Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 05, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'WABCO Holdings Inc. | ' | ' |
Entity Central Index Key | '0001390844 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Trading Symbol | 'WBC | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 61,324,301 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $4.70 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $2,720.50 | $2,477.40 | $2,794.10 |
Cost of sales | 1,911.40 | 1,737.20 | 1,986.10 |
Gross Profit | 809.1 | 740.2 | 808 |
Costs and expenses: | ' | ' | ' |
Selling and administrative expenses | 352.8 | 308.2 | 327.2 |
Product engineering expenses | 119.4 | 104.3 | 105.1 |
Other operating expense, net | -5 | -3.2 | -5.8 |
Operating income / (loss) | 331.9 | 324.5 | 369.9 |
European Commission fine reimbursement | 279.5 | 0 | 0 |
Equity income of unconsolidated joint ventures, net | 17.7 | 18.1 | 16.5 |
Other non-operating income/(expense), net | 6.9 | -5 | 20.2 |
Interest income/(expense), net | 4.9 | -1.5 | -1.7 |
Income before income taxes | 640.9 | 336.1 | 404.9 |
Income tax (benefit)/expense | -21 | 23.6 | 36.7 |
Net income including noncontrolling interests | 661.9 | 312.5 | 368.2 |
Less: net income attributable to noncontrolling interests | 8.7 | 10.5 | 11.2 |
Net income attributable to Company | $653.20 | $302 | $357 |
Net income attributable to Company per common share | ' | ' | ' |
Basic (in dollars per share) | $10.46 | $4.73 | $5.35 |
Diluted (in dollars per share) | $10.31 | $4.62 | $5.19 |
Cash dividends per share of common stock (in dollars per share) | $0 | $0 | $0 |
Weighted average common shares outstanding | ' | ' | ' |
Basic (in shares) | 62,474,493 | 63,906,992 | 66,693,064 |
Diluted (in shares) | 63,382,564 | 65,323,389 | 68,829,440 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income including noncontrolling interests | $661.90 | $312.50 | $368.20 |
Foreign currency translation effects | -4.1 | -0.8 | -54.4 |
Unrealized (losses)/gains on benefit plans, net of tax | -1.8 | -56.6 | 0.1 |
Prior service cost arising during period (net of taxes of $0.1 in 2012) | 0 | 0.1 | 0 |
Net actuarial loss arising during the period (net of taxes of $1.4 in 2013, $25.3 in 2012 and $1.1 in 2011) | -6.7 | -58.1 | -1.7 |
Recognized net actuarial gain (net of taxes of $2.0 in 2013, $0.6 in 2012 and $0.7 in 2011) | 4.8 | 1.5 | 1.7 |
Less: amortization of prior service cost (net of taxes of $0 in 2013 and $0.1 in 2012 and 2011) | 0.1 | -0.1 | 0.1 |
Comprehensive income including noncontrolling interests | 656 | 255.1 | 313.9 |
Less: Comprehensive income attributable to noncontrolling interests | 3.6 | 9.1 | 5.6 |
Comprehensive income attributable to Company | $652.40 | $246 | $308.30 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Prior service cost arising during period, tax | $0 | $0.10 | ' |
Net actuarial loss arising during the period, tax | 1.6 | 25.3 | 1.1 |
Recognized net actuarial gain, tax | 2 | 0.6 | 0.7 |
Amortization of prior service cost, tax effect | $0 | $0.10 | $0.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $472.80 | $175 |
Short-term investments | 55.2 | 0 |
Accounts receivable, less allowance for doubtful accounts of $5.0 in 2013 and $3.6 in 2012 | 346.2 | 301.5 |
Inventories | 207.2 | 191.8 |
Future income tax benefits | 10.4 | 13.8 |
Restricted cash | 34.6 | 26 |
Guaranteed notes receivable | 51.4 | 41.2 |
Other current assets | 56.8 | 43.3 |
Total current assets | 1,234.60 | 792.6 |
Property, plant and equipment, less accumulated depreciation | 422.5 | 389 |
Goodwill | 381.2 | 371.7 |
Long-term future income tax benefits | 248.9 | 91.5 |
Investments in unconsolidated joint ventures | 19.9 | 20.5 |
Intangible assets, net | 44.3 | 39.4 |
Other assets | 41.4 | 42.3 |
TOTAL ASSETS | 2,392.80 | 1,747 |
Current liabilities: | ' | ' |
Loans payable to banks | 40.1 | 76.2 |
Accounts payable | 149.3 | 115.4 |
Accrued payroll | 118.8 | 94.2 |
Current portion of warranties | 29.8 | 33.8 |
Taxes payable | 3.8 | 5.7 |
Accrued expenses | 58.7 | 40.9 |
Other accrued liabilities | 84.9 | 79.5 |
Total current liabilities | 485.4 | 445.7 |
Long-term debt | 47 | 0 |
Post-retirement benefits | 438.6 | 430.6 |
Deferred tax liabilities | 120.1 | 29.9 |
Long-term income tax liabilities | 45.3 | 47.7 |
Other liabilities | 59 | 64.4 |
Total liabilities | 1,195.40 | 1,018.30 |
Shareholders' equity: | ' | ' |
Preferred stock, 4,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 400,000,000 shares authorized; shares issued: 77,471,174 in 2013; 75,755,306 in 2012; and shares outstanding: 61,359,025 in 2013; 62,747,151 in 2012 | 0.8 | 0.7 |
Capital surplus | 800.2 | 735.5 |
Treasury stock, at cost: 16,112,149 shares in 2013; 13,008,155 shares in 2012 | -896.6 | -655.8 |
Retained earnings | 1,371.80 | 718.6 |
Accumulated other comprehensive income: | ' | ' |
Foreign currency translation adjustments | -14.4 | -15.4 |
Unrealized losses on benefit plans, net of tax | -109 | -107.2 |
Total shareholders' equity | 1,152.80 | 676.4 |
Noncontrolling interests | 44.6 | 52.3 |
Total equity | 1,197.40 | 728.7 |
TOTAL LIABILITIES AND EQUITY | $2,392.80 | $1,747 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Short-term investments | $55.20 | $0 |
Accounts receivable, allowance for doubtful accounts | $5 | $3.60 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 77,471,174 | 75,755,306 |
Common stock, shares outstanding | 61,359,025 | 62,747,151 |
Treasury stock, shares | 16,112,149 | 13,008,155 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income including noncontrolling interests | $661.90 | $312.50 | $368.20 |
Adjustments to reconcile net income to net cash provided / (used) by operating activities: | ' | ' | ' |
Depreciation | 74.6 | 65.6 | 66.4 |
Amortization of intangibles | 10.6 | 11.3 | 11.8 |
Equity in earnings of unconsolidated joint ventures, net of dividends received | 0.6 | -3 | -2.1 |
Non-cash stock compensation | 13.6 | 14.3 | 13.7 |
Deferred income tax (expense) / benefit | -64.6 | -2.9 | 1.9 |
(Gain)/loss on sale or disposal of property, plant and equipment | -0.2 | 0.3 | 1.1 |
Indemnification settlements, net | 0 | 0 | -23.1 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable, net | -44.3 | -6.2 | -40.1 |
Inventories | -16 | 5.7 | -14.8 |
Accounts payable | 33.1 | -23 | -18.1 |
Other accrued liabilities and taxes | 38.5 | -37.9 | -4.4 |
Post - retirement benefits | -3.4 | -3.5 | -2.3 |
Other current and long-term assets | -28.8 | 23 | -34.8 |
Other long-term liabilities | -9.8 | 2.1 | 8.6 |
Net cash provided by operating activities | 665.8 | 358.3 | 332 |
Investing activities: | ' | ' | ' |
Purchases of property, plant and equipment | -108.1 | -91.7 | -98.3 |
Investments in capitalized software | -13.4 | -8.8 | -6.9 |
Purchases of short-term investments | -55.2 | 0 | 0 |
Acquisitions, net | 0 | -5.1 | 0 |
Net cash used in investing activities | -176.7 | -105.6 | -105.2 |
Financing activities: | ' | ' | ' |
Net borrowings/(repayments) of revolving credit facilities | 1.1 | -11.6 | -46.6 |
Borrowings / (payments) of capital leases | 0 | 0.6 | -0.2 |
Net borrowings of short-term debt | 9.2 | 3.6 | 10.4 |
Purchases of treasury stock | -243.2 | -198.3 | -178.9 |
Purchase of subsidiary shares from noncontrolling interest | 4.6 | 0 | 0 |
Dividends to noncontrolling interest holders | -5.6 | -5.5 | -4.8 |
Proceeds from exercise of stock options | 49.7 | 28.6 | 36.6 |
Net cash used in financing activities | -193.4 | -182.6 | -183.5 |
Effect of exchange rate changes on cash and cash equivalents | 2.1 | 2.5 | -8 |
Net increase in cash and cash equivalents | 297.8 | 72.6 | 35.3 |
Cash and cash equivalents at beginning of period | 175 | 102.4 | 67.1 |
Cash and cash equivalents at end of period | 472.8 | 175 | 102.4 |
Cash paid during the period for: | ' | ' | ' |
Interest | 0.3 | 1.1 | 1.1 |
Income taxes | 45.2 | 30.3 | 54.1 |
Non cash items for the period: | ' | ' | ' |
Treasury stock purchase accrual | $0 | $2.50 | $1.70 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Foreign Currency Translation | Unrealized Losses on Benefit Plans, net of tax | Non Controlling Interests |
In Millions, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2010 | ' | $0.70 | $646.40 | ($276.30) | $59.60 | $33 | ($51.10) | $47.90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 368.2 | ' | ' | ' | 357 | ' | ' | 11.2 |
Foreign currency translation | -54.4 | ' | ' | ' | ' | -49.1 | 0.4 | -5.7 |
Other comprehensive income | 0.1 | ' | ' | ' | ' | ' | 0.1 | ' |
Treasury stock purchased | ' | ' | ' | -180.5 | ' | ' | ' | ' |
Stock options exercised | ' | ' | 36.6 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 10.4 | ' | ' | ' | ' | ' |
Other stock issued | ' | ' | 0 | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | 0 | ' | ' | -4.8 |
Ending Balance at Dec. 31, 2011 | ' | 0.7 | 693.4 | -456.8 | 416.6 | -16.1 | -50.6 | 48.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 312.5 | ' | ' | ' | 302 | ' | ' | 10.5 |
Foreign currency translation | -0.8 | ' | ' | ' | ' | 0.7 | 0 | -1.4 |
Other comprehensive income | -56.6 | ' | ' | ' | ' | ' | -56.6 | ' |
Treasury stock purchased | ' | ' | ' | -199 | ' | ' | ' | ' |
Stock options exercised | ' | ' | 28.5 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 13.6 | ' | ' | ' | ' | ' |
Other stock issued | ' | ' | 0 | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | -5.4 |
Ending Balance at Dec. 31, 2012 | 728.7 | 0.7 | 735.5 | -655.8 | 718.6 | -15.4 | -107.2 | 52.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 661.9 | ' | ' | ' | 653.2 | ' | ' | 8.7 |
Foreign currency translation | -4.1 | ' | ' | ' | ' | 1 | 0 | -5.1 |
Other comprehensive income | -1.8 | ' | ' | ' | ' | ' | -1.8 | ' |
Treasury stock purchased | ' | ' | ' | -240.8 | ' | ' | ' | ' |
Stock options exercised | ' | 0.1 | 49.7 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 13.9 | 0 | ' | ' | ' | ' |
Change in noncontrolling interest | -5.7 | ' | 1.1 | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | -5.6 |
Ending Balance at Dec. 31, 2013 | $1,197.40 | $0.80 | $800.20 | ($896.60) | $1,371.80 | ($14.40) | ($109) | $44.60 |
Description_of_Company
Description of Company | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Company | ' |
Description of Company | |
WABCO Holdings Inc. and its subsidiaries (collectively “WABCO” or “the Company”) develops, manufactures and sells advanced braking, stability, suspension and transmission control systems primarily for commercial vehicles. WABCO’s largest selling products are pneumatic anti-lock braking systems (ABS), electronic braking systems (EBS), automated manual transmission systems, air disc brakes and a large variety of conventional mechanical products such as actuators, air compressors and air control valves for heavy and medium-sized trucks, trailers and buses. We also supply advanced electronic suspension controls and vacuum pumps to the car and SUV markets in Europe, North America and Asia. In addition, we sell replacement parts, diagnostic tools, training, remanufacturing and other services to commercial vehicle aftermarket distributors, repair shops, and fleet operators. WABCO sells its products to four groups of customers around the world: truck and bus original equipment manufacturers (OEMs), trailer OEMs, aftermarket distributors of replacement parts and services and automotive OEMs. | |
WABCO was founded in the United States in 1869 as Westinghouse Air Brake Company. The Company was purchased by American Standard Companies Inc. (American Standard) in 1968 and operated as the Vehicle Control Systems business division within American Standard until the Company was spun off from American Standard on July 31, 2007. Subsequent to the spin-off, American Standard changed its name to Trane Inc., which is herein referred to as “Trane.” On June 5, 2008, Trane was acquired in a merger with Ingersoll-Rand Company Limited (Ingersoll Rand) and exists today as a wholly owned subsidiary of Ingersoll Rand. | |
The spin-off by Trane of its Vehicle Control Systems business became effective on July 31, 2007, through a distribution of 100% of the common stock of WABCO to Trane's shareholders (the Distribution). The Distribution was effected through a separation and distribution agreement pursuant to which Trane distributed all of the shares of WABCO common stock as a dividend on Trane common stock, in the amount of one share of WABCO common stock for every three shares of outstanding Trane common stock to each shareholder on the record date. Trane received a private letter ruling from the Internal Revenue Service and an opinion from tax counsel indicating that the spin-off was tax free to the shareholders of Trane and WABCO. | |
Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company’s chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment and that WABCO’s performance and future net cash flow perspectives are best understood and assessed as such. For purposes of cash flow presentation, the Company has presented both cash flow activities for the revolving credit facilities and short-term debt on a net presentation basis as these items represent cash flow activities with high turnover and large amounts. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Summary of Significant Accounting Policies | ' | ||||||
Summary of Significant Accounting Policies | |||||||
Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes the most complex and sensitive judgments, because of their significance to the condensed consolidated financial statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. Actual results could differ from those estimates. Some of the most significant estimates included in the preparation of the consolidated financial statements are related to allowance for doubtful accounts, inventory reserves, goodwill, warranties, post-retirement benefits, income taxes and stock-based compensation. Allocation methods are described in the notes to these consolidated financial statements where appropriate. | |||||||
Principles of Consolidation and Presentation - All majority owned or controlled subsidiaries of WABCO are included in the consolidated financial statements and intercompany transactions are eliminated upon consolidation. WABCO investments in unconsolidated joint ventures are included at cost plus its equity in undistributed earnings in accordance with the equity method of accounting and reflected as investments in unconsolidated joint ventures in the consolidated balance sheet. Certain amounts in the prior years' consolidated financial statements have been reclassified to conform to the current year presentation. | |||||||
Foreign Currency Translation - Adjustments resulting from translating foreign functional currency assets and liabilities into U.S. Dollars at exchange rates in effect as of the balance sheet date, and income and expense accounts at the average exchange rates in effect during the period, are recorded in a separate component of shareholders' equity as accumulated other comprehensive income. Gains or losses resulting from transactions in other than the functional currency are reflected in the consolidated statement of operations as part of other non-operating income or expense, except for intercompany transactions of a long-term investment nature where the foreign exchange gains or losses from the remeasurement of such intercompany transactions is recorded within accumulated other comprehensive income. | |||||||
Revenue Recognition - Sales of products are recorded (i) upon shipment if title passes to the customer upon shipment, or upon delivery if title passes to the customer upon delivery, (ii) when persuasive evidence of an arrangement exists with the customer, (iii) when the sales price is fixed and determinable, and (iv) when the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. | |||||||
WABCO typically records cooperative advertising allowances, rebates and other forms of sales incentives as a reduction of sales at the later of the date of the sale or the date the incentive is offered. For these costs, WABCO recorded $42.4 million, $36.6 million and $43.0 million in 2013, 2012 and 2011, respectively, in the accompanying consolidated statements of income. | |||||||
In most countries where WABCO operates, sales are subject to VAT taxes. Sales are presented net of VAT in the consolidated statements of income. | |||||||
Shipping and Handling Costs - Shipping, handling, receiving, inspecting, warehousing, internal transfer, procurement and other costs of distribution are included in cost of sales in the consolidated statements of income. | |||||||
Cash and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. Amounts restricted for longer than twelve months are classified as other assets. When restrictions are no longer in place, the amounts are reclassified to cash and cash equivalents. | |||||||
Short-term Investments - Short-term investments consist of a deposit fund holding primarily term deposits, certificates of deposit and short-term bonds. The investments are classified as available-for-sale and are recorded in the consolidated financial statements at market value with changes in market value included in other comprehensive income. The fair value of the investments is determined based on readily available pricing sources for identical instruments in less active markets (Level 2). In the event the investments experience an other-than-temporary impairment in value, such impairment is recognized as a loss in the consolidated statement of operations. The market value of the Company's investments approximated the carrying cost of $55.2 million as of December 31, 2013 with no impairment recognized in 2013. | |||||||
Allowance for Doubtful Accounts - The Company performs ongoing credit evaluations on its customers. In determining the allowance for doubtful accounts, on a monthly basis, WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. | |||||||
Transfers of Financial Instruments - The Company accounts for sales and transfers of financial instruments under ASC 860 "Transfers and Servicing". ASC 860 states that a transfer of financial assets (either all or a portion of a financial asset) in which the transferor surrenders control over those financial assets shall be accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. The Company sells receivables to the bank which qualify as financial assets since they are associated with the sale of products by the subsidiaries of the Company and accepted by the Company's customers in the ordinary course of business. For all receivables sold to the bank, the risks of collection of such receivables reside with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances are recorded by the Company. | |||||||
Inventory Reserves - Inventory costs are determined by the use of the last-in, first-out (LIFO) method, and are stated at the lower of such cost or realizable value. The LIFO method is used as it provides a better matching of the costs to the sales. Inventories are categorized as finished products, products-in-process and raw materials. On a quarterly basis, the Company tests its inventory for slow moving and obsolete stock by considering both the historical and expected sales and the Company will record a provision, if needed. | |||||||
Property, Plant & Equipment - Property, plant and equipment balances, including tooling, are stated at cost less accumulated depreciation. WABCO capitalizes costs, including interest during construction of fixed asset additions, improvements, and betterments that add to productive capacity or extend the asset life. WABCO assesses facilities for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Maintenance and repair expenditures are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the estimated useful life of the asset or asset group, which are 40 years for buildings, 3 to 5 years for tooling and 5 to 15 years for machinery and equipment. | |||||||
Computer Software Costs - WABCO capitalizes the costs of obtaining or developing internal-use computer software, including directly related payroll costs. The Company amortizes those costs on a straight-line basis over periods of up to seven years, beginning when the software is ready for its intended use. The Company assesses capitalized software costs for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. | |||||||
Goodwill - The Company has a significant amount of goodwill on its balance sheet that is not amortized, but subject to impairment tests each fiscal year on October 1 or more often when events or circumstances indicate that the carrying amount of goodwill may not be recoverable. The Company's impairment tests utilize the two-step approach. The first step of the goodwill impairment test compares fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. | |||||||
The recoverability of goodwill is measured based on one reporting unit for the total Company. Our plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment and that WABCO's performance and future net cash flow perspectives are best understood and assessed as such. In order to approximate the fair value of the reporting unit for purposes of testing recoverability, we use the total market capitalization of the Company, a market approach, which is then compared to the total book value of the Company. In the event the Company's fair value has fallen below book value, the Company will compare the estimated fair value of goodwill to its book value. If the book value of goodwill exceeds the estimated fair value of goodwill, the Company will recognize the difference as an impairment loss in operating income. There has been no impairment of goodwill during 2013. | |||||||
Other Intangible Assets with Determinable Lives - Other intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles and are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years. WABCO assesses intangible assets for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. | |||||||
Warranties - Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of sales at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates are updated based upon the most current warranty claims information available. The Company's warranty costs as a percentage of sales totaled 0.8% in 2013, 1.1% in 2012 and 1.5% in 2011. See Note 14 for a summary of warranties. | |||||||
Post-retirement Benefits - All post-retirement benefits are accounted for on an accrual basis using actuarial assumptions. Post-retirement pension benefits are provided for substantially all employees of WABCO, both in the the United States and abroad through plans specific to each of WABCO's legal entities. In addition, in the United States, certain employees receive post-retirement health care and life insurance benefits. The impact of Health Care Reform legislation in the United States is immaterial to the Company. The costs of the benefits provided through plans of WABCO are included in the accompanying consolidated financial statements and summarized in detail along with other information pertaining to these plans in Note 12. Plans are primarily concentrated in the United Kingdom, Austria, Germany, and Switzerland. | |||||||
WABCO is also required to measure a defined benefit post-retirement plan's assets and obligations that determine its funded status as of the end of the employer's fiscal year, and recognize changes in the funded status of a defined benefit post-retirement plan in comprehensive income in the year in which the changes occur. | |||||||
Fair Value of Financial Instruments - Financial instruments consist mainly of cash, accounts receivable, accounts payable and loans payable to banks. At December 31, 2013 and 2012, the carrying amounts of these instruments approximated their fair values. At December 31, 2013, long-term debt also approximated fair value. | |||||||
Derivative Instruments and Hedging Activities - The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value. Changes in the fair value of derivative financial instruments which qualify for hedge accounting are recorded as an offset to the changes in fair value of the underlying hedged item and are included in the account other non-operating expense, net or other operating expense, net. See Note 19 for further details on derivative instruments. | |||||||
Research, Development and Engineering Expenses - Research and development costs are expensed as incurred. WABCO expended approximately $119.4 million in 2013, $104.3 million in 2012 and $105.1 million in 2011 for research activities, product development and for product engineering. | |||||||
Income Taxes - Deferred income taxes are determined on the liability method, and are recognized for all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are permanently reinvested, except for Brazil's current year earnings and $300.0 million of unremitted foreign earnings related to a Belgian affiliate resulting from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine. | |||||||
A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%) based on technical merits, that the position will be sustained upon examination. Tax positions that meet the more likely than not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Tax positions are not permitted to be recognized, derecognized, or remeasured due to changes subsequent to the balance sheet date, but prior to the issuance of the financial statements. Rather, these changes are recorded in the period the change occurs with appropriate disclosure of such subsequent events, if significant. | |||||||
We record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized. We calculated this valuation allowance in accordance with the provisions of ASC 740 “Income Taxes,” which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to decrease the net deferred tax assets would be charged to income in the period such determination was made. Likewise, should we determine that we would be able to realize our deferred tax assets in the future in excess of our net recorded amount, an adjustment to increase the net deferred tax assets would increase income in the period such determination was made. | |||||||
