Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Feb. 10, 2014 | Feb. 10, 2014 | |
Common Stock | Non-voting Common Stock | |||
Document Information [Line Items] | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Trading Symbol | 'ALSN | ' | ' | ' |
Entity Registrant Name | 'ALLISON TRANSMISSION HOLDINGS INC | ' | ' | ' |
Entity Central Index Key | '0001411207 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 183,740,543 | 1,185 |
Entity Public Float | ' | $810,700,000 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $184.70 | $80.20 |
Accounts receivable - net of allowance for doubtful accounts of $0.4 and $0.9, respectively | 175.1 | 165 |
Inventories | 160.4 | 157.1 |
Deferred income taxes, net | 58.1 | 55.3 |
Other current assets | 28.6 | 32.7 |
Total Current Assets | 606.9 | 490.3 |
Property, plant and equipment, net | 563.4 | 596.2 |
Intangible assets, net | 1,610.80 | 1,716.10 |
Goodwill | 1,941 | 1,941 |
Deferred income taxes, net | 1.1 | 32.3 |
Other non-current assets | 89.4 | 90.1 |
TOTAL ASSETS | 4,812.60 | 4,866 |
Current Liabilities | ' | ' |
Accounts payable | 150.4 | 133.1 |
Product warranty liability | 37.4 | 36.2 |
Current portion of long-term debt | 17.9 | 19.5 |
Deferred revenue | 29.2 | 21.6 |
Other current liabilities | 152.3 | 167.4 |
Total Current Liabilities | 387.2 | 377.8 |
Product warranty liability | 53.1 | 73.5 |
Deferred revenue | 43.2 | 42.6 |
Long-term debt | 2,660.40 | 2,801.30 |
Deferred income taxes | 76.2 | 0.1 |
Other non-current liabilities | 153.7 | 213.8 |
TOTAL LIABILITIES | 3,373.80 | 3,509.10 |
Commitments and contingencies (see NOTE 17) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding | ' | ' |
Treasury stock | ' | -0.2 |
Paid in capital | 1,631.80 | 1,601.50 |
Accumulated deficit | -173.8 | -202.3 |
Accumulated other comprehensive loss, net of tax | -21 | -43.9 |
TOTAL STOCKHOLDERS' EQUITY | 1,438.80 | 1,356.90 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 4,812.60 | 4,866 |
Common Stock | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 1.8 | 1.8 |
Non-voting Common Stock | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivables | $0.40 | $0.90 |
Preferred stock, par value | $0.01 | ' |
Preferred stock, shares authorized | 100,000,000 | ' |
Preferred stock, shares issued | 0 | ' |
Preferred stock, shares outstanding | 0 | ' |
Common Stock | ' | ' |
Common stock, par value | $0.01 | ' |
Common stock, shares authorized | 1,880,000,000 | ' |
Common stock, shares issued | 183,375,436 | ' |
Common stock, shares outstanding | 183,375,436 | ' |
Non-voting Common Stock | ' | ' |
Common stock, par value | $0.01 | ' |
Common stock, shares authorized | 20,000,000 | ' |
Common stock, shares issued | 1,185 | ' |
Common stock, shares outstanding | 1,185 | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $1,926.80 | $2,141.80 | $2,162.80 |
Cost of sales | 1,084.90 | 1,187.50 | 1,208.30 |
Gross profit | 841.9 | 954.3 | 954.5 |
Selling, general and administrative expenses | 334.9 | 419 | 409.1 |
Engineering - research and development | 97.1 | 115.1 | 116.4 |
Operating income | 409.9 | 420.2 | 429 |
Interest income | 0.8 | 0.9 | 0.9 |
Interest expense | -133.7 | -152.1 | -218.2 |
Premiums and expenses on tender offer for long-term debt | ' | ' | -56.9 |
Other expense, net | -10.9 | -52.8 | -4.2 |
Income before income taxes | 266.1 | 216.2 | 150.6 |
Income tax (expense) benefit | -100.7 | 298 | -47.6 |
Net income | 165.4 | 514.2 | 103 |
Basic earnings per share attributable to common stockholders | $0.90 | $2.83 | $0.57 |
Diluted earnings per share attributable to common stockholders | $0.88 | $2.76 | $0.56 |
Dividends per common share | $0.42 | $0.18 | ' |
Other comprehensive (loss) income, net of tax: | ' | ' | ' |
Foreign currency translation | -5 | -0.7 | -11.6 |
Pension and OPEB liability adjustment | 29 | 15.1 | -22.6 |
Available-for-sale securities | -1.1 | -1.3 | 3.2 |
Total other comprehensive income (loss), net of tax | 22.9 | 13.1 | -31 |
Comprehensive income | $188.30 | $527.30 | $72 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $165.40 | $514.20 | $103 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of intangible assets | 105.3 | 150 | 151.9 |
Depreciation of property, plant and equipment | 98.7 | 102.5 | 103.8 |
Premiums and expenses on tender offer for long-term debt | ' | ' | 56.9 |
Deferred income taxes | 98 | -303.8 | 39.8 |
Unrealized (gain) loss on derivatives | -32.8 | -26.2 | 13.9 |
Stock-based compensation | 13.7 | 6.4 | 8 |
Excess tax benefit from stock-based compensation | -13.7 | -5.3 | ' |
Amortization of deferred financing fees | 10.9 | 14.5 | 12.1 |
Impairment loss on investments in technology-related initiatives | 5 | 14.4 | ' |
Loss on intercompany foreign exchange | 2.3 | ' | ' |
Loss on repurchases and redemptions of long-term debt | 0.8 | 22.1 | 16 |
Loss on re-measurement of employee benefit plans | ' | 2.3 | ' |
Other | -0.2 | -0.2 | -1.4 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -9.9 | 29.9 | -25 |
Inventories | -4.4 | -1.8 | -11 |
Accounts payable | 17.6 | -29.4 | 24.9 |
Other assets and liabilities | -3.2 | 7.9 | -23.7 |
Net cash provided by operating activities | 453.5 | 497.5 | 469.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Additions of long-lived assets | -74.4 | -123.9 | -96.9 |
Investments in technology-related initiatives | -8.8 | -14.4 | ' |
Collateral for interest rate derivatives | 1.2 | -1 | 38.6 |
Proceeds from disposal of assets | 0.5 | 0.6 | 2.4 |
Net cash provided by (used in) investing activities | -81.5 | -138.7 | -55.9 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Repurchase of common stock | -99.5 | ' | ' |
Issuance of long-term debt | ' | ' | 500 |
Debt issuance costs | ' | ' | -15 |
Debt financing fees | -14.9 | -20.2 | ' |
Repurchases and redemptions of long-term debt | ' | -326.9 | -764.4 |
Payments on long-term debt | -142.4 | -245.4 | -90.5 |
Dividend payments | -77.1 | -32.8 | ' |
Proceeds from exercise of stock options | 46.3 | 29 | ' |
Taxes paid related to net share settlement of equity awards | -3.6 | ' | ' |
Payments on notes payable | ' | -2.5 | ' |
Excess tax benefit from stock-based compensation | 13.7 | 5.3 | ' |
Net cash (used in) provided by financing activities | -277.5 | -593.5 | -369.9 |
Effect of exchange rate changes on cash | 10 | 0.9 | 18.4 |
Net increase (decrease) during period | 104.5 | -233.8 | 61.8 |
Cash and cash equivalents at beginning of period | 80.2 | 314 | 252.2 |
Cash and cash equivalents at end of period | 184.7 | 80.2 | 314 |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 159.2 | 167.3 | 208.6 |
Income taxes paid | $3.80 | $10.70 | $5.80 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), net of tax |
In Millions | ||||||
Stockholders Equity, Beginning Balance at Dec. 31, 2010 | $741.70 | $1.80 | ($0.20) | $1,552.80 | ($786.70) | ($26) |
Stock-based compensation | 8 | ' | ' | 8 | ' | ' |
Pension and OPEB liability adjustment | -22.6 | ' | ' | ' | ' | -22.6 |
Foreign currency translation adjustment | -11.6 | ' | ' | ' | ' | -11.6 |
Available-for-sale securities | 3.2 | ' | ' | ' | ' | 3.2 |
Net income | 103 | ' | ' | ' | 103 | ' |
Stockholders Equity, Ending Balance at Dec. 31, 2011 | 821.7 | 1.8 | -0.2 | 1,560.80 | -683.7 | -57 |
Stock-based compensation | 6.4 | ' | ' | 6.4 | ' | ' |
Pension and OPEB liability adjustment | 15.1 | ' | ' | ' | ' | 15.1 |
Foreign currency translation adjustment | -0.7 | ' | ' | ' | ' | -0.7 |
Available-for-sale securities | -1.3 | ' | ' | ' | ' | -1.3 |
Issuance of common stock | 29 | 0 | ' | 29 | ' | ' |
Dividends on common stock | -32.8 | ' | ' | ' | -32.8 | ' |
Excess tax benefit from stock-based compensation | 5.3 | ' | ' | 5.3 | ' | ' |
Net income | 514.2 | ' | ' | ' | 514.2 | ' |
Stockholders Equity, Ending Balance at Dec. 31, 2012 | 1,356.90 | 1.8 | -0.2 | 1,601.50 | -202.3 | -43.9 |
Stock-based compensation | 13.7 | ' | ' | 13.7 | ' | ' |
Pension and OPEB liability adjustment | 29 | ' | ' | ' | ' | 29 |
Foreign currency translation adjustment | -5 | ' | ' | ' | ' | -5 |
Available-for-sale securities | -1.1 | ' | ' | ' | ' | -1.1 |
Issuance of common stock | 42.6 | 0 | ' | 42.6 | ' | ' |
Repurchase of common stock | -99.5 | 0 | ' | -39.7 | -59.8 | ' |
Retirement of treasury stock | 0.2 | ' | 0.2 | ' | ' | ' |
Dividends on common stock | -77.1 | ' | ' | ' | -77.1 | ' |
Excess tax benefit from stock-based compensation | 13.7 | ' | ' | 13.7 | ' | ' |
Net income | 165.4 | ' | ' | ' | 165.4 | ' |
Stockholders Equity, Ending Balance at Dec. 31, 2013 | $1,438.80 | $1.80 | ' | $1,631.80 | ($173.80) | ($21) |
Overview
Overview | 12 Months Ended | |
Dec. 31, 2013 | ||
Overview | ' | |
NOTE 1. | OVERVIEW | |
Overview | ||
Allison Transmission Holdings, Inc. and its subsidiaries (the “Company,” “we” 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 approximately 2,700 employees and 13 different transmission product lines. Although approximately 77% percent of revenues were generated in North America in 2013, 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 (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (primarily 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. | ||
History | ||
The Company was formerly known as Allison Transmission (the “Predecessor”), an operating unit of General Motors Corporation, which, in the course of its bankruptcy proceeding was renamed Motors Liquidation Company (“Old GM”). On August 7, 2007, substantially all of the assets and liabilities of the Predecessor were acquired by the Company, under an Asset Purchase Agreement (the “Asset Purchase Agreement”) dated June 28, 2007 and entered into between Clutch Operating Company, Inc., a Delaware corporation owned by investment funds affiliated with The Carlyle Group and Onex Corporation (collectively, the “Sponsors”), and Old GM, the direct parent of the Predecessor, pursuant to which the Company acquired certain equity interests of, and certain assets and liabilities held by, direct and indirect operating subsidiaries of Old GM (the “Acquisition Transaction”). After completion of the Acquisition Transaction, Clutch Holdings, Inc., changed its name to Allison Transmission Holdings, Inc. and Clutch Operating Company, Inc. changed its name to Allison Transmission, Inc. (“ATI”). | ||
In July 2009, General Motors Company (“GM”) emerged from bankruptcy. In August 2009, the Company and GM finalized an agreement , pursuant to which GM assumed certain contracts and agreements between the Company and Old GM, including among others, the Asset Purchase Agreement, certain intellectual property and software license agreements, lease agreements, engineering services agreements, proving grounds use agreements, an employee matters agreement, a contract manufacturing agreement and a hybrid co-branding agreement. GM also assumed certain other commercial contracts, arrangements and purchase orders with the Company in connection with conducting its business. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation and Principles of Consolidation | |||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair presentation of the results for the periods presented. The consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. | |||
These consolidated financial statements present the results of operations, financial position, cash flows and statements of equity. Certain immaterial reclassifications have been made in the consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications have no impact on previously reported net income, total stockholders’ equity or cash flows. | |||
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. These 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 rate and other assumptions for pension and other postretirement benefit expense, income taxes, lease classification, 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. | |||
Segment Reporting | |||
In accordance with the Financial Accounting Standards Board (“FASB”) authoritative accounting guidance on segment reporting, the Company has one operating segment and reportable segment. The Company is in one line of business, which is in the manufacturing and distribution of fully-automatic transmissions. | |||
Government Grants | |||
The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the funds will be received. When the government grants relate to reimbursement of costs, the grant income is recognized in Other expense, net in the Consolidated Statements of Comprehensive Income. When the government grants relate to a reimbursement of capital expenditures, the grants are recognized as a reduction of the basis of the assets in the Consolidated Balance Sheets. | |||
Cash and Cash Equivalents | |||
Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. Under the Company’s cash management system, checks issued but not presented to banks may result in book overdraft balances for accounting purposes and are classified within Accounts payable in the Consolidated Balance Sheets. The change in book overdrafts is reported as a component of operating cash flows for Accounts payable. | |||
Marketable Securities | |||
The Company determines the appropriate classification of all marketable securities as “held-to-maturity,” “available-for-sale” or “trading” at the time of purchase, and re-evaluates such classifications as of each balance sheet date. As of December 31, 2013, the Company’s marketable securities are classified as either available-for-sale or trading. | |||
Available-for-sale securities are carried at fair value with the unrealized gain or loss reported in Accumulated other comprehensive loss (“AOCL”). Unrealized losses considered to be “other-than-temporary” are recognized in income. Trading securities are carried at fair value with the unrealized gain or loss recognized in Other expense, net. The fair value of the Company’s investment securities is determined by currently available market prices. See NOTE 6 for more details. | |||
Allowance for Doubtful Accounts | |||
The allowance for doubtful trade accounts receivable reflects estimated losses to be incurred in the collection of the receivables. Estimated losses are based on historical collection experience as well as a review by management of the current status of all receivables. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||
Inventories | |||
Inventories are stated at the lower of cost or market. The Company determines cost using the first-in, first-out method. The Company analyzes inventory on a quarterly basis to determine whether it is excess or obsolete inventory. Any decline in carrying value of estimated excess or obsolete inventory is recorded as a reduction of inventory and as an expense included in Cost of sales in the period it is identified. | |||
Property, Plant and Equipment | |||
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation expense is recorded using the straight-line method over the following estimated lives: | |||
Range in Years | |||
Land improvements | 5 – 30 | ||
Buildings and building improvements | 10 – 40 | ||
Machinery and equipment | 2 – 20 | ||
Software | 2 – 5 | ||
Special tools | 2 – 10 | ||
Software represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Software assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion and business process reengineering costs are expensed in the period in which they are incurred. | |||
Special tooling represents the costs to design and develop tools, dies, jigs and other items owned by the Company and used in the manufacture of components by suppliers under long-term supply agreements. Special tooling is depreciated over the tool’s expected life. Special tooling used in the development of new technology is expensed as incurred. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred. | |||
Impairment of Long-Lived Assets | |||
The carrying value of long-lived assets is evaluated whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Events or circumstances that would result in an impairment review primarily include a significant change in the use of an asset, or the planned sale or disposal of an asset. The asset would be considered impaired when there is no future use planned for the asset or the future net undiscounted cash flows generated by the asset or asset group are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value exceeds fair value. | |||
Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in an impairment charge. | |||
Goodwill and Other Intangible Assets | |||
Goodwill represents the excess of purchase price paid over the fair value of net assets acquired. In accordance with the FASB’s authoritative accounting guidance on goodwill, the Company does not amortize goodwill but rather evaluate it for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. There is one reporting unit which is the same as the Company’s one operating and reportable segment. The Company has elected to perform its annual impairment test on October 31 of every year. A multi-step impairment test is performed on goodwill. In Step 0, the Company has the option to evaluate various qualitative factors to determine the likelihood of impairment. If determined that the fair value is more likely than not less than the carrying value, then the Company is required to perform Step 1. If the Company does not elect to perform Step 0, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of its reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform Step 2 of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. | |||
After performing a quantitative analysis in 2013, the Company’s annual goodwill impairment test indicated that the fair value of the reporting unit exceeded its carrying value by approximately 90%, indicating no impairment. The fair value was determined utilizing a discounted cash flow model which includes key assumptions, such as net sales growth derived from market information, industry reports, marketing programs and future new product introductions; operating margin improvements derived from cost reduction programs and fixed cost leverage driven by higher sales volumes; and a risk-adjusted discount rate. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in the introduction of new products, lower gross margins as a result of market conditions or failure to obtain forecasted cost reductions, or a higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates were reasonable and incorporate assumptions that similar market participants would use in their estimates of fair value. | |||
Other intangible assets have both indefinite and finite useful lives. Intangible assets with indefinite useful lives, such as the Company’s trade name, are not amortized but are tested annually for impairment. The Company’s 2013 annual trade name impairment test indicated that the fair value of the trade name exceeded its carrying value by approximately 8%, indicating no impairment. The fair value was determined utilizing an income approach by which the relief from royalty method was applied. Key assumptions incorporated into the analysis were net sales growth derived from market information, industry reports, marketing programs and new product introductions; and risk-adjusted discount rates. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in introduction of new products, and higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates are reasonable and incorporate those assumptions that similar market participants would use in their estimates of fair value. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment when circumstances change that would create a triggering event. Customer relationships are amortized over the life in which expected benefits are to be consumed. The other remaining finite useful life intangibles are amortized on a straight-line basis over their useful lives. The Company evaluates the remaining useful life of the other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining useful life. Assumptions and estimates about future values and remaining useful lives of the Company’s intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company’s business strategy and internal forecasts. Although management believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact the Company’s reported financial results. | |||
NOTE 5 provides further information on Goodwill and Other intangible assets. | |||
Deferred Financing Costs | |||
Deferred financing costs are stated at cost as a component of other non-current assets and amortized over the life of the related debt using the effective interest method. Amortization of deferred financing costs is recorded as part of interest expense and totaled $10.9 million, $14.5 million and $12.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Financial Instruments | |||
The Company’s cash equivalents are invested in U.S. Government backed securities and recorded at fair value in the Consolidated Balance Sheets. The carrying values of accounts receivable and accounts payable approximate fair value due to their short-term nature. The Company’s financial derivative instruments, including interest rate swaps and foreign currency and commodity forward contracts are carried at fair value on the Consolidated Balance Sheets. Refer to NOTE 6 for more detail. The Company’s long-term debt obligations are carried at historical amounts with the Company providing fair value disclosure in NOTE 7. | |||
Insurable Liabilities | |||
The Company records liabilities for its medical, workers’ compensation, long-term disability, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated based upon historical claims experience. | |||
Revenue Recognition | |||
The Company records sales when title has transferred to the customer, there is evidence of an agreement, the sales price is fixed or determinable, delivery has occurred or services have been rendered, and collectability is reasonably assured. The Company sells Extended Transmission Coverage (“ETC”) for which sales are deferred. ETC sales are recognized ratably over the period of the ETC, which typically ranges from three to five years after initial sale. Distributor and customer sales incentives, consisting of allowances and other rebates, are estimated at the time of sale based upon the Company’s history and experience and are recorded as a reduction to Net sales. Incentive programs are generally product specific or region specific. Some factors used in estimating the cost of incentives include the number of transmissions that will be affected by the incentive program and rate of acceptance of any incentive program. If the actual number of affected transmissions differs from this estimate, or if a different mix of incentives is actually paid, the impact on Net sales would be recorded in the period that the change was identified. Consideration given to commercial customers recorded as a reduction of Net sales in the Consolidated Statements of Comprehensive Income included $65.2 million, $59.9 million and $59.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Sales under U.S. government production contracts are recorded when the product is accepted, title has transferred to the U.S. government, the sales price is fixed or determinable, and delivery has occurred. Deferred revenue arises from cash received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Under the terms of the U.S. government contracts, there are certain price reduction clauses and provisions for potential price reductions which are estimated at the time of sale based upon the Company’s history and experience and are recorded as a reduction to Net sales. Potential reductions may be attributed to a change in projected sales volumes or plant efficiencies which impact overall costs. As of December 31, 2013 and 2012, the Company had $49.6 million and $46.9 million recorded in the price reduction reserve account, respectively. | |||
Due to a request from the U.S. government, the Company billed, but did not ship certain tracked transmissions during the second half of 2013. Based on the lack of a fixed delivery date from the U.S. government, the Company did not recognize revenue as of December 31, 2013 for these transmissions. Revenue will be recognized once delivery has occurred. See NOTE 10 for additional details. | |||
The Company classifies shipping and handling billed to customers in Net sales and shipping and handling costs in Cost of sales, in accordance with authoritative accounting guidance. | |||
The Company contracts with various third parties to provide engineering services. These services are recorded as Net sales in accordance with the terms of the contract. The saleable engineering recorded was $12.4 million, $7.8 million and $7.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. The associated costs are recorded in Cost of sales. | |||
Warranty | |||
Provisions for estimated expenses related to product warranties are made at the time products are sold. Warranty claims arise when a transmission fails while in service during the relevant warranty period. The warranty reserve is provided for by adjusting Selling, general and administrative expenses by an amount based on the Company’s current and historical warranty claims paid and associated repair costs. These estimates are established using historical information including the nature, frequency, and average cost of warranty claims and are adjusted as actual information becomes available. Costs associated with ETC programs are recorded as incurred during the extended period. From time to time, the Company may initiate a specific field action program. As a result of the uncertainty surrounding the nature and frequency of specific field action programs, the liability for such programs is recorded when the Company commits to an action. The Company reviews and assesses the liability for these programs on a quarterly basis. The Company also assesses its ability to recover certain costs from its suppliers and records a receivable from the supplier when it believes a recovery is probable. | |||
Research and Development | |||
The Company incurs costs in connection with research and development programs that are expected to contribute to future earnings. Such costs are charged to Engineering — research and development as incurred. | |||
Foreign Currency Translation | |||
Most of the subsidiaries outside the United States prepare financial statements in currencies other than the U.S. dollar. The functional currency for all these subsidiaries is the local currency, except for the Company’s Hong Kong and Middle East subsidiaries which currently use the U.S. dollar as the functional currency, and balances are translated at period-end exchange rates for assets and liabilities and monthly weighted-average exchange rates for revenues and expenses. The translation gains (losses) are stated as a component of AOCL as disclosed in NOTE 16. | |||
Derivative Instruments | |||
In the normal course of business, the Company is exposed to fluctuations in interest rates, foreign currency exchange rates, and commodity prices. The risk is managed through the use of financial derivative instruments including interest rate swaps and commodity and foreign currency forward contracts. Despite the fact that the Company either has not elected or does not qualify for hedge accounting treatment on all of its derivative instruments, the contracts 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. NOTE 8 provides further information on the accounting treatment of the Company’s derivative instruments. | |||
Income Taxes | |||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The future tax benefits associated with operating loss and tax credit carryforwards are recognized as deferred tax assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||
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 the FASB’s authoritative accounting guidance on income taxes. Appropriate consideration is given to all positive and negative evidence related to that realization. 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 weight given to these considerations depends upon the degree to which they can be objectively verified. | |||
Stock-Based Compensation | |||
The Company maintains a stock-based compensation plan which allows employees (including executive officers), consultants and directors to receive equity awards. The Company has adopted the FASB’s authoritative accounting guidance on share-based payments and recognizes the fair value of the awards as compensation expense over the vesting period. The accounting guidance also requires that forfeitures be estimated over the vesting period of an award instead of being recognized as a reduction of compensation expense when the forfeiture actually occurs. | |||
Pension and Post-retirement Benefit Plans | |||
