Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CHD | |
Entity Registrant Name | CHURCH & DWIGHT CO INC /DE/ | |
Entity Central Index Key | 313,927 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 245,407,957 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Income Statement [Abstract] | |||||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 | ||
Cost of sales | 573 | 487.6 | 1,127.5 | 965.5 | |||
Gross Profit | 454.9 | 410.4 | 906.4 | 809.7 | |||
Marketing expenses | 136.4 | 130.9 | 236.3 | 221.7 | |||
Selling, general and administrative expenses | 144.7 | 156.3 | 276 | 268.7 | |||
Income from Operations | 173.8 | 123.2 | 394.1 | 319.3 | |||
Equity in earnings of affiliates | 2.4 | 3.1 | 4.5 | 5.2 | |||
Investment earnings | 0.1 | 0.3 | 0.6 | 0.7 | |||
Other income (expense), net | (0.7) | (0.5) | (2.8) | (0.7) | |||
Interest expense | (20.2) | (9.3) | (40.3) | (17.5) | |||
Income before Income Taxes | [2] | 155.4 | 116.8 | [3] | 356.1 | 307 | [3] |
Income taxes | 33.7 | 43.9 | 76.6 | 102.6 | |||
Net Income | $ 121.7 | $ 72.9 | $ 279.5 | $ 204.4 | |||
Weighted average shares outstanding - Basic | 244.8 | 249.8 | 244.9 | 252 | |||
Weighted average shares outstanding - Diluted | 249.3 | 255.6 | 249.7 | 257.7 | |||
Net income per share - Basic | $ 0.50 | $ 0.29 | $ 1.14 | $ 0.81 | |||
Net income per share - Diluted | 0.49 | 0.29 | 1.12 | 0.79 | |||
Cash dividends per share | $ 0.22 | $ 0.19 | $ 0.43 | $ 0.38 | |||
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. | ||||||
[2] | In determining Income before Income Taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative Income from Operations. | ||||||
[3] | Includes a pension settlement charge of $39.2 recorded in Consumer International. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 121.7 | $ 72.9 | $ 279.5 | $ 204.4 |
Other comprehensive income, net of tax: | ||||
Foreign exchange translation adjustments | (9.9) | 6.7 | (6.4) | 14.6 |
Defined benefit plan adjustments gain (loss) | 0 | 11.9 | 0 | 11.9 |
Income (loss) from derivative agreements | (5.7) | (3.4) | (5.9) | (4) |
Other comprehensive income (loss) | (15.6) | 15.2 | (12.3) | 22.5 |
Comprehensive income | $ 106.1 | $ 88.1 | $ 267.2 | $ 226.9 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 89.3 | $ 278.9 |
Accounts receivable, less allowances of $2.7 and $2.9 | 348.6 | 345.9 |
Inventories | 369.2 | 330.7 |
Other current assets | 63.3 | 44.7 |
Total Current Assets | 870.4 | 1,000.2 |
Property, Plant and Equipment, Net | 593.1 | 607.7 |
Equity Investment in Affiliates | 9.4 | 9.3 |
Trade Names and Other Intangibles, Net | 2,311.9 | 2,320.5 |
Goodwill | 1,992.9 | 1,958.9 |
Other Assets | 121.7 | 118.2 |
Total Assets | 5,899.4 | 6,014.8 |
Current Liabilities | ||
Short-term borrowings | 110.8 | 270.9 |
Current portion of long-term debt | 299.5 | 0 |
Accounts payable and accrued expenses | 681.8 | 659.1 |
Income taxes payable | 8.7 | 5 |
Total Current Liabilities | 1,100.8 | 935 |
Long-term Debt | 1,802.6 | 2,103.4 |
Deferred Income Taxes | 567.2 | 561.2 |
Deferred and Other Long-term Liabilities | 207.7 | 197.2 |
Total Liabilities | 3,678.3 | 3,796.8 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $1.00 par value, Authorized 2,500,000 shares; none issued | 0 | 0 |
Common Stock, $1.00 par value, Authorized 600,000,000 shares and 292,855,100 shares issued as of June 30, 2018 | 292.8 | 292.8 |
Additional paid-in capital | 271.8 | 264.6 |
Retained earnings | 3,650.6 | 3,479 |
Accumulated other comprehensive loss | (49.3) | (36.4) |
Common stock in treasury, at cost: 47,815,947 shares in 2018 and 45,225,202 shares in 2017 | (1,944.8) | (1,782) |
Total Stockholders' Equity | 2,221.1 | 2,218 |
Total Liabilities and Stockholders' Equity | $ 5,899.4 | $ 6,014.8 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2.7 | $ 2.9 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock, Authorized | 2,500,000 | 2,500,000 |
Preferred Stock, issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, Authorized | 600,000,000 | |
Common Stock, shares issued | 292,855,100 | |
Common stock in treasury, shares | 47,815,947 | 45,225,202 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow From Operating Activities | ||
Net Income | $ 279.5 | $ 204.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 31.4 | 29.7 |
Amortization expense | 38.5 | 29.5 |
Deferred income taxes | 1.2 | 11.3 |
Equity in net earnings of affiliates | (4.5) | (5.2) |
Distributions from unconsolidated affiliates | 4.4 | 4.3 |
Non-cash compensation expense | 15.9 | 12.3 |
Non-cash pension settlement charge | 0 | 31.7 |
Other | (1.3) | (0.4) |
Change in assets and liabilities: | ||
Accounts receivable | (4.8) | (6.8) |
Inventories | (39.1) | (30.1) |
Other current assets | (5.5) | (10.4) |
Accounts payable and accrued expenses | 13.9 | (14.2) |
Income taxes payable | (8.1) | (10.7) |
Other operating assets and liabilities, net | 1.2 | 3.9 |
Net Cash Provided By Operating Activities | 322.7 | 249.3 |
Cash Flow From Investing Activities | ||
Additions to property, plant and equipment | (19.6) | (10.4) |
Acquisitions | (49.8) | (235.3) |
Other | (1.8) | 3.4 |
Net Cash Used In Investing Activities | (71.2) | (242.3) |
Cash Flow From Financing Activities | ||
Long-term debt borrowings | 0 | 200 |
Short-term debt (repayments) borrowings | (159.8) | 202.6 |
Proceeds from stock options exercised | 28.9 | 27.3 |
Payment of cash dividends | (106.2) | (95.7) |
Purchase of treasury stock | (200) | (300) |
Deferred financing and other | (2.4) | (1) |
Net Cash (Used In) Provided By Financing Activities | (439.5) | 33.2 |
Effect of exchange rate changes on cash and cash equivalents | (1.6) | 9.6 |
Net Change In Cash and Cash Equivalents | (189.6) | 49.8 |
Cash and Cash Equivalents at Beginning of Period | 278.9 | 187.8 |
Cash and Cash Equivalents at End of Period | 89.3 | 237.6 |
Cash paid during the period for: | ||
Interest (net of amounts capitalized) | 38.1 | 16.8 |
Income taxes | 83.8 | 102 |
Supplemental disclosure of non-cash investing activities: | ||
Property, plant and equipment expenditures included in Accounts Payable | $ 6.4 | $ 5.3 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2016 | $ 1,977.9 | $ 292.8 | $ (1,428.5) | $ 251.4 | $ 2,926 | $ (63.8) |
Beginning Balance (in shares) at Dec. 31, 2016 | 292.8 | (38.9) | ||||
Net Income | 204.4 | $ 0 | $ 0 | 0 | 204.4 | 0 |
Other comprehensive income (loss) | 22.5 | 0 | 0 | 0 | 0 | 22.5 |
Cash dividends | (95.7) | 0 | 0 | 0 | (95.7) | 0 |
Stock purchases | (300) | $ 0 | $ (300) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (6) | ||||
Stock based compensation expense and stock option plan transactions | 39.2 | $ 0 | $ 32.5 | 6.7 | 0 | 0 |
Stock based compensation expense and stock option plan transactions, including related income tax benefits (in shares) | 0 | 1.3 | ||||
Ending Balance at Jun. 30, 2017 | 1,848.3 | $ 292.8 | $ (1,696) | 258.1 | 3,034.7 | (41.3) |
Ending Balance (in shares) at Jun. 30, 2017 | 292.8 | (43.6) | ||||
Beginning Balance at Dec. 31, 2017 | 2,218 | $ 292.8 | $ (1,782) | 264.6 | 3,479 | (36.4) |
Beginning Balance (in shares) at Dec. 31, 2017 | 292.8 | (45.2) | ||||
Adoption of new accounting pronouncements | (2.3) | $ 0 | $ 0 | 0 | (1.7) | (0.6) |
Net Income | 279.5 | 0 | 0 | 0 | 279.5 | 0 |
Other comprehensive income (loss) | (12.3) | 0 | 0 | 0 | 0 | (12.3) |
Cash dividends | (106.2) | 0 | 0 | 0 | (106.2) | 0 |
Stock purchases | (200) | $ 0 | $ (200) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (4.1) | ||||
Stock based compensation expense and stock option plan transactions | 44.4 | $ 0 | $ 37.2 | 7.2 | 0 | 0 |
Stock based compensation expense and stock option plan transactions, including related income tax benefits (in shares) | 0 | 1.5 | ||||
Ending Balance at Jun. 30, 2018 | $ 2,221.1 | $ 292.8 | $ (1,944.8) | $ 271.8 | $ 3,650.6 | $ (49.3) |
Ending Balance (in shares) at Jun. 30, 2018 | 292.8 | (47.8) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The condensed consolidated balance sheets as of June 30, 2018 and December 31, 2017, the condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2018 and June 30, 2017, and the condensed consolidated statements of cash flow and stockholders’ equity for the six months ended June 30, 2018 and June 30, 2017 have been prepared by Church & Dwight Co., Inc. (the “Company”). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at June 30, 2018 and results of operations and cash flows for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “Form 10-K”). The results of operations for the period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. The Company incurred research and development expenses in the second quarter of 2018 and 2017 of $21.8 and $16.0, respectively. The Company incurred research and development expenses in the first six months of 2018 and 2017 of $41.3 and $30.1, respectively. These expenses are included in selling, general and administrative expenses. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2018, the FASB issued new accounting guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) and requires certain disclosures regarding stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company adopted this change by adjusting certain December 31, 2017 stockholders’ equity accounts (see below). In 2016, the FASB issued guidance that clarifies the principles for recognizing revenue. The amendments clarify the guidance for identifying performance obligations, licensing arrangements and principal versus agent considerations. The amendments additionally provide clarification on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. The new standard was adopted by the Company using the modified retrospective approach in the first quarter of 2018. See Note 3 for the Company’s revenue recognition accounting policy. The effects of the recently adopted accounting pronouncements to the Company’s condensed consolidated balance sheet as of January 1, 2018 is as follows: Balance at New Revenue New Tax Balance at December 31, Standard Reform January 1, 2017 Adjustment Adjustment 2018 Accounts payable and accrued expenses $ 659.1 $ 3.0 $ 0.0 $ 662.1 Income taxes payable 5.0 (0.7 ) 0.0 4.3 Retained earnings 3,479.0 (2.3 ) 0.6 3,477.3 Accumulated other comprehensive loss (36.4 ) 0.0 (0.6 ) (37.0 ) The adoption had no impact on the Company’s results of operations or cash flow. Recent Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued new accounting guidance, which is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. These amendments also make targeted improvements to simplify the application of the hedge accounting. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact that adoption of the guidance will have on the Company’s consolidated financial position, results of operations and cash flows. In February 2016 and July 2018, the FASB issued new lease accounting guidance, requiring lessees to recognize right-of-use lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases, with a term greater than a year. The new guidance also expands the required quantitative and qualitative disclosures surrounding leases. The guidance is effective for annual and interim periods beginning after December 15, 2018, and allows companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption, with early adoption permitted. The Company is currently evaluating the impact of adoption, which will consist primarily of a balance sheet gross up of the Company’s operating leases to show equal and offsetting lease assets and lease liabilities. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Revenue is recognized when control of a promised good is transferred to a customer in an amount that reflects the consideration that the Company expects to be entitled to in exchange for that good. This usually occurs when finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. Adoption of the new pronouncement as discussed in Note 2 did not have a significant impact on the Company’s condensed consolidated financial statements. The adoption required the Company to recognize certain costs earlier, primarily due to the timing of coupon expense recognition, which was not material. Refer to the table above in Note 2 for a presentation of the impacts of adoption of the guidance on the Company’s January 1, 2018 balance sheet. Nature of Goods and Services The Company primarily ships finished goods to its customers and operates in three segments: Consumer Domestic, Consumer International and Specialty Products Division (“SPD”). The segments are based on differences in the nature of products and organizational and ownership structures. The Consumer Domestic and Consumer International segments market a variety of personal care and household products and over-the-counter products, including but not limited to baking soda, cat litter, laundry detergent, condoms, stain removers, hair removal, gummy dietary supplements, dry shampoo, water flossers and showerheads. The SPD segment focuses on sales to businesses and participates in three product areas: Animal Productivity, Specialty Chemicals and Specialty Cleaners. The Company’s products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. The Company sells consumer products under a variety of brands through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar, pet and other specialty stores and websites and other e-commerce channels, all of which sell our products to consumers. The Company sells its specialty products to industrial customers, livestock producers and through distributors. Refer to Note 19 for disaggregated revenue information with respect to each of our segments. When Performance Obligations are Satisfied For performance obligations related to the shipping and invoicing of products, control transfers at the point in time upon which finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. Once a product has been delivered or picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon delivery or customer receipt because the Company has an enforceable right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset. Variable Consideration The Company conducts extensive promotional activities, primarily through the use of off-list discounts, slotting, coupons, cooperative advertising, periodic price reduction arrangements, and end-aisle and other in-store displays. The costs of such activities are netted against sales and are recorded when the related sale takes place. The reserves for sales returns and consumer and trade promotion liabilities are established based on the Company’s best estimate of the amounts necessary to settle future and existing obligations for products sold as of the balance sheet date. The Company uses historical trend experience and coupon redemption inputs in arriving at coupon reserve requirements, and uses forecasted appropriations, customer and sales organization inputs, and historical trend analysis in determining the reserves for other promotional activities and sales returns. Practical Expedients The Company expenses incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. These costs are recorded in Selling, General and Administrative expenses in the accompanying condensed consolidated statements of income. The Company accounts for shipping and handling costs as fulfillment activities and are therefore recognized upon shipment of the goods. The Company has applied the portfolio approach to all open contracts as they have similar characteristics and can reasonably expect that the effects on the financial statements of applying this new guidance to the portfolio of contracts would not differ materially from applying this guidance to the individual contracts within the portfolio. The Company excludes from its revenue any amounts collected from customers for sales (and similar) taxes. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act significantly changed the U.S. corporate income tax regime by, among other things, lowering U.S. corporate income tax rates to 21%. However, the Tax Act eliminated the domestic manufacturing deduction and moves toward a territorial system, which also eliminated the ability to credit certain foreign taxes that existed prior to enactment of the Tax Act. As part of the transition to the new territorial tax system, the Tax Act imposed a one-time repatriation tax on a deemed repatriation of historical earnings of foreign subsidiaries. In the first six months of 2018, the Company repatriated approximately $150.0 of its non-U.S. earnings and paid the associated withholding tax. The changes included in the Tax Act are broad and complex. While the provisional amount was not adjusted in the first six months of 2018, the final provisional impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the provisional impacts. The U.S. Securities and Exchange Commission has issued guidance that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company currently anticipates finalizing and recording any resulting adjustments by the end of the measurement period. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 5 . Inventories Inventories consist of the following: June 30, December 31, 2018 2017 Raw materials and supplies $ 87.5 $ 85.6 Work in process 32.1 30.8 Finished goods 249.6 214.3 Total $ 369.2 $ 330.7 On April 1, 2018, the Company changed its method of accounting for inventories from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) for the approximately 17% of consolidated inventory not previously valued using FIFO. Substantially all of the Company’s Specialty Products Division segment inventory as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment was previously determined using LIFO. After this change, all the Company’s inventory will be determined by the FIFO method. The Company believes this change is preferable as the predominant method to value inventory has been FIFO, which will provide a uniform costing method across all inventory. Prior financial statements have not been retroactively adjusted due to immateriality. The cumulative effect of the change in accounting principle of approximately $4.0 pre-tax was recorded as a decrease to cost of goods sold for the quarter ending June 30, 2018. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net ("PP&E") | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net ("PP&E") | 6 . Property, Plant and Equipment, Net (“PP&E”) PP&E consists of the following: June 30, December 31, 2018 2017 Land $ 27.8 $ 27.9 Buildings and improvements 301.8 300.3 Machinery and equipment 709.0 699.3 Software 95.9 95.8 Office equipment and other assets 69.7 66.7 Construction in progress 36.2 36.4 Gross PP&E 1,240.4 1,226.4 Less accumulated depreciation and amortization 647.3 618.7 Net PP&E $ 593.1 $ 607.7 Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Depreciation and amortization on PP&E $ 15.0 $ 14.9 $ 31.4 $ 29.7 |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | 7 . Earnings Per Share (“EPS”) Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Weighted average common shares outstanding - basic 244.8 249.8 244.9 252.0 Dilutive effect of stock options 4.5 5.8 4.8 5.7 Weighted average common shares outstanding - diluted 249.3 255.6 249.7 257.7 Antidilutive stock options outstanding 5.0 2.5 5.0 3.1 |
Stock Based Compensation Plans
Stock Based Compensation Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation Plans | 8 . Stock Based Compensation Plans The following table provides a summary of option activity: Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (in Years) Value Outstanding at December 31, 2017 16.1 $ 33.11 Granted 1.9 50.22 Exercised (1.5 ) 19.28 Cancelled (0.1 ) 47.73 Outstanding at June 30, 2018 16.4 $ 36.22 5.8 $ 279.5 Exercisable at June 30, 2018 10.5 $ 29.19 4.3 $ 251.8 The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Intrinsic Value of Stock Options Exercised $ 15.2 $ 7.5 $ 45.2 $ 34.7 Stock Compensation Expense Related to Stock Option Awards $ 12.3 $ 9.0 $ 15.0 $ 10.7 Issued Stock Options 1.9 1.8 1.9 1.8 Weighted Average Fair Value of Stock Options issued (per share) $ 9.63 $ 9.70 $ 9.63 $ 9.67 Fair Value of Stock Options Issued $ 18.0 $ 17.1 $ 18.1 $ 17.5 The following table provides a summary of the assumptions used in the valuation of issued stock options: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Risk-free interest rate 2.9 % 2.1 % 2.9 % 2.1 % Expected life in years 7.3 7.2 7.3 7.2 Expected volatility 17.1 % 16.9 % 17.1 % 16.9 % Dividend yield 1.7 % 1.4 % 1.7 % 1.4 % |
Share Repurchases
Share Repurchases | 6 Months Ended |
Jun. 30, 2018 | |
Payments For Repurchase Of Equity [Abstract] | |