Earnings Per Share - Basic net income per share has been computed using the weighted average number of WABCO common shares outstanding. The average number of outstanding shares of common stock used in computing diluted net income per share includes weighted average incremental shares when the impact is not anti-dilutive. The weighted average incremental shares represent the net amount of shares the Company would issue upon the assumed exercise of in-the-money stock options and vesting of restricted stock units (RSUs) after assuming that the Company would use the proceeds from the exercise of options to repurchase stock. | |||||||
Anti-dilutive shares, if applicable, are excluded and represent those options and RSUs whose assumed proceeds were greater than the average price of the Company's common stock. | |||||||
Year Ended December 31, | |||||||
2013 | 2012 | 2011 | |||||
Weighted average incremental shares included | 908,071 | 1,416,397 | 2,136,376 | ||||
Shares excluded due to anti-dilutive effect | 3,000 | 480,756 | 205,321 | ||||
Comprehensive Income / (Loss) - Comprehensive income / (loss) consists of net income, foreign currency translation adjustments, pension liability adjustments and unrecognized gains or losses on post-retirement benefit plans and is presented in the accompanying consolidated statement of shareholders' equity and comprehensive income. | |||||||
Stock-Based Compensation - WABCO measures and recognizes in its consolidated statement of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs and restricted stock grants based on estimated fair values. | |||||||
All options granted prior to 2007 were adjusted upon the Distribution into two separate options, one relating to the Company's common stock and one relating to Trane common stock. This adjustment was made such that immediately following the Distribution (i) the number of shares relating to the Company options were equal to the number of shares of Company common stock that the option holder would have received in the Distribution had Trane options represented outstanding shares of Trane common stock, and (ii) the per share option exercise price of the original Trane stock option was proportionally allocated between the two types of stock options based upon the relative per share trading prices of the Company and Trane immediately following the Distribution. Thus, upon the Distribution, WABCO options are being held by both WABCO and Trane employees and Trane options continued to be held by WABCO employees. Options granted to WABCO employees in 2007 were equitably adjusted upon Distribution so as to relate solely to shares of the Company's common stock. These adjustments preserved the economic value of the awards immediately prior to the Distribution. All Company options issued as part of this adjustment and the Trane options are fully vested at this time. Further, for purposes of vesting and the post-termination exercise periods applicable to such stock options, the Trane Inc. Management Development and Compensation Committee determined that continued employment with the Company will be viewed as continued employment with the issuer of the options. | |||||||
WABCO uses the Black-Scholes option valuation model to measure the amount of compensation expense to be recognized for each option award. Outstanding WABCO options held by non-WABCO employees or directors arose as a result of the Distribution and are not reflected in compensation expense recognized by the Company. Consequently, these stock options do not result in any tax benefits to the Company at any time. The WABCO options held by non-employees or directors are considered in the Company's diluted EPS calculation. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
Recently Issued Accounting Standards [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
The adoption of recently issued accounting standards did not have a material impact on the consolidated financial statements, nor do we expect the pending adoption of recently issued accounting standards to have a material impact on the consolidated financial statements. | |
In July 2013, the FASB issued Accounting Standards Update (ASU) 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013. We do not expect any material impact from adoption of this guidance on the consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02 Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. ASU 2013-02 aims to improve the reporting of reclassifications out of accumulated other comprehensive income. The entities are required to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income. We adopted the provisions of ASU 2013-02 as of March 31, 2013. |
Streamlining_Expenses
Streamlining Expenses | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||
Streamlining Expenses | ' | ||||||||||||||||
Streamlining Expenses | |||||||||||||||||
The Company classifies employee-related streamlining charges as either a one-time benefit arrangement or an ongoing benefit arrangement as appropriate. The Company accounts for employee related terminations as streamlining when the position is not being replaced. From time to time the Company also has streamlining charges that are not related to employees, such as facility exit costs. | |||||||||||||||||
Based on market declines occurring in the fourth quarter of 2008, we commenced a streamlining program on October 28, 2008 (the 2008/2009 Program), which began with a consultative process with works councils and employee representatives globally. The 2008/2009 Program reduced our global workforce by approximately 1,800 employees. This level of reduction in workforce brought our capacity in line with market demand, while still allowing us to continue our focus on core strategies, including technology, new products, globalization, and quality and productivity initiatives. We believe the completion of these actions created sufficient flexibility in production and helped us to cope with anticipated demand volatility. The Company does not expect to incur any further charges on the 2008/2009 Program. | |||||||||||||||||
Based on the Company’s efforts to maintain our global footprint, the Company will periodically enter into other streamlining programs as deemed necessary (Other Programs). No ongoing individual program is assessed as material, and the Company does not expect to incur significant additional charges for ongoing programs as of December 31, 2013. | |||||||||||||||||
The following is a summary of changes in the Company’s streamlining program liabilities for the year ended December 31, 2013 (amounts in millions). Activity for the period consisted of termination payments and employee-related charges. | |||||||||||||||||
2008 / 2009 Program | |||||||||||||||||
Balance as of December 31, 2012 | $ | 10.2 | |||||||||||||||
Charges during 2013 | — | ||||||||||||||||
Payments during 2013 | (4.3 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 5.9 | |||||||||||||||
Other Programs | |||||||||||||||||
Balance as of December 31, 2012 | $ | 9.9 | |||||||||||||||
Charges during 2013 | 17.9 | ||||||||||||||||
Payments during 2013 | (8.8 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 19 | |||||||||||||||
Total foreign exchange translation effects | $ | 1.2 | |||||||||||||||
Total streamlining liability as of December 31, 2013 | $ | 26.1 | |||||||||||||||
A balance of $13.5 million is included in other liabilities (non-current) and $12.6 million is included in other accrued liabilities (current) as of December 31, 2013. | |||||||||||||||||
The following is a summary of current and cumulative streamlining costs (including employee-related costs shown above as well as asset write-offs and other charges). | |||||||||||||||||
Charges for Year | Cumulative Charges as | ||||||||||||||||
Ended December 31, 2013 | of December 31, 2013 | ||||||||||||||||
2008/2009 | Other | 2008/2009 | Other | ||||||||||||||
Program | Programs | Program | Programs | ||||||||||||||
Employee-related charges – cost of sales | $ | — | $ | 6.6 | $ | 45.7 | $ | 16.6 | |||||||||
Employee-related charges – selling and administrative | — | 10.5 | 45.8 | 20 | |||||||||||||
Total employee related charges | — | 17.1 | 91.5 | 36.6 | |||||||||||||
Asset write-offs | — | 0.8 | — | 1.8 | |||||||||||||
Total program costs | $ | — | $ | 17.9 | $ | 91.5 | $ | 38.4 | |||||||||
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Capital Stock | ' | ||||||||
Capital Stock | |||||||||
The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2013, 2012 and 2011. | |||||||||
Number of Shares of Common Stock | |||||||||
Total Shares | Treasury Shares | Net Shares | |||||||
Outstanding | |||||||||
Balance, December 31, 2010 | 72,415,415 | (5,956,806 | ) | 66,458,609 | |||||
Shares issued upon exercise of stock options | 1,630,838 | — | 1,630,838 | ||||||
Shares issued upon vesting of RSUs | 196,677 | — | 196,677 | ||||||
Shares purchased for treasury | — | (3,520,469 | ) | (3,520,469 | ) | ||||
Balance, December 31, 2011 | 74,242,930 | (9,477,275 | ) | 64,765,655 | |||||
Shares issued upon exercise of stock options | 1,312,288 | — | 1,312,288 | ||||||
Shares issued upon vesting of RSUs | 200,088 | — | 200,088 | ||||||
Shares purchased for treasury | — | (3,530,880 | ) | (3,530,880 | ) | ||||
Balance, December 31, 2012 | 75,755,306 | (13,008,155 | ) | 62,747,151 | |||||
Shares issued upon exercise of stock options | 1,600,850 | — | 1,600,850 | ||||||
Shares issued upon vesting of RSUs | 115,018 | — | 115,018 | ||||||
Shares purchased for treasury | — | (3,103,994 | ) | (3,103,994 | ) | ||||
Balance, December 31, 2013 | 77,471,174 | (16,112,149 | ) | 61,359,025 | |||||
The Company accounts for purchases of treasury stock under the cost method with the costs of such share purchases reflected in treasury stock in the accompanying consolidated balance sheets. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired since the inception of the share buy back programs, net of shares previously reissued and the Company reflects the difference between the average cost paid and the amount received for the reissued shares in capital surplus. As of December 31, 2013, no shares have been reissued. | |||||||||
On May 26, 2011, the Board of Directors approved a program to repurchase shares of the Company's common stock in an amount not to exceed $400 million, which expired on May 31, 2013. On October 26, 2012, the Board of Directors authorized the Company to enter into an additional share repurchase program for $400 million of common shares. An additional repurchase program for $200.0 million of common shares was further authorized on October 29, 2013 as a result of the receipt of an exceptional refund including interest from the European Commission related to the Company's appeal of the EC fine. Both of these authorizations expire on December 31, 2014. | |||||||||
As of December 31, 2013, the Company had repurchased a total of $620.3 million of shares under these three repurchase programs, leaving an unexpended balance of $379.7 million available to repurchase shares in the future. Between January 1, 2014 and February 13, 2014, the Company has repurchased an additional 93,164 shares for a total of $8.5 million. The Company plans to continue to repurchase shares at prevailing market prices. The timing and amount of share repurchases, if any, will depend on a variety of factors including, among other things, share price, market conditions and applicable regulatory requirements. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company's Certificate of Incorporation authorizes the Company to issue up to 400,000,000 shares of common stock, par value $0.01 per share and 4,000,000 shares of preferred stock, par value $0.01 per share. | |||||||||||||||||
The Company paid no dividends on our common stock in 2013, 2012 and 2011. | |||||||||||||||||
The WABCO Holdings Inc. 2007 Omnibus Incentive Plan (the 2007 Omnibus Plan), was formally adopted by our Board of Directors prior to the Distribution. The 2007 Omnibus Plan was replaced in May 2009 by the WABCO Holdings Inc. 2009 Omnibus Incentive Plan (the 2009 Omnibus Plan), and further amended in May 2013 (the 2009 Restated Omnibus Plan) as approved by the shareholders at the Annual Meeting of Shareholders. | |||||||||||||||||
The 2009 Restated Omnibus plan is intended to promote our long-term financial success and increase shareholder value by providing us with greater flexibility to implement the optimal mix of annual and long-term cash, equity and equity-based incentives. It is also intended to align the interests of our employees with the interests of our shareholders by affording them certain opportunities to acquire an interest in our stock. We believe that these incentives and opportunities will encourage our executives and other key employees to continue in our employment, by providing them with a competitive level of compensation that varies based on our performance. | |||||||||||||||||
Under the 2009 Omnibus Plan and 2009 Restated Omnibus Plan, the Company may issue the following types of awards: stock options, stock appreciation rights (sometimes referred to as SARs), restricted stock units, performance stock units, restricted shares, annual incentive awards and long-term incentive awards. The maximum number of shares or units that may be issued under the 2009 Restated Omnibus Plan is 5,100,000. No participant shall be granted stock options, stock appreciation rights, or both with respect to more than 750,000 shares during any calendar year. No individual shall be granted restricted shares or restricted stock units, with respect to 200,000 shares or units as the case may be during any calendar year. If an award under either the 2007 Omnibus Plan, the 2009 Omnibus Plan or the 2009 Restated Omnibus Plan expires or becomes unexercisable without having been exercised in full, or, with respect to full-value incentive awards, is forfeited to or repurchased by the Company, the unpurchased shares will become available for future grant or sale under the 2009 Restated Omnibus Plan. | |||||||||||||||||
At December 31, 2013, a total of 1,596,690 stock options, RSUs and PSUs were outstanding and there were 3,922,565 shares remaining available for grant under the 2009 Restated Omnibus Plan. | |||||||||||||||||
Commencing in 2013, the Company has replaced the stock options component of the equity incentive awards with PSUs, the vesting of which would occur at levels ranging from none to 200% of the number of granted PSUs depending upon the achievement of three-year cumulative earnings per share goals approved by the Compensation, Nominating and Governance Committee of the Board of Directors. The Company assesses the expected achievement levels at the end of each reporting period. As of December 31, 2013, the Company believes it is probable that the performance condition will be met and has accrued for the compensation expense accordingly. | |||||||||||||||||
The Company records stock-based compensation based on the estimated fair value of the award at the grant date and is recognized as an expense in the consolidated statements of income over the requisite service period. Total stock-based compensation cost recognized during the years ended December 31, 2013, 2012 and 2011 were as follows (amounts in millions): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation (before tax effects) | $ | 13.6 | $ | 14.3 | $ | 13.7 | |||||||||||
The total number and type of awards granted during the periods presented and the related weighted-average grant-date fair values were as follows: | |||||||||||||||||
Shares underlying options | Weighted - Average Exercise Price | Weighted - Average Grant Date Fair Value | |||||||||||||||
WABCO employees | Trane employees | Total | |||||||||||||||
Options Outstanding December 31, 2010 | 4,076,757 | 1,265,033 | 5,341,790 | $ | 26.02 | ||||||||||||
Options Granted | 276,287 | — | 276,287 | $ | 59.24 | $ | 22.94 | ||||||||||
Options Exercised | (1,228,475 | ) | (403,731 | ) | (1,632,206 | ) | $ | 22.52 | |||||||||
Options Forfeited | (34,329 | ) | (8,865 | ) | (43,194 | ) | $ | 34.12 | |||||||||
Options Outstanding December 31, 2011 | 3,090,240 | 852,437 | 3,942,677 | $ | 29.61 | ||||||||||||
Options Granted | 284,691 | — | 284,691 | $ | 58.71 | $ | 23.1 | ||||||||||
Options Exercised | (1,037,538 | ) | (279,205 | ) | (1,316,743 | ) | $ | 21.9 | |||||||||
Options Forfeited | (37,260 | ) | (5,173 | ) | (42,433 | ) | $ | 40.74 | |||||||||
Options Outstanding December 31, 2012 | 2,300,133 | 568,059 | 2,868,192 | $ | 35.82 | ||||||||||||
Options Granted | — | — | — | $ | — | $ | — | ||||||||||
Options Exercised | (1,359,825 | ) | (242,243 | ) | (1,602,068 | ) | $ | 31.08 | |||||||||
Options Forfeited | (53,391 | ) | (200 | ) | (53,591 | ) | $ | 52.71 | |||||||||
Options Outstanding December 31, 2013 | 886,917 | 325,616 | 1,212,533 | $ | 41.2 | ||||||||||||
Exercisable at December 31, 2013 | 630,570 | 325,616 | 956,186 | $ | 37.3 | ||||||||||||
RSUs Outstanding December 31, 2010 | 523,393 | $ | 19.93 | ||||||||||||||
RSUs Granted | 220,181 | $ | 62.44 | ||||||||||||||
RSUs Vested | (245,035 | ) | $ | 19.87 | |||||||||||||
RSUs Forfeited | (13,695 | ) | $ | 37.55 | |||||||||||||
RSUs Outstanding December 31, 2011 | 484,844 | $ | 38.8 | ||||||||||||||
RSUs Granted | 133,804 | $ | 58.47 | ||||||||||||||
RSUs Vested | (232,980 | ) | $ | 23.14 | |||||||||||||
RSUs Forfeited | (19,937 | ) | $ | 53.63 | |||||||||||||
RSUs Outstanding December 31, 2012 | 365,731 | $ | 55.08 | ||||||||||||||
RSUs Granted | 119,728 | $ | 68.72 | ||||||||||||||
RSUs Vested | (138,005 | ) | $ | 44.34 | |||||||||||||
RSUs Forfeited | (47,707 | ) | $ | 60.86 | |||||||||||||
RSUs Outstanding December 31, 2013 | 299,747 | $ | 64.79 | ||||||||||||||
PSUs Granted | 94,364 | $ | 68.1 | ||||||||||||||
PSUs Forfeited | (9,954 | ) | $ | 68.1 | |||||||||||||
PSUs Outstanding December 31, 2013 | 84,410 | $ | 68.1 | ||||||||||||||
There were no stock options granted in 2013. In 2012 and 2011, a total of 284,691 and 276,287 options were granted, respectively, of which all are exercisable in equal installments over a period of three years. | |||||||||||||||||
In 2013, a total of 119,728 RSUs were granted of which 109,254 vest in equal annual installments over a period of three years. Of the remaining 10,474 RSUs granted in 2013, 6,764 vest immediately and 3,710 vest after three years. In 2012, a total of 133,804 RSUs were granted of which 103,581 vest in equal annual installments over a period of three years, 11,023 vest immediately, 6,454 vest after two years and 12,746 vest after three years. In 2011, a total of 220,181 RSUs were granted of which 101,647 vest in equal annual installments over a period of three years, 3,973 vest after two years, 41,064 vest after three years and 73,497 vest after four years. | |||||||||||||||||
In 2013, a total of 94,364 PSUs were granted, the vesting of which would occur, if at all, and at levels depending upon, the achievement of certain three-year cumulative earnings per share goals. | |||||||||||||||||
As of December 31, 2013, the total aggregate intrinsic value of stock option awards outstanding was $61.3 million. The total aggregate intrinsic value of options exercisable and options outstanding, less expected forfeitures, as of the same date was $52.3 million and $61.2 million, respectively. Aggregate intrinsic value is calculated by subtracting the exercise price of the option from the closing price of the Company's common stock on December 31, 2013, multiplied by the number of shares per each option. | |||||||||||||||||
The total intrinsic value of options exercised was $69.9 million, $49.9 million and $68.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Total fair value of shares vested was $9.5 million, $14.2 million and $13.2 million during the year ended December 31, 2013, 2012 and 2011 respectively. The 615,371 of unvested options, RSUs and PSUs as of December 31, 2013 will result in the recognition of $19.8 million of compensation cost to be recognized over a weighted average period of 1.8 years. | |||||||||||||||||
The contractual life of all options is 10.0 years. The weighted average remaining contractual life of options outstanding as of December 31, 2013 was 4.7 years, while that of the vested options was 4.0 years. The tax benefit from stock options exercised during the period was $1.8 million for the year ended December 31, 2013 and immaterial for the years ended December 31, 2012 and 2011. | |||||||||||||||||
The weighted average grant date fair value was calculated under the Black-Scholes option-pricing model. The following table summarizes the significant assumptions used for the grants during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Assumption | 2013 | 2012 | 2011 | ||||||||||||||
Risk-free interest rate | N/A | 0.81 | % | 2.3 | % | ||||||||||||
Expected volatility | N/A | 44.48 | % | 42.82 | % | ||||||||||||
Expected holding period | N/A | 5 years | 5 years | ||||||||||||||
Expected dividend yield | N/A | — | % | 0.47 | % | ||||||||||||
The risk free interest rate is based on the yield of U.S. Treasury securities that correspond to the expected holding period of the options. WABCO reviewed the historic volatility of its common stock over a four-year period, the common stock of its peer group over a five-year period, and the implied volatility for at the money options to purchase shares of its common stock. The five-year historical volatility period was selected since that period corresponds with the expected holding period. Based on this data, the Company chose to use a weighted average of the implied volatility of WABCO, the most recent four-year historical volatility of WABCO and the median most recent three-year historical volatility of WABCO’s peer group prior to the spin-off date. The expected holding period was calculated by reviewing the historical exercise pattern of all holders that were granted options and the exercise behavior of officers versus non-officers. The results of the analysis support one expected holding period for all groups of employees. The dividend yield was based on an expected future dividend amount for the period at the time of grant. |
Other_Operating_and_NonOperati
Other Operating and Non-Operating Expense / (Income), Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Operating and Non-Operating Expense / (Income), Net | ' | |||||||||||
Other Operating and Non-Operating Expense / (Income), Net | ||||||||||||
Other expense/(income) was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Operating: | ||||||||||||
Bank charges | $ | 2 | $ | 1.5 | $ | 1.7 | ||||||
Miscellaneous taxes | 2.9 | 2.4 | 1.8 | |||||||||
Other expense/(income), net | 0.1 | (0.7 | ) | 2.3 | ||||||||
$ | 5 | $ | 3.2 | $ | 5.8 | |||||||
Non-operating: | ||||||||||||
Indemnification settlements, net | $ | (8.8 | ) | $ | 3.4 | $ | (22.8 | ) | ||||
Receivable discount fees | 1 | 1.1 | 2.3 | |||||||||
Foreign exchange (gain)/loss | (2.3 | ) | 0.8 | (0.6 | ) | |||||||
Other expense/(income), net | 3.2 | (0.3 | ) | 0.9 | ||||||||
$ | (6.9 | ) | $ | 5 | $ | (20.2 | ) | |||||
Inventories
Inventories | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||
Inventories | ' | |||||||||
Inventories | ||||||||||
The components of inventories, which are carried on a last-in, first-out (LIFO) basis, are as follows: | ||||||||||
Year Ended December 31, | ||||||||||
(Amounts in millions) | 2013 | 2012 | ||||||||
Finished products | $ | 93.9 | $ | 76.9 | ||||||
Products in process | 7.2 | 7.1 | ||||||||
Raw materials | 106.1 | 107.8 | ||||||||
Inventories at cost | $ | 207.2 | $ | 191.8 | ||||||
The current replacement cost approximated the LIFO carrying cost for 2013 and 2012. Inventory reserves amounted to $17.2 million and $14.4 million for the years ended December 31, 2013 and December 31, 2012, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
The components of property, plant and equipment, at cost, are as follow: | ||||||||
Year Ended December 31, | ||||||||
(Amounts in millions) | 2013 | 2012 | ||||||
Land | $ | 23.8 | $ | 22.3 | ||||
Buildings | 178.7 | 164.1 | ||||||
Machinery and equipment | 659 | 618.3 | ||||||
Improvements in progress | 39.2 | 25.7 | ||||||
Gross property, plant and equipment | 900.7 | 830.4 | ||||||
Less: accumulated depreciation | 478.2 | 441.4 | ||||||
Net property, plant and equipment | $ | 422.5 | $ | 389 | ||||
Depreciation expense for owned assets, including those under capital leases, for the years ended December 31, 2013, 2012 and 2011 was $74.6 million, $65.6 million and $66.4 million, respectively. | ||||||||
Net property, plant and equipment includes tooling investments of $80.6 million and $74.5 million for the years ended December 31, 2013 and 2012 respectively. |
Accounts_Receivable_Securitiza
Accounts Receivable Securitization Program & Financing Receivables | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable Financing Facility [Abstract] | ' |
Accounts Receivable Securitization Program & Financing Receivables | ' |
Accounts Receivable Securitization Program & Financing Receivables | |
On September 23, 2009, the Company established an accounts receivable securitization program (the Accounts Receivable Securitization Program) with Société Générale Bank Nederland N.V. The maximum funding from receivables that may be sold into the Accounts Receivable Securitization Program and outstanding at any point in time is €80 million, following the voluntary reduction in January 2013 of the program from €100 million to €80 million; however, there can be no assurance that the Company will generate sufficient eligible receivables to access the maximum availability. The original term of the Accounts Receivable Securitization Program was for one year, with the possibility of four additional annual extensions, assuming the Company and the participating sellers are in compliance with the applicable covenants. The Company extended the Accounts Receivable Securitization Program in September 2013 for one additional year. | |
