Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Transition Report | false | ||
Entity Registrant Name | WABCO Holdings Inc. | ||
Country Region | 41 | ||
City Area Code | 315 | ||
Local Phone Number | 813-300 | ||
Entity Central Index Key | 0001390844 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-33332 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 51,270,513 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 6.8 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8481962 | ||
Entity Address, Address Line One | 1220 Pacific Drive | ||
Entity Address, City or Town | Auburn Hills | ||
Entity Address, Postal Zip Code | 48326-3511 | ||
Entity Address, State or Province | MI | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Trading Symbol | WBC | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Other Address [Member] | |||
Entity Information [Line Items] | |||
Entity Address, Address Line One | 1 Giacomettistrasse | ||
Entity Address, City or Town | Bern | ||
Entity Address, Country | CH | ||
Entity Address, Postal Zip Code | 3000-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Sales | $ 3,421,400 | $ 3,831,000 | $ 3,304,200 |
Cost of sales | 2,429,400 | 2,658,500 | 2,290,400 |
Gross Profit | 992,000 | 1,172,500 | 1,013,800 |
Costs and expenses: | |||
Selling and administrative expenses | 463,200 | 476,000 | 411,200 |
Product engineering expenses | 193,200 | 184,400 | 147,000 |
Other operating (income)/expense, net | (1,500) | (400) | 20,600 |
Operating income / (loss) | 337,100 | 512,500 | 435,000 |
Equity income of unconsolidated joint ventures, net | 2,000 | 1,000 | 23,100 |
Gain on remeasurement of equity investments | 0 | 0 | 247,700 |
Other non-operating expense, net | (26,200) | (42,300) | (37,200) |
Interest expense, net | (100) | (7,500) | (16,000) |
Income before income taxes | 312,800 | 463,700 | 652,600 |
Income tax expense | 53,400 | 49,300 | 229,700 |
Net income including noncontrolling interests | 259,400 | 414,400 | 422,900 |
Less: net income attributable to noncontrolling interests | 13,600 | 20,300 | 16,800 |
Net income attributable to Company | $ 245,800 | $ 394,100 | $ 406,100 |
Net income attributable to Company per common share | |||
Basic (in dollars per share) | $ 4.80 | $ 7.46 | $ 7.53 |
Diluted (in dollars per share) | 4.78 | 7.43 | 7.50 |
Cash dividends per share of common stock (in dollars per share) | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding | |||
Basic (in shares) | 51,242,913 | 52,846,962 | 53,903,938 |
Diluted (in shares) | 51,398,548 | 53,062,573 | 54,139,815 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $ 259.4 | $ 414.4 | $ 422.9 |
Currency translation adjustments | (9.5) | (71.2) | 154.2 |
Pensions and post-retirement benefit plan adjustments, net | (48.3) | 5 | (38) |
Unrealized gains on hedges, net | 0 | 0.8 | 0.2 |
Unrealized losses on investments, net | 0 | 0 | (0.1) |
Total other comprehensive (loss)/income | (57.8) | (65.4) | 116.3 |
Comprehensive income | 201.6 | 349 | 539.2 |
Less: Comprehensive income attributable to noncontrolling interests | 12.1 | 14.4 | 20.3 |
Comprehensive income attributable to Company | $ 189.5 | $ 334.6 | $ 518.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 891.8 | $ 503.8 |
Short-term investments | 67.6 | 135.8 |
Accounts receivable, net | 523.3 | 611.5 |
Inventories, net | 292.9 | 319.1 |
Guaranteed notes receivable | 35 | 44.1 |
Investments in repurchase agreements | 0 | 85.8 |
Other current assets | 103.7 | 96.8 |
Total current assets | 1,914.3 | 1,796.9 |
Property, plant and equipment, less accumulated depreciation | 593 | 553.6 |
Operating lease, right of use asset | 100.8 | 0 |
Goodwill | 802.5 | 809.4 |
Long-term future income tax benefits | 275 | 236.7 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 11.5 | 10.4 |
Intangible assets, net | 226.9 | 246.6 |
Other assets | 113.1 | 85 |
TOTAL ASSETS | 4,037.1 | 3,738.6 |
Current liabilities: | ||
Loans payable to banks | 0 | 0 |
Accounts payable | 185 | 232.5 |
Accrued payroll | 108.3 | 111.2 |
Current portion of warranties | 28.1 | 23.3 |
VAT payable | 11.4 | 15.7 |
Accrued expenses | 68.7 | 73.8 |
Promotion and customer incentives | 24.8 | 26.6 |
Accrued income tax | 24.1 | 28.2 |
Other accrued liabilities | 121.1 | 84.7 |
Total current liabilities | 571.5 | 596 |
Long-term debt | 828.3 | 845.2 |
Operating lease, liability | 74.2 | 0 |
Post-retirement benefits | 821.8 | 716 |
Deferred tax liabilities | 71.2 | 75.4 |
Long-term income tax liabilities | 156.9 | 156.8 |
Other liabilities | 77.1 | 84 |
Total liabilities | 2,601 | 2,473.4 |
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: 79,147,135 in 2019; 79,018,266 in 2018; and shares outstanding: 51,267,324 in 2019; 51,364,925 in 2018 | 0.8 | 0.8 |
Capital surplus | 902.1 | 898.5 |
Treasury stock, at cost: 27,879,811 shares in 2019; 27,653,341 shares in 2018 | (2,186.3) | (2,159.3) |
Retained earnings | 3,212.3 | 2,960.8 |
Accumulated other comprehensive loss | (588.7) | (524) |
Total shareholders' equity | 1,340.2 | 1,176.8 |
Noncontrolling interests | 95.9 | 88.4 |
Total equity | 1,436.1 | 1,265.2 |
TOTAL LIABILITIES AND EQUITY | $ 4,037.1 | $ 3,738.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
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 (in shares) | 79,147,135 | 79,018,266 |
Common stock, shares outstanding (in shares) | 51,267,324 | 51,364,925 |
Treasury stock, shares (in shares) | 27,879,811 | 27,653,341 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income including noncontrolling interests | $ 259.4 | $ 414.4 | $ 422.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 95.1 | 95.8 | 84.8 |
Impairment of nonmarketable equity securities | (2.2) | 5.5 | 0 |
Amortization of intangibles | 28.5 | 28.9 | 22.3 |
Equity in earnings of unconsolidated joint ventures, net of dividends received | 0.3 | (1) | 0.8 |
Non-cash stock compensation | 9.2 | 20 | 16.4 |
Non-cash interest expense and debt issuance cost amortization | 9.9 | 15.4 | 23.1 |
Deferred income tax benefit | (19.4) | (23.6) | (48.2) |
Post-retirement benefit expense | 64.7 | 62.2 | 57.5 |
Gain on remeasurement of equity investments | 0 | 0 | (247.7) |
Foreign exchange gains | 0.3 | (2.3) | (6.8) |
Unrealized (gain)/loss on revaluation of foreign currency forward contracts | (0.4) | 2.5 | (1.7) |
Loss on debt extinguishment | 0 | 2.3 | 0 |
Other | 1.7 | 2.8 | 0.6 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 79.2 | 27.5 | (64.3) |
Inventories | 21.2 | (13.4) | (16) |
Accounts payable | (43.2) | (23.8) | 5.4 |
Other accrued liabilities and taxes | (8.6) | (66.8) | 12.6 |
Other current and long-term assets | (27.8) | (40.5) | 27.4 |
Other long-term liabilities | (4.1) | (11.5) | 157.1 |
Post-retirement benefit payments | (23.9) | (25.9) | (24.7) |
Net cash provided by operating activities | 439.9 | 468.5 | 421.5 |
Investing activities: | |||
Purchases of property, plant and equipment | (144.8) | (118.2) | (104.7) |
Investments in capitalized software | (8.8) | (13.9) | (5.8) |
Purchases of short-term investments and repurchase agreements | (746.5) | (687.2) | (535.2) |
Sales and maturities of short-term investments and repurchase agreements | 891.9 | 585.2 | 548.4 |
Cost of preferred stock investment | 0 | 0 | (10) |
Return of investment in unconsolidated joint venture | 0 | 0 | 1.8 |
Investment in unconsolidated joint ventures | (1.8) | (3.8) | 0 |
Acquisitions, net | (0.4) | (8.6) | (382.7) |
Net cash used in investing activities | (10.4) | (246.5) | (488.2) |
Financing activities: | |||
Borrowings of long-term debt | 0 | 368.5 | 25.3 |
Repayments of long-term revolving credit facilities | 0 | (500) | (25) |
Net borrowings/(repayments) of short-term debt | 0 | (385.4) | 382.5 |
Settlement of forward contract | 0 | 0 | (0.3) |
Taxes withheld and paid on employee stock award vestings | (5) | (5.1) | (4.9) |
Purchases of treasury stock | (30.6) | (300) | (120) |
Proceeds from noncontrolling interest shareholders | 2.8 | 0 | 0.6 |
Dividends to noncontrolling interest holders | (7.4) | (5.7) | (7.1) |
Proceeds from exercise of stock options | 1.2 | 0.6 | 9.5 |
Net cash (used)/provided by financing activities | (39) | (827.1) | 260.6 |
Effect of exchange rate changes on cash and cash equivalents | (2.4) | (32.2) | 85.1 |
Net increase/(decrease) in cash and cash equivalents | 388.1 | (637.3) | 279 |
Cash and cash equivalents at beginning of period | 504.2 | 1,141.5 | 862.5 |
Cash and cash equivalents at end of period | 892.3 | 504.2 | 1,141.5 |
Cash paid during the period for: | |||
Interest | 9.2 | 20 | 20 |
Income taxes | 89.1 | 109 | 64.1 |
Increase in capital expenditures included in accounts payable and other accrued liabilities | 2.4 | 13.8 | 1.8 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | |||
Cash, cash equivalents and restricted cash at end of period | $ 504.2 | $ 504.2 | $ 862.5 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non Controlling Interests |
Beginning Balance at Dec. 31, 2016 | $ 767.3 | $ 0.8 | $ 861.2 | $ (1,744.4) | $ 2,161.1 | $ (577.3) | $ 65.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 422.9 | 406.1 | 16.8 | ||||
Other comprehensive income (loss) | 116.3 | 112.8 | 3.5 | ||||
Treasury stock purchased | (120) | (120) | |||||
Stock options exercised | 9.5 | 9.5 | |||||
Treasury stock reissued | 0 | 0.9 | 3.1 | (4) | |||
Stock-based compensation | 11.6 | 11.6 | |||||
Dividends paid | (7.1) | (7.1) | |||||
Proceeds from minority interest shareholders | 0.6 | 0.6 | |||||
Ending Balance at Dec. 31, 2017 | 1,201.1 | 0.8 | 883.2 | (1,861.3) | 2,563.2 | (464.5) | 79.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 414.4 | 394.1 | 20.3 | ||||
Other comprehensive income (loss) | (65.4) | (59.5) | (5.9) | ||||
Treasury stock purchased | (300) | (300) | |||||
Stock options exercised | 0.6 | 0.6 | |||||
Treasury stock reissued | 0 | (0.2) | 2 | (1.8) | |||
Stock-based compensation | 14.9 | 14.9 | |||||
Dividends paid | (5.7) | (5.7) | |||||
Ending Balance at Dec. 31, 2018 | 1,265.2 | 0.8 | 898.5 | (2,159.3) | 2,960.8 | (524) | 88.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 259.4 | 245.8 | 13.6 | ||||
Other comprehensive income (loss) | (57.8) | (56.3) | (1.5) | ||||
Treasury stock purchased | (30.6) | (30.6) | |||||
Stock options exercised | 0.3 | 0.3 | |||||
Treasury stock reissued | 0.9 | 0 | 3.6 | (2.7) | |||
Stock-based compensation | 4.2 | 4.2 | |||||
Dividends paid | (7.4) | (7.4) | |||||
Changes in ownership of noncontrolling interests | (2) | (0.9) | (1.1) | ||||
Proceeds from minority interest shareholders | 3.9 | 3.9 | |||||
Ending Balance at Dec. 31, 2019 | $ 1,436.1 | $ 0.8 | $ 902.1 | $ (2,186.3) | $ 3,212.3 | $ (588.7) | $ 95.9 |
Description of Company
Description of Company | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Company | Description of Company WABCO Holdings Inc. and its subsidiaries (collectively "WABCO," "Company," "we," or "our") engineer, develop, manufacture and sell integrated systems controlling advanced braking, stability, suspension, steering, transmission automation, as well as air compression and processing primarily for commercial vehicles. WABCO’s largest selling products are pneumatic anti-lock braking systems (ABS), electronic braking systems (EBS), electronic stability control (ESC) systems, brake controls, automated manual transmission systems (AMT), air disc brakes and a large variety of conventional mechanical products such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. 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 primarily to two groups of customers around the world: original equipment manufacturers (OEMs) including truck and bus, trailer, car and off-highway, and commercial vehicle aftermarket distributors of replacement parts and services as well as commercial vehicle fleet operators for management solutions and services. 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. On March 28, 2019, WABCO entered into an Agreement (the Merger Agreement) and Plan of Merger with ZF Friedrichshafen AG (ZF), a stock corporation organized and existing under the laws of the Federal Republic of Germany, and Verona Merger Sub Corp., a Delaware corporation and indirect wholly owned subsidiary of ZF, pursuant to which ZF will acquire 100% of the issued and outstanding shares of WABCO common stock (the Merger). The Merger Agreement was adopted by WABCO’s shareholders at the June 27, 2019 special meeting of shareholders, whereby holders representing 68.4% of the Company’s outstanding shares voted in favor of adopting the Merger Agreement. The European Commission and the United States Department of Justice cleared the Merger on January 23, 2020. In connection with the Department of Justice's review of the Merger, WABCO is divesting the Company's steering components business, R.H. Sheppard Co., Inc., for which the Company entered into a definitive agreement to sell on January 30, 2020. The consummation of the Merger remains subject to customary closing conditions and remaining regulatory approvals. The Company has incurred $18.0 million of Merger related costs for the year ended December 31, 2019 primarily for legal and financial advisory services that are included in selling, general and administrative expenses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 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. The more significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, recoverability of long-lived assets, warranties, pension and post-retirement benefits, goodwill, income taxes, non-marketable equity investments and provisions for loss contingencies. 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 on the consolidated balance sheets. Certain amounts in the prior year's financial statement footnotes have been reclassified to conform with the current year presentation. Reportable Segment - The Company announced a new organizational structure in the prior year managed by business region, whereby the Company was in the implementation phase of this new structure including defining its revised internal reporting to the chief operating decision maker. These changes to the Company's internal reporting have been suspended due to the Merger discussed in Note 1 and the financial reporting to the Company's chief operating decision maker remains unchanged from prior year. Based on the organizational structure of the Company, as well as the nature of financial information available and reviewed by the chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that WABCO has one reportable segment as of December 31, 2019 . Foreign Currency Translation - Adjustments resulting from the translation of foreign currency denominated 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 as a component of accumulated other comprehensive loss in shareholders' equity. Accumulated other comprehensive loss also includes the effects of exchange rates on intercompany transactions of a long-term investment nature and transactions designated as a hedge of a net-investment in foreign subsidiaries. Gains or losses resulting from transactions in a currency other than the functional currency are reflected in the consolidated statements of operations as other non-operating income or expense. Revenue Recognition - The Company adopted Accounting Standards Update (ASU) 2014–09 Revenue from Contracts with Customers , together with its amendments collectively referred to as ASC 606, as of January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of the date of adoption. As a result, financial information for reporting periods beginning after January 1, 2018 are presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the accounting policy for revenue recognition prior to the adoption of ASC 606. Revenue under ASC 606 is recognized when control over a product or service is transferred to a customer. Revenue is measured at the transaction price which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods or services to the customer and excludes any amounts collected on behalf of third parties. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. The Company enters into contracts that may include both products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company generates revenue through serial production of parts in the OEM end-market and through the delivery of parts, spare parts and fleet management solutions (FMS) in the Aftermarket. Truck and bus contracts generally include Long Term Supply Agreements (LTSA) and Purchase Orders (PO) whereby the LTSA stipulates the pricing and delivery terms and is evaluated together with a PO, which identifies the quantity, timing, and the type of product to be transferred. Certain customer contracts do not always have an LTSA, in which case, the contracts are governed by the PO from the customer. Payments from customers are typically due within 60 days of invoicing but varies based on jurisdiction and local practices. The Company does not have significant financing components or payment terms greater than 12 months. In most jurisdictions where the Company operates, sales are subject to Value Added Tax (VAT). Sales are presented net of VAT in the consolidated statements of operations. Amounts billed to customers for shipping and handling costs are included in sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. OEM The sale of serial production parts to OEMs or independent distributors that do not require customization, such as most trailer parts or trailer production parts, are satisfied at a point in time as the parts are deemed to have an alternative use to the Company. Revenue is recognized when the control of the parts transfers to the customer, which is based on shipping terms. The transaction price for these parts is equal to the contracted part price of each unit and represents the standalone selling price for the part and there is no expectation of material variable consideration in the transaction price. Management does not exercise significant judgment when accounting for the sale of serial production parts that are relatively homogeneous and produced to industry standards. Certain serial production parts may require specific customization. The Company performs these customization services in order to obtain the LTSA. In some instances, the Company receives reimbursement for a portion of the pre-production cost incurred from the OEM. These reimbursements are not within the scope of ASC 606 and are accounted for under the guidance in ASC 340, Other Assets and Deferred Costs , and are offset against capitalized costs or research and development expenses depending on the terms of the contract. Revenue for serial production contracts requiring customization is recognized at a point in time as most customized serial production parts have an alternative use in that they may be sold in the aftermarket. Serial production contracts also generally do not provide for an enforceable right for full recovery under the LTSA that would be necessary for over-time revenue recognition. Revenue for serial production contracts is recognized when the control of the parts transfers to the customer based on the shipping terms. If any sales were to meet the over-time recognition criteria, the Company has elected to recognize revenue as it produces the specified units, using a “cost-to-cost” method, which is an appropriate method under ASC 606-10-50-18 to measure progress towards completion of the performance obligation to deliver the parts to the customer. The Company believes that this method better reflects its efforts to satisfy its performance obligation as the cost incurred (resources consumed, labor hours expended, time elapsed and machine hours used) is proportionate to its progress in satisfying the performance obligation. Most serial production contracts include provisions for volume discounts. In certain markets, the Company has historically provided customers with discounts not stated in the contract. These practices create a valid expectation for the customer to receive discounts on purchases. The Company considers these adjustments to the contract price as variable considerations, which it estimates based on the most likely amount approach. Volume discounts offered to serial production part customers provide for a limited number of outcomes and are typically binary in nature when determining the amount of the customer discount. Variable consideration is not constrained. Revenue recognized is limited to the amount the Company expects to receive. Amounts billed but ultimately expected to be refunded to the customer are included within promotion and customer incentives on the consolidated balance sheet. Management has exercised significant judgment as it relates to revenue recognition for serial parts production in such areas as scoping, contract identification, determining performance obligations, variable consideration, and the timing of revenue recognition. Aftermarket The Company generates revenue through the delivery of aftermarket parts and spare parts to OEMs and independent distributors, and the delivery of FMS to truck, fleet, trailer and cargo management providers. Aftermarket parts production contracts have one type of performance obligation which is the delivery of aftermarket parts and spare parts. Aftermarket products are deemed to have alternative use since they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time and revenue is recognized when the control of the parts transfers to the customer which is based on shipping terms. Aftermarket contracts may include variable consideration related to discounts, bonuses, and product returns. Variable consideration for aftermarket parts is not constrained. The Company grants its customers cash discounts and various performance bonuses and incentives. The customer usually has the right to return products to the Company in the event of defective products or excess quantity. The Company estimates the volume discounts based on the most likely amount. Discounts and incentives offered to aftermarket customers provide for a limited number of outcomes and are typically binary in nature when determining the amount of the customer discount. Amounts billed and ultimately expected to be refunded to the customer are included within customer and promotion incentives on the consolidated balance sheets. The transaction price for each individual aftermarket part or spare part is identified on the aftermarket contract and represents the standalone selling price for the part. FMS contracts generally include hardware and software and are bundled with a term-based service contract. The FMS revenue stream has multiple performance obligations that include products, services, or a combination of products and services. WABCO receives a fixed payment for the equipment and certain services and receives a variable payment for the Software-as-a-Service (SaaS) performance obligation based on the number of activated devices. Variable consideration is constrained until the amount of activated devices is known. WABCO allocates the total transaction price to the performance obligations based on the stand alone selling price (SSP) for each obligation. When the SSP does not exist, the Company estimates the SSP based on the adjusted market approach. Revenue is recognized when control of the goods or services transfers to the customer, at a point in time (based on shipping terms) for hardware and over-time as the services are provided for the remaining performance obligations. Management has exercised significant judgment as it relates to the revenue recognition for fleet management services in such areas as determining performance obligations, variable consideration, allocation of transaction price and the timing of revenue recognition. Revenue recognition prior to January 1, 2018 The Company recognizes revenue when title and risk of loss have transferred, persuasive evidence of arrangement exists, the sales price is fixed or determinable and collectibility is reasonably assured. 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 the software embedded in 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 applying the relative selling price method, the Company determines the selling price for each deliverable using vendor specific objective evidence (VSOE), if it exists, or third-party evidence (TPE) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, the best estimate of selling price (BESP) is then used for that element. 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. Rebates and sales incentives - The Company 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 $44.3 million , $51.8 million and $48.6 million in 2019 , 2018 and 2017 , respectively, in the accompanying consolidated statements of operations. Cash and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. Restricted cash balances are classified as either other current assets or other assets depending upon the nature of the restriction. Marketable Investments - Investments in marketable securities may consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company classifies its marketable investments as either short-term or long-term based on the contractual maturity of each underlying instrument, its availability of use in current operations and the Company's holding intention. Prior to the adoption of ASU 2016–01, marketable securities were accounted for as available-for-sale securities with changes in market value included in other comprehensive income. Subsequent to the adoption of ASU 2016–01 effective January 1, 2018, the net unrealized change in the market value of investments in marketable securities is recorded in other non–operating expense, net in the consolidated statement of operations. As of December 31, 2019 , the Company had marketable securities of $67.6 million classified as short-term investments and $2.8 million included in other assets on the consolidated balance sheets. As of December 31, 2018 , the Company had marketable securities of $135.8 million classified as short-term investments and $2.8 million included in other assets on the consolidated balance sheets. The Company monitors its marketable securities for indications of impairment and recognizes an impairment loss when it is determined the fair value is less than the carrying value. The Company did not recognize any impairment loss on its marketable securities during the years ended December 31, 2019 , 2018 or 2017 . Accounts receivable, net - Accounts receivable are recorded at invoiced amounts less the allowance for doubtful accounts.The Company performs ongoing credit evaluations of its customers and records an allowance to reduce receivables to the amount reasonably expected to be collected. In determining the allowance for doubtful accounts WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. The allowance for doubtful accounts was $12.3 million and $10.7 million at December 31, 2019 and 2018 , respectively. 