Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 14, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Knowles Corp | ||
Entity Central Index Key | 1,587,523 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 1,359,000,000 | ||
Entity Common Stock, Shares Outstanding | 90,216,613 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Revenues | $ 826.9 | $ 744.2 | $ 755.7 | |
Cost of goods sold | 503.9 | 452.8 | 458.2 | |
Tangible Asset Impairment Charges | 0 | 1.4 | 0.3 | |
Restructuring charges - cost of goods sold | 0.4 | 4 | 1.5 | |
Gross profit | 322.6 | 286 | 295.7 | |
Research and development expenses | 100.6 | 93.4 | 92 | |
Selling and administrative expenses | 142.5 | 126.6 | 149.9 | |
Total impairment charges | 0 | 19.9 | 0.2 | |
Restructuring charges | 1.7 | 6.2 | 8.6 | |
Operating expenses | 244.8 | 246.1 | 250.7 | |
Operating earnings | 77.8 | 39.9 | 45 | |
Interest expense, net | 16 | 20.6 | 20.4 | |
Other expense (income), net | 0.7 | (0.1) | (3.5) | |
Earnings before income taxes and discontinued operations | [1] | 61.1 | 19.4 | 28.1 |
Provision for income taxes | (4.5) | 12.9 | 8.3 | |
Earnings from continuing operations | 65.6 | 6.5 | 19.8 | |
Earnings (loss) from discontinued operations, net | 2.1 | 61.8 | (62.1) | |
Net earnings (loss) | $ 67.7 | $ 68.3 | $ (42.3) | |
Earnings per share: | ||||
Per Share - Basic | $ 0.73 | $ 0.07 | $ 0.22 | |
Per Share - Diluted | 0.72 | 0.07 | 0.22 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.02 | 0.68 | (0.69) | |
Per Share - Basic | 0.75 | 0.76 | (0.48) | |
Per Share - Diluted | $ 0.74 | $ 0.75 | $ (0.47) | |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | [2] | 90,050,051 | 89,329,794 | 88,667,098 |
Diluted (in shares) | [2] | 91,194,747 | 90,490,007 | 89,182,967 |
[1] | Years Ended December 31, (in millions) 2018 2017 2016 Revenues: Audio $ 682.2 $ 637.4 $ 661.9 Precision Devices 144.7 106.8 93.8 Total revenues $ 826.9 $ 744.2 $ 755.7 Earnings from continuing operations before interest and income taxes: Audio $ 105.7 $ 76.1 $ 88.8 Precision Devices 27.5 19.2 12.4 Total segments 133.2 95.3 101.2 Corporate expense / other 56.1 55.3 52.7 Interest expense, net 16.0 20.6 20.4 Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Depreciation and amortization: Audio $ 41.5 $ 45.2 $ 61.4 Precision Devices 7.8 5.6 4.3 Corporate 3.1 3.0 3.3 Total $ 52.4 $ 53.8 $ 69.0 Capital expenditures: Audio $ 68.2 $ 43.6 $ 27.8 Precision Devices 10.8 5.4 3.1 Corporate 1.1 0.5 1.3 Total $ 80.1 $ 49.5 $ 32.2 Research and development: Audio $ 94.5 $ 89.0 $ 89.2 Precision Devices 5.8 4.2 2.7 Corporate 0.3 0.2 0.1 Total $ 100.6 $ 93.4 $ 92.0 | |||
[2] | Years Ended December 31, 2018 2017 2016 Revenues $ 826.9 $ 744.2 $ 755.7 Cost of goods sold 503.9 452.8 458.2 Impairment charges — 1.4 0.3 Restructuring charges - cost of goods sold 0.4 4.0 1.5 Gross profit 322.6 286.0 295.7 Research and development expenses 100.6 93.4 92.0 Selling and administrative expenses 142.5 126.6 149.9 Impairment charges — 19.9 0.2 Restructuring charges 1.7 6.2 8.6 Operating expenses 244.8 246.1 250.7 Operating earnings 77.8 39.9 45.0 Interest expense, net 16.0 20.6 20.4 Other expense (income), net 0.7 (0.1 ) (3.5 ) Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations 65.6 6.5 19.8 Earnings (loss) from discontinued operations, net 2.1 61.8 (62.1 ) Net earnings (loss) $ 67.7 $ 68.3 $ (42.3 ) Earnings per share from continuing operations: Basic $ 0.73 $ 0.07 $ 0.22 Diluted $ 0.72 $ 0.07 $ 0.22 Earnings (loss) per share from discontinued operations: Basic $ 0.02 $ 0.69 $ (0.70 ) Diluted $ 0.02 $ 0.68 $ (0.69 ) Net earnings (loss) per share: Basic $ 0.75 $ 0.76 $ (0.48 ) Diluted $ 0.74 $ 0.75 $ (0.47 ) Weighted-average common shares outstanding: Basic 90,050,051 89,329,794 88,667,098 Diluted 91,194,747 90,490,007 89,182,967 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 67.7 | $ 68.3 | $ (42.3) |
Other comprehensive earnings (loss), net of tax | |||
Foreign currency translation | (9.9) | 27.1 | 0.8 |
Employee benefit plans: | |||
Actuarial gains (losses) arising during period | (0.7) | 0.7 | (5.6) |
Amortization or settlement of actuarial losses and prior service costs | 0.5 | 0.6 | 0.5 |
Net change in employee benefit plans | (0.2) | 1.3 | (5.1) |
Changes in fair value of cash flow hedges: | |||
Unrealized net gains (losses) arising during period | (2) | 3.4 | (2.5) |
Net losses reclassified into earnings | 1.1 | 0.3 | 0.9 |
Total cash flow hedges | (0.9) | 3.7 | (1.6) |
Other comprehensive earnings (loss), net of tax | (11) | 32.1 | (5.9) |
Comprehensive earnings (loss) | $ 56.7 | $ 100.4 | $ (48.2) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 73,500,000 | $ 111,700,000 |
Receivables, net of allowances of $0.7 and $1.5 | 140,300,000 | 137,700,000 |
Inventories, net | 140,100,000 | 125,600,000 |
Prepaid and other current assets | 11,100,000 | 19,900,000 |
Total current assets | 365,000,000 | 394,900,000 |
Property, plant, and equipment, net | 211,700,000 | 183,000,000 |
Goodwill | 887,900,000 | 884,900,000 |
Intangible assets, net | 56,700,000 | 53,500,000 |
Other assets and deferred charges | 26,600,000 | 31,800,000 |
Disposal Group, Including Discontinued Operation, Assets | 0 | 1,700,000 |
Total assets | 1,547,900,000 | 1,549,800,000 |
Current liabilities: | ||
Accounts payable | 77,200,000 | 85,600,000 |
Accrued compensation and employee benefits | 40,200,000 | 31,200,000 |
Other accrued expenses | 20,100,000 | 28,200,000 |
Federal and other taxes on income | 4,300,000 | 6,600,000 |
Total current liabilities | 141,800,000 | 151,600,000 |
Long-term debt | 158,100,000 | 192,600,000 |
Deferred income taxes | 2,100,000 | 0 |
Other liabilities | 34,300,000 | 67,900,000 |
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 5,600,000 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Preferred stock - $0.01 par value; 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock - $0.01 par value; 400,000,000 shares authorized; 89,491,471 and 88,737,284 shares issued and outstanding at December 31, 2017 and 2016, respectively | 900,000 | 900,000 |
Additional paid-in capital | 1,545,900,000 | 1,523,100,000 |
Accumulated deficit | (224,200,000) | (291,900,000) |
Accumulated other comprehensive loss | (111,000,000) | (100,000,000) |
Total stockholders' equity | 1,211,600,000 | 1,132,100,000 |
Total equity | 1,211,600,000 | 1,132,100,000 |
Total liabilities and stockholders' equity | $ 1,547,900,000 | $ 1,549,800,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 0.6 | $ 0.7 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 90,212,779 | 89,491,471 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2015 | $ 1,006.7 | $ 0.9 | $ 1,449.9 | $ (317.9) | $ (126.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | (42.3) | (42.3) | |||
Other Comprehensive Income (Loss), Net of Tax | (5.9) | (5.9) | |||
Stock-based compensation expense | 21.5 | 21.5 | |||
Tax on restricted stock unit vesting | (1.5) | (1.5) | |||
Purchase of convertible note hedges | (44.5) | ||||
Issuance of warrants | 39.1 | 39.1 | |||
Equity component of the convertible notes issuance, net | 35.3 | 35.3 | |||
Balance at Dec. 31, 2016 | 1,008.4 | 0.9 | 1,499.8 | (360.2) | (132.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | 68.3 | 68.3 | |||
Other Comprehensive Income (Loss), Net of Tax | 32.1 | 32.1 | |||
Stock-based compensation expense | 25.1 | 25.1 | |||
Tax on restricted stock unit vesting | (5.1) | (5.1) | |||
Common stock issued for exercise of stock options | 3.3 | 3.3 | |||
Balance at Dec. 31, 2017 | 1,132.1 | 0.9 | 1,523.1 | (291.9) | (100) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | 67.7 | ||||
Other Comprehensive Income (Loss), Net of Tax | (11) | (11) | |||
Stock-based compensation expense | 27 | 27 | |||
Tax on restricted stock unit vesting | (4.7) | (4.7) | |||
Common stock issued for exercise of stock options | 0.5 | 0.5 | |||
Balance at Dec. 31, 2018 | $ 1,211.6 | $ 0.9 | $ 1,545.9 | $ (224.2) | $ (111) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating Activities | |||
Net earnings (loss) | $ 67.7 | $ 68.3 | $ (42.3) |
Adjustments to reconcile net earnings (loss) to cash from operating activities: | |||
Depreciation and amortization | 52.4 | 57.3 | 73.7 |
Stock-based compensation | 27 | 25.1 | 21.5 |
Impairment of intangibles | 0 | 16.2 | 0 |
Non-cash interest expense and amortization of debt issuance costs | 7.6 | 7.6 | 5.6 |
Gain (Loss) on Disposition of Property Plant Equipment | 0.2 | 0 | 0 |
Impairment charges on fixed and other assets | 0 | 5.5 | 0.9 |
Gain (Loss) on Disposition of Business | (1.6) | (62.3) | 25.6 |
Deferred income taxes | 8.7 | (30.1) | 4 |
Other, net | (2.8) | 4.9 | (3.2) |
Cash effect of changes in assets and liabilities (excluding effects of foreign exchange): | |||
Receivables, net | (0.3) | 2.4 | 35.9 |
Inventories, net | (15.7) | (34) | 21.9 |
Prepaid and other current assets | (1.3) | (8.4) | (1.2) |
Accounts payable | (6.3) | 4.9 | (26.6) |
Accrued compensation and employee benefits | 7.9 | (0.9) | (0.7) |
Other accrued expenses | (8.8) | 7.3 | (9.6) |
Accrued taxes | (5.1) | 0.9 | 5.3 |
Other non-current assets and non-current liabilities | (31.1) | 28.2 | (3.3) |
Net cash provided by operating activities | 98.5 | 92.9 | 107.5 |
Investing Activities | |||
Proceeds from the sale of business | 10 | 123.1 | 40.6 |
Proceeds from the sale of property, plant, and equipment | 0.1 | 0.5 | 2 |
Proceeds from the sale of investments | 0 | 0 | 2 |
Additions to property, plant, and equipment | (80.1) | (51.6) | (38.7) |
Acquisitions of business (net of cash acquired) | (18) | (2.5) | 0 |
Net cash provided by (used in) investing activities | (88) | 69.5 | 5.9 |
Financing Activities | |||
Payments under revolving credit facility | (47.7) | (185) | (132) |
Borrowings under revolving credit facility | 6 | 190.7 | 32 |
Principal payments on term loan debt | 0 | (118.5) | (166.5) |
Proceeds from issuance of convertible senior notes | 0 | 0 | 172.5 |
Proceeds from issuance of warrants | 0 | 0 | 39.1 |
Purchase of convertible note hedges | 0 | 0 | (44.5) |
Debt issuance costs | 0 | (1.7) | (6.7) |
Payment for Contingent Consideration Liability, Financing Activities | (1) | 0 | 0 |
Payments of capital lease obligations | (1.7) | (1.6) | (2.3) |
Tax on restricted stock unit vesting | (4.7) | (5.1) | (1.5) |
Net proceeds from exercise of stock-based awards | 0.5 | 3.3 | 0 |
Net cash (used in) provided by financing activities | (48.6) | (117.9) | (109.9) |
Effect of exchange rate changes on cash and cash equivalents | (0.1) | 1 | (0.6) |
Net increase in cash and cash equivalents | (38.2) | 45.5 | 2.9 |
Cash and cash equivalents at beginning of period | 111.7 | 63.4 | 61.3 |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 0 | 0 | (2.8) |
Supplemental information - cash paid during the year for: | |||
Income taxes | 18 | 13.1 | 4.2 |
Interest | $ 9 | $ 11.3 | $ 12.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Background - Knowles Corporation (NYSE:KN) is a market leader and global provider of advanced micro-acoustic, audio processing, and precision device solutions, serving the mobile consumer electronics, communications, medical, defense, aerospace, and industrial markets. The Company uses its leading position in micro-electro-mechanical systems ("MEMS") microphones and strong capabilities in audio processing technologies to optimize audio systems and improve the user experience in mobile, ear, and Internet of Things ("IoT") applications. Knowles is also the leader in acoustics components used in hearing aids and has a strong position in high-end capacitors. The Company's focus on its customers, combined with its unique technology, proprietary manufacturing techniques, rigorous testing, and global scale, enable the Company to deliver innovative solutions that optimize the user experience. References to "Knowles," "the Company," "we," "our," and "us" refer to Knowles Corporation and its consolidated subsidiaries. Our common stock began trading under the ticker symbol “KN” on the New York Stock Exchange (the “NYSE”) on March 3, 2014. On January 19, 2018, the Company acquired substantially all of the assets of Compex Corporation ("Compex"), a capacitors manufacturer. See Note 3. Acquisitions for additional information related to the transaction. On November 28, 2017, the Company completed the sale of its high-end oscillators business ("Timing Device Business"). On July 7, 2016, the Company completed the sale of its speaker and receiver product line (“Speaker and Receiver Product Line”). In accordance with Accounting Standards Codification ("ASC") 205-20, Presentation of Financial Statements - Discontinued Operations, the results of operations and related assets and liabilities for the Timing Device Business and Speaker and Receiver Product Line have been reclassified as discontinued operations for all periods presented. See Note 2. Disposed and Discontinued Operations for additional information related to the transactions. In January 2017, the Company changed its allocation of resources and internal reporting structure to facilitate delivering growth in its core business. Following these changes, the Company's two reportable segments are Audio and Precision Devices ("PD"). See Note 17. Segment Information for additional information related to the Company’s segments. Financial Statement Presentation - The Consolidated Financial Statements included in this Annual Report on Form 10-K are presented in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"). Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and disclosures. These estimates may be adjusted due to changes in future economic, industry, or customer financial conditions, as well as changes in technology or demand. Estimates are used in accounting for, among other items, allowances for doubtful accounts receivable, inventory reserves, restructuring reserves, warranty reserves, pension and post-retirement plans, stock-based compensation, corporate allocations, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets, uncertain income tax positions, changes in tax laws, and contingencies. Actual results may ultimately differ from estimates, although management does not believe such differences would materially affect the financial statements in any individual year. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the Consolidated Financial Statements in the period that they are determined. Cash and Cash Equivalents - Cash and cash equivalents include cash on hand, demand deposits, and temporary cash investments with original maturities less than three months. Allowance for Doubtful Accounts – The Company maintains allowances for estimated losses as a result of customers' inability to make required payments. Management evaluates the aging of the accounts receivable balances, the financial condition of its customers, historical trends, and the time outstanding of specific balances to estimate the amount of accounts receivable that may not be collected in the future and records the appropriate provision. Inventories – Inventories are stated at the lower of cost or net realizable value, determined on the first-in, first-out ("FIFO") basis. The value of inventory may decline as a result of surplus inventory, price reductions, or technological obsolescence. It is the Company’s policy to carry reserves against the carrying value of inventory when items have no future demand (obsolete inventory) and additionally, where inventory items on hand have demand, yet have insufficient forecasted activity to consume the entire stock within a reasonable period. It is the Company’s policy to carry reserves against the carrying value of such at-risk inventory items after considering the nature of the risk and any mitigating factors. Prepaid and Other Current Assets – Prepaid and other current assets at December 31, 2017 includes $10.0 million held in escrow related to the sale of the Timing Device Business that was received during the third quarter of 2018. The remaining balance at December 31, 2018 and 2017 is made up of prepaid insurance, supplier prepayments, prepaid licensing fees, and other miscellaneous prepaid assets, none of which are individually significant. Property, Plant, and Equipment - Property, plant, and equipment includes the historic cost of land, buildings, equipment, and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Property, plant, and equipment also includes the cost of purchased software. Expenditures for maintenance, repairs, and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and the gain or loss realized on disposition is reflected in earnings. The Company historically depreciates its assets on a straight-line basis over their estimated useful lives as follows: buildings and improvements 5 to 31.5 years; machinery and equipment 1.5 to 7 years; furniture and fixtures 2 to 5 years; vehicles 3 to 5 years; and software 3 to 5 years. Derivative Instruments - The Company uses derivative financial instruments to hedge its exposures to various risks, including interest rate and foreign currency exchange rate risk. The Company does not enter into derivative financial instruments for speculative purposes and does not have a material portfolio of derivative financial instruments. Derivative financial instruments used for hedging purposes must be designated and effective as a hedge of the identified risk exposure at inception of the contract. The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivatives is recorded as a component of other comprehensive earnings and subsequently recognized in net earnings when the hedged items impact earnings. Goodwill and Indefinite-Lived Intangible Assets - Goodwill represents the excess of purchase consideration over the fair value of the net assets of businesses acquired. Goodwill and certain other intangible assets deemed to have indefinite lives (primarily trademarks) are not amortized. Instead, goodwill and indefinite-lived intangible assets are tested for impairment at least annually, or more frequently if there are events or circumstances indicating the carrying value of individual reporting units or assets may exceed their respective fair values on a more likely than not basis. The Company performs its annual impairment assessment in the fourth quarter of each year on October 1. Recoverability of goodwill is measured at the reporting unit level. Following the sale of the Timing Device Business on November 28, 2017, the Company has three reporting units. The goodwill balances associated with the Mobile Consumer Electronics ("MCE"), Hearing Health Technologies ("HHT"), and Capacitors reporting units were $722.1 million , $137.8 million , and $28.0 million , respectively, as of December 31, 2018 . The impairment assessment compares the fair value of each reporting unit to its carrying value. Impairment is measured as the amount by which the carrying value of a reporting unit exceeds its fair value. Fair value is estimated using a discounted cash flow approach that includes the Company’s market participant assumptions, projections of future cash flows based on historical performance and future estimated results, determinations of appropriate discount rates, and other assumptions which are considered reasonable and inherent in the discounted cash flow analysis. Significant assumptions used in the assessment include forecasted revenue and terminal growth rates, profit margins, income taxes, and the Company's weighted average cost of capital. These assumptions require significant judgment and actual results may differ from estimated amounts. The fair value of all of the Company’s reporting units exceeded the carrying values by at least 50% , resulting in no goodwill impairment charges. Potential circumstances that could have a negative effect on the fair value of our reporting units include, but are not limited to, lower than forecasted growth rates or profit margins and changes in the weighted average cost of capital. A reduction in the estimated fair value of the reporting units could trigger an impairment in the future. The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and intangible assets. In testing its other indefinite-lived intangible assets for impairment, the Company uses a relief from royalty method to calculate and compare the fair value of the intangible asset to its carrying value. This method estimates the fair value of trademarks by calculating the present value of royalty income that could hypothetically be earned by licensing the trademark to a third party. Any excess of carrying value over the estimated fair value is recognized as an impairment loss. No impairment of indefinite-lived intangibles was indicated for the years ended December 31, 2018 , 2017 , or 2016 . See Note 7. Goodwill and Other Intangible Assets for additional information on goodwill and indefinite-lived intangible assets. Other Intangible and Long-Lived Assets - Other intangible assets with determinable lives consist primarily of customer relationships, unpatented technology, patents, and trademarks and are amortized over their estimated useful lives, historically ranging from 5 to 15 years. The Company relies on patents and proprietary technology, and seeks patent protection for products and production methods. The Company capitalizes external legal costs incurred in the defense of its patents when it believes that a significant, discernible increase in value will result from the defense and a successful outcome of the legal action is probable. These costs are amortized over the remaining estimated useful life of the patent, which is typically 7 to 10 years. The Company’s assessment of future economic benefit and/or the successful outcome of legal action related to patent defense involves considerable management judgment and a different outcome could result in material write-offs of the carrying value of these assets. The Company capitalized no legal costs related to the defense of its patents during the years ended December 31, 2018 , 2017 , and 2016 . Long-lived assets (including intangible assets with determinable lives) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows is produced and compared to its carrying value. If an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value as determined by an estimate of discounted future cash flows. The Company recorded no impairments during the year ended December 31, 2018 . During the years ended December 31, 2017 and 2016 , the Company recorded impairments and other charges related to its continuing operations of $21.3 million and $0.5 million , respectively. See Note 4. Impairments for additional details. Foreign Currency - Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars at year-end exchange rates. Revenue and expense items are translated using weighted-average yearly exchange rates. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are re-measured into the functional currency using end of period exchange rates or historical rates where applicable to certain balances. Gains and losses related to these re-measurements are recorded within the Consolidated Statements of Earnings as a component of Other expense (income), net. Revenue Recognition - The Company adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective (cumulative effect) transition method. Refer to the Recently Adopted Accounting Standards section below for additional information. Stock-Based Compensation – The principal awards issued under the stock-based compensation plans include stock options, restricted stock units ("RSUs"), and performance share units ("PSUs"). The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is expected to ultimately vest is generally recognized as expense on a straight-line basis, generally over the explicit service period and is included in Cost of goods sold, Research and development expenses, and Selling and administrative expenses in the Consolidated Statements of Earnings, depending on the functional area of the underlying employees. The cost related to PSUs is recognized based on the expected attainment of performance targets. Changes in estimates that impact the number of shares expected to vest are recognized prospectively through cumulative adjustments. The Company uses the Black-Scholes valuation model to estimate the fair value of stock options granted to employees. The fair value of each RSU granted is equal to the share price at the date of the grant. The fair value of each PSU is determined using a binomial model simulation. At the time of grant, the Company estimates forfeitures, based on historical experience, in order to estimate the portion of the award that will ultimately vest. See Note 13. Equity Incentive Program for additional information related to the Company’s stock-based compensation. Income Taxes - The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company offsets and presents deferred tax liabilities and assets, as well as any related valuation allowance, as a single non-current amount on the Consolidated Balance Sheets on a jurisdictional basis. The Company establishes valuation allowances for its deferred tax assets if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such assessments, significant weight is given to evidence that can be objectively verified. The assessment of the need for a valuation allowance requires considerable judgment on the part of management with respect to the benefits that could be realized from future taxable income, as well as other positive and negative factors. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax-planning strategies in making this assessment. The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments are made to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company's financial condition and operating results. The provision for income taxes includes the effects of any reserves that are believed to be appropriate, as well as the related net interest and penalties. On December 22, 2017, the U.S. bill commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform Act") was enacted, which significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The Tax Reform Act also provided for a one-time deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits ("E&P") through the year ended December 31, 2017. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act also require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company was subject to the GILTI provisions beginning in 2018. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its Consolidated Financial Statements. On December 22, 2017, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized provisional tax impacts related to deemed repatriated earnings, the change in beginning of year valuation allowance, and the benefit for the remeasurement of deferred tax assets and liabilities as of December 31, 2017. During the fourth quarter of 2018, the Company finalized its accounting for the effects of the Tax Reform Act under SAB 118. The Company recorded a $17.8 million reduction to the net transition tax liability due to the impact of an Internal Revenue Service ("IRS") approval for an entity classification received during the fourth quarter of 2018. During the third quarter of 2018, the Company recorded an uncertain tax position of $36.0 million related to consequences of the Tax Reform Act. As a result of the IRS approval for an entity classification received during the fourth quarter of 2018, the Company recognized a $36.0 million benefit related to the release of the uncertain tax position. Although the Company’s accounting for the effects of the Tax Reform Act is finalized under SAB 118, there may be future adjustments based on potential changes in the interpretation of the Tax Reform Act, its supporting regulations, and subsequent guidance that may be issued. The impact of any such adjustments, which could have a material impact on the Consolidated Financial Statements, will be recognized in the period the changes arise or the related regulations are enacted. The Company is in the process of evaluating the final regulations on Section 965, which were released by the IRS on January 15, 2019, and will recognize any related impact in the first quarter of 2019. Research and Development Costs – Research and development costs, including qualifying engineering costs, are expensed when incurred. Non-cash Investing Activities - Purchases of property, plant, and equipment included in accounts payable at December 31, 2018 , 2017 , and 2016 were $7.1 million , $8.5 million , and $1.5 million , respectively. These non-cash amounts are not reflected as outflows to Additions to property, plant, and equipment within investing activities of the Consolidated Statements of Cash Flows for the respective periods. Reclassifications - Certain amounts in prior years have been reclassified to conform to the current year presentation. Refer to the Recently Adopted Accounting Standards section below for additional information. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-14 to amend disclosure requirements related to defined benefit pension and other postretirement plans. The standard is effective for public business entities for fiscal years beginning after December 15, 2020. Early adoption is permitted and retrospective application of the guidance is required. The Company has not yet determined the impact of the standard on its disclosures or its adoption date. In February 2018, the FASB issued ASU 2018-02, which allows the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the Tax Reform Act. The standard also requires certain disclosures concerning stranded tax effects regardless of the election with respect to stranded tax effects resulting from the Tax Reform Act. The standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The standard should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effects of the Tax Reform Act were recognized. The Company has elected to reclassify the stranded tax effects resulting from the Tax Reform Act upon adoption of the standard on January 1, 2019, the impact of which will not be significant. In February 2016, the FASB issued ASU 2016-02 and issued subsequent amendments to the initial guidance within ASU 2018-01, ASU 2018-10, ASU 2018-11, and ASU 2018-20, which are collectively referred to as "ASC 842." This guidance requires a lessee to recognize a lease liability and right-of-use asset for all leases, including operating leases, with a term greater than 12 months. The guidance also provides clarification surrounding the presentation of the effects of leases in the statement of earnings. This standard is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Prior to the issuance of ASU 2018-11 in July 2018, the standard required a modified retrospective transition method under which the guidance would be applied at the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 allows entities to elect an additional transition method under which the guidance would be applied as of the adoption date. The Company will adopt the standard under this new transition method that will not require comparative period financial statements to be recast. The standard includes a number of optional practical expedients that entities may elect to apply. The Company will elect the transition package of practical expedients for leases that commenced before the adoption date, which among other things, allows the Company to carry forward historical lease classifications. The Company will also elect the practical expedient to not separate nonlease components from lease components, which may increase lease liabilities and right-of-use assets through the inclusion of payments for nonlease components such as maintenance. The Company is finalizing its evaluation of the impact of the standard on its Consolidated Financial Statements, accounting processes, internal controls, and disclosures. The impact of adoption will depend on the lease portfolio as of the transition date and the Company's accounting policy elections. The Company expects to recognize $40 million to $45 million of operating lease liabilities and $37 million to $42 million of operating lease right-of-use assets on its Consolidated Balance Sheets upon adoption of the standard. The standard is not expected to have any other material impacts on the Consolidated Financial Statements. The adoption date for the standard is January 1, 2019. Recently Adopted Accounting Standards In August 2017, the FASB issued ASU 2017-12 with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplify the application of hedge accounting guidance. The standard is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The standard requires adoption on a modified retrospective basis for hedging relationships existing as of the adoption date and on a prospective basis for the amended presentation and disclosure requirements. The Company elected to early adopt the standard as of January 1, 2018. Adoption of the standard did not result in a cumulative effect adjustment to retained earnings as of January 1, 2018 as the Company had no cumulative ineffectiveness recognized under its hedging relationships existing as of the adoption date. See Note 10. Hedging Transactions and Derivative Instruments for detail on the Company's prospective adoption of the amended presentation and disclosure requirements. The adoption of this standard had no other impact on the Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09 that provides guidance about when a change to the terms or conditions of a share based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition, or classification of an award is not the same immediately before and after a change to the terms and conditions of the award. This standard is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company prospectively adopted this guidance on January 1, 2018, which had no impact on the Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07 primarily to improve the presentation of net periodic pension and post-retirement benefit cost. The new guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of earnings separately from the service cost component and outside of any subtotal of operating income. This standard is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2018 using a retrospective approach for the presentation of net benefit cost components. For the year ended December 31, 2017, net benefit income other than service cost of $0.3 million previously presented in both the Cost of goods sold and Selling and administrative expenses lines on the Consolidated Statements of Earnings has been reclassified to the Other expense (income), net line. For the year ended December 31, 2016, net benefit income other than service cost of $0.2 million previously presented in the Cost of goods sold line on the Consolidated Statements of Earnings has been reclassified to the Other expense (income), net line. The adoption of this standard had no other impact on the Consolidated Financial Statements. See Note 15. Employee Benefit Plans for additional information related to the Company’s pension and post-retirement plans. In January 2017, the FASB issued ASU 2017-01, which requires a reporting entity to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or liabilities. This standard is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company prospectively adopted this guidance on January 1, 2018, which had no impact on the Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new guidance requires evaluation of cash receipts and payments on the basis of the nature of the underlying cash flows and provides clarity for categorization for specific transactions. This standard is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company retrospectively adopted this guidance on January 1, 2018, which had no impact on the Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, which requires a company to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This standard is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this guidance on a modified retrospective basis as of January 1, 2018, which had no impact on the Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09 and issued subsequent amendments to the initial guidance within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20, which are collectively referred to as "ASC 606." The core principal of the guidance is to provide a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. The standard is effective for annual and interim periods beginning after December 15, 2017. On January 1, 2018, the Company adopted ASC 606 using the modified retrospective (cumulative effect) transition method. Under this transition method, results for reporting periods beginning January 1, 2018 or later are presented under ASC 606, while prior period results continue to be reported in accordance with previous guidance. The Company did not recognize a cumulative effect adjustment to retained earnings as of January 1, 2018 as the impact of the standard on the Consolidated Financial Statements was not material. As described below, the analysis of contracts under ASC 606 |
Disposed and Discontinued Opera
Disposed and Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Management and the Board of Directors periodically conduct strategic reviews of the Company's businesses. On November 28, 2017, the Company completed the sale of its Timing Device Business, part of the PD segment, for $130.0 million , plus purchase price adjustments for a net amount of $135.1 million . The Company recorded a gain of $63.9 million as a result of the sale, which included $0.4 million of gain amounts reclassified from Accumulated other comprehensive loss into earnings related to currency translation adjustments. The purchase price included $10.0 million held in escrow that was received during the third quarter of 2018 and was previously recorded in the Prepaid and other current assets line on the Consolidated Balance Sheets. On July 7, 2016, the Company completed the sale of its Speaker and Receiver Product Line for $45.0 million in cash, less purchase price adjustments for a net amount received of $40.6 million . The Company recorded a loss of $25.6 million as a result of the sale, which included $26.9 million of loss amounts reclassified from Accumulated other comprehensive loss into earnings related to currency translation adjustments. The results of operations and financial positions of the Timing Device Business and Speaker and Receiver Product Line have been reclassified to discontinued operations for all periods presented as these disposals represent strategic shifts that have a major effect on the Company's results of operations. Summarized results of the Company's discontinued operations are as follows: Years Ended December 31, (in millions) 2018 2017 2016 Revenues $ — $ 92.2 $ 156.4 Cost of goods sold — 61.5 136.1 Impairment charges — 0.4 0.4 Restructuring charges - cost of goods sold — 0.1 8.9 Gross profit — 30.2 11.0 Research and development expenses — 7.7 15.1 Selling and administrative expenses — 18.5 26.9 Restructuring charges — 0.2 3.4 Operating expenses — 26.4 45.4 Other (income) expense, net (0.2 ) 1.3 (0.9 ) (Gain) loss on sale of business (1) (1.6 ) (62.3 ) 25.6 Earnings (loss) from discontinued operations before taxes (2) 1.8 64.8 (59.1 ) (Benefit from) provision for income taxes (0.3 ) 3.0 3.0 Earnings (loss) from discontinued operations, net of tax $ 2.1 $ 61.8 $ (62.1 ) (1) The Company recorded a change in estimated purchase price adjustments related to the Timing Device Business of $1.8 million during the third quarter of 2018. (2) The Company's policy is to not allocate interest expense to discontinued operations unless it is directly attributable to the operations. The results of operations of the Timing Device Business and Speaker and Receiver Product Line did not have any such interest expense in the periods presented. Assets and liabilities of discontinued operations are summarized below: (in millions) December 31, 2017 Assets of discontinued operations: Receivables $ 1.2 Prepaid and other current assets 0.5 Total current assets 1.7 Total assets (1) $ 1.7 Liabilities of discontinued operations: Accounts payable $ 0.1 Other current liabilities 5.5 Total current liabilities 5.6 Total liabilities (1) $ 5.6 (1) In connection with the sale of the Timing Device Business, the Company retained certain obligations related to employees of the Timing Device Business. As these arrangements were settled during the year ended December 31, 2018, there were no assets and liabilities of discontinued operations as of December 31, 2018. The following table presents the depreciation, amortization, and capital expenditures related to discontinued operations: Years Ended December 31, (in millions) 2017 2016 Depreciation $ 2.3 $ 3.3 Amortization of intangible assets 1.2 1.4 Capital expenditures 2.1 6.5 There was no depreciation, amortization of intangible assets, or capital expenditures related to discontinued operations during the year ended December 31, 2018. There were no capital expenditures in accounts payable at December 31, 2018 or 2017 . Capital expenditures included in accounts payable at December 31, 2016 were $0.1 million |
Acquisition Acquisition
Acquisition Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Years Ended December 31, (in millions, except share and per share amounts) 2018 2017 Revenues from continuing operations: As reported $ 826.9 $ 744.2 Pro-forma 827.5 755.7 Earnings from continuing operations: As reported $ 65.6 $ 6.5 Pro-forma 66.3 7.4 Basic earnings per share from continuing operations: As reported $ 0.73 $ 0.07 Pro-forma 0.74 0.08 Diluted earnings per share from continuing operations: As reported $ 0.72 $ 0.07 Pro-forma 0.73 0.08 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventories, net | 5. Inventories, net The following table details the major components of inventories, net: (in millions) December 31, 2018 December 31, 2017 Raw materials $ 70.8 $ 65.9 Work in progress 30.2 21.3 Finished goods 65.3 60.8 Subtotal 166.3 148.0 Less reserves (26.2 ) (22.4 ) Total $ 140.1 $ 125.6 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 6. Property, Plant, and Equipment, net The following table details the major components of property, plant, and equipment, net: (in millions) December 31, 2018 December 31, 2017 Land $ 7.5 $ 7.7 Buildings and improvements 102.3 103.2 Machinery, equipment, and other 499.9 441.1 Subtotal 609.7 552.0 Less accumulated depreciation (398.0 ) (369.0 ) Total $ 211.7 $ 183.0 Depreciation expense totaled $45.9 million , $46.5 million , and $50.8 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. There were no fixed asset impairments recorded during the year ended December 31, 2018 . The Company recorded fixed asset impairments of $5.1 million and $0.5 million for the years ended December 31, 2017 and 2016 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | 8. Other Accrued Expenses and Other Liabilities The following table details the major components of other accrued expenses: (in millions) December 31, 2018 December 31, 2017 Sales volume rebates $ 4.7 $ 4.7 Accrued short-term capital leases 2.4 2.5 Accrued taxes other than income taxes 2.1 2.4 Accrued insurance 1.6 1.9 Restructuring and exit costs 0.9 4.8 Hedging liability 0.6 — Warranty 0.5 2.1 Other (1) 7.3 9.8 Total $ 20.1 $ 28.2 (1) Represents accrued commissions (non-employee) and other miscellaneous accruals, none of which are individually significant. The following table details the major components of other liabilities: (in millions) December 31, 2018 December 31, 2017 Deferred compensation, including defined benefit plans $ 17.0 $ 18.7 Long-term capital leases 10.1 12.3 Unrecognized tax benefits 3.5 6.5 Restructuring and exit costs 0.2 0.3 Transition tax liability (1) — 25.9 Other 3.5 4.2 Total $ 34.3 $ 67.9 (1) See Note 1. Summary of Significant Accounting Policies for additional information. Warranty Accruals Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted for new claims. The changes in the carrying amount of product warranties were as follows: Years Ended December 31, (in millions) 2018 2017 Beginning balance, January 1 $ 2.1 $ 1.0 Provision for warranties 0.4 2.8 Settlements made (1.9 ) (1.3 ) Other adjustments, including currency translation (0.1 ) (0.4 ) Ending balance, December 31 $ 0.5 $ 2.1 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | 11. Borrowings Borrowings (net of debt issuance costs, debt discount, and amortization) consist of the following: (in millions) December 31, 2018 December 31, 2017 3.25% convertible senior notes $ 149.1 $ 141.9 Revolving credit facility 9.0 50.7 Total 158.1 192.6 Less current maturities (1) — — Total long-term debt $ 158.1 $ 192.6 (1) There are no required principal payments due under the 3.25% convertible senior notes or the revolving credit facility until maturities in November 2021 and October 2022, respectively. Total debt principal payments over the next five years are as follows: (in millions) 2019 2020 2021 2022 2023 Debt principal payments $ — $ — $ 172.5 $ 9.0 $ — 3.25% Convertible Senior Notes Due November 1, 2021 In May 2016, the Company issued $172.5 million aggregate principal amount of 3.25% convertible senior notes due November 1, 2021 (the "Notes"), unless earlier repurchased by the Company or converted pursuant to their terms. Interest is payable semiannually in arrears on May 1 and November 1 of each year and commenced on November 1, 2016. The Notes are governed by an Indenture (the "Indenture") between the Company, as issuer, and U.S. Bank National Association as trustee. Upon conversion, the Company will pay or deliver cash, shares of the Company's common stock, or a combination of cash and shares of common stock, at the Company's election. The initial conversion rate is 54.2741 shares of common stock per $1,000 principal amount of Notes. The initial conversion price is $18.4250 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the Indenture), the Company may be required, in certain circumstances, to increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change. Prior to the close of business on the business day immediately preceding August 1, 2021, the Notes will be convertible only under the following circumstances: = during any calendar quarter and only during such calendar quarters, if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; = during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or = upon the occurrence of specified corporate events. On or after August 1, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. A s of December 31, 2018 , no event has occurred that would permit the conversion of the Notes. The Notes are the Company’s senior unsecured obligations. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Notes as a whole. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the term of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Notes issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Issuance costs attributable to the liability component, totaling $5.0 million , are being amortized to interest expense over the term of the Notes, and issuance costs attributable to the equity component, totaling $1.3 million , were netted with the equity component in stockholders' equity. Additionally, the Company recorded a deferred tax asset of $0.5 million on a portion of the equity component transaction costs which are deductible for tax purposes and immediately recorded a valuation allowance against this deferred tax asset. The Notes consist of the following: (in millions) December 31, 2018 December 31, 2017 Liability component: Principal $ 172.5 $ 172.5 Less debt issuance costs and debt discount, net of amortization (23.4 ) (30.6 ) Total 149.1 141.9 Less current maturities (1) — — Long-term portion $ 149.1 $ 141.9 Equity component (2) $ 29.9 $ 29.9 (1) There are no required principal payments due until maturity in November 2021. (2) Recorded in the Consolidated Balance Sheets within additional paid-in capital, inclusive of the $1.3 million of issuance costs in equity. The total estimated fair value of the Notes at December 31, 2018 was $178.2 million . The fair value was determined based on the closing trading price of the Notes as of the last trading day of 2018 . The following table sets forth total interest expense recognized related to the Notes: Years Ended December 31, (in millions) 2018 2017 2016 3.25% coupon $ 5.6 $ 5.6 $ 3.7 Amortization of debt issuance costs 0.9 0.9 0.6 Amortization of debt discount 6.3 5.8 3.6 Total $ 12.8 $ 12.3 $ 7.9 Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions (the “Note Hedges”) with respect to its common stock. In the second quarter of 2016, the Company paid an aggregate amount of $44.5 million for the Note Hedges. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are intended to offset the potential dilution upon conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount upon conversion of the Notes in the event that the market value per share of the Company's common stock, as measured under the Note Hedges, is greater than the strike price of the Note Hedges, which initially corresponds to the initial conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes. The Note Hedges are separate transactions entered into by the Company, and are not part of the Notes or the Warrants, and have been accounted for as part of additional paid-in capital. Holders of the Notes do not have any rights with respect to the Note Hedges. Warrants In addition to the Note Hedges, in the second quarter of 2016, the Company entered into warrant transactions, whereby the Company sold warrants to acquire shares of the Company's common stock at a strike price of $21.1050 per share (the “Warrants”). The Company received aggregate proceeds of $39.1 million from the sale of the Warrants. If the market price per share of the Company's common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants could have a dilutive effect on the Company's common stock, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. The Warrants are separate transactions entered into by the Company, and are not part of the Notes or the Note Hedges, and have been accounted for as part of additional paid-in capital. Holders of the Notes and Note Hedges do not have any rights with respect to the Warrants. Revolving Credit Facility Revolving credit facility borrowings consist of the following: (in millions) December 31, 2018 December 31, 2017 $400.0 million revolving credit facility due October 2022 $ 9.0 $ 50.7 Less current maturities (1) — — Long-term portion $ 9.0 $ 50.7 (1) There are no required principal payments due until maturity in October 2022. On October 11, 2017, the Company entered into a Revolving Credit Facility Agreement (the "New Credit Facility"). The New Credit Facility contains a five -year senior secured revolving credit facility providing for borrowings in an aggregate principal amount at any time outstanding not to exceed $400.0 million . Up to $ 100.0 million of the New Credit Facility will be available in Euro, Sterling, and other currencies requested by the Company and agreed to by each Lender and up to $50.0 million of the New Credit Facility will be made available in the form of letters of credit denominated in any currencies agreed by the issuing bank. The New Credit Facility serves as refinancing of indebtedness and terminates the Company's Amended and Restated Credit Agreement dated as of January 27, 2014, as amended and restated as of December 31, 2014 and supplemented from time to time (“Prior Credit Facilities”). At any time during the term of the New Credit Facility, the Company will be permitted to increase the commitments under the New Credit Facility or to establish one or more incremental term loan facilities under the New Credit Facility in an aggregate principal amount not to exceed $200.0 million for all such incremental facilities. Commitments under the New Credit Facility will terminate, and loans outstanding thereunder will mature, on October 11, 2022; provided, that if all the Company’s Notes have not been repaid, refinanced, and/or converted to common stock of the Company by April 30, 2021, then the commitments under the New Credit Facility will terminate, and the loans outstanding thereunder will mature, on such earlier date. The interest rates under the New Credit Facility will be, at the Borrowers’ option (1) LIBOR (or, in the case of borrowings under the New Credit Facility denominated in Euro, EURIBOR) plus the rates per annum determined from time to time based on the total leverage ratio of the Company as of the end of and for the most recent period of four fiscal quarters for which financial statements have been delivered (the “Applicable Rate”); or (2) in the case of borrowings denominated in U.S. dollars, alternate base rate (“ABR”); provided, however, that any swingline borrowings shall bear interest at the rate applicable to ABR borrowings or, prior to the purchase of participations in such borrowings by the Lenders, at such other rate as shall be agreed between the Company and the swingline lender. The interest rate under the New Credit Facility is variable based on LIBOR at the time of the borrowing and the Company’s leverage as measured by a total indebtedness to Consolidated EBITDA ratio. Based upon the Company’s total indebtedness to Consolidated EBITDA ratio, the Company’s borrowing rate could range from LIBOR + 1.25% to LIBOR + 2.25% . In addition, a commitment fee accrues on the average daily unused portion of the New Credit Facility at a rate of 0.20% to 0.35% . The New Credit Facility includes requirements, to be tested quarterly, that the Company maintains (i) a minimum ratio of Consolidated EBITDA to consolidated interest expense of 3.25 to 1.0, (the "Interest Coverage Ratio"), (ii) a maximum ratio of Consolidated total indebtedness to Consolidated EBITDA of 3.75 to 1.0 (the "Leverage Ratio"), and (iii) a maximum ratio of senior secured indebtedness to Consolidated EBITDA of 3.25 to 1.0 (the "Senior Secured Leverage Ratio"). For these ratios, Consolidated EBITDA and consolidated interest expense are calculated using the most recent four consecutive fiscal quarters in a manner defined in the New Credit Facility. At December 31, 2018 , the Company was in compliance with these covenants and it expects to remain in compliance with all of its debt covenants over the next twelve months. On January 27, 2014, the Company entered into a $200.0 million five -year senior secured revolving credit facility as well as a $300.0 million five -year senior secured term loan facility pursuant to a Credit Agreement (the "Original Credit Agreement"), which are referred to collectively as the Prior Credit Facilities. On December 31, 2014, the Company amended its Prior Credit Facilities to (i) increase the amount of the revolving credit facility in the Original Credit Agreement to $350.0 million from $200.0 million , (ii) increase the amount of the letter of credit subfacility in the Original Credit Agreement to $50.0 million from $25.0 million , (iii) eliminate the swing line subfacility in the amount of up to $35.0 million in the Original Credit Agreement, and (iv) reduce to $100.0 million from $250.0 million the amount of additional incremental revolving or term loans in the Original Credit Agreement. All other terms and conditions of the Prior Credit Facilities remained essentially the same. On February 9, 2016, the Company entered into a third amendment to its Prior Credit Facilities that includes a permanent reduction by the Company of the aggregate revolving commitment under the Prior Credit Facilities from $350.0 million to $300.0 million . On April 27, 2016, the Company entered into a fourth amendment to its Prior Credit Facilities to permit the Company to execute the offering of the Notes and the related transactions. The weighted-average interest rate on the Company's borrowings under the New Credit Facility and Prior Credit Facilities was 3.56% , 3.58% , and 3.23% for the years ended December 31, 2018 , 2017 , and 2016, respectively. The weighted-average interest rate on the Company's borrowings under the New Credit Facility and Prior Credit Facilities for the years ended December 31, 2018 , 2017 , and 2016 includes interest expense related to the monthly interest rate swap settlements that ended in July 2018. The weighted-average commitment fee on the revolving lines of credit was 0.24% , 0.36% , and 0.39% for the years ended December 31, 2018 , 2017 , and 2016, respectively. Interest expense and interest income for the years ended December 31, 2018 , 2017 , and 2016 were as follows: Years Ended December 31, (in millions) 2018 2017 2016 Interest expense (1) $ 16.6 $ 20.8 $ 20.5 Interest income (0.6 ) (0.2 ) (0.1 ) Interest expense, net $ 16.0 $ 20.6 $ 20.4 (1) During 2017, the Company wrote off $0.4 million of debt issuance costs related to the Prior Credit Facilities to interest expense upon entering into the New Credit Facility. During 2016, the Company wrote off $0.7 million of debt issuance costs to interest expense in connection with the third amendment to its Prior Credit Facilities. See Note 10. Hedging Transactions and Derivative Instruments |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of earnings before income taxes and discontinued operations were: Years Ended December 31, (in millions) 2018 2017 2016 Domestic $ (34.1 ) $ 402.7 $ (51.1 ) Foreign 95.2 (383.3 ) 79.2 Total earnings before income taxes and discontinued operations $ 61.1 $ 19.4 $ 28.1 Income tax (benefit) expense for the years ended December 31, 2018 , 2017 , and 2016 is comprised of the following: Years Ended December 31, (in millions) 2018 2017 2016 Current: U.S. Federal $ (25.0 ) $ 28.9 $ — State and local 0.1 0.1 0.1 Foreign 11.6 11.7 6.8 Total current tax (benefit) expense $ (13.3 ) $ 40.7 $ 6.9 Deferred: U.S. Federal $ 7.8 $ (26.8 ) $ 0.8 State and local 0.2 — 0.2 Foreign 0.8 (1.0 ) 0.4 Total deferred tax expense (benefit) 8.8 (27.8 ) 1.4 Total income tax (benefit) expense $ (4.5 ) $ 12.9 $ 8.3 The reconciliation of the U.S. Federal income tax rate to the Company’s effective income tax rate was as follows: Years Ended December 31, 2018 2017 2016 U.S. Federal income tax rate 21.0 % 35.0 % 35.0 % State and local taxes, net of Federal income tax benefit 0.4 % (0.2 )% 1.1 % Foreign operations tax effect 4.0 % 27.0 % (22.5 )% Research and experimentation tax credits (5.0 )% (11.6 )% (6.6 )% Valuation allowance 22.9 % 60.8 % 69.6 % Tax contingencies (4.3 )% 6.6 % (0.6 )% Tax holiday (24.3 )% (78.0 )% (64.2 )% Foreign taxes 0.9 % (5.0 )% 2.8 % Non-deductible and non-taxable interest 1.4 % (0.8 )% 3.2 % Stock-based compensation 3.1 % 9.3 % 9.6 % Other, principally non-tax deductible items (1) 3.2 % 13.5 % 1.9 % Transition tax (28.9 )% 89.7 % — % Tax reform (1.7 )% (85.3 )% — % Prior period items (0.1 )% 5.5 % 0.2 % Effective income tax rate (7.4 )% 66.5 % 29.5 % (1) Includes income tax expense related to the Malaysian tax consequences of the intra-entity intellectual property sale between the U.S. and Malaysia that increases the effective income tax rate by 18.5% for the year ended December 31, 