Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 1-9328 | ||
Entity Registrant Name | ECOLAB INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0231510 | ||
Entity Address, Address Line One | 1 Ecolab Place | ||
Entity Address, City or Town | St. Paul | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55102 | ||
City Area Code | 800 | ||
Local Phone Number | 232-6522 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 56,528,667,907 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 285,849,956 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000031462 | ||
Amendment Flag | false | ||
Common Stock | |||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | ECL | ||
Security Exchange Name | NYSE | ||
2.625% Euro Notes due 2025 | |||
Title of 12(b) Security | 2.625% Euro Notes due 2025 | ||
Trading Symbol | ECL 25 | ||
Security Exchange Name | NYSE | ||
1.000% Euro Notes due 2024 | |||
Title of 12(b) Security | 1.000% Euro Notes due 2024 | ||
Trading Symbol | ECL 24 | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 11,790.2 | $ 12,562 | $ 12,222.1 |
Cost of sales (including special charges (a)) | 6,905.8 | 7,045.8 | 6,875.3 |
Selling, general and administrative expenses | 3,309.1 | 3,550.8 | 3,505.8 |
Special (gains) and charges | 179.6 | 120.2 | 112.7 |
Operating income | 1,395.7 | 1,845.2 | 1,728.3 |
Other (income) expense (b) | (55.9) | (77) | (79.9) |
Interest expense, net (c) | 290.2 | 190.7 | 221.1 |
Income before income taxes | 1,161.4 | 1,731.5 | 1,587.1 |
Provision for income taxes | 176.6 | 288.6 | 321.2 |
Net income from continuing operations including noncontrolling interest | 984.8 | 1,442.9 | 1,265.9 |
Net income from continuing operations attributable to noncontrolling interest | 17.4 | 17.3 | 15.6 |
Net income from continuing operations attributable to Ecolab | 967.4 | 1,425.6 | 1,250.3 |
Net (loss) income from discontinued operations, net of tax (Note 5) (d) | (2,172.5) | 133.3 | 178.8 |
Net (loss) income attributable to Ecolab | $ (1,205.1) | $ 1,558.9 | $ 1,429.1 |
Basic EPS | |||
Continuing operations | $ 3.37 | $ 4.95 | $ 4.33 |
Discontinued operations | (7.57) | 0.46 | 0.62 |
Earnings (loss) attributable to Ecolab | (4.20) | 5.41 | 4.95 |
Diluted EPS | |||
Continuing operations | 3.33 | 4.87 | 4.27 |
Discontinued operations | (7.48) | 0.46 | 0.61 |
Earnings (loss) attributable to Ecolab | $ (4.15) | $ 5.33 | $ 4.88 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 287 | 288.1 | 288.6 |
Diluted (in shares) | 290.3 | 292.5 | 292.8 |
Product and sold equipment | |||
Net sales | $ 9,466.6 | $ 10,129 | $ 9,903.6 |
Cost of sales (including special charges (a)) | 5,481.3 | 5,617.5 | 5,510.6 |
Service and lease equipment | |||
Net sales | 2,323.6 | 2,433 | 2,318.5 |
Cost of sales (including special charges (a)) | $ 1,424.5 | $ 1,428.3 | $ 1,364.7 |
CONSOLIDATED STATEMENT OF INC_2
CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Special charges | $ 59.3 | $ 35 | $ 69.4 | $ 15.9 | $ 31.4 | $ 24.9 | $ 24.4 | $ 39.5 | $ 179.6 | $ 120.2 | $ 112.7 |
Net income (loss) from discontinued operations attributable to noncontrolling interest | 2.2 | 0 | (4.4) | ||||||||
Cost of sales | |||||||||||
Special charges | 48.2 | 38.5 | 4.8 | ||||||||
Other (income) expense | |||||||||||
Special charges | $ 0.4 | $ 9.5 | 0.4 | 9.5 | |||||||
Interest expense | |||||||||||
Special charges | 83.8 | 0.2 | 0.3 | ||||||||
Product and sold equipment | Cost of sales | |||||||||||
Special charges | 39.3 | $ 38.5 | $ 4.8 | ||||||||
Service and lease equipment | Cost of sales | |||||||||||
Special charges | $ 8.9 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
Net (loss) income attributable to Ecolab | $ (1,205.1) | $ 1,558.9 | $ 1,429.1 |
Net income from continuing operations attributable to noncontrolling interest | 17.4 | 17.3 | 15.6 |
Net income (loss) from discontinued operations attributable to noncontrolling interest | 2.2 | 0 | (4.4) |
Net (loss) income attributable to Ecolab, including noncontrolling interest | (1,185.5) | 1,576.2 | 1,440.3 |
Foreign currency translation adjustments | |||
Foreign currency translation | 50 | (45.1) | (223.3) |
Separation of ChampionX | 229.9 | ||
(Loss) gain on net investment hedges | (87.7) | 31.4 | 57.5 |
Total foreign currency translation adjustments | 192.2 | (13.7) | (165.8) |
Derivatives and hedging instruments | (17) | (3.4) | 28.4 |
Pension and postretirement benefits | |||
Current period net actuarial loss | (139.2) | (251.1) | (37.8) |
Pension and postretirement prior period service (costs) and benefits | 5.1 | (0.3) | (2.3) |
Amortization of net actuarial loss and prior service costs included in net periodic pension and postretirement costs | 56 | (0.2) | 13.2 |
Postretirement benefits changes | 44.9 | ||
Total pension and postretirement benefits | (78.1) | (251.6) | 18 |
Subtotal | 97.1 | (268.7) | (119.4) |
Total comprehensive income (loss), including noncontrolling interest | (1,088.4) | 1,307.5 | 1,320.9 |
Comprehensive income attributable to noncontrolling interest | 21.4 | 15.4 | 10.1 |
Comprehensive income (loss) attributable to Ecolab | $ (1,109.8) | $ 1,292.1 | $ 1,310.8 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,260.2 | $ 118.8 |
Accounts receivable, net | 2,273.8 | 2,382 |
Inventories | 1,285.2 | 1,081.6 |
Other current assets | 298.2 | 295.2 |
Current assets of discontinued operations | 950.8 | |
Total current assets | 5,117.4 | 4,828.4 |
Property, plant and equipment, net | 3,124.9 | 3,228.3 |
Goodwill | 6,006.9 | 5,569.1 |
Other intangible assets, net | 2,977 | 2,927.5 |
Operating lease assets | 423.8 | 466.7 |
Other assets | 476 | 516.3 |
Long-term assets of discontinued operations | 3,332.8 | |
Total assets | 18,126 | 20,869.1 |
Current liabilities | ||
Short-term debt | 17.3 | 380.5 |
Accounts payable | 1,160.6 | 1,075.3 |
Compensation and benefits | 469.3 | 565.7 |
Income taxes | 96.1 | 136.9 |
Other current liabilities | 1,188.9 | 1,110.7 |
Current liabilities of discontinued operations | 361.5 | |
Total current liabilities | 2,932.2 | 3,630.6 |
Long-term debt | 6,669.3 | 5,973.1 |
Postretirement health care and pension benefits | 1,226.2 | 1,084.4 |
Deferred income taxes | 483.9 | 537.3 |
Operating lease liabilities | 300.5 | 346 |
Other liabilities | 312.4 | 269.8 |
Long-term liabilities of discontinued operations | 302.1 | |
Total liabilities | 11,924.5 | 12,143.3 |
Commitments and contingencies (Note 16) | ||
Equity (a) | ||
Common stock | 362.6 | 359.6 |
Additional paid-in capital | 6,235 | 5,907.1 |
Retained earnings | 8,243 | 9,993.7 |
Accumulated other comprehensive loss | (1,994.4) | (2,089.7) |
Treasury stock | (6,679.7) | (5,485.4) |
Total Ecolab shareholders' equity | 6,166.5 | 8,685.3 |
Noncontrolling interest | 35 | 40.5 |
Total equity | 6,201.5 | 8,725.8 |
Total liabilities and equity | $ 18,126 | $ 20,869.1 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEET | ||
Common stock, shares authorized | 800 | 800 |
Common stock, par value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares outstanding | 285.7 | 288.4 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net (loss) income including noncontrolling interest | $ (1,185.5) | $ 1,576.2 | $ 1,440.3 |
Less: Net (loss) income from discontinued operations including noncontrolling interest | (2,170.3) | 133.3 | 174.4 |
Net income from continuing operations including noncontrolling interest | 984.8 | 1,442.9 | 1,265.9 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 594.3 | 569.1 | 535.9 |
Amortization | 218.4 | 206.2 | 194.5 |
Deferred income taxes | (45.8) | (22.1) | 122.6 |
Share-based compensation expense | 82.1 | 84 | 88 |
Pension and postretirement plan contributions | (70.7) | (186) | (60) |
Pension and postretirement plan expense | 42 | 22.6 | 25.7 |
Restructuring charges, net of cash paid | 7.8 | 29.9 | 40.2 |
Debt refinancing | 77.1 | ||
Other, net | 61 | 17.6 | 19.1 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | 155.6 | (173.1) | (132.5) |
Inventories | (179.5) | 22.3 | (100.5) |
Other assets | 42.3 | (70.4) | (76.8) |
Accounts payable | 55.9 | 22.9 | 99.8 |
Other liabilities | (283.5) | 80.8 | (15) |
Cash provided by operating activities - continuing operations | 1,741.8 | 2,046.7 | 2,006.9 |
Cash provided by operating activities - discontinued operations | 118.4 | 374 | 270.8 |
Cash provided by operating activities | 1,860.2 | 2,420.7 | 2,277.7 |
INVESTING ACTIVITIES | |||
Capital expenditures | (489) | (731.3) | (778.7) |
Property and other assets sold | 5.3 | 7.5 | 28 |
Acquisitions and investments in affiliates, net of cash acquired | (487) | (391.4) | (229.8) |
Divestiture of businesses | 116.2 | 6.8 | 9.2 |
Other, net | (3.2) | (21.2) | 9.4 |
Cash used for investing activities - continuing operations | (857.7) | (1,129.6) | (961.9) |
Cash provided by (used for) investing activities - discontinued operations | 443.2 | (69.5) | (68.1) |
Cash used for investing activities | (414.5) | (1,199.1) | (1,030) |
FINANCING ACTIVITIES | |||
Net issuances of commercial paper and notes payable | (65.5) | (252) | 341.8 |
Long-term debt borrowings | 1,855.9 | ||
Long-term debt repayments | (1,570) | (400.6) | (551.6) |
Reacquired shares | (146.2) | (353.7) | (562.4) |
Dividends paid | (560.8) | (552.9) | (494.8) |
Exercise of employee stock options | 241.5 | 186.8 | 114.5 |
Debt refinancing | (77.1) | ||
Other, net | (18) | 25.8 | (18.9) |
Cash provided by (used for) financing activities - continuing operations | (340.2) | (1,346.6) | (1,171.4) |
Cash used for financing activities - discontinued operations | (1.6) | (3) | (1.3) |
Cash provided by (used for) financing activities | (341.8) | (1,349.6) | (1,172.7) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (30.1) | 20.4 | 7.6 |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,073.8 | (107.6) | 82.6 |
Cash, cash equivalents and restricted cash, beginning of period - continuing operations (a) | 118.8 | 243.2 | 163.3 |
Cash, cash equivalents and restricted cash, beginning of period - discontinued operations | 67.6 | 50.8 | 48.1 |
Cash, cash equivalents and restricted cash, beginning of period (a) | 186.4 | 294 | 211.4 |
Cash, cash equivalents and restricted cash, end of period - continuing operations (b) | 1,260.2 | 118.8 | 243.2 |
Cash, cash equivalents and restricted cash, end of period - discontinued operations | 67.6 | 50.8 | |
Cash, cash equivalents and restricted cash, end of period (b) | 1,260.2 | 186.4 | 294 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid | 366.9 | 337.4 | 365.1 |
Net interest paid | $ 262.5 | $ 189.4 | $ 206.4 |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Restricted Cash | $ 0 | $ 0 | $ 179.3 | $ 0 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions | Ecolab Shareholders EquityCumulative Effect, Period of Adoption, Adjustment | Ecolab Shareholders Equity | Common Stock | Additional Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | OCI (Loss)Cumulative Effect, Period of Adoption, Adjustment | OCI (Loss) | Treasury Stock | Non-Controlling Interest | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at Dec. 31, 2017 | $ (43.6) | $ 7,583.6 | $ 354.7 | $ 5,435.7 | $ (43.6) | $ 8,011.6 | $ (1,643.4) | $ (4,575) | $ 70.2 | $ (43.6) | $ 7,653.8 | |
Balance (in shares) at Dec. 31, 2017 | 354,715,896 | (65,393,098) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 1,429.1 | 1,429.1 | 11.2 | 1,440.3 | ||||||||
Other comprehensive income (loss) activity | (118.3) | (118.3) | (1.1) | (119.4) | ||||||||
Cash dividends declared | (487.6) | (487.6) | (22.7) | (510.3) | ||||||||
Changes in noncontrolling interest | (7.7) | (7.7) | (7.2) | (14.9) | ||||||||
Stock options and awards | 210 | $ 2.3 | 205.2 | $ 2.5 | 210 | |||||||
Stock options (in shares) | 1,833,004 | 38,679 | ||||||||||
Stock awards (in shares) | 409,200 | 18,481 | ||||||||||
Reacquired shares | (562.3) | $ (562.3) | (562.3) | |||||||||
Reacquired shares (in shares) | (3,908,041) | |||||||||||
Balance at Dec. 31, 2018 | (2.8) | 8,003.2 | $ 357 | 5,633.2 | 58.4 | 8,909.5 | $ (61.2) | (1,761.7) | $ (5,134.8) | 50.4 | (2.8) | 8,053.6 |
Balance (in shares) at Dec. 31, 2018 | 356,958,100 | (69,243,979) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 1,558.9 | 1,558.9 | 17.3 | 1,576.2 | ||||||||
Other comprehensive income (loss) activity | (266.8) | (266.8) | (1.9) | (268.7) | ||||||||
Cash dividends declared | (533.1) | (533.1) | (25.1) | (558.2) | ||||||||
Changes in noncontrolling interest | 0.2 | 0.2 | 0 | |||||||||
Changes in noncontrolling interest | (0.2) | |||||||||||
Stock options and awards | 279.4 | $ 2.6 | 273.7 | $ 3.1 | 279.4 | |||||||
Stock options (in shares) | 2,220,815 | 41,575 | ||||||||||
Stock awards (in shares) | 390,319 | 29,173 | ||||||||||
Reacquired shares | (353.7) | $ (353.7) | (353.7) | |||||||||
Reacquired shares (in shares) | (1,986,241) | |||||||||||
Balance at Dec. 31, 2019 | $ (4.3) | 8,685.3 | $ 359.6 | 5,907.1 | $ (4.3) | 9,993.7 | (2,089.7) | $ (5,485.4) | 40.5 | $ (4.3) | $ 8,725.8 | |
Balance (in shares) at Dec. 31, 2019 | 359,569,234 | (71,159,472) | 288,400,000 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Retained earnings | $ 9,993.7 | |||||||||||
Net income | (1,205.1) | (1,205.1) | 19.6 | (1,185.5) | ||||||||
Other comprehensive income (loss) activity | 95.3 | 95.3 | 1.8 | 97.1 | ||||||||
Cash dividends declared | (541.3) | (541.3) | (21) | (562.3) | ||||||||
Separation of ChampionX | (1,059.9) | (8.5) | $ (1,051.4) | 3.4 | (1,056.5) | |||||||
Separation of ChampionX (in shares) | (4,955,552) | |||||||||||
Changes in noncontrolling interest | 17.6 | 17.6 | (9.3) | 8.3 | ||||||||
Stock options and awards | 325.1 | $ 3 | 318.8 | $ 3.3 | 325.1 | |||||||
Stock options (in shares) | 2,577,231 | 35,122 | ||||||||||
Stock awards (in shares) | 406,978 | 40,122 | ||||||||||
Reacquired shares | (146.2) | $ (146.2) | (146.2) | |||||||||
Reacquired shares (in shares) | (761,245) | |||||||||||
Balance at Dec. 31, 2020 | $ 6,166.5 | $ 362.6 | $ 6,235 | $ 8,243 | $ (1,994.4) | $ (6,679.7) | $ 35 | $ 6,201.5 | ||||
Balance (in shares) at Dec. 31, 2020 | 362,553,443 | (76,801,025) | 285,700,000 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Retained earnings | $ 8,243 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENT OF EQUITY | |||
Dividends declared per common share (in dollars per share) | $ 1.89 | $ 1.85 | $ 1.69 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
NATURE OF BUSINESS | |
NATURE OF BUSINESS | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS Ecolab is a global leader in water, hygiene and infection prevention solutions and services that protect people and vital resources. The Company delivers comprehensive solutions, data-driven insights and personalized service to advance food safety, maintain clean and safe environments, optimize water and energy use and improve operational efficiencies and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries. The Company’s cleaning and sanitizing programs and products and pest elimination services support customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care and commercial facilities management sectors. The Company’s products and technologies are also used in water treatment, pollution control, energy conservation, refining, primary metals manufacturing, papermaking, mining and other industrial processes. On June 3, 2020, the Company completed the previously announced separation of its Upstream Energy business (the “ChampionX business”) in a Reverse Morris Trust transaction (the “Transaction”) through the split-off of ChampionX Holding Inc. (“ChampionX”), formed by Ecolab as a wholly owned subsidiary to hold the ChampionX business, followed immediately by the merger (the “Merger”) of ChampionX with a wholly owned subsidiary of ChampionX Corporation (f/k/a Apergy Corporation, “Apergy”). As discussed in Note 5 Discontinued Operations, the ChampionX business met the criteria to be reported as discontinued operations because it was a strategic shift in business that had a major effect on the Company's operations and financial results. Therefore, the Company is reporting the historical results of ChampionX, including the results of operations and cash flows as discontinued operations, and the related assets and liabilities are classified as current assets of discontinued operations, long-term assets of discontinued operations, current liabilities of discontinued operations and long-term liabilities of discontinued operations for all periods presented herein. Unless otherwise noted, the accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the separation of ChampionX and all prior year balances have been revised accordingly to reflect continuing operations only. Effective in the first quarter of 2020, and in anticipation of the separation of the Upstream Energy business, the Company created the Upstream and Downstream operating segments from the Global Energy operating segment, which was also a reportable segment. Subsequent to the separation of ChampionX, the Company no longer reports the Upstream Energy segment, which previously held the ChampionX business. The Downstream operating segment has been aggregated into the Global Industrial reportable segment. Also, in the first quarter of 2020, the Company announced leadership changes which allow for shared oversight and focus on the Healthcare and Life Sciences operating segments and established the Global Healthcare & Life Sciences reportable segment. This segment is comprised of the Healthcare operating segment which was previously aggregated in the Global Institutional reportable segment and the Life Sciences operating segment which was previously aggregated in the Global Industrial reportable segment. Additionally, the Textile Care operating segment, which is now being reported in Other, had previously been aggregated in the Global Industrial reportable segment. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. The Company made other immaterial changes, including the movement of certain customers and cost allocations between reportable segments. The Company is aligned into three reportable segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences as discussed in Note 19 Operating Segments and Geographical Information. Operating segments that were not aggregated and do not exceed the quantitative criteria to be separately reported have been combined into Other. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries in which the Company has a controlling financial interest. Investments in companies, joint ventures or partnerships in which the Company does not have control but has the ability to exercise significant influence over operating and financial decisions, are reported using the equity method of accounting. The cost method of accounting is used in circumstances where the Company does not significantly influence the investee, and the investment has no readily determinable fair value. International subsidiaries are included in the financial statements on the basis of their U.S. GAAP November 30 fiscal year ends to facilitate the timely inclusion of such entities in the Company’s consolidated financial reporting. All intercompany transactions and profits are eliminated in consolidation. Use of Estimates The preparation of the Company’s financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s critical accounting estimates include revenue recognition, valuation allowances and accrued liabilities, actuarially determined liabilities, restructuring, income taxes, long-lived assets, intangible assets and goodwill. In March 2020, coronavirus 2019 (“COVID-19”) was declared a pandemic (“pandemic”) by the World Health Organization. As the impact of the pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require judgment. These estimates and assumptions may change in future periods and will be recognized in the consolidated financial information as new events occur and additional information becomes known. To the extent actual results differ materially from those estimates and assumptions, the Company’s future financial statements could be affected. Foreign Currency Translation Financial position and reported results of operations of the Company’s non-U.S. dollar functional currency international subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at each fiscal year end. The translation adjustments related to assets and liabilities that arise from changes in exchange rates from period to period are included in accumulated other comprehensive loss in shareholders’ equity. Income statement accounts are translated at average rates of exchange prevailing during the year. As discussed in Note 19 Operating Segments and Geographic Information, the Company evaluates its international operations based on fixed rates of exchange; however, changes in exchange rates from period to period impact the amount of reported income from consolidated operations. Concentration of Credit Risk Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed to perform as contracted. The Company believes the likelihood of incurring material losses due to concentration of credit risk is minimal. The principal financial instruments subject to credit risk are as follows: Cash and Cash Equivalents Accounts Receivable Foreign Currency and Interest Rate Contracts and Derivatives Cash and Cash Equivalents Cash equivalents include highly-liquid investments with a maturity of three months or less when purchased. Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Other assets on the Consolidated Balance Sheet and primarily relate to acquisition activities. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at the invoiced amounts, less an allowance for doubtful accounts, and generally do not bear interest. The Company’s allowance for doubtful accounts estimates the amount of expected future credit losses by analyzing accounts receivable balances by age and applying historical write-off and collection experience. The Company’s estimates separately considered macroeconomic trends and specific circumstances and credit conditions of customer receivables. Account balances are written off against the allowance when it is determined the receivable will not be recovered. The Company’s allowance for doubtful accounts balance also includes an allowance for the expected return of products shipped and credits related to pricing or quantities shipped of $16 million, $17 million and $16 million as of December 31, 2020, 2019, and 2018, respectively. Returns and credit activity is recorded directly as a reduction to revenue. The following table summarizes the activity in the allowance for doubtful accounts: (millions) 2020 2019 2018 Beginning balance $55.5 $52.4 $64.8 Adoption of new standard 4.3 - - Bad debt expense (a) 57.7 21.5 13.7 Write-offs (31.6) (19.1) (19.7) Other (b) (1.6) 0.7 (6.4) Ending balance $84.3 $55.5 $52.4 (a) B ad debt expense in 2020 reflects the impact of deteriorations and increased uncertainty in the macroeconomic outlook, primarily the Institutional customer base, as a result of the COVID-19 pandemic. (b) Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits. Inventory Valuations Inventories are valued at the lower of cost or net realizable value. Certain U.S. inventory costs are determined on a last-in, first-out (“LIFO”) basis. LIFO inventories represented 26% and 33% of consolidated inventories as of December 31, 2020 and 2019, respectively. All other inventory costs are determined using either the average cost or first-in, first-out (“FIFO”) methods. Inventory values at FIFO, as shown in Note 6, approximate replacement cost. Property, Plant and Equipment Property, plant and equipment assets are stated at cost. Merchandising and customer equipment consists principally of various dispensing systems for the Company’s cleaning and sanitizing products, warewashing machines and process control and monitoring equipment. Certain dispensing systems capitalized by the Company are accounted for on a mass asset basis, whereby equipment is capitalized and depreciated as a group and written off when fully depreciated. The Company capitalizes both internal and external costs to develop or purchase computer software. Costs incurred for data conversion, training and maintenance associated with capitalized software are expensed as incurred. Expenditures for major renewals and improvements, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Expenditures for repairs and maintenance are charged to expense as incurred. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives ranging from 5 to 40 years for buildings and leasehold improvements, 3 to 20 years for machinery and equipment, 3 to 20 years for merchandising and customer equipment and 3 to 7 years for capitalized software. The straight-line method of depreciation reflects an appropriate allocation of the cost of the assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. Depreciation expense was $594 million, $569 million and $536 million for 2020, 2019 and 2018, respectively. Goodwill and Other Intangible Assets Goodwill Goodwill arises from the Company’s acquisitions and represents the amount of purchase consideration exchanged, at fair value, in excess of the fair value of acquired net assets. The Company’s reporting units are its operating segments. The Company assesses goodwill for impairment on an annual basis during the second quarter. If circumstances change or events occur that demonstrate it is more likely than not that the carrying amount of a reporting unit exceeds its fair value, the Company completes an interim goodwill assessment of that reporting unit prior to the next annual assessment. If the results of a goodwill assessment demonstrate the carrying amount of a reporting unit is greater than its fair value, the Company will recognize an impairment loss for the amount by which the reporting unit’s carrying amount exceeds its fair value, but not to exceed the carrying amount of goodwill assigned to that reporting unit. During the second quarter of 2020, the Company completed its annual goodwill impairment assessment for each of its eleven reporting units using discounted cash flow analyses that incorporated assumptions regarding future growth rates, terminal values, and discount rates. The Company’s goodwill impairment assessment for 2020 indicated the estimated fair values of each of its reporting units exceeded their respective carrying amounts by significant margins. Additionally, no events noted during the second half of 2020 indicated a need to update any of the Company’s analyses or conclusions reached in the second quarter of 2020 for any of its eleven reporting units. There has been no impairment of goodwill in any of the periods presented. The changes in the carrying amount of goodwill for each of the Company’s reportable segments are as follows: Global Global Global Institutional Healthcare & Global (millions) Industrial & Specialty Life Sciences Energy Other Total December 31, 2018 $2,730.8 $1,015.3 $- $1,442.7 $205.3 $5,394.1 Segment change (a) 1,230.8 (597.5) 775.3 (1,442.7) 34.1 - December 31, 2018 revised $3,961.6 $417.8 $775.3 $- $239.4 $5,394.1 Current year business combinations (b) - 135.3 99.0 0.7 235.0 Prior year business combinations (c) (0.2) - - - (0.2) Effect of foreign currency translation (37.7) (4.9) (14.9) (2.3) (59.8) December 31, 2019 $3,923.7 $548.2 $859.4 $- $237.8 $5,569.1 Current year business combinations (b) 275.7 - - - - 275.7 Prior year business combinations (c) - - 0.6 - - 0.6 Dispositions (47.6) - - - - (47.6) Effect of foreign currency translation 136.1 15.9 49.8 - 7.3 209.1 December 31, 2020 $4,287.9 $564.1 $909.8 $- $245.1 $6,006.9 (a) Relates to reclassifications made as a result of changes in reportable segments during the first quarter of 2020. The ChampionX business was previously recorded in the Global Energy reportable segment and has been reported as discontinued operations. The goodwill that was previously assigned to the Global Energy reportable segment, which was also an operating segment and reporting unit, was reassigned to ChampionX and the Downstream operating segment, which both became separate reporting units during the first quarter of 2020, based on a relative fair value allocation. The Downstream operating segment is now aggregated into the Global Industrial reportable segment. In addition, the Company established the Global Healthcare & Life Sciences reportable segment during the first quarter of 2020 which is comprised of the Healthcare and Life Sciences operating segments, which were previously included in the Global Institutional and Global Industrial reportable segments, respectively. These were, and continue to be reporting units, therefore goodwill did not need to be reassigned as a result of the changes in segments. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. Refer to Note 19 for further information. (b) For 2020, the goodwill related to businesses acquired is not tax deductible. For 2019, $49.4 of the goodwill related to businesses acquired is expected to be tax deductible. (c) Represents purchase price allocation adjustments for acquisitions deemed preliminary as of the end of the prior year. Other Intangible Assets The Nalco trade name is the Company’s only indefinite life intangible asset. During the second quarter of 2020, the Company completed its annual impairment assessment of the Nalco trade name using the relief from royalty discounted cash flow method, which incorporates assumptions regarding future sales projections, royalty rates and discount rates. Based on this testing, the estimated fair value of the Nalco trade name exceeded its carrying amount by a significant margin; therefore, no adjustment to the $1.2 billion carrying amount of the Nalco trade name was necessary. Additionally, no events during the second half of 2020 indicated a need to update the Company’s conclusions reached during the second quarter of 2020. There has been no impairment of the Nalco trade name intangible asset since it was acquired. The Company’s intangible assets subject to amortization include customer relationships, trademarks, patents and other technology primarily acquired through business combinations. The fair value of intangible assets acquired in business combinations is estimated primarily using discounted cash flow methods at the time of acquisition. Intangible assets are amortized on a straight-line basis over their estimated lives. The weighted-average useful life of amortizable intangible assets was 14 years as of both December 31, 2020 and 2019. The weighted-average useful life by type of amortizable asset at December 31, 2020 is as follows: (years) Customer relationships 14 Trademarks 14 Patents 15 Other technology 7 The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company evaluates the remaining useful life of its intangible assets subject to amortization each reporting period to determine whether events and circumstances warrant a change to the estimated remaining period of amortization. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset will be amortized prospectively over the revised remaining useful life. Total amortization expense related to other intangible assets during the last three years and future estimated amortization is as follows: (millions) 2018 $ 193 2019 206 2020 219 2021 223 2022 219 2023 214 2024 207 2025 200 Long-Lived Assets The Company reviews its long-lived and amortizable intangible assets for impairment when significant events or changes in business circumstances indicate that the carrying amount of the assets, or asset group to which it is assigned, may not be recoverable. Such circumstances may include a significant decrease in the market price of an asset or asset group, a significant adverse change in the manner in which the asset or asset group is being used or history of operating or cash flow losses associated with the use of an asset or asset group. Impairment losses could occur when the carrying amount of an asset or asset group exceeds the anticipated future undiscounted cash flows expected to result from the use of the asset or asset group and its eventual disposition. The amount of the impairment loss to be recorded, if any, is calculated by the excess of the asset’s or asset group’s carrying value over its fair value. In addition, the Company periodically reassesses the estimated remaining useful lives of its long-lived assets. Changes to estimated useful lives would impact the amount of depreciation and amortization recorded in earnings. The Company has not experienced significant changes in the carrying amount or estimated remaining useful lives of its long-lived or amortizable intangible assets. Rental and Leases Change in Accounting Principle The Company adopted Accounting Standards Codification Topic 842 Leases prospectively on January 1, 2019. The adoption changed the manner in which the Company accounts for leases. The accounting policy and Note 14 have been revised for the change on a prospective basis. Lessee The Company determines whether a lease exists at the inception of the arrangement. In assessing whether a contract is or contains a lease, the Company evaluates whether the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company accounts for lease components separately from the nonlease components (e.g., common-area maintenance costs). Operating leases are recorded in operating lease assets, other current liabilities and operating lease liabilities in the Consolidated Balance Sheet. Operating lease assets and operating lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses the rate implicit in the lease when available or determinable. When the rate implicit in the lease is not determinable, the Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the lease liability and are recognized as incurred. The Company identified real estate, vehicles and other equipment as the primary classes of leases. Certain leases with a similar class of underlying assets are accounted for as a portfolio of leases. The Company does not record operating lease assets or liabilities for leases with terms of twelve months or less. Those lease payments will continue to be recognized in the Consolidated Statement of Income on a straight-line basis over the lease term. Many of the Company’s leases include options to renew or cancel, which are at the Company’s sole discretion. Renewal terms can extend the lease term from one month to multiple years. The lease start date is when the asset is available for use and in possession of the Company. The lease end date, which includes any options to renew or cancel that are reasonably certain to be exercised, is based on the terms of the contract. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any material restrictive covenants. Lessor The Company accounts for lease and nonlease components separately. The nonlease components, such as product and service revenue, are accounted for under Topic 606 Revenue from Contracts with Customers, refer to Note 18 for more information. Revenue from leasing equipment is recognized on a straight-line basis over the life of the lease. Cost of sales includes the depreciation expense for assets under operating leases. The assets are depreciated over their estimated useful lives. Initial lease terms range from one year to five years and most leases include renewal options. Lease contracts convey the right for the customer to control the equipment for a period of time as defined by the contract. There are no options for the customer to purchase the equipment and therefore the equipment remains the property of the Company at the end of the lease term. See Note 14 for additional information regarding rental and leases. Income Taxes Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax bases. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. Relevant factors in determining the realizability of deferred tax assets include historical results, sources of future taxable income, the expected timing of the reversal of temporary differences, tax planning strategies and the expiration dates of the various tax attributes. The Company records liabilities for income tax uncertainties in accordance with the U.S. GAAP recognition and measurement criteria guidance. The Company recognize interest and penalties related to income tax uncertainties in our income tax provision. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Tax Act added many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on global intangible low taxed income (‘GILTI”), the base erosion anti abuse tax (‘BEAT”) and a deduction for foreign derived intangible income (‘FDII”). The Company has elected the period cost method and considers the estimated GILTI impact in tax expense beginning in 2018. See Note 13 for additional information regarding income taxes. Share-Based Compensation The Company measures compensation expense for share-based awards at fair value at the date of grant and recognizes compensation expense over the service period for awards expected to vest. The majority of grants to retirement eligible recipients (age 55 with required years of service) are recorded to expense using the non-substantive vesting method and are fully expensed over a six-month period following the date of grant. In addition, the Company includes a forfeiture estimate in the amount of compensation expense being recognized based on an estimate of the number of outstanding awards expected to vest. All excess tax benefits or deficiencies are recognized as discrete income tax items on the Consolidated Statement of Income. The extent of excess tax benefits is subject to variation in stock price and stock option exercises. See Note 12 for additional information regarding equity compensation plans. Restructuring Activities The Company’s restructuring activities are associated with plans to enhance its efficiency, effectiveness and sharpen its competitiveness. These restructuring plans include net costs associated with significant actions involving employee-related severance charges, contract termination costs and asset write-downs and disposals. Employee termination costs are largely based on policies and severance plans, and include personnel reductions and related costs for severance, benefits and outplacement services. These charges are reflected in the quarter in which the actions are probable and the amounts are estimable, which typically is when management approves the associated actions. Contract termination costs include charges to terminate leases prior to the end of their respective terms and other contract termination costs. Asset write-downs and disposals include leasehold improvement write-downs, other asset write-downs associated with combining operations and disposal of assets. See Note 3 for additional information regarding restructuring activities. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing service. Product and Sold Equipment Revenue from product and sold equipment is recognized when obligations under the terms of a contract with the customer are satisfied, which generally occurs with the transfer of the product or delivery of the equipment. Service and Lease Equipment Revenue from service and leased equipment is recognized when the services are provided, or the customer receives the benefit from the leased equipment, which is over time. Service revenue is recognized over time utilizing an input method and aligns with when the services are provided. Typically, revenue is recognized using costs incurred to date because the effort provided by the field selling and service organization represents services provided, which corresponds with the transfer of control. Revenue for leased equipment is accounted for under Topic 842 Leases and recognized on a straight-line basis over the length of the lease contract. Other Considerations Contracts with customers may include multiple performance obligations. For contracts with multiple performance obligations, the consideration is allocated between products and services based on their stand-alone selling prices. Stand-alone selling prices are generally based on the prices charged to customers or using an expected cost plus margin. Judgment is used in determining the amount of service that is embedded within the Company’s contracts, which is based on the amount of time spent on the performance obligation activities. The level of effort, including the estimated margin that would be charged, is used to determine the amount of service revenue. Depending on the terms of the contract, the Company may defer the recognition of revenue when a future performance obligation has not yet occurred. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction, which are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight are recognized in cost of sales when control over the product has transferred to the customer. Other estimates used in recognizing revenue include allocating variable consideration to customer programs and incentive offerings, including pricing arrangements, promotions and other volume-based incentives at the time the sale is recorded. These estimates are based primarily on historical experience and anticipated performance over the contract period. Based on the certainty in estimating these amounts, they are included in the transaction price of the contracts and the associated remaining performance obligations. The Company recognizes revenue when collection of the consideration expected to be received in exchange for transferring goods or providing services is probable. The Company’s revenue policies do not provide for general rights of return. Estimates used in recognizing revenue include the delay between the time that products are shipped and when they are received by customers, when title transfers and the amount of credit memos issued in subsequent periods. Depending on market conditions, the Company may increase customer incentive offerings, which could reduce gross profit margins over the term of the incentive. Earnings Per Common Share The difference in the weighted average common shares outstanding for calculating basic and diluted earnings attributable to Ecolab per common share is a result of the dilution associated with the Company’s equity compensation plans. As noted in the table below, certain stock options and units outstanding under these equity compensation plans were not included in the computation of diluted earnings attributable to Ecolab per common share because they would not have had a dilutive effect. The computations of the basic and diluted earnings attributable to Ecolab per share amounts were as follows: (millions, except per share) 2020 2019 2018 Net income from continuing operations attributable to Ecolab $967.4 $1,425.6 $1,250.3 Net (loss) income from discontinued operations (2,172.5) 133.3 178.8 Net (loss) income attributable to Ecolab ($1,205.1) $1,558.9 $1,429.1 Weighted-average common shares outstanding Basic 287.0 288.1 288.6 Effect of dilutive stock options and units 3.3 4.4 4.2 Diluted 290.3 292.5 292.8 Earnings (loss) attributable to Ecolab per common share Basic EPS Continuing operations $ 3.37 $ 4.95 $ 4.33 Discontinued operations ($ 7.57) $ 0.46 $ 0.62 Earnings (loss) attributable to Ecolab ($ 4.20) $ 5.41 $ 4.95 Diluted EPS Continuing operations $ 3.33 $ 4.87 $ 4.27 Discontinued operations ($ 7.48) $ 0.46 $ 0.61 Earnings (loss) attributable to Ecolab ($ 4.15) $ 5.33 $ 4.88 Anti-dilutive securities excluded from the computation of diluted EPS 1.9 1.1 2.9 Amounts do not necessarily sum due to rounding. Assets Held for Sale Assets and liabilities are classified as held for sale and presented separately on the balance sheet when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. The ChampionX business met the criteria to be held for sale immediately prior to the Separation. The ChampionX business was previously recorded in the Global Energy reportable segment, which became the Upstream Energy reportable segment beginning in 2020 and subsequently has been reported in discontinued operations. The assets and liabilities held for sale are recorded on the Company’s Consolidated Balance Sheet as current assets of discontinued operations, long-term assets of discontinued operations, current liabilities of discontinued operations and long-term liabilities of discontinued operations, respectively. Discontinued Operations Discontinued operations comprise those activities that were disposed of during the period or which were classified as held for sale at the end of the period and represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. The ChampionX business met the criteria to be reported as discontinued operations because it was a strategic shift in business that had a major effect on the Company’s operations and financial results. The ChampionX business is presented on the Consolidated Statement of Income as discontinued operations. Refer to Note 5, Discontinued Operations, for additional information. Other Significant Accounting Policies The following table includes a reference to additional significant accounting policies that are described in other notes to the financial statements, including the note number: Policy Note Fair value measurements 8 Derivatives and hedging transactions 9 Share-based compensation 12 Research and development expenditures 15 Legal contingencies 16 Pension and post-retirement benefit plans 17 Reportable segments 19 New Accounting Pronouncements Standards that are not yet adopted: Required Date of Date of Effect on the Standard Issuance Description Adoption Financial Statements ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes December 2019 Simplifies the accounting for income taxes by removing certain exceptions to th |
SPECIAL (GAINS) AND CHARGES
SPECIAL (GAINS) AND CHARGES | 12 Months Ended |
Dec. 31, 2020 | |
SPECIAL (GAINS) AND CHARGES | |
SPECIAL (GAINS) AND CHARGES | 3. SPECIAL (GAINS) AND CHARGES Special (gains) and charges reported on the Consolidated Statement of Income included the following: (millions) 2020 2019 2018 Cost of sales Restructuring activities $7.4 $20.4 $5.4 Acquisition and integration activities 3.9 7.6 (0.6) COVID-19 activities, net 12.5 - - Other 24.4 10.5 - Cost of sales subtotal 48.2 38.5 4.8 Special (gains) and charges Restructuring activities 71.4 93.2 75.9 Acquisition and integration activities 8.5 5.6 8.8 Disposal and impairment activities 41.4 - - COVID-19 activities, net 23.6 - - Other 34.7 21.4 28.0 Special (gains) and charges subtotal 179.6 120.2 112.7 Operating income subtotal 227.8 158.7 117.5 Interest expense, net 83.8 0.2 0.3 Other (income) expense 0.4 9.5 - Total special (gains) and charges $312.0 $168.4 $117.8 For segment reporting purposes, special (gains) and charges are not allocated to reportable segments, which is consistent with the Company’s internal management reporting. Restructuring Activities Restructuring activities are primarily related to the Institutional Advancement Program and Accelerate 2020, both of which are described below. Restructuring activities have been included as a component of both cost of sales, special (gains) and charges and other (income) expense on the Consolidated Statement of Income. Restructuring liabilities have been classified as a component of other current and other noncurrent liabilities on the Consolidated Balance Sheet. Institutional Advancement Program During 2020, the Company approved a restructuring plan focused on the Institutional business (“the Institutional Plan”) which is intended to enhance our Institutional sales and service structure and allow the sales team to capture share and penetration while maximizing service effectiveness by leveraging our ongoing investments in digital technology. In February 2021, the Company expanded the Institutional Plan, and expect that these restructuring charges will be completed by 2023, with total anticipated costs of $80 million ($60 million after tax). The costs are expected to be primarily cash expenditures for severance and facility closures. We also anticipate non-cash costs related to equipment disposals. We expect total program savings of approximately $50 million by the end of 2024. Actual costs may vary from these estimates depending on actions taken. Certain activities contemplated in this Institutional Plan were previously approved in 2020 and included as part of Accelerate 2020 announced in 2018. These activities have been reclassified to the Institutional Plan. The Company recorded restructuring charges, including those reclassified from Accelerate 2020, of $35.2 million ($26.4 million after tax) primarily related to severance and costs to support the transition to the new sales structure. All of these charges are recorded within the Special (gains) and charges line on the Consolidated Statement of Income. The liability related to the Institutional Plan was $24.7 million as of December 31, 2020 and is expected to be paid over a period of a few months to several quarters and will continue to be funded from operating activities. Restructuring activity related to the Institutional Plan since inception of the underlying actions includes the following: Employee Termination Asset (millions) Costs Disposals Other Total 2020 Activity Recorded expense (income) and accrual $25.6 $- $9.6 $35.2 Net cash payments (0.9) - (9.6) (10.5) Non-cash net charges - - - - Effect of foreign currency translation - - - - Restructuring liability, December 31, 2020 $24.7 $- $- $24.7 Accelerate 2020 During 2018, the Company formally commenced a restructuring plan Accelerate 2020 (“the Plan”), to leverage technology and systems investments and organizational changes. The goal of the Plan is to simplify and automate processes and tasks, reduce complexity and management layers, consolidate facilities and focus on key long-term growth areas by further leveraging technology and structural improvements. In the third quarter of 2020, the Company expanded the Plan for additional costs and savings to further leverage the technology and structural improvements. Following the establishment of the separate Institutional Program, the Company now expects that the restructuring activities will be completed by the end of 2022, with total anticipated costs of $255 million ($195 million after tax) over this period of time, when revised for continuing operations. The costs are expected to be primarily cash expenditures for severance costs and some facility closure costs relating to team reorganizations. Actual costs may vary from these estimates depending on actions taken. The Company recorded restructuring charges of $41.8 million ($33.0 million after tax), $113.0 million ($86.5 million after tax) and $84.4 million ($64.3 million after tax) in 2020, 2019 and 2018, respectively, primarily related to severance. Of these expenses, $0.3 million ($0.2 million after tax) and $2.0 million ($1.5 million after tax) during 2020 and 2019, respectively, is recorded in other income expense and related to pension settlements and curtailments. The liability related to this Restructuring Plan was $71.8 million and $95.5 million as of December 31, 2020 and 2019, respectively. The remaining liability is expected to be paid over a period of a few months to several quarters and will continue to be funded from operating activities. The Company has recorded $239.2 million ($183.8 million after tax) of cumulative restructuring charges under the Plan. Restructuring activity related to the Plan since inception of the underlying actions includes the following: Employee Termination Asset (millions) Costs Disposals Other Total 2018 Activity Recorded expense $80.2 $- $4.2 $84.4 Net cash payments (22.2) - (1.1) (23.3) Non-cash charges - - - 0.0 Effect of foreign currency translation (0.5) - - (0.5) Restructuring liability, December 31, 2018 57.5 - 3.1 60.6 2019 Activity Recorded expense 102.3 0.2 10.5 113.0 Net cash payments (65.3) 1.2 (10.1) (74.2) Non-cash charges - (1.4) (2.0) (3.4) Effect of foreign currency translation (0.5) - - (0.5) Restructuring liability, December 31, 2019 94.0 - 1.5 95.5 2020 Activity Recorded expense 29.5 7.8 4.5 41.8 Net cash payments (56.8) - (1.0) (57.8) Non-cash charges - (7.8) - (7.8) Effect of foreign currency translation 0.1 - - 0.1 Restructuring liability, December 31, 2020 $66.8 $- $5.0 $71.8 Other Restructuring Activities During 2020, the Company incurred restructuring charges of $1.8 million ($1.2 million after tax) related to an immaterial restructuring plan. The charges are comprised of severance, asset disposals, and consulting fees. During 2019, net restructuring gains related to restructuring plans entered into prior to 2018 were $1.5 million ($1.1 million after tax). The gains recorded were due to finalizing estimates upon completion of projects. During 2018, the Company recorded restructuring charges of $3.1 million ($2.4 million after tax). The restructuring liability balance for all other restructuring plans excluding Accelerate 2020 and the Institutional Plan was $5.9 million and $7.7 million as of December 31, 2020 and 2019, respectively. The reduction in liability was driven primarily by severance payments. The remaining liability is expected to be paid over a period of a few months to several quarters and will continue to be funded from operating