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. In the normal course of business, the Company may discount and sell accounts receivable or exchange accounts receivable for short-term notes receivable. Accounts receivable that are sold without recourse and that meet the criteria for sale accounting under ASC 860 are excluded from accounts receivable on the consolidated balance sheets. The proceeds received from such sales are included in operating cash flows. In instances where receivables are sold with recourse, such that the Company effectively maintains control over the receivables, the Company accounts for these as secured borrowings. The expenses associated with the discounting of receivables are recorded in the consolidated statements of operations as other non-operating expense. The Company may receive customer notes in settlement of accounts receivable, primarily in the Asia Pacific region. The collection of such customer notes receivables are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. Notes receivable held by the Company that are secured by bank guarantees are classified as guaranteed note receivable. The Company also accepts unsecured notes in settlement of accounts receivable from certain customers. Notes receivable may be held by the Company until maturity, transferred to suppliers to settle liabilities, or sold to third party financial institutions in exchange for cash. As of December 31, 2019 and 2018 , there was $35.0 million and $44.1 million of guaranteed notes receivable outstanding, respectively, and $2.1 million and $2.2 million of unguaranteed notes receivable outstanding, respectively. See Note 13 for additional information on guaranteed notes receivable. Investment in Repurchase Agreements - The Company may enter into agreements to purchase securities under agreements to resell (reverse repurchase agreements). Reverse repurchase agreements are accounted for as secured financing transactions and reported as investment in repurchase agreements on the consolidated balance sheets. These agreements are recorded at their contracted resale amounts plus accrued interest. In reverse repurchase transactions, the Company takes possession of or obtains a security interest in the related securities, and has the right to sell or repledge the collateral received. Inventories, net - Inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) and first–in, first out (FIFO) methods with most inventories valued using the LIFO method. The inventories of an acquired business may be valued using either LIFO or FIFO as the Company considers the cost method that provides for the better matching of 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, net - 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 useful life of the fixed asset. WABCO assesses facilities and equipments 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 and 5 to 15 years for machinery and equipment. Tooling may be depreciated over its estimated useful life from 2 to 10 years using the straight–line method or units of production methods. Leases - The Company has operating leases for warehouses, corporate offices, cars, forklifts and certain equipment. On January 1, 2019, the Company adopted the accounting and transition guidance in ASC 842 for its operating leases resulting in the recognition of operating lease right-of-use (ROU) assets and lease liabilities on the effective date. The Company measures ROU assets throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. The lease liabilities are measured at the present value of the unpaid lease payments at the lease commencement date. Leases that include both lease and non-lease components are accounted for as a single lease component for each asset class. The minimum payments under operating leases are recognized on a straight-line basis over the lease term in the consolidated statements of operations. Operating lease expenses related to variable lease payments are recognized in cost of sales or as operating expenses in a manner consistent with the nature of the underlying lease and as the events, activities, or circumstances in the lease agreement occur. Leases with a term of less than 12 months are not recognized on the consolidated balance sheets and the related lease expenses are recognized in the consolidated statements of operations on a straight-line basis over the lease term and are recorded as operating expenses. The accounting for leases requires management to exercise judgment and make estimates in determining the applicable discount rate, lease term and payments due under a lease. If a lease does not provide an implicit rate, the Company uses the incremental borrowing rate to determine the present value of future lease payments. The incremental borrowing rate is applied to leases on a portfolio basis and is determined from a rate for borrowings with a term equal to one-half the total lease term and an amount equal to the total minimum lease payments. A Euro (EUR) and United States Dollar (USD) quote are used because these currencies represent the majority of the lease population. The lease term includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not terminate) that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) a lease controlled by the lessor. The Company has leases with a lease term ranging from 1 year to 15 years. Lease payments are generally comprised of fixed payments including in-substance fixed payments, payments that depend on an index or rate, any amounts payable under residual value guarantees, as well as any exercise price for a Company option to purchase the underlying asset if it is reasonably certain the Company will exercise the option. The Company generally does not provide residual value guarantees. The operating leases of the Company do not contain major restrictions or covenants such as those relating to dividends or additional financial obligations. Finance leases and income related to subleasing are immaterial to the consolidated financial statements. There were no lease transactions with related parties as of December 31, 2019 . Equity Method and Non-Marketable Investments - The Company uses the equity method of accounting for equity investments in instances where the Company has the ability to exercise significant influence, but does not have a controlling financial interest. The proportionate share of income or losses from investments accounted for under the equity method is recorded in the consolidated statements of operations. The carrying value of equity method investments of $11.5 million and $10.4 million at December 31, 2019 and 2018 , respectively, is reported in the consolidated balance sheets as investments in unconsolidated joint ventures, and is adjusted for the Company's proportionate share of net earnings and losses, as well as dividends. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate a loss in value of the investment may be other than temporary. This evaluation considers the investee financial condition as well as investee historical and projected results of operations and cash flows. If the actual outcomes for an investee are significantly different from projections, the Company may impair its investment. See Note 19 for additional information on equity method investments. The Company has elected the measurement alternative for its investments in equity securities without a readily determinable fair value. Under the measurement alternative, the Company measures its non-marketable investments at cost, less impairment and adjusted for observable price changes for identical or similar investments of the investee. At each reporting period the Company performs a qualitative assessment, considering impairment indicators, to evaluate whether its non–marketable investments are impaired. If the fair value of a non–marketable investment is less than its carrying value, an impairment loss is recognized in an amount equal to the difference between the fair value and the carrying value. See Note 22 for additional information on non–marketable investments. Pre-Production Costs Related to Long-Term Supply Arrangements -The Company may incur pre-production engineering and tooling related costs such as molds, dies, and tools (referred to as “tooling”), for products produced under long-term supply agreements with its customers. If the Company owns the related tooling, or if the Company does not own the tooling but receives a non-cancelable right from its customers to use the related tooling during the supply arrangement, then the costs incurred by the Company are capitalized as part of property, plant and equipment, subject to an impairment assessment, and amortized over the shorter of their useful life or the supply arrangement. If the Company has the contractual right to reimbursement for the tooling, the cost of the tooling is also capitalized as property, plant and equipment, subject to an impairment assessment, pending transfer of ownership and reimbursement from the customer. If there is an estimated loss on an arrangement to provide tooling to a customer, it is recorded in the period in which the loss is estimated and is probable. Non-reimbursable design and development costs for products to be sold under long-term supply arrangements are expensed as incurred to research, development and engineering expenses unless the cost reimbursement is contractually guaranteed in a customer contract, in which case the costs are capitalized and subsequently reduced upon lump sum or piece price recoveries from the customer. Goodwill - Goodwill represents the excess of fair value of consideration paid for an acquired entity over the fair value of the assets acquired and liabilities assumed in a business combination. Goodwill 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 test utilizes the two-step approach. The first step of the goodwill impairment test compares the 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 is performed to measure the amount of the 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 performed at the entity level as the Company operates as one reportable segment and one reporting unit. The plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. 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 each of the years presented in the consolidated statements of operations. Intangible Assets, net - Intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles that are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 20 years except for intangibles related to trade name which may have a longer useful life. WABCO also capitalizes the cost of obtaining or developing internal-use computer software, including directly related payroll costs, as capitalized software within intangible assets. Capitalized software costs are amortized on a straight-line basis over periods of up to 7 years, beginning when the software is ready for its intended use. 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 2 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, less costs recoverable from suppliers related to warranty claims. 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 net of recoveries as a percentage of sales totaled 1.0% in 2019 , 0.8% in 2018 and 0.9% in 2017 . See Note 17 for additional information on warranties. Pension and Post-retirement Benefits - Pension and 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 e |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards In June 2018, the FASB issued ASU 2018-07 Compensation-Stock Compensation (ASC 718), to simplify the accounting for share–based payments granted to nonemployees by aligning the accounting with the requirements for employee share–based compensation. ASU 2018-07 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the guidance as of January 1, 2019. There was no material impact on the consolidated financial statements resulting from the adoption of this guidance. In February 2018, the FASB issued ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASC 220). The standard allows for certain stranded tax effects within accumulated other comprehensive income (AOCI), resulting from the U.S. Tax Cuts and Jobs Act, to be reclassified to retained earnings. ASU 2018-02 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the provisions of ASU 2018–02 as of January 1, 2019. There was a one–time reclassification of $8.4 million from AOCI to retained earnings related to the remeasurement of deferred taxes recorded in other comprehensive income based on the newly enacted corporate tax rate. Refer to Note 18 for additional detail regarding the components of the reclassification. In August 2017, the FASB issued ASU 2017-12 Targeted Improvements to Accounting for Hedging Activities (ASC 815) , which aims at improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements, by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the provisions of ASU 2017–12 as of January 1, 2019. There was no material impact on the consolidated financial statements resulting from the adoption of this guidance. In February 2016, the FASB issued ASU 2016-02 and subsequent amendments, collectively known as Topic 842 Leases (ASC 842) . ASC 842 requires recognition of operating leases as lease assets and liabilities on the balance sheet and also requires the disclosure of key information about leasing arrangements. The Company has elected to adopt Topic 842 by applying the modified transition method and has elected to use the effective date of January 1, 2019 as the initial date of application. The Company elected the package of practical expedients and did not elect the use of the hindsight practical expedient. As a result, the Company will continue to account for existing leases in accordance with previous accounting guidance throughout the entire lease term including periods after the effective date. The remeasurement or modification of a lease after the effective date requires application of the new guidance. The Company has also elected the practical expedient under ASU 2018-01 Land Easement and will apply previous judgments under previous guidance as to the recognition of land easements as a lease. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use (ROU) assets of $110.1 million and operating lease liabilities of $111.2 million on the effective date. The new guidance did not have a material impact on the consolidated statement of operations or statement of cash flow. The accounting for finance leases under ASC 842 remained substantially unchanged from previous accounting guidance and are not material. See Note 12 for the disclosures required by ASC 842 and accounting policy information for leases. Pending Adoption of Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 Simplifying the Accounting for Income Taxes (ASC740). This ASU enhances and simplifies various aspects of the income tax accounting guidance in ASC 740, including requirements related to hybrid tax regimes, the tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of entities not subject to tax, the intraperiod tax allocation exception to the incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, interim-period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim-period tax accounting. This guidance is effective for the Company for annual and interim period in fiscal 2021; however, early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In November 2019, the FASB issued ASU 2019-08 Compensation - Stock Compensation (ASC 718) and Revenue from Contracts with Customers (ASC 606) . This ASU requires an entity measure and classify share-based payment awards granted to a customer by applying the guidance in ASC 718. The amount of the share-based payment award that is recorded as a reduction of the transaction price is required to be measured at the grant-date fair value in accordance with ASC 718. The amendments in this update are effective for the Company for annual and interim periods beginning in fiscal 2020. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (ASC 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU removes the requirements to disclose: amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year; the amount and timing of plan assets expected to be returned to the employer; and the effects of a one-percentage point change in assumed health care cost trend rates. The ASU requires disclosure of an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for the Company for annual and interim period in fiscal 2021. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (ASC 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU also requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This guidance is effective the Company for annual and interim periods beginning in fiscal 2020. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASC 350). The standard eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the Step 2 test) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. The guidance is effective for the Company beginning in fiscal 2020 and will be applied to any annual or interim goodwill impairment assessment after that date. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016–13 Financial Instruments–Credit Losses (Topic 326) which replaces the incurred loss model with a current expected credit loss model (CECL) for financial assets measured at amortized cost. The Company adopted this guidance effective January 1, 2020 using a modified retrospective approach and is in the process of finalizing certain key assumptions related to its CECL model and methodologies. The adoption is expected to result in an immaterial decrease to the allowance for doubtful accounts that will be recorded as a one-time adjustment, net of tax, to retained earnings. The Company does not expect the application of CECL to have a material impact on any other financial asset held at amortized cost on the transition date. The estimated impacts related to the application of CECL may change as the Company completes its implementation with the ongoing impact of CECL dependent upon changes in economic conditions and forecasts. We do not expect the pending adoption of other recently issued accounting standards to have an impact on the consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers The Company follows the guidance under ASC 606 effective January 1, 2018. Revenue under ASC 606 is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer, which is typically at a point in time. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once the uncertainty is resolved. See Note 2 for additional discussion of the revenue recognition accounting policy. Disaggregation of Revenue The following table presents product sales disaggregated by end-market: Year Ended December 31, (Amount in millions) 2019 2018 2017 OEM (1) $ 2,524.1 $ 2,868.9 $ 2,511.8 Aftermarket 897.3 962.1 792.4 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (1) Sales until the third quarter of 2017 include sales to the Meritor WABCO joint venture, which was acquired in the fourth quarter of 2017 and consolidated from that date. The following table presents product sales disaggregated by geography, based on the billing addresses of customers: Year Ended December 31, (Amount in millions) 2019 2018 2017 United States $ 785.1 $ 830.6 $ 579.6 Europe 1,656.1 1,872.6 1,705.3 Other (1) 980.2 1,127.8 1,019.3 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (1) Sales to other regions includes revenues primarily from Japan, China, Brazil and India. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to performance obligations to be satisfied in the future. Contract assets and contract liabilities were not material as of December 31, 2019 and 2018. Transaction Price Allocated to the Remaining Performance Obligations The aggregate amounts of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below presents the changes in accumulated other comprehensive loss, net of taxes and noncontrolling interests, for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, (Amount in millions) 2019 2018 2017 Foreign currency translation adjustments : Balance at beginning of period $ (243.0 ) $ (177.6 ) $ (328.7 ) Adoption of ASU 2018-02 (Note 3) (7.1 ) — — Comprehensive loss before reclassification, net (7.8 ) (65.4 ) 152.9 Remeasurement of equity investments — — (1.8 ) Balance at end of period (1) (257.9 ) (243.0 ) (177.6 ) Loss on intra-entity transactions : Balance at beginning of period (11.9 ) (11.8 ) (11.4 ) Comprehensive (loss)/income before reclassification, net (0.2 ) (0.1 ) (0.4 ) Balance at end of period (2) (12.1 ) (11.9 ) (11.8 ) Unrealized gains on investments: Balance at beginning of period — 0.1 0.2 Adjustments for the period — (0.1 ) (0.1 ) Balance at end of period — — 0.1 Unrealized losses on hedges: Balance at beginning of period — (0.8 ) (1.0 ) Comprehensive income before reclassification, net — — 0.2 Amounts reclassified to earnings, net — 0.8 — Balance at end of period — — (0.8 ) Pension and post-retirement plans: Balance at beginning of period (269.1 ) (274.4 ) (236.4 ) Adoption of ASU 2018-02 (Note 3) (1.3 ) — — Comprehensive loss before reclassification, net (66.5 ) (12.2 ) (56.2 ) Amounts reclassified to earnings, net (3) 18.2 17.5 18.2 Balance at end of period (318.7 ) (269.1 ) (274.4 ) Accumulated other comprehensive loss at end of period $ (588.7 ) $ (524.0 ) $ (464.5 ) (1) Includes an accumulated loss of $9.0 million , net of taxes of $1.0 million as of December 31, 2019 and an accumulated loss of $10.8 million , net of taxes of $10.7 million , as of December 31, 2018 related to foreign currency gains and losses on Euro-denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment. This includes the one-time adjustment of currency translation related to the adoption of ASU 2018-02 of $7.1 million disclosed above. (2) 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. (3) Consists of amortization of prior service cost and actuarial losses that are included as a component of pension expenses within other non-operating expenses. The amounts reclassified to earnings are recorded net of tax of $7.2 million , $7.0 million and $7.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. See Note 15 for further discussion. Capital Stock The following is a summary of common stock issued, treasury stock and common stock outstanding for the years ending December 31, 2019 , 2018 and 2017 . Number of Shares of Common Stock Issued Treasury Stock Outstanding Balance, December 31, 2016 78,701,273 (24,209,355 ) 54,491,918 Shares issued upon exercise of stock options 161,687 28,840 190,527 Shares issued upon vesting of RSUs 44,419 3,998 48,417 Shares issued upon vesting of PSUs 24,525 7,175 31,700 Shares issued for DSUs 5,924 — 5,924 Shares purchased for treasury — (1,033,000 ) (1,033,000 ) Balance, December 31, 2017 78,937,828 (25,202,342 ) 53,735,486 Shares issued upon exercise of stock options 14,964 12,999 27,963 Shares issued upon vesting of RSUs 36,126 8,447 44,573 Shares issued upon vesting of PSUs 21,515 6,009 27,524 Shares issued for DSUs 7,833 — 7,833 Shares purchased for treasury — (2,478,454 ) (2,478,454 ) Balance, December 31, 2018 79,018,266 (27,653,341 ) 51,364,925 Shares issued upon exercise of stock options 13,304 27,481 40,785 Shares issued upon vesting of RSUs 43,007 6,226 49,233 Shares issued for deferred compensation 9,730 — 9,730 Shares issued upon vesting of PSUs 56,521 11,823 68,344 Shares issued for DSUs 6,307 — 6,307 Shares purchased for treasury — (272,000 ) (272,000 ) Balance, December 31, 2019 79,147,135 (27,879,811 ) 51,267,324 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. Upon the exercise or vesting of an equity incentive award, the Company may reissue shares from treasury stock or may elect to issue new shares. 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. Gains on the reissuance of treasury shares are recorded as capital surplus. Losses on the reissuance of treasury shares are charged to capital surplus to the extent of previous gains recorded, and to retained earnings for any losses in excess. The Company has reissued a total of 156,361 shares from treasury stock related to certain employee vestings under its equity incentive program. On December 7, 2018, the Board of Directors authorized the repurchase of shares of common stock for an amount of $600.0 million from January 1, 2019 through December 31, 2020. During the year ended December 31, 2019 , the Company repurchased 272,000 shares for $30.6 million . As of December 31, 2019 , the Company had $569.4 million of availability remaining under this repurchase authorization. The Company suspended its share repurchase program due to the pending Merger. |
Streamlining
Streamlining | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Streamlining | Streamlining The Company accounts for employee-related streamlining charges as either a one-time benefit arrangement or an ongoing benefit arrangement as appropriate under the applicable accounting guidance. From time to time the Company also has streamlining charges that are not related to employees, such as facility exit costs. Based on the Company’s efforts to maintain our global footprint, the Company has periodically entered into streamlining programs as deemed necessary which may include workforce reductions, site closures and rotation of manufacturing footprint to low cost regions. The following is a summary of changes in the Company’s streamlining program liabilities for the years ended December 31, 2019 and 2018 . Year Ended December 31, (Amounts in millions) 2019 2018 Balance at beginning of period $ 26.4 $ 43.7 Charges 27.7 14.0 Payments (21.0 ) (30.3 ) Foreign exchange effects (0.3 ) (1.0 ) Balance at end of period $ 32.8 $ 26.4 Current liabilities, included in other accrued liabilities $ 14.7 $ 14.8 Non-current liabilities, included in other liabilities $ 18.1 $ 11.6 A summary of the streamlining costs is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Employee-related charges – cost of sales $ 19.6 $ 3.2 $ 7.1 Employee-related charges – selling and administrative 8.1 7.5 4.5 Other streamlining charges — 3.3 0.4 Total streamlining costs $ 27.7 $ 14.0 $ 12.0 Streamlining costs for the years ended December 31, 2019 , 2018 and 2017 include charges related to headcount reductions, site closures and footprint relocations including the move of the Company's corporate headquarters and the transfer of certain product lines and business processes to best cost countries including India and Poland. In 2019 , due to prevailing market conditions, the streamlining costs were primarily around workforce reduction due to reduced demand globally in addition to continued cost optimization. Year Ended December 31, (Amounts in millions) 2019 2018 2017 Headcount reduction $ 26.5 $ 8.7 $ 5.9 Site closures and footprint relocation 1.2 5.3 6.1 Total streamlining costs $ 27.7 $ 14.0 $ 12.0 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Accumulated Other Comprehensive Loss The table below presents the changes in accumulated other comprehensive loss, net of taxes and noncontrolling interests, for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, (Amount in millions) 2019 2018 2017 Foreign currency translation adjustments : Balance at beginning of period $ (243.0 ) $ (177.6 ) $ (328.7 ) Adoption of ASU 2018-02 (Note 3) (7.1 ) — — Comprehensive loss before reclassification, net (7.8 ) (65.4 ) 152.9 Remeasurement of equity investments — — (1.8 ) Balance at end of period (1) (257.9 ) (243.0 ) (177.6 ) Loss on intra-entity transactions : Balance at beginning of period (11.9 ) (11.8 ) (11.4 ) Comprehensive (loss)/income before reclassification, net (0.2 ) (0.1 ) (0.4 ) Balance at end of period (2) (12.1 ) (11.9 ) (11.8 ) Unrealized gains on investments: Balance at beginning of period — 0.1 0.2 Adjustments for the period — (0.1 ) (0.1 ) Balance at end of period — — 0.1 Unrealized losses on hedges: Balance at beginning of period — (0.8 ) (1.0 ) Comprehensive income before reclassification, net — — 0.2 Amounts reclassified to earnings, net — 0.8 — Balance at end of period — — (0.8 ) Pension and post-retirement plans: Balance at beginning of period (269.1 ) (274.4 ) (236.4 ) Adoption of ASU 2018-02 (Note 3) (1.3 ) — — Comprehensive loss before reclassification, net (66.5 ) (12.2 ) (56.2 ) Amounts reclassified to earnings, net (3) 18.2 17.5 18.2 Balance at end of period (318.7 ) (269.1 ) (274.4 ) Accumulated other comprehensive loss at end of period $ (588.7 ) $ (524.0 ) $ (464.5 ) (1) Includes an accumulated loss of $9.0 million , net of taxes of $1.0 million as of December 31, 2019 and an accumulated loss of $10.8 million , net of taxes of $10.7 million , as of December 31, 2018 related to foreign currency gains and losses on Euro-denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment. This includes the one-time adjustment of currency translation related to the adoption of ASU 2018-02 of $7.1 million disclosed above. (2) 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. (3) Consists of amortization of prior service cost and actuarial losses that are included as a component of pension expenses within other non-operating expenses. The amounts reclassified to earnings are recorded net of tax of $7.2 million , $7.0 million and $7.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. See Note 15 for further discussion. Capital Stock The following is a summary of common stock issued, treasury stock and common stock outstanding for the years ending December 31, 2019 , 2018 and 2017 . Number of Shares of Common Stock Issued Treasury Stock Outstanding Balance, December 31, 2016 78,701,273 (24,209,355 ) 54,491,918 Shares issued upon exercise of stock options 161,687 28,840 190,527 Shares issued upon vesting of RSUs 44,419 3,998 48,417 Shares issued upon vesting of PSUs 24,525 7,175 31,700 Shares issued for DSUs 5,924 — 5,924 Shares purchased for treasury — (1,033,000 ) (1,033,000 ) Balance, December 31, 2017 78,937,828 (25,202,342 ) 53,735,486 Shares issued upon exercise of stock options 14,964 12,999 27,963 Shares issued upon vesting of RSUs 36,126 8,447 44,573 Shares issued upon vesting of PSUs 21,515 6,009 27,524 Shares issued for DSUs 7,833 — 7,833 Shares purchased for treasury — (2,478,454 ) (2,478,454 ) Balance, December 31, 2018 79,018,266 (27,653,341 ) 51,364,925 Shares issued upon exercise of stock options 13,304 27,481 40,785 Shares issued upon vesting of RSUs 43,007 6,226 49,233 Shares issued for deferred compensation 9,730 — 9,730 Shares issued upon vesting of PSUs 56,521 11,823 68,344 Shares issued for DSUs 6,307 — 6,307 Shares purchased for treasury — (272,000 ) (272,000 ) Balance, December 31, 2019 79,147,135 (27,879,811 ) 51,267,324 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. Upon the exercise or vesting of an equity incentive award, the Company may reissue shares from treasury stock or may elect to issue new shares. 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. Gains on the reissuance of treasury shares are recorded as capital surplus. Losses on the reissuance of treasury shares are charged to capital surplus to the extent of previous gains recorded, and to retained earnings for any losses in excess. The Company has reissued a total of 156,361 shares from treasury stock related to certain employee vestings under its equity incentive program. On December 7, 2018, the Board of Directors authorized the repurchase of shares of common stock for an amount of $600.0 million from January 1, 2019 through December 31, 2020. During the year ended December 31, 2019 , the Company repurchased 272,000 shares for $30.6 million . As of December 31, 2019 , the Company had $569.4 million of availability remaining under this repurchase authorization. The Company suspended its share repurchase program due to the pending Merger. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [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 its common stock in 2019 , 2018 and 2017 . The issuance of stock-based compensation is intended to promote long-term financial success and increase shareholder value by providing the Company 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 employees with the interests of shareholders by affording them certain opportunities to acquire an interest in our stock. The Company believes that these incentives and opportunities will encourage its executives and other key employees to continue employment, by providing them with a competitive level of compensation that varies based on performance. In May 2018, the existing Amended and Restated WABCO Holdings Inc. 2009 Omnibus Incentive Plan (2009 Restated Omnibus Plan), previously adopted on May 28, 2009, was further amended and restated and was approved by the shareholders at the Annual Meeting of Shareholders. The Company also maintains the 2007 Omnibus Incentive Plan for awards granted prior to the establishment of the 2009 Restated Omnibus Plan. The term of the 2009 Restated Omnibus Plan extends through May 2028. The 2009 Restated Omnibus Plan further places restrictions on vesting for time–based equity incentive awards and places annual limits on incentive awards granted to any single participant. During a calendar year, no participant may receive annual and long-term cash awards that, in the aggregate, exceed $10,000,000 . In addition, 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 more than 200,000 shares or units as the case may be during any calendar year. If an award granted under 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, these shares will become available for future grant or sale under the 2009 Restated Omnibus Plan. Shares withheld by the Company to satisfy tax withholding obligations on any equity incentive award would be fully counted against the share authorization. As of December 31, 2019 , a total of 332,470 stock options, RSUs, PSUs and DSUs were outstanding and there were 2,692,070 shares remaining available for grant under the 2009 Restated Omnibus Plan. The PSUs granted as part of the Company's equity incentive awards vest 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 as 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, 2019 , the Company has accrued for compensation expense on the PSUs based on the expected achievement levels for the outstanding awards. 