During the year ended December 31, 2013, the Company sold all of its eligible receivables into the Accounts Receivable Securitization Program. In addition to the above, the Company has the ability to access cash on a daily basis related to collections on sold receivables prior to the following settlement date with the bank. | |
The sold receivables were removed from the balance sheet in accordance with the guidance under ASC 860. The total amount of receivables sold under the Accounts Receivable Securitization Program for the year ended December 31, 2013 was €790.8 million ($1,050.6 million at weighted average 2013 exchange rates), compared to €731.7 million ($941.1 million at weighted average 2012 exchange rates) for the year ended December 31, 2012 and €816.8 million ($1,136.8 million at weighted average 2011 exchange rates) for the year ended December 31, 2011. The amount of eligible receivables sold and outstanding at December 31, 2013 amounted to €75.0 million ($103.6 million at December 31, 2013 exchange rates) compared to €67.4 million ($89.1 million at December 31, 2012 exchange rates) at December 31, 2012. | |
As a result of the sale, accounts receivable decreased by $103.6 million and cash and cash equivalents increased by $51.5 million in 2013, compared to $89.1 million and $51.7 million, respectively, in 2012. The remaining amount of proceeds of $52.1 million is a subordinated deposit, before the effect of cash collections, with Société Générale Bank Nederland N.V. at December 31, 2013, compared to $37.4 million at December 31, 2012. | |
As a result of the Company's access to the cash collections of the sold receivables, the Company collected $53.9 million of additional cash as of December 31, 2013, compared to $39.1 million at December 31, 2012. Of these cash receipts, $36.4 million is classified on the consolidated balance sheet as loans payable to bank, compared to $27.7 million at December 31, 2012. The remaining balance of $17.5 million reduced the subordinated deposit to $34.6 million, the balance of which is classified as restricted cash on the consolidated balance sheet at December 31, 2013. The subordinated deposit at December 31, 2012 stood at $26.0 million. | |
Also, as of December 31, 2013, the Company had pledged unsold receivables under the Accounts Receivable Securitization Program of €3.2 million ($4.4 million at December 31, 2013 exchange rates), compared to €9.8 million ($12.9 million at December 31, 2012 exchange rates) in 2012. | |
The fair value of the receivables sold equaled the carrying cost at time of sale, and no gain or loss was recorded as a result of the sale. The Company estimates the fair value of sold receivables using Level 3 inputs based on historical and anticipated performance of similar receivables, including historical and anticipated credit losses (if any). As part of the Accounts Receivable Securitization Program, the Company continues to service the receivables. The Company sells the receivables at face value, but receives actual funding net of the subordinated deposit account until collections are received from customers for the receivables sold. The Company is exposed to the credit losses of sold receivables up to the amount of its subordinated deposit account at each settlement date. Credit losses for receivables sold and past due amounts outstanding at December 31, 2013 and 2012 were both immaterial. Servicing fees paid for the program were $0.8 million, $0.8 million and $1.4 million for the years ended December 31, 2013, 2012 and 2011 respectively. | |
On April 15, 2009, the Company entered into a €35 million factoring program, which has a term of five years, in respect to accounts receivable from one of our customers. To date, we have not utilized this facility. | |
Other financing receivables include sales to reputable State Owned and Public Enterprises in China that are settled through notes receivable which are registered and endorsed to the Company. These notes receivable are fully secured and generally have contractual maturities of six months or less. These guaranteed notes are available to be discounted with banking institutions in China or transferred to suppliers to settle liabilities. The total amount of notes receivable discounted or transferred for the years ended December 31, 2013, 2012 and 2011 was $42.8 million, $33.3 million and $62.8 million, respectively. There were no expenses for the year ended December 31, 2013, compared to $0.1 million and $0.6 million for the years ended December 31, 2012 and 2011, respectively, which are included in “other non-operating expense, net.” The fair value of these guaranteed notes receivable is determined based on Level 2 inputs including credit ratings and other criteria observable in the market. The fair value of these notes equal their carrying amounts of $51.4 million and $41.2 million as of December 31, 2013 and 2012, respectively, and are included in “other current assets” on the consolidated balance sheets. | |
The Company monitors the credit quality of both the drawers of the draft and guarantors on a monthly basis by reviewing various factors such as payment history, level of state involvement in the institution, size, national importance as well as current economic conditions in China. Since the Company has not experienced any historical losses nor is the Company expecting future credit losses based on a review of the various credit quality indicators described above, we have not established a loss provision against these receivables as of December 31, 2013 or 2012. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Goodwill and Intangible Assets | |||||||||||||
The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012. | |||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in millions) | 2013 | 2012 | |||||||||||
Balance of goodwill, beginning of year | $ | 371.7 | $ | 363.9 | |||||||||
Acquisitions | — | 3.6 | |||||||||||
Foreign exchange translation | 9.5 | 4.2 | |||||||||||
Balance of goodwill, end of year | $ | 381.2 | $ | 371.7 | |||||||||
The changes in the carrying value of intangible assets for the years ended December 31 are as follow: | |||||||||||||
Capitalized Software | Other Intangible Assets | Total | |||||||||||
Gross intangible assets as of: | |||||||||||||
December 31, 2010 | $ | 89.2 | $ | 23.6 | $ | 112.8 | |||||||
Additions | 6.9 | 2.1 | 9 | ||||||||||
Disposals | (2.6 | ) | — | (2.6 | ) | ||||||||
Foreign exchange translation | (2.6 | ) | (2.9 | ) | (5.5 | ) | |||||||
December 31, 2011 | 90.9 | 22.8 | 113.7 | ||||||||||
Additions | 8.7 | 4.6 | 13.3 | ||||||||||
Disposals | (4.5 | ) | (4.5 | ) | |||||||||
Foreign exchange translation | 0.4 | (0.4 | ) | — | |||||||||
December 31, 2012 | 95.5 | 27 | 122.5 | ||||||||||
Additions | 13.5 | 2.2 | 15.7 | ||||||||||
Disposals | (1.9 | ) | (0.5 | ) | (2.4 | ) | |||||||
Foreign exchange translation | 4.3 | (0.2 | ) | 4.1 | |||||||||
December 31, 2013 | $ | 111.4 | $ | 28.5 | $ | 139.9 | |||||||
Accumulated amortization as of: | |||||||||||||
December 31, 2010 | $ | (67.5 | ) | $ | (5.2 | ) | $ | (72.7 | ) | ||||
Amortization expense | (7.5 | ) | (2.8 | ) | (10.3 | ) | |||||||
Disposals | 2.5 | — | 2.5 | ||||||||||
Foreign exchange translation | 2 | 0.5 | 2.5 | ||||||||||
December 31, 2011 | (70.5 | ) | (7.5 | ) | (78.0 | ) | |||||||
Amortization expense | $ | (6.6 | ) | $ | (2.9 | ) | $ | (9.5 | ) | ||||
Disposals | 4.3 | 4.3 | |||||||||||
Foreign exchange translation | — | 0.1 | 0.1 | ||||||||||
December 31, 2012 | (72.8 | ) | (10.3 | ) | (83.1 | ) | |||||||
Amortization expense | (7.5 | ) | (3.1 | ) | (10.6 | ) | |||||||
Disposals | 1.9 | 0.4 | 2.3 | ||||||||||
Foreign exchange translation | (3.4 | ) | (0.8 | ) | (4.2 | ) | |||||||
December 31, 2013 | $ | (81.8 | ) | $ | (13.8 | ) | $ | (95.6 | ) | ||||
Net intangible assets as of: | |||||||||||||
December 31, 2013 | $ | 29.6 | $ | 14.7 | $ | 44.3 | |||||||
The Company expects to incur approximately $10 million to $12 million of amortization expense for each of the next three fiscal years. |
Postretirement_Benefits
Post-retirement Benefits | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||
Post-retirement Benefits | ' | ||||||||||||||||||
Post-retirement Benefits | |||||||||||||||||||
WABCO employees participate in a number of benefit plans. The plans include a 401(k) savings plan for the Company's U.S. salaried and hourly employees, which is an individual-account defined contribution plan. WABCO employees in certain countries including Germany, the United Kingdom, France and Switzerland, participate in defined benefit plans or retiree medical plans sponsored by local WABCO legal entities. | |||||||||||||||||||
Further, WABCO has assumed responsibility for certain retiree medical plans in the United States and a pension plan in Germany relating to former employees of Trane's Bath & Kitchen division. | |||||||||||||||||||
Benefits under defined benefit pension plans on a worldwide basis are generally based on years of service and either employee compensation during the last years of employment or negotiated benefit levels. | |||||||||||||||||||
WABCO recognizes in its consolidated balance sheetsan asset for a defined benefit post-retirement plan's overfunded status or a liability for a plan's underfunded status. The long-term liability of $438.6 million on the consolidated balance sheet is primarily due to the underfunded plan in Germany, where the majority of the Company's prior and current employees are based. | |||||||||||||||||||
The following table provides a reconciliation of the changes in pension and retirement health and life insurance benefit obligations and fair value of assets for the years ending December 31, 2013 and 2012, and a statement of the funded status as of December 31, 2013 and 2012: | |||||||||||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of benefit obligation: | |||||||||||||||||||
Obligation at beginning of year | $ | 15 | $ | 585.4 | $ | 15.2 | $ | 487.7 | |||||||||||
Service cost | 0.1 | 12.7 | 0.1 | 9.1 | |||||||||||||||
Interest cost | 0.5 | 20.8 | 0.6 | 22.3 | |||||||||||||||
Participant contributions | 0.4 | 0.2 | 0.3 | 0.3 | |||||||||||||||
Plan amendments | — | — | — | (4.5 | ) | ||||||||||||||
Actuarial loss / (gain) | — | (7.7 | ) | 1 | 83.8 | ||||||||||||||
Benefit payments | (2.0 | ) | (28.4 | ) | (2.2 | ) | (27.9 | ) | |||||||||||
Foreign exchange effects | — | 22.3 | — | 15.2 | |||||||||||||||
Other | — | 0.9 | — | (0.6 | ) | ||||||||||||||
Obligation at end of year | $ | 14 | $ | 606.2 | $ | 15 | $ | 585.4 | |||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of fair value of plan assets: | |||||||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | 172.1 | $ | — | $ | 154.6 | |||||||||||
Actual return on assets | — | 3.7 | — | 12.8 | |||||||||||||||
Employer contributions | 1.6 | 27.4 | 1.9 | 26.4 | |||||||||||||||
Participant contributions | 0.4 | 0.2 | 0.3 | 0.3 | |||||||||||||||
Benefit payments | (2.0 | ) | (28.4 | ) | (2.2 | ) | (27.9 | ) | |||||||||||
Foreign exchange effects | — | 4 | — | 7.2 | |||||||||||||||
Other expenses | — | (0.9 | ) | — | (1.3 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 178.1 | $ | — | $ | 172.1 | |||||||||||
Funded Status at December 31 | $ | (14.0 | ) | $ | (428.1 | ) | $ | (15.0 | ) | $ | (413.3 | ) | |||||||
Amounts recognized in the balance sheet: | |||||||||||||||||||
Noncurrent assets | $ | — | $ | 20.1 | $ | — | $ | 23.2 | |||||||||||
Current liabilities | (1.7 | ) | (21.9 | ) | (1.7 | ) | (19.2 | ) | |||||||||||
Noncurrent liabilities | (12.3 | ) | (426.3 | ) | (13.3 | ) | (417.3 | ) | |||||||||||
Net amounts recognized in balance sheet: | $ | (14.0 | ) | $ | (428.1 | ) | $ | (15.0 | ) | $ | (413.3 | ) | |||||||
Cumulative amounts recognized in other comprehensive income consist of: | |||||||||||||||||||
Prior service cost | $ | 0.2 | $ | — | $ | 0.2 | $ | 0.1 | |||||||||||
Net actuarial loss | 7.2 | 147 | 7.4 | 148.3 | |||||||||||||||
Total (before tax effects) | $ | 7.4 | $ | 147 | $ | 7.6 | $ | 148.4 | |||||||||||
$5.6 million of the amount in other comprehensive income as of December 31, 2013 is expected to be recognized as post-retirement costs in 2014. | |||||||||||||||||||
The following table provides a summary of pension plans with accumulated benefit obligations in excess of assets as of December 31: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(Amounts in millions) | Foreign Pension Plans | Foreign Pension Plans | |||||||||||||||||
For all plans: | |||||||||||||||||||
Accumulated benefit obligation | $ | 545.8 | $ | 528.1 | |||||||||||||||
For pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||
Accumulated benefit obligation | $ | 390.9 | $ | 382.1 | |||||||||||||||
Total post-retirement costs are shown below: | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Foreign pensions | $ | 30.9 | $ | 20.2 | $ | 25.1 | |||||||||||||
Health & Life insurance benefits (Americas) | 1 | 1 | 1 | ||||||||||||||||
Total post-retirement costs, including accretion expense | $ | 31.9 | $ | 21.2 | $ | 26.1 | |||||||||||||
Components of post-retirement costs are broken out in the tables below: | |||||||||||||||||||
Pension Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Service cost-benefits earned during period | $ | 12.7 | $ | 9.2 | $ | 8.6 | |||||||||||||
Interest cost on projected benefit obligation | 20.8 | 22.3 | 24.4 | ||||||||||||||||
Less: assumed return on plan assets | (8.8 | ) | (8.6 | ) | (10.0 | ) | |||||||||||||
Amortization of prior service cost | 0.1 | (0.1 | ) | — | |||||||||||||||
Amortization of net loss | 6.1 | 1.7 | 2.1 | ||||||||||||||||
Plan amendments | — | (4.3 | ) | — | |||||||||||||||
Net defined benefit plan cost after amendments | $ | 30.9 | $ | 20.2 | $ | 25.1 | |||||||||||||
Other Post-Retirement Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Interest and service cost on projected benefit obligation | $ | 0.6 | $ | 0.6 | $ | 0.7 | |||||||||||||
Amortization of net loss | 0.4 | 0.4 | 0.3 | ||||||||||||||||
Defined benefit plan cost | $ | 1 | $ | 1 | $ | 1 | |||||||||||||
Amortization of prior service cost is computed on the straight-line method over the average remaining service period of active participants. | |||||||||||||||||||
Major assumptions used in determining the benefit obligation and net cost for post-retirement plans are presented below as weighted averages: | |||||||||||||||||||
Benefit Obligation at December 31 | 2013 Health & Life Ins. Benefits | 2013 Foreign Pension Plans | 2012 Health & Life Ins. Benefits | 2012 Foreign Pension Plans | |||||||||||||||
Discount rate | 4 | % | 3.7 | % | 3.25 | % | 3.63 | % | |||||||||||
Salary growth | N/A | 3.18 | % | N/A | 3.22 | % | |||||||||||||
Net Periodic Pension Cost for the year | |||||||||||||||||||
Discount rate | 3.25 | % | 3.63 | % | 4.25 | % | 4.68 | % | |||||||||||
Salary growth | N/A | 3.22 | % | N/A | 3.22 | % | |||||||||||||
Expected return on plan assets | N/A | 5.38 | % | N/A | 5.78 | % | |||||||||||||
The discount rate assumption in this chart changed from 2012 to 2013, resulting in a change in the pension benefit obligation. In the chart above that reconciles the change in benefit obligations for the year, the impact of the discount rate change is included in the actuarial loss/(gain) line item. The discount rate noted for foreign pension plans is a weighted average rate based on each of the applicable country's rates. | |||||||||||||||||||
The assumed rate of return is a long-term investment return that takes into account the classes of assets held by the plan and expected returns for each class of assets. Return expectations reflect forward-looking analysis as well as historical experience. | |||||||||||||||||||
WABCO's asset management strategy focuses on maintaining a diversified portfolio using various classes of assets to generate attractive returns while managing risk. The Company periodically reviews its target asset allocations for a given plan to ensure it aligns with the asset management strategy. In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. | |||||||||||||||||||
Asset Allocation | 2013 | 2012 | 2013 Target | 2012 Target | |||||||||||||||
Equity securities | 22 | % | 19 | % | 24 | % | 24 | % | |||||||||||
Debt securities | 24 | % | 76 | % | 71 | % | 71 | % | |||||||||||
Insurance contracts | 46 | % | — | % | — | % | — | % | |||||||||||
Other * | 8 | % | 5 | % | 5 | % | 5 | % | |||||||||||
* Included in "other" above are investments in mutual funds held in real estate. | |||||||||||||||||||
In July 2013, the Company purchased a buy-in contract from an insurance company related to a group of existing retirees covered under our United Kingdom pension plan as of that date. The buy-in did not trigger settlement accounting, and resulted in a shift in the 2013 asset allocation versus target. | |||||||||||||||||||
All assets are measured at the current fair value. The fair value of the insurance contract is determined based on applicable discount rates and other observable inputs (Level 2). For all other assets, the Company determines fair value for each class of assets in its entirety using quoted prices in active markets for identical assets (Level 1). The Company has not changed the valuation techniques and inputs used during the periods presented. The fair values for each class of assets are presented below: | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | |||||||||||||||||
Equity securities | $ | 40 | $ | 32.2 | |||||||||||||||
Debt securities | 42.5 | 130.1 | |||||||||||||||||
Insurance contracts | 82.2 | — | |||||||||||||||||
Other * | 13.4 | 9.8 | |||||||||||||||||
Total fair value of plan assets | $ | 178.1 | $ | 172.1 | |||||||||||||||
* Included in "other" above are investments in mutual funds held in real estate | |||||||||||||||||||
WABCO makes contributions to funded pension plans that at a minimum, meet all statutory funding requirements. Contributions in 2013, including payment of benefits incurred by unfunded plans, totaled $27.4 million. Contributions in 2014 are expected to be in line with the contributions made during 2013. | |||||||||||||||||||
Expected future benefit payments are shown in the table below: | |||||||||||||||||||
(Amounts in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | |||||||||||||
Domestic plans without subsidy | $ | 1.8 | $ | 1.7 | $ | 1.5 | $ | 1.4 | $ | 1.3 | $ | 5 | |||||||
Foreign pension plans | $ | 29.2 | $ | 29.4 | $ | 29.9 | $ | 29.7 | $ | 29.6 | $ | 152.5 | |||||||
The weighted average annual assumed rate of increase in the health care cost trend rate was 8.0% for 2012, 7.0% for 2013 and is assumed to lower to 6.75% in 2014 and then gradually decline to 4.75% by 2022. The health care cost trend rate assumption has the following effect: | |||||||||||||||||||
(Amounts in millions) | 1% Increase | 1% Decrease | |||||||||||||||||
Effect on the health care component of accumulated post-retirement obligation | $ | 0.9 | $ | (0.8 | ) | ||||||||||||||
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs | $ | — | $ | — | |||||||||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
On July 8, 2011, the Company entered into a $400 million multi-currency five-year senior unsecured revolving credit facility (revolving credit facility) with the lenders and agent banks party thereto, including Banc of America Securities Limited as agent, issuing bank and swingline lender, and Banc of America Securities Limited, Citigroup Global Markets Limited, Fortis Bank S.A./N.V., ING Belgium SA/NV, Société Générale Corporate & Investment Banking, The Bank of Tokyo-Mitsubishi UFJ, Ltd and The Royal Bank of Scotland NV, (Belgium) Branch, as mandated lead arrangers and bookrunners and Credit Lyonnais and Unicredit Bank AG as lead arrangers. | |
As of December 31, 2013, this is our principal bank credit facility, and it expires on September 1, 2018. The original expiry date of September 1, 2016 was extended through an amendment to the current expiry date. | |
Under the revolving credit facility, the Company may borrow, on a revolving basis, loans in an aggregate principal amount at any one time outstanding not in excess of $400 million. Up to $50 million under this facility may be used for issuing letters of credit, of which $48.8 million was unused as of December 31, 2013, and up to $50 million is available in the form of swingline loans, all $50 million of which was available for use as of December 31, 2013. At December 31, 2013 and 2012, the carrying amount of this facility approximated fair value based upon Level 2 inputs. | |
The balance outstanding on this facility as of December 31, 2013 was $47.0 million in addition to $1.2 million of letters of credit, compared to $46.3 million and $1.3 million as of December 31, 2012, respectively. The balance outstanding is classified as long-term debt on the consolidated balance sheet as of December 31, 2013 since, contrary to the balance outstanding as of December 31, 2012, the Company does not intend to repay the balance within the next 12 months. The aggregate interest rate applicable on loan drawings at December 31, 2013 and 2012 was respectively 1.04% and 0.93%. | |
The proceeds of the borrowings under the revolving credit facility may be used to repurchase WABCO shares, finance acquisitions, refinance existing indebtedness and meet general financing requirements. | |
Interest on loans under the revolving credit facility will be calculated at a rate per annum equal to an applicable margin which can vary from 0.80% to 1.55% based on the Company's leverage ratio plus LIBOR for loans denominated in U.S. Dollars, EURIBOR for loans denominated in Euros, HIBOR for loans denominated in Hong Kong Dollars and SIBOR for loans denominated in Singapore Dollars, plus mandatory costs, if any. | |
The applicable margins used to determine the LIBOR loan rate are determined based upon the Company's leverage ratio, which represents the ratio of our consolidated net indebtedness on the last day of any fiscal quarter to consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for certain items) for the period of four consecutive fiscal quarters ending on such day. The revolving credit facility also provides for certain of the borrowers to pay various fees including a participation fee on the amount of the lenders' commitments thereunder. | |
The revolving credit facility contains terms and provisions (including representations, covenants and conditions) customary for credit agreements of this type. Our primary financial covenant is a leverage test which requires net indebtedness not to exceed three times adjusted four quarter trailing EBITDA. Additional financial covenants include an interest coverage test and a maximum subsidiary indebtedness test. The interest coverage test requires three times interest expense not to exceed adjusted four quarter trailing EBITDA. The maximum subsidiary indebtedness test limits the total aggregate amount of indebtedness of WABCO's subsidiaries, excluding indebtedness under the revolving credit facility, to $400 million, of which not more than $150 million may be secured. Financial covenants are not subject to any future changes in U.S. GAAP accounting standards and all cash on the balance sheet can be deducted for net indebtedness purposes. In addition, expenses and payments related to any streamlining of WABCO’s operations are excluded when calculating the four quarter trailing adjusted EBITDA. Other covenants include delivery of financial reports and other information, compliance with laws including environmental laws and permits, ERISA and U.S. regulations, limitations on liens, mergers and sales of assets and change of business. At December 31, 2013 the Company had the ability to borrow an incremental $351.8 million under our revolving credit facility, compared to $352.4 million at December 31, 2012, and we were in compliance with all the covenants. | |
As of December 31, 2013, the Company's various subsidiaries had borrowings from banks totaling $40.1 million, of which $36.4 million related to our Accounts Receivable Securitization Program referred to in Note 10 above, compared to respectively $29.5 million and $27.7 million at December 31, 2012. The remaining $3.7 million balance at December 31, 2013 supports local working capital requirements. |
Warranties_Guarantees_Commitme
Warranties, Guarantees, Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Warranties, Guarantees, Commitments and Contingencies | ' | |||||||||||
Warranties, Guarantees, Commitments and Contingencies | ||||||||||||
Warranties | ||||||||||||
Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of goods sold at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates and the allocation of warranty between short and long term are updated based upon the most current warranty claims information available. | ||||||||||||
The following is a summary of changes in the Company’s product warranty liability for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Balance of warranty costs accrued, beginning of period | $ | 55.2 | $ | 52.6 | $ | 44.9 | ||||||
Warranty costs accrued | 21.4 | 27.1 | 41.9 | |||||||||
Warranty claims settled | (26.5 | ) | (25.3 | ) | (33.0 | ) | ||||||
Foreign exchange translation effects | 1.5 | 0.8 | (1.2 | ) | ||||||||
Balance of warranty costs accrued, end of period | $ | 51.6 | $ | 55.2 | $ | 52.6 | ||||||
Current liability, included in current portion of warranties | $ | 29.8 | $ | 33.8 | $ | 42.3 | ||||||
Long-term liability, included in other liabilities | $ | 21.8 | $ | 21.4 | $ | 10.3 | ||||||
Guarantees and Commitments | ||||||||||||