2017. The Company’s effective tax rate is favorably impacted by two tax holidays granted to us by Malaysia effective through December 31, 2021. These tax holidays are subject to the Company’s satisfaction of certain conditions, including investment or sales thresholds, which the Company expects to maintain. During 2016, the Company applied for and received final approval to modify the terms of its main tax holiday in Malaysia, reducing the rate to 7.2% versus the statutory rate of 24.0% , effective January 1, 2017 through December 31, 2021. If the Company fails to satisfy such conditions, the Company’s effective tax rate may be significantly adversely impacted. The continuing operations benefit of these incentives for the years ended December 31, 2018 , 2017 , and 2016 is estimated to be $13.3 million , $13.8 million , and $16.3 million , respectively. The continuing operations benefit of the tax holidays on a per share basis for the years ended December 31, 2018 , 2017 , and 2016 was $0.15 , $0.15 , and $0.18 , respectively. The components of the Company’s deferred tax assets and liabilities included the following: (in millions) December 31, 2018 December 31, 2017 Deferred tax assets: Accrued compensation, principally post-retirement, and other employee benefits $ 15.1 $ 13.7 Accrued expenses, principally for state income taxes, interest, and warranty 4.6 5.9 Net operating loss and other carryforwards 155.9 115.6 Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes 3.9 3.6 Convertible Note Hedges 5.7 7.3 Plant and equipment, principally due to differences in depreciation 9.4 9.6 Total gross deferred tax assets 194.6 155.7 Valuation allowance (131.2 ) (99.7 ) Total deferred tax assets $ 63.4 $ 56.0 Deferred tax liabilities: Intangible assets, principally due to different tax and financial reporting bases and amortization lives $ (8.7 ) $ (10.3 ) Debt discount on convertible notes (4.4 ) (5.7 ) Other liabilities (37.2 ) (17.6 ) Total gross deferred tax liabilities (50.3 ) (33.6 ) Net deferred tax asset $ 13.1 $ 22.4 Classified as follows in the Consolidated Balance Sheets: Other assets and deferred charges (non-current deferred tax assets) $ 15.2 $ 22.4 Deferred income taxes (non-current deferred tax liabilities) (2.1 ) — Net deferred tax asset $ 13.1 $ 22.4 The Company recorded valuation allowances of $131.2 million and $99.7 million at December 31, 2018 and 2017 , respectively, against deferred tax assets from continuing operations as the Company believes it is more likely than not that these assets will not be realized. The Company recorded a $1.0 million benefit due to the reassessment of the beginning of year valuation allowance primarily related to United Kingdom ("U.K.") operations. Management believes that it is more likely than not that the Company will realize the benefits of the remaining deferred tax assets. The amount of the deferred tax asset is considered realizable, however, it could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present, requiring that additional weight be given to subjective evidence such as our projections for growth. At December 31, 2018 , the Company had $30.8 million of Federal net operating losses that are available, of which $11.9 million will expire in the next 5 to 10 years and $18.9 million will expire in the next 10 to 20 years. There are $96.6 million of State net operating losses that are available between 2019 and 2036. There are $379.3 million of non-U.S. net operating loss carryforwards, of which $0.7 million will expire within the next 5 years, $1.9 million will expire in the next 10 to 20 years, and $376.7 million can be carried forward indefinitely. The Company has $18.7 million of U.S. federal research and development credits that begin to expire in 2020 and $14.6 million of foreign tax credits that begin to expire in 2027 . In addition, the Company has $16.8 million of state credits, of which $2.4 million will expire between 2019 and 2034 if unused, and $14.4 million can be carried forward indefinitely. The Company has not provided for deferred taxes on the undistributed earnings of its international subsidiaries totaling approximately $1.4 billion . Such earnings are reinvested in foreign jurisdictions and it is currently intended that they will continue to be reinvested indefinitely. Our Malaysian principal subsidiary is our primary source of foreign earnings and cash. Any future decision to distribute cash from this subsidiary to the U.S. should not result in a material amount of U.S. or foreign taxes. Unrecognized Tax Benefits The Company records interest and penalties associated with unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2018 and 2017 , the Company recorded a potential interest benefit of $0.3 million and $1.1 million , respectively. The Company recorded $0.3 million of potential interest expense during the year ended December 31, 2016 . There was no accrued interest at December 31, 2018. Total accrued interest at December 31, 2017 and 2016 of $0.4 million and $1.4 million , respectively, was included in Other liabilities on the Consolidated Balance Sheets. During the years ended December 31, 2018 and 2017 , the Company recorded potential penalty expense of $0.1 million and $0.2 million , respectively. Total accrued penalties at December 31, 2018 and 2017 of $0.3 million and $0.2 million , respectively, were included in Other liabilities on the Consolidated Balance Sheets. There was no recorded potential penalty expense or accrued penalties at December 31, 2016 . The Company's tax returns are routinely audited by the tax authorities in the relevant jurisdictions. For tax years before 2017, the Company is no longer subject to U.S. federal income tax examination. For tax years before 2013, the Company’s Malaysian subsidiaries are no longer subject to examination. It is reasonably possible that the gross amount of unrecognized tax benefits will decrease by $0.1 million during the next twelve months. Included in the balance of total unrecognized tax benefits at December 31, 2018 are potential benefits of $3.5 million , which if recognized, would affect the effective rate on earnings from continuing operations. Given the Company's current valuation allowance position, no benefit is expected to result from the reversal of any uncertain tax position associated with the acquired attributes. Unrecognized tax benefits at January 1, 2016 $ 12.8 Reductions for tax positions due to lapsed statutes of limitations (0.5 ) Foreign exchange fluctuations (0.5 ) Unrecognized tax benefits at December 31, 2016 $ 11.8 Additions based on tax positions related to the current year 2.6 Additions for tax positions of prior years 0.6 Reductions for tax positions due to lapsed statutes of limitations (1.3 ) Tax reform (1.5 ) Foreign exchange fluctuations 0.3 Unrecognized tax benefits at December 31, 2017 $ 12.5 Additions based on tax positions related to the current year 0.1 Additions for tax positions of prior years 0.3 Reductions for tax positions due to lapsed statutes of limitations (2.5 ) Settlements (0.3 ) Unrecognized tax benefits at December 31, 2018 $ 10.1 See Note 1. Summary of Significant Accounting Policies |
Equity Incentive Program
Equity Incentive Program | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | 13. Equity Incentive Program The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Years Ended December 31, (in millions) 2018 2017 2016 Pre-tax stock-based compensation expense Cost of goods sold $ 1.6 $ 1.8 $ 1.5 Research and development expenses 7.8 6.1 4.7 Selling and administrative expenses 17.6 16.8 14.7 Total pre-tax stock-based compensation expense 27.0 24.7 20.9 Tax benefit — — — Total stock-based compensation expense, net of tax $ 27.0 $ 24.7 $ 20.9 Compensation expense for stock-based awards is measured based on the fair value of the awards as of the date the stock-based awards are granted and adjusted to the estimated number of awards that are expected to vest. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Compensation costs for stock-based awards are amortized over their service period. Prior to the Separation in 2014, Knowles employees participated in our Former Parent's incentive stock program. Adopted in connection with the Separation, the Knowles' Corporation 2014 Equity and Cash Incentive Plan (the "Plan") provided for the conversion of certain awards granted under our Former Parent's equity incentive program to Knowles equity awards and authorized the grant of several different forms of benefits, including stock options, RSUs, PSUs, and stock-settled appreciation rights ("SSARs"). In general, each award is subject to the same terms and conditions as were in effect prior to the Separation, except that our Former Parent's performance shares converted to time-based RSUs. In addition, the Company made a grant comprised of both stock options and time-based RSUs that vest 50% on the third and fourth anniversaries from the date of the grant. The Company also made grants of both stock options and time-based RSUs that vest evenly over each of the first three years following the date of the grant. The Company elected to use the straight-line method to attribute the expense over the service period of the awards. Stock Option s and SSARs The fair value of stock options granted by the Company was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. 2018 2017 2016 Risk-free interest rate 2.59% 1.73% to 1.93% 1.04% to 1.25% Dividend yield —% —% —% Expected life (years) 4.5 4.5 4.5 Volatility 41.2% 33.2% to 38.8% 37.0% to 39.6% Fair value at date of grant $4.83 to $6.59 $5.02 to $6.73 $3.76 to $4.83 The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, stage of life, and with similar market capitalization since there is not sufficient historical volatility data for Knowles common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. It is based on the simplified method from the SEC’s safe harbor guidelines. The Company does not currently anticipate paying dividends over the expected term. The exercise price per share for the stock options granted by the Company was equal to the closing price of Knowles' stock on the NYSE on the date of the grant. The period during which options granted by the Company were exercisable was fixed by Knowles' Compensation Committee of the Board of Directors at the time of grant. Generally, stock options vest one-third on each of the first three anniversaries of the grant date and expire 7 years from the grant date. The following table summarizes the Company's SSAR and stock option activity for the year ended December 31, 2018 . SSARs Stock Options Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) (in millions, except share and per share amounts) Outstanding at December 31, 2017 850,516 $ 21.54 4,901,739 $ 18.36 Granted — — 963,692 14.34 Exercised (30,624 ) 12.26 (44,326 ) 11.02 Forfeited — — (120,458 ) 15.54 Expired (37,897 ) 22.79 (229,154 ) 21.63 Outstanding at December 31, 2018 781,995 $ 21.85 $ — 3.1 5,471,493 $ 17.64 $ 3.4 4.1 Exercisable at December 31, 2018 781,995 $ 21.85 $ — 3.1 3,517,954 $ 19.31 $ 2.2 3.5 The aggregate intrinsic value in the table above represents the difference between the Company's closing stock price on December 31, 2018 and the exercise price of each SSAR and stock option, multiplied by the number of in-the-money awards. There was no unrecognized compensation expense related to SSARs at December 31, 2018 . Unrecognized compensation expense related to stock options not yet exercisable at December 31, 2018 was $5.8 million . This cost is expected to be recognized over a weighted-average period of 1.3 years. Other information regarding the exercise of SSARs and stock options is listed below: Years Ended December 31, (in millions) 2018 2017 2016 SSARs Fair value of SSARs that are exercisable $ 1.8 $ 1.9 $ 1.9 Aggregate intrinsic value of SSARs exercised 0.1 0.2 0.1 Stock Options Cash received by Knowles for exercise of stock options 0.5 3.3 — Aggregate intrinsic value of options exercised 0.2 1.1 — RSUs The following table summarizes the Company's RSU balances for the year ended December 31, 2018 : Share units Weighted-average grant date fair value Unvested at December 31, 2017 2,202,576 $ 16.54 Granted 1,707,911 14.28 Vested (1,036,207 ) 16.95 Forfeited (427,849 ) 14.84 Unvested at December 31, 2018 2,446,431 $ 15.12 RSUs generally vest based on the passage of time. RSUs have a three year vesting schedule and vest one-third on each of the first three anniversaries of the grant date. At December 31, 2018 , $23.1 million of unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 1.3 years. PSUs In February 2018 and 2017, the Company granted PSUs to senior management. In each case, the awards will cliff vest three years following the grant date and the number of PSUs that may be earned and vest is based on the Company's revenues and stock price performance over a three year performance period. PSUs will be settled in shares of the Company's common stock. Depending on the Company's overall performance relative to revenues and stock price, the size of the PSU awards are subject to adjustment, up or down, resulting in awards at the end of the performance period that can range from 0% to 225% of the initial grant value. The Company will ratably recognize the expense over the applicable service period for each grant of PSUs and adjust the expense as appropriate. The fair value of the PSUs is determined by using a Monte Carlo simulation. The following table summarizes the Company's PSU balances for the year ended December 31, 2018 : Share units Weighted-average grant date fair value Unvested at December 31, 2017 176,000 $ 15.32 Granted 381,967 13.78 Vested — — Forfeited — — Unvested at December 31, 2018 557,967 $ 14.27 At December 31, 2018 , $6.3 million of unrecognized compensation expense related to PSUs is expected to be recognized over a weighted-average period of 1.9 years . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 14. Commitments and Contingent Liabilities From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of its business, including those related to intellectual property, which may be owned by it or others. The Company owns many patents covering products, technology, and manufacturing processes. Some of these patents have been and may continue to be challenged by others. In appropriate cases, the Company has taken and will take steps to protect and defend its patents and other intellectual property, including through the use of legal proceedings in various jurisdictions around the world. Such steps have resulted in and may continue to result in retaliatory legal proceedings, including litigation or other legal proceedings in various jurisdictions and forums around the world alleging infringement by the Company of patents owned by others. The costs of investigations and legal proceedings, particularly multi-forum litigation, relating to the enforcement and defense of the Company’s intellectual property, may be substantial. Additionally, in multi-forum disputes, the Company may incur adverse judgments with regard to certain claims in certain jurisdictions and forums while still contesting other related claims against the same opposing party in other jurisdictions and forums. Although the ultimate outcome of any legal proceeding or claim cannot be predicted with certainty, based on present information, including management’s assessment of the merits of the particular claim, the Company does not expect that any asserted or unasserted legal proceedings or claims, individually or in the aggregate, will have a material adverse effect on its cash flow, results of operations, or financial condition. Intellectual Property Infringement Claims The Company may, on a limited customer specific basis, provide contractual indemnities for certain losses that arise out of claims that its products infringe on the intellectual property of others. Historically, the Company has not made significant payments under such indemnity arrangements. The Company’s legal accruals were not significant at December 31, 2018 and 2017 . Lease Commitments The Company leases certain facilities and equipment under operating leases, many of which contain renewal options. Total rental expense for all operating leases, net of sublease rental income, was $7.3 million , $6.8 million , and $7.8 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Total sublease rental income was $2.3 million , $2.2 million , and $1.3 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Contingent rentals under the operating leases were not significant. In September 2013, the Company entered into an agreement for two new facilities and related equipment in China. The lease for one of the facilities and related equipment began in the fourth quarter of 2014. The Company took possession of the second facility and remaining equipment in 2015. The facilities are reflected in the operating leases and the equipment is reflected in the capital leases in the table below. The aggregate future minimum lease payments for capital leases, operating leases, and rental commitments as of December 31, 2018 are as follows: (in millions) Capital Leases Operating Leases 2019 $ 2.3 $ 9.7 2020 2.3 9.3 2021 2.3 8.8 2022 2.3 8.1 2023 2.3 6.1 2024 and thereafter 2.6 3.8 Total minimum lease payments 14.1 45.8 Less sublease rental income — (8.8 ) Net minimum lease payments 14.1 $ 37.0 Less imputed interest (1.6 ) Present value of capital lease obligations $ 12.5 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans Knowles sponsors its own defined contribution plan. The Company's expense relating to the defined contribution plan was $6.8 million , $6.4 million , and $6.1 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Knowles sponsors four defined benefit pension plans to certain non-U.S. employees. The two plans in the U.K. and the plan in Taiwan are closed to new participants; however, all active participants in these plans continue to accrue benefits. The balance for the plan in the Philippines, which is open to new participants, has been included as of December 31, 2018 . These plans are considered direct obligations of the Company and have been recorded within the accompanying Consolidated Financial Statements. The Company does not have any other post-retirement employee benefit plans other than the plans mentioned above and the non-qualified supplemental retirement plan discussed below. Non-U.S. Defined Benefit Pension Plans Obligations and Funded Status The following tables summarize the balance sheet impact, including the benefit obligations, assets, and funded status associated with the Company's four defined benefit plans for non-U.S. participants at December 31, 2018 and 2017 . December 31, (in millions) 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 57.9 $ 52.4 Service cost 0.4 0.3 Interest cost 1.3 1.5 Benefits paid (1.5 ) (1.5 ) Actuarial (gain) loss (3.8 ) 0.5 Plan amendments (1) 1.0 0.3 Currency translation and other (2) (1.6 ) 4.4 Benefit obligation at end of year 53.7 57.9 Change in plan assets: Fair value of plan assets at beginning of year 51.8 43.8 Actual return on plan assets (1.2 ) 4.4 Company contributions 1.9 1.5 Benefits paid (1.5 ) (1.5 ) Currency translation and other (3.2 ) 3.6 Fair value of plan assets at end of year 47.8 51.8 Funded status $ (5.9 ) $ (6.1 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other assets and deferred charges $ 1.0 $ 0.4 Other liabilities (6.9 ) (6.5 ) Funded status $ (5.9 ) $ (6.1 ) Accumulated other comprehensive loss: Net actuarial losses $ 18.0 $ 18.4 Prior service cost 1.3 0.3 Deferred taxes (3.8 ) (3.6 ) Total accumulated other comprehensive loss, net of tax 15.5 15.1 Net amount recognized $ 9.6 $ 9.0 Accumulated benefit obligation $ 52.6 $ 57.0 (1) On October 26, 2018, the U.K. High Court of Justice issued a ruling in a case related to equalization of pension plan participant benefits for the gender effects of Guaranteed Minimum Pensions. As a result of this ruling, the Company recorded an estimated increase to benefit obligations for its U.K defined benefit pension plans of $1.0 million during the year ended December 31, 2018 . (2) The Company recorded an increase in liabilities of $1.3 million related to pre-spin-off pension obligations during the year ended December 31, 2018 . Pension plans with accumulated benefit obligations in excess of plan assets consisted of the following at December 31, 2018 and 2017 : December 31, (in millions) 2018 2017 Projected benefit obligation $ 31.2 $ 35.3 Accumulated benefit obligation 31.0 34.8 Fair value of plan assets 24.7 28.8 Net Periodic Benefit Cost (Income) Components of the net periodic benefit cost (income) were as follows: Years Ended December 31, (in millions) 2018 2017 2016 Service cost $ 0.4 $ 0.3 $ 0.2 Interest cost 1.3 1.5 1.6 Expected return on plan assets (2.8 ) (2.7 ) (2.4 ) Amortization of recognized actuarial loss 0.5 0.5 0.3 Other (1) 1.3 — — Total net periodic benefit cost (income) $ 0.7 $ (0.4 ) $ (0.3 ) (1) The Company recorded an adjustment related to pre-spin-off pension obligations during the year ended December 31, 2018 . In accordance with ASU 2017-07, the components of net periodic benefit cost (income) other than service cost are presented in the Other expense (income), net line on the Consolidated Statements of Earnings. The service cost component is presented within the Cost of goods sold, Research and development expenses, and Selling and administrative expenses lines on the Consolidated Statements of Earnings based on the nature of services performed by the related employees. The Company expects to amortize an actuarial loss of $0.5 million from accumulated other comprehensive loss into net periodic benefit cost (income) during the year ended December 31, 2019 . Assumptions The Company determines actuarial assumptions on an annual basis. The actuarial assumptions used for the Company’s four defined benefit plans for non-U.S. participants will vary depending on the applicable country and as such, the tables below include these assumptions by country, as well as in total. The assumptions used in determining the benefit obligations were as follows: December 31, 2018 2017 Discount rate Philippines 8.25 % — Taiwan 1.25 % 1.25 % United Kingdom 2.80 % 2.44 % Weighted-average 2.78 % 2.40 % Average wage increase Philippines 6.00 % — Taiwan 4.25 % 4.00 % United Kingdom 4.40 % 4.50 % Weighted-average 4.41 % 4.46 % The assumptions used in determining the net periodic benefit cost (income) were as follows: Years Ended December 31, 2018 2017 2016 Discount rate Taiwan 1.25 % 1.50 % 1.10 % United Kingdom 2.44 % 2.64 % 3.90 % Weighted-average 2.40 % 2.60 % 3.72 % Average wage increase Taiwan 4.00 % 4.00 % 4.00 % United Kingdom 4.50 % 4.60 % 4.25 % Weighted-average 4.46 % 4.55 % 4.16 % Expected return on plan assets Taiwan 1.50 % 1.75 % 1.50 % United Kingdom 5.75 % 5.90 % 6.50 % Weighted-average 5.64 % 5.80 % 6.42 % The Company’s discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans’ expected benefit payment streams. The plans’ expected cash flows are then discounted by the resulting year-by-year spot rates. Plan Assets The primary financial objective of the plans is to secure participant retirement benefits. Accordingly, the key objective in the plans’ financial management is to promote stability and, to the extent appropriate, growth in the funded status. Related and supporting financial objectives are established in conjunction with a review of current and projected plan financial requirements. As it relates to the funded defined benefit pension plans, the Company’s funding policy is consistent with the funding requirements of applicable local non-U.S. laws. The Company is responsible for overseeing the management of the investments of the plans’ assets and otherwise ensuring that the plans’ investment programs are in compliance with applicable local law, other relevant legislation, and related plan documents. Where relevant, the Company has retained professional investment managers to manage the plans’ assets and implement the investment process. The investment managers, in implementing their investment processes, have the authority and responsibility to select appropriate investments in the asset classes specified by the terms of their applicable prospectus or investment manager agreements with the plans. The assets of the plans are invested to achieve an appropriate return for the plans consistent with a prudent level of risk. The asset return objective is to achieve, as a minimum over time, the passively managed return earned by market index funds, weighted in the proportions outlined by the asset class exposures identified in the plans’ strategic allocation. The expected return on assets assumption used for pension expense is developed through analysis of historical market returns, statistical analysis, current market conditions, and the past experience of plan asset investments. Fair Value Measurements The fair values of plan assets by asset category within the ASC 820 hierarchy were as follows at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Asset category: Fixed income investments (1) $ 1.9 $ 18.5 $ — $ 20.4 $ 2.3 $ 12.7 $ — $ 15.0 Common stock funds (1) — 13.4 — 13.4 — 21.9 — 21.9 Real estate funds — 3.6 — 3.6 — 3.5 — 3.5 Cash and equivalents 0.3 0.8 — 1.1 0.1 0.9 — 1.0 Other 5.7 3.6 — 9.3 6.8 3.6 — 10.4 Total $ 7.9 $ 39.9 $ — $ 47.8 $ 9.2 $ 42.6 $ — $ 51.8 (1) During the year ended December 31, 2018 , one of the Company's U.K. plans shifted its investment strategy from common stock funds to fixed income investments to align with participant risk profiles. See Note 10. Hedging Transactions and Derivative Instruments for additional information on the fair value hierarchy. There were no significant transfers between Level 1 and Level 2 assets during the years ended December 31, 2018 and 2017 . Fixed income investments include government and municipal securities and corporate bonds, which are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Common stock funds consist of mutual funds and collective trusts. Mutual funds are valued by obtaining quoted prices from nationally recognized securities exchanges. Collective trusts are valued using Net Asset Value (the "NAV") as of the last business day of the year. The NAV is based on the underlying value of the assets owned by the fund minus its liabilities and then divided by the number of shares outstanding. The value of the underlying assets is based on quoted prices in active markets. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Future Estimates Benefit Payments Estimated future benefit payments to retirees, which reflect expected future service, are as follows: (in millions) 2019 $ 1.9 2020 1.7 2021 1.7 2022 1.8 2023 1.8 2024-2028 11.5 Contributions Generally, annual contributions are made at such times and in such amounts as required by law and agreed with the trustees of the non-U.S. defined benefit plans. The Company estimates it will pay $3.1 million during the year ended December 31 , 2019 related to contributions to these plans. This amount may vary based on updated funding agreements with the Trustees of these plans. Non-qualified Supplemental Retirement Plan Knowles provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. Effective December 31, 2013, the Company's participants no longer accrue benefits. The net amounts recognized on the balance sheet at December 31, 2018 and 2017 are shown in the table below: December 31, (in millions) 2018 2017 Accrued compensation and employee benefits $ (0.9 ) $ (0.2 ) Other liabilities (0.8 ) (1.6 ) Total accumulated other comprehensive loss, net of tax — 0.2 Net amount recognized $ (1.7 ) $ (1.6 ) The actuarial gain arising during the year ended December 31, 2018 was $0.1 million ( $0.1 million net of tax). The amortization of prior service cost included in net periodic pension cost (income) during the year ended December 31, 2018 was $0.1 million ( $0.1 million |
Other Comprehensive (Loss) Earn
