Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | |
Common Stock | Non-voting Common Stock | ||
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 30-Sep-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Trading Symbol | ALSN | ||
Entity Registrant Name | ALLISON TRANSMISSION HOLDINGS INC | ||
Entity Central Index Key | 1411207 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 182,375,612 | 1,185 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $152.30 | $80.20 |
Accounts receivables - net of allowance for doubtful accounts of $0.9 and $0.9, respectively | 198.7 | 165 |
Inventories | 165.9 | 157.1 |
Deferred income taxes, net | 56.9 | 55.3 |
Other current assets | 33.2 | 32.7 |
Total Current Assets | 607 | 490.3 |
Property, plant and equipment, net | 553.1 | 596.2 |
Intangible assets, net | 1,636 | 1,716.10 |
Goodwill | 1,941 | 1,941 |
Deferred income taxes, net | 1.1 | 32.3 |
Other non-current assets | 73 | 90.1 |
TOTAL ASSETS | 4,811.20 | 4,866 |
Current Liabilities | ||
Accounts payable | 163.9 | 133.1 |
Product warranty liability | 38.6 | 36.2 |
Current portion of long-term debt | 11.4 | 19.5 |
Deferred revenue | 21.6 | 21.6 |
Other current liabilities | 162.8 | 167.4 |
Total Current Liabilities | 398.3 | 377.8 |
Product warranty liability | 53.1 | 73.5 |
Deferred revenue | 41.7 | 42.6 |
Long-term debt | 2,719.80 | 2,801.30 |
Deferred income taxes | 37 | 0.1 |
Other non-current liabilities | 193.5 | 213.8 |
TOTAL LIABILITIES | 3,443.40 | 3,509.10 |
Commitments and contingencies (see NOTE N) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding | ||
Treasury stock | -0.2 | |
Paid in capital | 1,611.40 | 1,601.50 |
Accumulated deficit | -194.9 | -202.3 |
Accumulated other comprehensive loss, net of tax | -50.5 | -43.9 |
TOTAL STOCKHOLDERS' EQUITY | 1,367.80 | 1,356.90 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 4,811.20 | 4,866 |
Common Stock | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 1.8 | 1.8 |
Non-voting Common Stock | ||
STOCKHOLDERS' EQUITY | ||
Common stock | $0 | $0 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivables | $0.90 | $0.90 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,880,000,000 | 1,880,000,000 |
Common stock, shares issued | 182,326,604 | 182,326,604 |
Common stock, shares outstanding | 182,326,604 | 182,326,604 |
Non-voting Common Stock | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 1,185 | 1,185 |
Common stock, shares outstanding | 1,185 | 1,185 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $466.30 | $493.50 | $1,435.80 | $1,654.80 |
Cost of sales | 260.2 | 269.1 | 805.3 | 894.7 |
Gross profit | 206.1 | 224.4 | 630.5 | 760.1 |
Selling, general and administrative expenses | 74 | 96.7 | 247.5 | 307 |
Engineering - research and development | 20.9 | 35.9 | 72.7 | 87 |
Operating income | 111.2 | 91.8 | 310.3 | 366.1 |
Interest income | 0.2 | 0.1 | 0.6 | 0.7 |
Interest expense | -37.5 | -40.9 | -105.1 | -116.3 |
Other expense, net | -1.5 | -1.8 | -7.2 | -55.4 |
Income before income taxes | 72.4 | 49.2 | 198.6 | 195.1 |
Income tax (expense) benefit | -27.9 | -17 | -76.1 | 307.9 |
Net income | 44.5 | 32.2 | 122.5 | 503 |
Basic earnings per share attributable to common stockholders | $0.24 | $0.18 | $0.66 | $2.77 |
Diluted earnings per share attributable to common stockholders | $0.24 | $0.17 | $0.65 | $2.70 |
Dividends declared per common share | $0.12 | $0.06 | $0.30 | $0.12 |
Comprehensive income | $47 | $38.60 | $115.90 | $508 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $122.50 | $503 |
Add (deduct) items included in net income not using (providing) cash: | ||
Amortization of intangible assets | 80.1 | 112.5 |
Depreciation of property, plant and equipment | 74.1 | 76 |
Deferred income taxes | 77.8 | -311.8 |
Unrealized gain on derivatives | -22.2 | -17.3 |
Stock-based compensation | 10.7 | 4.5 |
Excess tax benefit from stock-based compensation | -9.3 | -1.7 |
Amortization of deferred financing costs | 8.4 | 11.3 |
Impairment loss on investment in technology-related initiatives | 2.5 | 14.4 |
Loss on intercompany foreign exchange | 2.3 | |
Loss on repayments and redemptions of long-term debt | 0.5 | 21.6 |
Loss on re-measurement of employee benefit plan | 2.3 | |
Other | -0.1 | 0.9 |
Changes in assets and liabilities: | ||
Accounts receivable | -33.6 | -10.3 |
Inventories | -10 | -31.6 |
Accounts payable | 31 | 13.6 |
Other assets and liabilities | -19.3 | -2 |
Net cash provided by operating activities | 315.4 | 385.4 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions of long-lived assets | -41.2 | -93.9 |
Investments in technology-related initiatives | -6.3 | -14.4 |
Collateral for interest rate derivatives | 1.3 | -0.7 |
Proceeds from disposal of assets | 0.4 | 0.5 |
Net cash used for investing activities | -45.8 | -108.5 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | -99.5 | |
Payments on long-term debt | -89.6 | -150.5 |
Dividend payments | -55.2 | -21.8 |
Proceeds from exercise of stock options | 33.5 | 10.1 |
Excess tax benefit from stock-based compensation | 9.3 | 1.7 |
Taxes paid related to net share settlement of equity awards | -3.6 | |
Debt financing fees | -2.6 | -18.4 |
Redemptions of long-term debt | -326.9 | |
Payments on notes payable | -2.5 | |
Net cash used for financing activities | -207.7 | -508.3 |
Effect of exchange rate changes on cash | 10.2 | -0.7 |
Net increase (decrease) in cash and cash equivalents | 72.1 | -232.1 |
Cash and cash equivalents at beginning of period | 80.2 | 314 |
Cash and cash equivalents at end of period | 152.3 | 81.9 |
Supplemental disclosures: | ||
Interest paid | 112.9 | 120.6 |
Income taxes paid | $3.50 | $9 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2013 | |
Overview | NOTE A. OVERVIEW |
Overview | |
Allison Transmission Holdings, Inc. and its subsidiaries (the “Company” or “Allison”), design and manufacture commercial and defense fully-automatic transmissions. | |
The business was founded in 1915 and has been headquartered in Indianapolis, Indiana since inception. The Company has 12 different transmission product lines. Although approximately 78% of revenues were generated in North America in 2012, the Company has a global presence by serving customers in Europe, Asia, South America and Africa. The Company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations worldwide. | |
Since the introduction of the Company’s first fully-automatic transmission over 60 years ago, the Company’s products have gained acceptance in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (principally school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (principally energy, mining and construction) and defense vehicles (wheeled and tracked). The Company has developed over 100 different product models that are used in more than 2,500 different vehicle configurations, which are compatible with more than 500 combinations of engine brands, models and ratings. The Company also sells support equipment and Allison-branded replacement parts for the Company’s transmissions and remanufactured transmissions for use in the vehicle aftermarket. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation and Principles of Consolidation | |
The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2013 and 2012 have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. | |
These condensed consolidated financial statements present the financial position, results of operations and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Significant estimates include, but are not limited to, allowance for doubtful accounts, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liability, determination of discount and other assumptions for pension and other postretirement benefit expense, income taxes and deferred tax valuation allowances, derivative valuation, and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur. | |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on the presentation of an unrecognized tax benefit when net operating loss (“NOL”) carryforwards exist. The guidance requires presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future. | |
In July 2013, the FASB issued authoritative accounting guidance on the inclusion of the Fed Funds Effective Swap Rate as a benchmark interest rate for hedge accounting purposes. The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance became effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have an effect on the Company’s consolidated financial statements as the Company does not currently elect hedge accounting treatment on its interest rate swaps. | |
In March 2013, the FASB issued authoritative accounting guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance clarifies that when a parent company ceases to have a controlling financial interest in a subsidiary or group of assets, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future. | |
In February 2013, the FASB issued authoritative accounting guidance on the presentation and disclosure of reclassifications out of accumulated other comprehensive income. The guidance gives an entity the option to present significant amounts reclassified out of each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the footnotes to the financial statements. The guidance became effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the condensed consolidated financial statements when significant amounts are reclassified out of accumulated other comprehensive income. | |
In January 2013, the FASB issued authoritative accounting guidance clarifying the scope of new balance sheet offsetting disclosures issued in December 2011 for derivatives, repurchase agreements and securities lending transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for interim and annual periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements. | |
In December 2011, the FASB issued authoritative accounting guidance on enhancing disclosures to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The guidance requires improved information and disclosures about gross and net amounts of recognized assets and liabilities of financial and derivative instruments that are offset in an entity’s statement of financial position. The guidance applies retrospectively for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories | NOTE C. INVENTORIES | ||||||||
Inventories consisted of the following components (dollars in millions): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Purchased parts and raw materials | $ | 82.5 | $ | 80.6 | |||||
Work in progress | 8 | 7.5 | |||||||
Service parts | 45.6 | 44.5 | |||||||
Finished goods | 29.8 | 24.5 | |||||||
Total inventories | $ | 165.9 | $ | 157.1 | |||||
Inventory components shipped to third parties, principally transmission cores, parts to re-manufacturers, and parts to contract manufacturers, in which the Company has an obligation to buyback, are included in purchased parts and raw materials, with an offsetting liability in Other current liabilities. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | NOTE D. GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the carrying amount of the Company’s Goodwill was $1,941.0 million. The following presents a summary of other intangible assets (dollars in millions): | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Intangible | Accumulated | Intangible | Intangible | Accumulated | Intangible | ||||||||||||||||||||
assets, gross | amortization | assets, net | assets, gross | amortization | assets, net | ||||||||||||||||||||
Other intangible assets: | |||||||||||||||||||||||||
Trade name | $ | 870 | $ | — | $ | 870 | $ | 870 | $ | — | $ | 870 | |||||||||||||
Customer relationships — defense | 62.3 | (23.4 | ) | 38.9 | 62.3 | (20.8 | ) | 41.5 | |||||||||||||||||
Customer relationships — commercial | 831.8 | (361.5 | ) | 470.3 | 831.8 | (321.2 | ) | 510.6 | |||||||||||||||||
Proprietary technology | 476.3 | (234.3 | ) | 242 | 476.3 | (205.8 | ) | 270.5 | |||||||||||||||||
Non-compete agreement | 17.3 | (10.7 | ) | 6.6 | 17.3 | (9.4 | ) | 7.9 | |||||||||||||||||
Patented technology — defense | 28.2 | (20.4 | ) | 7.8 | 28.2 | (17.9 | ) | 10.3 | |||||||||||||||||
Tooling rights | 4.5 | (4.1 | ) | 0.4 | 4.5 | (3.9 | ) | 0.6 | |||||||||||||||||
Patented technology — commercial | 260.6 | (260.6 | ) | — | 260.6 | (255.9 | ) | 4.7 | |||||||||||||||||
Total | $ | 2,551.00 | $ | (915.0 | ) | $ | 1,636.00 | $ | 2,551.00 | $ | (834.9 | ) | $ | 1,716.10 | |||||||||||
As of September 30, 2013 and December 31, 2012, the net carrying value of the Company’s Goodwill and other intangibles was $3,577.0 million and $3,657.1 million, respectively. | |||||||||||||||||||||||||
The Company performs its annual impairment review of Goodwill and trade name carrying values on October 31 of every year. Events or circumstances that could unfavorably impact the key assumptions in the impairment test include lower net sales, the Company’s inability to execute on marketing programs and/or delay in the introduction of new products, lower gross margins or failure to obtain forecasted cost reductions, or a higher discount rate as a result of market conditions. | |||||||||||||||||||||||||
Amortization expense related to other intangible assets for the next five years and thereafter is expected to be (dollars in millions): | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Amortization expense | $ | 98.8 | $ | 97.1 | $ | 92.4 | $ | 89.7 | $ | 87.2 | $ | 275.5 | |||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value of Financial Instruments | NOTE E. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
