.4 | 20.1 |
Third-party commissions | 21.4 | 19.3 |
Refundable payments related to cogeneration facilities | 22.3 | ' |
Billings in Excess of Cost | 12.9 | ' |
Interest | 11.8 | 12.8 |
Legal, audit and consulting | 7.6 | 8.3 |
Insurance and claims | 7.2 | 7.7 |
Pension and postretirement benefits | 4.5 | 5.2 |
Forward exchange contracts | 16.3 | 3.8 |
Other | 54.4 | 50.8 |
Total accounts payable and accruals | $729.10 | $600.40 |
Income_Taxes_Income_Before_Inc
Income Taxes - (Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
United States | $98.70 | $92.50 | $52.80 |
Foreign | 158.8 | 183.2 | 131.1 |
Income before income taxes | $257.50 | $275.70 | $183.90 |
Income_Taxes_Provision_for_Inc
Income Taxes - (Provision for Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
United States | $10.60 | $30.70 | ($4.70) |
Foreign | 73.8 | 53.5 | 46.8 |
Total current | 84.4 | 84.2 | 42.1 |
United States | 10.7 | 9 | 21.9 |
Foreign | -6.9 | -0.4 | -1.1 |
Deferred Income Tax Expense (Benefit), Total | 3.8 | 8.6 | 20.8 |
Income Tax Expense (Benefit), Total | $88.20 | $92.80 | $62.90 |
Income_Taxes_Provision_for_Inc1
Income Taxes - (Provision for Income Tax Difference) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Foreign operations | -12.60% | -4.20% | -3.60% |
State and local income taxes, net of U.S. tax | 1.20% | 1.10% | 1.20% |
Valuation allowances | 9.10% | 1.90% | 2.80% |
Export / manufacturing deductions | -0.80% | -0.90% | ' |
Qualifying advanced energy credit | ' | -0.30% | -1.80% |
R & D | -2.60% | -0.20% | -1.60% |
Other | -0.10% | 1.30% | 2.20% |
Effective tax rate | 34.20% | 33.70% | 34.20% |
Spanish Operations Member | ' | ' | ' |
Valuation allowances | 5.00% | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes - (Reconciliation of Beginning and Ending Unrecognized Tax Benefits Associated with Uncertain Tax Positions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Beginning balance | $14.30 | $13.80 | $4.10 |
Additions based on tax positions related to current year | 3.5 | 0.8 | 0.7 |
Additions based on tax positions related to prior year | 2.1 | 1.3 | 1.9 |
Tax benefits acquired or assumed in a business combination | ' | ' | 10.4 |
Settlements | -1.2 | -1.6 | -3.2 |
Lapse in statute of limitations | -0.5 | -0.2 | ' |
Foreign currency adjustments | 0.5 | 0.2 | -0.1 |
Ending balance | $18.70 | $14.30 | $13.80 |
Income_Taxes_Tax_Years_Remain_
Income Taxes - (Tax Years Remain Subject to Examination by Major Tax Jurisdiction) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
BRAZIL | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2008 - 2013 |
CANADA | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2008 - 2013 |
FRANCE | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2013 |
GERMANY | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2007 - 2013 |
INDIA | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2005 - 2013 |
ITALY | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2009 - 2013 |
MALAYSIA | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2006 - 2013 |
NETHERLANDS | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2009 - 2013 |
NIGERIA | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2010 - 2013 |
NORWAY | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2006 - 2013 |
SPAIN | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2009 - 2013 |
UNITED KINGDOM | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2007 - 2013 |
UNITED STATES | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2010 - 2013 |
VENEZUELA | ' |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | ' |
Open tax years | '2009 - 2013 |
Income_Taxes_Summary_of_Tax_Ef
Income Taxes - (Summary of Tax Effect of Temporary Differences that Create Deferred Tax Accounts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax liabilities | ' | ' |
Depreciation and amortization | $118.50 | $125.40 |
Deferred tax assets | ' | ' |
Investment and R&D credit carryforward, net | -30.8 | -26.1 |
Inventories and receivables | -21.1 | -17.2 |
Foreign tax credit carryforward | -4.7 | -9 |
Other accrued expenses | -12 | -6.9 |
Tax net operating loss carryforwards | -107.2 | -86.1 |
Pension and employee benefits | -41.9 | -66.7 |
Total deferred tax assets | -217.7 | -212 |
Valuation allowances | 121.2 | 83.6 |
Net deferred tax assets | -96.5 | -128.4 |
Presented on the consolidated balance sheet as: | ' | ' |
Current deferred tax assets | -25.2 | -30.5 |
Current deferred tax liabilities | 3.6 | 6.6 |
Noncurrent deferred tax assets | -11.8 | -14.9 |
Noncurrent deferred tax liabilities | 55.4 | 35.8 |
Total net deferred tax assets | $22 | ($3) |
Income_Taxes_Narrative_Details
Income Taxes - (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Unrecognized Tax Benefits | $18.70 | $14.30 | $13.80 | $4.10 |
Expense related to uncertain tax positions | 4.7 | ' | ' | ' |
Accumulated undistributed foreign earnings | 411.1 | ' | ' | ' |
Net operating loss carry forwards available to offset future taxable income in certain foreign subsidiaries | 371.1 | 295 | ' | ' |
Research and experimentation tax credits carried forward indefinitely | 30.8 | 26.1 | ' | ' |
Foreign tax credit | 4.7 | 9 | ' | ' |
Foreign tax credit, expiration period | '2023 | ' | ' | ' |
Net operating loss carry forwards available to offset future taxable income in certain foreign subsidiaries, Valuation allowances | 121.2 | 83.6 | ' | ' |
Net operating loss carry forwards in foreign jurisdiction expiration period | '2014 | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ' |
Tax expense associated with discrete event | 2.1 | 1.3 | 1.9 | ' |
Dividend declared foreign earnings repatriated, maximum amount | 47.5 | ' | ' | ' |
Foreign exchange loss | -0.8 | -9 | -2.7 | ' |
Impact of tax holiday arrangements on income tax expense | 9.1 | 2.1 | 3.8 | ' |
Impact of tax holiday arrangements per diluted share | $0.12 | $0.03 | $0.05 | ' |
Income Tax Credits and Adjustments | 10.6 | ' | ' | ' |
Accrued income taxes payable | 36.1 | 44.4 | ' | ' |
Domestic Tax Authority [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax expense associated with discrete event | 4.4 | ' | ' | ' |
Luxembourg subsidiary [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Percentage point increase decrease in effective tax rate | 3.40% | ' | ' | ' |
French operations [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Percentage point increase decrease in effective tax rate | 0.40% | ' | ' | ' |