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 operations over the requisite service period. The estimated fair value of the award is based on the closing market price of the Company’s common stock on the date of grant. For PSUs, the grant date fair value of the number of awards expected to vest based on the Company’s best estimate of ultimate performance against the respective targets is recognized as compensation expense on a straight-line basis over the requisite vesting period of the awards. Total stock-based compensation cost recognized in selling and administrative expenses during the years ended December 31, 2019 , 2018 and 2017 was as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Stock-based compensation $ 9.2 $ 20.0 $ 16.4 The following tables summarize the stock options, RSUs, PSUs and DSUs activity for each of the periods presented: Underlying Shares Weighted - Average Exercise Price WABCO employees Trane employees Total Options Outstanding December 31, 2016 246,566 40,965 287,531 $ 45.07 Options Granted — — — $ — Options Exercised (152,419 ) (40,882 ) (193,301 ) $ 50.90 Options Forfeited (394 ) (83 ) (477 ) $ 44.15 Options Outstanding December 31, 2017 93,753 — 93,753 $ 33.04 Options Granted — — — $ — Options Exercised (29,081 ) — (29,081 ) $ 25.50 Options Forfeited (1,080 ) — (1,080 ) $ 58.85 Options Outstanding December 31, 2018 63,592 — 63,592 $ 36.05 Options Granted — — — $ — Options Exercised (44,863 ) — (44,863 ) $ 27.94 Options Forfeited — — — $ — Options Outstanding December 31, 2019 18,729 — 18,729 $ 55.49 Exercisable at December 31, 2019 18,729 — 18,729 $ 55.49 Underlying Shares Weighted - Average Grant Date Fair Value RSUs Outstanding December 31, 2016 160,310 $ 101.27 RSUs Granted 81,116 $ 118.72 RSUs Vested (75,887 ) $ 102.67 RSUs Forfeited (13,358 ) $ 106.32 RSUs Outstanding December 31, 2017 152,181 $ 109.43 RSUs Granted 68,908 $ 137.04 RSUs Vested (66,979 ) $ 107.40 RSUs Forfeited (7,892 ) $ 120.99 RSUs Outstanding December 31, 2018 146,218 $ 122.74 RSUs Granted 67,224 $ 117.54 RSUs Vested (67,522 ) $ 112.23 RSUs Forfeited (17,003 ) $ 118.71 RSUs Outstanding December 31, 2019 128,917 $ 126.07 Underlying Shares Weighted - Average Grant Date Fair Value PSUs Outstanding December 31, 2016 175,690 $ 101.31 PSUs Granted 72,163 $ 115.85 PSUs Vested (48,357 ) $ 103.41 PSUs Forfeited (25,589 ) $ 103.14 PSUs Outstanding December 31, 2017 173,907 $ 106.48 PSUs Granted 57,110 $ 139.93 PSUs Vested (41,436 ) $ 115.88 PSUs Forfeited (9,766 ) $ 110.74 PSUs Outstanding December 31, 2018 179,815 $ 114.70 PSUs Granted 95,496 $ 109.76 PSUs Vested (92,339 ) $ 91.35 PSUs Forfeited (16,301 ) $ 111.76 PSUs Outstanding December 31, 2019 166,671 $ 123.91 Underlying Shares Weighted - Average Grant Date Fair Value DSUs Outstanding December 31, 2016 17,083 $ 95.93 DSUs Granted 7,752 $ 118.75 DSUs Issued (5,924 ) $ 105.51 DSUs Outstanding December 31, 2017 18,911 $ 102.28 DSUs Granted 7,208 $ 127.77 DSUs Issued (7,833 ) $ 109.85 DSUs Outstanding December 31, 2018 18,286 $ 109.09 DSUs Granted 6,174 $ 130.50 DSUs Issued (6,307 ) $ 127.77 DSUs Outstanding December 31, 2019 18,153 $ 109.88 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 3 years Total RSUs granted in 2017 69,253 11,863 81,116 RSUs granted in 2018 65,190 3,718 68,908 RSUs granted in 2019 67,224 — 67,224 As discussed above, the PSUs granted in each of the years ended December 31, 2019 , 2018 and 2017 vest, if at all, and at levels depending upon, the achievement of certain three-year cumulative earnings per share goals. To the extent that the PSUs vest at a level greater (or lesser) than 100% as a result of the final performance achievement, the Company considers the increment (or reduction) in shares vested as additional grants (or forfeitures) in the year of vesting. The DSUs granted in each of the years ended December 31, 2019 , 2018 and 2017 vest immediately upon grant. As of December 31, 2019 , all outstanding stock option awards were fully vested and had a total aggregate intrinsic value of $1.5 million . 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, 2019 , multiplied by the number of shares per each option. The total intrinsic value of options exercised was $ 4.3 million , $3.1 million and $13.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total fair value of shares vested was $ 19.7 million , $15.9 million and $15.1 million for the years ended December 31, 2019 , 2018 and 2017 respectively. Unrecognized compensation cost for the 295,588 of unvested RSUs and PSUs as of December 31, 2019 is $ 20.2 million , to be recognized over a weighted average period of 2.2 years. The contractual life of all options is 10.0 years. The weighted average remaining contractual life of options outstanding as of December 31, 2019 was 1.4 years. The tax benefit from stock options exercised was immaterial for the years ended December 31, 2019 , 2018 and 2017 . |
Other Operating and Non-Operati
Other Operating and Non-Operating (Income) and Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating and Non-Operating (Income) and Expense, Net | Other Operating and Non-Operating (Income) / Expense, Net The components of other operating and non-operating (income) / expense, net, are as follow: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Other operating (income)/expense, net Indemnification costs $ — $ 0.7 $ 16.1 Bank charges 1.2 1.3 1.1 Miscellaneous taxes 4.8 5.0 6.1 Release of contingent consideration — (3.1 ) — Government subsidy (2.6 ) (2.8 ) (1.6 ) Environmental reserve reduction (3.8 ) — — Other income, net (1.1 ) (1.5 ) (1.1 ) $ (1.5 ) $ (0.4 ) $ 20.6 Other non-operating expense/(income), net Pension and post-retirement benefit costs $ 37.5 $ 36.1 $ 36.0 Guaranteed notes receivable discount fees 1.7 2.2 2.3 Foreign exchange gains, net (4.2 ) (1.8 ) (1.2 ) Change in fair value of non-marketable equity securities (2.2 ) 5.5 — Loss on debt extinguishment — 2.6 — Gains on marketable investments (6.1 ) (2.6 ) — Other (income)/expense, net (0.5 ) 0.3 0.1 $ 26.2 $ 42.3 $ 37.2 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net The components of inventories are as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Finished products $ 153.9 $ 185.2 Products in process 11.9 15.3 Raw materials 143.1 137.1 Inventories, gross 308.9 337.6 Less: inventory reserve 16.0 18.5 Inventories, net $ 292.9 $ 319.1 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. For inventories valued using the LIFO method, the current replacement cost approximated the LIFO carrying cost for 2019 and 2018 . Reserves for LIFO amounted to $0.5 million and $1.3 million for the years ended December 31, 2019 and 2018 . Inventory reserves amounted to $16.0 million and $18.5 million as of December 31, 2019 and 2018 , respectively. The decrease in the reserve balance for 2019 was primarily attributable to reduced inventory levels and foreign exchange impacts ( $1.5 million and $0.3 million , respectively), while the decrease in the reserve balance for 2018 was mainly driven by foreign exchange impacts ( $0.8 million ). |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net The components of property, plant and equipment, at cost, are as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Land $ 29.1 $ 26.8 Buildings 215.9 222.9 Machinery and equipment 1,125.8 1,088.4 Improvements in progress 35.1 38.7 Gross property, plant and equipment 1,405.9 1,376.8 Less: accumulated depreciation 812.9 823.2 Property, plant and equipment, net $ 593.0 $ 553.6 Depreciation expense for the year ended December 31, 2019 was $ 95.1 million . Depreciation expense, including expense related to assets under capital leases, for the years ended December 31, 2018 and 2017 was $ 95.8 million and $84.8 million , respectively. Property, plant and equipment, net includes tooling investments of $90.6 million and $80.0 million for the years ended December 31, 2019 and 2018 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The operating lease expense for the year ended December 31, 2019 was $31.9 million . Lease expenses related to variable lease payments and short term leases were immaterial. Other information related to operating leases is as follows: Year Ended (Amounts in millions) 2019 Operating Lease Expense Cash paid for amounts included in the measurement of lease liabilities $ 31.2 ROU assets obtained in exchange for new lease liabilities $ 20.1 Weighted-average remaining lease term (in years) 6.2 Weighted-average discount rate 1.4 % Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: (Amounts in millions) 2020 $ 29.4 2021 19.9 2022 15.6 2023 11.9 2024 6.1 Thereafter 25.2 Total lease payments 108.1 Less: imputed interest 5.8 Total $ 102.3 Amounts recognized in the consolidated balance sheet: Current liabilities, included in other accrued liabilities $ 28.1 Long-term liabilities, as operating lease liabilities $ 74.2 |
Guaranteed Notes Receivable
Guaranteed Notes Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable Financing Facility [Abstract] | |
Guaranteed Notes Receivable | Guaranteed Notes Receivable The Company's 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 original 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, 2019 , 2018 and 2017 was $236.3 million , $281.6 million and $261.8 million , respectively. Expenses related to discounting these notes amounted to $1.7 million , $2.2 million and $2.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, which are included in other non-operating expense, net. The fair value of these guaranteed notes receivable is determined based on Level 2 inputs including credit ratings and other criteria observable in the market. The fair value of these notes equal their carrying amounts of $35.0 million and $44.1 million as of December 31, 2019 and 2018 , respectively. 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, 2019 or 2018 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 . Year Ended December 31, (Amounts in millions) 2019 2018 Balance of goodwill, beginning of year $ 809.4 $ 834.7 Acquisitions — (3.2 ) Foreign exchange translation (6.9 ) (22.1 ) Balance of goodwill, end of year $ 802.5 $ 809.4 Intangible assets for the years ended December 31, 2019 and 2018 are as follow: Year ended December 31, 2019 2018 (Amounts in millions) Gross carrying amount Accumulated amortization Net Book Value Gross carrying amount Accumulated amortization Net Book Value Capitalized software $ 125.7 $ (100.3 ) $ 25.4 $ 120.5 $ (92.0 ) $ 28.5 Customer relationships 161.8 (49.2 ) 112.6 161.9 (38.0 ) 123.9 Trade names 81.1 (6.9 ) 74.2 81.2 (4.8 ) 76.4 Other intangible assets 55.8 (41.1 ) 14.7 58.7 (40.9 ) 17.8 Intangible assets, net $ 424.4 $ (197.5 ) $ 226.9 $ 422.3 $ (175.7 ) $ 246.6 Amortization expense for intangible assets was $28.5 million , $28.9 million and $22.3 million for the years ended December 31, 2019 , 2018 and 2017 . The Company expects to incur between $23.0 million and $ 26.0 million of amortization expense for each of the next five fiscal years excluding any amortization that may arise from future acquisitions. |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Post-retirement Benefits | Pension and 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 and Switzerland, participate in defined benefit plans or retiree medical plans sponsored by local WABCO legal entities. WABCO has also 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. In addition, in 2016, certain legislative changes in Belgium to employee benefit plans required that these plans be accounted for as defined benefit plans. 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 $821.8 million on the consolidated balance sheet as of December 31, 2019 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, 2019 and 2018 , and a statement of the funded status as of December 31, 2019 and 2018 . Year Ended December 31, 2019 2018 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of benefit obligation: Obligation at beginning of year $ 11.8 $ 889.6 $ 12.4 $ 889.7 Service cost 0.7 26.5 0.8 25.3 Interest cost 0.5 16.4 0.5 16.4 Participant contributions — 0.3 — 0.4 Settlements — (3.2 ) — — Actuarial (gain)/loss (1) (7.7 ) 112.2 (0.7 ) 24.4 Plan amendments (2) — — — 3.6 Benefit payments (0.8 ) (27.8 ) (1.1 ) (28.6 ) Foreign exchange effects — (9.4 ) (0.1 ) (40.1 ) Other (0.1 ) 1.7 — (1.5 ) Obligation at end of year $ 4.4 $ 1,006.3 $ 11.8 $ 889.6 (1) For the year ended December 31, 2019, the actuarial gains for health and life insurance benefits were primarily due to a decrease in the number of eligible plan participants, while the actuarial losses for pension benefits were primarily due to decreases in discount rates across all pension plans. (2) Plan amendments relate to the UK court ruling in 2018 relating to the Guaranteed Minimum Pension (GMP) equalization. Year Ended December 31, 2019 2018 (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 $ — $ 164.7 $ — $ 180.4 Actual gain/(loss) on assets — 7.4 — (2.2 ) Employer contributions 0.8 23.1 1.1 24.8 Participant contributions — 0.3 — 0.4 Settlements — (3.1 ) $ — $ — Benefit payments (0.8 ) (27.8 ) (1.1 ) (28.4 ) Foreign exchange effects — 4.4 — (8.6 ) Other — — — (1.7 ) Fair value of plan assets at end of year $ — $ 169.0 $ — $ 164.7 Funded status at December 31 $ (4.4 ) $ (837.3 ) $ (11.8 ) $ (724.9 ) Amounts recognized in the balance sheet: Noncurrent assets (included in other assets) $ — $ — $ — $ — Current liabilities (included in accrued payroll) (0.5 ) (19.4 ) (0.9 ) (19.5 ) Noncurrent liabilities (3.9 ) (817.9 ) (10.9 ) (705.4 ) Net amounts recognized in balance sheet: $ (4.4 ) $ (837.3 ) $ (11.8 ) $ (724.9 ) Cumulative amounts recognized in other comprehensive income consist of: Prior service cost $ — $ 4.0 $ — $ 4.4 Net actuarial loss 0.1 450.8 8.3 369.4 Total (before tax effects) $ 0.1 $ 454.8 $ 8.3 $ 373.8 $30.6 million of the amount in other comprehensive income as of December 31, 2019 is expected to be recognized as pension and post-retirement costs in 2020 . The following table provides a summary of pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets as of December 31: Year Ended December 31, (Amounts in millions) 2019 2018 For plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 949.3 $ 826.1 Fair value of plan assets 111.9 101.3 For plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 720.2 $ 635.2 Fair value of plan assets 35.0 35.6 Total pension and post-retirement costs are shown below: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Foreign pensions $ 62.9 $ 60.4 $ 55.8 Health & Life insurance benefits 1.8 1.8 1.7 Total pension and post-retirement benefit costs $ 64.7 $ 62.2 $ 57.5 The components of pension and post-retirement costs are broken out in the tables below: Pension Benefit Costs Year Ended December 31, (Amounts in millions) 2019 2018 2017 Service cost - benefits earned during period $ 26.5 $ 25.3 $ 20.8 Interest cost on projected benefit obligation 16.4 16.4 14.5 Less: assumed return on plan assets (4.8 ) (5.4 ) (5.2 ) Amortization of prior service cost 0.5 0.1 0.1 Amortization of net loss 23.7 24.7 26.1 Settlement 0.6 — — Gain on curtailment — (0.7 ) (0.5 ) Pension benefit costs $ 62.9 $ 60.4 $ 55.8 Other Post-Retirement Benefit Costs Year Ended December 31, (Amounts in millions) 2019 2018 2017 Service cost - benefits earned during period $ 0.7 $ 0.8 $ 0.7 Interest cost on projected benefit obligation 0.5 0.5 0.5 Amortization of net loss 0.6 0.5 0.5 Other post-retirement benefit costs $ 1.8 $ 1.8 $ 1.7 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 2019 Health & Life Ins. Benefits 2019 Foreign Pension Plans 2018 Health & Life Ins. Benefits 2018 Foreign Pension Plans Discount rate 2.95 % 1.21 % 4.30 % 1.90 % Salary growth N/A 3.66 % N/A 3.71 % Net Periodic Pension Cost for the year Discount rate 4.30 % 1.90 % 3.55 % 1.87 % Salary growth N/A 3.71 % N/A 2.85 % Expected return on plan assets N/A 2.93 % N/A 2.40 % The discount rate assumption in this chart changed from 2018 to 2019 , 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 discount rate. The assumed rate of return is a long-term investment return that takes into account the classes of assets held by the defined benefit plans and expected returns for each class of assets. Return expectations reflect forward-looking analysis as well as historical experience. WABCO's asset management strategy focuses on maintaining a diversified portfolio using various classes of assets to generate attractive returns while managing risk. The Company periodically reviews its target asset allocations for a given plan to ensure it aligns with the asset management strategy. In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. Asset Allocation 2019 2018 2019 Target 2018 Target Debt securities (issued by non-U.S. government agencies) 6 % 6 % 16 % 12 % Mutual funds 37 % 32 % 23 % 27 % Insurance contracts 41 % 47 % 46 % 47 % Investments in collective foundations 15 % 14 % 15 % 14 % Cash 1 % 1 % — % — % All assets are measured at the current fair value. The fair value of the Company's plan assets as of December 31, 2019 and 2018 , for each class of assets, is as follows: December 31, 2019 Fair Value Hierarchy (Amounts in millions) Level 1 Level 2 Level 3 Debt securities (issued by non-U.S. government agencies) $ 10.5 10.5 $ — $ — Mutual funds 62.9 — 62.9 — Insurance contracts 69.9 — — 69.9 Investments in collective foundations 24.7 — — 24.7 Cash 1.0 1.0 — — Total plan assets $ 169.0 $ 11.5 $ 62.9 $ 94.6 December 31, 2018 Fair Value Hierarchy (Amounts in millions) Level 1 Level 2 Level 3 Debt securities (issued by non-U.S. government agencies) $ 8.9 8.9 $ — $ — Mutual funds 53.4 — 53.4 — Insurance contracts 77.3 — — 77.3 Investments in collective foundations 23.8 — — 23.8 Cash 1.3 1.3 — — Total plan assets $ 164.7 $ 10.2 $ 53.4 $ 101.1 The reconciliation of the fair value of the plan assets measured using significant unobservable (Level 3) inputs for the years ended December 31, 2019 and 2018 was as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Beginning balance $ 101.1 $ 111.5 Actual loss on assets (1.6 ) (0.4 ) Contributions to assets 3.5 3.4 Benefit payments from assets (7.8 ) (7.4 ) Transfers (2.9 ) (1.2 ) Foreign exchange effects 2.3 (4.8 ) Ending balance $ 94.6 $ 101.1 WABCO makes contributions to funded pension plans that at a minimum, meet all statutory funding requirements. Contributions, including payment of benefits incurred by unfunded plans and health and life insurance benefits, totaled $23.9 million in 2019 compared to $25.9 million in 2018 . Contributions in 2020 are expected to be in line with the contributions made during 2019 . Expected future benefit payments from our pension and retirement health and life insurance benefit plans are shown in the table below: (Amounts in millions) 2020 2021 2022 2023 2024 2025-2029 Domestic plans without subsidy $ 0.5 $ 0.5 $ 0.5 $ 0.4 $ 0.4 $ 1.4 Foreign pension plans 27.2 27.7 27.8 28.9 29.9 154.8 The weighted average annual assumed rate of increase in the health care cost trend rate was 6.8% for 2018 , 6.5% for 2019 and is assumed to reach 6.5% in 2020 and then gradually decline to 4.75% by 2027. 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 $ 0.3 $ (0.3 ) Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs N/A N/A |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Schuldschein Loans On March 22, 2018 the Company, through a European subsidiary, entered into a series of six individual senior unsecured loan agreements with an aggregate principal amount of €300.0 million (collectively, the Schuldschein Loans), as follows : (Amounts in millions) Face value Coupon Maturity date Fixed rate term loan - Series A € 10.0 0.85% March 31, 2021 Fixed rate term loan - Series B 60.0 1.15% March 31, 2022 Fixed rate term loan - Series C 80.0 1.43% March 31, 2023 Floating rate term loan - Series A 50.0 6-month EURIBOR plus 80 bps March 31, 2021 Floating rate term loan - Series B 60.0 6-month EURIBOR plus 90 bps March 31, 2022 Floating rate term loan - Series C 40.0 6-month EURIBOR plus 100 bps March 31, 2023 € 300.0 The Company paid approximately €1.1 million of debt issuance costs in connection with the Schuldschein Loans, which has been presented in the consolidated balance sheets as a direct reduction of the related debt liability. Interest under the fixed rate tranches is paid annually on March 31 of each year, commencing March 31, 2019. Interest under the floating rate tranches are paid semi-annually on March 31 and September 30 of each year, and commenced on September 30, 2018. As of December 31, 2019 , the outstanding debt balance net of unamortized debt issuance costs was €299.4 million ( $335.8 million at December 31, 2019 exchange rates). The proceeds from the Schuldschein Loans were used for the recapitalization of affiliated entities. The remaining proceeds will be utilized to meet general financing requirements. Subject to certain conditions, the Company may, at its option, prepay all or any part of the Schuldschein Loans in an amount equal to the higher of the outstanding nominal amount of such loans (or the part of it) and the discounted value. The Schuldschein Loans contain customary affirmative and negative covenants, and financial covenants consisting of a consolidated net indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for certain items) ratio of not more than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months, as well as a consolidated EBITDA to consolidated net interest expense ratio of not less than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months. The Company was in compliance with all of the covenants as of December 31, 2019 . Senior EUR Notes On November 15, 2016 , the Company issued an aggregate amount of €440.0 million of senior unsecured notes (collectively, the Senior EUR Notes). (Amounts in EUR millions) Face value Coupon Maturity Date Series D Notes € 190.0 0.84 % November 15, 2023 Series E Notes 80.0 1.20 % November 15, 2026 Series F Notes 170.0 1.36 % November 15, 2028 € 440.0 The Company paid approximately $1.4 million of debt issuance costs in connection with the Senior EUR Notes, which has been presented in the consolidated balance sheets as a direct reduction of the related debt liability. Interest on the Senior EUR Notes is payable semi-annually on January 1 and July 1 of each year, and commenced July 1, 2017. As of December 31, 2019 , the outstanding debt balance, net of unamortized debt issuance costs, was €439.1 million ( $492.5 million at December 31, 2019 exchange rates). This debt balance included a revaluation loss of $15.7 million , net of taxes of $6.0 million , related to these notes that has been recognized in cumulative translation adjustment within accumulated other comprehensive income. See Note 21 for further discussion. The proceeds from the Senior EUR Notes were utilized to repay outstanding balances on our revolving credit facilities, fund our share repurchase program prior to announcement of the Merger, finance acquisitions and meet general financing requirements. Subject to certain conditions, the Company may, at its option, prepay all or part of the Senior EUR Notes plus any accrued and unpaid interest to the date of prepayment and certain penalties as defined in the EUR Note Purchase Agreement. The Company may also be required, subject to certain events and conditions, to make an offer to prepay all of the Senior EUR Notes including any accrued and unpaid interest to the date of prepayment. Each holder has the option to accept or reject such offer to prepay. The EUR Note Purchase Agreement contains customary affirmative and negative covenants, and financial covenants consisting of a consolidated net indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for certain items) ratio of not more than three times at the end of fiscal quarter based upon the preceding twelve consecutive months, as well as a consolidated EBITDA to consolidated net interest expense ratio of not less than three times at the end of fiscal quarter based upon the preceding twelve consecutive months. The EUR Note Purchase Agreement also provides for customary events of default, the occurrence of which could result in an acceleration of the Company's obligations under the EUR Note Purchase Agreement. We were in compliance with all of the covenants as of December 31, 2019 . The Company also agreed to indemnify the note purchasers holding Senior EUR Notes that are subject to a swap agreement for certain losses associated with swap breakage resulting from a prepayment of the Senior EUR Notes or from an acceleration of the Senior EUR Notes as a result of an event of default. Senior USD Notes On June 25, 2015 , the Company issued an aggregate amount of $500.0 million of senior unsecured notes (collectively, the Senior USD Notes) as follows: (Amounts in millions) Face value Coupon Maturity Date Series A Notes $ 150.0 2.83 % June 25, 2022 Series B Notes 200.0 3.08 % June 25, 2025 Series C Notes 150.0 3.18 % June 25, 2027 $ 500.0 On April 30, 2018, the Company prepaid the outstanding principal amount of $500.0 million on the Senior USD Notes, and recognized a loss on debt extinguishment of $2.3 million net of taxes, of which the pretax amount, $2.6 million , was recorded in other non-operating expenses in the consolidated statement of operations. Revolving Credit Facilities Effective June 28, 2018, the Company amended its existing multi–currency unsecured revolving credit facility, increasing the maximum principal amount of borrowings under the facility from $400 million to $600 million (the 2018 Facility), with an option to increase up to an additional $250.0 million . The 2018 Facility also extended the scheduled maturity date of our revolving credit facility to June 28, 2023, subject to two one–year extension options of which the first one was exercised on May 28, 2019 and extended the maturity date to June 28, 2024. As of December 31, 2019 and 2018 , there were no outstanding borrowings on the revolving credit facility and the incremental ability to borrow was $600.0 million . Under the 2018 Facility, the Company may borrow, on a revolving basis, outstanding loans in an aggregate principal amount at any one time not in excess of $600 million . The proceeds from borrowings under the 2018 Facility will be made available to fund the share repurchase program, finance acquisitions, provide working capital and for other general corporate purposes. Up to $50 million under the 2018 Facility may be used for issuing letters of credit, which was fully unused as of December 31, 2019 , 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, 2019 . Interest on loans under the 2018 Facility is calculated at a rate per annum equal to an applicable margin which can vary from 0.30% to 0.85% based on the Company's leverage ratio plus LIBOR for loans denominated in U.S. Dollars and EURIBOR for loans denominated in Euros (SIBOR for loans denominated in Singapore Dollars and HIBOR for loans denominated in Hong Kong Dollars). The 2018 Facility contains terms and provisions (including representations, covenants and conditions) customary for transactions of this type. Financial covenants include a leverage test (consolidated net indebtedness not to exceed three times adjusted four quarter trailing consolidated EBITDA) and a maximum subsidiary indebtedness test. The maximum subsidiary indebtedness test limits the total aggregate amount of indebtedness of the Company's subsidiaries, excluding indebtedness under the 2018 Facility, to 20% of consolidated total assets as at the end of the most recently ended financial year, of which not more than $150 million may be secured, provided however that the Company may incur additional subsidiary indebtedness subject to, inter alia, providing additional corporate guarantees. Other undertakings and covenants include delivery of financial reports and other information, compliance with laws including environmental laws and permits, the Employee Retirement Income Security Act (ERISA) and U.S. regulations, the Foreign Account Tax Compliance Act (FATCA), sanctions-related obligations, negative pledge, limitations on mergers and sales of assets, change of business and use of proceeds. We were in compliance with all of the covenants as of December 31, 2019 . Other Debt As of December 31, 2019 , the Company's various subsidiaries had no outstanding borrowings from banks. This is in comparison to $0.5 million as of December 31, 2018 , all of which was classified as long-term debt. The following table summarizes maturities of long-term debt outstanding as of December 31, 2019 . (Amounts in millions) 2020 $ — 2021 67.3 2022 134.6 2023 347.7 2024 — Thereafter 280.3 Less: unamortized debt issuance fees (1.6 ) Total long-term debt $ 828.3 |
Warranties, Guarantees, Commitm
