Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 11, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FLOWSERVE CORP | ||
Entity Central Index Key | 30625 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $7,918,000,000 | ||
Entity Common Stock, Shares Outstanding | 134,714,114 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $450,350 | $363,804 |
Accounts receivable, net | 1,082,447 | 1,155,327 |
Inventories, net | 995,564 | 1,060,670 |
Deferred taxes | 158,912 | 157,448 |
Prepaid expenses and other | 106,890 | 110,133 |
Total current assets | 2,794,163 | 2,847,382 |
Property, plant and equipment, net | 693,881 | 716,289 |
Goodwill | 1,067,255 | 1,107,551 |
Deferred taxes | 31,419 | 19,533 |
Other intangible assets, net | 146,337 | 160,548 |
Other assets, net | 234,965 | 185,430 |
Total assets | 4,968,020 | 5,036,733 |
Current liabilities: | ||
Accounts payable | 611,715 | 612,092 |
Accrued liabilities | 794,072 | 861,010 |
Debt due within one year | 53,131 | 72,678 |
Deferred taxes | 12,957 | 12,319 |
Total current liabilities | 1,471,875 | 1,558,099 |
Long-term debt due after one year | 1,101,791 | 1,127,619 |
Retirement obligations and other liabilities | 452,511 | 473,894 |
Commitments and contingencies (See Note 13) | ||
Shareholders’ equity: | ||
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793 and 176,793, respectively | 220,991 | 220,991 |
Capital in excess of par value | 495,600 | 476,218 |
Retained earnings | 3,415,738 | 2,985,391 |
Treasury shares, at cost — 42,444 and 39,630 shares, respectively | -1,830,919 | -1,600,266 |
Deferred compensation obligation | 10,558 | 9,522 |
Accumulated other comprehensive loss | -380,406 | -221,477 |
Total Flowserve Corporation shareholders’ equity | 1,931,562 | 1,870,379 |
Noncontrolling interests | 10,281 | 6,742 |
Total equity | 1,941,843 | 1,877,121 |
Total liabilities and equity | $4,968,020 | $5,036,733 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Shareholders’ equity: | ||
Common shares, par value | $1.25 | $1.25 |
Common stock, shares authorized | 305,000,000 | 305,000,000 |
Common shares, shares issued | 176,793,000 | 176,793,000 |
Treasury shares, shares | 42,444,000 | 39,630,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Sales | $4,877,885 | $4,954,619 | $4,751,339 |
Cost of sales | -3,163,268 | -3,266,524 | -3,170,388 |
Gross profit | 1,714,617 | 1,688,095 | 1,580,951 |
Selling, general and administrative expense | -936,900 | -966,829 | -922,125 |
Net earnings from affiliates (Note 2) | 12,115 | 39,017 | 16,952 |
Operating income | 789,832 | 760,283 | 675,778 |
Interest expense | -60,322 | -54,413 | -43,520 |
Interest income | 1,680 | 1,431 | 954 |
Other income (expense), net | 2,000 | -14,280 | -21,647 |
Earnings before income taxes | 733,190 | 693,021 | 611,565 |
Provision for income taxes | -208,305 | -204,701 | -160,766 |
Net earnings, including noncontrolling interests | 524,885 | 488,320 | 450,799 |
Less: Net earnings attributable to noncontrolling interests | -6,061 | -2,790 | -2,460 |
Net earnings attributable to Flowserve Corporation | $518,824 | $485,530 | $448,339 |
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||
Basic (in dollars per share) | $3.79 | $3.43 | $2.86 |
Diluted (in dollars per share) | $3.76 | $3.41 | $2.84 |
Cash dividends declared per share (in dollars per share) | $0.64 | $0.56 | $0.48 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings, including noncontrolling interests | $524,885 | $488,320 | $450,799 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, net of taxes of $88,730, $17,351 and $(10,957) in 2014, 2013 and 2012, respectively | -148,580 | -28,870 | 18,184 |
Pension and other postretirement effects, net of taxes of $8,698, $(20,218) and $8,655 in 2014, 2013 and 2012, respectively | -5,870 | 32,229 | -26,983 |
Cash flow hedging activity, net of taxes of $1,937, $(483) and $187 in 2014, 2013 and 2012, respectively | -4,396 | -560 | 481 |
Other comprehensive (loss) income | -158,846 | 2,799 | -8,318 |
Comprehensive income, including noncontrolling interests | 366,039 | 491,119 | 442,481 |
Comprehensive income attributable to noncontrolling interests | -6,144 | -2,756 | -2,354 |
Comprehensive income attributable to Flowserve Corporation | $359,895 | $488,363 | $440,127 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Foreign curency translation, taxes | ($88,730) | $17,351 | ($10,957) |
Pension and other postretirement effects, taxes | 8,698 | -20,218 | 8,655 |
Cash flow hedging activity, taxes | $1,937 | ($483) | $187 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Deferred Compensation Obligation | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Thousands, unless otherwise specified | ||||||||
Balance — at Dec. 31, 2011 | $2,278,230 | $220,991 | $473,756 | $2,205,524 | ($424,052) | $9,691 | ($216,097) | $8,417 |
Balance — (in shares) at Dec. 31, 2011 | 176,793 | 15,075 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | -18,992 | -50,490 | 31,498 | |||||
Stock activity under stock plans (in shares) | 1,326 | |||||||
Stock-based compensation | 35,403 | 35,379 | 24 | |||||
Tax benefit associated with stock-based compensation | 11,024 | 11,024 | ||||||
Net earnings | 450,799 | 448,339 | 2,460 | |||||
Cash dividends declared | -74,579 | -74,579 | ||||||
Repurchases of common shares | -771,942 | -771,942 | ||||||
Repurchases of common shares (in shares) | -18,639 | |||||||
Other comprehensive loss, net of tax | -8,318 | -8,213 | -105 | |||||
Purchase of shares from and dividends paid to noncontrolling interests | -8,329 | -1,813 | -6,516 | |||||
Other, net | -1,179 | -1,179 | ||||||
Balance — at Dec. 31, 2012 | 1,894,475 | 220,991 | 467,856 | 2,579,308 | -1,164,496 | 10,870 | -224,310 | 4,256 |
Balance — (in shares) at Dec. 31, 2012 | 176,793 | 32,388 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | -14,951 | -37,491 | 22,540 | |||||
Stock activity under stock plans (in shares) | 902 | |||||||
Stock-based compensation | 35,757 | 35,737 | 20 | |||||
Tax benefit associated with stock-based compensation | 10,116 | 10,116 | ||||||
Net earnings | 488,320 | 485,530 | 2,790 | |||||
Cash dividends declared | -79,467 | -79,467 | ||||||
Repurchases of common shares | -458,310 | -458,310 | ||||||
Repurchases of common shares (in shares) | -8,144 | |||||||
Other comprehensive loss, net of tax | 2,799 | 2,833 | -34 | |||||
Purchase of shares from and dividends paid to noncontrolling interests | -270 | -270 | ||||||
Other, net | 1,348 | 1,348 | ||||||
Balance — at Dec. 31, 2013 | 1,877,121 | 220,991 | 476,218 | 2,985,391 | -1,600,266 | 9,522 | -221,477 | 6,742 |
Balance — (in shares) at Dec. 31, 2013 | 176,793 | 176,793 | 39,630 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | -16,009 | -31,860 | 15,851 | |||||
Stock activity under stock plans (in shares) | 607 | |||||||
Stock-based compensation | 42,675 | 42,655 | 20 | |||||
Tax benefit associated with stock-based compensation | 8,587 | 8,587 | ||||||
Net earnings | 524,885 | 518,824 | 6,061 | |||||
Cash dividends declared | -88,497 | -88,497 | ||||||
Repurchases of common shares | -246,504 | -246,504 | ||||||
Repurchases of common shares (in shares) | -3,421 | |||||||
Other comprehensive loss, net of tax | -158,846 | -158,929 | 83 | |||||
Purchase of shares from and dividends paid to noncontrolling interests | -2,605 | -2,605 | ||||||
Other, net | -1,036 | -1,036 | ||||||
Balance — at Dec. 31, 2014 | $1,941,843 | $220,991 | $495,600 | $3,415,738 | ($1,830,919) | $10,558 | ($380,406) | $10,281 |
Balance — (in shares) at Dec. 31, 2014 | 176,793 | 176,793 | 42,444 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows — Operating activities: | |||
Net earnings, including noncontrolling interests | $524,885 | $488,320 | $450,799 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 93,307 | 90,695 | 88,572 |
Amortization of intangible and other assets | 16,970 | 15,697 | 18,654 |
Net loss (gain) on the disposition of assets | 1,094 | 956 | -10,521 |
Gain on sale of business | -13,403 | 0 | 0 |
Gain on sale of equity investment in affiliate | 0 | -12,995 | 0 |
Gain on remeasurement of acquired assets | 0 | -15,315 | 0 |
Excess tax benefits from stock-based payment arrangements | -8,587 | -10,111 | -11,207 |
Stock-based compensation | 42,675 | 35,757 | 35,403 |
Foreign currency and other non-cash adjustments | 38,533 | -2,418 | -13,605 |
Change in assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | -79,655 | -53,823 | -35,074 |
Inventories, net | -35,519 | 28,616 | -72,706 |
Prepaid expenses and other | -9,371 | -6,824 | -4,863 |
Other assets, net | -24,509 | -18,002 | 2,393 |
Accounts payable | 50,752 | -15,642 | 24,542 |
Accrued liabilities and income taxes payable | -22,669 | -65,702 | 90,773 |
Retirement obligations and other liabilities | -7,905 | -3,145 | -21,553 |
Net deferred taxes | 4,364 | 31,695 | -24,477 |
Net cash flows provided by operating activities | 570,962 | 487,759 | 517,130 |
Cash flows — Investing activities: | |||
Capital expenditures | -132,619 | -139,090 | -135,539 |
Payments for acquisitions, net of cash acquired | 0 | -76,801 | -3,996 |
Proceeds from disposal of assets | 1,731 | 1,653 | 16,933 |
Proceeds from sale of business, net of cash divested | 46,805 | 0 | 0 |
Proceeds from (contributions to) equity investments in affiliates | 0 | 46,240 | -3,825 |
Net cash flows used by investing activities | -84,083 | -167,998 | -126,427 |
Cash flows — Financing activities: | |||
Excess tax benefits from stock-based payment arrangements | 8,587 | 10,111 | 11,207 |
Payments on long-term debt | -40,000 | -25,000 | -480,000 |
Proceeds from issuance of senior notes | 0 | 298,596 | 498,075 |
Proceeds from issuance of long-term debt | 0 | 0 | 400,000 |
Payments of deferred loan costs | 0 | -3,744 | -9,901 |
Proceeds under other financing arrangements | 18,483 | 10,674 | 15,886 |
Payments under other financing arrangements | -20,502 | -11,075 | -10,079 |
Repurchases of common shares | -246,504 | -458,310 | -771,942 |
Payments of dividends | -85,118 | -76,897 | -73,765 |
Other | -2,604 | -179 | -8,403 |
Net cash flows used by financing activities | -367,658 | -255,824 | -428,922 |
Effect of exchange rate changes on cash | -32,675 | -4,385 | 5,115 |
Net change in cash and cash equivalents | 86,546 | 59,552 | -33,104 |
Cash and cash equivalents at beginning of year | 363,804 | 304,252 | 337,356 |
Cash and cash equivalents at end of year | 450,350 | 363,804 | 304,252 |
Income taxes paid (net of refunds) | 159,520 | 195,532 | 158,433 |
Interest paid | $58,269 | $49,618 | $34,173 |
Significant_Accounting_Policie
Significant Accounting Policies and Accounting Developments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies and Accounting Developments | SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING DEVELOPMENTS | |||||||||||
We are principally engaged in the worldwide design, manufacture, distribution and service of industrial flow management equipment. We provide long lead time, custom and other highly-engineered pumps; standardized, general-purpose pumps; mechanical seals; industrial valves; and related automation products and solutions primarily for oil and gas, chemical, power generation, water management and other general industries requiring flow management products and services. Equipment manufactured and serviced by us is predominantly used in industries that deal with difficult-to-handle and corrosive fluids, as well as environments with extreme temperatures, pressure, horsepower and speed. Our business is affected by economic conditions in the United States ("U.S.") and other countries where our products are sold and serviced, by the cyclical nature and competitive environment of our industries served, by the relationship of the U.S. dollar to other currencies and by the demand for and pricing of our customers’ end products. | ||||||||||||
Stock Split — On June 7, 2013 we recorded a three-for-one stock split. Shareholders' equity and all share data, including treasury shares and stock-based compensation award shares, and per share data presented herein have been retrospectively adjusted to reflect the impact of the increase in authorized shares and the stock split, as appropriate. Details of the stock split are included in Note 15. | ||||||||||||
Venezuela — The operations of our subsidiary in Venezuela generally consist of a service center that performs service and repair activities. Our Venezuelan subsidiary's sales for the year ending December 31, 2014 and total assets at December 31, 2014 represented less than 1% of consolidated sales and total assets for the same periods. In addition, certain of our operations in other countries sell equipment and parts that are typically denominated in United States ("U.S.") dollars directly to Venezuelan customers. | ||||||||||||
We have experienced delays in collecting payment on our accounts receivable from the national oil company in Venezuela, our primary Venezuelan customer. These accounts receivable are primarily U.S. dollar-denominated and are not disputed, and we have not historically had write-offs relating to this customer. Our total outstanding accounts receivable with this customer were approximately 9% of our gross accounts receivable at December 31, 2014. Given the experienced delays in collecting payments we estimate that approximately 48% of the outstanding accounts receivable will most likely not be collected within one year and therefore has been classified as long-term within other assets, net on our December 31, 2014 consolidated balance sheet. | ||||||||||||
Effective February 13, 2013, the Venezuelan government devalued its currency (bolivar) from 4.3 to 6.3 bolivars to the U.S. dollar. As a result of the devaluation, we recognized a loss of $4.0 million in the first quarter of 2013. The loss was reported in other expense, net in our consolidated statements of income and resulted in no tax benefit. In the first quarter of 2014, the Venezuelan government expanded the use of periodic auctions for U.S. dollars conducted under the Complementary System of Foreign Currency Administration ("SICAD I"). At December 31, 2014 the SICAD I exchange rate was 12.0 bolivars to the U.S. dollar, compared with the official exchange rate of 6.3 bolivars to the U.S. dollar ("Official"). In addition, during the second quarter of 2014 the Venezuelan government created a third currency exchange mechanism ("SICAD II") that is currently being interpreted to be available to all entities for all transactions at an exchange rate that is significantly less favorable than the Official exchange rate or the SICAD I exchange rate. As of December 31, 2014, we believe the Official exchange rate continues to be the most appropriate rate to remeasure the U.S. dollar value of the assets, liabilities and results of operations of our Venezuelan subsidiary. For reference, if we were to remeasure our bolivar-denominated net monetary assets as of December 31, 2014 utilizing the SICAD I or SICAD II exchange rate, it is estimated that the resulting loss would have been approximately $8 million or $14 million, respectively. | ||||||||||||
In February 2015, the Venezuelan government created a new currency exchange mechanism, SIMADI, which replaced the SICAD II mechanism. We are continuing to assess and monitor the ongoing impact of the changes in the Venezuelan foreign exchange market on our Venezuelan operations and imports into the market, including our Venezuelan subsidiary's ability to remit cash for dividends and other payments at the Official exchange rate, as well as additional government actions, political and labor unrest, or other economic conditions that may adversely impact our future consolidated financial condition or results of operations. | ||||||||||||
Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. Investments in unconsolidated affiliated companies, which represent noncontrolling ownership interests between 20% and 50%, are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). Investments in interests where we own less than 20% of the investee are accounted for by the cost method, whereby income is only recognized in the event of dividend receipt. Investments accounted for by the cost method are tested for impairment if an impairment indicator is present. | ||||||||||||
Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: | ||||||||||||
• | Revenue recognition, net of liquidated damages and other delivery penalties; | |||||||||||
• | Income taxes, deferred taxes, tax valuation allowances and tax reserves; | |||||||||||
• | Reserves for contingent loss; | |||||||||||
• | Retirement and postretirement benefits; and | |||||||||||
• | Valuation of goodwill, indefinite-lived intangible assets and other long-lived assets. | |||||||||||
Revenue Recognition — Revenues for product sales are recognized when the risks and rewards of ownership are transferred to the customers, which is typically based on the contractual delivery terms agreed to with the customer and fulfillment of all but inconsequential or perfunctory actions. In addition, our policy requires persuasive evidence of an arrangement, a fixed or determinable sales price and reasonable assurance of collectability. We defer the recognition of revenue when advance payments are received from customers before performance obligations have been completed and/or services have been performed. Freight charges billed to customers are included in sales and the related shipping costs are included in cost of sales in our consolidated statements of income. Our contracts typically include cancellation provisions that require customers to reimburse us for costs incurred up to the date of cancellation, as well as any contractual cancellation penalties. | ||||||||||||
We enter into certain agreements with multiple deliverables that may include any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services related to the performance of such products. Delivery of these products and services typically occurs within a one to two-year period, although many arrangements, such as "short-cycle" type orders, have a shorter timeframe for delivery. We separate deliverables into units of accounting based on whether the deliverable(s) have standalone value to the customer (impact of general rights of return is immaterial). Contract value is allocated ratably to the units of accounting in the arrangement based on their relative selling prices determined as if the deliverables were sold separately. | ||||||||||||
Revenues for long-term contracts that exceed certain internal thresholds regarding the size and duration of the project and provide for the receipt of progress billings from the customer are recorded on the percentage of completion method with progress measured on a cost-to-cost basis. Percentage of completion revenue represents less than 7% of our consolidated sales for each year presented. | ||||||||||||
Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered. Revenues generated under fixed fee service and repair contracts are recognized on a ratable basis over the term of the contract. These contracts can range in duration, but generally extend for up to five years. Fixed fee service contracts represent approximately 1% of consolidated sales for each year presented. | ||||||||||||
In certain instances, we provide guaranteed completion dates under the terms of our contracts. Failure to meet contractual delivery dates can result in late delivery penalties or non-recoverable costs. In instances where the payment of such costs are deemed to be probable, we perform a project profitability analysis, accounting for such costs as a reduction of realizable revenues, which could potentially cause estimated total project costs to exceed projected total revenues realized from the project. In such instances, we would record reserves to cover such excesses in the period they are determined. In circumstances where the total projected revenues still exceed total projected costs, the incurrence of penalties or non-recoverable costs generally reduces profitability of the project at the time of subsequent revenue recognition. | ||||||||||||
Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. | ||||||||||||
Allowance for Doubtful Accounts and Credit Risk — The allowance for doubtful accounts is established based on estimates of the amount of uncollectible accounts receivable, which is determined principally based upon the aging of the accounts receivable, but also customer credit history, industry and market segment information, economic trends and conditions and credit reports. Customer credit issues, customer bankruptcies or general economic conditions may also impact our estimates. | ||||||||||||
Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. As of December 31, 2014, although we have experienced increased aging and slower collection of receivables with our primary Venezuelan customer, we do not believe that we have any significant concentrations of credit risk. | ||||||||||||
Inventories and Related Reserves — Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. | ||||||||||||
Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reflect the estimated amount of deferred tax assets that may not be realized based upon our analysis of existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax strategies. | ||||||||||||
We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. | ||||||||||||
The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. | ||||||||||||
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. | ||||||||||||
Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. | ||||||||||||
Estimates of liabilities for unsettled asbestos-related claims are based on known claims and on our experience during the preceding two years for claims filed, settled and dismissed, with adjustments for events deemed unusual and unlikely to recur, and are included in retirement obligations and other liabilities in our consolidated balance sheets. A substantial majority of our asbestos-related claims are covered by insurance or indemnities. Estimated indemnities and receivables from insurance carriers for unsettled claims and receivables for settlements and legal fees paid by us for asbestos-related claims are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in other assets, net in our consolidated balance sheets. We have claims pending against certain insurers that, if resolved more favorably than estimated future recoveries, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to existing indemnities and insurance coverage. | ||||||||||||
Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months. | ||||||||||||
Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. | ||||||||||||
Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. | ||||||||||||
Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. | ||||||||||||
Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under capital leases, over the related lease turn. Generally, the estimated useful lives of the assets are: | ||||||||||||
Buildings and improvements | 10 to 40 years | |||||||||||
Machinery, equipment and tooling | 3 to 14 years | |||||||||||
Software, furniture and fixtures and other | 3 to 7 years | |||||||||||
Costs related to routine repairs and maintenance are expensed as incurred. | ||||||||||||
Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three to five years, upon implementation of the software. | ||||||||||||
Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four to 40 years. These assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. | ||||||||||||
Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in seven reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. | ||||||||||||
An impairment loss for goodwill is recognized if the implied fair value of goodwill is less than the carrying value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. We did not record an impairment of goodwill in 2014, 2013 or 2012. | ||||||||||||
We also consider our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization decreased as compared with 2013; however, it did not indicate a potential impairment of our goodwill as of December 31, 2014. | ||||||||||||
Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting units discussed above. We did not record a material impairment of our trademarks in 2014, 2013 or 2012. | ||||||||||||
The recoverable value of other long-lived assets, including property, plant and equipment and finite-lived intangible assets, is reviewed when indicators of potential impairments are present. The recoverable value is based upon an assessment of the estimated future cash flows related to those assets, utilizing assumptions similar to those for goodwill. Additional considerations related to our long-lived assets include expected maintenance and improvements, changes in expected uses and ongoing operating performance and utilization. | ||||||||||||
Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. | ||||||||||||
Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. | ||||||||||||
Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification ("ASC") 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: | ||||||||||||
Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||
Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||||||||||
Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||||||||||
Recurring fair value measurements are limited to investments in derivative instruments and certain equity securities. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivative instruments are included in Note 6. The fair value measurements of our investments in equity securities are determined using quoted market prices and are classified as Level I. The fair values of our investments in equity securities, and changes thereto, are immaterial to our consolidated financial position and results of operations. | ||||||||||||
Derivatives and Hedging Activities — We have a foreign currency derivatives and hedging policy outlining the conditions under which we can enter into financial derivative transactions. We do not use derivative instruments for trading or speculative purposes. All derivative instruments are recognized on the balance sheet at their fair values. The accounting for gains and losses resulting from changes in fair value depends on whether the derivative is designated and qualifies for hedge accounting. | ||||||||||||
Foreign Exchange Contracts —We employ a foreign currency economic hedging strategy to mitigate certain financial risks resulting from foreign currency exchange rate movements that impact foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. In 2013 we began to designate certain forward exchange contracts as hedging instruments and apply hedge accounting to those instruments. | ||||||||||||
For designated forward exchange contracts, the changes in fair value are recorded in other comprehensive loss until the underlying hedged item affects earnings, at which time the change in fair value is recognized in sales in the consolidated statements of income. For non-designated forward exchange contracts, the changes in the fair values are recognized immediately in other income (expense), net in the consolidated statements of income. See Note 6 for further discussion of forward exchange contracts. | ||||||||||||
Interest Rate Swaps — We enter into interest rate swap agreements for the purpose of hedging our cash flow exposure to floating interest rates on certain portions of our debt. Changes in the fair value of a designated interest rate swap are recorded in other comprehensive loss until earnings are affected by the underlying hedged item. Any ineffective portion of the gain or loss is immediately recognized in earnings. Upon settlement, realized gains and losses are recognized in interest expense in the consolidated statements of income. See Note 6 for further discussion of interest rate swaps. | ||||||||||||
We discontinue hedge accounting when (1) we deem the hedge to be ineffective and determine that the designation of the derivative as a hedging instrument is no longer appropriate; (2) the derivative matures, terminates or is sold; or (3) occurrence of the contracted or committed transaction is no longer probable or will not occur in the originally expected period. | ||||||||||||
When hedge accounting is discontinued and the derivative remains outstanding, we carry the derivative at its estimated fair value on the balance sheet, recognizing changes in the fair value in current period earnings. If a cash flow hedge becomes ineffective, any deferred gains or losses remain in accumulated other comprehensive loss until the underlying hedged item is recognized. If it becomes probable that a hedged forecasted transaction will not occur, deferred gains or losses on the hedging instrument are recognized in earnings immediately. | ||||||||||||
We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. If necessary, we would adjust the values of our derivative contracts for our or our counterparties’ credit risks. | ||||||||||||
Foreign Currency Translation — Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated results of operations. | ||||||||||||
Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. Where intercompany balances are not long-term investment related or not designated as due beyond the foreseeable future, we may mitigate risk associated with foreign currency fluctuations by entering into forward exchange contracts. | ||||||||||||
Stock-Based Compensation — Stock-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the value of restricted share, restricted share unit and performance-based unit awards (collectively referred to as "Restricted Shares") are set at the closing price of our common stock on the New York Stock Exchange on the date of grant, which is the date such grants are authorized by our Board of Directors. Restricted share units and performance-based units refer to restricted awards that do not have voting rights and accrue dividends, which are forfeited if vesting does not occur. | ||||||||||||
The intrinsic value of Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse based on the expected number of shares that will vest. The forfeiture rate is based on unvested Restricted Shares forfeited compared with original total Restricted Shares granted over a 4-year period, excluding significant forfeiture events that are not expected to recur. | ||||||||||||
Earnings Per Share — We use the two-class method of calculating Earnings Per Share ("EPS"), which determines earnings per share for each class of common stock and participating security as if all earnings for the period had been distributed. Unvested restricted share awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation as such. Our unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation below is prepared on a combined basis and is presented as earnings per common share. The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating basic net earnings per common share. | ||||||||||||
Earnings per weighted average common share outstanding was calculated as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands, except per share data) | ||||||||||||
Net earnings of Flowserve Corporation | $ | 518,824 | $ | 485,530 | $ | 448,339 | ||||||
Dividends on restricted shares not expected to vest | 12 | 13 | 15 | |||||||||
Earnings attributable to common and participating shareholders | $ | 518,836 | $ | 485,543 | $ | 448,354 | ||||||
Weighted average shares: | ||||||||||||
Common stock | 136,334 | 140,901 | 156,057 | |||||||||
Participating securities | 578 | 698 | 792 | |||||||||
Denominator for basic earnings per common share | 136,912 | 141,599 | 156,849 | |||||||||
Effect of potentially dilutive securities | 931 | 830 | 1,121 | |||||||||
Denominator for diluted earnings per common share | 137,843 | 142,429 | 157,970 | |||||||||
Net earnings per share attributable to Flowserve Corporation common shareholders: | ||||||||||||
Basic | $ | 3.79 | $ | 3.43 | $ | 2.86 | ||||||
Diluted | 3.76 | 3.41 | 2.84 | |||||||||
Diluted earnings per share is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options, restricted share units and performance share units. | ||||||||||||
Research and Development Expense — Research and development costs are charged to expense when incurred. Aggregate research and development costs included in selling, general and administrative expenses ("SG&A") were $40.9 million, $37.8 million and $38.9 million in 2014, 2013 and 2012, respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in research and development activities. | ||||||||||||
Accounting Developments | ||||||||||||
Pronouncements Implemented | ||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-04, "Liabilities (Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date," which requires a reporting entity that is jointly and severally liable to measure the obligation as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of one or more co-obligors. The scope of this ASU excludes obligations addressed by existing guidance. The ASU shall be applied retrospectively for arrangements existing at the beginning of the year of adoption. Our adoption of ASU No. 2013-04 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In April 2013, the FASB issued ASU No. 2013-07, "Presentation of Financial Statements (Topic 205) - Liquidation Basis of Accounting," which requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). The ASU shall be applied prospectively from the day that liquidation becomes imminent. Our adoption of ASU No. 2013-07 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which provides guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU shall be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of ASU No. 2013-11 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which provides guidance on the requirements for reporting discontinued operations. A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, is disposed of by sale, or is disposed of other than by sale (e.g., by abandonment or in a distribution to owners in a spinoff). This ASU also introduces new disclosure requirements for discontinued operations. The ASU shall be applied prospectively to (a) all disposals (or classifications as held for sale) of components of an entity and (b) businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur after the effective date. We early adopted this ASU effective January 1, 2014 and it did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides guidance on pushdown accounting requirements on whether and at what threshold an acquired entity has the option to apply pushdown accounting in its stand-alone financial statements upon a change-in-control event based on their facts and circumstances. The ASU supersedes SEC Staff Accounting Bulletin Topic No. 5.J, “New Basis of Accounting Required in Certain Circumstances, Emerging Issues Task Force Topic No.D-97, Push-Down Accounting.” We adopted this ASU effective immediately and it did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
Pronouncements Not Yet Implemented | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" which supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)." The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. There are also expanded disclosure requirements in this ASU. For public entities ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and allows for either full retrospective adoption or modified retrospective adoption. We are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial condition and results of operations. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-11 "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." This ASU changes the accounting for repurchase-to-maturity transactions and linked repurchase financings so that such transactions will now be accounted for as secured borrowings. This accounting change is effective for the first interim or annual period beginning after December 15, 2014 and early adoption is not permitted. There are also new disclosure requirements in this ASU. The adoption of ASU No. 2014-11 will not have a material impact on our consolidated financial condition and results of operations. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12 "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." This ASU was issued to address share-based payment awards with a performance target affecting vesting that could be achieved after the employee’s requisite service period. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. This ASU may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU No. 2014-12 will not have a material impact on our consolidated financial condition and results of operations. | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This ASU requires management to evaluate whether there are conditions or events that raise substantial doubt about the ability of a company to continue as a going concern for one year from the date the financial statements are issued or within one year after the date that the financial statements are available to be issued when applicable. Further, the ASU provides management guidance regarding its responsibility to disclose the ability of a company to continue as a going concern in the notes to the financial statements. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The adoption of ASU No. 2014-15 will not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-16, "Derivatives and Hedging (Topic 815): "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity." This ASU was issued to clarify and reinforce the practice of evaluating all relevant terms and features when reviewing the nature of a host contract. The ASU stipulates that no one term or feature would define the host contract’s economic characteristics and risks. As a result, the economic characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU No. 2014-16 will not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” In connection with the FASB's efforts to simplify accounting standards, the FASB released new guidance on simplifying Income Statement presentation by eliminating the concept of extraordinary items from U.S. GAAP. With the issuance of this ASU the FASB determined that the elimination of the concept of extraordinary items from U.S. GAAP would reduce the cost and complexity on the application of accounting standards, while maintaining or improving the usefulness of information included in financial statements. The adoption of ASU No. 2015-01 will not have an impact on our consolidated financial condition and results of operations. |
Acquisitions_Disposition_and_E
Acquisitions, Disposition and Exit of Joint Venture | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Acquisitions, Disposition and Exit of Joint Venture | ACQUISITIONS, DISPOSITION AND EXIT OF JOINT VENTURE | |||
SIHI Group B.V. | ||||
Our acquisition of SIHI Group B.V. ("SIHI") on January 7, 2015 is discussed in Note 21. | ||||
Naval OY | ||||
Effective March 31, 2014, we sold our Flow Control Division's ("FCD") Naval OY ("Naval") business to a Finnish valve manufacturer. The sale included Naval's manufacturing facility located in Laitila, Finland and a service and support center located in St. Petersburg, Russia. The cash proceeds for the sale totaled $46.8 million, net of cash divested, and resulted in a $13.4 million pre-tax gain recorded in selling, general and administrative expense in the consolidated statements of income. Net sales related to the Naval business totaled $8.2 million in the first quarter of 2014. | ||||
Innovative Mag-Drive, LLC | ||||
On December 10, 2013, we acquired for inclusion in Industrial Product Division ("IPD"), 100% of Innovative Mag-Drive, LLC ("Innomag"), a privately-owned, U.S.-based company specializing in advanced sealless magnetic drive centrifugal pumps for the chemical and general industries, in an asset purchase of up to $78.7 million in cash. Of the total purchase price, $67.5 million has been paid. The remaining $11.2 million of the total purchase price is contingent upon Innomag achieving certain performance metrics during the two- and five-year periods following the acquisition, and to the extent achieved, is expected to be paid in cash within four months of the performance measurement dates. We recorded a liability of $7.5 million as an estimate of the acquisition date fair value of the contingent consideration, which is based on the weighted probability of achievement of the performance metrics. Innomag generated approximately $17 million in sales (unaudited) during its fiscal year ended December 31, 2012. | ||||
The purchase price was allocated to the assets acquired and liabilities assumed based on estimates of fair values at the date of acquisition and is summarized below: | ||||
(Amounts in millions) | ||||
Current assets | $ | 8.1 | ||
Property, plant and equipment | 5.3 | |||
Intangible assets | 18.5 | |||
Current liabilities | (0.8 | ) | ||
Net tangible and intangible assets | 31.1 | |||
Goodwill | 43.9 | |||
Purchase price | $ | 75 | ||
The excess of the acquisition date fair value of the total purchase price over the estimated fair value of the net tangible and intangible assets was recorded as goodwill. Goodwill represents the value expected to be obtained from the ability to be more competitive through the offering of a more complete pump product portfolio and from leveraging our current sales, distribution and service network. The goodwill related to this acquisition is recorded in the IPD segment. Upon acquisition, both know-how and existing customer relationships each represented approximately $7 million of the intangible assets acquired, and both had an expected weighted average useful life of ten years. Total amortizable intangible assets had an expected weighted average useful life of ten years. | ||||
Subsequent to December 10, 2013, the revenues and expenses of Innomag have been included in our consolidated statements of income. No pro forma information has been provided due to immateriality. | ||||
Audco India, Limited | ||||
Effective March 28, 2013, we and our joint venture partner agreed to exit our joint venture, Audco India, Limited (“AIL”), which manufactures integrated industrial valves in India. To effect the exit, in two separate transactions, Flow Control Division ("FCD") acquired 100% ownership of AIL's plug valve manufacturing business in an asset purchase for cash of $10.1 million and sold its 50% equity interest in AIL to the joint venture partner for $46.2 million in cash. We remeasured to fair value our previously held equity interest in the purchased net assets of the plug valve manufacturing business resulting in net assets acquired of approximately $25 million and a pre-tax gain of $15.3 million. The sale of our equity interest in AIL resulted in a pre-tax gain of $13.0 million. Both of the above gains were recorded in net earnings from affiliates in the consolidated statements of income. No pro forma information has been provided due to immateriality. Prior to these transactions, our 50% interest in AIL was recorded using the equity method of accounting. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||
EPD | IPD | FCD | Total | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Balance as of January 1, 2013 | $ | 447,560 | $ | 121,406 | $ | 484,886 | $ | 1,053,852 | ||||||||||
Acquisition(1) | — | 43,865 | — | 43,865 | ||||||||||||||
Currency translation | 1,936 | 261 | 7,637 | 9,834 | ||||||||||||||
Balance as of December 31, 2013 | $ | 449,496 | $ | 165,532 | $ | 492,523 | $ | 1,107,551 | ||||||||||
Disposition(2) | — | — | (6,483 | ) | (6,483 | ) | ||||||||||||
Currency translation | (9,756 | ) | (790 | ) | (23,267 | ) | (33,813 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 439,740 | $ | 164,742 | $ | 462,773 | $ | 1,067,255 | ||||||||||
_______________________________________ | ||||||||||||||||||
-1 | Goodwill primarily related to the acquisition of Innomag in 2013. See Note 2 for additional information. | |||||||||||||||||
-2 | Goodwill disposition related to the sale of Naval in 2014. See Note 2 for additional information. | |||||||||||||||||