Other Comprehensive (Loss) Earnings | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Earnings | 16. Other Comprehensive Earnings (Loss) The amounts recognized in other comprehensive (loss) earnings were as follows: Year Ended December 31, 2018 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ (9.9 ) $ — $ (9.9 ) Employee benefit plans (0.4 ) 0.2 (0.2 ) Changes in fair value of cash flow hedges (1.0 ) 0.1 (0.9 ) Total other comprehensive loss $ (11.3 ) $ 0.3 $ (11.0 ) Year Ended December 31, 2017 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ 27.1 $ — $ 27.1 Employee benefit plans 1.3 — 1.3 Changes in fair value of cash flow hedges 4.4 (0.7 ) 3.7 Total other comprehensive earnings $ 32.8 $ (0.7 ) $ 32.1 Year Ended December 31, 2016 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ 0.8 $ — $ 0.8 Employee benefit plans (5.0 ) (0.1 ) (5.1 ) Changes in fair value of cash flow hedges (2.2 ) 0.6 (1.6 ) Total other comprehensive loss $ (6.4 ) $ 0.5 $ (5.9 ) The following table summarizes the changes in balances of each component of accumulated other comprehensive loss, net of tax during the years ended December 31, 2018 and 2017 : (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2016 $ (3.2 ) $ (16.6 ) $ (112.3 ) $ (132.1 ) Other comprehensive earnings, net of tax 3.7 1.3 27.1 32.1 Balance at December 31, 2017 0.5 (15.3 ) (85.2 ) (100.0 ) Other comprehensive loss, net of tax (0.9 ) (0.2 ) (9.9 ) (11.0 ) Balance at December 31, 2018 $ (0.4 ) $ (15.5 ) $ (95.1 ) $ (111.0 ) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to earnings: Years Ended December 31, (in millions) Statement of Earnings Line 2018 2017 2016 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other expense (income), net $ 0.6 $ 0.6 $ 0.5 Tax benefit (Benefit from) provision for income taxes (0.1 ) — — Net of tax $ 0.5 $ 0.6 $ 0.5 Cash flow hedges: Net losses reclassified into earnings Various (1) $ 1.4 $ 0.5 $ 1.0 Tax benefit (Benefit from) provision for income taxes (0.3 ) (0.2 ) (0.1 ) Net of tax $ 1.1 $ 0.3 $ 0.9 (1) See Note 10. Hedging Transactions and Derivative Instruments |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information In January 2017, the Company changed its allocation of resources and internal reporting structure to facilitate delivering growth in its core business. The Company’s operating segments engage in business activities from which they earn revenues and incur expenses, have discrete financial information available, and whose financial results are regularly reviewed and used by the chief operating decision maker to evaluate segment performance, allocate resources, and determine management incentive compensation. The Audio segment aggregates two operating segments into one reportable segment based on similar product applications serving our key end markets. The PD segment has one operating segment, which equals its reportable segment. The realignment did not change the composition of the Company’s reporting units for goodwill impairment testing purposes. Following these changes, the Company's two reportable segments are as follows: • Audio Segment Our Audio group designs and manufactures innovative audio products, including microphones and balanced armature speakers, audio processors, and software and algorithms used in applications that serve the mobile, ear, and IoT markets. Locations include the sales, support, and engineering facilities in North America, Europe, and Asia, as well as the manufacturing facilities in Asia. • PD Segment Our PD group specializes in the design and delivery of highly engineered capacitors and radio frequency devices for technically demanding applications. Our devices are used in applications including power supplies, radar, medical implants, and satellites, serving the industrial, defense, aerospace, medical, telecommunications, and automotive markets. Locations include sales, support, engineering, and manufacturing facilities in North America, Europe, and Asia. The Company organizes its reportable segments based on how management analyzes performance, allocates capital, and makes strategic and operational decisions. These segments were determined in accordance with ASC 280, Segment Reporting. The segments are aligned around similar product applications serving our key end markets, to enhance focus on end market growth strategies. Information regarding the Company's reportable segments is as follows: Years Ended December 31, (in millions) 2018 2017 2016 Revenues: Audio $ 682.2 $ 637.4 $ 661.9 Precision Devices 144.7 106.8 93.8 Total revenues $ 826.9 $ 744.2 $ 755.7 Earnings from continuing operations before interest and income taxes: Audio $ 105.7 $ 76.1 $ 88.8 Precision Devices 27.5 19.2 12.4 Total segments 133.2 95.3 101.2 Corporate expense / other 56.1 55.3 52.7 Interest expense, net 16.0 20.6 20.4 Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Depreciation and amortization: Audio $ 41.5 $ 45.2 $ 61.4 Precision Devices 7.8 5.6 4.3 Corporate 3.1 3.0 3.3 Total $ 52.4 $ 53.8 $ 69.0 Capital expenditures: Audio $ 68.2 $ 43.6 $ 27.8 Precision Devices 10.8 5.4 3.1 Corporate 1.1 0.5 1.3 Total $ 80.1 $ 49.5 $ 32.2 Research and development: Audio $ 94.5 $ 89.0 $ 89.2 Precision Devices 5.8 4.2 2.7 Corporate 0.3 0.2 0.1 Total $ 100.6 $ 93.4 $ 92.0 Information regarding assets of the Company's reportable segments: Total Assets December 31, (in millions) 2018 2017 Audio $ 1,409.1 $ 1,430.9 Precision Devices 136.9 103.4 Corporate / eliminations 1.9 13.8 Discontinued operations — 1.7 Total $ 1,547.9 $ 1,549.8 The following table details revenues by geographic location. Revenues are attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant, and equipment. These assets have been classified based on the geographic location of where they reside. The Company's businesses are based primarily in Asia, North America, and Europe. Revenues Long-Lived Assets Years Ended December 31, December 31, (in millions) 2018 2017 2016 2018 2017 Asia $ 605.4 $ 560.8 $ 578.7 $ 160.9 $ 144.9 United States 126.6 101.3 93.3 49.8 37.2 Europe 85.8 72.3 75.1 0.9 0.9 Other Americas 3.6 4.4 3.1 0.1 — Other 5.5 5.4 5.5 — — Total $ 826.9 $ 744.2 $ 755.7 $ 211.7 $ 183.0 The Company's customers that accounted for 10% or more of total revenues were as follows: Revenues Years Ended December 31, 2018 2017 2016 Apple Inc. 19 % 19 % 20 % Samsung Electronics Co., Ltd. * 10 % 12 % |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 18. Earnings per Share Basic and diluted earnings per share was computed as follows: Years Ended December 31, (in millions, except share and per share amounts) 2018 2017 2016 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Earnings (loss) from discontinued operations, net 2.1 61.8 (62.1 ) Net earnings (loss) $ 67.7 $ 68.3 $ (42.3 ) Basic earnings (loss) per common share: Earnings from continuing operations $ 0.73 $ 0.07 $ 0.22 Earnings (loss) from discontinued operations, net 0.02 0.69 (0.70 ) Net earnings (loss) $ 0.75 $ 0.76 $ (0.48 ) Weighted-average shares outstanding 90,050,051 89,329,794 88,667,098 Diluted earnings (loss) per common share: Earnings from continuing operations $ 0.72 $ 0.07 $ 0.22 Earnings (loss) from discontinued operations, net 0.02 0.68 (0.69 ) Net earnings (loss) $ 0.74 $ 0.75 $ (0.47 ) Diluted weighted-average shares outstanding 91,194,747 90,490,007 89,182,967 For the years ended December 31, 2018 , 2017 , and 2016 , the weighted-average number of anti-dilutive potential common shares excluded from the calculation of diluted earnings per share above was 4,346,400 , 3,944,160 , and 5,080,023 |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | 19. Quarterly Data (Unaudited) (in millions, except per share amounts) Continuing Operations Net Earnings (Loss) Quarter Revenues Gross Profit Earnings (Loss) Per Share - Basic Per Share - Diluted Earnings (Loss) Per Share - Basic Per Share - Diluted 2018 First $ 178.5 $ 65.3 $ (0.4 ) $ — $ — $ (0.3 ) $ — $ — Second 188.4 73.2 4.4 0.05 0.05 4.6 0.05 0.05 Third 236.2 89.8 (17.8 ) (0.20 ) (0.20 ) (16.2 ) (0.18 ) (0.18 ) Fourth 223.8 94.3 79.4 0.88 0.87 79.6 0.88 0.87 2017 First $ 168.3 $ 59.3 $ (5.0 ) $ (0.06 ) $ (0.06 ) $ (3.2 ) $ (0.04 ) $ (0.04 ) Second 164.4 63.2 (30.9 ) (0.35 ) (0.35 ) (29.7 ) (0.33 ) (0.33 ) Third 196.0 74.1 10.5 0.12 0.12 15.7 0.18 0.17 Fourth 215.5 89.4 31.9 0.36 0.35 85.5 0.96 0.94 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Account | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2018 , 2017 , and 2016 Allowance for Doubtful Accounts (in millions) Balance at Beginning of Year Charged to Cost and (1) Accounts Written Off Balance at End of Year Year Ended December 31, 2018 Allowance for Doubtful Accounts $ 0.7 (0.1 ) — $ 0.6 Year Ended December 31, 2017 Allowance for Doubtful Accounts $ 1.5 0.2 (1.0 ) $ 0.7 Year Ended December 31, 2016 Allowance for Doubtful Accounts $ 1.5 0.1 (0.1 ) $ 1.5 (1) Net of recoveries on previously reserved or written-off balances. Deferred Tax Valuation Allowance (in millions) Balance at Beginning of Year Additions Reductions Balance at End of Year Year Ended December 31, 2018 Deferred Tax Valuation Allowance $ 99.7 31.5 — $ 131.2 Year Ended December 31, 2017 Deferred Tax Valuation Allowance $ 161.3 — (61.6 ) $ 99.7 Year Ended December 31, 2016 Deferred Tax Valuation Allowance $ 127.4 33.9 — $ 161.3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | Background - Knowles Corporation (NYSE:KN) is a market leader and global provider of advanced micro-acoustic, audio processing, and precision device solutions, serving the mobile consumer electronics, communications, medical, defense, aerospace, and industrial markets. The Company uses its leading position in micro-electro-mechanical systems ("MEMS") microphones and strong capabilities in audio processing technologies to optimize audio systems and improve the user experience in mobile, ear, and Internet of Things ("IoT") applications. Knowles is also the leader in acoustics components used in hearing aids and has a strong position in high-end capacitors. The Company's focus on its customers, combined with its unique technology, proprietary manufacturing techniques, rigorous testing, and global scale, enable the Company to deliver innovative solutions that optimize the user experience. References to "Knowles," "the Company," "we," "our," and "us" refer to Knowles Corporation and its consolidated subsidiaries. Our common stock began trading under the ticker symbol “KN” on the New York Stock Exchange (the “NYSE”) on March 3, 2014. On January 19, 2018, the Company acquired substantially all of the assets of Compex Corporation ("Compex"), a capacitors manufacturer. See Note 3. Acquisitions for additional information related to the transaction. On November 28, 2017, the Company completed the sale of its high-end oscillators business ("Timing Device Business"). On July 7, 2016, the Company completed the sale of its speaker and receiver product line (“Speaker and Receiver Product Line”). In accordance with Accounting Standards Codification ("ASC") 205-20, Presentation of Financial Statements - Discontinued Operations, the results of operations and related assets and liabilities for the Timing Device Business and Speaker and Receiver Product Line have been reclassified as discontinued operations for all periods presented. See Note 2. Disposed and Discontinued Operations for additional information related to the transactions. In January 2017, the Company changed its allocation of resources and internal reporting structure to facilitate delivering growth in its core business. Following these changes, the Company's two reportable segments are Audio and Precision Devices ("PD"). See Note 17. Segment Information for additional information related to the Company’s segments. Financial Statement Presentation - |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and disclosures. These estimates may be adjusted due to changes in future economic, industry, or customer financial conditions, as well as changes in technology or demand. Estimates are used in accounting for, among other items, allowances for doubtful accounts receivable, inventory reserves, restructuring reserves, warranty reserves, pension and post-retirement plans, stock-based compensation, corporate allocations, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets, uncertain income tax positions, changes in tax laws, and contingencies. Actual results may ultimately differ from estimates, although management does not believe such differences would materially affect the financial statements in any individual year. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the Consolidated Financial Statements in the period that they are determined. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash and cash equivalents include cash on hand, demand deposits, and temporary cash investments with original maturities less than three months. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts – The Company maintains allowances for estimated losses as a result of customers' inability to make required payments. Management evaluates the aging of the accounts receivable balances, the financial condition of its customers, historical trends, and the time outstanding of specific balances to estimate the amount of accounts receivable that may not be collected in the future and records the appropriate provision. |
Inventories | Inventories – Inventories are stated at the lower of cost or net realizable value, determined on the first-in, first-out ("FIFO") basis. The value of inventory may decline as a result of surplus inventory, price reductions, or technological obsolescence. It is the Company’s policy to carry reserves against the carrying value of inventory when items have no future demand (obsolete inventory) and additionally, where inventory items on hand have demand, yet have insufficient forecasted activity to consume the entire stock within a reasonable period. It is the Company’s policy to carry reserves against the carrying value of such at-risk inventory items after considering the nature of the risk and any mitigating factors. Prepaid and Other Current Assets – Prepaid and other current assets at December 31, 2017 includes $10.0 million held in escrow related to the sale of the Timing Device Business that was received during the third quarter of 2018. The remaining balance at December 31, 2018 and 2017 is made up of prepaid insurance, supplier prepayments, prepaid licensing fees, and other miscellaneous prepaid assets, none of which are individually significant. |
Property, Plant and Equipment | Property, Plant, and Equipment - Property, plant, and equipment includes the historic cost of land, buildings, equipment, and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Property, plant, and equipment also includes the cost of purchased software. Expenditures for maintenance, repairs, and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and the gain or loss realized on disposition is reflected in earnings. The Company historically depreciates its assets on a straight-line basis over their estimated useful lives as follows: buildings and improvements 5 to 31.5 years; machinery and equipment 1.5 to 7 years; furniture and fixtures 2 to 5 years; vehicles 3 to 5 years; and software 3 to 5 |
Derivative Instruments | Derivative Instruments - The Company uses derivative financial instruments to hedge its exposures to various risks, including interest rate and foreign currency exchange rate risk. The Company does not enter into derivative financial instruments for speculative purposes and does not have a material portfolio of derivative financial instruments. Derivative financial instruments used for hedging purposes must be designated and effective as a hedge of the identified risk exposure at inception of the contract. The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivatives is recorded as a component of other comprehensive earnings and subsequently recognized in net earnings when the hedged items impact earnings. |
Goodwill and Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets - Goodwill represents the excess of purchase consideration over the fair value of the net assets of businesses acquired. Goodwill and certain other intangible assets deemed to have indefinite lives (primarily trademarks) are not amortized. Instead, goodwill and indefinite-lived intangible assets are tested for impairment at least annually, or more frequently if there are events or circumstances indicating the carrying value of individual reporting units or assets may exceed their respective fair values on a more likely than not basis. The Company performs its annual impairment assessment in the fourth quarter of each year on October 1. Recoverability of goodwill is measured at the reporting unit level. Following the sale of the Timing Device Business on November 28, 2017, the Company has three reporting units. The goodwill balances associated with the Mobile Consumer Electronics ("MCE"), Hearing Health Technologies ("HHT"), and Capacitors reporting units were $722.1 million , $137.8 million , and $28.0 million , respectively, as of December 31, 2018 . The impairment assessment compares the fair value of each reporting unit to its carrying value. Impairment is measured as the amount by which the carrying value of a reporting unit exceeds its fair value. Fair value is estimated using a discounted cash flow approach that includes the Company’s market participant assumptions, projections of future cash flows based on historical performance and future estimated results, determinations of appropriate discount rates, and other assumptions which are considered reasonable and inherent in the discounted cash flow analysis. Significant assumptions used in the assessment include forecasted revenue and terminal growth rates, profit margins, income taxes, and the Company's weighted average cost of capital. These assumptions require significant judgment and actual results may differ from estimated amounts. The fair value of all of the Company’s reporting units exceeded the carrying values by at least 50% , resulting in no goodwill impairment charges. Potential circumstances that could have a negative effect on the fair value of our reporting units include, but are not limited to, lower than forecasted growth rates or profit margins and changes in the weighted average cost of capital. A reduction in the estimated fair value of the reporting units could trigger an impairment in the future. The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and intangible assets. In testing its other indefinite-lived intangible assets for impairment, the Company uses a relief from royalty method to calculate and compare the fair value of the intangible asset to its carrying value. This method estimates the fair value of trademarks by calculating the present value of royalty income that could hypothetically be earned by licensing the trademark to a third party. Any excess of carrying value over the estimated fair value is recognized as an impairment loss. No impairment of indefinite-lived intangibles was indicated for the years ended December 31, 2018 , 2017 , or 2016 . See Note 7. Goodwill and Other Intangible Assets for additional information on goodwill and indefinite-lived intangible assets. Other Intangible and Long-Lived Assets - Other intangible assets with determinable lives consist primarily of customer relationships, unpatented technology, patents, and trademarks and are amortized over their estimated useful lives, historically ranging from 5 to 15 years. The Company relies on patents and proprietary technology, and seeks patent protection for products and production methods. The Company capitalizes external legal costs incurred in the defense of its patents when it believes that a significant, discernible increase in value will result from the defense and a successful outcome of the legal action is probable. These costs are amortized over the remaining estimated useful life of the patent, which is typically 7 to 10 years. The Company’s assessment of future economic benefit and/or the successful outcome of legal action related to patent defense involves considerable management judgment and a different outcome could result in material write-offs of the carrying value of these assets. The Company capitalized no |
Long-Lived Assets | Long-lived assets (including intangible assets with determinable lives) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows is produced and compared to its carrying value. If an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value as determined by an estimate of discounted future cash flows. The Company recorded no impairments during the year ended December 31, 2018 . During the years ended December 31, 2017 and 2016 , the Company recorded impairments and other charges related to its continuing operations of $21.3 million and $0.5 million , respectively. See Note 4. Impairments |
Foreign Currency | Foreign Currency - Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars at year-end exchange rates. Revenue and expense items are translated using weighted-average yearly exchange rates. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are re-measured into the functional currency using end of period exchange rates or historical rates where applicable to certain balances. Gains and losses related to these re-measurements are recorded within the Consolidated Statements of Earnings as a component of Other expense (income), net. |
Revenue Recognition | Revenue Recognition - The Company adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective (cumulative effect) transition method. Refer to the Recently Adopted Accounting Standards section below for additional information. |
Stock-Based Compensation | Stock-Based Compensation – The principal awards issued under the stock-based compensation plans include stock options, restricted stock units ("RSUs"), and performance share units ("PSUs"). The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is expected to ultimately vest is generally recognized as expense on a straight-line basis, generally over the explicit service period and is included in Cost of goods sold, Research and development expenses, and Selling and administrative expenses in the Consolidated Statements of Earnings, depending on the functional area of the underlying employees. The cost related to PSUs is recognized based on the expected attainment of performance targets. Changes in estimates that impact the number of shares expected to vest are recognized prospectively through cumulative adjustments. The Company uses the Black-Scholes valuation model to estimate the fair value of stock options granted to employees. The fair value of each RSU granted is equal to the share price at the date of the grant. The fair value of each PSU is determined using a binomial model simulation. At the time of grant, the Company estimates forfeitures, based on historical experience, in order to estimate the portion of the award that will ultimately vest. See Note 13. Equity Incentive Program |
Income Taxes | Income Taxes - The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company offsets and presents deferred tax liabilities and assets, as well as any related valuation allowance, as a single non-current amount on the Consolidated Balance Sheets on a jurisdictional basis. The Company establishes valuation allowances for its deferred tax assets if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such assessments, significant weight is given to evidence that can be objectively verified. The assessment of the need for a valuation allowance requires considerable judgment on the part of management with respect to the benefits that could be realized from future taxable income, as well as other positive and negative factors. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax-planning strategies in making this assessment. The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments are made to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company's financial condition and operating results. The provision for income taxes includes the effects of any reserves that are believed to be appropriate, as well as the related net interest and penalties. On December 22, 2017, the U.S. bill commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform Act") was enacted, which significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The Tax Reform Act also provided for a one-time deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits ("E&P") through the year ended December 31, 2017. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act also require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company was subject to the GILTI provisions beginning in 2018. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its Consolidated Financial Statements. On December 22, 2017, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized provisional tax impacts related to deemed repatriated earnings, the change in beginning of year valuation allowance, and the benefit for the remeasurement of deferred tax assets and liabilities as of December 31, 2017. During the fourth quarter of 2018, the Company finalized its accounting for the effects of the Tax Reform Act under SAB 118. The Company recorded a $17.8 million reduction to the net transition tax liability due to the impact of an Internal Revenue Service ("IRS") approval for an entity classification received during the fourth quarter of 2018. During the third quarter of 2018, the Company recorded an uncertain tax position of $36.0 million related to consequences of the Tax Reform Act. As a result of the IRS approval for an entity classification received during the fourth quarter of 2018, the Company recognized a $36.0 million benefit related to the release of the uncertain tax position. |
Research and development expense | Research and Development Costs – Research and development costs, including qualifying engineering costs, are expensed when incurred. |
Revision of Prior Period Financial Statements | Reclassifications - Certain amounts in prior years have been reclassified to conform to the current year presentation. Refer to the Recently Adopted Accounting Standards section below for additional information. |
Disposed and Discontinued Ope_2
Disposed and Discontinued Operations Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Management and the Board of Directors periodically conduct strategic reviews of the Company's businesses. On November 28, 2017, the Company completed the sale of its Timing Device Business, part of the PD segment, for $130.0 million , plus purchase price adjustments for a net amount of $135.1 million . The Company recorded a gain of $63.9 million as a result of the sale, which included $0.4 million of gain amounts reclassified from Accumulated other comprehensive loss into earnings related to currency translation adjustments. The purchase price included $10.0 million held in escrow that was received during the third quarter of 2018 and was previously recorded in the Prepaid and other current assets line on the Consolidated Balance Sheets. On July 7, 2016, the Company completed the sale of its Speaker and Receiver Product Line for $45.0 million in cash, less purchase price adjustments for a net amount received of $40.6 million . The Company recorded a loss of $25.6 million as a result of the sale, which included $26.9 million of loss amounts reclassified from Accumulated other comprehensive loss into earnings related to currency translation adjustments. The results of operations and financial positions of the Timing Device Business and Speaker and Receiver Product Line have been reclassified to discontinued operations for all periods presented as these disposals represent strategic shifts that have a major effect on the Company's results of operations. Summarized results of the Company's discontinued operations are as follows: Years Ended December 31, (in millions) 2018 2017 2016 Revenues $ — $ 92.2 $ 156.4 Cost of goods sold — 61.5 136.1 Impairment charges — 0.4 0.4 Restructuring charges - cost of goods sold — 0.1 8.9 Gross profit — 30.2 11.0 Research and development expenses — 7.7 15.1 Selling and administrative expenses — 18.5 26.9 Restructuring charges — 0.2 3.4 Operating expenses — 26.4 45.4 Other (income) expense, net (0.2 ) 1.3 (0.9 ) (Gain) loss on sale of business (1) (1.6 ) (62.3 ) 25.6 Earnings (loss) from discontinued operations before taxes (2) 1.8 64.8 (59.1 ) (Benefit from) provision for income taxes (0.3 ) 3.0 3.0 Earnings (loss) from discontinued operations, net of tax $ 2.1 $ 61.8 $ (62.1 ) (1) The Company recorded a change in estimated purchase price adjustments related to the Timing Device Business of $1.8 million during the third quarter of 2018. (2) The Company's policy is to not allocate interest expense to discontinued operations unless it is directly attributable to the operations. The results of operations of the Timing Device Business and Speaker and Receiver Product Line did not have any such interest expense in the periods presented. Assets and liabilities of discontinued operations are summarized below: (in millions) December 31, 2017 Assets of discontinued operations: Receivables $ 1.2 Prepaid and other current assets 0.5 Total current assets 1.7 Total assets (1) $ 1.7 Liabilities of discontinued operations: Accounts payable $ 0.1 Other current liabilities 5.5 Total current liabilities 5.6 Total liabilities (1) $ 5.6 (1) In connection with the sale of the Timing Device Business, the Company retained certain obligations related to employees of the Timing Device Business. As these arrangements were settled during the year ended December 31, 2018, there were no assets and liabilities of discontinued operations as of December 31, 2018. The following table presents the depreciation, amortization, and capital expenditures related to discontinued operations: Years Ended December 31, (in millions) 2017 2016 Depreciation $ 2.3 $ 3.3 Amortization of intangible assets 1.2 1.4 Capital expenditures 2.1 6.5 There was no |
Acquisition Acquisition (Tables
Acquisition Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in millions) Cash $ 0.2 Receivables 1.7 Inventories 2.1 Property, plant, and equipment 2.0 Customer relationships 7.3 Unpatented technologies 2.0 Trademarks and other amortized intangible assets 0.4 Other assets 0.2 Goodwill 3.0 Assumed current liabilities (0.2 ) Total purchase price $ 18.7 |
Selected Unaudited Pro-forma Combined Statement of Earnings | Years Ended December 31, (in millions, except share and per share amounts) 2018 2017 Revenues from continuing operations: As reported $ 826.9 $ 744.2 Pro-forma 827.5 755.7 Earnings from continuing operations: As reported $ 65.6 $ 6.5 Pro-forma 66.3 7.4 Basic earnings per share from continuing operations: As reported $ 0.73 $ 0.07 Pro-forma 0.74 0.08 Diluted earnings per share from continuing operations: As reported $ 0.72 $ 0.07 Pro-forma 0.73 0.08 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Components of Inventory | (in millions) December 31, 2018 December 31, 2017 Raw materials $ 70.8 $ 65.9 Work in progress 30.2 21.3 Finished goods 65.3 60.8 Subtotal 166.3 148.0 Less reserves (26.2 ) (22.4 ) Total $ 140.1 $ 125.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | (in millions) December 31, 2018 December 31, 2017 Land $ 7.5 $ 7.7 Buildings and improvements 102.3 103.2 Machinery, equipment, and other 499.9 441.1 Subtotal 609.7 552.0 Less accumulated depreciation (398.0 ) (369.0 ) Total $ 211.7 $ 183.0 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2018 and 2017 are as follows: (in millions) Audio Precision Devices Total Balance at January 1, 2017 $ 846.6 $ 25.0 $ 871.6 Foreign currency translation 13.3 — 13.3 Balance at December 31, 2017 859.9 25.0 884.9 Acquisition — 3.0 3.0 Balance at December 31, 2018 $ 859.9 $ 28.0 $ 887.9 |