In accordance with the FASB’s authoritative accounting guidance on fair value measurements, fair value is the price (exit price) that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company principally applies the market approach for recurring fair value measurements and utilizes the best available information that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the relevant guidance are as follows: | |||||||||||||||||||||||||
Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 principally consists of financial instruments such as exchange-traded derivatives, listed equities and publicly traded bonds. | |||||||||||||||||||||||||
Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are principally industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||||||||||
Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all instruments subject to authoritative accounting guidance and includes, in Level 3, all of those whose fair value is based on significant unobservable inputs. As of September 30, 2013 and December 31, 2012, the Company did not have any Level 3 financial assets or liabilities. | |||||||||||||||||||||||||
The Company’s assets and liabilities that are measured at fair value include cash and cash equivalents, available-for-sale securities, derivative instruments, assets held in a rabbi trust and a deferred compensation obligation. The Company’s cash equivalents consist of short-term U.S. government backed securities. The Company’s available-for-sale securities consist of ordinary shares of Torotrak plc (“Torotrak”) associated with a license and exclusivity agreement with Torotrak. Torotrak’s listed shares are traded on the London Stock Exchange under the ticker symbol “TRK.” The Company’s derivative instruments consist of interest rate swaps, foreign currency forward contracts and commodity swaps. The Company’s assets held in the rabbi trust consist principally of publicly available mutual funds and target date retirement funds. The Company’s deferred compensation obligation is directly related to the fair value of assets held in the rabbi trust. | |||||||||||||||||||||||||
The Company’s valuation techniques used to fair value cash and cash equivalents, available-for-sale securities, assets held in the rabbi trust and the deferred compensation obligation represent a market approach in active markets for identical assets that qualifies as Level 1 in the fair value hierarchy. The Company’s valuation techniques used to calculate the fair value of derivative instruments represent a market approach with observable inputs that qualify as Level 2 in the fair value hierarchy. | |||||||||||||||||||||||||
The foreign currency contracts consist of forward rate contracts which are intended to hedge exposure of transactions denominated in certain currencies and reduce the impact of currency price volatility on the Company’s financial results. The commodity contracts consist of forward rate contracts which are intended to hedge exposure of transactions involving purchases of component parts and energy to power our facilities, reducing the impact of commodity price volatility on the Company’s financial results. | |||||||||||||||||||||||||
For the fair value measurement of foreign currency derivatives, the Company uses forward foreign exchange rates received from the issuing financial institution. These rates are periodically corroborated by comparing to third-party broker quotes. The foreign currency hedges are accounted for within the authoritative accounting guidance set forth on accounting for derivative instruments and hedging activities and have been recorded at fair value based upon quoted market rates. The fair values are included in Other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The Company generally does not elect to apply hedge accounting for these foreign currency contracts, and as a result, unrealized fair value adjustments and realized gains and losses are recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change. | |||||||||||||||||||||||||
For the fair value measurement of commodity derivatives, the Company uses forward prices received from the issuing financial institution. These rates are periodically corroborated by comparing to third-party broker quotes. The commodity derivatives are accounted for within the authoritative accounting guidance set forth on accounting for derivative instruments and hedging activities and have been recorded at fair value based upon quoted market rates. The fair values are included in Other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The Company has either not qualified for or not elected hedge accounting treatment for these commodity contracts, and as a result, unrealized fair value adjustments and realized gains and losses are recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||
For the fair value measurement of interest rate derivatives, the Company uses valuations from the issuing financial institution. The Company corroborates the valuation through the use of third-party valuation services using a standard replacement valuation model. The floating-to-fixed interest rate swaps are based on the London Interbank Offered Rate (“LIBOR”) which is observable at commonly quoted intervals. The fair values are included in other current and non-current liabilities in the Condensed Consolidated Balance Sheets. The Company has not qualified for hedge accounting treatment for the interest rate swaps and, as a result, fair value adjustments are charged directly to Interest expense in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||
The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2013 and December 31, 2012 (dollars in millions): | |||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | TOTAL | |||||||||||||||||||||||
Markets for Identical | Observable Inputs (Level 2) | ||||||||||||||||||||||||
Assets (Level 1) | |||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents | $ | 152.3 | $ | 80.2 | $ | — | $ | — | $ | 152.3 | $ | 80.2 | |||||||||||||
Available-for-sale securities | 9.5 | 6.1 | — | — | 9.5 | 6.1 | |||||||||||||||||||
Rabbi trust assets | 1 | 0.2 | — | — | 1 | 0.2 | |||||||||||||||||||
Deferred compensation obligation | (1.0 | ) | (0.2 | ) | — | — | (1.0 | ) | (0.2 | ) | |||||||||||||||
Derivative assets | — | — | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||||||||
Derivative liabilities | — | — | (30.7 | ) | (52.9 | ) | (30.7 | ) | (52.9 | ) | |||||||||||||||
Total | $ | 161.8 | $ | 86.3 | $ | (30.5 | ) | $ | (52.7 | ) | $ | 131.3 | $ | 33.6 | |||||||||||
Of the available Cash and cash equivalents, approximately $147.3 million and $75.2 million was deposited in operating accounts while approximately $5.0 million and $5.0 million was invested in U.S. government backed securities as of September 30, 2013 and December 31, 2012, respectively. |
Debt
Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt | NOTE F. DEBT | ||||||||
Long-term debt and maturities were as follows (dollars in millions): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Long-term debt: | |||||||||
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 | $ | — | $ | 411.4 | |||||
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | 1,123.50 | 793.1 | |||||||
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | 1,136.40 | 1,145.00 | |||||||
Senior Notes, fixed 7.125%, due 2019 | 471.3 | 471.3 | |||||||
Total long-term debt | 2,731.20 | 2,820.80 | |||||||
Less: current maturities of long-term debt | 11.4 | 19.5 | |||||||
Total long-term debt less current portion | $ | 2,719.80 | $ | 2,801.30 | |||||
As of September 30, 2013, the Company had $1,123.5 million of indebtedness associated with Allison Transmission, Inc.’s (“ATI”), the Company’s wholly-owned subsidiary, Senior Secured Credit Facility Term B-2 Loan due 2017 (“Term B-2 Loan”) and $1,136.4 million of indebtedness associated with ATI’s Senior Secured Credit Facility Term B-3 Loan due 2019 (“Term B-3 Loan”) (together the Term B-2 Loan, Term B-3 Loan and revolving credit facility are defined as the “Senior Secured Credit Facility”). The Company also had indebtedness of $471.3 million of ATI’s 7.125% senior cash pay notes due May 2019 (“7.125% Senior Notes”). | |||||||||
The fair value of the Company’s long-term debt obligations as of September 30, 2013 was $2,761.7 million. The fair value was based on quoted Level 1 market prices of the Company’s debt as of September 30, 2013. It is not expected that the Company would be able to repurchase a significant amount of its debt at these levels. The difference between the fair value and carrying value of the long-term debt is driven principally by trends in the financial markets. | |||||||||
Senior Secured Credit Facility | |||||||||
In 2007, ATI entered into a Senior Secured Credit Facility having a term loan in the amount of $3,100.0 million with a maturity date of August 2014. In March 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $801.1 million in principal amount of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company’s option to either (a) 3.50% over the LIBOR or (b) 2.50% over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%. As a result of the debt modification, the Company recorded an additional $2.3 million as deferred financing fees in the Condensed Consolidated Balance Sheets and extended the amortization period of $5.1 million of deferred financing fees from 2014 to 2017. | |||||||||
In August 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $850.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company’s option to either (a) 3.25% or 3.00%, subject to the Company’s total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company’s total leverage ratio, over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.5% (which may not be less than 2.00%). The amendment was treated as an extinguishment of debt under GAAP, and thus the Company expensed $4.5 million of deferred financing fees and recorded $16.1 million of new deferred financing fees in the condensed consolidated financial statements. | |||||||||
In October 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $300.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company’s option to either (a) 3.25% or 3.00%, subject to the Company’s total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company’s total leverage ratio, over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50% (which may not be less than 2.00%). The amendment was treated as an extinguishment of debt under GAAP, and thus the Company expensed $1.4 million of deferred financing fees and recorded $1.8 million of new deferred financing fees in the condensed consolidated financial statements. | |||||||||
In February 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $793.1 million of term loan debt and decrease the applicable margin for such term loans at the Company’s option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%. In February 2013, ATI also entered into an additional amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $411.4 million of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company’s option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%. The February 2013 amendments were treated as a modification of debt under GAAP, and the Company expensed $1.0 million of deferred financing fees and recorded $1.6 million of new deferred financing fees in the condensed consolidated financial statements. | |||||||||
In August 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $1,139.3 million of term loan debt and decrease the applicable margin for such term loans at the Company’s option to either (a) 2.75% or 2.50%, subject to the Company’s total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 1.75% or 1.50%, subject to the Company’s total leverage ratio, over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50% (which may not be less than 2.00%). The amendment was treated as a modification of debt under GAAP, and thus the Company expensed $2.1 million of deferred financing fees and recorded $1.0 million of new deferred financing fees in the condensed consolidated financial statements. | |||||||||
The Senior Secured Credit Facility is collateralized by a lien on substantially all assets of the Company including all of ATI’s capital stock and all of the capital stock or other equity interest held by the Company, ATI and each of the Company’s existing and future U.S. subsidiary guarantors (subject to certain limitations for equity interests of foreign subsidiaries and other exceptions set forth in the terms of the Senior Secured Credit Facility). Interest on the Term B-2 Loan, as of September 30, 2013, is equal to the LIBOR plus 3.00% and interest on the Term B-3 Loan, as of September 30, 2013, is equal to the LIBOR (which may not be less than 1.00%) plus 2.75% based on the Company’s total leverage ratio. As of September 30, 2013, these rates were approximately 3.19% and 3.75% on the Term B-2 Loan and Term B-3 Loan, respectively, and the weighted average rate on the Senior Secured Credit Facility was approximately 3.47%. The Senior Secured Credit Facility requires minimum quarterly principal payments on the Term B-2 Loan and Term B-3 Loan as well as prepayments from certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events and from a percentage of excess cash flow, if applicable. Due to voluntary prepayments, the Company has fulfilled all Term B-2 Loan required quarterly payments through its maturity date of 2017. The minimum required quarterly principal payment on the Term B-3 Loan is $2.8 million and remains through its maturity date of 2019. As of September 30, 2013, there had been no payments required for certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events. The remaining principal balance on each loan is due upon maturity. | |||||||||
