Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | drc | ||
Entity Registrant Name | Dresser-Rand Group Inc. | ||
Entity Central Index Key | 1316656 | ||
Current Fiscal Year End Date | -19 | ||
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 | 76,835,841 | ||
Entity Public Float | $4,770,553,634 |
Consolidated_Statement_Of_Inco
Consolidated Statement Of Income (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement Of Income [Abstract] | |||
Net sales of products | $2,093 | $2,219.80 | $1,925.10 |
Net sales of services | 718.7 | 812.8 | 811.3 |
Total revenues | 2,811.70 | 3,032.60 | 2,736.40 |
Cost of products sold | 1,579.50 | 1,664 | 1,429.10 |
Cost of services sold | 503.5 | 583.3 | 575.2 |
Total cost of sales | 2,083 | 2,247.30 | 2,004.30 |
Gross profit | 728.7 | 785.3 | 732.1 |
Selling and administrative expenses | 397.1 | 385.5 | 365.8 |
Research and development expenses | 27.9 | 38.8 | 30.4 |
Transaction-related expenses | 15.4 | ||
Fixed asset impairment of cogeneration facilities | 40 | ||
Income from operations | 288.3 | 321 | 335.9 |
Interest expense, net | -52 | -46.9 | -60.2 |
Other expense, net | -50.7 | -16.6 | |
Income before income taxes | 185.6 | 257.5 | 275.7 |
Provision for income taxes | 61.2 | 88.2 | 92.8 |
Net income | 124.4 | 169.3 | 182.9 |
Net income attributable to noncontrolling interest | -1.7 | -0.9 | -3.9 |
Net income attributable to Dresser-Rand | $122.70 | $168.40 | $179 |
Net income attributable to Dresser-Rand per share | |||
Basic | $1.60 | $2.21 | $2.37 |
Diluted | $1.59 | $2.19 | $2.35 |
Weighted-average shares outstanding-(in thousands ) | |||
Basic | 76,552 | 76,139 | 75,487 |
Diluted | 77,209 | 76,826 | 76,276 |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement Of Comprehensive Income [Abstract] | |||
Net income | $124.40 | $169.30 | $182.90 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | -123.1 | -18.8 | 10.4 |
Unrealized gain (loss) on derivatives - net of tax (benefit) expense of ($0.2), ($0.1) and $0.0 for 2014, 2013 and 2012, respectively | 0.3 | 0.3 | -0.1 |
Pension and other post-retirement benefit plans - net of tax expense (benefit) of $13.8, ($21.1) and $3.7 for 2014, 2013 and 2012, respectively | |||
Amortization of prior service cost and net actuarial loss included in net periodic costs | 2.3 | 5.6 | 5.7 |
Curtailment / settlement | 9.2 | ||
Benefit plan amendments | -1.8 | -0.6 | |
Net actuarial (loss) gain arising during the year | -23.4 | 19.6 | -12.3 |
Total other comprehensive (loss) income | -145.7 | 15.3 | 3.7 |
Total comprehensive (loss) income | -21.3 | 184.6 | 186.6 |
Comprehensive loss (income) attributable to noncontrolling interest | -1.8 | -0.3 | -3.5 |
Comprehensive (loss) income attributable to Dresser-Rand | ($23.10) | $184.30 | $183.10 |
Consolidated_Statement_Of_Comp1
Consolidated Statement Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement Of Comprehensive Income [Abstract] | |||
Unrealized gain on derivatives, tax | ($0.20) | ($0.10) | $0 |
Pensions and other postretirement benefit plans, tax | $13.80 | ($21.10) | $3.70 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $183.40 | $190.40 |
Restricted cash | 3.3 | 8.1 |
Accounts receivable, less allowance for losses of $8.7 at 2014 and $9.1 at 2013 | 660.7 | 727.4 |
Inventories, net | 669 | 716 |
Prepaid expenses and other | 72.5 | 68.8 |
Deferred income taxes | 66.8 | 25.2 |
Total current assets | 1,655.70 | 1,735.90 |
Property, plant and equipment, net | 450.9 | 472.3 |
Goodwill | 832.9 | 927.6 |
Intangible assets, net | 444.4 | 479 |
Deferred income taxes | 5.5 | 11.8 |
Other assets | 99.3 | 111.2 |
Total assets | 3,488.70 | 3,737.80 |
Current liabilities | ||
Accounts payable and accruals | 653.8 | 729.1 |
Customer advance payments | 183.3 | 164.5 |
Accrued income taxes payable | 26.9 | 36.1 |
Short-term borrowings and current portion of long-term debt | 30.1 | 40.1 |
Total current liabilities | 894.1 | 969.8 |
Deferred income taxes | 48.4 | 55.4 |
Postemployment and other employee benefit liabilities | 97.5 | 74 |
Long-term debt | 1,053.60 | 1,246.90 |
Other noncurrent liabilities | 88.9 | 90.3 |
Total liabilities | 2,182.50 | 2,436.40 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 250,000,000 shares authorized; and 76,666,104 and 76,293,924 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 0.8 | 0.8 |
Additional paid-in capital | 188.5 | 162.4 |
Retained earnings | 1,375.70 | 1,253 |
Accumulated other comprehensive loss | -264.6 | -118.8 |
Total Dresser-Rand stockholders' equity | 1,300.40 | 1,297.40 |
Noncontrolling interest | 5.8 | 4 |
Total stockholders' equity | 1,306.20 | 1,301.40 |
Total liabilities and stockholders' equity | $3,488.70 | $3,737.80 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for losses | $8.70 | $9.10 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 76,666,104 | 76,293,924 |
Common stock, shares outstanding | 76,666,104 | 76,293,924 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $124.40 | $169.30 | $182.90 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 92.3 | 92.3 | 85.5 |
Deferred income taxes | -36.5 | 3.8 | 8.6 |
Stock-based compensation | 25.6 | 25.9 | 28.4 |
Loss on re-measurement of previously held equity interest | 18.3 | ||
Gain on fair value of assets acquired in excess of fair value of consideration | -6.6 | ||
Excess tax benefits from stock-based compensation | -2.4 | -6.8 | -4.1 |
Amortization of debt financing costs | 2.2 | 3.4 | 3.9 |
Provision for losses on inventory | 5.6 | 2.2 | 3.1 |
Fixed asset impairment of cogeneration facilities | 40 | ||
(Gain) loss on disposal of assets | -1.3 | 0.6 | 3.6 |
Loss from equity investments | 4.2 | 5.6 | 2.1 |
Changes in working capital and other, net of acquisitions | |||
Accounts receivable, net | 33.7 | -164.6 | -85 |
Inventories | 8.5 | -162.3 | -140.9 |
Prepaid expenses and other | -7.8 | -5.2 | 0.4 |
Accounts payable and accruals | -41.3 | 116.4 | -7.8 |
Customer advances | 31.4 | -123 | 3.8 |
Taxes payable | -2.7 | -16 | 21.5 |
Pension, and other post-retirement benefits | -10.5 | -12.8 | 16.4 |
Other | 17.7 | -35.6 | -29.6 |
Net cash provided by (used in) operating activities | 254.8 | -66.8 | 92.8 |
Cash flows from investing activities | |||
Capital expenditures | -58 | -82.6 | -73.3 |
Loans made to investees and others | -20.7 | ||
Proceeds from sales of assets | 4.9 | 2.4 | 0.9 |
Acquisitions, net of cash acquired | -1 | -48.8 | |
Other investments | -3.5 | -13.4 | -15.3 |
Decrease in restricted cash balances | 4.3 | 10.1 | 12.4 |
Net cash used in investing activities | -74 | -83.5 | -124.1 |
Cash flows from financing activities | |||
Proceeds from exercise of stock options | 4.4 | 4.1 | 2.8 |
Proceeds from borrowings | 1,016 | 2,303.10 | 717.9 |
Repayments of borrowings | -1,192.20 | -2,075.10 | -697.1 |
Excess tax benefits from stock-based compensation | 2.4 | 6.8 | 4.1 |
Repurchase of common stock | -5.6 | -1.5 | |
Payments for debt financing costs | -0.3 | -5.1 | -0.5 |
Net cash (used in) provided by financing activities | -175.3 | 232.3 | 27.2 |
Effect of exchange rate changes on cash and cash equivalents | -12.5 | -14.4 | -1.3 |
Net (decrease) increase in cash and cash equivalents | -7 | 67.6 | -5.4 |
Cash and cash equivalents, beginning of period | 190.4 | 122.8 | 128.2 |
Cash and cash equivalents, end of period | $183.40 | $190.40 | $122.80 |
Consolidated_Statement_Of_Chan
Consolidated Statement Of Changes In Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-Controlling Interest [Member] | Total |
In Millions, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $0.80 | $105.20 | $905.60 | ($138.80) | $0.20 | $873 |
Stock-based compensation | 35.3 | 35.3 | ||||
Net income | 179 | 3.9 | 182.9 | |||
Other comprehensive (loss) income | ||||||
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 | 5.7 | 5.7 | ||||
Net actuarial (loss) gain 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 (loss) income | ||||||
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 | 5.6 | 5.6 | ||||
Curtailment / settlement | 9.2 | 9.2 | ||||
Benefit plan amendments | -0.6 | -0.6 | ||||
Net actuarial (loss) gain arising during the year | 19.6 | 19.6 | ||||
Ending Balance at Dec. 31, 2013 | 0.8 | 162.4 | 1,253 | -118.8 | 4 | 1,301.40 |
Stock-based compensation | 26.1 | 26.1 | ||||
Net income | 122.7 | 1.7 | 124.4 | |||
Other comprehensive (loss) income | ||||||
Foreign currency translation adjustments | -123.2 | 0.1 | -123.1 | |||
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 | 2.3 | 2.3 | ||||
Benefit plan amendments | -1.8 | -1.8 | ||||
Net actuarial (loss) gain arising during the year | -23.4 | -23.4 | ||||
Ending Balance at Dec. 31, 2014 | $0.80 | $188.50 | $1,375.70 | ($264.60) | $5.80 | $1,306.20 |
Consolidated_Statement_Of_Chan1
Consolidated Statement Of Changes In Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Stockholders Equity [Abstract] | |||
Unrealized gain on derivatives, tax | ($0.20) | ($0.10) | $0 |
Pensions and other postretirement benefit plans, tax | $13.80 | ($21.10) | $3.70 |
Business_Activities
Business Activities | 12 Months Ended |
Dec. 31, 2014 | |
Business Activities [Abstract] | |
Business Activities | 1.Business Activities |
Dresser-Rand Group Inc., a company incorporated in the State of Delaware (together with its subsidiaries, the “Company” or “Dresser-Rand”), 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, diesel, gas and dual fuel engines and associated control panels. | |
On September 21, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Siemens Energy, Inc. (“Siemens”) whereby Siemens will acquire the Company (the “Merger”). The Merger received stockholder approval on November 20, 2014. The completion of the Merger is subject to satisfaction or waiver of certain closing conditions including, among others, customary regulatory approvals. | |
At the time the Merger becomes effective, each outstanding share of Dresser-Rand common stock (excluding any shares held by Siemens, its subsidiaries, Dresser-Rand and dissenting shares in accordance with Delaware law), will be cancelled and converted into the right to receive cash in the amount of (i) $83.00 per share plus (ii) $0.55 per share on the first of each month until the date of closing beginning on March 1, 2015. | |
In connection with the acquisition related activities, the Company incurred $15.4 of legal, accounting, fiscal and investment bank transaction related expenses for the year ended December 31, 2014. | |
On September 21, 2014, the board of directors of the Company also adopted a limited duration Shareholder Rights Plan (the “Plan”) and created 1,000,000 shares of preferred stock designated as Series A Junior Participating Preferred Stock, with a par value of $0.01 per share. Pursuant to the Plan, the board of directors declared a dividend of one preferred stock purchase right (each a “Right” and collectively, the “Rights”) on each outstanding share of the Company’s common stock as of the close of business on October 2, 2014. Each Right, once exercisable, will entitle shareholders to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock at a price of $300 per Right, subject to adjustment. | |
The Rights are exercisable ten days following a public announcement that certain persons or groups (other than Siemens or any of its affiliates or associates acting pursuant to the Merger Agreement) have acquired beneficial ownership of 10.0% or more of the outstanding shares of the Company’s common stock or ten business days after the commencement of an offer, that if completed, would result in certain persons or groups having beneficial ownership of 10.0% or more of the outstanding shares of the Company’s common stock (a “flip-in event”). The Plan provides that the ownership of shareholders that beneficially own 10.0% or more of the Company’s common stock on the date of adoption of the Plan will be grandfathered, but the Rights would become exercisable if at any time any such shareholder increases its ownership percentage by 1.0% or more. The Rights become exercisable for shares of the Company’s common stock at 50.0% of the then-market price of the common stock. Derivative interests in the Company’s common stock, such as swap arrangements, regardless of whether such arrangements carry with them the right to control voting or disposition of the underlying securities, are also considered beneficial ownership of the underlying common stock for purposes of the Plan. | |
If a 10.0% or more shareholder of the Company acquires Dresser-Rand, by merger or otherwise, in a transaction where the Company does not survive, the Company’s common stock is changed or exchanged or 50.0% or more of the Company’s assets, cash flow or earnings power is sold or transferred (a “flip-over event”), the Rights become exercisable for shares of the common stock of the company acquiring Dresser-Rand at 50.0% of the then-market price for Dresser-Rand common stock. | |
Any Rights that are or were beneficially owned by a person who has acquired 10.0% or more of the outstanding shares of the Company’s common stock and who engages in certain transactions or realizes the benefits of certain transactions with the Company will become null and void. If an offer to acquire all of the Company’s outstanding shares of common stock is determined to be fair by the board of directors, the transaction will not trigger a flip-in event or a flip-over event. The Company may also redeem the Rights at $0.01 per Right at any time prior to a flip-in event. These Rights are set to expire no later than September 22, 2015. | |
With respect to the audited consolidated financial statements, we have evaluated subsequent events through February 27, 2015, the date the audited consolidated financial statements were issued. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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 makes informed judgments and estimates that affect the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Management evaluates its estimates and related assumptions regularly, including those related to fair values, allowance for losses on receivables, depreciation and amortization, inventory adjustments related to lower of cost or market, the carrying value and estimated useful lives of long-lived assets, valuation of assets including goodwill and other intangible assets, product warranties, sales allowances, taxes, pensions, postemployment benefits, stock-based compensation, stage of completion and ultimate profitability for certain long-term revenue contracts accounted for under the percentage of completion method, contract losses, penalties, environmental contingencies, product liability, self-insurance programs and other contingencies (including purchase price contingencies). Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. | |||||||||
Fair Value Measurements | |||||||||
Fair value, as defined in U.S. GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). U.S. GAAP classifies the inputs used to measure fair value into the following hierarchy: | |||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | ||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | ||||||||
Level 3 | Unobservable inputs for the asset or liability | ||||||||
Recurring Fair Value Measurements — Fair values of the Company’s cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and customer advance payments approximate their carrying values due to the short-term nature of these instruments. The Company’s financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||
Nonrecurring Fair Value Measurements — Fair value measurements were applied with respect to the Company’s nonfinancial assets and liabilities measured on a nonrecurring basis, which consists primarily of intangible assets, other long-lived assets and other assets acquired and liabilities assumed, including contingent consideration, related to purchased businesses in business combinations and impairments. | |||||||||
Fair Value of Financial Instruments — Recurring fair value measurement of financial instruments consist principally of foreign currency derivatives, an interest rate swap 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 | Level 3 inputs are more fully described in Note 3. | |||||
Impairment of long-lived assets | Note 7 | Level 3 | Not applicable | Level 3 inputs are more fully described in Note 7. | |||||
Long-term debt (disclosure only) | Note 11 | Level 2 | Quoted prices in markets that are not active | Not applicable | |||||
Financial derivatives | Note 14 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | |||||
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 $3.3 and $8.1 at December 31, 2014 and 2013, 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, 2014, 2013 and 2012, respectively. | |||||||||
Capitalized Software | |||||||||
The Company capitalizes computer software for internal use following the guidelines established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. The amounts capitalized were not material for the years ended December 31, 2014, 2013 and 2012, 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 and 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 referenced above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. | |||||||||
In 2014, the Company chose not to perform a qualitative analysis, but rather utilized a quantitative impairment test for both its reporting units. 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. | |||||||||
In the quantitative test, the Company determines the fair value of its reporting units by weighting the results from the income approach (discounted cash flow method) and the market approach (guideline public company method). 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, future market conditions and comparable multiples from publicly traded companies in our industry, 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). | |||||||||
Under the guideline public company method, the Company determines fair value based on earnings multiples from publicly traded companies within our industry with economic prospects similar to each reporting unit. The selected multiples consider each reporting unit’s relative growth, profitability, size and risk relative to the selected guideline public companies. | |||||||||
The following table presents the significant estimates used by management in determining the fair value of the Company’s reporting units at August 31, 2014: | |||||||||
Years of cash flows before terminal value | 5 | ||||||||
Terminal growth rate | 2.4% | ||||||||
Weighted average cost of capital | 9.5% | ||||||||
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 reporting units, 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. | |||||||||
As a result of the decline in oil prices during the fourth quarter of 2014, the Company evaluated the likelihood that goodwill had fallen below the carrying value of any of its reporting units. Due to the offer price in the proposed merger with Siemens, described further in Note 1, the Company believes it is more-likely-than-not that the fair value of the reporting units is greater than their carrying value. | |||||||||
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 unrecognized tax positions 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. 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, where multiple products and/or services are involved. Products involved in multiple-element arrangements may include centrifugal compressors, gas turbines, power turbines, power recovery expanders, reciprocating compressors, steam turbines and engines. Our typical arrangement includes one of our classes of compressors and a driver (e.g., a motor, turbine or an engine). In addition to our products, we perform installation and commissioning, training, and other services, and we purchase any number of standard or engineered items from third parties (“buyouts”) that support the application in which our equipment is being used. Generally, buyouts, installation and commissioning, training and each of our products listed above are considered separate deliverables for a number of reasons, including the following: | |||||||||
· | Clients would purchase each of those products or services apart from other products or services; | ||||||||
· | The products and services being provided are at the request of the client and for the client’s sole benefit, apart from any other product or service in the transaction; | ||||||||
· | The other deliverables can be performed without the service or product in question being performed or delivered; | ||||||||
· | Contractual payments are typically tied to the delivery or performance of the specific product or service; | ||||||||
· | The skills or equipment required to perform the services are readily available in the marketplace; and | ||||||||
· | Clients attribute significant value to each product or service. | ||||||||
These contracts generally can take fifteen months or more to complete, but occasionally may take longer. The timing between the first deliverable and the last deliverable is generally three to twelve months, and services are typically delivered last. | |||||||||
Because the aforementioned separate deliverables have value to the client on a stand-alone basis, they are typically considered separate units of accounting. The entire contract value is allocated to each unit of accounting. Revenue allocated to products is recognized upon delivery, while revenue allocated to services is recognized when the service is performed. 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 (“VSOE”). | ||||||||
· | Third-party evidence (“TPE”), if vendor-specific objective evidence is not available. | ||||||||
· | Estimated selling price (“ESP”), 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. | ||||||||
In substantially all of our multi-element arrangements, we use ESP to allocate arrangement consideration. We determine ESP based on our normal pricing and discounting practices. In determining ESP, we apply significant judgment as we weigh a variety of factors, based on the facts of the arrangement. We typically arrive at an ESP by considering client and entity-specific factors such as existing pricing, price discounts, geographies, competition, internal costs and profitability objectives. | |||||||||
Our sales arrangements do not include a general right of return of the delivered unit(s). In certain cases, the cancellation terms of a contract provide us with the opportunity to bill for certain incurred costs and penalties. | |||||||||
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. | |||||||||
It is uncommon for the Company to have material contract scope adjustments that impact the selling price for specific units of accounting that would result in material changes in the allocation of the selling price. In the event of such an adjustment, we apply the change in the allocation of the selling price to the units of accounting that are not yet delivered. As our business and offerings evolve over time, our pricing practices may be required to be modified accordingly, which could result in changes in selling prices in subsequent periods. Historically, there have been no material impacts, nor do we currently expect material impacts in the next twelve months, on our revenue recognition due to changes in our VSOE, TPE or ESP. | |||||||||
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 FASB ASC 605-35 — Provision for Losses on 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 3.5%, 6.5% and 0.8% of consolidated revenues for the years ended December 31, 2014, 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. 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. 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. | |||||||||
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 a sale or transfer which results in a complete or substantially complete liquidation of the foreign entity. 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 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 statement of income 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 statement of income 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, 2014 and 2013, were not designated as hedges for accounting purposes. | |||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation cost for stock-based compensation awards in accordance with FASB 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. | |||||||||
New Accounting Standards | |||||||||
Effective January 1, 2014, the Company adopted FASB Accounting Standards Update (“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 adoption of ASU 2013-04 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