The following table provides information about our intangible assets for the years ended December 31, 2014 and 2013: | ||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||
Useful | Ending | Accumulated | Ending | Accumulated | ||||||||||||||
Life | Gross | Amortization | Gross | Amortization | ||||||||||||||
(Years) | Amount | Amount | ||||||||||||||||
(Amounts in thousands, except years) | ||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Engineering drawings(1) | 22-Oct | $ | 90,843 | $ | (62,947 | ) | $ | 93,687 | $ | (61,401 | ) | |||||||
Existing customer relationships(2) | 10-May | 38,003 | (19,285 | ) | 40,077 | (15,241 | ) | |||||||||||
Patents | 16-Sep | 29,396 | (26,087 | ) | 32,963 | (28,013 | ) | |||||||||||
Other | Apr-40 | 43,351 | (25,426 | ) | 40,797 | (25,438 | ) | |||||||||||
$ | 201,593 | $ | (133,745 | ) | $ | 207,524 | $ | (130,093 | ) | |||||||||
Indefinite-lived intangible assets(3) | $ | 79,982 | $ | (1,493 | ) | $ | 84,670 | $ | (1,553 | ) | ||||||||
____________________________________ | ||||||||||||||||||
-1 | Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. | |||||||||||||||||
-2 | Existing customer relationships acquired prior to 2011 had a useful life of five years. | |||||||||||||||||
-3 | Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. | |||||||||||||||||
The following schedule outlines actual amortization expense recognized during 2014 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2014: | ||||||||||||||||||
Amortization | ||||||||||||||||||
Expense | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Actual for year ended December 31, 2014 | $ | 14,005 | ||||||||||||||||
Estimated for year ending December 31, 2015 | 10,832 | |||||||||||||||||
Estimated for year ending December 31, 2016 | 8,534 | |||||||||||||||||
Estimated for year ending December 31, 2017 | 8,280 | |||||||||||||||||
Estimated for year ending December 31, 2018 | 8,005 | |||||||||||||||||
Estimated for year ending December 31, 2019 | 7,355 | |||||||||||||||||
Thereafter | 24,842 | |||||||||||||||||
Amortization expense for finite-lived intangible assets was $12.8 million in 2013 and $16.0 million in 2012. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | INVENTORIES | |||||||
Inventories, net consisted of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Raw materials | $ | 352,928 | $ | 356,899 | ||||
Work in process | 687,343 | 786,664 | ||||||
Finished goods | 265,439 | 306,765 | ||||||
Less: Progress billings | (230,058 | ) | (304,395 | ) | ||||
Less: Excess and obsolete reserve | (80,088 | ) | (85,263 | ) | ||||
Inventories, net | $ | 995,564 | $ | 1,060,670 | ||||
During 2014, 2013 and 2012, we recognized expenses of $19.2 million, $24.4 million and $18.2 million, respectively, for excess and obsolete inventory. These expenses are included in cost of sales ("COS") in our consolidated statements of income. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS | ||||||||||||||||||||
We maintain the Flowserve Corporation Equity and Incentive Compensation Plan (the "2010 Plan"), which is a shareholder-approved plan authorizing the issuance of up to 8,700,000 shares of our common stock in the form of incentive stock options, non-statutory stock options, restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), stock appreciation rights and bonus stock. Of the 8,700,000 shares of common stock authorized under the 2010 Plan, 5,085,954 were available for issuance as of December 31, 2014. The Flowserve Corporation 2004 Stock Compensation Plan expired on June 22, 2014, with 827,835 shares unissued. No stock options have been granted since 2006. | |||||||||||||||||||||
Stock Options — Options granted to officers, other employees and directors allow for the purchase of common shares at the market value of our stock on the date the options are granted. Options generally become exercisable over a staggered period ranging from one to five years (most typically from one to three years). At December 31, 2014, all outstanding options were fully vested. Options generally expire 10 years from the date of the grant or within a short period of time following the termination of employment or cessation of services by an option holder. No options were granted during 2014, 2013 or 2012. Information related to stock options issued to officers, other employees and directors prior to 2010 under all plans is presented in the following table: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Number of shares under option: | |||||||||||||||||||||
Outstanding — beginning of year | 97,962 | $ | 16.61 | 115,362 | $ | 15 | 145,338 | $ | 13.9 | ||||||||||||
Exercised | — | — | (17,400 | ) | 5.91 | (24,576 | ) | 10.15 | |||||||||||||
Canceled | — | — | — | — | (5,400 | ) | 7.65 | ||||||||||||||
Outstanding — end of year | 97,962 | $ | 16.61 | 97,962 | $ | 16.61 | 115,362 | $ | 15 | ||||||||||||
Exercisable — end of year | 97,962 | $ | 16.61 | 97,962 | $ | 16.61 | 115,362 | $ | 15 | ||||||||||||
Additional information relating to the ranges of options outstanding at December 31, 2014, is as follows: | |||||||||||||||||||||
Weighted Average Remaining Contractual Life | Options Outstanding and Exercisable | ||||||||||||||||||||
Range of Exercise | Number Outstanding | Weighted Average Exercise Price per Share | |||||||||||||||||||
Prices per Share | |||||||||||||||||||||
$8.08 - $14.14 | 0.53 | 10,500 | $ | 10.32 | |||||||||||||||||
$14.14 - $16.16 | 1.13 | 3,201 | 16.06 | ||||||||||||||||||
$16.16 - $18.18 | 1.95 | 84,261 | 17.42 | ||||||||||||||||||
97,962 | $ | 16.61 | |||||||||||||||||||
As of December 31, 2014, we had no unrecognized compensation cost related to outstanding stock option awards. | |||||||||||||||||||||
The weighted average remaining contractual life of options outstanding at December 31, 2014 and 2013 was 1.8 years and 2.8 years, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was zero, $0.8 million and $0.7 million, respectively. No stock options vested during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
Restricted Shares — Generally, the restrictions on Restricted Shares do not expire for a minimum of one year and a maximum of three years, and shares are subject to forfeiture during the restriction period. Most typically, Restricted Share grants have staggered vesting periods over one to three years from grant date. The intrinsic value of the Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse. | |||||||||||||||||||||
Unearned compensation is amortized to compensation expense over the vesting period of the Restricted Shares. As of December 31, 2014 and 2013, we had $30.6 million and $31.5 million, respectively, of unearned compensation cost related to unvested Restricted Shares, which is expected to be recognized over a weighted-average period of approximately one year. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the years ended December 31, 2014, 2013 and 2012 was $34.8 million, $34.9 million and $36.4 million, respectively. | |||||||||||||||||||||
We recorded stock-based compensation for restricted shares as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(Amounts in millions) | |||||||||||||||||||||
Stock-based compensation expense | $ | 42.7 | $ | 35.8 | $ | 35.4 | |||||||||||||||
Related income tax benefit | (14.6 | ) | -12.3 | -12 | |||||||||||||||||
Net stock-based compensation expense | $ | 28.1 | $ | 23.5 | $ | 23.4 | |||||||||||||||
The following table summarizes information regarding Restricted Shares: | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant-Date Fair Value | |||||||||||||||||||||
Number of unvested Restricted Shares: | |||||||||||||||||||||
Outstanding — beginning of year | 2,020,678 | $ | 44.68 | ||||||||||||||||||
Granted | 734,187 | 64.35 | |||||||||||||||||||
Vested | (788,468 | ) | 44.1 | ||||||||||||||||||
Canceled | (109,849 | ) | 51.63 | ||||||||||||||||||
Outstanding — ending of year | 1,856,548 | $ | 52.29 | ||||||||||||||||||
Unvested Restricted Shares outstanding as of December 31, 2014, includes approximately 811,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets, primarily based on our average annual return on net assets over a three-year period as compared with the same measure for a defined peer group for the same period. Most units were granted in three annual grants since January 1, 2012 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Compensation expense is recognized ratably over a cliff-vesting period of 36 months based on the fair market value of our common stock on the date of grant, as adjusted for anticipated forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets. Vesting provisions range from 0 to approximately 1,580,000 shares based on performance targets. As of December 31, 2014, we estimate vesting of approximately 1,244,000 shares based on expected achievement of performance targets. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES | |||||||||||
Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Note 1 for additional information on our purpose for entering into derivatives and our overall risk management strategies. We enter into foreign exchange forward and swap contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. All designated foreign exchange hedging instruments are highly effective. | ||||||||||||
In 2013 we elected to designate and apply hedge accounting to certain forward exchange contracts. Foreign exchange contracts designated as hedging instruments had notional values of $125.9 million and $6.2 million at December 31, 2014 and 2013, respectively. Foreign exchange contracts not designated as hedging instruments had notional values of $421.1 million and $610.7 million at December 31, 2014 and 2013, respectively. At December 31, 2014, the length of foreign exchange contracts currently in place ranged from 5 days to 37 months. | ||||||||||||
Also as part of our risk management program, we enter into interest rate swap agreements to hedge exposure to floating interest rates on certain portions of our debt. At December 31, 2014 and 2013, we had $40.0 million and $140.0 million, respectively, of notional amount in outstanding designated interest rate swaps with third parties. All interest rate swaps are highly effective. At December 31, 2014, the maximum remaining length of any interest rate swap contract in place was approximately 6 months. | ||||||||||||
We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. | ||||||||||||
The fair value of foreign exchange derivative contracts not designated as hedging instruments are summarized below: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current derivative assets | $ | 11,709 | $ | 5,215 | ||||||||
Noncurrent derivative assets | 6 | 729 | ||||||||||
Current derivative liabilities | 6,168 | 2,207 | ||||||||||
Noncurrent derivative liabilities | 348 | 113 | ||||||||||
The fair value of interest rate swaps and foreign exchange derivative contracts designated as hedging instruments are summarized below: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current derivative assets | $ | — | $ | 146 | ||||||||
Current derivative liabilities | 6,952 | 409 | ||||||||||
Noncurrent derivative liabilities | 411 | 37 | ||||||||||
Current and noncurrent derivative assets are reported in our consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively. | ||||||||||||
The impact of net changes in the fair values of foreign exchange contracts are summarized below: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Gain (loss) recognized in income | $ | 8,464 | $ | (4,352 | ) | $ | (7,089 | ) | ||||
Gains and losses recognized in our consolidated statements of income for foreign exchange contracts are classified as other income (expense), net. | ||||||||||||
The impact of net changes in the fair values of interest rate swaps in cash flow hedging relationships are immaterial for disclosure purposes. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS |
The fair value of our debt, excluding the Senior Notes, was estimated using interest rates on similar debt recently issued by companies with credit metrics similar to ours and is classified as Level II under the fair value hierarchy. The carrying value of our debt is included in Note 10 and, except for the Senior Notes, approximates fair value. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The estimated fair value of our Senior Notes at December 31, 2014 was $810.1 million compared to the carrying value of $797.2 million. The carrying amounts of our other financial instruments (i.e., cash and cash equivalents, accounts receivable, net and accounts payable) approximated fair value due to their short-term nature at December 31, 2014 and December 31, 2013. |
Details_of_Certain_Consolidate
Details of Certain Consolidated Balance Sheet Captions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||||||||
Details of Certain Consolidated Balance Sheet Captions | DETAILS OF CERTAIN CONSOLIDATED BALANCE SHEET CAPTIONS | |||||||
The following tables present financial information of certain consolidated balance sheet captions. | ||||||||
Accounts Receivable, net — Accounts receivable, net were: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Accounts receivable | $ | 1,107,916 | $ | 1,179,400 | ||||
Less: allowance for doubtful accounts | (25,469 | ) | (24,073 | ) | ||||
Accounts receivable, net | $ | 1,082,447 | $ | 1,155,327 | ||||
As disclosed in Note 1, we reclassified a portion of our accounts receivable to long-term within other assets, net on our December 31, 2014 consolidated balance sheet. | ||||||||
Property, Plant and Equipment, net — Property, plant and equipment, net were: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 76,645 | $ | 79,557 | ||||
Buildings and improvements | 405,733 | 420,364 | ||||||
Machinery, equipment and tooling | 668,710 | 694,179 | ||||||
Software, furniture and fixtures and other | 379,774 | 372,052 | ||||||
Gross property, plant and equipment | 1,530,862 | 1,566,152 | ||||||
Less: accumulated depreciation | (836,981 | ) | (849,863 | ) | ||||
Property, plant and equipment, net | $ | 693,881 | $ | 716,289 | ||||
Accrued Liabilities — Accrued liabilities were: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Wages, compensation and other benefits | $ | 226,488 | $ | 238,238 | ||||
Commissions and royalties | 34,194 | 38,609 | ||||||
Customer advance payments | 303,527 | 340,136 | ||||||
Progress billings in excess of accumulated costs | 22,098 | 40,718 | ||||||
Warranty costs and late delivery penalties | 47,738 | 63,935 | ||||||
Sales and use tax | 16,274 | 15,508 | ||||||
Income tax | 37,451 | 21,939 | ||||||
Other | 106,302 | 101,927 | ||||||
Accrued liabilities | $ | 794,072 | $ | 861,010 | ||||
"Other" accrued liabilities include professional fees, lease obligations, insurance, interest, freight, restructuring charges, accrued cash dividends payable, legal and environmental matters, derivative liabilities and other items, none of which individually exceed 5% of current liabilities. | ||||||||
Retirement Obligations and Other Liabilities — Retirement obligations and other liabilities were: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Pension and postretirement benefits | $ | 195,429 | $ | 199,634 | ||||
Deferred taxes | 118,780 | 110,251 | ||||||
Legal and environmental | 27,606 | 35,250 | ||||||
Uncertain tax positions | 69,284 | 82,689 | ||||||
Other | 41,412 | 46,070 | ||||||
Retirement obligations and other liabilities | $ | 452,511 | $ | 473,894 | ||||
Equity_Method_Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS |
We occasionally enter into joint venture arrangements with local country partners as our preferred means of entry into countries where barriers to entry may exist. Similar to our consolidated subsidiaries, these unconsolidated joint ventures generally operate within our primary businesses of designing, manufacturing, assembling and distributing fluid motion and control products and services. We have agreements with certain of these joint ventures that restrict us from otherwise entering the respective market and certain joint ventures produce and/or sell our products as part of their broader product offering. Net earnings from investments in unconsolidated joint ventures is reported in net earnings from affiliates in our consolidated statements of income. Given the integrated role of the unconsolidated joint ventures in our business, net earnings from affiliates is presented as a component of operating income. | |
As discussed in Note 2, effective March 28, 2013, we and our joint venture partner agreed to exit our AIL joint venture. Prior the exit, our 50% interest was recorded using the equity method of accounting. As of December 31, 2014, we had investments in seven joint ventures (one located in each of India, Japan, Saudi Arabia, South Korea and the United Arab Emirates and two located in China) that were accounted for using the equity method and are immaterial for disclosure purposes. |
Debt_and_Lease_Obligations
Debt and Lease Obligations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt and Lease Obligations | DEBT AND LEASE OBLIGATIONS | |||||||||||
Debt, including capital lease obligations, consisted of: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
4.00% Senior Notes due November 15, 2023, net of unamortized discount | $ | 298,731 | $ | 298,615 | ||||||||
3.50% Senior Notes due September 15, 2022, net of unamortized discount | 498,460 | 498,289 | ||||||||||
Term Loan Facility, interest rate of 1.51% and 1.50% at December 31, 2014 and 2013, respectively | 330,000 | 370,000 | ||||||||||
Capital lease obligations and other borrowings | 27,731 | 33,393 | ||||||||||
Debt and capital lease obligations | 1,154,922 | 1,200,297 | ||||||||||
Less amounts due within one year | 53,131 | 72,678 | ||||||||||
Total debt due after one year | $ | 1,101,791 | $ | 1,127,619 | ||||||||
Scheduled maturities of the Senior Credit Facility (as described below), as well as our Senior Notes and other debt, are: | ||||||||||||
Term | Senior Notes and other debt | Total | ||||||||||
Loan | ||||||||||||
(Amounts in thousands) | ||||||||||||
2015 | $ | 45,000 | $ | 8,131 | $ | 53,131 | ||||||
2016 | 60,000 | 19,600 | 79,600 | |||||||||
2017 | 60,000 | — | 60,000 | |||||||||
2018 | 165,000 | — | 165,000 | |||||||||
Thereafter | — | 797,191 | 797,191 | |||||||||
Total | $ | 330,000 | $ | 824,922 | $ | 1,154,922 | ||||||
Senior Notes | ||||||||||||
On November 1, 2013 we completed the public offering of $300.0 million in aggregate principal amount of senior notes due November 15, 2023 ("2023 Senior Notes"). The 2023 Senior Notes bear an interest rate of 4.00% per year, payable on May 15 and November 15 of each year. The 2023 Senior Notes were priced at 99.532% of par value, reflecting a discount to the aggregate principal amount. We used a portion of the net proceeds of the 2023 Senior Notes offering to repay amounts outstanding under our revolving credit facility described below. We used the remaining portion of the net proceeds for general corporate purposes, including the acquisition of Innomag described in Note 2. | ||||||||||||
On September 11, 2012, we completed the public offering of $500.0 million in aggregate principal amount of senior notes due September 15, 2022 ("2022 Senior Notes"). The 2022 Senior Notes bear an interest rate of 3.50% per year, payable on March 15 and September 15 of each year. The 2022 Senior Notes were priced at 99.615% of par value, reflecting a discount to the aggregate principal amount. | ||||||||||||
We have the right to redeem the 2022 Senior Notes and 2023 Senior Notes at any time prior to June 15, 2022 and August 15, 2023, respectively, in whole or in part, at our option, at a redemption price equal to the greater of: (1) 100% of the principal amount of the senior notes being redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest in respect of the Senior Notes being redeemed discounted to the redemption date on a semi-annual basis, at the applicable Treasury Rate plus 30 basis points for the 2022 Senior Notes and plus 25 basis points for the 2023 Senior Notes. In addition, at any time on or after June 15, 2022 for the 2022 Senior Notes and August 15, 2023 for the 2023 Senior Notes, we may redeem the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes being redeemed. In each case, we will also pay the accrued and unpaid interest on the principal amount being redeemed to the redemption date. | ||||||||||||
Both the 2022 Senior Notes and 2023 Senior Notes are unsecured and are jointly and severally and fully and unconditionally guaranteed by certain of our 100% owned domestic subsidiaries that are guarantors under our Senior Credit Facility (described below) and rank equally in right of payment with all of our other senior unsecured indebtedness. The guarantees will be automatically and unconditionally released and discharged when: the guarantor subsidiary is sold or sells all of its assets; the requirement for legal or covenant defeasance or to discharge our obligations has been satisfied; or upon the delivery of an officer's certificate to the trustee that such guarantor subsidiary does not guarantee our obligations under our Senior Credit Facility. Both the 2022 and 2023 Senior Notes rank equally in right of payment with all of our other senior unsecured indebtedness. | ||||||||||||
Senior Credit Facility | ||||||||||||
On October 4, 2013 we amended our existing credit agreement that provided for an initial $400.0 million term loan (“Term Loan Facility”) and a revolving credit facility (“Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Credit Facility”). The significant amendments extended the maturity of our Senior Credit Facility by one year to October 4, 2018, increased the Revolving Credit Facility from $850.0 million to $1.0 billion and removed the $300.0 million sublimit for the issuance of performance letters of credit. The Revolving Credit Facility retains its $30.0 million sublimit for swing line loans and all other significant existing terms under the credit agreement remained unchanged. As of December 31, 2014 and December 31, 2013, we had no amounts outstanding under the Revolving Credit Facility. We had outstanding letters of credit of $76.8 million and $106.1 million at December 31, 2014 and December 31, 2013, respectively, which reduced our borrowing capacity to $923.2 million and $893.9 million, respectively. Under the Senior Credit Facility and subject to certain conditions, we have the right to increase the amount of the Term Loan Facility or the Revolving Credit Facility by an aggregate amount not to exceed $400.0 million. Our obligations under the Senior Credit Facility are guaranteed by certain of our 100% owned domestic subsidiaries. Such guarantees are released if we achieve certain credit ratings. We had not achieved these ratings as of December 31, 2014. Future borrowings under the Revolving Credit Facility will be subject to various conditions, including the absence of any default under the Senior Credit Facility. | ||||||||||||
The Senior Credit Facility contains, among other things, covenants defining our and our subsidiaries' ability to dispose of assets, merge, pay dividends, repurchase or redeem capital stock and indebtedness, incur indebtedness and guarantees, create liens, enter into agreements with negative pledge clauses, make certain investments or acquisitions, enter into transactions with affiliates or engage in any business activity other than our existing business. The Senior Credit Facility limits us to a maximum permitted leverage ratio of 3.25 times debt to total Consolidated EBITDA (as defined in the Senior Credit Facility) and requires a minimum interest coverage of 3.25 times Consolidated EBITDA to total interest expense. Our compliance with these financial covenants under the Senior Credit Facility is tested quarterly. We were in compliance with the covenants as of December 31, 2014. | ||||||||||||
Repayment of Obligations —We may prepay loans under our Senior Credit Facility in whole or in part, without premium or penalty, at any time. A commitment fee, which is payable quarterly on the daily unused portions of the Senior Credit Facility, was 0.175% (per annum) at December 31, 2014. We made scheduled principal repayments under our Term Loan Facility of $40.0 million, $25.0 million and $5.0 million in 2014, 2013 and 2012 , respectively. We made scheduled principal payments of $12.5 million under our prior credit agreement in 2012. We have scheduled principal repayments of $10.0 million due in each of the next three quarters and $15 million for the fourth quarter of 2015 under our Term Loan Facility. Our Senior Credit Facility bears a floating rate of interest, and we have entered into $40.0 million of notional amount of interest rate swaps at December 31, 2014 to hedge exposure to floating interest rates. | ||||||||||||
European Letter of Credit Facility | ||||||||||||
Due to the increased capacity and the removal of the performance letters of credit sublimit of the amended Revolving Credit Facility, we elected not to renew our 364-day unsecured, committed €125.0 million European Letter of Credit Facility ("European LOC Facility"), which expired in October 2013; however, a portion of the existing letters of credit remain outstanding and we are still bound by the facility's covenants. The European LOC facility's covenants restrict the ability of certain foreign subsidiaries to issue debt, incur liens, sell assets, merge, consolidate, make certain investments, pay dividends, enter into agreements with negative pledge clauses or engage in any business activity other than our existing business. The European LOC Facility also incorporates by reference the covenants contained in our Senior Credit Facility. We were in compliance with all covenants under our European LOC Facility as of December 31, 2014. | ||||||||||||
The remaining outstanding letters of credit will mature over the next three years. We had outstanding letters of credit drawn on the European LOC Facility of €6.3 million ($7.6 million) and €69.6 million ($95.4 million) as of December 31, 2014 and 2013, respectively. | ||||||||||||
Operating Leases | ||||||||||||
We have non-cancelable operating leases for certain offices, service and quick response centers, certain manufacturing and operating facilities, machinery, equipment and automobiles. Rental expense relating to operating leases was $56.2 million, $62.3 million and $63.6 million in 2014, 2013 and 2012, respectively. | ||||||||||||
The future minimum lease payments due under non-cancelable operating leases are (amounts in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2015 | $ | 49,625 | ||||||||||
2016 | 36,829 | |||||||||||
2017 | 27,824 | |||||||||||
2018 | 22,081 | |||||||||||
2019 | 17,184 | |||||||||||
Thereafter | 63,837 | |||||||||||
Total minimum lease payments | $ | 217,380 | ||||||||||
Supplemental_Guarantor_Financi
Supplemental Guarantor Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Financial Data [Abstract] | ||||||||||||||||||||
Supplemental Guarantor Financial Information | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||||
Our Senior Notes are fully and unconditionally and jointly and severally guaranteed by certain of our 100% owned domestic subsidiaries. The following condensed consolidating financial statements present the financial position, results of operations and cash flows of Flowserve Corporation (referred to as “Parent” for the purpose of this note only) on a Parent−only (Issuer) basis, the combined guarantor subsidiaries on a guarantor−only basis, the combined non-guarantor subsidiaries on a non-guarantor-only basis and elimination adjustments necessary to arrive at the information for the Parent, guarantor subsidiaries and non-guarantor subsidiaries on a condensed consolidated basis. Investments in subsidiaries have been accounted for using the equity method for this presentation. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 51,200 | $ | — | $ | 399,150 | $ | — | $ | 450,350 | ||||||||||
Accounts receivable, net | — | 258,386 | 824,061 | — | 1,082,447 | |||||||||||||||
Intercompany receivables | — | 138,524 | 50,086 | (188,610 | ) | — | ||||||||||||||
Inventories, net | — | 353,894 | 641,670 | — | 995,564 | |||||||||||||||
Other current assets | 1,112 | 150,934 | 113,756 | — | 265,802 | |||||||||||||||
Total current assets | 52,312 | 901,738 | 2,028,723 | (188,610 | ) | 2,794,163 | ||||||||||||||
Property, plant and equipment, net | — | 240,204 | 453,677 | — | 693,881 | |||||||||||||||
Goodwill | — | 709,239 | 358,016 | — | 1,067,255 | |||||||||||||||
Intercompany receivables | 392,500 | 134,704 | 42,970 | (570,174 | ) | — | ||||||||||||||
Investment in consolidated subsidiaries | 2,622,193 | 1,608,997 | — | (4,231,190 | ) | — | ||||||||||||||
Other assets, net | 12,498 | 186,013 | 214,210 | — | 412,721 | |||||||||||||||
Total assets | $ | 3,079,503 | $ | 3,780,895 | $ | 3,097,596 | $ | (4,989,974 | ) | $ | 4,968,020 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 167,624 | $ | 444,091 | $ | — | $ | 611,715 | ||||||||||
Intercompany payables | 126 | 49,960 | 138,524 | (188,610 | ) | — | ||||||||||||||
Accrued liabilities | 13,026 | 291,193 | 489,853 | — | 794,072 | |||||||||||||||
Debt due within one year | 45,000 | — | 8,131 | — | 53,131 | |||||||||||||||
Deferred taxes | — | — | 12,957 | — | 12,957 | |||||||||||||||
Total current liabilities | 58,152 | 508,777 | 1,093,556 | (188,610 | ) | 1,471,875 | ||||||||||||||
Long-term debt due after one year | 1,082,191 | — | 19,600 | — | 1,101,791 | |||||||||||||||
Intercompany payables | 1,144 | 434,326 | 134,704 | (570,174 | ) | — | ||||||||||||||
Retirement obligations and other liabilities | 6,454 | 215,599 | 230,458 | — | 452,511 | |||||||||||||||
Total liabilities | 1,147,941 | 1,158,702 | 1,478,318 | (758,784 | ) | 3,026,177 | ||||||||||||||
Total Flowserve Corporation shareholders’ equity | 1,931,562 | 2,622,193 | 1,608,997 | (4,231,190 | ) | 1,931,562 | ||||||||||||||
Noncontrolling interests | — | — | 10,281 | — | 10,281 | |||||||||||||||
Total equity | 1,931,562 | 2,622,193 | 1,619,278 | (4,231,190 | ) | 1,941,843 | ||||||||||||||
Total liabilities and equity | $ | 3,079,503 | $ | 3,780,895 | $ | 3,097,596 | $ | (4,989,974 | ) | $ | 4,968,020 | |||||||||
31-Dec-13 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 29,086 | $ | — | $ | 334,718 | $ | — | $ | 363,804 | ||||||||||
Accounts receivable, net | — | 263,594 | 891,733 | — | 1,155,327 | |||||||||||||||
Intercompany receivables | — | 155,422 | 74,089 | (229,511 | ) | — | ||||||||||||||
Inventories, net | — | 371,172 | 689,498 | — | 1,060,670 | |||||||||||||||
Other current assets, net | 1,879 | 144,551 | 121,151 | — | 267,581 | |||||||||||||||
Total current assets | 30,965 | 934,739 | 2,111,189 | (229,511 | ) | 2,847,382 | ||||||||||||||
Property, plant and equipment, net | — | 220,072 | 496,217 | — | 716,289 | |||||||||||||||
Goodwill | — | 715,722 | 391,829 | — | 1,107,551 | |||||||||||||||
Intercompany receivables | 432,500 | 9,520 | 186,789 | (628,809 | ) | — | ||||||||||||||
Investment in consolidated subsidiaries | 2,579,701 | 1,850,998 | — | (4,430,699 | ) | — | ||||||||||||||
Other assets, net | 15,486 | 211,755 | 138,270 | — | 365,511 | |||||||||||||||
Total assets | $ | 3,058,652 | $ | 3,942,806 | $ | 3,324,294 | $ | (5,289,019 | ) | $ | 5,036,733 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 163,254 | $ | 448,838 | $ | — | $ | 612,092 | ||||||||||
Intercompany payables | 81 | 74,008 | 155,422 | (229,511 | ) | — | ||||||||||||||
Accrued liabilities | 12,874 | 293,012 | 555,124 | — | 861,010 | |||||||||||||||
Debt due within one year | 40,000 | 5 | 32,673 | — | 72,678 | |||||||||||||||
Deferred taxes | — | — | 12,319 | — | 12,319 | |||||||||||||||
Total current liabilities | 52,955 | 530,279 | 1,204,376 | (229,511 | ) | 1,558,099 | ||||||||||||||
Long-term debt due after one year | 1,126,904 | — | 715 | — | 1,127,619 | |||||||||||||||
Intercompany payables | 1,144 | 618,145 | 9,520 | (628,809 | ) | — | ||||||||||||||
Retirement obligations and other liabilities | 7,270 | 214,681 | 251,943 | — | 473,894 | |||||||||||||||
Total liabilities | 1,188,273 | 1,363,105 | 1,466,554 | (858,320 | ) | 3,159,612 | ||||||||||||||
Total Flowserve Corporation shareholders’ equity | 1,870,379 | 2,579,701 | 1,850,998 | (4,430,699 | ) | 1,870,379 | ||||||||||||||
Noncontrolling interests | — | — | 6,742 | — | 6,742 | |||||||||||||||
Total equity | 1,870,379 | 2,579,701 | 1,857,740 | (4,430,699 | ) | 1,877,121 | ||||||||||||||
Total liabilities and equity | $ | 3,058,652 | $ | 3,942,806 | $ | 3,324,294 | $ | (5,289,019 | ) | $ | 5,036,733 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,944,086 | $ | 3,284,577 | $ | (350,778 | ) | $ | 4,877,885 | |||||||||
Cost of sales | — | (1,261,913 | ) | (2,252,133 | ) | 350,778 | (3,163,268 | ) | ||||||||||||
Gross profit | — | 682,173 | 1,032,444 | — | 1,714,617 | |||||||||||||||
Selling, general and administrative expense | (2,725 | ) | (395,650 | ) | (538,525 | ) | — | (936,900 | ) | |||||||||||
Net earnings from affiliates | — | 1,079 | 11,036 | — | 12,115 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 542,391 | 372,848 | — | (915,239 | ) | — | ||||||||||||||
Operating income | 539,666 | 660,450 | 504,955 | (915,239 | ) | 789,832 | ||||||||||||||
Interest expense, net | (35,731 | ) | (10,824 | ) | (12,087 | ) | — | (58,642 | ) | |||||||||||
Other income (expense), net | 45 | (11,697 | ) | 13,652 | — | 2,000 | ||||||||||||||
Earnings before income taxes | 503,980 | 637,929 | 506,520 | (915,239 | ) | 733,190 | ||||||||||||||
Provision for income taxes | 14,844 | (95,538 | ) | (127,611 | ) | — | (208,305 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 518,824 | 542,391 | 378,909 | (915,239 | ) | 524,885 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (6,061 | ) | — | (6,061 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 518,824 | $ | 542,391 | $ | 372,848 | $ | (915,239 | ) | $ | 518,824 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 359,895 | $ | 383,198 | $ | 184,648 | $ | (567,846 | ) | $ | 359,895 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,952,235 | $ | 3,388,258 | $ | (385,874 | ) | $ | 4,954,619 | |||||||||
Cost of sales | — | (1,281,035 | ) | (2,371,363 | ) | 385,874 | (3,266,524 | ) | ||||||||||||
Gross profit | — | 671,200 | 1,016,895 | — | 1,688,095 | |||||||||||||||
Selling, general and administrative expense | (3,079 | ) | (400,609 | ) | (563,141 | ) | — | (966,829 | ) | |||||||||||
Net earnings from affiliates | — | 1,175 | 37,842 | — | 39,017 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 505,764 | 345,465 | — | (851,229 | ) | — | ||||||||||||||
Operating income | 502,685 | 617,231 | 491,596 | (851,229 | ) | 760,283 | ||||||||||||||
Interest expense, net | (29,729 | ) | (11,685 | ) | (11,568 | ) | — | (52,982 | ) | |||||||||||
Other expense, net | — | (767 | ) | (13,513 | ) | — | (14,280 | ) | ||||||||||||
Earnings before income taxes | 472,956 | 604,779 | 466,515 | (851,229 | ) | 693,021 | ||||||||||||||
Provision for income taxes | 12,574 | (99,015 | ) | (118,260 | ) | — | (204,701 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 485,530 | 505,764 | 348,255 | (851,229 | ) | 488,320 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (2,790 | ) | — | (2,790 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 485,530 | $ | 505,764 | $ | 345,465 | $ | (851,229 | ) | $ | 485,530 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 488,363 | $ | 508,929 | $ | 316,484 | $ | (825,413 | ) | $ | 488,363 | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,833,613 | $ | 3,272,519 | $ | (354,793 | ) | $ | 4,751,339 | |||||||||
Cost of sales | — | (1,190,206 | ) | (2,334,975 | ) | 354,793 | (3,170,388 | ) | ||||||||||||
Gross profit | — | 643,407 | 937,544 | — | 1,580,951 | |||||||||||||||
Selling, general and administrative expense | (3,571 | ) | (390,713 | ) | (527,841 | ) | — | (922,125 | ) | |||||||||||
Net earnings from affiliates | — | 3,855 | 13,097 | — | 16,952 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 456,740 | 309,223 | — | (765,963 | ) | — | ||||||||||||||
Operating income | 453,169 | 565,772 | 422,800 | (765,963 | ) | 675,778 | ||||||||||||||
Interest expense, net | (9,881 | ) | (19,347 | ) | (13,338 | ) | — | (42,566 | ) | |||||||||||
Other expense income, net | — | (683 | ) | (20,964 | ) | — | (21,647 | ) | ||||||||||||
Earnings before income taxes | 443,288 | 545,742 | 388,498 | (765,963 | ) | 611,565 | ||||||||||||||
Provision for income taxes | 5,051 | (89,002 | ) | (76,815 | ) | — | (160,766 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 448,339 | 456,740 | 311,683 | (765,963 | ) | 450,799 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (2,460 | ) | — | (2,460 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 448,339 | $ | 456,740 | $ | 309,223 | $ | (765,963 | ) | $ | 448,339 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 440,127 | $ | 446,536 | $ | 292,167 | $ | (738,703 | ) | $ | 440,127 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 353,736 | $ | 611,190 | $ | 524,113 | $ | (918,077 | ) | $ | 570,962 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (57,125 | ) | (75,494 | ) | — | (132,619 | ) | ||||||||||||
Proceeds from sale of business, net of cash divested | — | — | 46,805 | — | 46,805 | |||||||||||||||
Intercompany short-term financing, net | — | — | 1,429 | (1,429 | ) | — | ||||||||||||||
Intercompany loan proceeds | 40,000 | 126 | 143,820 | (183,946 | ) | — | ||||||||||||||
Intercompany loan payments | — | (11,172 | ) | — | 11,172 | — | ||||||||||||||
Intercompany return of capital | — | 1,965 | — | (1,965 | ) | — | ||||||||||||||
Proceeds from disposal of assets | — | 162 | 1,569 | — | 1,731 | |||||||||||||||
Net cash flows provided (used) by investing activities | 40,000 | (66,044 | ) | 118,129 | (176,168 | ) | (84,083 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 6,579 | 2,008 | — | 8,587 | |||||||||||||||
Payments on long-term debt | (40,000 | ) | — | — | — | (40,000 | ) | |||||||||||||
Proceeds under other financing arrangements | — | — | 18,483 | — | 18,483 | |||||||||||||||
Payments under other financing arrangements | — | (5 | ) | (20,497 | ) | — | (20,502 | ) | ||||||||||||
Repurchases of common shares | (246,504 | ) | — | — | — | (246,504 | ) | |||||||||||||
Payments of dividends | (85,118 | ) | — | — | — | (85,118 | ) | |||||||||||||
Intercompany short-term financing, net | — | (1,429 | ) | — | 1,429 | — | ||||||||||||||
Intercompany loan proceeds | — | — | 11,172 | (11,172 | ) | — | ||||||||||||||
Intercompany loan payments | — | (183,819 | ) | (126 | ) | 183,945 | — | |||||||||||||
Intercompany distributions of capital | — | — | (1,965 | ) | 1,965 | — | ||||||||||||||
Intercompany dividends | — | (366,472 | ) | (551,606 | ) | 918,078 | — | |||||||||||||
All other financing, net | — | — | (2,604 | ) | — | (2,604 | ) | |||||||||||||
Net cash flows used by financing activities | (371,622 | ) | (545,146 | ) | (545,135 | ) | 1,094,245 | (367,658 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (32,675 | ) | — | (32,675 | ) | |||||||||||||
Net change in cash and cash equivalents | 22,114 | — | 64,432 | — | 86,546 | |||||||||||||||
Cash and cash equivalents at beginning of year | 29,086 | — | 334,718 | — | 363,804 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 51,200 | $ | — | $ | 399,150 | $ | — | $ | 450,350 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 261,741 | $ | 279,594 | $ | 214,066 | $ | (267,642 | ) | $ | 487,759 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (44,380 | ) | (94,710 | ) | — | (139,090 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | — | (66,658 | ) | (10,143 | ) | — | (76,801 | ) | ||||||||||||
Intercompany loan proceeds | 30,000 | 911 | 72,037 | (102,948 | ) | — | ||||||||||||||
Intercompany loan payments | — | (68 | ) | (173,510 | ) | 173,578 | — | |||||||||||||
Proceeds from disposal of assets | — | 110 | 1,543 | — | 1,653 | |||||||||||||||
Proceeds from equity investment in affiliates | — | — | 46,240 | — | 46,240 | |||||||||||||||
Net cash flows provided (used) by investing activities | 30,000 | (110,085 | ) | (158,543 | ) | 70,630 | (167,998 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 8,266 | 1,845 | — | 10,111 | |||||||||||||||
Payments on long-term debt | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||
Proceeds from issuance of senior notes | 298,596 | — | — | — | 298,596 | |||||||||||||||
Proceeds under other financing arrangements | — | — | 10,674 | — | 10,674 | |||||||||||||||
Payments under other financing arrangements | — | (20 | ) | (11,055 | ) | — | (11,075 | ) | ||||||||||||
Repurchases of common shares | (458,310 | ) | — | — | — | (458,310 | ) | |||||||||||||
Payments of dividends | (76,897 | ) | — | — | — | (76,897 | ) | |||||||||||||
Payment of deferred loan costs | (3,744 | ) | — | — | — | (3,744 | ) | |||||||||||||
Intercompany loan proceeds | — | 173,510 | 68 | (173,578 | ) | — | ||||||||||||||
Intercompany loan payments | — | (102,037 | ) | (911 | ) | 102,948 | — | |||||||||||||
Intercompany dividends | — | (249,228 | ) | (18,414 | ) | 267,642 | — | |||||||||||||
All other financing, net | 91 | — | (270 | ) | — | (179 | ) | |||||||||||||
Net cash flows used by financing activities | (265,264 | ) | (169,509 | ) | (18,063 | ) | 197,012 | (255,824 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (4,385 | ) | — | (4,385 | ) | |||||||||||||
Net change in cash and cash equivalents | 26,477 | — | 33,075 | — | 59,552 | |||||||||||||||
Cash and cash equivalents at beginning of year | 2,609 | — | 301,643 | — | 304,252 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 29,086 | $ | — | $ | 334,718 | $ | — | $ | 363,804 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 277,076 | $ | 193,819 | $ | 298,616 | $ | (252,381 | ) | $ | 517,130 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (43,600 | ) | (91,939 | ) | — | (135,539 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | — | — | (3,996 | ) | — | (3,996 | ) | |||||||||||||
Intercompany loan proceeds | 12,499 | 32,705 | 54,746 | (99,950 | ) | — | ||||||||||||||
Intercompany loan payments | — | (28,372 | ) | (138,918 | ) | 167,290 | — | |||||||||||||
Intercompany capital contribution | — | (483 | ) | — | 483 | — | ||||||||||||||
Proceeds from disposal of assets | — | 2,268 | 14,665 | — | 16,933 | |||||||||||||||
Affiliate investment activity, net | — | — | (3,825 | ) | — | (3,825 | ) | |||||||||||||
Net cash flows provided (used) by investing activities | 12,499 | (37,482 | ) | (169,267 | ) | 67,823 | (126,427 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 8,985 | 2,222 | — | 11,207 | |||||||||||||||
Payments on long-term debt | (480,000 | ) | — | — | — | (480,000 | ) | |||||||||||||
Proceeds from issuance of senior notes | 498,075 | — | — | — | 498,075 | |||||||||||||||
Proceeds from issuance of long-term debt | 400,000 | — | — | — | 400,000 | |||||||||||||||
Proceeds under other financing arrangements | — | — | 15,886 | — | 15,886 | |||||||||||||||
Payments under other financing arrangements | 9 | (20 | ) | (10,068 | ) | — | (10,079 | ) | ||||||||||||
Repurchase of common shares | (771,942 | ) | — | — | — | (771,942 | ) | |||||||||||||
Payment of dividends | (73,765 | ) | — | — | — | (73,765 | ) | |||||||||||||
Payment of deferred loan costs | (9,901 | ) | — | — | — | (9,901 | ) | |||||||||||||
Intercompany loan proceeds | — | 138,918 | 28,372 | (167,290 | ) | — | ||||||||||||||
Intercompany loan payments | — | (67,245 | ) | (32,705 | ) | 99,950 | — | |||||||||||||
Intercompany capital contribution | — | — | 483 | (483 | ) | — | ||||||||||||||
Intercompany dividends | — | (236,975 | ) | (15,406 | ) | 252,381 | — | |||||||||||||
All other financing, net | 250 | — | (8,653 | ) | — | (8,403 | ) | |||||||||||||
Net cash flows used by financing activities | (437,274 | ) | (156,337 | ) | (19,869 | ) | 184,558 | (428,922 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 5,115 | — | 5,115 | |||||||||||||||