In accordance with the Senior Secured Credit Facility, net cash proceeds of non-ordinary course asset sales and casualty and condemnation events will only be required to prepay the term loan if the Company does not reinvest or commit to reinvest such net cash proceeds in assets to be used in its business or to make certain other permitted investments within 15 months of the related transactions or events, subject to certain limitations. The Company must apply 50% of its annual excess cash flow (as defined in the Senior Secured Credit Facility) to the prepayment of the Senior Secured Credit Facility, however this percentage reduces to certain levels and eventually to zero upon achievement of certain total senior secured leverage ratios. For the year ended December 31, 2012, the excess cash flow percentage was 0%, and as a result, the Company was not required to make an excess cash flow payment. | |||||||||
The Senior Secured Credit Facility also provides for $400.0 million in revolving credit borrowings, net of an allowance for up to $50.0 million in outstanding letter of credit commitments. Throughout the nine months ended September 30, 2013, the Company made periodic withdrawals and payments on the revolving credit facility as part of its debt management plans. The maximum amount outstanding at any time during the period on the revolving credit facility was $20.0 million, and all balances were repaid within the quarter they were borrowed. As of September 30, 2013, the Company had $386.4 million available under the revolving credit facility, net of $13.6 million in letters of credit. Revolving credit borrowings bear interest at a variable base rate plus an applicable margin based on the Company’s total senior secured leverage ratio. As of September 30, 2013, this rate would have been between approximately 2.94% and 5.00%. In addition, there is an annual commitment fee, based on the Company’s total senior secured leverage ratio, which as of September 30, 2013, was equal to 0.5% of the average unused revolving credit borrowings available under the Senior Secured Credit Facility. Revolving credit borrowings are payable at the option of the Company throughout the term of the Senior Secured Credit Facility with the balance due in August 2016. | |||||||||
The Senior Secured Credit Facility requires the Company to maintain a specified maximum total senior secured leverage ratio. As of September 30, 2013, the Company was in compliance with the maximum total senior secured leverage ratio achieving a 3.48x ratio versus a 5.50x requirement threshold. Within the terms of the Senior Secured Credit Facility, a senior secured leverage ratio above 3.50x results in a 0.5% commitment fee on the revolving credit facility and requires excess cash flow payments on the term loans for the applicable year. A senior secured leverage ratio at or below 3.50x would result in a 12.5 basis point reduction to the revolving credit facility commitment fee and elimination of excess cash flow payments. Additionally, the Company achieved a total leverage ratio of 4.26x as of September 30, 2013. Within the terms of the Senior Secured Credit Facility, a total leverage ratio at or below 3.25x would result in a 25 basis point reduction to the applicable margin on the Term B-3 Loan. This reduction would remain in effect as long as the Company achieved a total leverage ratio at or below 3.25x. | |||||||||
In addition, the Senior Secured Credit Facility, among other things, includes customary restrictions (subject to certain exceptions) on the Company’s ability to incur certain indebtedness, grant certain liens, make certain investments or declare or pay certain dividends. As of September 30, 2013, the Company is in compliance with all covenants under the Senior Secured Credit Facility. | |||||||||
7.125% Senior Notes | |||||||||
In May 2011, the Company completed an offering of $500.0 million of the 7.125% Senior Notes. The Company may from time to time seek to retire the 7.125% Senior Notes through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, contractual redemptions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Prior to May 15, 2015, the Company may redeem some or all of the 7.125% Senior Notes by paying the applicable “make-whole” premium. At any time on or after May 15, 2015, the Company may redeem some or all of the 7.125% Senior Notes at specified redemption prices in the governing indenture. | |||||||||
The 7.125% Senior Notes are unsecured and guaranteed by the subsidiaries that guarantee the Senior Secured Credit Facility and will be unconditionally guaranteed, jointly and severally, by any future domestic subsidiaries that guarantee the Senior Secured Credit Facility. |
Derivatives
Derivatives | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Derivatives | NOTE G. DERIVATIVES | ||||||||||||||||||||
The Company is exposed to certain financial risk from volatility in interest rates, foreign exchange rates and commodity prices. The risk is managed through the use of financial derivative instruments including interest rate swaps, foreign currency forward contracts and commodity swaps. The Company’s current derivative instruments are used strictly as an economic hedge and not for speculative purposes. As necessary, the Company adjusts the values of the derivative instruments for counter-party or credit risk. | |||||||||||||||||||||
Interest Rate | |||||||||||||||||||||
The Company is subject to interest rate risk related to the Senior Secured Credit Facility and enters into interest rate swap contracts that are based on the LIBOR to manage a portion of this exposure. The Company has not elected hedge accounting treatment for these derivatives, and as a result, fair value adjustments are charged directly to Interest expense in the Condensed Consolidated Statements of Comprehensive Income. A summary of the Company’s interest rate derivatives as of September 30, 2013 and December 31, 2012 follows (dollars in millions): | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Interest Rate Swap D, due 2013 | $ | — | $ | — | $ | 125 | $ | (2.8 | ) | ||||||||||||
Interest Rate Swap E, due 2013 | — | — | 150 | (2.3 | ) | ||||||||||||||||
Interest Rate Swap F, due 2013 | — | — | 75 | (1.1 | ) | ||||||||||||||||
Interest Rate Swap G, due 2013 | — | — | 75 | (1.2 | ) | ||||||||||||||||
Interest Rate Swap H, due 2014 | 350 | (10.2 | ) | 350 | (19.0 | ) | |||||||||||||||
Interest Rate Swap I, due 2014 | 350 | (10.3 | ) | 350 | (19.2 | ) | |||||||||||||||
Interest Rate Swap J, due 2014 | 125 | (2.8 | ) | 125 | (3.3 | ) | |||||||||||||||
Interest Rate Swap K, due 2014 | 125 | (2.9 | ) | 125 | (3.4 | ) | |||||||||||||||
Interest Rate Swap L, due 2019 | 75 | (0.8 | ) | — | — | ||||||||||||||||
Interest Rate Swap M, due 2019 | 100 | (1.1 | ) | — | — | ||||||||||||||||
Interest Rate Swap N, due 2019 | 75 | (0.7 | ) | — | — | ||||||||||||||||
Interest Rate Swap O, due 2019 | 75 | (0.2 | ) | — | — | ||||||||||||||||
$ | 1,275.00 | $ | (29.0 | ) | $ | 1,375.00 | $ | (52.3 | ) | ||||||||||||
In July 2013, the Company entered into two new interest rate swaps to hedge its variable interest rate exposure on the Senior Secured Credit Facility. Interest Rate Swap L has a notional amount of $75.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 3.44% and a LIBOR floor of 1.00% with no independent collateral requirement. Interest Rate Swap M has a notional amount of $100.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 3.43% and a LIBOR floor of 1.00% with no independent collateral requirement. | |||||||||||||||||||||
In September 2013, the Company entered into two new interest rate swaps to hedge its variable interest rate exposure on the Senior Secured Credit Facility. Interest Rate Swap N has a notional amount of $75.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 3.37% and a LIBOR floor of 1.00% with no independent collateral requirement. Interest Rate Swap O has a notional amount of $75.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 3.19% and a LIBOR floor of 1.00% with no independent collateral requirement. | |||||||||||||||||||||
Certain of the Company’s interest rate derivatives contain credit-risk and collateral contingent features under which downgrades in the Company’s credit rating could require the Company to increase its collateral. Certain interest rate derivatives also contain provisions under which the Company may be required to post additional collateral if the LIBOR interest rate curve reaches certain levels. | |||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had recorded cash collateral of $1.7 million and $3.0 million, respectively, in Other current assets in the Condensed Consolidated Balance Sheets, as the balances are subject to frequent change. The Company has also posted $9.0 million of collateral in the form of letters of credit. | |||||||||||||||||||||
Currency Exchange | |||||||||||||||||||||
The Company’s business is subject to foreign exchange rate risk. As a result, the Company enters into various forward rate contracts that qualify as derivatives under the authoritative accounting guidance to manage certain of these exposures. Forward contracts are used to hedge forecasted transactions and known exposure of payables denominated in a foreign currency. The Company generally has not elected to apply hedge accounting under the authoritative accounting guidance and recorded the unrealized fair value adjustments and realized gains and losses associated with these contracts in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change. | |||||||||||||||||||||
The following table summarizes the outstanding foreign currency forward contracts as of September 30, 2013 and December 31, 2012 (amounts in millions): | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Japanese Yen (JPY) | ¥ | 550 | $ | (0.2 | ) | ¥ | 675 | $ | (0.2 | ) | |||||||||||
$ | (0.2 | ) | $ | (0.2 | ) | ||||||||||||||||
Commodity | |||||||||||||||||||||
The Company’s business is subject to commodity price risk, principally with component suppliers. As a result, the Company entered into various commodity swap contracts that qualified as derivatives under the authoritative accounting guidance to manage certain of these exposures. Swap contracts were used to hedge forecasted transactions either of the commodity or of components containing the commodity. The Company has not qualified for hedge accounting treatment for these commodity contracts, and as a result, unrealized fair value adjustments and realized gains and losses associated with these contracts were charged directly to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change. | |||||||||||||||||||||
The following table summarizes the outstanding commodity swaps as of September 30, 2013 and December 31, 2012 (dollars in millions): | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Quantity | Fair Value | Notional | Quantity | Fair Value | ||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Aluminum | $ | 20.5 | 10,075 metric tons | $ | (1.2 | ) | $ | 19.4 | 9,050 metric tons | $ | (0.1 | ) | |||||||||
Steel | N/A | N/A | — | 0.2 | 340 metric tons | (0.1 | ) | ||||||||||||||
Natural Gas | N/A | N/A | — | 0.3 | 80,000 MMBtu | 0 | |||||||||||||||
$ | (1.2 | ) | $ | (0.2 | ) | ||||||||||||||||
The following tabular disclosures further describe the Company’s derivative instruments and their impact on the financial condition of the Company (dollars in millions): | |||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 0 | ||||||||||||||||||
Other current | (0.3 | ) | Other current | $ | (0.2 | ) | |||||||||||||||
liabilities | liabilities | ||||||||||||||||||||
Commodity contracts | Other current and | 0.2 | Other current and | 0.2 | |||||||||||||||||
non-current assets | non-current assets | ||||||||||||||||||||
Other current and | (1.4 | ) | Other current and | (0.4 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Interest rate contracts | Other current and | (29.0 | ) | Other current and | (52.3 | ) | |||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | (30.5 | ) | $ | (52.7 | ) | |||||||||||||||
The fair values of the derivatives were recorded between Other current and non-current assets and Other current and non-current liabilities as appropriate in the Condensed Consolidated Balance Sheets. As of September 30, 2013, the amount recorded to Other current assets for foreign currency contracts was $0.0 million, and the amount recorded to Other current liabilities for foreign currency contracts was ($0.3) million. The amounts recorded to Other current and non-current assets for commodity contracts were $0.1 million and $0.1 million, respectively. The amounts recorded to Other current and non-current liabilities for commodity contracts were ($1.2) million and ($0.2) million, respectively. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($26.2) million and ($2.8) million, respectively. | |||||||||||||||||||||
As of December 31, 2012, the amount recorded to Other current liabilities for foreign currency contracts was ($0.2) million. The amounts recorded to Other current and non-current assets and Other current and non-current liabilities for commodity contracts were $0.1 million, $0.1 million, ($0.3) million and ($0.1) million, respectively. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($31.2) million and ($21.1) million, respectively. | |||||||||||||||||||||
The following tabular disclosures further describe the Company’s derivative instruments and their impact on the results of operations of the Company (dollars in millions): | |||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||
Location of | Amount of | Location of | Amount of | ||||||||||||||||||
gain | gain | gain | gain | ||||||||||||||||||