For pension and other post-retirement benefits (“OPEB”) plans in which employees participate, costs are determined within the FASB’s authoritative accounting guidance set forth in employers’ defined benefit pensions including accounting for settlements and curtailments of defined benefit pension plans, termination of benefits and accounting for post-retirement benefits other than pensions. In accordance with the authoritative accounting guidance, the Company recognizes the funded status of its defined benefit pension plans and OPEB plan in its Consolidated Balance Sheets with a corresponding adjustment to AOCL, net of tax. | |||
Post-retirement benefit costs consist of service cost, interest cost on accrued obligations and the expected return on assets (calculated using a smoothed market value of assets). Any difference between actual and expected returns on assets during a year and actuarial gains and losses on liabilities together with any prior service costs are charged (or credited) to income over the average remaining service lives of employees. | |||
The benefit cost components shown in the Consolidated Statements of Comprehensive Income are based upon various actuarial assumptions and methodologies as prescribed by authoritative accounting guidance. These assumptions include discount rates, expected return on plan assets, health care cost trend rates, inflation, rate of compensation increases, population demographics, mortality rates and other factors. The Company reviews all actuarial assumptions on an annual basis. | |||
Recently Adopted Accounting Pronouncements | |||
In July 2013, the 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 a material 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 consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the 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 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 consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES | ' | ||||||||
NOTE 3. | INVENTORIES | ||||||||
Inventories consisted of the following components (dollars in millions): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Purchased parts and raw materials | $ | 79.7 | $ | 80.6 | |||||
Work in progress | 5.7 | 7.5 | |||||||
Service parts | 45.8 | 44.5 | |||||||
Finished goods | 29.2 | 24.5 | |||||||
Total inventories | $ | 160.4 | $ | 157.1 | |||||
Inventory components shipped to third parties, primarily cores, parts to re-manufacturers, and parts to contract manufacturers, in which the Company has an obligation to buy back, are included in purchased parts and raw materials, with an offsetting liability in Other current liabilities. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
NOTE 4. | PROPERTY, PLANT AND EQUIPMENT | ||||||||
The cost and accumulated depreciation of property, plant and equipment are as follows (dollars in millions): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Land and land improvements | $ | 20.3 | $ | 16.2 | |||||
Buildings and building improvements | 271.4 | 263.3 | |||||||
Machinery and equipment | 567.7 | 543.7 | |||||||
Software | 112.9 | 102.9 | |||||||
Special tools | 143.4 | 129.6 | |||||||
Construction in progress | 48.6 | 56 | |||||||
Total property, plant and equipment | 1,164.30 | 1,111.70 | |||||||
Accumulated depreciation | (600.9 | ) | (515.5 | ) | |||||
Property, plant and equipment, net | $ | 563.4 | $ | 596.2 | |||||
Depreciation of property, plant and equipment was $98.7 million, $102.5 million and $103.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||
NOTE 5. | GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, the carrying value of the Company’s Goodwill was $1,941.0 million. | |||||||||||||||||||||||||
The following presents a summary of other intangible assets (dollars in millions): | |||||||||||||||||||||||||
December 31, 2013 | December 31, 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 | (24.4 | ) | 37.9 | 62.3 | (20.8 | ) | 41.5 | |||||||||||||||||
Customer relationships - commercial | 831.8 | (374.9 | ) | 456.9 | 831.8 | (321.2 | ) | 510.6 | |||||||||||||||||
Proprietary technology | 476.3 | (243.9 | ) | 232.4 | 476.3 | (205.8 | ) | 270.5 | |||||||||||||||||
Non-compete agreement | 17.3 | (11.1 | ) | 6.2 | 17.3 | (9.4 | ) | 7.9 | |||||||||||||||||
Patented technology - defense | 28.2 | (21.2 | ) | 7 | 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 | $ | (940.2 | ) | $ | 1,610.80 | $ | 2,551.00 | $ | (834.9 | ) | $ | 1,716.10 | |||||||||||
Amortization of intangible assets was $105.3 million, $150.0 million and $151.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The expected U.S. federal tax basis for Goodwill and Trade name deductions was $1,032.1 million and $709.4 million as of December 31, 2013 and $1,150.0 million and $792.0 million as of December 31, 2012, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, the net carrying value of the Company’s Goodwill and Other intangible assets, net was $3,551.8 million. After performing a quantitative analysis, the Company’s 2013 annual goodwill impairment test indicated that the fair value of the reporting unit exceeded its carrying value by approximately 90%, indicating no impairment. The fair value was determined utilizing a discounted cash flow model which includes key assumptions, such as net sales growth derived from market information, industry reports, marketing programs and new product introductions; operating margin improvements derived from cost reduction programs and fixed cost leverage driven by higher sales volumes; and a risk-adjusted discount rate. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in the introduction and adoption of new products, lower gross margins as a result of market conditions or failure to obtain forecasted cost reductions, or a higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates were reasonable and incorporate assumptions that similar market participants would use in their estimates of fair value. | |||||||||||||||||||||||||
The Company’s 2013 annual trade name impairment test indicated that the fair value of the trade name exceeded its carrying value by approximately 8%, indicating no impairment. The fair value was determined utilizing an income approach by which the relief from royalty method was applied. Key assumptions incorporated into the analysis were net sales growth derived from market information, industry reports, marketing programs and new product introductions; and risk-adjusted discount rates. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in introduction of new products, and higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates are reasonable and incorporate those assumptions that similar market participants would use in their estimates of fair value. | |||||||||||||||||||||||||
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 | $ | 275.6 | |||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||||||
NOTE 6. | 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 primarily 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 primarily 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 primarily 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 December 31, 2013 and 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 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 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 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 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 assets and liabilities in the 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 Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||
The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of December 31 (dollars in millions): | |||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | TOTAL | |||||||||||||||||||||||
Markets for Identical | Observable Inputs (Level 2) | ||||||||||||||||||||||||
Assets (Level 1) | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents | $ | 184.7 | $ | 80.2 | $ | — | $ | — | $ | 184.7 | $ | 80.2 | |||||||||||||
Available-for-sale securities | 8.2 | 6.1 | — | — | 8.2 | 6.1 | |||||||||||||||||||
Rabbi trust assets | 1.3 | 0.2 | — | — | 1.3 | 0.2 | |||||||||||||||||||
Deferred compensation obligation | (1.3 | ) | (0.2 | ) | — | — | (1.3 | ) | (0.2 | ) | |||||||||||||||
Derivative assets | — | — | 1.6 | 0.2 | 1.6 | 0.2 | |||||||||||||||||||
Derivative liabilities | — | — | (21.4 | ) | (52.9 | ) | (21.4 | ) | (52.9 | ) | |||||||||||||||
Total | $ | 192.9 | $ | 86.3 | $ | (19.8 | ) | $ | (52.7 | ) | $ | 173.1 | $ | 33.6 | |||||||||||
Of the available Cash and cash equivalents, approximately $179.7 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 December 31, 2013 and December 31, 2012, respectively. |
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
DEBT | ' | ||||||||
NOTE 7. | DEBT | ||||||||
Long-term debt and maturities are as follows (dollars in millions): | |||||||||
December 31, | 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 | 423.5 | 793.1 | |||||||
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | 1,783.50 | 1,145.00 | |||||||
Senior Cash Pay Notes, fixed 7.125%, due 2019 | 471.3 | 471.3 | |||||||
Total long-term debt | 2,678.30 | 2,820.80 | |||||||
Less: current maturities of long-term debt | 17.9 | 19.5 | |||||||
Total long-term debt less current portion | $ | 2,660.40 | $ | 2,801.30 | |||||
Principal payments required on long-term debt during the next five years are $17.9 million in 2014, $17.9 million in 2015, $17.9 million in 2016, $441.4 million in 2017 and $17.9 million in 2018. | |||||||||
As of December 31, 2013, the Company had $423.5 million of indebtedness associated with ATI’s Senior Secured Credit Facility Term B-2 Loan due 2017 (“Term B-2 Loan”) and $1,783.5 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 December 31, 2013 was $2,724.3 million. The fair value is based on quoted Level 1 market prices of the Company’s debt as of December 31, 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 primarily 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 November 2008, ATI entered into an amendment related to the Senior Secured Credit Facility that permits the Company to make discounted voluntary prepayments of the term loans in an aggregated amount not to exceed $750.0 million pursuant to a modified Dutch auction. As part of the May 2011 amendment to the Senior Secured Credit Facility, described in more detail below, the amount available for discounted voluntary prepayments of the term loan pursuant to a modified Dutch auction was reset to $750.0 million. This provision is available to the Company for so long as the Senior Secured Credit Facility is outstanding. For the years ended December 31, 2013, 2012 and 2011, the Company has not made any repurchases of our term loan under these amendments. | |||||||||
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 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 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 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 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 consolidated financial statements. | |||||||||
In December 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $650.0 million of term loan debt from August 2017 to August 2019 and to reduce the applicable margin 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 also extended the maturity of the revolving credit facility to January 2019, increased the borrowing capacity to $410.0 million, reduced the interest rate spread to either 2.25%, 2.00% or 1.75% on LIBOR loans or 1.25%, 1.00% or 0.75% on Base Rate loans, subject to the Company’s total leverage ratio, reduced the commitment fee to either 0.375% or 0.25%, subject to the Company’s total leverage ratio, and increased the letters of credit sublimit to $75.0 million. Lastly, the amendment changed the requirement of the maximum total senior secured leverage ratio, so that it is only applicable to the revolving portion of the Senior Secured Credit Facility and is tested only when revolving commitments (including letters of credit) remain outstanding at the end of any fiscal quarter. The amendment to the term loans was treated as a modification of debt under GAAP, and thus the Company expensed $0.5 million of deferred financing fees and recorded $10.1 million of new deferred financing fees in the consolidated financial statements. The amendment to the revolving portion of the Senior Secured Credit Facility was treated as a modification of debt under GAAP, and thus the Company expensed $0.4 million of deferred financing fees and recorded $2.1 million of new deferred financing fees in the 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 December 31, 2013, is equal to the LIBOR plus 3.00% and interest on the Term B-3 Loan, as of December 31, 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 December 31, 2013, these rates were approximately 3.17% 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 3.64%. 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 $4.5 million and remains through its maturity date of 2019. As of December 31, 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, 2013, the Company was not required to make an excess cash flow payment. | |||||||||
The Senior Secured Credit Facility also provides for $410.0 million in revolving credit borrowings, net of an allowance for up to $75.0 million in outstanding letter of credit commitments. Throughout the year ended December 31, 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 year on the revolving credit facility was $20.0 million, and all balances were repaid within the quarter they were borrowed. As of December 31, 2013, the Company had $395.0 million available under the revolving credit facility, net of $15.0 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 December 31, 2013, this rate would have been between approximately 2.44% and 4.50%. In addition, there is an annual commitment fee, based on the Company’s total senior secured leverage ratio, which as of December 31, 2013, was equal to 0.375% 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 January 2019. | |||||||||
The revolving portion of the Senior Secured Credit Facility requires the Company to maintain a specified maximum total senior secured leverage ratio of 5.50x when revolving commitments (including letters of credit) remain outstanding at the end of a fiscal quarter. As of December 31, 2013, the Company was in compliance with the maximum total senior secured leverage ratio, achieving a 3.23x ratio. Within the terms of the Senior Secured Credit Facility, a senior secured leverage ratio at or below 3.50x also results in the elimination of excess cash flow payments on the Senior Secured Credit Facility for the applicable year. Additionally, the Senior Secured Credit Facility provides certain financial incentives based on our total leverage ratio. A total leverage ratio at or below 4.00x results in a 25 basis point reduction to the applicable margin on the revolving credit facility, and a total leverage ratio at or below 3.50x results in a 12.5 basis point reduction to the revolving credit facility commitment fee and an additional 25 basis point reduction to the applicable margin on the revolving credit facility. A total leverage ratio at or below 3.25x results in a 25 basis point reduction to the applicable margin on our Term B-3 Loan. These reductions would remain in effect as long as the Company achieves a total leverage ratio at or below the related threshold. As of December 31, 2013, the total leverage ratio was 3.98x. | |||||||||
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 December 31, 2013, the Company is in compliance with all covenants under the Senior Secured Credit Facility. | |||||||||
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. For the years ended December 31, 2013, 2012 and 2011 the Company repurchased $0.0 million, $0.0 million and $28.7 million (at face value) of its 7.125% Senior Notes, respectively. The repurchases resulted in a net gain (the discount between the purchase price of the notes and the face value of such notes) of $0.0 million, $0.0 million, and $1.3 million for the years ended December 31, 2013, 2012 and 2011, respectively, net of deferred financing fees written off. | |||||||||
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. | |||||||||
The indenture governing the 7.125% Senior Notes contains negative covenants restricting or limiting the Company’s ability to, among other things: incur or guarantee additional indebtedness, incur liens, pay dividends on, redeem or repurchase the Company’s capital stock, make certain investments, permit payment or dividend restrictions on certain of the Company’s subsidiaries, sell assets, engage in certain transactions with affiliates, and consolidate or merge or sell all or substantially all of the Company’s assets. Certain of these covenants would be suspended if the 7.125% Senior Notes were to reach investment grade. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||||
NOTE 8. | 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 Consolidated Statements of Comprehensive Income. A summary of the Company’s interest rate derivatives as of December 31, 2013 and December 31, 2012 follows (dollars in millions): | |||||||||||||||||||||
December 31, 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 | (7.2 | ) | 350 | (19.0 | ) | |||||||||||||||
Interest Rate Swap I, due 2014 | 350 | (7.2 | ) | 350 | (19.2 | ) | |||||||||||||||
Interest Rate Swap J, due 2014 | 125 | (2.0 | ) | 125 | (3.3 | ) | |||||||||||||||
Interest Rate Swap K, due 2014 | 125 | (2.0 | ) | 125 | (3.4 | ) | |||||||||||||||
Interest Rate Swap L, due 2019 | 75 | (0.4 | ) | — | — | ||||||||||||||||
Interest Rate Swap M, due 2019 | 100 | (0.4 | ) | — | — | ||||||||||||||||
Interest Rate Swap N, due 2019 | 75 | (0.2 | ) | — | — | ||||||||||||||||
Interest Rate Swap O, due 2019 | 75 | 0.2 | — | — | |||||||||||||||||
Interest Rate Swap P, due 2019 | 75 | 0.4 | — | — | |||||||||||||||||
Interest Rate Swap Q, due 2019 | 50 | 0.4 | — | — | |||||||||||||||||
Interest Rate Swap R, due 2019 | 50 | 0.4 | — | — | |||||||||||||||||
$ | 1,450.00 | $ | (18.0 | ) | $ | 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 3.17% and a LIBOR floor of 1.00% with no independent collateral requirement. | |||||||||||||||||||||
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. Interest Rate Swap P 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. Interest Rate Swap Q 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. Interest Rate Swap R 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. | |||||||||||||||||||||
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 December 31, 2013 and 2012, the Company had recorded cash collateral of $1.7 million and $3.0 million, respectively, in Other current assets in the Consolidated Balance Sheets, as the balances are subject to frequent change. The Company has also posted $5.0 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 Consolidated Statements of Comprehensive Income during the period of change. | |||||||||||||||||||||
The following table summarizes the outstanding foreign currency forward contracts as of December 31, 2013 and 2012 (amounts in millions): | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Japanese Yen (JPY) | ¥ | 600 | $ | (0.3 | ) | ¥ | 675 | $ | (0.2 | ) | |||||||||||
$ | (0.3 | ) | $ | (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 Consolidated Statements of Comprehensive Income during the period of change. | |||||||||||||||||||||
The following table summarizes the outstanding commodity swaps as of December 31, 2013 and December 31, 2012 (dollars in millions): | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Quantity | Fair Value | Notional | Quantity | Fair Value | ||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Aluminum | $ | 23.8 | 11,875 metric tons | $ | (1.6 | ) | $ | 19.4 | 9,050 metric tons | $ | (0.1 | ) | |||||||||
Steel | N/A | N/A | — | $ | 0.2 | 340 metric tons | (0.1 | ) | |||||||||||||
Natural Gas | $ | 0.3 | 90,000 MMBtu | 0 | $ | 0.3 | 80,000 MMBtu | 0 | |||||||||||||
$ | (1.6 | ) | $ | (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): | |||||||||||||||||||||
December 31, 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 | $ | (0.3 | ) | Other current | $ | (0.2 | ) | |||||||||||||
liabilities | liabilities | ||||||||||||||||||||
Commodity contracts | Other current and | 0.1 | Other current and | 0.2 | |||||||||||||||||
non-current assets | non-current assets | ||||||||||||||||||||
Other current and | (1.7 | ) | Other current and | (0.4 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Interest rate contracts | Other non- | 1.5 | |||||||||||||||||||
current assets | |||||||||||||||||||||
Other current and | (19.5 | ) | Other current and | (52.3 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | (19.9 | ) | $ | (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 Consolidated Balance Sheets. As of December 31, 2013, 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 $0.0 million, respectively. The amounts recorded to Other current and non-current liabilities for commodity contracts were ($1.5) million and ($0.2) million, respectively. The amount recorded to Other non-current assets for interest rate contracts was $1.5 million. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($18.5) million and ($1.0) 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 for commodity were $0.1 million and $0.1 million, respectively. The amounts recorded to Other current and non-current liabilities for commodity contracts were ($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 impact on the Company’s Consolidated Statements of Comprehensive Income related to foreign currency and commodity contracts can be found in NOTE 11, and the following tabular disclosure describes the location and impact on the Company’s results of operations related to unrealized gain (loss) on interest rate derivatives (dollars in millions): | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Location of impact on results of operations | |||||||||||||||||||||
Interest expense | $ | 34.3 | $ | 25.5 | $ | (7.0 | ) |
PRODUCT_WARRANTY_LIABILITIES
PRODUCT WARRANTY LIABILITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
PRODUCT WARRANTY LIABILITIES | ' | ||||||||||||
NOTE 9. | PRODUCT WARRANTY LIABILITIES | ||||||||||||
Product warranty liability activities consist of the following (dollars in millions): | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 109.7 | $ | 115.4 | $ | 128.5 | |||||||
Payments | (38.7 | ) | (47.3 | ) | (35.5 | ) | |||||||
Increase in liability (warranties issued during period) | 28.4 | 25.5 | 26.5 | ||||||||||
Net adjustments to liability | (9.6 | ) | 15.3 | (5.1 | ) | ||||||||
Accretion (for Predecessor liabilities) | 0.7 | 0.8 | 1 | ||||||||||
Ending balance | $ | 90.5 | $ | 109.7 | $ | 115.4 | |||||||
As of December 31, 2013, the current and non-current liabilities were $37.4 million and $53.1 million, respectively. As of December 31, 2012 the current and non-current liabilities were $36.2 million and $73.5 million, respectively. | |||||||||||||
During June 2007, Old GM recognized the estimated cost of replacing the Dual Power Inverter Module (“DPIM”) used on H 40/50 EP hybrid systems. Certain units were falling short of their expected service life and the Predecessor decided to cover repair or replacement for an extended period. The Company is responsible for the first $12.0 million of qualified cost while GM is responsible for the next $34.0 million of costs, with any amount over $46.0 million being shared one-third by the Company and two-thirds by GM for shipments through June 30, 2009. | |||||||||||||
During 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 GM DPIM receivable and a $2.4 million favorable adjustment to the Consolidated Statements of Comprehensive Income. As of December 31, 2013 and 2012, the DPIM liability was $44.6 million and $52.8 million with an associated receivable from GM of $25.8 million and $31.6 million, respectively. Through December 31, 2013, the Company had paid approximately $25.5 million in DPIM claims and received approximately $9.1 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. | |||||||||||||
During 2012, the Company reviewed its DPIM extended coverage program and determined, based on current claims, that the product liability should be reduced by $7.9 million. This resulted in a $7.3 million reduction in the GM DPIM receivable and a $0.6 million favorable adjustment to the Consolidated Statements of Comprehensive Income. As part of the analysis, it was also determined that design issues related to the early introduction of the replacement DPIM unit resulted in a $10.0 million increase to the product warranty liability. As the replacement DPIM unit is the responsibility of the Company and not covered by the Asset Purchase Agreement, the Company recorded a $10.0 million charge to the Consolidated Statements of Comprehensive Income. | |||||||||||||
During 2011, the Company reviewed its DPIM costs associated with the extended coverage resulting in no change to the DPIM liability and no change to the associated GM receivable. | |||||||||||||
The remaining adjustments to the total liability in 2013, 2012 and 2011 were the result of general changes in estimates for various products as additional claims data and field information became available. |
DEFERRED_REVENUE
DEFERRED REVENUE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DEFERRED REVENUE | ' | ||||||||||||
NOTE 10. | DEFERRED REVENUE | ||||||||||||
As of December 31, 2013, the current and non-current liabilities related to deferred revenue were $29.2 million and $43.2 million, respectively. As of December 31, 2012, the current and non-current liabilities related to deferred revenue were $21.6 million and $42.6 million, respectively. | |||||||||||||
Deferred revenue for ETC activity (dollars in millions): | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 63.5 | $ | 60.5 | $ | 56.2 | |||||||
Increases | 21.1 | 22.9 | 19.6 | ||||||||||
Revenue earned | (21.0 | ) | (19.9 | ) | (15.3 | ) | |||||||
Ending balance | $ | 63.6 | $ | 63.5 | $ | 60.5 | |||||||
Deferred revenue recorded in current liabilities related to unearned net sales for defense contracts for the years ended December 31, 2013, 2012 and 2011 was approximately $8.8 million, $0.7 million and $0.2 million, respectively. During 2013, the Company recorded deferred revenue for payments received from the U.S. government for certain tracked transmissions that were not shipped at the request of the U.S. government. |
OTHER_EXPENSE_NET
OTHER EXPENSE, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER EXPENSE, NET | ' | ||||||||||||
NOTE 11. | OTHER EXPENSE, NET | ||||||||||||
Other expense, net consists of the following (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Grant Program income | $ | 5.2 | $ | 11.5 | $ | 15.6 | |||||||
Impairment loss on investments in technology-related initiatives | (5.0 | ) | (14.4 | ) | — | ||||||||
Realized (loss) gain on derivative contracts (see NOTE 8) | (2.8 | ) | (1.3 | ) | 5.2 | ||||||||
Loss on foreign exchange | (2.4 | ) | (2.6 | ) | (6.7 | ) | |||||||
Loss on intercompany foreign exchange | (2.3 | ) | — | — | |||||||||
Public offering fees and expenses | (1.6 | ) | (6.1 | ) | — | ||||||||
Unrealized (loss) gain on derivative contracts (see NOTE 8) | (1.5 | ) | 0.9 | (6.8 | ) | ||||||||
Loss on repayments and redemptions of long-term debt (see NOTE 7) | (0.8 | ) | (22.1 | ) | (16.0 | ) | |||||||
Termination of Sponsor services agreement (see NOTE 19) | — | (16.0 | ) | — | |||||||||
Loss on re-measurement of employee benefit plans (see NOTE 13) | — | (2.3 | ) | — | |||||||||
Vendor settlement | — | — | 3.7 | ||||||||||
Gain on sale of land | — | — | 0.7 | ||||||||||
Other | 0.3 | (0.4 | ) | 0.1 | |||||||||
Total | $ | (10.9 | ) | $ | (52.8 | ) | $ | (4.2 | ) | ||||
During the second quarter of 2013, the Company filed a shelf registration statement on Form S-3 for its common stock. During the third quarter of 2013, the Company completed an underwritten secondary public offering of 23,805,000 shares of its common stock held by investment funds affiliated with the Sponsors at a public offering price, less underwriting discounts and commissions, of $21.175 per share. 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. During the fourth quarter of 2013, the Company completed two secondary public offerings of 15,000,000 shares and 12,500,000 shares, respectively, of its common stock held by investment funds affiliated with the Sponsors at a public offering price, less underwriting discounts and commissions, of $23.10 and $25.56, respectively, per share. The Company received no proceeds from any of these sales. For the years ended December 31, 2013, 2012, and 2011, the Company incurred $1.6 million, $6.1 million and $0.0 million, respectively, of expenses related to public offerings. | |||||||||||||