Net change in cash and cash equivalents | (147,699 | ) | — | 114,595 | — | (33,104 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 150,308 | — | 187,048 | — | 337,356 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 2,609 | $ | — | $ | 301,643 | $ | — | $ | 304,252 | ||||||||||
Pension_and_Postretirement_Ben
Pension and Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits | PENSION AND POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||||||||
We sponsor several noncontributory defined benefit pension plans, covering substantially all U.S. employees and certain non-U.S. employees, which provide benefits based on years of service, age, job grade levels and type of compensation. Retirement benefits for all other covered employees are provided through contributory pension plans, cash balance pension plans and government-sponsored retirement programs. All funded defined benefit pension plans receive funding based on independent actuarial valuations to provide for current service and an amount sufficient to amortize unfunded prior service over periods not to exceed 30 years, with funding falling within the legal limits prescribed by prevailing regulation. We also maintain unfunded defined benefit plans that, as permitted by local regulations, receive funding only when benefits become due. | ||||||||||||||||||||||||||||||||
Our defined benefit plan strategy is to ensure that current and future benefit obligations are adequately funded in a cost-effective manner. Additionally, our investing objective is to achieve the highest level of investment performance that is compatible with our risk tolerance and prudent investment practices. Because of the long-term nature of our defined benefit plan liabilities, our funding strategy is based on a long-term perspective for formulating and implementing investment policies and evaluating their investment performance. | ||||||||||||||||||||||||||||||||
The asset allocation of our defined benefit plans reflect our decision about the proportion of the investment in equity and fixed income securities, and, where appropriate, the various sub-asset classes of each. At least annually, we complete a comprehensive review of our asset allocation policy and the underlying assumptions, which includes our long-term capital markets rate of return assumptions and our risk tolerances relative to our defined benefit plan liabilities. | ||||||||||||||||||||||||||||||||
The expected rates of return on defined benefit plan assets are derived from review of the asset allocation strategy, expected long-term performance of asset classes, risks and other factors adjusted for our specific investment strategy. These rates are impacted by changes in general market conditions, but because they are long-term in nature, short-term market changes do not significantly impact the rates. | ||||||||||||||||||||||||||||||||
Our U.S. defined benefit plan assets consist of a balanced portfolio of primarily U.S. equity and fixed income securities. Our non-U.S. defined benefit plan assets include a significant concentration of United Kingdom ("U.K.") fixed income securities. We monitor investment allocations and manage plan assets to maintain acceptable levels of risk. In addition, certain of our defined benefit plans hold investments in European equity and fixed income securities. | ||||||||||||||||||||||||||||||||
For all periods presented, we used a measurement date of December 31 for each of our U.S. and non-U.S. pension plans and postretirement medical plans. | ||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | ||||||||||||||||||||||||||||||||
We maintain qualified and non-qualified defined benefit pension plans in the U.S. The qualified plan provides coverage for substantially all full-time U.S. employees who receive benefits, up to an earnings threshold specified by the U.S. Department of Labor. The non-qualified plans primarily cover a small number of employees including current and former members of senior management, providing them with benefit levels equivalent to other participants, but that are otherwise limited by U.S. Department of Labor rules. The U.S. plans are designed to operate as "cash balance" arrangements, under which the employee has the option to take a lump sum payment at the end of their service. The total accumulated benefit obligation is equivalent to the total projected benefit obligation ("Benefit Obligation"). | ||||||||||||||||||||||||||||||||
The following are assumptions related to the U.S. defined benefit pension plans: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligations: | ||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | 3.75 | % | ||||||||||||||||||||||||||
Rate of increase in compensation levels | 4.25 | 4.25 | 4.25 | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine net pension expense: | ||||||||||||||||||||||||||||||||
Long-term rate of return on assets | 6 | % | 6 | % | 6.25 | % | ||||||||||||||||||||||||||
Discount rate | 4.5 | 3.75 | 4.5 | |||||||||||||||||||||||||||||
Rate of increase in compensation levels | 4.25 | 4.25 | 4.25 | |||||||||||||||||||||||||||||
At December 31, 2014 as compared with December 31, 2013, we decreased our discount rate from 4.50% to 4.00% based on an analysis of publicly-traded investment grade U.S. corporate bonds, which had a lower yield due to current market conditions. At December 31, 2014, as compared with December 31, 2013, our average assumed rate of compensation increase remained constant at 4.25%. In determining 2014 expense, the expected rate of return on U.S. plan assets remained constant at 6.00%, primarily based on our target allocations and expected long-term asset returns. The long-term rate of return assumption is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. For all US plans, we adopted the RP-2014 mortality tables and the MP-2014 improvement scale published in October 2014. We applied the RP-2014 tables based on the constituency of our plan population for union and non-union participants. We adjusted the improvement scale to utilize 75% of the ultimate improvement rate, consistent with assumptions adopted by the Social Security Administration trustees, based on long-term historical experience. Currently, we believe this approach provides the best estimate of our future obligation. Most plan participants elect to receive plan benefits as a lump sum at the end of service, rather than an annuity. As such, the updated mortality tables had an immaterial effect on our pension obligation. | ||||||||||||||||||||||||||||||||
Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 22,981 | $ | 23,355 | $ | 21,222 | ||||||||||||||||||||||||||
Interest cost | 17,429 | 15,089 | 16,458 | |||||||||||||||||||||||||||||
Expected return on plan assets | (21,985 | ) | (19,952 | ) | (21,153 | ) | ||||||||||||||||||||||||||
Settlement and curtailment of benefits | — | (28 | ) | — | ||||||||||||||||||||||||||||
Amortization of unrecognized prior service benefit | 475 | (87 | ) | (1,238 | ) | |||||||||||||||||||||||||||
Amortization of unrecognized net loss | 8,428 | 14,280 | 12,177 | |||||||||||||||||||||||||||||
U.S. net pension expense | $ | 27,328 | $ | 32,657 | $ | 27,466 | ||||||||||||||||||||||||||
The estimated prior service cost and the estimated net loss for the U.S. defined benefit pension plans that will be amortized from accumulated other comprehensive loss into pension expense in 2015 is $0.5 million and $9.0 million, respectively. We amortize estimated prior service benefits and estimated net losses over the remaining expected service period. | ||||||||||||||||||||||||||||||||
The following summarizes the net pension (liability) asset for U.S. plans: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Plan assets, at fair value | $ | 426,784 | $ | 410,462 | ||||||||||||||||||||||||||||
Benefit Obligation | (447,552 | ) | (405,812 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (20,768 | ) | $ | 4,650 | |||||||||||||||||||||||||||
The following summarizes amounts recognized in the balance sheet for U.S. plans: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 14,355 | ||||||||||||||||||||||||||||
Current liabilities | (260 | ) | (500 | ) | ||||||||||||||||||||||||||||
Noncurrent liabilities | (20,508 | ) | (9,205 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (20,768 | ) | $ | 4,650 | |||||||||||||||||||||||||||
The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 405,812 | $ | 423,547 | ||||||||||||||||||||||||||||
Service cost | 22,981 | 23,355 | ||||||||||||||||||||||||||||||
Interest cost | 17,429 | 15,089 | ||||||||||||||||||||||||||||||
Plan amendments | 2,387 | — | ||||||||||||||||||||||||||||||
Actuarial loss (gain)(1) | 32,425 | (22,356 | ) | |||||||||||||||||||||||||||||
Benefits paid | (33,482 | ) | (33,823 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 447,552 | $ | 405,812 | ||||||||||||||||||||||||||||
Accumulated benefit obligations at December 31 | $ | 447,552 | $ | 405,812 | ||||||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | The 2014 actuarial loss primarily reflects the impact of decrease in the discount rate. | |||||||||||||||||||||||||||||||
The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): | ||||||||||||||||||||||||||||||||
2015 | $ | 36.6 | ||||||||||||||||||||||||||||||
2016 | 37.4 | |||||||||||||||||||||||||||||||
2017 | 37.9 | |||||||||||||||||||||||||||||||
2018 | 39.9 | |||||||||||||||||||||||||||||||
2019 | 40.5 | |||||||||||||||||||||||||||||||
2020-2024 | 215.8 | |||||||||||||||||||||||||||||||
The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | (55,110 | ) | $ | (90,270 | ) | $ | (98,745 | ) | |||||||||||||||||||||||
Amortization of net loss | 5,277 | 8,919 | 7,605 | |||||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 297 | (54 | ) | (773 | ) | |||||||||||||||||||||||||||
Net (loss) gain arising during the year | (17,367 | ) | 26,312 | 1,643 | ||||||||||||||||||||||||||||
Settlement gain | — | (17 | ) | — | ||||||||||||||||||||||||||||
Balance — December 31 | $ | (66,903 | ) | $ | (55,110 | ) | $ | (90,270 | ) | |||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net loss | $ | (64,970 | ) | $ | (54,391 | ) | ||||||||||||||||||||||||||
Unrecognized prior service cost | (1,933 | ) | (719 | ) | ||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (66,903 | ) | $ | (55,110 | ) | ||||||||||||||||||||||||||
The following is a reconciliation of the U.S. defined benefit pension plans’ assets: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 410,462 | $ | 380,342 | ||||||||||||||||||||||||||||
Return on plan assets | 29,058 | 39,749 | ||||||||||||||||||||||||||||||
Company contributions | 20,746 | 24,194 | ||||||||||||||||||||||||||||||
Benefits paid | (33,482 | ) | (33,823 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 426,784 | $ | 410,462 | ||||||||||||||||||||||||||||
We contributed $20.7 million and $24.2 million to the U.S. defined benefit pension plans during 2014 and 2013, respectively. These payments exceeded the minimum funding requirements mandated by the U.S. Department of Labor rules. Our estimated contribution in 2015 is expected to be approximately $20 million, excluding direct benefits paid. | ||||||||||||||||||||||||||||||||
All U.S. defined benefit plan assets are held by the qualified plan. The asset allocations for the qualified plan at the end of 2014 and 2013 by asset category, are as follows: | ||||||||||||||||||||||||||||||||
Target Allocation | Percentage of Actual Plan Assets at December 31, | |||||||||||||||||||||||||||||||
at December 31, | ||||||||||||||||||||||||||||||||
Asset category | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
U.S. Large Cap | 19 | % | 19 | % | 19 | % | 20 | % | ||||||||||||||||||||||||
U.S. Small Cap | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||||||||
International Large Cap | 14 | % | 14 | % | 14 | % | 14 | % | ||||||||||||||||||||||||
Emerging Markets | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||||||||
World Equity | 8 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||||||||
Equity securities | 50 | % | 50 | % | 50 | % | 51 | % | ||||||||||||||||||||||||
Liability Driven Investment | 40 | % | 40 | % | 40 | % | 39 | % | ||||||||||||||||||||||||
Long-Term Government / Credit | 10 | % | 10 | % | 10 | % | 10 | % | ||||||||||||||||||||||||
Fixed income | 50 | % | 50 | % | 50 | % | 49 | % | ||||||||||||||||||||||||
Other(1) | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | Less than 1% of holdings are in the Other category in 2014 and 2013. | |||||||||||||||||||||||||||||||
None of our common stock is directly held by our qualified plan. Our investment strategy is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan. We preserve capital through diversified investments in high quality securities. Our current allocation target is to invest approximately 50% of plan assets in equity securities and 50% in fixed income securities. Within each investment category, assets are allocated to various investment strategies. A professional money management firm manages our assets, and we engage a consultant to assist in evaluating these activities. We periodically review the allocation target, generally in conjunction with an asset and liability study and in consideration of our future cash flow needs. We regularly rebalance the actual allocation to our target investment allocation. | ||||||||||||||||||||||||||||||||
Plan assets are invested in commingled funds and the individual funds are actively managed with the intent to outperform specified benchmarks. Our "Pension and Investment Committee" is responsible for setting the investment strategy and the target asset allocation, as well as selecting individual funds. As the qualified plan approached fully funded status, we implemented a Liability-Driven Investing ("LDI") strategy, which more closely aligns the duration of the assets with the duration of the liabilities. The LDI strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby protecting the funded status of the plan. | ||||||||||||||||||||||||||||||||
The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. Prior period information has been updated to conform to current year presentation. The fair values of our U.S. defined benefit plan assets were: | ||||||||||||||||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||||||||
Hierarchical Levels | Hierarchical Levels | |||||||||||||||||||||||||||||||
Total | I | II | III | Total | I | II | III | |||||||||||||||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40 | $ | 40 | $ | — | $ | — | $ | 2,860 | $ | 2,860 | $ | — | $ | — | ||||||||||||||||
Commingled Funds: | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. Large Cap(a) | 82,355 | — | 82,355 | — | 81,004 | — | 81,004 | — | ||||||||||||||||||||||||
U.S. Small Cap(b) | 17,422 | — | 17,422 | — | 17,136 | — | 17,136 | — | ||||||||||||||||||||||||
International Large Cap(c) | 56,716 | — | 56,716 | — | 58,675 | — | 58,675 | — | ||||||||||||||||||||||||
Emerging Markets(d) | 19,175 | — | 19,175 | — | 19,772 | — | 19,772 | — | ||||||||||||||||||||||||
World Equity(e) | 34,384 | — | 34,384 | — | 34,069 | — | 34,069 | — | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Liability Driven Investment (f) | 172,758 | — | 172,758 | — | 157,638 | — | 157,638 | — | ||||||||||||||||||||||||
Long-Term Government/Credit(g) | 43,934 | — | 43,934 | — | 39,308 | — | 39,308 | — | ||||||||||||||||||||||||
$ | 426,784 | $ | 40 | $ | 426,744 | $ | — | $ | 410,462 | $ | 2,860 | $ | 407,602 | $ | — | |||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | U.S. Large Cap funds seek to outperform the Russell 1000 (R) Index with investments in large and medium capitalization U.S. companies represented in the Russell 1000 (R) Index, which is composed of the largest 1,000 U.S. equities as determined by market capitalization. | |||||||||||||||||||||||||||||||
(b) | U.S. Small Cap funds seek to outperform the Russell 2000 (R) Index with investments in medium and small capitalization U.S. companies represented in the Russell 2000 (R) Index, which is composed of the smallest 2,000 U.S. equities as determined by market capitalization. | |||||||||||||||||||||||||||||||
(c) | International Large Cap funds seek to outperform the MSCI Europe, Australia, and Far East Index with investments in most of the developed nations of the world so as to maintain a high degree of diversification among countries and currencies. | |||||||||||||||||||||||||||||||
(d) | Emerging Markets funds represent a diversified portfolio that seeks high, long-term returns comparable to investments in emerging markets by investing in stocks from newly developed emerging market economies. | |||||||||||||||||||||||||||||||
(e) | World Equity funds seek to outperform the Russell Developed Large Cap Index Net over a full market cycle. The fund's goal is to provide a favorable total return relative to the benchmark, primarily through long-term capital appreciation. | |||||||||||||||||||||||||||||||
(f) | LDI funds seek to outperform the Barclays-Russell LDI Index by investing in high quality, mostly corporate bonds and fixed income securities that closely match those found in discount curves used to value the plan's liabilities. | |||||||||||||||||||||||||||||||
(g) | Long-Term Government/Credit funds seek to outperform the Barclays Capital U.S. Long-Term Government/Credit Index by generating excess return through a variety of diversified strategies in securities with longer durations, such as sector rotation, security selection and tactical use of high-yield bonds. | |||||||||||||||||||||||||||||||
Non-U.S. Defined Benefit Plans | ||||||||||||||||||||||||||||||||
We maintain defined benefit pension plans, which cover some or all of our employees in the following countries: Austria, France, Germany, India, Indonesia, Italy, Japan, Mexico, The Netherlands, Sweden and the U.K. The assets in the U.K. (two plans) and The Netherlands (one plan) represent 97% of the total non-U.S. plan assets ("non-U.S. assets"). Details of other countries’ plan assets have not been provided due to immateriality. | ||||||||||||||||||||||||||||||||
The following are assumptions related to the non-U.S. defined benefit pension plans: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligations: | ||||||||||||||||||||||||||||||||
Discount rate | 3.4 | % | 4.22 | % | 4.16 | % | ||||||||||||||||||||||||||
Rate of increase in compensation levels | 3.95 | 3.83 | 3.84 | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine net pension expense: | ||||||||||||||||||||||||||||||||
Long-term rate of return on assets | 5.51 | % | 5.49 | % | 5.78 | % | ||||||||||||||||||||||||||
Discount rate | 4.22 | 4.16 | 5.09 | |||||||||||||||||||||||||||||
Rate of increase in compensation levels | 3.83 | 3.84 | 3.56 | |||||||||||||||||||||||||||||
At December 31, 2014 as compared with December 31, 2013, we decreased our average discount rate for non-U.S. plans from 4.22% to 3.40% based on analysis of bonds and other publicly-traded instruments, by country, which had lower yields due to market conditions. To determine 2014 pension expense, we increased our average expected rate of return on plan assets slightly from 5.49% at December 31, 2013 to 5.51% at December 31, 2014, primarily due to asset returns greater than expected during the year. As the expected rate of return on plan assets is long-term in nature, short-term market changes do not significantly impact the rate. | ||||||||||||||||||||||||||||||||
Many of our non-U.S. defined benefit plans are unfunded, as permitted by local regulation. The expected long-term rate of return on assets for funded plans was determined by assessing the rates of return for each asset class and is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. We work with our actuaries to determine the reasonableness of our long-term rate of return assumptions by looking at several factors including historical returns, expected future returns, asset allocation, risks by asset class and other items. | ||||||||||||||||||||||||||||||||
Net pension expense for non-U.S. defined benefit pension plans was: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 6,857 | $ | 6,819 | $ | 4,681 | ||||||||||||||||||||||||||
Interest cost | 14,576 | 13,486 | 13,724 | |||||||||||||||||||||||||||||
Expected return on plan assets | (10,581 | ) | (9,200 | ) | (8,542 | ) | ||||||||||||||||||||||||||
Amortization of unrecognized net loss | 6,962 | 6,650 | 4,020 | |||||||||||||||||||||||||||||
Settlement and other | 314 | 134 | 43 | |||||||||||||||||||||||||||||
Non-U.S. net pension expense | $ | 18,128 | $ | 17,889 | $ | 13,926 | ||||||||||||||||||||||||||
The estimated prior service cost and an estimated net loss for the non-U.S. defined benefit pension plans that will be amortized from accumulated other comprehensive loss into pension expense in 2015 is $0.1 million an $5.3 million, respectively. We amortize estimated net losses over the remaining expected service period or over the remaining expected lifetime of inactive participants for plans with only inactive participants. | ||||||||||||||||||||||||||||||||
The following summarizes the net pension liability for non-U.S. plans: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Plan assets, at fair value | $ | 215,360 | $ | 195,042 | ||||||||||||||||||||||||||||
Benefit Obligation | (361,351 | ) | (363,425 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (145,991 | ) | $ | (168,383 | ) | ||||||||||||||||||||||||||
The following summarizes amounts recognized in the balance sheet for non-U.S. plans: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
\ | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Noncurrent assets | $ | 5,204 | $ | 52 | ||||||||||||||||||||||||||||
Current liabilities | (7,960 | ) | (9,048 | ) | ||||||||||||||||||||||||||||
Noncurrent liabilities | (143,235 | ) | (159,387 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (145,991 | ) | $ | (168,383 | ) | ||||||||||||||||||||||||||
The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 363,425 | $ | 340,348 | ||||||||||||||||||||||||||||
Service cost | 6,857 | 6,819 | ||||||||||||||||||||||||||||||
Interest cost | 14,576 | 13,486 | ||||||||||||||||||||||||||||||
Employee contributions | 272 | 267 | ||||||||||||||||||||||||||||||
Plan amendments and other | 162 | 1,573 | ||||||||||||||||||||||||||||||
Actuarial loss(1) | 28,430 | 8,664 | ||||||||||||||||||||||||||||||
Net benefits and expenses paid | (17,985 | ) | (16,491 | ) | ||||||||||||||||||||||||||||
Currency translation impact(2) | (34,386 | ) | 8,759 | |||||||||||||||||||||||||||||
Balance — December 31 | $ | 361,351 | $ | 363,425 | ||||||||||||||||||||||||||||
Accumulated benefit obligations at December 31 | $ | 335,282 | $ | 340,223 | ||||||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | The 2014 actuarial losses primarily reflect the impact of decrease in the discount rates in all countries except for Venezuela. | |||||||||||||||||||||||||||||||
-2 | The currency translation impact reflects the strengthening of the U.S. dollar against our significant currencies, primarily the Euro and British pound. | |||||||||||||||||||||||||||||||
The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): | ||||||||||||||||||||||||||||||||
2015 | $ | 15.2 | ||||||||||||||||||||||||||||||
2016 | 13.4 | |||||||||||||||||||||||||||||||
2017 | 13.7 | |||||||||||||||||||||||||||||||
2018 | 14.7 | |||||||||||||||||||||||||||||||
2019 | 16.3 | |||||||||||||||||||||||||||||||
2020-2024 | 92.1 | |||||||||||||||||||||||||||||||
The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | (78,863 | ) | $ | (76,197 | ) | $ | (43,110 | ) | |||||||||||||||||||||||
Amortization of net loss | 5,262 | 4,999 | 2,985 | |||||||||||||||||||||||||||||
Net loss arising during the year | (3,709 | ) | (6,091 | ) | (33,692 | ) | ||||||||||||||||||||||||||
Settlement loss | 216 | 93 | 100 | |||||||||||||||||||||||||||||
Prior service benefit arising during the year | 141 | 137 | 32 | |||||||||||||||||||||||||||||
Currency translation impact and other | 7,355 | (1,804 | ) | (2,512 | ) | |||||||||||||||||||||||||||
Balance — December 31 | $ | (69,598 | ) | $ | (78,863 | ) | $ | (76,197 | ) | |||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net loss | $ | (69,161 | ) | $ | (77,379 | ) | ||||||||||||||||||||||||||
Unrecognized prior service cost | (437 | ) | (1,484 | ) | ||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (69,598 | ) | $ | (78,863 | ) | ||||||||||||||||||||||||||
The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 195,042 | $ | 173,017 | ||||||||||||||||||||||||||||
Return on plan assets | 30,246 | 10,480 | ||||||||||||||||||||||||||||||
Employee contributions | 272 | 267 | ||||||||||||||||||||||||||||||
Company contributions | 22,740 | 22,695 | ||||||||||||||||||||||||||||||
Currency translation impact and other | (14,955 | ) | 5,074 | |||||||||||||||||||||||||||||
Net benefits and expenses paid | (17,985 | ) | (16,491 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 215,360 | $ | 195,042 | ||||||||||||||||||||||||||||
Our contributions to non-U.S. defined benefit pension plans in 2015 are expected to be approximately $12 million, excluding direct benefits paid. | ||||||||||||||||||||||||||||||||
The asset allocations for the non-U.S. defined benefit pension plans at the end of 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Target Allocation at | Percentage of Actual Plan | |||||||||||||||||||||||||||||||
December 31, | Assets at December 31, | |||||||||||||||||||||||||||||||
Asset category | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
North American Companies | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||||||||||
U.K. Companies | 9 | % | 10 | % | 9 | % | 10 | % | ||||||||||||||||||||||||
European Companies | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||||||||
Asian Pacific Companies | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||||||||||
Global Equity | 8 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||||||||
Equity securities | 27 | % | 28 | % | 27 | % | 28 | % | ||||||||||||||||||||||||
U.K. Government Gilt Index | 30 | % | 28 | % | 30 | % | 28 | % | ||||||||||||||||||||||||
U.K. Corporate Bond Index | 22 | % | 21 | % | 22 | % | 21 | % | ||||||||||||||||||||||||
Global Fixed Income Bond | 19 | % | 20 | % | 19 | % | 20 | % | ||||||||||||||||||||||||
Fixed income | 71 | % | 69 | % | 71 | % | 69 | % | ||||||||||||||||||||||||
Other | 2 | % | 3 | % | 2 | % | 3 | % | ||||||||||||||||||||||||
None of our common stock is held directly by these plans. In all cases, our investment strategy for these plans is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan and the legal requirements of the particular country. We preserve capital through diversified investments in high quality securities. | ||||||||||||||||||||||||||||||||
Asset allocation differs by plan based upon the plan’s Benefit Obligation to participants, as well as the results of asset and liability studies that are conducted for each plan and in consideration of our future cash flow needs. Professional money management firms manage plan assets and we engage consultants in the U.K. and The Netherlands to assist in evaluation of these activities. The assets of the U.K. plans are overseen by a group of Trustees who review the investment strategy, asset allocation and fund selection. These assets are passively managed as they are invested in index funds that attempt to match the performance of the specified benchmark index. The assets of The Netherlands plan are independently managed by an outside service provider. | ||||||||||||||||||||||||||||||||
The fair values of the non-U.S. assets were: | ||||||||||||||||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||||||||
Hierarchical Levels | Hierarchical Levels | |||||||||||||||||||||||||||||||
Total | I | II | III | Total | I | II | III | |||||||||||||||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Cash | $ | 24 | $ | 24 | $ | — | $ | — | $ | 189 | $ | 189 | $ | — | $ | — | ||||||||||||||||
Commingled Funds: | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
North American Companies(a) | 7,155 | — | 7,155 | — | 6,459 | — | 6,459 | — | ||||||||||||||||||||||||
U.K. Companies(b) | 18,829 | — | 18,829 | — | 19,448 | — | 19,448 | — | ||||||||||||||||||||||||
European Companies (c) | 8,018 | — | 8,018 | — | 8,060 | — | 8,060 | — | ||||||||||||||||||||||||
Asian Pacific Companies(d) | 5,367 | — | 5,367 | — | 5,613 | — | 5,613 | — | ||||||||||||||||||||||||
Global Equity(e) | 17,120 | — | 17,120 | — | 16,046 | — | 16,046 | — | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
U.K. Government Gilt Index(f) | 65,161 | — | 65,161 | — | 55,078 | — | 55,078 | — | ||||||||||||||||||||||||
U.K. Corporate Bond Index(g) | 47,683 | — | 47,683 | — | 40,039 | — | 40,039 | — | ||||||||||||||||||||||||
Global Fixed Income Bond(h) | 40,820 | — | 40,820 | — | 38,335 | — | 38,335 | — | ||||||||||||||||||||||||
Other(i) | 5,183 | — | — | 5,183 | 5,775 | — | — | 5,775 | ||||||||||||||||||||||||
$ | 215,360 | $ | 24 | $ | 210,153 | $ | 5,183 | $ | 195,042 | $ | 189 | $ | 189,078 | $ | 5,775 | |||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | North American Companies represents U.S. and Canadian large cap equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). | |||||||||||||||||||||||||||||||
(b) | U.K. Companies represents a U.K. equity index fund, which is passively managed and tracks the FTSE All-Share Index. | |||||||||||||||||||||||||||||||
(c) | European companies represents a European equity index fund, which is passively managed and tracks the FTSE All-World Developed Europe Ex-U.K. Index. | |||||||||||||||||||||||||||||||
(d) | Asian Pacific Companies represents Japanese and Pacific Rim equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World Japan Index and FTSE All-World Developed Asia Pacific Ex-Japan Index). | |||||||||||||||||||||||||||||||
(e) | Global Equity represents actively managed, global equity funds taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. | |||||||||||||||||||||||||||||||
(f) | U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed and track the respective benchmarks (FTSE U.K. Gilt Index-Linked Over 5 Years Index, FTSE U.K. Gilt Over 15 Years Index and FTSE U.K. Gilt Index-Linked Over 25 Years Index). | |||||||||||||||||||||||||||||||
(g) | U.K. Corporate Bond Index represents U.K. corporate bond investments, which are passively managed and track the iBoxx Over 15 years £ Non-Gilt Index. | |||||||||||||||||||||||||||||||
(h) | Global Fixed Income Bond represents mostly European fixed income investment funds that are actively managed, diversified and primarily invested in traditional government bonds, high-quality corporate bonds, asset backed securities, emerging market debt and high yield corporate bonds. | |||||||||||||||||||||||||||||||
(i) | Includes assets held by plans outside the U.K. and The Netherlands. Details, including Level III rollforward details, have not been provided due to immateriality. | |||||||||||||||||||||||||||||||
Defined Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ||||||||||||||||||||||||||||||||
The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. The increase in 2014 is primarily due to inclusion of the U.S. Qualified Plan which has a net liability position at December 31, 2014. | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Benefit Obligation | $ | 619,756 | $ | 367,460 | ||||||||||||||||||||||||||||
Accumulated benefit obligation | 600,017 | 346,684 | ||||||||||||||||||||||||||||||
Fair value of plan assets | 449,141 | 189,827 | ||||||||||||||||||||||||||||||
Postretirement Medical Plans | ||||||||||||||||||||||||||||||||
We sponsor several defined benefit postretirement medical plans covering certain current retirees and a limited number of future retirees in the U.S. These plans provide for medical and dental benefits and are administered through insurance companies and health maintenance organizations. The plans include participant contributions, deductibles, co-insurance provisions and other limitations and are integrated with Medicare and other group plans. We fund the plans as benefits and health maintenance organization premiums are paid, such that the plans hold no assets in any period presented. Accordingly, we have no investment strategy or targeted allocations for plan assets. Benefits under our postretirement medical plans are not available to new employees or most existing employees. | ||||||||||||||||||||||||||||||||
The following are assumptions related to postretirement benefits: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligation: | ||||||||||||||||||||||||||||||||
Discount rate | 3.75 | % | 4 | % | 3.25 | % | ||||||||||||||||||||||||||
Weighted average assumptions used to determine net expense: | ||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 3.25 | % | 4.25 | % | ||||||||||||||||||||||||||
The assumed ranges for the annual rates of increase in medical costs used to determine net expense were 7.5% for both 2014 and 2013 and 8.0% for 2012, with a gradual decrease to 5.0% for 2025 and future years. | ||||||||||||||||||||||||||||||||
Net postretirement benefit income for postretirement medical plans was: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 6 | $ | 11 | ||||||||||||||||||||||||||
Interest cost | 1,200 | 1,066 | 1,462 | |||||||||||||||||||||||||||||
Amortization of unrecognized prior service benefit | — | — | (41 | ) | ||||||||||||||||||||||||||||
Amortization of unrecognized net gain | (1,220 | ) | (1,280 | ) | (1,542 | ) | ||||||||||||||||||||||||||
Net postretirement benefit income | $ | (17 | ) | $ | (208 | ) | $ | (110 | ) | |||||||||||||||||||||||
The estimated prior service cost expected to be amortized from accumulated other comprehensive loss into U.S. pension expense in 2015 is $0.2 million. The estimated net gain for postretirement medical plans that will be amortized from accumulated other comprehensive loss into U.S. expense in 2015 is $0.6 million. | ||||||||||||||||||||||||||||||||
The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Postretirement Benefit Obligation | $ | 33,019 | $ | 31,477 | ||||||||||||||||||||||||||||
Funded status | $ | (33,019 | ) | $ | (31,477 | ) | ||||||||||||||||||||||||||
The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Current liabilities | $ | (3,799 | ) | $ | (4,013 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (29,220 | ) | (27,464 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (33,019 | ) | $ | (31,477 | ) | ||||||||||||||||||||||||||
The following is a reconciliation of the postretirement Benefit Obligation: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 31,477 | $ | 34,967 | ||||||||||||||||||||||||||||
Service cost | 3 | 6 | ||||||||||||||||||||||||||||||
Interest cost | 1,200 | 1,066 | ||||||||||||||||||||||||||||||
Employee contributions | 901 | 2,151 | ||||||||||||||||||||||||||||||
Medicare subsidies receivable | 453 | 789 | ||||||||||||||||||||||||||||||
Actuarial loss (gain) | 1,779 | (857 | ) | |||||||||||||||||||||||||||||
Plan Amendments | 2,339 | — | ||||||||||||||||||||||||||||||
Net benefits and expenses paid | (5,133 | ) | (6,645 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 33,019 | $ | 31,477 | ||||||||||||||||||||||||||||
The following presents expected benefit payments for future periods (amounts in millions): | ||||||||||||||||||||||||||||||||
Expected | Medicare | |||||||||||||||||||||||||||||||
Payments | Subsidy | |||||||||||||||||||||||||||||||
2015 | $ | 3.9 | $ | 0.1 | ||||||||||||||||||||||||||||
2016 | 3.7 | 0.1 | ||||||||||||||||||||||||||||||
2017 | 3.5 | 0.1 | ||||||||||||||||||||||||||||||
2018 | 3.3 | 0.1 | ||||||||||||||||||||||||||||||
2019 | 3 | 0.1 | ||||||||||||||||||||||||||||||
2020-2024 | 11.2 | 0.5 | ||||||||||||||||||||||||||||||
The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 4,445 | $ | 4,710 | $ | 7,081 | ||||||||||||||||||||||||||
Amortization of net gain | (764 | ) | (800 | ) | (963 | ) | ||||||||||||||||||||||||||
Amortization of prior service cost | (1,464 | ) | — | (26 | ) | |||||||||||||||||||||||||||
Net gain (loss) arising during the year | (1,114 | ) | 535 | (1,382 | ) | |||||||||||||||||||||||||||
Balance — December 31 | $ | 1,103 | $ | 4,445 | $ | 4,710 | ||||||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net gain | $ | 2,788 | $ | 4,445 | ||||||||||||||||||||||||||||
Unrecognized prior service cost | (1,685 | ) | — | |||||||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | $ | 1,103 | $ | 4,445 | ||||||||||||||||||||||||||||
We made contributions to the postretirement medical plans to pay benefits of $3.8 million in 2014, $3.7 million in 2013 and $3.8 million in 2012. Because the postretirement medical plans are unfunded, we make contributions as the covered individuals’ claims are approved for payment. Accordingly, contributions during any period are directly correlated to the benefits paid. | ||||||||||||||||||||||||||||||||
Assumed health care cost trend rates have an effect on the amounts reported for the postretirement medical plans. A one-percentage point change in assumed health care cost trend rates would have the following effect on the 2014 reported amounts (in thousands): | ||||||||||||||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||||||||||||||
Effect on postretirement Benefit Obligation | $ | 245 | $ | (248 | ) | |||||||||||||||||||||||||||
Effect on service cost plus interest cost | 6 | (7 | ) | |||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||
We sponsor several defined contribution plans covering substantially all U.S. and Canadian employees and certain other non-U.S. employees. Employees may contribute to these plans, and these contributions are matched in varying amounts by us, including opportunities for discretionary matching contributions by us. Defined contribution plan expense was $20.4 million in 2014, $20.0 million in 2013 and $19.3 million in 2012. | ||||||||||||||||||||||||||||||||
Effective January 1, 2013, our common stock was no longer an investment option. Prior to 2013, participants in the U.S. defined contribution plan had the option to invest in our common stock, therefore, the plan assets prior to 2013 included such holdings of our common stock. Participants with existing holdings of our stock on the effective date are able to maintain their holdings until such time as they are reallocated within the plan by the participant or taken as a distribution by the participant. |
Legal_Matters_and_Contingencie
Legal Matters and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | LEGAL MATTERS AND CONTINGENCIES |
Asbestos-Related Claims | |
We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. While the overall number of asbestos-related claims has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim will not further increase. Asbestos-containing materials incorporated into any such products were encapsulated and used as internal components of process equipment, and we do not believe that any significant emission of asbestos fibers occurred during the use of this equipment. | |
Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers or other companies for our estimated recovery, to the extent we believe that the amounts of recovery are probable and not otherwise in dispute. While unfavorable rulings, judgments or settlement terms regarding these claims could have a material adverse impact on our business, financial condition, results of operations and cash flows, we currently believe the likelihood is remote. | |
Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to then existing indemnities and insurance coverage. | |
United Nations Oil-for-Food Program | |
In mid-2006, French authorities began an investigation of over 170 French companies, of which one of our French subsidiaries was included, concerning suspected inappropriate activities conducted in connection with the United Nations Oil for Food Program. As previously disclosed, the French investigation of our French subsidiary was formally opened in the first quarter of 2010, and our French subsidiary filed a formal response with the French court. In July 2012, the French court ruled against our procedural motions to challenge the constitutionality of the charges and quash the indictment. The French Court is currently proceeding through a formal review process with hearings expected to occur in March-April 2015. We currently do not expect to incur additional case resolution costs of a material amount in this matter. However, if the French authorities ultimately take enforcement action against our French subsidiary regarding its investigation, we may be subject to monetary and non-monetary penalties, which we currently do not believe will have a material adverse financial impact on our company. | |
In addition to the governmental investigation referenced above, on June 27, 2008, the Republic of Iraq filed a civil suit in federal court in New York against 93 participants in the United Nations Oil-for-Food Program, including us and our two foreign subsidiaries that participated in the program. There have been no material developments in this case since it was initially filed. We intend to vigorously contest the suit, and we believe that we have valid defenses to the claims asserted. While we cannot predict the outcome of the suit at the present time, we do not currently believe the resolution of this suit will have a material adverse financial impact on our company. | |
Other | |
We are currently involved as a potentially responsible party at five former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged "fair share" allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our financial exposure for existing disposal sites will not be materially in excess of accrued reserves. | |
We are also a defendant in a number of other lawsuits, including product liability claims, that are insured, subject to the applicable deductibles, arising in the ordinary course of business, and we are also involved in other uninsured routine litigation incidental to our business. We currently believe none of such litigation, either individually or in the aggregate, is material to our business, operations or overall financial condition. However, litigation is inherently unpredictable, and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on our financial position, results of operations or cash flows for the reporting period in which any such resolution or disposition occurs. | |
Although none of the aforementioned potential liabilities can be quantified with absolute certainty except as otherwise indicated above, we have established reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate. |
Warranty_Reserve
Warranty Reserve | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||
Warranty Reserve | WARRANTY RESERVE | |||||||||||
We have recorded reserves for product warranty claims that are included in current liabilities. The following is a summary of the activity in the warranty reserve: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Balance — January 1 | $ | 37,828 | $ | 35,400 | $ | 38,033 | ||||||
Accruals for warranty expense, net of adjustments | 24,909 | 33,504 | 28,851 | |||||||||
Settlements made | (31,642 | ) | (31,076 | ) | (31,484 | ) | ||||||
Balance — December 31 | $ | 31,095 | $ | 37,828 | $ | 35,400 | ||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | SHAREHOLDERS’ EQUITY |
Stock Split – On May 23, 2013, our certificate of incorporation was amended to increase the number of authorized shares of common stock from 120.0 million to 305.0 million and enable a three-for-one stock split approved by the Board of Directors on February 7, 2013 in the form of a 200% common stock dividend. The record date for the stock split was June 7, 2013, and additional shares were distributed on June 21, 2013. As a result of the three-for-one stock split, 117,861,772 shares of common stock were issued. The par value of the common stock remained unchanged at $1.25 per share, which required $147.3 million to be retrospectively reclassified from capital in excess of par value to common shares all within the shareholders' equity section of our consolidated balance sheets. Shareholders' equity and all share data, including treasury shares and stock-based compensation award shares, and per share data presented herein have been retrospectively adjusted to reflect the impact of the increase in authorized shares and the stock split, as appropriate. | |
