Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 06, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WABCO Holdings Inc. | ||
Entity Central Index Key | 1390844 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Trading Symbol | WBC | ||
Entity Common Stock, Shares Outstanding | 58,459,597 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $6.40 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Sales | $2,851 | $2,720.50 | $2,477.40 |
Cost of sales | 1,979.30 | 1,911.40 | 1,737.20 |
Gross Profit | 871.7 | 809.1 | 740.2 |
Costs and expenses: | |||
Selling and administrative expenses | 386.8 | 352.8 | 308.2 |
Product engineering expenses | 145 | 119.4 | 104.3 |
Other operating expense, net | -8.9 | -5 | -3.2 |
Operating income / (loss) | 331 | 331.9 | 324.5 |
European Commission fine reimbursement | 0 | 279.5 | 0 |
Equity income of unconsolidated joint ventures, net | 23.8 | 17.7 | 18.1 |
Other non-operating income/(expense), net | 1.8 | 6.9 | -5 |
Interest income/(expense), net | 0.2 | 4.9 | -1.5 |
Income before income taxes | 356.8 | 640.9 | 336.1 |
Income tax expense/(benefit) | 55.6 | -21 | 23.6 |
Net income including noncontrolling interests | 301.2 | 661.9 | 312.5 |
Less: net income attributable to noncontrolling interests | 9.7 | 8.7 | 10.5 |
Net income attributable to Company | $291.50 | $653.20 | $302 |
Net income attributable to Company per common share | |||
Basic (in dollars per share) | $4.87 | $10.46 | $4.73 |
Diluted (in dollars per share) | $4.81 | $10.31 | $4.62 |
Cash dividends per share of common stock (in dollars per share) | $0 | $0 | $0 |
Weighted average common shares outstanding | |||
Basic (in shares) | 59,907,763 | 62,474,493 | 63,906,992 |
Diluted (in shares) | 60,546,454 | 63,382,564 | 65,323,389 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $301.20 | $661.90 | $312.50 |
Foreign currency translation effects | -144.9 | -4.1 | -0.8 |
Unrealized losses on benefit plans, net of tax | -135.9 | -1.8 | -56.6 |
Unrealized gains on investment | 0.2 | 0 | 0 |
Comprehensive income | 20.6 | 656 | 255.1 |
Less: Comprehensive income attributable to noncontrolling interests | 8.4 | 3.6 | 9.1 |
Comprehensive income attributable to Company | $12.20 | $652.40 | $246 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $411.70 | $472.80 |
Short-term investments | 0 | 55.2 |
Accounts receivable, less allowance for doubtful accounts of $4.1 in 2014 and $5.0 in 2013 | 445.6 | 346.2 |
Inventories | 189.6 | 207.2 |
Taxes receivable on income | 4.1 | 0 |
Future income tax benefits | 20.8 | 10.4 |
Restricted cash | 0 | 34.6 |
Guaranteed notes receivable | 52.8 | 51.4 |
Other current assets | 57.9 | 56.8 |
Total current assets | 1,182.50 | 1,234.60 |
Property, plant and equipment, less accumulated depreciation | 424.9 | 422.5 |
Goodwill | 421 | 381.2 |
Long-term future income tax benefits | 268.7 | 248.9 |
Investments in unconsolidated joint ventures | 19.6 | 19.9 |
Intangible assets, net | 78.4 | 44.3 |
Other assets | 37.6 | 41.4 |
TOTAL ASSETS | 2,432.70 | 2,392.80 |
Current liabilities: | ||
Loans payable to banks | 8.1 | 40.1 |
Accounts payable | 121.2 | 149.3 |
Accrued payroll | 103.9 | 118.8 |
Current portion of warranties | 25.8 | 29.8 |
Taxes payable | 0.1 | 3.8 |
Accrued expenses | 58.5 | 58.7 |
Other accrued liabilities | 100.1 | 84.9 |
Total current liabilities | 417.7 | 485.4 |
Long-term debt | 307.1 | 47 |
Post-retirement benefits | 595 | 438.6 |
Deferred tax liabilities | 129.2 | 120.1 |
Long-term income tax liabilities | 48.5 | 45.3 |
Other liabilities | 46.2 | 59 |
Total liabilities | 1,543.70 | 1,195.40 |
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: 77,961,040 in 2014; 77,471,174 in 2013; and shares outstanding: 58,425,873 in 2014; 61,359,025 in 2013 | 0.8 | 0.8 |
Capital surplus | 828.3 | 800.2 |
Treasury stock, at cost: 19,535,167 shares in 2014; 16,112,149 shares in 2013 | -1,248.10 | -896.6 |
Retained earnings | 1,663.30 | 1,371.80 |
Accumulated other comprehensive income: | ||
Foreign currency translation adjustments | -158 | -14.4 |
Unrealized losses on benefit plans, net of tax | -244.9 | -109 |
Unrealized gains on investments | 0.2 | 0 |
Total shareholders' equity | 841.6 | 1,152.80 |
Noncontrolling interests | 47.4 | 44.6 |
Total equity | 889 | 1,197.40 |
TOTAL LIABILITIES AND EQUITY | $2,432.70 | $2,392.80 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Short-term investments | $0 | $55.20 |
Accounts receivable, allowance for doubtful accounts | $4.10 | $5 |
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 | 77,961,040 | 77,471,174 |
Common stock, shares outstanding | 58,425,873 | 61,359,025 |
Treasury stock, shares | 19,535,167 | 16,112,149 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income including noncontrolling interests | $301.20 | $661.90 | $312.50 |
Adjustments to reconcile net income to net cash provided/(used) by operating activities: | |||
Depreciation | 81.7 | 74.6 | 65.6 |
Amortization of intangibles | 19.9 | 10.6 | 11.3 |
Equity in earnings of unconsolidated joint ventures, net of dividends received | -0.2 | 0.6 | -3 |
Non-cash stock compensation | 15.5 | 13.6 | 14.3 |
Deferred income tax benefit | 4.5 | -64.6 | -2.9 |
Loss/(gain) on sale or disposal of property, plant and equipment | 1.4 | -0.2 | 0.3 |
Changes in assets and liabilities: | |||
Accounts receivable, net | -123.9 | -44.3 | -6.2 |
Inventories | -2.5 | -16 | 5.7 |
Accounts payable | -18.3 | 33.1 | -23 |
Other accrued liabilities and taxes | 16 | 38.5 | -37.9 |
Post-retirement benefits | -7.6 | -3.4 | -3.5 |
Other current and long-term assets | 27.5 | -28.8 | 23 |
Other long-term liabilities | -0.8 | -9.8 | 2.1 |
Net cash provided by operating activities | 314.4 | 665.8 | 358.3 |
Investing activities: | |||
Purchases of property, plant and equipment | -123.8 | -108.1 | -91.7 |
Investments in capitalized software | -12.1 | -13.4 | -8.8 |
Sales/(purchases) of short-term investments | 50.7 | -55.2 | 0 |
Acquisitions, net | -125.9 | 0 | -5.1 |
Net cash used in investing activities | -211.1 | -176.7 | -105.6 |
Financing activities: | |||
Net borrowings/(repayments) of short-term revolving credit facilities | 0 | 1.1 | -11.6 |
Borrowings of long-term revolving credit facilities | 259 | 0 | 0 |
Net (repayments)/borrowings of short-term debt | -32.6 | 9.2 | 4.2 |
Purchases of treasury stock | -351.5 | -243.2 | -198.3 |
Purchase of subsidiary shares from noncontrolling interest | -5.7 | -4.6 | 0 |
Dividends to noncontrolling interest holders | -5.6 | -5.6 | -5.5 |
Proceeds from exercise of stock options | 15 | 49.7 | 28.6 |
Net cash used in financing activities | -121.4 | -193.4 | -182.6 |
Effect of exchange rate changes on cash and cash equivalents | -43 | 2.1 | 2.5 |
Net (decrease)/increase in cash and cash equivalents | -61.1 | 297.8 | 72.6 |
Cash and cash equivalents at beginning of period | 472.8 | 175 | 102.4 |
Cash and cash equivalents at end of period | 411.7 | 472.8 | 175 |
Cash paid during the period for: | |||
Interest | 2 | 0.3 | 1.1 |
Income taxes | 48.4 | 45.2 | 30.3 |
Non cash items for the period: | |||
Treasury stock purchase accrual | 0 | 0 | 2.5 |
Unrealized gains on investment | $0.20 | $0 | $0 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Foreign currency translation adjustments: | Pension and Post-retirement Plans: | Unrealized gains on investments: | Non Controlling Interests |
In Millions, unless otherwise specified | |||||||||
Beginning Balance at Dec. 31, 2011 | $0.70 | $693.40 | ($456.80) | $416.60 | ($16.10) | ($50.60) | $0 | $48.60 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 312.5 | 302 | 10.5 | ||||||
Foreign currency translation | -0.8 | 0.7 | -1.4 | ||||||
Other Comprehensive Income (Loss), Net of Tax | -56.6 | ||||||||
Treasury stock purchased | -199 | ||||||||
Stock options exercised | 28.5 | ||||||||
Stock-based compensation | 13.6 | ||||||||
Dividends paid | -5.4 | ||||||||
Ending Balance at Dec. 31, 2012 | 0.7 | 735.5 | -655.8 | 718.6 | -15.4 | -107.2 | 0 | 52.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 661.9 | 653.2 | 8.7 | ||||||
Foreign currency translation | -4.1 | 1 | -5.1 | ||||||
Other Comprehensive Income (Loss), Net of Tax | -1.8 | ||||||||
Treasury stock purchased | -240.8 | ||||||||
Stock options exercised | 0.1 | 49.7 | |||||||
Stock-based compensation | 13.9 | ||||||||
Change in noncontrolling interest | 1.1 | -5.7 | |||||||
Dividends paid | -5.6 | ||||||||
Ending Balance at Dec. 31, 2013 | 1,197.40 | 0.8 | 800.2 | -896.6 | 1,371.80 | -14.4 | -109 | 0 | 44.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 301.2 | 291.5 | 9.7 | ||||||
Foreign currency translation | -144.9 | -143.6 | -1.3 | ||||||
Other Comprehensive Income (Loss), Net of Tax | -135.9 | 0.2 | |||||||
Treasury stock purchased | -351.5 | ||||||||
Stock options exercised | 14.9 | ||||||||
Stock-based compensation | 13.2 | ||||||||
Change in noncontrolling interest | 0 | 0 | |||||||
Dividends paid | -5.6 | ||||||||
Ending Balance at Dec. 31, 2014 | $889 | $0.80 | $828.30 | ($1,248.10) | $1,663.30 | ($158) | ($244.90) | $0.20 | $47.40 |
Description_of_Company
Description of Company | 12 Months Ended |
Dec. 31, 2014 | |
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 automation and air management control systems primarily for commercial vehicles. WABCO’s largest selling products are pneumatic ABS, EBS, ESC, 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, buses and trailers. We supply advanced electronic suspension controls and vacuum pumps to the passenger car and SUV markets in Europe, North America and Asia. In addition, we supply commercial vehicle aftermarket distributors and service partners as well as fleet operators with replacement parts, fleet management solutions, diagnostic tools, training and other expert services. WABCO sells its products to four groups of customers around the world: truck and bus OEMs, trailer OEMs, commercial vehicle aftermarket distributors of replacement parts and services, and automotive OEMs. We also provide remanufacturing services globally. | |
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 the cash flow activities for the short-term revolving credit facility 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, 2014 | |||||||
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 sheets. 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 statements 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 when (i) title and risk of loss have transferred to the customer, (ii) persuasive evidence of an arrangement exists with the customer, (iii) the sales price is fixed and determinable, and (iv) the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. | |||||||
Certain of the Company's product offerings contain multiple deliverables including hardware with embedded firmware, back office hosting services, unspecified software upgrades and enhancements related to these products through service contracts, which are considered separate units of accounting. For products under these arrangements, the software and non-software components function together to deliver the tangible product’s essential functionality. The Company allocates revenue to each element in these multiple-element arrangements based upon the relative selling prices of each deliverable. | |||||||
In evaluating the revenue recognition for the Company's multiple-element arrangements, the Company determined that in certain cases, vendor specific objective evidence (VSOE) of selling price could not be established for some or all deliverables in the arrangement as the Company infrequently sold each element on a standalone basis, did not price products within a narrow range, or had a limited sales history. When VSOE cannot be established for an element, the Company attempts to establish the selling price of the element using third-party evidence (TPE) based on competitor prices for similar deliverables sold separately. However, the Company is typically not able to establish TPE as we are unable to reliably determine the standalone selling prices of similar competitor products. | |||||||
When neither VSOE nor TPE can be established for an element, the Company uses its best estimate of selling price (BESP) in the allocation of arrangement consideration. BESP represents the price at which the Company would transact a sale if the element were sold on a standalone basis. The Company determines BESP for an element by considering multiple factors including, but not limited to, the Company's go-to-market strategy, pricing practices, internal costs, gross margin, market conditions and geographies. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for that element. | |||||||
The Company 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, the Company recorded $43.0 million, $42.4 million and $36.6 million in 2014, 2013 and 2012, 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 operations. | |||||||
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. | |||||||
Investments - Investments may consist of mutual funds or deposit funds 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 Company classifies its investments as either short-term or long-term based on the nature of the investments, its availability of use in current operations and the Company's holding intention. 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 statements of operations. As of December 31, 2014, the Company had $3.1 million of long-term investments included in "other assets" on the consolidated balance sheets. | |||||||
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 sold receivables to the bank which qualified as financial assets since they were 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 resided with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances was 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 market. 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 2014. | |||||||
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 0.9% in 2014, 0.8% in 2013 and 1.1% in 2012. See Note 15 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 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 13. 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. As of December 31, 2014 and 2013, the carrying amounts of these instruments approximated their fair values. Long-term debt also approximated fair value as of December 31, 2014 and 2013. | |||||||
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 20 for further details on derivative instruments. | |||||||
Research, Development and Engineering Expenses - Research and development costs are expensed as incurred. WABCO expended approximately $145.0 million in 2014, $119.4 million in 2013 and $104.3 million in 2012 for research activities, product development and for product engineering. | |||||||
Business Combinations - We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquiree generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquiree is recorded as goodwill. When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. | |||||||
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 calculate 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) and deferred stock units (DSUs) after assuming that the Company would use the proceeds from the exercises to repurchase stock. The weighted average incremental shares also includes the net amount of shares issuable for performance stock units (PSUs) at the end of the reporting period, if any at all, based on the number of shares issuable if the end of the period were the end of the vesting period. | |||||||
Anti-dilutive shares, if applicable, are excluded and represent those options, RSUs, PSUs and DSUs whose assumed proceeds were greater than the average price of the Company's common stock. | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | 2012 | |||||
Weighted average incremental shares included | 638,691 | 908,071 | 1,416,397 | ||||
Shares excluded due to anti-dilutive effect | — | 3,000 | 480,756 | ||||
Comprehensive Income/(Loss) - Comprehensive income/(loss) consists of net income, foreign currency translation adjustments (including that on intercompany transactions of a long-term investment nature), pension liability adjustments, unrecognized gains or losses on post-retirement benefit plans and unrecognized gains or losses on investments, and is presented in the accompanying consolidated statements of shareholders' equity and comprehensive income. | |||||||
Stock-Based Compensation - WABCO measures and recognizes in its consolidated statements of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs, DSUs 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. | |||||||
Outstanding WABCO options held by non-WABCO employees or directors that arose as a result of the Distribution 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, 2014 | |
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 August 2014, the FASB issued Accounting Standards Update 2014-15 (ASU 2014-15) Presentation of Financial Statements - Going Concern, which provide guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and annual periods ending after December 15, 2016. The Company does not expect any material impact from adoption of this guidance on the Company's consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. | |
In July 2013, the FASB issued 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. The Company adopted the provisions of ASU 2013-11 as of March 31, 2014, which did not affect the Company's 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. |
Other_Comprehensive_Income_Not
Other Comprehensive Income (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||||
The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amount in millions) | 2014 | 2013 | 2012 | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Balance at beginning of period | (5.5 | ) | (9.5 | ) | (12.9 | ) | ||||||
Adjustment for the period | (142.6 | ) | 4 | 3.4 | ||||||||
Balance at end of period | (148.1 | ) | (5.5 | ) | (9.5 | ) | ||||||
Losses on intra-entity transactions (1): | ||||||||||||
Balance at beginning of period | (8.9 | ) | (5.9 | ) | (3.2 | ) | ||||||
Adjustment for the period | (1.0 | ) | (3.0 | ) | (2.7 | ) | ||||||
Balance at end of period | (9.9 | ) | (8.9 | ) | (5.9 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Balance at beginning of period | — | — | — | |||||||||
Adjustment for the period | 0.4 | — | — | |||||||||
Amounts reclassified to earnings, net | (0.2 | ) | — | — | ||||||||
Balance at end of period | 0.2 | — | — | |||||||||
Pension and Post-retirement Plans: | ||||||||||||