In each of the first quarter and fourth quarter of 2013, the Company made $2.5 million investments as part of an agreement signed in 2012 to expand our position in transmission technologies. Due to various uncertainties surrounding the investments 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 investments to zero as of December 31, 2013. The related charge of $5.0 million was recorded in Other expense, net in the Consolidated Statements of Comprehensive Income for the year ended December 31, 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 Government’s matching reimbursement is recorded to Other expense, net in the Consolidated Statements of Comprehensive Income. Since inception of the Grant Program, the Company has recorded $46.0 million of Grant Program income to Other expense, net in the Consolidated Statements of Comprehensive Income. | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company recorded $3.9 million, $3.2 million and $4.9 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 $7.1 million of assets of which $7.1 million have been placed in service, resulting in related depreciation of $0.2 million, $0.1 million and $0.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER CURRENT LIABILITIES | ' | ||||||||
NOTE 12. | OTHER CURRENT LIABILITIES | ||||||||
Other current liabilities consist of the following (dollars in millions): | |||||||||
As of | As of | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and related costs | $ | 37.6 | $ | 47.5 | |||||
Sales allowances | 26.9 | 27 | |||||||
Derivative liabilities | 20.2 | 34.6 | |||||||
Accrued interest payable | 11.2 | 14.2 | |||||||
Defense price reduction reserve | 26.8 | 12 | |||||||
Taxes payable | 8.6 | 6.9 | |||||||
Vendor buyback obligation | 11.8 | 13.9 | |||||||
Other accruals | 9.2 | 11.3 | |||||||
Total | $ | 152.3 | $ | 167.4 | |||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||||
NOTE 13. | EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||||
The Company’s hourly defined benefit pension plan generally provides benefits of negotiated, stated amounts for each year of service as well as significant supplemental benefits for employees who retire with 30 years of service before normal retirement age. For all hourly employees hired after May 18, 2008, the defined benefit pension plan was replaced with a defined contribution pension plan, and the company-sponsored retiree healthcare was also eliminated for those hired after May 18, 2008. The charge to expense for the hourly defined contribution pension plan was $1.0 million, $0.9 million and $0.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
In accordance with the Asset Purchase Agreement, the Company’s hourly employees who retired prior to October 2, 2011 (the “Cutoff Date”) will have their pension and OPEB paid by GM. The Company was required, pursuant to the Asset Purchase Agreement, to transfer pension assets to GM’s pension plan to cover the Company’s portion of its pension liability related to the employees who retired prior to the Cutoff Date. During the second quarter of 2012, the Company completed the transfer of its pension obligation for certain qualified hourly employees to GM’s pension plan. The transfer required a re-measurement of the hourly defined benefit pension plan resulting in a one-time non-cash settlement charge of $2.3 million recorded in Other expense, net in the Consolidated Statements of Comprehensive Income and a $4.2 million reduction to the Company’s pension liability with corresponding adjustments to AOCL, net of tax. The employees who retired prior to the Cutoff Date are the responsibility of GM and will have their OPEB paid by GM. This resulted in a $17.9 million gain to the Company’s 2011 actuarial valuation. Employees that retire subsequent to the Cutoff Date will have their Allison pension and OPEB paid by the Company and their GM pension benefit paid by GM. | |||||||||||||||||||||||||
The Company’s salaried defined benefit plan covering salaried employees with a service date prior to January 1, 2001 is generally based on years of service and compensation history. The salaried defined contribution retirement savings plan requires the Company to match employee contributions up to certain predefined limits based upon eligible base salary. In addition to the matching contribution, the Company is required to make a contribution equal to 1% of eligible base salary for salaried employees with a service date on or after January 1, 1993 to cover certain benefits in retirement that are different from salaried employees with a service date prior to January 1, 1993. In addition, for salaried employees with a service date on or after January 1, 2001, the Company is required to contribute to its defined contribution retirement savings plan an amount equal to 4% of eligible base salary under the program. The charge to expense for the salaried defined contribution retirement savings plan was $5.4 million, $5.1 million and $4.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The Company is also responsible for OPEB costs (medical, dental, vision, and life insurance) for hourly employees hired prior to May 19, 2008. Post-retirement benefit costs consist of service cost, interest cost on accrued obligations and the expected return on assets (calculated using a smoothed market value of assets). Any difference between actual and expected returns on assets during a year and actuarial gains and losses on liabilities together with any prior service costs are charged (or credited) to income over the average remaining service lives of employees. The benefit cost components shown in the Consolidated Statements of Comprehensive Income are based upon certain data specific to the Company, actuarial assumptions that were used for OPEB accounting disclosures, and certain allocation methodologies such as population demographics. The plan is unfunded and any future payments will be funded by the Company’s operating cash flows. As of December 31, 2013 and 2012, the Company had an estimated OPEB liability for hourly employees hired prior to May 19, 2008, excluding those employees eligible to retire at the time of the Acquisition Transaction, of $120.7 million and $142.6 million, respectively. | |||||||||||||||||||||||||
As part of the Health Care Reform Act enacted in 2010, the Company has evaluated the impact on “High-cost Health Plans” in which employers offering health plan coverage exceeding certain thresholds must pay an excise tax equal to 40% of the value of the plan that exceeds the threshold amount. Although the excise tax does not come into effect until 2018, the Company has recorded $3.6 million in its OPEB liability as of December 31, 2013 with a corresponding adjustment to AOCL, net of tax. | |||||||||||||||||||||||||
The Company provides contributions to certain international benefit plans; however, these contributions are not material for periods presented. | |||||||||||||||||||||||||
For all pension and OPEB plans in which employees participate, costs are determined within the FASB’s authoritative accounting guidance set forth on employers’ defined benefit pensions including accounting for settlements and curtailments of defined benefit pension plans, termination of benefits and accounting for post-retirement benefits other than pensions. In accordance with the authoritative accounting guidance, the Company recognizes the funded status of its defined benefit pension plans and OPEB plan in its Consolidated Balance Sheets with a corresponding adjustment to AOCL, net of tax. | |||||||||||||||||||||||||
Information about the net periodic benefit cost and other changes recognized in Accumulated Other Comprehensive Loss for the pension and post-retirement benefit plans is as follows (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Service cost | $ | 16.3 | $ | 15.2 | $ | 14.7 | $ | 3.3 | $ | 3.9 | $ | 3.7 | |||||||||||||
Interest cost | 4 | 4.1 | 3.9 | 5.8 | 7.2 | 7.1 | |||||||||||||||||||
Expected return on assets | (6.7 | ) | (5.9 | ) | (4.2 | ) | — | — | — | ||||||||||||||||
Prior service cost | 0.1 | 0.1 | 0.1 | (3.6 | ) | — | — | ||||||||||||||||||
Loss | 0.7 | 1.2 | 1 | — | — | — | |||||||||||||||||||
Settlement loss | — | 2.3 | — | — | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | $ | 14.4 | $ | 17 | $ | 15.5 | $ | 5.5 | $ | 11.1 | $ | 10.8 | |||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Other changes recognized in other comprehensive (income) loss: | |||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (0.1 | ) | $ | — | $ | (28.9 | ) | $ | — | |||||||||||
Net (gain) loss | (18.4 | ) | (2.1 | ) | 7.7 | (30.7 | ) | 3.8 | 18.9 | ||||||||||||||||
Amortizations | (0.8 | ) | (3.6 | ) | (1.1 | ) | 3.6 | — | — | ||||||||||||||||
Total recognized – other comprehensive (income) loss | $ | (19.2 | ) | $ | (5.7 | ) | $ | 6.5 | $ | (27.1 | ) | $ | (25.1 | ) | $ | 18.9 | |||||||||
The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost. | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 3.9 | % | 4.6 | % | 5.6 | % | 4.1 | % | 4.6 | % | 5.6 | % | |||||||||||||
Rate of compensation increase (salaried) | 3 | % | 4 | % | 4 | % | N/A | N/A | N/A | ||||||||||||||||
Expected return on assets | 7 | % | 7 | % | 7 | % | N/A | N/A | N/A | ||||||||||||||||
The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of the Company’s plans. | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.9 | % | 4.1 | % | |||||||||||||||||
Rate of compensation increase (salaried) | 3 | % | 3 | % | N/A | N/A | |||||||||||||||||||
The Company’s pension and OPEB costs are calculated using various actuarial assumptions and methodologies as prescribed by authoritative accounting guidance. These assumptions include discount rates, expected return on plan assets, health care cost trend rates, inflation, rate of compensation increases, mortality rates and other factors. The Company reviews all actuarial assumptions on an annual basis. | |||||||||||||||||||||||||
The discount rate is used to determine the present value of the Company’s benefit obligations. The Company’s discount rate is determined by matching the plans projected cash flows to a yield curve based on long-term, fixed income debt instruments available as of the measurement date of December 31, 2013. | |||||||||||||||||||||||||
The overall expected rate of return on plan assets is based upon historical and expected future returns consistent with the expected benefit duration of the plan for each asset group adjusted for investment and administrative fees. | |||||||||||||||||||||||||
Health care cost trends are used to project future post-retirement benefits payable from the Company’s plans. For the Company’s December 31, 2013 obligations, future post-retirement medical care costs were forecasted assuming an initial annual increase of 6.70%, decreasing to 4.50% by the year 2027. Future post-retirement prescription drug costs were forecasted assuming an initial annual increase of 6.00%, decreasing to 4.50% by the year 2027. | |||||||||||||||||||||||||
As health care costs trends have a significant effect on the amounts reported, the following effects of an increase and decrease of one-percentage-point would have the following effects in the year ended December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||
1% Increase | 1% Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 2.1 | $ | (1.6 | ) | ||||||||||||||||||||
Effect on post-retirement benefit obligation | $ | 23 | $ | (18.2 | ) | ||||||||||||||||||||
The following table provides a reconciliation of the changes in the net benefit obligations and fair value of plan assets for the years ended December 31, 2013, 2012 and 2011 (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Benefit Obligations: | |||||||||||||||||||||||||
Net benefit obligation at beginning of year | $ | 103.3 | $ | 99.7 | $ | 71.4 | $ | 142.6 | $ | 156.6 | $ | 127 | |||||||||||||
Service cost | 16.3 | 15.2 | 14.7 | 3.3 | 3.9 | 3.7 | |||||||||||||||||||
Interest cost | 4 | 4.1 | 4 | 5.8 | 7.2 | 7.1 | |||||||||||||||||||
Plan Amendments | — | — | — | — | (28.9 | ) | — | ||||||||||||||||||
Settlements | — | (18.8 | ) | — | — | — | — | ||||||||||||||||||
Benefits paid | (0.8 | ) | (0.4 | ) | (0.3 | ) | (0.3 | ) | — | — | |||||||||||||||
Actuarial (gain) loss | (16.9 | ) | 3.5 | 9.9 | (30.7 | ) | 3.8 | 18.8 | |||||||||||||||||
Net benefit obligation at end of year | $ | 105.9 | $ | 103.3 | $ | 99.7 | $ | 120.7 | $ | 142.6 | $ | 156.6 | |||||||||||||
Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 89.4 | $ | 83.4 | $ | 54.9 | $ | — | $ | — | $ | — | |||||||||||||
Actual return on plan assets | 8.2 | 11.5 | 6.6 | — | — | — | |||||||||||||||||||
Employer contributions | 11.8 | 13.7 | 22.2 | 0.3 | — | — | |||||||||||||||||||
Settlements | — | (18.8 | ) | — | — | — | — | ||||||||||||||||||
Benefits paid | (0.8 | ) | (0.4 | ) | (0.3 | ) | (0.3 | ) | — | — | |||||||||||||||
Fair value of plan assets at end of year | $ | 108.6 | $ | 89.4 | $ | 83.4 | $ | — | $ | — | $ | — | |||||||||||||
Net Funded Status | $ | 2.7 | $ | (13.9 | ) | $ | (16.3 | ) | $ | (120.7 | ) | $ | (142.6 | ) | $ | (156.6 | ) | ||||||||
In the second quarter of 2012, the Company completed its negotiation with GM to determine the amount of pension assets to be transferred from the Company to GM as required by the Asset Purchase Agreement. The Company transferred $18.8 million of plan assets to GM to settle this obligation. | |||||||||||||||||||||||||
In the fourth quarter of 2012, the Company and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) Local 933 entered into a new five year collective bargaining agreement that expires in November 2017. The multi-tiered wage and benefit structure from the prior agreement was retained and the parties agreed to additional changes, such as implementing a new retirement health care plan and eliminating the consumer price index based cost of living allowance that had been part of the prior agreement. As a result, the Company recorded a $28.9 million favorable adjustment to the net benefit obligation. | |||||||||||||||||||||||||
The Company’s pension plan assets consist of money market funds, mutual funds, listed equities and publicly traded bonds. The Company’s valuation techniques used to fair value pension plan assets represents a market approach in active markets for identical assets that qualifies as Level 1 in the fair value hierarchy. | |||||||||||||||||||||||||
The fair values of plan assets for the Company’s pension plans as of December 31, 2013 and 2012 are as follows (dollars in millions): | |||||||||||||||||||||||||
Quoted Prices in Active Markets | |||||||||||||||||||||||||
for Identical Assets (Level 1) | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Asset Category | Fair Value | % | Fair Value | % | |||||||||||||||||||||
Cash and cash equivalents | $ | 3.6 | 3 | % | $ | 3.6 | 4 | % | |||||||||||||||||
Diversified equity securities | 51.5 | 48 | 41.1 | 46 | |||||||||||||||||||||
Diversified debt securities | 53.5 | 49 | 44.7 | 50 | |||||||||||||||||||||
Total | $ | 108.6 | 100 | % | $ | 89.4 | 100 | % | |||||||||||||||||
The Company’s investment strategy with respect to pension plan assets is to invest the assets in accordance with laws and regulations. The long-term primary objectives for the Company’s pension assets are to provide results that meet or exceed the plans’ actuarially assumed long-term rate of return without subjecting the funds to undue risk. To achieve these objectives the Company has established the following targets: | |||||||||||||||||||||||||
Target | |||||||||||||||||||||||||
Asset Category | Hourly | Salary | |||||||||||||||||||||||
Cash and cash equivalents | 3 | % | 3 | % | |||||||||||||||||||||
Diversified equity securities | 42 | 51 | |||||||||||||||||||||||
Diversified debt securities | 55 | 46 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Through 2013, the Company’s investment committee has continued to evaluate the investments and take steps toward the established targets. | |||||||||||||||||||||||||
The following table discloses the amounts recognized in the balance sheet and in AOCL at December 31, 2013 and 2012, on a pre-tax basis (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts Recognized in Balance Sheet: | |||||||||||||||||||||||||
Noncurrent assets | $ | 7.4 | $ | — | $ | — | $ | — | |||||||||||||||||
Current liabilities | — | — | (1.4 | ) | (1.2 | ) | |||||||||||||||||||
Noncurrent liabilities | (4.7 | ) | (13.9 | ) | (119.3 | ) | (141.4 | ) | |||||||||||||||||
Total asset (liability) | $ | 2.7 | $ | (13.9 | ) | $ | (120.7 | ) | $ | (142.6 | ) | ||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Prior service (cost) credit | $ | (0.2 | ) | $ | (0.3 | ) | $ | 25.4 | $ | 28.9 | |||||||||||||||
Actuarial gain (loss) | 2.7 | (16.4 | ) | 17.1 | (13.5 | ) | |||||||||||||||||||
Total | $ | 2.5 | $ | (16.7 | ) | $ | 42.5 | $ | 15.4 | ||||||||||||||||
The amounts in AOCL expected to be amortized and recognized as a component of net periodic benefit cost in 2014 are as follows (dollars in millions): | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Pension | Post-retirement | ||||||||||||||||||||||||
Plans | Benefits | ||||||||||||||||||||||||
Prior service (cost) credit | $ | (0.1 | ) | $ | 3.6 | ||||||||||||||||||||
Actuarial loss | — | 0.8 | |||||||||||||||||||||||
Total | $ | (0.1 | ) | $ | 4.4 | ||||||||||||||||||||
The accumulated benefit obligation for the Company’s pension plans as of December 31, 2013 and 2012 was $103.1 million and $100.0 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, the projected benefit obligation, the accumulated benefit obligation, and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets were as follows (dollars in millions): | |||||||||||||||||||||||||
Hourly Plan | Salary Plan | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets: | |||||||||||||||||||||||||
Projected benefit obligation | N/A | 1 | $ | 51.9 | $ | 53.8 | $ | 51.4 | |||||||||||||||||
Fair value of plan assets | N/A | 1 | $ | 50.3 | $ | 49.1 | $ | 39.1 | |||||||||||||||||
Plans with accumulated benefit obligation in excess of plan assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | N/A | 1 | $ | 51.9 | $ | 50.9 | $ | 48.1 | |||||||||||||||||
Fair value of plan assets | N/A | 1 | $ | 50.3 | $ | 49.1 | $ | 39.1 | |||||||||||||||||
1 | As of December 31, 2013, the hourly defined benefit pension plan had plan assets greater than both the projected benefit obligation and accumulated benefit obligation. | ||||||||||||||||||||||||
Information about expected cash flows for the Company’s pension and post-retirement benefit plans is as follows (dollars in millions): | |||||||||||||||||||||||||
Pension | Post-retirement | ||||||||||||||||||||||||
Plans | Benefits | ||||||||||||||||||||||||
Employer Contributions: | |||||||||||||||||||||||||
2014 expected contributions | $ | 9.5 | $ | 1.4 | |||||||||||||||||||||
Expected Benefit Payments: | |||||||||||||||||||||||||
2014 | $ | 2.3 | $ | 1.4 | |||||||||||||||||||||
2015 | 3.2 | 2.3 | |||||||||||||||||||||||
2016 | 4.2 | 3.2 | |||||||||||||||||||||||
2017 | 5 | 4.1 | |||||||||||||||||||||||
2018 | 5.8 | 5.1 | |||||||||||||||||||||||
2019-2023 | 38.9 | 34.2 | |||||||||||||||||||||||
Expected benefit payments for pension and post-retirement benefits will be paid from plan trusts or corporate assets. The Company’s funding policy is to contribute amounts annually that are at least equal to the amounts required by applicable laws and regulations or to directly fund payments to plan participants. Additional discretionary contributions will be made when deemed appropriate to meet the Company’s long-term obligation to the plans. | |||||||||||||||||||||||||
In June 2012, the Company established a non-qualified deferred compensation plan (“Deferred Compensation Plan”) for a select group of management. Under the terms of the plan, the Company has utilized a rabbi trust to accumulate assets to fund its promise to pay benefits under the Deferred Compensation Plan. The rabbi trust is an irrevocable trust, which restricts any use of funds (operational or otherwise) by the Company other than to pay benefits under the Deferred Compensation Plan, and prevents immediate taxation of contributed amounts. Funds are accumulated through both employee deferrals and a company match. Funds can be invested by the employee into a diversified group of investment options, which have been selected by the Company’s investment committee, that are all categorized as Level 1 in the fair value hierarchy. The company match resulted in a charge of $0.3 million, $0.1 million, and $0.0 million to the Consolidated Statements of Comprehensive Income for the years ended December 31, 2013, 2012 and 2011, respectively, and the fair value of the rabbi trust plan assets and deferred compensation obligation was $1.3 million and $0.2 million as of December 31, 2013 and 2012, respectively. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
NOTE 14. | STOCK-BASED COMPENSATION | ||||||||||||
In March 2012, the Company’s Board of Directors adopted and the Company’s stockholders approved the Allison Transmission Holdings, Inc. 2011 Equity Incentive Award Plan (“2011 Plan”), which became effective as of the day prior to the consummation of the Company’s IPO. Under the 2011 Plan, certain employees (including executive officers), consultants and directors are eligible to receive equity-based compensation, including non-qualified stock options, incentive stock options, restricted stock, dividend equivalents, stock payments, restricted stock units (“RSU”), performance awards, stock appreciation rights and other equity-based awards, or any combination thereof. The 2011 Plan limits the aggregate number of shares of common stock available for issue to 15.3 million and will expire on, and no option or other equity award may be granted pursuant to the 2011 Plan after, the tenth anniversary of the date the 2011 Plan was approved by the Board of Directors. | |||||||||||||
Prior to the adoption of the 2011 Plan, the Company’s equity-based awards were granted under the Equity Incentive Plan of Allison Transmission Holdings, Inc. (“Prior Plan”). As of the effective date of the 2011 Plan, no new awards will be granted under the Prior Plan, but the Prior Plan will continue to govern the equity awards issued under the Prior Plan. | |||||||||||||
Restricted Stock Units | |||||||||||||
RSUs were issued to certain employees in 2012 and 2013 and certain directors in 2013 under the 2011 Plan at fair market value at the date of grant. These awards entitle the holder to receive one common share for each RSU upon vesting, which generally occurs over either one, two or three years. A summary of RSU activity as of December 31, 2013 and 2012, and changes during the period then ended is presented below: | |||||||||||||
Non-vested Shares: | RSUs | Weighted-Average | |||||||||||
(in millions) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested as of December 31, 2011 | — | $ | — | ||||||||||
Granted | 1 | 20.2 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Non-vested as of December 31, 2012 | 1 | $ | 20.2 | ||||||||||
Granted | 0.2 | 23.31 | |||||||||||
Vested | (0.4 | ) | 20.23 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested as of December 31, 2013 | 0.8 | $ | 20.9 | ||||||||||
As of December 31, 2013 and 2012, there was $10.4 million and $18.5 million, respectively, of unrecognized compensation cost related to non-vested RSU compensation arrangements granted under the 2011 Plan. This cost is expected to be recognized, on a straight line basis, over a period of approximately two years. RSU incentive compensation expense recorded was $12.0 million, $0.9 million and $0.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Pursuant to the share withholding provisions of the 2011 Plan, and the related RSU award agreement, certain employees, in lieu of paying withholding taxes on the vesting of RSUs, authorized the withholding of an aggregate of approximately 0.1 million shares of the Company’s common stock to satisfy their minimum statutory tax withholding requirements related to such vesting events during the second and third quarters of 2013. These shares were recorded as a reduction to equity at the New York Stock Exchange (“NYSE”) closing price per share on the applicable vesting dates of $23.08 and $22.75 per share, respectively, during the second and third quarter of 2013 for a total of approximately $3.6 million. | |||||||||||||
Stock Options | |||||||||||||
Stock options granted under the Prior Plan after the completion of the Acquisition Transaction and through March 2012, have a per share exercise price based on the fair market value of the Company at the date of grant. Stock options granted under the 2011 Plan have a per share exercise price based on the closing price of a share of the Company’s common stock as reported by the NYSE on the date of grant. All stock options expire 10 years after the grant date. The options vest upon the continued performance of services by the option holder over time, with either 20% or 33% of the award vesting on each anniversary of the grant date over three to five years for awards under the Prior Plan and 100% on December 15 of the year that is two years after the year of grant under the 2011 Plan. Upon termination of employment for reasons other than cause, retirement before the age of 65 with less than 90 points (calculated as age plus years of service), death or disability, the options shall cease to be exercisable ninety days following the date of the optionees’ termination of service. Upon termination of employment for cause, the options shall not be exercisable on the date of such termination. Upon termination of employment for retirement at or after the age of 65, the options shall cease to be exercisable three years following such date. Upon termination of employment for retirement before the age of 65 with 90 or more points, the options shall cease to be exercisable two years following such date. Upon termination of employment for death or disability, the options shall cease to be exercisable twelve months following such date. | |||||||||||||
In accordance with the FASB’s authoritative accounting guidance on stock compensation, each option grant is to be recorded at fair value. When options are granted, the Company used a Black-Scholes option pricing model to calculate the fair value of each option award using the assumptions noted in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected volatility | 51 | % | N/A | 101% | |||||||||
Expected dividend yield | 1.2 | % | N/A | 0.00% | |||||||||
Expected term (in years) | 5.4 | N/A | 3.6 | ||||||||||
Expected forfeitures | 0 | % | N/A | 0% | |||||||||
Risk-free rate | 1.6 | % | N/A | 0.6% – 1.7% | |||||||||
Expected volatility is based on “the average volatilities of otherwise similar public entities” as defined by authoritative accounting guidance. The Company currently pays a $0.12 dividend per quarter. The expected term is derived from the average of the weighted vesting life and the contractual term. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has assumed no forfeitures primarily because of a history of retaining senior executives. | |||||||||||||
A summary of option activity as of December 31, 2013, 2012 and 2011, and changes during the period then ended is presented below: | |||||||||||||
Options | Weighted- | Weighted-Average | |||||||||||
(in millions) | Average Exercise | Remaining | |||||||||||
Price | Contractual Term | ||||||||||||
Outstanding as of December 31, 2010 | 14.8 | $ | 13.42 | 5.94 years | |||||||||
Exercisable as of December 31, 2010 | 8.4 | $ | 13.38 | 5.84 years | |||||||||
Granted | 0.1 | $ | 8.44 | ||||||||||
Exercised | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Outstanding as of December 31, 2011 | 14.9 | $ | 13.4 | 4.94 years | |||||||||
Exercisable as of December 31, 2011 | 11.5 | $ | 13.37 | 4.88 years | |||||||||
Granted | — | — | |||||||||||
Exercised | (2.7 | ) | — | ||||||||||
Forfeited or expired | (0.3 | ) | — | ||||||||||
Outstanding as of December 31, 2012 | 11.9 | $ | 14.01 | 4.93 years | |||||||||
Exercisable as of December 31, 2012 | 11.8 | $ | 14.02 | 4.91 years | |||||||||
Granted | 0.6 | $ | 23.39 | ||||||||||
Exercised | (3.8 | ) | — | ||||||||||
Forfeited or expired | — | — | |||||||||||
Outstanding as of December 31, 2013 | 8.7 | $ | 15.33 | 4.30 years | |||||||||