Dividends - On February 16, 2015, our Board of Directors authorized an increase in the payment of quarterly dividends on our common stock from $0.16 per share to $0.18 per share payable beginning on April 10, 2015. On February 17, 2014, our Board of Directors authorized an increase in the payment of quarterly dividends on our common stock from $0.14 per share to $0.16 per share payable beginning on April 11, 2014. On February 19, 2013, our Board of Directors authorized an increase in the payment of quarterly dividends on our common stock from $0.12 per share to $0.14 per share payable beginning on April 12, 2013. Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared in its discretion dependent on its assessment of our financial situation and business outlook at the applicable time. | |
Share Repurchase Program – On May 31, 2012, we announced that our Board of Directors endorsed a capital structure strategy that expanded our share repurchase program to $1.0 billion. On February 19, 2013, our Board of Directors approved a $750.0 million share repurchase authorization. On November 13, 2014, our Board of Directors approved a $500.0 million share repurchase authorization, which included approximately $175 million of remaining capacity under the prior $750.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at anytime without notice. | |
As a part of the $1.0 billion share repurchase program, on June 14, 2012, we entered into an accelerated share repurchase program (“ASR Program”) with J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, N.A., London Branch, under which we agreed to repurchase an aggregate of $300.0 million of our common stock. The total 7,243,191 shares repurchased under the ASR Program were based on the volume-weighted average price of $42.31, which was our average common stock price during the repurchase period, less an agreed upon discount. | |
We repurchased 3,420,656, 8,142,723 and 18,638,340 shares for $246.5 million, $458.3 million and $771.9 million during 2014, 2013 and 2012, respectively. As of December 31, 2014, we have $464.4 million of remaining capacity under our current share repurchase program. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
The provision for income taxes consists of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Current: | ||||||||||||
U.S. federal | $ | 62,301 | $ | 61,670 | $ | 73,444 | ||||||
Non-U.S. | 123,052 | 112,471 | 101,166 | |||||||||
State and local | 7,422 | 7,537 | 3,454 | |||||||||
Total current | 192,775 | 181,678 | 178,064 | |||||||||
Deferred: | ||||||||||||
U.S. federal | 1,270 | 8,771 | (823 | ) | ||||||||
Non-U.S. | 13,016 | 13,120 | (17,268 | ) | ||||||||
State and local | 1,244 | 1,132 | 793 | |||||||||
Total deferred | 15,530 | 23,023 | (17,298 | ) | ||||||||
Total provision | $ | 208,305 | $ | 204,701 | $ | 160,766 | ||||||
The expected cash payments for the current income tax expense for 2014, 2013 and 2012 were reduced by $8.6 million, $10.1 million and $11.0 million, respectively, as a result of tax deductions related to the vesting of restricted stock and the exercise of non-qualified employee stock options. The income tax benefit resulting from these stock-based compensation plans has increased capital in excess of par value. | ||||||||||||
The provision for income taxes differs from the statutory corporate rate due to the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in millions) | ||||||||||||
Statutory federal income tax at 35% | $ | 256.6 | $ | 242.6 | $ | 214 | ||||||
Foreign impact, net | (58.7 | ) | (40.7 | ) | (50.6 | ) | ||||||
State and local income taxes, net | 8.7 | 8.7 | 4.2 | |||||||||
Other | 1.7 | (5.9 | ) | (6.8 | ) | |||||||
Total | $ | 208.3 | $ | 204.7 | $ | 160.8 | ||||||
Effective tax rate | 28.4 | % | 29.5 | % | 26.3 | % | ||||||
The 2014, 2013 and 2012 effective tax rates differed from the federal statutory rate of 35% primarily due to the net impact of foreign operations, which included the impacts of lower foreign tax rates and changes in our reserves established for uncertain tax positions. | ||||||||||||
We assert permanent reinvestment on the majority of invested capital and unremitted foreign earnings in our foreign subsidiaries. However, we do not assert permanent reinvestment on a limited number of foreign subsidiaries where future distributions may occur. The cumulative amount of undistributed earnings considered permanently reinvested is $1.7 billion. Should these permanently reinvested earnings be repatriated in a future period in the form of dividends or otherwise, our provision for income taxes may increase materially in that period. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested differences is not practicable due to the complexities with its hypothetical calculation. During each of the three years reported in the period ended December 31, 2014, we have not recognized any net deferred tax assets attributable to excess foreign tax credits on unremitted earnings or foreign currency translation adjustments in our foreign subsidiaries with excess financial reporting basis. | ||||||||||||
For those subsidiaries where permanent reinvestment was not asserted, we had cash and deemed dividend distributions that resulted in the recognition of $6.9 million of income tax benefit during 2014 and $5.0 million and $2.3 million of income tax expense in 2013 and 2012, respectively. As we have not recorded a benefit for the excess foreign tax credits associated with deemed repatriation of unremitted earnings, these credits are not available to offset the liability associated with these dividends. | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities were: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets related to: | ||||||||||||
Retirement benefits | $ | 35,501 | $ | 25,798 | ||||||||
Net operating loss carryforwards | 23,483 | 23,943 | ||||||||||
Compensation accruals | 56,903 | 54,518 | ||||||||||
Inventories | 51,528 | 56,487 | ||||||||||
Credit carryforwards | 32,039 | 32,384 | ||||||||||
Warranty and accrued liabilities | 13,913 | 20,626 | ||||||||||
Other | 43,603 | 42,809 | ||||||||||
Total deferred tax assets | 256,970 | 256,565 | ||||||||||
Valuation allowances | (15,378 | ) | (18,058 | ) | ||||||||
Net deferred tax assets | 241,592 | 238,507 | ||||||||||
Deferred tax liabilities related to: | ||||||||||||
Property, plant and equipment | (30,077 | ) | (36,191 | ) | ||||||||
Goodwill and intangibles | (150,741 | ) | (138,635 | ) | ||||||||
Other | (2,182 | ) | (9,269 | ) | ||||||||
Total deferred tax liabilities | (183,000 | ) | (184,095 | ) | ||||||||
Deferred tax assets, net | $ | 58,592 | $ | 54,412 | ||||||||
We have $138.0 million of U.S. and foreign net operating loss carryforwards at December 31, 2014. Of this total, $35.2 million are state net operating losses. Net operating losses generated in the U.S., if unused, will expire in 2015 through 2027. The majority of our non-U.S. net operating losses carry forward without expiration. Additionally, we have $29.7 million of foreign tax credit carryforwards at December 31, 2014, expiring in 2020 through 2023 for which a valuation allowance of $0.6 million has been recorded. | ||||||||||||
Earnings before income taxes comprised: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
U.S. | $ | 230,896 | $ | 231,179 | $ | 220,684 | ||||||
Non-U.S. | 502,294 | 461,842 | 390,881 | |||||||||
Total | $ | 733,190 | $ | 693,021 | $ | 611,565 | ||||||
A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance — January 1 | $ | 59.3 | $ | 59.1 | $ | 93.8 | ||||||
Gross amount of increases (decreases) in unrecognized tax benefits resulting from tax positions taken: | ||||||||||||
During a prior year | 2.7 | 3.9 | (1.4 | ) | ||||||||
During the current period | 7.2 | 8.9 | 10.3 | |||||||||
Decreases in unrecognized tax benefits relating to: | ||||||||||||
Settlements with taxing authorities | (3.9 | ) | (0.1 | ) | (21.0 | ) | ||||||
Lapse of the applicable statute of limitations | (10.0 | ) | (11.5 | ) | (23.0 | ) | ||||||
(Decreases) increases in unrecognized tax benefits relating to foreign currency translation adjustments | (3.8 | ) | (1.0 | ) | 0.4 | |||||||
Balance — December 31 | $ | 51.5 | $ | 59.3 | $ | 59.1 | ||||||
The amount of gross unrecognized tax benefits at December 31, 2014 was $66.2 million, which includes $14.7 million of accrued interest and penalties. Of this amount $53.3 million, if recognized, would favorably impact our effective tax rate. During the years ended December 31, 2014, 2013 and 2012 we recognized net interest and penalty income of $1.5 million, $2.4 million and $2.9 million, respectively, in our consolidated statements of income. | ||||||||||||
With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2012, state and local income tax audits for years through 2009 or non-U.S. income tax audits for years through 2007. We are currently under examination for various years in Austria, Germany, India, Italy, Singapore, the U.S. and Venezuela. | ||||||||||||
It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense up to approximately $12 million within the next 12 months. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION | |||||||||||||||||||||||
Our business segments share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively. | ||||||||||||||||||||||||
We conduct our operations through these three business segments based on type of product and how we manage the business: | ||||||||||||||||||||||||
• | EPD for long lead time, custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services; | |||||||||||||||||||||||
• | IPD for engineered and pre-configured industrial pumps and pump systems and related products and services; and | |||||||||||||||||||||||
• | FCD for engineered and industrial valves, control valves, actuators and controls and related services. | |||||||||||||||||||||||
For decision-making purposes, our Chief Executive Officer ("CEO") and other members of senior executive management use financial information generated and reported at the reportable segment level. Our corporate headquarters does not constitute a separate division or business segment. On January 11, 2012, a new unified operational leadership structure was announced resulting in the creation of a Chief Operating Officer position. The creation of this position did not impact how we have defined the above three business segments or our assessment of our CEO as the chief operating decision maker. | ||||||||||||||||||||||||
We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation. | ||||||||||||||||||||||||
The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2014, 2013 and 2012 reconciled to the amounts reported in the consolidated financial statements. | ||||||||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||||||||||
Sales to external customers | $2,396,068 | $ | 872,563 | $ | 1,609,254 | $ | 4,877,885 | $ | — | $ | 4,877,885 | |||||||||||||
Intersegment sales | 67,974 | 60,364 | 6,474 | 134,812 | (134,812 | ) | — | |||||||||||||||||
Segment operating income | 427,080 | 125,292 | 322,845 | 875,217 | (85,385 | ) | 789,832 | |||||||||||||||||
Depreciation and amortization | 48,765 | 17,000 | 35,458 | 101,223 | 9,054 | 110,277 | ||||||||||||||||||
Identifiable assets | 2,249,033 | 774,964 | 1,467,756 | 4,491,753 | 476,267 | 4,968,020 | ||||||||||||||||||
Capital expenditures | 65,762 | 18,510 | 37,496 | 121,768 | 10,851 | 132,619 | ||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||||||||||
Sales to external customers | $2,473,731 | $ | 873,389 | $ | 1,607,499 | $ | 4,954,619 | $ | — | $ | 4,954,619 | |||||||||||||
Intersegment sales | 63,365 | 76,779 | 8,213 | 148,357 | (148,357 | ) | — | |||||||||||||||||
Segment operating income | 423,339 | 115,658 | 307,967 | 846,964 | (86,681 | ) | 760,283 | |||||||||||||||||
Depreciation and amortization | 46,494 | 14,122 | 36,590 | 97,206 | 9,186 | 106,392 | ||||||||||||||||||
Identifiable assets | 2,260,961 | 827,155 | 1,520,085 | 4,608,201 | 428,532 | 5,036,733 | ||||||||||||||||||
Capital expenditures | 75,379 | 17,445 | 40,205 | 133,029 | 6,061 | 139,090 | ||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2012: | ||||||||||||||||||||||||
Sales to external customers | $2,338,527 | $ | 863,941 | $ | 1,548,871 | $ | 4,751,339 | $ | — | $ | 4,751,339 | |||||||||||||
Intersegment sales | 64,621 | 89,957 | 8,206 | 162,784 | (162,784 | ) | — | |||||||||||||||||
Segment operating income | 396,082 | 99,526 | 253,398 | 749,006 | (73,228 | ) | 675,778 | |||||||||||||||||
Depreciation and amortization | 48,007 | 13,408 | 36,418 | 97,833 | 9,393 | 107,226 | ||||||||||||||||||
Identifiable assets | 2,223,791 | 745,276 | 1,485,686 | 4,454,753 | 356,205 | 4,810,958 | ||||||||||||||||||
Capital expenditures | 64,038 | 17,351 | 46,239 | 127,628 | 7,911 | 135,539 | ||||||||||||||||||
Geographic Information — We attribute sales to different geographic areas based on the facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Prior period information has been updated to conform to current year presentation. Sales and long-lived assets by geographic area are as follows: | ||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,724,392 | 35.4 | % | $ | 386,489 | 41.6 | % | ||||||||||||||||
EMA(1) | 1,991,638 | 40.8 | % | 268,334 | 28.9 | % | ||||||||||||||||||
Asia(2) | 571,195 | 11.7 | % | 126,878 | 13.7 | % | ||||||||||||||||||
Other(3) | 590,660 | 12.1 | % | 147,145 | 15.8 | % | ||||||||||||||||||
Consolidated total | $ | 4,877,885 | 100 | % | $ | 928,846 | 100 | % | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,699,053 | 34.3 | % | $ | 374,125 | 41.5 | % | ||||||||||||||||
EMA(1) | 2,102,428 | 42.4 | % | 287,071 | 31.8 | % | ||||||||||||||||||
Asia(2) | 552,383 | 11.2 | % | 124,619 | 13.8 | % | ||||||||||||||||||
Other(3) | 600,755 | 12.1 | % | 115,904 | 12.9 | % | ||||||||||||||||||
Consolidated total | $ | 4,954,619 | 100 | % | $ | 901,719 | 100 | % | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,597,737 | 33.6 | % | $ | 332,667 | 39.6 | % | ||||||||||||||||
EMA(1) | 2,054,809 | 43.2 | % | 273,274 | 32.5 | % | ||||||||||||||||||
Asia(2) | 548,589 | 11.6 | % | 122,911 | 14.6 | % | ||||||||||||||||||
Other(3) | 550,204 | 11.6 | % | 111,257 | 13.3 | % | ||||||||||||||||||
Consolidated total | $ | 4,751,339 | 100 | % | $ | 840,109 | 100 | % | ||||||||||||||||
___________________________________ | ||||||||||||||||||||||||
-1 | "EMA" includes Europe, the Middle East and Africa. No individual country within this group represents 10% or more of consolidated totals for any period presented. | |||||||||||||||||||||||
-2 | "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. | |||||||||||||||||||||||
-3 | "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. | |||||||||||||||||||||||
Net sales to international customers, including export sales from the U.S., represented approximately 68% of total sales in 2014 and 71% for both 2013 and 2012. | ||||||||||||||||||||||||
Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not believe that we have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||||||||||||||||||
The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | Foreign currency translation items(1) | Pension and other post-retirement effects | Cash flow hedging activity | Total(1) | Foreign currency translation items(1) | Pension and other post-retirement effects | Cash flow hedging activity | Total(1) | ||||||||||||||||||||||||
Balance - January 1 | $ | (89,953 | ) | $ | (129,528 | ) | $ | (814 | ) | $ | (220,295 | ) | $ | (61,083 | ) | $ | (161,757 | ) | $ | (254 | ) | $ | (223,094 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (150,357 | ) | (16,300 | ) | (5,342 | ) | (171,999 | ) | (30,087 | ) | 18,951 | (1,501 | ) | (12,637 | ) | |||||||||||||||||
Amounts | 1,777 | 10,430 | 946 | 13,153 | 1,217 | 13,278 | 941 | 15,436 | ||||||||||||||||||||||||
reclassified | ||||||||||||||||||||||||||||||||
from AOCL | ||||||||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | (148,580 | ) | (5,870 | ) | (4,396 | ) | (158,846 | ) | (28,870 | ) | 32,229 | (560 | ) | 2,799 | ||||||||||||||||||
Balance - December 31 | $ | (238,533 | ) | $ | (135,398 | ) | $ | (5,210 | ) | $ | (379,141 | ) | $ | (89,953 | ) | $ | (129,528 | ) | $ | (814 | ) | $ | (220,295 | ) | ||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | Includes foreign currency translation adjustments attributable to noncontrolling interests of $1.3 million for December 31, 2014 and $1.2 million for both December 31, 2013 and 2012. Foreign currency translation impact primarily represents the weakening of the Euro exchange rate versus the U.S. dollar for the period. | |||||||||||||||||||||||||||||||
The following table presents the reclassifications out of AOCL: | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | Affected line item in the statement of income | 2014(1) | 2013(1) | |||||||||||||||||||||||||||||
Foreign currency translation items | ||||||||||||||||||||||||||||||||
Release of cumulative translation adjustments upon sale of equity method investment | Net earnings from affiliates | $ | — | $ | (1,217 | ) | ||||||||||||||||||||||||||
Release of cumulative translation | Selling, general and | (1,777 | ) | — | ||||||||||||||||||||||||||||
adjustments due to sale of business | administrative expense | |||||||||||||||||||||||||||||||
Tax (expense) benefit | — | — | ||||||||||||||||||||||||||||||
Net of tax | $ | (1,777 | ) | $ | (1,217 | ) | ||||||||||||||||||||||||||
Cash flow hedging activity | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | $ | (1,534 | ) | $ | (1,506 | ) | |||||||||||||||||||||||||
Tax benefit | 588 | 565 | ||||||||||||||||||||||||||||||
Net of tax | $ | (946 | ) | $ | (941 | ) | ||||||||||||||||||||||||||
Pension and other postretirement effects | ||||||||||||||||||||||||||||||||
Amortization of actuarial losses(2) | $ | (13,976 | ) | $ | (19,669 | ) | ||||||||||||||||||||||||||
Prior service costs(2) | (668 | ) | — | |||||||||||||||||||||||||||||
Settlement(2) | (314 | ) | — | |||||||||||||||||||||||||||||
Tax benefit | 4,528 | 6,391 | ||||||||||||||||||||||||||||||
Net of tax | $ | (10,430 | ) | $ | (13,278 | ) | ||||||||||||||||||||||||||
______________________________________ | ||||||||||||||||||||||||||||||||
(1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. | ||||||||||||||||||||||||||||||||
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 12 for additional details. | ||||||||||||||||||||||||||||||||
At December 31, 2014, we expect to recognize losses of $3.8 million, net of deferred taxes, into earnings in the next twelve months related to designated cash flow hedges based on their fair values at December 31, 2014. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The following presents a summary of the unaudited quarterly data for 2014 and 2013 (amounts in millions, except per share data): | |||||||||||||||||
2014 | |||||||||||||||||
Quarter | 4th | 3rd | 2nd | 1st | |||||||||||||
Sales | $ | 1,381.40 | $ | 1,204.00 | $ | 1,224.40 | $ | 1,068.10 | |||||||||
Gross profit | 485.7 | 421.5 | 430.3 | 377.1 | |||||||||||||
Earnings before income taxes | 227.3 | 183.3 | 176 | 146.6 | |||||||||||||
Net earnings attributable to Flowserve Corporation | 159 | 128.6 | 123.5 | 107.7 | |||||||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 1.17 | $ | 0.94 | $ | 0.9 | $ | 0.78 | |||||||||
Diluted | 1.16 | 0.93 | 0.9 | 0.78 | |||||||||||||
2013 | |||||||||||||||||
Quarter | 4th | 3rd | 2nd | 1st | |||||||||||||
Sales | $ | 1,389.40 | $ | 1,229.10 | $ | 1,239.50 | $ | 1,096.60 | |||||||||
Gross profit | 470.5 | 422.7 | 421.6 | 373.3 | |||||||||||||
Earnings before income taxes | 191.7 | 182.4 | 171.3 | 147.6 | |||||||||||||
Net earnings attributable to Flowserve Corporation | 141.1 | 126.3 | 120.4 | 97.8 | |||||||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 1.01 | $ | 0.9 | $ | 0.85 | $ | 0.68 | |||||||||
Diluted | 1.01 | 0.9 | 0.84 | 0.67 | |||||||||||||
_______________________________________ | |||||||||||||||||
-1 | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. | ||||||||||||||||
The significant pre-tax fourth quarter adjustment for 2013 was to record $10.7 million in charges related to our realignment program. See Note 20 for additional information on our realignment program. |
2013_Realignment_Program
2013 Realignment Program | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
2013 Realignment Program | 2013 REALIGNMENT PROGRAM |
In the fourth quarter of 2013, we initiated a realignment program to reduce and optimize certain non-strategic QRC and manufacturing facilities and our overall cost structure ("2013 Realignment Program"). We expect total 2013 Realignment Program charges will be $15.8 million for approved plans, of which $12.4 million has been incurred through December 31, 2014. Realignment charges, net of adjustments, were $1.6 million and $10.7 million for the years ended December 31, 2014 and 2013, respectively. The majority of these charges are restructuring in nature. | |
The realignment program consists of both restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and primarily represent employee severance. Non-restructuring charges are costs incurred to improve operating efficiency and reduce redundancies and primarily represent employee severance. Expenses are reported in COS or SG&A, as applicable, in our consolidated statements of income. | |
Generally, the aforementioned charges were or will be paid in cash, except for asset write-downs, which are non-cash charges. The restructuring reserve related to the 2013 Realignment Program was $1.1 million and $6.3 million at December 31, 2014 and 2013, respectively. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT |
On January 7, 2015, we acquired for inclusion in IPD, 100% of SIHI, a global provider of engineered vacuum and fluid pumps and related services for cash of $365.0 million. The acquisition was funded using approximately $110 million in available cash and approximately $255 million in borrowings from our Revolving Credit Facility. We anticipate incurring longer-term indebtness in the first quarter of 2015 to repay the borrowings under the Revolving Credit Facility. Due to the size, scope and timing of the acquisition a preliminary purchase price allocation was not available at the time of filing this Annual Report on Form 10-K. SIHI, based in the Netherlands, has operations primarily in Europe and, to a lesser extent, the Americas and Asia. SIHI's 2014 sales (unaudited) were approximately €270 million. | |
SIHI is expected to strengthen Flowserve’s extensive portfolio of products and services through the addition of its engineered vacuum and fluid pumps, as well as the associated aftermarket services and parts. SIHI’s offerings primarily serve the chemical market, as well as the pharmaceutical, food & beverage and other process industries. SIHI’s existing installed base and its leading position as a supplier of vacuum and fluid pumps will complement our chemical industry strategy. This acquisition provides Flowserve additional engineering and manufacturing experience and the opportunity to leverage our global platform to deliver on the combined financial synergies. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | FLOWSERVE CORPORATION | ||||||||||||||||||||
Schedule II — Valuation and Qualifying Accounts | |||||||||||||||||||||
Description | Balance at | Additions | Additions | Deductions From Reserve | Balance at End of Year | ||||||||||||||||
Beginning of Year | Charged to | Charged to | |||||||||||||||||||
Cost and Expenses | Other | ||||||||||||||||||||
Accounts— | |||||||||||||||||||||
Acquisitions | |||||||||||||||||||||
and Related Adjustments | |||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Allowance for doubtful accounts(a): | $ | 24,073 | $ | 17,817 | $ | (443 | ) | $ | (15,978 | ) | $ | 25,469 | |||||||||
Deferred tax asset valuation allowance(b): | 18,058 | 1,366 | (996 | ) | (3,050 | ) | 15,378 | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful accounts(a): | 21,491 | 17,412 | 79 | (14,909 | ) | 24,073 | |||||||||||||||
Deferred tax asset valuation allowance(b): | 17,975 | 2,352 | — | (2,269 | ) | 18,058 | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Allowance for doubtful accounts(a): | 20,351 | 22,148 | (36 | ) | (20,972 | ) | 21,491 | ||||||||||||||
Deferred tax asset valuation allowance(b): | 17,686 | 3,257 | (657 | ) | (2,311 | ) | 17,975 | ||||||||||||||
_______________________________________ | |||||||||||||||||||||
(a) | Deductions from reserve represent accounts written off and recoveries. | ||||||||||||||||||||
(b) | Deductions from reserve result from the expiration or utilization of net operating losses and foreign tax credits previously reserved. |
Significant_Accounting_Policie1
Significant Accounting Policies and Accounting Developments (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. Investments in unconsolidated affiliated companies, which represent noncontrolling ownership interests between 20% and 50%, are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). Investments in interests where we own less than 20% of the investee are accounted for by the cost method, whereby income is only recognized in the event of dividend receipt. Investments accounted for by the cost method are tested for impairment if an impairment indicator is present. | |||||||||||
Use of Estimates | Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: | |||||||||||
• | Revenue recognition, net of liquidated damages and other delivery penalties; | |||||||||||
• | Income taxes, deferred taxes, tax valuation allowances and tax reserves; | |||||||||||
• | Reserves for contingent loss; | |||||||||||
• | Retirement and postretirement benefits; and | |||||||||||
• | Valuation of goodwill, indefinite-lived intangible assets and other long-lived assets. | |||||||||||
Revenue Recognition | Revenue Recognition — Revenues for product sales are recognized when the risks and rewards of ownership are transferred to the customers, which is typically based on the contractual delivery terms agreed to with the customer and fulfillment of all but inconsequential or perfunctory actions. In addition, our policy requires persuasive evidence of an arrangement, a fixed or determinable sales price and reasonable assurance of collectability. We defer the recognition of revenue when advance payments are received from customers before performance obligations have been completed and/or services have been performed. Freight charges billed to customers are included in sales and the related shipping costs are included in cost of sales in our consolidated statements of income. Our contracts typically include cancellation provisions that require customers to reimburse us for costs incurred up to the date of cancellation, as well as any contractual cancellation penalties. | |||||||||||
We enter into certain agreements with multiple deliverables that may include any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services related to the performance of such products. Delivery of these products and services typically occurs within a one to two-year period, although many arrangements, such as "short-cycle" type orders, have a shorter timeframe for delivery. We separate deliverables into units of accounting based on whether the deliverable(s) have standalone value to the customer (impact of general rights of return is immaterial). Contract value is allocated ratably to the units of accounting in the arrangement based on their relative selling prices determined as if the deliverables were sold separately. | ||||||||||||
Revenues for long-term contracts that exceed certain internal thresholds regarding the size and duration of the project and provide for the receipt of progress billings from the customer are recorded on the percentage of completion method with progress measured on a cost-to-cost basis. Percentage of completion revenue represents less than 7% of our consolidated sales for each year presented. | ||||||||||||
Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered. Revenues generated under fixed fee service and repair contracts are recognized on a ratable basis over the term of the contract. These contracts can range in duration, but generally extend for up to five years. Fixed fee service contracts represent approximately 1% of consolidated sales for each year presented. | ||||||||||||
In certain instances, we provide guaranteed completion dates under the terms of our contracts. Failure to meet contractual delivery dates can result in late delivery penalties or non-recoverable costs. In instances where the payment of such costs are deemed to be probable, we perform a project profitability analysis, accounting for such costs as a reduction of realizable revenues, which could potentially cause estimated total project costs to exceed projected total revenues realized from the project. In such instances, we would record reserves to cover such excesses in the period they are determined. In circumstances where the total projected revenues still exceed total projected costs, the incurrence of penalties or non-recoverable costs generally reduces profitability of the project at the time of subsequent revenue recognition. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. | |||||||||||
Allowance for Doubtful Accounts and Credit Risk | Allowance for Doubtful Accounts and Credit Risk — The allowance for doubtful accounts is established based on estimates of the amount of uncollectible accounts receivable, which is determined principally based upon the aging of the accounts receivable, but also customer credit history, industry and market segment information, economic trends and conditions and credit reports. Customer credit issues, customer bankruptcies or general economic conditions may also impact our estimates. | |||||||||||
Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. As of December 31, 2014, although we have experienced increased aging and slower collection of receivables with our primary Venezuelan customer, we do not believe that we have any significant concentrations of credit risk. | ||||||||||||
Inventories and Related Reserves | Inventories and Related Reserves — Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. | |||||||||||
Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves | Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reflect the estimated amount of deferred tax assets that may not be realized based upon our analysis of existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax strategies. | |||||||||||
We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. | ||||||||||||
The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. | ||||||||||||
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. | ||||||||||||
Legal and Environmental Accruals | Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. | |||||||||||
Estimates of liabilities for unsettled asbestos-related claims are based on known claims and on our experience during the preceding two years for claims filed, settled and dismissed, with adjustments for events deemed unusual and unlikely to recur, and are included in retirement obligations and other liabilities in our consolidated balance sheets. A substantial majority of our asbestos-related claims are covered by insurance or indemnities. Estimated indemnities and receivables from insurance carriers for unsettled claims and receivables for settlements and legal fees paid by us for asbestos-related claims are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in other assets, net in our consolidated balance sheets. We have claims pending against certain insurers that, if resolved more favorably than estimated future recoveries, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to existing indemnities and insurance coverage. | ||||||||||||
Warranty Accruals | Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months. | |||||||||||
Insurance Accruals | Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. | |||||||||||
Pension and Postretirement Obligations | Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. | |||||||||||
Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. | ||||||||||||
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under capital leases, over the related lease turn. Generally, the estimated useful lives of the assets are: | |||||||||||
Buildings and improvements | 10 to 40 years | |||||||||||
Machinery, equipment and tooling | 3 to 14 years | |||||||||||
Software, furniture and fixtures and other | 3 to 7 years | |||||||||||
Costs related to routine repairs and maintenance are expensed as incurred. | ||||||||||||
Internally Developed Software | Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three to five years, upon implementation of the software. | |||||||||||
Intangible Assets | Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four to 40 years. These assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. | |||||||||||
Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets | Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in seven reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. | |||||||||||
An impairment loss for goodwill is recognized if the implied fair value of goodwill is less than the carrying value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. We did not record an impairment of goodwill in 2014, 2013 or 2012. | ||||||||||||
We also consider our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization decreased as compared with 2013; however, it did not indicate a potential impairment of our goodwill as of December 31, 2014. | ||||||||||||
Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting units discussed above. We did not record a material impairment of our trademarks in 2014, 2013 or 2012. | ||||||||||||
The recoverable value of other long-lived assets, including property, plant and equipment and finite-lived intangible assets, is reviewed when indicators of potential impairments are present. The recoverable value is based upon an assessment of the estimated future cash flows related to those assets, utilizing assumptions similar to those for goodwill. Additional considerations related to our long-lived assets include expected maintenance and improvements, changes in expected uses and ongoing operating performance and utilization. | ||||||||||||
Deferred Loan Costs | Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. | |||||||||||
Fair Value of Financial Instruments | Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. | |||||||||||
Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification ("ASC") 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: | ||||||||||||
Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||
Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||||||||||
Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||||||||||
Recurring fair value measurements are limited to investments in derivative instruments and certain equity securities. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivative instruments are included in Note 6. The fair value measurements of our investments in equity securities are determined using quoted market prices and are classified as Level I. The fair values of our investments in equity securities, and changes thereto, are immaterial to our consolidated financial position and results of operations. | ||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities — We have a foreign currency derivatives and hedging policy outlining the conditions under which we can enter into financial derivative transactions. We do not use derivative instruments for trading or speculative purposes. All derivative instruments are recognized on the balance sheet at their fair values. The accounting for gains and losses resulting from changes in fair value depends on whether the derivative is designated and qualifies for hedge accounting. | |||||||||||
Foreign Exchange Contracts —We employ a foreign currency economic hedging strategy to mitigate certain financial risks resulting from foreign currency exchange rate movements that impact foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. In 2013 we began to designate certain forward exchange contracts as hedging instruments and apply hedge accounting to those instruments. | ||||||||||||
For designated forward exchange contracts, the changes in fair value are recorded in other comprehensive loss until the underlying hedged item affects earnings, at which time the change in fair value is recognized in sales in the consolidated statements of income. For non-designated forward exchange contracts, the changes in the fair values are recognized immediately in other income (expense), net in the consolidated statements of income. See Note 6 for further discussion of forward exchange contracts. | ||||||||||||
Interest Rate Swaps — We enter into interest rate swap agreements for the purpose of hedging our cash flow exposure to floating interest rates on certain portions of our debt. Changes in the fair value of a designated interest rate swap are recorded in other comprehensive loss until earnings are affected by the underlying hedged item. Any ineffective portion of the gain or loss is immediately recognized in earnings. Upon settlement, realized gains and losses are recognized in interest expense in the consolidated statements of income. See Note 6 for further discussion of interest rate swaps. | ||||||||||||
We discontinue hedge accounting when (1) we deem the hedge to be ineffective and determine that the designation of the derivative as a hedging instrument is no longer appropriate; (2) the derivative matures, terminates or is sold; or (3) occurrence of the contracted or committed transaction is no longer probable or will not occur in the originally expected period. | ||||||||||||
When hedge accounting is discontinued and the derivative remains outstanding, we carry the derivative at its estimated fair value on the balance sheet, recognizing changes in the fair value in current period earnings. If a cash flow hedge becomes ineffective, any deferred gains or losses remain in accumulated other comprehensive loss until the underlying hedged item is recognized. If it becomes probable that a hedged forecasted transaction will not occur, deferred gains or losses on the hedging instrument are recognized in earnings immediately. | ||||||||||||
We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. If necessary, we would adjust the values of our derivative contracts for our or our counterparties’ credit risks. | ||||||||||||
Foreign Currency Translation | Foreign Currency Translation — Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated results of operations. | |||||||||||
Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. Where intercompany balances are not long-term investment related or not designated as due beyond the foreseeable future, we may mitigate risk associated with foreign currency fluctuations by entering into forward exchange contracts. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation — Stock-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the value of restricted share, restricted share unit and performance-based unit awards (collectively referred to as "Restricted Shares") are set at the closing price of our common stock on the New York Stock Exchange on the date of grant, which is the date such grants are authorized by our Board of Directors. Restricted share units and performance-based units refer to restricted awards that do not have voting rights and accrue dividends, which are forfeited if vesting does not occur. | |||||||||||
The intrinsic value of Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse based on the expected number of shares that will vest. The forfeiture rate is based on unvested Restricted Shares forfeited compared with original total Restricted Shares granted over a 4-year period, excluding significant forfeiture events that are not expected to recur. | ||||||||||||
Earnings Per Share | Earnings Per Share — We use the two-class method of calculating Earnings Per Share ("EPS"), which determines earnings per share for each class of common stock and participating security as if all earnings for the period had been distributed. Unvested restricted share awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation as such. Our unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation below is prepared on a combined basis and is presented as earnings per common share. The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating basic net earnings per common share. | |||||||||||
Earnings per weighted average common share outstanding was calculated as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands, except per share data) | ||||||||||||
Net earnings of Flowserve Corporation | $ | 518,824 | $ | 485,530 | $ | 448,339 | ||||||
Dividends on restricted shares not expected to vest | 12 | 13 | 15 | |||||||||
Earnings attributable to common and participating shareholders | $ | 518,836 | $ | 485,543 | $ | 448,354 | ||||||
Weighted average shares: | ||||||||||||
Common stock | 136,334 | 140,901 | 156,057 | |||||||||
Participating securities | 578 | 698 | 792 | |||||||||
Denominator for basic earnings per common share | 136,912 | 141,599 | 156,849 | |||||||||
Effect of potentially dilutive securities | 931 | 830 | 1,121 | |||||||||
Denominator for diluted earnings per common share | 137,843 | 142,429 | 157,970 | |||||||||
Net earnings per share attributable to Flowserve Corporation common shareholders: | ||||||||||||
Basic | $ | 3.79 | $ | 3.43 | $ | 2.86 | ||||||
Diluted | 3.76 | 3.41 | 2.84 | |||||||||
Diluted earnings per share is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options, restricted share units and performance share units. | ||||||||||||
Research and Development Expense | Research and Development Expense — Research and development costs are charged to expense when incurred. Aggregate research and development costs included in selling, general and administrative expenses ("SG&A") were $40.9 million, $37.8 million and $38.9 million in 2014, 2013 and 2012, respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in research and development activities. | |||||||||||
Accounting Developments | Accounting Developments | |||||||||||
Pronouncements Implemented | ||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-04, "Liabilities (Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date," which requires a reporting entity that is jointly and severally liable to measure the obligation as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of one or more co-obligors. The scope of this ASU excludes obligations addressed by existing guidance. The ASU shall be applied retrospectively for arrangements existing at the beginning of the year of adoption. Our adoption of ASU No. 2013-04 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In April 2013, the FASB issued ASU No. 2013-07, "Presentation of Financial Statements (Topic 205) - Liquidation Basis of Accounting," which requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). The ASU shall be applied prospectively from the day that liquidation becomes imminent. Our adoption of ASU No. 2013-07 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which provides guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU shall be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of ASU No. 2013-11 effective January 1, 2014 did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which provides guidance on the requirements for reporting discontinued operations. A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, is disposed of by sale, or is disposed of other than by sale (e.g., by abandonment or in a distribution to owners in a spinoff). This ASU also introduces new disclosure requirements for discontinued operations. The ASU shall be applied prospectively to (a) all disposals (or classifications as held for sale) of components of an entity and (b) businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur after the effective date. We early adopted this ASU effective January 1, 2014 and it did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides guidance on pushdown accounting requirements on whether and at what threshold an acquired entity has the option to apply pushdown accounting in its stand-alone financial statements upon a change-in-control event based on their facts and circumstances. The ASU supersedes SEC Staff Accounting Bulletin Topic No. 5.J, “New Basis of Accounting Required in Certain Circumstances, Emerging Issues Task Force Topic No.D-97, Push-Down Accounting.” We adopted this ASU effective immediately and it did not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