Future minimum rental commitments under all non-cancelable operating leases with original terms in excess of one year in effect at December 31, 2013, are: $17.2 million in 2014; $11.6 million in 2015; $9.2 million in 2016; $8.3 million in 2017; $6.1 million in 2018 and $13.1 million thereafter, a total of $65.5 million. Net rental expense for all operating leases was $18.9 million, $19.6 million and $19.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company has bank guarantees for $50.6 million which is comprised of uncollateralized bank guarantees, of which $44.9 million is related to tax and other litigation, $1.2 million is related to letters of credit and $4.5 million is related to other items. | ||||||||||||
The Company has inventory and receivables that are pledged against a local bank facility in India to support local working capital requirements of approximately $7.3 million. Also, the Company has pledged unsold receivables under the Accounts Receivable Securitization Program of €3.2 million ($4.4 million at December 31, 2013 exchange rates). | ||||||||||||
Contingencies | ||||||||||||
General | ||||||||||||
We are subject to proceedings, lawsuits and other claims related to products and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable and reasonably possible losses. A determination of the amount of liability to be recorded, if any, for these contingencies is made after careful analysis of each individual issue. | ||||||||||||
Litigation | ||||||||||||
On June 23, 2010, the European Commission (the Commission) issued a decision imposing a total of €326.1 million in fines, or approximately $400 million on the date of assessment (the EC Fine), on the former American Standard Companies Inc. (now Trane Inc., hereinafter referred to as “American Standard” or “Trane”), and certain of its European subsidiaries engaged in the Bath and Kitchen business and successor entities for infringements of European Union competition rules relating to the distribution of bathroom fixtures and fittings in a number of European countries. Pursuant to our Indemnification and Cooperation Agreement with Trane, WABCO Europe BVBA (an indirect wholly-owned subsidiary of WABCO) is responsible for, and is liable to indemnify Trane Inc. and Ideal Standard International (representing the successor to the Bath and Kitchen business, and owner of certain of the former American Standard subsidiaries) and their owners against the EC Fine. | ||||||||||||
As required by the Indemnification and Cooperation Agreement, WABCO paid the fine amount into escrow on August 30, 2010, using €230.0 million of cash on hand and €96.1 million of additional borrowings under a revolving credit facility. The funds were subsequently released from escrow and paid to the Commission. After reviewing all of the elements of the case, WABCO decided to appeal the decision in order to try to have the fine reduced. | ||||||||||||
On September 16, 2013, the General Court of the European Union (the General Court) delivered its judgment and annulled in part the decision of the Commission, reducing the original fine of €326.1 million by €205.8 million to €120.3 million. Since WABCO had paid the full amount of the EC Fine (as described above), WABCO has received the full amount of the reimbursement from the Commission during the fourth quarter of 2013. The Commission did not appeal the judgment of the General Court within the mandatory time limit. The judgment of the General Court is now final. | ||||||||||||
Other | ||||||||||||
In conjunction with the Tax Sharing Agreement, as further discussed in Note 16, WABCO is responsible for certain tax and indemnification liabilities. These liabilities include probable indemnification liabilities to Trane of $9.2 million as of December 31, 2013. It is reasonably possible that the Company could incur losses in excess of the amounts accrued. Although this amount cannot be estimated, we believe that any additional losses would not have a material adverse impact on the consolidated financial statements. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income before income taxes and the applicable provision for income taxes were : | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Income before income taxes: | ||||||||||||
Domestic | $ | 94.4 | $ | 77.2 | $ | 72.4 | ||||||
Foreign | 546.5 | 258.9 | 332.5 | |||||||||
$ | 640.9 | $ | 336.1 | $ | 404.9 | |||||||
(Benefit)/provision for income taxes: | ||||||||||||
Current: | ||||||||||||
Domestic | $ | 11.4 | $ | (6.2 | ) | $ | 24.9 | |||||
Foreign | 32.2 | 32.7 | 9.9 | |||||||||
$ | 43.6 | $ | 26.5 | $ | 34.8 | |||||||
Deferred: | ||||||||||||
Domestic | $ | 101.7 | $ | 0.1 | $ | (0.4 | ) | |||||
Foreign | (166.3 | ) | (3.0 | ) | 2.3 | |||||||
$ | (64.6 | ) | $ | (2.9 | ) | $ | 1.9 | |||||
Total (benefit)/provision | $ | (21.0 | ) | $ | 23.6 | $ | 36.7 | |||||
A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 35.0% in 2013, 2012 and 2011 to the income before income taxes is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Tax provision at statutory rate | $ | 224.3 | $ | 117.4 | $ | 141.7 | ||||||
Separation related taxes and contingencies | — | 2.2 | 1.8 | |||||||||
Foreign earnings taxed at other than 35% | (93.9 | ) | (71.9 | ) | (76.6 | ) | ||||||
(Decrease)/increase in valuation allowance | (261.9 | ) | 109.8 | (33.4 | ) | |||||||
Unremitted foreign earnings | 107.4 | — | — | |||||||||
EC fine indemnity | — | (116.3 | ) | — | ||||||||
Tax contingency accruals | — | 8.1 | 18.8 | |||||||||
Benefit of tax contingency reversals | (0.4 | ) | (30.0 | ) | (19.2 | ) | ||||||
Equity compensation | 4.4 | 5 | 4.2 | |||||||||
Other, net | (0.9 | ) | (0.7 | ) | (0.6 | ) | ||||||
Total (benefit)/ provision | $ | (21.0 | ) | $ | 23.6 | $ | 36.7 | |||||
The effective income tax rates for 2013 and 2012 were (3.3)% and 7.1%, respectively. The income tax benefit for 2013 includes taxes on earnings in profitable jurisdictions, income offset by fully valued net operating losses, the accrual of interest on uncertain tax positions, and a tax provision on unremitted foreign earnings of $300.0 million in a Belgian affiliate for which the Company does not assert permanent reinvestment outside the United States as discussed further below. Additionally, the tax provision is offset by the release of a valuation allowance related to management’s determination that it is more likely than not that the Company will realize its deferred tax asset in a foreign jurisdiction as also discussed below. Furthermore, the Company also recognized a tax benefit of $2.4 million due to the impact of U.S. tax legislation enacted in January 2013 and a tax benefit of $2.4 million related to the Company's filing of its 2012 U.S. Federal Income Tax Return in September 2013. | ||||||||||||
The nature of the reconciling item "Foreign earnings taxed at other than 35%" is net of permanent differences including non-taxable income in foreign jurisdictions, foreign tax incentives such as tax rulings in Europe, and certain tax credits, resulting in a net tax benefit. | ||||||||||||
In 2013, the Company recorded a tax benefit of $178.4 million for a release at the end of the year of a valuation allowance related to management’s determination that it is more likely than not that the Company will realize its deferred tax asset in a foreign jurisdiction. In particular, evidence such as our historical operating profits resulting in a cumulative profitable position during the three-year period ending on December 31, 2013, the receipt of an exceptional EC fine refund in the fourth quarter of 2013 and projected operating profits represented sufficient positive evidence to release a full valuation allowance at the end of 2013 on the deferred tax asset under ASC 740. The release of this valuation allowance was recorded as an income tax benefit as of December 31, 2013 which significantly reduced our effective tax rate, resulting in a negative effective tax rate. We expect our effective tax rate to increase in subsequent periods following this release of the valuation allowance. Our net income and effective tax rate will be negatively affected in periods following this release. However, the valuation allowance release will not affect the amount of cash paid for income taxes. | ||||||||||||
Management has also determined that it is more likely than not that it will not realize $10.1 million its deferred tax assets in other foreign jurisdictions since evidence such as historical operating profits resulted in a cumulative loss position during the most recent three-year period ending on December 31, 2013 and lack of projected earnings provided sufficient negative evidence to record a valuation allowance against such deferred tax assets related to carryforwards for net operating losses and notional interest deductions. | ||||||||||||
At the end of 2013, the Company recorded a tax provision of $107.4 million related to unremitted foreign earnings of $300.0 million in a Belgian affiliate for which the Company does not assert permanent reinvestment outside the United States. This assertion is resulting from the Company recognizing earnings in the fourth quarter of €209.8 million from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine. As such, the Company obtained a special authorization from its Board of Directors to purchase an additional $200.0 million of Company stock through December 31, 2014. Under U.S. GAAP rules, unremitted foreign earnings where the Company does not assert permanent reinvestment are deemed to be repatriated to the United States. | ||||||||||||
In 2012, the income tax provision was offset by the release of tax accruals for uncertain tax positions due to certain government filings submitted in January 2012 of approximately $24.8 million, as adjusted from an amount of $18.8 million as previously disclosed in the Company's 2011 Form 10-K. As a result of a settlement of a foreign tax audit in the fourth quarter of 2012, a portion of the EC fine deduction claimed in 2010 was accepted and added to existing net operating losses. The tax effect of this settlement was $116.3 million, the benefit for which was fully offset by an increase to a valuation allowance and thus had no impact on the Company's effective tax rate. | ||||||||||||
In 2011, the income tax provision was principally driven by income taxes in profitable jurisdictions offset by benefits related to ongoing foreign tax planning activities, a decrease of a valuation allowance of $33.4 million and the release of certain tax accruals. In addition, the Company recorded a tax provision of $12.7 million during the fourth quarter of 2011 due to its decision to repatriate earnings from a foreign affiliate of approximately $299.0 million. It should be noted that changes in U.S. or foreign tax laws or rulings may have a significant impact on our effective tax rate. | ||||||||||||
The approximate dollar and diluted earnings per share amounts of tax reductions related to tax holidays and incentive tax credits in various countries in which the Company does business were $7.8 million and $0.12 in 2013, $6.5 million and $0.10 in 2012 and $4.1 million and $0.06 in 2011, respectively. The tax holidays and incentive tax credits expire at various dates through 2026. | ||||||||||||
The following table details the gross deferred tax liabilities and assets and the related valuation allowances: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Basis difference in noncontrolling interest | $ | 11.9 | $ | 11.4 | ||||||||
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 21 | 23.3 | ||||||||||
Unremitted foreign earnings | 107.8 | — | ||||||||||
Intangibles | 3.4 | 3.6 | ||||||||||
Other | — | — | ||||||||||
$ | 144.1 | $ | 38.3 | |||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses and tax credits | $ | 195.7 | $ | 293 | ||||||||
Post-retirement and other employee benefits | 43.2 | 45.4 | ||||||||||
Intangibles | 35.7 | 32.7 | ||||||||||
Inventory | 0.8 | 0.6 | ||||||||||
Warranties | 1.4 | 2.5 | ||||||||||
Other | 16.5 | 11.6 | ||||||||||
$ | 293.3 | $ | 385.8 | |||||||||
Valuation allowances | (10.1 | ) | (272.0 | ) | ||||||||
Net deferred tax assets | $ | 139.1 | $ | 75.5 | ||||||||
At December 31, 2013, the Company has $578.0 million of net operating loss carry forwards (NOLs) available for utilization in future years. Approximately $537.7 million of such NOLs have an unlimited life and the remainder is available for periods of up to 7 years. The NOLs primarily consist of NOLs inherited by WABCO upon separation from Trane and losses incurred in post-spin years. As of December 31, 2013, the Company has provided a valuation allowance of $10.1 million representing the value of the associated deferred tax asset with regard to $31.2 million of NOLs available for up to 6 years. As discussed above, the Company released $178.4 million of a valuation allowance related to management’s determination that it is more likely than not that the Company will realize its deferred tax asset in a foreign jurisdiction. Management has also determined that it is more likely than not that it will not realize $10.1 million of its deferred tax assets in other foreign jurisdictions and has recorded a valuation allowance against such deferred tax assets as discussed above. | ||||||||||||
Unrecognized tax benefits at December 31, 2013 amounted to $45.3 million primarily related to the WABCO business which is classified as a long-term liability. There are no material unrecognized tax benefits related to WABCO obligations directly to tax authorities for Trane’s Bath & Kitchen business as further discussed in Note 16. Interest related to unrecognized tax benefits recorded in the 2013, 2012 and 2011 consolidated statements of income were $0.3 million, $1.1 million and $0.8 million, respectively. Total accrued interest as of December 31, 2013, 2012 and 2011 was approximately $6.0 million, $5.7 million and $4.6 million, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. No material penalties have been accrued related to these unrecognized tax benefits. | ||||||||||||
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows (exclusive of interest): | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Beginning balance, January 1 | $ | 41.9 | $ | 209.6 | $ | 208.3 | ||||||
Additions for tax positions related to current year | — | — | 19.7 | |||||||||
Additions for tax positions related to prior years | 1.2 | 7.5 | — | |||||||||
Reductions for tax positions related to prior years | — | (172.4 | ) | (12.9 | ) | |||||||
Cash settlements | (2.0 | ) | (1.5 | ) | (10.6 | ) | ||||||
Expirations of statute of limitations | (2.0 | ) | (2.6 | ) | (5.2 | ) | ||||||
Foreign exchange | 0.2 | 1.3 | 10.3 | |||||||||
Ending balance, December 31 | $ | 39.3 | $ | 41.9 | $ | 209.6 | ||||||
In 2013, the reversal of $4.0 million during the year relates to the settlement of certain US state tax exposures and the expiration of statutes of limitations in certain foreign jurisdictions | ||||||||||||
In 2012, as a result of the settlement of a foreign tax audit, $342.3 million, at December 31, 2012 foreign exchange rates, of the EC fine tax deduction claimed in 2010 was accepted. Thus, the 2010 reserve for this uncertain tax position has been reversed and added $116.3 million to existing net operating losses in a foreign jurisdiction that had a full valuation allowance against the deferred tax asset for such NOLs. The remaining amount of $29.0 million was also removed from the tabular rollforward for unrecognized tax benefits as of December 31, 2012, due to the settlement. The reversal of $172.4 million during 2012 relates to the settlement of a foreign tax audit as described above, certain government filings submitted in January 2012, and the expiration of statutes of limitation. | ||||||||||||
In 2011, there was a reversal of $28.7 million related to the closure of foreign tax audits and the expiration of statutes of limitation. At December 31, 2013, 2012 and 2011, there were $39.3 million, $41.9 million and $209.6 million of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. | ||||||||||||
We conduct business globally and, as a result, WABCO or one or more of our subsidiaries file income tax returns in the U.S. federal, state and local, and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Belgium, Brazil, China, France, Germany, India, the Netherlands, Poland, the United Kingdom and the United States. With no material exceptions, the Company is no longer subject to examinations by tax authorities for years before 2007. However, the Company is currently under examination in the United States for tax years 2010 and 2011. In addition, the Company may realize a reduction of up to $2.1 million of unrecognized tax benefits to occur within 12 months as a result of settlements for certain tax exposures. | ||||||||||||
As a result of the allocation of purchase accounting (principally goodwill) to foreign subsidiaries, the book basis in the net assets of the foreign subsidiaries exceeds the related U.S. tax basis in the subsidiaries' stock. Such investments are considered permanent in duration and accordingly, no deferred taxes have been provided on such differences, which are significant. The Company considers the earnings of substantially all of its foreign subsidiaries to be permanently reinvested outside the United States due to operational, strategic and other needs to support the growth of the Company and as such, no deferred tax liability has been provided. However, the Company has provided for tax at the U.S. tax rate for its Brazilian affiliate's current year earnings in 2013. In addition, as discussed above, due to the receipt in the fourth quarter of an exceptional refund including interest from the European Commission that increased earnings beyond these operational, strategic and other needs outside the United States, the Company recorded a tax provision for $300.0 million of its Belgian affiliate’s earnings for which the Company does not assert permanent reinvestment outside the United States. The Company estimates the amount of its permanently reinvested unremitted foreign earnings to be approximately $840 million as of December 31, 2013, however, it is not practicable to estimate the tax liability that would arise if the earnings that are considered permanently reinvested were remitted to the United States. |
Tax_and_Indemnification_Liabil
Tax and Indemnification Liabilities Transferred from Trane to WABCO | 12 Months Ended |
Dec. 31, 2013 | |
Tax And Indemnification Liabilities [Abstract] | ' |
Tax and Indemnification Liabilities Transferred from Trane to WABCO | ' |
Tax and Indemnification Liabilities Transferred from Trane to WABCO | |
Pursuant to the Tax Sharing Agreement between Trane and WABCO, entered into on July 16, 2007, and other agreements with Trane as filed in WABCO’s Form 10 prior to its spin-off from Trane, WABCO is responsible for certain tax contingencies and indemnification liabilities. As noted in Note 15, the liabilities as of December 31, 2013 included no material amounts related to non-U.S. entities of Trane’s former Bath and Kitchen business but for which WABCO entities have obligations directly to non-U.S. tax authorities. In addition, as of December 31, 2013, the Company had probable indemnification liabilities of $9.2 million, compared to $18.8 million as of December 31, 2012, which were classified within long-term liabilities on the balance sheet. It is reasonably possible that the Company could incur losses in excess of the amounts accrued. Although this amount cannot be estimated, we believe that any additional losses would not have a material adverse impact on the consolidated financial statements. | |
During 2013, approximately $8.8 million of indemnification liabilities were reversed in the consolidated statement of operations due to the settlement of foreign tax audits and the expiration of a statute of limitations. | |
Under an indemnification agreement, WABCO Brazil is responsible for certain claims related to its business for periods prior to the spin-off of WABCO from American Standard. In particular, there are tax claims pending in various stages of the Brazilian legal process related to income, social contribution and/or value added taxes for which a contingency exists and which may or may not ultimately be incurred by the Company. The estimated total amount of the claims as of December 31, 2013 was $42.1 million including interest. However, based on management’s assessment and advice of our external legal counsel, the Company believes that it has valid arguments in all of these cases and the likelihood of loss is not probable and thus no accrual is required at this time. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||||||||
Related Party Transactions | ' | |||||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||||||
Investments in and Advances to Unconsolidated Joint Ventures | ||||||||||||||||||||||||
WABCO has three investments in affiliates that are accounted for under the equity method. The first of these investments is in Meritor WABCO. Meritor WABCO, in which WABCO has a 50% equity ownership, markets braking systems products and sells the majority of WABCO products in the United States. The second of these investments is in WABCO Automotive South Africa (WABCO SA). WABCO SA, in which WABCO has a 49% equity ownership, is a distributor of breaking systems products and sells WABCO products primarily in South Africa. The third investment is in WABCOWURTH Workshop Services GmbH (WABCOWURTH). WABCOWURTH, in which WABCO has a 50% equity ownership, supplies commercial vehicle workshops, fleet owners and operators and end users internationally with its multi-brand technology diagnostic system. | ||||||||||||||||||||||||
As of December 31, 2013, WABCO has net investments in and advances to Meritor WABCO of $15.0 million, WABCO SA of $4.0 million and WABCOWURTH of $0.9 million. WABCO received dividends from the joint ventures of $18.3 million, $15.2 million and $14.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Meritor WABCO | $ | 176 | $ | 180.7 | $ | 174 | $ | — | $ | — | $ | 0.2 | ||||||||||||
WABCO SA | 5.7 | 6.7 | 7.6 | — | — | — | ||||||||||||||||||
WABCOWURTH | 0.2 | 0.2 | 0.2 | 0.3 | 0.2 | — | ||||||||||||||||||
(Amounts in millions) | WABCO Receivables from | WABCO Payables to | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Meritor WABCO | $ | 28.3 | $ | 24.8 | $ | — | $ | — | ||||||||||||||||
WABCO SA | 1.1 | 2.1 | — | — | ||||||||||||||||||||
WABCOWURTH | 0.2 | 0.1 | 0.6 | 0.6 | ||||||||||||||||||||
Consolidated Joint Ventures | ||||||||||||||||||||||||
WABCO has three fully consolidated joint ventures as of December 31, 2013. The first of these joint ventures is in Japan with Sanwa-Seiki where Sanwa-Seiki distributes WABCO's products in the local market. WABCO's ownership interest in the joint venture with Sanwa-Seiki is 90%. | ||||||||||||||||||||||||
The second joint venture is in the United States with Cummins Engine Co. (Cummins), a manufacturing partnership formed to produce air compressors designed by WABCO. WABCO's ownership interest in the joint venture with Cummins is 70%. | ||||||||||||||||||||||||
The third joint venture is with Guangdong FUWA Heavy Industry Co., Ltd., (FUWA) to produce air disc brakes for commercial trailers in China. FUWA is the largest manufacturer of commercial trailer axles in China and in the world. WABCO's ownership interest in the joint venture with FUWA is 70%. | ||||||||||||||||||||||||
A fourth joint venture with Mingshui Automotive Fitting Factory (MAFF) to produce conventional mechanical products to the local market was ended in 2013 when the Company acquired the remaining shares in the joint venture. Prior to this acquisition, WABCO's ownership interest in the joint venture with MAFF was 70%. Sales to and purchases from MAFF were immaterial in the year ended December 31, 2013 and previous years. See Note 21 for further information. | ||||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Sanwa-Seiki | $ | — | $ | 0.2 | $ | 0.2 | $ | 33.7 | $ | 42.9 | $ | 39.3 | ||||||||||||
Cummins | 72.9 | 75.8 | 68.5 | — | — | — | ||||||||||||||||||
FUWA | 3 | 1 | 4.1 | — | — | — | ||||||||||||||||||
Geographic_Information
Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Geographic Information | ' | |||||||||||
Geographic Information | ||||||||||||
WABCO is a fully integrated global business with management structures established in a variety of ways, including around products, distribution channels and key customers. Our largest customer is Daimler, which accounted for 12%, 11% and 12% of our sales in 2013, 2012 and 2011, respectively. Volvo accounted for 10%, 10% and 11% of our sales in 2013, 2012 and 2011, respectively. WABCO's plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment and that WABCO's performance and future net cash flow perspectives are best understood and assessed as such. | ||||||||||||
European sales for the years ended December 31, 2013, 2012 and 2011 accounted for 61%, 60% and 62% of total sales, respectively. Asian sales for the years ended December 31, 2013, 2012 and 2011 accounted for 18%, 20% and 19% of total sales, respectively. We are strongly rooted in China and India and have achieved a leading position in the marketplace through increasingly close connectivity to customers. We are further strengthened in Asia by an outstanding network of suppliers, manufacturing sites and engineering hubs. | ||||||||||||
Geographic Data | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Product Sales: | ||||||||||||
OEM | $ | 2,043.50 | $ | 1,847.40 | $ | 2,150.40 | ||||||
Aftermarket | 677 | 630 | 643.7 | |||||||||
Sales-Geographic distribution (a): | ||||||||||||
United States | $ | 296.2 | $ | 274.5 | $ | 246.2 | ||||||
Europe (countries below are included in this total) | 1,666.30 | 1,496.70 | 1,737.50 | |||||||||
Germany | 731.3 | 657.6 | 759 | |||||||||
France | 99.5 | 89 | 111.9 | |||||||||
Sweden | 215.4 | 201.7 | 238.2 | |||||||||
Other (countries below are included in this total) | 758 | 706.2 | 810.4 | |||||||||
Japan | 100.5 | 116.1 | 104.6 | |||||||||
China | 192.6 | 152.3 | 162.1 | |||||||||