Liability for Uncertain Tax Positions, Current | -2.3 | ' | ' | ' |
Accrued income taxes payable | 1.2 | ' | ' | ' |
Devaluation Of Venezuelan Bolivar [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign exchange loss | $3.10 | ' | ' | ' |
Percentage point increase decrease in effective tax rate | -0.40% | ' | ' | ' |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt - (Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $1,287 | $1,050.80 |
Less: current portion | -40.1 | -35.9 |
Total long-term debt | 1,246.90 | 1,014.90 |
Amended Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 884.5 | 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 | 4.6 | ' |
Other Indebtedness [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $22.90 | $60.20 |
LongTerm_Debt_Debt_Maturities_
Long-Term Debt - (Debt Maturities) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Long-Term Debt [Abstract] | ' |
2014 | $40.10 |
2015 | 23.6 |
2016 | 20.8 |
2017 | 20.7 |
2018 | 805.2 |
Thereafter | 376.6 |
Total | $1,287 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt - (Narrative) (Details) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Aug. 31, 2013 | Mar. 22, 2011 | Mar. 31, 2011 | Mar. 22, 2011 | Mar. 22, 2011 | Mar. 22, 2011 | Mar. 22, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | 6 1/2% Senior Subordinated Notes Due May 2021 [Member] | Tranche A Term Loan [Member] | Tranche B Term Loan [Member] | Revolving Credit Facility | Term Loan [Member] | Letter of Credit | Letter of Credit | Bank Overdraft Facility [Member] | Bank Overdraft Facility [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |
USD ($) | Senior Subordinated Notes Redeemable Beginning May One Twenty Sixteen Member | Senior Subordinated Notes Redeemable Prior To May one Twenty Fourteen Member | Senior Subordinated Notes Redeemable Prior To May One Twenty Sixteen Member | Senior Subordinated Notes Redeemable Beginning May One Twenty Nineteen 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $1,100 | ' | ' | € 50 | $700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowing capacity | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current amount outstanding | 884.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 588.8 | 295.7 | 85.5 | 221.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, additional margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | 1.75% | 0.75% | ' | 2.50% | 1.50% |
Unutilized commitments fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | 0.50% | ' | ' |
Debt fees | '$5.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt fees amortized | 3.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter Of Credit Fees | 2.8 | 4.7 | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior subordinated notes | ' | ' | ' | ' | ' | $375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior subordinated notes, interest rate | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Redemption Price Percent Of Principal Amount | ' | ' | ' | ' | ' | ' | ' | 103.25% | 106.50% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Redemption Date | ' | ' | ' | ' | ' | 1-May-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Redeemable Notes Maximum | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maturity Date | ' | ' | ' | ' | ' | 1-May-21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 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 | $400.50 | $399.10 |
Long-term debt, maturity date | '2021-05 | '2021-05 |
Long-term debt, interest rate | 6.50% | 6.50% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Long Term Debt | $1,287 | $1,050.80 |
Bank Term Loan [Member] | ' | ' |
Long Term Debt | ' | 3.8 |
Bank Term Loan [Member] | ITALY | ' | ' |
Long Term Debt | 0.5 | ' |
Project Finance Facility [Member] | ' | ' |
Long Term Debt | ' | 24.9 |
Project Finance Facility [Member] | SPAIN | ' | ' |
Long Term Debt | 13.3 | ' |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.25% | ' |
Debt Outstanding Principal Amount | 10 | ' |
Project Finance Facility [Member] | BRAZIL | ' | ' |
Long Term Debt | 3.3 | ' |
Debt Instrument Interest Additional Interest Above Rate | 6.00% | ' |
Subsidized Loans Member | ' | ' |
Long Term Debt | 5.4 | 9.5 |
Imputed interest rate | 8.74% | ' |
Participating Loans Member | ' | ' |
Long Term Debt | 1.4 | ' |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.25% | ' |
Other Notes Payable Member | ' | ' |
Long Term Debt | ' | $22 |
Minimum [Member] | Bank Term Loan [Member] | ITALY | ' | ' |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.70% | ' |
Maximum [Member] | Bank Term Loan [Member] | ITALY | ' | ' |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.80% | ' |
Pension_Plans_Information_Rega
Pension Plans - (Information Regarding Pension Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Plans [Member] | ' | ' | ' |
Change in projected benefit obligations | ' | ' | ' |
Benefit obligation at beginning of the period | $314.20 | $286.20 | ' |
Service cost | 3.8 | 3.8 | 3.3 |
Interest cost | 11.6 | 12.8 | 12.8 |
Expenses paid | -1 | -0.9 | ' |
Recognized net actuarial gain | -28.8 | 26.4 | ' |
Plan amendments | 0.9 | ' | ' |
Benefits paid | -14.7 | -14.1 | ' |
Benefit obligation at end of the period | 286 | 314.2 | 286.2 |
Change in plan assets | ' | ' | ' |
Beginning balance | 219.2 | 196.5 | ' |
Actual return on assets | 31.9 | 24.5 | ' |
Contribution by employer | 11.5 | 13.2 | ' |
Expenses paid | -1 | -0.9 | ' |
Benefits paid | -14.7 | -14.1 | ' |
Ending Balance | 246.9 | 219.2 | 196.5 |
Amounts recognized in the balance sheet consist of: | ' | ' | ' |
Current liabilities | 0.6 | 0.7 | ' |
Noncurrent liabilities | 38.5 | 94.3 | ' |
Total balance sheet liability | 39.1 | 95 | ' |
Amounts recognized in accumulated other comprehensive loss consists of: | ' | ' | ' |
Cumulative net actuarial loss | 52.6 | 104.9 | ' |
Cumulative prior service cost | 0.8 | ' | ' |
Total | 53.4 | 104.9 | ' |
Non-U.S. Plans [Member] | ' | ' | ' |
Change in projected benefit obligations | ' | ' | ' |
Benefit obligation at beginning of the period | 159.8 | 141 | ' |
Service cost | 5.6 | 5.3 | 4.8 |
Interest cost | 6.4 | 6.7 | 7.4 |
Employee contributions | 0.2 | 0.2 | ' |
Expenses paid | -0.1 | -0.3 | ' |
Recognized net actuarial gain | 17.2 | 6.8 | ' |
Curtailment / settlement | -43.4 | ' | ' |
Benefits paid | -6.3 | -6.9 | ' |
Foreign currency adjustments | -1.1 | 7 | ' |
Benefit obligation at end of the period | 138.3 | 159.8 | 141 |