Share Repurchases | 9 . Share Repurchases On November 1, 2017, the Company’s Board of Directors (the “Board”) authorized a new share repurchase program, under which the Company may repurchase up to $500.0 in shares of Common Stock (the “2017 Share Repurchase Program”). The 2017 Share Repurchase Program does not have an expiration and replaced the 2016 Share Repurchase Program. The Company also continued its evergreen share repurchase program, authorized by the Board on January 29, 2014, under which the Company may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under the Company’s incentive plans. In November of 2017, the Company purchased $100.0 of Common Stock. In December of 2017, the Company entered into an accelerated share (“ASR”) contract with a commercial bank to purchase $200.0 of the Common Stock. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10 . Fair Value Measurements Fair Value Hierarchy Accounting guidance on fair value measurements and disclosures establishes a hierarchy that prioritizes the inputs used to measure fair value (generally, assumptions that market participants would use in pricing an asset or liability) based on the quality and reliability of the information provided by the inputs, as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Values of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 24.7 $ 24.7 $ 95.8 $ 95.8 Financial Liabilities: Short-term borrowings Level 2 110.8 110.8 270.9 270.9 Floating Rate Senior notes due January 25, 2019 Level 2 300.0 299.9 300.0 299.9 2.45% Senior notes due December 15, 2019 Level 2 299.9 297.6 299.9 300.9 2.45% Senior notes due August 1, 2022 Level 2 299.7 286.9 299.7 296.1 2.875% Senior notes due October 1, 2022 Level 2 399.8 390.8 399.8 400.2 3.15% Senior notes due August 1, 2027 Level 2 424.6 393.3 424.6 417.8 3.95% Senior notes due August 1, 2047 Level 2 397.2 360.4 397.1 397.4 Contingent consideration Level 3 30.5 30.5 23.2 23.2 Fair value adjustment asset (liability) related to hedged fixed rate debt instrument Level 2 (4.4 ) (4.4 ) (2.2 ) (2.2 ) The Company recognizes transfers between input levels as of the actual date of the event. There were no transfers between input levels during the six months ended June 30, 2018. Refer to Note 2 in the Form 10-K for a description of the methods and assumptions used to estimate the fair value of each class of financial instruments reflected in the Condensed Consolidated Balance Sheets. The carrying amounts of accounts receivable, and accounts payable and accrued expenses, approximated estimated fair values as of June 30, 2018 and December 31, 2017. |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Risk Management | 1 1 . Derivative Instruments and Risk Management Changes in interest rates, foreign exchange rates, the price of common stock and commodity prices expose the Company to market risk. The Company manages these risks through the use of derivative instruments, such as cash flow and fair value hedges, diesel and commodity hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. Refer to Note 3 in the Form 10-K for a discussion of each of the Company’s derivative instruments in effect as of December 31, 2017. The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount June 30, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts $ 87.6 $ 91.6 Interest rate swap $ 300.0 $ 300.0 Diesel fuel contracts 1.5 gallons 3.0 gallons Commodities contracts 161.1 pounds 28.3 pounds Derivatives not designated as hedging instruments Equity derivatives $ 21.9 $ 22.2 The fair values and amount of gain (loss) recognized in income and Other Comprehensive Income (“OCI”) associated with the derivative instruments disclosed above did not have a material impact on the Company’s condensed consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 12. Acquisition On March 8, 2018, the Company purchased Passport Food Safety Solutions, Inc. (“Passport”). Passport sells products for pre- and post-harvest treatment in the poultry, swine, and beef production markets (the “Passport Acquisition”). The total purchase price was approximately $50.0, which is subject to an additional payment of up to $25.0 based on sales performance through 2020 and a working capital adjustment. Passport’s annual sales were approximately $21.0 in 2017. The acquisition was funded with The preliminary fair values of the net assets acquired are set forth as follows: Passport Acquisition Date Preliminary Fair Value Inventory and other working capital $ 3.3 Long-term assets 1.0 Trade names and other intangibles 28.5 Goodwill 32.5 Current liabilities (1.1 ) Long-term liabilities (7.1 ) Contingent consideration (7.3 ) Cash purchase price (net of cash acquired) $ 49.8 The life of the amortizable intangible assets recognized from the Passport Acquisition ranges from 10 - 15 years. The goodwill is a result of expected synergies from combined operations of the acquisition and the Company. Pro forma results are not presented because the impact is not material to the Company’s consolidated financial results. On August 7, 2017, the Company acquired Pik Holdings, Inc. (“Waterpik”), a water-jet technology company that designs and sells both oral water flossers and replacement shower heads (the “Waterpik Acquisition”). The total purchase price was $1,024.6 (net of cash acquired). Waterpik’s annual sales were approximately $265.0 for the trailing twelve months through June 30, 2017. The Company financed the Waterpik Acquisition with proceeds from its underwritten public offering of $1,425.0 aggregate principal amount of Senior Notes completed on July 25, 2017. Waterpik is managed by the Consumer Domestic and Consumer International segments. The fair values of the net assets acquired are set forth as follows: Waterpik Acquisition Date Fair Value Current assets $ 95.4 Property, plant and equipment 28.4 Trade name (indefinite lived) 644.7 Other intangible assets 146.1 Goodwill 425.8 Current liabilities (31.8 ) Long-term liabilities (284.0 ) Cash purchase price (net of cash acquired) $ 1,024.6 The life of the amortizable intangible assets recognized from the Waterpik Acquisition will be amortized over The following unaudited pro forma information is based on the Company’s historical data and assumptions for condensed consolidated results of operations, and gives effect to the Waterpik Acquisition as if the acquisition occurred on January 1, 2017. These unaudited pro forma results include adjustments having a continuing impact on the Company’s condensed consolidated statements of income. These adjustments primarily consist of adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangible assets, stock compensation expense, interest expense and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions the Company’s management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2017, and are not necessarily indicative of the results that may be achieved in the future, including, but not limited to, the realization of operating synergies that the Company may realize as a result of the acquisition. Unaudited consolidated pro forma results Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Reported Pro forma Reported Pro forma Net Sales $ 898.0 $ 968.2 $ 1,775.2 $ 1,914.3 Net Income $ 72.9 $ 77.4 $ 204.4 $ 214.2 Net income per share - Basic $ 0.29 $ 0.31 $ 0.81 $ 0.85 Net income per share - Diluted $ 0.29 $ 0.30 $ 0.79 $ 0.83 |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | 1 3 . Goodwill and Other Intangibles, Net The following table provides information related to the carrying value of all intangible assets, other than goodwill: June 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Amortizable intangible assets: Trade Names $ 579.0 $ (160.4 ) $ 418.6 $ 576.7 $ (145.2 ) $ 431.5 Customer Relationships 506.2 (205.4 ) 300.8 480.5 (190.2 ) 290.3 Patents/Formulas 165.4 (56.6 ) 108.8 165.4 (51.7 ) 113.7 Non-Compete Agreement 0.4 (0.3 ) 0.1 0.4 (0.2 ) 0.2 Total $ 1,251.0 $ (422.7 ) $ 828.3 $ 1,223.0 $ (387.3 ) $ 835.7 Indefinite lived intangible assets - Carrying value June 30, December 31, 2018 2017 Trade Names $ 1,483.6 $ 1,484.8 Intangible amortization expense was $17.8 and $14.4 for the second quarter of 2018 and 2017, respectively. Intangible amortization expense amounted to $35.8 and $28.3 for the first six months of 2018 and 2017, respectively. The Company estimates that intangible amortization expense related to amortizable intangible assets held as of June 30, 2018 will be approximately $71.0 in 2018 and declining over the next five years from approximately $70.0 to $60.0 annually. The Company determined that the carrying value of all trade names as of December 31, 2017, was recoverable based upon the forecasted cash flows and profitability of the brands. There is a personal care trade name that, based on recent performance, has experienced sales and profit declines that have eroded a significant portion of the excess between fair and carrying value which could potentially result in an impairment of the asset. In 2017, this excess was reduced to approximately $34.0 or 12% in large part due to an increased competitive market environment therefore resulting in reduced cash flow projections. The Company continues to monitor performance and should there be any significant change in forecasted assumptions or estimates, including sales, profitability and discount rate, the Company may be required to recognize an impairment charge. The carrying amount of goodwill is as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2017 $ 1,632.1 $ 223.3 $ 103.5 $ 1,958.9 Passport acquired goodwill 0.0 0.0 32.5 32.5 Waterpik adjustment 1.1 0.4 0.0 1.5 Balance at June 30, 2018 $ 1,633.2 $ 223.7 $ 136.0 $ 1,992.9 The goodwill and other intangible assets associated with the Waterpik and Passport acquisitions are not deductible for U.S. tax purposes. In connection with its annual goodwill impairment test performed in the beginning of the second quarter of 2018, the Company determined that the estimated fair value substantially exceeded the carrying values of all reporting units. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 1 4 . Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: June 30, December 31, 2018 2017 Trade accounts payable $ 419.8 $ 398.9 Accrued marketing and promotion costs 125.4 108.4 Accrued wages and related benefit costs 45.8 61.8 Other accrued current liabilities 90.8 90.0 Total $ 681.8 $ 659.1 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | 1 5 . Short-Term Borrowings and Long-Term Debt Short-term borrowings and long-term debt consist of the following: June 30, December 31, 2018 2017 Short-term borrowings Commercial paper issuances $ 109.0 $ 268.7 Various debt due to international banks 1.8 2.2 Total short-term borrowings $ 110.8 $ 270.9 Long-term debt Floating Rate Senior notes due January 25, 2019 300.0 $ 300.0 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount (0.1 ) (0.1 ) 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.3 ) (0.3 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.2 ) (0.2 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.4 ) (0.4 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.8 ) (2.9 ) Debt issuance costs, net (14.7 ) (15.5 ) Fair value adjustment asset (liability) related to hedged fixed rate debt instrument (4.4 ) (2.2 ) Total long-term debt 2,102.1 2,103.4 Less: current maturities (299.5 ) 0.0 Net long-term debt $ 1,802.6 $ 2,103.4 On March 29, 2018, the Company replaced its former $1,000.0 unsecured revolving credit facility that was scheduled to terminate on December 4, 2020 with a new $1,000.0 unsecured revolving credit facility (the “Credit Agreement”). Under the Credit Agreement, the Company has the ability to increase its borrowing up to an additional $600.0, subject to lender commitments and certain conditions as described in the Credit Agreement. Borrowings under the Credit Agreement are available for general corporate purposes and are used to support the Company’s $1,000.0 commercial paper program. Unless extended, the Credit Agreement will terminate and all amounts outstanding thereunder will be due and payable on March 29, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 1 6 . Accumulated Other Comprehensive Income (Loss) The components of changes in accumulated other comprehensive income (loss) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance at December 31, 2016 $ (50.0 ) $ (13.2 ) $ (0.6 ) $ (63.8 ) Other comprehensive income (loss) before reclassifications 14.6 2.2 (6.2 ) 10.6 Amounts reclassified to consolidated statement of income (a) (b) 0.0 11.9 0.3 12.2 Tax benefit (expense) 0.0 (2.2 ) 1.9 (0.3 ) Other comprehensive income (loss) 14.6 11.9 (4.0 ) 22.5 Balance at June 30, 2017 $ (35.4 ) $ (1.3 ) $ (4.6 ) $ (41.3 ) Balance at December 31, 2017 $ (31.6 ) $ (0.6 ) $ (4.2 ) $ (36.4 ) Adoption of new accounting pronouncements (Note 2) (0.3 ) 0.1 (0.4 ) (0.6 ) Other comprehensive income (loss) before reclassifications (6.4 ) 0.0 (7.7 ) (14.1 ) Amounts reclassified to consolidated statement of income (b) (c) 0.0 0.0 0.0 0.0 Tax benefit (expense) 0.0 0.0 1.8 1.8 Other comprehensive income (loss) (6.4 ) 0.0 (5.9 ) (12.3 ) Balance at June 30, 2018 $ (38.3 ) $ (0.5 ) $ (10.5 ) $ (49.3 ) (a) In connection with the termination of international defined benefit plans $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales. (b) The Company reclassified a loss of $0.1 and a loss of $12.1 to the consolidated statement of income during the three months ended June 30, 2018 and 2017, respectively. (c) Amounts reclassified to cost of sales or interest expense. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | 17. Commitments, Contingencies and Guarantees Commitments a. The Company has a partnership with a supplier of raw materials that mines and processes sodium-based mineral deposits. The Company purchases the majority of its sodium-based raw material requirements from the partnership. The partnership agreement terminates upon two years’ written notice by either partner. Under the partnership agreement, the Company has an annual commitment to purchase 240,000 tons of sodium-based raw materials at the prevailing market price. b. As of June 30, 2018, the Company had commitments of approximately $ 246.1 c. As of June 30, 2018, the Company had various guarantees and letters of credit totaling $5.5. d. In connection with the Agro Acquisition, the Company is obligated to pay an additional amount of up to $25.0 based on sales performance in 2019. The initial fair value of this contingent liability was $17.8, which was established in the purchase price allocation. Subsequent to the acquisition, the Company increased the estimate of the contingent consideration liability $5.4 in the fourth quarter of 2017 from $17.8 to $23.2 based on updated financial performance forecasts. The charge was recorded in SG&A in the SPD segment. The liability will be assessed for re-measurement at each balance sheet date leading up to the end of the 3-year period. In connection with the Passport Acquisition, the Company is obligated to pay an additional amount of up to $25.0 based on sales performance through 2020. The initial fair value of this contingent liability was $7.3, which was established in the preliminary purchase price allocation. The liability will be assessed for re-measurement at each balance sheet date leading up to December 31, 2020. Legal proceedings e. The Company has been named as a defendant in a breach of contract action filed by Scantibodies Laboratory, Inc. (the “Plaintiff”) on April 1, 2014 in the U.S. District Court for the Southern District of New York. The complaint alleges, among other things, that the Company (i) breached two agreements for the manufacture and supply of pregnancy and ovulation test kits by switching suppliers, (ii) failed to give Plaintiff the proper notice, (iii) failed to reimburse Plaintiff for costs and expenses under the agreements and (iv) misrepresented its future requirements. The complaint seeks compensatory and punitive damages of an amount in excess of $20.0, as well as declaratory relief, statutory prejudgment interest and attorneys’ fees and costs. The Company is vigorously defending itself in this matter. On , the Company filed an answer to the complaint denying all of the Plaintiff’s material allegations. On September 11, 2017, each of the Company and the Plaintiff filed motions for summary judgment. The court has not yet ruled on these motions, and a trial date has not been set. In connection with this matter, the Company has reserved an amount that is immaterial. However, it is reasonably possible that the Company may ultimately be required to pay all or substantially all of the damages and other amounts sought by Plaintiff. It is not currently possible to more precisely estimate the amount or range of any amounts that the Company may be required to pay in excess of the reserved amount because the proceedings are not sufficiently advanced and the outcome thereof is uncertain. f. In addition, in conjunction with the Company’s acquisition and divestiture activities, the Company entered into select guarantees and indemnifications of performance with respect to the fulfillment of the Company’s commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. Representations and warranties that survive the closing date generally survive for periods up to five years or the expiration of the applicable statutes of limitations. Potential losses under the indemnifications are generally limited to a portion of the original transaction price, or to other lesser specific dollar amounts for select provisions. With respect to sale transactions, the Company also routinely enters into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on the Company’s financial condition, results of operations and cash flows. g. In addition to the matters described above, from time to time in the ordinary course of its business the Company is the subject of, or party to, various pending or threatened legal, regulatory or governmental actions or other proceedings , including, without limitation, those relating to, intellectual property, commercial transactions, product liability, purported consumer class actions, employment matters, antitrust, environmental, health, safety and other compliance related matters. Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. While any such proceedings could result in an adverse outcome for the Company, any such adverse outcome is not expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows 1 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 8 . Related Party Transactions The following summarizes the balances and transactions between the Company and Armand Products Company (“Armand”) and The ArmaKleen Company (“ArmaKleen”), in each of which the Company holds a 50% ownership interest Armand ArmaKleen Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Purchases by Company $ 7.4 $ 10.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.6 $ 0.6 Outstanding Accounts Receivable $ 0.6 $ 0.4 $ 0.5 $ 0.8 Outstanding Accounts Payable $ 1.5 $ 2.3 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 1.2 $ 1.2 $ 1.1 $ 1.0 (1) Billed by Company and recorded as a reduction of selling, general and administrative expenses. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 1 9 . Segments Segment Information The Company operates three reportable segments: Consumer Domestic, Consumer International and SPD. These segments are determined based on differences in the nature of products and organizational and ownership structures. The Company also has a Corporate segment. Segment revenues are derived from the sale of the following products: Segment Products Consumer Domestic Household and personal care products Consumer International Primarily personal care products SPD Specialty chemical products The Corporate segment income consists of equity in earnings of affiliates. As of June 30, 2018, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively. The Company’s equity in earnings of Armand and ArmaKleen for the three and six months ended June 30, 2018 and 2017 are included in the Corporate segment. Certain subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below. Segment Net Sales and Income before Income Taxes are as follows: Consumer Consumer Domestic International SPD Corporate Total Net Sales (1) Second Quarter 2018 $ 774.1 $ 176.1 $ 77.7 $ 0.0 $ 1,027.9 Second Quarter 2017 678.2 145.1 74.7 0.0 898.0 First Six Months of 2018 $ 1,525.5 $ 356.8 $ 151.6 $ 0.0 $ 2,033.9 First Six Months of 2017 1,337.9 288.2 149.1 0.0 1,775.2 Income before Income Taxes (2) Second Quarter 2018 $ 119.4 $ 18.0 $ 15.6 $ 2.4 $ 155.4 Second Quarter 2017 (3) 123.7 (23.7 ) 13.7 3.1 116.8 First Six Months of 2018 $ 278.7 $ 45.7 $ 27.2 $ 4.5 $ 356.1 First Six Months of 2017 (3) 284.6 (4.3 ) 21.5 5.2 307.0 (1) Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $ 2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. (2) In determining Income before Income Taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative Income from Operations. (3) Includes a pension settlement charge of $39.2 recorded in Consumer International. Product line revenues from external customers are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Household Products $ 429.9 $ 410.8 $ 842.9 $ 805.3 Personal Care Products 344.2 267.4 682.6 532.6 Total Consumer Domestic 774.1 678.2 1,525.5 1,337.9 Total Consumer International 176.1 145.1 356.8 288.2 Total SPD 77.7 74.7 151.6 149.1 Total Consolidated Net Sales $ 1,027.9 $ 898.0 $ 2,033.9 $ 1,775.2 Household Products include laundry, deodorizing and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin care and hair care products and gummy dietary supplements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The effects of the recently adopted accounting pronouncements to the Company’s condensed consolidated balance sheet as of January 1, 2018 is as follows: Balance at New Revenue New Tax Balance at December 31, Standard Reform January 1, 2017 Adjustment Adjustment 2018 Accounts payable and accrued expenses $ 659.1 $ 3.0 $ 0.0 $ 662.1 Income taxes payable 5.0 (0.7 ) 0.0 4.3 Retained earnings 3,479.0 (2.3 ) 0.6 3,477.3 Accumulated other comprehensive loss (36.4 ) 0.0 (0.6 ) (37.0 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: June 30, December 31, 2018 2017 Raw materials and supplies $ 87.5 $ 85.6 Work in process 32.1 30.8 Finished goods 249.6 214.3 Total $ 369.2 $ 330.7 |
Property, Plant and Equipment29
Property, Plant and Equipment, Net ("PP&E") (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | PP&E consists of the following: June 30, December 31, 2018 2017 Land $ 27.8 $ 27.9 Buildings and improvements 301.8 300.3 Machinery and equipment 709.0 699.3 Software 95.9 95.8 Office equipment and other assets 69.7 66.7 Construction in progress 36.2 36.4 Gross PP&E 1,240.4 1,226.4 Less accumulated depreciation and amortization 647.3 618.7 Net PP&E $ 593.1 $ 607.7 Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Depreciation and amortization on PP&E $ 15.0 $ 14.9 $ 31.4 $ 29.7 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Weighted Average Number Of Common Shares Outstanding | The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Weighted average common shares outstanding - basic 244.8 249.8 244.9 252.0 Dilutive effect of stock options 4.5 5.8 4.8 5.7 Weighted average common shares outstanding - diluted 249.3 255.6 249.7 257.7 Antidilutive stock options outstanding 5.0 2.5 5.0 3.1 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity | The following table provides a summary of option activity: Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (in Years) Value Outstanding at December 31, 2017 16.1 $ 33.11 Granted 1.9 50.22 Exercised (1.5 ) 19.28 Cancelled (0.1 ) 47.73 Outstanding at June 30, 2018 16.4 $ 36.22 5.8 $ 279.5 Exercisable at June 30, 2018 10.5 $ 29.19 4.3 $ 251.8 |
Information Regarding Intrinsic Value of Stock Options Exercised and Stock Compensation Expense Related to Stock Option Awards | The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Intrinsic Value of Stock Options Exercised $ 15.2 $ 7.5 $ 45.2 $ 34.7 Stock Compensation Expense Related to Stock Option Awards $ 12.3 $ 9.0 $ 15.0 $ 10.7 Issued Stock Options 1.9 1.8 1.9 1.8 Weighted Average Fair Value of Stock Options issued (per share) $ 9.63 $ 9.70 $ 9.63 $ 9.67 Fair Value of Stock Options Issued $ 18.0 $ 17.1 $ 18.1 $ 17.5 |
Assumptions Used in Valuation of Issued Stock Options | The following table provides a summary of the assumptions used in the valuation of issued stock options: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Risk-free interest rate 2.9 % 2.1 % 2.9 % 2.1 % Expected life in years 7.3 7.2 7.3 7.2 Expected volatility 17.1 % 16.9 % 17.1 % 16.9 % Dividend yield 1.7 % 1.4 % 1.7 % 1.4 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 24.7 $ 24.7 $ 95.8 $ 95.8 Financial Liabilities: Short-term borrowings Level 2 110.8 110.8 270.9 270.9 Floating Rate Senior notes due January 25, 2019 Level 2 300.0 299.9 300.0 299.9 2.45% Senior notes due December 15, 2019 Level 2 299.9 297.6 299.9 300.9 2.45% Senior notes due August 1, 2022 Level 2 299.7 286.9 299.7 296.1 2.875% Senior notes due October 1, 2022 Level 2 399.8 390.8 399.8 400.2 3.15% Senior notes due August 1, 2027 Level 2 424.6 393.3 424.6 417.8 3.95% Senior notes due August 1, 2047 Level 2 397.2 360.4 397.1 397.4 Contingent consideration Level 3 30.5 30.5 23.2 23.2 Fair value adjustment asset (liability) related to hedged fixed rate debt instrument Level 2 (4.4 ) (4.4 ) (2.2 ) (2.2 ) |
Derivative Instruments and Ri33
Derivative Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts | The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount June 30, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts $ 87.6 $ 91.6 Interest rate swap $ 300.0 $ 300.0 Diesel fuel contracts 1.5 gallons 3.0 gallons Commodities contracts 161.1 pounds 28.3 pounds Derivatives not designated as hedging instruments Equity derivatives $ 21.9 $ 22.2 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Passport Food Safety Solutions, Inc. | |
Fair Values of Assets Acquired | The preliminary fair values of the net assets acquired are set forth as follows: Passport Acquisition Date Preliminary Fair Value Inventory and other working capital $ 3.3 Long-term assets 1.0 Trade names and other intangibles 28.5 Goodwill 32.5 Current liabilities (1.1 ) Long-term liabilities (7.1 ) Contingent consideration (7.3 ) Cash purchase price (net of cash acquired) $ 49.8 |
Water Pik Inc | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: Waterpik Acquisition Date Fair Value Current assets $ 95.4 Property, plant and equipment 28.4 Trade name (indefinite lived) 644.7 Other intangible assets 146.1 Goodwill 425.8 Current liabilities (31.8 ) Long-term liabilities (284.0 ) Cash purchase price (net of cash acquired) $ 1,024.6 |
Schedule of Unaudited Pro Forma Results | The following unaudited pro forma information is based on the Company’s historical data and assumptions for condensed consolidated results of operations, and gives effect to the Waterpik Acquisition as if the acquisition occurred on January 1, 2017. These unaudited pro forma results include adjustments having a continuing impact on the Company’s condensed consolidated statements of income. These adjustments primarily consist of adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangible assets, stock compensation expense, interest expense and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions the Company’s management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2017, and are not necessarily indicative of the results that may be achieved in the future, including, but not limited to, the realization of operating synergies that the Company may realize as a result of the acquisition. Unaudited consolidated pro forma results Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Reported Pro forma Reported Pro forma Net Sales $ 898.0 $ 968.2 $ 1,775.2 $ 1,914.3 Net Income $ 72.9 $ 77.4 $ 204.4 $ 214.2 Net income per share - Basic $ 0.29 $ 0.31 $ 0.81 $ 0.85 Net income per share - Diluted $ 0.29 $ 0.30 $ 0.79 $ 0.83 |
Goodwill and Other Intangible35
Goodwill and Other Intangibles, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | The following table provides information related to the carrying value of all intangible assets, other than goodwill: June 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Amortizable intangible assets: Trade Names $ 579.0 $ (160.4 ) $ 418.6 $ 576.7 $ (145.2 ) $ 431.5 Customer Relationships 506.2 (205.4 ) 300.8 480.5 (190.2 ) 290.3 Patents/Formulas 165.4 (56.6 ) 108.8 165.4 (51.7 ) 113.7 Non-Compete Agreement 0.4 (0.3 ) 0.1 0.4 (0.2 ) 0.2 Total $ 1,251.0 $ (422.7 ) $ 828.3 $ 1,223.0 $ (387.3 ) $ 835.7 |
Indefinite Lived Intangible Assets | Indefinite lived intangible assets - Carrying value June 30, December 31, 2018 2017 Trade Names $ 1,483.6 $ 1,484.8 |
Carrying Amount of Goodwill | The carrying amount of goodwill is as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2017 $ 1,632.1 $ 223.3 $ 103.5 $ 1,958.9 Passport acquired goodwill 0.0 0.0 32.5 32.5 Waterpik adjustment 1.1 0.4 0.0 1.5 Balance at June 30, 2018 $ 1,633.2 $ 223.7 $ 136.0 $ 1,992.9 |
Accounts Payable and Accrued 36
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: June 30, December 31, 2018 2017 Trade accounts payable $ 419.8 $ 398.9 Accrued marketing and promotion costs 125.4 108.4 Accrued wages and related benefit costs 45.8 61.8 Other accrued current liabilities 90.8 90.0 Total $ 681.8 $ 659.1 |
Short-Term Borrowings and Lon37
Short-Term Borrowings and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Components of Short-Term Borrowings and Long-Term Debt | Short-term borrowings and long-term debt consist of the following: June 30, December 31, 2018 2017 Short-term borrowings Commercial paper issuances $ 109.0 $ 268.7 Various debt due to international banks 1.8 2.2 Total short-term borrowings $ 110.8 $ 270.9 Long-term debt Floating Rate Senior notes due January 25, 2019 300.0 $ 300.0 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount (0.1 ) (0.1 ) 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.3 ) (0.3 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.2 ) (0.2 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.4 ) (0.4 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.8 ) (2.9 ) Debt issuance costs, net (14.7 ) (15.5 ) Fair value adjustment asset (liability) related to hedged fixed rate debt instrument (4.4 ) (2.2 ) Total long-term debt 2,102.1 2,103.4 Less: current maturities (299.5 ) 0.0 Net long-term debt $ 1,802.6 $ 2,103.4 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | The components of changes in accumulated other comprehensive income (loss) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance at December 31, 2016 $ (50.0 ) $ (13.2 ) $ (0.6 ) $ (63.8 ) Other comprehensive income (loss) before reclassifications 14.6 2.2 (6.2 ) 10.6 Amounts reclassified to consolidated statement of income (a) (b) 0.0 11.9 0.3 12.2 Tax benefit (expense) 0.0 (2.2 ) 1.9 (0.3 ) Other comprehensive income (loss) 14.6 11.9 (4.0 ) 22.5 Balance at June 30, 2017 $ (35.4 ) $ (1.3 ) $ (4.6 ) $ (41.3 ) Balance at December 31, 2017 $ (31.6 ) $ (0.6 ) $ (4.2 ) $ (36.4 ) Adoption of new accounting pronouncements (Note 2) (0.3 ) 0.1 (0.4 ) (0.6 ) Other comprehensive income (loss) before reclassifications (6.4 ) 0.0 (7.7 ) (14.1 ) Amounts reclassified to consolidated statement of income (b) (c) 0.0 0.0 0.0 0.0 Tax benefit (expense) 0.0 0.0 1.8 1.8 Other comprehensive income (loss) (6.4 ) 0.0 (5.9 ) (12.3 ) Balance at June 30, 2018 $ (38.3 ) $ (0.5 ) $ (10.5 ) $ (49.3 ) (a) In connection with the termination of international defined benefit plans $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales. (b) The Company reclassified a loss of $0.1 and a loss of $12.1 to the consolidated statement of income during the three months ended June 30, 2018 and 2017, respectively. (c) Amounts reclassified to cost of sales or interest expense. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the balances and transactions between the Company and Armand Products Company (“Armand”) and The ArmaKleen Company (“ArmaKleen”), in each of which the Company holds a 50% ownership interest Armand ArmaKleen Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Purchases by Company $ 7.4 $ 10.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.6 $ 0.6 Outstanding Accounts Receivable $ 0.6 $ 0.4 $ 0.5 $ 0.8 Outstanding Accounts Payable $ 1.5 $ 2.3 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 1.2 $ 1.2 $ 1.1 $ 1.0 (1) Billed by Company and recorded as a reduction of selling, general and administrative expenses. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating To Company's Segments | Segment Net Sales and Income before Income Taxes are as follows: Consumer Consumer Domestic International SPD Corporate Total Net Sales (1) Second Quarter 2018 $ 774.1 $ 176.1 $ 77.7 $ 0.0 $ 1,027.9 Second Quarter 2017 678.2 145.1 74.7 0.0 898.0 First Six Months of 2018 $ 1,525.5 $ 356.8 $ 151.6 $ 0.0 $ 2,033.9 First Six Months of 2017 1,337.9 288.2 149.1 0.0 1,775.2 Income before Income Taxes (2) Second Quarter 2018 $ 119.4 $ 18.0 $ 15.6 $ 2.4 $ 155.4 Second Quarter 2017 (3) 123.7 (23.7 ) 13.7 3.1 116.8 First Six Months of 2018 $ 278.7 $ 45.7 $ 27.2 $ 4.5 $ 356.1 First Six Months of 2017 (3) 284.6 (4.3 ) 21.5 5.2 307.0 (1) Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $ 2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. (2) In determining Income before Income Taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative Income from Operations. (3) Includes a pension settlement charge of $39.2 recorded in Consumer International. |
Product Line Revenues From External Customers | Product line revenues from external customers are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Household Products $ 429.9 $ 410.8 $ 842.9 $ 805.3 Personal Care Products 344.2 267.4 682.6 532.6 Total Consumer Domestic 774.1 678.2 1,525.5 1,337.9 Total Consumer International 176.1 145.1 356.8 288.2 Total SPD 77.7 74.7 151.6 149.1 Total Consolidated Net Sales $ 1,027.9 $ 898.0 $ 2,033.9 $ 1,775.2 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Research and development expenses | $ 21.8 | $ 16 | $ 41.3 | $ 30.1 |
Summary of Adjustments to Balan
Summary of Adjustments to Balance Sheet due to Adoption of Guidance (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Accounts payable and accrued expenses | $ 681.8 | $ 662.1 | $ 659.1 | ||
Income taxes payable | 8.7 | 4.3 | 5 | ||
Retained earnings | 3,650.6 | 3,477.3 | 3,479 | ||
Accumulated other comprehensive loss | $ (49.3) | (37) | $ (36.4) | $ (41.3) | $ (63.8) |
ASU 2014-09 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Accounts payable and accrued expenses | 3 | ||||
Income taxes payable | (0.7) | ||||
Retained earnings | (2.3) | ||||
Accumulated other comprehensive loss | 0 | ||||
ASU 2018-02 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Accounts payable and accrued expenses | 0 | ||||
Income taxes payable | 0 | ||||
Retained earnings | 0.6 | ||||
Accumulated other comprehensive loss | $ (0.6) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018SegmentProduct | |
Disaggregation Of Revenue [Line Items] | |
Number of reportable segments | 3 |
ASU 2014-09 | |
Disaggregation Of Revenue [Line Items] | |
Number of reportable segments | 3 |
Number of product | Product | 3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Corporate income tax rates | 21.00% | |
Foreign earnings repatriated | $ 150 | |
Reduction of tax expense to deferred tax assets liabilities | $ 273 |
Components of Inventories (Deta
Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, Finished Goods and Work in Process, Net of Reserves [Abstract] | ||
Raw materials and supplies | $ 87.5 | $ 85.6 |
Work in process | 32.1 | 30.8 |
Finished goods | 249.6 | 214.3 |
Total | $ 369.2 | $ 330.7 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | ||
Percentage of inventory determined using FIFO | 17.00% | |
Cumulative effect of pre-tax change in accounting principle of decrease to cost of goods sold | $ 4 |
Components of Property, Plant a
Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 1,240.4 | $ 1,226.4 |
Less accumulated depreciation and amortization | 647.3 | 618.7 |
Net PP&E | 593.1 | 607.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 27.8 | 27.9 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 301.8 | 300.3 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 709 | 699.3 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 95.9 | 95.8 |
Office equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 69.7 | 66.7 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 36.2 | $ 36.4 |
Depreciation and Interest Charg
Depreciation and Interest Charges on Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization on PP&E | $ 15 | $ 14.9 | $ 31.4 | $ 29.7 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding - basic | 244.8 | 249.8 | 244.9 | 252 |
Dilutive effect of stock options | 4.5 | 5.8 | 4.8 | 5.7 |
Weighted average common shares outstanding - diluted | 249.3 | 255.6 | 249.7 | 257.7 |
Antidilutive stock options outstanding | 5 | 2.5 | 5 | 3.1 |
Summary of Option Activity (Det
Summary of Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning Balance, Options | shares | 16.1 |
Granted, Options | shares | 1.9 |
Exercised, Options | shares | (1.5) |
Cancelled, Options | shares | (0.1) |
Ending Balance, Options | shares | 16.4 |
Exercisable at June 30, 2018, Options | shares | 10.5 |
Beginning Balance, Weighted-Average Exercise Price | $ / shares | $ 33.11 |
Granted, Weighted-Average Exercise Price | $ / shares | 50.22 |
Exercised, Weighted-Average Exercise Price | $ / shares | 19.28 |
Cancelled, Weighted-Average Exercise Price | $ / shares | 47.73 |
Ending Balance, Weighted-Average Exercise Price | $ / shares | 36.22 |
Exercisable at June 30, 2018, Weighted-Average Exercise Price | $ / shares | $ 29.19 |
Outstanding at June 30, 2018, Weighted-Average Remaining Contractual Term, years | 5 years 9 months 18 days |
Exercisable at June 30, 2018, Weighted-Average Remaining Contractual Term, years | 4 years 3 months 18 days |
Outstanding at June 30, 2018, Aggregate Intrinsic Value | $ | $ 279.5 |
Exercisable at June 30, 2018, Aggregate Intrinsic Value | $ | $ 251.8 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Intrinsic Value of Stock Options Exercised | $ 15.2 | $ 7.5 | $ 45.2 | $ 34.7 |
Stock Compensation Expense Related to Stock Option Awards | $ 12.3 | $ 9 | $ 15 | $ 10.7 |
Issued Stock Options | 1.9 | 1.8 | 1.9 | 1.8 |
Weighted Average Fair Value of Stock Options issued (per share) | $ 9.63 | $ 9.70 | $ 9.63 | $ 9.67 |
Fair Value of Stock Options Issued | $ 18 | $ 17.1 | $ 18.1 | $ 17.5 |
Assumptions Used in Valuation o
Assumptions Used in Valuation of Issued Stock Options (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Risk-free interest rate | 2.90% | 2.10% | 2.90% | 2.10% |
Expected life in years | 7 years 3 months 18 days | 7 years 2 months 12 days | 7 years 3 months 18 days | 7 years 2 months 12 days |
Expected volatility | 17.10% | 16.90% | 17.10% | 16.90% |
Dividend yield | 1.70% | 1.40% | 1.70% | 1.40% |
Share Repurchases - Additional
Share Repurchases - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Nov. 01, 2017 | |
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 500 | ||||||
Payment for share repurchase | $ 100 | $ 200 | $ 200 | $ 300 | |||
Accelerated share repurchase contract amount | $ 200 | ||||||
Stock purchases, shares | 0 | 4,100,000 | |||||
Evergreen Program | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Payment for share repurchase | $ 110 | ||||||
Repurchase Program | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Payment for share repurchase | $ 90 | ||||||
Remaining amount for share repurchase program | $ 310 | $ 310 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | $ 110.8 | $ 270.9 |
Senior Notes | 2,102.1 | 2,103.4 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 24.7 | 95.8 |
Short-term borrowings | 110.8 | 270.9 |
Contingent consideration | 30.5 | 23.2 |
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | (4.4) | (2.2) |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 24.7 | 95.8 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | (4.4) | (2.2) |
Short-term borrowings | 110.8 | 270.9 |
Fair Value | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent consideration | 30.5 | 23.2 |
Floating Rate Senior notes due January 25, 2019 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 300 | 300 |
Floating Rate Senior notes due January 25, 2019 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 299.9 | 299.9 |
2.45% Senior notes due December 15, 2019 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 299.9 | 299.9 |
2.45% Senior notes due December 15, 2019 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 297.6 | 300.9 |
2.45% Senior notes due August 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 299.7 | 299.7 |
2.45% Senior notes due August 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 286.9 | 296.1 |
2.875% Senior notes due October 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 399.8 | 399.8 |
2.875% Senior notes due October 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 390.8 | 400.2 |
3.15% Senior notes due August 1, 2027 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 424.6 | 424.6 |
3.15% Senior notes due August 1, 2027 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 393.3 | 417.8 |