Brazil | 180.9 | 135.3 | 195.3 | |||||||||
India | 106.1 | 147 | 181.7 | |||||||||
Total sales | $ | 2,720.50 | $ | 2,477.40 | $ | 2,794.10 | ||||||
(a) | Sales to external customers are classified by country of destination. | |||||||||||
As of December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Long-lived Assets (b) | ||||||||||||
Geographic distribution: | ||||||||||||
United States | $ | 20.2 | $ | 14.1 | $ | 11.9 | ||||||
Europe (countries below are included in this total) | 655.7 | 607.8 | 576.2 | |||||||||
Germany | 323.7 | 303.2 | 295.6 | |||||||||
Poland | 110.8 | 93.7 | 79.5 | |||||||||
Other (countries below are included in this total) | 213.5 | 220.5 | 209 | |||||||||
India | 97.7 | 104.1 | 98.7 | |||||||||
Total long-lived assets | $ | 889.4 | $ | 842.4 | $ | 797.1 | ||||||
(b) | Amounts are presented on a net basis |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Instruments and Hedges, Assets [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities | |
ASC 815, "Derivatives and Hedging", requires a company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies and has been designated as a relationship hedge. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. | |
The Company recognizes all derivative financial instruments in the consolidated balance sheet at fair value using Level 2 inputs and these are classified as “other current assets,” “other assets,” “other accrued liabilities” or “other liabilities” on the consolidated balance sheet. Level 2 inputs used by the Company in valuing its derivative instruments include model-based valuation techniques for which all significant assumptions are observable in the market. The earnings impact resulting from changes in the fair value of derivative instruments is recorded in the same line item in the consolidated statement of operations as the underlying exposure being hedged or in accumulated other comprehensive income (AOCI) for derivatives that qualify and have been designated as cash flow hedges or hedges of a net investment in a foreign operation. Any ineffective portion of a financial instrument's change in fair value is recognized in earnings together with changes in the fair value of any derivatives not designated as relationship hedges. | |
Foreign exchange contracts are used by the Company to offset the earnings impact relating to the variability in exchange rates on certain assets and liabilities denominated in non-functional currencies and have not been designated as relationship hedges. As of December 31, 2013 and 2012, respectively, forward contracts for an aggregate notional amount of €61.8 million ($85.3 million at December 31, 2013 exchange rates) and €43.4 million ($57.4 million at December 31, 2012 exchange rates) were outstanding with an average duration of one month. These foreign exchange contracts have offset the revaluation of assets and liabilities. The majority of these exchange contracts were entered into on December 30, 2013. The fair value of the derivatives was $0.1 million as of December 31, 2013 and immaterial as of December 31, 2012. | |
For the years ended December 31, 2013 and 2012, the Company recognized net losses on its derivative instruments of $2.2 million and net gains of $8.7 million, respectively, in "other non-operating expense, net" within the consolidated statement of operations. |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Business Combinations | ' |
Business Combinations | |
On September 13, 2012, the Company completed its acquisition of Ephicas, based in the Netherlands, a pioneering company in the field of innovative aerodynamic solutions for commercial vehicles. The Company acquired all of the equity interests in Ephicas and also assumed certain liabilities. Leveraging Ephicas’ expertise and patented technologies, the Company is developing a range of aerodynamic products – branded OptiFlow™ – that are designed to increase vehicle efficiency and reduce fuel consumption for trucks, trailers and buses. | |
The acquisition was recorded in accordance with ASC 805 "Business Combinations". ASC 805 requires that all identifiable intangible assets be recognized as an asset apart from goodwill if the asset arises from contractual or other legal rights, or is separable from the acquired entity. The fair value of the Ephicas business identified intangible assets was $2.1 million and goodwill was $3.6 million. |
Noncontrolling_Interests_Notes
Noncontrolling Interests (Notes) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Noncontrolling Interests | ' | |||||||
Noncontrolling Interests | ||||||||
On August 30, 2013, WABCO acquired the remaining shares in SWAP, its Chinese joint venture, from MAFF for cash consideration of $4.6 million thus increasing its ownership from 70% to 100%. The table below shows the effect of the change in ownership interest on the Company's equity for the years ended December 31, 2013 and 2012 (amounts in millions): | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
Net income attributable to Company | $ | 653.2 | $ | 302 | ||||
Transfers from the noncontrolling interest: | ||||||||
Increase in paid-in capital for acquisition of noncontrolling interest | 1.1 | — | ||||||
Net transfers from noncontrolling interest | $ | 1.1 | $ | — | ||||
Change from net income attributable to Company and transfers from noncontrolling interest | $ | 654.3 | $ | 302 | ||||
Quarterly_Data_Unaudited
Quarterly Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Data (Unaudited) | ' | |||||||||||||||
Quarterly Data (Unaudited) | ||||||||||||||||
Year 2013 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 644.7 | $ | 678.2 | $ | 677.1 | $ | 720.5 | ||||||||
Cost of sales | 447 | 471.6 | 477.6 | 515.2 | ||||||||||||
Gross profit | 197.7 | 206.6 | 199.5 | 205.3 | ||||||||||||
Income before income taxes | 84.2 | 95.5 | 90.5 | 370.8 | ||||||||||||
Income tax expense / (benefit) | 8.2 | 9.7 | 8 | (46.8 | ) | |||||||||||
Net income attributable to Company | $ | 73.7 | $ | 83.2 | $ | 80 | $ | 416.3 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.17 | $ | 1.33 | $ | 1.28 | $ | 6.73 | ||||||||
Diluted | $ | 1.15 | $ | 1.31 | $ | 1.26 | $ | 6.65 | ||||||||
Year 2012 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 657.3 | $ | 635.2 | $ | 588.3 | $ | 596.5 | ||||||||
Cost of sales | 461.2 | 441.5 | 413.1 | 421.3 | ||||||||||||
Gross profit | 196.1 | 193.7 | 175.2 | 175.2 | ||||||||||||
Income before income taxes | 93.4 | 96.5 | 76.2 | 70.1 | ||||||||||||
Income tax expense / (benefit) | 1.4 | 17.6 | (3.3 | ) | 8 | |||||||||||
Net income attributable to Company | $ | 89.2 | $ | 75.6 | $ | 77.5 | $ | 59.7 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.38 | $ | 1.18 | $ | 1.22 | $ | 0.95 | ||||||||
Diluted | $ | 1.34 | $ | 1.15 | $ | 1.19 | $ | 0.93 | ||||||||
The sum of each value line for the four quarters does not necessarily equal the amount reported for the full year because of rounding. | ||||||||||||||||
The income tax benefit for 2013 includes taxes on earnings in profitable jurisdictions, income offset by fully valued net operating losses, the accrual of interest on uncertain tax positions, and a tax provision on unremitted foreign earnings of $300.0 million in a Belgian affiliate for which the Company does not assert permanent reinvestment outside the United States. This assertion is resulting from the Company recognizing earnings in the fourth quarter from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine as further discussed in Note 15. Additionally, the Company recorded a tax benefit of $178.4 million for a release at the end of the year of a valuation allowance related to management’s determination that it is more likely than not that the Company will realize its deferred tax asset in a foreign jurisdiction. Management has also determined that it is more likely than not that it will not realize $10.1 million of its deferred tax assets in other foreign jurisdictions and has recorded a valuation allowance against such deferred tax assets. | ||||||||||||||||
The income tax benefit recorded in the third quarter of 2012 is the net result of the release of tax accruals for uncertain tax positions due to certain government filings submitted in January 2012, a tax benefit related to the Company's filing of its 2011 U.S. Federal Income Tax Return in September 2012, taxes on earnings in profitable jurisdictions, income offset by fully valued net operating losses, the accrual of interest on uncertain tax positions and benefits from certain foreign tax planning. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | |||||||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
Years ended December 31, 2013, 2012 and 2011 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
Description | Balance | Adjustments to Amounts Provided in Prior Years | Deductions | Foreign | Balance | |||||||||||||||||
Beginning | Currency | End of | ||||||||||||||||||||
of Period | Translation | Period | ||||||||||||||||||||
Effects | ||||||||||||||||||||||
2013:00:00 | ||||||||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 3,581 | $ | 1,346 | $ | (66 | ) | (A) | $ | 138 | $ | 4,999 | ||||||||||
2012:00:00 | ||||||||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 3,425 | $ | 418 | $ | (314 | ) | (A) | $ | 52 | $ | 3,581 | ||||||||||
2011:00:00 | ||||||||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 7,706 | $ | (424 | ) | $ | (3,840 | ) | (A) | $ | (17 | ) | $ | 3,425 | ||||||||
(A) Accounts charged off |
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
On February 12, 2014, WABCO Europe BVBA (WABCO Europe), a Belgian subsidiary of the Company, entered into a stock purchase agreement (the Agreement) with Creafund Transics Shares Stille Maatschap, Mr. Ludwig Lemenu, Mr. Walter Mastelinck, Cassel BVBA and Uniholding SA (collectively, the “Sellers”) by which WABCO Europe purchased all of the outstanding shares of Tavares NV (Tavares), a limited liability company incorporated under the laws of Belgium, from the Sellers for a purchase price of €111.1 million, which included the acquisition of €15.3 million of net cash held by Transics International, resulting in net consideration of €95.8 million. | |
Tavares holds 96.84% of the outstanding shares of Transics International NV (Transics), a limited liability company incorporated under the laws of Belgium currently listed on NYSE Euronext Brussels. Transics develops and markets fleet management solutions to help commercial vehicle manufacturers and fleet operators to more efficiently and safely manage their trucks and trailers. The suite of innovative solutions offered by Transics helps to improve fuel efficiency and productivity while lowering operating costs. In connection with the acquisition of Tavares, WABCO Europe will make a mandatory public offer to acquire the remaining shares and warrants issued by Transics in accordance with applicable Belgian takeover rules. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes the most complex and sensitive judgments, because of their significance to the condensed consolidated financial statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. Actual results could differ from those estimates. Some of the most significant estimates included in the preparation of the consolidated financial statements are related to allowance for doubtful accounts, inventory reserves, goodwill, warranties, post-retirement benefits, income taxes and stock-based compensation. Allocation methods are described in the notes to these consolidated financial statements where appropriate. | |
Principles of Consolidation and Presentation | ' |
Principles of Consolidation and Presentation - All majority owned or controlled subsidiaries of WABCO are included in the consolidated financial statements and intercompany transactions are eliminated upon consolidation. WABCO investments in unconsolidated joint ventures are included at cost plus its equity in undistributed earnings in accordance with the equity method of accounting and reflected as investments in unconsolidated joint ventures in the consolidated balance sheet. Certain amounts in the prior years' consolidated financial statements have been reclassified to conform to the current year presentation. | |
Foreign Currency Translation | ' |
Foreign Currency Translation - Adjustments resulting from translating foreign functional currency assets and liabilities into U.S. Dollars at exchange rates in effect as of the balance sheet date, and income and expense accounts at the average exchange rates in effect during the period, are recorded in a separate component of shareholders' equity as accumulated other comprehensive income. Gains or losses resulting from transactions in other than the functional currency are reflected in the consolidated statement of operations as part of other non-operating income or expense, except for intercompany transactions of a long-term investment nature where the foreign exchange gains or losses from the remeasurement of such intercompany transactions is recorded within accumulated other comprehensive income. | |
Revenue Recognition | ' |
Revenue Recognition - Sales of products are recorded (i) upon shipment if title passes to the customer upon shipment, or upon delivery if title passes to the customer upon delivery, (ii) when persuasive evidence of an arrangement exists with the customer, (iii) when the sales price is fixed and determinable, and (iv) when the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. | |
WABCO typically records cooperative advertising allowances, rebates and other forms of sales incentives as a reduction of sales at the later of the date of the sale or the date the incentive is offered. For these costs, WABCO recorded $42.4 million, $36.6 million and $43.0 million in 2013, 2012 and 2011, respectively, in the accompanying consolidated statements of income. | |
In most countries where WABCO operates, sales are subject to VAT taxes. Sales are presented net of VAT in the consolidated statements of income. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs - Shipping, handling, receiving, inspecting, warehousing, internal transfer, procurement and other costs of distribution are included in cost of sales in the consolidated statements of income. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. Amounts restricted for longer than twelve months are classified as other assets. When restrictions are no longer in place, the amounts are reclassified to cash and cash equivalents. | |
Short-term Investments | ' |
Short-term Investments - Short-term investments consist of a deposit fund holding primarily term deposits, certificates of deposit and short-term bonds. The investments are classified as available-for-sale and are recorded in the consolidated financial statements at market value with changes in market value included in other comprehensive income. The fair value of the investments is determined based on readily available pricing sources for identical instruments in less active markets (Level 2). In the event the investments experience an other-than-temporary impairment in value, such impairment is recognized as a loss in the consolidated statement of operations. The market value of the Company's investments approximated the carrying cost of $55.2 million as of December 31, 2013 with no impairment recognized in 2013. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts - The Company performs ongoing credit evaluations on its customers. In determining the allowance for doubtful accounts, on a monthly basis, WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. | |
Transfers of Financial Instruments | ' |
Transfers of Financial Instruments - The Company accounts for sales and transfers of financial instruments under ASC 860 "Transfers and Servicing". ASC 860 states that a transfer of financial assets (either all or a portion of a financial asset) in which the transferor surrenders control over those financial assets shall be accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. The Company sells receivables to the bank which qualify as financial assets since they are associated with the sale of products by the subsidiaries of the Company and accepted by the Company's customers in the ordinary course of business. For all receivables sold to the bank, the risks of collection of such receivables reside with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances are recorded by the Company. | |
Inventory Reserves | ' |
Inventory Reserves - Inventory costs are determined by the use of the last-in, first-out (LIFO) method, and are stated at the lower of such cost or realizable value. The LIFO method is used as it provides a better matching of the costs to the sales. Inventories are categorized as finished products, products-in-process and raw materials. On a quarterly basis, the Company tests its inventory for slow moving and obsolete stock by considering both the historical and expected sales and the Company will record a provision, if needed. | |
Property, Plant & Equipment and Depreciation | ' |
Property, Plant & Equipment - Property, plant and equipment balances, including tooling, are stated at cost less accumulated depreciation. WABCO capitalizes costs, including interest during construction of fixed asset additions, improvements, and betterments that add to productive capacity or extend the asset life. WABCO assesses facilities for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Maintenance and repair expenditures are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the estimated useful life of the asset or asset group, which are 40 years for buildings, 3 to 5 years for tooling and 5 to 15 years for machinery and equipment. | |
Computer Software Costs | ' |
Computer Software Costs - WABCO capitalizes the costs of obtaining or developing internal-use computer software, including directly related payroll costs. The Company amortizes those costs on a straight-line basis over periods of up to seven years, beginning when the software is ready for its intended use. The Company assesses capitalized software costs for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. | |
Goodwill | ' |
Goodwill - The Company has a significant amount of goodwill on its balance sheet that is not amortized, but subject to impairment tests each fiscal year on October 1 or more often when events or circumstances indicate that the carrying amount of goodwill may not be recoverable. The Company's impairment tests utilize the two-step approach. The first step of the goodwill impairment test compares fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. | |
The recoverability of goodwill is measured based on one reporting unit for the total Company. Our plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment and that WABCO's performance and future net cash flow perspectives are best understood and assessed as such. In order to approximate the fair value of the reporting unit for purposes of testing recoverability, we use the total market capitalization of the Company, a market approach, which is then compared to the total book value of the Company. In the event the Company's fair value has fallen below book value, the Company will compare the estimated fair value of goodwill to its book value. If the book value of goodwill exceeds the estimated fair value of goodwill, the Company will recognize the difference as an impairment loss in operating income. | |
Other Intangible Assets with Determinable Lives | ' |
Other Intangible Assets with Determinable Lives - Other intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles and are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years. WABCO assesses intangible assets for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. | |
Warranties | ' |
Warranties - Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of sales at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates are updated based upon the most current warranty claims information available. | |
Post-retirement Benefits | ' |
Post-retirement Benefits - All post-retirement benefits are accounted for on an accrual basis using actuarial assumptions. Post-retirement pension benefits are provided for substantially all employees of WABCO, both in the the United States and abroad through plans specific to each of WABCO's legal entities. In addition, in the United States, certain employees receive post-retirement health care and life insurance benefits. The impact of Health Care Reform legislation in the United States is immaterial to the Company. The costs of the benefits provided through plans of WABCO are included in the accompanying consolidated financial statements and summarized in detail along with other information pertaining to these plans in Note 12. Plans are primarily concentrated in the United Kingdom, Austria, Germany, and Switzerland. | |
WABCO is also required to measure a defined benefit post-retirement plan's assets and obligations that determine its funded status as of the end of the employer's fiscal year, and recognize changes in the funded status of a defined benefit post-retirement plan in comprehensive income in the year in which the changes occur. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments - Financial instruments consist mainly of cash, accounts receivable, accounts payable and loans payable to banks. At December 31, 2013 and 2012, the carrying amounts of these instruments approximated their fair values. At December 31, 2013, long-term debt also approximated fair value. | |
Derivative Instruments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities - The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value. Changes in the fair value of derivative financial instruments which qualify for hedge accounting are recorded as an offset to the changes in fair value of the underlying hedged item and are included in the account other non-operating expense, net or other operating expense, net. | |
Research, Development and Engineering Expenses | ' |
Research, Development and Engineering Expenses - Research and development costs are expensed as incurred. | |
Income Taxes | ' |
Income Taxes - Deferred income taxes are determined on the liability method, and are recognized for all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are permanently reinvested, except for Brazil's current year earnings and $300.0 million of unremitted foreign earnings related to a Belgian affiliate resulting from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine. | |
A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%) based on technical merits, that the position will be sustained upon examination. Tax positions that meet the more likely than not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Tax positions are not permitted to be recognized, derecognized, or remeasured due to changes subsequent to the balance sheet date, but prior to the issuance of the financial statements. Rather, these changes are recorded in the period the change occurs with appropriate disclosure of such subsequent events, if significant. | |
We record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized. We calculated this valuation allowance in accordance with the provisions of ASC 740 “Income Taxes,” which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to decrease the net deferred tax assets would be charged to income in the period such determination was made. Likewise, should we determine that we would be able to realize our deferred tax assets in the future in excess of our net recorded amount, an adjustment to increase the net deferred tax assets would increase income in the period such determination was made. | |
Earnings Per Share | ' |
Earnings Per Share - Basic net income per share has been computed using the weighted average number of WABCO common shares outstanding. The average number of outstanding shares of common stock used in computing diluted net income per share includes weighted average incremental shares when the impact is not anti-dilutive. The weighted average incremental shares represent the net amount of shares the Company would issue upon the assumed exercise of in-the-money stock options and vesting of restricted stock units (RSUs) after assuming that the Company would use the proceeds from the exercise of options to repurchase stock. | |
Anti-dilutive shares, if applicable, are excluded and represent those options and RSUs whose assumed proceeds were greater than the average price of the Company's common stock. | |
Comprehensive Income / (Loss) | ' |
Comprehensive Income / (Loss) - Comprehensive income / (loss) consists of net income, foreign currency translation adjustments, pension liability adjustments and unrecognized gains or losses on post-retirement benefit plans and is presented in the accompanying consolidated statement of shareholders' equity and comprehensive income. | |
Stock-Based Compensation | ' |
Stock-Based Compensation - WABCO measures and recognizes in its consolidated statement of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs and restricted stock grants based on estimated fair values. | |
All options granted prior to 2007 were adjusted upon the Distribution into two separate options, one relating to the Company's common stock and one relating to Trane common stock. This adjustment was made such that immediately following the Distribution (i) the number of shares relating to the Company options were equal to the number of shares of Company common stock that the option holder would have received in the Distribution had Trane options represented outstanding shares of Trane common stock, and (ii) the per share option exercise price of the original Trane stock option was proportionally allocated between the two types of stock options based upon the relative per share trading prices of the Company and Trane immediately following the Distribution. Thus, upon the Distribution, WABCO options are being held by both WABCO and Trane employees and Trane options continued to be held by WABCO employees. Options granted to WABCO employees in 2007 were equitably adjusted upon Distribution so as to relate solely to shares of the Company's common stock. These adjustments preserved the economic value of the awards immediately prior to the Distribution. All Company options issued as part of this adjustment and the Trane options are fully vested at this time. Further, for purposes of vesting and the post-termination exercise periods applicable to such stock options, the Trane Inc. Management Development and Compensation Committee determined that continued employment with the Company will be viewed as continued employment with the issuer of the options. | |