recognized on | recognized on | recognized on | recognized on | ||||||||||||||||||
derivatives | derivatives | derivatives | derivatives | ||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||
instruments | |||||||||||||||||||||
Foreign currency contracts | Other expense, net | $ | 0.2 | Other expense, net | $ | 0 | |||||||||||||||
Commodity contracts | Other expense, net | 0.4 | Other expense, net | 1.5 | |||||||||||||||||
Interest rate contracts | Interest expense | 5.2 | Interest expense | 5 | |||||||||||||||||
Total gain recognized on derivatives | $ | 5.8 | $ | 6.5 | |||||||||||||||||
not designated as hedging instruments | |||||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||
Location of | Amount of | Location of | Amount of | ||||||||||||||||||
(loss) gain | (loss) gain | gain (loss) | gain (loss) | ||||||||||||||||||
recognized on | recognized on | recognized on | recognized on | ||||||||||||||||||
derivatives | derivatives | derivatives | derivatives | ||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||
instruments | |||||||||||||||||||||
Foreign currency contracts | Other expense, net | $ | (1.3 | ) | Other expense, net | $ | 0.3 | ||||||||||||||
Commodity contracts | Other expense, net | (2.1 | ) | Other expense, net | (0.0 | ) | |||||||||||||||
Interest rate contracts | Interest expense | 23.3 | Interest expense | 16.3 | |||||||||||||||||
Total gain recognized on derivatives | $ | 19.9 | $ | 16.6 | |||||||||||||||||
not designated as hedging instruments | |||||||||||||||||||||
Product_Warranty_Liabilities
Product Warranty Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Product Warranty Liabilities | NOTE H. PRODUCT WARRANTY LIABILITIES | ||||||||||||||||
Product warranty liability activities consisted of the following (dollars in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 105.6 | $ | 111.1 | $ | 109.7 | $ | 115.4 | |||||||||
Payments | (10.1 | ) | (12.4 | ) | (30.4 | ) | (34.6 | ) | |||||||||
Increase in liability (warranty issued during period) | 7.5 | 5.6 | 20.8 | 20.1 | |||||||||||||
Net adjustment to liability | (11.4 | ) | 2 | (8.9 | ) | 5 | |||||||||||
Accretion (for predecessor liabilities) | 0.1 | 0.2 | 0.5 | 0.6 | |||||||||||||
Ending balance | $ | 91.7 | $ | 106.5 | $ | 91.7 | $ | 106.5 | |||||||||
As of September 30, 2013, the current and non-current liabilities were $38.6 million and $53.1 million, respectively. As of September 30, 2012, the current and non-current liabilities were $33.2 million and $73.3 million, respectively. | |||||||||||||||||
During the third quarter of 2013, the Company completed an analysis of its Dual Power Inverter Module (“DPIM”) extended coverage program and determined, based on current claims, that the product warranty liability should be reduced by $8.2 million. This resulted in a $5.8 million reduction in the General Motors (“GM”) DPIM receivable and a $2.4 million favorable adjustment to the Condensed Consolidated Statements of Comprehensive Income. As of September 30, 2013 and 2012, the DPIM liability was $44.6 million and $52.8 million with an associated receivable from GM of $18.2 million and $31.6 million, respectively. Through September 30, 2013, the Company had paid approximately $23.1 million in DPIM claims and received approximately $7.6 million in reimbursement from GM. The Company will continue to review the total DPIM liability and GM receivable for any changes in estimates as data becomes available. | |||||||||||||||||
The remaining $3.2 million in adjustments to the total liability were the result of general changes in estimates for various products as additional claims data and field information became available. | |||||||||||||||||
Deferred revenue for extended transmission coverage activity (dollars in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 61.1 | $ | 63.6 | $ | 63.5 | $ | 60.7 | |||||||||
Increases | 7.6 | 5.2 | 15.7 | 18 | |||||||||||||
Revenue earned | (5.7 | ) | (5.0 | ) | (16.2 | ) | (14.9 | ) | |||||||||
Ending balance | $ | 63 | $ | 63.8 | $ | 63 | $ | 63.8 | |||||||||
As of September 30, 2013, the current and non-current liabilities were $21.3 million and $41.7 million, respectively. As of September 30, 2012, the current and non-current liabilities were $20.7 million and $43.1 million, respectively. The activity above excludes deferred revenue related to defense contracts, which was $0.3 million as of September 30, 2013. |
Other_Expense_Net
Other Expense, Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Expense, Net | NOTE I. OTHER EXPENSE, NET | ||||||||||||||||
Other expense, net consisted of the following (dollars in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Grant Program income | $ | 0.9 | $ | 2.3 | $ | 4.1 | $ | 6.4 | |||||||||
Impairment loss on investments in technology-related initiatives | — | (6.4 | ) | (2.5 | ) | (14.4 | ) | ||||||||||
Loss on intercompany foreign exchange | (2.3 | ) | — | (2.3 | ) | — | |||||||||||
Realized loss on derivative contracts (see NOTE G) | (0.7 | ) | (0.6 | ) | (2.3 | ) | (0.8 | ) | |||||||||
Gain (loss) on foreign exchange | 0.1 | 1.6 | (1.8 | ) | (1.4 | ) | |||||||||||
Unrealized gain (loss) on derivative contracts (see NOTE G) | 1.3 | 2.1 | (1.1 | ) | 1.1 | ||||||||||||
Public offering fees and expenses | (0.3 | ) | 0 | (0.9 | ) | (6.1 | ) | ||||||||||
Loss on repayments and redemptions of long-term debt | (0.5 | ) | (0.5 | ) | (0.5 | ) | (21.6 | ) | |||||||||
Termination of Sponsor services agreement | — | — | — | (16.0 | ) | ||||||||||||
Loss on re-measurement of employee benefit plans (see NOTE K) | — | — | — | (2.3 | ) | ||||||||||||
Other | — | (0.3 | ) | 0.1 | (0.3 | ) | |||||||||||
Total | $ | (1.5 | ) | $ | (1.8 | ) | $ | (7.2 | ) | $ | (55.4 | ) | |||||
During the third quarter of 2013, the Company completed a secondary offering of 23,805,000 shares of its common stock held by investment funds affiliated with The Carlyle Group and Onex Corporation (collectively, the “Sponsors”) to the underwriters in the public offering at the public offering price, less the underwriting discounts and commissions, or $21.175 per share. The Company received no proceeds from the sale. In connection with the offering, the Company repurchased from the underwriters 4,700,000 shares of the 23,805,000 shares at the price paid by the underwriters and subsequently retired those shares. For the three and nine months ended September 30, 2013, the Company incurred $0.3 million and $0.9 million, respectively, of expenses related to public offerings. | |||||||||||||||||
During the first quarter of 2013, the Company made a $2.5 million investment as part of a co-development agreement signed in 2012 to expand our position in transmission technologies. Due to various uncertainties surrounding the investment including, but not limited to, the startup nature of the underlying business, its continued negative cash flow, undercapitalization and unproven business plan, the Company has impaired the investment to zero as of September 30, 2013. The related charge of $2.5 million was recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income for the nine months ended September 30, 2013. | |||||||||||||||||
In 2009, the Company was notified by the U.S. Department of Energy that it was selected to receive matching funds from a grant program funded by the American Recovery and Reinvestment Act for the development of hybrid manufacturing capacity in the U.S. (the “Grant Program”). All applicable costs associated with the Grant Program have been charged to Engineering — research and development while the U.S. government’s matching reimbursement is recorded to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income. Since inception of the Grant Program, the Company has recorded $44.9 million of Grant Program income to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||
For the three months ended September 30, 2013 and 2012, the Company recorded $0.2 million and $0.4 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. For the nine months ended September 30, 2013 and 2012, the Company recorded $2.9 million and $2.6 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. Under the Grant Program, the Company has acquired approximately $13.1 million of assets of which $7.1 million have been placed in service, resulting in related depreciation of $0.1 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively, and $0.2 million and $0.5 million for the nine months ended September 30, 2013 and 2012, respectively. |
Other_Current_Liabilities
Other Current Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Current Liabilities | NOTE J. OTHER CURRENT LIABILITIES | ||||||||
Other current liabilities consisted of the following (dollars in millions): | |||||||||
As of | As of | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and related costs | $ | 35.2 | $ | 47.5 | |||||
Derivative liabilities | 27.6 | 34.6 | |||||||
Defense price reduction reserve | 26.8 | 12 | |||||||
Sales allowances | 23.5 | 27 | |||||||
Accrued interest payable | 20.8 | 14.2 | |||||||
Vendor buyback obligation | 9.8 | 13.9 | |||||||
Taxes payable | 9.2 | 6.9 | |||||||
Other accruals | 9.9 | 11.3 | |||||||
Total | $ | 162.8 | $ | 167.4 | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Employee Benefit Plans | NOTE K. EMPLOYEE BENEFIT PLANS | ||||||||||||||||
Components of net periodic benefit cost consisted of the following (dollars in millions): | |||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 4.1 | $ | 3.5 | $ | 0.8 | $ | 1 | |||||||||
Interest cost | 1 | 0.9 | 1.5 | 1.8 | |||||||||||||
Expected return on assets | (1.6 | ) | (1.4 | ) | — | — | |||||||||||
Prior service cost | 0.1 | 0 | (0.9 | ) | — | ||||||||||||
Loss | 0.2 | 0.3 | — | — | |||||||||||||
Settlement loss | — | — | — | — | |||||||||||||
Net periodic benefit cost | $ | 3.8 | $ | 3.3 | $ | 1.4 | $ | 2.8 | |||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 12.3 | $ | 11.7 | $ | 2.4 | $ | 2.9 | |||||||||
Interest cost | 3 | 3.2 | 4.4 | 5.4 | |||||||||||||
Expected return on assets | (5.0 | ) | (4.5 | ) | — | — | |||||||||||
Prior service cost | 0.1 | 0 | (2.7 | ) | — | ||||||||||||
Loss | 0.5 | 1 | — | — | |||||||||||||
Settlement loss | — | 2.3 | — | — | |||||||||||||
Net periodic benefit cost | $ | 10.9 | $ | 13.7 | $ | 4.1 | $ | 8.3 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | NOTE L. INCOME TAXES |
The effective tax rate for the three and nine months ended September 30, 2013 was (38.5%) and (38.3%), respectively. For the three and nine months ended September 30, 2013, the Company recorded total tax expense of ($27.9) million and ($76.1) million, respectively. The effective tax rate for the three and nine months ended September 30, 2012 was (34.6%) and 157.8%, respectively. For the three and nine months ended September 30, 2012, the Company recorded a total tax (expense) benefit of ($17.0) million and $307.9 million, respectively. The change in the effective tax rates from 2012 to 2013 was principally driven by the release of the domestic valuation allowance on the Company’s deferred tax assets in the second quarter of 2012 resulting in an income tax benefit of $384.8 million. | |
The need to establish a valuation allowance against the deferred tax assets is assessed periodically based on a more-likely-than-not realization threshold, in accordance with authoritative accounting guidance. Appropriate consideration is given to all positive and negative evidence related to that realization. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, experience with tax attributes expiring unused, and tax planning alternatives. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | |
Management has determined, based on the evaluation of both objective and subjective evidence available, that a domestic valuation allowance is not necessary and that it is more likely than not that the deferred tax assets are fully realizable. The Company has reached a sustained period of profitability and believes its objectively measured positive evidence outweighs the negative evidence. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets. | |
In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service issued final and proposed regulations which provide guidance with respect to capitalization treatment of tangible personal property. The Company has reviewed the changes and anticipates no material impact to the Company’s consolidated financial statements. | |
In accordance with the FASB’s authoritative guidance on accounting for uncertainty in income taxes, the Company had no liability for unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The accounting guidance prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For the year ended December 31, 2012, the return will remain subject to examination by the various taxing authorities for the duration of the applicable statute of limitations (generally three years from the later of the date of filing or the due date of the return). |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Loss | NOTE M. ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
The following table reconciles changes in Accumulated other comprehensive loss (“AOCL”) by component (net of tax, dollars in millions): | |||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Available-for- | Defined | Foreign | Total | ||||||||||||||
sale securities | benefit | currency items | |||||||||||||||
pension items | |||||||||||||||||
Beginning balance of AOCL | $ | 2.2 | $ | (36.9 | ) | $ | (9.2 | ) | $ | (43.9 | ) | ||||||
Other comprehensive loss before reclassifications | (0.1 | ) | — | (5.2 | ) | (5.3 | ) | ||||||||||
Amounts reclassified from AOCL | — | (1.3 | ) | — | (1.3 | ) | |||||||||||