Warranties, Guarantees, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 . Year Ended December 31, (Amounts in millions) 2019 2018 2017 Balance of warranty costs accrued, beginning of period $ 43.7 $ 50.9 $ 49.3 Warranty costs accrued 35.3 31.3 32.5 Warranty claims settled (29.7 ) (36.4 ) (36.0 ) Foreign exchange translation effects (0.7 ) (2.1 ) 5.1 Balance of warranty costs accrued, end of period $ 48.6 $ 43.7 $ 50.9 Current liability, included in current portion of warranties 28.1 23.3 29.5 Long-term liability, included in other liabilities 20.5 20.4 21.4 Warranty costs accrued 35.3 31.3 32.5 Less: received and anticipated recoveries from suppliers (0.8 ) (0.5 ) (2.0 ) Warranty costs net of received and anticipated recoveries $ 34.5 $ 30.8 $ 30.5 Guarantees and Commitments The Company has uncollateralized bank guarantees totaling $ 27.9 million of which $ 17.0 million is related to statutorily-required guarantees for tax and other litigation, $ 3.0 million is related to letters of credit, and $ 7.9 million is related to other individually immaterial items. On September 13, 2019, Meritor, our exclusive distributor for a certain range of WABCO aftermarket products in the U.S. and Canada, and our non-exclusive distributor in Mexico, exercised an option, triggered by the announcement of the Merger, to terminate the distribution agreement and sell the distribution rights back to WABCO. The Company will acquire the distribution rights from Meritor at an exercise price ranging from $225 million to $ 265 million , depending on the earnings of the distribution business. The purchase price for the distribution rights is payable in cash and will result in an increase to the intangible assets balance. The Company is expected to complete the acquisition in the first quarter of 2020. Right of Recourse As discussed in Note 13, the Company may receive guaranteed notes receivable in the form of bankers acceptance drafts from its customers in China as 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 against the original debtor. As of December 31, 2019 and 2018 , the Company had approximately $15.8 million and $28.2 million , respectively, 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 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. Under an indemnification agreement, WABCO Brazil is responsible for certain claims related to Trane's (formerly called American Standard) business for periods prior to the Company's spin-off from Trane in 2007. 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. As previously disclosed, this includes one particular case for which an accrual of BRL 38.9 million including interest ( $9.7 million based on December 31, 2019 exchange rates) was recorded based on management's assessment after considering advice of external legal counsel with respect to the likelihood of loss in this case. A corresponding deposit was made in the first quarter of 2017 into an escrow account with the Brazilian government, representing substantially all of the potential liability for the case. In March 2018, our appeal to have this case heard at the Brazilian Superior Court of Justice (the Court) was accepted. The Court subsequently heard the case and rejected our position ultimately ruling in favor of the tax authorities during the first quarter of 2018. There will be no further appeals. Accordingly, management expects this case to be closed by the Brazilian authorities within the next twelve months and has classified the accrual and deposit within other current liabilities and other current assets, respectively, as of December 31, 2019 . The estimated total amount of other remaining contingencies for tax claims under the indemnification agreement as of December 31, 2019 was $15.9 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Income before income taxes: Domestic $ 46.1 $ 36.2 $ 227.3 Foreign 266.7 427.5 425.3 312.8 463.7 652.6 Provision/(benefit) for income taxes: Current: Domestic 4.3 1.5 (9.8 ) Domestic Transition Tax — 5.9 196.4 Foreign 68.5 65.5 91.3 72.8 72.9 277.9 Deferred: Domestic 2.9 4.6 (30.0 ) Foreign (22.3 ) (28.2 ) (18.2 ) (19.4 ) (23.6 ) (48.2 ) Total provision $ 53.4 $ 49.3 $ 229.7 Our effective tax rate (ETR) of 17.1% for the year ended December 31, 2019 included the following non-recurring items which resulted in our ETR being significantly lower than our statutory rate of 21% : • During 2019, we recorded a $6.5 million income tax benefit as a result of a change in the permanent reinvestment assertion for WABCO INDIA, reducing the ETR by 2.1% ; • During 2019, the Company reorganized and eliminated its hybrid financing structure in response to draft Dutch tax legislation. This restructuring resulted in a net $5.0 million income tax benefit as a result of recognizing a tax amortizable step-up in the fair market value of intercompany loans, reducing the ETR by 1.6% . In addition, during 2019, our ETR continues to benefit from the availability of various tax incentives and programs in foreign jurisdictions including the Belgium Patent Income Deduction (PID) and the China High & New Technology Enterprise (HNTE). We recorded a current year tax benefit of $21.5 million , reducing the ETR by 6.9% for the Belgium PID, which is due to expire in June 2021. Belgium Excess Profit Ruling The Belgian Tax Code contained provisions to reduce the taxable base of companies, through rulings granted by the Belgian Government under the excess profit ruling (EPR) program. WABCO qualified for the EPR program in 2012. On January 11, 2016, the European Commission ruled that the EPR program permitted under Belgian law is illegal and incompatible with European State Aid law (hereinafter referred to as the Decision). As a result, the European Commission required Belgium to stop applying the EPR program and to recover all past tax benefits received by applicable companies under the program (i.e. a clawback). The Company recorded an income tax provision of $69.3 million during 2016 with respect to the clawback of all the tax benefits obtained under the EPR program for tax years 2012 to 2014. This income tax provision did not have any cash impact because the Company had net operating losses (NOLs) available to deduct against the incremental taxable profit. The Company together with the Belgian State and a number of other impacted Belgian taxpayers appealed the Decision before the General Court of the European Union (the General Court). As a result of the Decision, the Company previously sought and obtained an alternative tax relief for 2015 and future years under the Belgium PID program and requested approval to apply the PID for years 2013-14. In the fourth quarter of 2018, we received confirmation from the Belgian Tax authorities that our request for PID benefits, applicable for years 2013-14, was approved by the Recovery Team of the European Commission and as a result we recorded a tax benefit of $33.3 million. The remaining unrecognized tax benefit related to the EPR program is $30.1 million and includes cumulative translation adjustments of $2.4 million and a cumulative decrease of $8.3 million for revaluation resulting from 2017 Belgium tax reform. On February 14, 2019, the General Court of the European Union (the General Court) issued a judgment annulling a European Commission decision which had previously declared the Belgium Excess Profit Ruling (EPR) regime as illegal and incompatible with European State Aid law. The General Court ruled that the European Commission had wrongly considered that the Belgian provisions allowing tax exemptions of multinational companies’ excess profit granted by means of rulings could constitute an illegal state aid scheme. On April 24, 2019, the European Commission appealed that decision. On September 16, 2019, the European Commission announced that they opened separate in-depth investigations to assess whether excess profit rulings granted by Belgium to thirty-nine multinational companies (including WABCO) gave those companies an unfair advantage over their competitors, in breach of European Union State aid rules. At December 31, 2019, the Company maintained a tax reserve of $30.1 million pending further European Court developments regarding European Union State Aid cases. The Tax Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act includes a reduction in the corporate tax rate to 21%, from 35%, implementing a territorial tax system, a one-time transition tax on unrepatriated earnings of foreign subsidiaries at reduced tax rates regardless of whether the earnings are repatriated and the modification or repeal of many business deductions and credits. The reduction in corporate tax rate from 35% to 21% significantly impacts the reconciliation of effective income tax rate as most foreign jurisdictions in which we have significant operations have a statutory tax rate higher than 21% but less than 35%. At December 31, 2019, the remaining transition tax payable is $ 157.7 million of which $ 4.0 million and $ 153.7 million is classified as short-term and long-term, respectively While the Tax Act provides for a territorial tax system, beginning in 2018, it includes the global intangible low-taxed income (GILTI) provision. The Company elected to account for GILTI tax in the period in which it is incurred. The GILTI provision requires the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on foreign subsidiary's tangible assets. The GILTI tax expense is primarily caused by a U.S. foreign tax credit limitation which requires an allocation of interest expense to the GILTI income, effectively rendering the allocated interest expense non-deductible. The GILTI provision does not have a material impact on income tax expense for 2019 . The accounting for the tax effects of the Tax Act was completed in 2018. Belgium Tax Reform On December 25, 2017, Belgium enacted tax legislation including a reduction in the corporate tax rate, decreasing from 33.99% to 29.58% in 2018 and then to 25.00% beginning in 2020. During 2019, 2018 and 2017, the Company recognized income tax expense of $1.7 million, $5.2 million , and $13.8 million, respectively, related to the remeasurement of our net deferred tax assets at the tax rate the underlying items are expected to be realized. Reconciliation of Effective Income Tax Rate A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 21.0% in 2019 and 2018 and 35.0% in 2017 to the income before income taxes is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Tax provision at statutory rate $ 65.7 $ 97.4 $ 228.3 State income taxes, net (0.6 ) (2.6 ) 8.9 Foreign earnings taxed at other than statutory rate 29.8 33.2 (21.6 ) Decrease in valuation allowance (0.1 ) (10.6 ) (1.8 ) Unremitted foreign earnings (6.5 ) — — 2013-14 PID claim — (33.3 ) — Patent Income Deduction (21.5 ) (22.9 ) (21.7 ) High & New Technology Enterprise (HNTE) (6.2 ) (8.7 ) (10.5 ) Fair market value step-up in assets (5.0 ) — — Hybrid financing structure — (11.4 ) (11.5 ) Belgium tax rate change 1.7 5.2 13.8 U.S. tax rate change — 2.0 (32.4 ) Net U.S. transition tax — 5.8 100.0 Other, net (3.9 ) (4.8 ) (21.8 ) Total provision $ 53.4 $ 49.3 $ 229.7 The effective income tax rates for 2019 , 2018 and 2017 were 17.1% , 10.6% and 35.2% , respectively. The Company has operations and a taxable presence in countries outside the United States and all of these countries have a tax rate that is different than the rate in the U.S. The countries in which the Company has a material presence and where the foreign earnings are taxed at a rate significantly different than 21% include Belgium, Brazil, China, Germany, India, the Netherlands, Poland and Switzerland. The tax effect of foreign earnings taxed at other than the statutory rate is an increase of $29.8 million and $33.2 million and a decrease of $21.6 million in 2019 , 2018 and 2017 , respectively. The increase in 2019 and 2018 is largely due to the change in the U.S. statutory rate from 35% to 21% beginning from January 1, 2018. Deferred Tax Assets and Liabilities The following table details the gross deferred tax liabilities and assets and the related valuation allowances: Year Ended December 31, (Amounts in millions) 2019 2018 Deferred tax liabilities: Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) $ 14.7 $ 17.6 Basis difference in subsidiaries 60.5 65.0 Intangibles 10.0 12.5 85.2 95.1 Deferred tax assets: Net operating losses and tax credits 6.8 8.5 Post-retirement and other employee benefits 179.2 149.3 Capitalized assets 73.1 69.2 Inventory 1.4 1.6 Warranties 3.4 2.1 Unrealized foreign exchange losses 10.6 10.0 Other 16.2 17.5 290.7 258.2 Valuation allowances (1.7 ) (1.8 ) Net deferred tax assets $ 203.8 $ 161.3 As at December 31, 2019 , management considered new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. At December 31, 2018 the Company had a valuation allowance recorded against Belgian deferred tax assets related to a transfer pricing arbitration claim between Germany and Belgium. During the fourth quarter of 2018, the Company successfully settled the arbitration claim and Belgium accepted an additional tax deduction of $38.6 million . As a result, the Company reversed the associated valuation allowance of $11.4 million . The amount was offset by other valuation allowance changes of $0.8 million resulting in a net benefit of $10.6 million . Management has determined that $1.7 million of its deferred tax assets in certain jurisdictions will not be realized since evidence such as historical operating profits resulted in a lack of taxable earnings during the most recent three-year period ended December 31, 2019 , and the 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. Tax Loss Carryforwards As of December 31, 2019 , the Company has $ 174.7 million of net operating loss carry forwards (NOLs) available for utilization in future years. Approximately $ 130.6 million of such NOLs have an unlimited life and the remainder of $44.1 million is available for periods of up to 20 years. The net operating loss carryforwards include $123.2 million for which unrecognized tax benefits of $32.1 million have been recorded at December 31, 2019 . Unrecognized Tax Benefits The Company conducts business globally and, as a result, it files income tax returns in the U.S. federal, state and local, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world and has significant presence in the following jurisdictions: Belgium, Brazil, China, Germany, India, the Netherlands, Poland, Switzerland and the U.S. With no material exceptions, the Company is no longer subject to examinations by tax authorities for years before 2009. However, the Belgium and U.S. federal income tax returns are no longer subject to examination through years 2012 and 2015, respectively. Unrecognized tax benefits as of December 31, 2019 amounted to $ 35.3 million of which $32.1 million has been offset against deferred tax assets as stated above. The Company is currently unable to estimate the timing of payment of the remaining unrecognized tax benefits of $3.2 million . Total accrued interest as of December 31, 2019 , 2018 and 2017 was approximately $0.4 million , $0.6 million and $0.4 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 (exclusive of interest) is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Beginning balance, January 1 $ 39.6 $ 71.6 $ 69.4 Additions for tax positions related to current year 0.2 — 1.7 Additions for tax positions related to prior years — 3.4 4.2 Reductions for tax positions related to prior years (3.0 ) (35.4 ) (3.4 ) Cash settlements (1.9 ) — (0.2 ) Expirations of statute of limitations — — (0.1 ) Ending balance, December 31 $ 34.9 $ 39.6 $ 71.6 During 2019, the Company reduced its unrecognized tax benefit by a net $3.0 million , which is primarily related to the EPR clawback of $2.8 million , as a result of revaluation of the EPR losses at the Belgian tax rate they would be realized. During 2019, the Company settled a tax audit in Germany covering tax years 2008 to 2012, for which an unrecognized tax benefit of $1.9 million was previously recorded. During 2018, the Company reduced its unrecognized tax benefit by a net $ 32.0 million , which is primarily related to the EPR/PID clawback of $33.3 million, as a result of receiving PID benefits for years 2013-14. The remaining difference includes a net increase in other unrecognized tax positions of $ 3.6 million , which was slightly offset by a decrease of $ 2.3 million as a result of foreign currency translation adjustments. During 2017, the Company reduced its unrecognized tax benefit related to the EPR/PID clawback by $8.0 million as the result of Belgian tax rate changes; however, the unrecognized tax benefit increased by $9.0 million as the result of foreign currency translation. In February 2018, the Company received a final tax and interest assessment in India for the 2013 tax year related to a capital gain on an intercompany transfer of an Indian subsidiary. The assessment was for INR 3.5 billion ( $49.7 million at December 31, 2019 exchange rates). In addition, a penalty assessment was issued in March for INR 2.1 billion ( $30.1 million at December 31, 2019 exchange rates). The Company believes that no tax is due under the relevant double tax treaty between the Netherlands and India and therefore no unrecognized tax benefit has been recorded. The Company appealed both the tax and penalty assessments during March 2018. In May 2018, the Commissioner of Income Tax granted a partial stay of demand requiring the Company to pay 15% of the assessment (INR 531.4 million , equivalent to $7.5 million at December 31, 2019 exchange rates). On March 31, 2019, the partial stay expired. The Commissioner of Income Tax directed the authority to recover an additional five percent of the assessment or INR 175.0 million ( $2.4 million at December 31, 2019 exchange rates) and granted a further stay pending resolution of the appeal. As of December 31, 2019 , the Company has deposited installments totaling INR 706.4 million ( $9.9 million at December 31, 2019 exchange rates) which are recorded in other assets on the consolidated balance sheet. The assessed penalty has been held in abeyance pending the appeal. As of December 31, 2019 and 2018 , there were $34.9 million and $39.6 million of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. Indefinite Reinvestment of Foreign Earnings Income taxes are provided for the amount of financial reporting over tax basis in foreign subsidiaries not deemed to be indefinitely reinvested. Income taxes have not been provided for the amount of financial reporting over tax basis in foreign subsidiaries that are indefinitely reinvested of $15.9 million as of December 31, 2019 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Method Investments Transactions with equity method investees are considered to be related-party transactions. During the year ended December 31, 2017 , the Company acquired its remaining interests in WABCO Automotive South Africa and Meritor WABCO Vehicle Control Systems, both of which were previously accounted for under the equity method. Transactions occurring between the Company and these entities prior to their acquisition dates are identified as related party transactions. The equity method investments held by the Company and its respective ownership interests at December 31, 2019 include the following: Entity Description Ownership % WABCOWURTH Workshop Services GmbH (WABCOWURTH) Supplier of diagnostic systems 50.0% Sino-American RH Sheppard Hubei Steering Systems LTD (Sheppard Hubei) Provider of steering gear solutions in China 50.0% China Source Engineered Components Trading Corporation Ltd (SSCS) Wholesaler of machined parts 37.5% Shanghai G7 WABCO IOT Technology Co Ltd (G7) Developer of fleet management solutions 50.0% WABCO received $1.7 million of dividends from its equity method investees for the year ended December 31, 2019 . There were no dividends received for the year ended December 31, 2018 and $22.6 million of dividends were received for the year ended December 31, 2017 . The Company's sales and purchases with related parties were immaterial for the years ended December 31, 2019 and 2018 . For the year ended December 31, 2017 the Company had sales of $156.8 million and $4.7 million to Meritor WABCO Vehicle Control Systems and WABCO Automotive South Africa, respectively, prior to the Company's acquisition of these joint ventures. Company's outstanding receivables and payables with related parties were immaterial for the years ended December 31, 2019 and 2018 . Consolidated Joint Ventures WABCO has three fully consolidated joint ventures as of December 31, 2019 . The first of these joint ventures is in Japan with Sanwa-Seiki where the joint venture 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 FAW Jiefang (FAW), to accelerate WABCO's single-piston air disc brake technology in China. WABCO's ownership interest in the joint venture with FAW is 60% . WABCO had a joint venture with Guangdong FUWA Heavy Industry Co., Ltd., (FUWA) to produce air disc brakes for commercial trailers in China. WABCO's ownership interest in the joint venture with FUWA was 70% until March 2019 when the Company acquired the remaining interest in this joint venture. (Amounts in millions) WABCO Sales to WABCO Purchases from Joint Venture partners 2019 2018 2017 2019 2018 2017 Sanwa-Seiki $ — $ — $ — $ 20.0 $ 22.1 $ 25.6 Cummins 85.1 96.4 83.4 — — — FUWA (1) 4.3 9.3 6.9 — — — FAW — — — 0.2 — — (1) Reflects only the transactions with FUWA prior to the Company's acquisition of the remaining interest in the joint venture. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. Our largest customer is Daimler, which accounted for 13% of our sales in 2019 , 14% in 2018 and 11% in 2017 . Volvo, our next largest customer, accounted for 12% of our sales in 2019 , 11% in 2018 and 8% in 2017 . North American sales for the years ended December 31, 2019 , 2018 and 2017 accounted for 24% , 23% and 18% of total sales, respectively. European sales for the years ended December 31, 2019 , 2018 and 2017 accounted for 48% , 49% and 52% of total sales, respectively. Asian sales for the years ended December 31, 2019 , 2018 and 2017 accounted for 22% , 24% and 26% 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. The Company continues to be strengthened in Asia through an extensive network of suppliers, manufacturing sites and engineering hubs. Geographic Data Year Ended December 31, (Amounts in millions) 2019 2018 2017 Product Sales: OEM $ 2,524.1 $ 2,868.9 $ 2,511.8 Aftermarket 897.3 962.1 792.4 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 Sales - Geographic distribution (a): United States $ 785.1 $ 830.6 $ 579.6 Europe (countries below are included in this total) 1,656.1 1,872.6 1,705.3 Germany 569.2 700.9 676.3 France 99.6 110.5 93.5 Netherlands 118.1 132.1 115.2 Sweden 202.0 226.3 214.2 Other (countries below are included in this total) 980.2 1,127.8 1,019.3 Japan 120.4 118.4 115.4 China 343.5 391.0 411.9 Brazil 128.7 115.4 88.9 India 173.1 284.4 231.3 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (a) Sales to external customers are classified by country of destination. As of December 31, (Amounts in millions) 2019 2018 2017 Long-lived Assets (b) Geographic distribution: United States $ 730.9 $ 711.9 $ 715.3 Europe (countries below are included in this total) 788.3 710.3 706.1 Germany 389.7 353.3 315.2 Poland 166.4 152.8 153.6 Other (countries below are included in this total) 317.1 272.4 290.2 India 129.9 113.0 106.6 China 69.0 58.1 56.5 Total long-lived assets $ 1,836.3 $ 1,694.6 $ 1,711.6 (b) Amounts are presented on a net basis and exclude deferred tax assets and investments in unconsolidated joint ventures. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 hedge for accounting purpose. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument based upon the exposure being hedged as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The Company recognizes all derivative financial instruments in the consolidated balance sheet at fair value using Level 2 inputs and these are classified as “other current assets,” “other assets,” “other accrued liabilities” or “other liabilities” on the consolidated balance sheets. The impact resulting from changes in the fair value of derivative instruments is recorded in the same line item in the consolidated statement of operations as the underlying exposure being hedged or in accumulated other comprehensive income (AOCI) for derivatives that qualify and have been designated as cash flow hedges or hedges of a net investment in a foreign operation. Any ineffective portion of a financial instrument's change in fair value is recognized in earnings together with changes in the fair value of any derivatives not designated as relationship hedges. Net Investment Hedges The Company designated borrowings under its revolving credit facilities and Senior EUR Notes to partially hedge the foreign currency exposure of its net investment in certain Euro-denominated wholly-owned subsidiaries. As of December 31, 2019 and 2018 , the Company designated Euro-denominated loans of €440.0 million (approximately $493.5 million at December 31, 2019 exchange rate) and €440.0 million (approximately $503.6 million at December 31, 2018 exchange rate) as hedges of its net investment in these subsidiaries. For the years ended December 31, 2019 and 2018 , the Company recorded a gain of $9.0 million , net of taxes of $2.5 million , and a gain of $16.8 million , net of taxes of $4.7 million , respectively, in cumulative translation adjustment within AOCI. Derivatives Not Designated as Hedges Foreign exchange contracts are also 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, 2019 and 2018 , the Company had the following net outstanding notional amounts related to foreign currency forward contracts: (Amount in millions) As of December 31, 2019 As of December 31, 2018 Foreign Currency Unit of Measure Hedged against Quantity Hedged Notional Amount (USD Equivalent) Quantity Hedged Notional Amount (USD Equivalent) Chinese Yuan CNY EUR 930.0 133.1 849.0 123.4 Hong Kong Dollar HKD EUR 267.0 34.4 285.0 36.4 Polish Zloty PLN EUR 45.0 11.8 * * British Pound GBP EUR * * 11.7 14.9 * No significant outstanding foreign currency forward contracts The Company had additional foreign currency forward contracts with notional amounts that individually amounted to less than $10 million . As of December 31, 2019 and 2018 , respectively, the aggregate notional amount of forward contracts outstanding was €180.8 million ( $202.7 million at December 31, 2019 exchange rates) and €170.2 million ( $194.8 million at December 31, 2018 exchange rates) with an average duration of 1 month. The fair values of the derivatives were immaterial as of December 31, 2019 and 2018 . The Company recognized a net gain on its derivative instruments of $6.4 million for the year ended December 31, 2019 and a net loss of $1.1 million for the year ended December 31, 2018 . When combined with the revaluation of assets and liabilities, these foreign exchange contracts resulted in net non-operating gains of $4.7 million and $2.9 million in 2019 and 2018 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follow: As of December 31, 2019 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 83.1 $ — $ 83.1 Short-term investments — 67.6 — 67.6 Other investments (included in other assets) — 2.8 — 2.8 As of December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 70.8 $ — $ 70.8 Short-term investments — 135.8 — 135.8 Other investments (included in other assets) — 2.8 — 2.8 Short-term and other investments consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company considers highly liquid investments with maturities of three months or less when purchased to be cash and cash equivalents. The fair value of short-term and other investments is determined based on pricing sources for identical instruments in less active markets. The unrealized loss on short–term and other investments still held at the reporting date was immaterial for the years ended December 31, 2019 and 2018 . Other Fair Value Disclosures As of December 31, 2019 and 2018 , the carrying amount of the Company's investments in repurchase agreements, guaranteed notes receivable and long-term debt were determined to approximate their fair values based on Level 2 inputs. During the year ended December 31, 2019 , the Company increased the carrying value of one of its non-marketable equity investments by $2.2 million based on an observable price change for a similar investment in the same issuer. The Company recognized an impairment of $5.5 million during the year ended December 31, 2018 based on the estimated decline in the fair value of one other non-marketable equity investment. Both the upward and downward adjustments were reflected in other non-operating income/expense. There have been no other upward or downward adjustments to non-marketable equity investments. As of December 31, 2019 and 2018 , the carrying amount of the non-marketable equity investments was $27.6 million and $25.4 million |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations In 2017, the Company acquired the remaining interests in its Meritor WABCO and WABCO Automotive South Africa joint ventures for a total cash consideration of $241.0 million . Both transactions were accounted for as step-acquisitions and resulted in a net gain of $247.7 million recognized on the remeasurement of equity method investments. As part of the acquisition of Meritor WABCO, the Company entered into a distribution agreement with Meritor Inc. (Meritor) to serve as the exclusive distributor for a certain range of WABCO Aftermarket products in the U.S. and Canada and also its non-exclusive distributor in Mexico. The agreement provided Meritor with the option to sell these distribution rights to the Company for an exercise price between $225 million and $265 million , based on the earnings of the distribution business, during certain time periods and under certain circumstances, including a change in control of the Company. As discussed in Note 17, Meritor exercised its option on September 13, 2019 to terminate the distribution agreement and sell the distribution rights to the Company. The purchase price for the distribution rights is payable in cash and will result in an increase to the intangible assets balance. The Company is expected to complete this acquisition in the first quarter of 2020. Also in 2017, the Company acquired R.H. Sheppard Co., Inc. (Sheppard) for a net cash consideration of $148.1 million . During the first quarter of 2018, the purchase price was adjusted under the purchase agreement for an additional cash payment of $6.4 million . In 2018, the Company acquired Asset Trackr Private Limited ( Asset Trackr) for total purchase consideration of $2.9 million . The purchase consideration was paid in cash over different installments in 2018 and 2019 in accordance with the terms of the acquisition agreement. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 30, 2020, the Company entered into a definitive agreement to sell its steering components business R.H. Sheppard Co., Inc. to Bendix Commercial Vehicle Systems LLC for $149.5 million . The transaction is subject to closing conditions and regulatory approvals, and is contingent upon the closing of the ZF acquisition of WABCO, which is expected in early 2020 following receipt of remaining regulatory approvals. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Year 2019 (Amounts in millions) First Second Third Fourth Sales $ 932.9 $ 912.8 $ 798.4 $ 777.4 Cost of sales 660.0 644.0 559.5 565.8 Gross profit 272.9 268.8 238.9 211.6 Income before income taxes 100.0 95.6 76.7 40.6 Income tax expense/(benefit) 12.1 20.9 15.9 4.5 Net income attributable to Company $ 84.2 $ 70.6 $ 58.0 $ 33.2 Net income per common share Basic $ 1.64 $ 1.38 $ 1.13 $ 0.65 Diluted $ 1.64 $ 1.38 $ 1.13 $ 0.65 Year 2018 (Amounts in millions) First Second Third Fourth Sales $ 1,003.3 $ 1,001.2 $ 914.8 $ 911.6 Cost of sales 694.3 690.9 639.7 633.5 Gross profit 309.0 310.3 275.1 278.1 Income before income taxes 133.0 132.8 93.3 104.6 Income tax expense 26.3 23.5 13.5 (14.0 ) Net income attributable to Company $ 100.7 $ 104.4 $ 74.5 $ 114.5 Net income per common share Basic $ 1.87 $ 1.96 $ 1.42 $ 2.21 Diluted $ 1.87 $ 1.95 $ 1.41 $ 2.20 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2019 , 2018 and 2017 (Amounts in thousands) Description Balance Beginning of Period Additions Charged to Expense Deductions Foreign Currency Translation Effects Balance End of Period 2019: Reserve deducted from assets: Allowance for doubtful accounts receivable 10,735 2,314 (557 ) (197 ) 12,295 2018: Reserve deducted from assets: Allowance for doubtful accounts receivable 9,358 2,205 (390 ) (438 ) 10,735 2017: Reserve deducted from assets: Allowance for doubtful accounts receivable 6,479 2,460 (445 ) 864 9,358 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 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. The more significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, recoverability of long-lived assets, warranties, pension and post-retirement benefits, goodwill, income taxes, non-marketable equity investments and provisions for loss contingencies. |