Balance at beginning of period | (109.0 | ) | (107.2 | ) | (50.6 | ) | ||||||
Other comprehensive income before reclassifications | (140.1 | ) | (6.6 | ) | (58.2 | ) | ||||||
Amounts reclassified to earnings, net (2) | 4.2 | 4.8 | 1.6 | |||||||||
Balance at end of period | $ | (244.9 | ) | $ | (109.0 | ) | $ | (107.2 | ) | |||
Accumulated other comprehensive loss at end of period | $ | (402.7 | ) | $ | (123.4 | ) | $ | (122.6 | ) | |||
(1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. | ||||||||||||
(2) This accumulated other comprehensive income component, net of taxes of $1.6 million, $2.0 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. | ||||||||||||
Capital Stock | ||||||||||||
The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2014, 2013 and 2012. | ||||||||||||
Number of Shares of Common Stock | ||||||||||||
Total Shares | Treasury Shares | Net Shares | ||||||||||
Outstanding | ||||||||||||
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 | 194,247 | — | 194,247 | |||||||||
Shares issued for DSUs | 5,041 | — | 5,041 | |||||||||
Shares issued for stock awards | 800 | — | 800 | |||||||||
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 | 106,768 | — | 106,768 | |||||||||
Shares issued for DSUs | 7,350 | — | 7,350 | |||||||||
Shares issued for stock awards | 900 | — | 900 | |||||||||
Shares purchased for treasury | — | (3,103,994 | ) | (3,103,994 | ) | |||||||
Balance, December 31, 2013 | 77,471,174 | (16,112,149 | ) | 61,359,025 | ||||||||
Shares issued upon exercise of stock options | 394,899 | — | 394,899 | |||||||||
Shares issued upon vesting of RSUs | 91,235 | — | 91,235 | |||||||||
Shares issued for DSUs | 2,932 | — | 2,932 | |||||||||
Shares issued for stock awards | 800 | — | 800 | |||||||||
Shares purchased for treasury | — | (3,423,018 | ) | (3,423,018 | ) | |||||||
Balance, December 31, 2014 | 77,961,040 | (19,535,167 | ) | 58,425,873 | ||||||||
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, 2014, 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. A repurchase program for $200 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 expired on December 31, 2014. | ||||||||||||
On December 5, 2014, the Board of Directors approved a repurchase program for an additional $500 million of common shares. This authorization expires on December 31, 2016. | ||||||||||||
As of December 31, 2014, the Company had repurchased a total of $971.8 million of shares under these four repurchase programs, leaving an unexpended balance of $500.0 million available to repurchase shares in the future. Between January 1, 2015 and February 19, 2015, the Company repurchased an additional 311,046 shares for a total of $30.8 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. |
Streamlining_Expenses
Streamlining Expenses | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 may periodically enter into other streamlining programs as deemed necessary (Other Programs). | |||||||||||||||||
The following is a summary of changes in the Company’s streamlining program liabilities for the year ended December 31, 2014 (amounts in millions). Activity for the period consisted primarily of termination payments and employee-related charges. | |||||||||||||||||
2008 / 2009 Program | |||||||||||||||||
Balance as of December 31, 2013 | $ | 5.9 | |||||||||||||||
Charges during 2014 | — | ||||||||||||||||
Payments during 2014 | (2.6 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 3.3 | |||||||||||||||
Other Programs | |||||||||||||||||
Balance as of December 31, 2013 | $ | 19 | |||||||||||||||
Charges during 2014 | 27 | ||||||||||||||||
Payments during 2014 | (15.4 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 30.6 | |||||||||||||||
Total foreign exchange translation effects | $ | (1.9 | ) | ||||||||||||||
Total streamlining liability as of December 31, 2014 | $ | 32 | |||||||||||||||
A balance of $12.8 million is included in other liabilities (non-current) and $19.2 million is included in other accrued liabilities (current) as of December 31, 2014. | |||||||||||||||||
The following is a summary of current and cumulative streamlining costs: | |||||||||||||||||
Charges for Year | Cumulative Charges as | ||||||||||||||||
Ended December 31, 2014 | of December 31, 2014 | ||||||||||||||||
(Amounts in millions) | 2008/2009 | Other | 2008/2009 | Other | |||||||||||||
Program | Programs | Program | Programs | ||||||||||||||
Employee-related charges – cost of sales | $ | — | $ | 9.9 | $ | 45.7 | $ | 26.5 | |||||||||
Employee-related charges – selling and administrative | — | 16 | 45.8 | 36 | |||||||||||||
Total employee related charges | — | 25.9 | 91.5 | 62.5 | |||||||||||||
Other non-employee related charges | — | 1.1 | — | 2.9 | |||||||||||||
Total program costs | $ | — | $ | 27 | $ | 91.5 | $ | 65.4 | |||||||||
Capital_Stock
Capital Stock | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
Capital Stock | Other Comprehensive Income | |||||||||||
The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amount in millions) | 2014 | 2013 | 2012 | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Balance at beginning of period | (5.5 | ) | (9.5 | ) | (12.9 | ) | ||||||
Adjustment for the period | (142.6 | ) | 4 | 3.4 | ||||||||
Balance at end of period | (148.1 | ) | (5.5 | ) | (9.5 | ) | ||||||
Losses on intra-entity transactions (1): | ||||||||||||
Balance at beginning of period | (8.9 | ) | (5.9 | ) | (3.2 | ) | ||||||
Adjustment for the period | (1.0 | ) | (3.0 | ) | (2.7 | ) | ||||||
Balance at end of period | (9.9 | ) | (8.9 | ) | (5.9 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Balance at beginning of period | — | — | — | |||||||||
Adjustment for the period | 0.4 | — | — | |||||||||
Amounts reclassified to earnings, net | (0.2 | ) | — | — | ||||||||
Balance at end of period | 0.2 | — | — | |||||||||
Pension and Post-retirement Plans: | ||||||||||||
Balance at beginning of period | (109.0 | ) | (107.2 | ) | (50.6 | ) | ||||||
Other comprehensive income before reclassifications | (140.1 | ) | (6.6 | ) | (58.2 | ) | ||||||
Amounts reclassified to earnings, net (2) | 4.2 | 4.8 | 1.6 | |||||||||
Balance at end of period | $ | (244.9 | ) | $ | (109.0 | ) | $ | (107.2 | ) | |||
Accumulated other comprehensive loss at end of period | $ | (402.7 | ) | $ | (123.4 | ) | $ | (122.6 | ) | |||
(1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. | ||||||||||||
(2) This accumulated other comprehensive income component, net of taxes of $1.6 million, $2.0 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. | ||||||||||||
Capital Stock | ||||||||||||
The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2014, 2013 and 2012. | ||||||||||||
Number of Shares of Common Stock | ||||||||||||
Total Shares | Treasury Shares | Net Shares | ||||||||||
Outstanding | ||||||||||||
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 | 194,247 | — | 194,247 | |||||||||
Shares issued for DSUs | 5,041 | — | 5,041 | |||||||||
Shares issued for stock awards | 800 | — | 800 | |||||||||
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 | 106,768 | — | 106,768 | |||||||||
Shares issued for DSUs | 7,350 | — | 7,350 | |||||||||
Shares issued for stock awards | 900 | — | 900 | |||||||||
Shares purchased for treasury | — | (3,103,994 | ) | (3,103,994 | ) | |||||||
Balance, December 31, 2013 | 77,471,174 | (16,112,149 | ) | 61,359,025 | ||||||||
Shares issued upon exercise of stock options | 394,899 | — | 394,899 | |||||||||
Shares issued upon vesting of RSUs | 91,235 | — | 91,235 | |||||||||
Shares issued for DSUs | 2,932 | — | 2,932 | |||||||||
Shares issued for stock awards | 800 | — | 800 | |||||||||
Shares purchased for treasury | — | (3,423,018 | ) | (3,423,018 | ) | |||||||
Balance, December 31, 2014 | 77,961,040 | (19,535,167 | ) | 58,425,873 | ||||||||
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, 2014, 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. A repurchase program for $200 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 expired on December 31, 2014. | ||||||||||||
On December 5, 2014, the Board of Directors approved a repurchase program for an additional $500 million of common shares. This authorization expires on December 31, 2016. | ||||||||||||
As of December 31, 2014, the Company had repurchased a total of $971.8 million of shares under these four repurchase programs, leaving an unexpended balance of $500.0 million available to repurchase shares in the future. Between January 1, 2015 and February 19, 2015, the Company repurchased an additional 311,046 shares for a total of $30.8 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, 2014 | |||||||||||||||||
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 2014, 2013 and 2012. | |||||||||||||||||
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), RSUs, PSUs, DSUs, 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. | |||||||||||||||||
As of December 31, 2014, a total of 1,214,604 stock options, RSUs, PSUs and DSUs were outstanding and there were 3,599,569 shares remaining available for grant under the 2009 Restated Omnibus Plan. | |||||||||||||||||
Commencing in 2013, the Company 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, 2014, the Company believes it is probable that the performance conditions will be met and has accrued for the compensation expense accordingly. | |||||||||||||||||
The DSUs are granted to our non-management directors as part of the equity portion of their annual retainer and are fully vested at grant. Each DSU provides the right to the issuance of a share of our common stock, within ten days after the earlier of the director's death or disability, the 13-month anniversary of the grant date or the director's separation from service. Each director may also elect within a month after the grant date to defer the receipt of shares for five or more years. No election can be made to accelerate the issuance of stock from a DSU. | |||||||||||||||||
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, 2014, 2013 and 2012 were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation | $ | 15.5 | $ | 13.6 | $ | 14.3 | |||||||||||
The following tables summarize the stock options, RSUs, PSUs, DSUs and stock awards activity for each of the periods presented: | |||||||||||||||||
Underlying Shares | Weighted - Average Exercise Price | Weighted - Average Grant Date Fair Value | |||||||||||||||
WABCO employees | Trane employees | Total | |||||||||||||||
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 | ||||||||||||
Options Granted | — | — | — | $ | — | $ | — | ||||||||||
Options Exercised | (298,032 | ) | (98,611 | ) | (396,643 | ) | $ | 38.01 | |||||||||
Options Forfeited | (8,036 | ) | (200 | ) | (8,236 | ) | $ | 58.54 | |||||||||
Options Outstanding December 31, 2014 | 580,849 | 226,805 | 807,654 | $ | 42.6 | ||||||||||||
Exercisable at December 31, 2014 | 493,912 | 226,805 | 720,717 | $ | 40.63 | ||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
RSUs Outstanding December 31, 2011 | 476,264 | $ | 38.47 | ||||||||||||||
RSUs Granted | 123,777 | $ | 58.86 | ||||||||||||||
RSUs Vested | (227,139 | ) | $ | 22.09 | |||||||||||||
RSUs Forfeited | (19,937 | ) | $ | 53.63 | |||||||||||||
RSUs Outstanding December 31, 2012 | 352,965 | $ | 55.3 | ||||||||||||||
RSUs Granted | 112,964 | $ | 68.37 | ||||||||||||||
RSUs Vested | (129,755 | ) | $ | 43.7 | |||||||||||||
RSUs Forfeited | (47,707 | ) | $ | 60.86 | |||||||||||||
RSUs Outstanding December 31, 2013 | 288,467 | $ | 64.72 | ||||||||||||||
RSUs Granted | 93,070 | $ | 100.78 | ||||||||||||||
RSUs Vested | (114,485 | ) | $ | 64.39 | |||||||||||||
RSUs Forfeited | (14,584 | ) | $ | 75.08 | |||||||||||||
RSUs Outstanding December 31, 2014 | 252,468 | $ | 77.56 | ||||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
PSUs Outstanding December 31, 2012 | — | $ | — | ||||||||||||||
PSUs Granted | 94,364 | $ | 68.1 | ||||||||||||||
PSUs Forfeited | (9,954 | ) | $ | 68.1 | |||||||||||||
PSUs Outstanding December 31, 2013 | 84,410 | $ | 68.1 | ||||||||||||||
PSUs Granted | 65,508 | $ | 103.41 | ||||||||||||||
PSUs Forfeited | (10,940 | ) | $ | 77.38 | |||||||||||||
PSUs Outstanding December 31, 2014 | 138,978 | $ | 84.01 | ||||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
DSUs Outstanding December 31, 2011 | 8,580 | $ | 57.14 | ||||||||||||||
DSUs Granted | 9,227 | $ | 53.12 | ||||||||||||||
DSUs Issued | (5,041 | ) | $ | 64.51 | |||||||||||||
DSUs Outstanding December 31, 2012 | 12,766 | $ | 51.32 | ||||||||||||||
DSUs Granted | 5,864 | $ | 75.12 | ||||||||||||||
DSUs Issued | (7,350 | ) | $ | 52.39 | |||||||||||||
DSUs Outstanding December 31, 2013 | 11,280 | $ | 63 | ||||||||||||||
DSUs Granted | 7,156 | $ | 107.7 | ||||||||||||||
DSUs Issued | (2,932 | ) | $ | 75.12 | |||||||||||||
DSUs Outstanding December 31, 2014 | 15,504 | $ | 78.11 | ||||||||||||||
Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
Stock Awards granted: | |||||||||||||||||
Year ended December 31, 2012 | 800 | $ | 60.02 | ||||||||||||||
Year ended December 31, 2013 | 900 | $ | 70.53 | ||||||||||||||
Year ended December 31, 2014 | 800 | $ | 96.37 | ||||||||||||||
There were no stock options granted in 2014 and 2013. In 2012, a total of 284,691 options were granted, all of which are exercisable in equal installments over a period of three years. | |||||||||||||||||
The table below shows the vesting schedule of the RSUs granted for each of the periods presented: | |||||||||||||||||
Vesting Schedule | |||||||||||||||||
Equal installments over 3 years | After 2 years | After 3 years | After 4 years | Total | |||||||||||||
RSUs granted in 2012 | 103,581 | 6,454 | 12,746 | 996 | 123,777 | ||||||||||||
RSUs granted in 2013 | 109,254 | — | 3,710 | — | 112,964 | ||||||||||||
RSUs granted in 2014 | 78,966 | 1,934 | 12,170 | — | 93,070 | ||||||||||||
As discussed above, the PSUs granted in each of the years ended December 31, 2014 and 2013 vest, if at all, and at levels depending upon, the achievement of certain three-year cumulative earnings per share goals. The DSUs granted in each of the years ended December 31, 2014, 2013 and 2012 vest immediately upon grant. | |||||||||||||||||
As of December 31, 2014, the total aggregate intrinsic value of stock option awards outstanding was $48.0 million. The total aggregate intrinsic value of options exercisable and options outstanding, less expected forfeitures, as of the same date was $44.3 million and $48.0 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, 2014, multiplied by the number of shares per each option. | |||||||||||||||||
The total intrinsic value of options exercised was $24.9 million, $69.9 million and $49.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. Total fair value of shares vested was $11.8 million, $9.5 million and $14.2 million during the year ended December 31, 2014, 2013 and 2012 respectively. The 493,887 of unvested options, RSUs and PSUs as of December 31, 2014 will result in the recognition of $20.4 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, 2014 was 3.9 years, while that of the vested options was 3.6 years. The tax benefit from stock options exercised during the period was $0.4 million and $1.8 million for the years ended December 31, 2014 and 2013, and was immaterial for the year ended December 31, 2012. | |||||||||||||||||
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, 2014, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Assumption | 2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | N/A | N/A | 0.81 | % | |||||||||||||
Expected volatility | N/A | N/A | 44.48 | % | |||||||||||||
Expected holding period | N/A | N/A | 5 years | ||||||||||||||
Expected dividend yield | N/A | N/A | — | % | |||||||||||||
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, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Operating expense: | ||||||||||||
Bank charges | $ | 2.2 | $ | 2 | $ | 1.5 | ||||||
Miscellaneous taxes | 5.7 | 2.9 | 2.4 | |||||||||
Other expense/(income), net | 1 | 0.1 | (0.7 | ) | ||||||||
$ | 8.9 | $ | 5 | $ | 3.2 | |||||||
Non-operating (income)/expense: | ||||||||||||
Indemnification settlements, net | $ | (4.3 | ) | $ | (8.8 | ) | $ | 3.4 | ||||
Securitization and receivable discount fees | 0.9 | 1 | 1.1 | |||||||||
Foreign exchange (gain)/loss | (0.9 | ) | (2.3 | ) | 0.8 | |||||||
Other expense/(income), net | 2.5 | 3.2 | (0.3 | ) | ||||||||
$ | (1.8 | ) | $ | (6.9 | ) | $ | 5 | |||||
Inventories
Inventories | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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) | 2014 | 2013 | ||||||||
Finished products | $ | 87.3 | $ | 93.9 | ||||||
Products in process | 7.5 | 7.2 | ||||||||
Raw materials | 94.8 | 106.1 | ||||||||
Inventories at cost | $ | 189.6 | $ | 207.2 | ||||||
Inventory costs are primarily comprised of direct material and labor costs, as well as material overhead such as inbound freight and custom and excise duties. The current replacement cost approximated the LIFO carrying cost for 2014 and 2013. | ||||||||||
Inventory reserves amounted to $13.0 million and $17.2 million for the years ended December 31, 2014 and December 31, 2013, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | The components of property, plant and equipment, at cost, are as follow: | |||||||
Year Ended December 31, | ||||||||
(Amounts in millions) | 2014 | 2013 | ||||||
Land | $ | 23.4 | $ | 23.8 | ||||
Buildings | 193.2 | 178.7 | ||||||
Machinery and equipment | 615.9 | 659 | ||||||
Improvements in progress | 49.1 | 39.2 | ||||||
Gross property, plant and equipment | 881.6 | 900.7 | ||||||
Less: accumulated depreciation | 456.7 | 478.2 | ||||||
Net property, plant and equipment | $ | 424.9 | $ | 422.5 | ||||
Depreciation expense for owned assets, including those under capital leases, for the years ended December 31, 2014, 2013 and 2012 was $81.7 million, $74.6 million and $65.6 million, respectively. | ||||||||
Net property, plant and equipment includes tooling investments of $75.8 million and $80.6 million for the years ended December 31, 2014 and 2013 respectively. |
Accounts_Receivable_Securitiza
Accounts Receivable Securitization Program & Financing Receivables | 12 Months Ended |
Dec. 31, 2014 | |
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. The Accounts Receivable Securitization Program expired on September 26, 2014, and was not renewed. | |