Pronouncements Not Yet Implemented | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" which supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)." The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. There are also expanded disclosure requirements in this ASU. For public entities ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and allows for either full retrospective adoption or modified retrospective adoption. We are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial condition and results of operations. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-11 "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." This ASU changes the accounting for repurchase-to-maturity transactions and linked repurchase financings so that such transactions will now be accounted for as secured borrowings. This accounting change is effective for the first interim or annual period beginning after December 15, 2014 and early adoption is not permitted. There are also new disclosure requirements in this ASU. The adoption of ASU No. 2014-11 will not have a material impact on our consolidated financial condition and results of operations. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12 "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." This ASU was issued to address share-based payment awards with a performance target affecting vesting that could be achieved after the employee’s requisite service period. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. This ASU may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU No. 2014-12 will not have a material impact on our consolidated financial condition and results of operations. | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This ASU requires management to evaluate whether there are conditions or events that raise substantial doubt about the ability of a company to continue as a going concern for one year from the date the financial statements are issued or within one year after the date that the financial statements are available to be issued when applicable. Further, the ASU provides management guidance regarding its responsibility to disclose the ability of a company to continue as a going concern in the notes to the financial statements. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The adoption of ASU No. 2014-15 will not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-16, "Derivatives and Hedging (Topic 815): "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity." This ASU was issued to clarify and reinforce the practice of evaluating all relevant terms and features when reviewing the nature of a host contract. The ASU stipulates that no one term or feature would define the host contract’s economic characteristics and risks. As a result, the economic characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU No. 2014-16 will not have an impact on our consolidated financial condition and results of operations. | ||||||||||||
In November 2014, the FASB issued ASU 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” In connection with the FASB's efforts to simplify accounting standards, the FASB released new guidance on simplifying Income Statement presentation by eliminating the concept of extraordinary items from U.S. GAAP. With the issuance of this ASU the FASB determined that the elimination of the concept of extraordinary items from U.S. GAAP would reduce the cost and complexity on the application of accounting standards, while maintaining or improving the usefulness of information included in financial statements. The adoption of ASU No. 2015-01 will not have an impact on our consolidated financial condition and results of operations. |
Significant_Accounting_Policie2
Significant Accounting Policies and Accounting Developments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Estimated Useful Lives of Assets | Generally, the estimated useful lives of the assets are: | |||||||||||
Buildings and improvements | 10 to 40 years | |||||||||||
Machinery, equipment and tooling | 3 to 14 years | |||||||||||
Software, furniture and fixtures and other | 3 to 7 years | |||||||||||
Calculation of Net Earnings per Common Share and Weighted Average Common Share Outstanding | Earnings per weighted average common share outstanding was calculated as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands, except per share data) | ||||||||||||
Net earnings of Flowserve Corporation | $ | 518,824 | $ | 485,530 | $ | 448,339 | ||||||
Dividends on restricted shares not expected to vest | 12 | 13 | 15 | |||||||||
Earnings attributable to common and participating shareholders | $ | 518,836 | $ | 485,543 | $ | 448,354 | ||||||
Weighted average shares: | ||||||||||||
Common stock | 136,334 | 140,901 | 156,057 | |||||||||
Participating securities | 578 | 698 | 792 | |||||||||
Denominator for basic earnings per common share | 136,912 | 141,599 | 156,849 | |||||||||
Effect of potentially dilutive securities | 931 | 830 | 1,121 | |||||||||
Denominator for diluted earnings per common share | 137,843 | 142,429 | 157,970 | |||||||||
Net earnings per share attributable to Flowserve Corporation common shareholders: | ||||||||||||
Basic | $ | 3.79 | $ | 3.43 | $ | 2.86 | ||||||
Diluted | 3.76 | 3.41 | 2.84 | |||||||||
Acquisitions_Disposition_and_E1
Acquisitions, Disposition and Exit of Joint Venture (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Recognized Assets Acquired and Liabilities Assumed | The purchase price was allocated to the assets acquired and liabilities assumed based on estimates of fair values at the date of acquisition and is summarized below: | |||
(Amounts in millions) | ||||
Current assets | $ | 8.1 | ||
Property, plant and equipment | 5.3 | |||
Intangible assets | 18.5 | |||
Current liabilities | (0.8 | ) | ||
Net tangible and intangible assets | 31.1 | |||
Goodwill | 43.9 | |||
Purchase price | $ | 75 | ||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
EPD | IPD | FCD | Total | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Balance as of January 1, 2013 | $ | 447,560 | $ | 121,406 | $ | 484,886 | $ | 1,053,852 | ||||||||||
Acquisition(1) | — | 43,865 | — | 43,865 | ||||||||||||||
Currency translation | 1,936 | 261 | 7,637 | 9,834 | ||||||||||||||
Balance as of December 31, 2013 | $ | 449,496 | $ | 165,532 | $ | 492,523 | $ | 1,107,551 | ||||||||||
Disposition(2) | — | — | (6,483 | ) | (6,483 | ) | ||||||||||||
Currency translation | (9,756 | ) | (790 | ) | (23,267 | ) | (33,813 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 439,740 | $ | 164,742 | $ | 462,773 | $ | 1,067,255 | ||||||||||
_______________________________________ | ||||||||||||||||||
-1 | Goodwill primarily related to the acquisition of Innomag in 2013. See Note 2 for additional information. | |||||||||||||||||
-2 | Goodwill disposition related to the sale of Naval in 2014. See Note 2 for additional information. | |||||||||||||||||
Schedule of Changes in Intangible Assets | The following table provides information about our intangible assets for the years ended December 31, 2014 and 2013: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||
Useful | Ending | Accumulated | Ending | Accumulated | ||||||||||||||
Life | Gross | Amortization | Gross | Amortization | ||||||||||||||
(Years) | Amount | Amount | ||||||||||||||||
(Amounts in thousands, except years) | ||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Engineering drawings(1) | 22-Oct | $ | 90,843 | $ | (62,947 | ) | $ | 93,687 | $ | (61,401 | ) | |||||||
Existing customer relationships(2) | 10-May | 38,003 | (19,285 | ) | 40,077 | (15,241 | ) | |||||||||||
Patents | 16-Sep | 29,396 | (26,087 | ) | 32,963 | (28,013 | ) | |||||||||||
Other | Apr-40 | 43,351 | (25,426 | ) | 40,797 | (25,438 | ) | |||||||||||
$ | 201,593 | $ | (133,745 | ) | $ | 207,524 | $ | (130,093 | ) | |||||||||
Indefinite-lived intangible assets(3) | $ | 79,982 | $ | (1,493 | ) | $ | 84,670 | $ | (1,553 | ) | ||||||||
____________________________________ | ||||||||||||||||||
-1 | Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. | |||||||||||||||||
-2 | Existing customer relationships acquired prior to 2011 had a useful life of five years. | |||||||||||||||||
-3 | Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. | |||||||||||||||||
Schedule of Actual and Estimated Future Amortization of Finite-Lived Intangible Assets | The following schedule outlines actual amortization expense recognized during 2014 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2014: | |||||||||||||||||
Amortization | ||||||||||||||||||
Expense | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Actual for year ended December 31, 2014 | $ | 14,005 | ||||||||||||||||
Estimated for year ending December 31, 2015 | 10,832 | |||||||||||||||||
Estimated for year ending December 31, 2016 | 8,534 | |||||||||||||||||
Estimated for year ending December 31, 2017 | 8,280 | |||||||||||||||||
Estimated for year ending December 31, 2018 | 8,005 | |||||||||||||||||
Estimated for year ending December 31, 2019 | 7,355 | |||||||||||||||||
Thereafter | 24,842 | |||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of Inventory | Inventories, net consisted of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Raw materials | $ | 352,928 | $ | 356,899 | ||||
Work in process | 687,343 | 786,664 | ||||||
Finished goods | 265,439 | 306,765 | ||||||
Less: Progress billings | (230,058 | ) | (304,395 | ) | ||||
Less: Excess and obsolete reserve | (80,088 | ) | (85,263 | ) | ||||
Inventories, net | $ | 995,564 | $ | 1,060,670 | ||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Stock Option Activity | Information related to stock options issued to officers, other employees and directors prior to 2010 under all plans is presented in the following table: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Number of shares under option: | |||||||||||||||||||||
Outstanding — beginning of year | 97,962 | $ | 16.61 | 115,362 | $ | 15 | 145,338 | $ | 13.9 | ||||||||||||
Exercised | — | — | (17,400 | ) | 5.91 | (24,576 | ) | 10.15 | |||||||||||||
Canceled | — | — | — | — | (5,400 | ) | 7.65 | ||||||||||||||
Outstanding — end of year | 97,962 | $ | 16.61 | 97,962 | $ | 16.61 | 115,362 | $ | 15 | ||||||||||||
Exercisable — end of year | 97,962 | $ | 16.61 | 97,962 | $ | 16.61 | 115,362 | $ | 15 | ||||||||||||
Additional Information Relating to the Ranges of Options Outstanding | Additional information relating to the ranges of options outstanding at December 31, 2014, is as follows: | ||||||||||||||||||||
Weighted Average Remaining Contractual Life | Options Outstanding and Exercisable | ||||||||||||||||||||
Range of Exercise | Number Outstanding | Weighted Average Exercise Price per Share | |||||||||||||||||||
Prices per Share | |||||||||||||||||||||
$8.08 - $14.14 | 0.53 | 10,500 | $ | 10.32 | |||||||||||||||||
$14.14 - $16.16 | 1.13 | 3,201 | 16.06 | ||||||||||||||||||
$16.16 - $18.18 | 1.95 | 84,261 | 17.42 | ||||||||||||||||||
97,962 | $ | 16.61 | |||||||||||||||||||
Schedule of Stock-Based Compensation | We recorded stock-based compensation for restricted shares as follows: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(Amounts in millions) | |||||||||||||||||||||
Stock-based compensation expense | $ | 42.7 | $ | 35.8 | $ | 35.4 | |||||||||||||||
Related income tax benefit | (14.6 | ) | -12.3 | -12 | |||||||||||||||||
Net stock-based compensation expense | $ | 28.1 | $ | 23.5 | $ | 23.4 | |||||||||||||||
Information Regarding Restricted Shares | The following table summarizes information regarding Restricted Shares: | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant-Date Fair Value | |||||||||||||||||||||
Number of unvested Restricted Shares: | |||||||||||||||||||||
Outstanding — beginning of year | 2,020,678 | $ | 44.68 | ||||||||||||||||||
Granted | 734,187 | 64.35 | |||||||||||||||||||
Vested | (788,468 | ) | 44.1 | ||||||||||||||||||
Canceled | (109,849 | ) | 51.63 | ||||||||||||||||||
Outstanding — ending of year | 1,856,548 | $ | 52.29 | ||||||||||||||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Summary of Fair Value of Forward Exchange Contracts not Designated as Hedging Instruments | The fair value of foreign exchange derivative contracts not designated as hedging instruments are summarized below: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current derivative assets | $ | 11,709 | $ | 5,215 | ||||||||
Noncurrent derivative assets | 6 | 729 | ||||||||||
Current derivative liabilities | 6,168 | 2,207 | ||||||||||
Noncurrent derivative liabilities | 348 | 113 | ||||||||||
Summary of Fair Value of Interest Rate Swaps and Foreign Exchange Derivative Contracts in Cash Flow Hedging Relationships | The fair value of interest rate swaps and foreign exchange derivative contracts designated as hedging instruments are summarized below: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current derivative assets | $ | — | $ | 146 | ||||||||
Current derivative liabilities | 6,952 | 409 | ||||||||||
Noncurrent derivative liabilities | 411 | 37 | ||||||||||
Impact of Net Changes in Fair Values of Forward Exchange Contracts Not Designated as Hedging Instruments | The impact of net changes in the fair values of foreign exchange contracts are summarized below: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Gain (loss) recognized in income | $ | 8,464 | $ | (4,352 | ) | $ | (7,089 | ) | ||||
Details_of_Certain_Consolidate1
Details of Certain Consolidated Balance Sheet Captions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||||||||
Accounts Receivable, net | Accounts receivable, net were: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Accounts receivable | $ | 1,107,916 | $ | 1,179,400 | ||||
Less: allowance for doubtful accounts | (25,469 | ) | (24,073 | ) | ||||
Accounts receivable, net | $ | 1,082,447 | $ | 1,155,327 | ||||
Property, Plant and Equipment, net | Property, plant and equipment, net were: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 76,645 | $ | 79,557 | ||||
Buildings and improvements | 405,733 | 420,364 | ||||||
Machinery, equipment and tooling | 668,710 | 694,179 | ||||||
Software, furniture and fixtures and other | 379,774 | 372,052 | ||||||
Gross property, plant and equipment | 1,530,862 | 1,566,152 | ||||||
Less: accumulated depreciation | (836,981 | ) | (849,863 | ) | ||||
Property, plant and equipment, net | $ | 693,881 | $ | 716,289 | ||||
Accrued Liabilities | Accrued liabilities were: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Wages, compensation and other benefits | $ | 226,488 | $ | 238,238 | ||||
Commissions and royalties | 34,194 | 38,609 | ||||||
Customer advance payments | 303,527 | 340,136 | ||||||
Progress billings in excess of accumulated costs | 22,098 | 40,718 | ||||||
Warranty costs and late delivery penalties | 47,738 | 63,935 | ||||||
Sales and use tax | 16,274 | 15,508 | ||||||
Income tax | 37,451 | 21,939 | ||||||
Other | 106,302 | 101,927 | ||||||
Accrued liabilities | $ | 794,072 | $ | 861,010 | ||||
Retirement Obligations and Other Liabilities | Retirement obligations and other liabilities were: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Pension and postretirement benefits | $ | 195,429 | $ | 199,634 | ||||
Deferred taxes | 118,780 | 110,251 | ||||||
Legal and environmental | 27,606 | 35,250 | ||||||
Uncertain tax positions | 69,284 | 82,689 | ||||||
Other | 41,412 | 46,070 | ||||||
Retirement obligations and other liabilities | $ | 452,511 | $ | 473,894 | ||||
Debt_and_Lease_Obligations_Tab
Debt and Lease Obligations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt Including Capital Lease Obligations | Debt, including capital lease obligations, consisted of: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
4.00% Senior Notes due November 15, 2023, net of unamortized discount | $ | 298,731 | $ | 298,615 | ||||||||
3.50% Senior Notes due September 15, 2022, net of unamortized discount | 498,460 | 498,289 | ||||||||||
Term Loan Facility, interest rate of 1.51% and 1.50% at December 31, 2014 and 2013, respectively | 330,000 | 370,000 | ||||||||||
Capital lease obligations and other borrowings | 27,731 | 33,393 | ||||||||||
Debt and capital lease obligations | 1,154,922 | 1,200,297 | ||||||||||
Less amounts due within one year | 53,131 | 72,678 | ||||||||||
Total debt due after one year | $ | 1,101,791 | $ | 1,127,619 | ||||||||
Schedule Maturities of the Senior Credit Facility as well as our Senior Notes and other debt | Scheduled maturities of the Senior Credit Facility (as described below), as well as our Senior Notes and other debt, are: | |||||||||||
Term | Senior Notes and other debt | Total | ||||||||||
Loan | ||||||||||||
(Amounts in thousands) | ||||||||||||
2015 | $ | 45,000 | $ | 8,131 | $ | 53,131 | ||||||
2016 | 60,000 | 19,600 | 79,600 | |||||||||
2017 | 60,000 | — | 60,000 | |||||||||
2018 | 165,000 | — | 165,000 | |||||||||
Thereafter | — | 797,191 | 797,191 | |||||||||
Total | $ | 330,000 | $ | 824,922 | $ | 1,154,922 | ||||||
Schedule of Future Minimum Lease Payments Due Under Non-cancelable Operating Leases | The future minimum lease payments due under non-cancelable operating leases are (amounts in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2015 | $ | 49,625 | ||||||||||
2016 | 36,829 | |||||||||||
2017 | 27,824 | |||||||||||
2018 | 22,081 | |||||||||||
2019 | 17,184 | |||||||||||
Thereafter | 63,837 | |||||||||||
Total minimum lease payments | $ | 217,380 | ||||||||||
Supplemental_Guarantor_Financi1
Supplemental Guarantor Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Financial Data [Abstract] | ||||||||||||||||||||
Schedule of Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 51,200 | $ | — | $ | 399,150 | $ | — | $ | 450,350 | ||||||||||
Accounts receivable, net | — | 258,386 | 824,061 | — | 1,082,447 | |||||||||||||||
Intercompany receivables | — | 138,524 | 50,086 | (188,610 | ) | — | ||||||||||||||
Inventories, net | — | 353,894 | 641,670 | — | 995,564 | |||||||||||||||
Other current assets | 1,112 | 150,934 | 113,756 | — | 265,802 | |||||||||||||||
Total current assets | 52,312 | 901,738 | 2,028,723 | (188,610 | ) | 2,794,163 | ||||||||||||||
Property, plant and equipment, net | — | 240,204 | 453,677 | — | 693,881 | |||||||||||||||
Goodwill | — | 709,239 | 358,016 | — | 1,067,255 | |||||||||||||||
Intercompany receivables | 392,500 | 134,704 | 42,970 | (570,174 | ) | — | ||||||||||||||
Investment in consolidated subsidiaries | 2,622,193 | 1,608,997 | — | (4,231,190 | ) | — | ||||||||||||||
Other assets, net | 12,498 | 186,013 | 214,210 | — | 412,721 | |||||||||||||||
Total assets | $ | 3,079,503 | $ | 3,780,895 | $ | 3,097,596 | $ | (4,989,974 | ) | $ | 4,968,020 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 167,624 | $ | 444,091 | $ | — | $ | 611,715 | ||||||||||
Intercompany payables | 126 | 49,960 | 138,524 | (188,610 | ) | — | ||||||||||||||
Accrued liabilities | 13,026 | 291,193 | 489,853 | — | 794,072 | |||||||||||||||
Debt due within one year | 45,000 | — | 8,131 | — | 53,131 | |||||||||||||||
Deferred taxes | — | — | 12,957 | — | 12,957 | |||||||||||||||
Total current liabilities | 58,152 | 508,777 | 1,093,556 | (188,610 | ) | 1,471,875 | ||||||||||||||
Long-term debt due after one year | 1,082,191 | — | 19,600 | — | 1,101,791 | |||||||||||||||
Intercompany payables | 1,144 | 434,326 | 134,704 | (570,174 | ) | — | ||||||||||||||
Retirement obligations and other liabilities | 6,454 | 215,599 | 230,458 | — | 452,511 | |||||||||||||||
Total liabilities | 1,147,941 | 1,158,702 | 1,478,318 | (758,784 | ) | 3,026,177 | ||||||||||||||
Total Flowserve Corporation shareholders’ equity | 1,931,562 | 2,622,193 | 1,608,997 | (4,231,190 | ) | 1,931,562 | ||||||||||||||
Noncontrolling interests | — | — | 10,281 | — | 10,281 | |||||||||||||||
Total equity | 1,931,562 | 2,622,193 | 1,619,278 | (4,231,190 | ) | 1,941,843 | ||||||||||||||
Total liabilities and equity | $ | 3,079,503 | $ | 3,780,895 | $ | 3,097,596 | $ | (4,989,974 | ) | $ | 4,968,020 | |||||||||
31-Dec-13 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 29,086 | $ | — | $ | 334,718 | $ | — | $ | 363,804 | ||||||||||
Accounts receivable, net | — | 263,594 | 891,733 | — | 1,155,327 | |||||||||||||||
Intercompany receivables | — | 155,422 | 74,089 | (229,511 | ) | — | ||||||||||||||
Inventories, net | — | 371,172 | 689,498 | — | 1,060,670 | |||||||||||||||
Other current assets, net | 1,879 | 144,551 | 121,151 | — | 267,581 | |||||||||||||||
Total current assets | 30,965 | 934,739 | 2,111,189 | (229,511 | ) | 2,847,382 | ||||||||||||||
Property, plant and equipment, net | — | 220,072 | 496,217 | — | 716,289 | |||||||||||||||
Goodwill | — | 715,722 | 391,829 | — | 1,107,551 | |||||||||||||||
Intercompany receivables | 432,500 | 9,520 | 186,789 | (628,809 | ) | — | ||||||||||||||
Investment in consolidated subsidiaries | 2,579,701 | 1,850,998 | — | (4,430,699 | ) | — | ||||||||||||||
Other assets, net | 15,486 | 211,755 | 138,270 | — | 365,511 | |||||||||||||||
Total assets | $ | 3,058,652 | $ | 3,942,806 | $ | 3,324,294 | $ | (5,289,019 | ) | $ | 5,036,733 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 163,254 | $ | 448,838 | $ | — | $ | 612,092 | ||||||||||
Intercompany payables | 81 | 74,008 | 155,422 | (229,511 | ) | — | ||||||||||||||
Accrued liabilities | 12,874 | 293,012 | 555,124 | — | 861,010 | |||||||||||||||
Debt due within one year | 40,000 | 5 | 32,673 | — | 72,678 | |||||||||||||||
Deferred taxes | — | — | 12,319 | — | 12,319 | |||||||||||||||
Total current liabilities | 52,955 | 530,279 | 1,204,376 | (229,511 | ) | 1,558,099 | ||||||||||||||
Long-term debt due after one year | 1,126,904 | — | 715 | — | 1,127,619 | |||||||||||||||
Intercompany payables | 1,144 | 618,145 | 9,520 | (628,809 | ) | — | ||||||||||||||
Retirement obligations and other liabilities | 7,270 | 214,681 | 251,943 | — | 473,894 | |||||||||||||||
Total liabilities | 1,188,273 | 1,363,105 | 1,466,554 | (858,320 | ) | 3,159,612 | ||||||||||||||
Total Flowserve Corporation shareholders’ equity | 1,870,379 | 2,579,701 | 1,850,998 | (4,430,699 | ) | 1,870,379 | ||||||||||||||
Noncontrolling interests | — | — | 6,742 | — | 6,742 | |||||||||||||||
Total equity | 1,870,379 | 2,579,701 | 1,857,740 | (4,430,699 | ) | 1,877,121 | ||||||||||||||
Total liabilities and equity | $ | 3,058,652 | $ | 3,942,806 | $ | 3,324,294 | $ | (5,289,019 | ) | $ | 5,036,733 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,944,086 | $ | 3,284,577 | $ | (350,778 | ) | $ | 4,877,885 | |||||||||
Cost of sales | — | (1,261,913 | ) | (2,252,133 | ) | 350,778 | (3,163,268 | ) | ||||||||||||
Gross profit | — | 682,173 | 1,032,444 | — | 1,714,617 | |||||||||||||||
Selling, general and administrative expense | (2,725 | ) | (395,650 | ) | (538,525 | ) | — | (936,900 | ) | |||||||||||
Net earnings from affiliates | — | 1,079 | 11,036 | — | 12,115 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 542,391 | 372,848 | — | (915,239 | ) | — | ||||||||||||||
Operating income | 539,666 | 660,450 | 504,955 | (915,239 | ) | 789,832 | ||||||||||||||
Interest expense, net | (35,731 | ) | (10,824 | ) | (12,087 | ) | — | (58,642 | ) | |||||||||||
Other income (expense), net | 45 | (11,697 | ) | 13,652 | — | 2,000 | ||||||||||||||
Earnings before income taxes | 503,980 | 637,929 | 506,520 | (915,239 | ) | 733,190 | ||||||||||||||
Provision for income taxes | 14,844 | (95,538 | ) | (127,611 | ) | — | (208,305 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 518,824 | 542,391 | 378,909 | (915,239 | ) | 524,885 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (6,061 | ) | — | (6,061 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 518,824 | $ | 542,391 | $ | 372,848 | $ | (915,239 | ) | $ | 518,824 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 359,895 | $ | 383,198 | $ | 184,648 | $ | (567,846 | ) | $ | 359,895 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,952,235 | $ | 3,388,258 | $ | (385,874 | ) | $ | 4,954,619 | |||||||||
Cost of sales | — | (1,281,035 | ) | (2,371,363 | ) | 385,874 | (3,266,524 | ) | ||||||||||||
Gross profit | — | 671,200 | 1,016,895 | — | 1,688,095 | |||||||||||||||
Selling, general and administrative expense | (3,079 | ) | (400,609 | ) | (563,141 | ) | — | (966,829 | ) | |||||||||||
Net earnings from affiliates | — | 1,175 | 37,842 | — | 39,017 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 505,764 | 345,465 | — | (851,229 | ) | — | ||||||||||||||
Operating income | 502,685 | 617,231 | 491,596 | (851,229 | ) | 760,283 | ||||||||||||||
Interest expense, net | (29,729 | ) | (11,685 | ) | (11,568 | ) | — | (52,982 | ) | |||||||||||
Other expense, net | — | (767 | ) | (13,513 | ) | — | (14,280 | ) | ||||||||||||
Earnings before income taxes | 472,956 | 604,779 | 466,515 | (851,229 | ) | 693,021 | ||||||||||||||
Provision for income taxes | 12,574 | (99,015 | ) | (118,260 | ) | — | (204,701 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 485,530 | 505,764 | 348,255 | (851,229 | ) | 488,320 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (2,790 | ) | — | (2,790 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 485,530 | $ | 505,764 | $ | 345,465 | $ | (851,229 | ) | $ | 485,530 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 488,363 | $ | 508,929 | $ | 316,484 | $ | (825,413 | ) | $ | 488,363 | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Sales | $ | — | $ | 1,833,613 | $ | 3,272,519 | $ | (354,793 | ) | $ | 4,751,339 | |||||||||
Cost of sales | — | (1,190,206 | ) | (2,334,975 | ) | 354,793 | (3,170,388 | ) | ||||||||||||
Gross profit | — | 643,407 | 937,544 | — | 1,580,951 | |||||||||||||||
Selling, general and administrative expense | (3,571 | ) | (390,713 | ) | (527,841 | ) | — | (922,125 | ) | |||||||||||
Net earnings from affiliates | — | 3,855 | 13,097 | — | 16,952 | |||||||||||||||
Net earnings from consolidated subsidiaries, net of tax | 456,740 | 309,223 | — | (765,963 | ) | — | ||||||||||||||
Operating income | 453,169 | 565,772 | 422,800 | (765,963 | ) | 675,778 | ||||||||||||||
Interest expense, net | (9,881 | ) | (19,347 | ) | (13,338 | ) | — | (42,566 | ) | |||||||||||
Other expense income, net | — | (683 | ) | (20,964 | ) | — | (21,647 | ) | ||||||||||||
Earnings before income taxes | 443,288 | 545,742 | 388,498 | (765,963 | ) | 611,565 | ||||||||||||||
Provision for income taxes | 5,051 | (89,002 | ) | (76,815 | ) | — | (160,766 | ) | ||||||||||||
Net earnings, including noncontrolling interests | 448,339 | 456,740 | 311,683 | (765,963 | ) | 450,799 | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | (2,460 | ) | — | (2,460 | ) | |||||||||||||
Net earnings attributable to Flowserve Corporation | $ | 448,339 | $ | 456,740 | $ | 309,223 | $ | (765,963 | ) | $ | 448,339 | |||||||||
Comprehensive income attributable to Flowserve Corporation | $ | 440,127 | $ | 446,536 | $ | 292,167 | $ | (738,703 | ) | $ | 440,127 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 353,736 | $ | 611,190 | $ | 524,113 | $ | (918,077 | ) | $ | 570,962 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (57,125 | ) | (75,494 | ) | — | (132,619 | ) | ||||||||||||
Proceeds from sale of business, net of cash divested | — | — | 46,805 | — | 46,805 | |||||||||||||||
Intercompany short-term financing, net | — | — | 1,429 | (1,429 | ) | — | ||||||||||||||
Intercompany loan proceeds | 40,000 | 126 | 143,820 | (183,946 | ) | — | ||||||||||||||
Intercompany loan payments | — | (11,172 | ) | — | 11,172 | — | ||||||||||||||
Intercompany return of capital | — | 1,965 | — | (1,965 | ) | — | ||||||||||||||
Proceeds from disposal of assets | — | 162 | 1,569 | — | 1,731 | |||||||||||||||
Net cash flows provided (used) by investing activities | 40,000 | (66,044 | ) | 118,129 | (176,168 | ) | (84,083 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 6,579 | 2,008 | — | 8,587 | |||||||||||||||
Payments on long-term debt | (40,000 | ) | — | — | — | (40,000 | ) | |||||||||||||
Proceeds under other financing arrangements | — | — | 18,483 | — | 18,483 | |||||||||||||||
Payments under other financing arrangements | — | (5 | ) | (20,497 | ) | — | (20,502 | ) | ||||||||||||
Repurchases of common shares | (246,504 | ) | — | — | — | (246,504 | ) | |||||||||||||
Payments of dividends | (85,118 | ) | — | — | — | (85,118 | ) | |||||||||||||
Intercompany short-term financing, net | — | (1,429 | ) | — | 1,429 | — | ||||||||||||||
Intercompany loan proceeds | — | — | 11,172 | (11,172 | ) | — | ||||||||||||||
Intercompany loan payments | — | (183,819 | ) | (126 | ) | 183,945 | — | |||||||||||||
Intercompany distributions of capital | — | — | (1,965 | ) | 1,965 | — | ||||||||||||||
Intercompany dividends | — | (366,472 | ) | (551,606 | ) | 918,078 | — | |||||||||||||
All other financing, net | — | — | (2,604 | ) | — | (2,604 | ) | |||||||||||||
Net cash flows used by financing activities | (371,622 | ) | (545,146 | ) | (545,135 | ) | 1,094,245 | (367,658 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (32,675 | ) | — | (32,675 | ) | |||||||||||||
Net change in cash and cash equivalents | 22,114 | — | 64,432 | — | 86,546 | |||||||||||||||
Cash and cash equivalents at beginning of year | 29,086 | — | 334,718 | — | 363,804 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 51,200 | $ | — | $ | 399,150 | $ | — | $ | 450,350 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 261,741 | $ | 279,594 | $ | 214,066 | $ | (267,642 | ) | $ | 487,759 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (44,380 | ) | (94,710 | ) | — | (139,090 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | — | (66,658 | ) | (10,143 | ) | — | (76,801 | ) | ||||||||||||
Intercompany loan proceeds | 30,000 | 911 | 72,037 | (102,948 | ) | — | ||||||||||||||
Intercompany loan payments | — | (68 | ) | (173,510 | ) | 173,578 | — | |||||||||||||
Proceeds from disposal of assets | — | 110 | 1,543 | — | 1,653 | |||||||||||||||
Proceeds from equity investment in affiliates | — | — | 46,240 | — | 46,240 | |||||||||||||||
Net cash flows provided (used) by investing activities | 30,000 | (110,085 | ) | (158,543 | ) | 70,630 | (167,998 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 8,266 | 1,845 | — | 10,111 | |||||||||||||||
Payments on long-term debt | (25,000 | ) | — | — | — | (25,000 | ) | |||||||||||||
Proceeds from issuance of senior notes | 298,596 | — | — | — | 298,596 | |||||||||||||||
Proceeds under other financing arrangements | — | — | 10,674 | — | 10,674 | |||||||||||||||
Payments under other financing arrangements | — | (20 | ) | (11,055 | ) | — | (11,075 | ) | ||||||||||||
Repurchases of common shares | (458,310 | ) | — | — | — | (458,310 | ) | |||||||||||||
Payments of dividends | (76,897 | ) | — | — | — | (76,897 | ) | |||||||||||||
Payment of deferred loan costs | (3,744 | ) | — | — | — | (3,744 | ) | |||||||||||||
Intercompany loan proceeds | — | 173,510 | 68 | (173,578 | ) | — | ||||||||||||||
Intercompany loan payments | — | (102,037 | ) | (911 | ) | 102,948 | — | |||||||||||||
Intercompany dividends | — | (249,228 | ) | (18,414 | ) | 267,642 | — | |||||||||||||
All other financing, net | 91 | — | (270 | ) | — | (179 | ) | |||||||||||||
Net cash flows used by financing activities | (265,264 | ) | (169,509 | ) | (18,063 | ) | 197,012 | (255,824 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (4,385 | ) | — | (4,385 | ) | |||||||||||||
Net change in cash and cash equivalents | 26,477 | — | 33,075 | — | 59,552 | |||||||||||||||
Cash and cash equivalents at beginning of year | 2,609 | — | 301,643 | — | 304,252 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 29,086 | $ | — | $ | 334,718 | $ | — | $ | 363,804 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent (Issuer) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Net cash flows provided by operating activities | $ | 277,076 | $ | 193,819 | $ | 298,616 | $ | (252,381 | ) | $ | 517,130 | |||||||||
Cash flows — Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (43,600 | ) | (91,939 | ) | — | (135,539 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | — | — | (3,996 | ) | — | (3,996 | ) | |||||||||||||
Intercompany loan proceeds | 12,499 | 32,705 | 54,746 | (99,950 | ) | — | ||||||||||||||
Intercompany loan payments | — | (28,372 | ) | (138,918 | ) | 167,290 | — | |||||||||||||
Intercompany capital contribution | — | (483 | ) | — | 483 | — | ||||||||||||||
Proceeds from disposal of assets | — | 2,268 | 14,665 | — | 16,933 | |||||||||||||||
Affiliate investment activity, net | — | — | (3,825 | ) | — | (3,825 | ) | |||||||||||||
Net cash flows provided (used) by investing activities | 12,499 | (37,482 | ) | (169,267 | ) | 67,823 | (126,427 | ) | ||||||||||||
Cash flows — Financing activities: | ||||||||||||||||||||
Excess tax benefits from stock-based payment arrangements | — | 8,985 | 2,222 | — | 11,207 | |||||||||||||||
Payments on long-term debt | (480,000 | ) | — | — | — | (480,000 | ) | |||||||||||||
Proceeds from issuance of senior notes | 498,075 | — | — | — | 498,075 | |||||||||||||||
Proceeds from issuance of long-term debt | 400,000 | — | — | — | 400,000 | |||||||||||||||
Proceeds under other financing arrangements | — | — | 15,886 | — | 15,886 | |||||||||||||||
Payments under other financing arrangements | 9 | (20 | ) | (10,068 | ) | — | (10,079 | ) | ||||||||||||
Repurchase of common shares | (771,942 | ) | — | — | — | (771,942 | ) | |||||||||||||
Payment of dividends | (73,765 | ) | — | — | — | (73,765 | ) | |||||||||||||
Payment of deferred loan costs | (9,901 | ) | — | — | — | (9,901 | ) | |||||||||||||
Intercompany loan proceeds | — | 138,918 | 28,372 | (167,290 | ) | — | ||||||||||||||
Intercompany loan payments | — | (67,245 | ) | (32,705 | ) | 99,950 | — | |||||||||||||
Intercompany capital contribution | — | — | 483 | (483 | ) | — | ||||||||||||||
Intercompany dividends | — | (236,975 | ) | (15,406 | ) | 252,381 | — | |||||||||||||
All other financing, net | 250 | — | (8,653 | ) | — | (8,403 | ) | |||||||||||||
Net cash flows used by financing activities | (437,274 | ) | (156,337 | ) | (19,869 | ) | 184,558 | (428,922 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 5,115 | — | 5,115 | |||||||||||||||
Net change in cash and cash equivalents | (147,699 | ) | — | 114,595 | — | (33,104 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 150,308 | — | 187,048 | — | 337,356 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 2,609 | $ | — | $ | 301,643 | $ | — | $ | 304,252 | ||||||||||
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. The increase in 2014 is primarily due to inclusion of the U.S. Qualified Plan which has a net liability position at December 31, 2014. | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Benefit Obligation | $ | 619,756 | $ | 367,460 | ||||||||||||||||||||||||||||
Accumulated benefit obligation | 600,017 | 346,684 | ||||||||||||||||||||||||||||||
Fair value of plan assets | 449,141 | 189,827 | ||||||||||||||||||||||||||||||
U.S Defined Benefit Plans | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Assumptions Related to Plans | The following are assumptions related to the U.S. defined benefit pension plans: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligations: | ||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | 3.75 | % | ||||||||||||||||||||||||||
Rate of increase in compensation levels | 4.25 | 4.25 | 4.25 | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine net pension expense: | ||||||||||||||||||||||||||||||||
Long-term rate of return on assets | 6 | % | 6 | % | 6.25 | % | ||||||||||||||||||||||||||
Discount rate | 4.5 | 3.75 | 4.5 | |||||||||||||||||||||||||||||
Rate of increase in compensation levels | 4.25 | 4.25 | 4.25 | |||||||||||||||||||||||||||||
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 22,981 | $ | 23,355 | $ | 21,222 | ||||||||||||||||||||||||||
Interest cost | 17,429 | 15,089 | 16,458 | |||||||||||||||||||||||||||||
Expected return on plan assets | (21,985 | ) | (19,952 | ) | (21,153 | ) | ||||||||||||||||||||||||||
Settlement and curtailment of benefits | — | (28 | ) | — | ||||||||||||||||||||||||||||
Amortization of unrecognized prior service benefit | 475 | (87 | ) | (1,238 | ) | |||||||||||||||||||||||||||
Amortization of unrecognized net loss | 8,428 | 14,280 | 12,177 | |||||||||||||||||||||||||||||
U.S. net pension expense | $ | 27,328 | $ | 32,657 | $ | 27,466 | ||||||||||||||||||||||||||
Schedule of Funded Status | The following summarizes the net pension (liability) asset for U.S. plans: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Plan assets, at fair value | $ | 426,784 | $ | 410,462 | ||||||||||||||||||||||||||||
Benefit Obligation | (447,552 | ) | (405,812 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (20,768 | ) | $ | 4,650 | |||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for U.S. plans: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 14,355 | ||||||||||||||||||||||||||||
Current liabilities | (260 | ) | (500 | ) | ||||||||||||||||||||||||||||
Noncurrent liabilities | (20,508 | ) | (9,205 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (20,768 | ) | $ | 4,650 | |||||||||||||||||||||||||||
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 405,812 | $ | 423,547 | ||||||||||||||||||||||||||||
Service cost | 22,981 | 23,355 | ||||||||||||||||||||||||||||||
Interest cost | 17,429 | 15,089 | ||||||||||||||||||||||||||||||
Plan amendments | 2,387 | — | ||||||||||||||||||||||||||||||
Actuarial loss (gain)(1) | 32,425 | (22,356 | ) | |||||||||||||||||||||||||||||
Benefits paid | (33,482 | ) | (33,823 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 447,552 | $ | 405,812 | ||||||||||||||||||||||||||||
Accumulated benefit obligations at December 31 | $ | 447,552 | $ | 405,812 | ||||||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | The 2014 actuarial loss primarily reflects the impact of decrease in the discount rate. | |||||||||||||||||||||||||||||||
Schedule of Expected Cash Activity | The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): | |||||||||||||||||||||||||||||||
2015 | $ | 36.6 | ||||||||||||||||||||||||||||||
2016 | 37.4 | |||||||||||||||||||||||||||||||
2017 | 37.9 | |||||||||||||||||||||||||||||||
2018 | 39.9 | |||||||||||||||||||||||||||||||
2019 | 40.5 | |||||||||||||||||||||||||||||||
2020-2024 | 215.8 | |||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | (55,110 | ) | $ | (90,270 | ) | $ | (98,745 | ) | |||||||||||||||||||||||
Amortization of net loss | 5,277 | 8,919 | 7,605 | |||||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 297 | (54 | ) | (773 | ) | |||||||||||||||||||||||||||
Net (loss) gain arising during the year | (17,367 | ) | 26,312 | 1,643 | ||||||||||||||||||||||||||||
Settlement gain | — | (17 | ) | — | ||||||||||||||||||||||||||||
Balance — December 31 | $ | (66,903 | ) | $ | (55,110 | ) | $ | (90,270 | ) | |||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net loss | $ | (64,970 | ) | $ | (54,391 | ) | ||||||||||||||||||||||||||
Unrecognized prior service cost | (1,933 | ) | (719 | ) | ||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (66,903 | ) | $ | (55,110 | ) | ||||||||||||||||||||||||||
Reconciliation of Plan Assets | The following is a reconciliation of the U.S. defined benefit pension plans’ assets: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 410,462 | $ | 380,342 | ||||||||||||||||||||||||||||
Return on plan assets | 29,058 | 39,749 | ||||||||||||||||||||||||||||||
Company contributions | 20,746 | 24,194 | ||||||||||||||||||||||||||||||
Benefits paid | (33,482 | ) | (33,823 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 426,784 | $ | 410,462 | ||||||||||||||||||||||||||||
Allocation of Plan Assets | The asset allocations for the qualified plan at the end of 2014 and 2013 by asset category, are as follows: | |||||||||||||||||||||||||||||||
Target Allocation | Percentage of Actual Plan Assets at December 31, | |||||||||||||||||||||||||||||||
at December 31, | ||||||||||||||||||||||||||||||||
Asset category | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
U.S. Large Cap | 19 | % | 19 | % | 19 | % | 20 | % | ||||||||||||||||||||||||
U.S. Small Cap | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||||||||
International Large Cap | 14 | % | 14 | % | 14 | % | 14 | % | ||||||||||||||||||||||||
Emerging Markets | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||||||||
World Equity | 8 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||||||||
Equity securities | 50 | % | 50 | % | 50 | % | 51 | % | ||||||||||||||||||||||||
Liability Driven Investment | 40 | % | 40 | % | 40 | % | 39 | % | ||||||||||||||||||||||||
Long-Term Government / Credit | 10 | % | 10 | % | 10 | % | 10 | % | ||||||||||||||||||||||||
Fixed income | 50 | % | 50 | % | 50 | % | 49 | % | ||||||||||||||||||||||||
Other(1) | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | Less than 1% of holdings are in the Other category in 2014 and 2013. | |||||||||||||||||||||||||||||||
The fair values of our U.S. defined benefit plan assets were: | ||||||||||||||||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||||||||
Hierarchical Levels | Hierarchical Levels | |||||||||||||||||||||||||||||||
Total | I | II | III | Total | I | II | III | |||||||||||||||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40 | $ | 40 | $ | — | $ | — | $ | 2,860 | $ | 2,860 | $ | — | $ | — | ||||||||||||||||
Commingled Funds: | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
U.S. Large Cap(a) | 82,355 | — | 82,355 | — | 81,004 | — | 81,004 | — | ||||||||||||||||||||||||
U.S. Small Cap(b) | 17,422 | — | 17,422 | — | 17,136 | — | 17,136 | — | ||||||||||||||||||||||||
International Large Cap(c) | 56,716 | — | 56,716 | — | 58,675 | — | 58,675 | — | ||||||||||||||||||||||||
Emerging Markets(d) | 19,175 | — | 19,175 | — | 19,772 | — | 19,772 | — | ||||||||||||||||||||||||
World Equity(e) | 34,384 | — | 34,384 | — | 34,069 | — | 34,069 | — | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Liability Driven Investment (f) | 172,758 | — | 172,758 | — | 157,638 | — | 157,638 | — | ||||||||||||||||||||||||
Long-Term Government/Credit(g) | 43,934 | — | 43,934 | — | 39,308 | — | 39,308 | — | ||||||||||||||||||||||||
$ | 426,784 | $ | 40 | $ | 426,744 | $ | — | $ | 410,462 | $ | 2,860 | $ | 407,602 | $ | — | |||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | U.S. Large Cap funds seek to outperform the Russell 1000 (R) Index with investments in large and medium capitalization U.S. companies represented in the Russell 1000 (R) Index, which is composed of the largest 1,000 U.S. equities as determined by market capitalization. | |||||||||||||||||||||||||||||||
(b) | U.S. Small Cap funds seek to outperform the Russell 2000 (R) Index with investments in medium and small capitalization U.S. companies represented in the Russell 2000 (R) Index, which is composed of the smallest 2,000 U.S. equities as determined by market capitalization. | |||||||||||||||||||||||||||||||
(c) | International Large Cap funds seek to outperform the MSCI Europe, Australia, and Far East Index with investments in most of the developed nations of the world so as to maintain a high degree of diversification among countries and currencies. | |||||||||||||||||||||||||||||||
(d) | Emerging Markets funds represent a diversified portfolio that seeks high, long-term returns comparable to investments in emerging markets by investing in stocks from newly developed emerging market economies. | |||||||||||||||||||||||||||||||