Exercisable as of December 31, 2013 | 8.1 | $ | 14.79 | 3.94 years | |||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $9.76, $0.0 and $5.43, respectively. The total fair value of shares vested during the years ended December 31, 2013, 2012 and 2011 was $0.7 million, $7.5 million and $8.1 million, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2013 and 2012 was $58.0 million and $24.6 million, respectively. The aggregate intrinsic value of shares outstanding and exercisable was $106.8 million and $103.8 million as of December 31, 2013, and $77.5 million and $76.7 million as of December 31, 2012, respectively. | |||||||||||||
A summary of the status of the Company’s non-vested stock options as of December 31, 2013, 2012 and 2011, and changes during the period ended December 31, 2013, 2012 and 2011 is presented below: | |||||||||||||
Non-vested Stock Options: | Options | Weighted-Average | |||||||||||
(in millions) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at December 31, 2010 | 6.3 | $ | 2.62 | ||||||||||
Granted | 0.1 | 5.43 | |||||||||||
Vested | (3.0 | ) | 2.67 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested at December 31, 2011 | 3.4 | $ | 2.81 | ||||||||||
Granted | — | — | |||||||||||
Vested | (2.9 | ) | 2.58 | ||||||||||
Forfeited | (0.3 | ) | 4 | ||||||||||
Non-vested at December 31, 2012 | 0.2 | $ | 4.34 | ||||||||||
Granted | 0.6 | 9.76 | |||||||||||
Vested | (0.2 | ) | 3.59 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested at December 31, 2013 | 0.6 | $ | 9.06 | ||||||||||
As of December 31, 2013, 2012 and 2011, there was $4.2 million, $0.5 million and $9.5 million, respectively, of unrecognized compensation cost related to non-vested stock option compensation arrangements granted under the Prior Plan and the 2011 Plan. This cost is expected to be recognized, on a straight line basis, over a period of approximately two years. Stock option incentive compensation expense recorded was $1.7 million, $5.5 million and $8.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES | ' | ||||||||||||
NOTE 15. | INCOME TAXES | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The future tax benefits associated with operating loss and tax credit carryforwards are recognized as deferred tax assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||||||||||||
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. 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 weight given to these considerations depends upon the degree to which they can be objectively verified. | |||||||||||||
During 2012, management determined, based on the evaluation of both objective and subjective evidence available, that the domestic valuation allowance was no longer 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 objectively measured positive evidence outweighed the negative evidence. Accordingly, in 2012, the Company recognized an income tax benefit as a result of the release of the valuation allowance which had previously been recorded against the deferred tax assets. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets. | |||||||||||||
Income before income taxes included the following (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. income | $ | 259 | $ | 204.1 | $ | 133.8 | |||||||
Foreign income | 7.1 | 12.1 | 16.8 | ||||||||||
Total | $ | 266.1 | $ | 216.2 | $ | 150.6 | |||||||
The provision for income tax expense (benefit) was estimated as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Estimated current income taxes: | |||||||||||||
U.S. federal | $ | 0.2 | $ | 1.5 | $ | — | |||||||
Foreign | 1.9 | 3.9 | 6.7 | ||||||||||
U.S. state and local | 0.6 | 0.4 | 1.1 | ||||||||||
Total Current | 2.7 | 5.8 | 7.8 | ||||||||||
Deferred income tax expense (credit), net: | |||||||||||||
U.S. federal | 87.6 | (282.5 | ) | 37.5 | |||||||||
Foreign | 0.1 | 0.1 | (0.4 | ) | |||||||||
U.S. state and local | 10.3 | (21.4 | ) | 2.7 | |||||||||
Total Deferred | 98 | (303.8 | ) | 39.8 | |||||||||
Total income tax expense | $ | 100.7 | $ | (298.0 | ) | $ | 47.6 | ||||||
Cash paid for income taxes for the years ended December 31, 2013, 2012 and 2011 was $3.8 million, $10.7 million and $5.8 million, respectively. | |||||||||||||
A reconciliation of the provision for income tax expense compared with the amounts at the U.S. federal statutory rate is as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax at U.S. statutory income tax rate | $ | 93.1 | $ | 75.7 | $ | 52.9 | |||||||
Foreign rate differential | (0.7 | ) | (2.6 | ) | (2.0 | ) | |||||||
Non-deductible expenses | 0.8 | 4.2 | 5.6 | ||||||||||
Valuation allowance | 1 | (384.1 | ) | (19.2 | ) | ||||||||
State tax expense | 7.3 | 5.7 | 4.4 | ||||||||||
Adjustment to deferred tax expense | (0.3 | ) | 2.2 | 4.3 | |||||||||
Branch income taxes-not creditable | — | — | (0.1 | ) | |||||||||
Other adjustments | (0.5 | ) | 0.9 | 1.7 | |||||||||
Total income tax expense | $ | 100.7 | $ | (298.0 | ) | $ | 47.6 | ||||||
Deferred income tax assets and liabilities for 2013 and 2012 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the bases of such assets, liabilities and equity as measured by tax laws, as well as tax loss and tax credit carryforwards. The Company has not recognized any deferred tax liabilities associated with investments and earnings in foreign subsidiaries as they are intended to be permanent in duration. Such amounts may become taxable upon an actual or deemed repatriation in the future. Management believes that estimating an unrecognized deferred tax liability is unnecessary at this time. | |||||||||||||
Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities included the following (dollars in millions): | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 4.6 | $ | 4 | |||||||||
Warranty accrual | 32.7 | 39.2 | |||||||||||
Sales allowances and rebates | 7.9 | 8 | |||||||||||
Deferred revenue | 24 | 24.2 | |||||||||||
Post-retirement health care | — | 8 | |||||||||||
Intangibles | 83.6 | 112.4 | |||||||||||
Other accrued liabilities | 27.2 | 22 | |||||||||||
Unrealized loss on interest rate derivatives | 3.7 | 20 | |||||||||||
Operating loss carryforwards | 140.7 | 145.3 | |||||||||||
Stock based compensation | 12.5 | 10.6 | |||||||||||
Technology-related investments | 6.8 | 4.4 | |||||||||||
Loan fees | 0.9 | 1.5 | |||||||||||
Pension | — | 5.6 | |||||||||||
Other | 10.4 | 13.9 | |||||||||||
Total Deferred tax assets | 355 | 419.1 | |||||||||||
Valuation allowances | (2.8 | ) | (1.7 | ) | |||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | (22.0 | ) | (25.8 | ) | |||||||||
Loan fees | — | — | |||||||||||
Goodwill | (280.3 | ) | (261.1 | ) | |||||||||
Trade name | (60.6 | ) | (29.3 | ) | |||||||||
Product warranty liabilities | (5.6 | ) | (10.6 | ) | |||||||||
Pension | (0.5 | ) | — | ||||||||||
Post-retirement health care | (0.2 | ) | — | ||||||||||
Other liabilities | — | (3.1 | ) | ||||||||||
Total Deferred tax liabilities | (369.2 | ) | (329.9 | ) | |||||||||
Net Deferred tax (liability) asset | $ | (17.0 | ) | $ | 87.5 | ||||||||
Of the estimated net operating loss carryforwards as of December 31, 2013, approximately 88% relates to U.S. federal net operating loss carryforwards and approximately 7% relates to the U.S. state net operating loss carryforwards. Substantially all U.S. Federal and State operating loss carryforwards will not expire until 2027-2032. Should either of the Sponsors sell a significant portion of their holdings, the Company may experience a delay in its ability to recognize net operating losses under the applicable internal revenue code. | |||||||||||||
During 2012, management determined, based on the evaluation of both objective and subjective evidence available, that the domestic valuation allowance was no longer 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 objectively measured positive evidence outweighed the negative evidence. Accordingly, in 2012, the Company recognized an income tax benefit as a result of the release of the valuation allowance which had previously been recorded against the deferred tax assets. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets. The change in the valuation allowance and related considerations are as follows (dollars in millions): | |||||||||||||
December 31, 2010 | $ | 401.9 | |||||||||||
Reductions | (11.0 | ) | |||||||||||
December 31, 2011 | $ | 390.9 | |||||||||||
Reductions | (389.2 | ) | |||||||||||
December 31, 2012 | $ | 1.7 | |||||||||||
Additions | 1.1 | ||||||||||||
December 31, 2013 | $ | 2.8 | |||||||||||
In accordance with the FASB’s authoritative guidance on accounting for uncertainty in income taxes, the Company has recorded a liability for unrecognized tax benefits related to the 2010 Research & Development Credit. The Company had no liability for unrecognized tax benefits for the years ended December 31, 2012 and 2011. 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. All of the returns (when filed) will remain subject to examination by the various taxing authorities for the duration of the applicable statute of limitations (generally three years from the earlier of the date of filing or the due date of the return). The change in the liability for unrecognized tax benefits are as follows (dollars in millions): | |||||||||||||
December 31, 2010 | $ | — | |||||||||||
December 31, 2011 | $ | — | |||||||||||
December 31, 2012 | $ | — | |||||||||||
Increases in unrecognized tax benefits as a result of current year activity | 2.3 | ||||||||||||
December 31, 2013 | $ | 2.3 | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company recognized no interest and penalties in the Consolidated Statements of Comprehensive Income. The Company follows a policy of recording any tax related interest or penalties in Income tax expense. | |||||||||||||
In September 2013, the U.S. Treasury Department and Internal Revenue Service issued final Tangible Property Regulations (“TPR”). The regulations are not effective until tax years beginning on or after January 1, 2014; however, certain portions may require an accounting method change on a retroactive basis, thus requiring an adjustment related to fixed and real asset deferred taxes. The accounting rules treat the release of the regulations as a change in tax law as of the date of issuance and require the Company to determine whether there will be an impact on its financial statements for the period ended December 31, 2013. Any such impact of the final tangible property regulations would affect temporary deferred taxes only and result in a balance sheet reclassification between current and non-current deferred taxes. The Company has analyzed the expected impact of the TPR on the financial statements and concluded that the expected impact is minimal. The Company will continue to monitor the impact of any future changes to the TPR on the Company prospectively. |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMPREHENSIVE INCOME | ' | ||||||||||||
NOTE 16. | COMPREHENSIVE INCOME | ||||||||||||
The Company’s comprehensive income consists of unrealized net gains and losses on the translation of the assets and liabilities of its foreign operations, available-for-sale securities, and pension and OPEB liability adjustments. The following table reconciles net income to comprehensive income with the related tax effects (dollars in millions): | |||||||||||||
Comprehensive Income | |||||||||||||
Before Tax | Tax (Expense) | After Tax | |||||||||||
Benefit | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Net income | $ | 150.6 | $ | (47.6 | ) | $ | 103 | ||||||
Foreign currency translation | (11.6 | ) | — | (11.6 | ) | ||||||||
Pension and OPEB liability adjustment | (22.6 | ) | — | (22.6 | ) | ||||||||
Available-for-sale securities | 3.2 | — | 3.2 | ||||||||||
Total comprehensive income | $ | 119.6 | $ | (47.6 | ) | $ | 72 | ||||||
Year ended December 31, 2012 | |||||||||||||
Net income | $ | 216.2 | $ | 298 | $ | 514.2 | |||||||
Foreign currency translation | (0.7 | ) | — | (0.7 | ) | ||||||||
Pension and OPEB liability adjustment | 26.7 | (11.6 | ) | 15.1 | |||||||||
Available-for-sale securities | (2.0 | ) | 0.7 | (1.3 | ) | ||||||||
Total comprehensive income | $ | 240.2 | $ | 287.1 | $ | 527.3 | |||||||
Year ended December 31, 2013 | |||||||||||||
Net income | $ | 266.1 | $ | (100.7 | ) | $ | 165.4 | ||||||
Foreign currency translation | (5.0 | ) | — | (5.0 | ) | ||||||||
Pension and OPEB liability adjustment | 46.4 | (17.4 | ) | 29 | |||||||||
Available-for-sale securities | (1.9 | ) | 0.8 | (1.1 | ) | ||||||||
Total comprehensive income | $ | 305.6 | $ | (117.3 | ) | $ | 188.3 | ||||||
The following table shows the location in the Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions): | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
AOCL Components | Amount | Affected line item in the consolidated | |||||||||||
reclassified from | statements of comprehensive income | ||||||||||||
AOCL | |||||||||||||
Amortization of defined benefit pension items: | |||||||||||||
Prior service cost | $ | 2.4 | Cost of sales | ||||||||||
0.9 | Selling, general and | ||||||||||||
administrative | |||||||||||||
Actuarial loss | (0.3 | ) | Selling, general and | ||||||||||
administrative | |||||||||||||
(0.3 | ) | Engineering – research and | |||||||||||
development | |||||||||||||
Total reclassifications, before tax | 2.7 | Income before income taxes | |||||||||||
Income tax expense | (1.1 | ) | Tax expense | ||||||||||
Total reclassifications | $ | 1.6 | Net of tax | ||||||||||
Prior service cost and actuarial loss are 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 | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 17. | COMMITMENTS AND CONTINGENCIES | ||||
Operating Leases | |||||
The Company leases certain facilities under various operating leases. Rent expense under the non-cancelable operating leases was $5.7 million, $5.5 million, and $6.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. Certain leases contain renewal options. | |||||
As of December 31, 2013, future payments under non-cancelable operating leases are as follows over each of the next five years and thereafter (dollars in millions): | |||||
2014 | $ | 4.6 | |||
2015 | 2.6 | ||||
2016 | 1.1 | ||||
2017 | 0.5 | ||||
2018 | 0.4 | ||||
Thereafter | 1.6 | ||||
Total | $ | 10.8 | |||
Claims, Disputes, and Litigation | |||||
The Company is party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business. These proceedings primarily 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 consolidated 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. |
CONCENTRATION_OF_RISK
CONCENTRATION OF RISK | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONCENTRATION OF RISK | ' | ||||||||||||
NOTE 18. | CONCENTRATION OF RISK | ||||||||||||
As of December 31, 2013 and 2012, the Company employed approximately 2,700 and 2,800 employees, respectively with 90% of those employees in the U.S. Approximately 60% of the Company’s U.S. employees were represented by unions and subject to a collective bargaining agreement as of December 31, 2013 and 2012. In addition, many of the hourly employees outside the U.S. are represented by various unions. The Company is currently operating under a collective bargaining agreement with the UAW Local 933 that expires in November 2017. | |||||||||||||
Three customers accounted for greater than 10% of net sales within the last three years presented. | |||||||||||||
Year ended December 31, | |||||||||||||
% of net sales | 2013 | 2012 | 2011 | ||||||||||
Daimler AG | 17 | % | 13 | % | 10 | % | |||||||
Navistar, Inc. | 10 | % | 11 | % | 12 | % | |||||||
Oshkosh Corporation | 8 | % | 11 | % | 8 | % | |||||||
No other customers accounted for more than 10% of net sales of the Company during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
Three customers accounted for greater than 10% of outstanding accounts receivable within the last two years presented. | |||||||||||||
% of accounts receivable | As of | As of | |||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Daimler AG | 15 | % | 10 | % | |||||||||
AB Volvo. | 11 | % | 7 | % | |||||||||
Navistar, Inc. | 10 | % | 13 | % | |||||||||
No other customers accounted for more than 10% of the outstanding accounts receivable as of December 31, 2013 or December 31, 2012. | |||||||||||||
One supplier accounted for greater than 10% of materials purchased for the periods presented: | |||||||||||||
Year ended December 31, | |||||||||||||
% of material purchased | 2013 | 2012 | 2011 | ||||||||||
Linamar Corporation Inc. | 13 | % | 13 | % | 12 | % | |||||||
No other supplier accounted for more than 10% of materials purchased during the years ended December 31, 2013, 2012 or 2011. |
CERTAIN_RELATIONSHIPS_AND_RELA
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Dec. 31, 2013 | ||
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | ' | |
NOTE 19. | CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | |
On August 7, 2007, the Sponsors entered into a services agreement with ATI, pursuant to which ATI paid the Sponsors an annual fee of $3.0 million (shared equally by the Sponsors) for certain advisory, consulting and other services to be performed by the Sponsors, exclusive of the reimbursements for certain out-of-pocket expenses incurred in connection with the performance of such services, and additional reasonable compensation for other services provided by the Sponsors from time to time, including consulting and other services with respect to acquisitions and divestitures or sales of equity or debt instruments. In March 2012, the Company and the Sponsors agreed to terminate the services agreement. The Company agreed to make a one-time termination payment of $16.0 million, representing the present value of payments over the estimated term of the services agreement. | ||
Senior Notes Held by Executive Officers | ||
As of December 31, 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 an underwritten secondary public offering of 23,805,000 shares of its common stock held by investment funds affiliated with the Sponsors at a public offering price, less underwriting discounts and commissions, of $21.175 per share. 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
NOTE 20. | EARNINGS PER SHARE | ||||||||||||
The Company presents both basic and diluted earnings per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is 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): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 165.4 | $ | 514.2 | $ | 103 | |||||||
Weighted average shares of common stock outstanding | 184.5 | 182 | 181.4 | ||||||||||
Dilutive effect stock-based awards | 3.4 | 4.2 | 1.9 | ||||||||||
Diluted weighted average shares of common stock outstanding | 187.9 | 186.2 | 183.3 | ||||||||||
Basic earnings per share attributable to common stockholders | $ | 0.9 | $ | 2.83 | $ | 0.57 | |||||||
Diluted earnings per share attributable to common stockholders | $ | 0.88 | $ | 2.76 | $ | 0.56 | |||||||
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
GEOGRAPHIC INFORMATION | ' | ||||||||||||
NOTE 21. | GEOGRAPHIC INFORMATION | ||||||||||||
The Company had the following net sales by country as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 1,354.30 | $ | 1,509.60 | $ | 1,532.70 | |||||||
China | 141 | 136.4 | 93.3 | ||||||||||
Canada | 88.6 | 123 | 165.6 | ||||||||||
Germany | 53.9 | 39.1 | 42.9 | ||||||||||
United Kingdom | 42.5 | 74.1 | 58.2 | ||||||||||
Japan | 37 | 52 | 46.5 | ||||||||||
Other | 209.5 | 207.6 | 223.6 | ||||||||||
Total | $ | 1,926.80 | $ | 2,141.80 | $ | 2,162.80 | |||||||
The Company had net long-lived assets by country as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 478.7 | $ | 493.6 | $ | 492.5 | |||||||
India | 59.9 | 76.8 | 62.1 | ||||||||||
Hungary | 18.1 | 18.4 | 18.3 | ||||||||||
Others | 6.7 | 7.4 | 8.9 | ||||||||||
Total | $ | 563.4 | $ | 596.2 | $ | 581.8 | |||||||
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||||||||
NOTE 22. | QUARTERLY FINANCIAL INFORMATION | ||||||||||||||||
The following is a summary of the unaudited quarterly results of operations. The Company believes that all adjustments considered necessary for a fair presentation in accordance with GAAP have been included (unaudited, in millions, except per share data). | |||||||||||||||||
Quarter ended, | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 457.4 | $ | 512.1 | $ | 466.3 | $ | 491 | |||||||||
Gross profit | 198.3 | 226.1 | 206.1 | 211.4 | |||||||||||||
Operating income | 81.4 | 117.7 | 111.2 | 99.6 | |||||||||||||
Income before income taxes | 44.4 | 81.8 | 72.4 | 67.5 | |||||||||||||
Net income | 27.5 | 50.5 | 44.5 | 42.9 | |||||||||||||
Basic earnings per share | $ | 0.15 | $ | 0.27 | $ | 0.24 | $ | 0.24 | |||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.26 | $ | 0.24 | $ | 0.23 | |||||||||
2012 | |||||||||||||||||
Net sales | $ | 601.9 | $ | 559.4 | $ | 493.5 | $ | 487 | |||||||||
Gross profit | 283.8 | 251.9 | 224.4 | 194.2 | |||||||||||||
Operating income | 154.7 | 119.6 | 91.8 | 54.1 | |||||||||||||
Income before income taxes | 83.2 | 62.7 | 49.2 | 21.1 | |||||||||||||
Net income | 58 | 412.8 | 32.2 | 11.2 | |||||||||||||
Basic earnings per share | $ | 0.32 | $ | 2.28 | $ | 0.18 | $ | 0.06 | |||||||||
Diluted earnings per share | $ | 0.31 | $ | 2.21 | $ | 0.17 | $ | 0.06 | |||||||||
The Company’s 2012 quarterly results were affected by certain nonrecurring items. In the quarter ended June 30, 2012, the Company recorded an income tax benefit of $384.8 million related to the release of the Company’s valuation allowance against its deferred tax asset. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
SUBSEQUENT EVENTS | ' | |
NOTE 23. | SUBSEQUENT EVENTS | |
On December 31, 2013, the Company entered into Amendment No. 9 to the Credit Agreement, dated as of August 7, 2007 which allowed the Company to add up to an additional $90.0 million to the revolving portion of its Senior Secured Credit Facility prior to February 15, 2014. As of February 15, 2014, the Company had $465.0 million available under the revolving portion of its Senior Secured Credit Facility. |
Schedule_IParent_Company_only_
Schedule I-Parent Company only Balance Sheets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule I-Parent Company only Balance Sheets | ' | ||||||||||||
Allison Transmission Holdings, Inc. | |||||||||||||
Schedule I—Parent Company only Balance Sheets | |||||||||||||
(dollars in millions) | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
ASSETS | |||||||||||||
Current Assets: | |||||||||||||
Cash | $ | — | $ | — | |||||||||
Total Current Assets | — | — | |||||||||||
Investments in and advances to subsidiaries | 1,438.80 | 1,356.90 | |||||||||||
TOTAL ASSETS | $ | 1,438.80 | $ | 1,356.90 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current Liabilities: | |||||||||||||
Accounts payable | $ | — | $ | — | |||||||||
Total Current Liabilities | — | — | |||||||||||
Capital stock | 1.8 | 1.8 | |||||||||||
Additional paid-in-capital | 1,631.80 | 1,601.50 | |||||||||||
Treasury stock | — | (0.2 | ) | ||||||||||
Accumulated deficit | (173.8 | ) | (202.3 | ) | |||||||||
Accumulated other comprehensive loss, net of tax | (21.0 | ) | (43.9 | ) | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,438.80 | $ | 1,356.90 | |||||||||
The accompanying note is an integral part of the Parent Company only financial statements. | |||||||||||||
Allison Transmission Holdings, Inc. | |||||||||||||
Schedule I—Parent Company only Statements of Comprehensive Income | |||||||||||||
(dollars in millions) | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales | $ | — | $ | — | $ | — | |||||||
General and administrative fees | — | — | — | ||||||||||
Total operating income | — | — | — | ||||||||||
Other income: | |||||||||||||
Equity earnings of consolidated subsidiary | 165.4 | 514.2 | 103 | ||||||||||
Income before income taxes | 165.4 | 514.2 | 103 | ||||||||||
Income tax expense | — | — | — | ||||||||||
Net income | $ | 165.4 | $ | 514.2 | $ | 103 | |||||||
Comprehensive income | $ | 165.4 | $ | 514.2 | $ | 103 | |||||||
The accompanying note is an integral part of the Parent Company only financial statements. | |||||||||||||
Allison Transmission Holdings, Inc. | |||||||||||||
Schedule I—Parent Company only Statements of Cash Flows | |||||||||||||
(dollars in millions) | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 165.4 | $ | 514.2 | $ | 103 | |||||||
Deduct items included in net income not providing cash: | |||||||||||||
Equity in earnings in consolidated subsidiary | (165.4 | ) | (514.2 | ) | (103.0 | ) | |||||||
Net cash provided by operating activities | — | — | — | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Investments in subsidiaries | (46.3 | ) | (29.0 | ) | — | ||||||||
Dividends | 77.1 | 32.8 | — | ||||||||||
Net cash provided by investing activities | 30.8 | 3.8 | — | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Capital contributions | 46.3 | 29 | — | ||||||||||
Dividends | (77.1 | ) | (32.8 | ) | — | ||||||||
Net cash used in financing activities | (30.8 | ) | (3.8 | ) | — | ||||||||
Net increase (decrease) during period | — | — | — | ||||||||||
Cash and cash equivalents at beginning of period | — | — | — | ||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | — | |||||||
The accompanying note is an integral part of the Parent Company only financial statements. | |||||||||||||
Allison Transmission Holdings, Inc. | |||||||||||||
Schedule I—Parent Company only Footnote | |||||||||||||
NOTE 1—BASIS OF PRESENTATION | |||||||||||||
Allison Transmission Holdings, Inc. (the “Parent Company”) is a holding company that conducts all of its business operations through its subsidiaries. There are restrictions on the Parent Company’s ability to obtain funds from its subsidiaries through dividends (refer to NOTE 7 of the Consolidated Financial Statements). The entire amount of our consolidated net assets was subject to restrictions on payment of dividends at the end of December 31, 2013 and 2012. Accordingly, these financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. These parent-only financial statements should be read in conjunction with Allison Transmission Holdings, Inc.’s audited Consolidated Financial Statements included elsewhere herein. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Basis of Presentation and Principles of Consolidation | ' | ||
Basis of Presentation and Principles of Consolidation | |||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair presentation of the results for the periods presented. The consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. | |||
These consolidated financial statements present the results of operations, financial position, cash flows and statements of equity. Certain immaterial reclassifications have been made in the consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications have no impact on previously reported net income, total stockholders’ equity or cash flows. | |||
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. These 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 rate and other assumptions for pension and other postretirement benefit expense, income taxes, lease classification, 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. | |||
Segment Reporting | ' | ||
Segment Reporting | |||
In accordance with the Financial Accounting Standards Board (“FASB”) authoritative accounting guidance on segment reporting, the Company has one operating segment and reportable segment. The Company is in one line of business, which is in the manufacturing and distribution of fully-automatic transmissions. | |||
Government Grants | ' | ||
Government Grants | |||
The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the funds will be received. When the government grants relate to reimbursement of costs, the grant income is recognized in Other expense, net in the Consolidated Statements of Comprehensive Income. When the government grants relate to a reimbursement of capital expenditures, the grants are recognized as a reduction of the basis of the assets in the Consolidated Balance Sheets. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. Under the Company’s cash management system, checks issued but not presented to banks may result in book overdraft balances for accounting purposes and are classified within Accounts payable in the Consolidated Balance Sheets. The change in book overdrafts is reported as a component of operating cash flows for Accounts payable. | |||
Marketable Securities | ' | ||
Marketable Securities | |||
The Company determines the appropriate classification of all marketable securities as “held-to-maturity,” “available-for-sale” or “trading” at the time of purchase, and re-evaluates such classifications as of each balance sheet date. As of December 31, 2013, the Company’s marketable securities are classified as either available-for-sale or trading. | |||