3.95% Senior notes due August 1, 2047 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 397.2 | 397.1 |
3.95% Senior notes due August 1, 2047 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 360.4 | $ 397.4 |
Carrying Amounts and Estimate55
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Parenthetical) (Details) | Jun. 30, 2018 | Dec. 31, 2017 |
2.45% Senior notes due December 15, 2019 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due December 15, 2019 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due August 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due August 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.875% Senior notes due October 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
2.875% Senior notes due October 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
3.15% Senior notes due August 1, 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.15% Senior notes due August 1, 2027 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.95% Senior notes due August 1, 2047 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
3.95% Senior notes due August 1, 2047 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
Schedule of Notional Amounts (D
Schedule of Notional Amounts (Details) lb in Millions, gal in Millions, $ in Millions | Jun. 30, 2018USD ($)gallb | Dec. 31, 2017USD ($)gallb |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 87.6 | $ 91.6 |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 300 | $ 300 |
Designated as Hedging Instrument | Diesel fuel contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | gal | 1.5 | 3 |
Designated as Hedging Instrument | Commodities Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | lb | 161.1 | 28.3 |
Not Designated as Hedging Instrument | Equity derivatives | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 21.9 | $ 22.2 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Millions | Mar. 08, 2018 | Aug. 07, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 | |||
Passport Food Safety Solutions, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price subject to working capital adjustment | $ 50 | |||||||
Date of business acquisition | Mar. 8, 2018 | |||||||
Contingent consideration arrangements, basis for amount | additional payment of up to $25.0 based on sales performance through 2020 | |||||||
Payment to be made if certain operating performance is achieved | $ 7.3 | |||||||
Net Sales | $ 21 | |||||||
Passport Food Safety Solutions, Inc. | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Average life of the amortizable intangible assets, years | 10 years | |||||||
Passport Food Safety Solutions, Inc. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment to be made if certain operating performance is achieved | $ 25 | |||||||
Average life of the amortizable intangible assets, years | 15 years | |||||||
Water Pik Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price subject to working capital adjustment | $ 1,024.6 | |||||||
Net Sales | $ 265 | $ 898 | $ 1,775.2 | |||||
Average life of the amortizable intangible assets, years | 15 years | |||||||
Proceeds from underwritten public offering | $ 1,425 | |||||||
Senior notes acquisitions completed date | Jul. 25, 2017 | |||||||
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. |
Fair Values of Net Assets Acqui
Fair Values of Net Assets Acquired (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 08, 2018 | Dec. 31, 2017 | Aug. 07, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,992.9 | $ 1,958.9 | ||
Passport Food Safety Solutions, Inc. | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 3.3 | |||
Long-term assets | 1 | |||
Trade names and other intangibles | 28.5 | |||
Goodwill | 32.5 | |||
Current liabilities | (1.1) | |||
Long-term liabilities | (7.1) | |||
Contingent consideration | (7.3) | |||
Cash purchase price (net of cash acquired) | $ 49.8 | |||
Water Pik Inc | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 95.4 | |||
Property, plant and equipment | 28.4 | |||
Trade name (indefinite lived) | 644.7 | |||
Other intangible assets | 146.1 | |||
Goodwill | 425.8 | |||
Current liabilities | (31.8) | |||
Long-term liabilities | (284) | |||
Cash purchase price (net of cash acquired) | $ 1,024.6 |
Schedule of Unaudited Pro Forma
Schedule of Unaudited Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 07, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 | |
Net income per share - Basic | $ 0.50 | $ 0.29 | $ 1.14 | $ 0.81 | ||
Net income per share - Diluted | $ 0.49 | $ 0.29 | $ 1.12 | $ 0.79 | ||
Water Pik Inc | ||||||
Business Acquisition [Line Items] | ||||||
Net Sales | $ 265 | $ 898 | $ 1,775.2 | |||
Net Income | $ 72.9 | $ 204.4 | ||||
Net income per share - Basic | $ 0.29 | $ 0.81 | ||||
Net income per share - Diluted | $ 0.29 | $ 0.79 | ||||
Net Sales, Pro forma | $ 968.2 | $ 1,914.3 | ||||
Net Income, Pro forma | $ 77.4 | $ 214.2 | ||||
Net income per share - Basic, Pro forma | $ 0.31 | $ 0.85 | ||||
Net income per share - Diluted, Pro forma | $ 0.30 | $ 0.83 | ||||
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,251 | $ 1,223 |
Accumulated Amortization | (422.7) | (387.3) |
Net | 828.3 | 835.7 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 579 | 576.7 |
Accumulated Amortization | (160.4) | (145.2) |
Net | 418.6 | 431.5 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 506.2 | 480.5 |
Accumulated Amortization | (205.4) | (190.2) |
Net | 300.8 | 290.3 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 165.4 | 165.4 |
Accumulated Amortization | (56.6) | (51.7) |
Net | 108.8 | 113.7 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.4 | 0.4 |
Accumulated Amortization | (0.3) | (0.2) |
Net | $ 0.1 | $ 0.2 |
Indefinite Lived Intangible Ass
Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Value, Trade names | $ 1,483.6 | $ 1,484.8 |
Goodwill and Other Intangible62
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Amortization expense of intangible assets | $ 17.8 | $ 14.4 | $ 35.8 | $ 28.3 |
Estimated amortization expense, 2018 | 71 | 71 | ||
Trade Names | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Intangible assets fair value in excess to carrying value | $ 34 | $ 34 | ||
Intangible assets fair value in excess to carrying value percentage | 12.00% | 12.00% | ||
Maximum | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Estimated amortization expense, 2019 | $ 70 | $ 70 | ||
Estimated amortization expense, 2020 | 70 | 70 | ||
Estimated amortization expense, 2021 | 70 | 70 | ||
Estimated amortization expense, 2022 | 70 | 70 | ||
Estimated amortization expense, 2023 | 70 | 70 | ||
Minimum | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Estimated amortization expense, 2019 | 60 | 60 | ||
Estimated amortization expense, 2020 | 60 | 60 | ||
Estimated amortization expense, 2021 | 60 | 60 | ||
Estimated amortization expense, 2022 | 60 | 60 | ||
Estimated amortization expense, 2023 | $ 60 | $ 60 |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 1,958.9 |
Ending balance | 1,992.9 |
Passport Food Safety Solutions, Inc. | |
Goodwill [Line Items] | |
Goodwill acquired during the period | 32.5 |
Water Pik Inc | |
Goodwill [Line Items] | |
Goodwill adjustment | 1.5 |
Consumer Domestic | |
Goodwill [Line Items] | |
Beginning balance | 1,632.1 |
Ending balance | 1,633.2 |
Consumer Domestic | Passport Food Safety Solutions, Inc. | |
Goodwill [Line Items] | |
Goodwill acquired during the period | 0 |
Consumer Domestic | Water Pik Inc | |
Goodwill [Line Items] | |
Goodwill adjustment | 1.1 |
Consumer International | |
Goodwill [Line Items] | |
Beginning balance | 223.3 |
Ending balance | 223.7 |
Consumer International | Passport Food Safety Solutions, Inc. | |
Goodwill [Line Items] | |
Goodwill acquired during the period | 0 |
Consumer International | Water Pik Inc | |
Goodwill [Line Items] | |
Goodwill adjustment | 0.4 |
Specialty Products | |
Goodwill [Line Items] | |
Beginning balance | 103.5 |
Ending balance | 136 |
Specialty Products | Passport Food Safety Solutions, Inc. | |
Goodwill [Line Items] | |
Goodwill acquired during the period | 32.5 |
Specialty Products | Water Pik Inc | |
Goodwill [Line Items] | |
Goodwill adjustment | $ 0 |
Accounts Payable and Accrued 64
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |||
Trade accounts payable | $ 419.8 | $ 398.9 | |
Accrued marketing and promotion costs | 125.4 | 108.4 | |
Accrued wages and related benefit costs | 45.8 | 61.8 | |
Other accrued current liabilities | 90.8 | 90 | |
Total | $ 681.8 | $ 662.1 | $ 659.1 |
Summary of Short-Term Borrowing
Summary of Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Short-term borrowings | ||
Commercial paper issuances | $ 109 | $ 268.7 |
Various debt due to international banks | 1.8 | 2.2 |
Total short-term borrowings | 110.8 | 270.9 |
Long-term debt | ||
Debt issuance costs, net | (14.7) | (15.5) |
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | (4.4) | (2.2) |
Total long-term debt | 2,102.1 | 2,103.4 |
Less: current maturities | (299.5) | 0 |
Net long-term debt | 1,802.6 | 2,103.4 |
Floating Rate Senior notes due January 25, 2019 | ||
Long-term debt | ||
Senior notes | 300 | 300 |
2.45% Senior notes due December 15, 2019 | ||
Long-term debt | ||
Senior notes | 300 | 300 |
Less: Discount | (0.1) | (0.1) |
2.45% Senior notes due August 1, 2022 | ||
Long-term debt | ||
Senior notes | 300 | 300 |
Less: Discount | (0.3) | (0.3) |
2.875% Senior notes due October 1, 2022 | ||
Long-term debt | ||
Senior notes | 400 | 400 |
Less: Discount | (0.2) | (0.2) |
3.15% Senior notes due August 1, 2027 | ||
Long-term debt | ||
Senior notes | 425 | 425 |
Less: Discount | (0.4) | (0.4) |
3.95% Senior notes due August 1, 2047 | ||
Long-term debt | ||
Senior notes | 400 | 400 |
Less: Discount | $ (2.8) | $ (2.9) |
Summary of Short-Term Borrowi66
Summary of Short-Term Borrowings and Long-Term Debt (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
2.45% Senior notes due December 15, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
Maturity date of debt | Dec. 15, 2019 | Dec. 15, 2019 |
2.45% Senior notes due August 1, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
Maturity date of debt | Aug. 1, 2022 | Aug. 1, 2022 |
2.875% Senior notes due October 1, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
Maturity date of debt | Oct. 1, 2022 | Oct. 1, 2022 |