Schedule of Finite-Lived Intangible Assets | The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: December 31, 2018 December 31, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 0.5 $ 0.2 $ 0.3 $ 0.2 Patents 40.8 26.9 40.8 22.2 Customer relationships 10.6 2.0 3.3 0.7 Unpatented technologies 4.4 2.7 2.4 2.2 Other 0.2 — — — Total 56.5 31.8 46.8 25.3 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 56.7 $ 53.5 |
Schedule of Intangible Assets | The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: December 31, 2018 December 31, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 0.5 $ 0.2 $ 0.3 $ 0.2 Patents 40.8 26.9 40.8 22.2 Customer relationships 10.6 2.0 3.3 0.7 Unpatented technologies 4.4 2.7 2.4 2.2 Other 0.2 — — — Total 56.5 31.8 46.8 25.3 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 56.7 $ 53.5 |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets The changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2018 and 2017 are as follows: (in millions) Audio Precision Devices Total Balance at January 1, 2017 $ 846.6 $ 25.0 $ 871.6 Foreign currency translation 13.3 — 13.3 Balance at December 31, 2017 859.9 25.0 884.9 Acquisition — 3.0 3.0 Balance at December 31, 2018 $ 859.9 $ 28.0 $ 887.9 The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: December 31, 2018 December 31, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 0.5 $ 0.2 $ 0.3 $ 0.2 Patents 40.8 26.9 40.8 22.2 Customer relationships 10.6 2.0 3.3 0.7 Unpatented technologies 4.4 2.7 2.4 2.2 Other 0.2 — — — Total 56.5 31.8 46.8 25.3 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 56.7 $ 53.5 Total amortization expense for the years ended December 31, 2018 , 2017 , and 2016 was $6.5 million , $7.3 million , and $18.2 million , respectively. Amortization expense is primarily recorded in Selling and administrative expenses in the Consolidated Statements of Earnings. Amortization expense for the next five years, based on current intangible balances, is estimated to be as follows: (in millions) 2019 $ 6.4 2020 6.4 2021 6.3 2022 1.1 2023 1.0 |
Schedule of Future Amortization Expense | Amortization expense for the next five years, based on current intangible balances, is estimated to be as follows: (in millions) 2019 $ 6.4 2020 6.4 2021 6.3 2022 1.1 2023 1.0 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses | The following table details the major components of other accrued expenses: (in millions) December 31, 2018 December 31, 2017 Sales volume rebates $ 4.7 $ 4.7 Accrued short-term capital leases 2.4 2.5 Accrued taxes other than income taxes 2.1 2.4 Accrued insurance 1.6 1.9 Restructuring and exit costs 0.9 4.8 Hedging liability 0.6 — Warranty 0.5 2.1 Other (1) 7.3 9.8 Total $ 20.1 $ 28.2 (1) |
Schedule of Other Noncurrent Liabilities | The following table details the major components of other liabilities: (in millions) December 31, 2018 December 31, 2017 Deferred compensation, including defined benefit plans $ 17.0 $ 18.7 Long-term capital leases 10.1 12.3 Unrecognized tax benefits 3.5 6.5 Restructuring and exit costs 0.2 0.3 Transition tax liability (1) — 25.9 Other 3.5 4.2 Total $ 34.3 $ 67.9 |
Schedule of Product Warranty Liability | The changes in the carrying amount of product warranties were as follows: Years Ended December 31, (in millions) 2018 2017 Beginning balance, January 1 $ 2.1 $ 1.0 Provision for warranties 0.4 2.8 Settlements made (1.9 ) (1.3 ) Other adjustments, including currency translation (0.1 ) (0.4 ) Ending balance, December 31 $ 0.5 $ 2.1 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | 9. Restructuring and Related Activities Restructuring and related activities are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions, and other measures to further optimize operations. During the year ended December 31, 2018 , the Company recorded restructuring charges of $0.4 million within Gross profit, primarily for actions associated with transferring certain operations of capacitors manufacturing to other existing facilities in order to further optimize operations in the PD segment. The Company also recorded restructuring charges of $1.7 million within Operating expenses, primarily for actions associated with rationalizing the workforce. During the year ended December 31, 2017 , the Company recorded restructuring charges of $4.0 million within Gross profit for actions primarily associated with transferring certain operations of hearing health manufacturing to an existing, lower-cost Asian manufacturing facility. These charges were recorded within the Audio segment. The Company also recorded restructuring charges of $6.2 million within Operating expenses, primarily for actions associated with rationalizing the workforce. During the year ended December 31, 2016 , the Company recorded restructuring charges of $10.1 million , primarily for actions associated with the integration of Audience Inc., which is reported as part of the Audio segment, and actions associated with rationalizing the workforce. These actions were substantially complete as of December 31, 2016 . In addition, the Company recorded residual charges related to the transfer of a portion of the capacitors business into existing, lower-cost Asian manufacturing facilities, which are reported as part of the PD segment. These charges included severance pay and benefits of $7.5 million and contract termination costs of $2.6 million , of which $1.5 million were classified within Gross profit and $8.6 million were classified within Operating expenses. The following table details restructuring charges incurred by reportable segment for the periods presented: Years Ended December 31, (in millions) 2018 2017 2016 Audio $ 1.4 $ 8.1 $ 7.1 Precision Devices 0.5 0.1 1.4 Corporate 0.2 2.0 1.6 Total $ 2.1 $ 10.2 $ 10.1 The following table details the Company’s severance and other restructuring accrual activity: (in millions) Severance Pay and Benefits Contract Termination and Other Costs Total Balance at January 1, 2016 $ 7.7 $ 1.1 $ 8.8 Restructuring charges 7.5 2.6 10.1 Payments (12.8 ) (3.3 ) (16.1 ) Balance at December 31, 2016 $ 2.4 $ 0.4 $ 2.8 Restructuring charges (1) 8.4 1.8 10.2 Payments (6.5 ) (1.8 ) (8.3 ) Other, including foreign currency 0.4 — 0.4 Balance at December 31, 2017 $ 4.7 $ 0.4 $ 5.1 Restructuring charges 2.1 — 2.1 Payments (5.9 ) (0.1 ) (6.0 ) Other, including foreign currency (0.1 ) — (0.1 ) Balance at December 31, 2018 $ 0.8 $ 0.3 $ 1.1 (1) During the year ended December 31, 2017 , the Company reversed $1.2 million of previously recorded restructuring charges in Gross profit due to subsequent developments that impacted the previously estimated amounts. The severance and restructuring accruals are recorded in the following line items on the Consolidated Balance Sheets: (in millions) December 31, 2018 December 31, 2017 Other accrued expenses $ 0.9 $ 4.8 Other liabilities (1) 0.2 0.3 Total $ 1.1 $ 5.1 (1) |
Schedule of Restructuring and Related Costs | The following table details restructuring charges incurred by reportable segment for the periods presented: Years Ended December 31, (in millions) 2018 2017 2016 Audio $ 1.4 $ 8.1 $ 7.1 Precision Devices 0.5 0.1 1.4 Corporate 0.2 2.0 1.6 Total $ 2.1 $ 10.2 $ 10.1 |
Schedule of Restructuring Reserve by Type of Cost | The following table details the Company’s severance and other restructuring accrual activity: (in millions) Severance Pay and Benefits Contract Termination and Other Costs Total Balance at January 1, 2016 $ 7.7 $ 1.1 $ 8.8 Restructuring charges 7.5 2.6 10.1 Payments (12.8 ) (3.3 ) (16.1 ) Balance at December 31, 2016 $ 2.4 $ 0.4 $ 2.8 Restructuring charges (1) 8.4 1.8 10.2 Payments (6.5 ) (1.8 ) (8.3 ) Other, including foreign currency 0.4 — 0.4 Balance at December 31, 2017 $ 4.7 $ 0.4 $ 5.1 Restructuring charges 2.1 — 2.1 Payments (5.9 ) (0.1 ) (6.0 ) Other, including foreign currency (0.1 ) — (0.1 ) Balance at December 31, 2018 $ 0.8 $ 0.3 $ 1.1 (1) During the year ended December 31, 2017 , the Company reversed $1.2 million |
Schedule of Restructuring Reserve by Balance Sheet Location | The severance and restructuring accruals are recorded in the following line items on the Consolidated Balance Sheets: (in millions) December 31, 2018 December 31, 2017 Other accrued expenses $ 0.9 $ 4.8 Other liabilities (1) 0.2 0.3 Total $ 1.1 $ 5.1 (1) |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair values of derivative instruments held by the Company are as follows (in millions): Derivative Assets (Liabilities) Hedge Type Contract Type Balance Sheet Line December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments Cash flow hedges Foreign exchange contracts Prepaid and other current assets $ 0.2 $ 0.6 Cash flow hedges Foreign exchange contracts Other accrued expenses (0.6 ) — Derivatives not designated as hedging instruments Economic hedges Foreign exchange contracts Prepaid and other current assets 0.2 — |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance | 10. Hedging Transactions and Derivative Instruments The Company is affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as "market risks." The Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks, which are primarily foreign currency risk and interest rate risk related to ongoing business operations. Cash Flow Hedging The Company uses cash flow hedges to minimize the variability in cash flows of assets, liabilities, or forecasted transactions caused by fluctuations in foreign currency exchange rates or market interest rates. These derivatives, which are designated cash flow hedges, are carried at fair value. The changes in their fair values are recorded to Accumulated Other Comprehensive Income (Loss) ("AOCI") and reclassified in current earnings when the hedge contract matures or becomes ineffective. To manage its exposure to foreign currency exchange rates, the Company has entered into currency deliverable forward contracts. These derivative instruments allow the Company to hedge portions of its forecasted intercompany sales, which are expected to occur within the next twelve months and are denominated in non-functional currencies. The Company maintains a foreign currency cash flow hedging program primarily to reduce the risk that the net U.S. dollar cash inflows from non-U.S. dollar sales and non-U.S. dollar net cash outflows from procurement activities will be adversely affected by changes in foreign currency exchange rates. At December 31, 2018 and 2017 , the notional value of the derivatives related to currency forward contracts, principally the Chinese yuan, Malaysian ringgit, and Philippine peso, was $41.6 million and $17.9 million , respectively. To manage its exposure to market risk for changes in interest rates, the Company entered into an interest rate swap on November 12, 2014 to convert variable interest rate payments into a fixed rate on a notional amount of $100.0 million of debt for monthly interest payments that began in January 2016. The Company designated the swap as a cash flow hedge with re-measurement gains and losses recorded through AOCI. In December 2017, the Company entered into a partial termination of the interest rate swap and reduced the notional amount to $50.0 million . The interest rate swap ended in July 2018. Economic (Non-Designated) Hedging In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of foreign currency risk. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effectively economic hedges. The changes in fair value of these economic hedges are immediately recognized in earnings. The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in non-functional currencies. The Company does not enter into these hedges for speculative reasons. These derivatives are carried at fair value with changes in fair value immediately recognized in earnings within Other expense (income), net. In addition, these derivative instruments minimize the impact of exchange rate movements on the Company’s balance sheet, as the gains or losses on these derivatives are intended to offset gains and losses from the reduction of the hedged assets and liabilities. At December 31, 2018 and 2017 , the notional value of the derivatives related to economic hedging was $19.8 million and $6.4 million , respectively. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates, or other financial indices. The Company does not view the fair values of its derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets. Fair Value Measurements All derivatives are carried at fair value on the Company’s Consolidated Balance Sheets. ASC 820, Fair Value Measurement, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3 - Unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company determines the fair values of its derivatives based on standard valuation models or observable market inputs such as quoted market prices, foreign currency exchange rates, or interest rates; therefore, the Company classifies the derivatives within Level 2 of the valuation hierarchy. The Company early adopted ASU 2017-12 as of January 1, 2018. The standard requires adoption of the amended presentation and disclosure requirements on a prospective basis. With respect to presentation requirements, the Company began presenting the impact of foreign exchange contracts qualifying as cash flow hedges within the Cost of goods sold line on the Consolidated Statements of Earnings as of January 1, 2018. These amounts were classified in the Other expense (income), net line in prior periods. This change aligns the presentation of the impact of these hedges with the same line on the Consolidated Statements of Earnings that is used to present the earnings effect of the hedged item. With respect to disclosure requirements, the Company has enhanced the tabular disclosures below to align with the standard. See Note 1. Summary of Significant Accounting Policies for additional information on the adoption of this standard. The fair values of derivative instruments held by the Company are as follows (in millions): Derivative Assets (Liabilities) Hedge Type Contract Type Balance Sheet Line December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments Cash flow hedges Foreign exchange contracts Prepaid and other current assets $ 0.2 $ 0.6 Cash flow hedges Foreign exchange contracts Other accrued expenses (0.6 ) — Derivatives not designated as hedging instruments Economic hedges Foreign exchange contracts Prepaid and other current assets 0.2 — The pre-tax amount of unrealized (loss) gain recognized in accumulated other comprehensive loss on derivatives designated as hedging instruments is as follows (in millions): Years Ended December 31, Hedge Type Contract Type 2018 2017 2016 Cash flow hedges Foreign exchange contracts $ (2.5 ) $ 3.6 $ (2.5 ) Cash flow hedges Interest rate contracts 0.1 0.3 (0.7 ) The table above excludes a tax benefit of $0.4 million , tax expense of $0.5 million , and a tax benefit of $0.7 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The pre-tax impact of derivatives on the Consolidated Statements of Earnings is as follows (in millions): Years Ended December 31, 2018 2017 2016 Hedge Type Contract Type Cost of goods sold Interest expense, net Other expense (income), net Interest expense, net Other expense (income), net Interest expense, net Other expense (income), net Total amounts per Consolidated Statements of Earnings $ 503.9 $ 16.0 $ 0.7 $ 20.6 $ (0.1 ) $ 20.4 $ (3.5 ) Effect of derivatives designated as hedging instruments Amount of loss (gain) reclassified from accumulated other comprehensive loss into earnings: Cash flow hedges Foreign exchange contracts 1.4 — — — (0.3 ) — (0.3 ) Cash flow hedges Interest rate contracts — — — 0.8 — 1.3 — Effect of derivatives not designated as hedging instruments Amount of loss (gain) recognized in earnings: Economic hedges Foreign exchange contracts — — 0.9 — (0.3 ) — 2.0 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Borrowings (net of debt issuance costs, debt discount, and amortization) consist of the following: (in millions) December 31, 2018 December 31, 2017 3.25% convertible senior notes $ 149.1 $ 141.9 Revolving credit facility 9.0 50.7 Total 158.1 192.6 Less current maturities (1) — — Total long-term debt $ 158.1 $ 192.6 (1) There are no required principal payments due under the 3.25% convertible senior notes or the revolving credit facility until maturities in November 2021 and October 2022, respectively. Total debt principal payments over the next five years are as follows: (in millions) 2019 2020 2021 2022 2023 Debt principal payments $ — $ — $ 172.5 $ 9.0 $ — |
Convertible Debt | 3.25% Convertible Senior Notes Due November 1, 2021 In May 2016, the Company issued $172.5 million aggregate principal amount of 3.25% convertible senior notes due November 1, 2021 (the "Notes"), unless earlier repurchased by the Company or converted pursuant to their terms. Interest is payable semiannually in arrears on May 1 and November 1 of each year and commenced on November 1, 2016. The Notes are governed by an Indenture (the "Indenture") between the Company, as issuer, and U.S. Bank National Association as trustee. Upon conversion, the Company will pay or deliver cash, shares of the Company's common stock, or a combination of cash and shares of common stock, at the Company's election. The initial conversion rate is 54.2741 shares of common stock per $1,000 principal amount of Notes. The initial conversion price is $18.4250 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the Indenture), the Company may be required, in certain circumstances, to increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change. Prior to the close of business on the business day immediately preceding August 1, 2021, the Notes will be convertible only under the following circumstances: = during any calendar quarter and only during such calendar quarters, if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; = during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or = upon the occurrence of specified corporate events. On or after August 1, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. A s of December 31, 2018 , no event has occurred that would permit the conversion of the Notes. The Notes are the Company’s senior unsecured obligations. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Notes as a whole. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the term of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Notes issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Issuance costs attributable to the liability component, totaling $5.0 million , are being amortized to interest expense over the term of the Notes, and issuance costs attributable to the equity component, totaling $1.3 million , were netted with the equity component in stockholders' equity. Additionally, the Company recorded a deferred tax asset of $0.5 million on a portion of the equity component transaction costs which are deductible for tax purposes and immediately recorded a valuation allowance against this deferred tax asset. The Notes consist of the following: (in millions) December 31, 2018 December 31, 2017 Liability component: Principal $ 172.5 $ 172.5 Less debt issuance costs and debt discount, net of amortization (23.4 ) (30.6 ) Total 149.1 141.9 Less current maturities (1) — — Long-term portion $ 149.1 $ 141.9 Equity component (2) $ 29.9 $ 29.9 (1) There are no required principal payments due until maturity in November 2021. (2) Recorded in the Consolidated Balance Sheets within additional paid-in capital, inclusive of the $1.3 million of issuance costs in equity. The total estimated fair value of the Notes at December 31, 2018 was $178.2 million . The fair value was determined based on the closing trading price of the Notes as of the last trading day of 2018 . The following table sets forth total interest expense recognized related to the Notes: Years Ended December 31, (in millions) 2018 2017 2016 3.25% coupon $ 5.6 $ 5.6 $ 3.7 Amortization of debt issuance costs 0.9 0.9 0.6 Amortization of debt discount 6.3 5.8 3.6 Total $ 12.8 $ 12.3 $ 7.9 Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions (the “Note Hedges”) with respect to its common stock. In the second quarter of 2016, the Company paid an aggregate amount of $44.5 million for the Note Hedges. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are intended to offset the potential dilution upon conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount upon conversion of the Notes in the event that the market value per share of the Company's common stock, as measured under the Note Hedges, is greater than the strike price of the Note Hedges, which initially corresponds to the initial conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes. The Note Hedges are separate transactions entered into by the Company, and are not part of the Notes or the Warrants, and have been accounted for as part of additional paid-in capital. Holders of the Notes do not have any rights with respect to the Note Hedges. Warrants In addition to the Note Hedges, in the second quarter of 2016, the Company entered into warrant transactions, whereby the Company sold warrants to acquire shares of the Company's common stock at a strike price of $21.1050 per share (the “Warrants”). The Company received aggregate proceeds of $39.1 million |
Schedule of Term Loan and Revolving Credit Facilities | Revolving Credit Facility Revolving credit facility borrowings consist of the following: (in millions) December 31, 2018 December 31, 2017 $400.0 million revolving credit facility due October 2022 $ 9.0 $ 50.7 Less current maturities (1) — — Long-term portion $ 9.0 $ 50.7 (1) There are no required principal payments due until maturity in October 2022. On October 11, 2017, the Company entered into a Revolving Credit Facility Agreement (the "New Credit Facility"). The New Credit Facility contains a five -year senior secured revolving credit facility providing for borrowings in an aggregate principal amount at any time outstanding not to exceed $400.0 million . Up to $ 100.0 million of the New Credit Facility will be available in Euro, Sterling, and other currencies requested by the Company and agreed to by each Lender and up to $50.0 million of the New Credit Facility will be made available in the form of letters of credit denominated in any currencies agreed by the issuing bank. The New Credit Facility serves as refinancing of indebtedness and terminates the Company's Amended and Restated Credit Agreement dated as of January 27, 2014, as amended and restated as of December 31, 2014 and supplemented from time to time (“Prior Credit Facilities”). At any time during the term of the New Credit Facility, the Company will be permitted to increase the commitments under the New Credit Facility or to establish one or more incremental term loan facilities under the New Credit Facility in an aggregate principal amount not to exceed $200.0 million for all such incremental facilities. Commitments under the New Credit Facility will terminate, and loans outstanding thereunder will mature, on October 11, 2022; provided, that if all the Company’s Notes have not been repaid, refinanced, and/or converted to common stock of the Company by April 30, 2021, then the commitments under the New Credit Facility will terminate, and the loans outstanding thereunder will mature, on such earlier date. The interest rates under the New Credit Facility will be, at the Borrowers’ option (1) LIBOR (or, in the case of borrowings under the New Credit Facility denominated in Euro, EURIBOR) plus the rates per annum determined from time to time based on the total leverage ratio of the Company as of the end of and for the most recent period of four fiscal quarters for which financial statements have been delivered (the “Applicable Rate”); or (2) in the case of borrowings denominated in U.S. dollars, alternate base rate (“ABR”); provided, however, that any swingline borrowings shall bear interest at the rate applicable to ABR borrowings or, prior to the purchase of participations in such borrowings by the Lenders, at such other rate as shall be agreed between the Company and the swingline lender. The interest rate under the New Credit Facility is variable based on LIBOR at the time of the borrowing and the Company’s leverage as measured by a total indebtedness to Consolidated EBITDA ratio. Based upon the Company’s total indebtedness to Consolidated EBITDA ratio, the Company’s borrowing rate could range from LIBOR + 1.25% to LIBOR + 2.25% . In addition, a commitment fee accrues on the average daily unused portion of the New Credit Facility at a rate of 0.20% to 0.35% . The New Credit Facility includes requirements, to be tested quarterly, that the Company maintains (i) a minimum ratio of Consolidated EBITDA to consolidated interest expense of 3.25 to 1.0, (the "Interest Coverage Ratio"), (ii) a maximum ratio of Consolidated total indebtedness to Consolidated EBITDA of 3.75 to 1.0 (the "Leverage Ratio"), and (iii) a maximum ratio of senior secured indebtedness to Consolidated EBITDA of 3.25 to 1.0 (the "Senior Secured Leverage Ratio"). For these ratios, Consolidated EBITDA and consolidated interest expense are calculated using the most recent four consecutive fiscal quarters in a manner defined in the New Credit Facility. At December 31, 2018 , the Company was in compliance with these covenants and it expects to remain in compliance with all of its debt covenants over the next twelve months. On January 27, 2014, the Company entered into a $200.0 million five -year senior secured revolving credit facility as well as a $300.0 million five -year senior secured term loan facility pursuant to a Credit Agreement (the "Original Credit Agreement"), which are referred to collectively as the Prior Credit Facilities. On December 31, 2014, the Company amended its Prior Credit Facilities to (i) increase the amount of the revolving credit facility in the Original Credit Agreement to $350.0 million from $200.0 million , (ii) increase the amount of the letter of credit subfacility in the Original Credit Agreement to $50.0 million from $25.0 million , (iii) eliminate the swing line subfacility in the amount of up to $35.0 million in the Original Credit Agreement, and (iv) reduce to $100.0 million from $250.0 million the amount of additional incremental revolving or term loans in the Original Credit Agreement. All other terms and conditions of the Prior Credit Facilities remained essentially the same. On February 9, 2016, the Company entered into a third amendment to its Prior Credit Facilities that includes a permanent reduction by the Company of the aggregate revolving commitment under the Prior Credit Facilities from $350.0 million to $300.0 million . On April 27, 2016, the Company entered into a fourth amendment to its Prior Credit Facilities to permit the Company to execute the offering of the Notes and the related transactions. The weighted-average interest rate on the Company's borrowings under the New Credit Facility and Prior Credit Facilities was 3.56% , 3.58% , and 3.23% for the years ended December 31, 2018 , 2017 , and 2016, respectively. The weighted-average interest rate on the Company's borrowings under the New Credit Facility and Prior Credit Facilities for the years ended December 31, 2018 , 2017 , and 2016 includes interest expense related to the monthly interest rate swap settlements that ended in July 2018. The weighted-average commitment fee on the revolving lines of credit was 0.24% , 0.36% , and 0.39% for the years ended December 31, 2018 , 2017 , and 2016, respectively. |