Available-for-sale securities are carried at fair value with the unrealized gain or loss reported in Accumulated other comprehensive loss (“AOCL”). Unrealized losses considered to be “other-than-temporary” are recognized in income. Trading securities are carried at fair value with the unrealized gain or loss recognized in Other expense, net. The fair value of the Company’s investment securities is determined by currently available market prices. See NOTE 6 for more details. | |||
Allowance for Doubtful Accounts | ' | ||
Allowance for Doubtful Accounts | |||
The allowance for doubtful trade accounts receivable reflects estimated losses to be incurred in the collection of the receivables. Estimated losses are based on historical collection experience as well as a review by management of the current status of all receivables. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||
Inventories | ' | ||
Inventories | |||
Inventories are stated at the lower of cost or market. The Company determines cost using the first-in, first-out method. The Company analyzes inventory on a quarterly basis to determine whether it is excess or obsolete inventory. Any decline in carrying value of estimated excess or obsolete inventory is recorded as a reduction of inventory and as an expense included in Cost of sales in the period it is identified. | |||
Property, Plant and Equipment | ' | ||
Property, Plant and Equipment | |||
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation expense is recorded using the straight-line method over the following estimated lives: | |||
Range in Years | |||
Land improvements | 5 – 30 | ||
Buildings and building improvements | 10 – 40 | ||
Machinery and equipment | 2 – 20 | ||
Software | 2 – 5 | ||
Special tools | 2 – 10 | ||
Software represents the costs of software developed or obtained for internal use. Software costs are amortized on a straight-line basis over their estimated useful lives. Software assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. Upgrades and enhancements are capitalized if they result in added functionality, which enables the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion and business process reengineering costs are expensed in the period in which they are incurred. | |||
Special tooling represents the costs to design and develop tools, dies, jigs and other items owned by the Company and used in the manufacture of components by suppliers under long-term supply agreements. Special tooling is depreciated over the tool’s expected life. Special tooling used in the development of new technology is expensed as incurred. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred. | |||
Impairment of Long-Lived Assets | ' | ||
Impairment of Long-Lived Assets | |||
The carrying value of long-lived assets is evaluated whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Events or circumstances that would result in an impairment review primarily include a significant change in the use of an asset, or the planned sale or disposal of an asset. The asset would be considered impaired when there is no future use planned for the asset or the future net undiscounted cash flows generated by the asset or asset group are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value exceeds fair value. | |||
Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in an impairment charge. | |||
Goodwill and Other Intangible Assets | ' | ||
Goodwill and Other Intangible Assets | |||
Goodwill represents the excess of purchase price paid over the fair value of net assets acquired. In accordance with the FASB’s authoritative accounting guidance on goodwill, the Company does not amortize goodwill but rather evaluate it for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. There is one reporting unit which is the same as the Company’s one operating and reportable segment. The Company has elected to perform its annual impairment test on October 31 of every year. A multi-step impairment test is performed on goodwill. In Step 0, the Company has the option to evaluate various qualitative factors to determine the likelihood of impairment. If determined that the fair value is more likely than not less than the carrying value, then the Company is required to perform Step 1. If the Company does not elect to perform Step 0, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of its reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform Step 2 of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. | |||
After performing a quantitative analysis in 2013, the Company’s annual goodwill impairment test indicated that the fair value of the reporting unit exceeded its carrying value by approximately 90%, indicating no impairment. The fair value was determined utilizing a discounted cash flow model which includes key assumptions, such as net sales growth derived from market information, industry reports, marketing programs and future new product introductions; operating margin improvements derived from cost reduction programs and fixed cost leverage driven by higher sales volumes; and a risk-adjusted discount rate. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in the introduction of new products, lower gross margins as a result of market conditions or failure to obtain forecasted cost reductions, or a higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates were reasonable and incorporate assumptions that similar market participants would use in their estimates of fair value. | |||
Other intangible assets have both indefinite and finite useful lives. Intangible assets with indefinite useful lives, such as the Company’s trade name, are not amortized but are tested annually for impairment. The Company’s 2013 annual trade name impairment test indicated that the fair value of the trade name exceeded its carrying value by approximately 8%, indicating no impairment. The fair value was determined utilizing an income approach by which the relief from royalty method was applied. Key assumptions incorporated into the analysis were net sales growth derived from market information, industry reports, marketing programs and new product introductions; and risk-adjusted discount rates. Events or circumstances that could unfavorably impact the key assumptions include lower net sales driven by market conditions, the Company’s inability to execute on marketing programs and/or delay in introduction of new products, and higher discount rate as a result of market conditions. While unpredictable and inherently uncertain, management believes the forecast estimates are reasonable and incorporate those assumptions that similar market participants would use in their estimates of fair value. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment when circumstances change that would create a triggering event. Customer relationships are amortized over the life in which expected benefits are to be consumed. The other remaining finite useful life intangibles are amortized on a straight-line basis over their useful lives. The Company evaluates the remaining useful life of the other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining useful life. Assumptions and estimates about future values and remaining useful lives of the Company’s intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company’s business strategy and internal forecasts. Although management believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact the Company’s reported financial results. | |||
NOTE 5 provides further information on Goodwill and Other intangible assets. | |||
Deferred Financing Costs | ' | ||
Deferred Financing Costs | |||
Deferred financing costs are stated at cost as a component of other non-current assets and amortized over the life of the related debt using the effective interest method. Amortization of deferred financing costs is recorded as part of interest expense and totaled $10.9 million, $14.5 million and $12.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Financial Instruments | ' | ||
Financial Instruments | |||
The Company’s cash equivalents are invested in U.S. Government backed securities and recorded at fair value in the Consolidated Balance Sheets. The carrying values of accounts receivable and accounts payable approximate fair value due to their short-term nature. The Company’s financial derivative instruments, including interest rate swaps and foreign currency and commodity forward contracts are carried at fair value on the Consolidated Balance Sheets. Refer to NOTE 6 for more detail. The Company’s long-term debt obligations are carried at historical amounts with the Company providing fair value disclosure in NOTE 7. | |||
Insurable Liabilities | ' | ||
Insurable Liabilities | |||
The Company records liabilities for its medical, workers’ compensation, long-term disability, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated based upon historical claims experience. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
The Company records sales when title has transferred to the customer, there is evidence of an agreement, the sales price is fixed or determinable, delivery has occurred or services have been rendered, and collectability is reasonably assured. The Company sells Extended Transmission Coverage (“ETC”) for which sales are deferred. ETC sales are recognized ratably over the period of the ETC, which typically ranges from three to five years after initial sale. Distributor and customer sales incentives, consisting of allowances and other rebates, are estimated at the time of sale based upon the Company’s history and experience and are recorded as a reduction to Net sales. Incentive programs are generally product specific or region specific. Some factors used in estimating the cost of incentives include the number of transmissions that will be affected by the incentive program and rate of acceptance of any incentive program. If the actual number of affected transmissions differs from this estimate, or if a different mix of incentives is actually paid, the impact on Net sales would be recorded in the period that the change was identified. Consideration given to commercial customers recorded as a reduction of Net sales in the Consolidated Statements of Comprehensive Income included $65.2 million, $59.9 million and $59.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||
Sales under U.S. government production contracts are recorded when the product is accepted, title has transferred to the U.S. government, the sales price is fixed or determinable, and delivery has occurred. Deferred revenue arises from cash received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Under the terms of the U.S. government contracts, there are certain price reduction clauses and provisions for potential price reductions which are estimated at the time of sale based upon the Company’s history and experience and are recorded as a reduction to Net sales. Potential reductions may be attributed to a change in projected sales volumes or plant efficiencies which impact overall costs. As of December 31, 2013 and 2012, the Company had $49.6 million and $46.9 million recorded in the price reduction reserve account, respectively. | |||
Due to a request from the U.S. government, the Company billed, but did not ship certain tracked transmissions during the second half of 2013. Based on the lack of a fixed delivery date from the U.S. government, the Company did not recognize revenue as of December 31, 2013 for these transmissions. Revenue will be recognized once delivery has occurred. See NOTE 10 for additional details. | |||
The Company classifies shipping and handling billed to customers in Net sales and shipping and handling costs in Cost of sales, in accordance with authoritative accounting guidance. | |||
The Company contracts with various third parties to provide engineering services. These services are recorded as Net sales in accordance with the terms of the contract. The saleable engineering recorded was $12.4 million, $7.8 million and $7.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. The associated costs are recorded in Cost of sales. | |||
Warranty | ' | ||
Warranty | |||
Provisions for estimated expenses related to product warranties are made at the time products are sold. Warranty claims arise when a transmission fails while in service during the relevant warranty period. The warranty reserve is provided for by adjusting Selling, general and administrative expenses by an amount based on the Company’s current and historical warranty claims paid and associated repair costs. These estimates are established using historical information including the nature, frequency, and average cost of warranty claims and are adjusted as actual information becomes available. Costs associated with ETC programs are recorded as incurred during the extended period. From time to time, the Company may initiate a specific field action program. As a result of the uncertainty surrounding the nature and frequency of specific field action programs, the liability for such programs is recorded when the Company commits to an action. The Company reviews and assesses the liability for these programs on a quarterly basis. The Company also assesses its ability to recover certain costs from its suppliers and records a receivable from the supplier when it believes a recovery is probable. | |||
Research and Development | ' | ||
Research and Development | |||
The Company incurs costs in connection with research and development programs that are expected to contribute to future earnings. Such costs are charged to Engineering — research and development as incurred. | |||
Foreign Currency Translation | ' | ||
Foreign Currency Translation | |||
Most of the subsidiaries outside the United States prepare financial statements in currencies other than the U.S. dollar. The functional currency for all these subsidiaries is the local currency, except for the Company’s Hong Kong and Middle East subsidiaries which currently use the U.S. dollar as the functional currency, and balances are translated at period-end exchange rates for assets and liabilities and monthly weighted-average exchange rates for revenues and expenses. The translation gains (losses) are stated as a component of AOCL as disclosed in NOTE 16. | |||
Derivative Instruments | ' | ||
Derivative Instruments | |||
In the normal course of business, the Company is exposed to fluctuations in interest rates, foreign currency exchange rates, and commodity prices. The risk is managed through the use of financial derivative instruments including interest rate swaps and commodity and foreign currency forward contracts. Despite the fact that the Company either has not elected or does not qualify for hedge accounting treatment on all of its derivative instruments, the contracts 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. NOTE 8 provides further information on the accounting treatment of the Company’s derivative instruments. | |||
Income Taxes | ' | ||
Income Taxes | |||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The future tax benefits associated with operating loss and tax credit carryforwards are recognized as deferred tax assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||
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 the FASB’s authoritative accounting guidance on income taxes. Appropriate consideration is given to all positive and negative evidence related to that realization. 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 weight given to these considerations depends upon the degree to which they can be objectively verified. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
The Company maintains a stock-based compensation plan which allows employees (including executive officers), consultants and directors to receive equity awards. The Company has adopted the FASB’s authoritative accounting guidance on share-based payments and recognizes the fair value of the awards as compensation expense over the vesting period. The accounting guidance also requires that forfeitures be estimated over the vesting period of an award instead of being recognized as a reduction of compensation expense when the forfeiture actually occurs. | |||
Pension and Post-retirement Benefit Plans | ' | ||
Pension and Post-retirement Benefit Plans | |||
For pension and other post-retirement benefits (“OPEB”) plans in which employees participate, costs are determined within the FASB’s authoritative accounting guidance set forth in employers’ defined benefit pensions including accounting for settlements and curtailments of defined benefit pension plans, termination of benefits and accounting for post-retirement benefits other than pensions. In accordance with the authoritative accounting guidance, the Company recognizes the funded status of its defined benefit pension plans and OPEB plan in its Consolidated Balance Sheets with a corresponding adjustment to AOCL, net of tax. | |||
Post-retirement benefit costs consist of service cost, interest cost on accrued obligations and the expected return on assets (calculated using a smoothed market value of assets). Any difference between actual and expected returns on assets during a year and actuarial gains and losses on liabilities together with any prior service costs are charged (or credited) to income over the average remaining service lives of employees. | |||
The benefit cost components shown in the Consolidated Statements of Comprehensive Income are based upon various actuarial assumptions and methodologies as prescribed by authoritative accounting guidance. These assumptions include discount rates, expected return on plan assets, health care cost trend rates, inflation, rate of compensation increases, population demographics, mortality rates and other factors. The Company reviews all actuarial assumptions on an annual basis. | |||
Recently Adopted Accounting Pronouncements | ' | ||
Recently Adopted Accounting Pronouncements | |||
In July 2013, the 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 a material 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 consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the 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 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 consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Property And Equipment Estimated Useful Lives | ' | ||
Depreciation expense is recorded using the straight-line method over the following estimated lives: | |||
Range in Years | |||
Land improvements | 5 – 30 | ||
Buildings and building improvements | 10 – 40 | ||
Machinery and equipment | 2 – 20 | ||
Software | 2 – 5 | ||
Special tools | 2 – 10 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Inventories | ' | ||||||||
Inventories consisted of the following components (dollars in millions): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Purchased parts and raw materials | $ | 79.7 | $ | 80.6 | |||||
Work in progress | 5.7 | 7.5 | |||||||
Service parts | 45.8 | 44.5 | |||||||
Finished goods | 29.2 | 24.5 | |||||||
Total inventories | $ | 160.4 | $ | 157.1 | |||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant and Equipment Cost and Accumulated Depreciation | ' | ||||||||
The cost and accumulated depreciation of property, plant and equipment are as follows (dollars in millions): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Land and land improvements | $ | 20.3 | $ | 16.2 | |||||
Buildings and building improvements | 271.4 | 263.3 | |||||||
Machinery and equipment | 567.7 | 543.7 | |||||||
Software | 112.9 | 102.9 | |||||||
Special tools | 143.4 | 129.6 | |||||||
Construction in progress | 48.6 | 56 | |||||||
Total property, plant and equipment | 1,164.30 | 1,111.70 | |||||||
Accumulated depreciation | (600.9 | ) | (515.5 | ) | |||||
Property, plant and equipment, net | $ | 563.4 | $ | 596.2 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Other Intangible Assets | ' | ||||||||||||||||||||||||
The following presents a summary of other intangible assets (dollars in millions): | |||||||||||||||||||||||||
December 31, 2013 | December 31, 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 | (24.4 | ) | 37.9 | 62.3 | (20.8 | ) | 41.5 | |||||||||||||||||
Customer relationships - commercial | 831.8 | (374.9 | ) | 456.9 | 831.8 | (321.2 | ) | 510.6 | |||||||||||||||||
Proprietary technology | 476.3 | (243.9 | ) | 232.4 | 476.3 | (205.8 | ) | 270.5 | |||||||||||||||||
Non-compete agreement | 17.3 | (11.1 | ) | 6.2 | 17.3 | (9.4 | ) | 7.9 | |||||||||||||||||
Patented technology - defense | 28.2 | (21.2 | ) | 7 | 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 | $ | (940.2 | ) | $ | 1,610.80 | $ | 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 | $ | 275.6 | |||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 December 31 (dollars in millions): | |||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | TOTAL | |||||||||||||||||||||||
Markets for Identical | Observable Inputs (Level 2) | ||||||||||||||||||||||||
Assets (Level 1) | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Cash and cash equivalents | $ | 184.7 | $ | 80.2 | $ | — | $ | — | $ | 184.7 | $ | 80.2 | |||||||||||||
Available-for-sale securities | 8.2 | 6.1 | — | — | 8.2 | 6.1 | |||||||||||||||||||
Rabbi trust assets | 1.3 | 0.2 | — | — | 1.3 | 0.2 | |||||||||||||||||||
Deferred compensation obligation | (1.3 | ) | (0.2 | ) | — | — | (1.3 | ) | (0.2 | ) | |||||||||||||||
Derivative assets | — | — | 1.6 | 0.2 | 1.6 | 0.2 | |||||||||||||||||||
Derivative liabilities | — | — | (21.4 | ) | (52.9 | ) | (21.4 | ) | (52.9 | ) | |||||||||||||||
Total | $ | 192.9 | $ | 86.3 | $ | (19.8 | ) | $ | (52.7 | ) | $ | 173.1 | $ | 33.6 | |||||||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Long-Term Debt and Maturities | ' | ||||||||
Long-term debt and maturities are as follows (dollars in millions): | |||||||||
December 31, | 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 | 423.5 | 793.1 | |||||||
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | 1,783.50 | 1,145.00 | |||||||
Senior Cash Pay Notes, fixed 7.125%, due 2019 | 471.3 | 471.3 | |||||||
Total long-term debt | 2,678.30 | 2,820.80 | |||||||
Less: current maturities of long-term debt | 17.9 | 19.5 | |||||||
Total long-term debt less current portion | $ | 2,660.40 | $ | 2,801.30 | |||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Summary of Company's Interest Rate Derivatives | ' | ||||||||||||||||||||
A summary of the Company’s interest rate derivatives as of December 31, 2013 and December 31, 2012 follows (dollars in millions): | |||||||||||||||||||||
December 31, 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 | (7.2 | ) | 350 | (19.0 | ) | |||||||||||||||
Interest Rate Swap I, due 2014 | 350 | (7.2 | ) | 350 | (19.2 | ) | |||||||||||||||
Interest Rate Swap J, due 2014 | 125 | (2.0 | ) | 125 | (3.3 | ) | |||||||||||||||
Interest Rate Swap K, due 2014 | 125 | (2.0 | ) | 125 | (3.4 | ) | |||||||||||||||
Interest Rate Swap L, due 2019 | 75 | (0.4 | ) | — | — | ||||||||||||||||
Interest Rate Swap M, due 2019 | 100 | (0.4 | ) | — | — | ||||||||||||||||
Interest Rate Swap N, due 2019 | 75 | (0.2 | ) | — | — | ||||||||||||||||
Interest Rate Swap O, due 2019 | 75 | 0.2 | — | — | |||||||||||||||||
Interest Rate Swap P, due 2019 | 75 | 0.4 | — | — | |||||||||||||||||
Interest Rate Swap Q, due 2019 | 50 | 0.4 | — | — | |||||||||||||||||
Interest Rate Swap R, due 2019 | 50 | 0.4 | — | — | |||||||||||||||||
$ | 1,450.00 | $ | (18.0 | ) | $ | 1,375.00 | $ | (52.3 | ) | ||||||||||||
Derivative Instruments and their Impact on the Financial Condition | ' | ||||||||||||||||||||
The following tabular disclosures further describe the Company’s derivative instruments and their impact on the financial condition of the Company (dollars in millions): | |||||||||||||||||||||
December 31, 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 | $ | (0.3 | ) | Other current | $ | (0.2 | ) | |||||||||||||
liabilities | liabilities | ||||||||||||||||||||
Commodity contracts | Other current and | 0.1 | Other current and | 0.2 | |||||||||||||||||
non-current assets | non-current assets | ||||||||||||||||||||
Other current and | (1.7 | ) | Other current and | (0.4 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Interest rate contracts | Other non- | 1.5 | |||||||||||||||||||
current assets | |||||||||||||||||||||
Other current and | (19.5 | ) | Other current and | (52.3 | ) | ||||||||||||||||
non-current liabilities | non-current liabilities | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | (19.9 | ) | $ | (52.7 | ) | |||||||||||||||
Derivative Instruments and their Impact on the Results of Operations | ' | ||||||||||||||||||||
The impact on the Company’s Consolidated Statements of Comprehensive Income related to foreign currency and commodity contracts can be found in NOTE 11, and the following tabular disclosure describes the location and impact on the Company’s results of operations related to unrealized gain (loss) on interest rate derivatives (dollars in millions): | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Location of impact on results of operations | |||||||||||||||||||||
Interest expense | $ | 34.3 | $ | 25.5 | $ | (7.0 | ) | ||||||||||||||
Foreign Currency Forward Contract | ' | ||||||||||||||||||||
Notional Amount and Fair Value of Derivatives | ' | ||||||||||||||||||||
The following table summarizes the outstanding foreign currency forward contracts as of December 31, 2013 and 2012 (amounts in millions): | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Japanese Yen (JPY) | ¥ | 600 | $ | (0.3 | ) | ¥ | 675 | $ | (0.2 | ) | |||||||||||
$ | (0.3 | ) | $ | (0.2 | ) | ||||||||||||||||
Commodity contracts | ' | ||||||||||||||||||||
Notional Amount and Fair Value of Derivatives | ' | ||||||||||||||||||||
The following table summarizes the outstanding commodity swaps as of December 31, 2013 and December 31, 2012 (dollars in millions): | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Notional | Quantity | Fair Value | Notional | Quantity | Fair Value | ||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Aluminum | $ | 23.8 | 11,875 metric tons | $ | (1.6 | ) | $ | 19.4 | 9,050 metric tons | $ | (0.1 | ) | |||||||||
Steel | N/A | N/A | — | $ | 0.2 | 340 metric tons | (0.1 | ) | |||||||||||||
Natural Gas | $ | 0.3 | 90,000 MMBtu | 0 | $ | 0.3 | 80,000 MMBtu | 0 | |||||||||||||
$ | (1.6 | ) | $ | (0.2 | ) | ||||||||||||||||
PRODUCT_WARRANTY_LIABILITIES_T
PRODUCT WARRANTY LIABILITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Product Warranty Liability Activities | ' | ||||||||||||
Product warranty liability activities consist of the following (dollars in millions): | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 109.7 | $ | 115.4 | $ | 128.5 | |||||||
Payments | (38.7 | ) | (47.3 | ) | (35.5 | ) | |||||||
Increase in liability (warranties issued during period) | 28.4 | 25.5 | 26.5 | ||||||||||
Net adjustments to liability | (9.6 | ) | 15.3 | (5.1 | ) | ||||||||
Accretion (for Predecessor liabilities) | 0.7 | 0.8 | 1 | ||||||||||
Ending balance | $ | 90.5 | $ | 109.7 | $ | 115.4 | |||||||
DEFERRED_REVENUE_Tables
DEFERRED REVENUE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Deferred Revenue for Extended Transmission Coverage Activity | ' | ||||||||||||
Deferred revenue for ETC activity (dollars in millions): | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 63.5 | $ | 60.5 | $ | 56.2 | |||||||
Increases | 21.1 | 22.9 | 19.6 | ||||||||||
Revenue earned | (21.0 | ) | (19.9 | ) | (15.3 | ) | |||||||
Ending balance | $ | 63.6 | $ | 63.5 | $ | 60.5 | |||||||
OTHER_EXPENSE_NET_Tables
OTHER EXPENSE, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Computation of Other Expense, Net | ' | ||||||||||||
Other expense, net consists of the following (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Grant Program income | $ | 5.2 | $ | 11.5 | $ | 15.6 | |||||||
Impairment loss on investments in technology-related initiatives | (5.0 | ) | (14.4 | ) | — | ||||||||
Realized (loss) gain on derivative contracts (see NOTE 8) | (2.8 | ) | (1.3 | ) | 5.2 | ||||||||
Loss on foreign exchange | (2.4 | ) | (2.6 | ) | (6.7 | ) | |||||||
Loss on intercompany foreign exchange | (2.3 | ) | — | — | |||||||||
Public offering fees and expenses | (1.6 | ) | (6.1 | ) | — | ||||||||
Unrealized (loss) gain on derivative contracts (see NOTE 8) | (1.5 | ) | 0.9 | (6.8 | ) | ||||||||
Loss on repayments and redemptions of long-term debt (see NOTE 7) | (0.8 | ) | (22.1 | ) | (16.0 | ) | |||||||
Termination of Sponsor services agreement (see NOTE 19) | — | (16.0 | ) | — | |||||||||
Loss on re-measurement of employee benefit plans (see NOTE 13) | — | (2.3 | ) | — | |||||||||