WABCO uses the Black-Scholes option valuation model to measure the amount of compensation expense to be recognized for each option award. Outstanding WABCO options held by non-WABCO employees or directors arose as a result of the Distribution and are not reflected in compensation expense recognized by the Company. Consequently, these stock options do not result in any tax benefits to the Company at any time. The WABCO options held by non-employees or directors are considered in the Company's diluted EPS calculation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||
Year Ended December 31, | |||||||
2013 | 2012 | 2011 | |||||
Weighted average incremental shares included | 908,071 | 1,416,397 | 2,136,376 | ||||
Shares excluded due to anti-dilutive effect | 3,000 | 480,756 | 205,321 | ||||
Streamlining_Expenses_Tables
Streamlining Expenses (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||
Schedule of Streamlining Expenses | ' | ||||||||||||||||
The following is a summary of changes in the Company’s streamlining program liabilities for the year ended December 31, 2013 (amounts in millions). Activity for the period consisted of termination payments and employee-related charges. | |||||||||||||||||
2008 / 2009 Program | |||||||||||||||||
Balance as of December 31, 2012 | $ | 10.2 | |||||||||||||||
Charges during 2013 | — | ||||||||||||||||
Payments during 2013 | (4.3 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 5.9 | |||||||||||||||
Other Programs | |||||||||||||||||
Balance as of December 31, 2012 | $ | 9.9 | |||||||||||||||
Charges during 2013 | 17.9 | ||||||||||||||||
Payments during 2013 | (8.8 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 19 | |||||||||||||||
Total foreign exchange translation effects | $ | 1.2 | |||||||||||||||
Total streamlining liability as of December 31, 2013 | $ | 26.1 | |||||||||||||||
Schedule of Streamlining Cost | ' | ||||||||||||||||
The following is a summary of current and cumulative streamlining costs (including employee-related costs shown above as well as asset write-offs and other charges). | |||||||||||||||||
Charges for Year | Cumulative Charges as | ||||||||||||||||
Ended December 31, 2013 | of December 31, 2013 | ||||||||||||||||
2008/2009 | Other | 2008/2009 | Other | ||||||||||||||
Program | Programs | Program | Programs | ||||||||||||||
Employee-related charges – cost of sales | $ | — | $ | 6.6 | $ | 45.7 | $ | 16.6 | |||||||||
Employee-related charges – selling and administrative | — | 10.5 | 45.8 | 20 | |||||||||||||
Total employee related charges | — | 17.1 | 91.5 | 36.6 | |||||||||||||
Asset write-offs | — | 0.8 | — | 1.8 | |||||||||||||
Total program costs | $ | — | $ | 17.9 | $ | 91.5 | $ | 38.4 | |||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Schedule of Net Shares Outstanding and Shares Issued or Reacquired | ' | ||||||||
The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2013, 2012 and 2011. | |||||||||
Number of Shares of Common Stock | |||||||||
Total Shares | Treasury Shares | Net Shares | |||||||
Outstanding | |||||||||
Balance, December 31, 2010 | 72,415,415 | (5,956,806 | ) | 66,458,609 | |||||
Shares issued upon exercise of stock options | 1,630,838 | — | 1,630,838 | ||||||
Shares issued upon vesting of RSUs | 196,677 | — | 196,677 | ||||||
Shares purchased for treasury | — | (3,520,469 | ) | (3,520,469 | ) | ||||
Balance, December 31, 2011 | 74,242,930 | (9,477,275 | ) | 64,765,655 | |||||
Shares issued upon exercise of stock options | 1,312,288 | — | 1,312,288 | ||||||
Shares issued upon vesting of RSUs | 200,088 | — | 200,088 | ||||||
Shares purchased for treasury | — | (3,530,880 | ) | (3,530,880 | ) | ||||
Balance, December 31, 2012 | 75,755,306 | (13,008,155 | ) | 62,747,151 | |||||
Shares issued upon exercise of stock options | 1,600,850 | — | 1,600,850 | ||||||
Shares issued upon vesting of RSUs | 115,018 | — | 115,018 | ||||||
Shares purchased for treasury | — | (3,103,994 | ) | (3,103,994 | ) | ||||
Balance, December 31, 2013 | 77,471,174 | (16,112,149 | ) | 61,359,025 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Total Stock-Based Compensation Cost Recognized During Period | ' | ||||||||||||||||
Total stock-based compensation cost recognized during the years ended December 31, 2013, 2012 and 2011 were as follows (amounts in millions): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation (before tax effects) | $ | 13.6 | $ | 14.3 | $ | 13.7 | |||||||||||
Total Number and Type of Awards Granted and Related Weighted-Average Grant Date Fair Values | ' | ||||||||||||||||
The total number and type of awards granted during the periods presented and the related weighted-average grant-date fair values were as follows: | |||||||||||||||||
Shares underlying options | Weighted - Average Exercise Price | Weighted - Average Grant Date Fair Value | |||||||||||||||
WABCO employees | Trane employees | Total | |||||||||||||||
Options Outstanding December 31, 2010 | 4,076,757 | 1,265,033 | 5,341,790 | $ | 26.02 | ||||||||||||
Options Granted | 276,287 | — | 276,287 | $ | 59.24 | $ | 22.94 | ||||||||||
Options Exercised | (1,228,475 | ) | (403,731 | ) | (1,632,206 | ) | $ | 22.52 | |||||||||
Options Forfeited | (34,329 | ) | (8,865 | ) | (43,194 | ) | $ | 34.12 | |||||||||
Options Outstanding December 31, 2011 | 3,090,240 | 852,437 | 3,942,677 | $ | 29.61 | ||||||||||||
Options Granted | 284,691 | — | 284,691 | $ | 58.71 | $ | 23.1 | ||||||||||
Options Exercised | (1,037,538 | ) | (279,205 | ) | (1,316,743 | ) | $ | 21.9 | |||||||||
Options Forfeited | (37,260 | ) | (5,173 | ) | (42,433 | ) | $ | 40.74 | |||||||||
Options Outstanding December 31, 2012 | 2,300,133 | 568,059 | 2,868,192 | $ | 35.82 | ||||||||||||
Options Granted | — | — | — | $ | — | $ | — | ||||||||||
Options Exercised | (1,359,825 | ) | (242,243 | ) | (1,602,068 | ) | $ | 31.08 | |||||||||
Options Forfeited | (53,391 | ) | (200 | ) | (53,591 | ) | $ | 52.71 | |||||||||
Options Outstanding December 31, 2013 | 886,917 | 325,616 | 1,212,533 | $ | 41.2 | ||||||||||||
Exercisable at December 31, 2013 | 630,570 | 325,616 | 956,186 | $ | 37.3 | ||||||||||||
RSUs Outstanding December 31, 2010 | 523,393 | $ | 19.93 | ||||||||||||||
RSUs Granted | 220,181 | $ | 62.44 | ||||||||||||||
RSUs Vested | (245,035 | ) | $ | 19.87 | |||||||||||||
RSUs Forfeited | (13,695 | ) | $ | 37.55 | |||||||||||||
RSUs Outstanding December 31, 2011 | 484,844 | $ | 38.8 | ||||||||||||||
RSUs Granted | 133,804 | $ | 58.47 | ||||||||||||||
RSUs Vested | (232,980 | ) | $ | 23.14 | |||||||||||||
RSUs Forfeited | (19,937 | ) | $ | 53.63 | |||||||||||||
RSUs Outstanding December 31, 2012 | 365,731 | $ | 55.08 | ||||||||||||||
RSUs Granted | 119,728 | $ | 68.72 | ||||||||||||||
RSUs Vested | (138,005 | ) | $ | 44.34 | |||||||||||||
RSUs Forfeited | (47,707 | ) | $ | 60.86 | |||||||||||||
RSUs Outstanding December 31, 2013 | 299,747 | $ | 64.79 | ||||||||||||||
PSUs Granted | 94,364 | $ | 68.1 | ||||||||||||||
PSUs Forfeited | (9,954 | ) | $ | 68.1 | |||||||||||||
PSUs Outstanding December 31, 2013 | 84,410 | $ | 68.1 | ||||||||||||||
Schedule of Weighted Average Grant Date Fair Value Calculated Under The Black-Scholes Option-Pricing Model | ' | ||||||||||||||||
The following table summarizes the significant assumptions used for the grants during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Assumption | 2013 | 2012 | 2011 | ||||||||||||||
Risk-free interest rate | N/A | 0.81 | % | 2.3 | % | ||||||||||||
Expected volatility | N/A | 44.48 | % | 42.82 | % | ||||||||||||
Expected holding period | N/A | 5 years | 5 years | ||||||||||||||
Expected dividend yield | N/A | — | % | 0.47 | % |
Other_Operating_and_NonOperati1
Other Operating and Non-Operating Expense / (Income), Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Schedule of Other Operating and Non-Operating Expense / (Income), Net | ' | |||||||||||
Other expense/(income) was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Operating: | ||||||||||||
Bank charges | $ | 2 | $ | 1.5 | $ | 1.7 | ||||||
Miscellaneous taxes | 2.9 | 2.4 | 1.8 | |||||||||
Other expense/(income), net | 0.1 | (0.7 | ) | 2.3 | ||||||||
$ | 5 | $ | 3.2 | $ | 5.8 | |||||||
Non-operating: | ||||||||||||
Indemnification settlements, net | $ | (8.8 | ) | $ | 3.4 | $ | (22.8 | ) | ||||
Receivable discount fees | 1 | 1.1 | 2.3 | |||||||||
Foreign exchange (gain)/loss | (2.3 | ) | 0.8 | (0.6 | ) | |||||||
Other expense/(income), net | 3.2 | (0.3 | ) | 0.9 | ||||||||
$ | (6.9 | ) | $ | 5 | $ | (20.2 | ) | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||
Schedule of Inventories | ' | |||||||||
The components of inventories, which are carried on a last-in, first-out (LIFO) basis, are as follows: | ||||||||||
Year Ended December 31, | ||||||||||
(Amounts in millions) | 2013 | 2012 | ||||||||
Finished products | $ | 93.9 | $ | 76.9 | ||||||
Products in process | 7.2 | 7.1 | ||||||||
Raw materials | 106.1 | 107.8 | ||||||||
Inventories at cost | $ | 207.2 | $ | 191.8 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of Facilities | ' | |||||||
The components of property, plant and equipment, at cost, are as follow: | ||||||||
Year Ended December 31, | ||||||||
(Amounts in millions) | 2013 | 2012 | ||||||
Land | $ | 23.8 | $ | 22.3 | ||||
Buildings | 178.7 | 164.1 | ||||||
Machinery and equipment | 659 | 618.3 | ||||||
Improvements in progress | 39.2 | 25.7 | ||||||
Gross property, plant and equipment | 900.7 | 830.4 | ||||||
Less: accumulated depreciation | 478.2 | 441.4 | ||||||
Net property, plant and equipment | $ | 422.5 | $ | 389 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||
The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012. | |||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in millions) | 2013 | 2012 | |||||||||||
Balance of goodwill, beginning of year | $ | 371.7 | $ | 363.9 | |||||||||
Acquisitions | — | 3.6 | |||||||||||
Foreign exchange translation | 9.5 | 4.2 | |||||||||||
Balance of goodwill, end of year | $ | 381.2 | $ | 371.7 | |||||||||
Changes in Carrying Value of Intangible Assets | ' | ||||||||||||
The changes in the carrying value of intangible assets for the years ended December 31 are as follow: | |||||||||||||
Capitalized Software | Other Intangible Assets | Total | |||||||||||
Gross intangible assets as of: | |||||||||||||
December 31, 2010 | $ | 89.2 | $ | 23.6 | $ | 112.8 | |||||||
Additions | 6.9 | 2.1 | 9 | ||||||||||
Disposals | (2.6 | ) | — | (2.6 | ) | ||||||||
Foreign exchange translation | (2.6 | ) | (2.9 | ) | (5.5 | ) | |||||||
December 31, 2011 | 90.9 | 22.8 | 113.7 | ||||||||||
Additions | 8.7 | 4.6 | 13.3 | ||||||||||
Disposals | (4.5 | ) | (4.5 | ) | |||||||||
Foreign exchange translation | 0.4 | (0.4 | ) | — | |||||||||
December 31, 2012 | 95.5 | 27 | 122.5 | ||||||||||
Additions | 13.5 | 2.2 | 15.7 | ||||||||||
Disposals | (1.9 | ) | (0.5 | ) | (2.4 | ) | |||||||
Foreign exchange translation | 4.3 | (0.2 | ) | 4.1 | |||||||||
December 31, 2013 | $ | 111.4 | $ | 28.5 | $ | 139.9 | |||||||
Accumulated amortization as of: | |||||||||||||
December 31, 2010 | $ | (67.5 | ) | $ | (5.2 | ) | $ | (72.7 | ) | ||||
Amortization expense | (7.5 | ) | (2.8 | ) | (10.3 | ) | |||||||
Disposals | 2.5 | — | 2.5 | ||||||||||
Foreign exchange translation | 2 | 0.5 | 2.5 | ||||||||||
December 31, 2011 | (70.5 | ) | (7.5 | ) | (78.0 | ) | |||||||
Amortization expense | $ | (6.6 | ) | $ | (2.9 | ) | $ | (9.5 | ) | ||||
Disposals | 4.3 | 4.3 | |||||||||||
Foreign exchange translation | — | 0.1 | 0.1 | ||||||||||
December 31, 2012 | (72.8 | ) | (10.3 | ) | (83.1 | ) | |||||||
Amortization expense | (7.5 | ) | (3.1 | ) | (10.6 | ) | |||||||
Disposals | 1.9 | 0.4 | 2.3 | ||||||||||
Foreign exchange translation | (3.4 | ) | (0.8 | ) | (4.2 | ) | |||||||
December 31, 2013 | $ | (81.8 | ) | $ | (13.8 | ) | $ | (95.6 | ) | ||||
Net intangible assets as of: | |||||||||||||
December 31, 2013 | $ | 29.6 | $ | 14.7 | $ | 44.3 | |||||||
Postretirement_Benefits_Tables
Post-retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||||||||
Reconciliation of Benefit Obligation and Fair Value of Plan Assets | ' | ||||||||||||||||||
The following table provides a reconciliation of the changes in pension and retirement health and life insurance benefit obligations and fair value of assets for the years ending December 31, 2013 and 2012, and a statement of the funded status as of December 31, 2013 and 2012: | |||||||||||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of benefit obligation: | |||||||||||||||||||
Obligation at beginning of year | $ | 15 | $ | 585.4 | $ | 15.2 | $ | 487.7 | |||||||||||
Service cost | 0.1 | 12.7 | 0.1 | 9.1 | |||||||||||||||
Interest cost | 0.5 | 20.8 | 0.6 | 22.3 | |||||||||||||||
Participant contributions | 0.4 | 0.2 | 0.3 | 0.3 | |||||||||||||||
Plan amendments | — | — | — | (4.5 | ) | ||||||||||||||
Actuarial loss / (gain) | — | (7.7 | ) | 1 | 83.8 | ||||||||||||||
Benefit payments | (2.0 | ) | (28.4 | ) | (2.2 | ) | (27.9 | ) | |||||||||||
Foreign exchange effects | — | 22.3 | — | 15.2 | |||||||||||||||
Other | — | 0.9 | — | (0.6 | ) | ||||||||||||||
Obligation at end of year | $ | 14 | $ | 606.2 | $ | 15 | $ | 585.4 | |||||||||||
2013 | 2013 | 2012 | 2012 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of fair value of plan assets: | |||||||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | 172.1 | $ | — | $ | 154.6 | |||||||||||
Actual return on assets | — | 3.7 | — | 12.8 | |||||||||||||||
Employer contributions | 1.6 | 27.4 | 1.9 | 26.4 | |||||||||||||||
Participant contributions | 0.4 | 0.2 | 0.3 | 0.3 | |||||||||||||||
Benefit payments | (2.0 | ) | (28.4 | ) | (2.2 | ) | (27.9 | ) | |||||||||||
Foreign exchange effects | — | 4 | — | 7.2 | |||||||||||||||
Other expenses | — | (0.9 | ) | — | (1.3 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 178.1 | $ | — | $ | 172.1 | |||||||||||
Funded Status at December 31 | $ | (14.0 | ) | $ | (428.1 | ) | $ | (15.0 | ) | $ | (413.3 | ) | |||||||
Amounts recognized in the balance sheet: | |||||||||||||||||||
Noncurrent assets | $ | — | $ | 20.1 | $ | — | $ | 23.2 | |||||||||||
Current liabilities | (1.7 | ) | (21.9 | ) | (1.7 | ) | (19.2 | ) | |||||||||||
Noncurrent liabilities | (12.3 | ) | (426.3 | ) | (13.3 | ) | (417.3 | ) | |||||||||||
Net amounts recognized in balance sheet: | $ | (14.0 | ) | $ | (428.1 | ) | $ | (15.0 | ) | $ | (413.3 | ) | |||||||
Cumulative amounts recognized in other comprehensive income consist of: | |||||||||||||||||||
Prior service cost | $ | 0.2 | $ | — | $ | 0.2 | $ | 0.1 | |||||||||||
Net actuarial loss | 7.2 | 147 | 7.4 | 148.3 | |||||||||||||||
Total (before tax effects) | $ | 7.4 | $ | 147 | $ | 7.6 | $ | 148.4 | |||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Assets | ' | ||||||||||||||||||
The following table provides a summary of pension plans with accumulated benefit obligations in excess of assets as of December 31: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(Amounts in millions) | Foreign Pension Plans | Foreign Pension Plans | |||||||||||||||||
For all plans: | |||||||||||||||||||
Accumulated benefit obligation | $ | 545.8 | $ | 528.1 | |||||||||||||||
For pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||
Accumulated benefit obligation | $ | 390.9 | $ | 382.1 | |||||||||||||||
Total Post-Retirement Costs | ' | ||||||||||||||||||
Total post-retirement costs are shown below: | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Foreign pensions | $ | 30.9 | $ | 20.2 | $ | 25.1 | |||||||||||||
Health & Life insurance benefits (Americas) | 1 | 1 | 1 | ||||||||||||||||
Total post-retirement costs, including accretion expense | $ | 31.9 | $ | 21.2 | $ | 26.1 | |||||||||||||
Assumptions Used in Determining the Benefit Obligation and Net Cost for Post-retirement Plans | ' | ||||||||||||||||||
Major assumptions used in determining the benefit obligation and net cost for post-retirement plans are presented below as weighted averages: | |||||||||||||||||||
Benefit Obligation at December 31 | 2013 Health & Life Ins. Benefits | 2013 Foreign Pension Plans | 2012 Health & Life Ins. Benefits | 2012 Foreign Pension Plans | |||||||||||||||
Discount rate | 4 | % | 3.7 | % | 3.25 | % | 3.63 | % | |||||||||||
Salary growth | N/A | 3.18 | % | N/A | 3.22 | % | |||||||||||||
Net Periodic Pension Cost for the year | |||||||||||||||||||
Discount rate | 3.25 | % | 3.63 | % | 4.25 | % | 4.68 | % | |||||||||||
Salary growth | N/A | 3.22 | % | N/A | 3.22 | % | |||||||||||||
Expected return on plan assets | N/A | 5.38 | % | N/A | 5.78 | % | |||||||||||||
Allocation and Fair Value of Plan Assets | ' | ||||||||||||||||||
In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. | |||||||||||||||||||
Asset Allocation | 2013 | 2012 | 2013 Target | 2012 Target | |||||||||||||||
Equity securities | 22 | % | 19 | % | 24 | % | 24 | % | |||||||||||
Debt securities | 24 | % | 76 | % | 71 | % | 71 | % | |||||||||||
Insurance contracts | 46 | % | — | % | — | % | — | % | |||||||||||
Other * | 8 | % | 5 | % | 5 | % | 5 | % | |||||||||||
The fair values for each class of assets are presented below: | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | |||||||||||||||||
Equity securities | $ | 40 | $ | 32.2 | |||||||||||||||
Debt securities | 42.5 | 130.1 | |||||||||||||||||
Insurance contracts | 82.2 | — | |||||||||||||||||
Other * | 13.4 | 9.8 | |||||||||||||||||
Total fair value of plan assets | $ | 178.1 | $ | 172.1 | |||||||||||||||
Expected Future Benefit Payments | ' | ||||||||||||||||||
Expected future benefit payments are shown in the table below: | |||||||||||||||||||
(Amounts in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | |||||||||||||
Domestic plans without subsidy | $ | 1.8 | $ | 1.7 | $ | 1.5 | $ | 1.4 | $ | 1.3 | $ | 5 | |||||||
Foreign pension plans | $ | 29.2 | $ | 29.4 | $ | 29.9 | $ | 29.7 | $ | 29.6 | $ | 152.5 | |||||||
Health Care Cost Trend Rate Assumption | ' | ||||||||||||||||||
The health care cost trend rate assumption has the following effect: | |||||||||||||||||||
(Amounts in millions) | 1% Increase | 1% Decrease | |||||||||||||||||
Effect on the health care component of accumulated post-retirement obligation | $ | 0.9 | $ | (0.8 | ) | ||||||||||||||
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs | $ | — | $ | — | |||||||||||||||
Foreign Pension Plans [Member] | ' | ||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||||||||
Total Post-Retirement Costs | ' | ||||||||||||||||||
Components of post-retirement costs are broken out in the tables below: | |||||||||||||||||||
Pension Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Service cost-benefits earned during period | $ | 12.7 | $ | 9.2 | $ | 8.6 | |||||||||||||
Interest cost on projected benefit obligation | 20.8 | 22.3 | 24.4 | ||||||||||||||||
Less: assumed return on plan assets | (8.8 | ) | (8.6 | ) | (10.0 | ) | |||||||||||||
Amortization of prior service cost | 0.1 | (0.1 | ) | — | |||||||||||||||
Amortization of net loss | 6.1 | 1.7 | 2.1 | ||||||||||||||||
Plan amendments | — | (4.3 | ) | — | |||||||||||||||
Net defined benefit plan cost after amendments | $ | 30.9 | $ | 20.2 | $ | 25.1 | |||||||||||||
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ' | ||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||||||||
Total Post-Retirement Costs | ' | ||||||||||||||||||
Other Post-Retirement Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | ||||||||||||||||
Interest and service cost on projected benefit obligation | $ | 0.6 | $ | 0.6 | $ | 0.7 | |||||||||||||
Amortization of net loss | 0.4 | 0.4 | 0.3 | ||||||||||||||||
Defined benefit plan cost | $ | 1 | $ | 1 | $ | 1 | |||||||||||||
Warranties_Guarantees_Commitme1
Warranties, Guarantees, Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Summary of Changes in the Company's Product Warranty Liability | ' | |||||||||||
The following is a summary of changes in the Company’s product warranty liability for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Balance of warranty costs accrued, beginning of period | $ | 55.2 | $ | 52.6 | $ | 44.9 | ||||||
Warranty costs accrued | 21.4 | 27.1 | 41.9 | |||||||||
Warranty claims settled | (26.5 | ) | (25.3 | ) | (33.0 | ) | ||||||
Foreign exchange translation effects | 1.5 | 0.8 | (1.2 | ) | ||||||||
Balance of warranty costs accrued, end of period | $ | 51.6 | $ | 55.2 | $ | 52.6 | ||||||
Current liability, included in current portion of warranties | $ | 29.8 | $ | 33.8 | $ | 42.3 | ||||||
Long-term liability, included in other liabilities | $ | 21.8 | $ | 21.4 | $ | 10.3 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Before Income Taxes and Applicable Provision for Income Taxes | ' | |||||||||||
Income before income taxes and the applicable provision for income taxes were : | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Income before income taxes: | ||||||||||||
Domestic | $ | 94.4 | $ | 77.2 | $ | 72.4 | ||||||
Foreign | 546.5 | 258.9 | 332.5 | |||||||||
$ | 640.9 | $ | 336.1 | $ | 404.9 | |||||||
(Benefit)/provision for income taxes: | ||||||||||||
Current: | ||||||||||||
Domestic | $ | 11.4 | $ | (6.2 | ) | $ | 24.9 | |||||
Foreign | 32.2 | 32.7 | 9.9 | |||||||||
$ | 43.6 | $ | 26.5 | $ | 34.8 | |||||||
Deferred: | ||||||||||||
Domestic | $ | 101.7 | $ | 0.1 | $ | (0.4 | ) | |||||
Foreign | (166.3 | ) | (3.0 | ) | 2.3 | |||||||
$ | (64.6 | ) | $ | (2.9 | ) | $ | 1.9 | |||||
Total (benefit)/provision | $ | (21.0 | ) | $ | 23.6 | $ | 36.7 | |||||
Reconciliation of Actual Income Tax Expense to Statutory Federal Rate | ' | |||||||||||
A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 35.0% in 2013, 2012 and 2011 to the income before income taxes is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Tax provision at statutory rate | $ | 224.3 | $ | 117.4 | $ | 141.7 | ||||||
Separation related taxes and contingencies | — | 2.2 | 1.8 | |||||||||
Foreign earnings taxed at other than 35% | (93.9 | ) | (71.9 | ) | (76.6 | ) | ||||||
(Decrease)/increase in valuation allowance | (261.9 | ) | 109.8 | (33.4 | ) | |||||||
Unremitted foreign earnings | 107.4 | — | — | |||||||||
EC fine indemnity | — | (116.3 | ) | — | ||||||||
Tax contingency accruals | — | 8.1 | 18.8 | |||||||||
Benefit of tax contingency reversals | (0.4 | ) | (30.0 | ) | (19.2 | ) | ||||||
Equity compensation | 4.4 | 5 | 4.2 | |||||||||
Other, net | (0.9 | ) | (0.7 | ) | (0.6 | ) | ||||||
Total (benefit)/ provision | $ | (21.0 | ) | $ | 23.6 | $ | 36.7 | |||||
Gross Deferred Tax Liabilities and Assets | ' | |||||||||||
The following table details the gross deferred tax liabilities and assets and the related valuation allowances: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Basis difference in noncontrolling interest | $ | 11.9 | $ | 11.4 | ||||||||
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 21 | 23.3 | ||||||||||
Unremitted foreign earnings | 107.8 | — | ||||||||||
Intangibles | 3.4 | 3.6 | ||||||||||
Other | — | — | ||||||||||
$ | 144.1 | $ | 38.3 | |||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses and tax credits | $ | 195.7 | $ | 293 | ||||||||
Post-retirement and other employee benefits | 43.2 | 45.4 | ||||||||||
Intangibles | 35.7 | 32.7 | ||||||||||
Inventory | 0.8 | 0.6 | ||||||||||
Warranties | 1.4 | 2.5 | ||||||||||
Other | 16.5 | 11.6 | ||||||||||
$ | 293.3 | $ | 385.8 | |||||||||
Valuation allowances | (10.1 | ) | (272.0 | ) | ||||||||
Net deferred tax assets | $ | 139.1 | $ | 75.5 | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows (exclusive of interest): | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Beginning balance, January 1 | $ | 41.9 | $ | 209.6 | $ | 208.3 | ||||||
Additions for tax positions related to current year | — | — | 19.7 | |||||||||
Additions for tax positions related to prior years | 1.2 | 7.5 | — | |||||||||
Reductions for tax positions related to prior years | — | (172.4 | ) | (12.9 | ) | |||||||
Cash settlements | (2.0 | ) | (1.5 | ) | (10.6 | ) | ||||||
Expirations of statute of limitations | (2.0 | ) | (2.6 | ) | (5.2 | ) | ||||||
Foreign exchange | 0.2 | 1.3 | 10.3 | |||||||||
Ending balance, December 31 | $ | 39.3 | $ | 41.9 | $ | 209.6 | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Equity Method Investee [Member] | ' | |||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | |||||||||||||||||||||||
Schedule Of Related Party Transactions, By Related Party | ' | |||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Meritor WABCO | $ | 176 | $ | 180.7 | $ | 174 | $ | — | $ | — | $ | 0.2 | ||||||||||||
WABCO SA | 5.7 | 6.7 | 7.6 | — | — | — | ||||||||||||||||||
WABCOWURTH | 0.2 | 0.2 | 0.2 | 0.3 | 0.2 | — | ||||||||||||||||||
(Amounts in millions) | WABCO Receivables from | WABCO Payables to | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Meritor WABCO | $ | 28.3 | $ | 24.8 | $ | — | $ | — | ||||||||||||||||
WABCO SA | 1.1 | 2.1 | — | — | ||||||||||||||||||||
WABCOWURTH | 0.2 | 0.1 | 0.6 | 0.6 | ||||||||||||||||||||
Consolidated Joint Venture [Member] | ' | |||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | |||||||||||||||||||||||
Schedule Of Related Party Transactions, By Related Party | ' | |||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Sanwa-Seiki | $ | — | $ | 0.2 | $ | 0.2 | $ | 33.7 | $ | 42.9 | $ | 39.3 | ||||||||||||
Cummins | 72.9 | 75.8 | 68.5 | — | — | — | ||||||||||||||||||
FUWA | 3 | 1 | 4.1 | — | — | — | ||||||||||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | |||||||||||