Change in plan assets | ' | ' | ' |
Beginning balance | 130.9 | 112.3 | ' |
Actual return on assets | 10 | 11.7 | ' |
Settlements | -26.8 | ' | ' |
Contribution by employer | 10.1 | 8.1 | ' |
Employee contributions | 0.2 | 0.2 | ' |
Expenses paid | -0.1 | -0.3 | ' |
Benefits paid | -6.3 | -6.9 | ' |
Foreign currency adjustments | -0.2 | 5.8 | ' |
Ending Balance | 117.8 | 130.9 | 112.3 |
Amounts recognized in the balance sheet consist of: | ' | ' | ' |
Current liabilities | 1.7 | 1.5 | ' |
Noncurrent liabilities | 18.8 | 27.4 | ' |
Total balance sheet liability | 20.5 | 28.9 | ' |
Amounts recognized in accumulated other comprehensive loss consists of: | ' | ' | ' |
Cumulative net actuarial loss | 18 | 17.5 | ' |
Cumulative prior service cost | 1 | 1.3 | ' |
Total | $19 | $18.80 | ' |
Pension_Plans_Components_of_Ne
Pension Plans - (Components of Net Pension Expense Amounts Recognized in Consolidated Statement Of Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Plans [Member] | ' | ' | ' |
Net pension expense | ' | ' | ' |
Service cost | $3.80 | $3.80 | $3.30 |
Interest cost | 11.6 | 12.8 | 12.8 |
Expected return on plan assets | -16.1 | -14.9 | -14.5 |
Amortization of net actuarial loss | 7.8 | 7.2 | 2.2 |
Amortization of prior service cost | ' | 0.3 | 1.4 |
Net pension expense | 7.1 | 9.2 | 5.2 |
Amounts recognized in other comprehensive loss (income) | ' | ' | ' |
Net actuarial loss (gain) | -44.5 | 16.7 | 51.4 |
Prior service cost | 0.9 | ' | -0.5 |
Amortization of net actuarial loss | -7.8 | -7.2 | -2.2 |
Amortization of prior service cost | ' | -0.3 | -1.4 |
Total recognized in other comprehensive loss (income) | -51.4 | 9.2 | 47.3 |
Total recognized | -44.3 | 18.4 | 52.5 |
Non-U.S. Plans [Member] | ' | ' | ' |
Net pension expense | ' | ' | ' |
Service cost | 5.6 | 5.3 | 4.8 |
Interest cost | 6.4 | 6.7 | 7.4 |
Expected return on plan assets | -6.9 | -6.9 | -7.4 |
Amortization of net actuarial loss | 0.4 | 0.6 | 0.3 |
Settlement | 3.6 | ' | ' |
Amortization of prior service cost | 0.1 | -0.1 | -0.2 |
Net pension expense | 2 | 5.6 | 4.9 |
Amounts recognized in other comprehensive loss (income) | ' | ' | ' |
Net actuarial loss (gain) | 14 | 2.1 | 1.2 |
Amortization of net actuarial loss | -0.4 | -0.6 | -0.3 |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | -13 | ' | ' |
Amortization of prior service cost | -0.1 | 0.1 | 0.2 |
Total recognized in other comprehensive loss (income) | 0.5 | 1.6 | 1.1 |
Total recognized | $2.50 | $7.20 | $6 |
Pension_Plans_WeightedAverage_
Pension Plans - (Weighted-Average Assumptions Used for Benefit Obligations and Net Periodic Pension Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average assumptions used for benefit obligations | ' | ' | ' |
Discount rate | 4.70% | 3.80% | 4.60% |
Weighted-average assumptions used for net periodic pension cost | ' | ' | ' |
Discount rate | 3.80% | 4.60% | 5.30% |
U.S. Plans [Member] | ' | ' | ' |
Weighted-average assumptions used for benefit obligations | ' | ' | ' |
Discount rate | 4.70% | 3.80% | 4.60% |
Rate of compensation increase | 0.13% | 0.13% | 0.15% |
Weighted-average assumptions used for net periodic pension cost | ' | ' | ' |
Discount rate | 3.80% | 4.60% | 5.40% |
Rate of compensation increase | 0.13% | 0.15% | 0.16% |
Expected return on plan assets | 7.50% | 7.50% | 7.50% |
Non-U.S. Plans [Member] | ' | ' | ' |
Weighted-average assumptions used for benefit obligations | ' | ' | ' |
Discount rate | 4.07% | 4.15% | 4.76% |
Rate of compensation increase | 2.58% | 2.51% | 2.69% |
Weighted-average assumptions used for net periodic pension cost | ' | ' | ' |
Discount rate | 4.15% | 4.76% | 5.23% |
Rate of compensation increase | 2.51% | 2.69% | 4.19% |
Expected return on plan assets | 5.44% | 6.09% | 6.69% |
Pension_Plans_Information_for_
Pension Plans - (Information for Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. Plans [Member] | ' | ' |
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ' | ' |
Projected benefit obligation | $286.10 | $314.10 |
Accumulated benefit obligation | 286.1 | 314.1 |
Fair value of plan assets | 247 | 219.2 |
Non-U.S. Plans [Member] | ' | ' |
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ' | ' |
Projected benefit obligation | 31.1 | 56 |
Accumulated benefit obligation | 27.1 | 47 |
Fair value of plan assets | $11.20 | $24.50 |
Pension_Plans_Asset_Allocation
Pension Plans - (Asset Allocations of Pension Plans by Asset Category) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | |||||
U.S. Plans [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | $246.90 | $219.20 | $196.50 | ||
U.S. Plans [Member] | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 3.6 | 2.9 | ' | ||
U.S. Plans [Member] | U S Large Cap Equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 67.8 | 54.5 | ' | ||
U.S. Plans [Member] | U S Small Cap Value | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 13.8 | 10.8 | ' | ||
U.S. Plans [Member] | U S Small Cap Growth Equity | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 12.1 | 10.1 | ' | ||
U.S. Plans [Member] | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 39.3 | 33 | ' | ||
U.S. Plans [Member] | U.S. fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 60.8 | [1] | 63.3 | [1] | ' |
U.S. Plans [Member] | Global asset allocations | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 49.5 | [2] | 44.6 | [2] | ' |
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 178.8 | 160.8 | ' | ||
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | U S Large Cap Equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 67.8 | 54.5 | ' | ||
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | U S Small Cap Value | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 13.8 | 10.8 | ' | ||
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | U S Small Cap Growth Equity | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 12.1 | 10.1 | ' | ||
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 60.8 | [1] | 63.3 | [1] | ' |
U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Global asset allocations | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 24.3 | [2] | 22.1 | [2] | ' |
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 68.1 | 58.4 | ' | ||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 3.6 | 2.9 | ' | ||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 39.3 | 33 | ' | ||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | Global asset allocations | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 25.2 | [2] | 22.5 | [2] | ' |