Net current period other comprehensive loss | $ | (0.1 | ) | $ | (1.3 | ) | $ | (5.2 | ) | $ | (6.6 | ) | |||||
Total AOCL | $ | 2.1 | $ | (38.2 | ) | $ | (14.4 | ) | $ | (50.5 | ) | ||||||
The following table shows the location in the Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions): | |||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
AOCL Components | Amount | Affected line item in the condensed | |||||||||||||||
reclassified from | consolidated statements of | ||||||||||||||||
AOCL | comprehensive income | ||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior service cost | $ | 0.7 | Cost of sales | ||||||||||||||
0.2 | Selling, general and | ||||||||||||||||
administrative | |||||||||||||||||
Actuarial loss | (0.1 | ) | Selling, general and | ||||||||||||||
administrative | |||||||||||||||||
(0.1 | ) | Engineering – research and | |||||||||||||||
development | |||||||||||||||||
Total reclassifications, before tax | 0.7 | Income before income taxes | |||||||||||||||
Income tax expense | (0.2 | ) | Tax expense | ||||||||||||||
Total reclassifications | $ | 0.5 | Net of tax | ||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
AOCL Components | Amount | Affected line item in the condensed | |||||||||||||||
reclassified from | consolidated statements of | ||||||||||||||||
AOCL | comprehensive income | ||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior service cost | $ | 2.1 | Cost of sales | ||||||||||||||
0.6 | Selling, general and | ||||||||||||||||
administrative | |||||||||||||||||
Actuarial loss | (0.3 | ) | Selling, general and | ||||||||||||||
administrative | |||||||||||||||||
(0.3 | ) | Engineering – research and | |||||||||||||||
development | |||||||||||||||||
Total reclassifications, before tax | 2.1 | Income before income taxes | |||||||||||||||
Income tax expense | (0.8 | ) | Tax expense | ||||||||||||||
Total reclassifications | $ | 1.3 | Net of tax | ||||||||||||||
Prior service cost and actuarial loss were included in the computation of the Company’s net periodic benefit cost. Please see NOTE K for additional details. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | NOTE N. COMMITMENTS AND CONTINGENCIES |
Claims, Disputes, and Litigation | |
The Company is party to various legal actions, administrative proceedings and claims arising in the ordinary course of business. These proceedings principally involve commercial claims, product liability claims, personal injury claims and workers’ compensation claims. The Company believes that the ultimate liability, if any, in excess of amounts already provided for in the financial statements or covered by insurance on the disposition of these matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
Certain_Relationships_and_Rela
Certain Relationships and Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Certain Relationships and Related Party Transactions | NOTE O. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS |
As of September 30, 2013, investment funds affiliated with the Sponsors owned a total of approximately 69.6% of the Company’s equity. Pursuant to an amended and restated stockholders agreement, a majority of the Board of Directors has been designated by the Sponsors and is affiliated with the Sponsors. As a result, the Sponsors or their nominees to the Board of Directors have the ability to control the appointment of management, the entering into of mergers, sales of substantially all of the Company’s assets and other extraordinary transactions and influence amendments to the Company’s certificate of incorporation. So long as the Sponsors continue to own a majority of the Company’s equity, they will have the ability to control the vote in any election of directors and will have the ability to prevent any transaction that requires stockholder approval regardless of whether others believe the transaction is in the Company’s best interests. The interests of the Sponsors could conflict with those of the Company’s other stockholders. In addition, the Sponsors may in the future own businesses that directly compete with the Company. | |
7.125% Senior Notes held by Executive Officers | |
As of September 30, 2013, Lawrence E. Dewey, our Chairman, President and Chief Executive Officer, David S. Graziosi, our Executive Vice President, Chief Financial Officer and Treasurer, and Robert M. Price, our Vice President, Human Resources, held approximately $100,000, $450,000, and $150,000, respectively, in aggregate principal amount of the 7.125% Senior Notes. | |
Repurchase of Common Stock held by Sponsors | |
During the third quarter of 2013, the Company completed a secondary offering of 23,805,000 shares of its common stock held by investment funds affiliated with the Sponsors to the underwriters in the public offering at the public offering price, less the underwriting discounts and commissions, or $21.175 per share. The Company received no proceeds from the sale. In connection with the offering, the Company repurchased from the underwriters 4,700,000 shares of the 23,805,000 shares at the price paid by the underwriters and subsequently retired those shares. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share | NOTE P. EARNINGS PER SHARE | ||||||||||||||||
The Company presents both basic and diluted earnings per share (“EPS”) amounts. Basic EPS was calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS was calculated by dividing net income by the weighted average number of common shares and common equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock-based awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future, compensation cost for future service that the Company has not yet recognized and any tax benefits that would be credited to additional paid-in-capital when the award generates a tax deduction. If there would be a shortfall resulting in a charge to additional paid-in-capital, such an amount would be a reduction of the proceeds to the extent of the gains. | |||||||||||||||||
The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 44.5 | $ | 32.2 | $ | 122.5 | $ | 503 | |||||||||
Weighted average shares of common stock outstanding | 184.4 | 181.9 | 185 | 181.6 | |||||||||||||
Dilutive effect stock-based awards | 3.6 | 3.6 | 3.6 | 4.4 | |||||||||||||
Diluted weighted average shares of common stock outstanding | 188 | 185.5 | 188.6 | 186 | |||||||||||||
Basic earnings per share attributable to common stockholders | $ | 0.24 | $ | 0.18 | $ | 0.66 | $ | 2.77 | |||||||||
Diluted earnings per share attributable to common stockholders | $ | 0.24 | $ | 0.17 | $ | 0.65 | $ | 2.7 | |||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | NOTE Q. SUBSEQUENT EVENTS |
In October 2013, the Company entered into three new interest rate swaps to hedge its variable interest rate exposure on the Senior Secured Credit Facility. The first has a notional amount of $75.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 3.08% and a LIBOR floor of 1.00% with no independent collateral requirement. The second has a notional amount of $50.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.99% and a LIBOR floor of 1.00% with no independent collateral requirement. The third has a notional amount of $50.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.98% and a LIBOR floor of 1.00% with no independent collateral requirement. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation |
The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2013 and 2012 have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. | |
These condensed consolidated financial statements present the financial position, results of operations and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Significant estimates include, but are not limited to, allowance for doubtful accounts, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liability, determination of discount and other assumptions for pension and other postretirement benefit expense, income taxes and deferred tax valuation allowances, derivative valuation, and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on the presentation of an unrecognized tax benefit when net operating loss (“NOL”) carryforwards exist. The guidance requires presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future. | |
In July 2013, the FASB issued authoritative accounting guidance on the inclusion of the Fed Funds Effective Swap Rate as a benchmark interest rate for hedge accounting purposes. The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance became effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have an effect on the Company’s consolidated financial statements as the Company does not currently elect hedge accounting treatment on its interest rate swaps. | |
In March 2013, the FASB issued authoritative accounting guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance clarifies that when a parent company ceases to have a controlling financial interest in a subsidiary or group of assets, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future. | |
In February 2013, the FASB issued authoritative accounting guidance on the presentation and disclosure of reclassifications out of accumulated other comprehensive income. The guidance gives an entity the option to present significant amounts reclassified out of each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the footnotes to the financial statements. The guidance became effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the condensed consolidated financial statements when significant amounts are reclassified out of accumulated other comprehensive income. | |
In January 2013, the FASB issued authoritative accounting guidance clarifying the scope of new balance sheet offsetting disclosures issued in December 2011 for derivatives, repurchase agreements and securities lending transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for interim and annual periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements. | |
In December 2011, the FASB issued authoritative accounting guidance on enhancing disclosures to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The guidance requires improved information and disclosures about gross and net amounts of recognized assets and liabilities of financial and derivative instruments that are offset in an entity’s statement of financial position. The guidance applies retrospectively for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Components of Inventories | Inventories consisted of the following components (dollars in millions): | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Purchased parts and raw materials | $ | 82.5 | $ | 80.6 | |||||
Work in progress | 8 | 7.5 | |||||||
Service parts | 45.6 | 44.5 | |||||||
Finished goods | 29.8 | 24.5 | |||||||
Total inventories | $ | 165.9 | $ | 157.1 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Summary of Other Intangible Assets | The following presents a summary of other intangible assets (dollars in millions): | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Intangible | Accumulated | Intangible | Intangible | Accumulated | Intangible | ||||||||||||||||||||
assets, gross | amortization | assets, net | assets, gross | amortization | assets, net | ||||||||||||||||||||
Other intangible assets: | |||||||||||||||||||||||||
Trade name | $ | 870 | $ | — | $ | 870 | $ | 870 | $ | — | $ | 870 | |||||||||||||
Customer relationships — defense | 62.3 | (23.4 | ) | 38.9 | 62.3 | (20.8 | ) | 41.5 | |||||||||||||||||
Customer relationships — commercial | 831.8 | (361.5 | ) | 470.3 | 831.8 | (321.2 | ) | 510.6 | |||||||||||||||||
Proprietary technology | 476.3 | (234.3 | ) | 242 | 476.3 | (205.8 | ) | 270.5 | |||||||||||||||||
Non-compete agreement | 17.3 | (10.7 | ) | 6.6 | 17.3 | (9.4 | ) | 7.9 | |||||||||||||||||
Patented technology — defense | 28.2 | (20.4 | ) | 7.8 | 28.2 | (17.9 | ) | 10.3 | |||||||||||||||||
Tooling rights | 4.5 | (4.1 | ) | 0.4 | 4.5 | (3.9 | ) | 0.6 | |||||||||||||||||
Patented technology — commercial | 260.6 | (260.6 | ) | — | 260.6 | (255.9 | ) | 4.7 | |||||||||||||||||
Total | $ | 2,551.00 | $ | (915.0 | ) | $ | 1,636.00 | $ | 2,551.00 | $ | (834.9 | ) | $ | 1,716.10 | |||||||||||
Amortization Expense Related to Other Intangible Assets for Next Five Years and Thereafter | Amortization expense related to other intangible assets for the next five years and thereafter is expected to be (dollars in millions): | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Amortization expense | $ | 98.8 | $ | 97.1 | $ | 92.4 | $ | 89.7 | $ | 87.2 | $ | 275.5 | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Summary of Fair Value of Financial Assets and (Liabilities) | The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2013 and December 31, 2012 (dollars in millions): | ||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | TOTAL | |||||||||||||||||||||||
Markets for Identical | Observable Inputs (Level 2) | ||||||||||||||||||||||||
Assets (Level 1) | |||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents | $ | 152.3 | $ | 80.2 | $ | — | $ | — | $ | 152.3 | $ | 80.2 | |||||||||||||
Available-for-sale securities | 9.5 | 6.1 | — | — | 9.5 | 6.1 | |||||||||||||||||||
Rabbi trust assets | 1 | 0.2 | — | — | 1 | 0.2 | |||||||||||||||||||
Deferred compensation obligation | (1.0 | ) | (0.2 | ) | — | — | (1.0 | ) | (0.2 | ) | |||||||||||||||
Derivative assets | — | — | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||||||||
Derivative liabilities | — | — | (30.7 | ) | (52.9 | ) | (30.7 | ) | (52.9 | ) | |||||||||||||||
Total | $ | 161.8 | $ | 86.3 | $ | (30.5 | ) | $ | (52.7 | ) | $ | 131.3 | $ | 33.6 | |||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Long-Term Debt and Maturities | Long-term debt and maturities were as follows (dollars in millions): | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Long-term debt: | |||||||||