During the year ended December 31, 2014 and prior to the expiration of the Accounts Receivable Securitization Program, the Company sold all of its eligible receivables into the Accounts Receivable Securitization Program. The receivables were removed from the balance sheet in accordance with the guidance under ASC 860, Transfers and Servicing. The total amount of receivables sold under the Accounts Receivable Securitization Program for the year ended December 31, 2014 was €545.7 million ($739.9 million at weighted average exchange rates for the 2014 period through program expiration), compared to €790.8 million ($1,050.6 million at weighted average 2013 exchange rates) for the year ended December 31, 2013 and €731.7 million ($941.1 million at weighted average 2012 exchange rates) for the year ended December 31, 2012. There were no eligible receivables sold and outstanding as of December 31, 2014 compared to €75.0 million ($103.6 million at December 31, 2013 exchange rates) as of December 31, 2013. | |
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 and through the expiration of the Accounts Receivable Securitization Program, the Company continued to service the receivables. The Company sold the receivables at face value, but received actual funding net of a subordinated deposit account with Société Générale until collections were received from customers for the receivables sold. The Company was 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 as of December 31, 2014 and 2013 were both immaterial. Servicing fees paid for the program were $0.6 million, $0.8 million and $0.8 million for the years ended December 31, 2014, 2013 and 2012 respectively. | |
In connection with the expiration of the Accounts Receivable Securitization Program, the Company entered into a separate agreement with Société Générale to repurchase accounts receivable amounting to €88.1 million ($111.7 million based on exchange rates at time of repurchase). A subordinated deposit of $38.2 million was also released to the Company, resulting in a net decrease in cash and cash equivalents of $73.5 million. | |
On April 15, 2009, the Company entered into a €35 million factoring program, which has a term of five years, with respect to accounts receivable from one of our customers. We did not utilize this program which expired on April 14, 2014. | |
Other receivables available for financing include sales to reputable state owned and public enterprises in China that are settled through bankers acceptance drafts which are registered and endorsed to the Company. These notes receivable are fully guaranteed by banks and generally have contractual maturities of six months or less, but the ultimate recourse remains against the trade debtor. These guaranteed notes are available for discounting with banking institutions in China or transferring to suppliers to settle liabilities. The total amount of notes receivable discounted or transferred for the years ended December 31, 2014, 2013 and 2012 was $63.8 million, $42.8 million and $33.3 million, respectively. Expenses related to discounting these notes amounted to $0.1 million for the year ended December 31, 2014, which are included in “other non-operating expense, net.” There were no expenses for the year ended December 31, 2013 and $0.1 million for the year ended December 31, 2012. 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 $52.8 million and $51.4 million as of December 31, 2014 and 2013, 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, 2014 or 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, 2014 and 2013. | |||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in millions) | 2014 | 2013 | |||||||||||
Balance of goodwill, beginning of year | $ | 381.2 | $ | 371.7 | |||||||||
Acquisitions | 91.6 | — | |||||||||||
Foreign exchange translation | (51.8 | ) | 9.5 | ||||||||||
Balance of goodwill, end of year | $ | 421 | $ | 381.2 | |||||||||
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, 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 | ||||||||||
Additions | 12.7 | 53.7 | 66.4 | ||||||||||
Disposals | (17.7 | ) | — | (17.7 | ) | ||||||||
Foreign exchange translation | (14.5 | ) | (11.6 | ) | (26.1 | ) | |||||||
December 31, 2014 | $ | 91.9 | $ | 70.6 | $ | 162.5 | |||||||
Accumulated amortization as of: | |||||||||||||
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 | ) | |||||||
Amortization expense | (9.1 | ) | (12.7 | ) | (21.8 | ) | |||||||
Disposals | 17.7 | — | 17.7 | ||||||||||
Foreign exchange translation | 10.7 | 4.9 | 15.6 | ||||||||||
December 31, 2014 | $ | (62.5 | ) | $ | (21.6 | ) | $ | (84.1 | ) | ||||
Net intangible assets as of: | |||||||||||||
December 31, 2014 | $ | 29.4 | $ | 49 | $ | 78.4 | |||||||
The Company expects to incur approximately $21 million to $23 million of amortization expense for each of the next five fiscal years. |
Postretirement_Benefits
Post-retirement Benefits | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
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 sheets an 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 $595.0 million on the consolidated balance sheets 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, 2014 and 2013, and a statement of the funded status as of December 31, 2014 and 2013. | |||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of benefit obligation: | |||||||||||||||||||
Obligation at beginning of year | $ | 14 | $ | 606.2 | $ | 15 | $ | 585.4 | |||||||||||
Service cost | 0.1 | 12.4 | 0.1 | 12.7 | |||||||||||||||
Interest cost | 0.5 | 21.7 | 0.5 | 20.8 | |||||||||||||||
Participant contributions | 0.3 | 0.2 | 0.4 | 0.2 | |||||||||||||||
Actuarial loss / (gain) | 2.6 | 248.6 | — | (7.7 | ) | ||||||||||||||
Benefit payments | (4.2 | ) | (31.0 | ) | (2.0 | ) | (28.4 | ) | |||||||||||
Foreign exchange effects | — | (83.9 | ) | — | 22.3 | ||||||||||||||
Other | — | 3.6 | — | 0.9 | |||||||||||||||
Obligation at end of year | $ | 13.3 | $ | 777.8 | $ | 14 | $ | 606.2 | |||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(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 | $ | — | $ | 178.1 | $ | — | $ | 172.1 | |||||||||||
Actual return on assets | — | 24.7 | — | 3.7 | |||||||||||||||
Employer contributions | 3.9 | 29.1 | 1.6 | 27.4 | |||||||||||||||
Participant contributions | 0.3 | 0.2 | 0.4 | 0.2 | |||||||||||||||
Benefit payments | (4.2 | ) | (31.0 | ) | (2.0 | ) | (28.4 | ) | |||||||||||
Foreign exchange effects | — | (11.9 | ) | — | 4 | ||||||||||||||
Other expenses | — | (1.1 | ) | — | (0.9 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 188.1 | $ | — | $ | 178.1 | |||||||||||
Funded Status at December 31 | $ | (13.3 | ) | $ | (589.7 | ) | $ | (14.0 | ) | $ | (428.1 | ) | |||||||
Amounts recognized in the balance sheet: | |||||||||||||||||||
Noncurrent assets | $ | — | $ | 13.7 | $ | — | $ | 20.1 | |||||||||||
Current liabilities | (1.6 | ) | (20.1 | ) | (1.7 | ) | (21.9 | ) | |||||||||||
Noncurrent liabilities | (11.7 | ) | (583.3 | ) | (12.3 | ) | (426.3 | ) | |||||||||||
Net amounts recognized in balance sheet: | $ | (13.3 | ) | $ | (589.7 | ) | $ | (14.0 | ) | $ | (428.1 | ) | |||||||
Cumulative amounts recognized in other comprehensive income consist of: | |||||||||||||||||||
Prior service cost | $ | 0.1 | $ | 1.9 | $ | 0.2 | $ | — | |||||||||||
Net actuarial loss | 9.5 | 340.5 | 7.2 | 147 | |||||||||||||||
Total (before tax effects) | $ | 9.6 | $ | 342.4 | $ | 7.4 | $ | 147 | |||||||||||
$17.4 million of the amount in other comprehensive income as of December 31, 2014 is expected to be recognized as post-retirement costs in 2015. | |||||||||||||||||||
The following table provides a summary of pension plans with accumulated benefit obligations in excess of assets as of December 31: | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(Amounts in millions) | Foreign Pension Plans | Foreign Pension Plans | |||||||||||||||||
For all plans: | |||||||||||||||||||
Accumulated benefit obligation | $ | 692.4 | $ | 545.8 | |||||||||||||||
For pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||
Accumulated benefit obligation | $ | 547.7 | $ | 390.9 | |||||||||||||||
Total post-retirement costs are shown below: | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||
Foreign pensions | $ | 31.6 | $ | 30.9 | $ | 20.2 | |||||||||||||
Health & Life insurance benefits | 1 | 1 | 1 | ||||||||||||||||
Total post-retirement costs, including accretion expense | $ | 32.6 | $ | 31.9 | $ | 21.2 | |||||||||||||
Components of post-retirement costs are broken out in the tables below: | |||||||||||||||||||
Pension Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||
Service cost-benefits earned during period | $ | 12.3 | $ | 12.7 | $ | 9.2 | |||||||||||||
Interest cost on projected benefit obligation | 21.6 | 20.8 | 22.3 | ||||||||||||||||
Less: assumed return on plan assets | (8.1 | ) | (8.8 | ) | (8.6 | ) | |||||||||||||
Amortization of prior service cost | (0.1 | ) | 0.1 | (0.1 | ) | ||||||||||||||
Amortization of net loss | 5.9 | 6.1 | 1.7 | ||||||||||||||||
Plan amendments | — | — | (4.3 | ) | |||||||||||||||
Net defined benefit plan cost after amendments | $ | 31.6 | $ | 30.9 | $ | 20.2 | |||||||||||||
Other Post-Retirement Benefit Costs | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||
Interest and service cost on projected benefit obligation | $ | 0.6 | $ | 0.6 | $ | 0.6 | |||||||||||||
Amortization of net loss | 0.4 | 0.4 | 0.4 | ||||||||||||||||
Defined benefit plan cost | $ | 1 | $ | 1 | $ | 1 | |||||||||||||
For plans where the total unrecognized net gain or loss exceeds the greater of 10% of the projected benefit obligation or 10% of the plan assets, the excess is amortized on a straight-line basis over the average expected future working lifetime of the active participants of that plan. For plans without active participants, the amortization period is the average life expectancy of plan 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 | 2014 Health & Life Ins. Benefits | 2014 Foreign Pension Plans | 2013 Health & Life Ins. Benefits | 2013 Foreign Pension Plans | |||||||||||||||
Discount rate | 3.5 | % | 2.43 | % | 4 | % | 3.7 | % | |||||||||||
Salary growth | N/A | 3.03 | % | N/A | 3.18 | % | |||||||||||||
Net Periodic Pension Cost for the year | |||||||||||||||||||
Discount rate | 4 | % | 3.71 | % | 3.25 | % | 3.63 | % | |||||||||||
Salary growth | N/A | 3.18 | % | N/A | 3.22 | % | |||||||||||||
Expected return on plan assets | N/A | 4.27 | % | N/A | 5.38 | % | |||||||||||||
The discount rate assumption in this chart changed from 2013 to 2014, 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. | |||||||||||||||||||
During 2014, the Company, in consultation with its actuaries, revised certain demographic assumptions, in particular mortality, related to its pension plan in Germany to provide an improved reflection of the Company's current employee workforce there. The effect of this change in actuarial assumption is included in the actuarial loss for the year ended December 31, 2014 as shown above. | |||||||||||||||||||
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 | 2014 | 2013 | 2014 Target | 2013 Target | |||||||||||||||
Equity securities | 28 | % | 22 | % | 28 | % | 24 | % | |||||||||||
Debt securities | 11 | % | 24 | % | 11 | % | 71 | % | |||||||||||
Insurance contracts | 46 | % | 46 | % | 46 | % | — | % | |||||||||||
Investments in collective foundations | 14 | % | — | % | 14 | % | — | % | |||||||||||
Other * | 1 | % | 8 | % | 1 | % | 5 | % | |||||||||||
* Included in "other" above are 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 values of the insurance contract and investments in collective foundations are 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) | 2014 | 2013 | |||||||||||||||||
Equity securities | $ | 52.7 | $ | 40 | |||||||||||||||
Debt securities | 20.7 | 42.5 | |||||||||||||||||
Insurance contracts | 87 | 82.2 | |||||||||||||||||
Investments in collective foundations | 25.6 | — | |||||||||||||||||
Other * | 2.1 | 13.4 | |||||||||||||||||
Total fair value of plan assets | $ | 188.1 | $ | 178.1 | |||||||||||||||
* Included in "other" above are mutual funds held in real estate. | |||||||||||||||||||
WABCO makes contributions to funded pension plans that at a minimum, meet all statutory funding requirements. Contributions in 2014, including payment of benefits incurred by unfunded plans, totaled $29.1 million. Contributions in 2015 are expected to be in line with the contributions made during 2014. | |||||||||||||||||||
Expected future benefit payments are shown in the table below: | |||||||||||||||||||
(Amounts in millions) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||
Domestic plans without subsidy | $ | 1.7 | $ | 1.5 | $ | 1.4 | $ | 1.3 | $ | 1.2 | $ | 4.5 | |||||||
Foreign pension plans | $ | 26.8 | $ | 26.9 | $ | 26.5 | $ | 26.6 | $ | 26.2 | $ | 131.4 | |||||||
The weighted average annual assumed rate of increase in the health care cost trend rate was 7.0% for 2013, 6.8% for 2014 and is assumed to lower to 6.5% in 2015 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 | $ | 0.8 | $ | (0.7 | ) | ||||||||||||||
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, 2014 | ||||||||||||||||||||||
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 (the 2011 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, 2014, this is our principal bank credit facility and it expires on September 1, 2018 pursuant to an amendment agreement to extend the original expiry date. | ||||||||||||||||||||||
On December 17, 2014, the Company entered into a new $100 million multi-currency five-year senior unsecured revolving credit facility (the 2014 Facility) with the lenders and agent banks party thereto, including Citibank International Limited as Agent, and Bank of America N.A., London Branch, Citigroup Global Markets Limited, BNP Paribas Fortis Bank S.A./N.V., the Bank of Tokyo-Mitsubishi UFJ Ltd. and Unicredit Bank AG as lead arrangers. This facility will expire on December 17, 2019. | ||||||||||||||||||||||
Under the revolving credit facilities, the Company may borrow, on a revolving basis, loans in an aggregate principal amount at any one time outstanding not in excess of $500 million. Up to $50 million under the 2011 Facility may be used for issuing letters of credit, of which $49.1 million was unused as of December 31, 2014, and up to $50 million is available in the form of swing line loans, all $50 million of which was available for use as of December 31, 2014. | ||||||||||||||||||||||
The following table summarizes the balance outstanding on these facilities: | ||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||
(Amounts in millions) | Outstanding borrowings | Letters of credit | Aggregate interest rate | Outstanding borrowings | Letters of credit | Aggregate interest rate | ||||||||||||||||
2011 Facility | $ | 206 | $ | 0.9 | 0.97 | % | $ | 47 | $ | 1.2 | 1.04 | % | ||||||||||
2014 Facility | 100 | $ | — | 0.81 | % | — | — | — | ||||||||||||||
$ | 306 | $ | 0.9 | $ | 47 | $ | 1.2 | |||||||||||||||
As of December 31, 2014 and 2013, the carrying amounts of the facilities approximated fair value based upon Level 2 inputs. | ||||||||||||||||||||||
Interest on loans under the revolving credit facilities will be calculated at a rate per annum equal to an applicable margin - which can vary from 0.80% to 1.55% for the 2011 Facility and 0.45% to 1.00% for the 2014 Facility 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 facilities also provide for certain of the borrowers to pay various fees including a participation fee on the amount of the lenders' commitments thereunder. | ||||||||||||||||||||||
The revolving credit facilities contain 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 facilities, to $500 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. We were in compliance with all the covenants. | ||||||||||||||||||||||
As of December 31, 2014 the Company had the ability to borrow an incremental $193.1 million under the revolving credit facilities, compared to $351.8 million as of December 31, 2013. | ||||||||||||||||||||||
As of December 31, 2014, the Company's various subsidiaries had borrowings from banks totaling $9.2 million, of which $1.1 million was classified as long-term debt. The remaining $8.1 million supports local working requirements. This is in comparison to $40.1 million as of December 31, 2013, of which $36.4 million related to our Accounts Receivable Securitization Program referred to in Note 11 above. |
Warranties_Guarantees_Commitme
Warranties, Guarantees, Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, 2014, 2013 and 2012. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Balance of warranty costs accrued, beginning of period | $ | 51.6 | $ | 55.2 | $ | 52.6 | ||||||
Warranty costs accrued | 27.1 | 25.4 | 30.2 | |||||||||
Warranty claims settled | (28.0 | ) | (30.5 | ) | (28.4 | ) | ||||||
Foreign exchange translation effects | (5.5 | ) | 1.5 | 0.8 | ||||||||
Balance of warranty costs accrued, end of period | $ | 45.2 | $ | 51.6 | $ | 55.2 | ||||||
Current liability, included in current portion of warranties | $ | 25.8 | $ | 29.8 | $ | 33.8 | ||||||
Long-term liability, included in other liabilities | $ | 19.4 | $ | 21.8 | $ | 21.4 | ||||||
Warranty costs net of recoveries | $ | 24.9 | $ | 21.4 | $ | 27.1 | ||||||
Guarantees and Commitments | ||||||||||||
Future minimum rental commitments under all non-cancelable operating leases with original terms in excess of one year in effect as of December 31, 2014, are: $18.9 million in 2015; $13.4 million in 2016; $11.3 million in 2017; $8.9 million in 2018; $8.5 million in 2019 and $12.2 million thereafter, amounting to a total of $73.2 million. Net rental expense for all operating leases was $20.4 million, $18.9 million and $19.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
The Company has bank guarantees for $49.9 million which is comprised of uncollateralized bank guarantees, of which $43.9 million is related to tax and other litigation, $0.9 million is related to letters of credit, $0.7 million is related to performance bonds and $4.4 million is related to other items. | ||||||||||||
Right of Recourse | ||||||||||||
In the ordinary course of business, the Company may receive banker's acceptance drafts from customers in China in payment of outstanding accounts receivable. These banker's acceptance drafts are non-interest bearing obligations of the issuing bank and generally have contractual maturities of six months or less. The Company may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity date. As of December 31, 2014, the Company had approximately $15.1 million of banker's acceptance drafts subject to customary right of recourse provisions, which were transferred to vendors and had not reached their scheduled maturity date. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. | ||||||||||||