Non-U.S. Plans [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 117.8 | 130.9 | 112.3 | ||
Non-U.S. Plans [Member] | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 0.5 | 1.2 | ' | ||
Non-U.S. Plans [Member] | U S Equity Securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 10.4 | 8.7 | ' | ||
Non-U.S. Plans [Member] | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 54.6 | 50 | ' | ||
Non-U.S. Plans [Member] | International fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 39.6 | [3] | 41.5 | [3] | ' |
Non-U.S. Plans [Member] | Insurance contracts | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 12.7 | [4] | 29.5 | [4] | ' |
Non-U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | ' | 2.2 | ' | ||
Non-U.S. Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | ' | 2.2 | ' | ||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 105.1 | 99.2 | ' | ||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 0.5 | 1.2 | ' | ||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | U S Equity Securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 10.4 | 8.7 | ' | ||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 54.6 | 47.8 | ' | ||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | International fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 39.6 | [3] | 41.5 | [3] | ' |
Non-U.S. Plans [Member] | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | 12.7 | 29.5 | ' | ||
Non-U.S. Plans [Member] | Significant Unobservable Inputs (Level 3) | Insurance contracts | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of plan asset | $12.70 | [4] | $29.50 | [4] | ' |
[1] | U.S. Fixed Income: Includes investments in the broad fixed income market such as government and agency bonds, mortgage bonds, and corporate bonds. Duration of the bonds may range from short (e.g., three months or less) to very long (e.g., 12 years or longer). Credit quality of U.S. Fixed Income is generally high quality in nature (e.g., AAA to BBB) but can also include lower quality or high yield bonds (e.g., BB or lower). Common indices are the Barclays Aggregate and Citigroup Broad Investment Grade Index. | ||||
[2] | Global Asset Allocations: Broadly diversified strategy where investment managers have the capacity to invest in multiple asset classes and the ability to alter asset class allocations with agreed tolerances. In some cases, there are no common indices for the assets in this asset class and typically a blended index of equities and fixed income is utilized, ex. 60% S&P 500/40% Barclays Aggregate. | ||||
[3] | International Fixed Income: Includes investments in the broad fixed income market such as government and corporate bonds. Duration of the bonds usually range over 15 years. Credit quality of International Fixed Income is generally high quality in nature (e.g., AAA to A). Common indices are the FTSE UK Gilts >15 Years, iBoxx £ Non-Gilts ex BBB 15 Year + and FTSE A Index-Linked > Five Years. | ||||
[4] | Insurance Contracts: Provided by insurance companies that pay benefits to retirees. |
Pension_Plans_Reconciliation_o
Pension Plans - (Reconciliation of Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs) (Level Three) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | $219.20 | $196.50 |
Actual return on assets | 31.9 | 24.5 |
Contribution by employer | 11.5 | 13.2 |
Benefit payments | -14.7 | -14.1 |
Ending Balance | 246.9 | 219.2 |
Non-U.S. Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | 130.9 | 112.3 |
Actual return on assets | 10 | 11.7 |
Contribution by employer | 10.1 | 8.1 |
Foreign exchange | -0.2 | 5.8 |
Benefit payments | -6.3 | -6.9 |
Settlements | 26.8 | ' |
Ending Balance | 117.8 | 130.9 |
Non-U.S. Plans [Member] | Significant Unobservable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Beginning balance | 29.5 | 24.1 |
Actual return on assets | 0.1 | 1.5 |
Contribution by employer | 12.6 | 3.7 |
Foreign exchange | -2.5 | 1.7 |
Benefit payments | -1.2 | -1.2 |
Settlements | -25.8 | -0.3 |
Ending Balance | $12.70 | $29.50 |
Pension_Plans_Narrative_Detail
Pension Plans - (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
agreement | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Number of plans | 2 | ' | ' |
Multiemployer Plan, Period Contributions | $1.10 | $1 | $1 |
Net Compensation Expense | 4 | 4.3 | 3.9 |
U.S. Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Estimated net actuarial loss and prior service cost | 3 | ' | ' |
Funded plan projected contribution | 10.7 | ' | ' |
Contribution by employer | 11.5 | 13.2 | ' |
Expected benefit payments in 2014 | 16.4 | ' | ' |
Expected benefit payments in 2015 | 17 | ' | ' |
Expected benefit payments in 2016 | 17.7 | ' | ' |
Expected benefit payments in 2017 | 18.4 | ' | ' |
Expected benefit payments in 2018 | 19.1 | ' | ' |
Expected benefit payments from 2019 to 2023 | 104.3 | ' | ' |
Employer contributions and costs | 18.2 | 16.5 | 16.5 |
U.S. Plans [Member] | Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Global asset allocation percentage for pension plan | 60.00% | ' | ' |
U.S. Plans [Member] | Debt Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Global asset allocation percentage for pension plan | 40.00% | ' | ' |
Non-U.S. Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 3.6 | ' | ' |
Estimated net actuarial loss and prior service cost | 0.5 | ' | ' |
Funded plan projected contribution | 1.7 | ' | ' |
Contribution by employer | 10.1 | 8.1 | ' |
Expected benefit payments in 2014 | 7 | ' | ' |
Expected benefit payments in 2015 | 6.1 | ' | ' |
Expected benefit payments in 2016 | 8.1 | ' | ' |
Expected benefit payments in 2017 | 7.1 | ' | ' |
Expected benefit payments in 2018 | 7.4 | ' | ' |
Expected benefit payments from 2019 to 2023 | 39.7 | ' | ' |
Defined contribution plans costs | 4 | 3.4 | 3.2 |
Non-U.S. Plans [Member] | NORWAY | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $3.60 | ' | ' |
PostRetirement_Benefits_Other_2
Post-Retirement Benefits Other than Pensions - (Summary Post-Retirement Benefits Other Than Pensions Plans) (Details) (Other Postretirement Benefit Plans, Defined Benefit, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Benefit obligation at beginning of the period | $19.60 | $18.60 | ' |
Interest cost | 0.8 | 0.8 | 0.9 |
Benefits paid | -0.6 | -0.4 | ' |
Actuarial losses | -3.4 | 0.6 | ' |