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 | $ | — | $ | 411.4 | |||||
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | 1,123.50 | 793.1 | |||||||
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | 1,136.40 | 1,145.00 | |||||||
Senior Notes, fixed 7.125%, due 2019 | 471.3 | 471.3 | |||||||
Total long-term debt | 2,731.20 | 2,820.80 | |||||||
Less: current maturities of long-term debt | 11.4 | 19.5 | |||||||
Total long-term debt less current portion | $ | 2,719.80 | $ | 2,801.30 | |||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Summary of Company's Interest Rate Derivatives | Consolidated Statements of Comprehensive Income. A summary of the Company’s interest rate derivatives as of September 30, 2013 and December 31, 2012 follows (dollars in millions): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Interest Rate Swap D, due 2013 | $ | — | $ | — | $ | 125 | $ | (2.8 | ) | ||||||||||||
Interest Rate Swap E, due 2013 | — | — | 150 | (2.3 | ) | ||||||||||||||||
Interest Rate Swap F, due 2013 | — | — | 75 | (1.1 | ) | ||||||||||||||||
Interest Rate Swap G, due 2013 | — | — | 75 | (1.2 | ) | ||||||||||||||||
Interest Rate Swap H, due 2014 | 350 | (10.2 | ) | 350 | (19.0 | ) | |||||||||||||||
Interest Rate Swap I, due 2014 | 350 | (10.3 | ) | 350 | (19.2 | ) | |||||||||||||||
Interest Rate Swap J, due 2014 | 125 | (2.8 | ) | 125 | (3.3 | ) | |||||||||||||||
Interest Rate Swap K, due 2014 | 125 | (2.9 | ) | 125 | (3.4 | ) | |||||||||||||||
Interest Rate Swap L, due 2019 | 75 | (0.8 | ) | — | — | ||||||||||||||||
Interest Rate Swap M, due 2019 | 100 | (1.1 | ) | — | — | ||||||||||||||||
Interest Rate Swap N, due 2019 | 75 | (0.7 | ) | — | — | ||||||||||||||||
Interest Rate Swap O, due 2019 | 75 | (0.2 | ) | — | — | ||||||||||||||||
$ | 1,275.00 | $ | (29.0 | ) | $ | 1,375.00 | $ | (52.3 | ) | ||||||||||||
Derivative Instruments and Their Impact on Results of Operations | The following tabular disclosures further describe the Company’s derivative instruments and their impact on the financial condition of the Company (dollars in millions): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 0 | ||||||||||||||||||
Other current | (0.3 | ) | Other current | $ | (0.2 | ) | |||||||||||||||
liabilities | liabilities | ||||||||||||||||||||
Commodity contracts | Other current and | 0.2 | Other current and | 0.2 | |||||||||||||||||
non-current assets | non-current assets | ||||||||||||||||||||
Other current and | (1.4 | ) | Other current and | (0.4 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Interest rate contracts | Other current and | (29.0 | ) | Other current and | (52.3 | ) | |||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | (30.5 | ) | $ | (52.7 | ) | |||||||||||||||
Company's Derivative Instruments and Their Impact on Financial Condition of Company | The following tabular disclosures further describe the Company’s derivative instruments and their impact on the results of operations of the Company (dollars in millions): | ||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||
Location of | Amount of | Location of | Amount of | ||||||||||||||||||
gain | gain | gain | gain | ||||||||||||||||||
recognized on | recognized on | recognized on | recognized on | ||||||||||||||||||
derivatives | derivatives | derivatives | derivatives | ||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||
instruments | |||||||||||||||||||||
Foreign currency contracts | Other expense, net | $ | 0.2 | Other expense, net | $ | 0 | |||||||||||||||
Commodity contracts | Other expense, net | 0.4 | Other expense, net | 1.5 | |||||||||||||||||
Interest rate contracts | Interest expense | 5.2 | Interest expense | 5 | |||||||||||||||||
Total gain recognized on derivatives | $ | 5.8 | $ | 6.5 | |||||||||||||||||
not designated as hedging instruments | |||||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||
Location of | Amount of | Location of | Amount of | ||||||||||||||||||
(loss) gain | (loss) gain | gain (loss) | gain (loss) | ||||||||||||||||||
recognized on | recognized on | recognized on | recognized on | ||||||||||||||||||
derivatives | derivatives | derivatives | derivatives | ||||||||||||||||||
Derivatives not designated as hedging | |||||||||||||||||||||
instruments | |||||||||||||||||||||
Foreign currency contracts | Other expense, net | $ | (1.3 | ) | Other expense, net | $ | 0.3 | ||||||||||||||
Commodity contracts | Other expense, net | (2.1 | ) | Other expense, net | (0.0 | ) | |||||||||||||||
Interest rate contracts | Interest expense | 23.3 | Interest expense | 16.3 | |||||||||||||||||
Total gain recognized on derivatives | $ | 19.9 | $ | 16.6 | |||||||||||||||||
not designated as hedging instruments | |||||||||||||||||||||
Foreign Currency Forward Contract | |||||||||||||||||||||
Notional Amount and Fair Value of Derivatives | The following table summarizes the outstanding foreign currency forward contracts as of September 30, 2013 and December 31, 2012 (amounts in millions): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Japanese Yen (JPY) | ¥ | 550 | $ | (0.2 | ) | ¥ | 675 | $ | (0.2 | ) | |||||||||||
$ | (0.2 | ) | $ | (0.2 | ) | ||||||||||||||||
Commodity contracts | |||||||||||||||||||||
Notional Amount and Fair Value of Derivatives | The following table summarizes the outstanding commodity swaps as of September 30, 2013 and December 31, 2012 (dollars in millions): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Quantity | Fair Value | Notional | Quantity | Fair Value | ||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Aluminum | $ | 20.5 | 10,075 metric tons | $ | (1.2 | ) | $ | 19.4 | 9,050 metric tons | $ | (0.1 | ) | |||||||||
Steel | N/A | N/A | — | 0.2 | 340 metric tons | (0.1 | ) | ||||||||||||||
Natural Gas | N/A | N/A | — | 0.3 | 80,000 MMBtu | 0 | |||||||||||||||
$ | (1.2 | ) | $ | (0.2 | ) | ||||||||||||||||
Product_Warranty_Liabilities_T
Product Warranty Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Product Warranty Liability Activities | Product warranty liability activities consisted of the following (dollars in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 105.6 | $ | 111.1 | $ | 109.7 | $ | 115.4 | |||||||||
Payments | (10.1 | ) | (12.4 | ) | (30.4 | ) | (34.6 | ) | |||||||||
Increase in liability (warranty issued during period) | 7.5 | 5.6 | 20.8 | 20.1 | |||||||||||||
Net adjustment to liability | (11.4 | ) | 2 | (8.9 | ) | 5 | |||||||||||
Accretion (for predecessor liabilities) | 0.1 | 0.2 | 0.5 | 0.6 | |||||||||||||
Ending balance | $ | 91.7 | $ | 106.5 | $ | 91.7 | $ | 106.5 | |||||||||
Deferred Revenue for Extended Transmission Coverage Activity | Deferred revenue for extended transmission coverage activity (dollars in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 61.1 | $ | 63.6 | $ | 63.5 | $ | 60.7 | |||||||||
Increases | 7.6 | 5.2 | 15.7 | 18 | |||||||||||||
Revenue earned | (5.7 | ) | (5.0 | ) | (16.2 | ) | (14.9 | ) | |||||||||
Ending balance | $ | 63 | $ | 63.8 | $ | 63 | $ | 63.8 | |||||||||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computation of Other Expense, Net | Other expense, net consisted of the following (dollars in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Grant Program income | $ | 0.9 | $ | 2.3 | $ | 4.1 | $ | 6.4 | |||||||||
Impairment loss on investments in technology-related initiatives | — | (6.4 | ) | (2.5 | ) | (14.4 | ) | ||||||||||
Loss on intercompany foreign exchange | (2.3 | ) | — | (2.3 | ) | — | |||||||||||
Realized loss on derivative contracts (see NOTE G) | (0.7 | ) | (0.6 | ) | (2.3 | ) | (0.8 | ) | |||||||||
Gain (loss) on foreign exchange | 0.1 | 1.6 | (1.8 | ) | (1.4 | ) | |||||||||||
Unrealized gain (loss) on derivative contracts (see NOTE G) | 1.3 | 2.1 | (1.1 | ) | 1.1 | ||||||||||||
Public offering fees and expenses | (0.3 | ) | 0 | (0.9 | ) | (6.1 | ) | ||||||||||
Loss on repayments and redemptions of long-term debt | (0.5 | ) | (0.5 | ) | (0.5 | ) | (21.6 | ) | |||||||||
Termination of Sponsor services agreement | — | — | — | (16.0 | ) | ||||||||||||
Loss on re-measurement of employee benefit plans (see NOTE K) | — | — | — | (2.3 | ) | ||||||||||||
Other | — | (0.3 | ) | 0.1 | (0.3 | ) | |||||||||||
Total | $ | (1.5 | ) | $ | (1.8 | ) | $ | (7.2 | ) | $ | (55.4 | ) | |||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Other Current Liabilities | Other current liabilities consisted of the following (dollars in millions): | ||||||||
As of | As of | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and related costs | $ | 35.2 | $ | 47.5 | |||||
Derivative liabilities | 27.6 | 34.6 | |||||||
Defense price reduction reserve | 26.8 | 12 | |||||||
Sales allowances | 23.5 | 27 | |||||||
Accrued interest payable | 20.8 | 14.2 | |||||||
Vendor buyback obligation | 9.8 | 13.9 | |||||||
Taxes payable | 9.2 | 6.9 | |||||||
Other accruals | 9.9 | 11.3 | |||||||
Total | $ | 162.8 | $ | 167.4 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following (dollars in millions): | ||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 4.1 | $ | 3.5 | $ | 0.8 | $ | 1 | |||||||||
Interest cost | 1 | 0.9 | 1.5 | 1.8 | |||||||||||||
Expected return on assets | (1.6 | ) | (1.4 | ) | — | — | |||||||||||
Prior service cost | 0.1 | 0 | (0.9 | ) | — | ||||||||||||
Loss | 0.2 | 0.3 | — | — | |||||||||||||
Settlement loss | — | — | — | — | |||||||||||||
Net periodic benefit cost | $ | 3.8 | $ | 3.3 | $ | 1.4 | $ | 2.8 | |||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 12.3 | $ | 11.7 | $ | 2.4 | $ | 2.9 | |||||||||
Interest cost | 3 | 3.2 | 4.4 | 5.4 | |||||||||||||
Expected return on assets | (5.0 | ) | (4.5 | ) | — | — | |||||||||||
Prior service cost | 0.1 | 0 | (2.7 | ) | — | ||||||||||||
Loss | 0.5 | 1 | — | — | |||||||||||||
Settlement loss | — | 2.3 | — | — | |||||||||||||
Net periodic benefit cost | $ | 10.9 | $ | 13.7 | $ | 4.1 | $ | 8.3 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | The following table reconciles changes in Accumulated other comprehensive loss (“AOCL”) by component (net of tax, dollars in millions): | ||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Available-for- | Defined | Foreign | Total | ||||||||||||||
sale securities | benefit | currency items | |||||||||||||||
pension items | |||||||||||||||||
Beginning balance of AOCL | $ | 2.2 | $ | (36.9 | ) | $ | (9.2 | ) | $ | (43.9 | ) | ||||||
Other comprehensive loss before reclassifications | (0.1 | ) | — | (5.2 | ) | (5.3 | ) | ||||||||||
Amounts reclassified from AOCL | — | (1.3 | ) | — | (1.3 | ) | |||||||||||
Net current period other comprehensive loss | $ | (0.1 | ) | $ | (1.3 | ) | $ | (5.2 | ) | $ | (6.6 | ) | |||||
Total AOCL | $ | 2.1 | $ | (38.2 | ) | $ | (14.4 | ) | $ | (50.5 | ) | ||||||
The following table shows the location in the Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions): | |||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
AOCL Components | Amount | Affected line item in the condensed | |||||||||||||||
reclassified from | consolidated statements of | ||||||||||||||||
AOCL | comprehensive income | ||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior service cost | $ | 0.7 | Cost of sales | ||||||||||||||
0.2 | Selling, general and | ||||||||||||||||
administrative | |||||||||||||||||
Actuarial loss | (0.1 | ) | Selling, general and | ||||||||||||||
administrative | |||||||||||||||||
(0.1 | ) | Engineering – research and | |||||||||||||||
development | |||||||||||||||||
Total reclassifications, before tax | 0.7 | Income before income taxes | |||||||||||||||
Income tax expense | (0.2 | ) | Tax expense | ||||||||||||||
Total reclassifications | $ | 0.5 | Net of tax | ||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
AOCL Components | Amount | Affected line item in the condensed | |||||||||||||||
reclassified from | consolidated statements of | ||||||||||||||||
AOCL | comprehensive income | ||||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior service cost | $ | 2.1 | Cost of sales | ||||||||||||||
0.6 | Selling, general and | ||||||||||||||||
administrative | |||||||||||||||||
Actuarial loss | (0.3 | ) | Selling, general and | ||||||||||||||
administrative | |||||||||||||||||
(0.3 | ) | Engineering – research and | |||||||||||||||
development | |||||||||||||||||
Total reclassifications, before tax | 2.1 | Income before income taxes | |||||||||||||||
Income tax expense | (0.8 | ) | Tax expense | ||||||||||||||
Total reclassifications | $ | 1.3 | Net of tax | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS | The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 44.5 | $ | 32.2 | $ | 122.5 | $ | 503 | |||||||||
Weighted average shares of common stock outstanding | 184.4 | 181.9 | 185 | 181.6 | |||||||||||||
Dilutive effect stock-based awards | 3.6 | 3.6 | 3.6 | 4.4 | |||||||||||||
Diluted weighted average shares of common stock outstanding | 188 | 185.5 | 188.6 | 186 | |||||||||||||
Basic earnings per share attributable to common stockholders | $ | 0.24 | $ | 0.18 | $ | 0.66 | $ | 2.77 | |||||||||
Diluted earnings per share attributable to common stockholders | $ | 0.24 | $ | 0.17 | $ | 0.65 | $ | 2.7 | |||||||||
Overview_Additional_Informatio
Overview - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Vehicle | |
Brand | |
Product | |
Customer | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Transmission product lines | 12 |
Independent distributor and dealer in worldwide locations | 1,400 |
Different product models | 100 |
Different vehicle configurations | 2,500 |
Combinations of engine brands, models and ratings | 500 |
Year of introduction of Company's automatic products | 60 years |