Effective January 1, 2014, the Company adopted FASB 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 — Overall, and Subtopic 830-30, Foreign Currency Matters — Translation of Financial Statements, 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 adoption of ASU 2013-05 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
Effective January 1, 2014, the Company adopted FASB 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 the settlement of the deferred tax asset 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 adoption of ASU 2013-11 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, disposals representing a strategic shift in operations should be presented as discontinued operations. Additionally, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. The amendments in ASU 2014-08 are effective prospectively for all disposals (or classifications as held for sale) of components of an entity, and for all businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early application not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The Company is currently evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in ASU 2014-10 remove an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity. The revised consolidation standards are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted. Companies may use either a prospective or a retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). The amendments in ASU 2015-01eliminate from U.S. GAAP the concept of extraordinary items. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Companies may use either a prospective or a retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The adoption of ASU 2015-01 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). The amendments in ASU 2015-02 change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this ASU using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The adoption of ASU 2015-02 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 2014 presentation, herein. | |||||||||
Acquisitions_And_Other_Investm
Acquisitions And Other Investments | 12 Months Ended | ||
Dec. 31, 2014 | |||
Acquisitions And Other Investments [Abstract] | |||
Acquisitions And Other Investments | 3. Acquisitions and Other Investments | ||
Acquisitions | |||
On August 8, 2014, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) to acquire financial control of Ramgen Power Systems, LLC (“Ramgen”), an entity in which the Company held a 42.2% equity interest immediately preceding the acquisition date. The Asset Purchase Agreement superseded all prior agreements between the Company and Ramgen. Ramgen was developing compressor technology that applies proven supersonic aircraft technology to ground-based air and gas compressors. | |||
The Company previously acquired its equity interest in Ramgen through various investments totaling $34.4 from 2008 to 2013. Pursuant to the terms of the Asset Purchase Agreement, the Company acquired the remaining 57.8% of Ramgen’s assets in a business combination, in exchange for cash of approximately $1.0 and the rights to royalty payments from certain future sales made by the Company (“contingent consideration”). The acquisition gives the Company sole ownership of the supersonic compressor technology and, therefore, control over the continued development and commercialization of the supersonic compressor program. | |||
The purchase of Ramgen resulted in a pre-tax loss to the Company of $11.7, which consisted of two components: (1) a loss of $18.3 on the re-measurement of the Company’s previously held interest, and (2) a gain of $6.6 related to the fair value of the assets acquired in excess of the fair value of the consideration. | |||
Because the business combination was achieved in stages, the Company re-measured its previously held equity interest in Ramgen at its acquisition-date fair value and recognized the resulting loss of $18.3 in other expense, net for the year ended December 31, 2014, in the consolidated statement of income. The acquisition-date fair value of the previous equity interest of $10.3 was estimated using the cost aggregation approach based upon the underlying fair value of the assets of Ramgen. Since Ramgen was a private company, the fair value measurement was based on significant inputs that are not observable in the market and represent a Level 3 measurement as defined in ASC 820, Fair Value Measurement (“ASC 820”). The cost approach was applied to the property, plant and equipment based on the type of use, condition, square footage and other similar factors to determine the fair value of assets acquired. The income approach was applied to the intangible assets using projected results, a market-based discount rate of 25.0% and a market-based royalty rate of 5.0%. Acquired intangible assets consist of in-process research and development. | |||
The Company believes that there are various factors that resulted in a negotiated purchase price for which the fair value of identifiable assets acquired exceeded the fair value of the consideration transferred. Prior to the acquisition, Ramgen did not have a commercial function, and Dresser-Rand has a history of bringing new products to market. There is considerable interest in the product as the Company has experienced significant inquiry volume since 2012. In parallel with its efforts to gain a significant understanding of the technology, the Company continued to provide funding to Ramgen. Ramgen would have incurred significant cost and delays in order to identify and engage another partner, arrange new funding, and commercialize the product. Finally, there were certain protective provisions in the joint venture agreements which were negotiated in good faith, limiting the parties’ ability to sell shares, subcontract rights, or sell the technology without the other party’s consent. | |||
The recorded amounts of the net assets acquired are as follows: | |||
8-Aug-14 | |||
Property, plant and equipment | $ | 10.0 | |
Intangible assets | 14.4 | ||
Deferred tax liabilities, net | -3.9 | ||
Net assets acquired | 20.5 | ||
Fair value of previous equity interest | -10.3 | ||
Fair value of consideration: | |||
Cash | -1 | ||
Contingent consideration (non-cash) | -2.6 | ||
Value of net assets acquired in excess of fair value of consideration | $ | 6.6 | |
Acquired intangible assets consist of in-process research and development. | |||
The contingent consideration arrangement requires the Company to pay royalties to Ramgen based on future sales related to the purchased products and technology for fifteen years upon commercialization. The maximum amount payable shall not exceed $44.5. The fair value of the contingent consideration was estimated using a discounted cash flow model based on projected sales related to the purchased products and technology. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The income approach was applied to the contingent consideration using projected results, an estimated discount rate of 25.0% and contractually negotiated royalty rates of 1.0% to 2.0%. | |||
Consequently, the Company reassessed the recognition and measurement of identifiable assets acquired in the Ramgen acquisition and concluded that all acquired assets were recognized and that the valuation procedures and resulting measures were appropriate. As a result, the Company recorded the fair value of the assets acquired in excess of the fair value of the consideration paid as a gain of $6.6 in other expense, net in the consolidated statement of income. | |||
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. | |||
Goodwill from the Synchrony acquisition principally resulted from expected synergies from combining the operations of the acquired business and the Company. The amortization of goodwill related to the acquisition of Synchrony is not deductible for income tax purposes. | |||
The acquisition price was allocated to the fair values of assets acquired and liabilities assumed as follows: | |||
Synchrony | |||
2012 | |||
Cash and cash equivalents | $ | 0.1 | |
Accounts receivable | 2.1 | ||
Inventory | 1.5 | ||
Prepaid expenses | 0.1 | ||
Total current assets | 3.8 | ||
Property, plant and equipment | 2.2 | ||
Amortizable intangible assets | 22.9 | ||
Goodwill | 26.3 | ||
Other assets | 0.6 | ||
Total assets acquired | 55.8 | ||
Accounts payable and accruals | 2.6 | ||
Total liabilities assumed | 2.6 | ||
Purchase price | 53.2 | ||
Fair value of contingent consideration (non-cash) | -4.3 | ||
Cash acquired | -0.1 | ||
Cash paid | $ | 48.8 | |
Acquired intangible assets consist principally of existing technology, customer relationships, trade names and non-compete agreements. | |||
Pro forma financial information for the Ramgen and Synchrony acquisitions has not been presented because the effect on our financial results was not considered material. The financial results of Ramgen have been included in our consolidated financial results from the date of acquisition. Since the activities of Ramgen are principally research and development activities, the financial results of Ramgen have remained unallocated and have not been incorporated into the Company’s existing new units and aftermarket parts and services segments. 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 expects to 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, subject to the project reaching full financing. Although the project is not yet fully financed, management believes that the ability to finance the project will not have a material adverse effect on the Company’s financial condition. As of December, 31, 2014, the Company had invested a total of $5.0 for a 5.7% ownership interest in Bethel. The remaining 94.3% 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. On February 14, 2014, the Company entered into a term loan agreement with Bethel to help fund the construction of the CAES facility. The Company may loan Bethel an aggregate principal amount of up to $25.0, with interest rates ranging from 8.0% to 16.0% per annum. Loans made under the arrangement mature no later than eight years from the date of issuance. As of December 31, 2014, the outstanding balance of the Bethel loan receivable was $19.8, and is included in other noncurrent assets on the consolidated balance sheet. The Company’s maximum exposure to loss on its investment in Bethel is limited to amounts invested (including amounts loaned) plus any amounts the Company may choose to invest in the future. In determining whether the Company should consolidate Bethel, the Company considered that its board participation, ownership interest and loan 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 $4.8 at December 31, 2014. The Company recognized revenues from APEX of $22.4 and $12.6 for the years ended December 31, 2014 and 2013, respectively. | |||
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 using a proprietary supercritical carbon dioxide process technology. 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 become non-exclusive. On March 26, 2014, the Company entered into an agreement for exclusive license rights to certain of Echogen’s intellectual property in exchange for $2.5 of cash and the relief of the Company’s obligation to provide certain equipment which was required under the original agreement. These exclusive license rights are represented by the remaining shares of Echogen held by the Company, which will be exchanged for an exclusive license if Echogen’s intellectual property is proven. Additionally, the Company matched other funding of $1.0 during the three months ended September 30, 2014. As of December 31, 2014, the Company had invested a total of $26.5 for a 33.9% noncontrolling interest in Echogen. The Company’s maximum exposure to loss on its investment in Echogen is limited to amounts invested plus any amounts the Company may choose to invest in the future, if any. In determining whether the Company should consolidate Echogen, the Company considered that its board participation and ownership interest 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 $14.2 at December 31, 2014. | |||
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 was formed to execute manufacturing, repair, and other services, and to provide 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 determined that its ownership, board participation and other related contractual rights 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. | |||
At December 31, 2014, D-R Arabia has total assets of approximately $56.5 consisting principally of property, plant and equipment, and total liabilities of approximately $84.8, consisting principally of intercompany loans. The assets have been classified accordingly in the Company’s consolidated balance sheet, and the loans have been eliminated in consolidation. Both parties to the joint venture had signed a resolution committing to provide financial support to D-R Arabia, as needed, to meet the Company’s obligations as they became due through 2014. | |||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to Dresser-Rand | $ | 122.7 | $ | 168.4 | $ | 179.0 | ||||
Weighted-average common shares outstanding: | ||||||||||
(In thousands) | ||||||||||
Basic | 76,552 | 76,139 | 75,487 | |||||||
Dilutive effect of stock-based compensation awards | 657 | 687 | 789 | |||||||
Diluted | 77,209 | 76,826 | 76,276 | |||||||
Net income per share: | ||||||||||
Basic | $ | 1.60 | $ | 2.21 | $ | 2.37 | ||||
Diluted | $ | 1.59 | $ | 2.19 | $ | 2.35 | ||||
Costs_And_Estimated_Earnings_O
Costs And Estimated Earnings On Uncompleted Contracts | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Costs And Estimated Earnings 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, | |||||||
2014 | 2013 | ||||||
Costs incurred on uncompleted contracts | $ | 276.8 | $ | 195.5 | |||
Estimated earnings | 70.4 | 52.4 | |||||
347.2 | 247.9 | ||||||
Less: billings to date | -347.8 | -162.7 | |||||
$ | -0.6 | $ | 85.2 | ||||
Costs and estimated earnings in excess of billings | $ | 18.4 | $ | 98.1 | |||
Billings in excess of costs and estimated earnings | -19 | -12.9 | |||||
$ | -0.6 | $ | 85.2 | ||||
Inventories_Net
Inventories, Net | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventory, Net [Abstract] | |||||||
Inventories, net | 6. Inventories, net | ||||||
Inventories were as follows: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Raw materials | $ | 92.1 | $ | 71.0 | |||
Finished parts | 284.9 | 262.4 | |||||
Work-in-process | 744.8 | 845.9 | |||||
1,121.8 | 1,179.3 | ||||||
Less: progress payments from clients | -452.8 | -463.3 | |||||
Inventories, net | $ | 669.0 | $ | 716.0 | |||
Finished parts may be used in production or sold to customers. Progress payments represent payments from clients based on milestone completion schedules or advance billing terms. 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 $96.0 and $129.0 at December 31, 2014 and 2013, respectively. The total allowance for obsolescence for slow-moving inventory for all categories of inventory was $38.4 and $30.7 at December 31, 2014 and 2013, respectively. | |||||||
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant And Equipment [Abstract] | |||||||
Property, Plant And Equipment | 7. Property, plant and equipment | ||||||
Property, plant and equipment were as follows: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Cost: | |||||||
Land | $ | 28.9 | $ | 33.1 | |||
Buildings and improvements | 248.8 | 261.4 | |||||
Machinery and equipment | 509.0 | 479.0 | |||||
786.7 | 773.5 | ||||||
Less: accumulated depreciation | -335.8 | -301.2 | |||||
Property, plant and equipment, net | $ | 450.9 | $ | 472.3 | |||
Depreciation expense was $59.2, $63.4 and $56.1 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
Impairment of Spanish Cogeneration Facilities | |||||||
The Company has whole or majority ownership of six cogeneration facilities in Spain. The Spanish government published a ministerial order on June 20, 2014, that reflected a reduction in existing tariffs of approximately 38%, which was retroactive to July 2013. | |||||||
The enacted order was issued in draft form in February 2014 and is an implementation regulation of a law that was passed in 2013. The 2013 law did not have sufficient specificity to reasonably estimate the change in the tariff without the further order, but did provide that the existing tariffs would be paid on a provisional basis until the order was issued. Before the initial draft was issued, the Company was not able to ascertain the changes to the tariffs, and therefore did not believe that assets would be impaired. Once the initial draft was issued, the Company determined that operating the cogeneration facilities would not be economical under the reduced tariff level and decided to suspend operations at the facilities. Because the initial draft related to the 2013 law, the Company recorded the resulting impairment charge of $40.0 in the three months ended December 31, 2013. The impairment charge solely impacted the aftermarket parts and services segment. | |||||||
The impaired assets included land, power generation equipment, cogeneration plant equipment and structures. The land was valued using the market approach and the machinery and equipment was valued using the cost approach. The income approach was considered and applied to the total operations, but the income approach was not applied to the individual assets because these assets contribute to earnings jointly with many other economic factors. No value was placed on the structures because it was determined that buildings would not be necessary for the highest and best use of the land. | |||||||
The market approach was applied to the land based on discussions with local brokers considering the land’s size, shape, zoning, location, and other similar factors. This methodology was used because comparable land transactions and comparable current listings could not be located. | |||||||
The current replacement cost of a typical similar cogeneration facility was the basis used to estimate the replacement cost of the machinery and equipment. Recoverability adjustments were applied to the current replacement cost based upon production hours since the last overhaul to reduce the estimated fair value accordingly. | |||||||
The Company has initiated the liquidation process for all six of the cogeneration facilities. The liquidation of all six facilities is subject to final approval by each of the legal entities’ boards of directors as well as the Spanish government, which is expected to occur in the three months ended March 31, 2015. Because the Company continues to maintain financial control over these legal entities and the liquidation process is still subject to board and governmental approval, the balance sheets and the results of operations of the cogeneration facilities have been included in the consolidated continuing operations of the Company for all periods presented. | |||||||
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. | |||||||
We are legally obligated to decommission certain of our cogeneration sites in Brazil and Spain upon site exit. The Company has not recorded any conditional asset retirement obligations for its cogeneration facilities in Brazil 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. The Company believes any obligations arising from decommissioning activities in Brazil are immaterial to the financial statements. In connection with suspension of certain of its cogeneration facilities in Spain, the legal obligation to decommission became reasonably estimable, and the Company recorded a conditional asset retirement obligation related to its Spanish cogeneration facilities in 2014. The changes in the Company’s asset retirement obligations were as follows: | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Beginning balance | $ | - | $ | - | |||
Provisions | 4.6 | - | |||||
Adjustments | -1.1 | - | |||||
Effects of exchange rate changes | -0.6 | - | |||||
Ending balance | $ | 2.9 | $ | - | |||
Intangible_Assets_And_Goodwill
Intangible Assets And Goodwill | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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-14 | 31-Dec-13 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 116.5 | $ | 27.5 | 36 years | $ | 120.0 | $ | 24.2 | ||||||
Customer relationships | 317.4 | 91.0 | 32 years | 333.2 | 79.4 | ||||||||||
Non-compete agreements | 4.8 | 4.8 | 3 years | 5.5 | 5.0 | ||||||||||
Existing technology | 171.7 | 64.6 | 23 years | 173.3 | 55.6 | ||||||||||
Contracts and purchase agreements | 9.1 | 1.6 | 11 years | 10.2 | 1.4 | ||||||||||
Software | 27.3 | 27.3 | 10 years | 28.7 | 26.3 | ||||||||||
In-process research and development | 14.4 | - | (a) | - | - | ||||||||||
Total amortizable intangible assets | $ | 661.2 | $ | 216.8 | $ | 670.9 | $ | 191.9 | |||||||
(a)Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. | |||||||||||||||
Intangible asset amortization expense was $33.1, $28.9 and $29.4 for the years ended December 31, 2014, 2013 and 2012, respectively. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: $30.6 in 2015, $30.0 in 2016, $29.8 in 2017, $29.4 in 2018 and $29.1 in 2019. | |||||||||||||||
In-process research and development was acquired in the Ramgen acquisition (see Note 3). Upon completion of the associated research and development efforts, in-process research and development is reclassified to existing technology and amortized based upon the Company’s estimate of its useful life at that time. | |||||||||||||||
The following table represents the changes in goodwill in total and by segment (see Note 21 for additional segment information): | |||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
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 | ||||||||||||
Foreign currency adjustments | -54.2 | -40.5 | -94.7 | ||||||||||||
Balance, December 31, 2014 | $ | 434.2 | $ | 398.7 | $ | 832.9 | |||||||||
Accounts_Payable_And_Accruals
Accounts Payable And Accruals | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounts Payable and Accruals [Abstract] | |||||||
Accounts Payable and Accruals | 9.Accounts Payable and Accruals | ||||||
Accounts payable and accruals were as follows: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Accounts payable | $ | 344.1 | $ | 404.5 | |||
Accruals: | |||||||
Payroll and benefits | 72.2 | 67.7 | |||||
Taxes other than income | 41.7 | 49.4 | |||||
Forward exchange contracts | 33.2 | 16.3 | |||||
Refundable payments related to cogeneration facilities | 28.5 | 22.3 | |||||
Third-party commissions | 20.9 | 21.4 | |||||
Warranties | 19.6 | 21.4 | |||||
Billings in excess of costs and estimated earnings | 19.0 | 12.9 | |||||
Interest | 10.9 | 11.8 | |||||
Insurance and claims | 7.8 | 7.2 | |||||
Legal, audit and consulting | 6.9 | 7.6 | |||||
Pension and post-retirement benefits | 4.6 | 4.5 | |||||
Major inventory purchases | - | 27.7 | |||||
Other | 44.4 | 54.4 | |||||
Total accounts payable and accruals | $ | 653.8 | $ | 729.1 | |||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
Income Taxes | 10.Income taxes | ||||||||||
Income before income taxes was generated within the following jurisdictions: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | $ | 54.1 | $ | 98.7 | $ | 92.5 | |||||
Foreign | 131.5 | 158.8 | 183.2 | ||||||||
Total | $ | 185.6 | $ | 257.5 | $ | 275.7 | |||||
The provision for income taxes was as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current tax expense | |||||||||||
United States | $ | 26.5 | $ | 10.6 | $ | 30.7 | |||||
Foreign | 71.2 | 73.8 | 53.5 | ||||||||
Total current | 97.7 | 84.4 | 84.2 | ||||||||
Deferred tax (benefit) expense | |||||||||||
United States | -30.4 | 10.7 | 9.0 | ||||||||
Foreign | -6.1 | -6.9 | -0.4 | ||||||||
Total deferred | -36.5 | 3.8 | 8.6 | ||||||||
Total provision for income taxes | $ | 61.2 | $ | 88.2 | $ | 92.8 | |||||
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, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
(Decrease) increase in rates resulting from: | |||||||||||
Foreign operations, including impact of foreign tax credits | -20.3 | -12.6 | -4.2 | ||||||||
State and local income taxes, net of U.S. tax | 0.9 | 1.2 | 1.1 | ||||||||
Valuation allowances | 17.0 | 9.1 | 1.9 | ||||||||
Spanish tariff regulations valuation allowance | 2.0 | 5.0 | - | ||||||||
Export / manufacturing deductions | -0.8 | -0.8 | -0.9 | ||||||||
Qualifying advanced energy credit | - | - | -0.3 | ||||||||
Research and experimentation credit | -0.6 | -2.6 | -0.2 | ||||||||
Other | -0.2 | -0.1 | 1.3 | ||||||||
Effective tax rate | 33.0 | % | 34.2 | % | 33.7 | % | |||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 18.7 | $ | 14.3 | $ | 13.8 | |||||
Increases based on tax positions related to current year | 3.2 | 3.5 | 0.8 | ||||||||