Benefit obligation at end of the period | 16.4 | 19.6 | 18.6 |
Amounts recognized in the balance sheet: | ' | ' | ' |
Current liabilities | 1.3 | 1 | ' |
Noncurrent liabilities | 15.1 | 18.6 | ' |
Total consolidated balance sheet liability | 16.4 | 19.6 | ' |
Amounts recognized in accumulated other comprehensive income: | ' | ' | ' |
Cumulative net actuarial loss | 1.9 | 5.9 | ' |
Cumulative net prior service credit | -0.6 | -0.6 | ' |
Total | $1.30 | $5.30 | ' |
PostRetirement_Benefits_Other_3
Post-Retirement Benefits Other Than Pensions - (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Changes in trend rate | 1.00% |
Other Postemployment Benefits | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Estimated net actuarial loss and prior service cost | 0.2 |
Expected benefit payments in 2014 | 1.3 |
Expected benefit payments in 2015 | 1.4 |
Expected benefit payments in 2016 | 1.4 |
Expected benefit payments in 2017 | 1.2 |
Expected benefit payments in 2018 | 1.1 |
Expected benefit payments from 2019 to 2023 | 5.1 |
PostRetirement_Benefits_Other_4
Post-Retirement Benefits Other than Pensions - (Components of Net Post-Retirement Benefit Expense (Income) and Amounts Recognized in Other Comprehensive Loss (Income)) (Details) (Other Postretirement Benefit Plans, Defined Benefit, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' |
Net post-retirement benefits expense (income) | ' | ' | ' |
Interest cost | $0.80 | $0.80 | $0.90 |
Amortization of prior service credit | ' | ' | -1.7 |
Amortization of net actuarial loss | 0.6 | 1 | 0.9 |
Net pension expense | 1.4 | 1.8 | 0.1 |
Amounts recognized as other comprehensive (income) loss | ' | ' | ' |
Net actuarial loss | -3.4 | 0.6 | 2.9 |
Amortization of Net prior service credit | ' | ' | 1.7 |
Amortization of net actuarial loss | -0.6 | -1 | -0.9 |
Total recognized in comprehensive (income) loss | -4 | -0.4 | 3.7 |
Total recognized | ($2.60) | $1.40 | $3.80 |
PostRetirement_Benefits_Other_5
Post-Retirement Benefits Other than Pensions - (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average assumptions used to determine benefit obligations at December 31 | ' | ' | ' |
Discount rate | 4.70% | 3.80% | 4.60% |
Measurement date | '12/31/13 | '12/31/12 | '12/31/11 |
Weighted-average assumptions used for net periodic pension cost | ' | ' | ' |
Discount rate | 3.80% | 4.60% | 5.30% |
Measurement date | '12/31/13 | '12/31/12 | '12/31/11 |
Assumed health care cost trend rates | ' | ' | ' |
Current year trend rate | 7.70% | 8.30% | 8.30% |
Ultimate trend rate | 4.75% | 4.75% | 4.75% |
Benefit obligations | ' | ' | ' |
Weighted-average assumptions used to determine benefit obligations at December 31 | ' | ' | ' |
Measurement date | '12/31/12 | '12/31/11 | '12/31/10 |
Weighted-average assumptions used for net periodic pension cost | ' | ' | ' |
Measurement date | '12/31/12 | '12/31/11 | '12/31/10 |
Assumed health care cost trend rates | ' | ' | ' |
Benefit obligations at end of period | '2034 | '2034 | '2033 |
Net periodic benefit cost | ' | ' | ' |
Assumed health care cost trend rates | ' | ' | ' |
Benefit obligations at end of period | '2034 | '2033 | '2032 |
PostRetirement_Benefits_Other_6
Post-Retirement Benefits Other than Pensions - (Change in Medical Trend Rate Assumed Post- Retirements Benefits) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Post-Retiements Benefits Other Than Pensions [Abstract] | ' |
Effect on total postretirement benefit expense, increase | $0.10 |
Effect on postretirement benefit liability, increase | 1.3 |
Effect on total postretirement benefit expense, decrease | -0.1 |
Effect on postretirement benefit liability, decrease | ($1.10) |
Share_Repurchases_Narrative_De
Share Repurchases - (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 10, 2011 | Aug. 26, 2011 | Dec. 31, 2013 | Dec. 31, 2011 |
Share Repurchases [Abstract] | ' | ' | ' | ' |
Common stock authorized for repurchase | $450 | $150 | ' | ' |
Accelerated share acquisition program, purchase price | ' | ' | ' | 505 |
Common stock repurchased amount | ' | ' | $1.50 | $505 |
Share_Repurchases_Share_Repurc
Share Repurchases - (Share Repurchase Acquisition Programs) (Details) (USD $) | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | |
Accelerated Share Repurchases [Line Items] | ' |
Amount Paid | $505 |
Shares Purchased | 10,441,468 |
March 15, 2011 | Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Amount Paid | 275 |
Date Completed | 4-Aug-11 |
Shares Purchased | 5,382,219 |
March 22, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Amount Paid | 80 |
Date Completed | 4-Aug-11 |
Shares Purchased | 1,591,780 |
August 26, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Amount Paid | $150 |
Date Completed | 29-Sep-11 |
Shares Purchased | 3,467,469 |
Initial Shares Delivered | March 15, 2011 | Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 4,740,584 |
Initial Shares Delivered | March 22, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 1,143,293 |
Initial Shares Delivered | August 26, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 3,011,242 |
Final Share Settlement | March 15, 2011 | Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 641,635 |
Final Share Settlement | March 22, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 448,487 |
Final Share Settlement | August 26, 2011 | Un-Collared Accelerated Share Repurchase Program | ' |
Accelerated Share Repurchases [Line Items] | ' |
Shares Purchased | 456,227 |
Financial_Instruments_Narrativ
Financial Instruments - (Narrative) (Details) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | 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 | ' | ' | ' | $24.80 | € 18 | $546.60 | $576.60 |
Interest rate swap, fixed rate of interest rate | 3.87% | ' | ' | ' | ' | ' | ' |
Fair value of the interest rate swap | 0.7 | 1 | ' | ' | ' | ' | ' |
Fair value of the interest rate swap related unrealized gain | 0.3 | -0.1 | -0.5 | ' | ' | ' | ' |
Gain (loss) on forward exchange contracts | -14.7 | 7.9 | -1.8 | ' | ' | ' | ' |
Fair value of tradable emission allowances liability | $0.10 | $0.80 | ' | ' | ' | ' | ' |
Financial_Instruments_Foreign_
Financial Instruments - (Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Foreign currency exchange contracts assets | $5.40 | $8.50 |