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 on the consolidated balance sheets. Certain amounts in the prior year's financial statement footnotes have been reclassified to conform with the current year presentation. |
Foreign Currency Translation | reign Currency Translation - Adjustments resulting from the translation of foreign currency denominated 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 as a component of accumulated other comprehensive loss in shareholders' equity. Accumulated other comprehensive loss also includes the effects of exchange rates on intercompany transactions of a long-term investment nature and transactions designated as a hedge of a net-investment in foreign subsidiaries. Gains or losses resulting from transactions in a currency other than the functional currency are reflected in the consolidated statements of operations as other non-operating income or expense. |
Revenue Recognition | venue Recognition - The Company adopted Accounting Standards Update (ASU) 2014–09 Revenue from Contracts with Customers , together with its amendments collectively referred to as ASC 606, as of January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of the date of adoption. As a result, financial information for reporting periods beginning after January 1, 2018 are presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the accounting policy for revenue recognition prior to the adoption of ASC 606. Revenue under ASC 606 is recognized when control over a product or service is transferred to a customer. Revenue is measured at the transaction price which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods or services to the customer and excludes any amounts collected on behalf of third parties. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. The Company enters into contracts that may include both products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company generates revenue through serial production of parts in the OEM end-market and through the delivery of parts, spare parts and fleet management solutions (FMS) in the Aftermarket. Truck and bus contracts generally include Long Term Supply Agreements (LTSA) and Purchase Orders (PO) whereby the LTSA stipulates the pricing and delivery terms and is evaluated together with a PO, which identifies the quantity, timing, and the type of product to be transferred. Certain customer contracts do not always have an LTSA, in which case, the contracts are governed by the PO from the customer. Payments from customers are typically due within 60 days of invoicing but varies based on jurisdiction and local practices. The Company does not have significant financing components or payment terms greater than 12 months. In most jurisdictions where the Company operates, sales are subject to Value Added Tax (VAT). Sales are presented net of VAT in the consolidated statements of operations. Amounts billed to customers for shipping and handling costs are included in sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. OEM The sale of serial production parts to OEMs or independent distributors that do not require customization, such as most trailer parts or trailer production parts, are satisfied at a point in time as the parts are deemed to have an alternative use to the Company. Revenue is recognized when the control of the parts transfers to the customer, which is based on shipping terms. The transaction price for these parts is equal to the contracted part price of each unit and represents the standalone selling price for the part and there is no expectation of material variable consideration in the transaction price. Management does not exercise significant judgment when accounting for the sale of serial production parts that are relatively homogeneous and produced to industry standards. Certain serial production parts may require specific customization. The Company performs these customization services in order to obtain the LTSA. In some instances, the Company receives reimbursement for a portion of the pre-production cost incurred from the OEM. These reimbursements are not within the scope of ASC 606 and are accounted for under the guidance in ASC 340, Other Assets and Deferred Costs , and are offset against capitalized costs or research and development expenses depending on the terms of the contract. Revenue for serial production contracts requiring customization is recognized at a point in time as most customized serial production parts have an alternative use in that they may be sold in the aftermarket. Serial production contracts also generally do not provide for an enforceable right for full recovery under the LTSA that would be necessary for over-time revenue recognition. Revenue for serial production contracts is recognized when the control of the parts transfers to the customer based on the shipping terms. If any sales were to meet the over-time recognition criteria, the Company has elected to recognize revenue as it produces the specified units, using a “cost-to-cost” method, which is an appropriate method under ASC 606-10-50-18 to measure progress towards completion of the performance obligation to deliver the parts to the customer. The Company believes that this method better reflects its efforts to satisfy its performance obligation as the cost incurred (resources consumed, labor hours expended, time elapsed and machine hours used) is proportionate to its progress in satisfying the performance obligation. Most serial production contracts include provisions for volume discounts. In certain markets, the Company has historically provided customers with discounts not stated in the contract. These practices create a valid expectation for the customer to receive discounts on purchases. The Company considers these adjustments to the contract price as variable considerations, which it estimates based on the most likely amount approach. Volume discounts offered to serial production part customers provide for a limited number of outcomes and are typically binary in nature when determining the amount of the customer discount. Variable consideration is not constrained. Revenue recognized is limited to the amount the Company expects to receive. Amounts billed but ultimately expected to be refunded to the customer are included within promotion and customer incentives on the consolidated balance sheet. Management has exercised significant judgment as it relates to revenue recognition for serial parts production in such areas as scoping, contract identification, determining performance obligations, variable consideration, and the timing of revenue recognition. Aftermarket The Company generates revenue through the delivery of aftermarket parts and spare parts to OEMs and independent distributors, and the delivery of FMS to truck, fleet, trailer and cargo management providers. Aftermarket parts production contracts have one type of performance obligation which is the delivery of aftermarket parts and spare parts. Aftermarket products are deemed to have alternative use since they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time and revenue is recognized when the control of the parts transfers to the customer which is based on shipping terms. Aftermarket contracts may include variable consideration related to discounts, bonuses, and product returns. Variable consideration for aftermarket parts is not constrained. The Company grants its customers cash discounts and various performance bonuses and incentives. The customer usually has the right to return products to the Company in the event of defective products or excess quantity. The Company estimates the volume discounts based on the most likely amount. Discounts and incentives offered to aftermarket customers provide for a limited number of outcomes and are typically binary in nature when determining the amount of the customer discount. Amounts billed and ultimately expected to be refunded to the customer are included within customer and promotion incentives on the consolidated balance sheets. The transaction price for each individual aftermarket part or spare part is identified on the aftermarket contract and represents the standalone selling price for the part. FMS contracts generally include hardware and software and are bundled with a term-based service contract. The FMS revenue stream has multiple performance obligations that include products, services, or a combination of products and services. WABCO receives a fixed payment for the equipment and certain services and receives a variable payment for the Software-as-a-Service (SaaS) performance obligation based on the number of activated devices. Variable consideration is constrained until the amount of activated devices is known. WABCO allocates the total transaction price to the performance obligations based on the stand alone selling price (SSP) for each obligation. When the SSP does not exist, the Company estimates the SSP based on the adjusted market approach. Revenue is recognized when control of the goods or services transfers to the customer, at a point in time (based on shipping terms) for hardware and over-time as the services are provided for the remaining performance obligations. Management has exercised significant judgment as it relates to the revenue recognition for fleet management services in such areas as determining performance obligations, variable consideration, allocation of transaction price and the timing of revenue recognition. Revenue recognition prior to January 1, 2018 The Company recognizes revenue when title and risk of loss have transferred, persuasive evidence of arrangement exists, the sales price is fixed or determinable and collectibility is reasonably assured. 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 the software embedded in 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 applying the relative selling price method, the Company determines the selling price for each deliverable using vendor specific objective evidence (VSOE), if it exists, or third-party evidence (TPE) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, the best estimate of selling price (BESP) is then used for that element. 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. Rebates and sales incentives - |
Cash and Cash Equivalents | sh and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. Restricted cash balances are classified as either other current assets or other assets depending upon the nature of the restriction. |
Marketable Investments | rketable Investments - Investments in marketable securities may consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company classifies its marketable investments as either short-term or long-term based on the contractual maturity of each underlying instrument, its availability of use in current operations and the Company's holding intention. Prior to the adoption of ASU 2016–01, marketable securities were accounted for as available-for-sale securities with changes in market value included in other comprehensive income. Subsequent to the adoption of ASU 2016–01 effective January 1, 2018, the net unrealized change in the market value of investments in marketable securities is recorded in other non–operating expense, net in the consolidated statement of operations. As of December 31, 2019 , the Company had marketable securities of $67.6 million classified as short-term investments and $2.8 million included in other assets on the consolidated balance sheets. As of December 31, 2018 , the Company had marketable securities of $135.8 million classified as short-term investments and $2.8 million included in other assets on the consolidated balance sheets. The Company monitors its marketable securities for indications of impairment and recognizes an impairment loss when it is determined the fair value is less than the carrying value. The Company did not recognize any impairment loss on its marketable securities during the years ended December 31, 2019 , 2018 or 2017 . |
Accounts receivable, net | counts receivable, net - Accounts receivable are recorded at invoiced amounts less the allowance for doubtful accounts.The Company performs ongoing credit evaluations of its customers and records an allowance to reduce receivables to the amount reasonably expected to be collected. In determining the allowance for doubtful accounts WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. Th |
Transfers of Financial Instruments | ansfers 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. In the normal course of business, the Company may discount and sell accounts receivable or exchange accounts receivable for short-term notes receivable. Accounts receivable that are sold without recourse and that meet the criteria for sale accounting under ASC 860 are excluded from accounts receivable on the consolidated balance sheets. The proceeds received from such sales are included in operating cash flows. In instances where receivables are sold with recourse, such that the Company effectively maintains control over the receivables, the Company accounts for these as secured borrowings. The expenses associated with the discounting of receivables are recorded in the consolidated statements of operations as other non-operating expense. |
Inventories, net | ventories, net - Inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) and first–in, first out (FIFO) methods with most inventories valued using the LIFO method. The inventories of an acquired business may be valued using either LIFO or FIFO as the Company considers the cost method that provides for the better matching of 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, net | operty, Plant & Equipment, net - 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 useful life of the fixed asset. WABCO assesses facilities and equipments 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 and 5 to 15 years for machinery and equipment. Tooling may be depreciated over its estimated useful life from 2 to 10 years using the straight–line method or units of production methods. |
Equity and Cost Method Investments | uity Method and Non-Marketable Investments - The Company uses the equity method of accounting for equity investments in instances where the Company has the ability to exercise significant influence, but does not have a controlling financial interest. The proportionate share of income or losses from investments accounted for under the equity method is recorded in the consolidated statements of operations. The carrying value of equity method investments of $11.5 million and $10.4 million at December 31, 2019 and 2018 , respectively, is reported in the consolidated balance sheets as investments in unconsolidated joint ventures, and is adjusted for the Company's proportionate share of net earnings and losses, as well as dividends. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate a loss in value of the investment may be other than temporary. This evaluation considers the investee financial condition as well as investee historical and projected results of operations and cash flows. If the actual outcomes for an investee are significantly different from projections, the Company may impair its investment. See Note 19 for additional information on equity method investments. The Company has elected the measurement alternative for its investments in equity securities without a readily determinable fair value. Under the measurement alternative, the Company measures its non-marketable investments at cost, less impairment and adjusted for observable price changes for identical or similar investments of the investee. At each reporting period the Company performs a qualitative assessment, considering impairment indicators, to evaluate whether its non–marketable investments are impaired. If the fair value of a non–marketable investment is less than its carrying value, an impairment loss is recognized in an amount equal to the difference between the fair value and the carrying value. See Note 22 for additional information on non–marketable investments. |
Goodwill | odwill - Goodwill represents the excess of fair value of consideration paid for an acquired entity over the fair value of the assets acquired and liabilities assumed in a business combination. Goodwill 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 test utilizes the two-step approach. The first step of the goodwill impairment test compares the 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 is performed to measure the amount of the 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. |
Other Intangible Assets with Determinable Lives | tangible Assets, net - Intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles that are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 20 years except for intangibles related to trade name which may have a longer useful life. WABCO also capitalizes the cost of obtaining or developing internal-use computer software, including directly related payroll costs, as capitalized software within intangible assets. Capitalized software costs are amortized on a straight-line basis over periods of up to 7 |
Warranties | rranties - 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 2 years . Estimated product warranty expenses are accrued |
Post-retirement Benefits | nsion and Post-retirement Benefits - Pension and 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. Defined benefits pension plans are primarily concentrated in Germany, United Kingdom, Austria, Switzerland and Belgium. 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. All pension and post-retirement benefits are accounted for on an accrual basis using actuarial assumptions. WABCO measures the defined benefit and post-retirement plan assets and obligations for purposes of determining their funded status as of the end of the Company's fiscal year, and recognizes changes in the funded status in comprehensive income in the year in which the changes occur. The costs of the benefits provided under these plans are included in the accompanying consolidated financial statements. See Note 15 for additional disclosures. |
Fair Value of Financial Instruments | ir Value of Financial Instruments - Financial instruments consist mainly of cash, short-term investments, accounts receivable, guaranteed notes receivable, investment in repurchase agreements, derivative instruments, pension plan assets, accounts payable, short-term borrowings and long-term debt. Fair value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. The following summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable: – Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. – Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. – Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of December 31, 2019 and 2018 , the carrying amount of cash, accounts receivable, accounts payable and short-term borrowings approximated their fair-value due to their short-term nature. The carrying value of short-term investments, investment in repurchase agreements, derivative instruments and long-term debt was determined to approximate fair value based on observable Level 2 inputs. The fair value of short-term investments and investments in repurchase agreements are based on pricing sources for identical instruments in less active markets. The fair value of the guaranteed notes receivable is based on Level 2 inputs, including credit ratings and other criteria observable in the market. The fair value of derivative instruments is determined using model-based valuation techniques for which significant assumptions are observable in the market. The fair value of long-term debt is based upon observable Level 2 inputs regarding interest rates available to the Company at each reporting period. |
Derivative Instruments and Hedging Activities | rivative Instruments and Hedging Activities - The Company enters into derivative instruments to manage its exposure to movements in currency exchange rates and recognizes derivative assets and liabilities at fair value on the consolidated balance sheets. The Company uses Euro–denominated debt and foreign currency contracts to partially hedge its net investment in Euro–denominated wholly–owned subsidiaries. Foreign currency gains and losses on Euro–denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment are included in accumulated other comprehensive income on the consolidated balance sheets. The change in fair value of foreign currency contracts that are not designated as hedging instruments are recorded to the same line item as the hedged item, as non–operating expense/income in the consolidated statements of operations. Se |
Research, Development and Engineering Expenses | search, Development and Engineering Expenses - Research, development and engineering costs include research activities, product development and product engineering, and are expensed as incurred. R |
Business Combinations | siness Combinations - The Company allocates 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, the Company 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 the Company 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 | come 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. 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 | rnings 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. Year Ended December 31, 2019 2018 2017 Weighted average incremental shares included in diluted EPS 155,635 215,611 235,877 Shares excluded due to anti-dilutive effect on earnings per share — 70 1,626 |
Comprehensive Income | mprehensive Income - Comprehensive income consists of net income, foreign currency translation adjustments (including translation on intercompany transactions of a long-term investment nature and net investment hedges), pension and post-retirement liability adjustments, unrecognized gains or losses on pensions and post-retirement benefit plans and unrecognized gains or losses on hedges, and is presented in the accompanying consolidated statements of shareholders' equity and comprehensive income. |
Stock-Based Compensation | ock-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 their estimated fair value. There were no stock options granted to employees during the years ended December 31, 2019 , 2018 or 2017 . RSUs granted to certain executives and employees and DSUs granted to non–management directors are time–based awards where the stock based compensation expense is measured based on the grant date fair value determined based on the number of shares granted and the quoted market price of the Company's common stock on the date of grant. Compensation expense for time-based RSU is amortized using graded vesting over the service period. The fair value of the PSUs is based on the grant date fair value of the number of awards expected to vest based on the Company's best estimate of the ultimate performance against respective targets. 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 were 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 were 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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards In June 2018, the FASB issued ASU 2018-07 Compensation-Stock Compensation (ASC 718), to simplify the accounting for share–based payments granted to nonemployees by aligning the accounting with the requirements for employee share–based compensation. ASU 2018-07 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the guidance as of January 1, 2019. There was no material impact on the consolidated financial statements resulting from the adoption of this guidance. In February 2018, the FASB issued ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASC 220). The standard allows for certain stranded tax effects within accumulated other comprehensive income (AOCI), resulting from the U.S. Tax Cuts and Jobs Act, to be reclassified to retained earnings. ASU 2018-02 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the provisions of ASU 2018–02 as of January 1, 2019. There was a one–time reclassification of $8.4 million from AOCI to retained earnings related to the remeasurement of deferred taxes recorded in other comprehensive income based on the newly enacted corporate tax rate. Refer to Note 18 for additional detail regarding the components of the reclassification. In August 2017, the FASB issued ASU 2017-12 Targeted Improvements to Accounting for Hedging Activities (ASC 815) , which aims at improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements, by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. ASU 2017-12 is effective for the Company beginning in fiscal 2019, including interim periods within that fiscal year. The Company adopted the provisions of ASU 2017–12 as of January 1, 2019. There was no material impact on the consolidated financial statements resulting from the adoption of this guidance. In February 2016, the FASB issued ASU 2016-02 and subsequent amendments, collectively known as Topic 842 Leases (ASC 842) . ASC 842 requires recognition of operating leases as lease assets and liabilities on the balance sheet and also requires the disclosure of key information about leasing arrangements. The Company has elected to adopt Topic 842 by applying the modified transition method and has elected to use the effective date of January 1, 2019 as the initial date of application. The Company elected the package of practical expedients and did not elect the use of the hindsight practical expedient. As a result, the Company will continue to account for existing leases in accordance with previous accounting guidance throughout the entire lease term including periods after the effective date. The remeasurement or modification of a lease after the effective date requires application of the new guidance. The Company has also elected the practical expedient under ASU 2018-01 Land Easement and will apply previous judgments under previous guidance as to the recognition of land easements as a lease. The adoption of ASC 842 resulted in the recognition of operating lease right-of-use (ROU) assets of $110.1 million and operating lease liabilities of $111.2 million on the effective date. The new guidance did not have a material impact on the consolidated statement of operations or statement of cash flow. The accounting for finance leases under ASC 842 remained substantially unchanged from previous accounting guidance and are not material. See Note 12 for the disclosures required by ASC 842 and accounting policy information for leases. Pending Adoption of Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 Simplifying the Accounting for Income Taxes (ASC740). This ASU enhances and simplifies various aspects of the income tax accounting guidance in ASC 740, including requirements related to hybrid tax regimes, the tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of entities not subject to tax, the intraperiod tax allocation exception to the incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, interim-period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim-period tax accounting. This guidance is effective for the Company for annual and interim period in fiscal 2021; however, early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In November 2019, the FASB issued ASU 2019-08 Compensation - Stock Compensation (ASC 718) and Revenue from Contracts with Customers (ASC 606) . This ASU requires an entity measure and classify share-based payment awards granted to a customer by applying the guidance in ASC 718. The amount of the share-based payment award that is recorded as a reduction of the transaction price is required to be measured at the grant-date fair value in accordance with ASC 718. The amendments in this update are effective for the Company for annual and interim periods beginning in fiscal 2020. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (ASC 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU removes the requirements to disclose: amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year; the amount and timing of plan assets expected to be returned to the employer; and the effects of a one-percentage point change in assumed health care cost trend rates. The ASU requires disclosure of an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for the Company for annual and interim period in fiscal 2021. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (ASC 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU also requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This guidance is effective the Company for annual and interim periods beginning in fiscal 2020. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASC 350). The standard eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the Step 2 test) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. The guidance is effective for the Company beginning in fiscal 2020 and will be applied to any annual or interim goodwill impairment assessment after that date. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016–13 Financial Instruments–Credit Losses (Topic 326) which replaces the incurred loss model with a current expected credit loss model (CECL) for financial assets measured at amortized cost. The Company adopted this guidance effective January 1, 2020 using a modified retrospective approach and is in the process of finalizing certain key assumptions related to its CECL model and methodologies. The adoption is expected to result in an immaterial decrease to the allowance for doubtful accounts that will be recorded as a one-time adjustment, net of tax, to retained earnings. The Company does not expect the application of CECL to have a material impact on any other financial asset held at amortized cost on the transition date. The estimated impacts related to the application of CECL may change as the Company completes its implementation with the ongoing impact of CECL dependent upon changes in economic conditions and forecasts. We do not expect the pending adoption of other recently issued accounting standards to have an impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents product sales disaggregated by end-market: Year Ended December 31, (Amount in millions) 2019 2018 2017 OEM (1) $ 2,524.1 $ 2,868.9 $ 2,511.8 Aftermarket 897.3 962.1 792.4 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (1) Sales until the third quarter of 2017 include sales to the Meritor WABCO joint venture, which was acquired in the fourth quarter of 2017 and consolidated from that date. The following table presents product sales disaggregated by geography, based on the billing addresses of customers: Year Ended December 31, (Amount in millions) 2019 2018 2017 United States $ 785.1 $ 830.6 $ 579.6 Europe 1,656.1 1,872.6 1,705.3 Other (1) 980.2 1,127.8 1,019.3 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (1) Sales to other regions includes revenues primarily from Japan, China, Brazil and India. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The table below presents the changes in accumulated other comprehensive loss, net of taxes and noncontrolling interests, for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, (Amount in millions) 2019 2018 2017 Foreign currency translation adjustments : Balance at beginning of period $ (243.0 ) $ (177.6 ) $ (328.7 ) Adoption of ASU 2018-02 (Note 3) (7.1 ) — — Comprehensive loss before reclassification, net (7.8 ) (65.4 ) 152.9 Remeasurement of equity investments — — (1.8 ) Balance at end of period (1) (257.9 ) (243.0 ) (177.6 ) Loss on intra-entity transactions : Balance at beginning of period (11.9 ) (11.8 ) (11.4 ) Comprehensive (loss)/income before reclassification, net (0.2 ) (0.1 ) (0.4 ) Balance at end of period (2) (12.1 ) (11.9 ) (11.8 ) Unrealized gains on investments: Balance at beginning of period — 0.1 0.2 Adjustments for the period — (0.1 ) (0.1 ) Balance at end of period — — 0.1 Unrealized losses on hedges: Balance at beginning of period — (0.8 ) (1.0 ) Comprehensive income before reclassification, net — — 0.2 Amounts reclassified to earnings, net — 0.8 — Balance at end of period — — (0.8 ) Pension and post-retirement plans: Balance at beginning of period (269.1 ) (274.4 ) (236.4 ) Adoption of ASU 2018-02 (Note 3) (1.3 ) — — Comprehensive loss before reclassification, net (66.5 ) (12.2 ) (56.2 ) Amounts reclassified to earnings, net (3) 18.2 17.5 18.2 Balance at end of period (318.7 ) (269.1 ) (274.4 ) Accumulated other comprehensive loss at end of period $ (588.7 ) $ (524.0 ) $ (464.5 ) (1) Includes an accumulated loss of $9.0 million , net of taxes of $1.0 million as of December 31, 2019 and an accumulated loss of $10.8 million , net of taxes of $10.7 million , as of December 31, 2018 related to foreign currency gains and losses on Euro-denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment. This includes the one-time adjustment of currency translation related to the adoption of ASU 2018-02 of $7.1 million disclosed above. (2) 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. (3) Consists of amortization of prior service cost and actuarial losses that are included as a component of pension expenses within other non-operating expenses. The amounts reclassified to earnings are recorded net of tax of $7.2 million , $7.0 million and $7.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. See Note 15 for further discussion. |
Streamlining (Tables)
Streamlining (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Schedule of Streamlining Expenses | The following is a summary of changes in the Company’s streamlining program liabilities for the years ended December 31, 2019 and 2018 . Year Ended December 31, (Amounts in millions) 2019 2018 Balance at beginning of period $ 26.4 $ 43.7 Charges 27.7 14.0 Payments (21.0 ) (30.3 ) Foreign exchange effects (0.3 ) (1.0 ) Balance at end of period $ 32.8 $ 26.4 Current liabilities, included in other accrued liabilities $ 14.7 $ 14.8 Non-current liabilities, included in other liabilities $ 18.1 $ 11.6 |
Schedule of Streamlining Cost | A summary of the streamlining costs is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Employee-related charges – cost of sales $ 19.6 $ 3.2 $ 7.1 Employee-related charges – selling and administrative 8.1 7.5 4.5 Other streamlining charges — 3.3 0.4 Total streamlining costs $ 27.7 $ 14.0 $ 12.0 Year Ended December 31, (Amounts in millions) 2019 2018 2017 Headcount reduction $ 26.5 $ 8.7 $ 5.9 Site closures and footprint relocation 1.2 5.3 6.1 Total streamlining costs $ 27.7 $ 14.0 $ 12.0 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Net Shares Outstanding and Shares Issued or Reacquired | The following is a summary of common stock issued, treasury stock and common stock outstanding for the years ending December 31, 2019 , 2018 and 2017 . Number of Shares of Common Stock Issued Treasury Stock Outstanding Balance, December 31, 2016 78,701,273 (24,209,355 ) 54,491,918 Shares issued upon exercise of stock options 161,687 28,840 190,527 Shares issued upon vesting of RSUs 44,419 3,998 48,417 Shares issued upon vesting of PSUs 24,525 7,175 31,700 Shares issued for DSUs 5,924 — 5,924 Shares purchased for treasury — (1,033,000 ) (1,033,000 ) Balance, December 31, 2017 78,937,828 (25,202,342 ) 53,735,486 Shares issued upon exercise of stock options 14,964 12,999 27,963 Shares issued upon vesting of RSUs 36,126 8,447 44,573 Shares issued upon vesting of PSUs 21,515 6,009 27,524 Shares issued for DSUs 7,833 — 7,833 Shares purchased for treasury — (2,478,454 ) (2,478,454 ) Balance, December 31, 2018 79,018,266 (27,653,341 ) 51,364,925 Shares issued upon exercise of stock options 13,304 27,481 40,785 Shares issued upon vesting of RSUs 43,007 6,226 49,233 Shares issued for deferred compensation 9,730 — 9,730 Shares issued upon vesting of PSUs 56,521 11,823 68,344 Shares issued for DSUs 6,307 — 6,307 Shares purchased for treasury — (272,000 ) (272,000 ) Balance, December 31, 2019 79,147,135 (27,879,811 ) 51,267,324 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Total Stock-Based Compensation Cost Recognized During Period | Total stock-based compensation cost recognized in selling and administrative expenses during the years ended December 31, 2019 , 2018 and 2017 was as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Stock-based compensation $ 9.2 $ 20.0 $ 16.4 |
Total Number and Type of Awards Granted and Related Weighted-Average Grant Date Fair Values | The following tables summarize the stock options, RSUs, PSUs and DSUs activity for each of the periods presented: Underlying Shares Weighted - Average Exercise Price WABCO employees Trane employees Total Options Outstanding December 31, 2016 246,566 40,965 287,531 $ 45.07 Options Granted — — — $ — Options Exercised (152,419 ) (40,882 ) (193,301 ) $ 50.90 Options Forfeited (394 ) (83 ) (477 ) $ 44.15 Options Outstanding December 31, 2017 93,753 — 93,753 $ 33.04 Options Granted — — — $ — Options Exercised (29,081 ) — (29,081 ) $ 25.50 Options Forfeited (1,080 ) — (1,080 ) $ 58.85 Options Outstanding December 31, 2018 63,592 — 63,592 $ 36.05 Options Granted — — — $ — Options Exercised (44,863 ) — (44,863 ) $ 27.94 Options Forfeited — — — $ — Options Outstanding December 31, 2019 18,729 — 18,729 $ 55.49 Exercisable at December 31, 2019 18,729 — 18,729 $ 55.49 Underlying Shares Weighted - Average Grant Date Fair Value RSUs Outstanding December 31, 2016 160,310 $ 101.27 RSUs Granted 81,116 $ 118.72 RSUs Vested (75,887 ) $ 102.67 RSUs Forfeited (13,358 ) $ 106.32 RSUs Outstanding December 31, 2017 152,181 $ 109.43 RSUs Granted 68,908 $ 137.04 RSUs Vested (66,979 ) $ 107.40 RSUs Forfeited (7,892 ) $ 120.99 RSUs Outstanding December 31, 2018 146,218 $ 122.74 RSUs Granted 67,224 $ 117.54 RSUs Vested (67,522 ) $ 112.23 RSUs Forfeited (17,003 ) $ 118.71 RSUs Outstanding December 31, 2019 128,917 $ 126.07 Underlying Shares Weighted - Average Grant Date Fair Value PSUs Outstanding December 31, 2016 175,690 $ 101.31 PSUs Granted 72,163 $ 115.85 PSUs Vested (48,357 ) $ 103.41 PSUs Forfeited (25,589 ) $ 103.14 PSUs Outstanding December 31, 2017 173,907 $ 106.48 PSUs Granted 57,110 $ 139.93 PSUs Vested (41,436 ) $ 115.88 PSUs Forfeited (9,766 ) $ 110.74 PSUs Outstanding December 31, 2018 179,815 $ 114.70 PSUs Granted 95,496 $ 109.76 PSUs Vested (92,339 ) $ 91.35 PSUs Forfeited (16,301 ) $ 111.76 PSUs Outstanding December 31, 2019 166,671 $ 123.91 Underlying Shares Weighted - Average Grant Date Fair Value DSUs Outstanding December 31, 2016 17,083 $ 95.93 DSUs Granted 7,752 $ 118.75 DSUs Issued (5,924 ) $ 105.51 DSUs Outstanding December 31, 2017 18,911 $ 102.28 DSUs Granted 7,208 $ 127.77 DSUs Issued (7,833 ) $ 109.85 DSUs Outstanding December 31, 2018 18,286 $ 109.09 DSUs Granted 6,174 $ 130.50 DSUs Issued (6,307 ) $ 127.77 DSUs Outstanding December 31, 2019 18,153 $ 109.88 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | 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 3 years Total RSUs granted in 2017 69,253 11,863 81,116 RSUs granted in 2018 65,190 3,718 68,908 RSUs granted in 2019 67,224 — 67,224 |
Other Operating and Non-Opera_2
Other Operating and Non-Operating (Income) and Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating and Non-Operating (Income) and Expense, Net | The components of other operating and non-operating (income) / expense, net, are as follow: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Other operating (income)/expense, net Indemnification costs $ — $ 0.7 $ 16.1 Bank charges 1.2 1.3 1.1 Miscellaneous taxes 4.8 5.0 6.1 Release of contingent consideration — (3.1 ) — Government subsidy (2.6 ) (2.8 ) (1.6 ) Environmental reserve reduction (3.8 ) — — Other income, net (1.1 ) (1.5 ) (1.1 ) $ (1.5 ) $ (0.4 ) $ 20.6 Other non-operating expense/(income), net Pension and post-retirement benefit costs $ 37.5 $ 36.1 $ 36.0 Guaranteed notes receivable discount fees 1.7 2.2 2.3 Foreign exchange gains, net (4.2 ) (1.8 ) (1.2 ) Change in fair value of non-marketable equity securities (2.2 ) 5.5 — Loss on debt extinguishment — 2.6 — Gains on marketable investments (6.1 ) (2.6 ) — Other (income)/expense, net (0.5 ) 0.3 0.1 $ 26.2 $ 42.3 $ 37.2 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories are as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Finished products $ 153.9 $ 185.2 Products in process 11.9 15.3 Raw materials 143.1 137.1 Inventories, gross 308.9 337.6 Less: inventory reserve 16.0 18.5 Inventories, net $ 292.9 $ 319.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Facilities | The components of property, plant and equipment, at cost, are as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Land $ 29.1 $ 26.8 Buildings 215.9 222.9 Machinery and equipment 1,125.8 1,088.4 Improvements in progress 35.1 38.7 Gross property, plant and equipment 1,405.9 1,376.8 Less: accumulated depreciation 812.9 823.2 Property, plant and equipment, net $ 593.0 $ 553.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Other information related to operating leases is as follows: Year Ended (Amounts in millions) 2019 Operating Lease Expense Cash paid for amounts included in the measurement of lease liabilities $ 31.2 ROU assets obtained in exchange for new lease liabilities $ 20.1 Weighted-average remaining lease term (in years) 6.2 Weighted-average discount rate 1.4 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: (Amounts in millions) 2020 $ 29.4 2021 19.9 2022 15.6 2023 11.9 2024 6.1 Thereafter 25.2 Total lease payments 108.1 Less: imputed interest 5.8 Total $ 102.3 Amounts recognized in the consolidated balance sheet: Current liabilities, included in other accrued liabilities $ 28.1 Long-term liabilities, as operating lease liabilities $ 74.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 . Year Ended December 31, (Amounts in millions) 2019 2018 Balance of goodwill, beginning of year $ 809.4 $ 834.7 Acquisitions — (3.2 ) Foreign exchange translation (6.9 ) (22.1 ) Balance of goodwill, end of year $ 802.5 $ 809.4 |
Changes in Carrying Value of Intangible Assets | Intangible assets for the years ended December 31, 2019 and 2018 are as follow: Year ended December 31, 2019 2018 (Amounts in millions) Gross carrying amount Accumulated amortization Net Book Value Gross carrying amount Accumulated amortization Net Book Value Capitalized software $ 125.7 $ (100.3 ) $ 25.4 $ 120.5 $ (92.0 ) $ 28.5 Customer relationships 161.8 (49.2 ) 112.6 161.9 (38.0 ) 123.9 Trade names 81.1 (6.9 ) 74.2 81.2 (4.8 ) 76.4 Other intangible assets 55.8 (41.1 ) 14.7 58.7 (40.9 ) 17.8 Intangible assets, net $ 424.4 $ (197.5 ) $ 226.9 $ 422.3 $ (175.7 ) $ 246.6 |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
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, 2019 and 2018 , and a statement of the funded status as of December 31, 2019 and 2018 . Year Ended December 31, 2019 2018 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of benefit obligation: Obligation at beginning of year $ 11.8 $ 889.6 $ 12.4 $ 889.7 Service cost 0.7 26.5 0.8 25.3 Interest cost 0.5 16.4 0.5 16.4 Participant contributions — 0.3 — 0.4 Settlements — (3.2 ) — — Actuarial (gain)/loss (1) (7.7 ) 112.2 (0.7 ) 24.4 Plan amendments (2) — — — 3.6 Benefit payments (0.8 ) (27.8 ) (1.1 ) (28.6 ) Foreign exchange effects — (9.4 ) (0.1 ) (40.1 ) Other (0.1 ) 1.7 — (1.5 ) Obligation at end of year $ 4.4 $ 1,006.3 $ 11.8 $ 889.6 (1) For the year ended December 31, 2019, the actuarial gains for health and life insurance benefits were primarily due to a decrease in the number of eligible plan participants, while the actuarial losses for pension benefits were primarily due to decreases in discount rates across all pension plans. (2) Plan amendments relate to the UK court ruling in 2018 relating to the Guaranteed Minimum Pension (GMP) equalization. Year Ended December 31, 2019 2018 (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 $ — $ 164.7 $ — $ 180.4 Actual gain/(loss) on assets — 7.4 — (2.2 ) Employer contributions 0.8 23.1 1.1 24.8 Participant contributions — 0.3 — 0.4 Settlements — (3.1 ) $ — $ — Benefit payments (0.8 ) (27.8 ) (1.1 ) (28.4 ) Foreign exchange effects — 4.4 — (8.6 ) Other — — — (1.7 ) Fair value of plan assets at end of year $ — $ 169.0 $ — $ 164.7 Funded status at December 31 $ (4.4 ) $ (837.3 ) $ (11.8 ) $ (724.9 ) Amounts recognized in the balance sheet: Noncurrent assets (included in other assets) $ — $ — $ — $ — Current liabilities (included in accrued payroll) (0.5 ) (19.4 ) (0.9 ) (19.5 ) Noncurrent liabilities (3.9 ) (817.9 ) (10.9 ) (705.4 ) Net amounts recognized in balance sheet: $ (4.4 ) $ (837.3 ) $ (11.8 ) $ (724.9 ) Cumulative amounts recognized in other comprehensive income consist of: Prior service cost $ — $ 4.0 $ — $ 4.4 Net actuarial loss 0.1 450.8 8.3 369.4 Total (before tax effects) $ 0.1 $ 454.8 $ 8.3 $ 373.8 |
Pension Plans with Accumulated Benefit Obligations in Excess of Assets | The following table provides a summary of pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets as of December 31: Year Ended December 31, (Amounts in millions) 2019 2018 For plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 949.3 $ 826.1 Fair value of plan assets 111.9 101.3 For plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 720.2 $ 635.2 Fair value of plan assets 35.0 35.6 |
Total Post-Retirement Costs | Total pension and post-retirement costs are shown below: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Foreign pensions $ 62.9 $ 60.4 $ 55.8 Health & Life insurance benefits 1.8 1.8 1.7 Total pension and post-retirement benefit costs $ 64.7 $ 62.2 $ 57.5 The components of pension and post-retirement costs are broken out in the tables below: Pension Benefit Costs Year Ended December 31, (Amounts in millions) 2019 2018 2017 Service cost - benefits earned during period $ 26.5 $ 25.3 $ 20.8 Interest cost on projected benefit obligation 16.4 16.4 14.5 Less: assumed return on plan assets (4.8 ) (5.4 ) (5.2 ) Amortization of prior service cost 0.5 0.1 0.1 Amortization of net loss 23.7 24.7 26.1 Settlement 0.6 — — Gain on curtailment — (0.7 ) (0.5 ) Pension benefit costs $ 62.9 $ 60.4 $ 55.8 Other Post-Retirement Benefit Costs Year Ended December 31, (Amounts in millions) 2019 2018 2017 Service cost - benefits earned during period $ 0.7 $ 0.8 $ 0.7 Interest cost on projected benefit obligation 0.5 0.5 0.5 Amortization of net loss 0.6 0.5 0.5 Other post-retirement benefit costs $ 1.8 $ 1.8 $ 1.7 |
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 2019 Health & Life Ins. Benefits 2019 Foreign Pension Plans 2018 Health & Life Ins. Benefits 2018 Foreign Pension Plans Discount rate 2.95 % 1.21 % 4.30 % 1.90 % Salary growth N/A 3.66 % N/A 3.71 % Net Periodic Pension Cost for the year Discount rate 4.30 % 1.90 % 3.55 % 1.87 % Salary growth N/A 3.71 % N/A 2.85 % Expected return on plan assets N/A 2.93 % N/A 2.40 % |
Allocation and Fair Value of Plan Assets | In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. Asset Allocation 2019 2018 2019 Target 2018 Target Debt securities (issued by non-U.S. government agencies) 6 % 6 % 16 % 12 % Mutual funds 37 % 32 % 23 % 27 % Insurance contracts 41 % 47 % 46 % 47 % Investments in collective foundations 15 % 14 % 15 % 14 % Cash 1 % 1 % — % — % All assets are measured at the current fair value. The fair value of the Company's plan assets as of December 31, 2019 and 2018 , for each class of assets, is as follows: December 31, 2019 Fair Value Hierarchy (Amounts in millions) Level 1 Level 2 Level 3 Debt securities (issued by non-U.S. government agencies) $ 10.5 10.5 $ — $ — Mutual funds 62.9 — 62.9 — Insurance contracts 69.9 — — 69.9 Investments in collective foundations 24.7 — — 24.7 Cash 1.0 1.0 — — Total plan assets $ 169.0 $ 11.5 $ 62.9 $ 94.6 December 31, 2018 Fair Value Hierarchy (Amounts in millions) Level 1 Level 2 Level 3 Debt securities (issued by non-U.S. government agencies) $ 8.9 8.9 $ — $ — Mutual funds 53.4 — 53.4 — Insurance contracts 77.3 — — 77.3 Investments in collective foundations 23.8 — — 23.8 Cash 1.3 1.3 — — Total plan assets $ 164.7 $ 10.2 $ 53.4 $ 101.1 |
Expected Future Benefit Payments | Expected future benefit payments from our pension and retirement health and life insurance benefit plans are shown in the table below: (Amounts in millions) 2020 2021 2022 2023 2024 2025-2029 Domestic plans without subsidy $ 0.5 $ 0.5 $ 0.5 $ 0.4 $ 0.4 $ 1.4 Foreign pension plans 27.2 27.7 27.8 28.9 29.9 154.8 |
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 $ 0.3 $ (0.3 ) Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs N/A N/A |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The reconciliation of the fair value of the plan assets measured using significant unobservable (Level 3) inputs for the years ended December 31, 2019 and 2018 was as follows: Year Ended December 31, (Amounts in millions) 2019 2018 Beginning balance $ 101.1 $ 111.5 Actual loss on assets (1.6 ) (0.4 ) Contributions to assets 3.5 3.4 Benefit payments from assets (7.8 ) (7.4 ) Transfers (2.9 ) (1.2 ) Foreign exchange effects 2.3 (4.8 ) Ending balance $ 94.6 $ 101.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | On March 22, 2018 the Company, through a European subsidiary, entered into a series of six individual senior unsecured loan agreements with an aggregate principal amount of €300.0 million (collectively, the Schuldschein Loans), as follows : (Amounts in millions) Face value Coupon Maturity date Fixed rate term loan - Series A € 10.0 0.85% March 31, 2021 Fixed rate term loan - Series B 60.0 1.15% March 31, 2022 Fixed rate term loan - Series C 80.0 1.43% March 31, 2023 Floating rate term loan - Series A 50.0 6-month EURIBOR plus 80 bps March 31, 2021 Floating rate term loan - Series B 60.0 6-month EURIBOR plus 90 bps March 31, 2022 Floating rate term loan - Series C 40.0 6-month EURIBOR plus 100 bps March 31, 2023 € 300.0 On November 15, 2016 , the Company issued an aggregate amount of €440.0 million of senior unsecured notes (collectively, the Senior EUR Notes). (Amounts in EUR millions) Face value Coupon Maturity Date Series D Notes € 190.0 0.84 % November 15, 2023 Series E Notes 80.0 1.20 % November 15, 2026 Series F Notes 170.0 1.36 % November 15, 2028 € 440.0 On June 25, 2015 , the Company issued an aggregate amount of $500.0 million of senior unsecured notes (collectively, the Senior USD Notes) as follows: (Amounts in millions) Face value Coupon Maturity Date Series A Notes $ 150.0 2.83 % June 25, 2022 Series B Notes 200.0 3.08 % June 25, 2025 Series C Notes 150.0 3.18 % June 25, 2027 $ 500.0 |
Schedule of Line of Credit Facilities | |
Schedule of Maturities of Long-term Debt | The following table summarizes maturities of long-term debt outstanding as of December 31, 2019 . (Amounts in millions) 2020 $ — 2021 67.3 2022 134.6 2023 347.7 2024 — Thereafter 280.3 Less: unamortized debt issuance fees (1.6 ) Total long-term debt $ 828.3 |
Warranties, Guarantees, Commi_2
Warranties, Guarantees, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 . Year Ended December 31, (Amounts in millions) 2019 2018 2017 Balance of warranty costs accrued, beginning of period $ 43.7 $ 50.9 $ 49.3 Warranty costs accrued 35.3 31.3 32.5 Warranty claims settled (29.7 ) (36.4 ) (36.0 ) Foreign exchange translation effects (0.7 ) (2.1 ) 5.1 Balance of warranty costs accrued, end of period $ 48.6 $ 43.7 $ 50.9 Current liability, included in current portion of warranties 28.1 23.3 29.5 Long-term liability, included in other liabilities 20.5 20.4 21.4 Warranty costs accrued 35.3 31.3 32.5 Less: received and anticipated recoveries from suppliers (0.8 ) (0.5 ) (2.0 ) Warranty costs net of received and anticipated recoveries $ 34.5 $ 30.8 $ 30.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Income before income taxes: Domestic $ 46.1 $ 36.2 $ 227.3 Foreign 266.7 427.5 425.3 312.8 463.7 652.6 Provision/(benefit) for income taxes: Current: Domestic 4.3 1.5 (9.8 ) Domestic Transition Tax — 5.9 196.4 Foreign 68.5 65.5 91.3 72.8 72.9 277.9 Deferred: Domestic 2.9 4.6 (30.0 ) Foreign (22.3 ) (28.2 ) (18.2 ) (19.4 ) (23.6 ) (48.2 ) Total provision $ 53.4 $ 49.3 $ 229.7 |
Reconciliation of Actual Income Tax Expense to Statutory Federal Rate | A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 21.0% in 2019 and 2018 and 35.0% in 2017 to the income before income taxes is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Tax provision at statutory rate $ 65.7 $ 97.4 $ 228.3 State income taxes, net (0.6 ) (2.6 ) 8.9 Foreign earnings taxed at other than statutory rate 29.8 33.2 (21.6 ) Decrease in valuation allowance (0.1 ) (10.6 ) (1.8 ) Unremitted foreign earnings (6.5 ) — — 2013-14 PID claim — (33.3 ) — Patent Income Deduction (21.5 ) (22.9 ) (21.7 ) High & New Technology Enterprise (HNTE) (6.2 ) (8.7 ) (10.5 ) Fair market value step-up in assets (5.0 ) — — Hybrid financing structure — (11.4 ) (11.5 ) Belgium tax rate change 1.7 5.2 13.8 U.S. tax rate change — 2.0 (32.4 ) Net U.S. transition tax — 5.8 100.0 Other, net (3.9 ) (4.8 ) (21.8 ) Total provision $ 53.4 $ 49.3 $ 229.7 |
Gross Deferred Tax Liabilities and Assets | The following table details the gross deferred tax liabilities and assets and the related valuation allowances: Year Ended December 31, (Amounts in millions) 2019 2018 Deferred tax liabilities: Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) $ 14.7 $ 17.6 Basis difference in subsidiaries 60.5 65.0 Intangibles 10.0 12.5 85.2 95.1 Deferred tax assets: Net operating losses and tax credits 6.8 8.5 Post-retirement and other employee benefits 179.2 149.3 Capitalized assets 73.1 69.2 Inventory 1.4 1.6 Warranties 3.4 2.1 Unrealized foreign exchange losses 10.6 10.0 Other 16.2 17.5 290.7 258.2 Valuation allowances (1.7 ) (1.8 ) Net deferred tax assets $ 203.8 $ 161.3 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of unrecognized tax benefits (exclusive of interest) is as follows: Year Ended December 31, (Amounts in millions) 2019 2018 2017 Beginning balance, January 1 $ 39.6 $ 71.6 $ 69.4 Additions for tax positions related to current year 0.2 — 1.7 Additions for tax positions related to prior years — 3.4 4.2 Reductions for tax positions related to prior years (3.0 ) (35.4 ) (3.4 ) Cash settlements (1.9 ) — (0.2 ) Expirations of statute of limitations — — (0.1 ) Ending balance, December 31 $ 34.9 $ 39.6 $ 71.6 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
Equity Method Investments | The equity method investments held by the Company and its respective ownership interests at December 31, 2019 include the following: Entity Description Ownership % WABCOWURTH Workshop Services GmbH (WABCOWURTH) Supplier of diagnostic systems 50.0% Sino-American RH Sheppard Hubei Steering Systems LTD (Sheppard Hubei) Provider of steering gear solutions in China 50.0% China Source Engineered Components Trading Corporation Ltd (SSCS) Wholesaler of machined parts 37.5% Shanghai G7 WABCO IOT Technology Co Ltd (G7) Developer of fleet management solutions 50.0% |
Equity Method Investee [Member] | |
Related Party Transaction [Line Items] | |
Schedule Of Related Party Transactions, By Related Party | The Company's sales and purchases with related parties were immaterial for the years ended December 31, 2019 and 2018 . For the year ended December 31, 2017 the Company had sales of $156.8 million and $4.7 million to Meritor WABCO Vehicle Control Systems and WABCO Automotive South Africa, respectively, prior to the Company's acquisition of these joint ventures. Company's outstanding receivables and payables with related parties were immaterial for the years ended December 31, 2019 and 2018 . |
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 partners 2019 2018 2017 2019 2018 2017 Sanwa-Seiki $ — $ — $ — $ 20.0 $ 22.1 $ 25.6 Cummins 85.1 96.4 83.4 — — — FUWA (1) 4.3 9.3 6.9 — — — FAW — — — 0.2 — — (1) Reflects only the transactions with FUWA prior to the Company's acquisition of the remaining interest in the joint venture. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Product Sales: OEM $ 2,524.1 $ 2,868.9 $ 2,511.8 Aftermarket 897.3 962.1 792.4 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 Sales - Geographic distribution (a): United States $ 785.1 $ 830.6 $ 579.6 Europe (countries below are included in this total) 1,656.1 1,872.6 1,705.3 Germany 569.2 700.9 676.3 France 99.6 110.5 93.5 Netherlands 118.1 132.1 115.2 Sweden 202.0 226.3 214.2 Other (countries below are included in this total) 980.2 1,127.8 1,019.3 Japan 120.4 118.4 115.4 China 343.5 391.0 411.9 Brazil 128.7 115.4 88.9 India 173.1 284.4 231.3 Total sales $ 3,421.4 $ 3,831.0 $ 3,304.2 (a) Sales to external customers are classified by country of destination. As of December 31, (Amounts in millions) 2019 2018 2017 Long-lived Assets (b) Geographic distribution: United States $ 730.9 $ 711.9 $ 715.3 Europe (countries below are included in this total) 788.3 710.3 706.1 Germany 389.7 353.3 315.2 Poland 166.4 152.8 153.6 Other (countries below are included in this total) 317.1 272.4 290.2 India 129.9 113.0 106.6 China 69.0 58.1 56.5 Total long-lived assets $ 1,836.3 $ 1,694.6 $ 1,711.6 (b) Amounts are presented on a net basis and exclude deferred tax assets and investments in unconsolidated joint ventures. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of December 31, 2019 and 2018 , the Company had the following net outstanding notional amounts related to foreign currency forward contracts: (Amount in millions) As of December 31, 2019 As of December 31, 2018 Foreign Currency Unit of Measure Hedged against Quantity Hedged Notional Amount (USD Equivalent) Quantity Hedged Notional Amount (USD Equivalent) Chinese Yuan CNY EUR 930.0 133.1 849.0 123.4 Hong Kong Dollar HKD EUR 267.0 34.4 285.0 36.4 Polish Zloty PLN EUR 45.0 11.8 * * British Pound GBP EUR * * 11.7 14.9 * No significant outstanding foreign currency forward contracts |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follow: As of December 31, 2019 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 83.1 $ — $ 83.1 Short-term investments — 67.6 — 67.6 Other investments (included in other assets) — 2.8 — 2.8 As of December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 70.8 $ — $ 70.8 Short-term investments — 135.8 — 135.8 Other investments (included in other assets) — 2.8 — 2.8 Short-term and other investments consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company considers highly liquid investments with maturities of three months or less when purchased to be cash and cash equivalents. The fair value of short-term and other investments is determined based on pricing sources for identical instruments in less active markets. The unrealized loss on short–term and other investments still held at the reporting date was immaterial for the years ended December 31, 2019 and 2018 . |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year 2019 (Amounts in millions) First Second Third Fourth Sales $ 932.9 $ 912.8 $ 798.4 $ 777.4 Cost of sales 660.0 644.0 559.5 565.8 Gross profit 272.9 268.8 238.9 211.6 Income before income taxes 100.0 95.6 76.7 40.6 Income tax expense/(benefit) 12.1 20.9 15.9 4.5 Net income attributable to Company $ 84.2 $ 70.6 $ 58.0 $ 33.2 Net income per common share Basic $ 1.64 $ 1.38 $ 1.13 $ 0.65 Diluted $ 1.64 $ 1.38 $ 1.13 $ 0.65 Year 2018 (Amounts in millions) First Second Third Fourth Sales $ 1,003.3 $ 1,001.2 $ 914.8 $ 911.6 Cost of sales 694.3 690.9 639.7 633.5 Gross profit 309.0 310.3 275.1 278.1 Income before income taxes 133.0 132.8 93.3 104.6 Income tax expense 26.3 23.5 13.5 (14.0 ) Net income attributable to Company $ 100.7 $ 104.4 $ 74.5 $ 114.5 Net income per common share Basic $ 1.87 $ 1.96 $ 1.42 $ 2.21 Diluted $ 1.87 $ 1.95 $ 1.41 $ 2.20 |