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 delivered its judgment and reversed 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 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 was thus deemed final. | ||||||||||||
Other | ||||||||||||
In conjunction with the Tax Sharing Agreement, as further discussed in Note 17, WABCO is responsible for certain tax and indemnification liabilities. These liabilities include probable indemnification liabilities to Trane of $4.5 million as of December 31, 2014. 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, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Income before income taxes: | ||||||||||||
Domestic | $ | 49.8 | $ | 94.4 | $ | 77.2 | ||||||
Foreign | 307 | 546.5 | 258.9 | |||||||||
$ | 356.8 | $ | 640.9 | $ | 336.1 | |||||||
Provision/(benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Domestic | $ | 18 | $ | 11.4 | $ | (6.2 | ) | |||||
Foreign | 33.1 | 32.2 | 32.7 | |||||||||
$ | 51.1 | $ | 43.6 | $ | 26.5 | |||||||
Deferred: | ||||||||||||
Domestic | $ | 3 | $ | 101.7 | $ | 0.1 | ||||||
Foreign | 1.5 | (166.3 | ) | (3.0 | ) | |||||||
$ | 4.5 | $ | (64.6 | ) | $ | (2.9 | ) | |||||
Total provision/(benefit) | $ | 55.6 | $ | (21.0 | ) | $ | 23.6 | |||||
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 2014, 2013 and 2012 to the income before income taxes is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Tax provision at statutory rate | $ | 124.9 | $ | 224.3 | $ | 117.4 | ||||||
State income taxes | 0.7 | — | — | |||||||||
Separation related taxes and contingencies | — | — | 2.2 | |||||||||
Foreign earnings taxed at other than 35% | (82.0 | ) | (93.9 | ) | (71.9 | ) | ||||||
(Decrease)/increase in valuation allowance | (1.1 | ) | (261.9 | ) | 109.8 | |||||||
Unremitted foreign earnings | (3.6 | ) | 107.4 | — | ||||||||
EC Fine indemnity | — | — | (116.3 | ) | ||||||||
Tax contingencies/(reversals) | 3.3 | (0.4 | ) | (21.9 | ) | |||||||
Equity compensation | 4.8 | 4.4 | 5 | |||||||||
Other, net | 8.6 | (0.9 | ) | (0.7 | ) | |||||||
Total provision/(benefit) | $ | 55.6 | $ | (21.0 | ) | $ | 23.6 | |||||
The effective income tax rates for 2014 and 2013 were 15.6% and (3.3)%, respectively. The income tax provision for 2014 includes the net result of taxes on the mix of earnings in multiple tax jurisdictions, the accrual of interest on uncertain tax positions, and certain foreign tax planning. Furthermore, in 2014, the Company recorded a tax charge of $3.6 million primarily related to various income tax filings and changes in the Company's recorded tax liabilities with respect to undistributed foreign earnings due to the Company’s decision to repatriate on a non-recurring basis $15.1 million of accumulated foreign earnings of its Korean affiliate. The Company continues to assert permanent reinvestment outside the U.S. with respect to the remainder of its foreign earnings and at this time, does not have any plans or needs to repatriate additional earnings from its foreign subsidiaries except for Brazil. | ||||||||||||
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 credits and rulings, resulting in a net tax benefit. | ||||||||||||
As previously disclosed in the Company's 2013 Form 10K, we continue to expect our effective tax rate to increase in subsequent periods following the 2013 release of a valuation allowance of $178.4 million. 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 $9.0 million of its deferred tax assets in other foreign jurisdictions since evidence such as historical operating profits resulted in a lack of taxable earnings during the most recent three-year period ended December 31, 2014 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. | ||||||||||||
In 2013, the income tax benefit 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. Additionally in 2013, the Company recorded a tax provision 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. | ||||||||||||
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. | ||||||||||||
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 $15.6 million and $0.26 in 2014, $7.8 million and $0.12 in 2013 and $6.5 million and $0.10 in 2012, 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) | 2014 | 2013 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Basis difference in noncontrolling interest | $ | 10.5 | $ | 11.9 | ||||||||
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 19 | 21 | ||||||||||
Unremitted foreign earnings | 103.3 | 107.8 | ||||||||||
Intangibles | 16.8 | 3.4 | ||||||||||
$ | 149.6 | $ | 144.1 | |||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses and tax credits | $ | 170.1 | $ | 195.7 | ||||||||
Post-retirement and other employee benefits | 105.4 | 43.2 | ||||||||||
Intangibles | 34 | 35.7 | ||||||||||
Inventory | 1.1 | 0.8 | ||||||||||
Warranties | 1.6 | 1.4 | ||||||||||
Other | 6.7 | 16.5 | ||||||||||
$ | 318.9 | $ | 293.3 | |||||||||
Valuation allowances | (9.0 | ) | (10.1 | ) | ||||||||
Net deferred tax assets | $ | 160.3 | $ | 139.1 | ||||||||
As of December 31, 2014, the Company has $491.0 million of net operating loss carry forwards (NOLs) available for utilization in future years. Approximately $455.6 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, 2014, the Company has provided a valuation allowance of $9.0 million representing the value of the associated deferred tax asset with regard to $27.9 million of NOLs and tax credits available for up to 6 years. Management has determined that it is more likely than not that it will not realize $9.0 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 as of December 31, 2014 amounted to $48.5 million primarily related to the WABCO business which is classified as a long-term liability and the Company is currently unable to estimate the timing of potential amounts to be paid. | ||||||||||||
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 17. Interest related to unrecognized tax benefits recorded in the 2014, 2013 and 2012 consolidated statements of income were $1.0 million, $0.3 million and $1.1 million, respectively. Total accrued interest as of December 31, 2014, 2013 and 2012 was approximately $7.0 million, $6.0 million and $5.7 million, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Beginning balance, January 1 | $ | 39.3 | $ | 41.9 | $ | 209.6 | ||||||
Additions for tax positions related to current year | 2.2 | — | — | |||||||||
Additions for tax positions related to prior years | 25.8 | 1.2 | 7.5 | |||||||||
Reductions for tax positions related to prior years | — | — | (172.4 | ) | ||||||||
Cash settlements | — | (2.0 | ) | (1.5 | ) | |||||||
Expirations of statute of limitations | (25.8 | ) | (2.0 | ) | (2.6 | ) | ||||||
Foreign exchange | — | 0.2 | 1.3 | |||||||||
Ending balance, December 31 | $ | 41.5 | $ | 39.3 | $ | 41.9 | ||||||
During 2014, the Company reversed $25.8 million of unrecognized tax benefits due to the expiration of a statute of limitation. This expiration also had a correlative impact on other unrecognized tax benefits which resulted in the Company recording an unrecognized tax benefit of $25.8 million (excluding penalties and interest) during 2014. | ||||||||||||
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 which 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. | ||||||||||||
As of December 31, 2014, 2013 and 2012, there were $41.5 million, $39.3 million and $41.9 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 2009. The Company is currently under examination in the United States for tax years 2010, 2011 and 2012. | ||||||||||||
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 2014 and also decided to repatriate $15.1 million of excess foreign earnings of its Korean affiliate. The Company continues to assert permanent reinvestment outside the U.S. with respect to the remainder of its foreign earnings and at this time, does not have any plans or needs to repatriate additional earnings from its foreign subsidiaries except for Brazil. | ||||||||||||
In addition, as discussed above, due to the receipt in the fourth quarter of 2013 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 $800 million as of December 31, 2014, 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, 2014 | |
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 16, the liabilities as of December 31, 2014 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, 2014, the Company had probable indemnification liabilities of $4.5 million, compared to $9.2 million as of December 31, 2013, of which $3.9 million were classified within short-term liabilities and $0.6 million 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. | |
For the years ended December 31, 2014, 2013 and 2012, approximately $4.3 million, $8.8 million and $1.2 million of indemnification liabilities were reversed, respectively, due to the settlement of foreign tax audits and expiration of statutes of limitations. We also paid indemnification liabilities of $0.7 million during 2014 in relation to the above. | |
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, 2014 was $42.8 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, 2014 | ||||||||||||||||||||||||
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, 2014, WABCO has net investments in and advances to Meritor WABCO of $15.9 million, WABCO SA of $3.3 million and WABCOWURTH of $0.4 million. WABCO received dividends from the joint ventures of $23.4 million, $18.3 million and $15.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Meritor WABCO | $ | 218.7 | $ | 176 | $ | 180.7 | $ | 0.7 | $ | — | $ | — | ||||||||||||
WABCO SA | 4.5 | 5.7 | 6.7 | — | — | — | ||||||||||||||||||
WABCOWURTH | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.2 | ||||||||||||||||||
(Amounts in millions) | WABCO Receivables from | WABCO Payables to | ||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Meritor WABCO | $ | 32 | $ | 28.3 | $ | — | $ | — | ||||||||||||||||
WABCO SA | 1.1 | 1.1 | — | — | ||||||||||||||||||||
WABCOWURTH | — | 0.2 | — | 0.6 | ||||||||||||||||||||
Consolidated Joint Ventures | ||||||||||||||||||||||||
WABCO has three fully consolidated joint ventures as of December 31, 2014. 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, SWAP. Prior to this acquisition, WABCO's ownership interest in this joint venture with MAFF was 70%. Sales to and purchases from MAFF were immaterial in the years ended December 31, 2013 and 2012. See Note 21 for further information. | ||||||||||||||||||||||||
(Amounts in millions) | WABCO Sales to | WABCO Purchases from | ||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Sanwa-Seiki | $ | — | $ | — | $ | 0.2 | $ | 31.3 | $ | 33.7 | $ | 42.9 | ||||||||||||
Cummins | 86 | 72.9 | 75.8 | — | — | — | ||||||||||||||||||
FUWA | 6.3 | 3 | 1 | — | — | — | ||||||||||||||||||
Geographic_Information
Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 11%, 12% and 11% of our sales in 2014, 2013 and 2012, respectively. Volvo, our next largest customer, accounted for 10% of our sales in all three years 2014, 2013 and 2012. 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, 2014, 2013 and 2012 accounted for 59%, 61% and 60% of total sales, respectively. Asian sales for the years ended December 31, 2014, 2013 and 2012 accounted for 19%, 18% and 20% 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 continue to be strengthened in Asia by an outstanding network of suppliers, manufacturing sites and engineering hubs. | ||||||||||||
Geographic Data | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Product Sales: | ||||||||||||
OEM | $ | 2,099.40 | $ | 2,043.50 | $ | 1,847.40 | ||||||
Aftermarket | 751.6 | 677 | 630 | |||||||||
Sales-Geographic distribution (a): | ||||||||||||
United States | $ | 383.5 | $ | 296.2 | $ | 274.5 | ||||||
Europe (countries below are included in this total) | 1,668.50 | 1,666.30 | 1,496.70 | |||||||||
Germany | 698.7 | 731.3 | 657.6 | |||||||||
France | 89.8 | 99.5 | 89 | |||||||||
Sweden | 206.8 | 215.4 | 201.7 | |||||||||
Other (countries below are included in this total) | 799 | 758 | 706.2 | |||||||||
Japan | 105.4 | 100.5 | 116.1 | |||||||||
China | 221.8 | 192.6 | 152.3 | |||||||||
Brazil | 156.7 | 180.9 | 135.3 | |||||||||
India | 127.1 | 106.1 | 147 | |||||||||
Total sales | $ | 2,851.00 | $ | 2,720.50 | $ | 2,477.40 | ||||||
(a) | Sales to external customers are classified by country of destination. | |||||||||||
As of December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Long-lived Assets (b) | ||||||||||||
Geographic distribution: | ||||||||||||
United States | $ | 22 | $ | 20.2 | $ | 14.1 | ||||||
Europe (countries below are included in this total) | 727.4 | 655.7 | 607.8 | |||||||||
Germany | 284.9 | 323.7 | 303.2 | |||||||||
Poland | 127.6 | 110.8 | 93.7 | |||||||||
Other (countries below are included in this total) | 212.5 | 213.5 | 220.5 | |||||||||
India | 97.2 | 97.7 | 104.1 | |||||||||
Total long-lived assets | $ | 961.9 | $ | 889.4 | $ | 842.4 | ||||||
(b) | Amounts are presented on a net basis |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2014 | |
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 sheets 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 sheets. 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 statements 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, 2014 and 2013, respectively, forward contracts for an aggregate notional amount of €77.8 million ($94.5 million at December 31, 2014 exchange rates) and €61.8 million ($85.3 million at December 31, 2013 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, 2014. The fair value of the derivatives was immaterial as of December 31, 2014 and 2013. | |
For the years ended December 31, 2014 and 2013, the Company recognized net gains on its derivative instruments of $2.2 million and net losses of $2.2 million, respectively, in "other non-operating income/expense, net" within the consolidated statements of operations. |
Business_Combinations
Business Combinations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Business Combinations | Business Combinations | |||
2014 Acquisitions | ||||
On February 12, 2014, WABCO Europe BVBA (WABCO Europe), a Belgian subsidiary of the Company, entered into a stock purchase agreement (the Agreement) to purchase all of the outstanding shares of Tavares NV (Tavares), a limited liability company incorporated under the laws of Belgium, for a cash purchase price of €111.1 million ($151.0 million based on exchange rates on the acquisition date). This included the acquisition of €15.3 million of net cash held by its subsidiary Transics International NV (Transics), resulting in net consideration of €95.8 million ($130.2 million based on exchange rates on the acquisition date). | ||||
At the date of acquisition, Tavares held 96.84% of the outstanding shares of Transics, a limited liability company incorporated under the laws of Belgium 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. | ||||
The allocation of the total purchase price to the assets and liabilities assumed as of the acquisition date is final as of December 31, 2014 and is summarized as follows: | ||||
(Amounts in millions) | ||||
Cash and cash equivalents | $ | 25.3 | ||
Trade receivables | 15.6 | |||
Trade payables | (5.4 | ) | ||
Debt | (4.5 | ) | ||
Deferred tax liabilities | (13.9 | ) | ||
Property, plant and equipment | 3.5 | |||
Intangible assets | 51.1 | |||
Other assets purchased and liabilities assumed, net | (6.6 | ) | ||
Identifiable net assets acquired | $ | 65.1 | ||
Goodwill | 91.6 | |||
Noncontrolling interest | (5.7 | ) | ||
Total purchase price allocation | $ | 151 | ||
The intangible assets include amounts recognized for the fair value of trade name and customer-based and technology-related assets. The fair values of the intangible assets and noncontrolling interest were determined based on an income and cost approach. The intangible assets are being amortized over a weighted-average useful life of approximately 6 years, the majority of which is not deductible for tax purposes. The goodwill generated is primarily attributable to expected synergies and is not deductible for tax purposes. The transaction-related costs were expensed as incurred and are recorded within other non-operating expense. | ||||
On April 10, 2014, in connection with the acquisition of Tavares, WABCO Europe launched a mandatory public takeover bid on all remaining shares and warrants issued by Transics in accordance with applicable Belgian takeover rules. Immediately following the initial acceptance period of the public bid, WABCO Europe launched a squeeze-out procedure that closed on May 16, 2014 for an additional payment of €4.2 million ($5.7 million based on exchange rates on the acquisition date), resulting in WABCO Europe directly and indirectly owning all shares and warrants in Transics for a total net consideration of €99.9 million ($135.9 million based on exchange rates on the acquisition date). | ||||
The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented and as a result, no pro forma financial statements have been presented. | ||||
2012 Acquisitions | ||||
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, 2014 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests |
On April 10, 2014, in connection with the acquisition of Tavares, WABCO Europe launched a mandatory public takeover bid on all remaining shares and warrants issued by Transics in accordance with applicable Belgian takeover rules. Immediately following the initial acceptance period of the public bid, WABCO Europe launched a squeeze-out procedure that closed on May 16, 2014. Net consideration paid as a result of the squeeze-out amounted to $5.7 million. See Note 21 for further discussion of the acquisition. | |
On August 30, 2013, the Company acquired the remaining shares in its Chinese joint venture, SWAP, for cash consideration of $4.6 million thus increasing its ownership from 70% to 100%. The acquisition resulted in the elimination of the noncontrolling interest. |
Quarterly_Data_Unaudited
Quarterly Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) | |||||||||||||||
Year 2014 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 729.5 | $ | 735 | $ | 707.3 | $ | 679.1 | ||||||||
Cost of sales | 511.6 | 505.3 | 487.3 | 474.9 | ||||||||||||
Gross profit | 217.9 | 229.7 | 220 | 204.2 | ||||||||||||
Income before income taxes | 87.7 | 95.8 | 94 | 79.3 | ||||||||||||
Income tax expense | 15.8 | 17.9 | 9.5 | 12.4 | ||||||||||||