Schedule of Interest Expense and Interest Income | Interest expense and interest income for the years ended December 31, 2018 , 2017 , and 2016 were as follows: Years Ended December 31, (in millions) 2018 2017 2016 Interest expense (1) $ 16.6 $ 20.8 $ 20.5 Interest income (0.6 ) (0.2 ) (0.1 ) Interest expense, net $ 16.0 $ 20.6 $ 20.4 (1) During 2017, the Company wrote off $0.4 million of debt issuance costs related to the Prior Credit Facilities to interest expense upon entering into the New Credit Facility. During 2016, the Company wrote off $0.7 million |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of earnings before income taxes and discontinued operations were: Years Ended December 31, (in millions) 2018 2017 2016 Domestic $ (34.1 ) $ 402.7 $ (51.1 ) Foreign 95.2 (383.3 ) 79.2 Total earnings before income taxes and discontinued operations $ 61.1 $ 19.4 $ 28.1 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense for the years ended December 31, 2018 , 2017 , and 2016 is comprised of the following: Years Ended December 31, (in millions) 2018 2017 2016 Current: U.S. Federal $ (25.0 ) $ 28.9 $ — State and local 0.1 0.1 0.1 Foreign 11.6 11.7 6.8 Total current tax (benefit) expense $ (13.3 ) $ 40.7 $ 6.9 Deferred: U.S. Federal $ 7.8 $ (26.8 ) $ 0.8 State and local 0.2 — 0.2 Foreign 0.8 (1.0 ) 0.4 Total deferred tax expense (benefit) 8.8 (27.8 ) 1.4 Total income tax (benefit) expense $ (4.5 ) $ 12.9 $ 8.3 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. Federal income tax rate to the Company’s effective income tax rate was as follows: Years Ended December 31, 2018 2017 2016 U.S. Federal income tax rate 21.0 % 35.0 % 35.0 % State and local taxes, net of Federal income tax benefit 0.4 % (0.2 )% 1.1 % Foreign operations tax effect 4.0 % 27.0 % (22.5 )% Research and experimentation tax credits (5.0 )% (11.6 )% (6.6 )% Valuation allowance 22.9 % 60.8 % 69.6 % Tax contingencies (4.3 )% 6.6 % (0.6 )% Tax holiday (24.3 )% (78.0 )% (64.2 )% Foreign taxes 0.9 % (5.0 )% 2.8 % Non-deductible and non-taxable interest 1.4 % (0.8 )% 3.2 % Stock-based compensation 3.1 % 9.3 % 9.6 % Other, principally non-tax deductible items (1) 3.2 % 13.5 % 1.9 % Transition tax (28.9 )% 89.7 % — % Tax reform (1.7 )% (85.3 )% — % Prior period items (0.1 )% 5.5 % 0.2 % Effective income tax rate (7.4 )% 66.5 % 29.5 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities included the following: (in millions) December 31, 2018 December 31, 2017 Deferred tax assets: Accrued compensation, principally post-retirement, and other employee benefits $ 15.1 $ 13.7 Accrued expenses, principally for state income taxes, interest, and warranty 4.6 5.9 Net operating loss and other carryforwards 155.9 115.6 Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes 3.9 3.6 Convertible Note Hedges 5.7 7.3 Plant and equipment, principally due to differences in depreciation 9.4 9.6 Total gross deferred tax assets 194.6 155.7 Valuation allowance (131.2 ) (99.7 ) Total deferred tax assets $ 63.4 $ 56.0 Deferred tax liabilities: Intangible assets, principally due to different tax and financial reporting bases and amortization lives $ (8.7 ) $ (10.3 ) Debt discount on convertible notes (4.4 ) (5.7 ) Other liabilities (37.2 ) (17.6 ) Total gross deferred tax liabilities (50.3 ) (33.6 ) Net deferred tax asset $ 13.1 $ 22.4 Classified as follows in the Consolidated Balance Sheets: Other assets and deferred charges (non-current deferred tax assets) $ 15.2 $ 22.4 Deferred income taxes (non-current deferred tax liabilities) (2.1 ) — Net deferred tax asset $ 13.1 $ 22.4 |
Schedule of Unrecognized Tax Benefits Roll Forward | Unrecognized Tax Benefits The Company records interest and penalties associated with unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2018 and 2017 , the Company recorded a potential interest benefit of $0.3 million and $1.1 million , respectively. The Company recorded $0.3 million of potential interest expense during the year ended December 31, 2016 . There was no accrued interest at December 31, 2018. Total accrued interest at December 31, 2017 and 2016 of $0.4 million and $1.4 million , respectively, was included in Other liabilities on the Consolidated Balance Sheets. During the years ended December 31, 2018 and 2017 , the Company recorded potential penalty expense of $0.1 million and $0.2 million , respectively. Total accrued penalties at December 31, 2018 and 2017 of $0.3 million and $0.2 million , respectively, were included in Other liabilities on the Consolidated Balance Sheets. There was no recorded potential penalty expense or accrued penalties at December 31, 2016 . The Company's tax returns are routinely audited by the tax authorities in the relevant jurisdictions. For tax years before 2017, the Company is no longer subject to U.S. federal income tax examination. For tax years before 2013, the Company’s Malaysian subsidiaries are no longer subject to examination. It is reasonably possible that the gross amount of unrecognized tax benefits will decrease by $0.1 million during the next twelve months. Included in the balance of total unrecognized tax benefits at December 31, 2018 are potential benefits of $3.5 million , which if recognized, would affect the effective rate on earnings from continuing operations. Given the Company's current valuation allowance position, no benefit is expected to result from the reversal of any uncertain tax position associated with the acquired attributes. Unrecognized tax benefits at January 1, 2016 $ 12.8 Reductions for tax positions due to lapsed statutes of limitations (0.5 ) Foreign exchange fluctuations (0.5 ) Unrecognized tax benefits at December 31, 2016 $ 11.8 Additions based on tax positions related to the current year 2.6 Additions for tax positions of prior years 0.6 Reductions for tax positions due to lapsed statutes of limitations (1.3 ) Tax reform (1.5 ) Foreign exchange fluctuations 0.3 Unrecognized tax benefits at December 31, 2017 $ 12.5 Additions based on tax positions related to the current year 0.1 Additions for tax positions of prior years 0.3 Reductions for tax positions due to lapsed statutes of limitations (2.5 ) Settlements (0.3 ) Unrecognized tax benefits at December 31, 2018 $ 10.1 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-Based Compensation Recognized Period Costs | The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Years Ended December 31, (in millions) 2018 2017 2016 Pre-tax stock-based compensation expense Cost of goods sold $ 1.6 $ 1.8 $ 1.5 Research and development expenses 7.8 6.1 4.7 Selling and administrative expenses 17.6 16.8 14.7 Total pre-tax stock-based compensation expense 27.0 24.7 20.9 Tax benefit — — — Total stock-based compensation expense, net of tax $ 27.0 $ 24.7 $ 20.9 |
Schedule of Black-Scholes Option-Pricing Assumptions | The fair value of stock options granted by the Company was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. 2018 2017 2016 Risk-free interest rate 2.59% 1.73% to 1.93% 1.04% to 1.25% Dividend yield —% —% —% Expected life (years) 4.5 4.5 4.5 Volatility 41.2% 33.2% to 38.8% 37.0% to 39.6% Fair value at date of grant $4.83 to $6.59 $5.02 to $6.73 $3.76 to $4.83 |
Schedule of SSAR and Stock Options Activity | The following table summarizes the Company's SSAR and stock option activity for the year ended December 31, 2018 . SSARs Stock Options Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) (in millions, except share and per share amounts) Outstanding at December 31, 2017 850,516 $ 21.54 4,901,739 $ 18.36 Granted — — 963,692 14.34 Exercised (30,624 ) 12.26 (44,326 ) 11.02 Forfeited — — (120,458 ) 15.54 Expired (37,897 ) 22.79 (229,154 ) 21.63 Outstanding at December 31, 2018 781,995 $ 21.85 $ — 3.1 5,471,493 $ 17.64 $ 3.4 4.1 Exercisable at December 31, 2018 781,995 $ 21.85 $ — 3.1 3,517,954 $ 19.31 $ 2.2 3.5 |
Schedule of Other Share-based Compensation, Activity | Other information regarding the exercise of SSARs and stock options is listed below: Years Ended December 31, (in millions) 2018 2017 2016 SSARs Fair value of SSARs that are exercisable $ 1.8 $ 1.9 $ 1.9 Aggregate intrinsic value of SSARs exercised 0.1 0.2 0.1 Stock Options Cash received by Knowles for exercise of stock options 0.5 3.3 — Aggregate intrinsic value of options exercised 0.2 1.1 — |
Schedule of Restricted Stock Units Award Activity | The following table summarizes the Company's RSU balances for the year ended December 31, 2018 : Share units Weighted-average grant date fair value Unvested at December 31, 2017 2,202,576 $ 16.54 Granted 1,707,911 14.28 Vested (1,036,207 ) 16.95 Forfeited (427,849 ) 14.84 Unvested at December 31, 2018 2,446,431 $ 15.12 |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | 13. Equity Incentive Program The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Years Ended December 31, (in millions) 2018 2017 2016 Pre-tax stock-based compensation expense Cost of goods sold $ 1.6 $ 1.8 $ 1.5 Research and development expenses 7.8 6.1 4.7 Selling and administrative expenses 17.6 16.8 14.7 Total pre-tax stock-based compensation expense 27.0 24.7 20.9 Tax benefit — — — Total stock-based compensation expense, net of tax $ 27.0 $ 24.7 $ 20.9 Compensation expense for stock-based awards is measured based on the fair value of the awards as of the date the stock-based awards are granted and adjusted to the estimated number of awards that are expected to vest. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Compensation costs for stock-based awards are amortized over their service period. Prior to the Separation in 2014, Knowles employees participated in our Former Parent's incentive stock program. Adopted in connection with the Separation, the Knowles' Corporation 2014 Equity and Cash Incentive Plan (the "Plan") provided for the conversion of certain awards granted under our Former Parent's equity incentive program to Knowles equity awards and authorized the grant of several different forms of benefits, including stock options, RSUs, PSUs, and stock-settled appreciation rights ("SSARs"). In general, each award is subject to the same terms and conditions as were in effect prior to the Separation, except that our Former Parent's performance shares converted to time-based RSUs. In addition, the Company made a grant comprised of both stock options and time-based RSUs that vest 50% on the third and fourth anniversaries from the date of the grant. The Company also made grants of both stock options and time-based RSUs that vest evenly over each of the first three years following the date of the grant. The Company elected to use the straight-line method to attribute the expense over the service period of the awards. Stock Option s and SSARs The fair value of stock options granted by the Company was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. 2018 2017 2016 Risk-free interest rate 2.59% 1.73% to 1.93% 1.04% to 1.25% Dividend yield —% —% —% Expected life (years) 4.5 4.5 4.5 Volatility 41.2% 33.2% to 38.8% 37.0% to 39.6% Fair value at date of grant $4.83 to $6.59 $5.02 to $6.73 $3.76 to $4.83 The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, stage of life, and with similar market capitalization since there is not sufficient historical volatility data for Knowles common stock over the period commensurate with the expected term of stock options, as well as other relevant factors. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. It is based on the simplified method from the SEC’s safe harbor guidelines. The Company does not currently anticipate paying dividends over the expected term. The exercise price per share for the stock options granted by the Company was equal to the closing price of Knowles' stock on the NYSE on the date of the grant. The period during which options granted by the Company were exercisable was fixed by Knowles' Compensation Committee of the Board of Directors at the time of grant. Generally, stock options vest one-third on each of the first three anniversaries of the grant date and expire 7 years from the grant date. The following table summarizes the Company's SSAR and stock option activity for the year ended December 31, 2018 . SSARs Stock Options Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) (in millions, except share and per share amounts) Outstanding at December 31, 2017 850,516 $ 21.54 4,901,739 $ 18.36 Granted — — 963,692 14.34 Exercised (30,624 ) 12.26 (44,326 ) 11.02 Forfeited — — (120,458 ) 15.54 Expired (37,897 ) 22.79 (229,154 ) 21.63 Outstanding at December 31, 2018 781,995 $ 21.85 $ — 3.1 5,471,493 $ 17.64 $ 3.4 4.1 Exercisable at December 31, 2018 781,995 $ 21.85 $ — 3.1 3,517,954 $ 19.31 $ 2.2 3.5 The aggregate intrinsic value in the table above represents the difference between the Company's closing stock price on December 31, 2018 and the exercise price of each SSAR and stock option, multiplied by the number of in-the-money awards. There was no unrecognized compensation expense related to SSARs at December 31, 2018 . Unrecognized compensation expense related to stock options not yet exercisable at December 31, 2018 was $5.8 million . This cost is expected to be recognized over a weighted-average period of 1.3 years. Other information regarding the exercise of SSARs and stock options is listed below: Years Ended December 31, (in millions) 2018 2017 2016 SSARs Fair value of SSARs that are exercisable $ 1.8 $ 1.9 $ 1.9 Aggregate intrinsic value of SSARs exercised 0.1 0.2 0.1 Stock Options Cash received by Knowles for exercise of stock options 0.5 3.3 — Aggregate intrinsic value of options exercised 0.2 1.1 — RSUs The following table summarizes the Company's RSU balances for the year ended December 31, 2018 : Share units Weighted-average grant date fair value Unvested at December 31, 2017 2,202,576 $ 16.54 Granted 1,707,911 14.28 Vested (1,036,207 ) 16.95 Forfeited (427,849 ) 14.84 Unvested at December 31, 2018 2,446,431 $ 15.12 RSUs generally vest based on the passage of time. RSUs have a three year vesting schedule and vest one-third on each of the first three anniversaries of the grant date. At December 31, 2018 , $23.1 million of unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 1.3 years. PSUs In February 2018 and 2017, the Company granted PSUs to senior management. In each case, the awards will cliff vest three years following the grant date and the number of PSUs that may be earned and vest is based on the Company's revenues and stock price performance over a three year performance period. PSUs will be settled in shares of the Company's common stock. Depending on the Company's overall performance relative to revenues and stock price, the size of the PSU awards are subject to adjustment, up or down, resulting in awards at the end of the performance period that can range from 0% to 225% of the initial grant value. The Company will ratably recognize the expense over the applicable service period for each grant of PSUs and adjust the expense as appropriate. The fair value of the PSUs is determined by using a Monte Carlo simulation. The following table summarizes the Company's PSU balances for the year ended December 31, 2018 : Share units Weighted-average grant date fair value Unvested at December 31, 2017 176,000 $ 15.32 Granted 381,967 13.78 Vested — — Forfeited — — Unvested at December 31, 2018 557,967 $ 14.27 At December 31, 2018 , $6.3 million of unrecognized compensation expense related to PSUs is expected to be recognized over a weighted-average period of 1.9 years . |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments and Rental Commitments | The aggregate future minimum lease payments for capital leases, operating leases, and rental commitments as of December 31, 2018 are as follows: (in millions) Capital Leases Operating Leases 2019 $ 2.3 $ 9.7 2020 2.3 9.3 2021 2.3 8.8 2022 2.3 8.1 2023 2.3 6.1 2024 and thereafter 2.6 3.8 Total minimum lease payments 14.1 45.8 Less sublease rental income — (8.8 ) Net minimum lease payments 14.1 $ 37.0 Less imputed interest (1.6 ) Present value of capital lease obligations $ 12.5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Plan Obligations and Funded Status | The following tables summarize the balance sheet impact, including the benefit obligations, assets, and funded status associated with the Company's four defined benefit plans for non-U.S. participants at December 31, 2018 and 2017 . December 31, (in millions) 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 57.9 $ 52.4 Service cost 0.4 0.3 Interest cost 1.3 1.5 Benefits paid (1.5 ) (1.5 ) Actuarial (gain) loss (3.8 ) 0.5 Plan amendments (1) 1.0 0.3 Currency translation and other (2) (1.6 ) 4.4 Benefit obligation at end of year 53.7 57.9 Change in plan assets: Fair value of plan assets at beginning of year 51.8 43.8 Actual return on plan assets (1.2 ) 4.4 Company contributions 1.9 1.5 Benefits paid (1.5 ) (1.5 ) Currency translation and other (3.2 ) 3.6 Fair value of plan assets at end of year 47.8 51.8 Funded status $ (5.9 ) $ (6.1 ) Amounts recognized in the Consolidated Balance Sheets consist of: Other assets and deferred charges $ 1.0 $ 0.4 Other liabilities (6.9 ) (6.5 ) Funded status $ (5.9 ) $ (6.1 ) Accumulated other comprehensive loss: Net actuarial losses $ 18.0 $ 18.4 Prior service cost 1.3 0.3 Deferred taxes (3.8 ) (3.6 ) Total accumulated other comprehensive loss, net of tax 15.5 15.1 Net amount recognized $ 9.6 $ 9.0 Accumulated benefit obligation $ 52.6 $ 57.0 |
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets | Pension plans with accumulated benefit obligations in excess of plan assets consisted of the following at December 31, 2018 and 2017 : December 31, (in millions) 2018 2017 Projected benefit obligation $ 31.2 $ 35.3 Accumulated benefit obligation 31.0 34.8 Fair value of plan assets 24.7 28.8 |
Schedule of Net Periodic Benefit Costs | Components of the net periodic benefit cost (income) were as follows: Years Ended December 31, (in millions) 2018 2017 2016 Service cost $ 0.4 $ 0.3 $ 0.2 Interest cost 1.3 1.5 1.6 Expected return on plan assets (2.8 ) (2.7 ) (2.4 ) Amortization of recognized actuarial loss 0.5 0.5 0.3 Other (1) 1.3 — — Total net periodic benefit cost (income) $ 0.7 $ (0.4 ) $ (0.3 ) |
Schedule of Assumptions Used | The assumptions used in determining the benefit obligations were as follows: December 31, 2018 2017 Discount rate Philippines 8.25 % — Taiwan 1.25 % 1.25 % United Kingdom 2.80 % 2.44 % Weighted-average 2.78 % 2.40 % Average wage increase Philippines 6.00 % — Taiwan 4.25 % 4.00 % United Kingdom 4.40 % 4.50 % Weighted-average 4.41 % 4.46 % The assumptions used in determining the net periodic benefit cost (income) were as follows: Years Ended December 31, 2018 2017 2016 Discount rate Taiwan 1.25 % 1.50 % 1.10 % United Kingdom 2.44 % 2.64 % 3.90 % Weighted-average 2.40 % 2.60 % 3.72 % Average wage increase Taiwan 4.00 % 4.00 % 4.00 % United Kingdom 4.50 % 4.60 % 4.25 % Weighted-average 4.46 % 4.55 % 4.16 % Expected return on plan assets Taiwan 1.50 % 1.75 % 1.50 % United Kingdom 5.75 % 5.90 % 6.50 % Weighted-average 5.64 % 5.80 % 6.42 % |
Fair Value of Plan Assets by Asset Category | The fair values of plan assets by asset category within the ASC 820 hierarchy were as follows at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Asset category: Fixed income investments (1) $ 1.9 $ 18.5 $ — $ 20.4 $ 2.3 $ 12.7 $ — $ 15.0 Common stock funds (1) — 13.4 — 13.4 — 21.9 — 21.9 Real estate funds — 3.6 — 3.6 — 3.5 — 3.5 Cash and equivalents 0.3 0.8 — 1.1 0.1 0.9 — 1.0 Other 5.7 3.6 — 9.3 6.8 3.6 — 10.4 Total $ 7.9 $ 39.9 $ — $ 47.8 $ 9.2 $ 42.6 $ — $ 51.8 |
Schedule of Expected Benefit Payments | Estimated future benefit payments to retirees, which reflect expected future service, are as follows: (in millions) 2019 $ 1.9 2020 1.7 2021 1.7 2022 1.8 2023 1.8 2024-2028 11.5 |
Non-Qualified Supplemental Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet | Non-qualified Supplemental Retirement Plan Knowles provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. Effective December 31, 2013, the Company's participants no longer accrue benefits. The net amounts recognized on the balance sheet at December 31, 2018 and 2017 are shown in the table below: December 31, (in millions) 2018 2017 Accrued compensation and employee benefits $ (0.9 ) $ (0.2 ) Other liabilities (0.8 ) (1.6 ) Total accumulated other comprehensive loss, net of tax — 0.2 Net amount recognized $ (1.7 ) $ (1.6 ) |
Other Comprehensive (Loss) Ea_2
Other Comprehensive (Loss) Earnings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income | The amounts recognized in other comprehensive (loss) earnings were as follows: Year Ended December 31, 2018 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ (9.9 ) $ — $ (9.9 ) Employee benefit plans (0.4 ) 0.2 (0.2 ) Changes in fair value of cash flow hedges (1.0 ) 0.1 (0.9 ) Total other comprehensive loss $ (11.3 ) $ 0.3 $ (11.0 ) Year Ended December 31, 2017 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ 27.1 $ — $ 27.1 Employee benefit plans 1.3 — 1.3 Changes in fair value of cash flow hedges 4.4 (0.7 ) 3.7 Total other comprehensive earnings $ 32.8 $ (0.7 ) $ 32.1 Year Ended December 31, 2016 (in millions) Pre-tax Tax Net of tax Foreign currency translation $ 0.8 $ — $ 0.8 Employee benefit plans (5.0 ) (0.1 ) (5.1 ) Changes in fair value of cash flow hedges (2.2 ) 0.6 (1.6 ) Total other comprehensive loss $ (6.4 ) $ 0.5 $ (5.9 ) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the amounts reclassified from accumulated other comprehensive loss to earnings: Years Ended December 31, (in millions) Statement of Earnings Line 2018 2017 2016 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other expense (income), net $ 0.6 $ 0.6 $ 0.5 Tax benefit (Benefit from) provision for income taxes (0.1 ) — — Net of tax $ 0.5 $ 0.6 $ 0.5 Cash flow hedges: Net losses reclassified into earnings Various (1) $ 1.4 $ 0.5 $ 1.0 Tax benefit (Benefit from) provision for income taxes (0.3 ) (0.2 ) (0.1 ) Net of tax $ 1.1 $ 0.3 $ 0.9 December 31, 2018 and 2017 : (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2016 $ (3.2 ) $ (16.6 ) $ (112.3 ) $ (132.1 ) Other comprehensive earnings, net of tax 3.7 1.3 27.1 32.1 Balance at December 31, 2017 0.5 (15.3 ) (85.2 ) (100.0 ) Other comprehensive loss, net of tax (0.9 ) (0.2 ) (9.9 ) (11.0 ) Balance at December 31, 2018 $ (0.4 ) $ (15.5 ) $ (95.1 ) $ (111.0 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue and Earnings from continuing operations by market segment | Information regarding the Company's reportable segments is as follows: Years Ended December 31, (in millions) 2018 2017 2016 Revenues: Audio $ 682.2 $ 637.4 $ 661.9 Precision Devices 144.7 106.8 93.8 Total revenues $ 826.9 $ 744.2 $ 755.7 Earnings from continuing operations before interest and income taxes: Audio $ 105.7 $ 76.1 $ 88.8 Precision Devices 27.5 19.2 12.4 Total segments 133.2 95.3 101.2 Corporate expense / other 56.1 55.3 52.7 Interest expense, net 16.0 20.6 20.4 Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Depreciation and amortization: Audio $ 41.5 $ 45.2 $ 61.4 Precision Devices 7.8 5.6 4.3 Corporate 3.1 3.0 3.3 Total $ 52.4 $ 53.8 $ 69.0 Capital expenditures: Audio $ 68.2 $ 43.6 $ 27.8 Precision Devices 10.8 5.4 3.1 Corporate 1.1 0.5 1.3 Total $ 80.1 $ 49.5 $ 32.2 Research and development: Audio $ 94.5 $ 89.0 $ 89.2 Precision Devices 5.8 4.2 2.7 Corporate 0.3 0.2 0.1 Total $ 100.6 $ 93.4 $ 92.0 Information regarding assets of the Company's reportable segments: Total Assets December 31, (in millions) 2018 2017 Audio $ 1,409.1 $ 1,430.9 Precision Devices 136.9 103.4 Corporate / eliminations 1.9 13.8 Discontinued operations — 1.7 Total $ 1,547.9 $ 1,549.8 |
Revenue from External Customers by Geographic Areas | The following table details revenues by geographic location. Revenues are attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant, and equipment. These assets have been classified based on the geographic location of where they reside. The Company's businesses are based primarily in Asia, North America, and Europe. Revenues Long-Lived Assets Years Ended December 31, December 31, (in millions) 2018 2017 2016 2018 2017 Asia $ 605.4 $ 560.8 $ 578.7 $ 160.9 $ 144.9 United States 126.6 101.3 93.3 49.8 37.2 Europe 85.8 72.3 75.1 0.9 0.9 Other Americas 3.6 4.4 3.1 0.1 — Other 5.5 5.4 5.5 — — Total $ 826.9 $ 744.2 $ 755.7 $ 211.7 $ 183.0 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of information used in computing basic and diluted earnings per share | Basic and diluted earnings per share was computed as follows: Years Ended December 31, (in millions, except share and per share amounts) 2018 2017 2016 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Earnings (loss) from discontinued operations, net 2.1 61.8 (62.1 ) Net earnings (loss) $ 67.7 $ 68.3 $ (42.3 ) Basic earnings (loss) per common share: Earnings from continuing operations $ 0.73 $ 0.07 $ 0.22 Earnings (loss) from discontinued operations, net 0.02 0.69 (0.70 ) Net earnings (loss) $ 0.75 $ 0.76 $ (0.48 ) Weighted-average shares outstanding 90,050,051 89,329,794 88,667,098 Diluted earnings (loss) per common share: Earnings from continuing operations $ 0.72 $ 0.07 $ 0.22 Earnings (loss) from discontinued operations, net 0.02 0.68 (0.69 ) Net earnings (loss) $ 0.74 $ 0.75 $ (0.47 ) Diluted weighted-average shares outstanding 91,194,747 90,490,007 89,182,967 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (in millions, except per share amounts) Continuing Operations Net Earnings (Loss) Quarter Revenues Gross Profit Earnings (Loss) Per Share - Basic Per Share - Diluted Earnings (Loss) Per Share - Basic Per Share - Diluted 2018 First $ 178.5 $ 65.3 $ (0.4 ) $ — $ — $ (0.3 ) $ — $ — Second 188.4 73.2 4.4 0.05 0.05 4.6 0.05 0.05 Third 236.2 89.8 (17.8 ) (0.20 ) (0.20 ) (16.2 ) (0.18 ) (0.18 ) Fourth 223.8 94.3 79.4 0.88 0.87 79.6 0.88 0.87 2017 First $ 168.3 $ 59.3 $ (5.0 ) $ (0.06 ) $ (0.06 ) $ (3.2 ) $ (0.04 ) $ (0.04 ) Second 164.4 63.2 (30.9 ) (0.35 ) (0.35 ) (29.7 ) (0.33 ) (0.33 ) Third 196.0 74.1 10.5 0.12 0.12 15.7 0.18 0.17 Fourth 215.5 89.4 31.9 0.36 0.35 85.5 0.96 0.94 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | Jul. 07, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($)reporting_unit | Dec. 31, 2018USD ($)segments | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2015USD ($) |
Accounting Policies [Line Items] | |||||||||
Defined Benefit Plan, Other Cost (Credit) | $ 0.3 | $ 0.2 | |||||||
Proceeds from Divestiture of Businesses | $ 10 | 123.1 | 40.6 | ||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Number of Reporting Units | reporting_unit | 3 | ||||||||
Goodwill | $ 887.9 | $ 884.9 | 887.9 | 884.9 | $ 871.6 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | ||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Total impairment charges | 0 | 19.9 | 0.2 | ||||||
Revenue Recognition [Abstract] | |||||||||
Accounts Receivable, Gross, Current | $ 128.6 | 127 | 128.6 | 127 | |||||
Revenue Recognition, Sales Discounts and Rebates | 8.1 | 9.1 | 8.7 | ||||||
Revenue Recognition, Sales Returns, Reserve for Sales Returns | $ 7.7 | 8.5 | 5.1 | ||||||
Number of reportable segments | segments | 2 | ||||||||
Document Fiscal Year Focus | 2,018 | ||||||||
Noncash Investing and Financing Items [Abstract] | |||||||||
Purchases of property and equipment included in accounts payable | $ 7.1 | 8.5 | 1.5 | ||||||
Maximum | |||||||||
Accounting Policies [Line Items] | |||||||||
Operating Lease, Liability | $ 45 | ||||||||
Operating Lease, Right-of-Use Asset | 42 | ||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||||
Minimum | |||||||||
Accounting Policies [Line Items] | |||||||||
Operating Lease, Liability | 40 | ||||||||
Operating Lease, Right-of-Use Asset | $ 37 | ||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||
Percentage of fair value in excess of carrying amount | 50.00% | 50.00% | |||||||
Buildings and improvements | Maximum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 31 years 6 months | ||||||||
Buildings and improvements | Minimum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Machinery and equipment | Maximum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 7 years | ||||||||
Machinery and equipment | Minimum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 1 year 6 months | ||||||||
Furniture and fixtures | Maximum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Furniture and fixtures | Minimum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 2 years | ||||||||
Vehicles | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Software and software development costs | Maximum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Software and software development costs | Minimum | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Speaker and Receiver Product Line | Discontinued Operations, Disposed of by Sale [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Proceeds from Divestiture of Businesses | $ 40.6 | ||||||||
Patents | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 0 | ||||||||
Patents | Maximum | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||
Patents | Minimum | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||||||
Impairment of Fixed and Other Assets | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Total impairment charges | 0.5 | ||||||||
Precision Devices | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Goodwill | $ 28 | 25 | $ 28 | 25 | 25 | ||||
Precision Devices | Timing Device Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Proceeds from Divestiture of Businesses | 135.1 | ||||||||
Audio | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Goodwill | 859.9 | $ 859.9 | 859.9 | 859.9 | $ 846.6 | ||||
Property, Plant and Equipment [Abstract] | |||||||||
Total impairment charges | 0 | $ 21.3 | $ 0.5 | ||||||
Prepaid Expenses and Other Current Assets [Member] | Precision Devices | Timing Device Business [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Proceeds from Divestiture of Businesses | $ 10 | ||||||||
Mobile Consumer Electronics [Member] | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Goodwill | 722.1 | 722.1 | |||||||
Hearing Health Technologies [Member] | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Goodwill | 137.8 | 137.8 | |||||||
Capacitors [Member] | |||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||
Goodwill | 28 | $ 28 | |||||||
Internal Revenue Service (IRS) [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Increase (Decrease) in Income Taxes | 17.8 | ||||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 36 | $ 36 |
Disposed and Discontinued Ope_3
Disposed and Discontinued Operations (Details) - USD ($) | Jul. 07, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 28, 2017 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from the sale of business | $ 10,000,000 | $ 123,100,000 | $ 40,600,000 | ||||
Gain (Loss) on Disposition of Business | (1,600,000) | (62,300,000) | 25,600,000 | ||||