(e) | World Equity funds seek to outperform the Russell Developed Large Cap Index Net over a full market cycle. The fund's goal is to provide a favorable total return relative to the benchmark, primarily through long-term capital appreciation. | |||||||||||||||||||||||||||||||
(f) | LDI funds seek to outperform the Barclays-Russell LDI Index by investing in high quality, mostly corporate bonds and fixed income securities that closely match those found in discount curves used to value the plan's liabilities. | |||||||||||||||||||||||||||||||
(g) | Long-Term Government/Credit funds seek to outperform the Barclays Capital U.S. Long-Term Government/Credit Index by generating excess return through a variety of diversified strategies in securities with longer durations, such as sector rotation, security selection and tactical use of high-yield bonds. | |||||||||||||||||||||||||||||||
Non-U.S Defined Benefit Plans | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Assumptions Related to Plans | The following are assumptions related to the non-U.S. defined benefit pension plans: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligations: | ||||||||||||||||||||||||||||||||
Discount rate | 3.4 | % | 4.22 | % | 4.16 | % | ||||||||||||||||||||||||||
Rate of increase in compensation levels | 3.95 | 3.83 | 3.84 | |||||||||||||||||||||||||||||
Weighted average assumptions used to determine net pension expense: | ||||||||||||||||||||||||||||||||
Long-term rate of return on assets | 5.51 | % | 5.49 | % | 5.78 | % | ||||||||||||||||||||||||||
Discount rate | 4.22 | 4.16 | 5.09 | |||||||||||||||||||||||||||||
Rate of increase in compensation levels | 3.83 | 3.84 | 3.56 | |||||||||||||||||||||||||||||
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net pension expense for non-U.S. defined benefit pension plans was: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 6,857 | $ | 6,819 | $ | 4,681 | ||||||||||||||||||||||||||
Interest cost | 14,576 | 13,486 | 13,724 | |||||||||||||||||||||||||||||
Expected return on plan assets | (10,581 | ) | (9,200 | ) | (8,542 | ) | ||||||||||||||||||||||||||
Amortization of unrecognized net loss | 6,962 | 6,650 | 4,020 | |||||||||||||||||||||||||||||
Settlement and other | 314 | 134 | 43 | |||||||||||||||||||||||||||||
Non-U.S. net pension expense | $ | 18,128 | $ | 17,889 | $ | 13,926 | ||||||||||||||||||||||||||
Schedule of Funded Status | The following summarizes the net pension liability for non-U.S. plans: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Plan assets, at fair value | $ | 215,360 | $ | 195,042 | ||||||||||||||||||||||||||||
Benefit Obligation | (361,351 | ) | (363,425 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (145,991 | ) | $ | (168,383 | ) | ||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for non-U.S. plans: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
\ | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Noncurrent assets | $ | 5,204 | $ | 52 | ||||||||||||||||||||||||||||
Current liabilities | (7,960 | ) | (9,048 | ) | ||||||||||||||||||||||||||||
Noncurrent liabilities | (143,235 | ) | (159,387 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (145,991 | ) | $ | (168,383 | ) | ||||||||||||||||||||||||||
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 363,425 | $ | 340,348 | ||||||||||||||||||||||||||||
Service cost | 6,857 | 6,819 | ||||||||||||||||||||||||||||||
Interest cost | 14,576 | 13,486 | ||||||||||||||||||||||||||||||
Employee contributions | 272 | 267 | ||||||||||||||||||||||||||||||
Plan amendments and other | 162 | 1,573 | ||||||||||||||||||||||||||||||
Actuarial loss(1) | 28,430 | 8,664 | ||||||||||||||||||||||||||||||
Net benefits and expenses paid | (17,985 | ) | (16,491 | ) | ||||||||||||||||||||||||||||
Currency translation impact(2) | (34,386 | ) | 8,759 | |||||||||||||||||||||||||||||
Balance — December 31 | $ | 361,351 | $ | 363,425 | ||||||||||||||||||||||||||||
Accumulated benefit obligations at December 31 | $ | 335,282 | $ | 340,223 | ||||||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | The 2014 actuarial losses primarily reflect the impact of decrease in the discount rates in all countries except for Venezuela. | |||||||||||||||||||||||||||||||
-2 | The currency translation impact reflects the strengthening of the U.S. dollar against our significant currencies, primarily the Euro and British pound. | |||||||||||||||||||||||||||||||
Schedule of Expected Cash Activity | The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): | |||||||||||||||||||||||||||||||
2015 | $ | 15.2 | ||||||||||||||||||||||||||||||
2016 | 13.4 | |||||||||||||||||||||||||||||||
2017 | 13.7 | |||||||||||||||||||||||||||||||
2018 | 14.7 | |||||||||||||||||||||||||||||||
2019 | 16.3 | |||||||||||||||||||||||||||||||
2020-2024 | 92.1 | |||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | (78,863 | ) | $ | (76,197 | ) | $ | (43,110 | ) | |||||||||||||||||||||||
Amortization of net loss | 5,262 | 4,999 | 2,985 | |||||||||||||||||||||||||||||
Net loss arising during the year | (3,709 | ) | (6,091 | ) | (33,692 | ) | ||||||||||||||||||||||||||
Settlement loss | 216 | 93 | 100 | |||||||||||||||||||||||||||||
Prior service benefit arising during the year | 141 | 137 | 32 | |||||||||||||||||||||||||||||
Currency translation impact and other | 7,355 | (1,804 | ) | (2,512 | ) | |||||||||||||||||||||||||||
Balance — December 31 | $ | (69,598 | ) | $ | (78,863 | ) | $ | (76,197 | ) | |||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net loss | $ | (69,161 | ) | $ | (77,379 | ) | ||||||||||||||||||||||||||
Unrecognized prior service cost | (437 | ) | (1,484 | ) | ||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (69,598 | ) | $ | (78,863 | ) | ||||||||||||||||||||||||||
Reconciliation of Plan Assets | The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 195,042 | $ | 173,017 | ||||||||||||||||||||||||||||
Return on plan assets | 30,246 | 10,480 | ||||||||||||||||||||||||||||||
Employee contributions | 272 | 267 | ||||||||||||||||||||||||||||||
Company contributions | 22,740 | 22,695 | ||||||||||||||||||||||||||||||
Currency translation impact and other | (14,955 | ) | 5,074 | |||||||||||||||||||||||||||||
Net benefits and expenses paid | (17,985 | ) | (16,491 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 215,360 | $ | 195,042 | ||||||||||||||||||||||||||||
Allocation of Plan Assets | The asset allocations for the non-U.S. defined benefit pension plans at the end of 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||||
Target Allocation at | Percentage of Actual Plan | |||||||||||||||||||||||||||||||
December 31, | Assets at December 31, | |||||||||||||||||||||||||||||||
Asset category | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
North American Companies | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||||||||||
U.K. Companies | 9 | % | 10 | % | 9 | % | 10 | % | ||||||||||||||||||||||||
European Companies | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||||||||
Asian Pacific Companies | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||||||||||
Global Equity | 8 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||||||||
Equity securities | 27 | % | 28 | % | 27 | % | 28 | % | ||||||||||||||||||||||||
U.K. Government Gilt Index | 30 | % | 28 | % | 30 | % | 28 | % | ||||||||||||||||||||||||
U.K. Corporate Bond Index | 22 | % | 21 | % | 22 | % | 21 | % | ||||||||||||||||||||||||
Global Fixed Income Bond | 19 | % | 20 | % | 19 | % | 20 | % | ||||||||||||||||||||||||
Fixed income | 71 | % | 69 | % | 71 | % | 69 | % | ||||||||||||||||||||||||
Other | 2 | % | 3 | % | 2 | % | 3 | % | ||||||||||||||||||||||||
The fair values of the non-U.S. assets were: | ||||||||||||||||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||||||||||||||
Hierarchical Levels | Hierarchical Levels | |||||||||||||||||||||||||||||||
Total | I | II | III | Total | I | II | III | |||||||||||||||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||||||||||||||||||||
Cash | $ | 24 | $ | 24 | $ | — | $ | — | $ | 189 | $ | 189 | $ | — | $ | — | ||||||||||||||||
Commingled Funds: | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
North American Companies(a) | 7,155 | — | 7,155 | — | 6,459 | — | 6,459 | — | ||||||||||||||||||||||||
U.K. Companies(b) | 18,829 | — | 18,829 | — | 19,448 | — | 19,448 | — | ||||||||||||||||||||||||
European Companies (c) | 8,018 | — | 8,018 | — | 8,060 | — | 8,060 | — | ||||||||||||||||||||||||
Asian Pacific Companies(d) | 5,367 | — | 5,367 | — | 5,613 | — | 5,613 | — | ||||||||||||||||||||||||
Global Equity(e) | 17,120 | — | 17,120 | — | 16,046 | — | 16,046 | — | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
U.K. Government Gilt Index(f) | 65,161 | — | 65,161 | — | 55,078 | — | 55,078 | — | ||||||||||||||||||||||||
U.K. Corporate Bond Index(g) | 47,683 | — | 47,683 | — | 40,039 | — | 40,039 | — | ||||||||||||||||||||||||
Global Fixed Income Bond(h) | 40,820 | — | 40,820 | — | 38,335 | — | 38,335 | — | ||||||||||||||||||||||||
Other(i) | 5,183 | — | — | 5,183 | 5,775 | — | — | 5,775 | ||||||||||||||||||||||||
$ | 215,360 | $ | 24 | $ | 210,153 | $ | 5,183 | $ | 195,042 | $ | 189 | $ | 189,078 | $ | 5,775 | |||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
(a) | North American Companies represents U.S. and Canadian large cap equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). | |||||||||||||||||||||||||||||||
(b) | U.K. Companies represents a U.K. equity index fund, which is passively managed and tracks the FTSE All-Share Index. | |||||||||||||||||||||||||||||||
(c) | European companies represents a European equity index fund, which is passively managed and tracks the FTSE All-World Developed Europe Ex-U.K. Index. | |||||||||||||||||||||||||||||||
(d) | Asian Pacific Companies represents Japanese and Pacific Rim equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World Japan Index and FTSE All-World Developed Asia Pacific Ex-Japan Index). | |||||||||||||||||||||||||||||||
(e) | Global Equity represents actively managed, global equity funds taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. | |||||||||||||||||||||||||||||||
(f) | U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed and track the respective benchmarks (FTSE U.K. Gilt Index-Linked Over 5 Years Index, FTSE U.K. Gilt Over 15 Years Index and FTSE U.K. Gilt Index-Linked Over 25 Years Index). | |||||||||||||||||||||||||||||||
(g) | U.K. Corporate Bond Index represents U.K. corporate bond investments, which are passively managed and track the iBoxx Over 15 years £ Non-Gilt Index. | |||||||||||||||||||||||||||||||
(h) | Global Fixed Income Bond represents mostly European fixed income investment funds that are actively managed, diversified and primarily invested in traditional government bonds, high-quality corporate bonds, asset backed securities, emerging market debt and high yield corporate bonds. | |||||||||||||||||||||||||||||||
(i) | Includes assets held by plans outside the U.K. and The Netherlands. Details, including Level III rollforward details, have not been provided due to immateriality. | |||||||||||||||||||||||||||||||
Postretirement Medical Benefits | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||
Schedule of Assumptions Related to Plans | The following are assumptions related to postretirement benefits: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine Benefit Obligation: | ||||||||||||||||||||||||||||||||
Discount rate | 3.75 | % | 4 | % | 3.25 | % | ||||||||||||||||||||||||||
Weighted average assumptions used to determine net expense: | ||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 3.25 | % | 4.25 | % | ||||||||||||||||||||||||||
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net postretirement benefit income for postretirement medical plans was: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 6 | $ | 11 | ||||||||||||||||||||||||||
Interest cost | 1,200 | 1,066 | 1,462 | |||||||||||||||||||||||||||||
Amortization of unrecognized prior service benefit | — | — | (41 | ) | ||||||||||||||||||||||||||||
Amortization of unrecognized net gain | (1,220 | ) | (1,280 | ) | (1,542 | ) | ||||||||||||||||||||||||||
Net postretirement benefit income | $ | (17 | ) | $ | (208 | ) | $ | (110 | ) | |||||||||||||||||||||||
Schedule of Funded Status | The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Postretirement Benefit Obligation | $ | 33,019 | $ | 31,477 | ||||||||||||||||||||||||||||
Funded status | $ | (33,019 | ) | $ | (31,477 | ) | ||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Current liabilities | $ | (3,799 | ) | $ | (4,013 | ) | ||||||||||||||||||||||||||
Noncurrent liabilities | (29,220 | ) | (27,464 | ) | ||||||||||||||||||||||||||||
Funded status | $ | (33,019 | ) | $ | (31,477 | ) | ||||||||||||||||||||||||||
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a reconciliation of the postretirement Benefit Obligation: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 31,477 | $ | 34,967 | ||||||||||||||||||||||||||||
Service cost | 3 | 6 | ||||||||||||||||||||||||||||||
Interest cost | 1,200 | 1,066 | ||||||||||||||||||||||||||||||
Employee contributions | 901 | 2,151 | ||||||||||||||||||||||||||||||
Medicare subsidies receivable | 453 | 789 | ||||||||||||||||||||||||||||||
Actuarial loss (gain) | 1,779 | (857 | ) | |||||||||||||||||||||||||||||
Plan Amendments | 2,339 | — | ||||||||||||||||||||||||||||||
Net benefits and expenses paid | (5,133 | ) | (6,645 | ) | ||||||||||||||||||||||||||||
Balance — December 31 | $ | 33,019 | $ | 31,477 | ||||||||||||||||||||||||||||
Schedule of Expected Cash Activity | The following presents expected benefit payments for future periods (amounts in millions): | |||||||||||||||||||||||||||||||
Expected | Medicare | |||||||||||||||||||||||||||||||
Payments | Subsidy | |||||||||||||||||||||||||||||||
2015 | $ | 3.9 | $ | 0.1 | ||||||||||||||||||||||||||||
2016 | 3.7 | 0.1 | ||||||||||||||||||||||||||||||
2017 | 3.5 | 0.1 | ||||||||||||||||||||||||||||||
2018 | 3.3 | 0.1 | ||||||||||||||||||||||||||||||
2019 | 3 | 0.1 | ||||||||||||||||||||||||||||||
2020-2024 | 11.2 | 0.5 | ||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Balance — January 1 | $ | 4,445 | $ | 4,710 | $ | 7,081 | ||||||||||||||||||||||||||
Amortization of net gain | (764 | ) | (800 | ) | (963 | ) | ||||||||||||||||||||||||||
Amortization of prior service cost | (1,464 | ) | — | (26 | ) | |||||||||||||||||||||||||||
Net gain (loss) arising during the year | (1,114 | ) | 535 | (1,382 | ) | |||||||||||||||||||||||||||
Balance — December 31 | $ | 1,103 | $ | 4,445 | $ | 4,710 | ||||||||||||||||||||||||||
Amounts recorded in accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Unrecognized net gain | $ | 2,788 | $ | 4,445 | ||||||||||||||||||||||||||||
Unrecognized prior service cost | (1,685 | ) | — | |||||||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | $ | 1,103 | $ | 4,445 | ||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effect on the 2014 reported amounts (in thousands): | |||||||||||||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||||||||||||||
Effect on postretirement Benefit Obligation | $ | 245 | $ | (248 | ) | |||||||||||||||||||||||||||
Effect on service cost plus interest cost | 6 | (7 | ) | |||||||||||||||||||||||||||||
Warranty_Reserve_Tables
Warranty Reserve (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||
Schedule of Activity in the Warranty Reserve | The following is a summary of the activity in the warranty reserve: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Balance — January 1 | $ | 37,828 | $ | 35,400 | $ | 38,033 | ||||||
Accruals for warranty expense, net of adjustments | 24,909 | 33,504 | 28,851 | |||||||||
Settlements made | (31,642 | ) | (31,076 | ) | (31,484 | ) | ||||||
Balance — December 31 | $ | 31,095 | $ | 37,828 | $ | 35,400 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Current: | ||||||||||||
U.S. federal | $ | 62,301 | $ | 61,670 | $ | 73,444 | ||||||
Non-U.S. | 123,052 | 112,471 | 101,166 | |||||||||
State and local | 7,422 | 7,537 | 3,454 | |||||||||
Total current | 192,775 | 181,678 | 178,064 | |||||||||
Deferred: | ||||||||||||
U.S. federal | 1,270 | 8,771 | (823 | ) | ||||||||
Non-U.S. | 13,016 | 13,120 | (17,268 | ) | ||||||||
State and local | 1,244 | 1,132 | 793 | |||||||||
Total deferred | 15,530 | 23,023 | (17,298 | ) | ||||||||
Total provision | $ | 208,305 | $ | 204,701 | $ | 160,766 | ||||||
Schedule of Reconciliation Statutory Corporate Rate to Provision for Income Taxes | The provision for income taxes differs from the statutory corporate rate due to the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in millions) | ||||||||||||
Statutory federal income tax at 35% | $ | 256.6 | $ | 242.6 | $ | 214 | ||||||
Foreign impact, net | (58.7 | ) | (40.7 | ) | (50.6 | ) | ||||||
State and local income taxes, net | 8.7 | 8.7 | 4.2 | |||||||||
Other | 1.7 | (5.9 | ) | (6.8 | ) | |||||||
Total | $ | 208.3 | $ | 204.7 | $ | 160.8 | ||||||
Effective tax rate | 28.4 | % | 29.5 | % | 26.3 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of the consolidated deferred tax assets and liabilities were: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets related to: | ||||||||||||
Retirement benefits | $ | 35,501 | $ | 25,798 | ||||||||
Net operating loss carryforwards | 23,483 | 23,943 | ||||||||||
Compensation accruals | 56,903 | 54,518 | ||||||||||
Inventories | 51,528 | 56,487 | ||||||||||
Credit carryforwards | 32,039 | 32,384 | ||||||||||
Warranty and accrued liabilities | 13,913 | 20,626 | ||||||||||
Other | 43,603 | 42,809 | ||||||||||
Total deferred tax assets | 256,970 | 256,565 | ||||||||||
Valuation allowances | (15,378 | ) | (18,058 | ) | ||||||||
Net deferred tax assets | 241,592 | 238,507 | ||||||||||
Deferred tax liabilities related to: | ||||||||||||
Property, plant and equipment | (30,077 | ) | (36,191 | ) | ||||||||
Goodwill and intangibles | (150,741 | ) | (138,635 | ) | ||||||||
Other | (2,182 | ) | (9,269 | ) | ||||||||
Total deferred tax liabilities | (183,000 | ) | (184,095 | ) | ||||||||
Deferred tax assets, net | $ | 58,592 | $ | 54,412 | ||||||||
Schedule of Earnings Before Income Tax | Earnings before income taxes comprised: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
U.S. | $ | 230,896 | $ | 231,179 | $ | 220,684 | ||||||
Non-U.S. | 502,294 | 461,842 | 390,881 | |||||||||
Total | $ | 733,190 | $ | 693,021 | $ | 611,565 | ||||||
Reconciliation of Unrecognized Tax Benefits | A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance — January 1 | $ | 59.3 | $ | 59.1 | $ | 93.8 | ||||||
Gross amount of increases (decreases) in unrecognized tax benefits resulting from tax positions taken: | ||||||||||||
During a prior year | 2.7 | 3.9 | (1.4 | ) | ||||||||
During the current period | 7.2 | 8.9 | 10.3 | |||||||||
Decreases in unrecognized tax benefits relating to: | ||||||||||||
Settlements with taxing authorities | (3.9 | ) | (0.1 | ) | (21.0 | ) | ||||||
Lapse of the applicable statute of limitations | (10.0 | ) | (11.5 | ) | (23.0 | ) | ||||||
(Decreases) increases in unrecognized tax benefits relating to foreign currency translation adjustments | (3.8 | ) | (1.0 | ) | 0.4 | |||||||
Balance — December 31 | $ | 51.5 | $ | 59.3 | $ | 59.1 | ||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Summarized Financial Information of Reportable Segments | The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2014, 2013 and 2012 reconciled to the amounts reported in the consolidated financial statements. | |||||||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||||||||||
Sales to external customers | $2,396,068 | $ | 872,563 | $ | 1,609,254 | $ | 4,877,885 | $ | — | $ | 4,877,885 | |||||||||||||
Intersegment sales | 67,974 | 60,364 | 6,474 | 134,812 | (134,812 | ) | — | |||||||||||||||||
Segment operating income | 427,080 | 125,292 | 322,845 | 875,217 | (85,385 | ) | 789,832 | |||||||||||||||||
Depreciation and amortization | 48,765 | 17,000 | 35,458 | 101,223 | 9,054 | 110,277 | ||||||||||||||||||
Identifiable assets | 2,249,033 | 774,964 | 1,467,756 | 4,491,753 | 476,267 | 4,968,020 | ||||||||||||||||||
Capital expenditures | 65,762 | 18,510 | 37,496 | 121,768 | 10,851 | 132,619 | ||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||||||||||
Sales to external customers | $2,473,731 | $ | 873,389 | $ | 1,607,499 | $ | 4,954,619 | $ | — | $ | 4,954,619 | |||||||||||||
Intersegment sales | 63,365 | 76,779 | 8,213 | 148,357 | (148,357 | ) | — | |||||||||||||||||
Segment operating income | 423,339 | 115,658 | 307,967 | 846,964 | (86,681 | ) | 760,283 | |||||||||||||||||
Depreciation and amortization | 46,494 | 14,122 | 36,590 | 97,206 | 9,186 | 106,392 | ||||||||||||||||||
Identifiable assets | 2,260,961 | 827,155 | 1,520,085 | 4,608,201 | 428,532 | 5,036,733 | ||||||||||||||||||
Capital expenditures | 75,379 | 17,445 | 40,205 | 133,029 | 6,061 | 139,090 | ||||||||||||||||||
Subtotal—Reportable Segments | Eliminations and All Other(1) | Consolidated Total | ||||||||||||||||||||||
EPD | IPD | FCD | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2012: | ||||||||||||||||||||||||
Sales to external customers | $2,338,527 | $ | 863,941 | $ | 1,548,871 | $ | 4,751,339 | $ | — | $ | 4,751,339 | |||||||||||||
Intersegment sales | 64,621 | 89,957 | 8,206 | 162,784 | (162,784 | ) | — | |||||||||||||||||
Segment operating income | 396,082 | 99,526 | 253,398 | 749,006 | (73,228 | ) | 675,778 | |||||||||||||||||
Depreciation and amortization | 48,007 | 13,408 | 36,418 | 97,833 | 9,393 | 107,226 | ||||||||||||||||||
Identifiable assets | 2,223,791 | 745,276 | 1,485,686 | 4,454,753 | 356,205 | 4,810,958 | ||||||||||||||||||
Capital expenditures | 64,038 | 17,351 | 46,239 | 127,628 | 7,911 | 135,539 | ||||||||||||||||||
Schedule of Sales and Long-lived Assets by Geographic Area | Sales and long-lived assets by geographic area are as follows: | |||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,724,392 | 35.4 | % | $ | 386,489 | 41.6 | % | ||||||||||||||||
EMA(1) | 1,991,638 | 40.8 | % | 268,334 | 28.9 | % | ||||||||||||||||||
Asia(2) | 571,195 | 11.7 | % | 126,878 | 13.7 | % | ||||||||||||||||||
Other(3) | 590,660 | 12.1 | % | 147,145 | 15.8 | % | ||||||||||||||||||
Consolidated total | $ | 4,877,885 | 100 | % | $ | 928,846 | 100 | % | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,699,053 | 34.3 | % | $ | 374,125 | 41.5 | % | ||||||||||||||||
EMA(1) | 2,102,428 | 42.4 | % | 287,071 | 31.8 | % | ||||||||||||||||||
Asia(2) | 552,383 | 11.2 | % | 124,619 | 13.8 | % | ||||||||||||||||||
Other(3) | 600,755 | 12.1 | % | 115,904 | 12.9 | % | ||||||||||||||||||
Consolidated total | $ | 4,954,619 | 100 | % | $ | 901,719 | 100 | % | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Sales | Percentage | Long-Lived | Percentage | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
(Amounts in thousands, except percentages) | ||||||||||||||||||||||||
United States | $ | 1,597,737 | 33.6 | % | $ | 332,667 | 39.6 | % | ||||||||||||||||
EMA(1) | 2,054,809 | 43.2 | % | 273,274 | 32.5 | % | ||||||||||||||||||
Asia(2) | 548,589 | 11.6 | % | 122,911 | 14.6 | % | ||||||||||||||||||
Other(3) | 550,204 | 11.6 | % | 111,257 | 13.3 | % | ||||||||||||||||||
Consolidated total | $ | 4,751,339 | 100 | % | $ | 840,109 | 100 | % | ||||||||||||||||
___________________________________ | ||||||||||||||||||||||||
-1 | "EMA" includes Europe, the Middle East and Africa. No individual country within this group represents 10% or more of consolidated totals for any period presented. | |||||||||||||||||||||||
-2 | "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. | |||||||||||||||||||||||
-3 | "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Amounts in thousands) | Foreign currency translation items(1) | Pension and other post-retirement effects | Cash flow hedging activity | Total(1) | Foreign currency translation items(1) | Pension and other post-retirement effects | Cash flow hedging activity | Total(1) | ||||||||||||||||||||||||
Balance - January 1 | $ | (89,953 | ) | $ | (129,528 | ) | $ | (814 | ) | $ | (220,295 | ) | $ | (61,083 | ) | $ | (161,757 | ) | $ | (254 | ) | $ | (223,094 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (150,357 | ) | (16,300 | ) | (5,342 | ) | (171,999 | ) | (30,087 | ) | 18,951 | (1,501 | ) | (12,637 | ) | |||||||||||||||||
Amounts | 1,777 | 10,430 | 946 | 13,153 | 1,217 | 13,278 | 941 | 15,436 | ||||||||||||||||||||||||
reclassified | ||||||||||||||||||||||||||||||||
from AOCL | ||||||||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | (148,580 | ) | (5,870 | ) | (4,396 | ) | (158,846 | ) | (28,870 | ) | 32,229 | (560 | ) | 2,799 | ||||||||||||||||||
Balance - December 31 | $ | (238,533 | ) | $ | (135,398 | ) | $ | (5,210 | ) | $ | (379,141 | ) | $ | (89,953 | ) | $ | (129,528 | ) | $ | (814 | ) | $ | (220,295 | ) | ||||||||
_______________________________________ | ||||||||||||||||||||||||||||||||
-1 | Includes foreign currency translation adjustments attributable to noncontrolling interests of $1.3 million for December 31, 2014 and $1.2 million for both December 31, 2013 and 2012. Foreign currency translation impact primarily represents the weakening of the Euro exchange rate versus the U.S. dollar for the period. | |||||||||||||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCL: | |||||||||||||||||||||||||||||||
(Amounts in thousands) | Affected line item in the statement of income | 2014(1) | 2013(1) | |||||||||||||||||||||||||||||
Foreign currency translation items | ||||||||||||||||||||||||||||||||
Release of cumulative translation adjustments upon sale of equity method investment | Net earnings from affiliates | $ | — | $ | (1,217 | ) | ||||||||||||||||||||||||||
Release of cumulative translation | Selling, general and | (1,777 | ) | — | ||||||||||||||||||||||||||||
adjustments due to sale of business | administrative expense | |||||||||||||||||||||||||||||||
Tax (expense) benefit | — | — | ||||||||||||||||||||||||||||||
Net of tax | $ | (1,777 | ) | $ | (1,217 | ) | ||||||||||||||||||||||||||
Cash flow hedging activity | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | $ | (1,534 | ) | $ | (1,506 | ) | |||||||||||||||||||||||||
Tax benefit | 588 | 565 | ||||||||||||||||||||||||||||||
Net of tax | $ | (946 | ) | $ | (941 | ) | ||||||||||||||||||||||||||
Pension and other postretirement effects | ||||||||||||||||||||||||||||||||
Amortization of actuarial losses(2) | $ | (13,976 | ) | $ | (19,669 | ) | ||||||||||||||||||||||||||
Prior service costs(2) | (668 | ) | — | |||||||||||||||||||||||||||||
Settlement(2) | (314 | ) | — | |||||||||||||||||||||||||||||
Tax benefit | 4,528 | 6,391 | ||||||||||||||||||||||||||||||
Net of tax | $ | (10,430 | ) | $ | (13,278 | ) | ||||||||||||||||||||||||||
______________________________________ | ||||||||||||||||||||||||||||||||
(1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. | ||||||||||||||||||||||||||||||||
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 12 for additional details. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Summary of the Unaudited Quarterly Data | The following presents a summary of the unaudited quarterly data for 2014 and 2013 (amounts in millions, except per share data): | ||||||||||||||||
2014 | |||||||||||||||||
Quarter | 4th | 3rd | 2nd | 1st | |||||||||||||
Sales | $ | 1,381.40 | $ | 1,204.00 | $ | 1,224.40 | $ | 1,068.10 | |||||||||
Gross profit | 485.7 | 421.5 | 430.3 | 377.1 | |||||||||||||
Earnings before income taxes | 227.3 | 183.3 | 176 | 146.6 | |||||||||||||
Net earnings attributable to Flowserve Corporation | 159 | 128.6 | 123.5 | 107.7 | |||||||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 1.17 | $ | 0.94 | $ | 0.9 | $ | 0.78 | |||||||||
Diluted | 1.16 | 0.93 | 0.9 | 0.78 | |||||||||||||
2013 | |||||||||||||||||
Quarter | 4th | 3rd | 2nd | 1st | |||||||||||||
Sales | $ | 1,389.40 | $ | 1,229.10 | $ | 1,239.50 | $ | 1,096.60 | |||||||||
Gross profit | 470.5 | 422.7 | 421.6 | 373.3 | |||||||||||||
Earnings before income taxes | 191.7 | 182.4 | 171.3 | 147.6 | |||||||||||||
Net earnings attributable to Flowserve Corporation | 141.1 | 126.3 | 120.4 | 97.8 | |||||||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 1.01 | $ | 0.9 | $ | 0.85 | $ | 0.68 | |||||||||
Diluted | 1.01 | 0.9 | 0.84 | 0.67 | |||||||||||||
_______________________________________ | |||||||||||||||||
-1 | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Significant_Accounting_Policie3
Significant Accounting Policies and Accounting Developments (Details) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 13, 2013 | Feb. 12, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | VEF | VEF | Minimum | Maximum | Venezuela | Venezuela | Venezuela | Venezuela | Venezuela | SICAD I Exchange rate | ||
VEF | USD ($) | USD ($) | Venezuela | |||||||||||
VEF | ||||||||||||||
Interest Ownership for Cost Method Accounting | 20.00% | |||||||||||||
Stock split, conversion ratio | 3 | |||||||||||||
Foreign currency exchange rate, translation | 6.3 | 4.3 | 6.3 | 12 | ||||||||||
Segment sales percentage of consolidated sales | 1.00% | 1.00% | ||||||||||||
Segment long lived assets percentage of consolidated long lived assets | 1.00% | 1.00% | 1.00% | |||||||||||
Foreign currency and other non-cash adjustments | $38,533,000 | ($2,418,000) | ($13,605,000) | ($4,000,000) | ||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Restricted shares grant period | 4 years | |||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||
Period of delivery of products and services | 1 year | 2 years | ||||||||||||
Percentage of completion revenue | 7.00% | 7.00% | 7.00% | |||||||||||
General extension period for service and repair contracts | 5 years | |||||||||||||
Maximum percentage of revenue on fixed fee services | 1.00% | 1.00% | 1.00% | |||||||||||
Warranty obligations sales trend period | 24 months | |||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||||
Intangible asset, useful life | 4 years | 40 years | ||||||||||||
Research and Development [Abstract] | ||||||||||||||
Research and development costs | 40,900,000 | 37,800,000 | 38,900,000 | |||||||||||
SICAD I Foreign Currency Transaction Loss Before Tax | 8,000,000 | |||||||||||||
SICAD II Foreign Currency Transaction Loss Before Tax | $14,000,000 | |||||||||||||
Percentage of outstanding accounts receivable | 9.00% | |||||||||||||
Percentage of Receivables Re-classed to Long Term | 48.00% |
Significant_Accounting_Policie4
Significant Accounting Policies and Accounting Developments (Estimated Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery, equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 14 years |
Software, furniture and fixtures and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Software, furniture and fixtures and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Significant_Accounting_Policie5
Significant Accounting Policies and Accounting Developments (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Earnings per share: | |||||||||||||||||||
Net earnings of Flowserve Corporation | $159,000 | $128,600 | $123,500 | $107,700 | $141,100 | $126,300 | $120,400 | $97,800 | $518,824 | $485,530 | $448,339 | ||||||||
Dividends on restricted shares not expected to vest | 12 | 13 | 15 | ||||||||||||||||
Earnings attributable to common and participating shareholders | $518,836 | $485,543 | $448,354 | ||||||||||||||||
Weighted average shares: | |||||||||||||||||||
Common stock (in shares) | 136,334 | 140,901 | 156,057 | ||||||||||||||||
Participating securities (in shares) | 578 | 698 | 792 | ||||||||||||||||
Denominator for basic earnings per common share (in shares) | 136,912 | 141,599 | 156,849 | ||||||||||||||||
Effect of potentially dilutive securities (in shares) | 931 | 830 | 1,121 | ||||||||||||||||
Denominator for diluted earnings per common share (in shares) | 137,843 | 142,429 | 157,970 | ||||||||||||||||
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||||||||||||||||||
Basic (in dollars per share) | $1.17 | [1] | $0.94 | [1] | $0.90 | [1] | $0.78 | [1] | $1.01 | [1] | $0.90 | [1] | $0.85 | [1] | $0.68 | [1] | $3.79 | $3.43 | $2.86 |
Diluted (in dollars per share) | $1.16 | [1] | $0.93 | [1] | $0.90 | [1] | $0.78 | [1] | $1.01 | [1] | $0.90 | [1] | $0.84 | [1] | $0.67 | [1] | $3.76 | $3.41 | $2.84 |
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Acquisitions_Disposition_and_E2
Acquisitions, Disposition and Exit of Joint Venture (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 10, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 02, 2013 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||||||||
Proceeds from sale of business, net of cash divested | $46,805,000 | $0 | $0 | |||||
Assets Acquired and Liabilities Assumed | ||||||||
Goodwill | 1,067,255,000 | 1,107,551,000 | 1,053,852,000 | 1,107,551,000 | 1,067,255,000 | |||
Innovative Mag-Drive, LLC (Innomag) | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of business acquired | 100.00% | |||||||
Acquisition, purchase price | 78,700,000 | |||||||
Cash paid for acquisition | 67,500,000 | |||||||
Contingent payment, based on performance | 11,200,000 | |||||||
Contingent consideration recorded | 7,500,000 | |||||||
Sales | 17,000,000 | |||||||
Assets Acquired and Liabilities Assumed | ||||||||
Current assets | 8,100,000 | |||||||
Property, plant and equipment | 5,300,000 | |||||||
Intangible assets | 18,500,000 | |||||||
Current liabilities | -800,000 | |||||||
Net tangible and intangible assets | 31,100,000 | |||||||
Goodwill | 43,900,000 | |||||||
Purchase price | 75,000,000 | |||||||
Acquired finite lived intangible asset, weighted average useful life | 10 years | |||||||
Innovative Mag-Drive, LLC (Innomag) | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combinations, Performance Metrics, Period | 2 years | |||||||
Innovative Mag-Drive, LLC (Innomag) | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combinations, Performance Metrics, Period | 5 years | |||||||
Business Combination, Consideration Transferred Period, Contingent on Performance | 4 months | |||||||
Customer Relationships | Innovative Mag-Drive, LLC (Innomag) | ||||||||
Assets Acquired and Liabilities Assumed | ||||||||
Intangible assets | 7,000,000 | |||||||
Acquired finite lived intangible asset, weighted average useful life | 10 years | |||||||
Know-How | Innovative Mag-Drive, LLC (Innomag) | ||||||||
Assets Acquired and Liabilities Assumed | ||||||||
Intangible assets | 7,000,000 | |||||||
Acquired finite lived intangible asset, weighted average useful life | 10 years | |||||||
Naval OY | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from sale of business, net of cash divested | 46,800,000 | |||||||
Gain (Loss) on Disposition of Business | 13,400,000 | |||||||
Disposal Group, Including Discontinued Operation, Revenue | $8,200,000 |
Acquisitions_Disposition_and_E3
Acquisitions, Disposition and Exit of Joint Venture (Exit of Joint Venture) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 28, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||
Payments for acquisitions, net of cash acquired | $0 | $76,801,000 | $3,996,000 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 0 | 15,315,000 | 0 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 12,995,000 | 0 | |
Audco | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent of business acquired | 100.00% | |||
Payments for acquisitions, net of cash acquired | 10,100,000 | |||
Ownership percentage | 50.00% | |||
Proceeds from Sale of Equity Method Investments | 46,200,000 | |||
Equity Method Investment, Summarized Financial Information, Assets | 25,000,000 | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 15,300,000 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $13,000,000 | |||
Ownership percentage | 50.00% |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill [Roll Forward] | ||||
Balance as of | $1,107,551 | $1,053,852 | ||
Acquisition | 43,865 | [1] | ||
Disposition | -6,483 | [2] | ||
Currency translation | -33,813 | 9,834 | ||
Balance as of | 1,067,255 | 1,107,551 | ||
EPD | ||||
Goodwill [Roll Forward] | ||||
Balance as of | 449,496 | 447,560 | ||
Acquisition | 0 | [1] | ||
Disposition | 0 | [2] | ||
Currency translation | -9,756 | 1,936 | ||
Balance as of | 439,740 | 449,496 | ||
IPD | ||||
Goodwill [Roll Forward] | ||||
Balance as of | 165,532 | 121,406 | ||
Acquisition | 43,865 | [1] | ||
Disposition | 0 | [2] | ||
Currency translation | -790 | 261 | ||
Balance as of | 164,742 | 165,532 | ||
FCD | ||||
Goodwill [Roll Forward] | ||||
Balance as of | 492,523 | 484,886 | ||
Acquisition | 0 | [1] | ||
Disposition | -6,483 | [2] | ||
Currency translation | -23,267 | 7,637 | ||
Balance as of | $462,773 | $492,523 | ||
[1] | Goodwill primarily related to the acquisition of Innomag in 2013. See Note 2 for additional information. | |||
[2] | Goodwill disposition related to the sale of Naval in 2014. See Note 2 for additional information. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Changes in Intangible Assets) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, Ending Gross Amount | 201,593 | $207,524 | |||
Finite-lived intangible assets, Accumulated Amortization | -133,745 | -130,093 | |||
Indefinite-lived intangible assets, Ending Gross Amount | 79,982 | [1] | 84,670 | [1] | |
Indefinite-lived intangible assets, Accumulated Amortization | -1,493 | [1] | -1,553 | [1] | |
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 40 years | ||||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 4 years | ||||
Engineering drawings | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, Ending Gross Amount | 90,843 | [2] | 93,687 | [2] | |
Finite-lived intangible assets, Accumulated Amortization | -62,947 | [2] | -61,401 | [2] | |
Engineering drawings | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 22 years | [2] | |||
Engineering drawings | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 10 years | [2] | |||
Existing customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 5 years | ||||
Finite-lived intangible assets, Ending Gross Amount | 38,003 | [3] | 40,077 | [3] | |
Finite-lived intangible assets, Accumulated Amortization | -19,285 | [3] | -15,241 | [3] | |
Existing customer relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 10 years | [3] | |||
Existing customer relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 5 years | [3] | |||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, Ending Gross Amount | 29,396 | 32,963 | |||
Finite-lived intangible assets, Accumulated Amortization | -26,087 | -28,013 | |||
Patents | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 16 years | ||||
Patents | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 9 years | ||||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, Ending Gross Amount | 43,351 | 40,797 | |||
Finite-lived intangible assets, Accumulated Amortization | -25,426 | ($25,438) | |||
Other | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 40 years | ||||
Other | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life (Years) | 4 years | ||||
[1] | Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASCÂ 350. | ||||
[2] | Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. | ||||
[3] | Existing customer relationships acquired prior to 2011 had a useful life of five years. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Actual and Estimated Future Amortization) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Actual for year ended December 31, 2014 | $14,005 | $12,800 | $16,000 |
Estimated for year ending December 31, 2015 | 10,832 | ||
Estimated for year ending December 31, 2016 | 8,534 | ||
Estimated for year ending December 31, 2017 | 8,280 | ||
Estimated for year ending December 31, 2018 | 8,005 | ||
Estimated for year ending December 31, 2019 | 7,355 | ||
Thereafter | $24,842 |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Inventory | |||
Raw materials | $352,928,000 | $356,899,000 | |
Work in process | 687,343,000 | 786,664,000 | |
Finished goods | 265,439,000 | 306,765,000 | |
Less: Progress billings | -230,058,000 | -304,395,000 | |
Less: Excess and obsolete reserve | -80,088,000 | -85,263,000 | |
Inventories, net | 995,564,000 | 1,060,670,000 | |
Expenses due to excess and obsolete inventory | $19,200,000 | $24,400,000 | $18,200,000 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Disclosures by Compensation Plans) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2010 | Jun. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted during period | 0 | ||
Plan 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to issue under share based compensation plans | 8,700,000 | ||
Common stock available under stock option plan | 5,085,954 | ||
Plan 2004 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Expired | 827,835 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Information Regarding Stock Options) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted during period | 0 | ||
Shares | |||
Outstanding — beginning of year | 97,962 | 115,362 | 145,338 |
Exercised | 0 | -17,400 | -24,576 |
Canceled | 0 | 0 | -5,400 |
Outstanding — end of year | 97,962 | 97,962 | 115,362 |
Exercisable — end of year | 97,962 | 97,962 | 115,362 |
Weighted Average Exercise Price | |||
Outstanding — beginning of year | $16.61 | $15 | $13.90 |
Exercised | $0 | $5.91 | $10.15 |
Canceled | $0 | $0 | $7.65 |
Outstanding — end of year | $16.61 | $16.61 | $15 |
Exercisable — end of year | $16.61 | $16.61 | $15 |
Weighted Average Remaining Contractual Life | 1 year 9 months 18 days | 2 years 9 months 18 days | |
Total intrinsic value of stock options exercised | $0 | $800,000 | $700,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Cost Related To Outstanding Stock Option awards | 0 | ||
General expiration period, from date of grant or time of termination | 10 years | ||
Options granted during period | 0 | 0 | 0 |
Weighted Average Exercise Price | |||
Number of stock options vested | $0 | $0 | $0 |
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 1 year | ||
Stock Options | Minimum | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 1 year | ||
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 5 years | ||
Stock Options | Maximum | Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 3 years |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Range of Exercise Prices per Share) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Range of Exercise Prices per Share | ||
Weighted Average Remaining Contractual Life | 1 year 9 months 18 days | 2 years 9 months 18 days |
Number Outstanding | 97,962 | |
Weighted Average Exercise Price per Share | $16.61 | |
$8.08 - $14.14 | ||
Range of Exercise Prices per Share | ||
Prices per Share, lower range | $8.08 | |
Prices per Share, upper range | $14.14 | |
Weighted Average Remaining Contractual Life | 6 months 11 days | |
Number Outstanding | 10,500 | |
Weighted Average Exercise Price per Share | $10.32 | |
$14.14 - $16.16 | ||
Range of Exercise Prices per Share | ||
Prices per Share, lower range | $14.14 | |
Prices per Share, upper range | $16.16 | |
Weighted Average Remaining Contractual Life | 1 year 1 month 17 days | |
Number Outstanding | 3,201 | |
Weighted Average Exercise Price per Share | $16.06 | |
$16.16 - $18.18 | ||
Range of Exercise Prices per Share | ||
Prices per Share, lower range | $16.16 | |
Prices per Share, upper range | $18.18 | |
Weighted Average Remaining Contractual Life | 1 year 11 months 12 days | |
Number Outstanding | 84,261 | |
Weighted Average Exercise Price per Share | $17.42 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation costs | $30.60 | $31.50 | |
Recognition of unearned compensation, (years) | 1 year | ||
Fair value of Restricted Shares vested | 34.8 | 34.9 | 36.4 |
Stock-based compensation expense | 42.7 | 35.8 | 35.4 |
Related income tax benefit | -14.6 | -12.3 | -12 |
Net stock-based compensation expense | $28.10 | $23.50 | $23.40 |
Shares | |||
Outstanding — beginning of year | 2,020,678 | ||
Granted | 734,187 | ||
Canceled | -788,468 | ||
Canceled | -109,849 | ||
Outstanding — ending of year | 1,856,548 | 2,020,678 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding — beginning of year | $44.68 | ||