Net income attributable to Company | $ | 69.4 | $ | 75 | $ | 82 | $ | 65.1 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.13 | $ | 1.24 | $ | 1.38 | $ | 1.11 | ||||||||
Diluted | $ | 1.12 | $ | 1.23 | $ | 1.37 | $ | 1.1 | ||||||||
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 | ||||||||
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 amount 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 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 $9.0 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, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
Years ended December 31, 2014, 2013 and 2012 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Description | Balance | Additions | Deductions | Foreign | Balance | |||||||||||
Beginning | Currency | End of | ||||||||||||||
of Period | Translation | Period | ||||||||||||||
Effects | ||||||||||||||||
2014:00:00 | ||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||
Allowance for doubtful accounts receivable | 4,999 | 384 | (817 | ) | (505 | ) | 4,061 | |||||||||
2013:00:00 | ||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||
Allowance for doubtful accounts receivable | 3,581 | 1,346 | (66 | ) | 138 | 4,999 | ||||||||||
2012:00:00 | ||||||||||||||||
Reserve deducted from assets: | ||||||||||||||||
Allowance for doubtful accounts receivable | 3,425 | 418 | (314 | ) | 52 | 3,581 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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 sheets. 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 statements 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 when (i) title and risk of loss have transferred to the customer, (ii) persuasive evidence of an arrangement exists with the customer, (iii) the sales price is fixed and determinable, and (iv) the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. |
Certain of the Company's product offerings contain multiple deliverables including hardware with embedded firmware, back office hosting services, unspecified software upgrades and enhancements related to these products through service contracts, which are considered separate units of accounting. For products under these arrangements, the software and non-software components function together to deliver the tangible product’s essential functionality. The Company allocates revenue to each element in these multiple-element arrangements based upon the relative selling prices of each deliverable. | |
In evaluating the revenue recognition for the Company's multiple-element arrangements, the Company determined that in certain cases, vendor specific objective evidence (VSOE) of selling price could not be established for some or all deliverables in the arrangement as the Company infrequently sold each element on a standalone basis, did not price products within a narrow range, or had a limited sales history. When VSOE cannot be established for an element, the Company attempts to establish the selling price of the element using third-party evidence (TPE) based on competitor prices for similar deliverables sold separately. However, the Company is typically not able to establish TPE as we are unable to reliably determine the standalone selling prices of similar competitor products. | |
When neither VSOE nor TPE can be established for an element, the Company uses its best estimate of selling price (BESP) in the allocation of arrangement consideration. BESP represents the price at which the Company would transact a sale if the element were sold on a standalone basis. The Company determines BESP for an element by considering multiple factors including, but not limited to, the Company's go-to-market strategy, pricing practices, internal costs, gross margin, market conditions and geographies. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for that element. | |
The Company 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, the Company recorded $43.0 million, $42.4 million and $36.6 million in 2014, 2013 and 2012, 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 operations. |
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 | Investments - Investments may consist of mutual funds or deposit funds 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 Company classifies its investments as either short-term or long-term based on the nature of the investments, its availability of use in current operations and the Company's holding intention. 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 statements of operations. As of December 31, 2014, the Company had $3.1 million of long-term investments |
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 sold receivables to the bank which qualified as financial assets since they were 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 resided with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances was 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 market. 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 & 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 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 13. 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. As of December 31, 2014 and 2013, the carrying amounts of these instruments approximated their fair values. Long-term debt also approximated fair value as of December 31, 2014 and 2013. |
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. |
Business Combinations | Business Combinations - We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquiree generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquiree is recorded as goodwill. When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
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 calculate 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) and deferred stock units (DSUs) after assuming that the Company would use the proceeds from the exercises to repurchase stock. The weighted average incremental shares also includes the net amount of shares issuable for performance stock units (PSUs) at the end of the reporting period, if any at all, based on the number of shares issuable if the end of the period were the end of the vesting period. |
Anti-dilutive shares, if applicable, are excluded and represent those options, RSUs, PSUs and DSUs 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 (including that on intercompany transactions of a long-term investment nature), pension liability adjustments, unrecognized gains or losses on post-retirement benefit plans and unrecognized gains or losses on investments, and is presented in the accompanying consolidated statements of shareholders' equity and comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation - WABCO measures and recognizes in its consolidated statements of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs, DSUs 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. | |
Outstanding WABCO options held by non-WABCO employees or directors that arose as a result of the Distribution 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 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 August 2014, the FASB issued Accounting Standards Update 2014-15 (ASU 2014-15) Presentation of Financial Statements - Going Concern, which provide guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and annual periods ending after December 15, 2016. The Company does not expect any material impact from adoption of this guidance on the Company's consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. | |
In July 2013, the FASB issued 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. The Company adopted the provisions of ASU 2013-11 as of March 31, 2014, which did not affect the Company's 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounting Policies [Abstract] | |||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | 2012 | |||||
Weighted average incremental shares included | 638,691 | 908,071 | 1,416,397 | ||||
Shares excluded due to anti-dilutive effect | — | 3,000 | 480,756 | ||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
(Amount in millions) | 2014 | 2013 | 2012 | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Balance at beginning of period | (5.5 | ) | (9.5 | ) | (12.9 | ) | ||||||
Adjustment for the period | (142.6 | ) | 4 | 3.4 | ||||||||
Balance at end of period | (148.1 | ) | (5.5 | ) | (9.5 | ) | ||||||
Losses on intra-entity transactions (1): | ||||||||||||
Balance at beginning of period | (8.9 | ) | (5.9 | ) | (3.2 | ) | ||||||
Adjustment for the period | (1.0 | ) | (3.0 | ) | (2.7 | ) | ||||||
Balance at end of period | (9.9 | ) | (8.9 | ) | (5.9 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Balance at beginning of period | — | — | — | |||||||||
Adjustment for the period | 0.4 | — | — | |||||||||
Amounts reclassified to earnings, net | (0.2 | ) | — | — | ||||||||
Balance at end of period | 0.2 | — | — | |||||||||
Pension and Post-retirement Plans: | ||||||||||||
Balance at beginning of period | (109.0 | ) | (107.2 | ) | (50.6 | ) | ||||||
Other comprehensive income before reclassifications | (140.1 | ) | (6.6 | ) | (58.2 | ) | ||||||
Amounts reclassified to earnings, net (2) | 4.2 | 4.8 | 1.6 | |||||||||
Balance at end of period | $ | (244.9 | ) | $ | (109.0 | ) | $ | (107.2 | ) | |||
Accumulated other comprehensive loss at end of period | $ | (402.7 | ) | $ | (123.4 | ) | $ | (122.6 | ) | |||
(1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. | ||||||||||||
(2) This accumulated other comprehensive income component, net of taxes of $1.6 million, $2.0 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. |
Streamlining_Expenses_Tables
Streamlining Expenses (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014 (amounts in millions). Activity for the period consisted primarily of termination payments and employee-related charges. | ||||||||||||||||
2008 / 2009 Program | |||||||||||||||||
Balance as of December 31, 2013 | $ | 5.9 | |||||||||||||||
Charges during 2014 | — | ||||||||||||||||
Payments during 2014 | (2.6 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 3.3 | |||||||||||||||
Other Programs | |||||||||||||||||
Balance as of December 31, 2013 | $ | 19 | |||||||||||||||
Charges during 2014 | 27 | ||||||||||||||||
Payments during 2014 | (15.4 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 30.6 | |||||||||||||||
Total foreign exchange translation effects | $ | (1.9 | ) | ||||||||||||||
Total streamlining liability as of December 31, 2014 | $ | 32 | |||||||||||||||
Schedule of Streamlining Cost | The following is a summary of current and cumulative streamlining costs: | ||||||||||||||||
Charges for Year | Cumulative Charges as | ||||||||||||||||
Ended December 31, 2014 | of December 31, 2014 | ||||||||||||||||
(Amounts in millions) | 2008/2009 | Other | 2008/2009 | Other | |||||||||||||
Program | Programs | Program | Programs | ||||||||||||||
Employee-related charges – cost of sales | $ | — | $ | 9.9 | $ | 45.7 | $ | 26.5 | |||||||||
Employee-related charges – selling and administrative | — | 16 | 45.8 | 36 | |||||||||||||
Total employee related charges | — | 25.9 | 91.5 | 62.5 | |||||||||||||
Other non-employee related charges | — | 1.1 | — | 2.9 | |||||||||||||
Total program costs | $ | — | $ | 27 | $ | 91.5 | $ | 65.4 | |||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, 2014, 2013 and 2012. | ||||||||
Number of Shares of Common Stock | |||||||||
Total Shares | Treasury Shares | Net Shares | |||||||
Outstanding | |||||||||
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 | 194,247 | — | 194,247 | ||||||
Shares issued for DSUs | 5,041 | — | 5,041 | ||||||
Shares issued for stock awards | 800 | — | 800 | ||||||
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 | 106,768 | — | 106,768 | ||||||
Shares issued for DSUs | 7,350 | — | 7,350 | ||||||
Shares issued for stock awards | 900 | — | 900 | ||||||
Shares purchased for treasury | — | (3,103,994 | ) | (3,103,994 | ) | ||||
Balance, December 31, 2013 | 77,471,174 | (16,112,149 | ) | 61,359,025 | |||||
Shares issued upon exercise of stock options | 394,899 | — | 394,899 | ||||||
Shares issued upon vesting of RSUs | 91,235 | — | 91,235 | ||||||
Shares issued for DSUs | 2,932 | — | 2,932 | ||||||
Shares issued for stock awards | 800 | — | 800 | ||||||
Shares purchased for treasury | — | (3,423,018 | ) | (3,423,018 | ) | ||||
Balance, December 31, 2014 | 77,961,040 | (19,535,167 | ) | 58,425,873 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Total Stock-Based Compensation Cost Recognized During Period | Total stock-based compensation cost recognized during the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation | $ | 15.5 | $ | 13.6 | $ | 14.3 | |||||||||||
Total Number and Type of Awards Granted and Related Weighted-Average Grant Date Fair Values | The following tables summarize the stock options, RSUs, PSUs, DSUs and stock awards activity for each of the periods presented: | ||||||||||||||||
Underlying Shares | Weighted - Average Exercise Price | Weighted - Average Grant Date Fair Value | |||||||||||||||
WABCO employees | Trane employees | Total | |||||||||||||||
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 | ||||||||||||
Options Granted | — | — | — | $ | — | $ | — | ||||||||||
Options Exercised | (298,032 | ) | (98,611 | ) | (396,643 | ) | $ | 38.01 | |||||||||
Options Forfeited | (8,036 | ) | (200 | ) | (8,236 | ) | $ | 58.54 | |||||||||
Options Outstanding December 31, 2014 | 580,849 | 226,805 | 807,654 | $ | 42.6 | ||||||||||||
Exercisable at December 31, 2014 | 493,912 | 226,805 | 720,717 | $ | 40.63 | ||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
RSUs Outstanding December 31, 2011 | 476,264 | $ | 38.47 | ||||||||||||||
RSUs Granted | 123,777 | $ | 58.86 | ||||||||||||||
RSUs Vested | (227,139 | ) | $ | 22.09 | |||||||||||||
RSUs Forfeited | (19,937 | ) | $ | 53.63 | |||||||||||||
RSUs Outstanding December 31, 2012 | 352,965 | $ | 55.3 | ||||||||||||||
RSUs Granted | 112,964 | $ | 68.37 | ||||||||||||||
RSUs Vested | (129,755 | ) | $ | 43.7 | |||||||||||||
RSUs Forfeited | (47,707 | ) | $ | 60.86 | |||||||||||||
RSUs Outstanding December 31, 2013 | 288,467 | $ | 64.72 | ||||||||||||||
RSUs Granted | 93,070 | $ | 100.78 | ||||||||||||||
RSUs Vested | (114,485 | ) | $ | 64.39 | |||||||||||||
RSUs Forfeited | (14,584 | ) | $ | 75.08 | |||||||||||||
RSUs Outstanding December 31, 2014 | 252,468 | $ | 77.56 | ||||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
PSUs Outstanding December 31, 2012 | — | $ | — | ||||||||||||||
PSUs Granted | 94,364 | $ | 68.1 | ||||||||||||||
PSUs Forfeited | (9,954 | ) | $ | 68.1 | |||||||||||||
PSUs Outstanding December 31, 2013 | 84,410 | $ | 68.1 | ||||||||||||||
PSUs Granted | 65,508 | $ | 103.41 | ||||||||||||||
PSUs Forfeited | (10,940 | ) | $ | 77.38 | |||||||||||||
PSUs Outstanding December 31, 2014 | 138,978 | $ | 84.01 | ||||||||||||||
Underlying Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
DSUs Outstanding December 31, 2011 | 8,580 | $ | 57.14 | ||||||||||||||
DSUs Granted | 9,227 | $ | 53.12 | ||||||||||||||
DSUs Issued | (5,041 | ) | $ | 64.51 | |||||||||||||
DSUs Outstanding December 31, 2012 | 12,766 | $ | 51.32 | ||||||||||||||
DSUs Granted | 5,864 | $ | 75.12 | ||||||||||||||
DSUs Issued | (7,350 | ) | $ | 52.39 | |||||||||||||
DSUs Outstanding December 31, 2013 | 11,280 | $ | 63 | ||||||||||||||
DSUs Granted | 7,156 | $ | 107.7 | ||||||||||||||
DSUs Issued | (2,932 | ) | $ | 75.12 | |||||||||||||
DSUs Outstanding December 31, 2014 | 15,504 | $ | 78.11 | ||||||||||||||
Shares | Weighted - Average Grant Date Fair Value | ||||||||||||||||
Stock Awards granted: | |||||||||||||||||
Year ended December 31, 2012 | 800 | $ | 60.02 | ||||||||||||||
Year ended December 31, 2013 | 900 | $ | 70.53 | ||||||||||||||
Year ended December 31, 2014 | 800 | $ | 96.37 | ||||||||||||||
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, 2014, 2013 and 2012: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Assumption | 2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | N/A | N/A | 0.81 | % | |||||||||||||
Expected volatility | N/A | N/A | 44.48 | % | |||||||||||||
Expected holding period | N/A | N/A | 5 years | ||||||||||||||
Expected dividend yield | N/A | N/A | — | % | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The table below shows the vesting schedule of the RSUs granted for each of the periods presented: | ||||||||||||||||
Vesting Schedule | |||||||||||||||||
Equal installments over 3 years | After 2 years | After 3 years | After 4 years | Total | |||||||||||||
RSUs granted in 2012 | 103,581 | 6,454 | 12,746 | 996 | 123,777 | ||||||||||||
RSUs granted in 2013 | 109,254 | — | 3,710 | — | 112,964 | ||||||||||||
RSUs granted in 2014 | 78,966 | 1,934 | 12,170 | — | 93,070 | ||||||||||||
Other_Operating_and_NonOperati1
Other Operating and Non-Operating Expense / (Income), Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Operating expense: | ||||||||||||
Bank charges | $ | 2.2 | $ | 2 | $ | 1.5 | ||||||
Miscellaneous taxes | 5.7 | 2.9 | 2.4 | |||||||||
Other expense/(income), net | 1 | 0.1 | (0.7 | ) | ||||||||
$ | 8.9 | $ | 5 | $ | 3.2 | |||||||
Non-operating (income)/expense: | ||||||||||||
Indemnification settlements, net | $ | (4.3 | ) | $ | (8.8 | ) | $ | 3.4 | ||||
Securitization and receivable discount fees | 0.9 | 1 | 1.1 | |||||||||
Foreign exchange (gain)/loss | (0.9 | ) | (2.3 | ) | 0.8 | |||||||
Other expense/(income), net | 2.5 | 3.2 | (0.3 | ) | ||||||||
$ | (1.8 | ) | $ | (6.9 | ) | $ | 5 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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) | 2014 | 2013 | ||||||||
Finished products | $ | 87.3 | $ | 93.9 | ||||||
Products in process | 7.5 | 7.2 | ||||||||
Raw materials | 94.8 | 106.1 | ||||||||
Inventories at cost | $ | 189.6 | $ | 207.2 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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) | 2014 | 2013 | ||||||
Land | $ | 23.4 | $ | 23.8 | ||||
Buildings | 193.2 | 178.7 | ||||||
Machinery and equipment | 615.9 | 659 | ||||||
Improvements in progress | 49.1 | 39.2 | ||||||
Gross property, plant and equipment | 881.6 | 900.7 | ||||||
Less: accumulated depreciation | 456.7 | 478.2 | ||||||
Net property, plant and equipment | $ | 424.9 | $ | 422.5 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, 2014 and 2013. | ||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in millions) | 2014 | 2013 | |||||||||||
Balance of goodwill, beginning of year | $ | 381.2 | $ | 371.7 | |||||||||
Acquisitions | 91.6 | — | |||||||||||
Foreign exchange translation | (51.8 | ) | 9.5 | ||||||||||