activities. Cash payments during 2020 related to these restructuring plans were $2.7 million. Acquisition and integration related costs Acquisition and integration costs reported in special (gains) and charges on the Consolidated Statement of Income in 2020 include $8.5 million ($6.9 million after tax). Charges are related to Copal Invest NV, including its primary operating entity CID Lines (collectively, “CID Lines”), Bioquell, PLC (“Bioquell”) and the Laboratoires Anios (“Anios”) acquisition and consist of integration costs, advisory and legal fees. Acquisition and integration costs reported in product and equipment cost of sales on the Consolidated Statement of Income in 2020 include $3.9 million ($3.2 million after tax) and are related to recognition of fair value step-up in CID Lines inventory, severance and the closure of a facility. In conjunction with its acquisitions, the Company incurred $0.7 million ($0.6 million after tax) of interest expense in 2020. During 2019, acquisition and integration costs reported in special (gains) and charges on the Consolidated Statement of Income in 2019 include $5.6 million ($4.1 million after tax). Charges are primarily related to the Bioquell and Anios acquisitions and consist of integration costs, advisory and legal fees. Acquisition and integration costs reported in product and equipment cost of sales on the Consolidated Statement of Income in 2019 include $7.6 million ($5.6 million after tax) and are related to recognition of fair value step-up in the Bioquell inventory and facility closure costs. In conjunction with the acquisitions, the Company incurred $0.2 million ($0.1 million after tax) of interest expense in 2019. During 2018, acquisition and integration costs reported in special (gains) and charges on the Consolidated Statement of Income included $8.8 million ($6.1 million after tax). Charges are primarily related to Anios integration costs, advisory and legal fees. The acquisition and integration gain reported in product and equipment cost of sales on the Consolidated Statement of Income in 2018 relate to changes in estimates related to an early lease exit. In conjunction with its acquisitions, the Company incurred $0.3 million ($0.2 million after tax) of interest expense in 2018. Disposal and impairment charges Disposal and impairment charges reported in special (gains) and charges on the Consolidated Statement of Income include $41.4 million ($41.5 million after tax) in 2020. During 2020, the Company recorded a $28.6 million ($28.6 million after tax) impairment for a minority equity method investment due to the COVID-19 impact on the economic environment and the liquidity of the minority equity method investment. In addition, the Company recorded charges of $12.8 million ($12.9 million after tax) related to the disposal of Holchem Group Limited (“Holchem”) for the loss on sale and related transaction fees during 2020. COVID-19 During 2020, the Company recorded charges of $57.1 million to protect the pay for certain employees directly impacted by the COVID-19 pandemic. In addition, the Company received subsidies and government assistance, which was recorded as a special (gain) of ($23.4) million during 2020. Finally, the Company recorded testing charges related to the COVID-19 pandemic of $2.4 million. COVID-19 pandemic charges are recorded in product and equipment sales, service and lease sales, and special (gains) and charges on the Consolidated Statement of Income. Total after tax net charges (gains) related to COVID-19 pandemic were $27.4 million. Other During 2020 and 2019, the Company recorded special charges of $24.4 million ($16.0 million after tax) and $10.5 million ($7.1 million after tax), respectively, recorded in product and equipment cost of sales on the Consolidated Statement of Income primarily related to a Healthcare product recall in Europe. Other special charges of $34.7 million ($33.9 million after tax) recorded in 2020 and $21.4 million ($16.2 million after tax) recorded in 2019 relate primarily to legal charges for specific legal cases and a specific legal reserve, which are recorded in special (gains) and charges on the Consolidated Statement of Income. The Company also recorded a $7.2 million special charge related to the separation of ChampionX as a tax expense on the Consolidated Statement of Income. During 2018, the Company recorded other special charges of $28.0 million ($21.2 million after tax) which primarily consisted of a $25.0 million ($18.9 million after tax) commitment to the Ecolab Foundation. Other charges, primarily litigation related charges, were minimal and have been included as a component of special (gains) and charges on the Consolidated Statement of Income. Other (Income) Expense During 2020 and 2019, the Company recorded other expense of $0.4 million ($0.3 million after tax) and $9.5 million ($7.2 million after tax) related to pension curtailments and settlements due to the ChampionX separation and Accelerate 2020 as discussed further above. These charges have been included as a component of other income expense on the Consolidated Statement of Income. Interest Expense, net During 2020, the Company recorded special charges of $83.1 million ($64.0 million after tax) in interest expense on the Consolidated Statement of Income related to debt refinancing charges. During 2020, 2019 and 2018, an immaterial amount of interest expense was also recorded due to acquisition and integration costs. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS AND DISPOSITIONS | |
ACQUISITIONS AND DISPOSITIONS | 4. ACQUISITIONS AND DISPOSITIONS Acquisitions The Company makes business acquisitions that align with its strategic business objectives. The assets and liabilities of acquired businesses are recorded in the Consolidated Balance Sheet at fair value as of their acquisition date. The purchase price allocation is based on estimates of the fair value of assets acquired, liabilities assumed and consideration paid. Purchase consideration is reduced by the amount of cash or cash equivalents acquired. Acquisitions during 2020, 2019 and 2018 were not significant to the Company’s consolidated financial statements; therefore, pro forma financial information is not presented. 2020 Activity CID Lines Acquisition During 2020, the Company acquired CID Lines for total consideration of $506.9 million in cash. CID Lines had annualized pre-acquisition sales of approximately $110 million and is a leading global provider of livestock biosecurity and hygiene solutions based in Belgium. The CID Lines acquisition has been accounted for as a business combination with the assets acquired and liabilities assumed recognized at fair value as of the acquisition date. Fair value measurement of certain carry over tax attributes, deferred income taxes, income tax uncertainties, and goodwill are not yet finalized and are subject to changes as the information necessary to complete the analyses is obtained and analyzed. Purchase accounting for this transaction is not yet complete pending finalization of certain estimated values. The amounts recorded reflect the Company’s best estimates as of December 31, 2020 and are subject to change. The Company incurred certain transaction and integration costs associated with the acquisition that were expensed and are reflected in the Consolidated Statement of Income. Further information related to the Company’s special (gains) and charges is included in Note 3. The following table summarizes the preliminary value of CID Lines assets acquired and liabilities assumed as of the acquisition date. (millions) 2020 Tangible assets $54.1 Identifiable intangible assets Customer relationships 147.5 Trademarks 58.6 Acquired technologies and product registrations 47.7 Total assets acquired 307.9 Goodwill 275.7 Total liabilities 98.1 Net consideration transferred to sellers $485.5 Tangible assets acquired primarily consist of accounts receivable of $30.3 million, property, plant and equipment of $7.3 million and inventory of $16.3 million. Liabilities assumed primarily consist of deferred tax liabilities of $64.8 million and current liabilities of $33.3 million. Identified intangible assets primarily consist of customer relationships, trademarks, and acquired technology and product registrations and are being amortized over average lives of 14 , 14 , and 16 years , respectively. Goodwill of $275.7 million arising from the acquisition consists largely of the synergies and economies of scale expected through adding complementary geographies and innovative products to our Food and Beverage businesses. CID Lines became part of the Global Industrial reportable segment. None of the goodwill recognized from the acquisition is expected to be deductible for income tax purposes. Other Acquisitions Other than CID Lines, the Company did not close on any other business acquisitions during 2020. 2019 Activity During 2019, the Company acquired Bioquell, a life sciences business which sells bio-decontamination products and services to the Life Sciences and Healthcare industries. This business became part of the Global Industrial reportable segment. During 2018, the Company deposited $179.3 million ( £ The Company also acquired Lobster Ink, a leading provider of end-to-end online customer training solutions. This acquired business became part of the Global Institutional & Specialty reportable segment. The purchase price included an earn-out based on the achievement of a revenue threshold in any of the three fiscal years following the acquisition. The acquisition date fair value of the earn-out was reflected in the overall purchase consideration exchanged for the acquisition and recorded as contingent consideration. The earn-out has not yet been paid or settled and the contingent consideration liability is recorded within other liabilities as of December 31, 2020. The Company also acquired Chemstar Corporation, a leading provider of cleaning and sanitizing products for the retail industry with a focus on cleaning chemicals and food safety. This acquired business became part of the Global Institutional & Specialty reportable segment. The Company also acquired Gallay Medical & Scientific which sells, installs, and services medical equipment and associated chemistry primarily for hospitals, healthcare facilities, and dental clinics. The acquired business became part of the Global Healthcare & Life Sciences reportable segment. Pre-acquisition sales for the businesses acquired in 2019 were $134 million. Purchase accounting for these acquisitions was finalized in 2020 resulting in insignificant purchase price adjustments being recorded. 2018 Activity During 2018, the Company acquired a water business which provides a range of services to Nalco Water institutional customers. This acquired business became part of the Company’s Global Industrial reportable segment. In addition, the Company acquired an institutional business which provides a range of cleaning and disinfection products for the hospitality, leisure, residential care, housekeeping and janitorial sectors. These acquisitions have been accounted for using the acquisition method of accounting. In addition, there were insignificant purchase price adjustments related to prior year acquisitions. Acquisitions The components of the cash paid for other acquisitions, excluding the CID Lines acquisition (as further disclosed above), for 2020, 2019 and 2018, are shown in the following table. (millions) 2020 2019 2018 Net tangible assets (liabilities) acquired and equity method investments $- ($8.0) $30.1 Identifiable intangible assets Customer relationships - 115.7 101.5 Trademarks - 24.1 3.9 Non-compete agreements - - 2.6 Other technology - 48.9 6.5 Total intangible assets - 188.7 114.5 Goodwill - 234.8 81.9 Total aggregate purchase price - 415.5 226.5 Acquisition-related liabilities and contingent considerations - (24.1) (1.5) Net cash paid for acquisitions, including acquisition-related liabilities and contingent considerations $- $391.4 $225.0 During 2020, the Company recorded purchase accounting adjustments associated with its 2019 acquisitions. As a result of these purchase accounting adjustments, the net intangible assets and goodwill recognized from these acquisitions increased by $0.9 million and $0.6 million, respectively. In conjunction with the finalization of its purchase accounting, the Company made $3.5 million of acquisition-related payments which primarily consisted of the release of holdback liabilities and payment of contingent consideration. The 2019 and 2018 acquisition-related liabilities primarily consist of holdback liabilities and contingent considerations. The weighted average useful lives of identifiable intangible assets acquired were 14 , 12 , and 13 years as of December 31, 2020, 2019 and 2018, respectively. Dispositions In the second quarter of 2020, the Company completed the sale of Holchem, a U.K. based supplier of hygiene and cleaning products and services for the food and beverage, foodservice and hospitality industries for total consideration of $106.6 million. Consideration consisted of $55.4 million of cash and the receipt of notes valued at $51.2 million from the acquirer. In the fourth quarter of 2020, all outstanding principal and interest on the notes was paid by the acquirer. After the recognition of transaction costs, the Company recognized an after-tax loss of $12.8 million, which was classified within special charges in the Consolidated Statement of Income. Annual sales of Holchem were approximately $55 million and were included in the Global Industrial reportable segment prior to disposition. As discussed in Note 5, the ChampionX separation met the criteria to be reported as discontinued operations. No other dispositions were significant to the Company’s consolidated financial statements for 2020, 2019 or 2018. Subsequent Event Activity Subsequent to year end, the Company separately acquired European Institutional and Healthcare businesses. The aggregate purchase consideration paid for these two acquisitions was approximately $100 million. The acquisitions are not material to the Company’s consolidated financial statements individually or in the aggregate. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS. | |
DISCONTINUED OPERATIONS | 5. Discontinued Operations On June 3, 2020, the Company effected the split-off of ChampionX through an offer to exchange (the “Exchange Offer”) all shares of ChampionX common stock owned by Ecolab for outstanding shares of Ecolab common stock. In the Exchange Offer, which was oversubscribed, the Company accepted approximately 5.0 million shares of Ecolab common stock in exchange for approximately 122.2 million shares of ChampionX common stock. In the Merger, each outstanding share of ChampionX common stock was converted into the right to receive one share of Apergy common stock, and ChampionX survived the Merger as a wholly owned subsidiary of ChampionX Corporation. In connection with and in accordance with the terms of the Transaction, prior to the consummation of the Exchange Offer and the Merger, ChampionX distributed $527.4 million in cash to Ecolab. The following is a summary of the assets and liabilities transferred to ChampionX as part of the separation: (millions) Assets: Cash and cash equivalent $60.6 Current assets 810.5 Non-current assets 3,222.3 4,093.4 Liabilities: Current liabilities 313.0 Non-current liabilities 293.7 606.7 Net assets distributed to ChampionX ($3,486.7) Fair value of shares exchanged 1,051.4 Cash received from ChampionX 527.4 Consideration received less net assets (1,907.9) ChampionX cumulative translation adjustment ("CTA") write-off (229.9) Loss on separation ($2,137.8) The Company accounted for this transaction as a sale and recognized a loss based on ChampionX net assets exceeding the effective proceeds. As the sale of this business represented a strategic shift in the operations of the Company that had a major effect on the Company’s operations and results, the discontinued operations criteria were met for the ChampionX business. The historical financial results of the ChampionX business are reflected in the Company’s consolidated financial statements as discontinued operations, for all periods presented, and assets and liabilities were retrospectively reclassified as assets and liabilities of discontinued operations. Summarized results of the Company’s discontinued operations are as follows: (millions) 2020 2019 2018 Product and equipment sales $858.9 $2,109.9 $2,225.0 Service and lease sales 99.6 234.4 221.1 Net sales 958.5 2,344.3 2,446.1 Product and equipment cost of sales 621.7 1,488.9 1,567.9 Service and lease cost of sales 80.4 188.7 182.7 Cost of sales (including special charges) 702.1 1,677.6 1,750.6 Selling, general and administrative expenses 180.5 406.7 462.8 Special (gains) and charges 2,221.7 91.4 14.0 Operating (loss) income (2,145.8) 168.6 218.7 Other (income) expense 0.3 0.7 - Interest expense (income), net 0.2 0.5 1.2 (Loss) income before income taxes (2,146.3) 167.4 217.5 Provision for income taxes 24.0 34.1 43.1 Net (loss) income including noncontrolling interest (2,170.3) 133.3 174.4 Net (loss) income attributable to noncontrolling interest 2.2 - (4.4) Net (loss) income from discontinued operations, net of tax ($2,172.5) $133.3 $178.8 Special (gains) and charges of $2,221.7 million, $91.4 million and $18.8 million in 2020, 2019 and 2018, respectively, primarily relate to the loss on sale, professional fees incurred to support the Transaction and restructuring charges specifically related to the ChampionX business. These charges have been included as a component of both cost of sales and special (gains) and charges in discontinued operations. Assets and liabilities of discontinued operations are summarized below: December 31 (millions) 2019 ASSETS Current assets Cash and cash equivalents $67.6 Accounts receivable, net 414.5 Inventories 424.0 Other current assets 44.7 Total current assets 950.8 Property, plant and equipment, net 726.6 Goodwill 1,682.6 Other intangible assets, net 745.0 Operating lease assets 110.8 Other assets 67.8 Total assets $4,283.6 LIABILITIES AND EQUITY Current liabilities Short-term debt $0.1 Accounts payable 209.0 Compensation and benefits 33.8 Income taxes 5.9 Other current liabilities 112.7 Total current liabilities 361.5 Long-term debt 0.4 Postretirement health care and pension benefits 3.6 Deferred income taxes 203.1 Operating lease liabilities 79.2 Other liabilities 15.8 Total liabilities $663.6 As of December 31, 2020, there were no assets or liabilities classified as discontinued operations. In connection with the Transaction, the Company entered into agreements with ChampionX and Apergy to effect the separation and to provide a framework for the relationship following the separation, which included a Separation and Distribution Agreement, an Intellectual Property Matters Agreement, an Employee Matters Agreement, a Transition Services Agreement, and a Tax Matters Agreement. Transition services primarily involve the Company providing certain services to ChampionX related to general and administrative services for terms of up to 18 months following the separation. The amounts billed for transition services provided under the above agreements were $14.3 million during 2020. The Company also entered into a Master Cross Supply and Product Transfer agreement with ChampionX to provide, receive or transfer certain products for a period up to 36 months . Sales of product to ChampionX under this agreement are recorded in product and equipment sales in the Corporate segment along with the related cost of sales, while purchases from ChampionX are recorded in inventory. Sales of product to ChampionX post-separation for 2020 were $99.7 million. |