(Decreases) increases based on tax positions related to prior years | -0.8 | 2.1 | 1.3 | ||||||||
Settlements | - | -1.2 | -1.6 | ||||||||
Lapse in statute of limitations | -1.1 | -0.5 | -0.2 | ||||||||
Foreign currency adjustments | -1.4 | 0.5 | 0.2 | ||||||||
Ending balance | $ | 18.6 | $ | 18.7 | $ | 14.3 | |||||
As of December 31, 2014, 2013 and 2012, the total liability for unrecognized tax benefits was $18.6, $18.7 and $14.3, respectively, all of which would affect the Company’s effective tax rate if recognized. For the year ended December 31, 2014, the Company recognized $1.4 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 2015. The Company’s policy is to recognize accrued interest on unrecognized tax positions 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 | 2009 - 2014 | ||||||||||
Canada | 2009 - 2014 | ||||||||||
France | 2013 - 2014 | ||||||||||
Germany | 2010 - 2014 | ||||||||||
India | 2005 - 2014 | ||||||||||
Italy | 2009 - 2014 | ||||||||||
Malaysia | 2007 - 2014 | ||||||||||
Netherlands | 2011 - 2014 | ||||||||||
Nigeria | 2010 - 2014 | ||||||||||
Norway | 2006 - 2014 | ||||||||||
Spain | 2010 - 2014 | ||||||||||
United Kingdom | 2008 - 2014 | ||||||||||
United States | 2011 - 2014 | ||||||||||
Venezuela | 2010 - 2014 | ||||||||||
Any material tax amounts due from examination of Grupo Guascor, S.L.U. (“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, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | $ | 116.3 | $ | 118.5 | |||||||
Deferred tax assets | |||||||||||
Investment, research and experimentation and other credit carryforward, net | $ | -28.1 | $ | -30.8 | |||||||
Inventories and receivables | -21.4 | -21.1 | |||||||||
Foreign tax credit carryforward | -13.2 | -4.7 | |||||||||
Other accrued expenses and benefits | -34.8 | -12 | |||||||||
Tax net operating loss carryforwards | -117.7 | -107.2 | |||||||||
Pension and employee benefits | -57.7 | -41.9 | |||||||||
Total deferred tax assets | -272.9 | -217.7 | |||||||||
Valuation allowances | 134.9 | 121.2 | |||||||||
Net deferred tax assets | -138 | -96.5 | |||||||||
Total net deferred tax (asset) liability | $ | -21.7 | $ | 22.0 | |||||||
Presented on the consolidated balance sheet as: | |||||||||||
Current deferred tax assets | $ | -66.8 | $ | -25.2 | |||||||
Current deferred tax liabilities | 2.2 | 3.6 | |||||||||
Noncurrent deferred tax assets | -5.5 | -11.8 | |||||||||
Noncurrent deferred tax liabilities | 48.4 | 55.4 | |||||||||
Total net deferred tax (asset) liability | $ | -21.7 | $ | 22.0 | |||||||
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, 2014 and 2013, net operating loss carryforwards (“NOLs”) of approximately $414.5 and $371.1, respectively, were available to offset future taxable income in certain foreign jurisdictions. If not utilized, these NOLs will begin to expire in 2015. Also, as of December 31, 2014 and 2013, research and experimentation and other tax credits of $28.1 and $30.8, 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, 2014 and 2013, were $13.2 and $4.7, respectively. If not utilized, these credits will begin to expire in 2024. Valuation allowances as of December 31, 2014 and December 31, 2013, of $134.9 and $121.2, 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. | |||||||||||
The decrease in the effective tax rate for the year ended December 31, 2014, as compared to the year ended December 31, 2013, is principally due to a change in the mix of foreign earnings and incremental benefits of foreign tax credits. The Company was able to benefit from previously unrecognized foreign tax credits. The total impact of these items reduces the effective tax rate for the year ended December 31, 2014, by approximately 5.1 percentage points. | |||||||||||
On August 8, 2014, the Company acquired Ramgen, an entity in which the Company held an equity interest immediately preceding the acquisition date. The acquisition of Ramgen is discussed more fully in Note 3. The net pre-tax loss recognized on the Ramgen acquisition which is included in other expense, net in the consolidated financial statements, reduced the effective tax rate for the year ended December 31, 2014, by 1.4 percentage points. | |||||||||||
This decrease is offset by an increased amount of net operating losses in certain foreign countries, for which we could not record benefits under U.S. GAAP, thus increasing the effective tax rate by approximately 3.3 percentage points. | |||||||||||
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 “look through” 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. Therefore, as required by U.S. GAAP, a $4.4 benefit was reflected in the year ended December 31, 2013 as a discrete event. The look through exemption for foreign earnings provisions and the research and experimentation credit was extended in the fourth quarter of 2014. The impact of the 2013 retroactive extension of these provisions caused an increase in the 2014 effective tax rate of approximately 1.7 percentage points as compared to the 2013 effective tax rate. | |||||||||||
During the year ended December 31, 2014, our Luxembourg subsidiary paid a dividend from current earnings to the U.S. of $14.9, generating U.S. foreign tax credits in excess of the statutory U.S. tax rate of approximately $7.1. The impact of these credits and related reserves on the effective tax rate for the year ended December 31, 2014, is a benefit of 3.0%. In June 2014, the Company decided to change its assertion with respect to the unremitted earnings of its Indian subsidiary and paid a cash dividend to the U.S. This change in management philosophy was due to the restrictive Indian exchange control laws prohibiting certain business uses of the cash being generated in India. The tax impact of this change in assertion and dividend payment resulted in a net tax benefit of approximately $0.8. | |||||||||||
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, was a benefit of 3.4%. | |||||||||||
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 are operating under tax holiday arrangements that began expiring during 2014, subject to potential extensions. For the years ended December 31, 2014, 2013 and 2012, the impact of these tax holiday arrangements lowered income tax expense by $7.6 ($0.10 per diluted share), $9.1 ($0.12 per diluted share) and $2.1 ($0.03 per diluted share), respectively. | |||||||||||
Except for earnings of our Indian subsidiary, and certain current earnings of our Luxembourg subsidiary remitted in 2014 and 2013, management has decided to indefinitely 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 indefinitely 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, 2014, the Company has accumulated undistributed foreign earnings of approximately $431.9. | |||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-Term Debt [Abstract] | |||||||||||||
Long-Term Debt | 11.Long-Term Debt | ||||||||||||
Long-term debt consists of the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Amended Credit Facility | $ | 693.7 | $ | 884.5 | |||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | - | 4.6 | |||||||||||
Other indebtedness | 15.0 | 22.9 | |||||||||||
Total debt | 1,083.7 | 1,287.0 | |||||||||||
Less: current portion | -30.1 | -40.1 | |||||||||||
Total long-term debt | $ | 1,053.6 | $ | 1,246.9 | |||||||||
As of December 31, 2014, the maturities of our debt for each of the five years after 2014 and thereafter are as follows: | |||||||||||||
2015 | $ | 30.1 | |||||||||||
2016 | 20.7 | ||||||||||||
2017 | 20.6 | ||||||||||||
2018 | 634.3 | ||||||||||||
2019 | - | ||||||||||||
Thereafter | 378.0 | ||||||||||||
$ | 1,083.7 | ||||||||||||
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. | |||||||||||||
On June 27, 2014, we entered into an amendment (the “First Amendment”) to our committed credit agreement (as amended by the First Amendment, the “Amended Credit Facility”). The First Amendment amends certain terms and provisions of our committed credit agreement to incorporate recent changes to the ownership structure of certain legal entities completed by the Company in order to facilitate the Company’s cash management activities. | |||||||||||||
The Amended Credit Facility is comprised of revolving credit facilities, reflecting a $1,100.0 commitment and a €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, 2014, total outstanding borrowings under the Amended Credit Facility amounted to $693.7, of which $434.1 was outstanding under the revolving credit facilities and $259.6 was outstanding under the term loan facility. The Company had issued $72.8 in letters of credit under the revolving credit facility at December 31, 2014. In addition to these letters of credit, $264.4 of letters of credit and bank guarantees was outstanding at December 31, 2014, 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, 2014. | |||||||||||||
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. Total deferred financing fees of $2.2 and $3.4 were amortized to earnings for fiscal years ended December 31, 2014 and 2013, respectively. Included in interest expense were commitment and letter of credit fees of $1.9, $2.8 and $4.7 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Bank Overdraft Facility | |||||||||||||
The Company is party to bank overdraft facilities totaling $20.0 that bear 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. | |||||||||||||
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, 2014. | |||||||||||||
The carrying and fair values of the Company’s Senior Subordinated Notes were as follows: | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 401.7 | $ | 375.0 | $ | 400.5 | |||||
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 $0.4 at December 31, 2014. Interest rates for borrowings in Italy range from EURIBOR plus 1.70% to 1.80% per annum. At December 31, 2013, the outstanding principal balance of bank loans totaled $0.5. | |||||||||||||
Project Financing Arrangements | |||||||||||||
Approximately $7.2 of the outstanding project financing balance of $8.8 at December 31, 2014 (bearing interest at the six-month EURIBOR rate plus 1.25% per annum), is associated with cogeneration facilities in Spain. Approximately $1.6 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, 2013, the outstanding balance related to project financing arrangements was $13.3. | |||||||||||||
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 $4.0 at December 31, 2014. The Company imputed interest on the subsidized loans utilizing the effective interest method for the year ended December 31, 2014. The imputed interest rate was approximately 5.56% for the year ended December 31, 2014. At December 31, 2013, the outstanding balance of subsidized loans was $5.4. | |||||||||||||
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 a Spanish cogeneration facility. The participating loans totaled $1.2 at December 31, 2014. At December 31, 2013, approximately $3.7 of other notes payable was outstanding. | |||||||||||||
Pension_Plans
Pension Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
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 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Change in projected benefit obligations | ||||||||||||||||||
Benefit obligation at beginning of the period | $ | 286.0 | $ | 314.2 | $ | 138.3 | $ | 159.8 | ||||||||||
Service cost | 3.6 | 3.8 | 2.4 | 5.6 | ||||||||||||||
Interest cost | 13.2 | 11.6 | 5.5 | 6.4 | ||||||||||||||
Employee contributions | - | - | 0.1 | 0.2 | ||||||||||||||
Expenses paid | -1 | -1 | -0.1 | -0.1 | ||||||||||||||
Actuarial loss (gain) | 34.1 | -28.8 | 11.1 | 17.2 | ||||||||||||||
Curtailment / settlement | - | - | -1.3 | -43.4 | ||||||||||||||
Plan amendments | 2.3 | 0.9 | - | - | ||||||||||||||
Benefits paid | -28.5 | -14.7 | -5.5 | -6.3 | ||||||||||||||
Foreign currency adjustments | - | - | -9.5 | -1.1 | ||||||||||||||
Benefit obligation at end of the period | $ | 309.7 | $ | 286.0 | $ | 141.0 | $ | 138.3 | ||||||||||
Change in plan assets | ||||||||||||||||||
Fair value at beginning of the period | $ | 246.9 | $ | 219.2 | $ | 117.8 | $ | 130.9 | ||||||||||
Actual return on assets | 18.2 | 31.9 | 13.8 | 10.0 | ||||||||||||||
Settlements | - | - | -1.3 | -26.8 | ||||||||||||||
Company contributions | 8.9 | 11.5 | 6.1 | 10.1 | ||||||||||||||
Employee contributions | - | - | 0.1 | 0.2 | ||||||||||||||
Expenses paid | -1 | -1 | -0.1 | -0.1 | ||||||||||||||
Benefits paid | -28.5 | -14.7 | -5.5 | -6.3 | ||||||||||||||
Foreign currency adjustments | - | - | -7.5 | -0.2 | ||||||||||||||
Fair value of assets at end of the period | $ | 244.5 | $ | 246.9 | $ | 123.4 | $ | 117.8 | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||||
Current liabilities | $ | 0.6 | $ | 0.6 | $ | 1.7 | $ | 1.7 | ||||||||||
Noncurrent liabilities | 64.6 | 38.5 | 16.2 | 18.8 | ||||||||||||||
Total balance sheet liability | $ | 65.2 | $ | 39.1 | $ | 17.9 | $ | 20.5 | ||||||||||
Amounts recognized in accumulated other | ||||||||||||||||||
comprehensive loss consists of: | ||||||||||||||||||
Cumulative net actuarial loss | $ | 84.2 | $ | 52.6 | $ | 21.2 | $ | 18.0 | ||||||||||
Cumulative prior service cost | 2.9 | 0.8 | 0.9 | 1.0 | ||||||||||||||
Total | $ | 87.1 | $ | 53.4 | $ | 22.1 | $ | 19.0 | ||||||||||
In 2014, the Company amended its U.S. defined benefit pension plans related to lump sum benefit eligibility, and began notifying certain former employees of the Company’s offer to pay those employees’ vested pension benefit in a lump sum. The Company offered the one-time voluntary lump sum payout in an effort to reduce its long-term pension obligations and ongoing annual pension expense. The Company made payments during 2014 of approximately $12.9 to former employees who accepted the offer by the deadline. These payments were funded from existing pension plan assets and reduced the Company’s total qualified pension plan liabilities by $16.5. Settlement accounting was not required as the total lump sum payments during 2014 were below the minimum settlement accounting thresholds for the plans. | ||||||||||||||||||
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 | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Net pension expense | ||||||||||||||||||
Service cost | $ | 3.6 | $ | 3.8 | $ | 3.8 | $ | 2.4 | $ | 5.6 | $ | 5.3 | ||||||
Interest cost | 13.2 | 11.6 | 12.8 | 5.5 | 6.4 | 6.7 | ||||||||||||
Expected return on plan assets | -18.5 | -16.1 | -14.9 | -6.5 | -6.9 | -6.9 | ||||||||||||
Amortization of net actuarial loss | 2.8 | 7.8 | 7.2 | 0.3 | 0.4 | 0.6 | ||||||||||||
Curtailment / settlement | - | - | - | 0.4 | -3.6 | - | ||||||||||||
Amortization of prior service cost | 0.3 | - | 0.3 | - | 0.1 | -0.1 | ||||||||||||
Net pension expense | 1.4 | 7.1 | 9.2 | 2.1 | 2.0 | 5.6 | ||||||||||||
Amounts recognized in other | ||||||||||||||||||
comprehensive (income) loss | ||||||||||||||||||
Net actuarial loss (gain) | 34.4 | -44.5 | 16.7 | 3.5 | 14.0 | 2.1 | ||||||||||||
Prior service cost | 2.3 | 0.9 | - | - | - | - | ||||||||||||
Amortization of net actuarial loss | -2.8 | -7.8 | -7.2 | -0.3 | -0.4 | -0.6 | ||||||||||||
Curtailment / settlement | - | - | - | - | -13 | - | ||||||||||||
Amortization of prior service cost | -0.3 | - | -0.3 | - | -0.1 | 0.1 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive loss (income) | 33.6 | -51.4 | 9.2 | 3.2 | 0.5 | 1.6 | ||||||||||||
Total recognized | $ | 35.0 | $ | -44.3 | $ | 18.4 | $ | 5.3 | $ | 2.5 | $ | 7.2 | ||||||
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 | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Weighted-average assumptions | ||||||||||||||||||
used for benefit obligations: | ||||||||||||||||||
Discount rate | 3.90 | % | 4.70 | % | 3.80 | % | 3.26 | % | 4.07 | % | 4.15 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.13 | % | 0.13 | % | 2.16 | % | 2.58 | % | 2.51 | % | ||||||
Weighted-average assumptions | ||||||||||||||||||
used for net periodic pension cost: | ||||||||||||||||||
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 | % | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | 5.64 | % | 5.44 | % | 6.09 | % | ||||||
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 2015 is estimated to be $7.1 and $0.6 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 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Projected benefit obligation | $ | 309.7 | $ | 286.1 | $ | 21.8 | $ | 31.1 | ||||||||||
Accumulated benefit obligation | 309.7 | 286.1 | 16.2 | 27.1 | ||||||||||||||
Fair value of plan assets | 244.5 | 247.0 | 1.9 | 11.2 | ||||||||||||||
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, 2014 | ||||||||||||||||||
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 | $ | 2.8 | $ | - | $ | 2.8 | $ | - | ||||||||||
U.S. large-cap equities | 20.2 | 20.2 | - | - | ||||||||||||||
U.S. small-cap value equities | 20.2 | 20.2 | - | - | ||||||||||||||
U.S. small-cap growth equities | 31.9 | 26.9 | 5.0 | - | ||||||||||||||
International equities | 35.4 | - | 35.4 | - | ||||||||||||||
U.S. fixed income (1) | 85.8 | 73.8 | 12.0 | - | ||||||||||||||
Global asset allocations (2) | 48.2 | 23.6 | 24.6 | - | ||||||||||||||
Total | $ | 244.5 | $ | 164.7 | $ | 79.8 | $ | - | ||||||||||
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 | $ | - | ||||||||||
(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, 2014 | ||||||||||||||||||
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 | $ | 0.3 | $ | - | $ | 0.3 | $ | - | ||||||||||
U.S. equities | 10.6 | - | 10.6 | - | ||||||||||||||
International equities | 55.2 | - | 55.2 | - | ||||||||||||||
International fixed income (1) | 43.8 | - | 43.8 | - | ||||||||||||||
Insurance contracts (2) | 13.5 | - | - | 13.5 | ||||||||||||||
Total | $ | 123.4 | $ | - | $ | 109.9 | $ | 13.5 | ||||||||||
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 | ||||||||||
(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 | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Beginning balance | $ | 12.7 | $ | 29.5 | ||||||||||||||
Actual return on assets | 2.1 | 0.1 | ||||||||||||||||
Company contributions | 0.5 | 12.6 | ||||||||||||||||
Foreign exchange | -0.7 | -2.5 | ||||||||||||||||
Benefit payments | -0.2 | -1.2 | ||||||||||||||||
Settlements | -0.9 | -25.8 | ||||||||||||||||
Ending balance | $ | 13.5 | $ | 12.7 | ||||||||||||||
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 $0.0 and $3.9, respectively, in 2015. | ||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company contributed approximately $1.1, $1.1 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: $16.9 in 2015, $17.6 in 2016, $18.3 in 2017, $19.0 in 2018, $19.8 in 2019 and $103.3 for the years 2020 to 2024. Non-U.S. pension benefit payments are expected to be paid as follows: $6.3 in 2015, $6.3 in 2016, $6.3 in 2017, $6.8 in 2018, $6.9 in 2019 and $36.5 for the years 2020 to 2024. | ||||||||||||||||||
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 $17.1, $18.2 and $16.5 for the years ended December 31, 2014, 2013 and 2012, respectively. The Company’s costs relating to non-U.S. defined contribution plans, insured plans and other non-U.S. benefit plans were approximately $6.0, $4.0 and $3.4 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
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, $4.0 and $4.3 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
PostRetirement_Benefits_Other_
Post-Retirement Benefits Other Than Pensions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2014 | 2013 | |||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of the period | $ | 16.4 | $ | 19.6 | ||||||||
Interest cost | 0.7 | 0.8 | ||||||||||
Benefits paid | -0.8 | -0.6 | ||||||||||
Actuarial gains | -0.1 | -3.4 | ||||||||||
Unfunded benefit obligation at end of the period and consolidated balance sheet liability | $ | 16.2 | $ | 16.4 | ||||||||
Amounts recognized in the balance sheet: | ||||||||||||
Current liabilities | $ | 1.2 | $ | 1.3 | ||||||||
Noncurrent liabilities | 15.0 | 15.1 | ||||||||||
Total consolidated balance sheet liability | $ | 16.2 | $ | 16.4 | ||||||||
Amounts recognized in accumulated other comprehensive income: | ||||||||||||
Cumulative net actuarial loss | $ | 1.8 | $ | 1.9 | ||||||||
Cumulative net prior service credit | -0.6 | -0.6 | ||||||||||
Total | $ | 1.2 | $ | 1.3 | ||||||||
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 2015 is estimated to be less than $0.1. | ||||||||||||
Benefit payments for post-retirement benefits are expected to be paid as follows: $1.2 in 2015, $1.2 in 2016, $1.0 in 2017, $1.0 in 2018, $0.9 in 2019 and $4.3 in the aggregate for the years 2020 to 2024. | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net post-retirement benefits expense (income) | ||||||||||||
Interest cost | $ | 0.7 | $ | 0.8 | $ | 0.8 | ||||||
Amortization of | ||||||||||||
Net actuarial loss | - | 0.6 | 1.0 | |||||||||
Total post-retirement benefits expense | 0.7 | 1.4 | 1.8 | |||||||||
Amounts recognized as other comprehensive (income) loss | ||||||||||||
Net actuarial (gain) loss | -0.1 | -3.4 | 0.6 | |||||||||
Amortization of | ||||||||||||
Net actuarial loss | - | -0.6 | -1 | |||||||||
Total recognized in comprehensive (income) loss | -0.1 | -4 | -0.4 | |||||||||
Total recognized | $ | 0.6 | $ | -2.6 | $ | 1.4 | ||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 | ||||||||||||
Discount rate | 3.90 | % | 4.70 | % | 3.80 | % | ||||||
Measurement date | 12/31/14 | 12/31/13 | 12/31/12 | |||||||||
Weighted-average assumptions used to determine net periodic benefit expense (income) for the years ended December 31 | ||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | ||||||
Measurement date | 12/31/13 | 12/31/12 | 12/31/11 | |||||||||
Assumed health care cost trend rates | ||||||||||||
Current year trend rate | 7.20 | % | 7.70 | % | 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 | 2034 | |||||||||
Net periodic benefit cost for the year | 2034 | 2034 | 2033 | |||||||||
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, 2014: | ||||||||||||
1% Increase | 1% Decrease | |||||||||||
Effect on total post-retirement benefit expense | $ | 0.1 | $ | -0.1 | ||||||||
Effect on post-retirement benefit liability | 1.4 | -1.2 | ||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Financial Instruments [Abstract] | |||||||
Financial Instruments | 14. Financial Instruments (€ in millions) | ||||||
The Company manages exposure to changes in foreign currency exchange rates and interest rates through its normal operating and financing activities as well as through the use of financial instruments. | |||||||
The purpose of the Company’s hedging activities is to mitigate the economic impact of changes in foreign currency exchange rates and interest rates. The Company attempts to hedge transaction exposures through natural offsets. To the extent that this is not practicable, the Company may enter into forward exchange contracts or interest rate swaps. Major exposure areas considered for hedging include foreign currency denominated receivables and payables, firm committed transactions, forecast sales and purchases and variable interest rates. | |||||||
The Company has entered into an interest rate swap agreement to minimize the economic impact of 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 $21.8) 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 initial base term of the lease expired in February 2015. See Note 15 for additional discussion of the lease. 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, 2014 and 2013, was $0.4 and $0.7, respectively, and the related unrealized gain (loss) for the year ended December 31, 2014, 2013 and 2012, was $0.3, $0.3 and ($0.1), respectively. The interest rate swap matured in February 2015 and is no longer outstanding. | |||||||
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 with a given counterparty 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, and do not require the Company to post any cash collateral. 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. As of December 31, 2014, had the Company presented its derivative contracts on a net basis, the assets and liabilities presented in the table below would be offset by $4.0, resulting in net foreign currency exchange contracts assets and liabilities of $6.1 and $29.2, respectively. As of December 31, 2013, 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. | |||||||
The following table sets forth the Company’s gross foreign currency exchange contracts that were accounted for at fair value on a recurring basis: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Foreign currency exchange contracts assets | $ | 10.1 | $ | 5.4 | |||
Foreign currency exchange contracts liabilities | $ | 33.2 | $ | 16.3 | |||