Balance of goodwill, end of year | $ | 421 | $ | 381.2 | |||||||||
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, 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 | ||||||||||
Additions | 12.7 | 53.7 | 66.4 | ||||||||||
Disposals | (17.7 | ) | — | (17.7 | ) | ||||||||
Foreign exchange translation | (14.5 | ) | (11.6 | ) | (26.1 | ) | |||||||
December 31, 2014 | $ | 91.9 | $ | 70.6 | $ | 162.5 | |||||||
Accumulated amortization as of: | |||||||||||||
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 | ) | |||||||
Amortization expense | (9.1 | ) | (12.7 | ) | (21.8 | ) | |||||||
Disposals | 17.7 | — | 17.7 | ||||||||||
Foreign exchange translation | 10.7 | 4.9 | 15.6 | ||||||||||
December 31, 2014 | $ | (62.5 | ) | $ | (21.6 | ) | $ | (84.1 | ) | ||||
Net intangible assets as of: | |||||||||||||
December 31, 2014 | $ | 29.4 | $ | 49 | $ | 78.4 | |||||||
Postretirement_Benefits_Tables
Post-retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
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, 2014 and 2013, and a statement of the funded status as of December 31, 2014 and 2013. | ||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(Amounts in millions) | Health & Life Ins. Benefits | Pension Benefits | Health & Life Ins. Benefits | Pension Benefits | |||||||||||||||
Reconciliation of benefit obligation: | |||||||||||||||||||
Obligation at beginning of year | $ | 14 | $ | 606.2 | $ | 15 | $ | 585.4 | |||||||||||
Service cost | 0.1 | 12.4 | 0.1 | 12.7 | |||||||||||||||
Interest cost | 0.5 | 21.7 | 0.5 | 20.8 | |||||||||||||||
Participant contributions | 0.3 | 0.2 | 0.4 | 0.2 | |||||||||||||||
Actuarial loss / (gain) | 2.6 | 248.6 | — | (7.7 | ) | ||||||||||||||
Benefit payments | (4.2 | ) | (31.0 | ) | (2.0 | ) | (28.4 | ) | |||||||||||
Foreign exchange effects | — | (83.9 | ) | — | 22.3 | ||||||||||||||
Other | — | 3.6 | — | 0.9 | |||||||||||||||
Obligation at end of year | $ | 13.3 | $ | 777.8 | $ | 14 | $ | 606.2 | |||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(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 | $ | — | $ | 178.1 | $ | — | $ | 172.1 | |||||||||||
Actual return on assets | — | 24.7 | — | 3.7 | |||||||||||||||
Employer contributions | 3.9 | 29.1 | 1.6 | 27.4 | |||||||||||||||
Participant contributions | 0.3 | 0.2 | 0.4 | 0.2 | |||||||||||||||
Benefit payments | (4.2 | ) | (31.0 | ) | (2.0 | ) | (28.4 | ) | |||||||||||
Foreign exchange effects | — | (11.9 | ) | — | 4 | ||||||||||||||
Other expenses | — | (1.1 | ) | — | (0.9 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 188.1 | $ | — | $ | 178.1 | |||||||||||
Funded Status at December 31 | $ | (13.3 | ) | $ | (589.7 | ) | $ | (14.0 | ) | $ | (428.1 | ) | |||||||
Amounts recognized in the balance sheet: | |||||||||||||||||||
Noncurrent assets | $ | — | $ | 13.7 | $ | — | $ | 20.1 | |||||||||||
Current liabilities | (1.6 | ) | (20.1 | ) | (1.7 | ) | (21.9 | ) | |||||||||||
Noncurrent liabilities | (11.7 | ) | (583.3 | ) | (12.3 | ) | (426.3 | ) | |||||||||||
Net amounts recognized in balance sheet: | $ | (13.3 | ) | $ | (589.7 | ) | $ | (14.0 | ) | $ | (428.1 | ) | |||||||
Cumulative amounts recognized in other comprehensive income consist of: | |||||||||||||||||||
Prior service cost | $ | 0.1 | $ | 1.9 | $ | 0.2 | $ | — | |||||||||||
Net actuarial loss | 9.5 | 340.5 | 7.2 | 147 | |||||||||||||||
Total (before tax effects) | $ | 9.6 | $ | 342.4 | $ | 7.4 | $ | 147 | |||||||||||
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: | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(Amounts in millions) | Foreign Pension Plans | Foreign Pension Plans | |||||||||||||||||
For all plans: | |||||||||||||||||||
Accumulated benefit obligation | $ | 692.4 | $ | 545.8 | |||||||||||||||
For pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||
Accumulated benefit obligation | $ | 547.7 | $ | 390.9 | |||||||||||||||
Total Post-Retirement Costs | Total post-retirement costs are shown below: | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||
Foreign pensions | $ | 31.6 | $ | 30.9 | $ | 20.2 | |||||||||||||
Health & Life insurance benefits | 1 | 1 | 1 | ||||||||||||||||
Total post-retirement costs, including accretion expense | $ | 32.6 | $ | 31.9 | $ | 21.2 | |||||||||||||
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 | 2014 Health & Life Ins. Benefits | 2014 Foreign Pension Plans | 2013 Health & Life Ins. Benefits | 2013 Foreign Pension Plans | |||||||||||||||
Discount rate | 3.5 | % | 2.43 | % | 4 | % | 3.7 | % | |||||||||||
Salary growth | N/A | 3.03 | % | N/A | 3.18 | % | |||||||||||||
Net Periodic Pension Cost for the year | |||||||||||||||||||
Discount rate | 4 | % | 3.71 | % | 3.25 | % | 3.63 | % | |||||||||||
Salary growth | N/A | 3.18 | % | N/A | 3.22 | % | |||||||||||||
Expected return on plan assets | N/A | 4.27 | % | N/A | 5.38 | % | |||||||||||||
Allocation and Fair Value of Plan Assets | The fair values for each class of assets are presented below: | ||||||||||||||||||
(Amounts in millions) | 2014 | 2013 | |||||||||||||||||
Equity securities | $ | 52.7 | $ | 40 | |||||||||||||||
Debt securities | 20.7 | 42.5 | |||||||||||||||||
Insurance contracts | 87 | 82.2 | |||||||||||||||||
Investments in collective foundations | 25.6 | — | |||||||||||||||||
Other * | 2.1 | 13.4 | |||||||||||||||||
Total fair value of plan assets | $ | 188.1 | $ | 178.1 | |||||||||||||||
* Included in "other" above are mutual funds held in real estate. | |||||||||||||||||||
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 | 2014 | 2013 | 2014 Target | 2013 Target | |||||||||||||||
Equity securities | 28 | % | 22 | % | 28 | % | 24 | % | |||||||||||
Debt securities | 11 | % | 24 | % | 11 | % | 71 | % | |||||||||||
Insurance contracts | 46 | % | 46 | % | 46 | % | — | % | |||||||||||
Investments in collective foundations | 14 | % | — | % | 14 | % | — | % | |||||||||||
Other * | 1 | % | 8 | % | 1 | % | 5 | % | |||||||||||
* Included in "other" above are mutual funds held in real estate. | |||||||||||||||||||
Expected Future Benefit Payments | Expected future benefit payments are shown in the table below: | ||||||||||||||||||
(Amounts in millions) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||
Domestic plans without subsidy | $ | 1.7 | $ | 1.5 | $ | 1.4 | $ | 1.3 | $ | 1.2 | $ | 4.5 | |||||||
Foreign pension plans | $ | 26.8 | $ | 26.9 | $ | 26.5 | $ | 26.6 | $ | 26.2 | $ | 131.4 | |||||||
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 | $ | 0.8 | $ | (0.7 | ) | ||||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||||||||
Service cost-benefits earned during period | $ | 12.3 | $ | 12.7 | $ | 9.2 | |||||||||||||
Interest cost on projected benefit obligation | 21.6 | 20.8 | 22.3 | ||||||||||||||||
Less: assumed return on plan assets | (8.1 | ) | (8.8 | ) | (8.6 | ) | |||||||||||||
Amortization of prior service cost | (0.1 | ) | 0.1 | (0.1 | ) | ||||||||||||||
Amortization of net loss | 5.9 | 6.1 | 1.7 | ||||||||||||||||
Plan amendments | — | — | (4.3 | ) | |||||||||||||||
Net defined benefit plan cost after amendments | $ | 31.6 | $ | 30.9 | $ | 20.2 | |||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||||||||
Interest and service cost on projected benefit obligation | $ | 0.6 | $ | 0.6 | $ | 0.6 | |||||||||||||
Amortization of net loss | 0.4 | 0.4 | 0.4 | ||||||||||||||||
Defined benefit plan cost | $ | 1 | $ | 1 | $ | 1 | |||||||||||||
Warranties_Guarantees_Commitme1
Warranties, Guarantees, Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, 2014, 2013 and 2012. | |||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Balance of warranty costs accrued, beginning of period | $ | 51.6 | $ | 55.2 | $ | 52.6 | ||||||
Warranty costs accrued | 27.1 | 25.4 | 30.2 | |||||||||
Warranty claims settled | (28.0 | ) | (30.5 | ) | (28.4 | ) | ||||||
Foreign exchange translation effects | (5.5 | ) | 1.5 | 0.8 | ||||||||
Balance of warranty costs accrued, end of period | $ | 45.2 | $ | 51.6 | $ | 55.2 | ||||||
Current liability, included in current portion of warranties | $ | 25.8 | $ | 29.8 | $ | 33.8 | ||||||
Long-term liability, included in other liabilities | $ | 19.4 | $ | 21.8 | $ | 21.4 | ||||||
Warranty costs net of recoveries | $ | 24.9 | $ | 21.4 | $ | 27.1 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Income before income taxes: | ||||||||||||
Domestic | $ | 49.8 | $ | 94.4 | $ | 77.2 | ||||||
Foreign | 307 | 546.5 | 258.9 | |||||||||
$ | 356.8 | $ | 640.9 | $ | 336.1 | |||||||
Provision/(benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Domestic | $ | 18 | $ | 11.4 | $ | (6.2 | ) | |||||
Foreign | 33.1 | 32.2 | 32.7 | |||||||||
$ | 51.1 | $ | 43.6 | $ | 26.5 | |||||||
Deferred: | ||||||||||||
Domestic | $ | 3 | $ | 101.7 | $ | 0.1 | ||||||
Foreign | 1.5 | (166.3 | ) | (3.0 | ) | |||||||
$ | 4.5 | $ | (64.6 | ) | $ | (2.9 | ) | |||||
Total provision/(benefit) | $ | 55.6 | $ | (21.0 | ) | $ | 23.6 | |||||
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 2014, 2013 and 2012 to the income before income taxes is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Tax provision at statutory rate | $ | 124.9 | $ | 224.3 | $ | 117.4 | ||||||
State income taxes | 0.7 | — | — | |||||||||
Separation related taxes and contingencies | — | — | 2.2 | |||||||||
Foreign earnings taxed at other than 35% | (82.0 | ) | (93.9 | ) | (71.9 | ) | ||||||
(Decrease)/increase in valuation allowance | (1.1 | ) | (261.9 | ) | 109.8 | |||||||
Unremitted foreign earnings | (3.6 | ) | 107.4 | — | ||||||||
EC Fine indemnity | — | — | (116.3 | ) | ||||||||
Tax contingencies/(reversals) | 3.3 | (0.4 | ) | (21.9 | ) | |||||||
Equity compensation | 4.8 | 4.4 | 5 | |||||||||
Other, net | 8.6 | (0.9 | ) | (0.7 | ) | |||||||
Total provision/(benefit) | $ | 55.6 | $ | (21.0 | ) | $ | 23.6 | |||||
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) | 2014 | 2013 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Basis difference in noncontrolling interest | $ | 10.5 | $ | 11.9 | ||||||||
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 19 | 21 | ||||||||||
Unremitted foreign earnings | 103.3 | 107.8 | ||||||||||
Intangibles | 16.8 | 3.4 | ||||||||||
$ | 149.6 | $ | 144.1 | |||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses and tax credits | $ | 170.1 | $ | 195.7 | ||||||||
Post-retirement and other employee benefits | 105.4 | 43.2 | ||||||||||
Intangibles | 34 | 35.7 | ||||||||||
Inventory | 1.1 | 0.8 | ||||||||||
Warranties | 1.6 | 1.4 | ||||||||||
Other | 6.7 | 16.5 | ||||||||||
$ | 318.9 | $ | 293.3 | |||||||||
Valuation allowances | (9.0 | ) | (10.1 | ) | ||||||||
Net deferred tax assets | $ | 160.3 | $ | 139.1 | ||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Beginning balance, January 1 | $ | 39.3 | $ | 41.9 | $ | 209.6 | ||||||
Additions for tax positions related to current year | 2.2 | — | — | |||||||||
Additions for tax positions related to prior years | 25.8 | 1.2 | 7.5 | |||||||||
Reductions for tax positions related to prior years | — | — | (172.4 | ) | ||||||||
Cash settlements | — | (2.0 | ) | (1.5 | ) | |||||||
Expirations of statute of limitations | (25.8 | ) | (2.0 | ) | (2.6 | ) | ||||||
Foreign exchange | — | 0.2 | 1.3 | |||||||||
Ending balance, December 31 | $ | 41.5 | $ | 39.3 | $ | 41.9 | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Meritor WABCO | $ | 218.7 | $ | 176 | $ | 180.7 | $ | 0.7 | $ | — | $ | — | ||||||||||||
WABCO SA | 4.5 | 5.7 | 6.7 | — | — | — | ||||||||||||||||||
WABCOWURTH | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.2 | ||||||||||||||||||
(Amounts in millions) | WABCO Receivables from | WABCO Payables to | ||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Meritor WABCO | $ | 32 | $ | 28.3 | $ | — | $ | — | ||||||||||||||||
WABCO SA | 1.1 | 1.1 | — | — | ||||||||||||||||||||
WABCOWURTH | — | 0.2 | — | 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 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Sanwa-Seiki | $ | — | $ | — | $ | 0.2 | $ | 31.3 | $ | 33.7 | $ | 42.9 | ||||||||||||
Cummins | 86 | 72.9 | 75.8 | — | — | — | ||||||||||||||||||
FUWA | 6.3 | 3 | 1 | — | — | — | ||||||||||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Product Sales: | ||||||||||||
OEM | $ | 2,099.40 | $ | 2,043.50 | $ | 1,847.40 | ||||||
Aftermarket | 751.6 | 677 | 630 | |||||||||
Sales-Geographic distribution (a): | ||||||||||||
United States | $ | 383.5 | $ | 296.2 | $ | 274.5 | ||||||
Europe (countries below are included in this total) | 1,668.50 | 1,666.30 | 1,496.70 | |||||||||
Germany | 698.7 | 731.3 | 657.6 | |||||||||
France | 89.8 | 99.5 | 89 | |||||||||
Sweden | 206.8 | 215.4 | 201.7 | |||||||||
Other (countries below are included in this total) | 799 | 758 | 706.2 | |||||||||
Japan | 105.4 | 100.5 | 116.1 | |||||||||
China | 221.8 | 192.6 | 152.3 | |||||||||
Brazil | 156.7 | 180.9 | 135.3 | |||||||||
India | 127.1 | 106.1 | 147 | |||||||||
Total sales | $ | 2,851.00 | $ | 2,720.50 | $ | 2,477.40 | ||||||
(a) | Sales to external customers are classified by country of destination. | |||||||||||
As of December 31, | ||||||||||||
(Amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Long-lived Assets (b) | ||||||||||||
Geographic distribution: | ||||||||||||
United States | $ | 22 | $ | 20.2 | $ | 14.1 | ||||||
Europe (countries below are included in this total) | 727.4 | 655.7 | 607.8 | |||||||||
Germany | 284.9 | 323.7 | 303.2 | |||||||||
Poland | 127.6 | 110.8 | 93.7 | |||||||||
Other (countries below are included in this total) | 212.5 | 213.5 | 220.5 | |||||||||
India | 97.2 | 97.7 | 104.1 | |||||||||
Total long-lived assets | $ | 961.9 | $ | 889.4 | $ | 842.4 | ||||||
(b) | Amounts are presented on a net basis |
Business_Combinations_Purchase
Business Combinations Purchase price allocation (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ||||
(Amounts in millions) | ||||
Cash and cash equivalents | $ | 25.3 | ||
Trade receivables | 15.6 | |||
Trade payables | (5.4 | ) | ||
Debt | (4.5 | ) | ||
Deferred tax liabilities | (13.9 | ) | ||
Property, plant and equipment | 3.5 | |||
Intangible assets | 51.1 | |||
Other assets purchased and liabilities assumed, net | (6.6 | ) | ||
Identifiable net assets acquired | $ | 65.1 | ||
Goodwill | 91.6 | |||
Noncontrolling interest | (5.7 | ) | ||
Total purchase price allocation | $ | 151 | ||
Quarterly_Data_Unaudited_Table
Quarterly Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
Year 2014 | ||||||||||||||||
(Amounts in millions) | First | Second | Third | Fourth | ||||||||||||
Sales | $ | 729.5 | $ | 735 | $ | 707.3 | $ | 679.1 | ||||||||
Cost of sales | 511.6 | 505.3 | 487.3 | 474.9 | ||||||||||||
Gross profit | 217.9 | 229.7 | 220 | 204.2 | ||||||||||||
Income before income taxes | 87.7 | 95.8 | 94 | 79.3 | ||||||||||||
Income tax expense | 15.8 | 17.9 | 9.5 | 12.4 | ||||||||||||
Net income attributable to Company | $ | 69.4 | $ | 75 | $ | 82 | $ | 65.1 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.13 | $ | 1.24 | $ | 1.38 | $ | 1.11 | ||||||||
Diluted | $ | 1.12 | $ | 1.23 | $ | 1.37 | $ | 1.1 | ||||||||
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 | ||||||||
Description_of_Company_Details
Description of Company (Details) | 0 Months Ended | 12 Months Ended |
Jul. 31, 2007 | Dec. 31, 2014 | |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Available-for-sale Securities | $3,100,000 | ||
Accounting Policies Excluding Property Plant and Equipment [Abstract] | |||
Sales incentive allowance | 43,000,000 | 42,400,000 | 36,600,000 |
Goodwill impairment | 0 | ||
Standard warranty period | 2 years | ||
Product warranty costs, percentage of net sales | 0.90% | 0.80% | 1.10% |
Research and development expense | 145,000,000 | 119,400,000 | 104,300,000 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||
Weighted average incremental shares included | 638,691 | 908,071 | 1,416,397 |
Shares excluded due to anti-dilutive effect | 0 | 3,000 | 480,756 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive loss at end of period | ($402.70) | ($123.40) | ($122.60) |
Foreign currency translation adjustments: | |||
Accumulated other comprehensive loss at beginning of period | -5.5 | -9.5 | -12.9 |
Adjustment for the period | -142.6 | 4 | 3.4 |
Accumulated other comprehensive loss at end of period | -148.1 | -5.5 | -9.5 |
Losses on intra-entity transactions | |||
Accumulated other comprehensive loss at beginning of period | -8.9 | -5.9 | -3.2 |
Adjustment for the period | -1 | -3 | -2.7 |
Accumulated other comprehensive loss at end of period | -9.9 | -8.9 | -5.9 |
Unrealized gains on investments: | |||
Accumulated other comprehensive loss at beginning of period | 0 | 0 | 0 |
Adjustment for the period | 0.4 | 0 | 0 |
Amounts reclassified to earnings, net | -0.2 | 0 | 0 |
Accumulated other comprehensive loss at end of period | 0.2 | 0 | 0 |
Pension and Post-retirement Plans: | |||
Accumulated other comprehensive loss at beginning of period | -109 | -107.2 | -50.6 |
Adjustment for the period | -140.1 | -6.6 | -58.2 |
Amounts reclassified to earnings, net | 4.2 | 4.8 | 1.6 |
Accumulated other comprehensive loss at end of period | -244.9 | -109 | -107.2 |
Pension and post-retirement plans, AOCI, tax effect | $1.60 | $2 | $0.60 |
Streamlining_Expenses_Narrativ
Streamlining Expenses (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 29, 2008 | Dec. 31, 2014 |
employees | ||
Approximate global workforce reduction due to streamlining, employees | 1,800 | |
Other Liabilities [Member] | ||
Streamlining expenses | $12.80 | |
Streamlining Liabilities [Member] | ||
Streamlining expenses | $19.20 |
Streamlining_Expenses_Schedule
Streamlining Expenses (Schedule of Streamlining Expenses) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Restructuring Reserve [Roll Forward] | |
Foreign exchange translation effects | ($1.90) |
Total streamlining liability | 32 |
2008 / 2009 Program [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 5.9 |
Charges | 0 |
Payments | -2.6 |
Ending balance | 3.3 |
Other Programs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 19 |
Charges | 27 |
Payments | -15.4 |
Ending balance | $30.60 |
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, 2014 | 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 | 9.9 | 26.5 |
Employee related charges - selling and administrative | 16 | 36 |
Total employee related charges | 25.9 | 62.5 |
Asset write-offs | 1.1 | 2.9 |
Total program costs | $27 | $65.40 |
Capital_Stock_Schedule_of_Net_
Capital Stock (Schedule of Net Shares Outstanding and Shares Issued or Reacquired) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total Shares, beginning balance | 77,471,174 | 75,755,306 | 74,242,930 |