Foreign currency exchange contracts liabilities | $16.30 | $3.80 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Feb. 29, 2012 | Feb. 29, 2012 | Nov. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2007 | Dec. 28, 2007 | Jan. 31, 2010 | Jan. 31, 2010 | Feb. 29, 2012 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2007 | Dec. 31, 2013 | Dec. 28, 2007 |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | BRL | GBP (£) | USD ($) | EUR (€) | 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] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | ||
item | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | BRL | |||||||||||||||
loan | |||||||||||||||||||||
employee | |||||||||||||||||||||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '1 year | ' |
Contingent exposure accrued | ' | ' | ' | $5 | ' | ' | ' | ' | £ 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damage sought | 5.8 | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.6 | 7 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate exposure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.9 | 10.1 | 15.9 | 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 | ' | ' | ' | 10 | 7.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Restricted Assets, Current | ' | ' | ' | 1.5 | ' | ' | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Committed line of credit maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.6 | 23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin on EURIBOR Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | 1.25% |
Minimum guaranteed payment to lessor if the lease is terminated | ' | ' | ' | 80.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total rental expense | ' | ' | ' | 28.9 | ' | 25.4 | 27.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases in 2014 | ' | ' | ' | 22.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases in 2015 | ' | ' | ' | 16.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases in 2016 | ' | ' | ' | 12.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases in 2017 | ' | ' | ' | 9.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases in 2018 | ' | ' | ' | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum lease payments required under non-cancelable operating leases thereafter | ' | ' | ' | $22.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranties_Changes_In_Product_
Warranties - (Changes In Product Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments And Contingencies [Abstract] | ' | ' | ' |
Beginning balance | $20.10 | $25.60 | $28.20 |
Liabilities assumed from acquisitions | ' | ' | 6.7 |
Provision for warranties issued during period | 19.9 | 17.3 | 17.6 |
Adjustments to warranties issued in prior periods | 2.2 | -2.9 | -7.1 |
Payments during the period | -19.6 | -19.8 | -18.4 |
Foreign currency adjustments | -1.2 | -0.1 | -1.4 |
Ending balance | $21.40 | $20.10 | $25.60 |
Incentive_StockBased_Compensat2
Incentive Stock-Based Compensation Plans - (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 31-May-08 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Grants to Directors | Grants to Directors | Grants to Directors | Grants to Directors | Options and stock appreciation rights | Options and stock appreciation rights | Options and stock appreciation rights | Options and stock appreciation rights | Options and stock appreciation rights | Options and stock appreciation rights | Employee Stock Option and Stock Appreciation Rights | Employee Stock Option and Stock Appreciation Rights | Employee Stock Option and Stock Appreciation Rights | ||||||
Granted after 2008 | Awards Granted Prior to January 2010 | Restricted Stock, Stock Units and Stock Appreciation Rights | Performance Based Restricted Stock | Performance Based Restricted Stock | Performance Based Restricted Stock | |||||||||||||
Minimum [Member] | Maximum [Member] | |||||||||||||||||
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares to be issued | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense for grants to employees | $25.90 | $28.40 | $19.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares available for future Grant | 2,228,540 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized deferred stock compensation remaining weighted average vesting periods | '1 month 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total expected stock compensation expense | 27.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value per share of options and stock appreciation rights granted to employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21.52 | $21.05 | $18.54 |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.2 | ' | ' |
Realized tax benefits from exercise of stock options | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options and stock appreciation rights outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.3 | ' | ' |
Fair value of options and stock appreciation rights vested | 4.6 | 4.9 | 5.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, vesting term, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Share based awards, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '4 years | '3 years | '3 years | ' | ' | ' | ' | ' |
Stock awards vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.67% | 50.00% | ' | ' | ' |
Percentile rank of shareholder return of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 75.00% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 51.9 | 25.1 | 20.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares granted, Directors | 402,730 | 675,809 | 353,950 | ' | ' | 13,972 | 15,459 | 18,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value shares granted, Directors | ' | ' | ' | ' | ' | $0.80 | $0.80 | $0.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic unvested shares granted, Directors | 655,018 | 1,089,003 | 935,519 | 1,017,923 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive_StockBased_Compensat3
Incentive Stock-Based Compensation Plans - (Summary of Option and Stock Appreciation Right Activity) (Details) (Employee Stock Option and Stock Appreciation Rights, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option and Stock Appreciation Rights | ' | ' | ' |
Shares | ' | ' | ' |
Beginning Balance | 1,557,692 | 1,525,435 | 1,587,766 |
Number of shares granted | 205,661 | 174,201 | 190,539 |
Exercised | -285,917 | -117,729 | -247,838 |
Forfeited | -11,344 | -24,215 | -4,438 |
Expired | -282 | ' | -594 |
Ending Balance | 1,465,810 | 1,557,692 | 1,525,435 |
Exercisable at ending of period | 1,112,189 | 1,103,694 | 845,361 |
Weighted-Average Exercise Price | ' | ' | ' |