Revenues | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Total revenues generated in North America | 78.00% |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Purchased parts and raw materials | $82.50 | $80.60 |
Work in progress | 8 | 7.5 |
Service parts | 45.6 | 44.5 |
Finished goods | 29.8 | 24.5 |
Total inventories | $165.90 | $157.10 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $1,941 | $1,941 |
Net carrying value of Goodwill and other intangible assets | $3,577 | $3,657.10 |
Summary_of_Other_Intangible_As
Summary of Other Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Trade name | $870 | $870 |
Intangible assets, gross | 2,551 | 2,551 |
Accumulated amortization | -915 | -834.9 |
Intangible assets, net | 1,636 | 1,716.10 |
Customer relationships - defense | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 62.3 | 62.3 |
Accumulated amortization | -23.4 | -20.8 |
Intangible assets, net | 38.9 | 41.5 |
Customer relationships - commercial | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 831.8 | 831.8 |
Accumulated amortization | -361.5 | -321.2 |
Intangible assets, net | 470.3 | 510.6 |
Proprietary technology | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 476.3 | 476.3 |
Accumulated amortization | -234.3 | -205.8 |
Intangible assets, net | 242 | 270.5 |
Non-compete agreement | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 17.3 | 17.3 |
Accumulated amortization | -10.7 | -9.4 |
Intangible assets, net | 6.6 | 7.9 |
Patented technology - defense | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 28.2 | 28.2 |
Accumulated amortization | -20.4 | -17.9 |
Intangible assets, net | 7.8 | 10.3 |
Tooling rights | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 4.5 | 4.5 |
Accumulated amortization | -4.1 | -3.9 |
Intangible assets, net | 0.4 | 0.6 |
Patented technology - commercial | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, gross | 260.6 | 260.6 |
Accumulated amortization | -260.6 | -255.9 |
Intangible assets, net | $4.70 |
Expected_Amortization_Expense_
Expected Amortization Expense Related to Other Intangible Assets (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets | |
2014 | $98.80 |
2015 | 97.1 |
2016 | 92.4 |
2017 | 89.7 |
2018 | 87.2 |
Thereafter | $275.50 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $152.30 | $80.20 |
Available-for-sale securities | 9.5 | 6.1 |
Rabbi trust assets | 1 | 0.2 |
Deferred compensation obligation | -1 | -0.2 |
Derivative assets | 0.2 | 0.2 |
Derivative liabilities | -30.7 | -52.9 |
Total | 131.3 | 33.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 152.3 | 80.2 |
Available-for-sale securities | 9.5 | 6.1 |
Rabbi trust assets | 1 | 0.2 |
Deferred compensation obligation | -1 | -0.2 |
Total | 161.8 | 86.3 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.2 | 0.2 |
Derivative liabilities | -30.7 | -52.9 |
Total | ($30.50) | ($52.70) |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposited in operating accounts | $147.30 | $75.20 |
Investment in U.S. government backed securities | $5 | $5 |
Long_Term_Debt_and_Maturities_
Long Term Debt and Maturities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $2,731.20 | $2,820.80 |
Less: current maturities of long-term debt | 11.4 | 19.5 |
Total long-term debt less current portion | 2,719.80 | 2,801.30 |
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 411.4 | |
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,123.50 | 793.1 |
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,136.40 | 1,145 |
Senior Cash Pay Notes, fixed 7.125%, due 2019 | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $471.30 | $471.30 |
Long_Term_Debt_and_Maturities_1
Long Term Debt and Maturities (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility Term B-1, due date | 2014 |
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | |
Debt Instrument [Line Items] | |
Senior secured credit facility term B-2, due date | 2017 |
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility Term B-3, due date | 2019 |
Senior Cash Pay Notes, fixed 7.125%, due 2019 | |
Debt Instrument [Line Items] | |
Interest rate of Senior Notes | 7.13% |
Senior cash pay notes, fixed due date | 2019 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2007 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2007 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 30, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Aug. 30, 2013 | Oct. 31, 2012 | Aug. 30, 2013 | Oct. 31, 2012 | Aug. 30, 2013 | Oct. 31, 2012 | Aug. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-11 |
If leverage ratio is above 3.50 | Minimum | Maximum | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Senior Secured Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 | Senior Cash Pay Notes, fixed 7.125%, due 2019 | Senior Cash Pay Notes, fixed 7.125%, due 2019 | Senior Cash Pay Notes, fixed 7.125%, due 2019 | Senior Secured Credit Facility Term B-2 Loan, due 2017 | Senior Secured Credit Facility Term B-3 Loan, due 2019 | Senior Secured Credit Facility Term B-1 Loan, variable, due 2016 | ||||
Amendment Agreement | Minimum | Maximum | Federal Funds Rate | Federal Funds Rate | LIBOR | LIBOR | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Minimum | Maximum | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Allison Transmission Inc. | Line of Credit | Line of Credit | Line of Credit | Before Amendment | After Amendment | LIBOR | LIBOR | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Allison Transmission Inc. | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Allison Transmission Inc. | Allison Transmission Inc. | ||||||||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Refinanced Term Loan | Amendment | Refinanced Term Loan | Amendment | Maximum | Minimum | Maximum | LIBOR | Prime Rate or Federal Funds Rate | ||||||||||||||||||||||||||||||||||||||||||||
Refinanced Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness associated with Allison Transmission Inc. | $2,731.20 | $2,820.80 | $1,136.40 | $1,145 | $1,123.50 | $793.10 | $471.30 | $471.30 | $1,123.50 | $1,136.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of Senior Notes | 7.13% | 7.13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of long-term debt obligations | 2,761.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument face amount | 850 | 3,100 | 411.4 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility, maturity date | 7-Aug-14 | 7-Aug-17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended Senior Secured Credit Facility, principal amount | 801.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Applicable margin over base rate | 3.50% | 0.50% | 0.50% | 3.00% | 3.25% | 2.00% | 2.25% | 2.50% | 3.00% | 2.75% | 3.25% | 0.50% | 0.50% | 1.50% | 2.00% | 1.75% | 2.25% | 3.00% | 3.00% | 0.50% | 2.00% | 2.00% | 3.00% | 2.00% | ||||||||||||||||||||||||||||||||||||||||
Additional deferred financing fees recorded | 2.6 | 18.4 | 16.1 | 2.3 | 1.6 | 1 | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred financing fees for which the amortization period was extended as a result of debt modification | 5.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extended period of amortization on deferred financing fees | 2014 | 2017 | 2014 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility, extended maturity date | 2019-08 | 2019-08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest rate, description | Interest on the Term B-2 Loan, as of September 30, 2013, is equal to the LIBOR plus 3.00% | In August 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $850.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company's option to either (a) 3.25% or 3.00%, subject to the Company's total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company's total leverage ratio, | In October 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $300.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company's option to either (a) 3.25% or 3.00%, subject to the Company's total leverage ratio | LIBOR (which may not be less than 1.00%) | In February 2013, ATI also entered into an additional amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $411.4 million of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company's option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate | Interest on the Term B-2 Loan, as of September 30, 2013, is equal to the LIBOR plus 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred financing fees | 8.4 | 11.3 | 4.5 | 1 | 2.1 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit facility refinance description | In August 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $1,139.3 million of term loan debt and decrease the applicable margin for such term loans at the Company's option to either (a) 2.75% or 2.50%, subject to the Company's total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 1.75% or 1.50%, subject to the Company's total leverage ratio, over the greater of the prime lending rate | In February 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $793.1 million of term loan debt and decrease the applicable margin for such term loans at the Company's option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit facility refinanced amount | 1,139.30 | 793.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility Term B-1, due date | 2014-08 | 2017-08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIBOR margin rate | LIBOR plus 2.75% | LIBOR plus 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest rate for term loan | 3.75% | 3.19% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average rate on the Senior Secured Credit Facility | 3.47% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments on term loans | 2.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior secured credit facility term B-2, due date | 2017 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Credit Facility Term B-3, due date | 2019 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual excess cash flow to prepay term loan | 0.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit borrowings | 400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum amount of letters of credit commitments available under the revolving credit facility | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum amount outstanding at any time on the revolving credit facility | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available revolving credit facility | 386.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of Credit | $13.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit borrowings, interest rate | 2.94% | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, commitment fee percentage | 0.50% | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date of revolving credit borrowings | 2016-08 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Achieved senior secured leverage ratio | 3.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Achieved total leverage ratio | 4.26 |
Summary_of_Companys_Interest_R
Summary of Company's Interest Rate Derivatives (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Interest Rate Swap D, due 2013 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $125 | |
Fair Value | -2.8 | |
Interest Rate Swap E, due 2013 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 150 | |
Fair Value | -2.3 | |
Interest Rate Swap F, due 2013 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75 | |
Fair Value | -1.1 | |
Interest Rate Swap G, due 2013 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75 | |
Fair Value | -1.2 | |
Interest Rate Swap H, due 2014 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 350 | 350 |
Fair Value | -10.2 | -19 |
Interest Rate Swap I, due 2014 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 350 | 350 |
Fair Value | -10.3 | -19.2 |
Interest Rate Swap J, due 2014 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 125 | 125 |
Fair Value | -2.8 | -3.3 |
Interest Rate Swap K, due 2014 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 125 | 125 |
Fair Value | -2.9 | -3.4 |
Interest Rate Swap L Due Two Thousand Nineteen | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75 | |
Fair Value | -0.8 | |
Interest Rate Swap M Due Two Thousand Nineteen | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 100 | |
Fair Value | -1.1 | |
Interest Rate Swap N Due Two Thousand Nineteen | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75 | |
Fair Value | -0.7 | |
Interest Rate Swap O Due Two Thousand Nineteen | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75 | |
Fair Value | -0.2 | |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,275 | 1,375 |
Fair Value | ($29) | ($52.30) |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap L Due Two Thousand Thirteen | Interest Rate Swap M Due Two Thousand Thirteen | Interest Rate Swap N Due Two Thousand Thirteen | Interest Rate Swap O Due Two Thousand Nineteen | ||
Other Current Liabilities | Other Current Liabilities | Other Current Assets | Other Current Liabilities | Other Current Liabilities | Other non-current liabilities | Other non-current liabilities | Other Current Assets | Other Current Assets | Other non-current Assets | Other non-current Assets | Other Current Liabilities | Other Current Liabilities | Other non-current liabilities | Other non-current liabilities | |||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Notional Amount | $1,275 | $1,375 | $75 | $100 | $75 | $75 | |||||||||||||||||
Derivative, Swaption Interest Rate | 3.44% | 3.43% | 3.37% | 3.19% | |||||||||||||||||||
Derivative , LIBOR floor rate | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||||||||||
Derivative, Inception Date | 31-Aug-16 | 31-Aug-16 | 31-Aug-16 | 31-Aug-16 | |||||||||||||||||||