The notional amount for the forward exchange contracts outstanding as of December 31, 2014 and 2013, was $498.3 and $546.6, respectively. The net foreign currency (losses) gains recognized for forward currency contracts were $(14.3), ($14.7) and $7.9 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 15.Commitments and Contingencies (€ and R$ 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, for certain of these matters as part of Ingersoll Rand’s sale of the Company and by the sellers of Guascor for certain of these matters in connection with our acquisition of 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. | |
Shareholder Litigation | |
A putative class action lawsuit challenging the proposed merger with Siemens Energy, Inc. was filed on September 24, 2014 on behalf of Dresser-Rand Group Inc. stockholders in the Delaware Court of Chancery. The action is captioned Soffer v. Volpe et al., C.A. No. 10165-CB (Del. Ch.) (the “Soffer Action”). The complaint in the Soffer Action alleged that the directors of the Company breached their fiduciary duties to stockholders by engaging in a flawed sale process, agreeing to sell the Company for inadequate consideration and agreeing to improper deal protection terms in the Merger Agreement. In addition, the lawsuit alleged that the Company, Siemens and Dynamo Acquisition Corporation, the Delaware subsidiary formed by Siemens in connection with the transaction, aided and abetted these purported breaches of fiduciary duty. The lawsuit sought, among other things, an injunction barring the merger. On October 21, 2014, plaintiffs amended the complaint to allege as additional basis for relief that the directors of the Company engaged in self-dealing because they will benefit from their compensation arrangements and/or the sale of their personal stakes in the Company and that the preliminary proxy statement filed by the Company on October 9, 2014, fails to provide stockholders with material information about the transaction and/or is materially misleading. On October 24, 2014, Construction Industry & Laborers Union Local 872 Pension A Trust v. Dresser-Rand Group, Inc., et al, C.A. No. 10285-CB (Del. Ch.) (the “Labor Union Action”) was filed in the Delaware Court of Chancery. This complaint contained claims and allegations similar to those in the pre-amendment Soffer complaint and sought similar relief on behalf of the same putative class. The Company believes that the lawsuits are without merit. | |
On November 10, 2014, the Soffer Action and the Labor Union Action were consolidated under the caption In re Dresser Rand Group, Inc. Shareholders Litigation, C.A. No. 10165-CB (Del. Ch.) (the “Consolidated Case”). On November 14, 2014, the parties reached an agreement in principle to settle the Consolidated Case in exchange for the Company’s making certain additional disclosures. Those disclosures were contained in a Form 8-K filed with the SEC on November 17, 2014. The settlement remains subject to final documentation and court approval. | |
Guascor Purchase Price Dispute | |
On May 4, 2011, the Company acquired all of the issued and outstanding capital stock of Guascor pursuant to a Share Purchase Agreement (the “SPA”) for approximately $543.2. The purchase price was subject to a further adjustment to the extent that net debt (debt minus cash) at the end of business on May 4, 2011, was different from €124.5. Pursuant to the SPA, this adjustment is to be computed on the basis of Spanish generally accepted accounting principles (“SGAAP”). | |
The Company and the sellers of Guascor (“Sellers”) are in dispute about the amount of the purchase price adjustment set out in the SPA. In some cases, the Sellers and the Company have opposing views as to the amount that should be included in the price adjustment. In other cases, the Sellers and the Company are in dispute as to whether certain items should be included in the net debt computation. In accordance with the provisions of the SPA, the parties sought resolution of this dispute under an arbitration in the International Court of Commerce (“ICC”), which has provided its opinion, and now the parties await a ruling from a French court-appointed expert. Based upon its interpretation of SGAAP, the Company has unresolved disputes totaling approximately $32.7 with the Sellers. | |
The Company has recorded a receivable from the Sellers for the purchase price adjustment, net of an allowance for the Company’s best estimate of amounts collectible. This allowance was established by considering, for each disputed item, the Company’s view of its position under SGAAP, uncertainties around the expert’s interpretation of SGAAP, and the collectability of the amounts. As additional information becomes known and disputed items are resolved, changes to the allowance will be recorded directly to earnings. The final resolution of these amounts could take several months and potentially years if appeals are pursued. The final amount could be materially different than the net receivable recorded by the Company. The Company, however, does not believe that the difference could have a material adverse effect on its operating results, financial condition, liquidity or cash flows. | |
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 U.S. Supreme Court’s decision on the constitutional matter was decided in June 2014. That decision held that the NLRB that ruled on this and other cases was invalidly appointed by the President and the matters decided by that NLRB were also set aside as invalid. As a result, this matter has been returned to the current and validly appointed NLRB to be reheard in its entirety. 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. | |
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 hydroelectric dam 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. Pursuant to 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 $1.4) (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, the Company believes 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 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. The GG Entities appealed the Court’s denial of their request for declaratory relief, and the Appellate Court ruled in their favor, and the GG Entities were not ordered to pay any amounts. Banco Santos did not agree with the decision and has appealed to the Supreme Court. | |
The Company believes that the chances of losing the case in the Supreme Court are remote, 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 the final decision of the Declaratory Action and a similar case filed by the BS Affiliates. Notwithstanding the foregoing, the ultimate outcome of these proceedings is pending the Supreme Court’s decision and 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$50.9 (approximately $19.2). 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 from the Italian Tax Court (i.e., the Commissione Tributaria Provinciale Di Genova) in February 2012 for tax years 2005-2006 for approximately €4.3 ($5.2). On March 6, 2014, as requested by the Italian Tax Court with regard to tax years 2007 and 2008, the Court of Justice of the European Union issued an advisory, preliminary ruling, which ruling supported the Company’s position with regard to the value-added tax regulations that no such taxes are owed. The Company then requested that the Italian Tax Court issue its judgment with regard to tax years 2007 and 2008, which judgment the Company intends to present to the appeals court in connection with its appeal of the Italian Tax Court’s adverse judgment with respect to tax years 2005 and 2006. On September 24, 2014, the Italian Tax Court issued its judgment with regard to tax years 2007 and 2008 in accordance with European Union recommendations. The Italian tax authorities had six months to file an appeal. On November 25, 2014 the Italian tax authorities issued an order reducing the tax. As a result of this order, the Italian Tax Court has closed the action with respect to tax years 2007 and 2008. Based on the European Union preliminary ruling and the Italian Tax Court judgment for the tax years 2007 and 2008, the Company has requested the withdrawal of the tax authority’s claim with respect to tax years 2005 and 2006. On February 16, 2015, the Company was informed that the tax authority waived its claim. The Company is now requesting the Italian Tax Court to confirm the tax authority’s statement through a judgment to close the action with respect to tax years 2005 and 2006. Upon award of the judgment, the Italian tax authorities will have six months to file an appeal. The Company believes it has no exposure to this claim. | |
Lease Commitments | |
On December 28, 2007, the Company executed a lease transaction including a committed line of credit of up to €23.0 (approximately $27.8) 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%. 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 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. | |
On February 12, 2015, the initial base term of the Company’s lease of the Facility expired and was terminated. On the same day, (i) the Company’s interest rate swap agreement utilized to minimize the economic impact of fluctuations in interest rates on the lease expired, and (ii) the Company purchased the Facility for approximately €23.1 (approximately $26.1). | |
Certain office and warehouse facilities, transportation vehicles and data processing equipment are leased. Total rental expense relating to these leases was approximately $21.8, $28.9 and $25.4 for the years ended December 31, 2014, 2013 and 2012, respectively. Minimum lease payments required under non-cancelable operating leases at December 31, 2014, with terms in excess of one year for the next five years and thereafter are as follows: $18.7 in 2015, $15.5 in 2016, $11.9 in 2017, $8.5 in 2018, $2.0 in 2019 and $13.1 thereafter. | |
Warranties
Warranties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Warranties [Abstract] | |||||||||
Warranties | 16. 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, | |||||||||
2014 | 2013 | 2012 | |||||||
Beginning balance | $ | 21.4 | $ | 20.1 | $ | 25.6 | |||
Provision for warranties issued during period | 14.7 | 19.9 | 17.3 | ||||||
Adjustments to warranties issued in prior periods | 2.4 | 2.2 | -2.9 | ||||||
Payments during the period | -17.6 | -19.6 | -19.8 | ||||||
Foreign currency adjustments | -1.3 | -1.2 | -0.1 | ||||||
Ending balance | $ | 19.6 | $ | 21.4 | $ | 20.1 | |||
Incentive_StockBased_Compensat
Incentive Stock-Based Compensation Plans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Incentive Stock-Based Compensation Plans [Abstract] | |||||||||
Incentive Stock-Based Compensation Plans | |||||||||
17.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, performance restricted stock units (“PRSUs”) 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. Pursuant to the Merger Agreement with Siemens, upon closing the Merger, all unvested incentive stock-based compensation awards will immediately vest and become exercisable, with performance-based shares vesting at a level determined by the Compensation Committee of the Board of Directors. At that time, all unrecognized stock-based compensation expense will accelerate. The disclosures and tables below are based on the existing terms of our incentive stock-based compensation awards and do not reflect any impacts of the Merger Agreement with Siemens. 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 $25.8 for 2014, $25.9 for 2013 and $28.4 for 2012. At December 31, 2014, 1,372,462 shares were available for future grants and total unrecognized deferred stock compensation expected to be recognized over the remaining weighted-average vesting periods of 1.17 years for outstanding employee grants was $30.2. 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 2014, 2013 and 2012: | |||||||||
Shares | Weighted-Average Exercise Price | ||||||||
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 | ||||||
Granted | 290,354 | $ | 59.38 | ||||||
Exercised | -157,373 | $ | 29.07 | ||||||
Forfeited | -24,923 | $ | 57.53 | ||||||
Expired | -6,671 | $ | 35.66 | ||||||
Balance, December 31, 2014 | 1,567,197 | $ | 40.57 | ||||||
Exercisable December 31, 2012 | 1,103,694 | $ | 26.27 | ||||||
Exercisable December 31, 2013 | 1,112,189 | $ | 28.73 | ||||||
Exercisable December 31, 2014 | 1,106,160 | $ | 32.77 | ||||||
The weighted-average grant date fair value per share of options and stock appreciation rights granted to employees during the year ended December 31, 2014, 2013 and 2012, was $14.82, $21.52 and $21.05, respectively. The total intrinsic value of options exercised during the year ended December 31, 2014, was approximately $5.3. The tax benefit realized from the exercise of stock options during the year ended December 31, 2014, was $1.6. The aggregate intrinsic value of options and stock appreciation rights outstanding at December 31, 2014, was $64.6. The total fair value of options and stock appreciation rights vested during the year ended December 31, 2014, 2013 and 2012, was $3.9, $4.6 and $4.9, 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 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. | |||||||||
2014 | 2013 | 2012 | |||||||
Option term (years) | 3.9 | 5.0 | 5.0 | ||||||
Volatility | 29.1 | % | 38.4 | % | 45.4 | % | |||
Risk-free interest rate (zero coupon U.S. Treasury note) | 1.12 | % | 0.92 | % | 0.81 | % | |||
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 2014, 2013 and 2012, and grant date fair values: | |||||||||
Shares | Weighted-Average Grant Price | ||||||||
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 | ||||||
Granted | 410,433 | $ | 59.09 | ||||||
Vested | -286,568 | $ | 59.37 | ||||||
Forfeited | -46,803 | $ | 58.61 | ||||||
Nonvested at December 31, 2014 | 732,080 | $ | 58.88 | ||||||
The total fair value of restricted stock awards which vested during the years ended December 31, 2014, 2013 and 2012, was $17.0, $51.9 and $25.1, 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 after 2012 vest immediately. The total fair value of the 15,736 shares granted in 2014 at the respective grant dates was $0.9, the 13,972 shares granted in 2013 at the respective grant dates was $0.8 and the 15,459 shares granted in 2012 at the respective grant dates was $0.8. | |||||||||
Significant_Concentration_Of_C
Significant Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Significant Concentration Of Credit Risk [Abstract] | |
Significant Concentration Of Credit Risk | 18. 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, 2014, 2013 and 2012, 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, 2014, approximately 16.8% of the Company’s net accounts receivable was from Petroleos de Venezuela, S.A. (“PDVSA”). The outstanding accounts receivable are primarily denominated in U.S. Dollars, reducing the risk associated with the devaluation of the Venezuelan bolivar. Payments of approximately $56.3 were received during the year ended December 31, 2014. 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, 2014 | |||||||||
Other Expense, Net [Abstract] | |||||||||
Other Expense, Net | 19. Other Expense, net | ||||||||
Other expense, net includes the following: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Foreign currency losses | $ | -21.6 | $ | -0.8 | $ | -9 | |||
(Loss) gain on forward exchange contracts | -14.3 | -14.7 | 7.9 | ||||||
Net loss from equity investments | -15.8 | -5.6 | -2.1 | ||||||
Realized gains of deferred compensation plan | -2.1 | -1.4 | -0.9 | ||||||
Unrealized gain of deferred compensation plan | -4.3 | -2.7 | -1.2 | ||||||
Deferred compensation expense due to changes in fair value | 6.4 | 4.1 | 2.1 | ||||||
Other miscellaneous income | 1.0 | 4.5 | 3.2 | ||||||
Total other expense, net | $ | -50.7 | $ | -16.6 | $ | - | |||
Foreign currency losses relate primarily to the strengthening of the U.S. dollar. The net loss from equity investments is primarily related to the acquisition of Ramgen during the year ended December 31, 2014. The purchase of Ramgen resulted in a net loss to the Company of $11.7, which consisted of two components: (1) a loss on the re-measurement of the Company’s previously held interest of $18.3, and (2) a gain related to the fair value of the assets acquired in excess of the fair value of the consideration of $6.6. See Note 3, Acquisitions and Other Investments for additional information. | |||||||||
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, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 20.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 | Post-Retirement | |||||||||||
Adjustments | Derivatives | Benefit Plans | Total | ||||||||||
At December 31, 2013 | $ | -69.5 | $ | -0.4 | $ | -48.9 | $ | -118.8 | |||||
Other comprehensive loss before reclassifications | -123.2 | - | - | -123.2 | |||||||||
Amounts reclassified from AOCI | - | 0.3 | -22.9 | -22.6 | |||||||||
Net current period other comprehensive (loss) income | -123.2 | 0.3 | -22.9 | -145.8 | |||||||||
At December 31, 2014 | $ | -192.7 | $ | -0.1 | $ | -71.8 | $ | -264.6 | |||||
During the year ended December 31, 2014, foreign currency translation adjustments in accumulated other comprehensive loss were $(123.2), primarily due to the weakening of the euro of approximately 12.0%. | |||||||||||||
Foreign | Pension and | ||||||||||||
Currency | Unrealized | Other | |||||||||||
Translation | (Loss) Gain on | Post-Retirement | |||||||||||
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 years ended December 31, 2014 and 2013 were as follows: | |||||||||||||
Amount Reclassified From AOCI into Net Income | |||||||||||||
Year Ended December 31, | Affected Line Item in the Consolidated | ||||||||||||
Details About AOCI Components | 2014 | 2013 | Statement of Income | ||||||||||
Unrealized gain on derivatives | $ | -0.5 | $ | -0.4 | Interest expense, net | ||||||||
0.2 | 0.1 | Provision for income taxes | |||||||||||
$ | -0.3 | $ | -0.3 | Net of tax | |||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -3.4 | $ | -8.9 | (a) | ||||||||
Recognized net actuarial loss (gain) | 37.8 | -33.9 | (a) | ||||||||||
Gain from curtailment / settlement | - | -13 | (a) | ||||||||||
Benefit plan amendments | 2.3 | 0.9 | (a) | ||||||||||
Total before tax | 36.7 | -54.9 | Income before income taxes | ||||||||||
-13.8 | 21.1 | Provision for income taxes | |||||||||||
$ | 22.9 | $ | -33.8 | Net of tax | |||||||||
Total reclassifications, net of tax | $ | 22.6 | $ | -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, 2014 | ||||||||||
Segment Information [Abstract] | ||||||||||
Segment Information | 21.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 Company’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, 2014, 2013 and 2012 were as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues | ||||||||||
New units | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Aftermarket parts and services | 1,391.8 | 1,508.5 | 1,434.8 | |||||||
Total revenues | $ | 2,811.7 | $ | 3,032.6 | $ | 2,736.4 | ||||
Income from operations | ||||||||||
New units | $ | 111.5 | $ | 140.3 | $ | 117.9 | ||||
Aftermarket parts and services | 299.4 | 295.7 | 323.2 | |||||||
Unallocable | -122.6 | -115 | -105.2 | |||||||
Total income from operations | $ | 288.3 | $ | 321.0 | $ | 335.9 | ||||
Depreciation and amortization | ||||||||||
New units | $ | 44.0 | $ | 45.0 | $ | 44.3 | ||||
Aftermarket parts and services | 48.3 | 47.3 | 41.2 | |||||||
Total depreciation and amortization | $ | 92.3 | $ | 92.3 | $ | 85.5 | ||||
External revenues by products and services | ||||||||||
New units: | ||||||||||
Products | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Total | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Aftermarket parts and services: | ||||||||||
Products | $ | 673.1 | $ | 695.7 | $ | 623.5 | ||||
Services | 718.7 | 812.8 | 811.3 | |||||||
Total | $ | 1,391.8 | $ | 1,508.5 | $ | 1,434.8 | ||||
Revenues by destination | ||||||||||
United States | $ | 840.6 | $ | 854.1 | $ | 828.0 | ||||
Canada | 66.7 | 73.9 | 73.5 | |||||||
North America | 907.3 | 928.0 | 901.5 | |||||||
Latin America | 446.2 | 428.3 | 445.7 | |||||||
Europe | 673.2 | 796.6 | 680.1 | |||||||
Asia-Pacific, Southern Asia | 414.4 | 520.8 | 422.8 | |||||||
Middle East, Africa | 370.6 | 358.9 | 286.3 | |||||||
Total revenues | $ | 2,811.7 | $ | 3,032.6 | $ | 2,736.4 | ||||
Total assets by segment were as follows: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Goodwill | ||||||||||
New units | $ | 434.2 | $ | 488.4 | ||||||
Aftermarket parts and services | 398.7 | 439.2 | ||||||||
Total goodwill | $ | 832.9 | $ | 927.6 | ||||||
Total assets (including goodwill) | ||||||||||
New units | $ | 1,080.2 | $ | 1,113.8 | ||||||
Aftermarket parts and services | 1,270.6 | 1,305.0 | ||||||||
Unallocable | 1,137.9 | 1,319.0 | ||||||||
Total assets | $ | 3,488.7 | $ | 3,737.8 | ||||||
Long-lived assets by geographic area | ||||||||||
United States | $ | 185.5 | $ | 177.2 | ||||||
Canada | 1.7 | 2.6 | ||||||||
North America | 187.2 | 179.8 | ||||||||
Latin America | 83.9 | 94.0 | ||||||||
Europe | 113.8 | 140.2 | ||||||||
Asia-Pacific, Southern Asia | 17.0 | 18.0 | ||||||||
Middle East, Africa | 49.0 | 40.3 | ||||||||
Total long-lived assets | $ | 450.9 | $ | 472.3 | ||||||
Sales to clients within individual countries outside the U.S. did not exceed 10% of the total revenues in any year presented. | ||||||||||
Selected_Unaudited_Quarterly_F
Selected Unaudited Quarterly Financial Data | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Selected Unaudited Quarterly Financial Data [Abstract] | ||||||||||||
Selected Unaudited Quarterly Financial Data | 22. Selected Unaudited Quarterly Financial Data | |||||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Total revenues | $ | 699.1 | $ | 628.4 | $ | 683.8 | $ | 800.4 | ||||
Gross profit | 147.4 | 178.5 | 182.2 | 220.6 | ||||||||
Net income attributable to Dresser-Rand | 16.6 | 29.1 | 30.8 | 46.2 | ||||||||
Net income per share | ||||||||||||
Basic | 0.22 | 0.38 | 0.40 | 0.60 | ||||||||
Diluted | 0.22 | 0.38 | 0.40 | 0.60 | ||||||||
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 | ||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Supplemental Cash Flow Information | 23. Supplemental Cash Flow Information | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Cash paid for interest, net of capitalized interest | $ | 52.8 | $ | 54.1 | $ | 59.1 | |||
Cash paid for income taxes, net of refunds | 94.0 | 80.8 | 56.9 | ||||||
Schedule of Noncash Investing and Financing Activities(1): | |||||||||
Assets acquired in acquisition | $ | 24.4 | $ | - | $ | 55.8 | |||
Liabilities assumed in acquisition | 3.9 | - | 2.6 | ||||||
(1) See Note 3 for additional discussion of the Company’s acquisitions. | |||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Event (Unaudited) |
Restructuring | |
On February 25, 2015, subsequent to the end of fiscal 2014, the Company’s Board of Directors approved a series of actions intended to improve operating performance. The Company has announced a planned reduction in workforce of approximately 8%, which covers its world-wide operations, and associated overhead costs from the different support disciplines. The announced actions include reduced overhead through the optimization of the Company’s workforce and non-cash charges (impairment and/or accelerated depreciation and amortization) related to the restructuring or disposal of certain assets. The Company currently estimates the overall pre-tax costs of the program at approximately $50.0. These strategic initiatives originate from the Company’s efforts to identify opportunities to strengthen its value proposition, increase operational efficiencies, and improve financial performance. We will begin initiating the announced actions in the first quarter of 2015 and expect to complete the actions by the end of 2015. | |
The amount of the restructuring charge noted above is an estimate, and the actual charges may vary materially based on various factors, including but not limited to the following: the timing of final asset dispositions; level of employee terminations; factors relating to real estate, such as sale proceeds and other related expenses; and changes in management’s assumptions. | |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts And Reserves | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Valuation and Qualifying Accounts and Reserves [Abstract] | ||||||||||||||||||
Valuation And Qualifying Accounts And Reserves | ||||||||||||||||||
Additions | ||||||||||||||||||
Description | Beginning Balance at 01/01/14 | Charges to costs and expenses | Charges to other accounts | Deductions | Ending Balance at 12/31/2014 | |||||||||||||
Allowance for losses on receivables | $ | 9.1 | $ | 2.5 | $ | - | $ | 2.9 | (a) | $ | 8.7 | |||||||