BALANCE SHEET INFORMATION
BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
BALANCE SHEET INFORMATION | |
BALANCE SHEET INFORMATION | 6. BALANCE SHEET INFORMATION December 31 December 31 (millions) 2020 2019 Accounts receivable, net Accounts receivable $2,358.1 $2,437.5 Allowance for doubtful accounts (84.3) (55.5) Total $2,273.8 $2,382.0 Inventories Finished goods $789.6 $668.5 Raw materials and parts 511.2 437.9 Inventories at FIFO cost 1,300.8 1,106.4 FIFO cost to LIFO cost difference (15.6) (24.8) Total $1,285.2 $1,081.6 Other current assets Prepaid assets $99.1 $101.8 Taxes receivable 168.6 107.0 Derivative assets 3.2 53.3 Other 27.3 33.1 Total $298.2 $295.2 Property, plant and equipment, net Land $159.7 $158.9 Buildings and leasehold improvements 1,060.0 965.5 Machinery and equipment 1,830.1 1,701.7 Merchandising and customer equipment 2,691.0 2,742.9 Capitalized software 820.8 750.4 Construction in progress 219.8 348.1 6,781.4 6,667.5 Accumulated depreciation (3,656.5) (3,439.2) Total $3,124.9 $3,228.3 Other intangible assets, net Intangible assets not subject to amortization Trade names $1,230.0 $1,230.0 Intangible assets subject to amortization Customer relationships 2,530.9 2,378.9 Trademarks 348.0 285.2 Patents 492.5 459.0 Other technology 240.1 214.5 3,611.5 3,337.6 Accumulated amortization Customer relationships (1,319.1) (1,147.6) Trademarks (155.0) (135.1) Patents (244.6) (221.7) Other technology (145.8) (135.7) (1,864.5) (1,640.1) Net intangible assets subject to amortization 1,747.0 1,697.5 Total $2,977.0 $2,927.5 Other assets Deferred income taxes $163.2 $136.2 Pension 33.0 31.1 Derivative asset - 25.4 Other 279.8 323.6 Total $476.0 $516.3 December 31 December 31 (millions) 2020 2019 Other current liabilities Discounts and rebates $304.1 $331.4 Dividends payable 137.2 135.6 Interest payable 51.7 40.9 Taxes payable, other than income 151.8 102.9 Derivative liabilities 25.8 5.2 Restructuring 98.1 98.5 Contract liability 80.4 76.7 Operating lease liabilities 125.6 122.1 Other 214.2 197.4 Total $1,188.9 $1,110.7 Accumulated other comprehensive loss Unrealized gain (loss) on derivative financial instruments, net of tax ($21.1) ($4.1) Unrecognized pension and postretirement benefit expense, net of tax (935.2) (823.8) Cumulative translation, net of tax (1,038.1) (1,261.8) Total ($1,994.4) ($2,089.7) |
DEBT AND INTEREST
DEBT AND INTEREST | 12 Months Ended |
Dec. 31, 2020 | |
DEBT AND INTEREST | |
DEBT AND INTEREST | 7. DEBT AND INTEREST Short-term Debt The following table provides the components of the Company’s short-term debt obligations, along with applicable interest rates as of December 31, 2020 and 2019: 2020 2019 Average Average Carrying Interest Carrying Interest (millions) Value Rate Value Rate Short-term debt Commercial paper $- - % $55.1 (0.30) % Notes payable 15.5 7.07 % 24.5 3.53 % Long-term debt, current maturities 1.8 300.9 Total $17.3 $380.5 Line of Credit As of December 31, 2020, the Company had in place a $2.0 billion multi-currency revolving credit facility which expires in November 2022. The credit facility has been established with a diverse syndicate of banks and supports the Company’s U.S. and Euro commercial paper programs. There were no borrowings under the Company’s credit facility as of December 31, 2020 and 2019. As of December 31, 2020, the Company had a $500 million 364-day revolving credit agreement which expires in April 2021. The credit agreement has been established with a diverse syndicate of banks and is to be used for general corporate purposes. There were no borrowings under the Company’s 364-day credit facility as of December 31, 2020. Commercial Paper The Company’s commercial paper program is used as a potential source of liquidity and consists of a $2.0 billion U.S. commercial paper program and a $2.0 billion Euro commercial paper program. The maximum aggregate amount of commercial paper that may be issued by the Company under its commercial paper programs may not exceed $2.0 billion. As of December 31, 2019, the Company had $55.1 million (€50.0 million) of commercial paper outstanding under its Euro program. The Company had no outstanding commercial paper under its Euro or U.S. program as of December 31, 2020. As of December 31, 2020, the Company’s short-term borrowing program was rated A-2 by Standard & Poor’s, P-2 by Moody’s and F-1 by Fitch. Notes Payable The Company’s notes payable consists of uncommitted credit lines with major international banks and financial institutions, primarily to support global cash pooling structures. As of December 31, 2020 and 2019, the Company had $15.5 million and $24.5 million, respectively, outstanding under these credit lines. Approximately $1,734 million and $1,378 million of these credit lines were available for use as of December 31, 2020 and 2019, respectively. Long-term Debt The following table provides the components of the Company’s long-term debt obligations, along with applicable interest rates as of December 31, 2020 and 2019: 2020 2019 Stated Effective Stated Effective Maturity Carrying Interest Interest Carrying Interest Interest (millions) by Year Value Rate Rate Value Rate Rate Long-term debt Public notes (2020 principal amount) Five year 2015 senior notes ( $300 million) 2020 - - % - % 300.0 2.25 % 2.79 % Ten year 2011 senior notes ( $1.02 billion) 2021 - - % - % 1,018.3 4.35 % 4.43 % Five year 2017 senior notes ( $500 million) 2022 498.6 2.38 % 2.55 % 497.8 2.38 % 2.55 % Seven year 2016 senior notes ( $400 million) 2023 399.0 3.25 % 3.49 % 398.5 3.25 % 3.49 % Seven year 2016 senior notes ( €575 million) 2024 682.0 1.00 % 1.18 % 628.4 1.00 % 1.10 % Ten year 2015 senior notes ( €575 million) 2025 682.9 2.63 % 2.85 % 630.0 2.63 % 2.96 % Ten year 2016 senior notes ( $750 million) 2026 745.3 2.70 % 2.93 % 744.5 2.70 % 2.93 % Ten year 2017 senior notes ( $500 million) 2027 496.0 3.25 % 3.37 % 495.4 3.25 % 3.37 % Ten year 2020 senior notes ( $750 million) 2030 765.2 4.80 % 4.64 % - - % - % Ten year 2020 senior notes ( $600 million) 2031 594.4 1.30 % 1.34 % - - % - % Thirty year 2011 senior notes ( $458 million) 2041 452.2 5.50 % 5.56 % 451.9 5.50 % 5.56 % Thirty year 2016 senior notes ( $250 million) 2046 246.4 3.70 % 3.76 % 246.2 3.70 % 3.76 % Thirty year 2017 senior notes ( $700 million) 2047 611.9 3.95 % 4.16 % 610.4 3.95 % 4.15 % Thirty year 2020 senior notes ( $500 million) 2050 490.1 2.13 % 2.15 % - - % - % Private note (2020 principal amount) Series B private placement senior notes ($250 million) 2023 - - % - % 249.6 4.32 % 4.36 % Finance lease obligations and other 7.1 3.0 Total debt 6,671.1 6,274.0 Long-term debt, current maturities (1.8) (300.9) Total long-term debt $6,669.3 $5,973.1 Public Notes The Company’s public notes may be redeemed by the Company at its option at redemption prices that include accrued and unpaid interest and a make-whole premium. Upon the occurrence of a change of control accompanied by a downgrade of the notes below investment grade rating, within a specified time period, the Company would be required to offer to repurchase the public notes at a price equal to 101% of the aggregate principal amount thereof, plus any accrued and unpaid interest to the date of repurchase. The public notes are senior unsecured and unsubordinated obligations of the Company and rank equally with all other senior and unsubordinated indebtedness of the Company. Private Note In September 2020, the Company redeemed the private note at redemption prices that included accrued and unpaid interest and a make-whole premium. Covenants and Future Maturities The Company is in compliance with all covenants under the Company’s outstanding indebtedness at December 31, 2020. As of December 31, 2020, the aggregate annual maturities of long-term debt for the next five years were: (millions) 2021 $ 2 2022 502 2023 400 2024 683 2025 683 Net Interest Expense Interest expense and interest income incurred during 2020, 2019 and 2018 were as follows: (millions) 2020 2019 2018 Interest expense $304.8 $214.4 $235.5 Interest income (14.6) (23.7) (14.4) Interest expense, net $290.2 $190.7 $221.1 Interest expense generally includes the expense associated with the interest on the Company’s outstanding borrowings. Interest expense also includes the amortization of debt issuance costs and debt discounts, which are both recognized over the term of the related debt. During 2020, the Company retired certain long-term debt, and incurred debt refinancing charges of $83.1 million ($64.0 million after tax), which are included as a component of interest expense, net on the Consolidated Statement of Income. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, contingent consideration obligations, commercial paper, notes payable, foreign currency forward contracts, interest rate swap agreements and long-term debt. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels: Level 1 Level 2 Level 3 The carrying amount and the estimated fair value for assets and liabilities measured on a recurring basis were: December 31, 2020 (millions) Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Assets Foreign currency forward contracts $15.5 $- $15.5 $- Liabilities Foreign currency forward contracts 69.9 - 69.9 - December 31, 2019 (millions) Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Assets Foreign currency forward contracts $83.9 $- $83.9 $- Liabilities Foreign currency forward contracts 10.0 - 10.0 - The carrying value of foreign currency forward contracts is at fair value, which is determined based on foreign currency exchange rates as of the balance sheet date and classified within level 2. The carrying value of interest rate swap contracts is at fair value, which is determined based on current interest rates and forward interest rates as of the balance sheet date and is classified within level 2. For purposes of fair value disclosure above, derivative values are presented gross. See further discussion of gross versus net presentation of the Company's derivatives within Note 9. Contingent consideration liabilities are recognized and measured at fair value at the acquisition date and thereafter until paid or settled. Contingent consideration is classified within level 3 as the underlying fair value is determined using income-based valuation approaches appropriate for the terms and conditions of each respective earn-out. The consideration expected to be transferred is based on the Company’s expectations of various financial measures. The ultimate payment of contingent consideration could deviate from current estimates based on the actual results of these financial measures. Contingent consideration activities during 2020, 2019 and 2018 were not significant to the Company’s consolidated financial statements. The carrying values of accounts receivable, accounts payable, cash and cash equivalents, restricted cash, commercial paper and notes payable approximate fair value because of their short maturities, and as such are classified within level 1. The fair value of long-term debt is based on quoted market prices for the same or similar debt instruments (classified as level 2). The carrying amount and the estimated fair value of long-term debt, including current maturities, held by the Company were: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Long-term debt, including current maturities $6,671.2 $7,704.4 $6,274.0 $6,861.6 |
DERIVATIVES AND HEDGING TRANSAC
DERIVATIVES AND HEDGING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES AND HEDGING TRANSACTIONS | |
DERIVATIVES AND HEDGING TRANSACTIONS | 9. DERIVATIVES AND HEDGING TRANSACTIONS The Company uses foreign currency forward contracts, interest rate swap agreements and foreign currency debt to manage risks associated with foreign currency exchange rates, interest rates and net investments in foreign operations. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. The Company records derivatives as assets and liabilities on the balance sheet at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. Cash flows from derivatives are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swap agreements. The Company monitors its exposure to credit risk by using credit approvals and credit limits and by selecting major global banks and financial institutions as counterparties. The Company does not anticipate nonperformance by any of these counterparties, and therefore, recording a valuation allowance against the Company’s derivative balance is not considered necessary. Derivative Positions Summary Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to net settle contracts with the same counterparties. These arrangements generally do not call for collateral and as of the applicable dates presented below, no cash collateral had been received or pledged related to the underlying derivatives. The respective net amounts are included in other current assets, other assets, other current liabilities and other liabilities on the Consolidated Balance Sheet. The following table summarizes the gross fair value and the net value of the Company’s outstanding derivatives. (millions) Derivative Assets Derivative Liabilities December 31 December 31 December 31 December 31 (millions) 2020 2019 2020 2019 Derivatives designated as hedging instruments Foreign currency forward contracts $8.1 $67.4 $54.3 $2.1 Derivatives not designated as hedging instruments Foreign currency forward contracts (a) 7.4 16.5 15.6 7.9 Gross value of derivatives 15.5 83.9 69.9 10.0 Gross amounts offset in the Consolidated Balance Sheet (12.3) (4.2) (12.3) (4.2) Net value of derivatives $3.2 $79.7 $57.6 $5.8 (a) Foreign currency forward contract derivatives not designated as hedging instruments includes discontinued operations of $1.0 of derivative assets and $0.6 of derivative liabilities as of December 31, 2019. The following table summarizes the notional values of the Company’s outstanding derivatives. Notional Values December 31 December 31 (millions) 2020 2019 Foreign currency forward contracts (a) $ 3,702 $ 4,004 (a) Foreign currency forward contract notional values include discontinued operations of approximately $9 million as of December 31, 2019. Cash Flow Hedges The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on forecasted foreign currency transactions, including inventory purchases and intercompany royalty, intercompany loans, management fee and other payments. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts are recorded in accumulated other comprehensive income (“AOCI”) until the hedged items affect earnings, at which time the gain or loss is reclassified into the same line item in the Consolidated Statement of Income as the underlying exposure being hedged. Cash flow hedged transactions impacting AOCI are forecasted to occur within the next three years . For forward contracts designated as hedges of foreign currency exchange rate risk associated with forecasted foreign currency transactions, the Company excludes the changes in fair value attributable to time value from the assessment of hedge effectiveness. The initial value of the excluded component (i.e., the forward points) is amortized on a straight-line basis over the life of the hedging instrument and recognized in the same line item in the Consolidated Statement of Income as the underlying exposure being hedged for intercompany loans. For all other cash flow hedge types, the forward points are mark-to-market monthly and recognized in the same line item in the Consolidated Statement of Income as the underlying exposure being hedged. The difference between fair value changes of the excluded component and the amount amortized in the Consolidated Statement of Income is recorded in AOCI. Fair Value Hedges The Company manages interest expense using a mix of fixed and floating rate debt. To help manage exposure to interest rate movements and to reduce borrowing costs, the Company may enter into interest rate swaps under which the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed upon notional principal amount. The mark-to-market of these fair value hedges is recorded as gains or losses in interest expense and is offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense. These fair value hedges are highly effective and thus, there is no impact on earnings due to hedge ineffectiveness. Net Investment Hedges The Company designates its outstanding $1,365 million (€1,150 million as of year end 2020) senior notes (“euronotes”) and related accrued interest as a hedge of existing foreign currency exposures related to investments the Company has in certain euro denominated functional currency subsidiaries. Certain Euro commercial paper was also designated as a hedge of existing foreign currency exposures and matured in the third quarter of 2020 and fourth quarter of 2019. The revaluation gains and losses on the euronotes and Euro commercial paper, which are designated and effective as hedges of the Company’s net investments, have been included as a component of the cumulative translation adjustment account, and were as follows: (millions) 2020 2019 2018 Revaluation (losses) gains, net of tax ($87.7) $31.4 $57.5 Derivatives Not Designated as Hedging Instruments The Company also uses foreign currency forward contracts to offset its exposure to the change in value of certain foreign currency denominated assets and liabilities held at foreign subsidiaries, primarily receivables and payables, which are remeasured at the end of each period. Although the contracts are effective economic hedges, they are not designated as accounting hedges. Therefore, changes in the value of these derivatives are recognized immediately in earnings, thereby offsetting the current earnings effect of the related foreign currency denominated assets and liabilities. Effect of all Derivative Instruments on Income The gain (loss) of all derivative instruments recognized in product and equipment cost of sales (“COS”), selling, general and administrative expenses (“SG&A”) and interest expense, net (“interest”) is summarized below: 2020 2019 2018 (millions) COS SG&A Interest COS SG&A Interest COS SG&A Interest Gain (loss) on derivatives in cash flow hedging relationship: Foreign currency forward contracts Amount of gain (loss) reclassified from AOCI to income $10.1 ($108.3) $- $15.4 $39.5 $- ($7.7) $84.1 $- Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value - - 27.5 - - 28.7 - - 37.4 Interest rate swap agreements Amount of gain (loss) reclassified from AOCI to income - - (2.4) - - (0.9) - - (5.5) Gain (loss) on derivatives in fair value hedging relationship: Interest rate swaps Hedged items - - - - - 0.2 - - (4.0) Derivatives designated as hedging instruments - - - - - (0.2) - - 4.0 Gain (loss) on derivatives not designated as hedging instruments: Foreign currency forward contracts Amount of gain (loss) recognized in income (a) - (12.3) - - 30.0 (0.1) - 25.1 5.3 Total gain (loss) of all derivative instruments $10.1 ($120.6) $25.1 $15.4 $69.5 $27.7 ($7.7) $109.2 $37.2 (a) Gain (loss) on derivatives not designated as hedging instruments recognized in income recorded in SG&A includes discontinued operations of $(2.5) , $(5.1) and $(8.7) for the years ended December 31, 2020, 2019 and 2018, respectively. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION | |
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION | 10. OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION Other comprehensive income (loss) includes net income, foreign currency translation adjustments, unrecognized gains and losses on securities, defined benefit pension and postretirement plan adjustments, gains and losses on derivative instruments designated and effective as cash flow hedges and non-derivative instruments designated and effective as foreign currency net investment hedges that are charged or credited to the accumulated other comprehensive loss account in shareholders’ equity. The following table provides other comprehensive income (loss) information related to the Company’s derivatives and hedging instruments and pension and postretirement benefits. See Note 9 for additional information related to the Company’s derivatives and hedging transactions. See Note 17 for additional information related to the Company’s pension and postretirement benefits activity. (millions) 2020 2019 2018 Derivative and Hedging Instruments Unrealized (losses) gains on derivative & hedging instruments Amount recognized in AOCI ($93.3) $78.1 $144.4 (Gains) losses reclassified from AOCI into income COS (10.1) (15.4) 7.7 SG&A 108.3 (39.5) (84.1) Interest (income) expense, net (25.1) (27.8) (31.9) 73.1 (82.7) (108.3) Other activity (0.3) 0.8 - Tax impact 3.5 0.4 (7.7) Net of tax ($17.0) ($3.4) $28.4 Pension and Postretirement Benefits Amount recognized in AOCI Current period net actuarial loss and prior service costs ($189.9) ($326.3) ($56.5) Amount reclassified from AOCI into income Amortization of net actuarial loss and prior service costs and benefits 68.1 0.4 28.4 Pension and postretirement benefits changes - - 59.3 (121.8) (325.9) 31.2 Tax impact 43.7 74.3 (13.2) Net of tax ($78.1) ($251.6) $18.0 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 11. SHAREHOLDERS’ EQUITY Authorized common stock, par value $1.00 per share, was 800 million shares at December 31, 2020, 2019 and 2018. Treasury stock is stated at cost. Dividends declared per share of common stock were $1.89 for 2020, $1.85 for 2019 and $1.69 for 2018. The Company has 15 million shares, without par value, of authorized but unissued and undesignated preferred stock. Share Repurchase Authorization In February 2015, the Company’s Board of Directors authorized the repurchase of up to 20 million additional shares of its common stock, including shares to be repurchased under Rule 10b5-1. As of December 31, 2020, 6,239,946 shares remained to be repurchased under the Company’s repurchase authorization. The Company intends to repurchase all shares under its authorization, for which no expiration date has been established, in open market or privately negotiated transactions, subject to market conditions. Share Repurchases During 2020 and 2019, the Company reacquired 761,245 and 1,986,241 shares, respectively, of its common stock, of which 565,064 and 1,846,384, respectively, related to share repurchases through open market or private purchases, and 196,181 and 139,857, respectively, related to shares withheld for taxes on exercise of stock options and vesting of stock awards and units. Separation of ChampionX On June 3, 2020, the Company effected the split-off of ChampionX through the Exchange Offer and all shares of ChampionX common stock owned by Ecolab were exchanged for outstanding shares of Ecolab common stock. In the Exchange Offer, which was oversubscribed, the Company accepted 4,955,552 shares of Ecolab common stock in exchange for approximately 122.2 million shares of ChampionX common stock. |
EQUITY COMPENSATION PLANS
EQUITY COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY COMPENSATION PLANS | |
EQUITY COMPENSATION PLANS | 12. EQUITY COMPENSATION PLANS The Company’s equity compensation plans provide for grants of stock options, performance-based restricted stock units (“PBRSUs”) and non-performance-based restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). Common shares available for grant as of December 31, 2020, 2019 and 2018 were 8,644,262, 9,029,645 and 10,152,863, respectively. The Company generally issues authorized but previously unissued shares to satisfy stock option exercises and stock award vestings. The Company’s annual long-term incentive share-based compensation program is made up of 50% stock options and 50% PBRSUs. The Company also periodically grants RSUs. Total compensation expense related to all share-based compensation plans was $81 million ($68 million net of tax benefit), $84 million ( $70 million net of tax benefit) and $88 million ( $73 million net of tax benefit) for 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $120 million of total measured but unrecognized compensation expense related to non-vested share-based compensation arrangements granted under all of the Company’s plans. That cost is expected to be recognized over a weighted-average period of 2.1 years. Stock Options Stock options are granted to purchase shares of the Company’s stock at the average daily share price on the date of grant. These options generally expire within ten years from the grant date. The Company generally recognizes compensation expense for these awards on a straight-line basis over the three year vesting period. Stock option grants to retirement eligible recipients are attributed to expense using the non-substantive vesting method. A summary of stock option activity and average exercise prices is as follows: 2020 2019 2018 Number of Exercise Number of Exercise Number of Exercise Options Price (a) Options Price (a) Options Price (a) Outstanding, beginning of year 9,042,320 $ 121.72 10,516,633 $ 108.28 11,380,013 $ 95.76 Granted 931,750 220.95 879,862 184.31 1,202,314 158.23 Exercised (2,733,130) 97.52 (2,270,374) 82.93 (1,942,192) 64.63 Canceled (91,660) 166.67 (83,801) 143.08 (123,502) 127.02 Separation of ChampionX (346,865) 126.37 - - - - Outstanding, end of year 6,802,415 $ 144.20 9,042,320 $ 121.72 10,516,633 $ 108.28 Exercisable, end of year 5,051,927 $ 125.08 7,048,422 $ 109.34 7,993,297 $ 97.13 Vested and expected to vest, end of year 6,697,614 $ 143.25 (a) Represents weighted average price per share. The total aggregate intrinsic value of options (the amount by which the stock price exceeded the exercise price of the option on the date of exercise) that were exercised during 2020, 2019 and 2018 was $299 million, $227 million and $161 million, respectively. The total aggregate intrinsic value of options outstanding as of December 31, 2020 was $492 million, with a corresponding weighted-average remaining contractual life of 6.6 years. The total aggregate intrinsic value of options exercisable as of December 31, 2020 was $458 million, with a corresponding weighted-average remaining contractual life of 5.7 years. The total aggregate intrinsic value of options vested and expected to vest as of December 31, 2020 was $491 million, with a corresponding weighted-average remaining contractual life of 6.5 years. The lattice (binomial) option-pricing model is used to estimate the fair value of options at grant date. The Company’s primary employee option grant occurs during the fourth quarter. The weighted-average grant-date fair value of options granted and the significant assumptions used in determining the underlying fair value of each option grant, on the date of grant were as follows: 2020 2019 2018 Weighted-average grant-date fair value of options granted at market prices $ 44.16 $ 40.30 $ 37.34 Assumptions Risk-free rate of return 0.5 % 1.6 % 2.8 % Expected life 6 years 6 years 6 years Expected volatility 23.0 % 23.0 % 22.5 % Expected dividend yield 0.9 % 1.0 % 1.2 % The risk-free rate of return is determined based on a yield curve of U.S. treasury rates from one month to ten years and a period commensurate with the expected life of the options granted. Expected volatility is established based on historical volatility of the Company’s stock price. The expected dividend yield is determined based on the Company’s annual dividend amount as a percentage of the average stock price at the time of the grant. PBRSUs, RSUs and RSAs The expense associated with PBRSUs is based on the average of the high and low share price of the Company’s common stock on the date of grant, adjusted for the absence of future dividends. The awards vest based on the Company achieving a defined performance target and with continued service for a three year period. Upon vesting, the Company issues shares of its common stock such that one award unit equals one share of common stock. The Company assesses the probability of achieving the performance target and recognizes expense over the three year vesting period when it is probable the performance target will be met. PBRSU awards granted to retirement eligible recipients are attributed to expense using the non-substantive vesting method. The awards are generally subject to forfeiture in the event of termination of employment. The expense associated with shares of non-performance based RSUs and RSAs is based on the average of the high and low share price of the Company’s common stock on the date of grant, adjusted for the absence of future dividends and is amortized on a straight-line basis over the periods during which the restrictions lapse. The Company currently has RSUs that vest over periods between 12 and 60 months . The awards are generally subject to forfeiture in the event of termination of employment. A summary of non-vested PBRSUs and restricted stock activity is as follows: PBRSU Grant Date RSAs and Grant Date Awards Fair Value (a) RSUs Fair Value (a) December 31, 2017 1,362,836 $ 115.24 249,402 $ 116.66 Granted 284,104 152.59 109,074 138.69 Vested / Earned (324,561) 103.15 (92,032) 113.03 Canceled (55,026) 114.25 (19,975) 115.05 December 31, 2018 1,267,353 $ 126.75 246,469 $ 127.09 Granted 207,704 178.20 102,941 177.38 Vested / Earned (334,351) 114.38 (64,597) 119.08 Canceled (23,808) 135.70 (19,300) 124.77 December 31, 2019 1,116,898 $ 139.83 265,513 $ 149.46 Granted 202,187 215.23 62,693 203.09 Vested / Earned (333,676) 112.78 (81,150) 130.72 Canceled (26,285) 157.32 (15,996) 162.51 Separation of ChampionX (44,494) 142.10 (67,377) 161.82 December 31, 2020 914,630 $ 165.76 163,683 $ 172.92 (a) Represents weighted average price per share. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES Income before income taxes consisted of: (millions) 2020 2019 2018 United States (U.S.) $100.5 $787.1 $690.1 International 1,060.9 944.4 897.0 Total $1,161.4 $1,731.5 $1,587.1 The provision (benefit) for income taxes consisted of: (millions) 2020 2019 2018 U.S. federal and state ($43.9) $134.4 $105.1 International 259.8 176.3 93.5 Total current 215.9 310.7 198.6 U.S. federal and state 12.0 37.9 52.7 International (51.3) (60.0) 69.9 Total deferred (39.3) (22.1) 122.6 Provision for income taxes $176.6 $288.6 $321.2 The Company’s overall net deferred tax assets and deferred tax liabilities were comprised of the following: December 31 (millions) 2020 2019 Deferred tax assets Pension and post-retirement benefits $234.3 $207.4 Other accrued liabilities 154.7 127.5 Lease liability 95.5 104.8 Credit carryforwards 76.6 18.7 Loss carryforwards 63.4 48.0 Share-based compensation 44.8 55.0 Other, net 77.0 57.5 Valuation allowance (45.3) (24.5) Total deferred tax assets 701.0 594.4 Deferred tax liabilities Intangible assets (598.9) (569.9) Property, plant and equipment (317.8) (258.1) Lease asset (95.4) (105.2) Other, net (9.6) (62.3) Total deferred tax liabilities (1,021.7) (995.5) Net deferred tax liabilities balance ($320.7) ($401.1) As of December 31, 2020, the Company has tax effected federal, state and international net operating loss carryforwards of $0.1 million, $20.2 million and $43.1 million, respectively, which will be available to offset future taxable income. The federal and state loss carryforwards of $20.3 million expire from 2021 to 2041. The international loss carryforwards of $13.9 million expire from 2021 to 2041 and $29.2 million have no expiration. The tax loss carryforwards expiring in 2021 are not material. Additionally, the Company has $76.6 million of credit carryforwards that are primarily related to foreign tax credits and various state credits. The foreign tax credit carryforwards of $57.7 million expire from 2028 to 2030 and the state credit carryforwards of $19.1 million expire from 2021 to 2028. The Company has valuation allowances on certain deferred tax assets of $45.3 million and $24.5 million at December 31, 2020 and 2019, respectively. The increase in valuation allowance from year end 2019 to year end 2020 was primarily due to U.S. capital loss carryforwards and state tax attributes. In 2020, the Company obtained tax benefits from tax holidays in two foreign jurisdictions, the Dominican Republic and Singapore. The Company received a permit of operation, which expires in July 2021, from the National Council of Free Zones of Exportation for the Dominican Republic. Companies operating under the Free Zones are not subject to income tax in the Dominican Republic on export income. The Company has a tax incentive awarded by the Singapore Economic Development Board. This incentive provides for a preferential 10% tax rate on certain headquarter income which expires in January 2021. The tax reduction as the result of the tax holidays for 2020 was $26.9 million ($0.09 per diluted share), 2019 was $29.2 million ($0.10 per diluted share) and 2018 was $25.6 million ($0.09 per diluted share). The Company is in the process of extending or mitigating the impact of the expiring tax holidays. A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is as follows: 2020 2019 2018 Statutory U.S. rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.4 1.8 1.2 Foreign operations (1.3) 5.5 (15.5) R&D credit (1.1) (1.0) (1.0) Change in valuation allowance 0.6 (8.2) 10.3 Excess stock benefits (4.9) (2.4) (1.7) One-time transition tax - (0.2) 4.2 Prior year adjustments - - 2.9 Other, net 0.5 0.2 (1.2) Effective income tax rate 15.2 % 16.7 % 20.2 % The change in the Company’s effective income tax rate includes the tax impact of special (gains) and charges and discrete tax items, which have impacted the comparability of the