Vendor settlement | — | — | 3.7 | ||||||||||
Gain on sale of land | — | — | 0.7 | ||||||||||
Other | 0.3 | (0.4 | ) | 0.1 | |||||||||
Total | $ | (10.9 | ) | $ | (52.8 | ) | $ | (4.2 | ) | ||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Other Current Liabilities | ' | ||||||||
Other current liabilities consist of the following (dollars in millions): | |||||||||
As of | As of | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and related costs | $ | 37.6 | $ | 47.5 | |||||
Sales allowances | 26.9 | 27 | |||||||
Derivative liabilities | 20.2 | 34.6 | |||||||
Accrued interest payable | 11.2 | 14.2 | |||||||
Defense price reduction reserve | 26.8 | 12 | |||||||
Taxes payable | 8.6 | 6.9 | |||||||
Vendor buyback obligation | 11.8 | 13.9 | |||||||
Other accruals | 9.2 | 11.3 | |||||||
Total | $ | 152.3 | $ | 167.4 | |||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Net Periodic Benefit Costs | ' | ||||||||||||||||||||||||
Information about the net periodic benefit cost and other changes recognized in Accumulated Other Comprehensive Loss for the pension and post-retirement benefit plans is as follows (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Service cost | $ | 16.3 | $ | 15.2 | $ | 14.7 | $ | 3.3 | $ | 3.9 | $ | 3.7 | |||||||||||||
Interest cost | 4 | 4.1 | 3.9 | 5.8 | 7.2 | 7.1 | |||||||||||||||||||
Expected return on assets | (6.7 | ) | (5.9 | ) | (4.2 | ) | — | — | — | ||||||||||||||||
Prior service cost | 0.1 | 0.1 | 0.1 | (3.6 | ) | — | — | ||||||||||||||||||
Loss | 0.7 | 1.2 | 1 | — | — | — | |||||||||||||||||||
Settlement loss | — | 2.3 | — | — | — | — | |||||||||||||||||||
Net Periodic Benefit Cost | $ | 14.4 | $ | 17 | $ | 15.5 | $ | 5.5 | $ | 11.1 | $ | 10.8 | |||||||||||||
Other Changes Recognized in Other Comprehensive Loss Income | ' | ||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Other changes recognized in other comprehensive (income) loss: | |||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (0.1 | ) | $ | — | $ | (28.9 | ) | $ | — | |||||||||||
Net (gain) loss | (18.4 | ) | (2.1 | ) | 7.7 | (30.7 | ) | 3.8 | 18.9 | ||||||||||||||||
Amortizations | (0.8 | ) | (3.6 | ) | (1.1 | ) | 3.6 | — | — | ||||||||||||||||
Total recognized – other comprehensive (income) loss | $ | (19.2 | ) | $ | (5.7 | ) | $ | 6.5 | $ | (27.1 | ) | $ | (25.1 | ) | $ | 18.9 | |||||||||
Health Care Costs Trends | ' | ||||||||||||||||||||||||
As health care costs trends have a significant effect on the amounts reported, the following effects of an increase and decrease of one-percentage-point would have the following effects in the year ended December 31, 2013 (dollars in millions): | |||||||||||||||||||||||||
1% Increase | 1% Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 2.1 | $ | (1.6 | ) | ||||||||||||||||||||
Effect on post-retirement benefit obligation | $ | 23 | $ | (18.2 | ) | ||||||||||||||||||||
Reconciliation of Changes in Net Benefit Obligations and Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
The following table provides a reconciliation of the changes in the net benefit obligations and fair value of plan assets for the years ended December 31, 2013, 2012 and 2011 (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Benefit Obligations: | |||||||||||||||||||||||||
Net benefit obligation at beginning of year | $ | 103.3 | $ | 99.7 | $ | 71.4 | $ | 142.6 | $ | 156.6 | $ | 127 | |||||||||||||
Service cost | 16.3 | 15.2 | 14.7 | 3.3 | 3.9 | 3.7 | |||||||||||||||||||
Interest cost | 4 | 4.1 | 4 | 5.8 | 7.2 | 7.1 | |||||||||||||||||||
Plan Amendments | — | — | — | — | (28.9 | ) | — | ||||||||||||||||||
Settlements | — | (18.8 | ) | — | — | — | — | ||||||||||||||||||
Benefits paid | (0.8 | ) | (0.4 | ) | (0.3 | ) | (0.3 | ) | — | — | |||||||||||||||
Actuarial (gain) loss | (16.9 | ) | 3.5 | 9.9 | (30.7 | ) | 3.8 | 18.8 | |||||||||||||||||
Net benefit obligation at end of year | $ | 105.9 | $ | 103.3 | $ | 99.7 | $ | 120.7 | $ | 142.6 | $ | 156.6 | |||||||||||||
Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 89.4 | $ | 83.4 | $ | 54.9 | $ | — | $ | — | $ | — | |||||||||||||
Actual return on plan assets | 8.2 | 11.5 | 6.6 | — | — | — | |||||||||||||||||||
Employer contributions | 11.8 | 13.7 | 22.2 | 0.3 | — | — | |||||||||||||||||||
Settlements | — | (18.8 | ) | — | — | — | — | ||||||||||||||||||
Benefits paid | (0.8 | ) | (0.4 | ) | (0.3 | ) | (0.3 | ) | — | — | |||||||||||||||
Fair value of plan assets at end of year | $ | 108.6 | $ | 89.4 | $ | 83.4 | $ | — | $ | — | $ | — | |||||||||||||
Net Funded Status | $ | 2.7 | $ | (13.9 | ) | $ | (16.3 | ) | $ | (120.7 | ) | $ | (142.6 | ) | $ | (156.6 | ) | ||||||||
Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
The fair values of plan assets for the Company’s pension plans as of December 31, 2013 and 2012 are as follows (dollars in millions): | |||||||||||||||||||||||||
Quoted Prices in Active Markets | |||||||||||||||||||||||||
for Identical Assets (Level 1) | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Asset Category | Fair Value | % | Fair Value | % | |||||||||||||||||||||
Cash and cash equivalents | $ | 3.6 | 3 | % | $ | 3.6 | 4 | % | |||||||||||||||||
Diversified equity securities | 51.5 | 48 | 41.1 | 46 | |||||||||||||||||||||
Diversified debt securities | 53.5 | 49 | 44.7 | 50 | |||||||||||||||||||||
Total | $ | 108.6 | 100 | % | $ | 89.4 | 100 | % | |||||||||||||||||
Schedule of Allocation of Plan Assets | ' | ||||||||||||||||||||||||
To achieve these objectives the Company has established the following targets: | |||||||||||||||||||||||||
Target | |||||||||||||||||||||||||
Asset Category | Hourly | Salary | |||||||||||||||||||||||
Cash and cash equivalents | 3 | % | 3 | % | |||||||||||||||||||||
Diversified equity securities | 42 | 51 | |||||||||||||||||||||||
Diversified debt securities | 55 | 46 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Amounts Recognized in Balance Sheet and in Accumulated Other Comprehensive Income AOCI | ' | ||||||||||||||||||||||||
The following table discloses the amounts recognized in the balance sheet and in AOCL at December 31, 2013 and 2012, on a pre-tax basis (dollars in millions): | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts Recognized in Balance Sheet: | |||||||||||||||||||||||||
Noncurrent assets | $ | 7.4 | $ | — | $ | — | $ | — | |||||||||||||||||
Current liabilities | — | — | (1.4 | ) | (1.2 | ) | |||||||||||||||||||
Noncurrent liabilities | (4.7 | ) | (13.9 | ) | (119.3 | ) | (141.4 | ) | |||||||||||||||||
Total asset (liability) | $ | 2.7 | $ | (13.9 | ) | $ | (120.7 | ) | $ | (142.6 | ) | ||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Prior service (cost) credit | $ | (0.2 | ) | $ | (0.3 | ) | $ | 25.4 | $ | 28.9 | |||||||||||||||
Actuarial gain (loss) | 2.7 | (16.4 | ) | 17.1 | (13.5 | ) | |||||||||||||||||||
Total | $ | 2.5 | $ | (16.7 | ) | $ | 42.5 | $ | 15.4 | ||||||||||||||||
Amounts in Accumulated Other Comprehensive Income AOCI Expected to be Amortized and Recognized as Component of Net Periodic Benefit Cost in Two Thousand Thirteen | ' | ||||||||||||||||||||||||
The amounts in AOCL expected to be amortized and recognized as a component of net periodic benefit cost in 2014 are as follows (dollars in millions): | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Pension | Post-retirement | ||||||||||||||||||||||||
Plans | Benefits | ||||||||||||||||||||||||
Prior service (cost) credit | $ | (0.1 | ) | $ | 3.6 | ||||||||||||||||||||
Actuarial loss | — | 0.8 | |||||||||||||||||||||||
Total | $ | (0.1 | ) | $ | 4.4 | ||||||||||||||||||||
Projected and Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans with Projected Benefit Obligation in Excess of Plan Assets | ' | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, the projected benefit obligation, the accumulated benefit obligation, and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets were as follows (dollars in millions): | |||||||||||||||||||||||||
Hourly Plan | Salary Plan | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets: | |||||||||||||||||||||||||
Projected benefit obligation | N/A | 1 | $ | 51.9 | $ | 53.8 | $ | 51.4 | |||||||||||||||||
Fair value of plan assets | N/A | 1 | $ | 50.3 | $ | 49.1 | $ | 39.1 | |||||||||||||||||
Plans with accumulated benefit obligation in excess of plan assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | N/A | 1 | $ | 51.9 | $ | 50.9 | $ | 48.1 | |||||||||||||||||
Fair value of plan assets | N/A | 1 | $ | 50.3 | $ | 49.1 | $ | 39.1 | |||||||||||||||||
1 | As of December 31, 2013, the hourly defined benefit pension plan had plan assets greater than both the projected benefit obligation and accumulated benefit obligation. | ||||||||||||||||||||||||
Expected Cash Flows for Pension and Post-Retirement Benefit Plans | ' | ||||||||||||||||||||||||
Information about expected cash flows for the Company’s pension and post-retirement benefit plans is as follows (dollars in millions): | |||||||||||||||||||||||||
Pension | Post-retirement | ||||||||||||||||||||||||
Plans | Benefits | ||||||||||||||||||||||||
Employer Contributions: | |||||||||||||||||||||||||
2014 expected contributions | $ | 9.5 | $ | 1.4 | |||||||||||||||||||||
Expected Benefit Payments: | |||||||||||||||||||||||||
2014 | $ | 2.3 | $ | 1.4 | |||||||||||||||||||||
2015 | 3.2 | 2.3 | |||||||||||||||||||||||
2016 | 4.2 | 3.2 | |||||||||||||||||||||||
2017 | 5 | 4.1 | |||||||||||||||||||||||
2018 | 5.8 | 5.1 | |||||||||||||||||||||||
2019-2023 | 38.9 | 34.2 | |||||||||||||||||||||||
Benefit Costs | ' | ||||||||||||||||||||||||
Weighted-Average Actuarial Assumptions | ' | ||||||||||||||||||||||||
The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost. | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 3.9 | % | 4.6 | % | 5.6 | % | 4.1 | % | 4.6 | % | 5.6 | % | |||||||||||||
Rate of compensation increase (salaried) | 3 | % | 4 | % | 4 | % | N/A | N/A | N/A | ||||||||||||||||
Expected return on assets | 7 | % | 7 | % | 7 | % | N/A | N/A | N/A | ||||||||||||||||
Benefit Obligation | ' | ||||||||||||||||||||||||
Weighted-Average Actuarial Assumptions | ' | ||||||||||||||||||||||||
The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of the Company’s plans. | |||||||||||||||||||||||||
Pension Plans | Post-retirement Benefits | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.9 | % | 4.1 | % | |||||||||||||||||
Rate of compensation increase (salaried) | 3 | % | 3 | % | N/A | N/A |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Assumptions used to Calculate Fair Value of Option Award | ' | ||||||||||||
When options are granted, the Company used a Black-Scholes option pricing model to calculate the fair value of each option award using the assumptions noted in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected volatility | 51 | % | N/A | 101% | |||||||||
Expected dividend yield | 1.2 | % | N/A | 0.00% | |||||||||
Expected term (in years) | 5.4 | N/A | 3.6 | ||||||||||
Expected forfeitures | 0 | % | N/A | 0% | |||||||||
Risk-free rate | 1.6 | % | N/A | 0.6% – 1.7% | |||||||||
Option Activity | ' | ||||||||||||
A summary of option activity as of December 31, 2013, 2012 and 2011, and changes during the period then ended is presented below: | |||||||||||||
Options | Weighted- | Weighted-Average | |||||||||||
(in millions) | Average Exercise | Remaining | |||||||||||
Price | Contractual Term | ||||||||||||
Outstanding as of December 31, 2010 | 14.8 | $ | 13.42 | 5.94 years | |||||||||
Exercisable as of December 31, 2010 | 8.4 | $ | 13.38 | 5.84 years | |||||||||
Granted | 0.1 | $ | 8.44 | ||||||||||
Exercised | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Outstanding as of December 31, 2011 | 14.9 | $ | 13.4 | 4.94 years | |||||||||
Exercisable as of December 31, 2011 | 11.5 | $ | 13.37 | 4.88 years | |||||||||
Granted | — | — | |||||||||||
Exercised | (2.7 | ) | — | ||||||||||
Forfeited or expired | (0.3 | ) | — | ||||||||||
Outstanding as of December 31, 2012 | 11.9 | $ | 14.01 | 4.93 years | |||||||||
Exercisable as of December 31, 2012 | 11.8 | $ | 14.02 | 4.91 years | |||||||||
Granted | 0.6 | $ | 23.39 | ||||||||||
Exercised | (3.8 | ) | — | ||||||||||
Forfeited or expired | — | — | |||||||||||
Outstanding as of December 31, 2013 | 8.7 | $ | 15.33 | 4.30 years | |||||||||
Exercisable as of December 31, 2013 | 8.1 | $ | 14.79 | 3.94 years | |||||||||
Restricted Stock Units (RSUs) | ' | ||||||||||||
Non-Vested Shares Activity | ' | ||||||||||||
A summary of RSU activity as of December 31, 2013 and 2012, and changes during the period then ended is presented below: | |||||||||||||
Non-vested Shares: | RSUs | Weighted-Average | |||||||||||
(in millions) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested as of December 31, 2011 | — | $ | — | ||||||||||
Granted | 1 | 20.2 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Non-vested as of December 31, 2012 | 1 | $ | 20.2 | ||||||||||
Granted | 0.2 | 23.31 | |||||||||||
Vested | (0.4 | ) | 20.23 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested as of December 31, 2013 | 0.8 | $ | 20.9 | ||||||||||
Employee Stock Option | ' | ||||||||||||
Non-Vested Shares Activity | ' | ||||||||||||
A summary of the status of the Company’s non-vested stock options as of December 31, 2013, 2012 and 2011, and changes during the period ended December 31, 2013, 2012 and 2011 is presented below: | |||||||||||||
Non-vested Stock Options: | Options | Weighted-Average | |||||||||||
(in millions) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Non-vested at December 31, 2010 | 6.3 | $ | 2.62 | ||||||||||
Granted | 0.1 | 5.43 | |||||||||||
Vested | (3.0 | ) | 2.67 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested at December 31, 2011 | 3.4 | $ | 2.81 | ||||||||||
Granted | — | — | |||||||||||
Vested | (2.9 | ) | 2.58 | ||||||||||
Forfeited | (0.3 | ) | 4 | ||||||||||
Non-vested at December 31, 2012 | 0.2 | $ | 4.34 | ||||||||||
Granted | 0.6 | 9.76 | |||||||||||
Vested | (0.2 | ) | 3.59 | ||||||||||
Forfeited | — | — | |||||||||||
Non-vested at December 31, 2013 | 0.6 | $ | 9.06 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Loss Before Income Taxes | ' | ||||||||||||
Income before income taxes included the following (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. income | $ | 259 | $ | 204.1 | $ | 133.8 | |||||||
Foreign income | 7.1 | 12.1 | 16.8 | ||||||||||
Total | $ | 266.1 | $ | 216.2 | $ | 150.6 | |||||||
Provision for Income Tax Expense | ' | ||||||||||||
The provision for income tax expense (benefit) was estimated as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Estimated current income taxes: | |||||||||||||
U.S. federal | $ | 0.2 | $ | 1.5 | $ | — | |||||||
Foreign | 1.9 | 3.9 | 6.7 | ||||||||||
U.S. state and local | 0.6 | 0.4 | 1.1 | ||||||||||
Total Current | 2.7 | 5.8 | 7.8 | ||||||||||
Deferred income tax expense (credit), net: | |||||||||||||
U.S. federal | 87.6 | (282.5 | ) | 37.5 | |||||||||
Foreign | 0.1 | 0.1 | (0.4 | ) | |||||||||
U.S. state and local | 10.3 | (21.4 | ) | 2.7 | |||||||||
Total Deferred | 98 | (303.8 | ) | 39.8 | |||||||||
Total income tax expense | $ | 100.7 | $ | (298.0 | ) | $ | 47.6 | ||||||
Reconciliation of Provision for Income Tax Expense | ' | ||||||||||||
A reconciliation of the provision for income tax expense compared with the amounts at the U.S. federal statutory rate is as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Tax at U.S. statutory income tax rate | $ | 93.1 | $ | 75.7 | $ | 52.9 | |||||||
Foreign rate differential | (0.7 | ) | (2.6 | ) | (2.0 | ) | |||||||
Non-deductible expenses | 0.8 | 4.2 | 5.6 | ||||||||||
Valuation allowance | 1 | (384.1 | ) | (19.2 | ) | ||||||||
State tax expense | 7.3 | 5.7 | 4.4 | ||||||||||
Adjustment to deferred tax expense | (0.3 | ) | 2.2 | 4.3 | |||||||||
Branch income taxes-not creditable | — | — | (0.1 | ) | |||||||||
Other adjustments | (0.5 | ) | 0.9 | 1.7 | |||||||||
Total income tax expense | $ | 100.7 | $ | (298.0 | ) | $ | 47.6 | ||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities included the following (dollars in millions): | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 4.6 | $ | 4 | |||||||||
Warranty accrual | 32.7 | 39.2 | |||||||||||
Sales allowances and rebates | 7.9 | 8 | |||||||||||
Deferred revenue | 24 | 24.2 | |||||||||||
Post-retirement health care | — | 8 | |||||||||||
Intangibles | 83.6 | 112.4 | |||||||||||
Other accrued liabilities | 27.2 | 22 | |||||||||||
Unrealized loss on interest rate derivatives | 3.7 | 20 | |||||||||||
Operating loss carryforwards | 140.7 | 145.3 | |||||||||||
Stock based compensation | 12.5 | 10.6 | |||||||||||
Technology-related investments | 6.8 | 4.4 | |||||||||||
Loan fees | 0.9 | 1.5 | |||||||||||
Pension | — | 5.6 | |||||||||||
Other | 10.4 | 13.9 | |||||||||||
Total Deferred tax assets | 355 | 419.1 | |||||||||||
Valuation allowances | (2.8 | ) | (1.7 | ) | |||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | (22.0 | ) | (25.8 | ) | |||||||||
Loan fees | — | — | |||||||||||
Goodwill | (280.3 | ) | (261.1 | ) | |||||||||
Trade name | (60.6 | ) | (29.3 | ) | |||||||||
Product warranty liabilities | (5.6 | ) | (10.6 | ) | |||||||||
Pension | (0.5 | ) | — | ||||||||||
Post-retirement health care | (0.2 | ) | — | ||||||||||
Other liabilities | — | (3.1 | ) | ||||||||||
Total Deferred tax liabilities | (369.2 | ) | (329.9 | ) | |||||||||
Net Deferred tax (liability) asset | $ | (17.0 | ) | $ | 87.5 | ||||||||
Change in Valuation Allowance and Related Considerations | ' | ||||||||||||
The change in the valuation allowance and related considerations are as follows (dollars in millions): | |||||||||||||
December 31, 2010 | $ | 401.9 | |||||||||||
Reductions | (11.0 | ) | |||||||||||
December 31, 2011 | $ | 390.9 | |||||||||||
Reductions | (389.2 | ) | |||||||||||
December 31, 2012 | $ | 1.7 | |||||||||||
Additions | 1.1 | ||||||||||||
December 31, 2013 | $ | 2.8 | |||||||||||
Liability for Unrecognized Tax Benefit | ' | ||||||||||||
The change in the liability for unrecognized tax benefits are as follows (dollars in millions): | |||||||||||||
December 31, 2010 | $ | — | |||||||||||
December 31, 2011 | $ | — | |||||||||||
December 31, 2012 | $ | — | |||||||||||
Increases in unrecognized tax benefits as a result of current year activity | 2.3 | ||||||||||||
December 31, 2013 | $ | 2.3 | |||||||||||
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Reconciliation of Net Income Loss to Comprehensive Income Loss | ' | ||||||||||||
The following table reconciles net income to comprehensive income with the related tax effects (dollars in millions): | |||||||||||||
Comprehensive Income | |||||||||||||
Before Tax | Tax (Expense) | After Tax | |||||||||||
Benefit | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Net income | $ | 150.6 | $ | (47.6 | ) | $ | 103 | ||||||
Foreign currency translation | (11.6 | ) | — | (11.6 | ) | ||||||||
Pension and OPEB liability adjustment | (22.6 | ) | — | (22.6 | ) | ||||||||
Available-for-sale securities | 3.2 | — | 3.2 | ||||||||||
Total comprehensive income | $ | 119.6 | $ | (47.6 | ) | $ | 72 | ||||||
Year ended December 31, 2012 | |||||||||||||
Net income | $ | 216.2 | $ | 298 | $ | 514.2 | |||||||
Foreign currency translation | (0.7 | ) | — | (0.7 | ) | ||||||||
Pension and OPEB liability adjustment | 26.7 | (11.6 | ) | 15.1 | |||||||||
Available-for-sale securities | (2.0 | ) | 0.7 | (1.3 | ) | ||||||||
Total comprehensive income | $ | 240.2 | $ | 287.1 | $ | 527.3 | |||||||
Year ended December 31, 2013 | |||||||||||||
Net income | $ | 266.1 | $ | (100.7 | ) | $ | 165.4 | ||||||
Foreign currency translation | (5.0 | ) | — | (5.0 | ) | ||||||||
Pension and OPEB liability adjustment | 46.4 | (17.4 | ) | 29 | |||||||||
Available-for-sale securities | (1.9 | ) | 0.8 | (1.1 | ) | ||||||||
Total comprehensive income | $ | 305.6 | $ | (117.3 | ) | $ | 188.3 | ||||||
Consolidated Statements of Comprehensive Income Affected by Reclassifications | ' | ||||||||||||
The following table shows the location in the Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions): | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
AOCL Components | Amount | Affected line item in the consolidated | |||||||||||
reclassified from | statements of comprehensive income | ||||||||||||
AOCL | |||||||||||||
Amortization of defined benefit pension items: | |||||||||||||
Prior service cost | $ | 2.4 | Cost of sales | ||||||||||
0.9 | Selling, general and | ||||||||||||
administrative | |||||||||||||
Actuarial loss | (0.3 | ) | Selling, general and | ||||||||||
administrative | |||||||||||||
(0.3 | ) | Engineering – research and | |||||||||||
development | |||||||||||||
Total reclassifications, before tax | 2.7 | Income before income taxes | |||||||||||
Income tax expense | (1.1 | ) | Tax expense | ||||||||||
Total reclassifications | $ | 1.6 | Net of tax | ||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Payments under Non-Cancelable Operating Leases | ' | ||||
As of December 31, 2013, future payments under non-cancelable operating leases are as follows over each of the next five years and thereafter (dollars in millions): | |||||
2014 | $ | 4.6 | |||
2015 | 2.6 | ||||
2016 | 1.1 | ||||
2017 | 0.5 | ||||
2018 | 0.4 | ||||
Thereafter | 1.6 | ||||
Total | $ | 10.8 | |||
CONCENTRATION_OF_RISK_Tables
CONCENTRATION OF RISK (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedules of Concentration of Risk by Risk Factor | ' | ||||||||||||
Three customers accounted for greater than 10% of net sales within the last three years presented. | |||||||||||||
Year ended December 31, | |||||||||||||
% of net sales | 2013 | 2012 | 2011 | ||||||||||
Daimler AG | 17 | % | 13 | % | 10 | % | |||||||
Navistar, Inc. | 10 | % | 11 | % | 12 | % | |||||||
Oshkosh Corporation | 8 | % | 11 | % | 8 | % | |||||||
No other customers accounted for more than 10% of net sales of the Company during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
Three customers accounted for greater than 10% of outstanding accounts receivable within the last two years presented. | |||||||||||||
% of accounts receivable | As of | As of | |||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Daimler AG | 15 | % | 10 | % | |||||||||
AB Volvo. | 11 | % | 7 | % | |||||||||
Navistar, Inc. | 10 | % | 13 | % | |||||||||
No other customers accounted for more than 10% of the outstanding accounts receivable as of December 31, 2013 or December 31, 2012. | |||||||||||||
One supplier accounted for greater than 10% of materials purchased for the periods presented: | |||||||||||||
Year ended December 31, | |||||||||||||
% of material purchased | 2013 | 2012 | 2011 | ||||||||||
Linamar Corporation Inc. | 13 | % | 13 | % | 12 | % |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 165.4 | $ | 514.2 | $ | 103 | |||||||
Weighted average shares of common stock outstanding | 184.5 | 182 | 181.4 | ||||||||||
Dilutive effect stock-based awards | 3.4 | 4.2 | 1.9 | ||||||||||
Diluted weighted average shares of common stock outstanding | 187.9 | 186.2 | 183.3 | ||||||||||
Basic earnings per share attributable to common stockholders | $ | 0.9 | $ | 2.83 | $ | 0.57 | |||||||
Diluted earnings per share attributable to common stockholders | $ | 0.88 | $ | 2.76 | $ | 0.56 | |||||||
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Sales By Country, And Reportable Segment | ' | ||||||||||||
The Company had the following net sales by country as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 1,354.30 | $ | 1,509.60 | $ | 1,532.70 | |||||||
China | 141 | 136.4 | 93.3 | ||||||||||
Canada | 88.6 | 123 | 165.6 | ||||||||||
Germany | 53.9 | 39.1 | 42.9 | ||||||||||
United Kingdom | 42.5 | 74.1 | 58.2 | ||||||||||
Japan | 37 | 52 | 46.5 | ||||||||||
Other | 209.5 | 207.6 | 223.6 | ||||||||||
Total | $ | 1,926.80 | $ | 2,141.80 | $ | 2,162.80 | |||||||
Schedule Of Disclosure Of Long-Lived Assets By Geographic Location | ' | ||||||||||||
The Company had net long-lived assets by country as follows (dollars in millions): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 478.7 | $ | 493.6 | $ | 492.5 | |||||||
India | 59.9 | 76.8 | 62.1 | ||||||||||
Hungary | 18.1 | 18.4 | 18.3 | ||||||||||
Others | 6.7 | 7.4 | 8.9 | ||||||||||
Total | $ | 563.4 | $ | 596.2 | $ | 581.8 | |||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Data | ' | ||||||||||||||||
The following is a summary of the unaudited quarterly results of operations. The Company believes that all adjustments considered necessary for a fair presentation in accordance with GAAP have been included (unaudited, in millions, except per share data). | |||||||||||||||||
Quarter ended, | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 457.4 | $ | 512.1 | $ | 466.3 | $ | 491 | |||||||||
Gross profit | 198.3 | 226.1 | 206.1 | 211.4 | |||||||||||||
Operating income | 81.4 | 117.7 | 111.2 | 99.6 | |||||||||||||
Income before income taxes | 44.4 | 81.8 | 72.4 | 67.5 | |||||||||||||
Net income | 27.5 | 50.5 | 44.5 | 42.9 | |||||||||||||
Basic earnings per share | $ | 0.15 | $ | 0.27 | $ | 0.24 | $ | 0.24 | |||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.26 | $ | 0.24 | $ | 0.23 | |||||||||
2012 | |||||||||||||||||
Net sales | $ | 601.9 | $ | 559.4 | $ | 493.5 | $ | 487 | |||||||||
Gross profit | 283.8 | 251.9 | 224.4 | 194.2 | |||||||||||||
Operating income | 154.7 | 119.6 | 91.8 | 54.1 | |||||||||||||
Income before income taxes | 83.2 | 62.7 | 49.2 | 21.1 | |||||||||||||
Net income | 58 | 412.8 | 32.2 | 11.2 | |||||||||||||
Basic earnings per share | $ | 0.32 | $ | 2.28 | $ | 0.18 | $ | 0.06 | |||||||||
Diluted earnings per share | $ | 0.31 | $ | 2.21 | $ | 0.17 | $ | 0.06 |
Overview_Additional_Informatio
Overview - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Vehicle | |
Brand | |
Customer | |
Product | |
Employee | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of employees | 2,700 |
Transmission product lines | 13 |
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 | 77.00% |
Recovered_Sheet1
Summary of Significant Accounting Polices - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of operating segment | 1 | ' | ' |
Number of reportable segment | 1 | ' | ' |
Highly-liquid investments with original maturities | '90 days | ' | ' |
Percent by which the fair value of the reporting unit exceeded its carrying value | 90.00% | ' | ' |
Amortization of deferred financing costs | $10.90 | $14.50 | $12.10 |
Sales incentives | 65.2 | 59.9 | 59.2 |
Military price reduction reserve | 49.6 | 46.9 | ' |
Engineering services revenue | $12.40 | $7.80 | $7.10 |
Trade Name | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percent by which the fair value of the reporting unit exceeded its carrying value | 8.00% | ' | ' |
Minimum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Extended Transmission Coverage sales, recognition period | '3 years | ' | ' |
Maximum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Extended Transmission Coverage sales, recognition period | '5 years | ' | ' |
Property_Plant_and_Equipment_E
Property Plant and Equipment Estimated Lives (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | Land Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '5 years |
Minimum | Building and Building Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '10 years |
Minimum | Machinery and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '2 years |
Minimum | Software | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '2 years |
Minimum | Special tools | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '2 years |
Maximum | Land Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '30 years |
Maximum | Building and Building Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '40 years |
Maximum | Machinery and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '20 years |
Maximum | Software | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '5 years |
Maximum | Special tools | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated Lives | '10 years |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Purchased parts and raw materials | $79.70 | $80.60 |
Work in progress | 5.7 | 7.5 |
Service parts | 45.8 | 44.5 |
Finished goods | 29.2 | 24.5 |
Total inventories | $160.40 | $157.10 |
Cost_and_Accumulated_Depreciat
Cost and Accumulated Depreciation of Property Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Land and land improvements | $20.30 | $16.20 | ' |
Buildings and building improvements | 271.4 | 263.3 | ' |
Machinery and equipment | 567.7 | 543.7 | ' |
Software | 112.9 | 102.9 | ' |
Special tools | 143.4 | 129.6 | ' |
Construction in progress | 48.6 | 56 | ' |
Total property, plant and equipment | 1,164.30 | 1,111.70 | ' |
Accumulated depreciation | -600.9 | -515.5 | ' |