Valuation allowance for deferred tax asset | 121.2 | 33.3 | -5.4 | (b) | 14.2 | (c) | 134.9 | |||||||||||
Notes: | ||||||||||||||||||
(a) | Impact of foreign exchange of $0.5 and write-off of bad debts of $2.4. | |||||||||||||||||
(b) | Impact of expired NOL’s of $(5.4). | |||||||||||||||||
(c) | Impact of foreign exchange. | |||||||||||||||||
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. | |||||||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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 makes informed judgments and estimates that affect the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Management evaluates its estimates and related assumptions regularly, including those related to fair values, allowance for losses on receivables, depreciation and amortization, inventory adjustments related to lower of cost or market, the carrying value and estimated useful lives of long-lived assets, valuation of assets including goodwill and other intangible assets, product warranties, sales allowances, taxes, pensions, postemployment benefits, stock-based compensation, stage of completion and ultimate profitability for certain long-term revenue contracts accounted for under the percentage of completion method, contract losses, penalties, environmental contingencies, product liability, self-insurance programs and other contingencies (including purchase price contingencies). Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. | |||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||
Fair value, as defined in U.S. GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). U.S. GAAP classifies the inputs used to measure fair value into the following hierarchy: | |||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | ||||||||
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | ||||||||
Level 3 | Unobservable inputs for the asset or liability | ||||||||
Recurring Fair Value Measurements — Fair values of the Company’s cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and customer advance payments approximate their carrying values due to the short-term nature of these instruments. The Company’s financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||
Nonrecurring Fair Value Measurements — Fair value measurements were applied with respect to the Company’s nonfinancial assets and liabilities measured on a nonrecurring basis, which consists primarily of intangible assets, other long-lived assets and other assets acquired and liabilities assumed, including contingent consideration, related to purchased businesses in business combinations and impairments. | |||||||||
Fair Value of Financial Instruments — Recurring fair value measurement of financial instruments consist principally of foreign currency derivatives, an interest rate swap 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 | Level 3 inputs are more fully described in Note 3. | |||||
Impairment of long-lived assets | Note 7 | Level 3 | Not applicable | Level 3 inputs are more fully described in Note 7. | |||||
Long-term debt (disclosure only) | Note 11 | Level 2 | Quoted prices in markets that are not active | Not applicable | |||||
Financial derivatives | Note 14 | Level 2 | Quoted prices of similar assets or liabilities in active markets | Not applicable | |||||
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 $3.3 and $8.1 at December 31, 2014 and 2013, 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, 2014, 2013 and 2012, respectively. | |||||||||
Capitalized Software | Capitalized Software | ||||||||
The Company capitalizes computer software for internal use following the guidelines established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. The amounts capitalized were not material for the years ended December 31, 2014, 2013 and 2012, 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 and 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 referenced above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. | |||||||||
In 2014, the Company chose not to perform a qualitative analysis, but rather utilized a quantitative impairment test for both its reporting units. 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. | |||||||||
In the quantitative test, the Company determines the fair value of its reporting units by weighting the results from the income approach (discounted cash flow method) and the market approach (guideline public company method). 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, future market conditions and comparable multiples from publicly traded companies in our industry, 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). | |||||||||
Under the guideline public company method, the Company determines fair value based on earnings multiples from publicly traded companies within our industry with economic prospects similar to each reporting unit. The selected multiples consider each reporting unit’s relative growth, profitability, size and risk relative to the selected guideline public companies. | |||||||||
The following table presents the significant estimates used by management in determining the fair value of the Company’s reporting units at August 31, 2014: | |||||||||
Years of cash flows before terminal value | 5 | ||||||||
Terminal growth rate | 2.4% | ||||||||
Weighted average cost of capital | 9.5% | ||||||||
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 reporting units, 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. | |||||||||
As a result of the decline in oil prices during the fourth quarter of 2014, the Company evaluated the likelihood that goodwill had fallen below the carrying value of any of its reporting units. Due to the offer price in the proposed merger with Siemens, described further in Note 1, the Company believes it is more-likely-than-not that the fair value of the reporting units is greater than their carrying value. | |||||||||
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 unrecognized tax positions 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. 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, where multiple products and/or services are involved. Products involved in multiple-element arrangements may include centrifugal compressors, gas turbines, power turbines, power recovery expanders, reciprocating compressors, steam turbines and engines. Our typical arrangement includes one of our classes of compressors and a driver (e.g., a motor, turbine or an engine). In addition to our products, we perform installation and commissioning, training, and other services, and we purchase any number of standard or engineered items from third parties (“buyouts”) that support the application in which our equipment is being used. Generally, buyouts, installation and commissioning, training and each of our products listed above are considered separate deliverables for a number of reasons, including the following: | |||||||||
· | Clients would purchase each of those products or services apart from other products or services; | ||||||||
· | The products and services being provided are at the request of the client and for the client’s sole benefit, apart from any other product or service in the transaction; | ||||||||
· | The other deliverables can be performed without the service or product in question being performed or delivered; | ||||||||
· | Contractual payments are typically tied to the delivery or performance of the specific product or service; | ||||||||
· | The skills or equipment required to perform the services are readily available in the marketplace; and | ||||||||
· | Clients attribute significant value to each product or service. | ||||||||
These contracts generally can take fifteen months or more to complete, but occasionally may take longer. The timing between the first deliverable and the last deliverable is generally three to twelve months, and services are typically delivered last. | |||||||||
Because the aforementioned separate deliverables have value to the client on a stand-alone basis, they are typically considered separate units of accounting. The entire contract value is allocated to each unit of accounting. Revenue allocated to products is recognized upon delivery, while revenue allocated to services is recognized when the service is performed. 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 (“VSOE”). | ||||||||
· | Third-party evidence (“TPE”), if vendor-specific objective evidence is not available. | ||||||||
· | Estimated selling price (“ESP”), 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. | ||||||||
In substantially all of our multi-element arrangements, we use ESP to allocate arrangement consideration. We determine ESP based on our normal pricing and discounting practices. In determining ESP, we apply significant judgment as we weigh a variety of factors, based on the facts of the arrangement. We typically arrive at an ESP by considering client and entity-specific factors such as existing pricing, price discounts, geographies, competition, internal costs and profitability objectives. | |||||||||
Our sales arrangements do not include a general right of return of the delivered unit(s). In certain cases, the cancellation terms of a contract provide us with the opportunity to bill for certain incurred costs and penalties. | |||||||||
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. | |||||||||
It is uncommon for the Company to have material contract scope adjustments that impact the selling price for specific units of accounting that would result in material changes in the allocation of the selling price. In the event of such an adjustment, we apply the change in the allocation of the selling price to the units of accounting that are not yet delivered. As our business and offerings evolve over time, our pricing practices may be required to be modified accordingly, which could result in changes in selling prices in subsequent periods. Historically, there have been no material impacts, nor do we currently expect material impacts in the next twelve months, on our revenue recognition due to changes in our VSOE, TPE or ESP. | |||||||||
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 FASB ASC 605-35 — Provision for Losses on 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 3.5%, 6.5% and 0.8% of consolidated revenues for the years ended December 31, 2014, 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. 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. 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. | |||||||||
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 a sale or transfer which results in a complete or substantially complete liquidation of the foreign entity. 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 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 statement of income 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 statement of income 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, 2014 and 2013, 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 FASB 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. | |||||||||
New Accounting Standards | New Accounting Standards | ||||||||
Effective January 1, 2014, the Company adopted FASB Accounting Standards Update (“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 adoption of ASU 2013-04 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
Effective January 1, 2014, the Company adopted FASB 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 — Overall, and Subtopic 830-30, Foreign Currency Matters — Translation of Financial Statements, 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 adoption of ASU 2013-05 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
Effective January 1, 2014, the Company adopted FASB 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 the settlement of the deferred tax asset 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 adoption of ASU 2013-11 did not have a material impact on the Company’s consolidated financial statements. | |||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, disposals representing a strategic shift in operations should be presented as discontinued operations. Additionally, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. The amendments in ASU 2014-08 are effective prospectively for all disposals (or classifications as held for sale) of components of an entity, and for all businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early application not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The Company is currently evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”). The amendments in ASU 2014-10 remove an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity. The revised consolidation standards are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted. Companies may use either a prospective or a retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. | |||||||||
In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). The amendments in ASU 2015-01eliminate from U.S. GAAP the concept of extraordinary items. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Companies may use either a prospective or a retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use. The adoption of ASU 2015-01 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). The amendments in ASU 2015-02 change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this ASU using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The adoption of ASU 2015-02 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 2014 presentation, herein. | |||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Summary Of Significant Accounting Policies [Abstract] | |||
Inputs used in determining fair value of reporting unit | |||
Years of cash flows before terminal value | 5 | ||
Terminal growth rate | 2.4% | ||
Weighted average cost of capital | 9.5% | ||
Acquisitions_And_Other_Investm1
Acquisitions And Other Investments (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Ramgen Power Systems LLC. [Member] | |||
Business Acquisition [Line Items] | |||
Schedule Of Acquisition Price Allocation | |||
8-Aug-14 | |||
Property, plant and equipment | $ | 10.0 | |
Intangible assets | 14.4 | ||
Deferred tax liabilities, net | -3.9 | ||
Net assets acquired | 20.5 | ||
Fair value of previous equity interest | -10.3 | ||
Fair value of consideration: | |||
Cash | -1 | ||
Contingent consideration (non-cash) | -2.6 | ||
Value of net assets acquired in excess of fair value of consideration | $ | 6.6 | |
Synchrony, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Schedule Of Acquisition Price Allocation | |||
Synchrony | |||
2012 | |||
Cash and cash equivalents | $ | 0.1 | |
Accounts receivable | 2.1 | ||
Inventory | 1.5 | ||
Prepaid expenses | 0.1 | ||
Total current assets | 3.8 | ||
Property, plant and equipment | 2.2 | ||
Amortizable intangible assets | 22.9 | ||
Goodwill | 26.3 | ||
Other assets | 0.6 | ||
Total assets acquired | 55.8 | ||
Accounts payable and accruals | 2.6 | ||
Total liabilities assumed | 2.6 | ||
Purchase price | 53.2 | ||
Fair value of contingent consideration (non-cash) | -4.3 | ||
Cash acquired | -0.1 | ||
Cash paid | $ | 48.8 | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to Dresser-Rand | $ | 122.7 | $ | 168.4 | $ | 179.0 | ||||
Weighted-average common shares outstanding: | ||||||||||
(In thousands) | ||||||||||
Basic | 76,552 | 76,139 | 75,487 | |||||||
Dilutive effect of stock-based compensation awards | 657 | 687 | 789 | |||||||
Diluted | 77,209 | 76,826 | 76,276 | |||||||
Net income per share: | ||||||||||
Basic | $ | 1.60 | $ | 2.21 | $ | 2.37 | ||||
Diluted | $ | 1.59 | $ | 2.19 | $ | 2.35 | ||||
Costs_And_Estimated_Earnings_O1
Costs And Estimated Earnings On Uncompleted Contracts (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Costs And Estimated Earnings On Uncompleted Contracts [Abstract] | |||||||
Schedule Of Costs And Estimated Earnings In Excess Of Billings On Uncompleted Contracts | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Costs incurred on uncompleted contracts | $ | 276.8 | $ | 195.5 | |||
Estimated earnings | 70.4 | 52.4 | |||||
347.2 | 247.9 | ||||||
Less: billings to date | -347.8 | -162.7 | |||||
$ | -0.6 | $ | 85.2 | ||||
Costs and estimated earnings in excess of billings | $ | 18.4 | $ | 98.1 | |||
Billings in excess of costs and estimated earnings | -19 | -12.9 | |||||
$ | -0.6 | $ | 85.2 | ||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventory, Net [Abstract] | |||||||
Inventories | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Raw materials | $ | 92.1 | $ | 71.0 | |||
Finished parts | 284.9 | 262.4 | |||||
Work-in-process | 744.8 | 845.9 | |||||
1,121.8 | 1,179.3 | ||||||
Less: progress payments from clients | -452.8 | -463.3 | |||||
Inventories, net | $ | 669.0 | $ | 716.0 | |||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant And Equipment [Abstract] | |||||||
Property, Plant And Equipment | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Cost: | |||||||
Land | $ | 28.9 | $ | 33.1 | |||
Buildings and improvements | 248.8 | 261.4 | |||||
Machinery and equipment | 509.0 | 479.0 | |||||
786.7 | 773.5 | ||||||
Less: accumulated depreciation | -335.8 | -301.2 | |||||
Property, plant and equipment, net | $ | 450.9 | $ | 472.3 | |||
Conditional Asset Retirement Obligations | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Beginning balance | $ | - | $ | - | |||
Provisions | 4.6 | - | |||||
Adjustments | -1.1 | - | |||||
Effects of exchange rate changes | -0.6 | - | |||||
Ending balance | $ | 2.9 | $ | - | |||
Intangible_Assets_And_Goodwill1
Intangible Assets And Goodwill (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Intangible Assets And Goodwill [Abstract] | |||||||||||||||
Weighted Average Useful Life, Gross Amount And Accumulated Amortization Of Intangible Assets | |||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||
Cost | Accumulated Amortization | Weighted-Average Useful Lives | Cost | Accumulated Amortization | |||||||||||
Trade names | $ | 116.5 | $ | 27.5 | 36 years | $ | 120.0 | $ | 24.2 | ||||||
Customer relationships | 317.4 | 91.0 | 32 years | 333.2 | 79.4 | ||||||||||
Non-compete agreements | 4.8 | 4.8 | 3 years | 5.5 | 5.0 | ||||||||||
Existing technology | 171.7 | 64.6 | 23 years | 173.3 | 55.6 | ||||||||||
Contracts and purchase agreements | 9.1 | 1.6 | 11 years | 10.2 | 1.4 | ||||||||||
Software | 27.3 | 27.3 | 10 years | 28.7 | 26.3 | ||||||||||
In-process research and development | 14.4 | - | (a) | - | - | ||||||||||
Total amortizable intangible assets | $ | 661.2 | $ | 216.8 | $ | 670.9 | $ | 191.9 | |||||||
(a)Research and development intangible assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. | |||||||||||||||
Changes In Goodwill, In Total And By Segment | |||||||||||||||
Aftermarket | |||||||||||||||
Parts and | |||||||||||||||
New Units | Services | Total | |||||||||||||
Balance, December 31, 2012 | $ | 476.7 | $ | 434.6 | $ | 911.3 | |||||||||
Foreign currency adjustments | 11.7 | 4.6 | 16.3 | ||||||||||||
Balance, December 31, 2013 | 488.4 | 439.2 | 927.6 | ||||||||||||
Foreign currency adjustments | -54.2 | -40.5 | -94.7 | ||||||||||||
Balance, December 31, 2014 | $ | 434.2 | $ | 398.7 | $ | 832.9 | |||||||||
Accounts_Payable_And_Accruals_
Accounts Payable And Accruals (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounts Payable and Accruals [Abstract] | |||||||
Accounts Payable and Accruals | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Accounts payable | $ | 344.1 | $ | 404.5 | |||
Accruals: | |||||||
Payroll and benefits | 72.2 | 67.7 | |||||
Taxes other than income | 41.7 | 49.4 | |||||
Forward exchange contracts | 33.2 | 16.3 | |||||
Refundable payments related to cogeneration facilities | 28.5 | 22.3 | |||||
Third-party commissions | 20.9 | 21.4 | |||||
Warranties | 19.6 | 21.4 | |||||
Billings in excess of costs and estimated earnings | 19.0 | 12.9 | |||||
Interest | 10.9 | 11.8 | |||||
Insurance and claims | 7.8 | 7.2 | |||||
Legal, audit and consulting | 6.9 | 7.6 | |||||
Pension and post-retirement benefits | 4.6 | 4.5 | |||||
Major inventory purchases | - | 27.7 | |||||
Other | 44.4 | 54.4 | |||||
Total accounts payable and accruals | $ | 653.8 | $ | 729.1 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
Income Before Income Taxes | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | $ | 54.1 | $ | 98.7 | $ | 92.5 | |||||
Foreign | 131.5 | 158.8 | 183.2 | ||||||||
Total | $ | 185.6 | $ | 257.5 | $ | 275.7 | |||||
Provision for Income Tax | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current tax expense | |||||||||||
United States | $ | 26.5 | $ | 10.6 | $ | 30.7 | |||||
Foreign | 71.2 | 73.8 | 53.5 | ||||||||
Total current | 97.7 | 84.4 | 84.2 | ||||||||
Deferred tax (benefit) expense | |||||||||||
United States | -30.4 | 10.7 | 9.0 | ||||||||
Foreign | -6.1 | -6.9 | -0.4 | ||||||||
Total deferred | -36.5 | 3.8 | 8.6 | ||||||||
Total provision for income taxes | $ | 61.2 | $ | 88.2 | $ | 92.8 | |||||
Provision for Income Tax Difference | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
(Decrease) increase in rates resulting from: | |||||||||||
Foreign operations, including impact of foreign tax credits | -20.3 | -12.6 | -4.2 | ||||||||
State and local income taxes, net of U.S. tax | 0.9 | 1.2 | 1.1 | ||||||||
Valuation allowances | 17.0 | 9.1 | 1.9 | ||||||||
Spanish tariff regulations valuation allowance | 2.0 | 5.0 | - | ||||||||
Export / manufacturing deductions | -0.8 | -0.8 | -0.9 | ||||||||
Qualifying advanced energy credit | - | - | -0.3 | ||||||||
Research and experimentation credit | -0.6 | -2.6 | -0.2 | ||||||||
Other | -0.2 | -0.1 | 1.3 | ||||||||
Effective tax rate | 33.0 | % | 34.2 | % | 33.7 | % | |||||
Reconciliation of Beginning and Ending Unrecognized Tax Benefits Associated with Uncertain Tax Positions | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 18.7 | $ | 14.3 | $ | 13.8 | |||||
Increases based on tax positions related to current year | 3.2 | 3.5 | 0.8 | ||||||||
(Decreases) increases based on tax positions related to prior years | -0.8 | 2.1 | 1.3 | ||||||||
Settlements | - | -1.2 | -1.6 | ||||||||
Lapse in statute of limitations | -1.1 | -0.5 | -0.2 | ||||||||
Foreign currency adjustments | -1.4 | 0.5 | 0.2 | ||||||||
Ending balance | $ | 18.6 | $ | 18.7 | $ | 14.3 | |||||
Tax Years Remaining Subject to Examination by Major Tax Jurisdiction | |||||||||||
Jurisdiction | Open Years | ||||||||||
Brazil | 2009 - 2014 | ||||||||||
Canada | 2009 - 2014 | ||||||||||
France | 2013 - 2014 | ||||||||||
Germany | 2010 - 2014 | ||||||||||
India | 2005 - 2014 | ||||||||||
Italy | 2009 - 2014 | ||||||||||
Malaysia | 2007 - 2014 | ||||||||||
Netherlands | 2011 - 2014 | ||||||||||
Nigeria | 2010 - 2014 | ||||||||||
Norway | 2006 - 2014 | ||||||||||
Spain | 2010 - 2014 | ||||||||||
United Kingdom | 2008 - 2014 | ||||||||||
United States | 2011 - 2014 | ||||||||||
Venezuela | 2010 - 2014 | ||||||||||
Summary of Tax Effect of Temporary Differences that Create Deferred Tax Accounts | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | $ | 116.3 | $ | 118.5 | |||||||
Deferred tax assets | |||||||||||
Investment, research and experimentation and other credit carryforward, net | $ | -28.1 | $ | -30.8 | |||||||
Inventories and receivables | -21.4 | -21.1 | |||||||||
Foreign tax credit carryforward | -13.2 | -4.7 | |||||||||
Other accrued expenses and benefits | -34.8 | -12 | |||||||||
Tax net operating loss carryforwards | -117.7 | -107.2 | |||||||||
Pension and employee benefits | -57.7 | -41.9 | |||||||||
Total deferred tax assets | -272.9 | -217.7 | |||||||||
Valuation allowances | 134.9 | 121.2 | |||||||||
Net deferred tax assets | -138 | -96.5 | |||||||||
Total net deferred tax (asset) liability | $ | -21.7 | $ | 22.0 | |||||||
Presented on the consolidated balance sheet as: | |||||||||||
Current deferred tax assets | $ | -66.8 | $ | -25.2 | |||||||
Current deferred tax liabilities | 2.2 | 3.6 | |||||||||
Noncurrent deferred tax assets | -5.5 | -11.8 | |||||||||
Noncurrent deferred tax liabilities | 48.4 | 55.4 | |||||||||
Total net deferred tax (asset) liability | $ | -21.7 | $ | 22.0 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-Term Debt [Abstract] | |||||||||||||
Long-Term Debt | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Amended Credit Facility | $ | 693.7 | $ | 884.5 | |||||||||
6½% Senior Subordinated Notes due May 2021 | 375.0 | 375.0 | |||||||||||
Bank overdraft facility | - | 4.6 | |||||||||||
Other indebtedness | 15.0 | 22.9 | |||||||||||
Total debt | 1,083.7 | 1,287.0 | |||||||||||
Less: current portion | -30.1 | -40.1 | |||||||||||
Total long-term debt | $ | 1,053.6 | $ | 1,246.9 | |||||||||
Schedule Of Debt Maturities | |||||||||||||
2015 | $ | 30.1 | |||||||||||
2016 | 20.7 | ||||||||||||