Granted | $64.35 | ||
Vested | $44.10 | ||
Canceled | $51.63 | ||
Outstanding — ending of year | $52.29 | $44.68 | |
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination | 3 years | ||
General vesting period | 3 years | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination | 1 year | ||
General vesting period | 1 year | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period | 36 months | ||
Period for achieving performance targets on performance based units (years) | 3 years | ||
Minimum range of vesting provisions | 0 | ||
Maximum range of vesting provisions | 1,580,000 | ||
Estimated vesting of shares based on performance shares | 1,244,000 | ||
Shares | |||
Outstanding — ending of year | 811,000 | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 200.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 0.00% |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative, Lower Remaining Maturity Range | 5 days | |
Derivative, Upper Remaining Maturity Range | 37 months | |
Interest Rate Swap Agreements | ||
Derivative [Line Items] | ||
Maximum remaining length of interest rate swap contract | 6 months | |
Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative, notional amount | 125.9 | $6.20 |
Designated as Hedging Instrument | Interest Rate Swap Agreements | ||
Derivative [Line Items] | ||
Derivative, notional amount | 40 | 140 |
Not Designated as a Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative, notional amount | 421.1 | $610.70 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Fair Value Balance Sheet Disclosures) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Not Designated as a Hedging Instrument | Forward Exchange Contracts | ||
Fair value disclosues, by balance sheet location | ||
Current derivative assets | $11,709 | $5,215 |
Noncurrent derivative assets | 6 | 729 |
Current derivative liabilities | 6,168 | 2,207 |
Noncurrent derivative liabilities | 348 | 113 |
Designated as Hedging Instrument | Interest Rates Swaps and Forward Exchange Contracts | ||
Fair value disclosues, by balance sheet location | ||
Current derivative assets | 0 | 146 |
Current derivative liabilities | 6,952 | 409 |
Noncurrent derivative liabilities | $411 | $37 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Fair Value of Forward Exchange Contracts Not Designated as Hedging Instruments) (Details) (Not Designated as a Hedging Instrument, Forward Exchange Contracts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Not Designated as a Hedging Instrument | Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in income | $8,464 | ($4,352) | ($7,089) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Estimated fair value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $810.10 |
Carrying value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $797.20 |
Details_of_Certain_Consolidate2
Details of Certain Consolidated Balance Sheet Captions (Accounts Receivable, net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Accounts receivable | $1,107,916 | $1,179,400 |
Less: allowance for doubtful accounts | -25,469 | -24,073 |
Accounts receivable, net | $1,082,447 | $1,155,327 |
Details_of_Certain_Consolidate3
Details of Certain Consolidated Balance Sheet Captions (Property, Plant and Equipment, net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $1,530,862 | $1,566,152 |
Less: accumulated depreciation | -836,981 | -849,863 |
Property, plant and equipment, net | 693,881 | 716,289 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 76,645 | 79,557 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 405,733 | 420,364 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 668,710 | 694,179 |
Software, furniture and fixtures and other | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $379,774 | $372,052 |
Details_of_Certain_Consolidate4
Details of Certain Consolidated Balance Sheet Captions (Accrued Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Wages, compensation and other benefits | $226,488 | $238,238 |
Commissions and royalties | 34,194 | 38,609 |
Customer advance payments | 303,527 | 340,136 |
Progress billings in excess of accumulated costs | 22,098 | 40,718 |
Warranty costs and late delivery penalties | 47,738 | 63,935 |
Sales and use tax | 16,274 | 15,508 |
Income tax | 37,451 | 21,939 |
Other | 106,302 | 101,927 |
Accrued liabilities | $794,072 | $861,010 |
Other accrued liabilities maximum percentage of current liabilities | 5.00% |
Details_of_Certain_Consolidate5
Details of Certain Consolidated Balance Sheet Captions (Retirement Obligations and Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Pension and postretirement benefits | $195,429 | $199,634 |
Deferred taxes | 118,780 | 110,251 |
Legal and environmental | 27,606 | 35,250 |
Uncertain tax positions | 69,284 | 82,689 |
Other | 41,412 | 46,070 |
Retirement obligations and other liabilities | $452,511 | $473,894 |
Equity_Method_Investments_Deta
Equity Method Investments (Details) | Dec. 31, 2014 | Mar. 28, 2013 |
ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 7 | |
India | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 1 | |
Japan | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 1 | |
Saudi Arabia | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 1 | |
South Korea | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 1 | |
United Arab Emirates | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 1 | |
China | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | 2 | |
Audco | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% |
Debt_and_Lease_Obligations_Deb
Debt and Lease Obligations (Debt Including Capital Lease Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 11, 2012 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Long-term debt | $1,154,922 | ||
Capital lease obligations and other borrowings | 27,731 | 33,393 | |
Debt and capital lease obligations | 1,154,922 | 1,200,297 | |
Less amounts due within one year | 53,131 | 72,678 | |
Total debt due after one year | 1,101,791 | 1,127,619 | |
2023 Senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | 4.00% | |
Long-term debt | 298,731 | 298,615 | |
2022 Senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.50% | 3.50% | 3.50% |
Long-term debt | 498,460 | 498,289 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.51% | 1.50% | |
Long-term debt | $330,000 | $370,000 |
Debt_and_Lease_Obligations_Mat
Debt and Lease Obligations (Maturities of Debt by Type) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2015 | $53,131 |
2016 | 79,600 |
2017 | 60,000 |
2018 | 165,000 |
Thereafter | 797,191 |
Total | 1,154,922 |
Term Loan | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2015 | 45,000 |
2016 | 60,000 |
2017 | 60,000 |
2018 | 165,000 |
Thereafter | 0 |
Total | 330,000 |
Senior Notes and other debt | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2015 | 8,131 |
2016 | 19,600 |
2017 | 0 |
2018 | 0 |
Thereafter | 797,191 |
Total | $824,922 |
Debt_and_Lease_Obligations_Sen
Debt and Lease Obligations (Senior Notes) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 | Sep. 11, 2012 |
2023 Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | 1-Nov-13 | |||
Debt Instrument, Face Amount | $300 | |||
Debt Instrument, Maturity Date | 15-Nov-23 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||
Price of senior notes, stated as percentage of principal amount | 99.53% | |||
Basis points increase over Treasury Rate upon redemption | 25 | |||
2022 Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | 11-Sep-12 | |||
Debt Instrument, Face Amount | $500 | |||
Debt Instrument, Maturity Date | 15-Sep-22 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | |
Price of senior notes, stated as percentage of principal amount | 99.62% | |||
Basis points increase over Treasury Rate upon redemption | 30 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Redemption price, states as percentage of principal amount | 100.00% | |||
Domestic subsidiaries unconditional guarantee | 100.00% |
Debt_and_Lease_Obligations_Sen1
Debt and Lease Obligations (Senior Credit Facility) (Details) (USD $) | 12 Months Ended | 9 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 04, 2013 | Oct. 03, 2013 | |
Line of Credit Facility [Line Items] | ||||||
Repayments of Long-term Debt | $40,000,000 | $25,000,000 | $480,000,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | ||||||
Line of Credit Facility [Line Items] | ||||||
Derivative, notional amount | 40,000,000 | 140,000,000 | ||||
Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | |||||
Term Loan Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Face Amount | 400,000,000 | |||||
Repayments of Long-term Debt | 40,000,000 | 25,000,000 | 5,000,000 | |||
Credit Facilities Scheduled Repayments Due in Next three Quarters | 10,000,000 | |||||
Credit Facilities Scheduled Repayments Due in the fourth Quarter of next year | 15,000,000 | |||||
Senior Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Maturity Date | 4-Oct-18 | |||||
Letters of Credit Outstanding, Amount | 76,800,000 | 106,100,000 | ||||
Domestic subsidiaries unconditional guarantee | 100.00% | |||||
Maximum permitted leverage ratio, Debt to Total Consolidated EBITDA | 3.25 | |||||
Minimum interest coverage, consolidated EBITDA to Total Interest Expense | 3.25 | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.18% | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | 850,000,000 | ||||
Line of Credit Facility, Amount Outstanding | 0 | |||||
Line of Credit Facility, Current Borrowing Capacity | 923,200,000 | 893,900,000 | ||||
Swingline loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | |||||
Term Loan Or Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit agreement maximum borrowing capacity increase in additional borrowings | 400,000,000 | |||||
Prior Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayments of Debt | $12,500,000 |
Debt_and_Lease_Obligations_Eur
Debt and Lease Obligations (European Letter of Credit Facilities) (Details) (European Letter of Credit Facilities) | 0 Months Ended | ||||
Oct. 30, 2009 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Expiration Period | 364 days | ||||
Line of Credit Facility, Maximum Borrowing Capacity | € 125,000,000 | ||||
Line of Credit Facility, Amount Outstanding | $7,600,000 | € 6,300,000 | $95,400,000 | € 69,600,000 |
Debt_and_Lease_Obligations_Fut
Debt and Lease Obligations (Future Minimum Lease Payments Due) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | |||
Operating leases, rent expense | $56,200,000 | $62,300,000 | $63,600,000 |
2015 | 49,625,000 | ||
2016 | 36,829,000 | ||
2017 | 27,824,000 | ||
2018 | 22,081,000 | ||
2019 | 17,184,000 | ||
Thereafter | 63,837,000 | ||
Total minimum lease payments | $217,380,000 |
Supplemental_Guarantor_Financi2
Supplemental Guarantor Financial Information (Balance Sheet) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 450,350 | $363,804 | $304,252 | $337,356 |
Accounts receivable, net | 1,082,447 | 1,155,327 | ||
Intercompany receivables | 0 | 0 | ||
Inventories, net | 995,564 | 1,060,670 | ||
Other current assets | 265,802 | 267,581 | ||
Total current assets | 2,794,163 | 2,847,382 | ||
Property, plant and equipment, net | 693,881 | 716,289 | ||
Goodwill | 1,067,255 | 1,107,551 | 1,053,852 | |
Intercompany receivables | 0 | 0 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other assets, net | 412,721 | 365,511 | ||
Total assets | 4,968,020 | 5,036,733 | 4,810,958 | |
Accounts payable | 611,715 | 612,092 | ||
Intercompany payables | 0 | 0 | ||
Accrued liabilities | 794,072 | 861,010 | ||
Debt due within one year | 53,131 | 72,678 | ||
Deferred taxes | 12,957 | 12,319 | ||
Total current liabilities | 1,471,875 | 1,558,099 | ||
Long-term debt due after one year | 1,101,791 | 1,127,619 | ||
Intercompany payables | 0 | 0 | ||
Retirement obligations and other liabilities | 452,511 | 473,894 | ||
Total liabilities | 3,026,177 | 3,159,612 | ||
Total Flowserve Corporation shareholders’ equity | 1,931,562 | 1,870,379 | ||
Noncontrolling interests | 10,281 | 6,742 | ||
Total equity | 1,941,843 | 1,877,121 | 1,894,475 | 2,278,230 |
Total liabilities and equity | 4,968,020 | 5,036,733 | ||
Parent (Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 51,200 | 29,086 | 2,609 | 150,308 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 1,112 | 1,879 | ||
Total current assets | 52,312 | 30,965 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | 392,500 | 432,500 | ||
Investment in consolidated subsidiaries | 2,622,193 | 2,579,701 | ||
Other assets, net | 12,498 | 15,486 | ||
Total assets | 3,079,503 | 3,058,652 | ||
Accounts payable | 0 | 0 | ||
Intercompany payables | 126 | 81 | ||
Accrued liabilities | 13,026 | 12,874 | ||
Debt due within one year | 45,000 | 40,000 | ||
Deferred taxes | 0 | 0 | ||
Total current liabilities | 58,152 | 52,955 | ||
Long-term debt due after one year | 1,082,191 | 1,126,904 | ||
Intercompany payables | 1,144 | 1,144 | ||
Retirement obligations and other liabilities | 6,454 | 7,270 | ||
Total liabilities | 1,147,941 | 1,188,273 | ||
Total Flowserve Corporation shareholders’ equity | 1,931,562 | 1,870,379 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 1,931,562 | 1,870,379 | ||
Total liabilities and equity | 3,079,503 | 3,058,652 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 258,386 | 263,594 | ||
Intercompany receivables | 138,524 | 155,422 | ||
Inventories, net | 353,894 | 371,172 | ||
Other current assets | 150,934 | 144,551 | ||
Total current assets | 901,738 | 934,739 | ||
Property, plant and equipment, net | 240,204 | 220,072 | ||
Goodwill | 709,239 | 715,722 | ||
Intercompany receivables | 134,704 | 9,520 | ||
Investment in consolidated subsidiaries | 1,608,997 | 1,850,998 | ||
Other assets, net | 186,013 | 211,755 | ||
Total assets | 3,780,895 | 3,942,806 | ||
Accounts payable | 167,624 | 163,254 | ||
Intercompany payables | 49,960 | 74,008 | ||
Accrued liabilities | 291,193 | 293,012 | ||
Debt due within one year | 0 | 5 | ||
Deferred taxes | 0 | 0 | ||
Total current liabilities | 508,777 | 530,279 | ||
Long-term debt due after one year | 0 | 0 | ||
Intercompany payables | 434,326 | 618,145 | ||
Retirement obligations and other liabilities | 215,599 | 214,681 | ||
Total liabilities | 1,158,702 | 1,363,105 | ||
Total Flowserve Corporation shareholders’ equity | 2,622,193 | 2,579,701 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 2,622,193 | 2,579,701 | ||
Total liabilities and equity | 3,780,895 | 3,942,806 | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 399,150 | 334,718 | 301,643 | 187,048 |
Accounts receivable, net | 824,061 | 891,733 | ||
Intercompany receivables | 50,086 | 74,089 | ||
Inventories, net | 641,670 | 689,498 | ||
Other current assets | 113,756 | 121,151 | ||
Total current assets | 2,028,723 | 2,111,189 | ||
Property, plant and equipment, net | 453,677 | 496,217 | ||
Goodwill | 358,016 | 391,829 | ||
Intercompany receivables | 42,970 | 186,789 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other assets, net | 214,210 | 138,270 | ||
Total assets | 3,097,596 | 3,324,294 | ||
Accounts payable | 444,091 | 448,838 | ||
Intercompany payables | 138,524 | 155,422 | ||
Accrued liabilities | 489,853 | 555,124 | ||
Debt due within one year | 8,131 | 32,673 | ||
Deferred taxes | 12,957 | 12,319 | ||
Total current liabilities | 1,093,556 | 1,204,376 | ||
Long-term debt due after one year | 19,600 | 715 | ||
Intercompany payables | 134,704 | 9,520 | ||
Retirement obligations and other liabilities | 230,458 | 251,943 | ||
Total liabilities | 1,478,318 | 1,466,554 | ||
Total Flowserve Corporation shareholders’ equity | 1,608,997 | 1,850,998 | ||
Noncontrolling interests | 10,281 | 6,742 | ||
Total equity | 1,619,278 | 1,857,740 | ||
Total liabilities and equity | 3,097,596 | 3,324,294 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | -188,610 | -229,511 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | -188,610 | -229,511 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | -570,174 | -628,809 | ||
Investment in consolidated subsidiaries | -4,231,190 | -4,430,699 | ||
Other assets, net | 0 | 0 | ||
Total assets | -4,989,974 | -5,289,019 | ||
Accounts payable | 0 | 0 | ||
Intercompany payables | -188,610 | -229,511 | ||
Accrued liabilities | 0 | 0 | ||
Debt due within one year | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Total current liabilities | -188,610 | -229,511 | ||
Long-term debt due after one year | 0 | 0 | ||
Intercompany payables | -570,174 | -628,809 | ||
Retirement obligations and other liabilities | 0 | 0 | ||
Total liabilities | -758,784 | -858,320 | ||
Total Flowserve Corporation shareholders’ equity | -4,231,190 | -4,430,699 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | -4,231,190 | -4,430,699 | ||
Total liabilities and equity | -4,989,974 | ($5,289,019) | ||
Senior Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Domestic subsidiaries unconditional guarantee | 100.00% |
Supplemental_Guarantor_Financi3
Supplemental Guarantor Financial Information (Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | $1,381,400 | $1,204,000 | $1,224,400 | $1,068,100 | $1,389,400 | $1,229,100 | $1,239,500 | $1,096,600 | $4,877,885 | $4,954,619 | $4,751,339 |
Cost of sales | -3,163,268 | -3,266,524 | -3,170,388 | ||||||||
Gross profit | 485,700 | 421,500 | 430,300 | 377,100 | 470,500 | 422,700 | 421,600 | 373,300 | 1,714,617 | 1,688,095 | 1,580,951 |
Selling, general and administrative expense | -936,900 | -966,829 | -922,125 | ||||||||
Net earnings from affiliates | 12,115 | 39,017 | 16,952 | ||||||||
Net earnings from consolidated subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Operating income | 789,832 | 760,283 | 675,778 | ||||||||
Interest expense, net | -58,642 | -52,982 | -42,566 | ||||||||
Other income (expense), net | 2,000 | -14,280 | -21,647 | ||||||||
Earnings before income taxes | 227,300 | 183,300 | 176,000 | 146,600 | 191,700 | 182,400 | 171,300 | 147,600 | 733,190 | 693,021 | 611,565 |
Provision for income taxes | -208,305 | -204,701 | -160,766 | ||||||||
Net earnings, including noncontrolling interests | 524,885 | 488,320 | 450,799 | ||||||||
Less: Net earnings attributable to noncontrolling interests | -6,061 | -2,790 | -2,460 | ||||||||
Net earnings attributable to Flowserve Corporation | 159,000 | 128,600 | 123,500 | 107,700 | 141,100 | 126,300 | 120,400 | 97,800 | 518,824 | 485,530 | 448,339 |
Comprehensive income attributable to Flowserve Corporation | 359,895 | 488,363 | 440,127 | ||||||||
Parent (Issuer) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expense | -2,725 | -3,079 | -3,571 | ||||||||
Net earnings from affiliates | 0 | 0 | 0 | ||||||||
Net earnings from consolidated subsidiaries, net of tax | 542,391 | 505,764 | 456,740 | ||||||||
Operating income | 539,666 | 502,685 | 453,169 | ||||||||
Interest expense, net | -35,731 | -29,729 | -9,881 | ||||||||
Other income (expense), net | 45 | 0 | 0 | ||||||||
Earnings before income taxes | 503,980 | 472,956 | 443,288 | ||||||||
Provision for income taxes | 14,844 | 12,574 | 5,051 | ||||||||
Net earnings, including noncontrolling interests | 518,824 | 485,530 | 448,339 | ||||||||
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Flowserve Corporation | 518,824 | 485,530 | 448,339 | ||||||||
Comprehensive income attributable to Flowserve Corporation | 359,895 | 488,363 | 440,127 | ||||||||
Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 1,944,086 | 1,952,235 | 1,833,613 | ||||||||
Cost of sales | -1,261,913 | -1,281,035 | -1,190,206 | ||||||||
Gross profit | 682,173 | 671,200 | 643,407 | ||||||||
Selling, general and administrative expense | -395,650 | -400,609 | -390,713 | ||||||||
Net earnings from affiliates | 1,079 | 1,175 | 3,855 | ||||||||
Net earnings from consolidated subsidiaries, net of tax | 372,848 | 345,465 | 309,223 | ||||||||
Operating income | 660,450 | 617,231 | 565,772 | ||||||||
Interest expense, net | -10,824 | -11,685 | -19,347 | ||||||||
Other income (expense), net | -11,697 | -767 | -683 | ||||||||
Earnings before income taxes | 637,929 | 604,779 | 545,742 | ||||||||
Provision for income taxes | -95,538 | -99,015 | -89,002 | ||||||||
Net earnings, including noncontrolling interests | 542,391 | 505,764 | 456,740 | ||||||||
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Flowserve Corporation | 542,391 | 505,764 | 456,740 | ||||||||
Comprehensive income attributable to Flowserve Corporation | 383,198 | 508,929 | 446,536 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 3,284,577 | 3,388,258 | 3,272,519 | ||||||||
Cost of sales | -2,252,133 | -2,371,363 | -2,334,975 | ||||||||
Gross profit | 1,032,444 | 1,016,895 | 937,544 | ||||||||
Selling, general and administrative expense | -538,525 | -563,141 | -527,841 | ||||||||
Net earnings from affiliates | 11,036 | 37,842 | 13,097 | ||||||||
Net earnings from consolidated subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Operating income | 504,955 | 491,596 | 422,800 | ||||||||
Interest expense, net | -12,087 | -11,568 | -13,338 | ||||||||
Other income (expense), net | 13,652 | -13,513 | -20,964 | ||||||||
Earnings before income taxes | 506,520 | 466,515 | 388,498 | ||||||||
Provision for income taxes | -127,611 | -118,260 | -76,815 | ||||||||
Net earnings, including noncontrolling interests | 378,909 | 348,255 | 311,683 | ||||||||
Less: Net earnings attributable to noncontrolling interests | -6,061 | -2,790 | -2,460 | ||||||||
Net earnings attributable to Flowserve Corporation | 372,848 | 345,465 | 309,223 | ||||||||
Comprehensive income attributable to Flowserve Corporation | 184,648 | 316,484 | 292,167 | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | -350,778 | -385,874 | -354,793 | ||||||||
Cost of sales | 350,778 | 385,874 | 354,793 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expense | 0 | 0 | 0 | ||||||||
Net earnings from affiliates | 0 | 0 | 0 | ||||||||
Net earnings from consolidated subsidiaries, net of tax | -915,239 | -851,229 | -765,963 | ||||||||
Operating income | -915,239 | -851,229 | -765,963 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Earnings before income taxes | -915,239 | -851,229 | -765,963 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net earnings, including noncontrolling interests | -915,239 | -851,229 | -765,963 | ||||||||
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Flowserve Corporation | -915,239 | -851,229 | -765,963 | ||||||||
Comprehensive income attributable to Flowserve Corporation | ($567,846) | ($825,413) | ($738,703) |
Supplemental_Guarantor_Financi4
Supplemental Guarantor Financial Information (Cash Flow) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash flows provided by operating activities | $570,962 | $487,759 | $517,130 |
Capital expenditures | -132,619 | -139,090 | -135,539 |
Payments for acquisitions, net of cash acquired | 0 | -76,801 | -3,996 |
Proceeds from sale of business, net of cash divested | 46,805 | 0 | 0 |
Intercompany short-term financing, net | 0 | ||
Intercompany capital contribution | 0 | ||
Intercompany loan proceeds | 0 | 0 | 0 |
Intercompany loan payments | 0 | 0 | 0 |
Intercompany return of capital | 0 | ||
Proceeds from disposal of assets | 1,731 | 1,653 | 16,933 |
Proceeds from (contributions to) equity investments in affiliates | 0 | 46,240 | -3,825 |
Net cash flows used by investing activities | -84,083 | -167,998 | -126,427 |
Excess tax benefits from stock-based payment arrangements | 8,587 | 10,111 | 11,207 |
Payments on long-term debt | -40,000 | -25,000 | -480,000 |
Proceeds from issuance of senior notes | 0 | 298,596 | 498,075 |
Proceeds from issuance of long-term debt | 0 | 0 | 400,000 |
Proceeds under other financing arrangements | 18,483 | 10,674 | 15,886 |
Payments under other financing arrangements | -20,502 | -11,075 | -10,079 |
Repurchases of common shares | -246,504 | -458,310 | -771,942 |
Payments of dividends | -85,118 | -76,897 | -73,765 |
Payments of deferred loan costs | 0 | -3,744 | -9,901 |
Intercompany loan proceeds | 0 | 0 | 0 |
Intercompany loan payments | 0 | 0 | 0 |
Intercompany distributions of capital | 0 | 0 | |
Intercompany dividends | 0 | 0 | 0 |
Other | -2,604 | -179 | -8,403 |
Net cash flows used by financing activities | -367,658 | -255,824 | -428,922 |
Effect of exchange rate changes on cash | -32,675 | -4,385 | 5,115 |
Net change in cash and cash equivalents | 86,546 | 59,552 | -33,104 |
Cash and cash equivalents at beginning of year | 363,804 | 304,252 | 337,356 |
Cash and cash equivalents at end of year | 450,350 | 363,804 | 304,252 |
Parent (Issuer) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash flows provided by operating activities | 353,736 | 261,741 | 277,076 |
Capital expenditures | 0 | 0 | 0 |
Payments for acquisitions, net of cash acquired | 0 | 0 | |
Proceeds from sale of business, net of cash divested | 0 | ||
Intercompany short-term financing, net | 0 | ||
Intercompany capital contribution | 0 | ||
Intercompany loan proceeds | 40,000 | 30,000 | 12,499 |
Intercompany loan payments | 0 | 0 | 0 |
Intercompany return of capital | 0 | ||
Proceeds from disposal of assets | 0 | 0 | 0 |
Proceeds from (contributions to) equity investments in affiliates | 0 | 0 | |
Net cash flows used by investing activities | 40,000 | 30,000 | 12,499 |
Excess tax benefits from stock-based payment arrangements | 0 | 0 | 0 |
Payments on long-term debt | -40,000 | -25,000 | -480,000 |
Proceeds from issuance of senior notes | 298,596 | 498,075 | |
Proceeds from issuance of long-term debt | 400,000 | ||
Proceeds under other financing arrangements | 0 | 0 | 0 |
Payments under other financing arrangements | 0 | 0 | 9 |
Repurchases of common shares | -246,504 | -458,310 | -771,942 |
Payments of dividends | -85,118 | -76,897 | -73,765 |
Payments of deferred loan costs | 0 | -3,744 | -9,901 |
Intercompany loan proceeds | 0 | 0 | 0 |
Intercompany loan payments | 0 | 0 | 0 |
Intercompany distributions of capital | 0 | 0 | |
Intercompany dividends | 0 | 0 | 0 |
Other | 0 | 91 | 250 |
Net cash flows used by financing activities | -371,622 | -265,264 | -437,274 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | 22,114 | 26,477 | -147,699 |
Cash and cash equivalents at beginning of year | 29,086 | 2,609 | 150,308 |
Cash and cash equivalents at end of year | 51,200 | 29,086 | 2,609 |
Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash flows provided by operating activities | 611,190 | 279,594 | 193,819 |
Capital expenditures | -57,125 | -44,380 | -43,600 |
Payments for acquisitions, net of cash acquired | -66,658 | 0 | |
Proceeds from sale of business, net of cash divested | 0 | ||
Intercompany short-term financing, net | 0 | ||
Intercompany capital contribution | -483 | ||
Intercompany loan proceeds | 126 | 911 | 32,705 |
Intercompany loan payments | -11,172 | -68 | -28,372 |
Intercompany return of capital | 1,965 | ||
Proceeds from disposal of assets | 162 | 110 | 2,268 |
Proceeds from (contributions to) equity investments in affiliates | 0 | 0 | |
Net cash flows used by investing activities | -66,044 | -110,085 | -37,482 |
Excess tax benefits from stock-based payment arrangements | 6,579 | 8,266 | 8,985 |
Payments on long-term debt | 0 | 0 | 0 |
Proceeds from issuance of senior notes | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | ||
Proceeds under other financing arrangements | 0 | 0 | 0 |
Payments under other financing arrangements | -5 | -20 | -20 |
Repurchases of common shares | 0 | 0 | 0 |
Payments of dividends | 0 | 0 | 0 |
Payments of deferred loan costs | -1,429 | 0 | 0 |
Intercompany loan proceeds | 0 | 173,510 | 138,918 |
Intercompany loan payments | -183,819 | -102,037 | -67,245 |
Intercompany distributions of capital | 0 | 0 | |
Intercompany dividends | -366,472 | -249,228 | -236,975 |
Other | 0 | 0 | 0 |
Net cash flows used by financing activities | -545,146 | -169,509 | -156,337 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash flows provided by operating activities | 524,113 | 214,066 | 298,616 |
Capital expenditures | -75,494 | -94,710 | -91,939 |
Payments for acquisitions, net of cash acquired | -10,143 | -3,996 | |
Proceeds from sale of business, net of cash divested | 46,805 | ||
Intercompany short-term financing, net | 1,429 | ||
Intercompany capital contribution | 0 | ||
Intercompany loan proceeds | 143,820 | 72,037 | 54,746 |
Intercompany loan payments | 0 | -173,510 | -138,918 |
Intercompany return of capital | 0 | ||
Proceeds from disposal of assets | 1,569 | 1,543 | 14,665 |
Proceeds from (contributions to) equity investments in affiliates | 46,240 | -3,825 | |
Net cash flows used by investing activities | 118,129 | -158,543 | -169,267 |
Excess tax benefits from stock-based payment arrangements | 2,008 | 1,845 | 2,222 |
Payments on long-term debt | 0 | 0 | 0 |
Proceeds from issuance of senior notes | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | ||
Proceeds under other financing arrangements | 18,483 | 10,674 | 15,886 |
Payments under other financing arrangements | -20,497 | -11,055 | -10,068 |
Repurchases of common shares | 0 | 0 | 0 |
Payments of dividends | 0 | 0 | 0 |
Payments of deferred loan costs | 0 | 0 | 0 |
Intercompany loan proceeds | 11,172 | 68 | 28,372 |
Intercompany loan payments | -126 | -911 | -32,705 |
Intercompany distributions of capital | -1,965 | 483 | |
Intercompany dividends | -551,606 | -18,414 | -15,406 |
Other | -2,604 | -270 | -8,653 |
Net cash flows used by financing activities | -545,135 | -18,063 | -19,869 |
Effect of exchange rate changes on cash | -32,675 | -4,385 | 5,115 |
Net change in cash and cash equivalents | 64,432 | 33,075 | 114,595 |
Cash and cash equivalents at beginning of year | 334,718 | 301,643 | 187,048 |
Cash and cash equivalents at end of year | 399,150 | 334,718 | 301,643 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash flows provided by operating activities | -918,077 | -267,642 | -252,381 |
Capital expenditures | 0 | 0 | 0 |
Payments for acquisitions, net of cash acquired | 0 | 0 | |
Proceeds from sale of business, net of cash divested | 0 | ||
Intercompany short-term financing, net | -1,429 | ||
Intercompany capital contribution | 483 | ||
Intercompany loan proceeds | -183,946 | -102,948 | -99,950 |
Intercompany loan payments | 11,172 | 173,578 | 167,290 |
Intercompany return of capital | -1,965 | ||
Proceeds from disposal of assets | 0 | 0 | 0 |
Proceeds from (contributions to) equity investments in affiliates | 0 | 0 | |
Net cash flows used by investing activities | -176,168 | 70,630 | 67,823 |
Excess tax benefits from stock-based payment arrangements | 0 | 0 | 0 |
Payments on long-term debt | 0 | 0 | |
Proceeds from issuance of senior notes | 0 | 0 | |
Proceeds from issuance of long-term debt | 0 | ||
Proceeds under other financing arrangements | 0 | 0 | 0 |
Payments under other financing arrangements | 0 | 0 | 0 |
Repurchases of common shares | 0 | 0 | 0 |
Payments of dividends | 0 | 0 | 0 |
Payments of deferred loan costs | 1,429 | 0 | 0 |
Intercompany loan proceeds | -11,172 | -173,578 | -167,290 |
Intercompany loan payments | 183,945 | 102,948 | 99,950 |
Intercompany distributions of capital | 1,965 | -483 | |
Intercompany dividends | 918,078 | 267,642 | 252,381 |
Other | 0 | 0 | 0 |
Net cash flows used by financing activities | 1,094,245 | 197,012 | 184,558 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | $0 | $0 | $0 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefits (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S Defined Benefit Plans | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 4.00% | 4.50% | 3.75% |
Rate of increase in compensation levels | 4.25% | 4.25% | |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 6.00% | 6.00% | 6.25% |
Discount rate | 4.50% | 3.75% | 4.50% |
Rate of increase in compensation levels | 4.25% | 4.25% | 4.25% |
Non-U.S Defined Benefit Plans | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 3.40% | 4.22% | 4.16% |
Rate of increase in compensation levels | 3.95% | 3.83% | 3.84% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 5.51% | 5.49% | 5.78% |
Discount rate | 4.22% | 4.16% | 5.09% |
Rate of increase in compensation levels | 3.83% | 3.84% | 3.56% |
Postretirement Medical Benefits | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 3.75% | 4.00% | 3.25% |
Weighted average assumptions used to determine net pension expense: | |||
Discount rate | 4.00% | 3.25% | 4.25% |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefits (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $20,400,000 | $20,000,000 | $19,300,000 |
U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 4.50% | 3.75% |
Rate of increase in compensation levels | 4.25% | 4.25% | |
Long-term rate of return on assets | 6.00% | 6.00% | 6.25% |
Prior service cost to be amortized from accumulated other comprehensive loss next year | 500,000 | ||
Estimated net gain (loss) to be amortized from accumulated other comprehensive loss next year | -9,000,000 | ||
Company contributions | 20,746,000 | 24,194,000 | |
MP Improvement Scale Rate | 75.00% | ||
U.S Defined Benefit Plans | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated contributions in the next year | 20,000,000 | ||
Non-U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.40% | 4.22% | 4.16% |
Rate of increase in compensation levels | 3.95% | 3.83% | 3.84% |
Long-term rate of return on assets | 5.51% | 5.49% | 5.78% |
Prior service cost to be amortized from accumulated other comprehensive loss next year | 100,000 | ||
Estimated net gain (loss) to be amortized from accumulated other comprehensive loss next year | -5,300,000 | ||
Company contributions | 22,740,000 | 22,695,000 | |
Estimated contributions in the next year | 12,000,000 | ||
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.75% | 4.00% | 3.25% |
Prior service cost to be amortized from accumulated other comprehensive loss next year | 200,000 | ||
Estimated net gain (loss) to be amortized from accumulated other comprehensive loss next year | 600,000 | ||
Company contributions | $3,800,000 | $3,700,000 | $3,800,000 |
Assumed rate of increase in medical costs | 7.50% | 7.50% | 8.00% |
Minimum medical cost rate to be acheived | 5.00% | ||
Equity Securities | U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation | 50.00% | 50.00% | |
Plan assets, actual allocation | 50.00% | 51.00% | |
Equity Securities | Non-U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation | 27.00% | 28.00% | |
Plan assets, actual allocation | 27.00% | 28.00% | |
Fixed Income | U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation | 50.00% | 50.00% | |
Plan assets, actual allocation | 50.00% | 49.00% | |
Fixed Income | Non-U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation | 71.00% | 69.00% | |
Plan assets, actual allocation | 71.00% | 69.00% | |
U.K. and Netherlands Plan Assets | Non-U.S Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, actual allocation | 97.00% |
Pension_and_Postretirement_Ben4
Pension and Postretirement Benefits (Net Benefit Costs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S Defined Benefit Plans | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | $22,981 | $23,355 | $21,222 |
Interest cost | 17,429 | 15,089 | 16,458 |
Expected return on plan assets | -21,985 | -19,952 | -21,153 |
Settlement and other | 0 | -28 | 0 |
Amortization of unrecognized prior service benefit | 475 | -87 | -1,238 |
Amortization of unrecognized net loss | 8,428 | 14,280 | 12,177 |
U.S. net pension expense | 27,328 | 32,657 | 27,466 |
Non-U.S Defined Benefit Plans | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 6,857 | 6,819 | 4,681 |
Interest cost | 14,576 | 13,486 | 13,724 |
Expected return on plan assets | -10,581 | -9,200 | -8,542 |
Settlement and other | 314 | 134 | 43 |
Amortization of unrecognized net loss | 6,962 | 6,650 | 4,020 |
U.S. net pension expense | 18,128 | 17,889 | 13,926 |
Postretirement Medical Benefits | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 3 | 6 | 11 |
Interest cost | 1,200 | 1,066 | 1,462 |
Amortization of unrecognized prior service benefit | 0 | 0 | -41 |
Amortization of unrecognized net loss | -1,220 | -1,280 | -1,542 |
U.S. net pension expense | ($17) | ($208) | ($110) |
Pension_and_Postretirement_Ben5
Pension and Postretirement Benefits (Funded Status) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
U.S Defined Benefit Plans | |||
Funded status of plan: | |||
Plan assets, at fair value | $426,784 | $410,462 | $380,342 |
Benefit Obligation | -447,552 | -405,812 | -423,547 |
Funded status | -20,768 | 4,650 | |
Non-U.S Defined Benefit Plans | |||
Funded status of plan: | |||
Plan assets, at fair value | 215,360 | 195,042 | 173,017 |
Benefit Obligation | -361,351 | -363,425 | -340,348 |
Funded status | -145,991 | -168,383 | |
Postretirement Medical Benefits | |||
Funded status of plan: | |||
Benefit Obligation | -33,019 | -31,477 | -34,967 |
Funded status | ($33,019) | ($31,477) |
Pension_and_Postretirement_Ben6
Pension and Postretirement Benefits (Amounts Recognized in Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Noncurrent liabilities | ($195,429) | ($199,634) |
U.S Defined Benefit Plans | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Noncurrent assets | 0 | 14,355 |
Current liabilities | -260 | -500 |
Noncurrent liabilities | -20,508 | -9,205 |
Funded status | -20,768 | 4,650 |
Non-U.S Defined Benefit Plans | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Noncurrent assets | 5,204 | 52 |
Current liabilities | -7,960 | -9,048 |
Noncurrent liabilities | -143,235 | -159,387 |
Funded status | -145,991 | -168,383 |
Postretirement Medical Benefits | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Current liabilities | -3,799 | -4,013 |
Noncurrent liabilities | -29,220 | -27,464 |
Funded status | ($33,019) | ($31,477) |
Pension_and_Postretirement_Ben7
Pension and Postretirement Benefits (Change in Benefit Obligation) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
U.S Defined Benefit Plans | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Balance — | $405,812 | $423,547 | |||
Service cost | 22,981 | 23,355 | 21,222 | ||
Interest cost | 17,429 | 15,089 | 16,458 | ||
Plan amendments | 2387 | 0 | |||
Actuarial loss (gain) | 32,425 | [1] | -22,356 | ||
Benefits paid | -33,482 | -33,823 | |||
Balance — | 447,552 | 405,812 | 423,547 | ||
Accumulated benefit obligations | 447,552 | 405,812 | |||
Non-U.S Defined Benefit Plans | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Balance — | 363,425 | 340,348 | |||
Service cost | 6,857 | 6,819 | 4,681 | ||
Interest cost | 14,576 | 13,486 | 13,724 | ||
Employee contributions | 272 | 267 | |||
Plan amendments and other | 162 | 1,573 | |||
Actuarial loss (gain) | 28,430 | [2] | 8,664 | [2] | |
Benefits paid | -17,985 | -16,491 | |||
Currency translation impact | -34,386 | [3] | 8,759 | [3] | |
Balance — | 361,351 | 363,425 | 340,348 | ||
Accumulated benefit obligations | 335,282 | 340,223 | |||
Postretirement Medical Benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Balance — | 31,477 | 34,967 | |||
Service cost | 3 | 6 | 11 | ||
Interest cost | 1,200 | 1,066 | 1,462 | ||
Employee contributions | 901 | 2,151 | |||
Medicare subsidies receivable | 453 | 789 | |||
Actuarial loss (gain) | 1,779 | -857 | |||
Plan Amendments | 2,339 | 0 | |||
Benefits paid | -5,133 | -6,645 | |||
Balance — | $33,019 | $31,477 | $34,967 | ||
[1] | The 2014 actuarial loss primarily reflects the impact of decrease in the discount rate. | ||||
[2] | The 2014 actuarial losses primarily reflect the impact of decrease in the discount rates in all countries except for Venezuela. | ||||
[3] | The currency translation impact reflects the strengthening of the U.S. dollar against our significant currencies, primarily the Euro and British pound. |
Pension_and_Postretirement_Ben8
Pension and Postretirement Benefits (Expected Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
U.S Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2015 | $36.60 |
Expected Payment, 2016 | 37.4 |
Expected Payment, 2017 | 37.9 |
Expected Payment, 2018 | 39.9 |
Expected Payment, 2019 | 40.5 |
Expected Payment, 2020-2024 | 215.8 |
Non-U.S Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2015 | 15.2 |
Expected Payment, 2016 | 13.4 |
Expected Payment, 2017 | 13.7 |
Expected Payment, 2018 | 14.7 |
Expected Payment, 2019 | 16.3 |
Expected Payment, 2020-2024 | 92.1 |
Postretirement Medical Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2015 | 3.9 |
Expected Payment, 2016 | 3.7 |
Expected Payment, 2017 | 3.5 |
Expected Payment, 2018 | 3.3 |
Expected Payment, 2019 | 3 |
Expected Payment, 2020-2024 | 11.2 |
Medicare Subsidy, 2015 | 0.1 |
Medicare Subsidy, 2016 | 0.1 |
Medicare Subsidy, 2017 | 0.1 |
Medicare Subsidy, 2018 | 0.1 |
Medicare Subsidy, 2019 | 0.1 |
Medicare Subsidy, 2020-2024 | $0.50 |
Pension_and_Postretirement_Ben9
Pension and Postretirement Benefits (Change in Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S Defined Benefit Plans | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | |||
Balance — | ($55,110) | ($90,270) | ($98,745) |
Amortization of net loss | 5,277 | 8,919 | 7,605 |
Amortization of prior service cost (benefit) | 297 | -54 | -773 |
Net (loss) gain arising during the year | -17,367 | 26,312 | 1,643 |
Settlement gain | 0 | -17 | 0 |
Balance — | -66,903 | -55,110 | -90,270 |
Non-U.S Defined Benefit Plans | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | |||
Balance — | -78,863 | -76,197 | -43,110 |
Amortization of net loss | 5,262 | 4,999 | 2,985 |
Net (loss) gain arising during the year | -3,709 | -6,091 | -33,692 |
Settlement loss | 216 | 93 | 100 |
Prior service benefit arising during the year | 141 | 137 | 32 |
Currency translation impact and other | 7,355 | -1,804 | -2,512 |
Balance — | -69,598 | -78,863 | -76,197 |
Postretirement Medical Benefits | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | |||
Balance — | 4,445 | 4,710 | 7,081 |
Amortization of net loss | -764 | -800 | -963 |
Amortization of prior service cost (benefit) | -1,464 | 0 | -26 |
Net (loss) gain arising during the year | -1,114 | 535 | -1,382 |
Balance — | $1,103 | $4,445 | $4,710 |
Recovered_Sheet1
Pension and Postretirement Benefits (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
U.S Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized net loss | ($64,970) | ($54,391) | ||
Unrecognized prior service cost | -1,933 | -719 | ||
Accumulated other comprehensive loss, net of tax | -66,903 | -55,110 | -90,270 | -98,745 |
Non-U.S Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized net loss | -69,161 | -77,379 | ||
Unrecognized prior service cost | -437 | -1,484 | ||
Accumulated other comprehensive loss, net of tax | -69,598 | -78,863 | -76,197 | -43,110 |
Postretirement Medical Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized net loss | 2,788 | 4,445 | ||
Unrecognized prior service cost | -1,685 | 0 | ||
Accumulated other comprehensive loss, net of tax | $1,103 | $4,445 | $4,710 | $7,081 |
Recovered_Sheet2
Pension and Postretirement Benefits (Plan Assets by Percentage Allocation) (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
U.S Defined Benefit Plans | U.S. Large Cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 19.00% | 19.00% | ||
Plan assets, actual allocation | 19.00% | 20.00% | ||
U.S Defined Benefit Plans | U.S. Small Cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 4.00% | 4.00% | ||
Plan assets, actual allocation | 4.00% | 4.00% | ||
U.S Defined Benefit Plans | International Large Cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 14.00% | 14.00% | ||
Plan assets, actual allocation | 14.00% | 14.00% | ||
U.S Defined Benefit Plans | Long-Term Government/Credit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 10.00% | 10.00% | ||
Plan assets, actual allocation | 10.00% | 10.00% | ||
U.S Defined Benefit Plans | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 0.00% | [1] | 0.00% | [1] |
Plan assets, actual allocation | 0.00% | [1] | 0.00% | [1] |
U.S Defined Benefit Plans | Emerging Markets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 5.00% | 5.00% | ||
Plan assets, actual allocation | 5.00% | 5.00% | ||
U.S Defined Benefit Plans | World Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 8.00% | 8.00% | ||