Property, plant and equipment, net | $563.40 | $596.20 | $581.80 |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation of property, plant and equipment | $98.70 | $102.50 | $103.80 |
Recovered_Sheet2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $1,941 | $1,941 | ' |
Amortization of intangible assets | 105.3 | 150 | 151.9 |
Trade name | 870 | 870 | ' |
Net carrying value of Goodwill and other intangible assets | 3,551.80 | ' | ' |
United States Federal Tax Basis | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 1,032.10 | 1,150 | ' |
Trade name | $709.40 | $792 | ' |
Summary_of_Goodwill_and_Other_
Summary of Goodwill and Other Intangible Assets (Detail) (USD $) | Dec. 31, 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 | -940.2 | -834.9 |
Intangible assets, net | 1,610.80 | 1,716.10 |
Customer relationships - defense | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | 62.3 | 62.3 |
Accumulated amortization | -24.4 | -20.8 |
Intangible assets, net | 37.9 | 41.5 |
Customer relationships - commercial | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | 831.8 | 831.8 |
Accumulated amortization | -374.9 | -321.2 |
Intangible assets, net | 456.9 | 510.6 |
Proprietary technology | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | 476.3 | 476.3 |
Accumulated amortization | -243.9 | -205.8 |
Intangible assets, net | 232.4 | 270.5 |
Non-compete agreement | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | 17.3 | 17.3 |
Accumulated amortization | -11.1 | -9.4 |
Intangible assets, net | 6.2 | 7.9 |
Patented technology - defense | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | 28.2 | 28.2 |
Accumulated amortization | -21.2 | -17.9 |
Intangible assets, net | 7 | 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 $) | Dec. 31, 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 | $275.60 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 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 | $184.70 | $80.20 |
Available-for-sale securities | 8.2 | 6.1 |
Rabbi trust assets | 1.3 | 0.2 |
Deferred compensation obligation | -1.3 | -0.2 |
Derivative assets | 1.6 | 0.2 |
Derivative liabilities | -21.4 | -52.9 |
Total | 173.1 | 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 | 184.7 | 80.2 |
Available-for-sale securities | 8.2 | 6.1 |
Rabbi trust assets | 1.3 | 0.2 |
Deferred compensation obligation | -1.3 | -0.2 |
Total | 192.9 | 86.3 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 1.6 | 0.2 |
Derivative liabilities | -21.4 | -52.9 |
Total | ($19.80) | ($52.70) |
Recovered_Sheet3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 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 | $179.70 | $75.20 |
Investment in U.S. government backed securities | $5 | $5 |
Long_Term_Debt_and_Maturities_
Long Term Debt and Maturities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $2,678.30 | $2,820.80 |
Less: current maturities of long-term debt | 17.9 | 19.5 |
Total long-term debt less current portion | 2,660.40 | 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 | 423.5 | 793.1 |
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 1,783.50 | 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) | 12 Months Ended |
Dec. 31, 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 $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Aug. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2007 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 30, 2013 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Aug. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2013 |
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 | Line of Credit | Senior Secured Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving 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-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-1 Loan, variable, due 2014 | Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 | 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 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-1 Loan, variable, due 2016 | Senior Secured Credit Facility Term B-1 Loan, variable, due 2016 | Senior Secured Credit Facility Term B-2 Loan, due 2017 | Senior Secured Credit Facility Term B-3 Loan, due 2019 | ||||
Amendment Agreement | Minimum | Maximum | LIBOR | LIBOR | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Federal Funds Rate | Federal Funds Rate | Minimum | Maximum | LIBOR | LIBOR | LIBOR | Base Rate | Base Rate | Base Rate | Allison Transmission Inc. | LIBOR | LIBOR | 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 | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Line of Credit | Line of Credit | Line of Credit | Amendment | Allison Transmission Inc. | LIBOR | LIBOR | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Prime Rate or Federal Funds Rate | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Allison Transmission Inc. | Allison Transmission Inc. | Allison Transmission Inc. | Allison Transmission Inc. | |||||||||||||||||||||||||||||
Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option Three | Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option Three | Variable Interest Rate Option One | Variable Interest Rate Option One | Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option Two | Variable Interest Rate Option Two | Variable Interest Rate Option One | Variable Interest Rate Option One | Variable Interest Rate Option One | Variable Interest Rate Option Two | Variable Interest Rate Option Two | Variable Interest Rate Option Two | Refinanced Term Loan | Amendment | Refinanced Term Loan | Amendment | Minimum | Minimum | Maximum | LIBOR | Prime Rate or Federal Funds Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Refinanced Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | $17.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 17.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 17.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 441.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 17.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indebtedness associated with Allison Transmission Inc. | 2,678.30 | 2,820.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,783.50 | ' | ' | 1,783.50 | 1,145 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 423.5 | 793.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 411.4 | 471.3 | 471.3 | ' | ' | ' | ' | ' | ' | 423.5 | 1,783.50 |
Interest rate of Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.13% | ' | ' | 7.13% | ' | ' | ' | ' | ' | ' |
Fair value of long-term debt obligations | 2,724.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument face amount | ' | ' | ' | ' | 850 | 3,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650 | ' | ' | 650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 411.4 | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Credit Facility, maturity date | ' | ' | ' | ' | ' | 7-Aug-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available for discounted voluntary prepayments pursuant to a Dutch auction | ' | ' | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of term loans | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended Senior Secured Credit Facility, principal amount | ' | ' | ' | ' | ' | ' | 801.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin over base rate | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | 3.00% | 3.25% | 2.00% | 2.25% | 0.50% | 0.50% | ' | ' | ' | ' | ' | 2.25% | 2.00% | 1.75% | 1.25% | 1.00% | 0.75% | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.75% | 3.25% | 2.50% | 2.50% | 3.00% | 0.50% | 0.50% | 0.50% | 1.75% | 1.75% | 2.25% | 1.50% | 1.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 0.50% | 2.00% | 2.00% | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional deferred financing fees recorded | 14.9 | 20.2 | ' | ' | 16.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.1 | 1 | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019-08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate, description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest on the Term B-3 Loan, as of December 31, 2013, is equal to the LIBOR (which may not be less than 1.00%) plus 2.75% | '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 December 31, 2013, is equal to the LIBOR plus 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing fees | 10.9 | 14.5 | 12.1 | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 2.1 | 1.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility refinance description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In December 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $650.0 million of term loan debt from August 2017 to August 2019 and to reduce the applicable margin 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 | ' | '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 loan, due date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2017-08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014-08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 410 | 410 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 410 | ' | ' |
Maturity date of revolving credit borrowings | ' | ' | ' | ' | ' | ' | '2019-01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019-01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.25% | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of letters of credit commitments available under the revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR margin rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest rate for term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.17% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average rate on the Senior Secured Credit Facility | ' | ' | ' | ' | ' | ' | 3.64% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payments on term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount outstanding at any time on the revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 395 | 395 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit borrowings, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.44% | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required senior secured leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.5 | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Achieved senior secured leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.0323 | 0.0323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum senior secured leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis point reduction to applicable margin, resulting from senior secured leverage ratio below minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' |
Basis point reduction to commitment fee, resulting from total leverage ratio below minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total leverage ratio | 3.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 28.7 | ' | ' | ' | ' |
Gain on repurchases of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $1.30 | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Companys_Interest_R
Summary of Company's Interest Rate Derivatives (Detail) (USD $) | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Interest Rate Swap D, due 2013 | Interest Rate Swap E, due 2013 | Interest Rate Swap F, due 2013 | Interest Rate Swap G, due 2013 | Interest Rate Swap H, due 2014 | Interest Rate Swap H, due 2014 | Interest Rate Swap I, due 2014 | Interest Rate Swap I, due 2014 | Interest Rate Swap J, due 2014 | Interest Rate Swap J, due 2014 | Interest Rate Swap K, due 2014 | Interest Rate Swap K, due 2014 | Interest Rate Swap L Due Two Thousand Nineteen | Interest Rate Swap M Due Two Thousand Nineteen | Interest Rate Swap N Due Two Thousand Nineteen | Interest Rate Swap O Due Two Thousand Nineteen | Interest Rate Swap O Due Two Thousand Nineteen | Interest Rate Swap P Due Two Thousand Nineteen | Interest Rate Swap P Due Two Thousand Nineteen | Interest Rate Swap Q Due Two Thousand Nineteen | Interest Rate Swap Q Due Two Thousand Nineteen | Interest Rate Swap R Due Two Thousand Nineteen | Interest Rate Swap R Due Two Thousand Nineteen | Interest Rate Swap | Interest Rate Swap |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | $125 | $150 | $75 | $75 | $350 | $350 | $350 | $350 | $125 | $125 | $125 | $125 | $75 | $100 | $75 | $75 | $75 | $75 | $75 | $50 | $50 | $50 | $50 | $1,450 | $1,375 |
Fair Value | ($2.80) | ($2.30) | ($1.10) | ($1.20) | ($7.20) | ($19) | ($7.20) | ($19.20) | ($2) | ($3.30) | ($2) | ($3.40) | ($0.40) | ($0.40) | ($0.20) | $0.20 | ' | $0.40 | ' | $0.40 | ' | $0.40 | ' | ($18) | ($52.30) |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 |
Interest Rate Swap L Due Two Thousand Thirteen | Interest Rate Swap L Due Two Thousand Thirteen | Interest Rate Swap M Due Two Thousand Thirteen | Interest Rate Swap M Due Two Thousand Thirteen | Interest Rate Swap P Due Two Thousand Thirteen | Interest Rate Swap P Due Two Thousand Thirteen | Interest Rate Swap P Due Two Thousand Nineteen | Interest Rate Swap P Due Two Thousand Nineteen | Interest Rate Swap P Due Two Thousand Nineteen | 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 contracts | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap O Due Two Thousand Nineteen | Interest Rate Swap O Due Two Thousand Nineteen | Interest Rate Swap O Due Two Thousand Nineteen | Interest Rate Swap Q Due Two Thousand Nineteen | Interest Rate Swap Q Due Two Thousand Nineteen | Interest Rate Swap Q Due Two Thousand Nineteen | Interest Rate Swap R Due Two Thousand Nineteen | Interest Rate Swap R Due Two Thousand Nineteen | Interest Rate Swap R Due Two Thousand Nineteen | |||
LIBOR | LIBOR | LIBOR | LIBOR | Other Current Liabilities | Other Current Liabilities | 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 | Other non-current Assets | LIBOR | LIBOR | LIBOR | ||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | $75,000,000 | ' | $100,000,000 | ' | $75,000,000 | ' | $75,000,000 | $75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,450,000,000 | $1,375,000,000 | $75,000,000 | $75,000,000 | ' | $50,000,000 | $50,000,000 | ' | $50,000,000 | $50,000,000 | ' |
Derivative, Fixed Interest Rate | ' | ' | 3.44% | ' | 3.43% | ' | 3.37% | ' | 3.08% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.17% | ' | ' | 2.99% | ' | ' | 2.98% | ' | ' |
Derivative , LIBOR floor rate | ' | ' | ' | 1.00% | ' | 1.00% | ' | 1.00% | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% | ' | ' | 1.00% |
Derivative, Effective Date | ' | ' | 31-Aug-16 | ' | 31-Aug-16 | ' | 31-Aug-16 | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-19 | ' | ' | 31-Aug-19 | ' | ' | 31-Aug-19 | ' | ' |
Amount of collateral recorded in Other current assets | 1,700,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Liability, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -300,000 | -200,000 | -1,500,000 | -300,000 | -200,000 | -100,000 | ' | ' | ' | ' | -18,500,000 | -31,200,000 | -1,000,000 | -21,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Assets, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | $100,000 | $0 | $100,000 | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Outstanding_Foreign
Summary of Outstanding Foreign Currency Forward Contracts (Detail) (Foreign currency contracts, Japanese Yen) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) | USD ($) | JPY (¥) |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' |
Notional Amount | ' | ¥ 600 | ' | ¥ 675 |
Fair Value | ($0.30) | ¥ (0.3) | ($0.20) | ¥ (0.2) |
Summary_of_Outstanding_Commodi
Summary of Outstanding Commodity Swaps (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
MMBTU | MMBTU | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Fair value | ($1,600,000) | ($200,000) |
Aluminum | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Notional Amount | 23,800,000 | 19,400,000 |
Quantity | 11,875 | 9,050 |
Fair value | -1,600,000 | -100,000 |
Steel | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Notional Amount | ' | 200,000 |
Quantity | ' | 340 |
Fair value | ' | -100,000 |
Natural Gas | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Notional Amount | 300,000 | 300,000 |
Quantity | 90,000 | 80,000 |
Fair value | $0 | $0 |
Companys_Derivative_Instrument
Company's Derivative Instruments and their Impact on Financial Condition of Company (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Total derivatives not designated as hedging instruments | ($1,600,000) | ($200,000) |
Other Current Liabilities | Foreign currency contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | -300,000 | -200,000 |
Other Current Liabilities | Commodity contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | -1,500,000 | -300,000 |
Other Current Liabilities | Interest rate contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | -18,500,000 | -31,200,000 |
Other non-current Assets | Commodity contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets, Fair Value | 0 | 100,000 |
Other non-current Assets | Interest rate contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets, Fair Value | 1,500,000 | ' |
Derivatives not designated as hedging instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Total derivatives not designated as hedging instruments | -19.9 | -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 and Other Long-Term Assets | Commodity contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets, Fair Value | 0.1 | 0.2 |
Derivatives not designated as hedging instruments | Other current and non-current liabilities | Commodity contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | -1.7 | -0.4 |
Derivatives not designated as hedging instruments | Other current and non-current liabilities | Interest rate contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | -19.5 | -52.3 |
Derivatives not designated as hedging instruments | Other non-current Assets | Interest rate contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets, Fair Value | $1.50 | ' |
Impact_on_the_Companys_Results
Impact on the Company's Results of Operations Related to Unrealized Gain (Loss) on Interest Rate Derivatives (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative [Line Items] | ' | ' | ' |
Unrealized gain (loss) on interest rate derivatives | $32.80 | $26.20 | ($13.90) |
Interest rate contracts | Interest expense | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized gain (loss) on interest rate derivatives | $34.30 | $25.50 | ($7) |
Product_Warranty_Liability_Act
Product Warranty Liability Activities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Guarantor Obligations [Line Items] | ' | ' | ' |
Beginning balance | $109.70 | $115.40 | $128.50 |
Payments | -38.7 | -47.3 | -35.5 |
Increase in liability (warranties issued during period) | 28.4 | 25.5 | 26.5 |
Net adjustments to liability | -9.6 | 15.3 | -5.1 |
Accretion (for Predecessor liabilities) | 0.7 | 0.8 | 1 |
Ending balance | $90.50 | $109.70 | $115.40 |
Product_Warranty_Liabilities_A
Product Warranty Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Jun. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2007 |
General Motors | Dual Power Inverter Module | Dual Power Inverter Module | Dual Power Inverter Module | Dual Power Inverter Module | Dual Power Inverter Module | Dual Power Inverter Module | Dual Power Inverter Module | |||||
General Motors | General Motors | General Motors | Product Warranty | |||||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product warranty liability, current | $37.40 | $36.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product warranty liability, non-current | 53.1 | 73.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product warranty, qualified cost | ' | ' | ' | ' | ' | 12 | ' | ' | 34 | ' | ' | 46 |
Product warranty, qualified cost sharing ratio | ' | ' | ' | ' | ' | 33.30% | ' | ' | 66.70% | ' | ' | ' |
Increase (decrease) in extended Product liability | 8.2 | -7.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product warranty accrual reduction charged to DPIM receivable | ' | 7.3 | ' | ' | 5.8 | ' | ' | ' | ' | ' | ' | ' |
Product warranty accrual reduction charged to comprehensive income | 2.4 | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty liability | 90.5 | 109.7 | 115.4 | 128.5 | ' | ' | 44.6 | 52.8 | ' | ' | ' | ' |
Other receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.8 | 31.6 | ' |
Warranty claims paid | 38.7 | 47.3 | 35.5 | ' | ' | ' | 25.5 | ' | ' | ' | ' | ' |
Reimbursement received | ' | ' | ' | ' | 9.1 | ' | ' | ' | ' | ' | ' | ' |
Product warranty accrual additional reserve | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended Product warranty, charge to the Consolidated Statements of Comprehensive Income (Loss) | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_Revenue_Additional_In
Deferred Revenue - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Deferred Revenue [Line Items] | ' | ' | ' |
Deferred revenue current liabilities | $29.20 | $21.60 | ' |
Deferred revenue non-current liabilities | 43.2 | 42.6 | ' |
U S Government Contracts | ' | ' | ' |
Deferred Revenue [Line Items] | ' | ' | ' |
Deferred revenue current liabilities | $8.80 | $0.70 | $0.20 |
Deferred_Revenue_for_Extended_
Deferred Revenue for Extended Transmission Coverage Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Revenue [Line Items] | ' | ' | ' |
Beginning balance | $63.50 | $60.50 | $56.20 |
Increases | 21.1 | 22.9 | 19.6 |
Revenue earned | -21 | -19.9 | -15.3 |
Ending balance | $63.60 | $63.50 | $60.50 |
Other_Expense_Net_Detail
Other Expense Net (Detail) (USD $) | 12 Months Ended | 60 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Components of Other Income (Expense) [Line Items] | ' | ' | ' | ' |
Grant Program income | $5.20 | $11.50 | $15.60 | $46 |
Impairment loss on investments in technology-related initiatives | -5 | -14.4 | ' | ' |
Realized (loss) gain on derivative contracts (see NOTE 8) | -2.8 | -1.3 | 5.2 | ' |
Loss on foreign exchange | -2.4 | -2.6 | -6.7 | ' |
Loss on intercompany foreign exchange | -2.3 | ' | ' | ' |
Public offering fees and expenses | -1.6 | -6.1 | 0 | ' |
Unrealized (loss) gain on derivative contracts (see NOTE 8) | -1.5 | 0.9 | -6.8 | ' |
Loss on repayments and redemptions of long-term debt (see NOTE 7) | -0.8 | -22.1 | -16 | ' |
Termination of Sponsor services agreement (see NOTE 19) | ' | -16 | ' | ' |
Loss on re-measurement of employee benefit plans (see NOTE 13) | ' | -2.3 | ' | ' |
Vendor settlement | ' | ' | 3.7 | ' |
Gain on sale of land | ' | ' | 0.7 | ' |
Other | 0.3 | -0.4 | 0.1 | ' |
Total | ($10.90) | ($52.80) | ($4.20) | ' |
Other_Expense_Net_Additional_I
Other Expense, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 3 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | ||||||
Public Offering One | Public Offering One | Public Offering Two | |||||||
Other Income Expense [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secondary offering of common stock | ' | ' | ' | ' | ' | 23,805,000 | 15,000,000 | ' | 12,500,000 |
Common stock, price per share | ' | ' | ' | ' | ' | $21.18 | $23.10 | $21.18 | $25.56 |
Stock repurchased from underwriter | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' |
Public offering fees and expenses | ' | $1.60 | $6.10 | $0 | ' | ' | ' | ' | ' |
Payment for expansion of transmission technologies | 2.5 | 2.5 | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on investments in technology-related initiatives | ' | 5 | 14.4 | ' | ' | ' | ' | ' | ' |
Grant Program income | ' | 5.2 | 11.5 | 15.6 | 46 | ' | ' | ' | ' |
Reduction of basis of capital assets purchased under Grant program | ' | 3.9 | 3.2 | 4.9 | ' | ' | ' | ' | ' |
Assets in service under the Grant Program | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' |
Assets acquired under Grant Program | ' | 7.1 | ' | ' | 7.1 | ' | ' | ' | ' |
Grant Program, related depreciation | ' | $0.20 | $0.10 | $0.10 | ' | ' | ' | ' | ' |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Current Liabilities [Line Items] | ' | ' |
Payroll and related costs | $37.60 | $47.50 |
Sales allowances | 26.9 | 27 |
Derivative liabilities | 20.2 | 34.6 |
Accrued interest payable | 11.2 | 14.2 |
Defense price reduction reserve | 26.8 | 12 |
Taxes payable | 8.6 | 6.9 |
Vendor buyback obligation | 11.8 | 13.9 |
Other accruals | 9.2 | 11.3 |
Total | $152.30 | $167.40 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Nonqualified Deferred Compensation Plan | Nonqualified Deferred Compensation Plan | Nonqualified Deferred Compensation Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Hourly Plan | Hourly Plan | Hourly Plan | Salary Plan | Salary Plan | Salary Plan | Post-retirement Benefits | Post-retirement Benefits | Post-retirement Benefits | Post-retirement Benefits | Future Post Retirement Medical Care Costs | Future Post Retirement Prescription Drug Costs | Asset Purchase Agreement | Hourly Employee | Hourly Employee | |||||
Nonqualified Deferred Compensation Plan | Nonqualified Deferred Compensation Plan | Post-retirement Benefits | Post-retirement Benefits | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plan, service period before normal retirement age | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | $0.90 | $0.60 | $5.40 | $5.10 | $4.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actuarial gain(loss) | ' | ' | ' | 17.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -30.7 | 3.8 | 18.8 | ' | ' | ' | ' | ' | ' |
Non-cash settlement charge | ' | 2.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in pension liability | ' | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan, employer contribution for employee with severance date on or after January 1, 1993 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan, employer matching contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net benefit obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120.7 | 142.6 | 156.6 | 127 | ' | ' | ' | 120.7 | 142.6 |
Excise tax as a percentage of value of plan that exceeds the threshold amount | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of excise tax on post-retirement benefit obligation | ' | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Health care cost trend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.70% | 6.00% | ' | ' | ' |
Health care cost ultimate trend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 4.50% | ' | ' | ' |
Health care cost ultimate trend year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2027 | '2027 | ' | ' | ' |
Plan assets transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.8 | ' | ' |
Agreement period under post-retirement health care benefits | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Favorable adjustment to benefit obligation | -28.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -28.9 | ' | ' | ' | ' | ' | ' | ' |
Collective bargaining agreement, expiration period | '2017-11 | ' | '2017-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | 100 | ' | 103.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation expense | ' | ' | ' | ' | 0.3 | 0.1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan assets, fair value | ' | ' | ' | ' | ' | ' | ' | 1.3 | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan obligation, fair value | ' | ' | ' | ' | ' | ' | ' | $0.20 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Detail
Employee Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Total recognized - other comprehensive (income) loss | ($29) | ($15.10) | $22.60 |
Pension Plans | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Service cost | 16.3 | 15.2 | 14.7 |
Interest cost | 4 | 4.1 | 3.9 |
Expected return on assets | -6.7 | -5.9 | -4.2 |
Prior service cost | 0.1 | 0.1 | 0.1 |
Loss (gain) | 0.7 | 1.2 | 1 |
Settlement loss | ' | 2.3 | ' |
Net Periodic Benefit Cost | 14.4 | 17 | 15.5 |
Prior service credit | ' | ' | -0.1 |
Net (gain) loss | -18.4 | -2.1 | 7.7 |
Amortizations | -0.8 | -3.6 | -1.1 |
Total recognized - other comprehensive (income) loss | -19.2 | -5.7 | 6.5 |
Post-retirement Benefits | ' | ' | ' |
Schedule of Employee Benefit Plans [Line Items] | ' | ' | ' |
Service cost | 3.3 | 3.9 | 3.7 |
Interest cost | 5.8 | 7.2 | 7.1 |
Prior service cost | -3.6 | ' | ' |
Net Periodic Benefit Cost | 5.5 | 11.1 | 10.8 |
Prior service credit | ' | -28.9 | ' |
Net (gain) loss | -30.7 | 3.8 | 18.9 |
Amortizations | 3.6 | ' | ' |
Total recognized - other comprehensive (income) loss | ($27.10) | ($25.10) | $18.90 |
WeightedAverage_Actuarial_Assu
Weighted-Average Actuarial Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Discount rate | 3.90% | 4.60% | 5.60% |
Rate of compensation increase (salaried) | 3.00% | 4.00% | 4.00% |
Expected return on assets | 7.00% | 7.00% | 7.00% |
Post-retirement Benefits | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Discount rate | 4.10% | 4.60% | 5.60% |
WeightedAverage_Actuarial_Assu1