Company’s historical effective income tax rates, as amounts included in special (gains) and charges are derived from tax jurisdictions with rates that vary from the statutory U.S. rate, and discrete tax items are not necessarily consistent across periods. The tax impact of special (gains) and charges and discrete tax items will likely continue to impact comparability of the Company’s effective income tax rate in the future. The Company’s 2020 effective tax rate of 15.2% includes $57.9 million of net tax benefits on special (gains) and charges, and net tax benefits of $55.8 million associated with discrete items. During 2020, the Company recorded a discrete tax benefit of $57.3 million related to share-based compensation excess tax benefits. The extent of excess tax benefits is subject to variation in stock price and award exercises. The Company recorded changes in reserves in non-U.S. and U.S. jurisdictions due to audit settlements and the expiration of statutes of limitations which resulted in a $9.8 million tax benefit. Additionally, the Company recognized a net tax expense of $11.3 million primarily related to the filing of prior year federal, state and foreign tax returns and other income tax adjustments. The Company’s 2019 effective tax rate of 16.7% includes $40.1 million of net tax benefits on special (gains) and charges, net tax benefits of $54.6 million associated with discrete tax items and $3.1 million of net benefit associated with updates to the one-time transition tax primarily due to the issuance of further technical guidance with respect to the Tax Act. During 2019, the Company recorded a discrete tax benefit of $42.3 million related to share-based compensation excess tax benefits. The Company recognized $15.6 million tax benefit related to changes in local tax law, which primarily includes $30.4 million benefit due to the passage of the Swiss Tax Reform and AHV Financing Act, a Swiss federal tax law, offset by a tax expense of $10.2 million due to the release of the final Treasury Regulation governing taxation of foreign dividends. The Company recorded changes in reserves in non-U.S. and U.S. jurisdictions due to audit settlements and statutes of limitations which resulted in a $13.8 million tax benefit. The Company finalized the 2015 and 2016 IRS audit in 2019, which resulted in a discrete tax expense of $11.0 million. The remaining discrete tax expense was primarily related to changes in estimates in non-U.S. jurisdictions. The Company’s 2018 effective tax rate of 20.2% includes $66.0 million of net tax expense associated updates to the one-time transition tax primarily due to the issuance of further technical guidance with respect to the Tax Act, $29.0 million of net tax benefits on special (gains) and charges, and net tax benefits of $64.0 million associated with discrete tax items. During 2018, the Company recorded a discrete tax benefit of $27.7 million related to share-based compensation excess tax benefits. In addition, the Company recorded net discrete benefit of $39.5 million related to adjustments from filing the 2017 U.S. federal income tax return and IRS approved method change. Included within the 2018 provision for income taxes is $38.0 million of discrete charges recorded in the fourth quarter to correct immaterial errors in prior years. The remaining discrete expense was primarily related to changes in reserves, audit settlements, international and U.S. changes in estimates, and accounting for internal entity reorganization. The Company continues to assert permanent reinvestment of the undistributed earnings of international affiliates unless the earnings can be remitted in a net income tax benefit or tax-neutral manner. If there are policy changes, the Company would record the applicable taxes in the period of change. Due to the complexity of the legal entity structure, the number of legal entities and jurisdictions involved, and the complexity of the laws and regulations, the Company believes it is not practicable to estimate the amount of additional taxes which may be payable upon distribution of these undistributed earnings. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes on permanently reinvested earnings. A reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits is as follows: (millions) 2020 2019 2018 Balance at beginning of year $27.0 $49.0 $60.6 Additions based on tax positions related to the current year 3.3 2.1 3.0 Additions for tax positions of prior years - 1.0 2.0 Reductions for tax positions of prior years (1.1) (18.4) (8.7) Reductions for tax positions due to statute of limitations (9.1) (5.7) (5.8) Settlements - (0.6) (0.8) Foreign currency translation 0.6 (0.4) (1.3) Balance at end of year $20.7 $27.0 $49.0 The total amount of unrecognized tax benefits, if recognized would affect the effective tax rate by $18.3 million as of December 31, 2020, $23.7 million as of December 31, 2019 and $35.6 million as of December 31, 2018. The Company files U.S. federal income tax returns and income tax returns in various U.S. state and non- U.S. jurisdictions. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2017. The IRS has completed examinations of the Company’s U.S. federal income tax returns through 2016, and the years 2017 and 2018 are currently under audit. In addition to the U.S. federal examination, there is ongoing audit activity in several U.S. state and foreign jurisdictions. The Company anticipates changes to uncertain tax positions due to closing of various audits and statutes closing on years mentioned above. The Company does not believe these changes will result in a material impact during the next twelve months. Decreases in the Company’s gross liability could result in offsets to other balance sheet accounts, cash payments, and adjustments to tax expense. The occurrence of these events and/or other events not included above within the next twelve months could change depending on a variety of factors. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. During 2020, 2019 and 2018 the Company released $2.0 million, $1.9 million and $1.2 million related to interest and penalties, respectively. The Company had $4.1 million, $6.1 million and $8.0 million of accrued interest, including minor amounts for penalties, at December 31, 2020, 2019, and 2018, respectively. |
RENTALS AND LEASES
RENTALS AND LEASES | 12 Months Ended |
Dec. 31, 2020 | |
RENTALS AND LEASES | |
RENTAL AND LEASES | 14. RENTALS AND LEASES Lessee The Company leases sales and administrative office facilities, distribution centers, research and manufacturing facilities, as well as vehicles and other equipment under operating leases. Certain of the Company’s lease arrangements are finance leases, which are immaterial individually and in the aggregate. The Company’s operating lease cost was as follows: (millions) 2020 2019 Operating lease cost* $183.8 $179.8 *Includes immaterial short-term and variable lease costs Future maturity of operating lease liabilities as of December 31, 2020 is as follows: (millions) 2021 142 2022 110 2023 73 2024 44 2024 29 Thereafter 76 Total lease payments 474 Less: imputed interest 49 Present value of lease liabilities $ 425 Total rental expense under the Company’s operating leases was $172 million in 2018. The Company’s operating leases term and discount rate were as follows: December 31 December 31 2020 2019 Weighted-average remaining lease terms (years) 5.52 5.83 Weighted-average discount rate 3.72% 4.00% The Company’s other lease information was as follows: December 31 December 31 (millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $164.2 $159.0 Leased assets obtained in exchange for new operating lease liabilities 60.4 116.5 Lessor The Company leases warewashing and water treatment equipment to customers under operating leases. Gross assets under operating leases recorded in Property, plant and equipment, net is $1,190.3 million and $1,091.7 million, and related accumulated depreciation is $646.1 million and $606.7 million, as of December 31, 2020 and 2019, respectively. The Company’s operating lease revenue was as follows: (millions) 2020 2019 Operating lease revenue* $356.3 $412.7 *Includes immaterial variable lease revenue Revenue from operating leases for existing contracts as of December 31, 2020 is as follows: (millions) 2021 331 2022 253 2023 191 2024 122 2024 49 Thereafter 14 Total lease revenue $ 960 The Company mitigates the risk of residual value subsequent to the lease term by redeploying assets. As such, the Company expects to receive revenue from the operating lease assets through the remaining useful life and therefore subsequent to the initial contract termination date. |
RESEARCH AND DEVELOPMENT EXPEND
RESEARCH AND DEVELOPMENT EXPENDITURES | 12 Months Ended |
Dec. 31, 2020 | |
RESEARCH AND DEVELOPMENT EXPENDITURES | |
RESEARCH AND DEVELOPMENT EXPENDITURES | 15. RESEARCH AND DEVELOPMENT EXPENDITURES Research expenditures that relate to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. Such costs were $185 million in 2020, $190 million in 2019 and $193 million in 2018. The Company did not participate in any material customer sponsored research during any of the years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and contingencies related to, among other things, workers’ compensation, general liability (including product liability), automobile claims, health care claims, environmental matters and lawsuits. The Company is also subject to various claims and contingencies related to income taxes, which are discussed in Note 13. The Company also has contractual obligations including to lease commitments, which are discussed in Note 14. The Company records liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. Insurance Globally, the Company has insurance policies with varying deductible levels for property and casualty losses. The Company is insured for losses in excess of these deductibles, subject to policy terms and conditions and has recorded both a liability and an offsetting receivable for amounts in excess of these deductibles. The Company is self-insured for health care claims for eligible participating employees, subject to certain deductibles and limitations. The Company determines its liabilities for claims on an actuarial basis. Litigation and Environmental Matters The Company and certain subsidiaries are party to various lawsuits, claims and environmental actions that have arisen in the ordinary course of business. These include from time to time antitrust, commercial, patent infringement, product liability and wage hour lawsuits, as well as possible obligations to investigate and mitigate the effects on the environment of the disposal or release of certain chemical substances at various sites, such as Superfund sites and other operating or closed facilities. The Company has established accruals for certain lawsuits, claims and environmental matters. The Company currently believes that there is not a reasonably possible risk of material loss in excess of the amounts accrued related to these legal matters. Because litigation is inherently uncertain, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of recorded liabilities. A future adverse ruling, settlement or unfavorable development could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. The Company currently believes that such future charges related to suits and legal claims, if any, would not have a material adverse effect on the Company’s consolidated financial position. Environmental Matters The Company is currently participating in environmental assessments and remediation at approximately 30 locations, the majority of which are in the U.S., and environmental liabilities have been accrued reflecting management’s best estimate of future costs. Potential insurance reimbursements are not anticipated in the Company’s accruals for environmental liabilities. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 17. RETIREMENT PLANS Pension and Postretirement Health Care Benefits Plans The Company has a non-contributory, qualified, defined benefit pension plan covering the majority of its U.S. employees. The Company also has non-contributory, non-qualified, defined benefit plans, which provide for benefits to employees in excess of limits permitted under its U.S. pension plans. Various international subsidiaries have defined benefit pension plans. The Company provides postretirement health care benefits to certain U.S. employees and retirees. The non-qualified plans are not funded and the recorded benefit obligation for the non-qualified plans was $134 million and $127 million at December 31, 2020 and 2019, respectively. The measurement date used for determining the U.S. pension plan assets and obligations is December 31. International plans are funded based on local country requirements. The measurement date used for determining the international pension plan assets and obligations is November 30, the fiscal year end of the Company’s international subsidiaries. The U.S. postretirement health care plans are contributory based on years of service and choice of coverage (family or single), with retiree contributions adjusted annually. The measurement date used to determine the U.S. postretirement health care plan assets and obligations is December 31. Certain employees outside the U.S. are covered under government-sponsored programs, which are not required to be fully funded. The expense and obligation for providing international postretirement health care benefits are not significant. The following table sets forth financial information related to the Company’s pension and postretirement health care plans: U.S. International U.S. Postretirement Pension (a) Pension Health Care (millions) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $2,728.4 $2,535.9 $1,759.8 $1,585.5 $172.4 $165.7 Projected benefit obligation Projected benefit obligation, beginning of year $2,562.5 $2,241.0 $1,667.6 $1,436.7 $165.7 $147.3 Service cost 68.4 72.8 30.8 30.2 1.2 1.4 Interest cost 70.3 89.0 22.3 31.2 4.4 5.6 Participant contributions - - 2.6 3.0 3.8 3.4 Curtailments and settlements (0.6) 3.4 (34.3) (18.6) - 0.6 Plan amendments - - (1.7) 0.1 - - Actuarial (gain) loss 241.8 336.4 83.6 235.8 12.2 22.2 Other events - - 0.3 0.6 - - Benefits paid (214.0) (180.1) (39.6) (37.6) (14.9) (14.8) Foreign currency translation - - 102.6 (13.8) - - Projected benefit obligation, end of year (b) $2,728.4 $2,562.5 $1,834.2 $1,667.6 $172.4 $165.7 Plan assets Fair value of plan assets, beginning of year $2,292.9 $1,981.4 $1,027.1 $925.6 $6.1 $6.0 Actual returns on plan assets 281.3 366.9 87.7 110.5 0.8 1.1 Company contributions 13.3 129.0 41.3 43.3 13.7 13.8 Participant contributions - - 2.6 3.0 - - Curtailments and settlements (0.6) (4.3) (25.7) (17.6) - - Benefits paid (214.0) (180.1) (39.6) (37.6) (14.9) (14.8) Foreign currency translation - - 54.6 (0.1) - - Fair value of plan assets, end of year (c) $2,372.9 $2,292.9 $1,148.0 $1,027.1 $5.7 $6.1 Funded Status, end of year ($355.5) ($269.6) ($686.2) ($640.5) ($166.7) ($159.6) Amounts recognized in the Consolidated Balance Sheet: Other assets $- $- $37.0 $31.1 $- $- Other current liabilities (14.7) (12.5) (24.0) (23.6) (5.5) (5.2) Postretirement healthcare and pension benefits (340.8) (257.1) (699.2) (647.8) (161.2) (154.4) Net liability ($355.5) ($269.6) ($686.2) ($640.3) ($166.7) ($159.6) Amounts recognized in accumulated other comprehensive loss (income): Unrecognized net actuarial loss (gain) $691.3 $632.4 $595.6 $527.7 $1.3 ($10.5) Unrecognized net prior service costs (benefits) (32.7) (40.0) (1.2) 0.6 - (11.0) Tax (benefit) expense (165.1) (149.1) (151.9) (129.6) (2.0) 3.4 Accumulated other comprehensive loss (income), net of tax (d) $493.5 $443.3 $442.5 $398.7 ($0.7) ($18.1) Change in accumulated other comprehensive loss (income): Amortization of net actuarial (gain) loss ($51.8) ($23.5) ($29.5) ($17.3) ($0.1) $4.1 Amortization of prior service costs 7.4 11.5 (0.2) 1.1 11.0 23.2 Current period net actuarial loss (gain) 113.3 119.0 66.4 185.8 11.9 21.4 Current period prior service costs - - (1.7) 0.1 - - Curtailments and settlements (2.7) (1.5) (2.2) 1.8 - 0.2 Tax (benefit) expense (16.0) (25.7) (22.3) (36.9) (5.4) (11.7) Foreign currency translation - - 33.3 (5.2) - - Other comprehensive loss (income) $50.2 $79.8 $43.8 $129.4 $17.4 $37.2 (a) Includes qualified and non-qualified plans (b) Projected benefit obligation includes discontinued operations of $5.3 as of December 31, 2019. (c) Fair value of the plan assets includes discontinued operations of $0.6 as of December 31, 2019. (d) Accumulated other comprehensive includes discontinued operations of $2.9 as of December 31, 2019. Estimate amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2021 are as follows: U.S. Post- U.S. International Retirement (millions) Pension (a) Pension Health Care Net actuarial loss $64.8 $28.5 $0.7 Net prior service benefits (6.9) (0.2) - Total $57.9 $28.3 $0.7 (a) Includes qualified and non-qualified plans. Service cost is included with employee compensation cost in cost of sales and selling, general and administrative expenses in the Consolidated Statement of Income while all non-service components are included in other (income) expense in the Consolidated Statement of Income. The aggregate projected benefit obligation, accumulated benefit obligation and fair value of pension plan assets for plans with accumulated benefit obligations in excess of plan assets were as follows: December 31, (millions) 2020 2019 Aggregate projected benefit obligation (a) $4,155.4 $3,970.3 Accumulated benefit obligation (b) 4,098.6 3,877.4 Fair value of plan assets (c) 3,085.2 3,040.5 (a) Projected benefit obligation includes discontinued operations of $5.3 as of December 