2017 | 20.6 | ||||||||||||
2018 | 634.3 | ||||||||||||
2019 | - | ||||||||||||
Thereafter | 378.0 | ||||||||||||
$ | 1,083.7 | ||||||||||||
Carrying And Fair Values Of Senior Subordinated Notes | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
6½% senior subordinated notes due May 2021 | $ | 375.0 | $ | 401.7 | $ | 375.0 | $ | 400.5 | |||||
Pension_Plans_Tables
Pension Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||||||||
Schedule Of Pension Plans With Accumulated Benefit Obligations in Excess Of Plan Assets | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Projected benefit obligation | $ | 309.7 | $ | 286.1 | $ | 21.8 | $ | 31.1 | ||||||||||
Accumulated benefit obligation | 309.7 | 286.1 | 16.2 | 27.1 | ||||||||||||||
Fair value of plan assets | 244.5 | 247.0 | 1.9 | 11.2 | ||||||||||||||
Schedule Of Asset Allocations By Category | ||||||||||||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||||
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 | $ | 2.8 | $ | - | $ | 2.8 | $ | - | ||||||||||
U.S. large-cap equities | 20.2 | 20.2 | - | - | ||||||||||||||
U.S. small-cap value equities | 20.2 | 20.2 | - | - | ||||||||||||||
U.S. small-cap growth equities | 31.9 | 26.9 | 5.0 | - | ||||||||||||||
International equities | 35.4 | - | 35.4 | - | ||||||||||||||
U.S. fixed income (1) | 85.8 | 73.8 | 12.0 | - | ||||||||||||||
Global asset allocations (2) | 48.2 | 23.6 | 24.6 | - | ||||||||||||||
Total | $ | 244.5 | $ | 164.7 | $ | 79.8 | $ | - | ||||||||||
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 | $ | - | ||||||||||
(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, 2014 | ||||||||||||||||||
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 | $ | 0.3 | $ | - | $ | 0.3 | $ | - | ||||||||||
U.S. equities | 10.6 | - | 10.6 | - | ||||||||||||||
International equities | 55.2 | - | 55.2 | - | ||||||||||||||
International fixed income (1) | 43.8 | - | 43.8 | - | ||||||||||||||
Insurance contracts (2) | 13.5 | - | - | 13.5 | ||||||||||||||
Total | $ | 123.4 | $ | - | $ | 109.9 | $ | 13.5 | ||||||||||
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 | ||||||||||
(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 Of Plan Assets | ||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Beginning balance | $ | 12.7 | $ | 29.5 | ||||||||||||||
Actual return on assets | 2.1 | 0.1 | ||||||||||||||||
Company contributions | 0.5 | 12.6 | ||||||||||||||||
Foreign exchange | -0.7 | -2.5 | ||||||||||||||||
Benefit payments | -0.2 | -1.2 | ||||||||||||||||
Settlements | -0.9 | -25.8 | ||||||||||||||||
Ending balance | $ | 13.5 | $ | 12.7 | ||||||||||||||
Pension Plans [Member] | ||||||||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||||||||
Information Regarding Pension Plans | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Change in projected benefit obligations | ||||||||||||||||||
Benefit obligation at beginning of the period | $ | 286.0 | $ | 314.2 | $ | 138.3 | $ | 159.8 | ||||||||||
Service cost | 3.6 | 3.8 | 2.4 | 5.6 | ||||||||||||||
Interest cost | 13.2 | 11.6 | 5.5 | 6.4 | ||||||||||||||
Employee contributions | - | - | 0.1 | 0.2 | ||||||||||||||
Expenses paid | -1 | -1 | -0.1 | -0.1 | ||||||||||||||
Actuarial loss (gain) | 34.1 | -28.8 | 11.1 | 17.2 | ||||||||||||||
Curtailment / settlement | - | - | -1.3 | -43.4 | ||||||||||||||
Plan amendments | 2.3 | 0.9 | - | - | ||||||||||||||
Benefits paid | -28.5 | -14.7 | -5.5 | -6.3 | ||||||||||||||
Foreign currency adjustments | - | - | -9.5 | -1.1 | ||||||||||||||
Benefit obligation at end of the period | $ | 309.7 | $ | 286.0 | $ | 141.0 | $ | 138.3 | ||||||||||
Change in plan assets | ||||||||||||||||||
Fair value at beginning of the period | $ | 246.9 | $ | 219.2 | $ | 117.8 | $ | 130.9 | ||||||||||
Actual return on assets | 18.2 | 31.9 | 13.8 | 10.0 | ||||||||||||||
Settlements | - | - | -1.3 | -26.8 | ||||||||||||||
Company contributions | 8.9 | 11.5 | 6.1 | 10.1 | ||||||||||||||
Employee contributions | - | - | 0.1 | 0.2 | ||||||||||||||
Expenses paid | -1 | -1 | -0.1 | -0.1 | ||||||||||||||
Benefits paid | -28.5 | -14.7 | -5.5 | -6.3 | ||||||||||||||
Foreign currency adjustments | - | - | -7.5 | -0.2 | ||||||||||||||
Fair value of assets at end of the period | $ | 244.5 | $ | 246.9 | $ | 123.4 | $ | 117.8 | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||||
Current liabilities | $ | 0.6 | $ | 0.6 | $ | 1.7 | $ | 1.7 | ||||||||||
Noncurrent liabilities | 64.6 | 38.5 | 16.2 | 18.8 | ||||||||||||||
Total balance sheet liability | $ | 65.2 | $ | 39.1 | $ | 17.9 | $ | 20.5 | ||||||||||
Amounts recognized in accumulated other | ||||||||||||||||||
comprehensive loss consists of: | ||||||||||||||||||
Cumulative net actuarial loss | $ | 84.2 | $ | 52.6 | $ | 21.2 | $ | 18.0 | ||||||||||
Cumulative prior service cost | 2.9 | 0.8 | 0.9 | 1.0 | ||||||||||||||
Total | $ | 87.1 | $ | 53.4 | $ | 22.1 | $ | 19.0 | ||||||||||
Components Of Net Pension Expense And Amounts Recognized In Comprehensive Income | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Net pension expense | ||||||||||||||||||
Service cost | $ | 3.6 | $ | 3.8 | $ | 3.8 | $ | 2.4 | $ | 5.6 | $ | 5.3 | ||||||
Interest cost | 13.2 | 11.6 | 12.8 | 5.5 | 6.4 | 6.7 | ||||||||||||
Expected return on plan assets | -18.5 | -16.1 | -14.9 | -6.5 | -6.9 | -6.9 | ||||||||||||
Amortization of net actuarial loss | 2.8 | 7.8 | 7.2 | 0.3 | 0.4 | 0.6 | ||||||||||||
Curtailment / settlement | - | - | - | 0.4 | -3.6 | - | ||||||||||||
Amortization of prior service cost | 0.3 | - | 0.3 | - | 0.1 | -0.1 | ||||||||||||
Net pension expense | 1.4 | 7.1 | 9.2 | 2.1 | 2.0 | 5.6 | ||||||||||||
Amounts recognized in other | ||||||||||||||||||
comprehensive (income) loss | ||||||||||||||||||
Net actuarial loss (gain) | 34.4 | -44.5 | 16.7 | 3.5 | 14.0 | 2.1 | ||||||||||||
Prior service cost | 2.3 | 0.9 | - | - | - | - | ||||||||||||
Amortization of net actuarial loss | -2.8 | -7.8 | -7.2 | -0.3 | -0.4 | -0.6 | ||||||||||||
Curtailment / settlement | - | - | - | - | -13 | - | ||||||||||||
Amortization of prior service cost | -0.3 | - | -0.3 | - | -0.1 | 0.1 | ||||||||||||
Total recognized in other | ||||||||||||||||||
comprehensive loss (income) | 33.6 | -51.4 | 9.2 | 3.2 | 0.5 | 1.6 | ||||||||||||
Total recognized | $ | 35.0 | $ | -44.3 | $ | 18.4 | $ | 5.3 | $ | 2.5 | $ | 7.2 | ||||||
Schedule Of Weighted-Average Assumptions Used | ||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Weighted-average assumptions | ||||||||||||||||||
used for benefit obligations: | ||||||||||||||||||
Discount rate | 3.90 | % | 4.70 | % | 3.80 | % | 3.26 | % | 4.07 | % | 4.15 | % | ||||||
Rate of compensation increase | 0.13 | % | 0.13 | % | 0.13 | % | 2.16 | % | 2.58 | % | 2.51 | % | ||||||
Weighted-average assumptions | ||||||||||||||||||
used for net periodic pension cost: | ||||||||||||||||||
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 | % | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | 5.64 | % | 5.44 | % | 6.09 | % | ||||||
PostRetirement_Benefits_Other_1
Post-Retirement Benefits Other Than Pensions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||
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 | 1.4 | -1.2 | ||||||||||
Post-Retirement Benefits [Member] | ||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||
Information Regarding Pension Plans | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of the period | $ | 16.4 | $ | 19.6 | ||||||||
Interest cost | 0.7 | 0.8 | ||||||||||
Benefits paid | -0.8 | -0.6 | ||||||||||
Actuarial gains | -0.1 | -3.4 | ||||||||||
Unfunded benefit obligation at end of the period and consolidated balance sheet liability | $ | 16.2 | $ | 16.4 | ||||||||
Amounts recognized in the balance sheet: | ||||||||||||
Current liabilities | $ | 1.2 | $ | 1.3 | ||||||||
Noncurrent liabilities | 15.0 | 15.1 | ||||||||||
Total consolidated balance sheet liability | $ | 16.2 | $ | 16.4 | ||||||||
Amounts recognized in accumulated other comprehensive income: | ||||||||||||
Cumulative net actuarial loss | $ | 1.8 | $ | 1.9 | ||||||||
Cumulative net prior service credit | -0.6 | -0.6 | ||||||||||
Total | $ | 1.2 | $ | 1.3 | ||||||||
Components Of Net Pension Expense And Amounts Recognized In Comprehensive Income | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net post-retirement benefits expense (income) | ||||||||||||
Interest cost | $ | 0.7 | $ | 0.8 | $ | 0.8 | ||||||
Amortization of | ||||||||||||
Net actuarial loss | - | 0.6 | 1.0 | |||||||||
Total post-retirement benefits expense | 0.7 | 1.4 | 1.8 | |||||||||
Amounts recognized as other comprehensive (income) loss | ||||||||||||
Net actuarial (gain) loss | -0.1 | -3.4 | 0.6 | |||||||||
Amortization of | ||||||||||||
Net actuarial loss | - | -0.6 | -1 | |||||||||
Total recognized in comprehensive (income) loss | -0.1 | -4 | -0.4 | |||||||||
Total recognized | $ | 0.6 | $ | -2.6 | $ | 1.4 | ||||||
Schedule Of Weighted-Average Assumptions Used | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 | ||||||||||||
Discount rate | 3.90 | % | 4.70 | % | 3.80 | % | ||||||
Measurement date | 12/31/14 | 12/31/13 | 12/31/12 | |||||||||
Weighted-average assumptions used to determine net periodic benefit expense (income) for the years ended December 31 | ||||||||||||
Discount rate | 4.70 | % | 3.80 | % | 4.60 | % | ||||||
Measurement date | 12/31/13 | 12/31/12 | 12/31/11 | |||||||||
Assumed health care cost trend rates | ||||||||||||
Current year trend rate | 7.20 | % | 7.70 | % | 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 | 2034 | |||||||||
Net periodic benefit cost for the year | 2034 | 2034 | 2033 | |||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Financial Instruments [Abstract] | |||||||
Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Foreign currency exchange contracts assets | $ | 10.1 | $ | 5.4 | |||
Foreign currency exchange contracts liabilities | $ | 33.2 | $ | 16.3 | |||
Warranties_Tables
Warranties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Warranties [Abstract] | |||||||||
Changes In Product Warranty Liability | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Beginning balance | $ | 21.4 | $ | 20.1 | $ | 25.6 | |||
Provision for warranties issued during period | 14.7 | 19.9 | 17.3 | ||||||
Adjustments to warranties issued in prior periods | 2.4 | 2.2 | -2.9 | ||||||
Payments during the period | -17.6 | -19.6 | -19.8 | ||||||
Foreign currency adjustments | -1.3 | -1.2 | -0.1 | ||||||
Ending balance | $ | 19.6 | $ | 21.4 | $ | 20.1 | |||
Incentive_StockBased_Compensat1
Incentive Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Incentive Stock-Based Compensation Plans [Abstract] | |||||||||
Summary of Option and Stock Appreciation Right Activity | |||||||||
Shares | Weighted-Average Exercise Price | ||||||||
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 | ||||||
Granted | 290,354 | $ | 59.38 | ||||||
Exercised | -157,373 | $ | 29.07 | ||||||
Forfeited | -24,923 | $ | 57.53 | ||||||
Expired | -6,671 | $ | 35.66 | ||||||
Balance, December 31, 2014 | 1,567,197 | $ | 40.57 | ||||||
Exercisable December 31, 2012 | 1,103,694 | $ | 26.27 | ||||||
Exercisable December 31, 2013 | 1,112,189 | $ | 28.73 | ||||||
Exercisable December 31, 2014 | 1,106,160 | $ | 32.77 | ||||||
Weighted-Average Grant Date Assumptions Used to Estimate Fair Value of Options and Stock Appreciation Rights Granted | |||||||||
2014 | 2013 | 2012 | |||||||
Option term (years) | 3.9 | 5.0 | 5.0 | ||||||
Volatility | 29.1 | % | 38.4 | % | 45.4 | % | |||
Risk-free interest rate (zero coupon U.S. Treasury note) | 1.12 | % | 0.92 | % | 0.81 | % | |||
Dividend yield | - | - | - | ||||||
Summary of Employee Shares and Share Units Activity and Grant Date Fair Value | |||||||||
Shares | Weighted-Average Grant Price | ||||||||
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 | ||||||
Granted | 410,433 | $ | 59.09 | ||||||
Vested | -286,568 | $ | 59.37 | ||||||
Forfeited | -46,803 | $ | 58.61 | ||||||
Nonvested at December 31, 2014 | 732,080 | $ | 58.88 | ||||||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Expense, Net [Abstract] | |||||||||
Other Expense, Net | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Foreign currency losses | $ | -21.6 | $ | -0.8 | $ | -9 | |||
(Loss) gain on forward exchange contracts | -14.3 | -14.7 | 7.9 | ||||||
Net loss from equity investments | -15.8 | -5.6 | -2.1 | ||||||
Realized gains of deferred compensation plan | -2.1 | -1.4 | -0.9 | ||||||
Unrealized gain of deferred compensation plan | -4.3 | -2.7 | -1.2 | ||||||
Deferred compensation expense due to changes in fair value | 6.4 | 4.1 | 2.1 | ||||||
Other miscellaneous income | 1.0 | 4.5 | 3.2 | ||||||
Total other expense, net | $ | -50.7 | $ | -16.6 | $ | - | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) ("AOCI") [Abstract] | |||||||||||||
Changes In Accumulated Other Comprehensive Income (Loss) By Component | |||||||||||||
Foreign | Pension and | ||||||||||||
Currency | Unrealized | Other | |||||||||||
Translation | (Loss) Gain on | Post-Retirement | |||||||||||
Adjustments | Derivatives | Benefit Plans | Total | ||||||||||
At December 31, 2013 | $ | -69.5 | $ | -0.4 | $ | -48.9 | $ | -118.8 | |||||
Other comprehensive loss before reclassifications | -123.2 | - | - | -123.2 | |||||||||
Amounts reclassified from AOCI | - | 0.3 | -22.9 | -22.6 | |||||||||
Net current period other comprehensive (loss) income | -123.2 | 0.3 | -22.9 | -145.8 | |||||||||
At December 31, 2014 | $ | -192.7 | $ | -0.1 | $ | -71.8 | $ | -264.6 | |||||
During the year ended December 31, 2014, foreign currency translation adjustments in accumulated other comprehensive loss were $(123.2), primarily due to the weakening of the euro of approximately 12.0%. | |||||||||||||
Foreign | Pension and | ||||||||||||
Currency | Unrealized | Other | |||||||||||
Translation | (Loss) Gain on | Post-Retirement | |||||||||||
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 | |||||||||||||
Year Ended December 31, | Affected Line Item in the Consolidated | ||||||||||||
Details About AOCI Components | 2014 | 2013 | Statement of Income | ||||||||||
Unrealized gain on derivatives | $ | -0.5 | $ | -0.4 | Interest expense, net | ||||||||
0.2 | 0.1 | Provision for income taxes | |||||||||||
$ | -0.3 | $ | -0.3 | Net of tax | |||||||||
Pension and other postretirement benefit plans | |||||||||||||
Amortization of net actuarial loss | $ | -3.4 | $ | -8.9 | (a) | ||||||||
Recognized net actuarial loss (gain) | 37.8 | -33.9 | (a) | ||||||||||
Gain from curtailment / settlement | - | -13 | (a) | ||||||||||
Benefit plan amendments | 2.3 | 0.9 | (a) | ||||||||||
Total before tax | 36.7 | -54.9 | Income before income taxes | ||||||||||
-13.8 | 21.1 | Provision for income taxes | |||||||||||
$ | 22.9 | $ | -33.8 | Net of tax | |||||||||
Total reclassifications, net of tax | $ | 22.6 | $ | -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, 2014 | ||||||||||
Segment Information [Abstract] | ||||||||||
Segment Results | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues | ||||||||||
New units | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Aftermarket parts and services | 1,391.8 | 1,508.5 | 1,434.8 | |||||||
Total revenues | $ | 2,811.7 | $ | 3,032.6 | $ | 2,736.4 | ||||
Income from operations | ||||||||||
New units | $ | 111.5 | $ | 140.3 | $ | 117.9 | ||||
Aftermarket parts and services | 299.4 | 295.7 | 323.2 | |||||||
Unallocable | -122.6 | -115 | -105.2 | |||||||
Total income from operations | $ | 288.3 | $ | 321.0 | $ | 335.9 | ||||
Depreciation and amortization | ||||||||||
New units | $ | 44.0 | $ | 45.0 | $ | 44.3 | ||||
Aftermarket parts and services | 48.3 | 47.3 | 41.2 | |||||||
Total depreciation and amortization | $ | 92.3 | $ | 92.3 | $ | 85.5 | ||||
External revenues by products and services | ||||||||||
New units: | ||||||||||
Products | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Total | $ | 1,419.9 | $ | 1,524.1 | $ | 1,301.6 | ||||
Aftermarket parts and services: | ||||||||||
Products | $ | 673.1 | $ | 695.7 | $ | 623.5 | ||||
Services | 718.7 | 812.8 | 811.3 | |||||||
Total | $ | 1,391.8 | $ | 1,508.5 | $ | 1,434.8 | ||||
Revenues by destination | ||||||||||
United States | $ | 840.6 | $ | 854.1 | $ | 828.0 | ||||
Canada | 66.7 | 73.9 | 73.5 | |||||||
North America | 907.3 | 928.0 | 901.5 | |||||||
Latin America | 446.2 | 428.3 | 445.7 | |||||||
Europe | 673.2 | 796.6 | 680.1 | |||||||
Asia-Pacific, Southern Asia | 414.4 | 520.8 | 422.8 | |||||||
Middle East, Africa | 370.6 | 358.9 | 286.3 | |||||||
Total revenues | $ | 2,811.7 | $ | 3,032.6 | $ | 2,736.4 | ||||
Total assets by segment were as follows: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Goodwill | ||||||||||
New units | $ | 434.2 | $ | 488.4 | ||||||
Aftermarket parts and services | 398.7 | 439.2 | ||||||||
Total goodwill | $ | 832.9 | $ | 927.6 | ||||||
Total assets (including goodwill) | ||||||||||
New units | $ | 1,080.2 | $ | 1,113.8 | ||||||
Aftermarket parts and services | 1,270.6 | 1,305.0 | ||||||||
Unallocable | 1,137.9 | 1,319.0 | ||||||||
Total assets | $ | 3,488.7 | $ | 3,737.8 | ||||||
Long-lived assets by geographic area | ||||||||||
United States | $ | 185.5 | $ | 177.2 | ||||||
Canada | 1.7 | 2.6 | ||||||||
North America | 187.2 | 179.8 | ||||||||
Latin America | 83.9 | 94.0 | ||||||||
Europe | 113.8 | 140.2 | ||||||||
Asia-Pacific, Southern Asia | 17.0 | 18.0 | ||||||||
Middle East, Africa | 49.0 | 40.3 | ||||||||
Total long-lived assets | $ | 450.9 | $ | 472.3 | ||||||
Selected_Unaudited_Quarterly_F1
Selected Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Selected Unaudited Quarterly Financial Data [Abstract] | ||||||||||||
Selected Unaudited Quarterly Financial Data | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Total revenues | $ | 699.1 | $ | 628.4 | $ | 683.8 | $ | 800.4 | ||||
Gross profit | 147.4 | 178.5 | 182.2 | 220.6 | ||||||||
Net income attributable to Dresser-Rand | 16.6 | 29.1 | 30.8 | 46.2 | ||||||||
Net income per share | ||||||||||||
Basic | 0.22 | 0.38 | 0.40 | 0.60 | ||||||||
Diluted | 0.22 | 0.38 | 0.40 | 0.60 | ||||||||
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 | ||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||
Supplemental Cash Flow Information | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Cash paid for interest, net of capitalized interest | $ | 52.8 | $ | 54.1 | $ | 59.1 | |||
Cash paid for income taxes, net of refunds | 94.0 | 80.8 | 56.9 | ||||||
Schedule of Noncash Investing and Financing Activities(1): | |||||||||
Assets acquired in acquisition | $ | 24.4 | $ | - | $ | 55.8 | |||
Liabilities assumed in acquisition | 3.9 | - | 2.6 | ||||||
(1) See Note 3 for additional discussion of the Company’s acquisitions. | |||||||||
Business_Activities_Narrative_
Business Activities (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Cash paid, per share | $83 |
Transaction-related expenses | $15.40 |
Preferred shares authorized | 1,000,000 |
Preferred shares, par value per share | $0.01 |
Dividend declared, number of rights | 1 |
Number of shares issuable per right | 0.01 |
Exercise price per right | $300 |
Beneficial ownership, qualifying percentage | 10.00% |
Exercise price of rights, prior to flip-in-event | $0.01 |
Scenario, Forecast [Member] | |
Cash paid, per share | $0.55 |
Triggering Event One [Member] | |
Period from triggering event from which rights are exercisable | 10 days |
Beneficial ownership, qualifying percentage | 10.00% |
Triggering Event Two [Member] | |
Period from triggering event from which rights are exercisable | 10 days |
Beneficial ownership, qualifying percentage | 10.00% |
Triggering Event Three [Member] | |
Beneficial ownership, qualifying percentage | 10.00% |
Percentage increase by previous owner triggering rights exercisability | 1.00% |
Exercise price of rights as percentage of market price | 50.00% |
Triggering Event Four [Member] | |
Beneficial ownership, qualifying percentage | 10.00% |
Exercise price of rights as percentage of market price | 50.00% |
Flip-over event, percent qualification | 50.00% |
Recovered_Sheet1
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Restricted cash, sinking fund requirements | $3.30 | $8.10 | |
Allowance for losses on receivable 360 days past due, percentage | 100.00% | ||
Years Of Cash Flows Before Terminal Value | 5 | ||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.40% | ||
Fair Value Inputs, Discount Rate | 9.50% | ||
Period to complete multiple-element revenue arrangements | 15 months | ||
Percentage of completion, consolidated revenues percentage | 3.50% | 6.50% | 0.80% |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Period to deliver items for multiple-element revenue arrangements | 3 months | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Period to deliver items for multiple-element revenue arrangements | 12 months | ||
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 [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 3 years | ||
Machinery And Equipment [Member] | 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) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 4-May-11 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jan. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Jan. 04, 2012 | Mar. 26, 2014 | Feb. 28, 2011 | Dec. 31, 2014 | Aug. 08, 2014 | Dec. 31, 2014 | Aug. 08, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2009 |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Bethel Holdco, LLC [Member] | Bethel Holdco, LLC [Member] | Dresser-Rand Arabia LLC [Member] | Minimum [Member] | Maximum [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Synchrony, Inc [Member] | Echogen Power Systems, LLC [Member] | Echogen Power Systems, LLC [Member] | Echogen Power Systems, LLC [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Ramgen Power Systems LLC. [Member] | Dresser-Rand Arabia LLC [Member] | |
USD ($) | USD ($) | USD ($) | Bethel Holdco, LLC [Member] | Bethel Holdco, LLC [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | In-process Research And Development [Member] | Royalty Agreements [Member] | Royalty Agreements [Member] | Minimum [Member] | Maximum [Member] | ||||||||
MW | USD ($) | Royalty Agreements [Member] | Royalty Agreements [Member] | |||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||
Prior equity interest | 42.20% | |||||||||||||||||||||||||||
Aggregate investment in Ramgen | $34.40 | |||||||||||||||||||||||||||
Remaining equity interest acquired | 57.80% | |||||||||||||||||||||||||||
Cash paid for acquisition | 1 | |||||||||||||||||||||||||||
Loss on acquisition | 11.7 | |||||||||||||||||||||||||||
Remeasurment loss | 18.3 | 18.3 | ||||||||||||||||||||||||||
Previous equity interest in Ramgen | 10.3 | |||||||||||||||||||||||||||
Fair value inputs, discount rate | 9.50% | 25.00% | 25.00% | |||||||||||||||||||||||||
Fair value inputs, royalty rate | 5.00% | 1.00% | 2.00% | |||||||||||||||||||||||||
Contingent consideration arrangement term | 15 years | |||||||||||||||||||||||||||
Potential purchase price adjustments | 124.5 | 10 | 44.5 | |||||||||||||||||||||||||
Gain (loss) on assets acquired | 6.6 | 6.6 | ||||||||||||||||||||||||||
Cash payment | 48.8 | 48.8 | 6.6 | |||||||||||||||||||||||||
Payments of contingent consideration | 4.7 | |||||||||||||||||||||||||||
Percentage of aggregate non-controlling interest owned | 5.70% | 33.90% | ||||||||||||||||||||||||||
Energy storage facility, power level | 317 | |||||||||||||||||||||||||||
Equity investment, cost | 5 | 2.5 | ||||||||||||||||||||||||||
Equity method investment, un-owned percentage | 94.30% | |||||||||||||||||||||||||||
Loan receivable, maximum commitment | 25 | |||||||||||||||||||||||||||
Loans receivable, interest rate | 8.00% | 16.00% | ||||||||||||||||||||||||||
Years until maturity of loan receivable | 8 years | |||||||||||||||||||||||||||
Loans receivable | 19.8 | |||||||||||||||||||||||||||
Equity method Investments | 4.8 | 14.2 | ||||||||||||||||||||||||||
Revenue from equity investment | -15.8 | -5.6 | -2.1 | 22.4 | 12.6 | |||||||||||||||||||||||
Minimum royalties that should be paid in first five years of commercialization | 6 | |||||||||||||||||||||||||||
Royalty guarantee term | 5 years | |||||||||||||||||||||||||||
Equity method investment, pledged funding | 1 | |||||||||||||||||||||||||||
Investment to acquire noncontrolling interest | 26.5 | |||||||||||||||||||||||||||
Ownership percentage in joint venture | 50.00% | |||||||||||||||||||||||||||
Assets | 3,488.70 | 3,737.80 | 56.5 | |||||||||||||||||||||||||
Liabilities | $2,182.50 | $2,436.40 | $84.80 | |||||||||||||||||||||||||
Business acquisition, ownership percentage | 100.00% |
Acquisitions_And_Other_Investm3
Acquisitions And Other Investments (Acquisition Price Allocated To Fair Values Of Assets Acquired And Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 04, 2012 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $832.90 | $927.60 | $911.30 | |