Impairment of intangible assets | 16,200,000 | ||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 0 | 0 | 2,800,000 | $ 2,000,000 | |||
Disposal Group, Including Discontinued Operation, Assets | 0 | 1,700,000 | |||||
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 5,600,000 | |||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 92,200,000 | 156,400,000 | ||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 0 | 61,500,000 | 136,100,000 | ||||
Disposal Group, Including Discontinued Operation, Impairment of Long-Lived Assets | 0 | 400,000 | 400,000 | ||||
Disposal Group, Including Discontinued Operation, Cost of Goods Sold, Restructuring Charges | 0 | 100,000 | 8,900,000 | ||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 0 | 30,200,000 | 11,000,000 | ||||
Disposal Group, Including Discontinued Operation, Research and Development Expense | 0 | 7,700,000 | 15,100,000 | ||||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 0 | 18,500,000 | 26,900,000 | ||||
Disposal Group, Including Discontinued Operation, Restructuring Charges | 0 | 200,000 | 3,400,000 | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | 26,400,000 | 45,400,000 | ||||
Disposal Group, Including Discontinued Operation, Other Expense | 1,300,000 | ||||||
Disposal Group, Including Discontinued Operation, Other Income | (200,000) | (900,000) | |||||
Gain (Loss) on Disposition of Business | (1,600,000) | (62,300,000) | 25,600,000 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 1,800,000 | 64,800,000 | (59,100,000) | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | (300,000) | 3,000,000 | 3,000,000 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 2,100,000 | 61,800,000 | (62,100,000) | ||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 1,200,000 | ||||||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets, Current | 500,000 | ||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 1,700,000 | ||||||
Disposal Group, Including Discontinued Operation, Assets | 1,700,000 | ||||||
Disposal Group, Including Discontinued Operation, Accounts Payable, Current | 100,000 | ||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 5,500,000 | ||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 5,600,000 | ||||||
Disposal Group, Including Discontinued Operation, Liabilities | 5,600,000 | ||||||
Depreciation, Discontinued Operations | 2,300,000 | 3,300,000 | |||||
Amortization of intangible Assets, Discontinued Operations | 1,200,000 | 1,400,000 | |||||
Capital Expenditure, Discontinued Operations | 2,100,000 | 6,500,000 | |||||
Timing Device Business [Member] | Precision Devices | Discontinued Operations, Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 400,000 | ||||||
ProceedsPurchasePriceAdjustment | $ 1,800,000 | ||||||
Proceeds from the sale of business | 135,100,000 | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 130,000,000 | ||||||
Speaker and Receiver Product Line | Discontinued Operations, Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 26,900,000 | ||||||
Proceeds from the sale of business | $ 40,600,000 | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 45,000,000 | ||||||
Gain (Loss) on Disposition of Business | $ 25,600,000 | ||||||
Prepaid Expenses and Other Current Assets [Member] | Timing Device Business [Member] | Precision Devices | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from the sale of business | $ 10,000,000 | ||||||
Accounts Payable [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Capital Expenditure, Discontinued Operations | $ 0 | $ 100,000 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) - USD ($) $ in Millions | Jan. 19, 2018 | Jan. 11, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | $ 223.8 | $ 236.2 | $ 188.4 | $ 178.5 | $ 215.5 | $ 196 | $ 164.4 | $ 168.3 | $ 826.9 | $ 744.2 | $ 755.7 | |||||
Net earnings (loss) | 79.6 | $ (16.2) | $ 4.6 | $ (0.3) | 85.5 | $ 15.7 | $ (29.7) | $ (3.2) | 67.7 | 68.3 | $ (42.3) | |||||
Goodwill | 887.9 | 884.9 | $ 887.9 | 887.9 | 884.9 | $ 871.6 | ||||||||||
Compex Corporation [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 16 | |||||||||||||||
Cash and short-term investments | 0.2 | |||||||||||||||
Fair value of total consideration | 18.7 | |||||||||||||||
Business Combination, Consideration Transferred, Other | 0.6 | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1.7 | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 2.1 | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2 | |||||||||||||||
Business Combination, Contingent Consideration, Asset, Noncurrent | 0.2 | |||||||||||||||
Goodwill | 3 | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (0.2) | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 18.7 | |||||||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 12.6 | |||||||||||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 3.4 | |||||||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | |||||||||||||||
17Q1 Capacitor Acquisition [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 3.7 | $ 1 | 2.5 | |||||||||||||
Scenario, Forecast [Member] | 17Q1 Capacitor Acquisition [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 0.2 | |||||||||||||||
Customer relationships (1) | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3.3 | |||||||||||||||
Customer relationships (1) | Compex Corporation [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 7.3 | |||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||||||||||
Unpatented technologies (1) (2) | Compex Corporation [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2 | |||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||||||||||||||
Trademarks [Member] | Compex Corporation [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 0.4 | |||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||||||||||||
Precision Devices | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill, Translation and Purchase Accounting Adjustments | $ 0.1 | |||||||||||||||
Goodwill | $ 28 | $ 25 | $ 28 | $ 28 | $ 25 | $ 25 | ||||||||||
Other liabilities | Compex Corporation [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1 |
Acquisition Acquisition - Selec
Acquisition Acquisition - Selected Unaudited Pro-forma Combined Statement of Earnings (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition, Pro Forma Information [Abstract] | |||||||||||
Revenues | $ 223.8 | $ 236.2 | $ 188.4 | $ 178.5 | $ 215.5 | $ 196 | $ 164.4 | $ 168.3 | $ 826.9 | $ 744.2 | $ 755.7 |
Earnings (Loss) | $ 79.4 | $ (17.8) | $ 4.4 | $ (0.4) | $ 31.9 | $ 10.5 | $ (30.9) | $ (5) | $ 65.6 | $ 6.5 | $ 19.8 |
Per Share - Basic | $ 0.88 | $ (0.20) | $ 0.05 | $ 0 | $ 0.36 | $ 0.12 | $ (0.35) | $ (0.06) | $ 0.73 | $ 0.07 | $ 0.22 |
Per Share - Diluted | $ 0.87 | $ (0.20) | $ 0.05 | $ 0 | $ 0.35 | $ 0.12 | $ (0.35) | $ (0.06) | $ 0.72 | $ 0.07 | $ 0.22 |
Compex Corporation [Member] | |||||||||||
Business Acquisition, Pro Forma Information [Abstract] | |||||||||||
Pro-forma | $ 827.5 | $ 755.7 | |||||||||
Pro-forma | $ 66.3 | $ 7.4 | |||||||||
Pro-forma | $ 0.74 | $ 0.08 | |||||||||
Pro-forma | $ 0.73 | $ 0.08 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment charges on fixed and other assets | $ 0 | $ 5.5 | $ 0.9 |
Impairment of intangible assets | 16.2 | ||
Total impairment charges | 0 | 19.9 | 0.2 |
Impairment of Fixed and Other Assets | |||
Impairment charges on fixed and other assets | 0 | 5.1 | 0.5 |
Total impairment charges | 0.5 | ||
Cost of goods | |||
Total impairment charges | 1.4 | 0.3 | |
Operating Expense | |||
Total impairment charges | 19.9 | 0.2 | |
Audio | |||
Total impairment charges | $ 0 | $ 21.3 | $ 0.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 70.8 | $ 65.9 |
Work in progress | 30.2 | 21.3 |
Finished goods | 65.3 | 60.8 |
Subtotal | 166.3 | 148 |
Less reserves | (26.2) | (22.4) |
Total | $ 140.1 | $ 125.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | $ 609.7 | $ 552 | |
Less Accumulated depreciation | (398) | (369) | |
Property, plant and equipment, net | 211.7 | 183 | |
Depreciation | 45.9 | 46.5 | $ 50.8 |
Impairment of Long-Lived Assets Held-for-use | 0 | 5.5 | 0.9 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 7.5 | 7.7 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 102.3 | 103.2 | |
Machinery, equipment, and other | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 499.9 | 441.1 | |
Impairment of Fixed and Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 5.1 | $ 0.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 884.9 | |
Acquisitions | 3 | |
Foreign currency translation | $ 13.3 | |
Ending balance | 887.9 | 884.9 |
Audio | ||
Goodwill [Roll Forward] | ||
Beginning balance | 859.9 | |
Acquisitions | 0 | |
Foreign currency translation | 13.3 | |
Ending balance | 859.9 | 859.9 |
Precision Devices | ||
Goodwill [Roll Forward] | ||
Beginning balance | 25 | |
Acquisitions | 3 | |
Foreign currency translation | 0 | |
Ending balance | $ 28 | $ 25 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 11, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 56.5 | $ 46.8 | ||
Accumulated Amortization | 31.8 | 25.3 | ||
Intangible Assets, Net | 56.7 | 53.5 | ||
Impairment of intangible assets | 16.2 | |||
Selling and Administrative Expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense | 6.5 | 7.3 | $ 18.2 | |
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 0.5 | 0.3 | ||
Accumulated Amortization | 0.2 | 0.2 | ||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 40.8 | 40.8 | ||
Accumulated Amortization | 26.9 | 22.2 | ||
Customer relationships (1) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 10.6 | 3.3 | ||
Accumulated Amortization | $ 2 | 0.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3.3 | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Unpatented technologies (1) (2) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 4.4 | 2.4 | ||
Accumulated Amortization | 2.7 | 2.2 | ||
Other (1) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 0.2 | 0 | ||
Accumulated Amortization | 0 | 0 | ||
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 32 | $ 32 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trademarks | ||
Unamortized intangible assets: | ||
Gross Carrying Amount | $ 32 | $ 32 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future Amortization Expense [Abstract] | |
2,018 | $ 6.4 |
2,019 | 6.4 |
2,020 | 6.3 |
2,021 | 1.1 |
2,022 | $ 1 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Restructuring and exit costs | $ 0.9 | $ 4.8 |
Sales volume rebates | 4.7 | 4.7 |
Warranty | 2.4 | 2.5 |
Accrued taxes other than income taxes | 2.1 | 2.4 |
Warranty | 0.5 | 2.1 |
Accrued Insurance | 1.6 | 1.9 |
Hedging liability | 0.6 | 0 |
Other | 7.3 | 9.8 |
Other accrued expenses | $ 20.1 | $ 28.2 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Transition tax liability | $ 0 | $ 25.9 |
Deferred compensation, including defined benefit plans | 17 | 18.7 |
Long-term capital leases | 10.1 | 12.3 |
Unrecognized tax benefits | 3.5 | 6.5 |
Restructuring and exit costs | 0.2 | 0.3 |
Other | 3.5 | 4.2 |
Total | $ 34.3 | $ 67.9 |
Accrued Expenses and Other Li_5
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities - Product Warrant Accrual Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Warranty Accrual [Roll Forward] | ||
Beginning balance, January 1 | $ 2.1 | $ 1 |
Provision for warranties | 0.4 | 2.8 |
Settlements made | (1.9) | (1.3) |
Other adjustments, including currency translation | (0.1) | (0.4) |
Ending balance, December 31 | $ 0.5 | $ 2.1 |
Restructuring and Related Act_2
Restructuring and Related Activities - Costs Recognized and Remaining Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2.1 | $ 10.2 | $ 10.1 |
Restructuring Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.7 | 6.2 | 8.6 |
Cost of Goods Sold, Restructuring Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.4 | 4 | 1.5 |
Severance Pay and Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2.1 | 8.4 | 7.5 |
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 1.8 | $ 2.6 |
Restructuring and Related Act_3
Restructuring and Related Activities - Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 2.1 | $ 10.2 | $ 10.1 |
Document Fiscal Year Focus | 2,018 | ||
Restructuring Reserve, Accrual Adjustment | $ 1.2 | ||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 5.1 | 2.8 | 8.8 |
Restructuring charges | 2.1 | 10.2 | 10.1 |
Payments | (6) | (8.3) | (16.1) |
Other, including foreign currency | (0.1) | 0.4 | |
Ending balance | 1.1 | 5.1 | 2.8 |
Severance Pay and Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 4.7 | 2.4 | 7.7 |
Restructuring charges | 2.1 | 8.4 | 7.5 |
Payments | (5.9) | (6.5) | (12.8) |
Other, including foreign currency | (0.1) | 0.4 | |
Ending balance | 0.8 | 4.7 | 2.4 |
Facility Closing [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0.4 | 0.4 | 1.1 |
Restructuring charges | 0 | 1.8 | 2.6 |
Payments | (0.1) | (1.8) | (3.3) |
Other, including foreign currency | 0 | 0 | |
Ending balance | 0.3 | 0.4 | 0.4 |
Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.2 | 2 | 1.6 |
Audio | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1.4 | 8.1 | 7.1 |
Precision Devices | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.5 | 0.1 | 1.4 |
Restructuring Charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 1.7 | 6.2 | 8.6 |
Cost of Goods Sold, Restructuring Charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 0.4 | $ 4 | $ 1.5 |
Restructuring and Related Act_4
Restructuring and Related Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 1.1 | $ 5.1 | $ 2.8 | $ 8.8 |
Other accrued expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 0.9 | 4.8 | ||
Other liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 0.2 | $ 0.3 |
Hedging Transactions and Deri_2
Hedging Transactions and Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 0.4 | $ (0.5) | $ 0.7 |
Unrealized net gains (losses) arising during period | (2) | 3.4 | $ (2.5) |
Foreign Exchange Forward [Member] | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 41.6 | $ 17.9 |
Hedging Transactions and Deri_3
Hedging Transactions and Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 14, 2017 | Nov. 12, 2014 | |
Derivatives, Fair Value [Line Items] | |||||
Cost of goods sold | $ 503,900,000 | $ 452,800,000 | $ 458,200,000 | ||
Interest Revenue (Expense), Net | (16,000,000) | (20,600,000) | (20,400,000) | ||
Other Nonoperating Income (Expense) | (700,000) | 100,000 | 3,500,000 | ||
Fair value | 600,000 | 0 | |||
Unrealized net gains (losses) arising during period | $ (2,000,000) | 3,400,000 | (2,500,000) | ||
Document Fiscal Year Focus | 2,018 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | $ 50,000,000 | $ 100,000,000 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset | $ 200,000 | 600,000 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Other accrued expenses | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair value | (600,000) | 0 | |||
Not Designated as Hedging Instrument, Economic Hedge [Member] | Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, notional amount | 19,800,000 | 6,400,000 | |||
Not Designated as Hedging Instrument, Economic Hedge [Member] | Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets [Member] | Foreign Currency Economic Hedge | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair value | 200,000 | 0 | |||
Cost of Sales | Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | (1,400,000) | ||||
Cost of Sales | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | ||||
Cost of Sales | Not Designated as Hedging Instrument, Economic Hedge [Member] | Not Designated as Hedging Instrument | Foreign Currency Economic Hedge | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | ||||
Interest Expense [Member] | Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | 0 | 0 | ||
Interest Expense [Member] | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | (800,000) | (1,300,000) | ||
Interest Expense [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | Not Designated as Hedging Instrument | Foreign Currency Economic Hedge | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | 0 | 0 | ||
Other expense (income), net | Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | 300,000 | 300,000 | ||
Other expense (income), net | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | 0 | 0 | 0 | ||
Other expense (income), net | Not Designated as Hedging Instrument, Economic Hedge [Member] | Not Designated as Hedging Instrument | Foreign Currency Economic Hedge | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on derivatives | $ 900,000 | $ (300,000) | $ 2,000,000 |
Hedging Transaction and Derivat
Hedging Transaction and Derivative Instruments - Fair Value of Derivatives Qualifying as Hedging Instrument (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Unrealized net gains (losses) arising during period | $ (2) | $ 3.4 | $ (2.5) |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument | Cash Flow Hedging | Other expense (income), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | 0 | (0.3) | (0.3) |
Foreign Currency Economic Hedge | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument, Economic Hedge [Member] | Other expense (income), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | (0.9) | 0.3 | (2) |
Interest Rate Swap [Member] | Designated as Hedging Instrument | Cash Flow Hedging | Other expense (income), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | 0 | 0 | 0 |
Cash flow hedges | Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (2.5) | 3.6 | (2.5) |
Cash flow hedges | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 0.1 | $ 0.3 | $ (0.7) |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 172.5 | |
Long-term borrowings [Abstract] | ||
Long-term debt | 158.1 | $ 192.6 |
Less: current maturities | 0 | 0 |
Long-term debt (noncurrent) | 158.1 | 192.6 |
Term Loan and Revolving Credit Facility Due January 2019 [Member] | ||
Long-term borrowings [Abstract] | ||
Less: current maturities | 0 | 0 |
Long-term debt (noncurrent) | $ 9 | 50.7 |
Convertible Debt | Convertible Notes Due Twenty Twenty One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 17250000000.00% | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | $ 9 | |
Long-term borrowings [Abstract] | ||
Convertible Debt | 149.1 | 141.9 |
Line of Credit | Credit Facility Due October 11, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term borrowings [Abstract] | ||
Long-term Line of Credit | $ 9 | |
Line of Credit | Term Loan and Revolving Credit Facility Due January 2019 [Member] | ||
Long-term borrowings [Abstract] | ||
Long-term Line of Credit | $ 50.7 |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit - Schedule of Interest Expense and Interest Income (Details) - USD ($) $ in Millions | Feb. 09, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Document Fiscal Year Focus | 2,018 | |||
Interest expense(1) | $ 16.6 | $ 20.8 | $ 20.5 | |
Interest income | (0.6) | (0.2) | (0.1) | |
Interest Revenue (Expense), Net | (16) | (20.6) | (20.4) | |
Write off of Deferred Debt Issuance Cost | $ 0.7 | 0.4 | ||
Maturities of Long-term Debt [Abstract] | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 172.5 | |||
Convertible Debt | Convertible Notes Due Twenty Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Expense, Debt, Excluding Amortization | 5.6 | 5.6 | 3.7 | |
Interest Expense, Debt | 12.8 | $ 12.3 | $ 7.9 | |
Maturities of Long-term Debt [Abstract] | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | $ 9 |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit Borrowings and Lines of Credit - Narrative (Details) | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Oct. 11, 2017USD ($) | May 04, 2016$ / shares | Feb. 09, 2016USD ($) | Feb. 08, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 30, 2014USD ($) | Jan. 27, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 158,100,000 | $ 192,600,000 | ||||||||
Long-term Debt, Current Maturities | $ 0 | $ 0 | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 54.2741 | |||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 18.4250 | |||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | $ / shares | $ 0.02 | $ 0.69 | $ (0.70) | |||||||
Long-term debt | $ 158,100,000 | $ 192,600,000 | ||||||||
Net deferred tax asset | $ 13,100,000 | 22,400,000 | ||||||||
Document Fiscal Year Focus | 2,018 | |||||||||
Payments for Hedge, Financing Activities | $ 0 | 0 | $ 44,500,000 | |||||||
Proceeds from issuance of warrants | $ 0 | 0 | 39,100,000 | |||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||
Line of Credit Facility, Additional Incremental Borrowing Capacity | 100,000,000 | 250,000,000 | ||||||||
Letter of Credit | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | $ 25,000,000 | ||||||||
Bridge Loan | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | |||||||||
Convertible Notes Due Twenty Twenty One [Member] | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 17250000000.00% | |||||||||
Debt instrument, face amount | $ 172,500,000 | 172,500,000 | ||||||||
Debt instrument, convertible, carrying amount of equity component | 29,900,000 | 29,900,000 | ||||||||
Debt Issuance Costs Attributable to the Equity Component | 1,300,000 | |||||||||
Interest Expense, Debt, Excluding Amortization | 5,600,000 | 5,600,000 | 3,700,000 | |||||||
Amortization of Debt Issuance Costs | 900,000 | 900,000 | 600,000 | |||||||
Amortization of Debt Discount (Premium) | 6,300,000 | 5,800,000 | 3,600,000 | |||||||
Debt Issuance Costs, Net | 5,000,000 | |||||||||
Net deferred tax asset | 500,000 | |||||||||
Debt Instrument, Unamortized Discount | (23,400,000) | (30,600,000) | ||||||||
Convertible Notes Payable | 149,100,000 | 141,900,000 | ||||||||
Convertible Notes Payable, Current | 0 | 0 | ||||||||
Convertible Notes Payable, Noncurrent | 149,100,000 | 141,900,000 | ||||||||
Debt Instrument, Fair Value Disclosure | 178,200,000 | |||||||||
Payments for Hedge, Financing Activities | 44,500,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 21.1050 | |||||||||
Proceeds from issuance of warrants | 39,100,000 | |||||||||
Interest Expense, Debt | $ 12,800,000 | 12,300,000 | $ 7,900,000 | |||||||
Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt covenant, EBITDA to interest ratio | 3.25 | |||||||||
Debt Instrument, Covenant, Debt to EBITDA, Maximum | 3.75 | |||||||||
Debt Instrument, Covenant, Senior Secured Leverage Ratio, Maximum | 3.25 | |||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | |||||||||
Credit Facility Due October 11, 2022 [Member] | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Line of Credit | $ 9,000,000 | |||||||||
Credit Facility Due October 11, 2022 [Member] | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 100,000,000 | |||||||||
Credit Facility Due October 11, 2022 [Member] | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 9,000,000 | 50,700,000 | ||||||||
Credit Facility Due October 11, 2022 [Member] | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | |||||||||
Term Loan and Revolving Credit Facility Due January 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Current Maturities | 0 | 0 | ||||||||
Long-term debt | $ 9,000,000 | 50,700,000 | ||||||||
Term Loan and Revolving Credit Facility Due January 2019 [Member] | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Line of Credit | $ 50,700,000 | |||||||||
Senior Secured Note Issued January 2014 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Credit Agreement Amendment February 2016 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 300,000,000 | |||||||||
Credit Agreement Amendment February 2016 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | |||||||||
London Interbank Offered Rate (LIBOR) | Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.56% | 3.58% | 3.23% | |||||||
Minimum | Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Maximum | Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | |||||||||
Maximum | Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, accordion feature, increase limit | $ 200,000,000 | |||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Credit Facility Due October 11, 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Weighted Average | Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.24% | 0.36% | 0.39% |
Income Taxes - Income before Ta
Income Taxes - Income before Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2,018 | ||
Components of Earnings before Income Tax [Abstract] | |||
Domestic | $ (34.1) | $ 402.7 | $ (51.1) |
Foreign | 95.2 | (383.3) | 79.2 |
(Loss) earnings before income taxes | $ 61.1 | $ 19.4 | $ 28.1 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2,018 | ||
Current: | |||
U.S. Federal | $ (25) | $ 28.9 | $ 0 |
State and local | 0.1 | 0.1 | 0.1 |
Foreign | 11.6 | 11.7 | 6.8 |
Total current tax expense | (13.3) | 40.7 | 6.9 |
Deferred: | |||
U.S. Federal | 7.8 | (26.8) | 0.8 |
State and local | 0.2 | 0 | 0.2 |
Foreign | 0.8 | (1) | 0.4 |
Total deferred tax (benefit) expense | 8.8 | (27.8) | 1.4 |
Total income tax expense | $ (4.5) | $ 12.9 | $ 8.3 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Holiday [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Effective Income Tax Rate Reconciliation [Abstract] | |||
U.S. Federal income tax rate | 21.00% | 35.00% | 35.00% |
State and local taxes, net of Federal income tax benefit | 0.40% | (0.20%) | 1.10% |
Foreign operations tax effect | 4.00% | 27.00% | (22.50%) |
Research & experimentation tax credits | (5.00%) | (11.60%) | (6.60%) |
Valuation allowance | 22.90% | 60.80% | 69.60% |
Tax contingencies | (4.30%) | 6.60% | (0.60%) |
Tax holiday | (24.30%) | (78.00%) | (64.20%) |
Foreign taxes | 0.90% | (5.00%) | 2.80% |
Other, principally non-tax deductible items (1) | 1.40% | (0.80%) | 3.20% |
Stock-based compensation | 3.10% | 9.30% | 9.60% |
Other, principally non-tax deductible items (1) | 3.20% | 13.50% | 1.90% |
Transition tax | (28.90%) | 89.70% | 0.00% |
Tax reform | (1.70%) | (85.30%) | 0.00% |
Prior period items | (0.10%) | 5.50% | 0.20% |
Effective income tax rate | (7.40%) | 66.50% | 29.50% |
Foreign Tax Authority | |||
Income Tax Holiday [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 18.50% | ||
Effective Income Tax Rate Reconciliation [Abstract] | |||
Tax holiday | (7.20%) | ||
Effective income tax rate reconciliation, tax holiday | $ 13.3 | $ 13.8 | $ 16.3 |
Income tax holiday benefit (usd per share) | $ 0.15 | $ 0.15 | $ 0.18 |
Inland Revenue, Singapore (IRAS) | Foreign Tax Authority | |||
Effective Income Tax Rate Reconciliation [Abstract] | |||
Foreign statutory income tax rate | 24.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||
Document Fiscal Year Focus | 2,018 | |
Deferred tax assets, valuation allowance, judgment regarding the realizability of the beginning of the year deferred tax asset | $ 131.2 | $ 99.7 |
Amount of change in deferred tax assets valuation allowance | 1 | |
Deferred tax assets: | ||
Accrued compensation, principally post-retirement, and other employee benefits | 15.1 | 13.7 |
Accrued expenses, principally for state income taxes, interest, and warranty | 4.6 | 5.9 |
Net operating loss and other carryforwards | 155.9 | 115.6 |
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes | 3.9 | 3.6 |
Convertible Note Hedges | 5.7 | 7.3 |
Plant and equipment, principally due to differences in depreciation | 9.4 | 9.6 |
Total gross deferred tax assets | 194.6 | 155.7 |
Valuation allowance | (131.2) | (99.7) |
Total deferred tax assets | 63.4 | 56 |
Deferred tax liabilities: | ||
Intangible assets, principally due to different tax and financial reporting bases and amortization lives | (8.7) | (10.3) |
Debt discount on convertible notes | (4.4) | (5.7) |
Other liabilities | (37.2) | (17.6) |
Total gross deferred tax liabilities | (50.3) | (33.6) |
Classified as follows in the Consolidated Balance Sheets: | ||
Other assets and deferred charges (non-current deferred tax assets) | 15.2 | 22.4 |
Deferred income taxes (non-current deferred tax liabilities) | (2.1) | 0 |
Net deferred tax asset | $ 13.1 | $ 22.4 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Abstract] | ||
Deferred tax assets, valuation allowance, judgment regarding the realizability of the beginning of the year deferred tax asset | $ 131.2 | $ 99.7 |
Amount of change in deferred tax assets valuation allowance | 1 | |
Income Tax Credits [Abstract] | ||
Undistributed earnings of foreign subsidiaries | 1,400 | |
State and Local Jurisdiction | ||
Net Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards, subject to expiration | 96.6 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Subject to Expiration in 1-5 years | 0.7 | |
Net Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | 379.3 | |
Operating Loss Carryforwards, Subject to Expiration in 10-20 years | 1.9 | |
Operating Loss Carryforwards, Not Subject to Expiration | 376.7 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Subject to Expiration in 1-5 years | 0 | |
Net Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | 30.8 | |
Operating Loss Carryforwards, Subject to Expiration in 5-10 years | 11.9 | |
Operating Loss Carryforwards, Subject to Expiration in 10-20 years | 18.9 | |
Research Tax Credit Carryforward | ||
Income Tax Credits [Abstract] | ||
Tax credit carryforward amount | 18.7 | |
Foreign Tax Credit Carryforward | ||
Income Tax Credits [Abstract] | ||
Tax credit carryforward amount | 14.6 | |
State Tax Credit Carryforward | ||
Income Tax Credits [Abstract] | ||
Tax credit carryforward amount | 16.8 | |
Tax Year 2019 Through Tax Year 2033 | State Tax Credit Carryforward | ||
Income Tax Credits [Abstract] | ||
Tax credit carryforward amount | 2.4 | |
After Tax Year 2033 | State Tax Credit Carryforward | ||