Geographic Data | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Product Sales: | ||||||||||||
OEM | $ | 2,043.50 | $ | 1,847.40 | $ | 2,150.40 | ||||||
Aftermarket | 677 | 630 | 643.7 | |||||||||
Sales-Geographic distribution (a): | ||||||||||||
United States | $ | 296.2 | $ | 274.5 | $ | 246.2 | ||||||
Europe (countries below are included in this total) | 1,666.30 | 1,496.70 | 1,737.50 | |||||||||
Germany | 731.3 | 657.6 | 759 | |||||||||
France | 99.5 | 89 | 111.9 | |||||||||
Sweden | 215.4 | 201.7 | 238.2 | |||||||||
Other (countries below are included in this total) | 758 | 706.2 | 810.4 | |||||||||
Japan | 100.5 | 116.1 | 104.6 | |||||||||
China | 192.6 | 152.3 | 162.1 | |||||||||
Brazil | 180.9 | 135.3 | 195.3 | |||||||||
India | 106.1 | 147 | 181.7 | |||||||||
Total sales | $ | 2,720.50 | $ | 2,477.40 | $ | 2,794.10 | ||||||
(a) | Sales to external customers are classified by country of destination. | |||||||||||
As of December 31, | ||||||||||||
(Amounts in millions) | 2013 | 2012 | 2011 | |||||||||
Long-lived Assets (b) | ||||||||||||
Geographic distribution: | ||||||||||||
United States | $ | 20.2 | $ | 14.1 | $ | 11.9 | ||||||
Europe (countries below are included in this total) | 655.7 | 607.8 | 576.2 | |||||||||
Germany | 323.7 | 303.2 | 295.6 | |||||||||
Poland | 110.8 | 93.7 | 79.5 | |||||||||
Other (countries below are included in this total) | 213.5 | 220.5 | 209 | |||||||||
India | 97.7 | 104.1 | 98.7 | |||||||||
Total long-lived assets | $ | 889.4 | $ | 842.4 | $ | 797.1 | ||||||
(b) | Amounts are presented on a net basis |
Noncontrolling_Interests_Table
Noncontrolling Interests (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Effect of change in ownership interest | ' | |||||||
The table below shows the effect of the change in ownership interest on the Company's equity for the years ended December 31, 2013 and 2012 (amounts in millions): | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
Net income attributable to Company | $ | 653.2 | $ | 302 | ||||
Transfers from the noncontrolling interest: | ||||||||
Increase in paid-in capital for acquisition of noncontrolling interest | 1.1 | — | ||||||
Net transfers from noncontrolling interest | $ | 1.1 | $ | — | ||||
Change from net income attributable to Company and transfers from noncontrolling interest | $ | 654.3 | $ | 302 | ||||
Quarterly_Data_Unaudited_Table
Quarterly Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
Year 2013 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 644.7 | $ | 678.2 | $ | 677.1 | $ | 720.5 | ||||||||
Cost of sales | 447 | 471.6 | 477.6 | 515.2 | ||||||||||||
Gross profit | 197.7 | 206.6 | 199.5 | 205.3 | ||||||||||||
Income before income taxes | 84.2 | 95.5 | 90.5 | 370.8 | ||||||||||||
Income tax expense / (benefit) | 8.2 | 9.7 | 8 | (46.8 | ) | |||||||||||
Net income attributable to Company | $ | 73.7 | $ | 83.2 | $ | 80 | $ | 416.3 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.17 | $ | 1.33 | $ | 1.28 | $ | 6.73 | ||||||||
Diluted | $ | 1.15 | $ | 1.31 | $ | 1.26 | $ | 6.65 | ||||||||
Year 2012 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 657.3 | $ | 635.2 | $ | 588.3 | $ | 596.5 | ||||||||
Cost of sales | 461.2 | 441.5 | 413.1 | 421.3 | ||||||||||||
Gross profit | 196.1 | 193.7 | 175.2 | 175.2 | ||||||||||||
Income before income taxes | 93.4 | 96.5 | 76.2 | 70.1 | ||||||||||||
Income tax expense / (benefit) | 1.4 | 17.6 | (3.3 | ) | 8 | |||||||||||
Net income attributable to Company | $ | 89.2 | $ | 75.6 | $ | 77.5 | $ | 59.7 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.38 | $ | 1.18 | $ | 1.22 | $ | 0.95 | ||||||||
Diluted | $ | 1.34 | $ | 1.15 | $ | 1.19 | $ | 0.93 | ||||||||
Description_of_Company_Details
Description of Company (Details) | 0 Months Ended | 12 Months Ended |
Jul. 31, 2007 | Dec. 31, 2013 | |
segment | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Common stock distribution percentage due to spin-off | 100.00% | ' |
Common stock distribution, due to spin-off, conversion ratio | 3 | ' |
Number of reportable segments | ' | 1 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies Excluding Property Plant and Equipment [Abstract] | ' | ' | ' |
Sales incentive allowance | $42,400,000 | $36,600,000 | $43,000,000 |
Short-term investments | 55,200,000 | 0 | ' |
Impairment | 0 | ' | ' |
Goodwill impairment | 0 | ' | ' |
Standard warranty period | '2 years | ' | ' |
Product warranty costs, percentage of net sales | 0.80% | 1.10% | 1.50% |
Research and development expense | 119,400,000 | 104,300,000 | 105,100,000 |
Unremitted foreign earnings | $300,000,000 | ' | ' |
Building [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '40 years | ' | ' |
Computer Software Costs [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '7 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Accounting Policies Excluding Property Plant and Equipment [Abstract] | ' | ' | ' |
Useful life | '1 year | ' | ' |
Tax position recognized, likelihood percentage | 50.00% | ' | ' |
Tax benefit, likelihood percentage | 50.00% | ' | ' |
Minimum [Member] | Tooling [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '3 years | ' | ' |
Minimum [Member] | Other Machinery and Equipment [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '5 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Accounting Policies Excluding Property Plant and Equipment [Abstract] | ' | ' | ' |
Useful life | '15 years | ' | ' |
Maximum [Member] | Tooling [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '5 years | ' | ' |
Maximum [Member] | Other Machinery and Equipment [Member] | ' | ' | ' |
Accounting Policies Property Plant And Equipment [Abstract] | ' | ' | ' |
Property, plant and equipment, useful life, average, years | '15 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' |
Weighted average incremental shares included | 908,071 | 1,416,397 | 2,136,376 |
Shares excluded due to anti-dilutive effect | 3,000 | 480,756 | 205,321 |
Streamlining_Expenses_Narrativ
Streamlining Expenses (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 29, 2008 | Dec. 31, 2013 | Dec. 31, 2013 |
employees | Other Liabilities [Member] | Streamlining Liabilities [Member] | |
Approximate global workforce reduction due to streamlining, employees | 1,800 | ' | ' |
Streamlining expenses | ' | $13.50 | $12.60 |
Streamlining_Expenses_Schedule
Streamlining Expenses (Schedule of Streamlining Expenses) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Restructuring Reserve [Roll Forward] | ' |
Foreign exchange translation effects | $1.20 |
Total streamlining liability | 26.1 |
2008 / 2009 Program [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning balance | 10.2 |
Charges during 2012 | 0 |
Payments during 2012 | -4.3 |
Ending balance | 5.9 |
Other Programs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning balance | 9.9 |
Charges during 2012 | 17.9 |
Payments during 2012 | -8.8 |
Ending balance | $19 |
Streamlining_Expenses_Schedule1
Streamlining Expenses (Schedule of Current and Cumulative Streamlining Costs) (Details) (USD $) | 12 Months Ended | 50 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
2008 / 2009 Program [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Employee related charges - cost of sales | $0 | $45.70 |
Employee related charges - selling and administrative | 0 | 45.8 |
Total employee related charges | 0 | 91.5 |
Asset write-offs | 0 | 0 |
Total program costs | 0 | 91.5 |
Other Programs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Employee related charges - cost of sales | 6.6 | 16.6 |
Employee related charges - selling and administrative | 10.5 | 20 |
Total employee related charges | 17.1 | 36.6 |
Asset write-offs | 0.8 | 1.8 |
Total program costs | $17.90 | $38.40 |
Capital_Stock_Schedule_of_Net_
Capital Stock (Schedule of Net Shares Outstanding and Shares Issued or Reacquired) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Total Shares, beginning balance | 75,755,306 | 74,242,930 | 72,415,415 |
Total Shares, ending balance | 77,471,174 | 75,755,306 | 74,242,930 |
Treasury Shares, beginning balance | -13,008,155 | -9,477,275 | -5,956,806 |
Treasury Shares, ending balance | -16,112,149 | -13,008,155 | -9,477,275 |
Net Shares Outstanding, beginning balance | 62,747,151 | 64,765,655 | 66,458,609 |
Shares issued upon exercise of stock options | 1,600,850 | 1,312,288 | 1,630,838 |
Shares issued upon vesting of RSUs | 115,018 | 200,088 | 196,677 |
Shares purchased for treasury | -3,103,994 | -3,530,880 | -3,520,469 |
Net Shares Outstanding, ending balance | 61,359,025 | 62,747,151 | 64,765,655 |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 31 Months Ended | 1 Months Ended | ||||
Oct. 29, 2013 | Oct. 26, 2012 | 26-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 13, 2014 | |
repurchase_program | Subsequent Share Repurchase [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase, amount authorized | $200,000,000 | $400,000,000 | $400,000,000 | ' | ' | ' | ' | ' |
Repurchases of treasury stock | ' | ' | ' | ' | ' | ' | 620,300,000 | 8,500,000 |
Number of repurchase programs | ' | ' | ' | 3 | ' | ' | ' | ' |
Unexpended amount of share repurchase authorized | ' | ' | ' | ' | ' | ' | $379,700,000 | ' |
Shares purchased for treasury (shares) | ' | ' | ' | 3,103,994 | 3,530,880 | 3,520,469 | ' | 93,164 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.01 | ' | ' |
Dividends paid | $0 | $0 | $0 |
Shares authorized to issue under 2009 Omnibus Plan | 5,100,000 | ' | ' |
Share-based compensation arrangement, awards outstanding | 1,596,690 | ' | ' |
Shares remaining available for grant | 3,922,565 | ' | ' |
Options and RSUs outstanding, total aggregate intrinsic value | 61,300,000 | ' | ' |
Options exercisable, total aggregate intrinsic value | 52,300,000 | ' | ' |
Options outstanding, less expected forfeitures, total aggregate intrinsic value | 61,200,000 | ' | ' |
Options exercised in period, total intrinsic value | 69,900,000 | 49,900,000 | 68,900,000 |
Options, total fair value of shares vested value | 9,500,000 | 14,200,000 | 13,200,000 |
Nonvested options and RSUs, shares | 615,371 | ' | ' |
Nonvested options and RSUs, compensation cost | 19,800,000 | ' | ' |
Nonvested awards, total compensation cost not yet recognized, period for recognition, years | '1 year 9 months 18 days | ' | ' |
Weighted average remaining contractual life, options outstanding, years | '4 years 8 months 12 days | ' | ' |
Weighted average remaining contractual life of vested options | '4 years | ' | ' |
Company historical volatility | ' | '5 years | '5 years |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $1,800,000 | ' | ' |
Common Stock [Member] | ' | ' | ' |
Company historical volatility | '4 years | ' | ' |
Peer group historical volatility | '5 years | ' | ' |
Peer group median historical volatility | '3 years | ' | ' |
Stock Options And Stock Appreciation Rights [Member] | ' | ' | ' |
Maximum number of shares granted per participant per calendar year | 750,000 | ' | ' |
Restricted Stock And Restricted Stock Units [Member] | ' | ' | ' |
Maximum number of shares granted per participant per calendar year | 200,000 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Options, grants in period, gross | 0 | 284,691 | 276,287 |
Contractual term of options | '10 years | ' | ' |
Stock Options [Member] | WABCO [Member] | ' | ' | ' |
Options, grants in period, gross | 0 | 284,691 | 276,287 |
Vested remaining contractual term | '3 years | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Grants during period | 119,728 | 133,804 | 220,181 |
Remaining grants | 10,474 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Exercisable after Two Years [Member] | ' | ' | ' |
Vested remaining contractual term | ' | ' | '2 years |
Grants during period | ' | ' | 3,973 |
Restricted Stock Units (RSUs) [Member] | Exercisable after Three Years [Member] | ' | ' | ' |
Vested remaining contractual term | '3 years | ' | ' |
Grants during period | 3,710 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Vest Ratably over Three Years [Member] | ' | ' | ' |
Vested remaining contractual term | '3 years | '3 years | '3 years |
Grants during period | 109,254 | 103,581 | 101,647 |
Restricted Stock Units (RSUs) [Member] | Vest Immediately [Member] | ' | ' | ' |
Grants during period | 6,764 | 11,023 | ' |
Restricted Stock Units (RSUs) [Member] | Vest After Two Years [Member] | ' | ' | ' |
Vested remaining contractual term | ' | '2 years | ' |
Grants during period | ' | 6,454 | ' |
Restricted Stock Units (RSUs) [Member] | Vest After Three Years [Member] | ' | ' | ' |
Vested remaining contractual term | ' | '3 years | '3 years |
Grants during period | ' | 12,746 | 41,064 |
Restricted Stock Units (RSUs) [Member] | Vest After Four Years [Member] | ' | ' | ' |
Vested remaining contractual term | ' | ' | '4 years |
Grants during period | ' | ' | 73,497 |
Performance Stock Units [Member] | ' | ' | ' |
Percentage vesting, lower range | 0.00% | ' | ' |
Percentage vesting, higher range | 200.00% | ' | ' |
Grants during period | 94,364 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Period | '3 years | ' | ' |
StockBased_Compensation_Total_
Stock-Based Compensation (Total Stock-Based Compensation Cost and Total Number and Type of Awards Granted and Related-Weighted Average Grant-Date Fair Values) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangements by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation (before tax effects) (value) | $13.60 | $14.30 | $13.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Options Exercised, Underlying Shares | -1,600,850 | -1,312,288 | -1,630,838 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Options Outstanding, Underlying Shares, beginning balance | 2,868,192 | 3,942,677 | 5,341,790 |
Options Granted, Underlying Shares | 0 | 284,691 | 276,287 |
Options Exercised, Underlying Shares | -1,602,068 | -1,316,743 | -1,632,206 |
Options Forfeited, Underlying Shares | -53,591 | -42,433 | -43,194 |
Options Outstanding, Underlying Shares, ending balance | 1,212,533 | 2,868,192 | 3,942,677 |
Exercisable, Underlying Shares | 956,186 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Options Outstanding, Weighted-Average Exercise Price, beginning price (in dollars per share) | $35.82 | $29.61 | $26.02 |
Options Granted, Weighted-Average Exercise Price (in dollars per share) | $0 | $58.71 | $59.24 |
Options Exercised, Weighted-Average Exercise Price (in dollars per share) | $31.08 | $21.90 | $22.52 |
Options Forfeited, Weighted-Average Exercise Price (in dollars per share) | $52.71 | $40.74 | $34.12 |
Options Outstanding, Weighted-Average Exercise Price, ending price (in dollars per share) | $41.20 | $35.82 | $29.61 |
Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $37.30 | ' | ' |
Options Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $0 | $23.10 | $22.94 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
RSUs Outstanding , Underlying Shares, beginning balance | 365,731 | 484,844 | 523,393 |
RSUs Granted, Underlying Shares | 119,728 | 133,804 | 220,181 |
RSUs Vested , Underlying Shares | -138,005 | -232,980 | -245,035 |
RSUs Forfeited, Underlying Shares | -47,707 | -19,937 | -13,695 |
RSUs Outstanding , Underlying Shares, ending balance | 299,747 | 365,731 | 484,844 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
RSUs/PSUs Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $55.08 | $38.80 | $62.44 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $68.72 | $58.47 | ' |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $44.34 | $23.14 | $19.87 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $60.86 | $53.63 | $37.55 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $64.79 | $55.08 | $38.80 |
Performance Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
RSUs Granted, Underlying Shares | 94,364 | ' | ' |
RSUs Forfeited, Underlying Shares | -9,954 | ' | ' |
RSUs Outstanding , Underlying Shares, ending balance | 84,410 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $68.10 | ' | ' |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $68.10 | ' | ' |
WABCO employees [Member] | Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Options Outstanding, Underlying Shares, beginning balance | 2,300,133 | 3,090,240 | 4,076,757 |
Options Granted, Underlying Shares | 0 | 284,691 | 276,287 |
Options Exercised, Underlying Shares | -1,359,825 | -1,037,538 | -1,228,475 |
Options Forfeited, Underlying Shares | -53,391 | -37,260 | -34,329 |
Options Outstanding, Underlying Shares, ending balance | 886,917 | 2,300,133 | 3,090,240 |
Exercisable, Underlying Shares | 630,570 | ' | ' |
Trane employees [Member] | Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Options Outstanding, Underlying Shares, beginning balance | 568,059 | 852,437 | 1,265,033 |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | -242,243 | -279,205 | -403,731 |
Options Forfeited, Underlying Shares | -200 | -5,173 | -8,865 |
Options Outstanding, Underlying Shares, ending balance | 325,616 | 568,059 | 852,437 |
Exercisable, Underlying Shares | 325,616 | ' | ' |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted Average Grant Date Fair Value Calculated under Black-Scholes Option-Pricing Model) (Details) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation [Abstract] | ' | ' |
Risk-free interest rate | 0.81% | 2.30% |
Expected volatility | 44.48% | 42.82% |
Expected holding period | '5 years | '5 years |
Expected dividend yield | 0.00% | 0.47% |
Other_Operating_and_NonOperati2
Other Operating and Non-Operating Expense / (Income), Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating: | ' | ' | ' |
Bank charges | $2 | $1.50 | $1.70 |
Miscellaneous taxes | 2.9 | 2.4 | 1.8 |
Other expense/(income), net | 0.1 | -0.7 | 2.3 |
Other operating expense (income) | 5 | 3.2 | 5.8 |
Non-operating: | ' | ' | ' |
Indemnification settlements, net | -8.8 | 3.4 | -22.8 |
Receivable discount fees | 1 | 1.1 | 2.3 |
Foreign exchange (gain)/loss | -2.3 | 0.8 | -0.6 |
Other expense/(income), net | 3.2 | -0.3 | 0.9 |
Other nonoperating expense (income) | ($6.90) | $5 | ($20.20) |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $93.90 | $76.90 |
Products in process | 7.2 | 7.1 |
Raw materials | 106.1 | 107.8 |
Inventories at cost | 207.2 | 191.8 |
Inventory allowance reserve | $17.20 | $14.40 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | $900.70 | $830.40 | ' |
Less: accumulated depreciation | 478.2 | 441.4 | ' |
Net property, plant and equipment | 422.5 | 389 | ' |
Depreciation expense | 74.6 | 65.6 | 66.4 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | 23.8 | 22.3 | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | 178.7 | 164.1 | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | 659 | 618.3 | ' |
Tooling [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | 80.6 | 74.5 | ' |
Improvements In Progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross property, plant and equipment | $39.20 | $25.70 | ' |
Accounts_Receivable_Securitiza1
Accounts Receivable Securitization Program & Financing Receivables (Details) | 0 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Apr. 15, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Feb. 01, 2013 | Jan. 31, 2013 | Sep. 23, 2009 |
EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | |
annual_extension | ||||||||||
Accounts Receivable Financing Facility [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum funding from receivables | ' | ' | ' | ' | ' | ' | ' | ' | € 100 | € 80 |
Maximum funding from receivables after voluntary reduction | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' |
Original term of the receivables facility, years | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' |
Receivable facility, possible extensions, in years | ' | 4 | 4 | ' | ' | ' | ' | ' | ' | ' |
Receivables facility term period extended, years | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' |
Receivables sold under securitization program | ' | 1,050.60 | 790.8 | 941.1 | 731.7 | 1,136.80 | 816.8 | ' | ' | ' |
Eligible receivables sold and outstanding | ' | 103.6 | 75 | 89.1 | 67.4 | ' | ' | ' | ' | ' |
Decrease in accounts receivable | ' | 103.6 | ' | 89.1 | ' | ' | ' | ' | ' | ' |
Increase in cash and cash equivalents | ' | 51.5 | ' | 51.7 | ' | ' | ' | ' | ' | ' |
Restricted cash before the effect of cash collections | ' | 52.1 | ' | 37.4 | ' | ' | ' | ' | ' | ' |
Additional cash classified as short term loan | ' | 53.9 | ' | 39.1 | ' | ' | ' | ' | ' | ' |
Cash receipts from bank loans | ' | 36.4 | ' | 27.7 | ' | ' | ' | ' | ' | ' |
Remaining amount of restricted cash deposited with bank | ' | 34.6 | ' | 26 | ' | ' | ' | ' | ' | ' |
Reduced subordinated deposit | ' | 17.5 | ' | ' | ' | ' | ' | ' | ' | ' |
Unsold receivables pledged as collateral | ' | 4.4 | 3.2 | 12.9 | 9.8 | ' | ' | ' | ' | ' |
Servicing fees | ' | 0.8 | ' | 0.8 | ' | 1.4 | ' | ' | ' | ' |
Factoring program | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Factoring program, years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable discounted or transferred | ' | 42.8 | ' | 33.3 | ' | 62.8 | ' | ' | ' | ' |
Expense from discount/transfer of notes receivable | ' | ' | ' | 0.1 | ' | 0.6 | ' | ' | ' | ' |
Notes receivable | ' | $51.40 | ' | $41.20 | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization of Intangible Assets | $10.60 | $9.50 | $10.30 |
Goodwill [Roll Forward] | ' | ' | ' |
Balance of goodwill, beginning of year | 371.7 | 363.9 | ' |
Acquisitions | 0 | 3.6 | ' |
Foreign exchange translation | 9.5 | 4.2 | ' |
Balance of goodwill, end of year | $381.20 | $371.70 | $363.90 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Changes in Carrying Value of Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross intangible assets as of: | ' | ' | ' |
Gross intangible assets, beginning of year | $122.50 | $113.70 | $112.80 |
Additions | 15.7 | 13.3 | 9 |
Disposals | -2.4 | -4.5 | -2.6 |
Foreign exchange translation | 4.1 | 0 | -5.5 |
Gross intangible assets, end of year | 139.9 | 122.5 | 113.7 |
Accumulated amortization as of: | ' | ' | ' |
Accumulated amortization, beginning of year | -83.1 | -78 | -72.7 |
Amortization expense | -10.6 | -9.5 | -10.3 |
Disposals | 2.3 | 4.3 | 2.5 |
Foreign exchange translation | -4.2 | 0.1 | 2.5 |
Accumulated amortization, end of year | -95.6 | -83.1 | -78 |
Net intangible assets | 44.3 | 39.4 | ' |
Capitalized Software [Member] | ' | ' | ' |
Gross intangible assets as of: | ' | ' | ' |
Gross intangible assets, beginning of year | 95.5 | 90.9 | 89.2 |
Additions | 13.5 | 8.7 | 6.9 |
Disposals | -1.9 | -4.5 | -2.6 |
Foreign exchange translation | 4.3 | 0.4 | -2.6 |
Gross intangible assets, end of year | 111.4 | 95.5 | 90.9 |
Accumulated amortization as of: | ' | ' | ' |
Accumulated amortization, beginning of year | -72.8 | -70.5 | -67.5 |
Amortization expense | -7.5 | -6.6 | -7.5 |
Disposals | 1.9 | 4.3 | 2.5 |
Foreign exchange translation | -3.4 | 0 | 2 |
Accumulated amortization, end of year | -81.8 | -72.8 | -70.5 |
Net intangible assets | 29.6 | ' | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Gross intangible assets as of: | ' | ' | ' |
Gross intangible assets, beginning of year | 27 | 22.8 | 23.6 |
Additions | 2.2 | 4.6 | 2.1 |
Disposals | -0.5 | ' | 0 |
Foreign exchange translation | -0.2 | -0.4 | -2.9 |
Gross intangible assets, end of year | 28.5 | 27 | 22.8 |
Accumulated amortization as of: | ' | ' | ' |
Accumulated amortization, beginning of year | -10.3 | -7.5 | -5.2 |
Amortization expense | -3.1 | -2.9 | -2.8 |
Disposals | 0.4 | ' | 0 |
Foreign exchange translation | -0.8 | 0.1 | 0.5 |
Accumulated amortization, end of year | -13.8 | -10.3 | -7.5 |
Net intangible assets | 14.7 | ' | ' |
Minimum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Future Annual Amortization Expense | 10 | ' | ' |
Maximum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Future Annual Amortization Expense | $12 | ' | ' |
Postretirement_Benefits_Reconc
Post-retirement Benefits (Reconciliation of Benefit Obligation and Fair Value of Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Post-retirement benefits, long-term liability | $438.60 | $430.60 |
Reconciliation of benefit obligation: [Roll Forward] | ' | ' |
Benefit payments | ' | -27.4 |
Reconciliation of fair value of plan assets: [Roll Forward] | ' | ' |
Benefit payments | ' | -27.4 |
Cumulative amounts recognized in other Comprehensive Income consists of: | ' | ' |
Amount in other comprehensive income expected to be recognized | 5.6 | ' |
Foreign Pension Plans [Member] | ' | ' |
Reconciliation of benefit obligation: [Roll Forward] | ' | ' |
Obligation at beginning of year | 585.4 | 487.7 |
Service cost | 12.7 | 9.1 |
Interest cost | 20.8 | 22.3 |
Participant contributions | 0.2 | 0.3 |
Plan amendments | 0 | -4.5 |
Actuarial loss / (gain) | -7.7 | 83.8 |
Benefit payments | -28.4 | -27.9 |
Foreign exchange effects | 22.3 | 15.2 |
Other | 0.9 | -0.6 |
Obligation at end of year | 606.2 | 585.4 |
Reconciliation of fair value of plan assets: [Roll Forward] | ' | ' |
Fair value of plan assets at beginning of year | 172.1 | 154.6 |
Actual return on assets | 3.7 | 12.8 |
Employer contributions | 27.4 | 26.4 |
Participant contributions | 0.2 | 0.3 |
Benefit payments | -28.4 | -27.9 |
Foreign exchange effects | 4 | 7.2 |
Other expenses | -0.9 | -1.3 |
Fair value of plan assets at end of year | 178.1 | 172.1 |
Funded Status at December 31 | -428.1 | -413.3 |
Amounts recognized in balance sheet: | ' | ' |
Noncurrent assets | 20.1 | 23.2 |
Current liabilities | -21.9 | -19.2 |
Noncurrent liabilities | -426.3 | -417.3 |
Net amounts recognized in balance sheet: | -428.1 | -413.3 |
Cumulative amounts recognized in other Comprehensive Income consists of: | ' | ' |
Prior service cost | 0 | 0.1 |
Net actuarial loss | 147 | 148.3 |
Total (before tax effects) | 147 | 148.4 |
Health & Life Ins. Benefits [Member] | ' | ' |
Reconciliation of benefit obligation: [Roll Forward] | ' | ' |
Obligation at beginning of year | 15 | 15.2 |
Service cost | 0.1 | 0.1 |