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rate | 4.80% | 3.90% |
Rate of compensation increase (salaried) | 3.00% | 3.00% |
Post-retirement Benefits | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rate | 4.90% | 4.10% |
Health_Care_Costs_Trends_Detai
Health Care Costs Trends (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Effect of 1% increase on total of service and interest cost | $2.10 |
Effect of 1% increase on post-retirement benefit obligation | 23 |
Effect of 1% decrease on total of service and interest cost | -1.6 |
Effect of 1% decrease on post-retirement benefit obligation | ($18.20) |
Reconciliation_of_Changes_in_N
Reconciliation of Changes in Net Benefit Obligations and Fair Value of Plan Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans | Pension Plans | Pension Plans | Post-retirement Benefits | Post-retirement Benefits | Post-retirement Benefits | |||
Benefit Obligations: | ' | ' | ' | ' | ' | ' | ' | ' |
Net benefit obligation at beginning of year | ' | ' | $103.30 | $99.70 | $71.40 | $142.60 | $156.60 | $127 |
Service cost | ' | ' | 16.3 | 15.2 | 14.7 | 3.3 | 3.9 | 3.7 |
Interest cost | ' | ' | 4 | 4.1 | 3.9 | 5.8 | 7.2 | 7.1 |
Plan Amendments | -28.9 | ' | ' | ' | ' | ' | -28.9 | ' |
Settlements | ' | ' | ' | -18.8 | ' | ' | ' | ' |
Benefits paid | ' | ' | -0.8 | -0.4 | -0.3 | -0.3 | ' | ' |
Actuarial (gain) loss | ' | 17.9 | -16.9 | 3.5 | 9.9 | -30.7 | 3.8 | 18.8 |
Net benefit obligation at end of year | ' | ' | 105.9 | 103.3 | 99.7 | 120.7 | 142.6 | 156.6 |
Fair Value of Plan Assets: | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | ' | ' | 89.4 | 83.4 | 54.9 | ' | ' | ' |
Actual return on plan assets | ' | ' | 8.2 | 11.5 | 6.6 | ' | ' | ' |
Employer contributions | ' | ' | 11.8 | 13.7 | 22.2 | 0.3 | ' | ' |
Settlements | ' | ' | ' | -18.8 | ' | ' | ' | ' |
Benefits paid | ' | ' | -0.8 | -0.4 | -0.3 | -0.3 | ' | ' |
Fair value of plan assets at end of year | ' | ' | 108.6 | 89.4 | 83.4 | ' | ' | ' |
Net Funded Status | ' | ' | $2.70 | ($13.90) | ($16.30) | ($120.70) | ($142.60) | ($156.60) |
Fair_Value_of_Plan_Assets_by_A
Fair Value of Plan Assets by Asset Category (Detail) (Quoted Prices in Active Markets for Identical Assets (Level 1), USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair Value of Plan Assets | $108.60 | $89.40 |
Percentage of plan assets | 100.00% | 100.00% |
Cash and Cash Equivalents | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair Value of Plan Assets | 3.6 | 3.6 |
Percentage of plan assets | 3.00% | 4.00% |
Diversified equity Securities | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair Value of Plan Assets | 51.5 | 41.1 |
Percentage of plan assets | 48.00% | 46.00% |
Diversified debt Securities | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair Value of Plan Assets | $53.50 | $44.70 |
Percentage of plan assets | 49.00% | 50.00% |
Plan_Asset_Allocation_Detail
Plan Asset Allocation (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Hourly Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 100.00% |
Salary Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 100.00% |
Cash and Cash Equivalents | Hourly Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 3.00% |
Cash and Cash Equivalents | Salary Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 3.00% |
Diversified equity Securities | Hourly Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 42.00% |
Diversified equity Securities | Salary Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 51.00% |
Diversified debt Securities | Hourly Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 55.00% |
Diversified debt Securities | Salary Plan | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Target allocation | 46.00% |
Amounts_Recognized_in_Balance_
Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income AOCI (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Plans | ' | ' |
Amounts Recognized in Balance Sheet: | ' | ' |
Noncurrent assets | $7.40 | ' |
Noncurrent liabilities | -4.7 | -13.9 |
Total asset (liability) | 2.7 | -13.9 |
Accumulated Other Comprehensive (Loss) Income: | ' | ' |
Prior service (cost) credit | -0.2 | -0.3 |
Actuarial gain (loss) | 2.7 | -16.4 |
Total | 2.5 | -16.7 |
Post-retirement Benefits | ' | ' |
Amounts Recognized in Balance Sheet: | ' | ' |
Current liabilities | -1.4 | -1.2 |
Noncurrent liabilities | -119.3 | -141.4 |
Total asset (liability) | -120.7 | -142.6 |
Accumulated Other Comprehensive (Loss) Income: | ' | ' |
Prior service (cost) credit | 25.4 | 28.9 |
Actuarial gain (loss) | 17.1 | -13.5 |
Total | $42.50 | $15.40 |
Amounts_in_Accumulated_Other_C
Amounts in Accumulated Other Comprehensive Income AOCI Expected to be Amortized and Recognized as Component of Net Periodic Benefit Cost in Two Thousand Thirteen (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension Plans | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Prior service (cost) credit | ($0.10) |
Total | -0.1 |
Post-retirement Benefits | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Prior service (cost) credit | 3.6 |
Actuarial loss | 0.8 |
Total | $4.40 |
Projected_and_Accumulated_Bene
Projected and Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans with Projected Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Hourly Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Projected benefit obligation | ' | $51.90 |
Fair value of plan assets | ' | 50.3 |
Accumulated benefit obligation | ' | 51.9 |
Fair value of plan assets | ' | 50.3 |
Salary Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Projected benefit obligation | 53.8 | 51.4 |
Fair value of plan assets | 49.1 | 39.1 |
Accumulated benefit obligation | 50.9 | 48.1 |
Fair value of plan assets | $49.10 | $39.10 |
Expected_Cash_Flows_for_Pensio
Expected Cash Flows for Pension and Post-Retirement Benefit Plans (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans | Post-retirement Benefits | |
Employer Contributions: | ' | ' |
2014 expected contributions | $9.50 | $1.40 |
Expected Benefit Payments: | ' | ' |
2014 | 2.3 | 1.4 |
2015 | 3.2 | 2.3 |
2016 | 4.2 | 3.2 |
2017 | 5 | 4.1 |
2018 | 5.8 | 5.1 |
2019-2023 | $38.90 | $34.20 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 |
For reason other than death or disability | Termination for retirement after the age of 65 | Termination Due To Death | Employee Stock Option | Employee Stock Option | Employee Stock Option | Vesting Schedule One | Vesting Schedule Two | Vesting Schedule Three | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | ||||||
D | Y | M | Minimum | Maximum | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of shares of common stock available for issuance under the 2011 Plan | ' | ' | ' | ' | 15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion ratio for each RSU upon vesting | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RSU vesting term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '2 years | '3 years | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.40 | $18.50 | ' | ' | ' |
Unrecognized compensation cost, expected period for recognition | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' |
Incentive compensation expense | ' | 1.7 | 5.5 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 0.9 | 0 | ' | ' |
Number of shares paying for withholding taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' |
Closing price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22.75 | $23.08 |
Taxes paid related to net share settlement of equity awards | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option vesting percentage on each anniversary of grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Option vesting percentage on each anniversary of grant date | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Option expiration period | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period following optionees' termination options cease to be exercisable | ' | ' | ' | ' | ' | 90 | 3 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per-share | $0.12 | $0.42 | $0.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted | ' | $9.76 | $0 | $5.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested | ' | 0.7 | 7.5 | 8.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | 58 | 24.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of shares outstanding | 106.8 | 106.8 | 77.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of shares exercisable | 103.8 | 103.8 | 76.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $4.20 | $4.20 | $0.50 | $9.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_RSU_Activity_Detail
Summary of RSU Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Non-vested Shares: | ' | ' |
Beginning balance | 1 | ' |
Granted | 0.2 | 1 |
Vested | -0.4 | ' |
Forfeited | ' | ' |
Ending balance | 0.8 | 1 |
Weighted-Average Grant-Date Fair Value | ' | ' |
Beginning balance | $20.20 | ' |
Granted | $23.31 | $20.20 |
Vested | $20.23 | ' |
Forfeited | ' | ' |
Ending balance | $20.90 | $20.20 |
Assumptions_Used_to_Calculate_
Assumptions Used to Calculate Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 51.00% | ' | 101.00% |
Expected dividend yield | 1.20% | ' | 0.00% |
Expected term (in years) | '5 years 4 months 24 days | '0 years | '3 years 7 months 6 days |
Expected forfeitures | 0.00% | ' | 0.00% |
Risk-free rate, minimum | 1.60% | ' | 0.60% |
Risk-free rate, maximum | ' | ' | 1.70% |
Option_Activity_Detail
Option Activity (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Options | ' | ' | ' | ' |
Outstanding stock options, beginning balance | 11.9 | 14.9 | 14.8 | ' |
Granted | 0.6 | ' | 0.1 | ' |
Exercised | -3.8 | -2.7 | ' | ' |
Forfeited or expired | ' | -0.3 | ' | ' |
Outstanding stock options, ending balance | 8.7 | 11.9 | 14.9 | 14.8 |
Exercisable stock options | 8.1 | 11.8 | 11.5 | 8.4 |
Weighted- Average Exercise | ' | ' | ' | ' |
Outstanding stock options | $14.01 | $13.40 | $13.42 | ' |
Granted | $23.39 | ' | $8.44 | ' |
Exercised | ' | ' | ' | ' |
Forfeited or expired | ' | ' | ' | ' |
Outstanding stock options | $15.33 | $14.01 | $13.40 | $13.42 |
Exercisable stock options | $14.79 | $14.02 | $13.37 | $13.38 |
Weighted-Average Remaining | ' | ' | ' | ' |
Outstanding as of December 31, 2013 | '4 years 3 months 18 days | '4 years 11 months 5 days | '4 years 11 months 9 days | '5 years 11 months 9 days |
Exercisable as of December 31, 2013 | '3 years 11 months 9 days | '4 years 10 months 28 days | '4 years 10 months 17 days | '5 years 10 months 2 days |
NonVested_Shares_Activity_Deta
Non-Vested Shares Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Non-vested Stock Options: | ' | ' | ' |
Beginning Balance | 0.2 | 3.4 | 6.3 |
Granted | 0.6 | ' | 0.1 |
Vested | -0.2 | -2.9 | -3 |
Forfeited | ' | -0.3 | ' |
Ending Balance | 0.6 | 0.2 | 3.4 |
Weighted-Average Grant-Date | ' | ' | ' |
Beginning Balance | $4.34 | $2.81 | $2.62 |
Granted | $9.76 | ' | $5.43 |
Vested | $3.59 | $2.58 | $2.67 |
Forfeited | ' | $4 | ' |
Ending Balance | $9.06 | $4.34 | $2.81 |
Income_Before_Income_Taxes_Det
Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
U.S. income | $259 | $204.10 | $133.80 |
Foreign income | 7.1 | 12.1 | 16.8 |
Total | $266.10 | $216.20 | $150.60 |
Provision_for_Income_Tax_Expen
Provision for Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Estimated current income taxes: | ' | ' | ' | ' |
U.S. federal | ' | $0.20 | $1.50 | ' |
Foreign | ' | 1.9 | 3.9 | 6.7 |
U.S. state and local | ' | 0.6 | 0.4 | 1.1 |
Total Current | ' | 2.7 | 5.8 | 7.8 |
Deferred income tax expense (credit), net: | ' | ' | ' | ' |
U.S. federal | ' | 87.6 | -282.5 | 37.5 |
Foreign | ' | 0.1 | 0.1 | -0.4 |
U.S. state and local | ' | 10.3 | -21.4 | 2.7 |
Total Deferred | ' | 98 | -303.8 | 39.8 |
Total income tax expense | $384.80 | $100.70 | ($298) | $47.60 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Income taxes paid | $3.80 | $10.70 | $5.80 |
Net operating loss carryforwards, federal | 88.00% | ' | ' |
Net operating loss carryforwards, state | 7.00% | ' | ' |
Minimum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating loss carryforwards, expiration year | '2027 | ' | ' |
Maximum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating loss carryforwards, expiration year | '2032 | ' | ' |
Reconciliation_of_Provision_fo
Reconciliation of Provision for Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Provision of Income Taxes [Line Items] | ' | ' | ' | ' |
Tax at U.S. statutory income tax rate | ' | $93.10 | $75.70 | $52.90 |
Foreign rate differential | ' | -0.7 | -2.6 | -2 |
Non-deductible expenses | ' | 0.8 | 4.2 | 5.6 |
Valuation allowance | ' | 1 | -384.1 | -19.2 |
State tax expense | ' | 7.3 | 5.7 | 4.4 |
Adjustment to deferred tax expense | ' | -0.3 | 2.2 | 4.3 |
Branch income taxes-not creditable | ' | ' | ' | -0.1 |
Other adjustments | ' | -0.5 | 0.9 | 1.7 |
Total income tax expense | $384.80 | $100.70 | ($298) | $47.60 |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventories | $4.60 | $4 |
Warranty accrual | 32.7 | 39.2 |
Sales allowances and rebates | 7.9 | 8 |
Deferred revenue | 24 | 24.2 |
Post-retirement health care | ' | 8 |
Intangibles | 83.6 | 112.4 |
Other accrued liabilities | 27.2 | 22 |
Unrealized loss on interest rate derivatives | 3.7 | 20 |
Operating loss carryforwards | 140.7 | 145.3 |
Stock based compensation | 12.5 | 10.6 |
Technology-related investments | 6.8 | 4.4 |
Loan fees | 0.9 | 1.5 |
Pension | ' | 5.6 |
Other | 10.4 | 13.9 |
Total Deferred tax assets | 355 | 419.1 |
Valuation allowances | -2.8 | -1.7 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | -22 | -25.8 |
Loan fees | ' | ' |
Goodwill | -280.3 | -261.1 |
Product warranty liabilities | -5.6 | -10.6 |
Pension | -0.5 | ' |
Post-retirement health care | -0.2 | ' |
Other liabilities | ' | -3.1 |
Total Deferred tax liabilities | -369.2 | -329.9 |
Net Deferred tax (liability) asset | -17 | 87.5 |
Trade Name | ' | ' |
Deferred tax liabilities: | ' | ' |
Trade name | ($60.60) | ($29.30) |
Change_in_Valuation_Allowance_
Change in Valuation Allowance and Related Considerations (Detail) (Valuation Allowance of Deferred Tax Assets, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance of Deferred Tax Assets | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Beginning Balance | $1.70 | $390.90 | $401.90 |
Additions | 1.1 | ' | ' |
Reductions | ' | -389.2 | -11 |
Ending Balance | $2.80 | $1.70 | $390.90 |
Liability_for_Unrecognized_Tax
Liability for Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ' |
Increases in unrecognized tax benefits as a result of current year activity | $2.30 |
Unrecognized Tax Benefits, Ending Balance | $2.30 |
Reconciliation_of_Net_Income_L
Reconciliation of Net Income Loss to Comprehensive Income Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $67.50 | $72.40 | $81.80 | $44.40 | $21.10 | $49.20 | $62.70 | $83.20 | $266.10 | $216.20 | $150.60 |
Foreign currency translation, before tax | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -0.7 | -11.6 |
Pension and OPEB liability adjustment, before tax | ' | ' | ' | ' | ' | ' | ' | ' | 46.4 | 26.7 | -22.6 |
Available-for-sale securities, before tax | ' | ' | ' | ' | ' | ' | ' | ' | -1.9 | -2 | 3.2 |
Total comprehensive income (loss), before tax | ' | ' | ' | ' | ' | ' | ' | ' | 305.6 | 240.2 | 119.6 |
Net income | ' | ' | ' | ' | ' | ' | -384.8 | ' | -100.7 | 298 | -47.6 |
Foreign currency translation, tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension and OPEB liability adjustment, tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -17.4 | -11.6 | ' |
Available-for-sale securities, tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 | 0.7 | ' |
Total comprehensive income (loss), tax | ' | ' | ' | ' | ' | ' | ' | ' | -117.3 | 287.1 | -47.6 |
Net income | 42.9 | 44.5 | 50.5 | 27.5 | 11.2 | 32.2 | 412.8 | 58 | 165.4 | 514.2 | 103 |
Foreign currency translation, after tax | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -0.7 | -11.6 |
Pension and OPEB liability adjustment, after tax | ' | ' | ' | ' | ' | ' | ' | ' | 29 | 15.1 | -22.6 |
Available-for-sale securities, after tax | ' | ' | ' | ' | ' | ' | ' | ' | -1.1 | -1.3 | 3.2 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $188.30 | $527.30 | $72 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income Affected by Reclassification from AOCL (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | ($1,084.90) | ($1,187.50) | ($1,208.30) |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -334.9 | -419 | -409.1 |
Income before income taxes | 67.5 | 72.4 | 81.8 | 44.4 | 21.1 | 49.2 | 62.7 | 83.2 | 266.1 | 216.2 | 150.6 |
Engineering - research and development | ' | ' | ' | ' | ' | ' | ' | ' | -97.1 | -115.1 | -116.4 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | -384.8 | ' | -100.7 | 298 | -47.6 |
Total reclassifications | 42.9 | 44.5 | 50.5 | 27.5 | 11.2 | 32.2 | 412.8 | 58 | 165.4 | 514.2 | 103 |
Reclassified from AOCL | Prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | ' | ' |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | ' | ' |
Reclassified from AOCL | Actuarial loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | ' | ' |
Engineering - research and development | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | ' | ' |
Reclassified from AOCL | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2.7 | ' | ' |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -1.1 | ' | ' |
Total reclassifications | ' | ' | ' | ' | ' | ' | ' | ' | $1.60 | ' | ' |
Recovered_Sheet4
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Rent expense | $5.70 | $5.50 | $6.60 |
Future_Payments_under_NonCance
Future Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $4.60 |
2015 | 2.6 |
2016 | 1.1 |
2017 | 0.5 |
2018 | 0.4 |
Thereafter | 1.6 |
Total | $10.80 |
Concentration_of_Risk_Addition
Concentration of Risk - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee | Employee | Employees in the U.S | Employees in the U.S | Unionized employees subject to collective bargaining agreement | Unionized employees subject to collective bargaining agreement | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Accounts Receivable | Accounts Receivable | Supplier Concentration Risk | Supplier Concentration Risk | Supplier Concentration Risk | |
Customer | Customer | Customer | Customer | Customer | Customer | Customer | Customer | |||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees | 2,800 | 2,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 90.00% | 90.00% | 60.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Collective bargaining agreement, expiration date | '2017-11 | '2017-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of significant customers | ' | ' | ' | ' | ' | ' | 3 | 3 | 3 | 3 | 3 | ' | ' | ' |
Number of significant suppliers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Customers_Accounted_for_Greate
Customers Accounted for Greater Than Ten Percent of Net Sales (Detail) (Sales Revenue, Goods, Net) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Daimler AG | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 17.00% | 13.00% | 10.00% |
Navistar Inc | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 10.00% | 11.00% | 12.00% |
Oshkosh Corporation | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 8.00% | 11.00% | 8.00% |
Customers_Accounted_for_Greate1
Customers Accounted for Greater Than Ten Percent of Accounts Receivable (Detail) (Accounts Receivable) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Daimler AG | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 15.00% | 10.00% |
A B Volvo | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 11.00% | 7.00% |
Navistar Inc | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage | 10.00% | 13.00% |
Supplier_Accounted_for_Greater
Supplier Accounted for Greater Than Ten Percent of Materials Purchased (Detail) (Supplier Concentration Risk, Linamar Corporation Inc.) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplier Concentration Risk | Linamar Corporation Inc. | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 13.00% | 13.00% | 12.00% |
Recovered_Sheet5
Certain Relationships and Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2012 | Aug. 07, 2007 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Secondary Public Offering | Fixed 7.125% Senior Notes | Lawrence E. Dewey | David S. Graziosi | Robert M. Price | |||
Fixed 7.125% Senior Notes | Fixed 7.125% Senior Notes | Fixed 7.125% Senior Notes | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Fee paid to sponsors for the services agreement | ' | $3,000,000 | ' | ' | ' | ' | ' |
Fee paid to Sponsors for terminating the services agreement | 16,000,000 | ' | ' | ' | ' | ' | ' |
Senior Notes, stated interest rate | ' | ' | ' | 7.13% | ' | ' | ' |
Senior notes held by executive officers | ' | ' | ' | ' | $100,000 | $450,000 | $150,000 |
Secondary offering of common stock | ' | ' | 23,805,000 | ' | ' | ' | ' |
Common stock, price per share | ' | ' | $21.18 | ' | ' | ' | ' |
Stock repurchased from underwriter | ' | ' | 4,700,000 | ' | ' | ' | ' |
Reconciliation_of_Numerators_a
Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $42.90 | $44.50 | $50.50 | $27.50 | $11.20 | $32.20 | $412.80 | $58 | $165.40 | $514.20 | $103 |
Weighted average shares of common stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 184.5 | 182 | 181.4 |
Dilutive effect stock-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 3.4 | 4.2 | 1.9 |
Diluted weighted average shares of common stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 187.9 | 186.2 | 183.3 |
Basic earnings per share attributable to common stockholders | $0.24 | $0.24 | $0.27 | $0.15 | $0.06 | $0.18 | $2.28 | $0.32 | $0.90 | $2.83 | $0.57 |
Diluted earnings per share attributable to common stockholders | $0.23 | $0.24 | $0.26 | $0.15 | $0.06 | $0.17 | $2.21 | $0.31 | $0.88 | $2.76 | $0.56 |
Net_Sales_by_Country_Detail
Net Sales by Country (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | $491 | $466.30 | $512.10 | $457.40 | $487 | $493.50 | $559.40 | $601.90 | $1,926.80 | $2,141.80 | $2,162.80 |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,354.30 | 1,509.60 | 1,532.70 |
CHINA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 141 | 136.4 | 93.3 |
CANADA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 88.6 | 123 | 165.6 |
GERMANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 53.9 | 39.1 | 42.9 |
UNITED KINGDOM | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 42.5 | 74.1 | 58.2 |
JAPAN | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 37 | 52 | 46.5 |
Other Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | $209.50 | $207.60 | $223.60 |
Net_LongLived_Assets_by_Countr
Net Long-Lived Assets by Country (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | $563.40 | $596.20 | $581.80 |
UNITED STATES | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 478.7 | 493.6 | 492.5 |
INDIA | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 59.9 | 76.8 | 62.1 |
HUNGARY | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 18.1 | 18.4 | 18.3 |
Other Countries | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | $6.70 | $7.40 | $8.90 |
Recovered_Sheet6
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $491 | $466.30 | $512.10 | $457.40 | $487 | $493.50 | $559.40 | $601.90 | $1,926.80 | $2,141.80 | $2,162.80 |
Gross profit | 211.4 | 206.1 | 226.1 | 198.3 | 194.2 | 224.4 | 251.9 | 283.8 | 841.9 | 954.3 | 954.5 |
Operating income | 99.6 | 111.2 | 117.7 | 81.4 | 54.1 | 91.8 | 119.6 | 154.7 | 409.9 | 420.2 | 429 |
Income before income taxes | 67.5 | 72.4 | 81.8 | 44.4 | 21.1 | 49.2 | 62.7 | 83.2 | 266.1 | 216.2 | 150.6 |
Net income | $42.90 | $44.50 | $50.50 | $27.50 | $11.20 | $32.20 | $412.80 | $58 | $165.40 | $514.20 | $103 |
Basic earnings per share | $0.24 | $0.24 | $0.27 | $0.15 | $0.06 | $0.18 | $2.28 | $0.32 | $0.90 | $2.83 | $0.57 |
Diluted earnings per share | $0.23 | $0.24 | $0.26 | $0.15 | $0.06 | $0.17 | $2.21 | $0.31 | $0.88 | $2.76 | $0.56 |
Recovered_Sheet7
Quarterly Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' |
Income tax (expense) benefit | $384.80 | $100.70 | ($298) | $47.60 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Revolving Credit Facility, USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 15, 2014 |
In Millions, unless otherwise specified | Amendment No. 9 | Subsequent Event | |
Amendment No. 9 | |||
Subsequent Event [Line Items] | ' | ' | ' |
Addition to revolving credit facility | ' | $90 | ' |
Senior Secured Credit Facility, maturity date | ' | 15-Feb-14 | ' |
Available revolving credit facility | $395 | ' | $465 |
Schedule_I_Parent_Company_Only
Schedule I Parent Company Only Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash | $184.70 | $80.20 | $314 | $252.20 |
Total Current Assets | 606.9 | 490.3 | ' | ' |
Investments in and advances to subsidiaries | 89.4 | 90.1 | ' | ' |
TOTAL ASSETS | 4,812.60 | 4,866 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 150.4 | 133.1 | ' | ' |
Total Current Liabilities | 387.2 | 377.8 | ' | ' |
Capital stock | 1,438.80 | 1,356.90 | 821.7 | 741.7 |
Additional paid-in-capital | 1,631.80 | 1,601.50 | ' | ' |
Treasury stock | ' | -0.2 | ' | ' |
Accumulated deficit | -173.8 | -202.3 | ' | ' |
Accumulated other comprehensive loss, net of tax | -21 | -43.9 | ' | ' |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 4,812.60 | 4,866 | ' | ' |
Parent Company | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Total Current Assets | ' | ' | ' | ' |
Investments in and advances to subsidiaries | 1,438.80 | 1,356.90 | ' | ' |
TOTAL ASSETS | 1,438.80 | 1,356.90 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' |
Total Current Liabilities | ' | ' | ' | ' |
Capital stock | 1.8 | 1.8 | ' | ' |
Additional paid-in-capital | 1,631.80 | 1,601.50 | ' | ' |
Treasury stock | ' | -0.2 | ' | ' |
Accumulated deficit | -173.8 | -202.3 | ' | ' |
Accumulated other comprehensive loss, net of tax | -21 | -43.9 | ' | ' |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $1,438.80 | $1,356.90 | ' | ' |
Schedule_I_Parent_Company_Only1
Schedule I Parent Company Only Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $491 | $466.30 | $512.10 | $457.40 | $487 | $493.50 | $559.40 | $601.90 | $1,926.80 | $2,141.80 | $2,162.80 |
Operating income | 99.6 | 111.2 | 117.7 | 81.4 | 54.1 | 91.8 | 119.6 | 154.7 | 409.9 | 420.2 | 429 |
Other income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | 67.5 | 72.4 | 81.8 | 44.4 | 21.1 | 49.2 | 62.7 | 83.2 | 266.1 | 216.2 | 150.6 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | -384.8 | ' | -100.7 | 298 | -47.6 |
Net income | 42.9 | 44.5 | 50.5 | 27.5 | 11.2 | 32.2 | 412.8 | 58 | 165.4 | 514.2 | 103 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 188.3 | 527.3 | 72 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity earnings of consolidated subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 165.4 | 514.2 | 103 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 165.4 | 514.2 | 103 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 165.4 | 514.2 | 103 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $165.40 | $514.20 | $103 |
Recovered_Sheet8
Schedule I Parent Company only Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $165.40 | $514.20 | $103 |
Deduct items included in net income not providing cash: | ' | ' | ' |
Net cash provided by operating activities | 453.5 | 497.5 | 469.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Net cash provided by (used in) investing activities | -81.5 | -138.7 | -55.9 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Dividends | -77.1 | -32.8 | ' |
Net cash (used in) provided by financing activities | -277.5 | -593.5 | -369.9 |
Net increase (decrease) during period | 104.5 | -233.8 | 61.8 |
Cash and cash equivalents at beginning of period | 80.2 | 314 | 252.2 |
Cash and cash equivalents at end of period | 184.7 | 80.2 | 314 |
Parent Company | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | 165.4 | 514.2 | 103 |
Deduct items included in net income not providing cash: | ' | ' | ' |
Equity in earnings in consolidated subsidiary | -165.4 | -514.2 | -103 |
Net cash provided by operating activities | ' | ' | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Investments in subsidiaries | -46.3 | -29 | ' |
Dividends | 77.1 | 32.8 | ' |
Net cash provided by (used in) investing activities | 30.8 | 3.8 | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Capital contributions | 46.3 | 29 | ' |
Dividends | -77.1 | -32.8 | ' |
Net cash (used in) provided by financing activities | -30.8 | -3.8 | ' |
Net increase (decrease) during period | ' | ' | ' |
Cash and cash equivalents at beginning of period | ' | ' | ' |
Cash and cash equivalents at end of period | ' | ' | ' |