Derivative, Maturity Date | 31-Aug-19 | 31-Aug-19 | 31-Aug-19 | 31-Aug-19 | |||||||||||||||||||
Amount of collateral recorded in Other current assets | 1.7 | 3 | |||||||||||||||||||||
Letters of Credit | 9 | ||||||||||||||||||||||
Fair value of the derivative | 0 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||
Fair value of the derivative | ($0.30) | ($0.20) | ($1.20) | ($0.30) | ($0.20) | ($0.10) | ($26.20) | ($31.20) | ($2.80) | ($21.10) |
Summary_of_Outstanding_Foreign
Summary of Outstanding Foreign Currency Forward Contracts (Detail) (Foreign currency contracts, Japanese Yen) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) | USD ($) | JPY (¥) |
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | ¥ 550 | ¥ 675 | ||
Fair Value | ($0.20) | ¥ (0.2) | ($0.20) | ¥ (0.2) |
Summary_of_Outstanding_Commodi
Summary of Outstanding Commodity Swaps (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Aluminum | Aluminum | Steel | Natural Gas | ||
t | t | t | MMBTU | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount | $20.50 | $19.40 | $0.20 | $0.30 | ||
Quantity | 10,075 | 9,050 | 340 | |||
Quantity | 80,000 | |||||
Fair value | ($1.20) | ($0.20) | ($1.20) | ($0.10) | ($0.10) | $0 |
Companys_Derivative_Instrument
Company's Derivative Instruments and their Impact on Financial Condition of Company (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Total derivatives not designated as hedging instruments | ($1.20) | ($0.20) |
Other Current Liabilities | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | -0.3 | -0.2 |
Other Current Liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | -1.2 | -0.3 |
Other Current Liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | -26.2 | -31.2 |
Other Current Assets | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative Assets, Fair Value | 0 | |
Other Current Assets | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative Assets, Fair Value | 0.1 | 0.1 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Total derivatives not designated as hedging instruments | -30.5 | -52.7 |
Derivatives not designated as hedging instruments | Other Current Liabilities | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | -0.3 | -0.2 |
Derivatives not designated as hedging instruments | Other Current Assets | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative Assets, Fair Value | 0 | |
Derivatives not designated as hedging instruments | Other Current Assets | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative Assets, Fair Value | 0.2 | 0.2 |
Derivatives not designated as hedging instruments | Other current and non-current liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | -1.4 | -0.4 |
Derivatives not designated as hedging instruments | Other current and non-current liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative liability, Fair Value | ($29) | ($52.30) |
Derivative_Instruments_and_the
Derivative Instruments and their Impact on Results of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ||||
Total gain (loss) recognized on derivatives not designated as hedging instruments | $5.80 | $6.50 | $19.90 | $16.60 |
Foreign currency contracts | Other expense, net | ||||
Derivative [Line Items] | ||||
Total gain (loss) recognized on derivatives not designated as hedging instruments | 0.2 | 0 | -1.3 | 0.3 |
Commodity contracts | Other expense, net | ||||
Derivative [Line Items] | ||||
Total gain (loss) recognized on derivatives not designated as hedging instruments | 0.4 | 1.5 | -2.1 | 0 |
Interest rate contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Total gain (loss) recognized on derivatives not designated as hedging instruments | $5.20 | $5 | $23.30 | $16.30 |
Product_Warranty_Liability_Act
Product Warranty Liability Activities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Guarantor Obligations [Line Items] | ||||
Beginning balance | $105.60 | $111.10 | $109.70 | $115.40 |
Payments | -10.1 | -12.4 | -30.4 | -34.6 |
Increase in liability (warranty issued during period) | 7.5 | 5.6 | 20.8 | 20.1 |
Net adjustment to liability | -11.4 | 2 | -8.9 | 5 |
Accretion (for predecessor liabilities) | 0.1 | 0.2 | 0.5 | 0.6 |
Ending balance | $91.70 | $106.50 | $91.70 | $106.50 |
Product_Warranty_Liabilities_A
Product Warranty Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Guarantor Obligations [Line Items] | ||||||||
Product warranty liability, current | $38.60 | $33.20 | $38.60 | $33.20 | $36.20 | |||
Product warranty liability, non-current | 53.1 | 73.3 | 53.1 | 73.3 | 73.5 | |||
Increase (decrease) in extended Product liability | 8.2 | |||||||
Product warranty accrual reduction charged to DPIM receivable | 3.2 | |||||||
Product warranty accrual reduction charged to comprehensive income | 2.4 | |||||||
Warranty liability | 91.7 | 106.5 | 91.7 | 106.5 | 105.6 | 109.7 | 111.1 | 115.4 |
Warranty claims paid | 10.1 | 12.4 | 30.4 | 34.6 | ||||
Deferred Revenue | 63 | 63.8 | 63 | 63.8 | 61.1 | 63.5 | 63.6 | 60.7 |
Deferred revenue non-current liabilities | 41.7 | 43.1 | 41.7 | 43.1 | 42.6 | |||
General Motors | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Product warranty accrual reduction charged to DPIM receivable | 5.8 | |||||||
Reimbursement received | 7.6 | |||||||
Dual Power Inverter Module | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Warranty liability | 44.6 | 52.8 | 44.6 | 52.8 | ||||
Warranty claims paid | 23.1 | |||||||
Dual Power Inverter Module | General Motors | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Other receivable | 18.2 | 31.6 | 18.2 | 31.6 | ||||
ETC (extended transmission coverage) | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Deferred Revenue | 21.3 | 20.7 | 21.3 | 20.7 | ||||
U S Government Contracts | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Deferred Revenue | $0.30 | $0.30 |
Deferred_Revenue_for_Extended_
Deferred Revenue for Extended Transmission Coverage Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Guarantor Obligations [Line Items] | ||||
Beginning balance | $61.10 | $63.60 | $63.50 | $60.70 |
Increases | 7.6 | 5.2 | 15.7 | 18 |
Revenue earned | -5.7 | -5 | -16.2 | -14.9 |
Ending balance | $63 | $63.80 | $63 | $63.80 |
Other_Expense_Net_Detail
Other Expense Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 57 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Components of Other Income (Expense) [Line Items] | |||||
Grant Program income | $0.90 | $2.30 | $4.10 | $6.40 | $44.90 |
Impairment loss on investments in technology-related initiatives | -6.4 | -2.5 | -14.4 | ||
Loss on intercompany foreign exchange | -2.3 | -2.3 | |||
Realized loss on derivative contracts (see NOTE G) | -0.7 | -0.6 | -2.3 | -0.8 | |
Gain (loss) on foreign exchange | 0.1 | 1.6 | -1.8 | -1.4 | |
Unrealized gain (loss) on derivative contracts (see NOTE G) | 1.3 | 2.1 | -1.1 | 1.1 | |
Public offering fees and expenses | -0.3 | 0 | -0.9 | -6.1 | |
Loss on repayments and redemptions of long-term debt | -0.5 | -0.5 | -0.5 | -21.6 | |
Termination of Sponsor services agreement | -16 | ||||
Loss on re-measurement of employee benefit plans (see NOTE K) | -2.3 | ||||
Other | -0.3 | 0.1 | -0.3 | ||
Total | ($1.50) | ($1.80) | ($7.20) | ($55.40) |
Other_Expense_Net_Additional_I
Other Expense, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 57 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Other Income Expense [Line Items] | ||||||
Public offering fees and expenses | $0.30 | $0 | $0.90 | $6.10 | ||
Payment for expansion of transmission technologies | 2.5 | |||||
Impairment loss on investments in technology-related initiatives | 6.4 | 2.5 | 14.4 | |||
Grant Program income | 0.9 | 2.3 | 4.1 | 6.4 | 44.9 | |
Reduction of basis of capital assets purchased under Grant program | 0.2 | 0.4 | 2.9 | 2.6 | ||
Assets in service under the Grant Program | 7.1 | |||||
Assets acquired under Grant Program | 13.1 | 13.1 | 13.1 | |||
Grant Program, related depreciation | $0.10 | $0.20 | $0.20 | $0.50 | ||
Secondary Public Offering | ||||||
Other Income Expense [Line Items] | ||||||
Secondary offering of common stock | 23,805,000 | |||||
Common stock, price per share | $21.18 | $21.18 | $21.18 | |||
Stock repurchased from underwriter | 4,700,000 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Current Liabilities [Line Items] | ||
Payroll and related costs | $35.20 | $47.50 |
Derivative liabilities | 27.6 | 34.6 |
Defense price reduction reserve | 26.8 | 12 |
Sales allowances | 23.5 | 27 |
Accrued interest payable | 20.8 | 14.2 |
Vendor buyback obligation | 9.8 | 13.9 |
Taxes payable | 9.2 | 6.9 |
Other accruals | 9.9 | 11.3 |
Total | $162.80 | $167.40 |
Employee_Benefit_Plans_Detail
Employee Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans | ||||
Schedule of Employee Benefit Plans [Line Items] | ||||
Service cost | $4.10 | $3.50 | $12.30 | $11.70 |
Interest cost | 1 | 0.9 | 3 | 3.2 |
Expected return on assets | -1.6 | -1.4 | -5 | -4.5 |
Prior service cost | 0.1 | 0 | 0.1 | 0 |
Loss | 0.2 | 0.3 | 0.5 | 1 |
Settlement loss | 2.3 | |||
Net periodic benefit cost | 3.8 | 3.3 | 10.9 | 13.7 |
Post-retirement Benefits | ||||
Schedule of Employee Benefit Plans [Line Items] | ||||
Service cost | 0.8 | 1 | 2.4 | 2.9 |
Interest cost | 1.5 | 1.8 | 4.4 | 5.4 |
Prior service cost | -0.9 | -2.7 | ||
Net periodic benefit cost | $1.40 | $2.80 | $4.10 | $8.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes [Line Items] | ||||
Effective tax rate | -38.50% | -34.60% | -38.30% | 157.80% |
Income tax (expense) benefit | ($27.90) | ($17) | ($76.10) | $307.90 |
Valuation allowance on deferred tax assets | $384.80 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance of AOCL | ($43.90) |
Other comprehensive loss before reclassifications | -5.3 |
Amounts reclassified from AOCL | -1.3 |
Net current period other comprehensive loss | -6.6 |
Total AOCL | -50.5 |
Accumulated Net Unrealized Investment Gain (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance of AOCL | 2.2 |
Other comprehensive loss before reclassifications | -0.1 |
Net current period other comprehensive loss | -0.1 |
Total AOCL | 2.1 |
Accumulated Defined Benefit Plans Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance of AOCL | -36.9 |
Amounts reclassified from AOCL | -1.3 |
Net current period other comprehensive loss | -1.3 |
Total AOCL | -38.2 |
Accumulated Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance of AOCL | -9.2 |
Other comprehensive loss before reclassifications | -5.2 |
Net current period other comprehensive loss | -5.2 |
Total AOCL | ($14.40) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income Affected by Reclassifications from AOCL (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income before income taxes | $72.40 | $49.20 | $198.60 | $195.10 |
Tax expense | -27.9 | -17 | -76.1 | 307.9 |
Net of tax | 44.5 | 32.2 | 122.5 | 503 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income before income taxes | 0.7 | 2.1 | ||
Tax expense | -0.2 | -0.8 | ||
Net of tax | 0.5 | 1.3 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Cost of Sales | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Prior service cost | 0.7 | 2.1 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Selling, General and Administrative Expenses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Prior service cost | 0.2 | 0.6 | ||
Actuarial loss | -0.1 | -0.3 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Research and Development Expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Actuarial loss | ($0.10) | ($0.30) |
Certain_Relationships_and_Rela1
Certain Relationships and Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Related Party Transaction [Line Items] | |
Percentage the of Company's equity owned by affiliates | 69.60% |
Secondary Public Offering | |
Related Party Transaction [Line Items] | |
Secondary offering of common stock | 23,805,000 |
Common stock, per share | $21.18 |
Stock repurchased from underwriter | 4,700,000 |
Senior Notes | |
Related Party Transaction [Line Items] | |
Senior Notes, stated interest rate | 7.13% |
Lawrence E. Dewey | Fixed 7.125% Senior Notes | |
Related Party Transaction [Line Items] | |
Senior notes held by executive officers | $100,000 |
David S. Graziosi | Fixed 7.125% Senior Notes | |
Related Party Transaction [Line Items] | |
Senior notes held by executive officers | 450,000 |
Robert M. Price | Fixed 7.125% Senior Notes | |
Related Party Transaction [Line Items] | |
Senior notes held by executive officers | $150,000 |
Reconciliation_of_Numerators_a
Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Computation Of Earnings Per Share Line Items | ||||
Net income | $44.50 | $32.20 | $122.50 | $503 |
Weighted average shares of common stock outstanding | 184.4 | 181.9 | 185 | 181.6 |
Dilutive effect stock-based awards | 3.6 | 3.6 | 3.6 | 4.4 |
Diluted weighted average shares of common stock outstanding | 188 | 185.5 | 188.6 | 186 |
Basic earnings per share attributable to common stockholders | $0.24 | $0.18 | $0.66 | $2.77 |
Diluted earnings per share attributable to common stockholders | $0.24 | $0.17 | $0.65 | $2.70 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | Oct. 30, 2013 |
In Millions, unless otherwise specified | Derivative |
Line of Credit Facility [Line Items] | |
Number of interest rate swaps | 3 |
Interest Rate Swap One | |
Line of Credit Facility [Line Items] | |
Notional Amount | 75 |
Fixed interest rate | 3.08% |
LIBOR floor | 1.00% |
Interest Rate Swap Two | |
Line of Credit Facility [Line Items] | |
Notional Amount | 50 |
Fixed interest rate | 2.99% |
LIBOR floor | 1.00% |
Interest Rate Swap Three | |
Line of Credit Facility [Line Items] | |
Notional Amount | 50 |
Fixed interest rate | 2.98% |
LIBOR floor | 1.00% |