Description of Company (Details
Description of Company (Details) $ in Millions | Jul. 31, 2007 | Dec. 31, 2019USD ($)segment | Jun. 27, 2019 | Mar. 28, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Common stock distribution percentage due to spin-off | 100.00% | |||
Common stock distribution, due to spin-off, conversion ratio | 3 | |||
Number of reportable segments | segment | 1 | |||
ZF Friedrichshafen AG [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Merger Agreement, Percentage Of Shares To Be Acquired | 100.00% | |||
Merger Agreement, Percentage Of Shareholders Represented At Meeting | 68.40% | |||
Payments for Merger Related Costs | $ | $ 18 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Cooperative advertising allowances, rebates and other forms of sales incentives | $ 44,300,000 | $ 51,800,000 | $ 48,600,000 |
Short-term investments | 67,600,000 | 135,800,000 | |
Available-for-sale Securities | 2,800,000 | 2,800,000 | |
Accounts Receivable, Allowance for Credit Loss | 12,300,000 | 10,700,000 | |
Guaranteed notes receivable | 35,000,000 | 44,100,000 | |
Unguaranteed Notes, Loans and Financing Receivable, Net, Current | 2,100,000 | 2,200,000 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 11,500,000 | $ 10,400,000 | |
Goodwill impairment | $ 0 | ||
Standard warranty period | 2 years | ||
Product warranty costs, percentage of net sales | 1.00% | 0.80% | 0.90% |
Research and development expense | $ 193,200,000 | $ 184,400,000 | $ 147,000,000 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 40 years | ||
Computer Software Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 7 years | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Minimum [Member] | Other Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 5 years | ||
Minimum [Member] | Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Maximum [Member] | Other Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 15 years | ||
Maximum [Member] | Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life, average, years | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Weighted average incremental shares included | 155,635 | 215,611 | 235,877 |
Shares excluded due to anti-dilutive effect | 0 | 70 | 1,626 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Retained earnings | $ 3,212.3 | $ 2,960.8 | ||
Operating lease, right of use asset | 100.8 | $ 110.1 | $ 0 | |
Operating lease, liability | $ 102.3 | 111.2 | ||
Accounting Standards Update 2016-16 [Member] | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 5.3 | |||
Accounting Standards Update 2018-02 [Member] | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Accounting Standards Update 2018-02 [Member] | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | (8.4) | |||
Retained Earnings | Accounting Standards Update 2016-16 [Member] | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 5.3 | |||
Retained Earnings | Accounting Standards Update 2018-02 [Member] | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 8.4 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 777,400 | $ 798,400 | $ 912,800 | $ 932,900 | $ 911,600 | $ 914,800 | $ 1,001,200 | $ 1,003,300 | $ 3,421,400 | $ 3,831,000 | $ 3,304,200 |
OEM [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,524,100 | 2,868,900 | 2,511,800 | ||||||||
Aftermarket [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 897,300 | 962,100 | 792,400 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 785,100 | 830,600 | 579,600 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,656,100 | 1,872,600 | 1,705,300 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 980,200 | $ 1,127,800 | $ 1,019,300 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | $ (524) | $ (464.5) | ||||
Currency translation adjustments | (9.5) | (71.2) | $ 154.2 | |||
Accumulated other comprehensive loss at end of period | (588.7) | (524) | (464.5) | |||
Foreign currency translation adjustments : | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | (243) | (177.6) | ||||
Currency translation adjustments | 0 | 0 | (1.8) | |||
Comprehensive income/(loss) before reclassification, net | (7.8) | (65.4) | 152.9 | |||
Accumulated other comprehensive loss at end of period | (257.9) | (243) | (177.6) | |||
Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment, Before Tax | (9) | 10.8 | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (1) | 10.7 | ||||
Losses on intra-entity transactions | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | (11.9) | (11.8) | ||||
Comprehensive income/(loss) before reclassification, net | (0.2) | (0.1) | (0.4) | |||
Accumulated other comprehensive loss at end of period | (12.1) | (11.9) | (11.8) | |||
Unrealized gains on investments: | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | 0 | 0.1 | ||||
Comprehensive income/(loss) before reclassification, net | 0 | (0.1) | (0.1) | |||
Accumulated other comprehensive loss at end of period | 0 | 0 | 0.1 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | 0 | (0.8) | ||||
Comprehensive income/(loss) before reclassification, net | 0 | 0 | 0.2 | |||
Amounts reclassified to earnings, net | 0 | 0.8 | 0 | |||
Accumulated other comprehensive loss at end of period | 0 | 0 | (0.8) | |||
Pension and post-retirement plans: | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss at beginning of period | (269.1) | (274.4) | ||||
Comprehensive income/(loss) before reclassification, net | (66.5) | (12.2) | (56.2) | |||
Amounts reclassified to earnings, net | 18.2 | 17.5 | 18.2 | |||
Accumulated other comprehensive loss at end of period | (318.7) | (269.1) | (274.4) | |||
Pension and post-retirement plans, AOCI, tax effect | $ 7.2 | $ 7 | $ 7.9 | |||
Accounting Standards Update 2018-02 [Member] | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Adoption of ASU | $ 0 | |||||
Accounting Standards Update 2018-02 [Member] | Foreign currency translation adjustments : | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Adoption of ASU | 7.1 | $ 0 | $ 0 | |||
Accounting Standards Update 2018-02 [Member] | Pension and post-retirement plans: | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Adoption of ASU | $ 1.3 | $ 0 | $ 0 |
Streamlining (Schedule of Strea
Streamlining (Schedule of Streamlining Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 26.4 | $ 43.7 | |
Charges | 27.7 | 14 | |
Payments | (21) | (30.3) | |
Foreign exchange translation effects | (0.3) | (1) | |
Ending balance | $ 32.8 | 26.4 | |
Accrued Liabilities [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total Streamlining Liability | 14.7 | $ 14.8 | |
Other Noncurrent Liabilities [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total Streamlining Liability | $ 18.1 | $ 11.6 |
Streamlining (Schedule of Curre
Streamlining (Schedule of Current and Cumulative Streamlining Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |||
Employee related charges - cost of sales | $ 19.6 | $ 3.2 | $ 7.1 |
Employee related charges - selling and administrative | 8.1 | 7.5 | 4.5 |
Other streamlining charges | 0 | 3.3 | 0.4 |
Total program costs | $ 27.7 | $ 14 | $ 12 |
Streamlining (Summary of Stream
Streamlining (Summary of Streamlining Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Costs | $ 27.7 | $ 14 | $ 12 |
headcount reductions [Member] | |||
Restructuring Costs | 26.5 | 8.7 | 5.9 |
Footprint relocations [Member] | |||
Restructuring Costs | $ 1.2 | $ 5.3 | $ 6.1 |
Capital Stock (Schedule of Net
Capital Stock (Schedule of Net Shares Outstanding and Shares Issued or Reacquired) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total Shares, beginning balance (in shares) | 79,018,266 | ||
Net Shares Outstanding, beginning balance (in shares) | 51,364,925 | 53,735,486 | 54,491,918 |
Total Shares, ending balance (in shares) | 79,147,135 | 79,018,266 | |
Net Shares Outstanding, ending balance (in shares) | 51,267,324 | 51,364,925 | 53,735,486 |
Treasury Shares, beginning balance (in shares) | (27,653,341) | ||
Shares purchased for treasury (in shares) | (272,000) | (2,478,454) | (1,033,000) |
Treasury shares issued (in shares) | 156,361 | ||
Treasury Shares, ending balance (in shares) | (27,879,811) | (27,653,341) | |
Stock Options [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Shares Outstanding, beginning balance (in shares) | 27,963 | 190,527 | |
Net Shares Outstanding, ending balance (in shares) | 40,785 | 27,963 | 190,527 |
Restricted Stock Units (RSUs) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Shares Outstanding, beginning balance (in shares) | 44,573 | 48,417 | |
Net Shares Outstanding, ending balance (in shares) | 49,233 | 44,573 | 48,417 |
Deferred Compensation [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Shares Outstanding, ending balance (in shares) | 9,730 | ||
Performance Stock Units [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Shares Outstanding, beginning balance (in shares) | 27,524 | 31,700 | |
Net Shares Outstanding, ending balance (in shares) | 68,344 | 27,524 | 31,700 |
Deferred Stock Units [Domain] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Shares Outstanding, beginning balance (in shares) | 7,833 | 5,924 | |
Net Shares Outstanding, ending balance (in shares) | 6,307 | 7,833 | 5,924 |
Common Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total Shares, beginning balance (in shares) | 79,018,266 | 78,937,828 | 78,701,273 |
Total Shares, ending balance (in shares) | 79,147,135 | 79,018,266 | 78,937,828 |
Common Stock [Member] | Stock Options [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued (in shares) | 13,304 | 14,964 | 161,687 |
Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued (in shares) | 43,007 | 36,126 | 44,419 |
Common Stock [Member] | Deferred Compensation [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued (in shares) | 9,730 | ||
Common Stock [Member] | Performance Stock Units [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued (in shares) | 56,521 | 21,515 | 24,525 |
Common Stock [Member] | Deferred Stock Units [Domain] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued (in shares) | 6,307 | 7,833 | 5,924 |
Treasury Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury Shares, beginning balance (in shares) | (27,653,341) | (25,202,342) | (24,209,355) |
Shares purchased for treasury (in shares) | (272,000) | (2,478,454) | (1,033,000) |
Treasury Shares, ending balance (in shares) | (27,879,811) | (27,653,341) | (25,202,342) |
Treasury Stock [Member] | Stock Options [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury shares issued (in shares) | 27,481 | 12,999 | 28,840 |
Treasury Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury shares issued (in shares) | 6,226 | 8,447 | 3,998 |
Treasury Stock [Member] | Deferred Compensation [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury shares issued (in shares) | 0 | ||
Treasury Stock [Member] | Performance Stock Units [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury shares issued (in shares) | 11,823 | 6,009 | 7,175 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 07, 2018 | |
Stockholders' Equity Note [Abstract] | ||||
Treasury shares issued (in shares) | 156,361 | |||
Stock repurchase program, authorized amount | $ 600,000,000 | |||
Shares purchased for treasury (in shares) | 272,000 | 2,478,454 | 1,033,000 | |
Repurchases of treasury stock | $ 30,600,000 | $ 300,000,000 | $ 120,000,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 569,400,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Dividends paid | $ 0 | $ 0 | $ 0 |
Maximum participant annual and long-term cash awards per year | $ 10,000,000 | ||
Share-based compensation arrangement, awards outstanding | 332,470 | ||
Shares remaining available for grant | 2,692,070 | ||
Options and RSUs outstanding, total aggregate intrinsic value | $ 1,500,000 | ||
Options exercised in period, total intrinsic value | 4,300,000 | 3,100,000 | 13,200,000 |
Options, total fair value of shares vested value | $ 19,700,000 | $ 15,900,000 | $ 15,100,000 |
Nonvested options and RSUs, shares | 295,588 | ||
Nonvested options and RSUs, compensation cost | $ 20,200,000 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition, years | 2 years 2 months 12 days | ||
Weighted average remaining contractual life, options outstanding, years | 1 year 4 months 24 days | ||
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] | |||
Contractual term of options | 10 years | ||
Performance Stock Units [Member] | |||
Vesting period of stock-based award | 3 years | 3 years | 3 years |
Percentage vesting, lower range | 0.00% | ||
Percentage vesting, higher range | 200.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Cumulative Earnings Achievement Period | 3 years | ||
Deferred Stock Unit (DSUs) [Member] | |||
Deferment period (or more) | 5 years | ||
Share-based Compensation Arrangement By Share-based Payment Award, Triggering Event, Term | 10 days | ||
Share-based Compensation Arrangement By Share-based Payment Award, Triggering Event, Anniversary Period Of Grant Date Or Director Separation | 13 months | ||
Share-based Compensation Arrangement By Share-based Payment Award, Deferment Election Period | 1 month |
Stock-Based 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 ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation (before tax effects) (value) | $ 9.2 | $ 20 | $ 16.4 |
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 | 146,218 | 152,181 | |
RSUs Granted, Underlying Shares | 67,224 | 68,908 | 81,116 |
RSUs Vested , Underlying Shares | (67,522) | (66,979) | (75,887) |
RSUs Forfeited, Underlying Shares | (17,003) | (7,892) | (13,358) |
RSUs Outstanding , Underlying Shares, ending balance | 128,917 | 146,218 | 152,181 |
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) | $ 122.74 | $ 109.43 | |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 117.54 | 137.04 | $ 118.72 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 112.23 | 107.40 | 102.67 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | 118.71 | 120.99 | 106.32 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 126.07 | $ 122.74 | $ 109.43 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Underlying Shares, beginning balance | 63,592 | 93,753 | |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | (44,863) | (29,081) | (193,301) |
Options Forfeited, Underlying Shares | 0 | (1,080) | (477) |
Options Outstanding, Underlying Shares, ending balance | 18,729 | 63,592 | 93,753 |
Exercisable, Underlying Shares | 18,729 | ||
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) | $ 36.05 | $ 33.04 | |
Options Granted, Weighted-Average Exercise Price (in dollars per share) | 0 | 0 | $ 0 |
Options Exercised, Weighted-Average Exercise Price (in dollars per share) | 27.94 | 25.50 | 50.90 |
Options Forfeited, Weighted-Average Exercise Price (in dollars per share) | 0 | 58.85 | 44.15 |
Options Outstanding, Weighted-Average Exercise Price, ending price (in dollars per share) | 55.49 | $ 36.05 | $ 33.04 |
Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 55.49 | ||
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 | 179,815 | 173,907 | |
RSUs Granted, Underlying Shares | 95,496 | 57,110 | 72,163 |
RSUs Vested , Underlying Shares | (92,339) | (41,436) | (48,357) |
RSUs Forfeited, Underlying Shares | (16,301) | (9,766) | (25,589) |
RSUs Outstanding , Underlying Shares, ending balance | 166,671 | 179,815 | 173,907 |
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) | $ 114.70 | $ 106.48 | |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 109.76 | 139.93 | $ 115.85 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 91.35 | 115.88 | 103.41 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | 111.76 | 110.74 | 103.14 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 123.91 | $ 114.70 | $ 106.48 |
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 | 18,286 | 18,911 | |
RSUs Granted, Underlying Shares | 6,174 | 7,208 | 7,752 |
RSUs Vested , Underlying Shares | (6,307) | (7,833) | (5,924) |
RSUs Outstanding , Underlying Shares, ending balance | 18,153 | 18,286 | 18,911 |
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) | $ 109.09 | $ 102.28 | |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 130.50 | 127.77 | $ 118.75 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 127.77 | 109.85 | 105.51 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 109.88 | $ 109.09 | $ 102.28 |
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 | 63,592 | 93,753 | |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | (44,863) | (29,081) | (152,419) |
Options Forfeited, Underlying Shares | 0 | (1,080) | (394) |
Options Outstanding, Underlying Shares, ending balance | 18,729 | 63,592 | 93,753 |
Exercisable, Underlying Shares | 18,729 | ||
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 | 0 | 0 | |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | 0 | 0 | (40,882) |
Options Forfeited, Underlying Shares | 0 | 0 | (83) |
Options Outstanding, Underlying Shares, ending balance | 0 | 0 | 0 |
Exercisable, Underlying Shares | 0 | ||
Vest Ratably over Three 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 | 67,224 | 65,190 | 69,253 |
Vest After Three 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 | 0 | 3,718 | 11,863 |
Other Operating and Non-Opera_3
Other Operating and Non-Operating (Income) and Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating: | |||
Indemnification costs | $ 0 | $ 0.7 | $ 16.1 |
Bank charges | 1.2 | 1.3 | 1.1 |
Miscellaneous taxes | 4.8 | 5 | 6.1 |
Release of contingent consideration | 0 | (3.1) | 0 |
Government subsidy | (2.6) | (2.8) | (1.6) |
Environmental reserve reduction | (3.8) | 0 | 0 |
Other income, net | (1.1) | (1.5) | (1.1) |
Other operating expense (income) | (1.5) | (0.4) | 20.6 |
Non-operating: | |||
Post-retirement benefit expense | 37.5 | 36.1 | 36 |
Guaranteed notes receivable discount fees | 1.7 | 2.2 | 2.3 |
Foreign exchange gains, net | (4.2) | (1.8) | (1.2) |
Impairment of non-marketable equity securities | (2.2) | 5.5 | 0 |
Loss on debt extinguishment | 0 | (2.6) | 0 |
Gains on marketable investments | (6.1) | (2.6) | 0 |
Other (income)/expense, net | (0.5) | 0.3 | 0.1 |
Other nonoperating expense (income) | $ 26.2 | $ 42.3 | $ 37.2 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Finished products | $ 153.9 | $ 185.2 |
Products in process | 11.9 | 15.3 |
Raw materials | 143.1 | 137.1 |
Inventories at cost | 308.9 | 337.6 |
Less: inventory reserve | 16 | 18.5 |
Inventories, net | 292.9 | 319.1 |
Less: Inventory allowances | (0.5) | 1.3 |
Increase (Decrease) In Inventory Valuation Reserves, Reduced Inventory Levels | (1.5) | |
Increase (decrease) in inventory valuation reserves due to foreign exchange impacts | $ (0.3) | $ (0.8) |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 1,405.9 | $ 1,376.8 | |
Less: accumulated depreciation | 812.9 | 823.2 | |
Property, plant and equipment, net | 593 | 553.6 | |
Depreciation expense | 95.1 | 95.8 | $ 84.8 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 29.1 | 26.8 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 215.9 | 222.9 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 1,125.8 | 1,088.4 | |
Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 90.6 | 80 | |
Improvements In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 35.1 | $ 38.7 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term (in years) | 6 years 2 months 12 days |
Operating Lease, Expense | $ 31.9 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Expense | $ 31.9 |
Cash paid for amounts included in the measurement of lease liabilities | 31.2 |
ROU assets obtained in exchange for new lease liabilities | $ 20.1 |
Weighted-average remaining lease term (in years) | 6 years 2 months 12 days |
Weighted-average discount rate | 1.40% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
2020 | $ 29.4 | ||
2021 | 19.9 | ||
2022 | 15.6 | ||
2023 | 11.9 | ||
2024 | 6.1 | ||
Thereafter | 25.2 | ||
Total lease payments | 108.1 | ||
Less: imputed interest | 5.8 | ||
Total | 102.3 | $ 111.2 | |
Amounts recognized in the condensed consolidated balance sheet: | |||
Current liabilities, included in other accrued liabilities | 28.1 | ||
Long-term liabilities, as operating lease liabilities | $ 74.2 | $ 0 |
Guaranteed Notes Receivable (De
Guaranteed Notes Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable Financing Facility [Abstract] | |||
Notes receivable discounted or transferred | $ 236.3 | $ 281.6 | $ 261.8 |
Expense from discount/transfer of notes receivable | 1.7 | 2.2 | $ 2.3 |
Guaranteed notes receivable | $ 35 | $ 44.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance of goodwill, beginning of year | $ 809.4 | $ 834.7 |
Acquisitions | 0 | (3.2) |
Foreign exchange translation | (6.9) | (22.1) |
Balance of goodwill, end of year | $ 802.5 | $ 809.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Changes in Carrying Value of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 424.4 | $ 422.3 | |
Accumulated amortization | (197.5) | (175.7) | |
Net Book Value | 226.9 | 246.6 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization expense | (28.5) | (28.9) | $ (22.3) |
Capitalized Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 125.7 | 120.5 | |
Accumulated amortization | (100.3) | (92) | |
Net Book Value | 25.4 | 28.5 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 161.8 | 161.9 | |
Accumulated amortization | (49.2) | (38) | |
Net Book Value | 112.6 | 123.9 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 81.1 | 81.2 | |
Accumulated amortization | (6.9) | (4.8) | |
Net Book Value | 74.2 | 76.4 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 55.8 | 58.7 | |
Accumulated amortization | (41.1) | (40.9) | |
Net Book Value | 14.7 | $ 17.8 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | 23 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | $ 26 |
Pension and Post-retirement B_3
Pension and Post-retirement Benefits (Reconciliation of Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Post-retirement benefits, long-term liability | $ 821.8 | $ 716 | |
Payment for Pension and Other Postretirement Benefits | 23.9 | 25.9 | $ 24.7 |
Reconciliation of fair value of plan assets: [Roll Forward] | |||
Fair value of plan assets at beginning of year | 164.7 | ||
Fair value of plan assets at end of year | 169 | 164.7 | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Amount in other comprehensive income expected to be recognized | 30.6 | ||
Health & Life Ins. Benefits [Member] | |||
Reconciliation of benefit obligation: [Roll Forward] | |||
Obligation at beginning of year | 11.8 | 12.4 | |
Service cost | 0.7 | 0.8 | 0.7 |
Interest cost | 0.5 | 0.5 | 0.5 |
Participant contributions | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Actuarial loss / (gain) | (7.7) | (0.7) | |
Plan amendments | 0 | 0 | |
Benefit payments | 0.8 | 1.1 | |
Foreign exchange effects | 0 | (0.1) | |
Other | (0.1) | 0 | |
Obligation at end of year | 4.4 | 11.8 | 12.4 |
Reconciliation of fair value of plan assets: [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual (loss)/return on assets | 0 | 0 | |
Employer contributions | 0.8 | 1.1 | |
Participant contributions | 0 | 0 | |
Settlements | 0 | 0 | |
Benefit payments | (0.8) | (1.1) | |
Foreign exchange effects | 0 | 0 | |
Other expenses | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded Status at December 31 | (4.4) | (11.8) | |
Amounts recognized in balance sheet: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (0.5) | (0.9) | |
Noncurrent liabilities | (3.9) | (10.9) | |
Net amounts recognized in balance sheet: | (4.4) | (11.8) | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Prior service cost | 0 | 0 | |
Net actuarial loss | 0.1 | 8.3 | |
Total (before tax effects) | 0.1 | 8.3 | |
Foreign Pension Plans [Member] | |||
Reconciliation of benefit obligation: [Roll Forward] | |||
Obligation at beginning of year | 889.6 | 889.7 | |
Service cost | 26.5 | 25.3 | 20.8 |
Interest cost | 16.4 | 16.4 | 14.5 |
Participant contributions | 0.3 | 0.4 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (3.2) | 0 | |
Actuarial loss / (gain) | 112.2 | 24.4 | |
Plan amendments | 0 | 3.6 | |
Benefit payments | 27.8 | 28.6 | |
Foreign exchange effects | (9.4) | (40.1) | |
Other | 1.7 | (1.5) | |
Obligation at end of year | 1,006.3 | 889.6 | 889.7 |
Reconciliation of fair value of plan assets: [Roll Forward] | |||
Fair value of plan assets at beginning of year | 164.7 | 180.4 | |
Actual (loss)/return on assets | 7.4 | (2.2) | |
Employer contributions | 23.1 | 24.8 | |
Participant contributions | 0.3 | 0.4 | |
Settlements | (3.1) | 0 | |
Benefit payments | (27.8) | (28.4) | |
Foreign exchange effects | 4.4 | (8.6) | |
Other expenses | 0 | (1.7) | |
Fair value of plan assets at end of year | 169 | 164.7 | $ 180.4 |
Funded Status at December 31 | (837.3) | (724.9) | |
Amounts recognized in balance sheet: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (19.4) | (19.5) | |
Noncurrent liabilities | (817.9) | (705.4) | |
Net amounts recognized in balance sheet: | (837.3) | (724.9) | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Prior service cost | 4 | 4.4 | |
Net actuarial loss | 450.8 | 369.4 | |
Total (before tax effects) | $ 454.8 | $ 373.8 |
Pension and Post-retirement B_4
Pension and Post-retirement Benefits (Pension Plans with Accumulated Benefit Obligations in Excess of Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
For plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | $ 949.3 | $ 826.1 |
Fair value of plan assets | 111.9 | 101.3 |
Foreign Pension Plans [Member] | ||
For plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 720.2 | 635.2 |
Fair value of plan assets | $ 35 | $ 35.6 |
Pension and Post-retirement B_5
Pension and Post-retirement Benefits (Total Post-Retirement Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan cost | $ 64.7 | $ 62.2 | $ 57.5 |
Pension Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 26.5 | 25.3 | 20.8 |
Interest cost on the projected benefit obligation | 16.4 | 16.4 | 14.5 |
Less assumed return on plan assets | (4.8) | (5.4) | (5.2) |
Amortization of prior service cost | 0.5 | 0.1 | 0.1 |
Amortization of net loss | 23.7 | 24.7 | 26.1 |
Settlement | 0.6 | 0 | 0 |
Gain on curtailment | 0 | (0.7) | (0.5) |
Defined benefit plan cost | 62.9 | 60.4 | 55.8 |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 0.7 | 0.8 | 0.7 |
Interest cost on the projected benefit obligation | 0.5 | 0.5 | 0.5 |
Amortization of net loss | 0.6 | 0.5 | 0.5 |
Defined benefit plan cost | $ 1.8 | $ 1.8 | $ 1.7 |
Pension and Post-retirement B_6
Pension and Post-retirement Benefits (Assumptions Used in Determining the Benefit Obligation and Net Cost for Post-retirement Plans) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Health & Life Ins. Benefits [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.95% | 4.30% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 4.30% | 3.55% |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 1.21% | 1.90% |
Salary growth | 3.66% | 3.71% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 1.90% | 1.87% |
Salary growth | 3.71% | 2.85% |
Expected return on plan assets | 2.93% | 2.40% |
Pension and Post-retirement B_7
Pension and Post-retirement Benefits (Allocation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 169 | $ 164.7 | |
Debt securities (issued by non-U.S. government agencies) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation Percentage | 6.00% | 6.00% | |
Target Allocation Percentage | 16.00% | 12.00% | |
Fair value of plan assets | $ 10.5 | $ 8.9 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation Percentage | 37.00% | 32.00% | |
Target Allocation Percentage | 23.00% | 27.00% | |
Fair value of plan assets | $ 62.9 | $ 53.4 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation Percentage | 41.00% | 47.00% | |
Target Allocation Percentage | 46.00% | 47.00% | |
Fair value of plan assets | $ 69.9 | $ 77.3 | |
Investments in collective foundations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation Percentage | 15.00% | 14.00% | |
Target Allocation Percentage | 15.00% | 14.00% | |
Fair value of plan assets | $ 24.7 | $ 23.8 | |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Allocation Percentage | 1.00% | 1.00% | |
Target Allocation Percentage | 0.00% | 0.00% | |
Fair value of plan assets | $ 1 | $ 1.3 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11.5 | 10.2 | |
Fair Value, Inputs, Level 1 [Member] | Debt securities (issued by non-U.S. government agencies) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10.5 | 8.9 | |
Fair Value, Inputs, Level 1 [Member] | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Investments in collective foundations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1.3 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62.9 | 53.4 | |
Fair Value, Inputs, Level 2 [Member] | Debt securities (issued by non-U.S. government agencies) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62.9 | 53.4 | |