Synchrony, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0.1 | |||
Accounts receivable | 2.1 | |||
Inventory | 1.5 | |||
Prepaid expenses | 0.1 | |||
Total current assets | 3.8 | |||
Property, plant and equipment | 2.2 | |||
Amortizable intangible assets | 22.9 | |||
Goodwill | 26.3 | |||
Other assets | 0.6 | |||
Net assets acquired | 55.8 | |||
Accounts payable and accruals | 2.6 | |||
Total liabilities assumed | 2.6 | |||
Purchase price | 53.2 | |||
Fair value of consideration, Contingent consideration (non-cash) | -4.3 | |||
Cash acquired | -0.1 | |||
Value of net assets acquired in excess of fair value of consideration | $48.80 | $48.80 |
Acquisitions_And_Other_Investm4
Acquisitions And Other Investments (Schedule Of Acquisition Price Allocation) (Details) (Ramgen Power Systems LLC. [Member], USD $) | Aug. 08, 2014 |
In Millions, unless otherwise specified | |
Ramgen Power Systems LLC. [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment | $10 |
Amortizable intangible assets | 14.4 |
Deferred tax liabilities, net | -3.9 |
Net assets acquired | 20.5 |
Fair value of previous equity interest as partial consideration | -10.3 |
Fair value of consideration, Cash | -1 |
Fair value of consideration, Contingent consideration (non-cash) | -2.6 |
Value of net assets acquired in excess of fair value of consideration | $6.60 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Dresser-Rand | $46.20 | $30.80 | $29.10 | $16.60 | $32.80 | $49.40 | $53.30 | $32.90 | $122.70 | $168.40 | $179 |
Weighted-average common shares outstanding: | |||||||||||
Basic | 76,552 | 76,139 | 75,487 | ||||||||
Dilutive effect of stock-based compensation awards | 657 | 687 | 789 | ||||||||
Diluted | 77,209 | 76,826 | 76,276 | ||||||||
Net income per share: | |||||||||||
Basic | $0.60 | $0.40 | $0.38 | $0.22 | $0.43 | $0.65 | $0.70 | $0.43 | $1.60 | $2.21 | $2.37 |
Diluted | $0.60 | $0.40 | $0.38 | $0.22 | $0.43 | $0.64 | $0.69 | $0.43 | $1.59 | $2.19 | $2.35 |
Costs_And_Estimated_Earnings_O2
Costs And Estimated Earnings On Uncompleted Contracts (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Costs And Estimated Earnings On Uncompleted Contracts [Abstract] | ||
Costs incurred on uncompleted contracts | $276.80 | $195.50 |
Estimated earnings | 70.4 | 52.4 |
Costs incurred and estimated billings on uncompleted contracts | 347.2 | 247.9 |
Less: billings to date | -347.8 | -162.7 |
Net estimate billings on uncompleted contracts | -0.6 | 85.2 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 18.4 | 98.1 |
Billings in excess of costs and estimated earnings | ($19) | ($12.90) |
Inventories_Net_Narrative_Deta
Inventories, Net (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Progress payments to suppliers included in work-in-process | $96 | $129 |
Allowance for obsolescence for slow-moving inventory | $38.40 | $30.70 |
Inventories_Net_Inventories_De
Inventories, Net (Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw materials | $92.10 | $71 |
Finished parts | 284.9 | 262.4 |
Work-in-process | 744.8 | 845.9 |
Inventories, gross | 1,121.80 | 1,179.30 |
Less: progress payments from clients | -452.8 | -463.3 |
Inventories, net | $669 | $716 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
property | ||||
Property, Plant And Equipment [Abstract] | ||||
Depreciation expense | $59.20 | $63.40 | $56.10 | |
Number of pig manure treatment facilities | 6 | |||
Power generation, percentage reduction in tariff | 38.00% | |||
Asset impairment charge | $40 |
Property_Plant_And_Equipment_P
Property, Plant And Equipment (Property, Plant And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $786.70 | $773.50 |
Less: accumulated depreciation | -335.8 | -301.2 |
Property, plant and equipment, net | 450.9 | 472.3 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 28.9 | 33.1 |
Building And Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 248.8 | 261.4 |
Machinery And Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $509 | $479 |
Property_Plant_And_Equipment_C
Property, Plant And Equipment (Conditional Asset Retirement Obligations) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Asset Retirement Obligation [Abstract] | |
Provisions | $4.60 |
Adjustments | -1.1 |
Effects of exchange rate changes | -0.6 |
Ending Balance | $2.90 |
Recovered_Sheet2
Intangible Assets and Goodwill (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets And Goodwill [Abstract] | |||
Intangible asset amortization expense | $33.10 | $28.90 | $29.40 |
2015 | 30.6 | ||
2016 | 30 | ||
2017 | 29.8 | ||
2018 | 29.4 | ||
2019 | $29.10 |
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, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $661.20 | $670.90 |
Accumulated Amortization | 216.8 | 191.9 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 116.5 | 120 |
Accumulated Amortization | 27.5 | 24.2 |
Weighted-Average Useful Lives | 36 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 317.4 | 333.2 |
Accumulated Amortization | 91 | 79.4 |
Weighted-Average Useful Lives | 32 years | |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4.8 | 5.5 |
Accumulated Amortization | 4.8 | 5 |
Weighted-Average Useful Lives | 3 years | |
Existing Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 171.7 | 173.3 |
Accumulated Amortization | 64.6 | 55.6 |
Weighted-Average Useful Lives | 23 years | |
Contracts And Purchase Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 9.1 | 10.2 |
Accumulated Amortization | 1.6 | 1.4 |
Weighted-Average Useful Lives | 11 years | |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 27.3 | 28.7 |
Accumulated Amortization | 27.3 | 26.3 |
Weighted-Average Useful Lives | 10 years | |
In-process Research And Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $14.40 |
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, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Beginning Balance | $927.60 | $911.30 |
Foreign currency adjustments | -94.7 | 16.3 |
Ending Balance | 832.9 | 927.6 |
New Units [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 488.4 | 476.7 |
Foreign currency adjustments | -54.2 | 11.7 |
Ending Balance | 434.2 | 488.4 |
Aftermarket Parts And Services [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 439.2 | 434.6 |
Foreign currency adjustments | -40.5 | 4.6 |
Ending Balance | $398.70 | $439.20 |
Recovered_Sheet3
Accounts Payable and Accruals (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accruals [Abstract] | ||
Accounts payable | $344.10 | $404.50 |
Accruals: | ||
Payroll and benefits | 72.2 | 67.7 |
Taxes other than income | 41.7 | 49.4 |
Forward exchange contracts | 33.2 | 16.3 |
Refundable payments related to cogeneration facilities | 28.5 | 22.3 |
Third-party commissions | 20.9 | 21.4 |
Warranties | 19.6 | 21.4 |
Billings in excess of costs and estimated earnings | 19 | 12.9 |
Interest | 10.9 | 11.8 |
Insurance and claims | 7.8 | 7.2 |
Legal, audit and consulting | 6.9 | 7.6 |
Pension and postretirement benefits | 4.6 | 4.5 |
Major inventory purchases | 27.7 | |
Other | 44.4 | 54.4 |
Total accounts payable and accruals | $653.80 | $729.10 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ||||
Unrecognized Tax Benefits | $18.60 | $18.70 | $14.30 | $13.80 |
Expense related to uncertain tax positions | 1.4 | |||
Accumulated undistributed foreign earnings | 431.9 | |||
Net operating loss carry forwards available to offset future taxable income in certain foreign subsidiaries | 414.5 | 371.1 | ||
Research and experimentation tax credits carried forward indefinitely | 28.1 | 30.8 | ||
Foreign tax credit | 13.2 | 4.7 | ||
Foreign tax credit, expiration period | 2024 | |||
Net operating loss carry forwards available to offset future taxable income in certain foreign subsidiaries, Valuation allowances | 134.9 | 121.2 | ||
Net operating loss carry forwards in foreign jurisdiction expiration period | 2015 | |||
Dividend declared foreign earnings repatriated, maximum amount | 47.5 | |||
Foreign exchange loss | -21.6 | -0.8 | -9 | |
Percentage increase in effective rate, Excluded net operating losses | 3.30% | |||
Percentage decrease in effective rate, foreign tax credits | 5.10% | |||
Change in effective tax rate | -0.20% | -0.10% | 1.30% | |
Effective tax rate, percentage from prior year | 1.70% | |||
Dividends from subsidiary | 14.9 | |||
Impact of tax holiday arrangements on income tax expense | 7.6 | 9.1 | 2.1 | |
Impact of tax holiday arrangements per diluted share | $0.10 | $0.12 | $0.03 | |
Income Tax Credits and Adjustments | 10.6 | |||
Ramgen Power Systems LLC. [Member] | ||||
Income Taxes [Line Items] | ||||
Change in effective tax rate | 1.40% | |||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Tax benefit associated with discrete event | 4.4 | |||
Devaluation Of Venezuelan Bolivar [Member] | ||||
Income Taxes [Line Items] | ||||
Foreign exchange loss | 3.1 | |||
Percentage decrease in effective rate, foreign tax credits | -0.40% | |||
Luxembourg subsidiary [Member] | ||||
Income Taxes [Line Items] | ||||
Percentage decrease in effective rate, foreign tax credits | 3.40% | |||
Tax effect from foreign subsidiary dividends | 7.1 | |||
Tax effect from foreign subsidiary dividends, percent | 3.00% | |||
Indian Subsidiary [Member] | ||||
Income Taxes [Line Items] | ||||
Tax effect from foreign subsidiary dividends | $0.80 |
Income_Taxes_Income_Before_Inc
Income Taxes (Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
United States | $54.10 | $98.70 | $92.50 |
Foreign | 131.5 | 158.8 | 183.2 |
Income before income taxes | $185.60 | $257.50 | $275.70 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
United States | $26.50 | $10.60 | $30.70 |
Foreign | 71.2 | 73.8 | 53.5 |
Total current | 97.7 | 84.4 | 84.2 |
United States | -30.4 | 10.7 | 9 |
Foreign | -6.1 | -6.9 | -0.4 |
Deferred Income Tax Expense (Benefit), Total | -36.5 | 3.8 | 8.6 |
Income Tax Expense (Benefit), Total | $61.20 | $88.20 | $92.80 |
Income_Taxes_Provision_for_Inc1
Income Taxes (Provision for Income Tax Difference) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Foreign operations, including impact of foreign tax credits | -20.30% | -12.60% | -4.20% |
State and local income taxes, net of U.S. tax | 0.90% | 1.20% | 1.10% |
Valuation allowances | 17.00% | 9.10% | 1.90% |
Export / manufacturing deductions | -0.80% | -0.80% | -0.90% |
Qualifying advanced energy credit | -0.30% | ||
R & D | -0.60% | -2.60% | -0.20% |
Other | -0.20% | -0.10% | 1.30% |
Effective tax rate | 33.00% | 34.20% | 33.70% |
Spanish Operations Member | |||
Income Taxes [Line Items] | |||
Valuation allowances | 2.00% | 5.00% |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits Associated with Uncertain Tax Positions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Beginning balance | $18.70 | $14.30 | $13.80 |
Increases based on tax positions related to current year | 3.2 | 3.5 | 0.8 |
(Decrease) increase based on tax positions related to prior years | -0.8 | 2.1 | 1.3 |
Settlements | -1.2 | -1.6 | |
Lapse in statute of limitations | -1.1 | -0.5 | -0.2 |
Foreign currency adjustments | -1.4 | 0.5 | 0.2 |
Ending balance | $18.60 | $18.70 | $14.30 |
Income_Taxes_Tax_Years_Remain_
Income Taxes (Tax Years Remain Subject to Examination by Major Tax Jurisdiction) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
BRAZIL | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2009 - 2014 |
CANADA | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2009 - 2014 |
FRANCE | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2013 - 2014 |
GERMANY | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2010 - 2014 |
INDIA | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2005 - 2014 |
ITALY | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2009 - 2014 |
MALAYSIA | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2007 - 2014 |
NETHERLANDS | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2011 - 2014 |
NIGERIA | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2010 - 2014 |
NORWAY | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2006 - 2014 |
SPAIN | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2010 - 2014 |
UNITED KINGDOM | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2008 - 2014 |
UNITED STATES | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2011 - 2014 |
VENEZUELA | |
Income From Continuing Operations Before Income Taxes By Foreign Country In Jurisdictions [Line Items] | |
Open tax years | 2010 - 2014 |
Income_Taxes_Summary_of_Tax_Ef
Income Taxes (Summary of Tax Effect of Temporary Differences that Create Deferred Tax Accounts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax liabilities | ||
Depreciation and amortization | $116.30 | $118.50 |
Deferred tax assets | ||
Investment and R&D credit carryforward, net | -28.1 | -30.8 |
Inventories and receivables | -21.4 | -21.1 |
Foreign tax credit carryforward | -13.2 | -4.7 |
Other accrued expenses | -34.8 | -12 |
Tax net operating loss carryforwards | -117.7 | -107.2 |
Pension and employee benefits | -57.7 | -41.9 |
Total deferred tax assets | -272.9 | -217.7 |
Valuation allowances | 134.9 | 121.2 |
Net deferred tax assets | -138 | -96.5 |
Presented on the consolidated balance sheet as: | ||
Current deferred tax assets | -66.8 | -25.2 |
Current deferred tax liabilities | 2.2 | 3.6 |
Noncurrent deferred tax assets | -5.5 | -11.8 |
Noncurrent deferred tax liabilities | 48.4 | 55.4 |
Total net deferred tax (assets) liability | ($21.70) | $22 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2013 | Mar. 22, 2011 | Mar. 22, 2011 | Mar. 31, 2011 | Mar. 22, 2011 | Mar. 22, 2011 | Mar. 22, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | 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 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 ($) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
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 | 693.7 | 434.1 | 259.6 | 72.8 | 264.4 | ||||||||||||||||||||
Interest rate, additional margin | 2.50% | 1.75% | 0.75% | 2.50% | 1.50% | ||||||||||||||||||||
Unutilized commitments fee | 0.38% | 0.50% | |||||||||||||||||||||||
Debt fees | $5.10 | ||||||||||||||||||||||||
Debt fees amortized | 2.2 | 3.4 | |||||||||||||||||||||||
Letter Of Credit Fees | 1.9 | 2.8 | 4.7 | ||||||||||||||||||||||
Senior subordinated notes | $375 | ||||||||||||||||||||||||
Senior subordinated notes, interest rate | 6.50% | ||||||||||||||||||||||||
Debt Redemption Price Percent Of Principal Amount | 103.25% | 100.00% | 100.00% | ||||||||||||||||||||||
Debt Instrument Redemption Date | 1-May-16 | ||||||||||||||||||||||||
Debt Instrument Maturity Date | 1-May-21 |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt (Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Total debt | $1,083.70 | $1,287 |
Less: current portion | -30.1 | -40.1 |
Total long-term debt | 1,053.60 | 1,246.90 |
Amended Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 693.7 | 884.5 |
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 | $15 | $22.90 |
LongTerm_Debt_Debt_Maturities_
Long-Term Debt (Debt Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-Term Debt [Abstract] | ||
2015 | $30.10 | |
2016 | 20.7 | |
2017 | 20.6 | |
2018 | 634.3 | |
Thereafter | 378 | |
Total debt | $1,083.70 | $1,287 |
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, 2014 | Dec. 31, 2013 |
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 | $401.70 | $400.50 |
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, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long Term Debt | $1,083.70 | $1,287 |
Bank Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 0.5 | |
Bank Term Loan [Member] | ITALY | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 0.4 | |
Project Finance Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 13.3 | |
Project Finance Facility [Member] | SPAIN | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 8.8 | |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.25% | |
Debt Outstanding Principal Amount | 7.2 | |
Project Finance Facility [Member] | BRAZIL | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 1.6 | |
Debt Instrument Interest Additional Interest Above Rate | 6.00% | |
Subsidized Loans Member | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 4 | 5.4 |
Imputed interest rate | 5.56% | |
Participating Loans Member | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 1.2 | |
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.25% | |
Other Notes Payable Member | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $3.70 | |
Minimum [Member] | Bank Term Loan [Member] | ITALY | ||
Debt Instrument [Line Items] | ||
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.70% | |
Maximum [Member] | Bank Term Loan [Member] | ITALY | ||
Debt Instrument [Line Items] | ||
Debt Instrument Interest Additional Interest Above Europe Interbank Offered Rate Rate | 1.80% |
Pension_Plans_Narrative_Detail
Pension Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Decrease in pension liabilities | $16.50 | ||
Number of plans | 2 | ||
Multiemployer Plan, Period Contributions | 1.1 | 1.1 | 1 |
Net Compensation Expense | 4 | 4 | 4.3 |
Measurement One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Historical asset return trends, measurement term | 15 years | ||
Measurement Two [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Historical asset return trends, measurement term | 10 years | ||
Measurement Three [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Historical asset return trends, measurement term | 5 years | ||
Former Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | 12.9 | ||
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | 28.5 | 14.7 | |
Estimated net actuarial loss and prior service cost | 7.1 | ||
Asset liability model, measurement term | 5 years | ||
Target allocation, upper/lower limits spread | 5.00% | ||
Funded plan projected contribution | 0 | ||
Expected benefit payments in 2015 | 16.9 | ||
Expected benefit payments in 2016 | 17.6 | ||
Expected benefit payments in 2017 | 18.3 | ||
Expected benefit payments in 2018 | 19 | ||
Expected benefit payments in 2019 | 19.8 | ||
Expected benefit payments from 2020 to 2024 | 103.3 | ||
Employer contributions and costs | 17.1 | 18.2 | 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] | |||
Gain recognized from curtailment | -0.4 | 3.6 | |
Benefits paid | 5.5 | 6.3 | |
Estimated net actuarial loss and prior service cost | 0.6 | ||
Funded plan projected contribution | 3.9 | ||
Expected benefit payments in 2015 | 6.3 | ||
Expected benefit payments in 2016 | 6.3 | ||
Expected benefit payments in 2017 | 6.3 | ||
Expected benefit payments in 2018 | 6.8 | ||
Expected benefit payments in 2019 | 6.9 | ||
Expected benefit payments from 2020 to 2024 | 36.5 | ||
Defined contribution plans costs | 6 | 4 | 3.4 |
Non-U.S. Plans [Member] | NORWAY | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Gain recognized from curtailment | $3.60 |
Pension_Plans_Information_Rega
Pension Plans (Information Regarding Pension Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans [Member] | |||
Change in projected benefit obligations | |||
Benefit obligation at beginning of the period | $286 | $314.20 | |
Service cost | 3.6 | 3.8 | 3.8 |
Interest cost | 13.2 | 11.6 | 12.8 |
Expenses paid | -1 | -1 | |
Recognized net actuarial loss (gain) | 34.1 | -28.8 | |
Plan amendments | 2.3 | 0.9 | |
Benefits paid | -28.5 | -14.7 | |
Benefit obligation at end of the period | 309.7 | 286 | 314.2 |
Change in plan assets | |||
Beginning balance | 246.9 | 219.2 | |
Actual return on assets | 18.2 | 31.9 | |
Contribution by employer | 8.9 | 11.5 | |
Expenses paid | -1 | -1 | |
Benefits paid | -28.5 | -14.7 | |
Ending Balance | 244.5 | 246.9 | 219.2 |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | 0.6 | 0.6 | |
Noncurrent liabilities | 64.6 | 38.5 | |
Total balance sheet liability | 65.2 | 39.1 | |
Amounts recognized in accumulated other comprehensive loss consists of: | |||
Cumulative net actuarial loss | 84.2 | 52.6 | |
Cumulative prior service cost | 2.9 | 0.8 | |
Total | 87.1 | 53.4 | |
Non-U.S. Plans [Member] | |||
Change in projected benefit obligations | |||
Benefit obligation at beginning of the period | 138.3 | 159.8 | |
Service cost | 2.4 | 5.6 | 5.3 |
Interest cost | 5.5 | 6.4 | 6.7 |
Employee contributions | 0.1 | 0.2 | |
Expenses paid | -0.1 | -0.1 | |
Recognized net actuarial loss (gain) | 11.1 | 17.2 | |
Curtailment / settlement | -1.3 | -43.4 | |
Benefits paid | -5.5 | -6.3 | |
Foreign currency adjustments | -9.5 | -1.1 | |
Benefit obligation at end of the period | 141 | 138.3 | 159.8 |
Change in plan assets | |||
Beginning balance | 117.8 | 130.9 | |
Actual return on assets | 13.8 | 10 | |
Settlements | -1.3 | -26.8 | |
Contribution by employer | 6.1 | 10.1 | |
Employee contributions | 0.1 | 0.2 | |
Expenses paid | -0.1 | -0.1 | |
Benefits paid | -5.5 | -6.3 | |
Foreign currency adjustments | -7.5 | -0.2 | |
Ending Balance | 123.4 | 117.8 | 130.9 |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | 1.7 | 1.7 | |
Noncurrent liabilities | 16.2 | 18.8 | |
Total balance sheet liability | 17.9 | 20.5 | |
Amounts recognized in accumulated other comprehensive loss consists of: | |||
Cumulative net actuarial loss | 21.2 | 18 | |
Cumulative prior service cost | 0.9 | 1 | |
Total | $22.10 | $19 |
Pension_Plans_Components_Of_Ne
Pension Plans (Components Of Net Pension Expense And Amounts Recognized In Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans [Member] | |||
Net pension expense | |||
Service cost | $3.60 | $3.80 | $3.80 |
Interest cost | 13.2 | 11.6 | 12.8 |
Expected return on plan assets | -18.5 | -16.1 | -14.9 |
Amortization of net actuarial loss | 2.8 | 7.8 | 7.2 |
Amortization of prior service cost | 0.3 | 0.3 | |
Net plan expense | 1.4 | 7.1 | 9.2 |
Amounts recognized in other comprehensive loss (income) | |||
Net actuarial loss (gain) | 34.4 | -44.5 | 16.7 |
Prior service cost | 2.3 | 0.9 | |
Amortization of net actuarial loss | -2.8 | -7.8 | -7.2 |
Amortization of prior service cost | -0.3 | -0.3 | |
Total recognized in other comprehensive loss (income) | 33.6 | -51.4 | 9.2 |
Total recognized | 35 | -44.3 | 18.4 |
Non-U.S. Plans [Member] | |||
Net pension expense | |||
Service cost | 2.4 | 5.6 | 5.3 |
Interest cost | 5.5 | 6.4 | 6.7 |
Expected return on plan assets | -6.5 | -6.9 | -6.9 |
Amortization of net actuarial loss | 0.3 | 0.4 | 0.6 |
Curtailment / Settlement | -0.4 | 3.6 | |
Amortization of prior service cost | 0.1 | -0.1 | |
Net plan expense | 2.1 | 2 | 5.6 |
Amounts recognized in other comprehensive loss (income) | |||
Net actuarial loss (gain) | 3.5 | 14 | 2.1 |
Amortization of net actuarial loss | -0.3 | -0.4 | -0.6 |
Curtailment / settlement | -13 | ||
Amortization of prior service cost | -0.1 | 0.1 | |
Total recognized in other comprehensive loss (income) | 3.2 | 0.5 | 1.6 |
Total recognized | $5.30 | $2.50 | $7.20 |
Pension_Plans_Schedule_Of_Weig
Pension Plans (Schedule Of Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-average assumptions used for benefit obligations | |||
Discount rate | 3.90% | 4.70% | 3.80% |
Weighted-average assumptions used for net periodic pension cost | |||
Discount rate | 4.70% | 3.80% | 4.60% |
U.S. Plans [Member] | |||
Weighted-average assumptions used for benefit obligations | |||
Discount rate | 3.90% | 4.70% | 3.80% |
Rate of compensation increase | 0.13% | 0.13% | 0.13% |
Weighted-average assumptions used for net periodic pension cost | |||
Discount rate | 4.70% | 3.80% | 4.60% |
Rate of compensation increase | 0.13% | 0.13% | 0.15% |
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 | 3.26% | 4.07% | 4.15% |
Rate of compensation increase | 2.16% | 2.58% | 2.51% |
Weighted-average assumptions used for net periodic pension cost | |||
Discount rate | 4.07% | 4.15% | 4.76% |
Rate of compensation increase | 2.58% | 2.51% | 2.69% |
Expected return on plan assets | 5.64% | 5.44% | 6.09% |
Pension_Plans_Schedule_Of_Pens
Pension Plans (Schedule Of Pension Plans With Accumulated Benefit Obligations in Excess Of Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $309.70 | $286.10 |
Accumulated benefit obligation | 309.7 | 286.1 |
Fair value of plan assets | 244.5 | 247 |
Non-U.S. Plans [Member] | ||
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ||
Projected benefit obligation | 21.8 | 31.1 |
Accumulated benefit obligation | 16.2 | 27.1 |
Fair value of plan assets | $1.90 | $11.20 |
Pension_Plans_Schedule_Of_Asse
Pension Plans (Schedule Of Asset Allocations By Category) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | $244.50 | $246.90 | $219.20 | ||
U.S. Plans [Member] | Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 2.8 | 3.6 | |||