Interest cost | 0.5 | 0.6 |
Participant contributions | 0.4 | 0.3 |
Plan amendments | 0 | 0 |
Actuarial loss / (gain) | 0 | 1 |
Benefit payments | -2 | -2.2 |
Foreign exchange effects | 0 | 0 |
Other | 0 | 0 |
Obligation at end of year | 14 | 15 |
Reconciliation of fair value of plan assets: [Roll Forward] | ' | ' |
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on assets | 0 | 0 |
Employer contributions | 1.6 | 1.9 |
Participant contributions | 0.4 | 0.3 |
Benefit payments | -2 | -2.2 |
Foreign exchange effects | 0 | 0 |
Other expenses | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Funded Status at December 31 | -14 | -15 |
Amounts recognized in balance sheet: | ' | ' |
Noncurrent assets | 0 | 0 |
Current liabilities | -1.7 | -1.7 |
Noncurrent liabilities | -12.3 | -13.3 |
Net amounts recognized in balance sheet: | -14 | -15 |
Cumulative amounts recognized in other Comprehensive Income consists of: | ' | ' |
Prior service cost | 0.2 | 0.2 |
Net actuarial loss | 7.2 | 7.4 |
Total (before tax effects) | $7.40 | $7.60 |
Postretirement_Benefits_Pensio
Post-retirement Benefits (Pension Plans with Accumulated Benefit Obligations in Excess of Assets) (Details) (Foreign Pension Plans [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Foreign Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | $545.80 | $528.10 |
Accumulated benefit obligations in excess of plan assets | $390.90 | $382.10 |
Postretirement_Benefits_Total_
Post-retirement Benefits (Total Post-Retirement Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined benefit plan cost | $31.90 | $21.20 | $26.10 |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost-benefits earned during period | 12.7 | 9.1 | ' |
Interest cost on the projected benefit obligation | 20.8 | 22.3 | ' |
Plan amendments | 0 | 4.5 | ' |
Defined benefit plan cost | 30.9 | 20.2 | 25.1 |
Pension Benefit Costs [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost-benefits earned during period | 12.7 | 9.2 | 8.6 |
Interest cost on the projected benefit obligation | 20.8 | 22.3 | 24.4 |
Less assumed return on plan assets | -8.8 | -8.6 | -10 |
Amortization of prior service cost | 0.1 | -0.1 | 0 |
Amortization of net loss | 6.1 | 1.7 | 2.1 |
Plan amendments | 0 | -4.3 | 0 |
Defined benefit plan cost | 30.9 | 20.2 | 25.1 |
Health & Life Ins. Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost-benefits earned during period | 0.1 | 0.1 | ' |
Interest cost on the projected benefit obligation | 0.5 | 0.6 | ' |
Interest and service cost on projected benefit obligation | 0.6 | 0.6 | 0.7 |
Amortization of net loss | 0.4 | 0.4 | 0.3 |
Plan amendments | 0 | 0 | ' |
Defined benefit plan cost | $1 | $1 | $1 |
Postretirement_Benefits_Assump
Post-retirement Benefits (Assumptions Used in Determining the Benefit Obligation and Net Cost for Post-retirement Plans) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Pension Plans [Member] | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' |
Discount rate | 3.70% | 3.63% |
Salary growth | 3.18% | 3.22% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' |
Discount rate | 3.63% | 4.68% |
Salary growth | 3.22% | 3.22% |
Expected return on plan assets | 5.38% | 5.78% |
Health & Life Ins. Benefits [Member] | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' |
Discount rate | 4.00% | 3.25% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' |
Discount rate | 3.25% | 4.25% |
Postretirement_Benefits_Alloca
Post-retirement Benefits (Allocation and Fair Value of Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation Percentage, Equity Securities | 22.00% | 19.00% |
Target Allocation Percentage, Equity Securities | 24.00% | 24.00% |
Corporate debt securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation Percentage, Equity Securities | 24.00% | 76.00% |
Target Allocation Percentage, Equity Securities | 71.00% | 71.00% |
Insurance contracts [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation Percentage, Equity Securities | 46.00% | 0.00% |
Target Allocation Percentage, Equity Securities | 0.00% | 0.00% |
Other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation Percentage, Equity Securities | 8.00% | 5.00% |
Target Allocation Percentage, Equity Securities | 5.00% | 5.00% |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair Value of Plan Assets | 178.1 | 172.1 |
Fair Value, Inputs, Level 1 [Member] | Equity securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair Value of Plan Assets | 40 | 32.2 |
Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair Value of Plan Assets | 42.5 | 130.1 |
Fair Value, Inputs, Level 1 [Member] | Other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair Value of Plan Assets | 13.4 | 9.8 |
Fair Value, Inputs, Level 2 [Member] | Insurance contracts [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair Value of Plan Assets | 82.2 | 0 |
Postretirement_Benefits_Expect
Post-retirement Benefits (Expected Future Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Domestic plans without subsidy [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2014 | $1.80 |
2015 | 1.7 |
2016 | 1.5 |
2017 | 1.4 |
2018 | 1.3 |
2019-2023 | 5 |
Foreign Pension Plans [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2014 | 29.2 |
2015 | 29.4 |
2016 | 29.9 |
2017 | 29.7 |
2018 | 29.6 |
2019-2023 | $152.50 |
Postretirement_Benefits_Health
Post-retirement Benefits (Health Care Cost Trend Rate Assumption) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Weighted average annual assumed rate of increase in the health care cost trend rate | 7.00% | 8.00% |
Weighted average annual assumed rate of increase in health care cost trend rate for next fiscal year | 6.75% | ' |
Weighted average annual assumed rate of increase for future years | 4.75% | ' |
Effect on the health care component of accumulated post-retirement obligation, one percentage point increase | $0.90 | ' |
Effect on the health care component of accumulated post-retirement obligation, one percentage point decrease | -0.8 | ' |
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs, one percentage point increase | 0 | ' |
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs, one percentage point decrease | $0 | ' |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 08, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Subsidiaries [Member] | Subsidiaries [Member] | Credit Facility Expiring in 2016 [Member] | Credit Facility Expiring in 2016 [Member] | Credit Facility Expiring in 2016 [Member] | Credit Facility Expiring in 2016 [Member] | Credit Facility Expiring in 2016 [Member] | Credit Facility Expiring in 2016 [Member] | Local Working Capital Requirements [Member] | |||
Letters of Credit [Member] | Letters of Credit [Member] | Swingline Loans [Member] | Subsidiaries [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility initiation date | ' | ' | ' | ' | 8-Jul-11 | ' | ' | ' | ' | ' | ' |
Multi-currency revolving credit facility | ' | ' | ' | ' | $400,000,000 | ' | $400,000,000 | $50,000,000 | ' | $50,000,000 | ' |
Term of credit facility, years | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Expiration date | ' | ' | ' | ' | 1-Sep-16 | ' | ' | ' | ' | ' | ' |
Unused letters of credit | ' | ' | ' | ' | ' | ' | ' | 48,800,000 | ' | 50,000,000 | ' |
Balance outstanding | ' | ' | ' | ' | 47,000,000 | 46,300,000 | ' | 1,200,000 | 1,300,000 | ' | ' |
Aggregate interest rate on loan drawings | 1.04% | 0.93% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lower range of basis spread on variable rate | ' | ' | ' | ' | 0.80% | ' | ' | ' | ' | ' | ' |
Higher range of basis spread on variable rate | ' | ' | ' | ' | 1.55% | ' | ' | ' | ' | ' | ' |
Maximum secured indebtedness of subsidiaries | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' |
Incremental ability to borrow | ' | ' | ' | ' | 351,800,000 | 352,400,000 | ' | ' | ' | ' | ' |
Borrowings from banks | ' | ' | 40,100,000 | 29,500,000 | ' | ' | ' | ' | ' | ' | 3,700,000 |
Cash receipts from bank loans | $36,400,000 | $27,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranties_Guarantees_Commitme2
Warranties, Guarantees, Commitments and Contingencies (Narrative) (Details) | 0 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 16, 2013 | Aug. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 23, 2010 | Jun. 23, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | EUR (€) | Tax Litigation Claims [Member] | Letters of Credit [Member] | Other Items [Member] | |
USD ($) | USD ($) | USD ($) | ||||||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standard warranty period | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Minimum Rental Commitments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | $17.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | 11.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | 9.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | 8.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | 6.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | 13.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total future minimum rental commitments | ' | ' | 65.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases, net rental expense | ' | ' | 18.9 | 19.6 | 19 | ' | ' | ' | ' | ' | ' | ' |
Bank guarantees | ' | ' | 50.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncollateralized bank guarantees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.9 | 1.2 | 4.5 |
Pledged inventory and receivables | ' | ' | 7.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsold receivables pledged as collateral | ' | ' | 4.4 | 12.9 | ' | 3.2 | 9.8 | ' | ' | ' | ' | ' |
Fines | 120.3 | ' | ' | ' | ' | ' | ' | 400 | 326.1 | ' | ' | ' |
Cash on hand to escrow | ' | 230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowings to escrow | ' | 96.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of fines | 205.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax indemnification liability to former affiliate | ' | ' | $9.20 | $18.80 | ' | ' | ' | ' | ' | ' | ' | ' |
Warranties_Guarantees_Commitme3
Warranties, Guarantees, Commitments and Contingencies (Summary of Changes in the Company's Product Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Balance of warranty costs accrued, beginning of period | $55.20 | $52.60 | $44.90 |
Warranty costs accrued | 21.4 | 27.1 | 41.9 |
Warranty claims settled | -26.5 | -25.3 | -33 |
Foreign exchange translation effects | 1.5 | 0.8 | -1.2 |
Balance of warranty costs accrued, end of period | 51.6 | 55.2 | 52.6 |
Current liability, included in current portion of warranties | 29.8 | 33.8 | 42.3 |
Long-term liability, included in other liabilities | $21.80 | $21.40 | $10.30 |
Income_Taxes_Income_Before_Inc
Income Taxes (Income Before Income Taxes and Applicable Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income before income taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $94.40 | $77.20 | $72.40 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 546.5 | 258.9 | 332.5 |
Income before income taxes | 370.8 | 90.5 | 95.5 | 84.2 | 70.1 | 76.2 | 96.5 | 93.4 | 640.9 | 336.1 | 404.9 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 11.4 | -6.2 | 24.9 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 32.2 | 32.7 | 9.9 |
Current (benefit) / provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 43.6 | 26.5 | 34.8 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 101.7 | 0.1 | -0.4 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -166.3 | -3 | 2.3 |
Deferred (benefit) / provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -64.6 | -2.9 | 1.9 |
Total (benefit)/provision | ($46.80) | $8 | $9.70 | $8.20 | $8 | ($3.30) | $17.60 | $1.40 | ($21) | $23.60 | $36.70 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Actual Income Tax Expense to Statutory Federal Rate) (Details) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 16, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory federal income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax provision at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $224.30 | $117.40 | $141.70 | ' |
Separation related taxes and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2.2 | 1.8 | ' |
Foreign earnings taxed at other than 35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -93.9 | -71.9 | -76.6 | ' |
(Decrease)/increase in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -261.9 | 109.8 | -33.4 | ' |
Unremitted foreign earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.7 | 107.4 | 0 | 0 | ' |
EC fine tax contingency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -116.3 | ' | 0 |
Tax contingency accruals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 8.1 | 18.8 | ' |
Benefit of tax reversals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.4 | -30 | -19.2 | ' |
Equity Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.4 | 5 | 4.2 | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.9 | -0.7 | -0.6 | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.8 | ' | ' |
Total (benefit)/provision | ' | ' | -46.8 | 8 | 9.7 | 8.2 | 8 | -3.3 | 17.6 | 1.4 | ' | -21 | 23.6 | 36.7 | ' |
Effective income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3.30% | 7.10% | ' | ' |
Unremitted foreign earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' |
Change in enacted tax rate | ' | 2.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | ' | ' | ' |
Decrease in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -178.4 | ' | ' | ' |
Valuation allowances | ' | ' | 10.1 | ' | ' | ' | 272 | ' | ' | ' | ' | 10.1 | 272 | ' | ' |
Unrecognized tax benefit associated to European Commission fine | ' | ' | ' | ' | ' | ' | 116.3 | ' | ' | ' | ' | ' | ' | ' | 116.3 |
Valuation Allowances and Reserves, Deductions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.4 | ' |
Repatriation of foreign earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299 | ' | ' | ' | ' |
European Commission fine reduction plus interest | 209.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax holiday and incentive tax credits, aggregate dollar amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.80 | $6.50 | $4.10 | ' |
Income tax holiday and incentive tax credits, tax benefits per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | $0.10 | $0.06 | ' |
Income_Taxes_Gross_Deferred_Ta
Income Taxes (Gross Deferred Tax Liabilities and Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2010 |
Deferred tax liabilities: | ' | ' | ' |
Basis difference in minority interest | $11.40 | $11.90 | ' |
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 23.3 | 21 | ' |
Unremitted foreign earnings | 0 | 107.8 | ' |
Intangibles | 3.6 | 3.4 | ' |
Other | 0 | 0 | ' |
Deferred tax liabilities | 38.3 | 144.1 | ' |
Deferred tax assets: | ' | ' | ' |
Foreign net operating losses and tax credits | 293 | 195.7 | ' |
Post-retirement and other employee benefits | 45.4 | 43.2 | ' |
Intangibles | 32.7 | 35.7 | ' |
Inventory | 0.6 | 0.8 | ' |
Warranties | 2.5 | 1.4 | ' |
Other | 11.6 | 16.5 | ' |
Deferred tax assets | 385.8 | 293.3 | ' |
Change in valuation allowance | ' | 178.4 | ' |
Valuation allowances | -272 | -10.1 | ' |
Net deferred tax assets | 75.5 | 139.1 | ' |
Unrecognized tax benefit associated to European Commission fine | 116.3 | ' | 116.3 |
Net operating loss carry forwards (NOLs) | ' | 578 | ' |
Net operating loss carry forwards (NOLs) with unlimited life | ' | 537.7 | ' |
Operating loss carryforwards, remaining life maximum | ' | '7.0 | ' |
Deferred Tax Assets Operating Loss Carryforwards Not Subject To Expiration [Member] | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Net operating loss carry forwards (NOLs) with unlimited life, valuation allowance | ' | 10.1 | ' |
Belgium | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Net operating loss carry forwards (NOLs) with unlimited life | ' | $31.20 | ' |
Income_Taxes_Reconciliation_of1
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | ' | ' |
Additions for tax positions related to current year | ' | $0 | $0 | $19.70 | ' |
Additions for tax positions related to prior years | ' | 1.2 | 7.5 | 0 | ' |
Reductions for tax positions related to current year | ' | 0 | -172.4 | -12.9 | ' |
Cash settlements | ' | -2 | -1.5 | -10.6 | ' |
Expirations of statute of limitations | ' | -2 | -2.6 | -5.2 | ' |
Expirations of statute of limitations | ' | -4 | ' | ' | ' |
Foreign exchange | ' | 0.2 | 1.3 | 10.3 | ' |
Unrecognized tax benefits, Ending Balance | 41.9 | 39.3 | 41.9 | 209.6 | 208.3 |
Unrecognized tax benefits excluding European Commission fine | ' | 45.3 | ' | ' | ' |
Interest related to unrecognized tax benefits | ' | 0.3 | 1.1 | 0.8 | ' |
Accrued interest | 5.7 | 6 | 5.7 | 4.6 | ' |
Settlement of foreign tax audit, deduction accepted | 342.3 | ' | ' | ' | ' |
Unrecognized tax benefit associated to European Commission fine | 116.3 | ' | ' | ' | 116.3 |
Unrecognized tax benefit, removed from disclosure | ' | ' | 29 | ' | ' |
Unrecognized tax benefits, closure of foreign tax audits and expiration of statutes of limitation reversals | ' | ' | ' | 28.7 | ' |
Unrecognized tax benefits that would have an impact | 41.9 | 39.3 | 41.9 | 209.6 | ' |
Unrecognized tax benefits, projected reductions resulting from lapse of applicable statute of limitations or resolutions | ' | 2.1 | ' | ' | ' |
Unremitted foreign earnings | ' | 300 | ' | ' | ' |
Unremitted earnings permanently reinvested outside the U.S. | ' | $840 | ' | ' | ' |
Tax_and_Indemnification_Liabil1
Tax and Indemnification Liabilities Transferred from Trane to WABCO (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Income Tax Examination [Line Items] | ' | ' |
Tax indemnification liability to former affiliate | $18.80 | $9.20 |
Indemnification liabilities reversed | 8.8 | ' |
Estimated total amount of the contingency | ' | 42.1 |
Trane Inc [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Tax obligations due directly to authorities on behalf of former affiliate | ' | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Number of equity method investments | 3 | ' | ' |
Investments in and advances to unconsolidated joint ventures | $19.90 | $20.50 | ' |
Equity Method Investee [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Dividends from unconsolidated joint ventures | 18.3 | 15.2 | 14.4 |
Meritor WABCO [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 50.00% | ' | ' |
Investments in and advances to unconsolidated joint ventures | 15 | ' | ' |
WABCO Sales to | 176 | 180.7 | 174 |
WABCO Purchases from | 0 | 0 | 0.2 |
WABCO Receivables from | 28.3 | 24.8 | ' |
WABCO Payables to | 0 | 0 | ' |
WABCO SA [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 49.00% | ' | ' |
Investments in and advances to unconsolidated joint ventures | 4 | ' | ' |
WABCO Sales to | 5.7 | 6.7 | 7.6 |
WABCO Purchases from | 0 | 0 | 0 |
WABCO Receivables from | 1.1 | 2.1 | ' |
WABCO Payables to | 0 | 0 | ' |
WABCOWURTH [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 50.00% | ' | ' |
Investments in and advances to unconsolidated joint ventures | 0.9 | ' | ' |
WABCO Sales to | 0.2 | 0.2 | 0.2 |
WABCO Purchases from | 0.3 | 0.2 | 0 |
WABCO Receivables from | 0.2 | 0.1 | ' |
WABCO Payables to | 0.6 | 0.6 | ' |
Sanwa-Seiki [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Consolidated joint venture, ownership interest | 90.00% | ' | ' |
WABCO Sales to | 0 | 0.2 | 0.2 |
WABCO Purchases from | 33.7 | 42.9 | 39.3 |
Cummins [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Consolidated joint venture, ownership interest | 70.00% | ' | ' |
WABCO Sales to | 72.9 | 75.8 | 68.5 |
WABCO Purchases from | 0 | 0 | 0 |
FUWA [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Consolidated joint venture, ownership interest | 70.00% | ' | ' |
WABCO Sales to | 3 | 1 | 4.1 |
WABCO Purchases from | $0 | $0 | $0 |
Mingshui Automotive Fitting Factory (MAFF) [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Consolidated joint venture, ownership interest | 70.00% | ' | ' |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | $2,720.50 | $2,477.40 | $2,794.10 | |||
Long-lived Assets | 889.4 | [1] | 842.4 | [1] | 797.1 | [1] |
United States | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 296.2 | [2] | 274.5 | [2] | 246.2 | [2] |
Long-lived Assets | 20.2 | [1] | 14.1 | [1] | 11.9 | [1] |
Europe [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 1,666.30 | [2] | 1,496.70 | [2] | 1,737.50 | [2] |
Long-lived Assets | 655.7 | [1] | 607.8 | [1] | 576.2 | [1] |
Germany | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 731.3 | [2] | 657.6 | [2] | 759 | [2] |
Long-lived Assets | 323.7 | [1] | 303.2 | [1] | 295.6 | [1] |
France | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 99.5 | [2] | 89 | [2] | 111.9 | [2] |
Sweden | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 215.4 | [2] | 201.7 | [2] | 238.2 | [2] |
Poland | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Long-lived Assets | 110.8 | [1] | 93.7 | [1] | 79.5 | [1] |
Other Countries [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 758 | [2] | 706.2 | [2] | 810.4 | [2] |
Long-lived Assets | 213.5 | [1] | 220.5 | [1] | 209 | [1] |
Japan | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 100.5 | [2] | 116.1 | [2] | 104.6 | [2] |
China | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 192.6 | [2] | 152.3 | [2] | 162.1 | [2] |
Brazil | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 180.9 | [2] | 135.3 | [2] | 195.3 | [2] |
India | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 106.1 | [2] | 147 | [2] | 181.7 | [2] |
Long-lived Assets | 97.7 | [1] | 104.1 | [1] | 98.7 | [1] |
OEM [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | 2,043.50 | 1,847.40 | 2,150.40 | |||
Aftermarket [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales | $677 | $630 | $643.70 | |||
Geographic Concentration Risk [Member] | Sales [Member] | Asia [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 18.00% | 20.00% | 19.00% | |||
Geographic Concentration Risk [Member] | Sales [Member] | Europe [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 61.00% | 60.00% | 62.00% | |||
Daimler [Member] | Customer Concentration Risk [Member] | Sales [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 12.00% | 11.00% | 12.00% | |||
Volvo [Member] | Customer Concentration Risk [Member] | Sales [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 10.00% | 10.00% | 11.00% | |||
[1] | Amounts are presented on a net basis | |||||
[2] | Sales to external customers are classified by country of destination. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Other non-operating expense, net [Member] | Other non-operating expense, net [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | $85.30 | € 61.80 | $57.40 | € 43.40 |
Average duration of derivatives | ' | ' | '1 month | '1 month | ' | ' |
Fair value of derivative | ' | ' | 0.1 | ' | ' | ' |
Derivative instruments, net gain | ($2.20) | $8.70 | ' | ' | ' | ' |
Business_Combinations_Details
Business Combinations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 13, 2012 |
In Millions, unless otherwise specified | Ephicas [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Identified intangible assets | ' | ' | ' | $2.10 |
Goodwill | $381.20 | $371.70 | $363.90 | $3.60 |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Aug. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 29, 2013 |
Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for acquisition gross | $4.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% |
Net income attributable to Company | ' | 416.3 | 80 | 83.2 | 73.7 | 59.7 | 77.5 | 75.6 | 89.2 | 653.2 | 302 | 357 | ' |
Increase in paid-in capital for acquisition of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 0 | ' | ' |
Net transfers from noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 0 | ' | ' |
Change from net income attributable to Company and transfers from noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | $654.30 | $302 | ' | ' |
Quarterly_Data_Unaudited_Detai
Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $720.50 | $677.10 | $678.20 | $644.70 | $596.50 | $588.30 | $635.20 | $657.30 | $2,720.50 | $2,477.40 | $2,794.10 |
Cost of sales | 515.2 | 477.6 | 471.6 | 447 | 421.3 | 413.1 | 441.5 | 461.2 | 1,911.40 | 1,737.20 | 1,986.10 |
Gross Profit | 205.3 | 199.5 | 206.6 | 197.7 | 175.2 | 175.2 | 193.7 | 196.1 | 809.1 | 740.2 | 808 |
Income before income taxes | 370.8 | 90.5 | 95.5 | 84.2 | 70.1 | 76.2 | 96.5 | 93.4 | 640.9 | 336.1 | 404.9 |
Income tax expense / (benefit) | -46.8 | 8 | 9.7 | 8.2 | 8 | -3.3 | 17.6 | 1.4 | -21 | 23.6 | 36.7 |
Net income attributable to Company | 416.3 | 80 | 83.2 | 73.7 | 59.7 | 77.5 | 75.6 | 89.2 | 653.2 | 302 | 357 |
Net income per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $6.73 | $1.28 | $1.33 | $1.17 | $0.95 | $1.22 | $1.18 | $1.38 | $10.46 | $4.73 | $5.35 |
Diluted (in dollars per share) | $6.65 | $1.26 | $1.31 | $1.15 | $0.93 | $1.19 | $1.15 | $1.34 | $10.31 | $4.62 | $5.19 |
Unremitted foreign earnings | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 178.4 | ' | ' |
Valuation allowances | ($10.10) | ' | ' | ' | ($272) | ' | ' | ' | ($10.10) | ($272) | ' |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reserve deducted from assets: | ' | ' | ' | |||
Deductions | ' | ' | ($33,400) | |||
Allowance for doubtful accounts receivable | ' | ' | ' | |||
Reserve deducted from assets: | ' | ' | ' | |||
Balance Beginning of Period | 3,581 | 3,425 | 7,706 | |||
Adjustments to Amounts Provided in Prior Years | 1,346 | 418 | -424 | |||
Deductions | -66 | [1] | -314 | [1] | -3,840 | [1] |
Foreign Currency Translation Effects | 138 | 52 | -17 | |||
Balance End of Period | $4,999 | $3,581 | $3,425 | |||
[1] | Accounts charged off |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 12, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Contractual purchase price | $111.10 |
Cash acquired from acquisition | 15.3 |
Payments for business combination | $95.80 |
Percentage of voting interest held | 96.84% |