Net Shares Outstanding, beginning balance | 61,359,025 | 62,747,151 | 64,765,655 |
Shares issued upon exercise of stock options | 394,899 | 1,600,850 | 1,312,288 |
Shares issued upon vesting of RSUs | 91,235 | 106,768 | 194,247 |
Shares issued for DSUs | 2,932 | 7,350 | 5,041 |
Shares issued for stock awards | 800 | 900 | 800 |
Total Shares, ending balance | 77,961,040 | 77,471,174 | 75,755,306 |
Net Shares Outstanding, ending balance | 58,425,873 | 61,359,025 | 62,747,151 |
Treasury Shares, beginning balance | -16,112,149 | -13,008,155 | -9,477,275 |
Shares purchased for treasury | -3,423,018 | -3,103,994 | -3,530,880 |
Treasury Shares, ending balance | -19,535,167 | -16,112,149 | -13,008,155 |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 31 Months Ended | 2 Months Ended | |||||
Dec. 05, 2014 | Oct. 29, 2013 | Oct. 26, 2012 | 26-May-11 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 19, 2015 | |
repurchase_program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Share repurchase, amount authorized | $500,000,000 | $200,000,000 | $400,000,000 | $400,000,000 | |||||
Repurchases of treasury stock | 971,800,000 | ||||||||
Number of repurchase programs | 4 | ||||||||
Unexpended amount of share repurchase authorized | 500,000,000 | ||||||||
Shares purchased for treasury (shares) | 3,423,018 | 3,103,994 | 3,530,880 | ||||||
Subsequent Event [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Repurchases of treasury stock | $30,800,000 | ||||||||
Shares purchased for treasury (shares) | 311,046 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | ||
Shares authorized to issue under 2009 Omnibus Plan | 5,100,000 | ||
Share-based compensation arrangement, awards outstanding | 1,214,604 | ||
Shares remaining available for grant | 3,599,569 | ||
Options and RSUs outstanding, total aggregate intrinsic value | 48,000,000 | ||
Options exercisable, total aggregate intrinsic value | 44,300,000 | ||
Options outstanding, less expected forfeitures, total aggregate intrinsic value | 48,000,000 | ||
Options exercised in period, total intrinsic value | 24,900,000 | 69,900,000 | 49,900,000 |
Options, total fair value of shares vested value | 11,800,000 | 9,500,000 | 14,200,000 |
Nonvested options and RSUs, shares | 493,887 | ||
Nonvested options and RSUs, compensation cost | 20,400,000 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition, years | 1 year 9 months | ||
Weighted average remaining contractual life, options outstanding, years | 3 years 11 months | ||
Weighted average remaining contractual life of vested options | 3 years 7 months | ||
Company historical volatility | 5 years | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $400,000 | $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 | 0 | 284,691 |
Contractual term of options | 10 years | ||
Stock Options [Member] | WABCO [Member] | |||
Options, grants in period, gross | 0 | 0 | 284,691 |
Vested remaining contractual term | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Grants during period | 93,070 | 112,964 | 123,777 |
Restricted Stock Units (RSUs) [Member] | Exercisable after Two Years [Member] | |||
Grants during period | 1,934 | 6,454 | |
Restricted Stock Units (RSUs) [Member] | Exercisable after Three Years [Member] | |||
Grants during period | 12,170 | ||
Restricted Stock Units (RSUs) [Member] | Vest Ratably over Three Years [Member] | |||
Grants during period | 78,966 | 109,254 | 103,581 |
Restricted Stock Units (RSUs) [Member] | Vest After Three Years [Member] | |||
Grants during period | 3,710 | 12,746 | |
Restricted Stock Units (RSUs) [Member] | Vest After Four Years [Member] | |||
Grants during period | 996 | ||
Performance Stock Units [Member] | |||
Percentage vesting, lower range | 0.00% | ||
Percentage vesting, higher range | 200.00% | ||
Grants during period | 65,508 | 94,364 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Stock-based compensation (before tax effects) (value) | $15.50 | $13.60 | $14.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Exercised, Underlying Shares | -394,899 | -1,600,850 | -1,312,288 |
Stock Awards [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 | 800 | 900 | 800 |
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) | $70.53 | $60.02 | |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $96.37 | $70.53 | $60.02 |
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 | 288,467 | 352,965 | 476,264 |
RSUs Granted, Underlying Shares | 93,070 | 112,964 | 123,777 |
RSUs Vested , Underlying Shares | -114,485 | -129,755 | -227,139 |
RSUs Forfeited, Underlying Shares | -14,584 | -47,707 | -19,937 |
RSUs Outstanding , Underlying Shares, ending balance | 252,468 | 288,467 | 352,965 |
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) | $64.72 | $55.30 | $38.47 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $100.78 | $68.37 | $58.86 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $64.39 | $43.70 | $22.09 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $75.08 | $60.86 | $53.63 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $77.56 | $64.72 | $55.30 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Underlying Shares, beginning balance | 1,212,533 | 2,868,192 | 3,942,677 |
Options Granted, Underlying Shares | 0 | 0 | 284,691 |
Options Exercised, Underlying Shares | -396,643 | -1,602,068 | -1,316,743 |
Options Forfeited, Underlying Shares | -8,236 | -53,591 | -42,433 |
Options Outstanding, Underlying Shares, ending balance | 807,654 | 1,212,533 | 2,868,192 |
Exercisable, Underlying Shares | 720,717 | ||
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) | $41.20 | $35.82 | $29.61 |
Options Granted, Weighted-Average Exercise Price (in dollars per share) | $0 | $0 | $58.71 |
Options Exercised, Weighted-Average Exercise Price (in dollars per share) | $38.01 | $31.08 | $21.90 |
Options Forfeited, Weighted-Average Exercise Price (in dollars per share) | $58.54 | $52.71 | $40.74 |
Options Outstanding, Weighted-Average Exercise Price, ending price (in dollars per share) | $42.60 | $41.20 | $35.82 |
Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $40.63 | ||
Options Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $0 | $0 | $23.10 |
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 Outstanding , Underlying Shares, beginning balance | 84,410 | 0 | |
RSUs Granted, Underlying Shares | 65,508 | 94,364 | |
RSUs Forfeited, Underlying Shares | -10,940 | -9,954 | |
RSUs Outstanding , Underlying Shares, ending balance | 138,978 | 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 Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $68.10 | $0 | |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $103.41 | $68.10 | |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $77.38 | $68.10 | |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $84.01 | $68.10 | |
Deferred Stock Units (DSUs) [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 | 11,280 | 12,766 | 8,580 |
RSUs Granted, Underlying Shares | 7,156 | 5,864 | 9,227 |
RSUs Vested , Underlying Shares | -2,932 | -7,350 | -5,041 |
RSUs Outstanding , Underlying Shares, ending balance | 15,504 | 11,280 | 12,766 |
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) | $63 | $51.32 | $57.14 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $107.70 | $75.12 | $53.12 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $75.12 | $52.39 | $64.51 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $78.11 | $63 | $51.32 |
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 | 886,917 | 2,300,133 | 3,090,240 |
Options Granted, Underlying Shares | 0 | 0 | 284,691 |
Options Exercised, Underlying Shares | -298,032 | -1,359,825 | -1,037,538 |
Options Forfeited, Underlying Shares | -8,036 | -53,391 | -37,260 |
Options Outstanding, Underlying Shares, ending balance | 580,849 | 886,917 | 2,300,133 |
Exercisable, Underlying Shares | 493,912 | ||
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 | 325,616 | 568,059 | 852,437 |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | -98,611 | -242,243 | -279,205 |
Options Forfeited, Underlying Shares | -200 | -200 | -5,173 |
Options Outstanding, Underlying Shares, ending balance | 226,805 | 325,616 | 568,059 |
Exercisable, Underlying Shares | 226,805 | ||
Exercisable after Two Years [Member] | 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 Granted, Underlying Shares | 1,934 | 6,454 |
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 | |
Share-based Compensation [Abstract] | |
Risk-free interest rate | 0.81% |
Expected volatility | 44.48% |
Expected holding period | 5 years |
Expected dividend yield | 0.00% |
Other_Operating_and_NonOperati2
Other Operating and Non-Operating Expense / (Income), Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating: | |||
Bank charges | $2.20 | $2 | $1.50 |
Miscellaneous taxes | 5.7 | 2.9 | 2.4 |
Other expense/(income), net | 1 | 0.1 | -0.7 |
Other operating expense (income) | 8.9 | 5 | 3.2 |
Non-operating: | |||
Indemnification settlements, net | -4.3 | -8.8 | 3.4 |
Securitization and receivable discount fees | 0.9 | 1 | 1.1 |
Foreign exchange (gain)/loss | -0.9 | -2.3 | 0.8 |
Other expense/(income), net | 2.5 | 3.2 | -0.3 |
Other nonoperating expense (income) | ($1.80) | ($6.90) | $5 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished products | $87.30 | $93.90 |
Products in process | 7.5 | 7.2 |
Raw materials | 94.8 | 106.1 |
Inventories at cost | 189.6 | 207.2 |
Inventory allowance reserve | $13 | $17.20 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $881.60 | $900.70 | |
Less: accumulated depreciation | 456.7 | 478.2 | |
Net property, plant and equipment | 424.9 | 422.5 | |
Depreciation expense | 81.7 | 74.6 | 65.6 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 23.4 | 23.8 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 193.2 | 178.7 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 615.9 | 659 | |
Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 75.8 | 80.6 | |
Improvements In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $49.10 | $39.20 |
Accounts_Receivable_Securitiza1
Accounts Receivable Securitization Program & Financing Receivables (Details) | 0 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Apr. 15, 2009 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 01, 2013 | Jan. 31, 2013 | Sep. 23, 2009 |
EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | |
Accounts Receivable Financing Facility [Abstract] | ||||||||||
Maximum funding from receivables | € 100 | € 80 | ||||||||
Maximum funding from receivables after voluntary reduction | 80 | |||||||||
Receivables sold under securitization program | 739.9 | 545.7 | 1,050.60 | 790.8 | 941.1 | 731.7 | ||||
Eligible receivables sold and outstanding | 0 | 103.6 | 75 | |||||||
Servicing fees | 0.6 | 0.8 | 0.8 | |||||||
Accounts Receivable Repurchased | 111.7 | 88.1 | ||||||||
Released subordinated deposit | 38.2 | |||||||||
Cash paid for securitization termination | 73.5 | |||||||||
Factoring program | 35 | |||||||||
Factoring program, years | 5 years | |||||||||
Notes receivable discounted or transferred | 63.8 | 42.8 | 33.3 | |||||||
Expense from discount/transfer of notes receivable | 0.1 | 0 | 0.1 | |||||||
Notes receivable | $52.80 | $51.40 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $21.80 | $10.60 | $9.50 |
Goodwill [Roll Forward] | |||
Balance of goodwill, beginning of year | 381.2 | 371.7 | |
Acquisitions | 91.6 | 0 | |
Foreign exchange translation | -51.8 | 9.5 | |
Balance of goodwill, end of year | $421 | $381.20 | $371.70 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | $139.90 | $122.50 | $113.70 |
Additions | 66.4 | 15.7 | 13.3 |
Disposals | -17.7 | -2.4 | -4.5 |
Foreign exchange translation | -26.1 | 4.1 | 0 |
Gross intangible assets, end of year | 162.5 | 139.9 | 122.5 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | -95.6 | -83.1 | -78 |
Amortization expense | -21.8 | -10.6 | -9.5 |
Disposals | 17.7 | 2.3 | 4.3 |
Foreign exchange translation | 15.6 | -4.2 | 0.1 |
Accumulated amortization, end of year | -84.1 | -95.6 | -83.1 |
Net intangible assets | 78.4 | 44.3 | |
Capitalized Software [Member] | |||
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | 111.4 | 95.5 | 90.9 |
Additions | 12.7 | 13.5 | 8.7 |
Disposals | -17.7 | -1.9 | -4.5 |
Foreign exchange translation | -14.5 | 4.3 | 0.4 |
Gross intangible assets, end of year | 91.9 | 111.4 | 95.5 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | -81.8 | -72.8 | -70.5 |
Amortization expense | -9.1 | -7.5 | -6.6 |
Disposals | 17.7 | 1.9 | 4.3 |
Foreign exchange translation | 10.7 | -3.4 | 0 |
Accumulated amortization, end of year | -62.5 | -81.8 | -72.8 |
Net intangible assets | 29.4 | ||
Other Intangible Assets [Member] | |||
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | 28.5 | 27 | 22.8 |
Additions | 53.7 | 2.2 | 4.6 |
Disposals | 0 | -0.5 | 0 |
Foreign exchange translation | -11.6 | -0.2 | -0.4 |
Gross intangible assets, end of year | 70.6 | 28.5 | 27 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | -13.8 | -10.3 | -7.5 |
Amortization expense | -12.7 | -3.1 | -2.9 |
Disposals | 0 | 0.4 | 0 |
Foreign exchange translation | 4.9 | -0.8 | 0.1 |
Accumulated amortization, end of year | -21.6 | -13.8 | -10.3 |
Net intangible assets | 49 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | 21 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | $23 |
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, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Post-retirement benefits, long-term liability | $595 | $438.60 |
Reconciliation of benefit obligation: [Roll Forward] | ||
Benefit payments | -29.1 | |
Reconciliation of fair value of plan assets: [Roll Forward] | ||
Benefit payments | -29.1 | |
Cumulative amounts recognized in other Comprehensive Income consists of: | ||
Amount in other comprehensive income expected to be recognized | 17.4 | |
Foreign Pension Plans [Member] | ||
Reconciliation of benefit obligation: [Roll Forward] | ||
Obligation at beginning of year | 606.2 | 585.4 |
Service cost | 12.4 | 12.7 |
Interest cost | 21.7 | 20.8 |
Participant contributions | 0.2 | 0.2 |
Actuarial loss / (gain) | 248.6 | -7.7 |
Benefit payments | -31 | -28.4 |
Foreign exchange effects | -83.9 | 22.3 |
Other | 3.6 | 0.9 |
Obligation at end of year | 777.8 | 606.2 |
Reconciliation of fair value of plan assets: [Roll Forward] | ||
Fair value of plan assets at beginning of year | 178.1 | 172.1 |
Actual return on assets | 24.7 | 3.7 |
Employer contributions | 29.1 | 27.4 |
Participant contributions | 0.2 | 0.2 |
Benefit payments | -31 | -28.4 |
Foreign exchange effects | -11.9 | 4 |
Other expenses | -1.1 | -0.9 |
Fair value of plan assets at end of year | 188.1 | 178.1 |
Funded Status at December 31 | -589.7 | -428.1 |
Amounts recognized in balance sheet: | ||
Noncurrent assets | 13.7 | 20.1 |
Current liabilities | -20.1 | -21.9 |
Noncurrent liabilities | -583.3 | -426.3 |
Net amounts recognized in balance sheet: | -589.7 | -428.1 |
Cumulative amounts recognized in other Comprehensive Income consists of: | ||
Prior service cost | 1.9 | 0 |
Net actuarial loss | 340.5 | 147 |
Total (before tax effects) | 342.4 | 147 |
Health & Life Ins. Benefits [Member] | ||
Reconciliation of benefit obligation: [Roll Forward] | ||
Obligation at beginning of year | 14 | 15 |
Service cost | 0.1 | 0.1 |
Interest cost | 0.5 | 0.5 |
Participant contributions | 0.3 | 0.4 |
Actuarial loss / (gain) | 2.6 | 0 |
Benefit payments | -4.2 | -2 |
Foreign exchange effects | 0 | 0 |
Other | 0 | 0 |
Obligation at end of year | 13.3 | 14 |
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 | 3.9 | 1.6 |
Participant contributions | 0.3 | 0.4 |
Benefit payments | -4.2 | -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 | -13.3 | -14 |
Amounts recognized in balance sheet: | ||
Noncurrent assets | 0 | 0 |
Current liabilities | -1.6 | -1.7 |
Noncurrent liabilities | -11.7 | -12.3 |
Net amounts recognized in balance sheet: | -13.3 | -14 |
Cumulative amounts recognized in other Comprehensive Income consists of: | ||
Prior service cost | 0.1 | 0.2 |
Net actuarial loss | 9.5 | 7.2 |
Total (before tax effects) | $9.60 | $7.40 |
Postretirement_Benefits_Pensio
Post-retirement Benefits (Pension Plans with Accumulated Benefit Obligations in Excess of Assets) (Details) (Foreign Pension Plans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $692.40 | $545.80 |
Accumulated benefit obligations in excess of plan assets | $547.70 | $390.90 |
Postretirement_Benefits_Total_
Post-retirement Benefits (Total Post-Retirement Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan cost | $32.60 | $31.90 | $21.20 |
Foreign Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 12.4 | 12.7 | |
Interest cost on the projected benefit obligation | 21.7 | 20.8 | |
Defined benefit plan cost | 31.6 | 30.9 | 20.2 |
Pension Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 12.3 | 12.7 | 9.2 |
Interest cost on the projected benefit obligation | 21.6 | 20.8 | 22.3 |
Less assumed return on plan assets | -8.1 | -8.8 | -8.6 |
Amortization of prior service cost | -0.1 | 0.1 | -0.1 |
Amortization of net loss | 5.9 | 6.1 | 1.7 |
Plan amendments | 0 | 0 | -4.3 |
Defined benefit plan cost | 31.6 | 30.9 | 20.2 |
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 | 0.5 | |
Interest and service cost on projected benefit obligation | 0.6 | 0.6 | 0.6 |
Amortization of net loss | 0.4 | 0.4 | 0.4 |
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, 2014 | Dec. 31, 2013 | |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.43% | 3.70% |
Salary growth | 3.03% | 3.18% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.71% | 3.63% |
Salary growth | 3.18% | 3.22% |
Expected return on plan assets | 4.27% | 5.38% |
Health & Life Ins. Benefits [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.50% | 4.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 4.00% | 3.25% |
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, 2014 | Dec. 31, 2013 |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 28.00% | 22.00% |
Target Allocation Percentage, Equity Securities | 28.00% | 24.00% |
Corporate debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 11.00% | 24.00% |
Target Allocation Percentage, Equity Securities | 11.00% | 71.00% |
Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 46.00% | 46.00% |
Target Allocation Percentage, Equity Securities | 46.00% | 0.00% |
Investments in collective foundation [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 14.00% | 0.00% |
Target Allocation Percentage, Equity Securities | 14.00% | 0.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 1.00% | 8.00% |