Plan assets, actual allocation | 8.00% | 8.00% | ||
U.S Defined Benefit Plans | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 50.00% | 50.00% | ||
Plan assets, actual allocation | 50.00% | 51.00% | ||
U.S Defined Benefit Plans | Liability Driven Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 40.00% | 40.00% | ||
Plan assets, actual allocation | 40.00% | 39.00% | ||
U.S Defined Benefit Plans | Fixed Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 50.00% | 50.00% | ||
Plan assets, actual allocation | 50.00% | 49.00% | ||
Non-U.S Defined Benefit Plans | North American Companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 3.00% | 3.00% | ||
Plan assets, actual allocation | 3.00% | 3.00% | ||
Non-U.S Defined Benefit Plans | U.K. Companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 9.00% | 10.00% | ||
Plan assets, actual allocation | 9.00% | 10.00% | ||
Non-U.S Defined Benefit Plans | European Companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 4.00% | 4.00% | ||
Plan assets, actual allocation | 4.00% | 4.00% | ||
Non-U.S Defined Benefit Plans | Asia Pacific Companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 3.00% | 3.00% | ||
Plan assets, actual allocation | 3.00% | 3.00% | ||
Non-U.S Defined Benefit Plans | Global Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 8.00% | 8.00% | ||
Plan assets, actual allocation | 8.00% | 8.00% | ||
Non-U.S Defined Benefit Plans | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 27.00% | 28.00% | ||
Plan assets, actual allocation | 27.00% | 28.00% | ||
Non-U.S Defined Benefit Plans | U.K. Government Gilt Index | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 30.00% | 28.00% | ||
Plan assets, actual allocation | 30.00% | 28.00% | ||
Non-U.S Defined Benefit Plans | U.K. Corporate Bond Index | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 22.00% | 21.00% | ||
Plan assets, actual allocation | 22.00% | 21.00% | ||
Non-U.S Defined Benefit Plans | Global Index Income Bond | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 19.00% | 20.00% | ||
Plan assets, actual allocation | 19.00% | 20.00% | ||
Non-U.S Defined Benefit Plans | Fixed Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 71.00% | 69.00% | ||
Plan assets, actual allocation | 71.00% | 69.00% | ||
Non-U.S Defined Benefit Plans | Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, target allocation | 2.00% | 3.00% | ||
Plan assets, actual allocation | 2.00% | 3.00% | ||
[1] | Less than 1% of holdings are in the Other category in 2014 and 2013. |
Recovered_Sheet3
Pension and Postretirement Benefits (Plan Assets) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
U.S Defined Benefit Plans | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Beginning balance | $410,462,000 | $380,342,000 | |||
Return on plan assets | 29,058,000 | 39,749,000 | |||
Company contributions | 20,746,000 | 24,194,000 | |||
Benefits paid | -33,482,000 | -33,823,000 | |||
Ending balance | 426,784,000 | 410,462,000 | |||
Fair value of plan assets | 426,784,000 | 410,462,000 | |||
U.S Defined Benefit Plans | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 40,000 | 2,860,000 | |||
Fair value of plan assets | 40,000 | 2,860,000 | |||
U.S Defined Benefit Plans | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 426,744,000 | 407,602,000 | |||
Fair value of plan assets | 426,744,000 | 407,602,000 | |||
U.S Defined Benefit Plans | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | 0 | |||
Fair value of plan assets | 0 | 0 | |||
U.S Defined Benefit Plans | Liability Driven Investment | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 172,758,000 | [1] | 157,638,000 | [1] | |
Fair value of plan assets | 172,758,000 | [1] | 157,638,000 | [1] | |
Plan assets, actual allocation | 40.00% | 39.00% | |||
U.S Defined Benefit Plans | Liability Driven Investment | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [1] | 0 | [1] | |
Fair value of plan assets | 0 | [1] | 0 | [1] | |
U.S Defined Benefit Plans | Liability Driven Investment | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 172,758,000 | [1] | 157,638,000 | [1] | |
Fair value of plan assets | 172,758,000 | [1] | 157,638,000 | [1] | |
U.S Defined Benefit Plans | Liability Driven Investment | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [1] | 0 | [1] | |
Fair value of plan assets | 0 | [1] | 0 | [1] | |
U.S Defined Benefit Plans | Cash | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 40,000 | 2,860,000 | |||
Fair value of plan assets | 40,000 | 2,860,000 | |||
U.S Defined Benefit Plans | Cash | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 40,000 | 2,860,000 | |||
Fair value of plan assets | 40,000 | 2,860,000 | |||
U.S Defined Benefit Plans | Cash | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | 0 | |||
Fair value of plan assets | 0 | 0 | |||
U.S Defined Benefit Plans | Cash | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | 0 | |||
Fair value of plan assets | 0 | 0 | |||
U.S Defined Benefit Plans | Equity Securities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 50.00% | 51.00% | |||
U.S Defined Benefit Plans | U.S. Large Cap | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 82,355,000 | [2] | 81,004,000 | [2] | |
Fair value of plan assets | 82,355,000 | [2] | 81,004,000 | [2] | |
Plan assets, actual allocation | 19.00% | 20.00% | |||
U.S Defined Benefit Plans | U.S. Large Cap | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [2] | 0 | [2] | |
Fair value of plan assets | 0 | [2] | 0 | [2] | |
U.S Defined Benefit Plans | U.S. Large Cap | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 82,355,000 | [2] | 81,004,000 | [2] | |
Fair value of plan assets | 82,355,000 | [2] | 81,004,000 | [2] | |
U.S Defined Benefit Plans | U.S. Large Cap | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [2] | 0 | [2] | |
Fair value of plan assets | 0 | [2] | 0 | [2] | |
U.S Defined Benefit Plans | U.S. Small Cap | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 17,422,000 | [3] | 17,136,000 | [3] | |
Fair value of plan assets | 17,422,000 | [3] | 17,136,000 | [3] | |
Plan assets, actual allocation | 4.00% | 4.00% | |||
U.S Defined Benefit Plans | U.S. Small Cap | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [3] | 0 | [3] | |
Fair value of plan assets | 0 | [3] | 0 | [3] | |
U.S Defined Benefit Plans | U.S. Small Cap | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 17,422,000 | [3] | 17,136,000 | [3] | |
Fair value of plan assets | 17,422,000 | [3] | 17,136,000 | [3] | |
U.S Defined Benefit Plans | U.S. Small Cap | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [3] | 0 | [3] | |
Fair value of plan assets | 0 | [3] | 0 | [3] | |
U.S Defined Benefit Plans | International Large Cap | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 56,716,000 | [4] | 58,675,000 | [4] | |
Fair value of plan assets | 56,716,000 | [4] | 58,675,000 | [4] | |
Plan assets, actual allocation | 14.00% | 14.00% | |||
U.S Defined Benefit Plans | International Large Cap | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [4] | 0 | [4] | |
Fair value of plan assets | 0 | [4] | 0 | [4] | |
U.S Defined Benefit Plans | International Large Cap | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 56,716,000 | [4] | 58,675,000 | [4] | |
Fair value of plan assets | 56,716,000 | [4] | 58,675,000 | [4] | |
U.S Defined Benefit Plans | International Large Cap | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [4] | 0 | [4] | |
Fair value of plan assets | 0 | [4] | 0 | [4] | |
U.S Defined Benefit Plans | Emerging Markets | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 19,175,000 | [5] | 19,772,000 | [5] | |
Fair value of plan assets | 19,175,000 | [5] | 19,772,000 | [5] | |
Plan assets, actual allocation | 5.00% | 5.00% | |||
U.S Defined Benefit Plans | Emerging Markets | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [5] | 0 | [5] | |
Fair value of plan assets | 0 | [5] | 0 | [5] | |
U.S Defined Benefit Plans | Emerging Markets | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 19,175,000 | [5] | 19,772,000 | [5] | |
Fair value of plan assets | 19,175,000 | [5] | 19,772,000 | [5] | |
U.S Defined Benefit Plans | Emerging Markets | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [5] | 0 | [5] | |
Fair value of plan assets | 0 | [5] | 0 | [5] | |
U.S Defined Benefit Plans | World Equity | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 34,384,000 | 34,069,000 | [6] | ||
Fair value of plan assets | 34,384,000 | 34,069,000 | [6] | ||
Plan assets, actual allocation | 8.00% | 8.00% | |||
U.S Defined Benefit Plans | World Equity | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [6] | 0 | [6] | |
Fair value of plan assets | 0 | [6] | 0 | [6] | |
U.S Defined Benefit Plans | World Equity | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 34,384,000 | [6] | 34,069,000 | [6] | |
Fair value of plan assets | 34,384,000 | [6] | 34,069,000 | [6] | |
U.S Defined Benefit Plans | World Equity | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [6] | 0 | [6] | |
Fair value of plan assets | 0 | [6] | 0 | [6] | |
U.S Defined Benefit Plans | Fixed Income | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 50.00% | 49.00% | |||
U.S Defined Benefit Plans | Long-Term Government/Credit | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 43,934,000 | [7] | 39,308,000 | [7] | |
Fair value of plan assets | 43,934,000 | [7] | 39,308,000 | [7] | |
Plan assets, actual allocation | 10.00% | 10.00% | |||
U.S Defined Benefit Plans | Long-Term Government/Credit | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [7] | 0 | [7] | |
Fair value of plan assets | 0 | [7] | 0 | [7] | |
U.S Defined Benefit Plans | Long-Term Government/Credit | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 43,934,000 | [7] | 39,308,000 | [7] | |
Fair value of plan assets | 43,934,000 | [7] | 39,308,000 | [7] | |
U.S Defined Benefit Plans | Long-Term Government/Credit | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [7] | 0 | [7] | |
Fair value of plan assets | 0 | [7] | 0 | [7] | |
U.S Defined Benefit Plans | Other | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 0.00% | [8] | 0.00% | [8] | |
Non-U.S Defined Benefit Plans | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Beginning balance | 195,042,000 | 173,017,000 | |||
Return on plan assets | 30,246,000 | 10,480,000 | |||
Employee contributions | 272,000 | 267,000 | |||
Company contributions | 22,740,000 | 22,695,000 | |||
Currency translation impact and other | -14,955,000 | 5,074,000 | |||
Benefits paid | -17,985,000 | -16,491,000 | |||
Ending balance | 215,360,000 | 195,042,000 | |||
Estimated contributions in the next year | 12,000,000 | ||||
Fair value of plan assets | 215,360,000 | 195,042,000 | |||
Non-U.S Defined Benefit Plans | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 24,000 | 189,000 | |||
Fair value of plan assets | 24,000 | 189,000 | |||
Non-U.S Defined Benefit Plans | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 210,153,000 | 189,078,000 | |||
Fair value of plan assets | 210,153,000 | 189,078,000 | |||
Non-U.S Defined Benefit Plans | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 5,183,000 | 5,775,000 | |||
Fair value of plan assets | 5,183,000 | 5,775,000 | |||
Non-U.S Defined Benefit Plans | Cash | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 24,000 | 189,000 | |||
Fair value of plan assets | 24,000 | 189,000 | |||
Non-U.S Defined Benefit Plans | Cash | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 24,000 | 189,000 | |||
Fair value of plan assets | 24,000 | 189,000 | |||
Non-U.S Defined Benefit Plans | Cash | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | 0 | |||
Fair value of plan assets | 0 | 0 | |||
Non-U.S Defined Benefit Plans | Cash | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | 0 | |||
Fair value of plan assets | 0 | 0 | |||
Non-U.S Defined Benefit Plans | Equity Securities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 27.00% | 28.00% | |||
Non-U.S Defined Benefit Plans | North American Companies | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 7,155,000 | [9] | 6,459,000 | [9] | |
Fair value of plan assets | 7,155,000 | [9] | 6,459,000 | [9] | |
Plan assets, actual allocation | 3.00% | 3.00% | |||
Non-U.S Defined Benefit Plans | North American Companies | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [9] | 0 | [9] | |
Fair value of plan assets | 0 | [9] | 0 | [9] | |
Non-U.S Defined Benefit Plans | North American Companies | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 7,155,000 | [9] | 6,459,000 | [9] | |
Fair value of plan assets | 7,155,000 | [9] | 6,459,000 | [9] | |
Non-U.S Defined Benefit Plans | North American Companies | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [9] | 0 | [9] | |
Fair value of plan assets | 0 | [9] | 0 | [9] | |
Non-U.S Defined Benefit Plans | U.K. Companies | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 18,829,000 | [10] | 19,448,000 | [10] | |
Fair value of plan assets | 18,829,000 | [10] | 19,448,000 | [10] | |
Plan assets, actual allocation | 9.00% | 10.00% | |||
Non-U.S Defined Benefit Plans | U.K. Companies | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [10] | 0 | [10] | |
Fair value of plan assets | 0 | [10] | 0 | [10] | |
Non-U.S Defined Benefit Plans | U.K. Companies | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 18,829,000 | [10] | 19,448,000 | [10] | |
Fair value of plan assets | 18,829,000 | [10] | 19,448,000 | [10] | |
Non-U.S Defined Benefit Plans | U.K. Companies | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [10] | 0 | [10] | |
Fair value of plan assets | 0 | [10] | 0 | [10] | |
Non-U.S Defined Benefit Plans | European Companies | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 8,018,000 | [11] | 8,060,000 | [11] | |
Fair value of plan assets | 8,018,000 | [11] | 8,060,000 | [11] | |
Plan assets, actual allocation | 4.00% | 4.00% | |||
Non-U.S Defined Benefit Plans | European Companies | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [11] | 0 | [11] | |
Fair value of plan assets | 0 | [11] | 0 | [11] | |
Non-U.S Defined Benefit Plans | European Companies | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 8,018,000 | [11] | 8,060,000 | [11] | |
Fair value of plan assets | 8,018,000 | [11] | 8,060,000 | [11] | |
Non-U.S Defined Benefit Plans | European Companies | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [11] | 0 | [11] | |
Fair value of plan assets | 0 | [11] | 0 | [11] | |
Non-U.S Defined Benefit Plans | Asia Pacific Companies | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 5,367,000 | [12] | 5,613,000 | [12] | |
Fair value of plan assets | 5,367,000 | [12] | 5,613,000 | [12] | |
Plan assets, actual allocation | 3.00% | 3.00% | |||
Non-U.S Defined Benefit Plans | Asia Pacific Companies | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [12] | 0 | [12] | |
Fair value of plan assets | 0 | [12] | 0 | [12] | |
Non-U.S Defined Benefit Plans | Asia Pacific Companies | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 5,367,000 | [12] | 5,613,000 | [12] | |
Fair value of plan assets | 5,367,000 | [12] | 5,613,000 | [12] | |
Non-U.S Defined Benefit Plans | Asia Pacific Companies | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [12] | 0 | [12] | |
Fair value of plan assets | 0 | [12] | 0 | [12] | |
Non-U.S Defined Benefit Plans | Global Equity | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 17,120,000 | [13] | 16,046,000 | [13] | |
Fair value of plan assets | 17,120,000 | [13] | 16,046,000 | [13] | |
Plan assets, actual allocation | 8.00% | 8.00% | |||
Non-U.S Defined Benefit Plans | Global Equity | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [13] | 0 | [13] | |
Fair value of plan assets | 0 | [13] | 0 | [13] | |
Non-U.S Defined Benefit Plans | Global Equity | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 17,120,000 | [13] | 16,046,000 | [13] | |
Fair value of plan assets | 17,120,000 | [13] | 16,046,000 | [13] | |
Non-U.S Defined Benefit Plans | Global Equity | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [13] | 0 | [13] | |
Fair value of plan assets | 0 | [13] | 0 | [13] | |
Non-U.S Defined Benefit Plans | U.K. and Netherlands Plan Assets | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 97.00% | ||||
Non-U.S Defined Benefit Plans | Fixed Income | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Plan assets, actual allocation | 71.00% | 69.00% | |||
Non-U.S Defined Benefit Plans | U.K. Government Gilt Index | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 65,161,000 | [14] | 55,078,000 | [14] | |
Fair value of plan assets | 65,161,000 | [14] | 55,078,000 | [14] | |
Plan assets, actual allocation | 30.00% | 28.00% | |||
Non-U.S Defined Benefit Plans | U.K. Government Gilt Index | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [14] | 0 | [14] | |
Fair value of plan assets | 0 | [14] | 0 | [14] | |
Non-U.S Defined Benefit Plans | U.K. Government Gilt Index | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 65,161,000 | [14] | 55,078,000 | [14] | |
Fair value of plan assets | 65,161,000 | [14] | 55,078,000 | [14] | |
Non-U.S Defined Benefit Plans | U.K. Government Gilt Index | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [14] | 0 | [14] | |
Fair value of plan assets | 0 | [14] | 0 | [14] | |
Non-U.S Defined Benefit Plans | U.K. Corporate Bond Index | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 47,683,000 | [15] | 40,039,000 | [15] | |
Fair value of plan assets | 47,683,000 | [15] | 40,039,000 | [15] | |
Plan assets, actual allocation | 22.00% | 21.00% | |||
Non-U.S Defined Benefit Plans | U.K. Corporate Bond Index | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [15] | 0 | [15] | |
Fair value of plan assets | 0 | [15] | 0 | [15] | |
Non-U.S Defined Benefit Plans | U.K. Corporate Bond Index | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 47,683,000 | [15] | 40,039,000 | [15] | |
Fair value of plan assets | 47,683,000 | [15] | 40,039,000 | [15] | |
Non-U.S Defined Benefit Plans | U.K. Corporate Bond Index | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [15] | 0 | [15] | |
Fair value of plan assets | 0 | [15] | 0 | [15] | |
Non-U.S Defined Benefit Plans | Global Index Income Bond | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 40,820,000 | [16] | 38,335,000 | [16] | |
Fair value of plan assets | 40,820,000 | [16] | 38,335,000 | [16] | |
Plan assets, actual allocation | 19.00% | 20.00% | |||
Non-U.S Defined Benefit Plans | Global Index Income Bond | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [16] | 0 | [16] | |
Fair value of plan assets | 0 | [16] | 0 | [16] | |
Non-U.S Defined Benefit Plans | Global Index Income Bond | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 40,820,000 | [16] | 38,335,000 | [16] | |
Fair value of plan assets | 40,820,000 | [16] | 38,335,000 | [16] | |
Non-U.S Defined Benefit Plans | Global Index Income Bond | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [16] | 0 | [16] | |
Fair value of plan assets | 0 | [16] | 0 | [16] | |
Non-U.S Defined Benefit Plans | Other | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 5,183,000 | [17] | 5,775,000 | [17] | |
Fair value of plan assets | 5,183,000 | [17] | 5,775,000 | [17] | |
Non-U.S Defined Benefit Plans | Other | Hierarchial Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [17] | 0 | [17] | |
Fair value of plan assets | 0 | [17] | 0 | [17] | |
Non-U.S Defined Benefit Plans | Other | Hierarchial Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 0 | [17] | 0 | [17] | |
Fair value of plan assets | 0 | [17] | 0 | [17] | |
Non-U.S Defined Benefit Plans | Other | Hierarchial Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Ending balance | 5,183,000 | [17] | 5,775,000 | [17] | |
Fair value of plan assets | 5,183,000 | [17] | 5,775,000 | [17] | |
Postretirement Medical Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Amendments | -2,339,000 | 0 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Employee contributions | 901,000 | 2,151,000 | |||
Company contributions | 3,800,000 | 3,700,000 | 3,800,000 | ||
Benefits paid | -5,133,000 | -6,645,000 | |||
Minimum | U.S Defined Benefit Plans | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Estimated contributions in the next year | $20,000,000 | ||||
[1] | (f)LDI funds seek to outperform the Barclays-Russell LDI Index by investing in high quality, mostly corporate bonds and fixed income securities that closely match those found in discount curves used to value the plan's liabilities. | ||||
[2] | (a)U.S. Large Cap funds seek to outperform the Russell 1000 (R) Index with investments in large and medium capitalization U.S. companies represented in the Russell 1000 (R) Index, which is composed of the largest 1,000 U.S. equities as determined by market capitalization. | ||||
[3] | (b)U.S. Small Cap funds seek to outperform the Russell 2000 (R) Index with investments in medium and small capitalization U.S. companies represented in the Russell 2000 (R) Index, which is composed of the smallest 2,000 U.S. equities as determined by market capitalization. | ||||
[4] | (c)International Large Cap funds seek to outperform the MSCI Europe, Australia, and Far East Index with investments in most of the developed nations of the world so as to maintain a high degree of diversification among countries and currencies. | ||||
[5] | (d)Emerging Markets funds represent a diversified portfolio that seeks high, long-term returns comparable to investments in emerging markets by investing in stocks from newly developed emerging market economies. | ||||
[6] | (e)World Equity funds seek to outperform the Russell Developed Large Cap Index Net over a full market cycle. The fund's goal is to provide a favorable total return relative to the benchmark, primarily through long-term capital appreciation. | ||||
[7] | (g)Long-Term Government/Credit funds seek to outperform the Barclays Capital U.S. Long-Term Government/Credit Index by generating excess return through a variety of diversified strategies in securities with longer durations, such as sector rotation, security selection and tactical use of high-yield bonds. | ||||
[8] | Less than 1% of holdings are in the Other category in 2014 and 2013. | ||||
[9] | North American Companies represents U.S. and Canadian large cap equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). | ||||
[10] | U.K. Companies represents a U.K. equity index fund, which is passively managed and tracks the FTSE All-Share Index. | ||||
[11] | European companies represents a European equity index fund, which is passively managed and tracks the FTSE All-World Developed Europe Ex-U.K. Index. | ||||
[12] | Asian Pacific Companies represents Japanese and Pacific Rim equity index funds, which are passively managed and track their respective benchmarks (FTSE All-World Japan Index and FTSE All-World Developed Asia Pacific Ex-Japan Index). | ||||
[13] | Global Equity represents actively managed, global equity funds taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. | ||||
[14] | U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed and track the respective benchmarks (FTSE U.K. Gilt Index-Linked Over 5 Years Index, FTSE U.K. Gilt Over 15 Years Index and FTSE U.K. Gilt Index-Linked Over 25 Years Index). | ||||
[15] | U.K. Corporate Bond Index represents U.K. corporate bond investments, which are passively managed and track the iBoxx Over 15 years £ Non-Gilt Index. | ||||
[16] | Global Fixed Income Bond represents mostly European fixed income investment funds that are actively managed, diversified and primarily invested in traditional government bonds, high-quality corporate bonds, asset backed securities, emerging market debt and high yield corporate bonds. | ||||
[17] | Includes assets held by plans outside the U.K. and The Netherlands. Details, including Level III rollforward details, have not been provided due to immateriality. |
Recovered_Sheet4
Pension and Postretirement Benefits (Accumulated and Projected Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Benefit Obligation | $619,756 | $367,460 |
Accumulated benefit obligation | 600,017 | 346,684 |
Fair value of plan assets | $449,141 | $189,827 |
Recovered_Sheet5
Pension and Postretirement Benefits (Effect of One Percentage Point) (Details) (Postretirement Medical Benefits, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Postretirement Medical Benefits | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |
Effect on postretirement Benefit Obligation, 1% Increase | $245 |
Effect on postretirement Benefit Obligation, 1% Decrease | -248 |
Effect on service cost plus interest cost, 1% Increase | 6 |
Effect on service cost plus interest cost, 1% Decrease | ($7) |
Legal_Matters_and_Contingencie1
Legal Matters and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
site | |
Loss Contingencies [Line Items] | |
Number of former public waste disposal sites | 5 |
Oil-for-Food Program | |
Loss Contingencies [Line Items] | |
Number of French companies for investigation | 170 |
Number of our French companies for investigation | 1 |
Number of participants in U.N Oil-for-Food Program | 93 |
Number of foreign subsidiaries | 2 |
Warranty_Reserve_Details
Warranty Reserve (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Balance — | $37,828 | $35,400 | $38,033 |
Accruals for warranty expense, net of adjustments | 24,909 | 33,504 | 28,851 |
Settlements made | -31,642 | -31,076 | -31,484 |
Balance — | $31,095 | $37,828 | $35,400 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 12, 2012 | Dec. 31, 2011 | Feb. 17, 2014 | 23-May-13 | 22-May-13 | Feb. 19, 2013 | Feb. 16, 2015 | Nov. 18, 2014 | 31-May-12 | Feb. 18, 2013 | Jun. 15, 2012 | |
Common stock, shares authorized | 305,000,000 | 305,000,000 | 305,000,000 | 120,000,000 | |||||||||||
Stock split, conversion ratio | 3 | ||||||||||||||
Common Stock Dividends, Shares, Percentage | 200.00% | ||||||||||||||
Stock Issued During Period, Shares, Stock Splits | 117,861,772 | ||||||||||||||
Common shares, par value | $1.25 | $1.25 | $1.25 | ||||||||||||
Adjustments to Additional Paid in Capital, Stock Split | $147,300,000 | ||||||||||||||
Dividend Per Common Share Minimum | $0.14 | $0.12 | |||||||||||||
Dividend Per Common Share Maximum | $0.16 | $0.14 | |||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 464,400,000 | ||||||||||||||
Treasury stock, acquired | 246,504,000 | 458,310,000 | 771,942,000 | ||||||||||||
Subsequent Event | |||||||||||||||
Dividend Per Common Share Minimum | $0.16 | ||||||||||||||
Dividend Per Common Share Maximum | $0.18 | ||||||||||||||
Share Repurchase Program 2012 | |||||||||||||||
Stock Repurchase Program, Authorized Amount | 1,000,000,000 | ||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 175,000,000 | ||||||||||||||
Treasury stock, shares acquired | 8,142,723 | ||||||||||||||
Treasury stock, acquired | 458,300,000 | ||||||||||||||
Share repurchase program 2013 | |||||||||||||||
Stock Repurchase Program, Authorized Amount | 500,000,000 | 750,000,000 | |||||||||||||
Treasury stock, shares acquired | 3,420,656 | ||||||||||||||
Treasury stock, acquired | 246,500,000 | ||||||||||||||
ASR Program | |||||||||||||||
Stock Repurchase Program, Authorized Amount | 300,000,000 | ||||||||||||||
Treasury stock, shares acquired | 7,243,191 | ||||||||||||||
Treasury stock acquired, weighted average price per share | $42.31 | ||||||||||||||
Share Repurchase Program 2011 | |||||||||||||||
Treasury stock, shares acquired | 18,638,340 | ||||||||||||||
Treasury stock, acquired | $771,900,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current: | ||||
U.S. federal | $62,301,000 | $61,670,000 | $73,444,000 | |
Non-U.S. | 123,052,000 | 112,471,000 | 101,166,000 | |
State and local | 7,422,000 | 7,537,000 | 3,454,000 | |
Total current | 192,775,000 | 181,678,000 | 178,064,000 | |
Deferred: | ||||
U.S. federal | 1,270,000 | 8,771,000 | -823,000 | |
Non-U.S. | 13,016,000 | 13,120,000 | -17,268,000 | |
State and local | 1,244,000 | 1,132,000 | 793,000 | |
Total deferred | 15,530,000 | 23,023,000 | -17,298,000 | |
Total provision | 208,305,000 | 204,701,000 | 160,766,000 | |
Tax deductions related to exercise of non-qualified employee stock options and vesting of restricted stock | 8,600,000 | 10,100,000 | 11,000,000 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Statutory federal income tax at 35% | 256,600,000 | 242,600,000 | 214,000,000 | |
Foreign impact, net | -58,700,000 | -40,700,000 | -50,600,000 | |
State and local income taxes, net | 8,700,000 | 8,700,000 | 4,200,000 | |
Other | 1,700,000 | -5,900,000 | -6,800,000 | |
Effective tax rate | 28.40% | 29.50% | 26.30% | |
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Cumulative amount of undistributed earnings considered permanently reinvested | 1,700,000,000 | |||
Cash and deemed dividend distributions, tax (expense) benefit | 6,900,000 | 5,000,000 | 2,300,000 | |
Deferred tax assets related to: | ||||
Retirement benefits | 35,501,000 | 25,798,000 | ||
Net operating loss carryforwards | 23,483,000 | 23,943,000 | ||
Compensation accruals | 56,903,000 | 54,518,000 | ||
Inventories | 51,528,000 | 56,487,000 | ||
Credit carryforwards | 32,039,000 | 32,384,000 | ||
Warranty and accrued liabilities | 13,913,000 | 20,626,000 | ||
Other | 43,603,000 | 42,809,000 | ||
Total deferred tax assets | 256,970,000 | 256,565,000 | ||
Valuation allowances | -15,378,000 | -18,058,000 | ||
Net deferred tax assets | 241,592,000 | 238,507,000 | ||
Deferred tax liabilities related to: | ||||
Property, plant and equipment | -30,077,000 | -36,191,000 | ||
Goodwill and intangibles | -150,741,000 | -138,635,000 | ||
Other | -2,182,000 | -9,269,000 | ||
Total deferred tax liabilities | -183,000,000 | -184,095,000 | ||
Deferred tax assets, net | 58,592,000 | 54,412,000 | ||
Net operating loss carryforwards | 138,000,000 | |||
Earnings before income taxes comprised: | ||||
U.S. | 230,896,000 | 231,179,000 | 220,684,000 | |
Non-U.S. | 502,294,000 | 461,842,000 | 390,881,000 | |
Total | 733,190,000 | 693,021,000 | 611,565,000 | |
Reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalities: | ||||
Balance — | 59,300,000 | 59,100,000 | 93,800,000 | |
Gross amount of increases (decreases) in unrecognized tax benefits resulting from tax positions taken: | ||||
During a prior year | 2,700,000 | 3,900,000 | -1,400,000 | |
During the current period | 7,200,000 | 8,900,000 | 10,300,000 | |
Decreases in unrecognized tax benefits relating to: | ||||
Settlements with taxing authorities | -3,900,000 | -100,000 | -21,000,000 | |
Lapse of the applicable statute of limitations | -10,000,000 | -11,500,000 | -23,000,000 | |
(Decreases) increases in unrecognized tax benefits relating to foreign currency translation adjustments | -3,800,000 | -1,000,000 | 400,000 | |
Balance — | 51,500,000 | 59,300,000 | 59,100,000 | 93,800,000 |
Gross unrecognized tax benefits | 66,200,000 | |||
Gross unrecognized tax benefits, accrued interest and penalties | 14,700,000 | |||
Unrecognized tax benefits, if recognized, would favorably impact effective tax rate | 53,300,000 | |||
Interest and penalties recognized in consolidated statements of income | 1,500,000 | 2,400,000 | 2,900,000 | |
Unrecognized tax benefits minimum amount of estimated reduction within the next twelve months | 12,000,000 | |||
State | ||||
Deferred tax liabilities related to: | ||||
Net operating loss carryforwards | 35,200,000 | |||
Foreign Tax Authority | ||||
Deferred tax liabilities related to: | ||||
Tax credit carryforwards | 29,700,000 | |||
Decreases in unrecognized tax benefits relating to: | ||||
Tax Credit Carryforward, Valuation Allowance | $600,000 |
Business_Segment_Information_R
Business Segment Information (Reportable Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments (in segments) | 3 | ||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | $1,381,400 | $1,204,000 | $1,224,400 | $1,068,100 | $1,389,400 | $1,229,100 | $1,239,500 | $1,096,600 | $4,877,885 | $4,954,619 | $4,751,339 |
Intersegment sales | 0 | 0 | 0 | ||||||||
Segment operating income | 789,832 | 760,283 | 675,778 | ||||||||
Depreciation and amortization | 110,277 | 106,392 | 107,226 | ||||||||
Identifiable assets | 4,968,020 | 5,036,733 | 4,968,020 | 5,036,733 | 4,810,958 | ||||||
Capital expenditures | 132,619 | 139,090 | 135,539 | ||||||||
Subtotal—Reportable Segments | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 4,877,885 | 4,954,619 | 4,751,339 | ||||||||
Intersegment sales | 134,812 | 148,357 | 162,784 | ||||||||
Segment operating income | 875,217 | 846,964 | 749,006 | ||||||||
Depreciation and amortization | 101,223 | 97,206 | 97,833 | ||||||||
Identifiable assets | 4,491,753 | 4,608,201 | 4,491,753 | 4,608,201 | 4,454,753 | ||||||
Capital expenditures | 121,768 | 133,029 | 127,628 | ||||||||
EPD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 2,396,068 | 2,473,731 | 2,338,527 | ||||||||
Intersegment sales | 67,974 | 63,365 | 64,621 | ||||||||
Segment operating income | 427,080 | 423,339 | 396,082 | ||||||||
Depreciation and amortization | 48,765 | 46,494 | 48,007 | ||||||||
Identifiable assets | 2,249,033 | 2,260,961 | 2,249,033 | 2,260,961 | 2,223,791 | ||||||
Capital expenditures | 65,762 | 75,379 | 64,038 | ||||||||
IPD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 872,563 | 873,389 | 863,941 | ||||||||
Intersegment sales | 60,364 | 76,779 | 89,957 | ||||||||
Segment operating income | 125,292 | 115,658 | 99,526 | ||||||||
Depreciation and amortization | 17,000 | 14,122 | 13,408 | ||||||||
Identifiable assets | 774,964 | 827,155 | 774,964 | 827,155 | 745,276 | ||||||
Capital expenditures | 18,510 | 17,445 | 17,351 | ||||||||
FCD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 1,609,254 | 1,607,499 | 1,548,871 | ||||||||
Intersegment sales | 6,474 | 8,213 | 8,206 | ||||||||
Segment operating income | 322,845 | 307,967 | 253,398 | ||||||||
Depreciation and amortization | 35,458 | 36,590 | 36,418 | ||||||||
Identifiable assets | 1,467,756 | 1,520,085 | 1,467,756 | 1,520,085 | 1,485,686 | ||||||
Capital expenditures | 37,496 | 40,205 | 46,239 | ||||||||
Eliminations and All Other | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 0 | 0 | 0 | ||||||||
Intersegment sales | -134,812 | -148,357 | -162,784 | ||||||||
Segment operating income | -85,385 | -86,681 | -73,228 | ||||||||
Depreciation and amortization | 9,054 | 9,186 | 9,393 | ||||||||
Identifiable assets | 476,267 | 428,532 | 476,267 | 428,532 | 356,205 | ||||||
Capital expenditures | $10,851 | $6,061 | $7,911 |
Business_Segment_Information_S
Business Segment Information (Sales and Long-lived Assets by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Sales | $1,381,400 | $1,204,000 | $1,224,400 | $1,068,100 | $1,389,400 | $1,229,100 | $1,239,500 | $1,096,600 | $4,877,885 | $4,954,619 | $4,751,339 | ||||||
Percentage | 100.00% | 100.00% | 100.00% | ||||||||||||||
Long-Lived Assets | 928,846 | 901,719 | 928,846 | 901,719 | 840,109 | ||||||||||||
Percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||
Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Percentage of net sales to international customers to total sales | 68.00% | 71.00% | 71.00% | ||||||||||||||
United States | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Sales | 1,724,392 | 1,699,053 | 1,597,737 | ||||||||||||||
Percentage | 35.40% | 34.30% | 33.60% | ||||||||||||||
Long-Lived Assets | 386,489 | 374,125 | 386,489 | 374,125 | 332,667 | ||||||||||||
Percentage | 41.60% | 41.50% | 41.60% | 41.50% | 39.60% | ||||||||||||
EMA | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Sales | 1,991,638 | [1] | 2,102,428 | [1] | 2,054,809 | [1] | |||||||||||
Percentage | 40.80% | [1] | 42.40% | [1] | 43.20% | [1] | |||||||||||
Long-Lived Assets | 268,334 | [1] | 287,071 | [1] | 268,334 | [1] | 287,071 | [1] | 273,274 | [1] | |||||||
Percentage | 28.90% | [1] | 31.80% | [1] | 28.90% | [1] | 31.80% | [1] | 32.50% | [1] | |||||||
EMA | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||||||||
Asia | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Sales | 571,195 | [2] | 552,383 | [2] | 548,589 | [2] | |||||||||||
Percentage | 11.70% | [2] | 11.20% | [2] | 11.60% | [2] | |||||||||||
Long-Lived Assets | 126,878 | [2] | 124,619 | [2] | 126,878 | [2] | 124,619 | [2] | 122,911 | [2] | |||||||
Percentage | 13.70% | [2] | 13.80% | [2] | 13.70% | [2] | 13.80% | [2] | 14.60% | [2] | |||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||||||||
Other | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Sales | 590,660 | [3] | 600,755 | [3] | 550,204 | [3] | |||||||||||
Percentage | 12.10% | [3] | 12.10% | [3] | 11.60% | [3] | |||||||||||
Long-Lived Assets | $147,145 | [3] | $115,904 | [3] | $147,145 | [3] | $115,904 | [3] | $111,257 | [3] | |||||||
Percentage | 15.80% | [3] | 12.90% | [3] | 15.80% | [3] | 12.90% | [3] | 13.30% | [3] | |||||||
Other | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||||||||
[1] | No individual country within this group represents 10% or more of consolidated totals for any period presented. | ||||||||||||||||
[2] | "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. | ||||||||||||||||
[3] | "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Balance - | ($220,295,000) | ($223,094,000) | ($220,295,000) | ($223,094,000) | |||||||
Other comprehensive (loss) income before reclassifications | -171,999,000 | -12,637,000 | |||||||||
Amounts reclassified from AOCL | 13,153,000 | 15,436,000 | |||||||||
Net current-period other comprehensive (loss) income | -158,846,000 | 2,799,000 | -8,318,000 | ||||||||
Balance - | -379,141,000 | -220,295,000 | -379,141,000 | -220,295,000 | -223,094,000 | ||||||
Net earnings from affiliates | 12,115,000 | 39,017,000 | 16,952,000 | ||||||||
Tax (expense) benefit | -208,305,000 | -204,701,000 | -160,766,000 | ||||||||
Net of tax | 159,000,000 | 128,600,000 | 123,500,000 | 107,700,000 | 141,100,000 | 126,300,000 | 120,400,000 | 97,800,000 | 518,824,000 | 485,530,000 | 448,339,000 |
Other income (expense), net | -60,322,000 | -54,413,000 | -43,520,000 | ||||||||
Losses expected to be recognized in next twelve months, net | 3,800,000 | 3,800,000 | |||||||||
Foreign currency translation items | |||||||||||
Balance - | -89,953,000 | -61,083,000 | -89,953,000 | -61,083,000 | |||||||
Other comprehensive (loss) income before reclassifications | -150,357,000 | -30,087,000 | |||||||||
Amounts reclassified from AOCL | 1,777,000 | 1,217,000 | |||||||||
Net current-period other comprehensive (loss) income | -148,580,000 | -28,870,000 | |||||||||
Balance - | -238,533,000 | -89,953,000 | -238,533,000 | -89,953,000 | |||||||
Foreign currency translation items | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Net earnings from affiliates | 0 | -1,217,000 | |||||||||
Release of cumulative translation adjustments due to sale of business | -1,777,000 | 0 | |||||||||
Tax (expense) benefit | 0 | 0 | |||||||||
Net of tax | -1,777,000 | -1,217,000 | |||||||||
Pension and other post-retirement effects | |||||||||||
Balance - | -129,528,000 | -161,757,000 | -129,528,000 | -161,757,000 | |||||||
Other comprehensive (loss) income before reclassifications | -16,300,000 | 18,951,000 | |||||||||
Amounts reclassified from AOCL | 10,430,000 | 13,278,000 | |||||||||
Net current-period other comprehensive (loss) income | -5,870,000 | 32,229,000 | |||||||||
Balance - | -135,398,000 | -129,528,000 | -135,398,000 | -129,528,000 | |||||||
Pension and other post-retirement effects | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Tax (expense) benefit | 4,528,000 | 6,391,000 | |||||||||
Net of tax | -10,430,000 | -13,278,000 | |||||||||
Pension and other postretirement effects | -13,976,000 | -19,669,000 | |||||||||
Amortization of actuarial losses | 668,000 | 0 | |||||||||
Settlement | -314,000 | 0 | |||||||||
Cash flow hedging activity | |||||||||||
Balance - | -814,000 | -254,000 | -814,000 | -254,000 | |||||||
Other comprehensive (loss) income before reclassifications | -5,342,000 | -1,501,000 | |||||||||
Amounts reclassified from AOCL | 946,000 | 941,000 | |||||||||
Net current-period other comprehensive (loss) income | -4,396,000 | -560,000 | |||||||||
Balance - | -5,210,000 | -814,000 | -5,210,000 | -814,000 | |||||||
Cash flow hedging activity | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Tax (expense) benefit | 588,000 | 565,000 | |||||||||
Net of tax | -946,000 | -941,000 | |||||||||
Other income (expense), net | -1,534,000 | -1,506,000 | |||||||||
Noncontrolling Interests | |||||||||||
Net current-period other comprehensive (loss) income | 83,000 | -34,000 | -105,000 | ||||||||
Foreign currency translation adjustments, attributable to noncontrolling interest | $1,300,000 | $1,200,000 | $1,300,000 | $1,200,000 | $1,200,000 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Sales | $1,381,400,000 | $1,204,000,000 | $1,224,400,000 | $1,068,100,000 | $1,389,400,000 | $1,229,100,000 | $1,239,500,000 | $1,096,600,000 | $4,877,885,000 | $4,954,619,000 | $4,751,339,000 | ||||||||
Gross profit | 485,700,000 | 421,500,000 | 430,300,000 | 377,100,000 | 470,500,000 | 422,700,000 | 421,600,000 | 373,300,000 | 1,714,617,000 | 1,688,095,000 | 1,580,951,000 | ||||||||
Earnings before income taxes | 227,300,000 | 183,300,000 | 176,000,000 | 146,600,000 | 191,700,000 | 182,400,000 | 171,300,000 | 147,600,000 | 733,190,000 | 693,021,000 | 611,565,000 | ||||||||
Net earnings attributable to Flowserve Corporation | 159,000,000 | 128,600,000 | 123,500,000 | 107,700,000 | 141,100,000 | 126,300,000 | 120,400,000 | 97,800,000 | 518,824,000 | 485,530,000 | 448,339,000 | ||||||||
Earnings per share: | |||||||||||||||||||
Basic (in dollars per share) | $1.17 | [1] | $0.94 | [1] | $0.90 | [1] | $0.78 | [1] | $1.01 | [1] | $0.90 | [1] | $0.85 | [1] | $0.68 | [1] | $3.79 | $3.43 | $2.86 |
Diluted (in dollars per share) | $1.16 | [1] | $0.93 | [1] | $0.90 | [1] | $0.78 | [1] | $1.01 | [1] | $0.90 | [1] | $0.84 | [1] | $0.67 | [1] | $3.76 | $3.41 | $2.84 |
Pre-tax charges, for realignment program | $1,600,000 | $10,700,000 | |||||||||||||||||
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
2013_Realignment_Program_Detai
2013 Realignment Program (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring and Related Activities [Abstract] | ||
Realignment program, approved plans | $15.80 | |
Restructuring and Related Cost, Incurred Cost | 12.4 | |
Realignment charges, net of adjustments | 1.6 | 10.7 |
Restructuring reserve | $1.10 | $6.30 |
Subsequent_Event_Details
Subsequent Event (Details) (SIHI Group B.V.) | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 07, 2015 | Jan. 07, 2015 |
EUR (€) | Subsequent Event | Subsequent Event | |
USD ($) | |||
Subsequent Event [Line Items] | |||
Percent of business acquired | 100.00% | ||
Acquisition, purchase price | $365 | ||
Business Combination, Cash Consideration Transferred | 110 | ||
Business Combination, Consideration Transferred from borrowed sources | 255 | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | € 270 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for doubtful accounts | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | $24,073 | [1] | $21,491 | [1] | $20,351 | [1] |
Additions Charged to Cost and Expenses | 17,817 | [1] | 17,412 | [1] | 22,148 | [1] |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | -443 | [1] | 79 | [1] | -36 | [1] |
Deductions From Reserve | -15,978 | [1] | -14,909 | [1] | -20,972 | [1] |
Balance at End of Year | 25,469 | [1] | 24,073 | [1] | 21,491 | [1] |
Deferred tax asset valuation allowance | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | 18,058 | [2] | 17,975 | [2] | 17,686 | [2] |
Additions Charged to Cost and Expenses | 1,366 | [2] | 2,352 | [2] | 3,257 | [2] |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | -996 | [2] | 0 | [2] | -657 | [2] |
Deductions From Reserve | -3,050 | [2] | -2,269 | [2] | -2,311 | [2] |
Balance at End of Year | $15,378 | [2] | $18,058 | [2] | $17,975 | [2] |
[1] | Deductions from reserve represent accounts written off and recoveries. | |||||
[2] | Deductions from reserve result from the expiration or utilization of net operating losses and foreign tax credits previously reserved. |