Beginning Balance | $31.35 | $28.60 | $26.02 |
Granted | $62.27 | $52.40 | $46.53 |
Exercised | $29.59 | $26.23 | $25.50 |
Forfeited | $49.84 | $33.64 | $29.04 |
Expired | $52.40 | ' | $37.27 |
Ending Balance | $35.89 | $31.35 | $28.60 |
Exercisable at ending of period | $28.73 | $26.27 | $26.11 |
Incentive_StockBased_Compensat4
Incentive Stock-Based Compensation Plans - (Weighted-Average Grant Date Assumptions used to Estimate Fair Value of Options and Stock Appreciation Rights Granted) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Incentive Stock-Based Compensation Plans [Abstract] | ' | ' | ' |
Option term (years) | '5 years | '5 years | '5 years 6 months |
Volatility | 38.40% | 45.40% | 39.60% |
Risk-free interest rate (zero coupon U.S. Treasury note) | 0.92% | 0.81% | 2.35% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Incentive_StockBased_Compensat5
Incentive Stock-Based Compensation Plans - (Summary of Employee Shares and Share Units Activity and Grant Date Fair Value) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shares | ' | ' | ' |
Nonvested shares beginning balance | 1,089,003 | 935,519 | 1,017,923 |
Granted | 402,730 | 675,809 | 353,950 |
Vested | -789,700 | -474,053 | -412,784 |
Forfeited | -47,015 | -48,272 | -23,570 |
Nonvested shares ending balance | 655,018 | 1,089,003 | 935,519 |
Weighted-Average Grant Price | ' | ' | ' |
Nonvested weighted-average grant price beginning balance | $45.48 | $34.44 | $27.14 |
Granted | $59.99 | $51.06 | $46.54 |
Vested | $43.10 | $33.11 | $27.42 |
Forfeited | $54.36 | $39.12 | $24.42 |
Nonvested weighted-average grant price ending balance | $56.70 | $45.48 | $34.44 |
Recovered_Sheet4
Significant Clients and Concentration Of Credit Risk (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Concentration Risk [Line Items] | ' | ' | ' |
Maximum percentage of sales from one consumer | 10.00% | 10.00% | 10.00% |
Increase Decrease In Accounts Receivable | $164.60 | $85 | $106.50 |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration percentage | 16.20% | ' | ' |
Increase Decrease In Accounts Receivable | ($24.70) | ' | ' |
Other_Expense_Net_Details
Other Expense, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component Of Other Expense Nonoperating [Line Items] | ' | ' | ' |
Net foreign currency (losses) gains recognized | $0.80 | $9 | $2.70 |
Gain (loss) on forward exchange contracts | 14.7 | -7.9 | 1.8 |
Net loss from equity investment | -5.6 | -2.1 | -2.6 |
Realized gains of deferred compensation plan | -1.4 | -0.9 | -0.6 |
Unrealized (gain) loss of deferred compensation plan | -2.7 | -1.2 | 0.7 |
Expense Due To Changes in The Value Of Invested Assets of Deferred Compensation Plan | 4.1 | 2.1 | -0.1 |
Other miscellaneous income | 4.3 | 2 | 1.8 |
Total other expense, net | -16.6 | ' | -3 |
Tradable emission allowances | ' | ' | ' |
Component Of Other Expense Nonoperating [Line Items] | ' | ' | ' |
Fair value adjustment | -0.2 | -0.2 | -3.2 |
Contingent consideration | ' | ' | ' |
Component Of Other Expense Nonoperating [Line Items] | ' | ' | ' |
Fair value adjustment | ' | ($1) | $0.90 |
Other_Expense_Net_Narrative_De
Other Expense, Net - (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Other Expense, Net [Abstract] | ' |
Non-deductible foreign exchange loss consolidated into income statement | $3.10 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Beginning balance | ($134.70) |
Other comprehensive loss before reclassifications | -18.2 |
Amounts reclassified from AOCI | 34.1 |
Net current period other comprehensive (loss) income | 15.9 |
Ending balance | -118.8 |
Foreign Currency Translation Adjustments [Member] | ' |
Beginning balance | -51.3 |
Other comprehensive loss before reclassifications | -18.2 |
Net current period other comprehensive (loss) income | -18.2 |
Ending balance | -69.5 |
Unrealized (Loss) Gain On Derivatives [Member] | ' |
Beginning balance | -0.7 |
Amounts reclassified from AOCI | 0.3 |
Net current period other comprehensive (loss) income | 0.3 |
Ending balance | -0.4 |
Pension And Other Postretirement Benefit Plans [Member] | ' |
Beginning balance | -82.7 |
Amounts reclassified from AOCI | 33.8 |
Net current period other comprehensive (loss) income | 33.8 |
Ending balance | ($48.90) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - (Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Interest expense, net | ($46.90) | ($60.20) | ($61.70) | |
Income before income taxes | 257.5 | 275.7 | 183.9 | |
Provision for income taxes | 88.2 | 92.8 | 62.9 | |
Net of tax | 169.3 | 182.9 | 121 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | |
Net of tax | -34.1 | ' | ' | |
Unrealized (Loss) Gain On Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | |
Interest expense, net | -0.4 | ' | ' | |
Provision for income taxes | 0.1 | ' | ' | |
Net of tax | -0.3 | ' | ' | |
Pension And Other Postretirement Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | |
Amortization of net actuarial loss | -8.9 | [1] | ' | ' |
Recognized net actuarial gain | -33.9 | [1] | ' | ' |
Gain from curtailment / settlement | -13 | [1] | ' | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, before Tax | 0.9 | [1] | ' | ' |
Income before income taxes | -54.9 | ' | ' | |
Provision for income taxes | 21.1 | ' | ' | |
Net of tax | ($33.80) | ' | ' | |
[1] | These items are included in the computation of net pension expense and net post-retirement benefits expense. See Note 12, Pension Plans and Note 13, Post-retirement Benefits Other than Pensions for additional information. |
Segment_Information_Narrative_
Segment Information - (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Assets Noncurrent | 472.3 | 466.9 | ' |
BRAZIL | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of sales percentage | ' | ' | 11.20% |
Assets Noncurrent | 91.9 | 93.6 | ' |
SPAIN | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets Noncurrent | 35.4 | 81.7 | ' |
Foreign | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of sales percentage | 10.00% | 10.00% | 10.00% |
Segment_Results_Details
Segment Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $827 | $633.90 | $805.30 | $766.40 | $844.40 | $594.40 | $635.80 | $661.80 | $3,032.60 | $2,736.40 | $2,311.60 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 321 | 335.9 | 258.7 |
Total long-lived assets | 472.3 | ' | ' | ' | 466.9 | ' | ' | ' | 472.3 | 466.9 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 92.3 | 85.5 | 78.9 |