Target Allocation Percentage, Equity Securities | 1.00% | 5.00% |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 188.1 | 178.1 |
Fair Value, Inputs, Level 1 [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 52.7 | 40 |
Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 20.7 | 42.5 |
Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 2.1 | 13.4 |
Fair Value, Inputs, Level 2 [Member] | Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 87 | 82.2 |
Fair Value, Inputs, Level 2 [Member] | Investments in collective foundation [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 25.6 | 0 |
Postretirement_Benefits_Expect
Post-retirement Benefits (Expected Future Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Domestic plans without subsidy [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2014 | $1.70 |
2015 | 1.5 |
2016 | 1.4 |
2017 | 1.3 |
2018 | 1.2 |
2019-2023 | 4.5 |
Foreign Pension Plans [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2014 | 26.8 |
2015 | 26.9 |
2016 | 26.5 |
2017 | 26.6 |
2018 | 26.2 |
2019-2023 | $131.40 |
Postretirement_Benefits_Health
Post-retirement Benefits (Health Care Cost Trend Rate Assumption) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Weighted average annual assumed rate of increase in the health care cost trend rate | 6.80% | 7.00% |
Weighted average annual assumed rate of increase in health care cost trend rate for next fiscal year | 6.50% | |
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 | $0.80 | |
Effect on the health care component of accumulated post-retirement obligation, one percentage point decrease | -0.7 | |
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 | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 08, 2011 | Dec. 17, 2014 | |
Debt Instrument [Line Items] | ||||
Current Fiscal Year End Date | -19 | |||
Document Period End Date | 31-Dec-14 | |||
Balance outstanding | $306,000,000 | $47,000,000 | ||
Aggregate interest rate on loan drawings | 1.04% | |||
Loans payable to banks | 8,100,000 | 40,100,000 | ||
Cash receipts from bank loans | 36,400,000 | |||
Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Balance outstanding | 900,000 | 1,200,000 | ||
Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings from banks | 9,200,000 | 40,100,000 | ||
Credit Facility Expiring in 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Multi-currency revolving credit facility | 500,000,000 | 500,000,000 | ||
Balance outstanding | 47,000,000 | |||
Maximum secured indebtedness of subsidiaries | 150,000,000 | |||
Incremental ability to borrow | 193,100,000 | 351,800,000 | ||
Credit Facility Expiring in 2016 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.80% | |||
Credit Facility Expiring in 2016 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.55% | |||
Credit Facility Expiring in 2016 [Member] | Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Multi-currency revolving credit facility | 50,000,000 | |||
Unused letters of credit | 49,100,000 | |||
Balance outstanding | 1,200,000 | |||
Credit Facility Expiring in 2016 [Member] | Swingline Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Multi-currency revolving credit facility | 50,000,000 | |||
Unused letters of credit | 50,000,000 | |||
Credit Facility Expiring in 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility initiation date | 8-Jul-11 | |||
Multi-currency revolving credit facility | 400,000,000 | |||
Term of credit facility, years | 5 years | |||
Expiration date | 1-Sep-18 | |||
Balance outstanding | 206,000,000 | |||
Aggregate interest rate on loan drawings | 0.97% | |||
Credit Facility Expiring in 2018 [Member] | Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Balance outstanding | 900,000 | |||
Credit Facility Expiring in 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility initiation date | 17-Dec-14 | |||
Multi-currency revolving credit facility | 100,000,000 | |||
Term of credit facility, years | 5 years | |||
Expiration date | 17-Dec-19 | |||
Balance outstanding | 100,000,000 | 0 | ||
Aggregate interest rate on loan drawings | 0.81% | 0.00% | ||
Credit Facility Expiring in 2019 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.45% | |||
Credit Facility Expiring in 2019 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Credit Facility Expiring in 2019 [Member] | Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Balance outstanding | 0 | 0 | ||
Long-term Debt [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings from banks | $1,100,000 |
Warranties_Guarantees_Commitme2
Warranties, Guarantees, Commitments and Contingencies (Narrative) (Details) | 0 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 16, 2013 | Aug. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 23, 2010 | Jun. 23, 2010 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Tax Litigation Claims [Member] | Letters of Credit [Member] | Performance Guarantee [Member] | Other Items [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Guarantor Obligations [Line Items] | |||||||||||
Standard warranty period | 2 years | ||||||||||
Future Minimum Rental Commitments [Abstract] | |||||||||||
2014 | $18.90 | ||||||||||
2015 | 13.4 | ||||||||||
2016 | 11.3 | ||||||||||
2017 | 8.9 | ||||||||||
2018 | 8.5 | ||||||||||
Thereafter | 12.2 | ||||||||||
Total future minimum rental commitments | 73.2 | ||||||||||
Operating leases, net rental expense | 20.4 | 18.9 | 19.6 | ||||||||
Bank guarantees | 49.9 | ||||||||||
Uncollateralized bank guarantees | 43.9 | 0.9 | 0.7 | 4.4 | |||||||
Pledged inventory and receivables | 15.1 | ||||||||||
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 | $4.50 | $9.20 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $27.10 | $25.40 | $30.20 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance of warranty costs accrued, beginning of period | 51.6 | 55.2 | 52.6 |
Warranty claims settled | -28 | -30.5 | -28.4 |
Foreign exchange translation effects | -5.5 | 1.5 | 0.8 |
Balance of warranty costs accrued, end of period | 45.2 | 51.6 | 55.2 |
Current liability, included in current portion of warranties | 25.8 | 29.8 | 33.8 |
Long-term liability, included in other liabilities | 19.4 | 21.8 | 21.4 |
Product Warranty Expense | $24.90 | $21.40 | $27.10 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income before income taxes: | |||||||||||
Domestic | $49.80 | $94.40 | $77.20 | ||||||||
Foreign | 307 | 546.5 | 258.9 | ||||||||
Income before income taxes | 79.3 | 94 | 95.8 | 87.7 | 90.5 | 95.5 | 84.2 | 370.8 | 356.8 | 640.9 | 336.1 |
Current: | |||||||||||
Domestic | 18 | 11.4 | -6.2 | ||||||||
Foreign | 33.1 | 32.2 | 32.7 | ||||||||
Current (benefit) / provision for income taxes | 51.1 | 43.6 | 26.5 | ||||||||
Deferred: | |||||||||||
Domestic | 3 | 101.7 | 0.1 | ||||||||
Foreign | 1.5 | -166.3 | -3 | ||||||||
Deferred (benefit) / provision for income taxes | 4.5 | -64.6 | -2.9 | ||||||||
Total provision/(benefit) | $12.40 | $9.50 | $17.90 | $15.80 | $8 | $9.70 | $8.20 | ($46.80) | $55.60 | ($21) | $23.60 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Actual Income Tax Expense to Statutory Federal Rate) (Details) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 16, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Unrecognized Tax Benefit Associated With European Commission Fine | $116.30 | ||||||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||||
Tax provision at statutory rate | 124.9 | 224.3 | 117.4 | ||||||||||||
State income taxes | 0.7 | ||||||||||||||
Separation related taxes and contingencies | 0 | 0 | 2.2 | ||||||||||||
Foreign earnings taxed at other than 35% | -82 | -93.9 | -71.9 | ||||||||||||
Foreign earnings taxed at other than 35% | -1.1 | -261.9 | 109.8 | ||||||||||||
(Decrease)/increase in valuation allowance | -3.6 | 107.4 | 0 | ||||||||||||
EC fine tax contingency | 0 | 0 | -116.3 | ||||||||||||
Tax contingency accruals | 3.3 | -0.4 | -21.9 | 18.8 | |||||||||||
Equity Compensation | 4.8 | 4.4 | 5 | ||||||||||||
Other, net | 8.6 | -0.9 | -0.7 | ||||||||||||
Total provision/(benefit) | 12.4 | 9.5 | 17.9 | 15.8 | 8 | 9.7 | 8.2 | -46.8 | 55.6 | -21 | 23.6 | ||||
Effective income tax rate | 15.60% | -3.30% | |||||||||||||
Foreign earnings repatriated | 15.1 | ||||||||||||||
Unremitted foreign earnings | 300 | ||||||||||||||
Change in enacted tax rate | 2.4 | 2.4 | |||||||||||||
Decrease in valuation allowance | 178.4 | ||||||||||||||
Valuation allowances | 9 | 9 | 10.1 | ||||||||||||
European Commission fine reduction plus interest | 209.8 | ||||||||||||||
Tax benefit from tax adjustments and settlements | 116.3 | 24.8 | |||||||||||||
Income tax holiday and incentive tax credits, aggregate dollar amount | $15.60 | $7.80 | $6.50 | ||||||||||||
Income tax holiday and incentive tax credits, tax benefits per share | $0.26 | $0.12 | $0.10 |
Income_Taxes_Gross_Deferred_Ta
Income Taxes (Gross Deferred Tax Liabilities and Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax liabilities: | ||
Basis difference in minority interest | $10.50 | $11.90 |
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 19 | 21 |
Unremitted foreign earnings | 103.3 | 107.8 |
Intangibles | 16.8 | 3.4 |
Deferred tax liabilities | 149.6 | 144.1 |
Deferred tax assets: | ||
Foreign net operating losses and tax credits | 170.1 | 195.7 |
Post-retirement and other employee benefits | 105.4 | 43.2 |
Intangibles | 34 | 35.7 |
Inventory | 1.1 | 0.8 |
Warranties | 1.6 | 1.4 |
Other | 6.7 | 16.5 |
Deferred tax assets | 318.9 | 293.3 |
Decrease in valuation allowance | 178.4 | |
Valuation allowances | -9 | -10.1 |
Net deferred tax assets | 160.3 | 139.1 |
Net operating loss carry forwards (NOLs) | 491 | |
Net operating loss carry forwards (NOLs) with unlimited life | 455.6 | |
Operating loss carryforwards, remaining life maximum | 7 years | |
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 | 9 | |
Belgium | ||
Deferred tax assets: | ||
Net operating loss carry forwards (NOLs) with unlimited life | $27.90 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Additions for tax positions related to current year | $2.20 | $0 | $0 | ||
Additions for tax positions related to prior years | 25.8 | 1.2 | 7.5 | ||
Reductions for tax positions related to current year | 0 | 0 | -172.4 | ||
Cash settlements | 0 | -2 | -1.5 | ||
Expirations of statute of limitations | -25.8 | -2 | -2.6 | ||
Expirations of statute of limitations | -4 | ||||
Foreign exchange | 0 | 0.2 | 1.3 | ||
Unrecognized tax benefits, Ending Balance | 41.9 | 41.5 | 39.3 | 41.9 | 209.6 |
Unrecognized tax benefits excluding European Commission fine | 48.5 | ||||
Interest related to unrecognized tax benefits | 1 | 0.3 | 1.1 | ||
Accrued interest | 5.7 | 7 | 6 | 5.7 | |
Other Tax Expense (Benefit) | 3.6 | ||||
Decrease in valuation allowance | 178.4 | ||||
Settlement of foreign tax audit, deduction accepted | 342.3 | ||||
Unrecognized tax benefit, removed from disclosure | 29 | ||||
Unrecognized tax benefits that would have an impact | 41.9 | 41.5 | 39.3 | 41.9 | |
Unremitted foreign earnings | 300 | ||||
Unremitted earnings permanently reinvested outside the U.S. | $800 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Examination [Line Items] | |||
Current Fiscal Year End Date | -19 | ||
Indemnification Liabilities Reversed | $4.30 | $8.80 | $1.20 |
Indemnification Liabilities Paid | 0.7 | ||
Document Fiscal Year Focus | 2014 | ||
Tax indemnification liability to former affiliate | 4.5 | 9.2 | |
Indemnification Liabilities Current | 3.9 | ||
Indemnification liabilities non-current | 0.6 | ||
Estimated total amount of the contingency | 42.8 | ||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Number of equity method investments | 3 | ||
Investments in and advances to unconsolidated joint ventures | $19.60 | $19.90 | |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Dividends from unconsolidated joint ventures | 23.4 | 18.3 | 15.2 |
Meritor WABCO [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Investments in and advances to unconsolidated joint ventures | 15.9 | ||
WABCO Sales to | 218.7 | 176 | 180.7 |
WABCO Purchases from | 0.7 | 0 | 0 |
WABCO Receivables from | 32 | 28.3 | |
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 | 3.3 | ||
WABCO Sales to | 4.5 | 5.7 | 6.7 |
WABCO Purchases from | 0 | 0 | 0 |
WABCO Receivables from | 1.1 | 1.1 | |
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 | 0.4 | ||
WABCO Sales to | 0.2 | 0.2 | 0.2 |
WABCO Purchases from | 0.3 | 0.3 | 0.2 |
WABCO Receivables from | 0 | 0.2 | |
WABCO Payables to | 0 | 0.6 | |
Sanwa-Seiki [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 90.00% | ||
WABCO Sales to | 0 | 0 | 0.2 |
WABCO Purchases from | 31.3 | 33.7 | 42.9 |
Cummins [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 70.00% | ||
WABCO Sales to | 86 | 72.9 | 75.8 |
WABCO Purchases from | 0 | 0 | 0 |
FUWA [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 70.00% | ||
WABCO Sales to | 6.3 | 3 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $2,851 | $2,720.50 | $2,477.40 |
Long-lived Assets | 961.9 | 889.4 | 842.4 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 383.5 | 296.2 | 274.5 |
Long-lived Assets | 22 | 20.2 | 14.1 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,668.50 | 1,666.30 | 1,496.70 |
Long-lived Assets | 727.4 | 655.7 | 607.8 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 698.7 | 731.3 | 657.6 |
Long-lived Assets | 284.9 | 323.7 | 303.2 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 89.8 | 99.5 | 89 |
Sweden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 206.8 | 215.4 | 201.7 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 127.6 | 110.8 | 93.7 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 799 | 758 | 706.2 |
Long-lived Assets | 212.5 | 213.5 | 220.5 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 105.4 | 100.5 | 116.1 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 221.8 | 192.6 | 152.3 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 156.7 | 180.9 | 135.3 |
India | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 127.1 | 106.1 | 147 |
Long-lived Assets | 97.2 | 97.7 | 104.1 |
OEM [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,099.40 | 2,043.50 | 1,847.40 |
Aftermarket [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $751.60 | $677 | $630 |
Geographic Concentration Risk [Member] | Sales [Member] | Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 19.00% | 18.00% | 20.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 59.00% | 61.00% | 60.00% |
Daimler [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 11.00% | 12.00% | 11.00% |
Volvo [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 10.00% |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Other non-operating expense, net [Member] | Other non-operating expense, net [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | |
Derivative [Line Items] | ||||||
Notional amount of derivative | $94.50 | € 77.80 | $85.30 | € 61.80 | ||
Average duration of derivatives | 1 month | 1 month | ||||
Derivative instruments, net gain | $2.20 | ($2.20) |
Business_Combinations_Details
Business Combinations (Details) | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | 16-May-14 | 16-May-14 | Feb. 12, 2014 | Feb. 12, 2014 | Aug. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Feb. 12, 2014 | Sep. 13, 2012 |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | Tavares [Member] | Tavares [Member] | Ephicas [Member] | |
USD ($) | USD ($) | ||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||||||||||
Contractual purchase price | $151 | € 111.10 | |||||||||
Cash acquired from acquisition | 15.3 | ||||||||||
Payments for business combination | 135.9 | 99.9 | 130.2 | 95.8 | |||||||
Percentage of voting interest held | 96.84% | 96.84% | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2.1 | ||||||||||
Other Payments to Acquire Businesses | 5.7 | 4.2 | 4.6 | ||||||||
Goodwill | $421 | $381.20 | $371.70 | $91.60 | $3.60 | ||||||
Current Fiscal Year End Date | -19 |
Business_Combinations_Schedule
Business Combinations Schedule of Recognized Identified Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 12, 2014 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $421 | $381.20 | $371.70 | |
Tavares [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 25.3 | |||
Trade receivables | 15.6 | |||
Trade payables | -5.4 | |||
Debt | -4.5 | |||
Deferred tax liabilities | -13.9 | |||
Property, plant and equipment | 3.5 | |||
Intangible assets | 51.1 | |||
Other assets purchased and liabilities assumed, net | -6.6 | |||
Identifiable net assets acquired | 65.1 | |||
Goodwill | 91.6 | |||
Noncontrolling interest | -5.7 | |||
Total purchase price allocation | $151 |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) | 0 Months Ended | |||
In Millions, unless otherwise specified | 16-May-14 | 16-May-14 | Aug. 30, 2013 | Aug. 29, 2013 |
USD ($) | EUR (€) | USD ($) | ||
Business Acquisition [Line Items] | ||||
Other Payments to Acquire Businesses | $5.70 | € 4.20 | $4.60 | |
Ownership percentage | 100.00% | 70.00% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $679.10 | $707.30 | $735 | $729.50 | $677.10 | $678.20 | $644.70 | $720.50 | $2,851 | $2,720.50 | $2,477.40 |
Cost of sales | 474.9 | 487.3 | 505.3 | 511.6 | 477.6 | 471.6 | 447 | 515.2 | 1,979.30 | 1,911.40 | 1,737.20 |
Gross Profit | 204.2 | 220 | 229.7 | 217.9 | 199.5 | 206.6 | 197.7 | 205.3 | 871.7 | 809.1 | 740.2 |
Income before income taxes | 79.3 | 94 | 95.8 | 87.7 | 90.5 | 95.5 | 84.2 | 370.8 | 356.8 | 640.9 | 336.1 |
Income tax expense / (benefit) | 12.4 | 9.5 | 17.9 | 15.8 | 8 | 9.7 | 8.2 | -46.8 | 55.6 | -21 | 23.6 |
Net income attributable to Company | 65.1 | 82 | 75 | 69.4 | 80 | 83.2 | 73.7 | 416.3 | 291.5 | 653.2 | 302 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $1.11 | $1.38 | $1.24 | $1.13 | $1.28 | $1.33 | $1.17 | $6.73 | $4.87 | $10.46 | $4.73 |
Diluted (in dollars per share) | $1.10 | $1.37 | $1.23 | $1.12 | $1.26 | $1.31 | $1.15 | $6.65 | $4.81 | $10.31 | $4.62 |
Unremitted foreign earnings | 300 | ||||||||||
Change in valuation allowance | -178.4 | ||||||||||
Valuation allowances | ($9) | ($9) | ($10.10) |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for doubtful accounts receivable, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts receivable | |||
Reserve deducted from assets: | |||
Balance Beginning of Period | $4,999 | $3,581 | $3,425 |
Additions | 384 | 1,346 | 418 |
Deductions | -817 | -66 | -314 |
Foreign Currency Translation Effects | -505 | 138 | 52 |
Balance End of Period | $4,061 | $4,999 | $3,581 |