U.S. Plans [Member] | U S Large Cap Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 20.2 | 67.8 | |||
U.S. Plans [Member] | U S Small Cap Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 20.2 | 13.8 | |||
U.S. Plans [Member] | U S Small Cap Growth Equity | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 31.9 | 12.1 | |||
U.S. Plans [Member] | International equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 35.4 | 39.3 | |||
U.S. Plans [Member] | U.S. fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 85.8 | [1] | 60.8 | [1] | |
U.S. Plans [Member] | Global asset allocations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 48.2 | [2] | 49.5 | [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 | 164.7 | 178.8 | |||
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 | 20.2 | 67.8 | |||
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 | 20.2 | 13.8 | |||
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 | 26.9 | 12.1 | |||
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 | 73.8 | [1] | 60.8 | [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 | 23.6 | [2] | 24.3 | [2] | |
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 79.8 | 68.1 | |||
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 | 2.8 | 3.6 | |||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | U S Small Cap Growth Equity | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 5 | ||||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | International equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 35.4 | 39.3 | |||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | U.S. fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 12 | [1] | |||
U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | Global asset allocations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 24.6 | [2] | 25.2 | [2] | |
Non-U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 123.4 | 117.8 | 130.9 | ||
Non-U.S. Plans [Member] | Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 0.3 | 0.5 | |||
Non-U.S. Plans [Member] | U S Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 10.6 | 10.4 | |||
Non-U.S. Plans [Member] | International equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 55.2 | 54.6 | |||
Non-U.S. Plans [Member] | International fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 43.8 | [3] | 39.6 | [3] | |
Non-U.S. Plans [Member] | Insurance contracts | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 13.5 | [4] | 12.7 | [4] | |
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 109.9 | 105.1 | |||
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 | 0.3 | 0.5 | |||
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 | 10.6 | 10.4 | |||
Non-U.S. Plans [Member] | Significant Other Observable Inputs (Level 2) | International equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 55.2 | 54.6 | |||
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 | 43.8 | [3] | 39.6 | [3] | |
Non-U.S. Plans [Member] | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan asset | 13.5 | 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 | $13.50 | [4] | $12.70 | [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 Of Plan Assets) (Details) (Non-U.S. Plans [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $117.80 | $130.90 |
Actual return on assets | 13.8 | 10 |
Contribution by employer | 6.1 | 10.1 |
Foreign exchange | -7.5 | -0.2 |
Benefit payments | -5.5 | -6.3 |
Settlements | -1.3 | -26.8 |
Ending Balance | 123.4 | 117.8 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 12.7 | 29.5 |
Actual return on assets | 2.1 | 0.1 |
Contribution by employer | 0.5 | 12.6 |
Foreign exchange | -0.7 | -2.5 |
Benefit payments | -0.2 | -1.2 |
Settlements | -0.9 | -25.8 |
Ending Balance | $13.50 | $12.70 |
PostRetirement_Benefits_Other_2
Post-Retirement Benefits Other Than Pensions (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
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 | 0.1 |
Expected benefit payments in 2015 | 1.2 |
Expected benefit payments in 2016 | 1.2 |
Expected benefit payments in 2017 | 1 |
Expected benefit payments in 2018 | 1 |
Expected benefit payments in 2019 | 0.9 |
Expected benefit payments from 2020 to 2024 | 4.3 |
PostRetirement_Benefits_Other_3
Post-Retirement Benefits Other than Pensions (Summary Post-Retirement Benefits Other Than Pensions Plans) (Details) (Post-Retirement Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Post-Retirement Benefits [Member] | |||
Change in benefit obligations: | |||
Benefit obligation at beginning of the period | $16.40 | $19.60 | |
Interest cost | 0.7 | 0.8 | 0.8 |
Benefits paid | -0.8 | -0.6 | |
Actuarial losses | -0.1 | -3.4 | |
Benefit obligation at end of the period | 16.2 | 16.4 | 19.6 |
Amounts recognized in the balance sheet: | |||
Current liabilities | 1.2 | 1.3 | |
Noncurrent liabilities | 15 | 15.1 | |
Total consolidated balance sheet liability | 16.2 | 16.4 | |
Amounts recognized in accumulated other comprehensive income: | |||
Cumulative net actuarial loss | 1.8 | 1.9 | |
Cumulative net prior service credit | -0.6 | -0.6 | |
Total | $1.20 | $1.30 |
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) (Post-Retirement Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Post-Retirement Benefits [Member] | |||
Net post-retirement benefits expense (income) | |||
Interest cost | $0.70 | $0.80 | $0.80 |
Amortization of net actuarial loss | 0.6 | 1 | |
Net plan expense | 0.7 | 1.4 | 1.8 |
Amounts recognized as other comprehensive (income) loss | |||
Net actuarial loss | -0.1 | -3.4 | 0.6 |
Amortization of net actuarial loss | -0.6 | -1 | |
Total recognized in comprehensive (income) loss | -0.1 | -4 | -0.4 |
Total recognized | $0.60 | ($2.60) | $1.40 |
PostRetirement_Benefits_Other_5
Post-Retirement Benefits Other than Pensions (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-average assumptions used to determine benefit obligations at December 31 | |||
Discount rate | 3.90% | 4.70% | 3.80% |
Measurement date | 12/31/14 | 12/31/13 | 12/31/12 |
Weighted-average assumptions used for net periodic pension cost | |||
Discount rate | 4.70% | 3.80% | 4.60% |
Measurement date | 12/31/13 | 12/31/12 | 12/31/11 |
Assumed health care cost trend rates | |||
Current year trend rate | 7.20% | 7.70% | 8.30% |
Ultimate trend rate | 4.75% | 4.75% | 4.75% |
Benefit obligations at end of period | 2034 | 2034 | 2034 |
Net periodic benefit cost for the year | 2034 | 2034 | 2033 |
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, 2014 |
Post-Retiements Benefits Other Than Pensions [Abstract] | |
Effect on total postretirement benefit expense, increase | $0.10 |
Effect on postretirement benefit liability, increase | 1.4 |
Effect on total postretirement benefit expense, decrease | -0.1 |
Effect on postretirement benefit liability, decrease | ($1.20) |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Potential Offsetting [Member] | Potential Offsetting [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Foreign Exchange Contract [Member] | ||||
USD ($) | |||||||||
Financial Instruments [Line Items] | |||||||||
Notional amount of derivatives | $21.80 | € 18 | $498.30 | $546.60 | |||||
Interest rate swap, fixed rate of interest rate | 3.87% | ||||||||
Fair value of the interest rate swap | 0.4 | 0.7 | |||||||
Fair value of the interest rate swap related unrealized gain | 0.3 | 0.3 | -0.1 | ||||||
Derivative asset, offset | 4 | ||||||||
Derivative liability, offset | 4 | ||||||||
Derivative asset, net of offset | 6.1 | ||||||||
Derivative liability, net of offset | 29.2 | ||||||||
Gain (loss) on forward exchange contracts | ($14.30) | ($14.70) | $7.90 |
Financial_Instruments_Foreign_
Financial Instruments (Foreign Currency Exchange Contracts Accounted For At Fair Value On Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments [Abstract] | ||
Foreign currency exchange contracts assets | $10.10 | $5.40 |
Foreign currency exchange contracts liabilities | $33.20 | $16.30 |
Commitments_and_Contingencies_
Commitments and Contingencies (Legal Matters) (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | 4-May-11 | Feb. 29, 2012 | Feb. 29, 2012 | Nov. 30, 2009 | Dec. 31, 2014 | Dec. 31, 2014 | 4-May-11 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | EUR (€) | USD ($) | BRL | EUR (€) | Banco Santos [Member] | Banco Santos [Member] | Maximum [Member] | Minimum [Member] | ||
loan | USD ($) | BRL | |||||||||
item | |||||||||||
employee | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Purchase agreement price | $543.20 | ||||||||||
Potential purchase price adjustments | 124.5 | ||||||||||
Additional consideration sought | 32.7 | ||||||||||
Bargaining agreement between IUE and the Company expiration date | 2016-03 | ||||||||||
Number of employees engaged in misconduct during strike and involuntary terminated | 2 | ||||||||||
Estimated appeal processing period | 2 years | 1 year | |||||||||
Damage sought | 5.2 | 4.3 | |||||||||
Cash reserve | 1.4 | 3.6 | |||||||||
Estimated aggregate exposure | $19.20 | 50.9 | |||||||||
Period of available funds | 12 months | ||||||||||
Number of banking credit notes | 12 | ||||||||||
Number of banking credit notes each month | 1 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Lease Commitments) (Details) | 12 Months Ended | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 28, 2007 | Dec. 28, 2007 | Feb. 12, 2015 | Feb. 12, 2015 | Dec. 28, 2007 | Dec. 28, 2007 |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | France Facility [Member] | France Facility [Member] | Minimum [Member] | Maximum [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
USD ($) | EUR (€) | ||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||
Committed line of credit maximum borrowing capacity | $27.80 | € 23 | |||||||
Applicable margin on EURIBOR Rate | 1.25% | 2.50% | |||||||
Minimum guaranteed payment to lessor if the lease is terminated | 80.00% | ||||||||
Payments to acquire facility | 26.1 | 23.1 | |||||||
Total rental expense | 21.8 | 28.9 | 25.4 | ||||||
Minimum lease payments required under non-cancelable operating leases in 2015 | 18.7 | ||||||||
Minimum lease payments required under non-cancelable operating leases in 2016 | 15.5 | ||||||||
Minimum lease payments required under non-cancelable operating leases in 2017 | 11.9 | ||||||||
Minimum lease payments required under non-cancelable operating leases in 2018 | 8.5 | ||||||||
Minimum lease payments required under non-cancelable operating leases in 2019 | 2 | ||||||||
Minimum lease payments required under non-cancelable operating leases thereafter | $13.10 |
Warranties_Changes_In_Product_
Warranties (Changes In Product Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies [Abstract] | |||
Beginning balance | $21.40 | $20.10 | $25.60 |
Provision for warranties issued during period | 14.7 | 19.9 | 17.3 |
Adjustments to warranties issued in prior periods | 2.4 | 2.2 | -2.9 |
Payments during the period | -17.6 | -19.6 | -19.8 |
Foreign currency adjustments | -1.3 | -1.2 | -0.1 |
Ending balance | $19.60 | $21.40 | $20.10 |
Incentive_StockBased_Compensat2
Incentive Stock-Based Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | 31-May-08 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum number of shares to be issued | 6,000,000 | |||||
Expense for grants to employees | $25.80 | $25.90 | $28.40 | |||
Number of Shares available for future Grant | 1,372,462 | |||||
Unrecognized deferred stock compensation remaining weighted average vesting periods | 1 year 2 months 1 day | |||||
Total expected stock compensation expense | 30.2 | |||||
Realized tax benefits from exercise of stock options | 1.6 | |||||
Fair value of options and stock appreciation rights vested | 3.9 | 4.6 | 4.9 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 17 | 51.9 | 25.1 | |||
Number of shares granted, Directors | 410,433 | 402,730 | 675,809 | |||
Grants to Directors | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based awards, vesting period | 1 year | |||||
Number of shares granted, Directors | 15,736 | 13,972 | 15,459 | |||
Total fair value shares granted, Directors | 0.9 | 0.8 | 0.8 | |||
Options And Stock Appreciation Rights [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options, vesting term, years | 10 years | |||||
Share based awards, vesting period | 3 years | |||||
Options And Stock Appreciation Rights [Member] | Prior To 2010 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based awards, vesting period | 4 years | |||||
Performace Restriced Stock Units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based awards, vesting period | 3 years | |||||
Performace Restriced Stock Units [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock awards vesting percentage | 16.67% | |||||
Percentile rank of shareholder return of stock | 25.00% | |||||
Performace Restriced Stock Units [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock awards vesting percentage | 50.00% | |||||
Percentile rank of shareholder return of stock | 75.00% | |||||
Employee Stock Option and Stock Appreciation Rights | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average grant date fair value per share of options and stock appreciation rights granted to employees | $14.82 | $21.52 | $21.05 | |||
Total intrinsic value of options exercised | 5.3 | |||||
Aggregate intrinsic value of options and stock appreciation rights outstanding | $64.60 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option and Stock Appreciation Rights | |||
Shares | |||
Beginning Balance | 1,465,810 | 1,557,692 | 1,525,435 |
Number of shares granted | 290,354 | 205,661 | 174,201 |
Exercised | -157,373 | -285,917 | -117,729 |
Forfeited | -24,923 | -11,344 | -24,215 |
Expired | -6,671 | -282 | |
Ending Balance | 1,567,197 | 1,465,810 | 1,557,692 |
Exercisable at ending of period | 1,106,160 | 1,112,189 | 1,103,694 |
Weighted-Average Exercise Price | |||
Beginning Balance | $35.89 | $31.35 | $28.60 |
Granted | $59.38 | $62.27 | $52.40 |
Exercised | $29.07 | $29.59 | $26.23 |
Forfeited | $57.53 | $49.84 | $33.64 |
Expired | $35.66 | $52.40 | |
Ending Balance | $40.57 | $35.89 | $31.35 |
Exercisable at ending of period | $32.77 | $28.73 | $26.27 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Incentive Stock-Based Compensation Plans [Abstract] | |||
Option term (years) | 3 years 10 months 24 days | 5 years | 5 years |
Volatility | 29.10% | 38.40% | 45.40% |
Risk-free interest rate (zero coupon U.S. Treasury note) | 1.12% | 0.92% | 0.81% |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Nonvested shares beginning balance | 655,018 | 1,089,003 | 935,519 |
Granted | 410,433 | 402,730 | 675,809 |
Vested | -286,568 | -789,700 | -474,053 |
Forfeited | -46,803 | -47,015 | -48,272 |
Nonvested shares ending balance | 732,080 | 655,018 | 1,089,003 |
Weighted-Average Grant Price | |||
Nonvested weighted-average grant price beginning balance | $56.70 | $45.48 | $34.44 |
Granted | $59.09 | $59.99 | $51.06 |
Vested | $59.37 | $43.10 | $33.11 |
Forfeited | $58.61 | $54.36 | $39.12 |
Nonvested weighted-average grant price ending balance | $58.88 | $56.70 | $45.48 |
Significant_Concentration_Of_C1
Significant Concentration Of Credit Risk (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Concentration Risk [Line Items] | |
Proceeds from Customers | $56.30 |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Concentration percentage | 16.80% |
Other_Expense_Net_Narrative_De
Other Expense, Net (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||
Non-deductible foreign exchange loss consolidated into income statement | $3.10 | |
Remeasurment loss | 18.3 | |
Gain (loss) on assets acquired | 6.6 | |
Ramgen Power Systems LLC. [Member] | ||
Business Acquisition [Line Items] | ||
Loss on acquisition | 11.7 | |
Remeasurment loss | 18.3 | |
Gain (loss) on assets acquired | $6.60 |
Other_Expense_Net_Schedule_Of_
Other Expense, Net (Schedule Of Other Expenses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Expense, Net [Abstract] | |||
Foreign exchange loss | ($21.60) | ($0.80) | ($9) |
Gain (loss) on forward exchange contracts | -14.3 | -14.7 | 7.9 |
Net loss from equity investment | -15.8 | -5.6 | -2.1 |
Realized gains of deferred compensation plan | -2.1 | -1.4 | -0.9 |
Unrealized (gain) loss of deferred compensation plan | -4.3 | -2.7 | -1.2 |
Expense Due To Changes in The Value Of Invested Assets of Deferred Compensation Plan | 6.4 | 4.1 | 2.1 |
Other miscellaneous income | 1 | 4.5 | 3.2 |
Total other expense, net | ($50.70) | ($16.60) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Narrative) (Details) (Euro Member Countries, Euro, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Euro Member Countries, Euro | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Foreign currency translation adjustments in AOCI | ($123.20) |
Foreign currency translation, Percentage decrease in exchange rate | 12.00% |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | ($118.80) | ($134.70) |
Other comprehensive loss before reclassifications | -123.2 | -18.2 |
Amounts reclassified from AOCI | -22.6 | 34.1 |
Net current period other comprehensive (loss) income | -145.8 | 15.9 |
Ending balance | -264.6 | -118.8 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | -69.5 | -51.3 |
Other comprehensive loss before reclassifications | -123.2 | -18.2 |
Net current period other comprehensive (loss) income | -123.2 | -18.2 |
Ending balance | -192.7 | -69.5 |
Unrealized (Loss) Gain On Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | -0.4 | -0.7 |
Amounts reclassified from AOCI | 0.3 | 0.3 |
Net current period other comprehensive (loss) income | 0.3 | 0.3 |
Ending balance | -0.1 | -0.4 |
Pension And Other Postretirement Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | -48.9 | -82.7 |
Amounts reclassified from AOCI | -22.9 | 33.8 |
Net current period other comprehensive (loss) income | -22.9 | 33.8 |
Ending balance | ($71.80) | ($48.90) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense, net | ($52) | ($46.90) | ($60.20) | ||
Income before income taxes | 185.6 | 257.5 | 275.7 | ||
Provision for income taxes | 61.2 | 88.2 | 92.8 | ||
Net income | 124.4 | 169.3 | 182.9 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 22.6 | -34.1 | |||
Unrealized (Loss) Gain On Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense, net | -0.5 | -0.4 | |||
Provision for income taxes | 0.2 | 0.1 | |||
Net income | -0.3 | -0.3 | |||
Pension And Other Postretirement Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial loss | -3.4 | [1] | -8.9 | [1] | |
Recognized net actuarial loss (gain) | 37.8 | [1] | -33.9 | [1] | |
Gain from curtailment / settlement | -13 | [1] | |||
Benefit plan amendments | -2.3 | [1] | -0.9 | [1] | |
Income before income taxes | 36.7 | -54.9 | |||
Provision for income taxes | -13.8 | 21.1 | |||
Net income | $22.90 | ($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) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Segment Information [Abstract] | |
Number of reportable segments | 2 |
Segment_Information_Segment_Re
Segment Information (Segment Results) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $800.40 | $683.80 | $628.40 | $699.10 | $827 | $633.90 | $805.30 | $766.40 | $2,811.70 | $3,032.60 | $2,736.40 |
Income from operations | 288.3 | 321 | 335.9 | ||||||||
Depreciation and amortization | 92.3 | 92.3 | 85.5 | ||||||||
Goodwill | 832.9 | 927.6 | 832.9 | 927.6 | 911.3 | ||||||
Assets | 3,488.70 | 3,737.80 | 3,488.70 | 3,737.80 | |||||||
Total long-lived assets | 450.9 | 472.3 | 450.9 | 472.3 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 840.6 | 854.1 | 828 | ||||||||
Total long-lived assets | 185.5 | 177.2 | 185.5 | 177.2 | |||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 66.7 | 73.9 | 73.5 | ||||||||
Total long-lived assets | 1.7 | 2.6 | 1.7 | 2.6 | |||||||
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 907.3 | 928 | 901.5 | ||||||||
Total long-lived assets | 187.2 | 179.8 | 187.2 | 179.8 | |||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 446.2 | 428.3 | 445.7 | ||||||||
Total long-lived assets | 83.9 | 94 | 83.9 | 94 | |||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 673.2 | 796.6 | 680.1 | ||||||||
Total long-lived assets | 113.8 | 140.2 | 113.8 | 140.2 | |||||||
Asia-Pacific, Southern Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 414.4 | 520.8 | 422.8 | ||||||||
Total long-lived assets | 17 | 18 | 17 | 18 | |||||||
Middle East, Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 370.6 | 358.9 | 286.3 | ||||||||
Total long-lived assets | 49 | 40.3 | 49 | 40.3 | |||||||
New Units [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,419.90 | 1,524.10 | 1,301.60 | ||||||||
Income from operations | 111.5 | 140.3 | 117.9 | ||||||||
Depreciation and amortization | 44 | 45 | 44.3 | ||||||||
Goodwill | 434.2 | 488.4 | 434.2 | 488.4 | 476.7 | ||||||
Assets | 1,080.20 | 1,113.80 | 1,080.20 | 1,113.80 | |||||||
New Units [Member] | Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,419.90 | 1,524.10 | 1,301.60 | ||||||||
Aftermarket Parts And Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,391.80 | 1,508.50 | 1,434.80 | ||||||||
Income from operations | 299.4 | 295.7 | 323.2 | ||||||||
Depreciation and amortization | 48.3 | 47.3 | 41.2 | ||||||||
Goodwill | 398.7 | 439.2 | 398.7 | 439.2 | 434.6 | ||||||
Assets | 1,270.60 | 1,305 | 1,270.60 | 1,305 | |||||||
Aftermarket Parts And Services [Member] | Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 673.1 | 695.7 | 623.5 | ||||||||
Aftermarket Parts And Services [Member] | Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 718.7 | 812.8 | 811.3 | ||||||||
Unallocable [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from operations | -122.6 | -115 | -105.2 | ||||||||
Assets | $1,137.90 | $1,319 | $1,137.90 | $1,319 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Unaudited Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $800.40 | $683.80 | $628.40 | $699.10 | $827 | $633.90 | $805.30 | $766.40 | $2,811.70 | $3,032.60 | $2,736.40 |
Gross profit | 220.6 | 182.2 | 178.5 | 147.4 | 232.3 | 182.8 | 198.2 | 172 | 728.7 | 785.3 | 732.1 |
Net income attributable to Dresser-Rand | $46.20 | $30.80 | $29.10 | $16.60 | $32.80 | $49.40 | $53.30 | $32.90 | $122.70 | $168.40 | $179 |
Net income attributable to Dresser-Rand per share | |||||||||||
Basic | $0.60 | $0.40 | $0.38 | $0.22 | $0.43 | $0.65 | $0.70 | $0.43 | $1.60 | $2.21 | $2.37 |
Diluted | $0.60 | $0.40 | $0.38 | $0.22 | $0.43 | $0.64 | $0.69 | $0.43 | $1.59 | $2.19 | $2.35 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Supplemental Cash Flow Information [Abstract] | |||||
Cash paid for interest, net of capitalized interest | $52.80 | $54.10 | $59.10 | ||
Cash paid for income taxes, net of refunds | 94 | 80.8 | 56.9 | ||
Schedule of Noncash Investing and Financing Activities | |||||
Assets acquired in acquisition | 24.4 | [1] | 55.8 | [1] | |
Liabilities assumed in acquisition | $3.90 | [1] | $2.60 | [1] | |
[1] | See Note 3 for additional discussion of the Companybs acquisitions. |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 25, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Workforce reduction, percent | 8.00% |
Estimated pre-tax cost of restructuring | $50 |
Recovered_Sheet4
Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Valuation Allowance [Line Items] | ||||||
Change in provision | ($0.80) | |||||
Impact of foreign exchange | 0.5 | 0.2 | ||||
Write-off of bad debts | 2.4 | 0.1 | 0.2 | |||
Allowance for losses on receivables | ||||||
Valuation Allowance [Line Items] | ||||||
Beginning Balance | 9.1 | 9.6 | 9.3 | |||
Additions, Charges to costs and expenses | 2.5 | 0.5 | ||||
Deductions | 2.9 | [1] | 0.5 | [2] | 0.2 | [3] |
Ending Balance | 8.7 | 9.1 | 9.6 | |||
Valuation allowance for deferred tax asset | ||||||
Valuation Allowance [Line Items] | ||||||
Beginning Balance | 121.2 | 83.6 | 81.6 | |||
Additions, Charges to costs and expenses | 33.3 | 38.2 | 6.3 | |||
Additions, Charges to other accounts | -5.4 | [4] | -1.2 | [5] | -3.6 | [6] |
Deductions | 14.2 | [7] | -0.6 | [7] | 0.7 | [7] |
Ending Balance | 134.9 | 121.2 | 83.6 | |||
Guascor [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Impact of acquisition of Guascor | -2.5 | |||||
Impact of acquisition of Guascor, offset by other expired NOL | ($5.40) | ($1.20) | ($1.10) | |||
[1] | Impact of foreign exchange of $0.5 and write-off of bad debts of $2.4. | |||||
[2] | Impact of change in provision of $(0.8), foreign exchange of $0.2 and write-off of bad debts of $0.1. | |||||
[3] | Impact of write-off of bad debts of 0.2. | |||||
[4] | Impact of expired NOLbs of $(5.4). | |||||
[5] | Impact of expired NOLbs of $(1.2). | |||||
[6] | Impact of acquisition of Guascor of $(2.5) and other expired NOLbs of $(1.1). | |||||
[7] | Impact of foreign exchange. |