Goodwill | 927.6 | ' | ' | ' | 911.3 | ' | ' | ' | 927.6 | 911.3 | 869.8 |
Assets | 3,737.80 | ' | ' | ' | 3,354 | ' | ' | ' | 3,737.80 | 3,354 | ' |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 854.1 | 828 | 664.8 |
Total long-lived assets | 177.2 | ' | ' | ' | 180.8 | ' | ' | ' | 177.2 | 180.8 | ' |
CANADA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 73.9 | 73.5 | 56.2 |
Total long-lived assets | 2.6 | ' | ' | ' | 2.5 | ' | ' | ' | 2.6 | 2.5 | ' |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 928 | 901.5 | 721 |
Total long-lived assets | 179.8 | ' | ' | ' | 183.3 | ' | ' | ' | 179.8 | 183.3 | ' |
Latin America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 428.3 | 445.7 | 409.5 |
Total long-lived assets | 94 | ' | ' | ' | 95.2 | ' | ' | ' | 94 | 95.2 | ' |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 796.6 | 680.1 | 501.6 |
Total long-lived assets | 140.2 | ' | ' | ' | 160.3 | ' | ' | ' | 140.2 | 160.3 | ' |
Asia-Pacific, Southern Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 520.8 | 422.8 | 353.1 |
Total long-lived assets | 18 | ' | ' | ' | 18 | ' | ' | ' | 18 | 18 | ' |
Middle East, Africa | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 358.9 | 286.3 | 326.4 |
Total long-lived assets | 40.3 | ' | ' | ' | 10.1 | ' | ' | ' | 40.3 | 10.1 | ' |
New Units [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,524.10 | 1,301.60 | 1,082.20 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 140.3 | 117.9 | 110.4 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 44.3 | 37.3 |
Goodwill | 488.4 | ' | ' | ' | 476.7 | ' | ' | ' | 488.4 | 476.7 | 442.6 |
Assets | 1,113.80 | ' | ' | ' | 898.8 | ' | ' | ' | 1,113.80 | 898.8 | ' |
New Units [Member] | Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,524.10 | 1,301.60 | 1,082.20 |
Aftermarket Parts And Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,508.50 | 1,434.80 | 1,229.40 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 295.7 | 323.2 | 252.7 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 47.3 | 41.2 | 41.6 |
Goodwill | 439.2 | ' | ' | ' | 434.6 | ' | ' | ' | 439.2 | 434.6 | 427.2 |
Assets | 1,305 | ' | ' | ' | 1,126.70 | ' | ' | ' | 1,305 | 1,126.70 | ' |
Aftermarket Parts And Services [Member] | Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 695.7 | 623.5 | 557.6 |
Aftermarket Parts And Services [Member] | Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 812.8 | 811.3 | 671.8 |
Unallocated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | -115 | -105.2 | -104.4 |
Assets | $1,319 | ' | ' | ' | $1,328.50 | ' | ' | ' | $1,319 | $1,328.50 | ' |
Selected_Unaudited_Quarterly_F2
Selected Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Selected Unaudited Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $827 | $633.90 | $805.30 | $766.40 | $844.40 | $594.40 | $635.80 | $661.80 | $3,032.60 | $2,736.40 | $2,311.60 |
Gross profit | 232.3 | 182.8 | 198.2 | 172 | 248.8 | 170.6 | 167.8 | 144.9 | 785.3 | 732.1 | 643.7 |
Early redemption premium on debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10.1 |
Net income attributable to Dresser-Rand | $32.80 | $49.40 | $53.30 | $32.90 | $80.20 | $41.20 | $34 | $23.60 | $168.40 | $179 | $120.80 |
Net income attributable to Dresser-Rand per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.43 | $0.65 | $0.70 | $0.43 | $1.06 | $0.55 | $0.45 | $0.31 | $2.21 | $2.37 | $1.56 |
Diluted | $0.43 | $0.64 | $0.69 | $0.43 | $1.05 | $0.54 | $0.45 | $0.31 | $2.19 | $2.35 | $1.54 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Supplemental Cash Flow Information [Abstract] | ' | ' | ' | ||
Cash paid for interest, net of capitalized interest | $54.10 | $59.10 | $61.70 | ||
Cash paid for income taxes, net of refunds | 80.8 | 56.9 | 41 | ||
Schedule of Noncash Investing and Financing Activities | ' | ' | ' | ||
Assets acquired in acquisition | ' | 55.8 | [1] | 1,018.10 | [1] |
Liabilities assumed in acquisition | ' | $2.60 | [1] | $474.90 | [1] |
[1] | See Note 3 for additional discussion of the Companybs acquisitions. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
property | |||||||||||
Number Of Pig Manure Treatment Facilities | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Change in tariff, percent | ' | ' | ' | ' | ' | ' | ' | ' | 37.00% | ' | ' |
Asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | $40 | ' | ' |
Revenues | 827 | 633.9 | 805.3 | 766.4 | 844.4 | 594.4 | 635.8 | 661.8 | 3,032.60 | 2,736.40 | 2,311.60 |
Gross profit | 232.3 | 182.8 | 198.2 | 172 | 248.8 | 170.6 | 167.8 | 144.9 | 785.3 | 732.1 | 643.7 |
Subsequent Event [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 23.7 | ' | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | $22 | ' | ' |
Recovered_Sheet5
Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for losses on receivables | ' | ' | ' | |||
Valuation Allowance [Line Items] | ' | ' | ' | |||
Beginning Balance | $9.60 | $9.30 | $11.40 | |||
Additions, Charges to costs and expenses | ' | 0.5 | 0.1 | |||
Deductions | 0.5 | [1] | 0.2 | [2] | 2.2 | [3] |
Ending Balance | 9.1 | 9.6 | 9.3 | |||
Valuation allowance for deferred tax asset | ' | ' | ' | |||
Valuation Allowance [Line Items] | ' | ' | ' | |||
Beginning Balance | 83.6 | 81.6 | 15.1 | |||
Additions, Charges to costs and expenses | 38.2 | 6.3 | 4.4 | |||
Additions, Charges to other accounts | -1.2 | [4] | -3.6 | [5] | 62.7 | [6] |
Deductions | -0.6 | [7] | 0.7 | [7] | 0.6 | [7] |
Ending Balance | $121.20 | $83.60 | $81.60 | |||
[1] | Impact of change in provision of $(0.8), foreign exchange of $0.2 and write-off of bad debts of $0.1. | |||||
[2] | Impact of write-off of bad debts of $0.2. | |||||
[3] | Impact of foreign exchange of $0.3 and write-off of bad debts of $1.9. | |||||
[4] | Impact of expired NOLbs of $(1.2). | |||||
[5] | Impact of acquisition of Guascor of $(2.5) and other expired NOLbs of $(1.1). | |||||
[6] | Impact of acquisition of Guascor of $64.5 offset by other expired NOLbs of $(1.8). | |||||
[7] | Impact of foreign exchange. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Additional Info) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance [Line Items] | ' | ' | ' |
Write-off of bad debts | $0.10 | $0.20 | $1.90 |
Impact of foreign exchange | ' | ' | 0.3 |
Guascor [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Impact of acquisition of Guascor | ' | -2.5 | 64.5 |
Impact of acquisition of Guascor, offset by other expired NOL | ($1.20) | ($1.10) | ($1.80) |