Income Tax Credits [Abstract] | ||
Tax credit carryforward amount | $ 14.4 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Interest expense on income taxes | $ (0.3) | $ (1.1) | $ 0.3 |
Accrued interest on income taxes | 0 | 0.4 | 1.4 |
Potential penalty expense | 0.1 | 0.2 | 0 |
Total accrued liabilities | 0.3 | 0.2 | |
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 0.1 | ||
Potential benefit on the effective tax rate | 3.5 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits beginning balance | 12.5 | 11.8 | 12.8 |
Foreign exchange fluctuations | (0.5) | ||
Additions based on tax positions related to the current year | 0.1 | 2.6 | |
Additions for tax positions of prior years | 0.3 | 0.6 | |
Reductions for tax positions due to lapsed statutes of limitations | (2.5) | (1.3) | (0.5) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (0.3) | ||
Tax reform | (1.5) | ||
Foreign exchange fluctuations | 0.3 | ||
Unrecognized tax benefits ending balance | 10.1 | 12.5 | $ 11.8 |
Amount of change in deferred tax assets valuation allowance | 1 | ||
Transition tax liability | $ 0 | $ 25.9 |
Equity Incentive Program - Shar
Equity Incentive Program - Share Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Pre-tax compensation expense | $ 27 | $ 24.7 | $ 20.9 |
Tax benefit | 0 | 0 | 0 |
Total stock-based compensation expense, net of tax | 27 | 24.7 | 20.9 |
Selling and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Pre-tax compensation expense | 17.6 | 16.8 | 14.7 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Pre-tax compensation expense | 7.8 | 6.1 | 4.7 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Pre-tax compensation expense | $ 1.6 | $ 1.8 | $ 1.5 |
Equity Incentive Program - Stoc
Equity Incentive Program - Stock Options and SSARs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SSARs, Number of Shares (in shares): | |||
Forfeited | 0 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 2.59% | ||
Dividend yield | 0.00% | 0.00% | |
Expected life (years) | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Volatility | 41.20% | ||
SSARs, Weighted-average grant date fair value (in dollars per share): | |||
Granted | $ 14.34 | ||
Stock Options, Number of Shares (in share): | |||
Beginning balance | 4,901,739 | ||
Granted | 963,692 | ||
Exercised | (44,326) | ||
Forfeited | (120,458) | ||
Expired | (229,154) | ||
Ending balance | 5,471,493 | 4,901,739 | |
Exercisable | 3,517,954 | ||
Stock Options, Weighted Average Exercise Price (in dollars per share): | |||
Beginning balance | $ 18.36 | ||
Granted | 14.34 | ||
Exercised | 11.02 | ||
Forfeited | 15.54 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 21.63 | ||
Ending balance | 17.64 | $ 18.36 | |
Exercisable | $ 19.31 | ||
SARS and Options, Additional Disclosures | |||
Options, aggregate intrinsic value, outstanding | $ 3,400 | ||
Options, aggregate intrinsic value, exercisable | $ 2,200 | ||
Options, weighted average remaining contractual term, outstanding | 4 years 1 month 6 days | ||
Options, weighted average remaining contractual term, exercisable | 3 years 6 months | ||
Unrecognized compensation expense | $ 5,800 | ||
Weighted average period for compensation expense to be recognized | 1 year 3 months 18 days | ||
SSARs and Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield | 0.00% | ||
SSARs | |||
SSARs, Number of Shares (in shares): | |||
Beginning balance | 850,516 | ||
Granted | 0 | ||
Exercised | (30,624) | ||
Expired | (37,897) | ||
Ending balance | 781,995 | 850,516 | |
Exercisable | 781,995 | ||
SSARs, Weighted-average grant date fair value (in dollars per share): | |||
Beginning balance | $ 21.54 | ||
Granted | 0 | ||
Exercised | 12.26 | ||
Forfeited | 0 | ||
Expired | 22.79 | ||
Ending balance | 21.85 | $ 21.54 | |
Exercisable | 21.85 | ||
Stock Options, Weighted Average Exercise Price (in dollars per share): | |||
Granted | $ 0 | ||
SARS and Options, Additional Disclosures | |||
SSARs, aggregate intrinsic value, outstanding | $ 0 | ||
SSARs, aggregate intrinsic value, exercisable | $ 0 | ||
SSARs, weighted average remaining contractual terms, outstanding | 3 years 1 month 6 days | ||
SSARs, weighted average remaining contractual term, exercisable | 3 years 1 month 6 days | ||
Unrecognized compensation expense | $ 0 | ||
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.73% | 1.04% | |
Volatility | 33.20% | 37.00% | |
Fair value at date of grant | $ 4.83 | $ 5.02 | $ 3.76 |
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.93% | 1.25% | |
Volatility | 38.80% | 39.60% | |
Fair value at date of grant | $ 6.59 | $ 6.73 | $ 4.83 |
Equity Incentive Program - RSUs
Equity Incentive Program - RSUs (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Stock Options | |
Weighted Average Grant Date Fair Value (in dollars per share): | |
Unrecognized compensation expense | $ | $ 5.8 |
Weighted average period for compensation expense to be recognized | 1 year 3 months 18 days |
Restricted Stock Units (RSUs) | |
Number of Shares (in shares): | |
Beginning balance | shares | 2,202,576 |
Granted | shares | 1,707,911 |
Vested | shares | (1,036,207) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (427,849) |
Ending balance | shares | 2,446,431 |
Weighted Average Grant Date Fair Value (in dollars per share): | |
Beginning balance | $ / shares | $ 16.54 |
Granted | $ / shares | 14.28 |
Vested | $ / shares | 16.95 |
Forfeited | $ / shares | 14.84 |
Ending balance | $ / shares | $ 15.12 |
Unrecognized compensation expense | $ | $ 23.1 |
Weighted average period for compensation expense to be recognized | 1 year 3 months 18 days |
February 28, award 1 | Share-based Compensation Award, Tranche Two [Member] | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
February 28, award 1 | Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
February 28, award 1 | Third Anniversary of Grant Date | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
February 28, award 1 | Third Anniversary of Grant Date | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
Equity Incentive Program - Addi
Equity Incentive Program - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award expiration period | 7 years |
February 28, award 1 | Third Anniversary of Grant Date | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
February 28, award 1 | Third Anniversary of Grant Date | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50.00% |
February 28, award 2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Equity Incentive Program Equity
Equity Incentive Program Equity Incentive Program - Other Information Regarding SSARs and Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Cash received by Knowles for exercise of stock options | $ 0.5 | $ 3.3 | $ 0 |
SSARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of SSARs that are exercisable | 1.8 | 1.9 | 1.9 |
Aggregate intrinsic value of SSARs exercised | 0.1 | 0.2 | 0.1 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received by Knowles for exercise of stock options | 0.5 | 3.3 | 0 |
Aggregate intrinsic value of options exercised | $ 0.2 | $ 1.1 | $ 0 |
Equity Incentive Program Equi_2
Equity Incentive Program Equity Incentive Program - PSUs (Details) - Performance Shares [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 557,967 | 176,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 381,967 | ||
Vested | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 14.27 | $ 15.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 13.78 | ||
Vested | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | ||
Unrecognized compensation expense | $ 6.3 | ||
Weighted average period for compensation expense to be recognized | 1 year 10 months 24 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Incremental Increase of Initial Grant Value, Percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Incremental Increase of Initial Grant Value, Percentage | 225.00% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense net of sublease rental income | $ 7.3 | $ 6.8 | $ 7.8 |
Operating Leases, Rent Expense, Sublease Rentals | 2.3 | $ 2.2 | $ 1.3 |
Capital Leases [Abstract] | |||
2,018 | 2.3 | ||
2,019 | 2.3 | ||
2,020 | 2.3 | ||
2,021 | 2.3 | ||
2,022 | 2.3 | ||
2023 and thereafter | 2.6 | ||
Total minimum lease payments | 14.1 | ||
Capital Leases, Future Minimum Sublease Rentals | 0 | ||
Capital Leases, Future Minimum Payments, Net Minimum Payments | 14.1 | ||
Capital Leases, Future Minimum Payments, Interest Included in Payments | (1.6) | ||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 12.5 | ||
Operating Lease Future Minimum Payments [Abstract] | |||
2,018 | 9.7 | ||
2,019 | 9.3 | ||
2,020 | 8.8 | ||
2,021 | 8.1 | ||
2,022 | 6.1 | ||
2023 and thereafter | 3.8 | ||
Total minimum lease payments | 45.8 | ||
Future operating lease payments | 45.8 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | (8.8) | ||
Operating Leases, Future Minimum Payments, Net Minimum Payments | $ 37 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)pension_plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 6.8 | $ 6.4 | $ 6.1 |
Number of defined benefit pension plans | pension_plan | 4 | ||
Actuarial losses arising during period, net of tax | $ 0.7 | (0.7) | 5.6 |
Non-Qualified Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial losses arising during period, before tax | 0.1 | ||
Actuarial losses arising during period, net of tax | 0.1 | ||
Amortization of recognized actuarial loss | 0.1 | ||
Amortization of gains (losses), net of tax | 0.1 | ||
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future amortization of gain (loss) | 0.5 | ||
Amortization of recognized actuarial loss | $ 0.5 | $ 0.5 | $ 0.3 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Foreign Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 57.9 | $ 52.4 | |
Service cost | 0.4 | 0.3 | $ 0.2 |
Interest cost | 1.3 | 1.5 | 1.6 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1.5 | 1.5 | |
Actuarial loss | (3.8) | 0.5 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 1 | 0.3 | |
Currency translation and other | (1.6) | 4.4 | |
Benefit obligation at end of year | 53.7 | 57.9 | 52.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 51.8 | 43.8 | |
Actual return on plan assets | (1.2) | 4.4 | |
Company contributions | 1.9 | 1.5 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 1.5 | 1.5 | |
Currency translation and other | (3.2) | 3.6 | |
Fair value of plan assets at end of year | 47.8 | 51.8 | $ 43.8 |
Funded status | (5.9) | (6.1) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Other assets and deferred charges | 1 | 0.4 | |
Other liabilities | (6.9) | (6.5) | |
Funded status | (5.9) | (6.1) | |
Accumulated Other Comprehensive Loss (Earnings) [Abstract] | |||
Net actuarial losses | 18 | 18.4 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 1.3 | 0.3 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), Tax | (3.8) | (3.6) | |
Total Accumulated Other Comprehensive Loss, net of tax | 15.5 | 15.1 | |
Amounts recognized on the balance sheet including accumulated other comprehensive income (loss) | 9.6 | 9 | |
Accumulated benefit obligation | $ 52.6 | $ 57 |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Document Fiscal Year Focus | 2,018 | |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ 1 | |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | 31.2 | $ 35.3 |
Accumulated benefit obligation | 31 | 34.8 |
Fair value of plan assets | $ 24.7 | $ 28.8 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of the Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Components of Net Periodic Benefit Cost [Abstract] | |||
Defined Benefit Plan, Other Cost (Credit) | $ 0.3 | $ 0.2 | |
Foreign Plan [Member] | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 0.4 | 0.3 | 0.2 |
Interest cost | 1.3 | 1.5 | 1.6 |
Expected return on plan assets | (2.8) | (2.7) | (2.4) |
Amortization of recognized actuarial loss | 0.5 | 0.5 | 0.3 |
Defined Benefit Plan, Other Cost (Credit) | 1.3 | 0 | 0 |
Total net periodic benefit income | $ 0.7 | $ (0.4) | $ (0.3) |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Foreign Plan [Member] | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.78% | 2.40% | |
Average wage increase | 4.41% | 4.46% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.40% | 2.60% | 3.72% |
Average wage increase | 4.46% | 4.55% | 4.16% |
Expected return on plan assets | 5.64% | 5.80% | 6.42% |
Foreign Plan [Member] | PHILIPPINES | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 8.25% | 0.00% | |
Average wage increase | 6.00% | 0.00% | |
Foreign Plan [Member] | Taiwan | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 1.25% | 1.25% | |
Average wage increase | 4.25% | 4.00% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 1.25% | 1.50% | 1.10% |
Average wage increase | 4.00% | 4.00% | 4.00% |
Expected return on plan assets | 1.50% | 1.75% | 1.50% |
Foreign Plan [Member] | United Kingdom | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.80% | 2.44% | |
Average wage increase | 4.40% | 4.50% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.44% | 2.64% | 3.90% |
Average wage increase | 4.50% | 4.60% | 4.25% |
Expected return on plan assets | 5.75% | 5.90% | 6.50% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets by Category (Details) - Foreign Plan [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 47.8 | $ 51.8 | $ 43.8 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.9 | 9.2 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39.9 | 42.6 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20.4 | 15 | |
Fixed income investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.9 | 2.3 | |
Fixed income investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18.5 | 12.7 | |
Fixed income investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common stock funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.4 | 21.9 | |
Common stock funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common stock funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.4 | 21.9 | |
Common stock funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.6 | 3.5 | |
Real Estate Funds [Member] | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate Funds [Member] | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.6 | 3.5 | |
Real Estate Funds [Member] | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.1 | 1 | |
Cash and equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.3 | 0.1 | |
Cash and equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.8 | 0.9 | |
Cash and equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.3 | 10.4 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.7 | 6.8 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.6 | 3.6 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Estimates (Details) - Foreign Plan [Member] $ in Millions | Dec. 31, 2018USD ($) |
Expected Future Benefit Payments [Abstract] | |
2,018 | $ 1.9 |
2,019 | 1.7 |
2,020 | 1.7 |
2,021 | 1.8 |
2,022 | 1.8 |
2023 - 2027 | 11.5 |
Estimated Future Employer Contributions [Abstract] | |
Estimated 2018 employer contribution | $ 3.1 |
Employee Benefit Plans - Supple
Employee Benefit Plans - Supplemental Retirement Plan (Details) - Non-Qualified Supplemental Retirement Plan - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities | $ (0.9) | $ (0.2) |
Pension and Other Postretirement Defined Benefit Plans, Other LIabilities | (0.8) | (1.6) |
Total Accumulated Other Comprehensive Loss, net of tax | 0 | 0.2 |
Amounts recognized on the balance sheet including accumulated other comprehensive income (loss) | $ (1.7) | $ (1.6) |
Other Comprehensive (Loss) Ea_3
Other Comprehensive (Loss) Earnings - Amounts Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency translation: | |||
Foreign currency translation, before tax | $ (9.9) | $ 27.1 | $ 0.8 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Foreign currency translation, net of tax | (9.9) | 27.1 | 0.8 |
Employee benefit plans: | |||
Employee benefit plans, before Tax | (0.4) | 1.3 | (5) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 0.2 | 0 | (0.1) |
Net change in employee benefit plans | (0.2) | 1.3 | (5.1) |
Changes in fair value of cash flow hedges: | |||
Change in fair value of cash flow hedges, before tax | (1) | 4.4 | (2.2) |
Change in fair value of cash flow hedges, tax | 0.1 | (0.7) | 0.6 |
Total cash flow hedges | (0.9) | 3.7 | (1.6) |
Total: | |||
Other Comprehensive Income (Loss), before tax | (11.3) | 32.8 | (6.4) |
Other Comprehensive Income (Loss), tax | 0.3 | (0.7) | 0.5 |
Other comprehensive earnings (loss), net of tax | $ (11) | $ 32.1 | $ (5.9) |
Other Comprehensive (Loss) Ea_4
Other Comprehensive (Loss) Earnings - Componets of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of AOCI [Abstract] | |||
Beginning balance | $ (100) | $ (132.1) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (11) | $ 32.1 | (5.9) |
Ending balance | (111) | (100) | |
Cash flow hedges | |||
Components of AOCI [Abstract] | |||
Beginning balance | 0.5 | (3.2) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.9) | 3.7 | |
Ending balance | (0.4) | 0.5 | |
Employee benefit plans | |||
Components of AOCI [Abstract] | |||
Beginning balance | (15.3) | (16.6) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.2) | 1.3 | |
Ending balance | (15.5) | (15.3) | |
Cumulative foreign currency translation adjustments | |||
Components of AOCI [Abstract] | |||
Beginning balance | (85.2) | $ (112.3) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (9.9) | 27.1 | |
Ending balance | $ (95.1) | $ (85.2) |
Other Comprehensive (Loss) Ea_5
Other Comprehensive (Loss) Earnings - Changes in Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and Postretirement Benefit Plans [Abstract] | |||
Amortization or settlement of actuarial losses and prior service costs | $ 0.6 | $ 0.6 | $ 0.5 |
Tax benefit | (0.1) | 0 | 0 |
Net of tax | 0.5 | 0.6 | 0.5 |
Cash Flow Hedges [Abstract] | |||
Net losses reclassified into earnings | 1.4 | 0.5 | 1 |
Tax benefit | (0.3) | (0.2) | (0.1) |
Net of tax | $ 1.1 | $ 0.3 | $ 0.9 |
Segment Information - Informati
Segment Information - Information on Reportable Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segments | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Document Fiscal Year Focus | 2,018 | |||||||||||
Number of reportable segments | segments | 2 | |||||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||||||||||
Revenues | $ 223.8 | $ 236.2 | $ 188.4 | $ 178.5 | $ 215.5 | $ 196 | $ 164.4 | $ 168.3 | $ 826.9 | $ 744.2 | $ 755.7 | |
Reconciliation of Net Earnings from Segments [Abstract] | ||||||||||||
Interest expense, net | 16 | 20.6 | 20.4 | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | [1] | 61.1 | 19.4 | 28.1 | ||||||||
Provision for income taxes | (4.5) | 12.9 | 8.3 | |||||||||
Earnings (Loss) | $ 79.4 | $ (17.8) | $ 4.4 | $ (0.4) | $ 31.9 | $ 10.5 | $ (30.9) | $ (5) | 65.6 | 6.5 | 19.8 | |
Reconciliation of Depreciation and Amortization [Abstract] | ||||||||||||
Depreciation and amortization | 52.4 | 53.8 | 69 | |||||||||
Reconciliation of Research and Development Expense [Abstract] | ||||||||||||
Research and development expenses | 100.6 | 93.4 | 92 | |||||||||
Operating segments | ||||||||||||
Reconciliation of Net Earnings from Segments [Abstract] | ||||||||||||
(Loss) earnings before interest and income taxes | [1] | (133.2) | (95.3) | (101.2) | ||||||||
Reconciliation of Capital Expenditures [Abstract] | ||||||||||||
Capital expenditures | 80.1 | 49.5 | 32.2 | |||||||||
Reconciliation of Research and Development Expense [Abstract] | ||||||||||||
Research and development expenses | 100.6 | 93.4 | 92 | |||||||||
Operating segments | Audio | ||||||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||||||||||
Revenues | 682.2 | 637.4 | 661.9 | |||||||||
Reconciliation of Net Earnings from Segments [Abstract] | ||||||||||||
(Loss) earnings before interest and income taxes | (105.7) | (76.1) | (88.8) | |||||||||
Reconciliation of Depreciation and Amortization [Abstract] | ||||||||||||
Depreciation and amortization | 41.5 | 45.2 | 61.4 | |||||||||
Reconciliation of Capital Expenditures [Abstract] | ||||||||||||
Capital expenditures | 68.2 | 43.6 | 27.8 | |||||||||
Reconciliation of Research and Development Expense [Abstract] | ||||||||||||
Research and development expenses | 94.5 | 89 | 89.2 | |||||||||
Operating segments | Precision Devices | ||||||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||||||||||
Revenues | 144.7 | 106.8 | 93.8 | |||||||||
Reconciliation of Net Earnings from Segments [Abstract] | ||||||||||||
(Loss) earnings before interest and income taxes | (27.5) | (19.2) | (12.4) | |||||||||
Reconciliation of Depreciation and Amortization [Abstract] | ||||||||||||
Depreciation and amortization | 7.8 | 5.6 | 4.3 | |||||||||
Reconciliation of Capital Expenditures [Abstract] | ||||||||||||
Capital expenditures | 10.8 | 5.4 | 3.1 | |||||||||
Reconciliation of Research and Development Expense [Abstract] | ||||||||||||
Research and development expenses | 5.8 | 4.2 | 2.7 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Reconciliation of Net Earnings from Segments [Abstract] | ||||||||||||
(Loss) earnings before interest and income taxes | 56.1 | 55.3 | 52.7 | |||||||||
Reconciliation of Depreciation and Amortization [Abstract] | ||||||||||||
Depreciation and amortization | 3.1 | 3 | 3.3 | |||||||||
Reconciliation of Capital Expenditures [Abstract] | ||||||||||||
Capital expenditures | 1.1 | 0.5 | 1.3 | |||||||||
Reconciliation of Research and Development Expense [Abstract] | ||||||||||||
Research and development expenses | $ 0.3 | $ 0.2 | $ 0.1 | |||||||||
[1] | Years Ended December 31, (in millions) 2018 2017 2016 Revenues: Audio $ 682.2 $ 637.4 $ 661.9 Precision Devices 144.7 106.8 93.8 Total revenues $ 826.9 $ 744.2 $ 755.7 Earnings from continuing operations before interest and income taxes: Audio $ 105.7 $ 76.1 $ 88.8 Precision Devices 27.5 19.2 12.4 Total segments 133.2 95.3 101.2 Corporate expense / other 56.1 55.3 52.7 Interest expense, net 16.0 20.6 20.4 Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations $ 65.6 $ 6.5 $ 19.8 Depreciation and amortization: Audio $ 41.5 $ 45.2 $ 61.4 Precision Devices 7.8 5.6 4.3 Corporate 3.1 3.0 3.3 Total $ 52.4 $ 53.8 $ 69.0 Capital expenditures: Audio $ 68.2 $ 43.6 $ 27.8 Precision Devices 10.8 5.4 3.1 Corporate 1.1 0.5 1.3 Total $ 80.1 $ 49.5 $ 32.2 Research and development: Audio $ 94.5 $ 89.0 $ 89.2 Precision Devices 5.8 4.2 2.7 Corporate 0.3 0.2 0.1 Total $ 100.6 $ 93.4 $ 92.0 |
Segment Information - Reportabl
Segment Information - Reportable Segments Adjusted Working Capital and Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Document Fiscal Year Focus | 2,018 | ||||||||||
Revenues | $ 223,800,000 | $ 236,200,000 | $ 188,400,000 | $ 178,500,000 | $ 215,500,000 | $ 196,000,000 | $ 164,400,000 | $ 168,300,000 | $ 826,900,000 | $ 744,200,000 | $ 755,700,000 |
Total assets | 1,547,900,000 | 1,549,800,000 | 1,547,900,000 | 1,549,800,000 | |||||||
Disposal Group, Including Discontinued Operation, Assets | 0 | 1,700,000 | 0 | 1,700,000 | |||||||
Operating segments | Audio | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 682,200,000 | 637,400,000 | 661,900,000 | ||||||||
Total assets | 1,409,100,000 | 1,430,900,000 | 1,409,100,000 | 1,430,900,000 | |||||||
Operating segments | Precision Devices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 144,700,000 | 106,800,000 | $ 93,800,000 | ||||||||
Total assets | 136,900,000 | 103,400,000 | 136,900,000 | 103,400,000 | |||||||
Intra-segment eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 1,900,000 | $ 13,800,000 | $ 1,900,000 | $ 13,800,000 |
Segment Information - Revenue
Segment Information - Revenue by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Document Fiscal Year Focus | 2,018 | ||||||||||
Revenues | $ 223.8 | $ 236.2 | $ 188.4 | $ 178.5 | $ 215.5 | $ 196 | $ 164.4 | $ 168.3 | $ 826.9 | $ 744.2 | $ 755.7 |
Long-lived assets | 211.7 | 183 | 211.7 | 183 | |||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 605.4 | 560.8 | 578.7 | ||||||||
Long-lived assets | 160.9 | 144.9 | 160.9 | 144.9 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 126.6 | 101.3 | 93.3 | ||||||||
Long-lived assets | 49.8 | 37.2 | 49.8 | 37.2 | |||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 85.8 | 72.3 | 75.1 | ||||||||
Long-lived assets | 0.9 | 0.9 | 0.9 | 0.9 | |||||||
Other Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 3.6 | 4.4 | 3.1 | ||||||||
Long-lived assets | 0.1 | 0 | 0.1 | 0 | |||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 5.5 | 5.4 | $ 5.5 | ||||||||
Long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information Segment Inf
Segment Information Segment Information - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member] | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 19.00% | 20.00% |
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member] | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 12.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 28, 2014 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | |||||||||||||
Earnings (Loss) | $ 79.4 | $ (17.8) | $ 4.4 | $ (0.4) | $ 31.9 | $ 10.5 | $ (30.9) | $ (5) | $ 65.6 | $ 6.5 | $ 19.8 | ||
Earnings (loss) from discontinued operations, net | 2.1 | 61.8 | (62.1) | ||||||||||
Net earnings (loss) | $ 79.6 | $ (16.2) | $ 4.6 | $ (0.3) | $ 85.5 | $ 15.7 | $ (29.7) | $ (3.2) | $ 67.7 | $ 68.3 | $ (42.3) | ||
Basic earnings (loss) per common share: | |||||||||||||
Per Share - Basic | $ 0.88 | $ (0.20) | $ 0.05 | $ 0 | $ 0.36 | $ 0.12 | $ (0.35) | $ (0.06) | $ 0.73 | $ 0.07 | $ 0.22 | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.02 | 0.69 | (0.70) | ||||||||||
Per Share - Basic | 0.88 | (0.18) | 0.05 | 0 | 0.96 | 0.18 | (0.33) | (0.04) | $ 0.75 | $ 0.76 | $ (0.48) | ||
Basic weighted average shares outstanding (in shares) | [1] | 90,050,051 | 89,329,794 | 88,667,098 | |||||||||
Diluted earnings (loss) per common share: | |||||||||||||
Per Share - Diluted | 0.87 | (0.20) | 0.05 | 0 | 0.35 | 0.12 | (0.35) | (0.06) | $ 0.72 | $ 0.07 | $ 0.22 | ||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0.02 | 0.68 | (0.69) | ||||||||||
Per Share - Diluted | $ 0.87 | $ (0.18) | $ 0.05 | $ 0 | $ 0.94 | $ 0.17 | $ (0.33) | $ (0.04) | $ 0.74 | $ 0.75 | $ (0.47) | ||
Dilutive weighted average shares outstanding (in shares) | [1] | 91,194,747 | 90,490,007 | 89,182,967 | |||||||||
Stock issued during period (in shares) | 0.5 | ||||||||||||
Weighted average number of anti-dilutive shares excluded from the calculation (in shares) | 4,346,400 | 3,944,160 | 5,080,023 | ||||||||||
[1] | Years Ended December 31, 2018 2017 2016 Revenues $ 826.9 $ 744.2 $ 755.7 Cost of goods sold 503.9 452.8 458.2 Impairment charges — 1.4 0.3 Restructuring charges - cost of goods sold 0.4 4.0 1.5 Gross profit 322.6 286.0 295.7 Research and development expenses 100.6 93.4 92.0 Selling and administrative expenses 142.5 126.6 149.9 Impairment charges — 19.9 0.2 Restructuring charges 1.7 6.2 8.6 Operating expenses 244.8 246.1 250.7 Operating earnings 77.8 39.9 45.0 Interest expense, net 16.0 20.6 20.4 Other expense (income), net 0.7 (0.1 ) (3.5 ) Earnings before income taxes and discontinued operations 61.1 19.4 28.1 (Benefit from) provision for income taxes (4.5 ) 12.9 8.3 Earnings from continuing operations 65.6 6.5 19.8 Earnings (loss) from discontinued operations, net 2.1 61.8 (62.1 ) Net earnings (loss) $ 67.7 $ 68.3 $ (42.3 ) Earnings per share from continuing operations: Basic $ 0.73 $ 0.07 $ 0.22 Diluted $ 0.72 $ 0.07 $ 0.22 Earnings (loss) per share from discontinued operations: Basic $ 0.02 $ 0.69 $ (0.70 ) Diluted $ 0.02 $ 0.68 $ (0.69 ) Net earnings (loss) per share: Basic $ 0.75 $ 0.76 $ (0.48 ) Diluted $ 0.74 $ 0.75 $ (0.47 ) Weighted-average common shares outstanding: Basic 90,050,051 89,329,794 88,667,098 Diluted 91,194,747 90,490,007 89,182,967 |
Quarterly Data (Details)
Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 223.8 | $ 236.2 | $ 188.4 | $ 178.5 | $ 215.5 | $ 196 | $ 164.4 | $ 168.3 | $ 826.9 | $ 744.2 | $ 755.7 |
Gross Profit | 94.3 | 89.8 | 73.2 | 65.3 | 89.4 | 74.1 | 63.2 | 59.3 | 322.6 | 286 | 295.7 |
Earnings (Loss) | $ 79.4 | $ (17.8) | $ 4.4 | $ (0.4) | $ 31.9 | $ 10.5 | $ (30.9) | $ (5) | $ 65.6 | $ 6.5 | $ 19.8 |
Per Share - Basic | $ 0.88 | $ (0.20) | $ 0.05 | $ 0 | $ 0.36 | $ 0.12 | $ (0.35) | $ (0.06) | $ 0.73 | $ 0.07 | $ 0.22 |
Per Share - Diluted | $ 0.87 | $ (0.20) | $ 0.05 | $ 0 | $ 0.35 | $ 0.12 | $ (0.35) | $ (0.06) | $ 0.72 | $ 0.07 | $ 0.22 |
Net earnings (loss) | $ 79.6 | $ (16.2) | $ 4.6 | $ (0.3) | $ 85.5 | $ 15.7 | $ (29.7) | $ (3.2) | $ 67.7 | $ 68.3 | $ (42.3) |
Per Share - Basic | $ 0.88 | $ (0.18) | $ 0.05 | $ 0 | $ 0.96 | $ 0.18 | $ (0.33) | $ (0.04) | $ 0.75 | $ 0.76 | $ (0.48) |
Per Share - Diluted | $ 0.87 | $ (0.18) | $ 0.05 | $ 0 | $ 0.94 | $ 0.17 | $ (0.33) | $ (0.04) | $ 0.74 | $ 0.75 | $ (0.47) |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jan. 03, 2019USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Payments to Acquire Businesses, Gross | $ 11.1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Period Increase (Decrease) | $ (0.1) | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 0.7 | $ 1.5 | $ 1.5 |
Charged to Cost and Expense | 0.2 | 0.1 | |
Accounts Written off / Reductions | 0 | (1) | (0.1) |
Balance at End of Year | 0.6 | 0.7 | 1.5 |
Deferred Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 99.7 | 161.3 | 127.4 |
Additions | 31.5 | 0 | 33.9 |
Accounts Written off / Reductions | 0 | (61.6) | 0 |
Balance at End of Year | $ 131.2 | $ 99.7 | $ 161.3 |