3.15% Senior notes due August 1, 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
Maturity date of debt | Aug. 1, 2027 | Aug. 1, 2027 |
3.95% Senior notes due August 1, 2047 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
Maturity date of debt | Aug. 1, 2047 | Aug. 1, 2047 |
Floating Rate Senior notes due January 25, 2019 | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | Jan. 25, 2019 | Jan. 25, 2019 |
Short-Term Borrowings and Lon67
Short-Term Borrowings and Long-Term Debt - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Mar. 29, 2018 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000 | |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000 | |
Line of credit facility, current borrowing capacity | 1,000 | |
Additional borrowing capacity | $ 600 | |
Maturity date of debt | Mar. 29, 2023 |
Components of Changes in Accumu
Components of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | $ (36.4) | $ (63.8) | |||||
Adoption of new accounting pronouncement (Note 2) | (0.6) | ||||||
Other comprehensive income (loss) before reclassifications | (14.1) | 10.6 | |||||
Amounts reclassified to consolidated statement of income | $ (0.1) | $ (12.1) | 0 | [1],[2] | 12.2 | [2],[3] | |
Tax benefit (expense) | 1.8 | (0.3) | |||||
Other comprehensive income (loss) | (15.6) | 15.2 | (12.3) | 22.5 | |||
Ending balance | (49.3) | (41.3) | (49.3) | (41.3) | |||
Foreign Currency Adjustments | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | (31.6) | (50) | |||||
Adoption of new accounting pronouncement (Note 2) | (0.3) | ||||||
Other comprehensive income (loss) before reclassifications | (6.4) | 14.6 | |||||
Amounts reclassified to consolidated statement of income | [2] | 0 | [1] | 0 | [3] | ||
Tax benefit (expense) | 0 | 0 | |||||
Other comprehensive income (loss) | (6.4) | 14.6 | |||||
Ending balance | (38.3) | (35.4) | (38.3) | (35.4) | |||
Defined Benefit Plans | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | (0.6) | (13.2) | |||||
Adoption of new accounting pronouncement (Note 2) | 0.1 | ||||||
Other comprehensive income (loss) before reclassifications | 0 | 2.2 | |||||
Amounts reclassified to consolidated statement of income | [2] | 0 | [1] | 11.9 | [3] | ||
Tax benefit (expense) | 0 | (2.2) | |||||
Other comprehensive income (loss) | 0 | 11.9 | |||||
Ending balance | (0.5) | (1.3) | (0.5) | (1.3) | |||
Derivative Agreements | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | (4.2) | (0.6) | |||||
Adoption of new accounting pronouncement (Note 2) | (0.4) | ||||||
Other comprehensive income (loss) before reclassifications | (7.7) | (6.2) | |||||
Amounts reclassified to consolidated statement of income | [2] | 0 | [1] | 0.3 | [3] | ||
Tax benefit (expense) | 1.8 | 1.9 | |||||
Other comprehensive income (loss) | (5.9) | (4) | |||||
Ending balance | $ (10.5) | $ (4.6) | $ (10.5) | $ (4.6) | |||
[1] | Amounts reclassified to cost of sales or interest expense. | ||||||
[2] | The Company reclassified a loss of $0.1 and a loss of $12.1 to the consolidated statement of income during the three months ended June 30, 2018 and 2017, respectively. | ||||||
[3] | In connection with the termination of international defined benefit plans $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales. |
Components of Changes in Accu69
Components of Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | [1] | Jun. 30, 2017 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Amounts loss (gain) reclassified to consolidated statement of income | $ 0.1 | $ 12.1 | $ 0 | [2] | $ (12.2) | [2],[3] | |
International Defined Benefit Pension Plans | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Amounts loss (gain) reclassified to consolidated statement of income | [2] | $ 0 | (11.9) | [3] | |||
International Defined Benefit Pension Plans | Selling, General and Administrative Expenses | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Amounts loss (gain) reclassified to consolidated statement of income | $ (11.9) | ||||||
[1] | Amounts reclassified to cost of sales or interest expense. | ||||||
[2] | The Company reclassified a loss of $0.1 and a loss of $12.1 to the consolidated statement of income during the three months ended June 30, 2018 and 2017, respectively. | ||||||
[3] | In connection with the termination of international defined benefit plans $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales. |
Commitments, Contingencies an70
Commitments, Contingencies and Guarantees - Additional Information (Details) $ in Millions | Mar. 08, 2018USD ($) | May 01, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($)T |
Commitments And Contingencies Disclosure [Line Items] | ||||
Annual purchase commitment, in tons | T | 240,000 | |||
Commitments | $ 246.1 | |||
Outstanding guarantees and letters of credit | 5.5 | |||
Estimated minimum compensatory punitive damages | $ 20 | |||
Agro Bio Sciences Inc | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment to be made if certain operating performance is achieved | $ 17.8 | $ 17.8 | ||
Payment year of achieving certain operating performance | 2,019 | |||
Remeasurement period for liability assessed at each end of balance sheet | 3 years | |||
Passport Food Safety Solutions, Inc. | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment to be made if certain operating performance is achieved | $ 7.3 | |||
Payment year of achieving certain operating performance | 2,020 | |||
Remeasurement date for liability assessed at each end of balance sheet date | Dec. 31, 2020 | |||
Maximum | Agro Bio Sciences Inc | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment to be made if certain operating performance is achieved | $ 25 | |||
Maximum | Passport Food Safety Solutions, Inc. | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment to be made if certain operating performance is achieved | $ 25 | |||
Updated Financial Performance Forecasts | Agro Bio Sciences Inc | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment to be made if certain operating performance is achieved | 23.2 | |||
Updated Financial Performance Forecasts | Selling, General and Administrative Expenses | Specialty Products | Agro Bio Sciences Inc | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Increased estimate of contingent consideration liability | $ 5.4 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Armand Products Company | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
ArmaKleen Company | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
Balance and Transactions Betwee
Balance and Transactions Between Company and Related Party (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Armand Products Company | |||
Related Party Transaction [Line Items] | |||
Purchases by Company | $ 7.4 | $ 10 | |
Sales by Company | 0 | 0 | |
Outstanding Accounts Receivable | 0.6 | 0.4 | |
Outstanding Accounts Payable | 1.5 | 2.3 | |
Administration & Management Oversight Services | [1] | 1.2 | 1.2 |
ArmaKleen Company | |||
Related Party Transaction [Line Items] | |||
Purchases by Company | 0 | 0 | |
Sales by Company | 0.6 | 0.6 | |
Outstanding Accounts Receivable | 0.5 | 0.8 | |
Outstanding Accounts Payable | 0 | 0 | |
Administration & Management Oversight Services | [1] | $ 1.1 | $ 1 |
[1] | Billed by Company and recorded as a reduction of selling, general and administrative expenses. |
Segments - Additional Informati
Segments - Additional Information (Details) - Segment | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | |
Armand Products Company | ||
Segment Reporting Information [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
ArmaKleen Company | ||
Segment Reporting Information [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
Selected Financial Information
Selected Financial Information Relating To Company's Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 | ||
Income Before Income Taxes | [2] | 155.4 | 116.8 | [3] | 356.1 | 307 | [3] |
Operating Segments | Consumer Domestic | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | [1] | 774.1 | 678.2 | 1,525.5 | 1,337.9 | ||
Income Before Income Taxes | [2] | 119.4 | 123.7 | [3] | 278.7 | 284.6 | [3] |
Operating Segments | Consumer International | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | [1] | 176.1 | 145.1 | 356.8 | 288.2 | ||
Income Before Income Taxes | [2] | 18 | (23.7) | [3] | 45.7 | (4.3) | [3] |
Operating Segments | Specialty Products | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | [1] | 77.7 | 74.7 | 151.6 | 149.1 | ||
Income Before Income Taxes | [2] | 15.6 | 13.7 | [3] | 27.2 | 21.5 | [3] |
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Income Before Income Taxes | [2],[3] | $ 2.4 | $ 3.1 | $ 4.5 | $ 5.2 | ||
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. | ||||||
[2] | In determining Income before Income Taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative Income from Operations. | ||||||
[3] | Includes a pension settlement charge of $39.2 recorded in Consumer International. |
Selected Financial Informatio75
Selected Financial Information Relating To Company's Segments (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 |
Consumer International | |||||
Segment Reporting Information [Line Items] | |||||
Pension settlement charge | 39.2 | ||||
Intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 1.7 | $ 1.3 | $ 2.6 | $ 2.7 | |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. |
Product Line Revenues from Exte
Product Line Revenues from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 1,027.9 | $ 898 | $ 2,033.9 | $ 1,775.2 |
Operating Segments | Consumer Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 774.1 | 678.2 | 1,525.5 | 1,337.9 |
Operating Segments | Consumer Domestic | Household Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 429.9 | 410.8 | 842.9 | 805.3 | |
Operating Segments | Consumer Domestic | Personal Care Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 344.2 | 267.4 | 682.6 | 532.6 | |
Operating Segments | Consumer International | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 176.1 | 145.1 | 356.8 | 288.2 |
Operating Segments | Specialty Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 77.7 | $ 74.7 | $ 151.6 | $ 149.1 |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $1.7 and $1.3 for the three months ended June 30, 2018 and June 30, 2017, respectively, and were $2.6 and $2.7 for the six months ended June 30, 2018 and June 30, 2017, respectively. |