Fair Value, Inputs, Level 2 [Member] | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Investments in collective foundations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94.6 | 101.1 | $ 111.5 |
Fair Value, Inputs, Level 3 [Member] | Debt securities (issued by non-U.S. government agencies) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 69.9 | 77.3 | |
Fair Value, Inputs, Level 3 [Member] | Investments in collective foundations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24.7 | 23.8 | |
Fair Value, Inputs, Level 3 [Member] | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Post-retirement B_8
Pension and Post-retirement Benefits (Reconciliation of Fair Value of Plan Assets - Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of fair value of plan assets: [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 164.7 | |
Fair value of plan assets at end of year | 169 | $ 164.7 |
Fair Value, Inputs, Level 3 [Member] | ||
Reconciliation of fair value of plan assets: [Roll Forward] | ||
Fair value of plan assets at beginning of year | 101.1 | 111.5 |
Actual (loss)/return on assets | (1.6) | (0.4) |
Contributions to assets | 3.5 | 3.4 |
Benefit payments from assets | (7.8) | (7.4) |
Transfers in | (2.9) | (1.2) |
Foreign exchange effects | 2.3 | (4.8) |
Fair value of plan assets at end of year | $ 94.6 | $ 101.1 |
Pension and Post-retirement B_9
Pension and Post-retirement Benefits (Expected Future Benefit Payments) (Details) - Foreign Pension Plans [Member] $ in Millions | Dec. 31, 2019USD ($) |
United States | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | $ 0.5 |
2020 | 0.5 |
2021 | 0.5 |
2022 | 0.4 |
2023 | 0.4 |
2024-2028 | 1.4 |
Foreign Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | 27.2 |
2020 | 27.7 |
2021 | 27.8 |
2022 | 28.9 |
2023 | 29.9 |
2024-2028 | $ 154.8 |
Pension and Post-retirement _10
Pension and Post-retirement Benefits (Health Care Cost Trend Rate Assumption) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Weighted average annual assumed rate of increase in the health care cost trend rate | 6.50% | 6.80% |
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 | $ 0.3 | |
Effect on the health care component of accumulated post-retirement obligation, one percentage point decrease | $ (0.3) |
Debt (Schuldschein Loans) (Deta
Debt (Schuldschein Loans) (Details) - Unsecured Debt [Member] | Mar. 22, 2018EUR (€) |
Debt Instrument [Line Items] | |
Face value | € 300,000,000 |
Fixed rate term loan - Series A | |
Debt Instrument [Line Items] | |
Face value | € 10,000,000 |
Coupon | 0.85% |
Fixed rate term loan - Series B | |
Debt Instrument [Line Items] | |
Face value | € 60,000,000 |
Coupon | 1.15% |
Fixed rate term loan - Series C | |
Debt Instrument [Line Items] | |
Face value | € 80,000,000 |
Coupon | 1.43% |
Floating rate term loan - Series A | |
Debt Instrument [Line Items] | |
Face value | € 50,000,000 |
Floating rate term loan - Series A | EURIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.80% |
Floating rate term loan - Series B | |
Debt Instrument [Line Items] | |
Face value | € 60,000,000 |
Floating rate term loan - Series B | EURIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.90% |
Floating rate term loan - Series C | |
Debt Instrument [Line Items] | |
Face value | € 40,000,000 |
Floating rate term loan - Series C | EURIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Debt (Additional Information) (
Debt (Additional Information) (Details) | Jun. 28, 2018USD ($)annual_extension | Apr. 30, 2018USD ($) | Mar. 22, 2018EUR (€) | Nov. 15, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) | Nov. 15, 2016EUR (€) | Jun. 25, 2015USD ($) | Jun. 25, 2015EUR (€) | Jul. 08, 2011USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt | € | € 299,400,000 | |||||||||||
Unrealized gain (loss) on derivatives, net of tax | $ 0 | $ 800,000 | $ 200,000 | |||||||||
Loss on debt extinguishment | 0 | 2,300,000 | 0 | |||||||||
Loss on debt extinguishment | $ 0 | (2,600,000) | $ 0 | |||||||||
Unsecured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Covenant, Interest Expense Ratio, Maximum | 3 | 3 | ||||||||||
Payments of Debt Issuance Costs | € | € 1,100,000 | |||||||||||
Long-term Debt | $ 335,800,000 | |||||||||||
Face value | € | € 300,000,000 | |||||||||||
Debt Instrument, Covenant, Debt Ratio, Maximum | 3 | 3 | ||||||||||
Debt Instrument, Covenant, Debt Ratio, Preceding Duration, Term | 12 months | |||||||||||
Debt Instrument, Covenant, Interest Expense Ratio, Preceding Duration, Term | 12 months | |||||||||||
Total balance [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowings from banks | $ 0 | 500,000 | ||||||||||
Senior EUR Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Covenant, Interest Expense Ratio, Maximum | 3 | 3 | ||||||||||
Payments of Debt Issuance Costs | $ 1,400,000 | |||||||||||
Long-term Debt | $ 492,500,000 | € 439,100,000 | ||||||||||
Debt Instrument, Covenant, Debt Ratio, Maximum | 3 | 3 | ||||||||||
Debt Instrument, Covenant, Debt Ratio, Preceding Duration, Term | 12 months | |||||||||||
Debt Instrument, Covenant, Interest Expense Ratio, Preceding Duration, Term | 12 months | |||||||||||
Senior EUR Notes [Member] | Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face value | € | € 440,000,000 | |||||||||||
Senior Domestic Notes [Member] | Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face value | $ 500,000,000 | € 500,000,000 | ||||||||||
Loss on debt extinguishment | $ 2,300,000 | |||||||||||
Loss on debt extinguishment | $ 2,600,000 | |||||||||||
Designated as Hedging Instrument [Member] | Senior EUR Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unrealized gain (loss) on derivatives, net of tax | $ 15,700,000 | |||||||||||
Tax on unrealized gain on net investment hedge | (6,000,000) | |||||||||||
EUR Senior Notes, Partial Foreign Currency Hedge [Member] | Senior EUR Notes [Member] | Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face value | € | € 440,000,000 | |||||||||||
Revolving Credit Facility [Member] | 2015 Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | |||||||||||
Revolving Credit Facility [Member] | 2018 Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt | 0 | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | |||||||||
Line of credit facility, increase option amount | $ 250,000,000 | |||||||||||
Number of extension options | annual_extension | 2 | |||||||||||
Term of extension option | 1 year | |||||||||||
Debt covenant, debt to assets maximum percentage | 20.00% | |||||||||||
Debt covenant maximum indebtedness | $ 150,000,000 | |||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3 | 3 | ||||||||||
Debt Instrument, Covenant, Leverage Ratio, Preceding Duration, Term | 365 days | |||||||||||
Revolving Credit Facility [Member] | 2018 Credit Facility [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.30% | |||||||||||
Revolving Credit Facility [Member] | 2018 Credit Facility [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.85% | |||||||||||
Revolving Credit Facility [Member] | 2014 Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term of credit facility, years | 5 years | |||||||||||
Letters of Credit [Member] | 2018 Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||||||||
Swingline Loan [Member] | 2018 Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | |||||||||||
Incremental ability to borrow | $ 50,000,000 |
Debt (Schedule of Long Term Deb
Debt (Schedule of Long Term Debt) (Details) - Senior Notes [Member] | Nov. 15, 2016EUR (€) | Jun. 25, 2015USD ($) | Jun. 25, 2015EUR (€) |
Senior EUR Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face value | € 440,000,000 | ||
Senior EUR Notes, Series D [Member] | |||
Debt Instrument [Line Items] | |||
Face value | € 190,000,000 | ||
Coupon | 0.84% | ||
Senior EUR Notes, Series E [Member] | |||
Debt Instrument [Line Items] | |||
Face value | € 80,000,000 | ||
Coupon | 1.20% | ||
Senior EUR Notes, Series F [Member] | |||
Debt Instrument [Line Items] | |||
Face value | € 170,000,000 | ||
Coupon | 1.36% | ||
Senior Domestic Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face value | $ 500,000,000 | € 500,000,000 | |
Series A Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face value | $ | $ 150,000,000 | ||
Coupon | 2.83% | 2.83% | |
Series B Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face value | $ | $ 200,000,000 | ||
Coupon | 3.08% | 3.08% | |
Series C Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face value | $ | $ 150,000,000 | ||
Coupon | 3.18% | 3.18% |
Debt (Maturities of Long-term D
Debt (Maturities of Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 0 | |
2020 | 67.3 | |
2021 | 134.6 | |
2022 | 347.7 | |
2023 | 0 | |
Thereafter | 280.3 | |
Less unamortized debt issuance fees | (1.6) | |
Long-term debt | $ 828.3 | $ 845.2 |
Warranties, Guarantees, Commi_3
Warranties, Guarantees, Commitments and Contingencies (Narrative) (Details) R$ in Millions | Sep. 13, 2019USD ($) | Dec. 31, 2019USD ($)case | Dec. 31, 2019BRL (R$)case | Dec. 31, 2018USD ($) |
Guarantor Obligations [Line Items] | ||||
Standard warranty period | 2 years | |||
Future Minimum Rental Commitments [Abstract] | ||||
Bank guarantees | $ 27,900,000 | |||
Pledged inventory and receivables | $ 15,800,000 | $ 28,200,000 | ||
Loss Contingency Accrual, Number Of Cases | case | 1 | 1 | ||
Loss contingency accrual | $ 9,700,000 | R$ 38.9 | ||
Estimated total amount of the contingency | 15,900,000 | |||
Tax Litigation Claims [Member] | ||||
Future Minimum Rental Commitments [Abstract] | ||||
Uncollateralized bank guarantees | 17,000,000 | |||
Letters of Credit [Member] | ||||
Future Minimum Rental Commitments [Abstract] | ||||
Uncollateralized bank guarantees | 3,000,000 | |||
Other Items [Member] | ||||
Future Minimum Rental Commitments [Abstract] | ||||
Uncollateralized bank guarantees | $ 7,900,000 | |||
Meritor [Member] | Minimum [Member] | ||||
Future Minimum Rental Commitments [Abstract] | ||||
Related Party, Distribution Agreement, Termination Amount | $ 225,000,000 | |||
Meritor [Member] | Maximum [Member] | ||||
Future Minimum Rental Commitments [Abstract] | ||||
Related Party, Distribution Agreement, Termination Amount | $ 265,000,000 |
Warranties, Guarantees, Commi_4
Warranties, Guarantees, Commitments and Contingencies (Summary of Changes in the Company's Product Warranty Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance of warranty costs accrued, beginning of period | $ 43.7 | $ 50.9 | |
Warranty claims settled | (29.7) | (36.4) | $ (36) |
Foreign exchange translation effects | (0.7) | (2.1) | 5.1 |
Balance of warranty costs accrued, end of period | 48.6 | 43.7 | 50.9 |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 35.3 | 31.3 | 32.5 |
Product Warranty Accrual, Recoveries | (0.8) | (0.5) | (2) |
Current liability, included in current portion of warranties | 28.1 | 23.3 | 29.5 |
Long-term liability, included in other liabilities | 20.5 | 20.4 | 21.4 |
Product Warranty Expense | $ 34.5 | $ 30.8 | $ 30.5 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes and Applicable Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes: | |||||||||||
Domestic | $ 46,100 | $ 36,200 | $ 227,300 | ||||||||
Foreign | 266,700 | 427,500 | 425,300 | ||||||||
Income before income taxes | $ 40,600 | $ 76,700 | $ 95,600 | $ 100,000 | $ 104,600 | $ 93,300 | $ 132,800 | $ 133,000 | 312,800 | 463,700 | 652,600 |
Current: | |||||||||||
Domestic | 4,300 | 1,500 | (9,800) | ||||||||
Domestic Transition Tax | 0 | 5,900 | 196,400 | ||||||||
Foreign | 68,500 | 65,500 | 91,300 | ||||||||
Current (benefit) / provision for income taxes | 72,800 | 72,900 | 277,900 | ||||||||
Deferred: | |||||||||||
Domestic | 2,900 | 4,600 | (30,000) | ||||||||
Foreign | (22,300) | (28,200) | (18,200) | ||||||||
Deferred (benefit) / provision for income taxes | (19,400) | (23,600) | (48,200) | ||||||||
Total provision | $ 4,500 | $ 15,900 | $ 20,900 | $ 12,100 | $ (14,000) | $ 13,500 | $ 23,500 | $ 26,300 | $ 53,400 | $ 49,300 | $ 229,700 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) ₨ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019INR (₨) | May 31, 2018USD ($) | May 31, 2018INR (₨) | Mar. 31, 2018USD ($) | Mar. 31, 2018INR (₨) | Feb. 28, 2018USD ($) | Feb. 28, 2018INR (₨) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019INR (₨) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Effective tax rate | 17.10% | 17.10% | 10.60% | 35.20% | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 35.00% | ||||||||||
Effective Income Tax Rate Reconciliation, Unremitted Foreign Earnings, Amount | $ 6.5 | $ 0 | $ 0 | |||||||||||
2013-14 PID claim | 0 | (33.3) | 0 | |||||||||||
EPR Clawback/2013-14 PID offset, percent | 2.10% | |||||||||||||
Effective Income Tax Rate Reconciliation, Debt Restructuring, Amount | (5) | |||||||||||||
Effective Income Tax Rate Reconciliation, Debt Restructuring, Percent | 0.016 | |||||||||||||
Hybrid financing structure | $ 0 | (11.4) | (11.5) | |||||||||||
Patent Income Deduction | (21.5) | (22.9) | (21.7) | |||||||||||
Effective Income Tax Rate Reconciliation, Deductions, Belgium Patent Income Deduction, Percent | 6.90% | |||||||||||||
Income Tax Expense, Clawback Of Tax Benefits | $ 69.3 | |||||||||||||
Unrecognized tax benefits period increase (decrease) | (3) | (32) | (8) | |||||||||||
Unrecognized tax benefit, EPR Clawback | $ 30.1 | |||||||||||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability | 157.7 | 157.7 | ||||||||||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current | 4 | 4 | ||||||||||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent | 153.7 | 153.7 | ||||||||||||
Unrecognized tax benefit, EPR Clawback, translation adjustment | 2.4 | |||||||||||||
Unrecognized tax benefits, change in tax rate revaluation adjustments | (8.3) | |||||||||||||
Net U.S. transition tax | 0 | 5.8 | 100 | |||||||||||
Foreign earnings taxed at other than statutory rate | (29.8) | (33.2) | 21.6 | |||||||||||
Change in deferred tax asset valuation allowance | (0.1) | (10.6) | (1.8) | |||||||||||
Tax assessment amount | $ 49.7 | ₨ 3,500 | ||||||||||||
Penalty assessment | $ 30.1 | ₨ 2,100 | ||||||||||||
Percentage of penalty and interest expense | 5.00% | 5.00% | 15.00% | 15.00% | ||||||||||
Partial stay, penalty and interest expense | $ 2.4 | ₨ 175 | $ 7.5 | ₨ 531.4 | ||||||||||
Deposits made for tax penalty | 9.9 | ₨ 706.4 | ||||||||||||
Valuation allowances | 1.7 | 1.7 | 1.8 | |||||||||||
Net operating loss carry forwards (NOLs) | 174.7 | 174.7 | ||||||||||||
Net operating loss carry forwards (NOLs) with unlimited life | 130.6 | 130.6 | ||||||||||||
Operating loss carryforwards subject to expiration | 44.1 | $ 44.1 | ||||||||||||
Operating loss carryforwards, remaining life maximum | 20 years | 20 years | ||||||||||||
Operating loss carryforward, unrecognized tax benefit | 123.2 | $ 123.2 | ||||||||||||
Unrecognized tax benefits related to foreign tax positions | 32.1 | 32.1 | ||||||||||||
Unrecognized tax benefits, settlements | 1.9 | 0 | 0.2 | |||||||||||
Unrecognized Tax Benefits, Timing Of Payment Unknown | 3.2 | 3.2 | ||||||||||||
Foreign net operating losses and tax credits | 6.8 | 6.8 | 8.5 | |||||||||||
Accrued interest | 0.4 | 0.4 | 0.6 | 0.4 | ||||||||||
Unrecognized tax benefit, EPR Clawback, period increase (decrease) | (2.8) | (33.3) | ||||||||||||
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 3.6 | |||||||||||||
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 2.3 | |||||||||||||
Unrecognized tax benefits, increase resulting from foreign currency translation | 9 | |||||||||||||
Unrecognized tax benefits that would have an impact | 34.9 | 34.9 | 39.6 | |||||||||||
Unremitted earnings permanently reinvested outside the U.S. | 15.9 | 15.9 | ||||||||||||
United States | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Change in enacted tax rate | 0 | 2 | (32.4) | |||||||||||
Belgium | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Change in enacted tax rate | 1.7 | $ 5.2 | $ 13.8 | |||||||||||
Noncurrent liability [Member] | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Unrecognized tax benefits that would have an impact | 35.3 | $ 35.3 | ||||||||||||
Belgian Deferred Tax Asset | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 11.4 | |||||||||||||
Other | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 0.8 | |||||||||||||
Income Tax Benefit, Arbitration Claim Settlement | 10.6 | |||||||||||||
Belgium | ||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||
Additional tax deduction from arbitration claim settlement | $ 38.6 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Actual Income Tax Expense to Statutory Federal Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Tax provision at statutory rate | $ 65,700 | $ 97,400 | $ 228,300 | ||||||||
State income taxes, net | (600) | (2,600) | 8,900 | ||||||||
Foreign earnings taxed at other than statutory rate | 29,800 | 33,200 | (21,600) | ||||||||
Decrease in valuation allowance | (100) | (10,600) | (1,800) | ||||||||
Unremitted foreign earnings | (6,500) | 0 | 0 | ||||||||
2013-14 PID claim | 0 | (33,300) | 0 | ||||||||
Patent Income Deduction | (21,500) | (22,900) | (21,700) | ||||||||
High & New Technology Enterprise (HNTE) | (6,200) | (8,700) | (10,500) | ||||||||
Fair market value step-up in assets | (5,000) | 0 | 0 | ||||||||
Hybrid financing structure | $ 0 | (11,400) | (11,500) | ||||||||
Net U.S. transition tax | 0 | 5,800 | 100,000 | ||||||||
Other, net | (3,900) | (4,800) | (21,800) | ||||||||
Total provision | $ 4,500 | $ 15,900 | $ 20,900 | $ 12,100 | $ (14,000) | $ 13,500 | $ 23,500 | $ 26,300 | 53,400 | 49,300 | 229,700 |
Belgium | |||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Change in enacted tax rate | 1,700 | 5,200 | 13,800 | ||||||||
United States | |||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Change in enacted tax rate | $ 0 | $ 2,000 | $ (32,400) |
Income Taxes (Gross Deferred Ta
Income Taxes (Gross Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax liabilities: | ||
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | $ 14.7 | $ 17.6 |
Basis difference in subsidiaries | 60.5 | 65 |
Intangibles | 10 | 12.5 |
Deferred tax liabilities | 85.2 | 95.1 |
Deferred tax assets: | ||
Foreign net operating losses and tax credits | 6.8 | 8.5 |
Post-retirement and other employee benefits | 179.2 | 149.3 |
Capitalized assets | 73.1 | 69.2 |
Inventory | 1.4 | 1.6 |
Warranties | 3.4 | 2.1 |
Unrealized foreign exchange losses | 10.6 | 10 |
Other | 16.2 | 17.5 |
Deferred tax assets | 290.7 | 258.2 |
Valuation allowances | (1.7) | (1.8) |
Net deferred tax assets | $ 203.8 | $ 161.3 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, Beginning Balance | $ 39.6 | $ 71.6 | |
Additions for tax positions related to current year | 0.2 | 0 | $ 1.7 |
Additions for tax positions related to prior years | 0 | 3.4 | 4.2 |
Reductions for tax positions related to current year | (3) | (35.4) | (3.4) |
Cash settlements | (1.9) | 0 | (0.2) |
Expirations of statute of limitations | 0 | 0 | (0.1) |
Unrecognized tax benefits, Ending Balance | $ 34.9 | $ 39.6 | $ 71.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | |
Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dividends from unconsolidated joint ventures | $ 1.7 | $ 0 | $ 22.6 | |
WABCOWURTH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Sheppard [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
SSCS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 37.50% | |||
G7 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Meritor WABCO [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | 156.8 | |||
WABCO SA [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | 4.7 | |||
Sanwa-Seiki [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | $ 0 | 0 | 0 | |
WABCO Purchases from | $ 20 | 22.1 | 25.6 | |
Consolidated joint venture, ownership interest | 90.00% | |||
Cummins [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | $ 85.1 | 96.4 | 83.4 | |
WABCO Purchases from | $ 0 | 0 | 0 | |
Consolidated joint venture, ownership interest | 70.00% | |||
FUWA [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | $ 4.3 | 9.3 | 6.9 | |
WABCO Purchases from | 0 | 0 | 0 | |
Consolidated joint venture, ownership interest | 70.00% | |||
FAW [Member] | ||||
Related Party Transaction [Line Items] | ||||
WABCO Sales to | 0 | 0 | 0 | |
WABCO Purchases from | $ 0.2 | $ 0 | $ 0 | |
Consolidated joint venture, ownership interest | 60.00% |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 3,421.4 | $ 3,831 | $ 3,304.2 |
Long-lived Assets | 1,836.3 | 1,694.6 | 1,711.6 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 785.1 | 830.6 | 579.6 |
Long-lived Assets | 730.9 | 711.9 | 715.3 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,656.1 | 1,872.6 | 1,705.3 |
Long-lived Assets | 788.3 | 710.3 | 706.1 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 569.2 | 700.9 | 676.3 |
Long-lived Assets | 389.7 | 353.3 | 315.2 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 99.6 | 110.5 | 93.5 |
Netherlands | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 118.1 | 132.1 | 115.2 |
Sweden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 202 | 226.3 | 214.2 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 166.4 | 152.8 | 153.6 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 980.2 | 1,127.8 | 1,019.3 |
Long-lived Assets | 317.1 | 272.4 | 290.2 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 120.4 | 118.4 | 115.4 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 343.5 | 391 | 411.9 |
Long-lived Assets | 69 | 58.1 | 56.5 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 128.7 | 115.4 | 88.9 |
India | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 173.1 | 284.4 | 231.3 |
Long-lived Assets | 129.9 | 113 | 106.6 |
OEM [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,524.1 | 2,868.9 | 2,511.8 |
Aftermarket [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 897.3 | $ 962.1 | $ 792.4 |
Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Geographic Concentration Risk [Member] | Sales [Member] | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 24.00% | 23.00% | 18.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 22.00% | 24.00% | 26.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 48.00% | 49.00% | 52.00% |
Daimler [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 13.00% | 11.00% | |
Volvo [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 12.00% | 11.00% | 8.00% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Derivative [Line Items] | |||||
Long-term Debt | € | € 299.4 | ||||
Unrealized gain (loss) on derivatives, net of tax | $ 0 | $ 800,000 | $ 200,000 | ||
Nonoperating gains | 4,700,000 | 2,900,000 | |||
Other non-operating expense, net [Member] | |||||
Derivative [Line Items] | |||||
Derivative instruments, net gain (loss) | 6,400,000 | 1,100,000 | |||
Additional Foreign Currency Forward Contracts [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | 10,000,000 | ||||
Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 202,700,000 | 194,800,000 | 180.8 | € 170.2 | |
Average duration of derivatives | 1 month | ||||
Senior EUR Notes [Member] | |||||
Derivative [Line Items] | |||||
Long-term Debt | $ 492,500,000 | 439.1 | |||
Senior EUR Notes [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivatives, net of tax | 15,700,000 | ||||
Tax on unrealized gain (loss) on net investment hedge | 6,000,000 | ||||
Net Investment Hedging [Member] | Senior EUR Notes [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Long-term Debt | 493,500,000 | 503,600,000 | € 440 | € 440 | |
Unrealized gain (loss) on derivatives, net of tax | (9,000,000) | 16,800,000 | |||
Tax on unrealized gain (loss) on net investment hedge | $ 2,500,000 | $ (4,700,000) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Schedule of Derivative Instruments) (Details) - Foreign Exchange Forward [Member] € in Millions, ¥ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | Dec. 31, 2019PLN (zł) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2018GBP (£) |
Derivative [Line Items] | ||||||||||
Notional amount of derivative | $ 202.7 | € 180.8 | $ 194.8 | € 170.2 | ||||||
China, Yuan Renminbi | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of derivative | 133.1 | ¥ 930 | 123.4 | ¥ 849 | ||||||
Hong Kong, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of derivative | 34.4 | $ 267 | 36.4 | $ 285 | ||||||
United Kingdom, Pounds | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of derivative | $ 14.9 | £ 11.7 | ||||||||
Poland, Zlotych | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of derivative | $ 11.8 | zł 45 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Security Owned Not Readily Marketable, Quoted Price, Period Increase (Decrease) | $ 2.2 | ||
Impairment of investment | (2.2) | $ 5.5 | $ 0 |
Security Owned Not Readily Marketable, Quoted Price | 27.6 | 25.4 | |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 83.1 | 70.8 | |
Short-term and other investments | 67.6 | 135.8 | |
Other Assets, Fair Value Disclosure | 2.8 | 2.8 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | |
Short-term and other investments | 0 | 0 | |
Other Assets, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 83.1 | 70.8 | |
Short-term and other investments | 67.6 | 135.8 | |
Other Assets, Fair Value Disclosure | 2.8 | 2.8 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | |
Short-term and other investments | 0 | 0 | |
Other Assets, Fair Value Disclosure | $ 0 | 0 | |
Other non-operating expense, net [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value In Excess of Carrying Value | $ 5.5 |
Business Combinations Additiona
Business Combinations Additional Information (Details) - USD ($) | Sep. 13, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||
Gain on remeasurement of equity investments | $ 0 | $ 0 | $ 247,700,000 | ||
Currency translation adjustments | (9,500,000) | (71,200,000) | 154,200,000 | ||
Goodwill | $ 802,500,000 | 809,400,000 | 834,700,000 | ||
Meritor [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | 241,000,000 | ||||
Gain on remeasurement of equity investments | 247,700,000 | ||||
Sheppard [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments for business combination | $ 148,100,000 | ||||
Business Combination, Contingent Consideration, Liability | $ 6,400,000 | ||||
Asset Trackr [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 2,900,000 | ||||
Minimum [Member] | Meritor [Member] | |||||
Business Acquisition [Line Items] | |||||
Related Party, Distribution Agreement, Termination Amount | $ 225,000,000 | ||||
Maximum [Member] | Meritor [Member] | |||||
Business Acquisition [Line Items] | |||||
Related Party, Distribution Agreement, Termination Amount | $ 265,000,000 |
Business Combinations Schedule
Business Combinations Schedule of Recognized Identified Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 834.7 | $ 802.5 | $ 809.4 |
Meritor [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 241 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jan. 30, 2020USD ($) |
Bendix Commercial Vehicle Systems LLC [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Definitive Agreement, Selling Price Of Business | $ 149.5 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 777,400 | $ 798,400 | $ 912,800 | $ 932,900 | $ 911,600 | $ 914,800 | $ 1,001,200 | $ 1,003,300 | $ 3,421,400 | $ 3,831,000 | $ 3,304,200 |
Cost of sales | 565,800 | 559,500 | 644,000 | 660,000 | 633,500 | 639,700 | 690,900 | 694,300 | 2,429,400 | 2,658,500 | 2,290,400 |
Gross Profit | 211,600 | 238,900 | 268,800 | 272,900 | 278,100 | 275,100 | 310,300 | 309,000 | 992,000 | 1,172,500 | 1,013,800 |
Income before income taxes | 40,600 | 76,700 | 95,600 | 100,000 | 104,600 | 93,300 | 132,800 | 133,000 | 312,800 | 463,700 | 652,600 |
Income tax expense/(benefit) | 4,500 | 15,900 | 20,900 | 12,100 | (14,000) | 13,500 | 23,500 | 26,300 | 53,400 | 49,300 | 229,700 |
Net income attributable to Company | $ 33,200 | $ 58,000 | $ 70,600 | $ 84,200 | $ 114,500 | $ 74,500 | $ 104,400 | $ 100,700 | $ 245,800 | $ 394,100 | $ 406,100 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $ 0.65 | $ 1.13 | $ 1.38 | $ 1.64 | $ 2.21 | $ 1.42 | $ 1.96 | $ 1.87 | $ 4.80 | $ 7.46 | $ 7.53 |
Diluted (in dollars per share) | $ 0.65 | $ 1.13 | $ 1.38 | $ 1.64 | $ 2.20 | $ 1.41 | $ 1.95 | $ 1.87 | $ 4.78 | $ 7.43 | $ 7.50 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts receivable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve deducted from assets: | |||
Balance Beginning of Period | $ 10,735 | $ 9,358 | $ 6,479 |
Additions Charged to Expense | 2,314 | 2,205 | 2,460 |
Deductions | (557) | (390) | (445) |
Foreign Currency Translation Effects | (197) | (438) | 864 |
Balance End of Period | $ 12,295 | $ 10,735 | $ 9,358 |
Uncategorized Items - wbc10k123
Label | Element | Value |
Standard and Extended Product Warranty Accrual | us-gaap_ProductWarrantyAccrual | $ 49,300,000 |
Restricted Cash | us-gaap_RestrictedCash | 400,000 |
Restricted Cash | us-gaap_RestrictedCash | 0 |
Restricted Cash | us-gaap_RestrictedCash | 500,000 |
Unrecognized Tax Benefits | us-gaap_UnrecognizedTaxBenefits | 69,400,000 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 200,000 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (328,700,000) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (1,000,000) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (236,400,000) |
Accumulated Intra-Entity Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | $ (11,400,000) |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 101.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 160,310 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 101.31 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 175,690 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 287,531 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 45.07 |
Share-based Payment Arrangement, Option [Member] | Trane Inc [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 40,965 |
Share-based Payment Arrangement, Option [Member] | Wabco [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 246,566 |
Deferred Stock Units (DSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 95.93 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 17,083 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,400,000) |