31, 2019. (b) Accumulated benefit obligation includes discontinued operations of $1.1 as of December 31, 2019. (c) Fair value of plan assets includes discontinued operations of $0.6 as of December 31, 2019. These plans include the U.S. non-qualified pension plans which are not funded as well as the U.S. qualified pension plan. These plans also include various international pension plans which are funded consistent with local practices and requirements. For the year ended December 31, 2020 and 2019, the most significant driver of the increases in benefit obligations for the plans was the higher actuarial losses experienced by the majority of the Company’s plans. The pension plans incurred actuarial losses primarily due to decreases in bond yields that resulted in decreases to many of the plans’ discount rates. Net Periodic Benefit Costs and Plan Assumptions Pension and postretirement health care benefits expense for the Company’s operations are as follows: U.S. International U.S. Postretirement Pension (a) Pension Health Care (millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Service cost $68.4 $72.8 $74.5 $30.8 $30.2 $33.2 $1.2 $1.4 $2.7 Interest cost on benefit obligation 70.3 89.0 83.1 22.3 31.2 29.1 4.4 5.6 5.6 Expected return on plan assets (152.9) (149.5) (161.9) (63.9) (59.9) (63.2) (0.4) (0.4) (0.4) Recognition of net actuarial loss (gain) 51.9 23.6 39.0 26.1 16.3 17.2 0.1 (4.1) (1.9) Amortization of prior service benefit (7.4) (11.5) (6.8) (0.1) (0.9) (0.9) (11.0) (23.2) (19.7) Curtailments and settlements 2.5 9.1 - 2.2 (1.9) 2.3 - 0.3 - Total expense (benefit) (b) $32.8 $33.5 $27.9 $17.4 $15.0 $17.7 ($5.7) ($20.4) ($13.7) (a) Includes qualified and non-qualified plans. (b) Service cost includes discontinued operations of $2.5 , $7.8 , and $7.1 for the years ended December 31, 2020, 2019, and 2018, respectively. Plan Assumptions U.S. International U.S. Postretirement Pension (a) Pension Health Care (percent) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Weighted-average actuarial assumptions used to determine benefit obligations as of year end: Discount rate 2.48 % 3.20 % 4.34 % 1.13 % 1.52 % 2.49 % 2.37 % 3.16 % 4.29 % Projected salary increase 4.03 4.03 4.03 2.12 2.50 2.46 Weighted-average actuarial assumptions used to determine net cost: Interest credit rate for cash balance plans 1.81 N/A N/A N/A N/A N/A N/A N/A N/A Discount rate 3.20 4.34 3.70 1.84 2.66 2.29 3.16 4.29 3.66 Expected return on plan assets 7.25 7.25 7.75 6.24 6.66 6.67 7.25 7.25 7.75 Projected salary increase 4.03 4.03 4.03 2.81 2.70 2.67 (a) Includes qualified and non-qualified plans. The discount rate assumptions for the U.S. plans are developed using a bond yield curve constructed from a population of high-quality, non-callable, corporate bond issues with maturities ranging from six months to thirty years . A discount rate is estimated for the U.S. plans and is based on the durations of the underlying plans. The Company measures service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. The Company believes this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. The expected long-term rate of return used for the U.S. plans is based on the pension plan’s asset mix. The Company considers expected long-term real returns on asset categories, expectations for inflation, and estimates of the impact of active management of the assets in determining the final rate to use. The Company also considers historical returns. The expected long-term rate of return used for the Company’s international plans is determined in each local jurisdiction and is based on the assets held in that jurisdiction, the expected rate of returns for the type of assets held and any guaranteed rate of return provided by the investment. The other assumptions used to measure the international pension obligations, including discount rate, vary by country based on specific local requirements and information. The Company uses most recently available mortality tables as of the respective U.S. and international measurement dates. For postretirement benefit measurement purposes as of December 31, 2020, the annual rates of increase in the per capita cost of covered health care were assumed to be 8.00% for pre-65 costs and 10.75% for post-65 costs. The rates are assumed to decrease each year until they reach 5% in 2028 and remain at those levels thereafter. Health care costs for certain employees which are eligible for subsidy by the Company are limited by a cap on the subsidy. During the second quarter of 2018, an amendment to eligibility requirements of the U.S. retiree death benefit plan was approved and communicated to all eligible participants. As a result of the approval and communication to the beneficiaries, the plan was remeasured, resulting in an $18.9 million ($14.4 million after tax), reduction of postretirement benefit obligations, with a corresponding impact to accumulated other comprehensive income. The re-measurement was completed using a discount rate of 4.36%. As a result of this action, the Company’s U.S. postretirement healthcare costs decreased by $4.5 million in 2018. During the fourth quarter of 2018, the qualified U.S. pension plan was amended to allow unlimited lump sums for participants with the Final Average Pay benefit formula, effective with payments starting on or after June 1, 2019. This amendment allows participants to receive a lump sum benefit based on the present value of the accrued benefit at normal retirement age based on Internal Revenue Code Section 417(e) interest and mortality rates. As a result of this action, the U.S pension plan benefit obligation was reduced by $40.4 million with a corresponding impact to accumulated other comprehensive income. Plan Asset Management The Company’s U.S. investment strategy and policies are designed to maximize the possibility of having sufficient funds to meet the long-term liabilities of the qualified pension plan, while achieving a balance between the goals of asset growth of the qualified pension plan and keeping risk at a reasonable level. Current income is not a key goal of the policy. The asset allocation position reflects the Company’s ability and willingness to accept relatively more short-term variability in the performance of the qualified pension plan asset portfolio in exchange for the expectation of better long-term returns, lower pension costs and better funded status in the long run. The qualified pension plan’s asset are diversified across a number of asset classes and securities. Selected individual portfolios within the asset classes may be undiversified while maintaining the diversified nature of total plan assets. The Company has no significant concentration of risk in its U.S. qualified pension plan assets. Assets of funded retirement plans outside the U.S. are managed in each local jurisdiction and asset allocation strategy is set in accordance with local rules, regulations and practice. Therefore, no overall target asset allocation is presented. Although non-U.S. equity securities are all considered international for the Company, some equity securities are considered domestic for the local plan. The funds are invested in a variety of equities, bonds and real estate investments and, in some cases, the assets are managed by insurance companies which may offer a guaranteed rate of return. The Company has no significant concentration of risk in the assets of its international pension plans. The fair value hierarchy is used to categorize investments measured at fair value in one of three levels in the fair value hierarchy. This categorization is based on the observability of the inputs used in valuing the investments. See Note 8 for definitions of these levels. The fair value of the Company’s U.S. qualified pension plan assets are as follows: Fair Value as of Fair Value as of (millions) December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash $38.3 $- $38.3 $13.2 $- $13.2 Equity securities: Large cap equity 610.0 - 610.0 785.9 - 785.9 Small cap equity 36.5 68.3 104.8 201.7 - 201.7 International equity 95.8 42.9 138.7 350.4 - 350.4 Fixed income: Core fixed income 360.3 327.8 688.1 410.0 - 410.0 High-yield bonds 76.3 - 76.3 107.9 - 107.9 Emerging markets - 55.6 55.6 41.7 - 41.7 Insurance company accounts - - - - 0.3 0.3 Total investments at fair value 1,217.2 494.6 1,711.8 1,910.8 0.3 1,911.1 Investments measured at NAV 666.9 387.9 Total $1,217.2 $494.6 $2,378.7 $1,910.8 $0.3 $2,299.0 The Company had no level 3 assets as part of its U.S. qualified pension plan assets as of December 31, 2020 or 2019. The allocation of the Company’s U.S. qualified pension plan assets plans are as follows: Target Asset Asset Category Allocation Percentage Percentage of Plan Assets December 31 2020 2019 2020 2019 Cash - % - % 2 % 1 % Equity securities: Large cap equity 27 34 26 34 Small cap equity 4 9 4 8 International equity 16 15 15 15 Fixed income: Core fixed income 30 18 29 18 High-yield bonds 4 5 3 5 Emerging markets 2 2 2 2 Other: Real estate 6 6 7 7 Private equity 8 8 9 7 Distressed debt 3 3 3 3 Total 100 % 100 % 100 % 100 % The fair value of the Company’s international plan assets for its defined benefit pension plans are as follows: Fair Value as of Fair Value as of (millions) December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash $11.0 $- $11.0 $7.7 $- $7.7 Equity securities: International equity - 467.0 467.0 - 418.1 418.1 Fixed income: Corporate bonds 9.1 218.6 227.7 8.2 207.6 215.8 Government bonds 6.8 241.9 248.7 12.6 215.8 228.4 Insurance company accounts - 149.6 149.6 - 144.2 144.2 Total investments at fair value 26.9 1,077.1 1,104.0 28.5 985.7 1,014.2 Investments measured at NAV 44.0 12.9 Total $26.9 $1,077.1 $1,148.0 $28.5 $985.7 $1,027.1 The Company had no level 3 assets as part of its international plan assets as of December 31, 2020 or 2019. The allocation of plan assets of the Company’s international plan assets for its defined benefit pension plans are as follows: Percentage Asset Category of Plan Assets December 31 2020 2019 Cash 1 % 1 % Equity securities: International equity 40 41 Fixed income: Corporate bonds 20 21 Government bonds 22 22 Total fixed income 42 43 Other: Insurance contracts 14 14 Debt securities 2 - Real estate 1 1 Total 100 % 100 % Cash Flows As of year end 2020, the Company’s estimate of benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter for the Company’s pension and postretirement health care benefit plans are as follows: (millions) All Plans 2021 $ 232 2022 262 2023 247 2024 253 2025 261 2026 - 2030 1,254 Depending on plan funding levels, the U.S. qualified pension plan provides certain terminating participants with an option to receive their pension benefits in the form of lump sum payments. The Company is currently in compliance with all funding requirements of its U.S. pension and postretirement health care plans. The Company is required to fund certain international pension benefit plans in accordance with local legal requirements. There were no voluntary contributions made to its non-contributory qualified U.S. pension plan. In September of 2019, the Company made a voluntary contribution of $120 million to its non-contributory qualified U.S. pension plan. The Company estimates contributions to be made to its international plans will approximate $47 million in 2021. The Company seeks to maintain an asset balance that meets the long-term funding requirements identified by the projections of the pension plan’s actuaries while simultaneously satisfying the fiduciary responsibilities prescribed in ERISA. The Company also takes into consideration the tax deductibility of contributions to the benefit plans. Savings Plan and ESOP The Company provides a 401(k) savings plan for the majority of its U.S. employees under the Company’s two main 401(k) savings plans, the Ecolab Savings Plan and ESOP for Traditional Benefit Employees (the “Traditional Plan”) and the Ecolab Savings Plan and ESOP (the “Ecolab Plan”). Employees under the Traditional Plan are limited to active employees accruing a final average pay or 5% cash balance benefits in the Ecolab Pension Plan. Employee before-tax contributions made under the Traditional Plan of up to 3% of eligible compensation are matched 100% by the Company and employee before-tax contributions over 3% and up to 5% of eligible compensation are matched 50% by the Company. Employees under the Ecolab Plan are limited to active employees accruing benefits under the 3% cash balance formula of the Ecolab Pension Plan and employees of Nalco eligible for certain legacy final average pay benefits. Employee before-tax contributions made under the Ecolab Plan of up to 4% of eligible compensation are matched 100% by the Company and employee before-tax contributions over 4% and up to 8% of eligible compensation are matched 50% by the Company. The Company’s matching contributions are 100% vested immediately. The Company’s matching contribution expense was $72 million, $76 million and $72 million in 2020, 2019 and 2018, respectively. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
REVENUES | 18. REVENUES Revenue Recognition Product and Sold Equipment Product revenue is generated from cleaning, sanitizing, water and colloidal silica products. In addition, the Company sells equipment which may be used in combination with its specialized products. Revenue recognized from product and sold equipment is recognized at the point in time when the obligations in the contract with the customer are satisfied, which generally occurs with the transfer of the product or delivery of the equipment. Service and Lease Equipment Service and lease equipment revenue is generated from providing services or leasing equipment to customers. Service offerings include installing or repairing certain types of equipment, activities that supplement or replace headcount at the customer location, or fulfilling deliverables included in the contract. Services provided in Other primary includes services designed to detect, eliminate and prevent pests. Services in the Global Industrial segment are associated with water treatment and paper process applications while Global Institutional & Specialty services include water treatment programs and process applications, and wash process solutions. Global Healthcare & Life Sciences services include pharmaceutical, personal care, infection and containment control solutions. Revenue recognized from leased equipment primarily relates to warewashing and water treatment equipment. Service revenue is recognized over time utilizing an input method and aligns with when the services are provided. Typically, revenue is recognized over time using costs incurred to date because the effort provided by the field selling and service organization represents services provided, which corresponds with the transfer of control. Revenue for leased equipment is accounted for under Topic 842 Leases and recognized on a straight-line basis over the length of the lease contract. Refer to Note 14 for additional information related to lease equipment. Practical Expedients and Exemptions The revenue standard can be applied to a portfolio of contracts with similar characteristics if it is reasonable that the effects of applying the standard at the portfolio would not be significantly different than applying the standard at the individual contract level. The Company applies the portfolio approach primarily within each operating segment by geographical region. Application of the portfolio approach was focused on those characteristics that have the most significant accounting consequences in terms of their effect on the timing of revenue recognition or the amount of revenue recognized. The Company determined the key criteria to assess with respect to the portfolio approach, including the related deliverables, the characteristics of the customers and the timing and transfer of goods and services, which most closely aligned within the operating segments. In addition, the accountability for the business operations, as well as the operational decisions on how to go to market and the product offerings, are performed at the operating segment level. The following table shows principal activities, separated by reportable segments, from which the Company generates its revenue. The reportable segments have been revised to align with the Company’s reportable segments in the current year. Corporate segment includes sales to ChampionX under the Master Cross Supply and Product Transfer agreements entered into as part of the ChampionX Separation. For more information about the Company’s reportable segments, refer to Note 19. Net sales at public exchange rates by reportable segment are as follows: (millions) 2020 2019 2018 Global Industrial Product and sold equipment $5,052.3 $5,174.1 $4,992.8 Service and lease equipment 818.5 806.1 814.0 Global Institutional & Specialty Product and sold equipment 2,968.7 3,701.9 3,673.5 Service and lease equipment 584.5 699.6 628.5 Global Healthcare & Life Sciences Product and sold equipment 1,071.4 890.6 877.2 Service and lease equipment 110.5 82.2 62.3 Other Product and sold equipment 274.5 362.4 360.1 Service and lease equipment 809.8 845.1 813.7 Corporate Product and sold equipment 99.7 - - Service and lease equipment 0.3 - - Total Total product and sold equipment $9,466.6 $10,129.0 $9,903.6 Total service and lease equipment 2,323.6 2,433.0 2,318.5 Net sales at public exchange rates by geographic region are as follows: Global Industrial Global Institutional & Specialty (millions) 2020 2019 2018 2020 2019 2018 United States $2,564.3 $2,668.1 $2,564.9 $2,400.4 $3,021.3 $2,899.0 Europe 1,262.6 1,204.2 1,147.9 510.3 622.3 654.0 Asia Pacific 747.2 774.3 752.4 203.9 235.7 235.0 Latin America 491.7 525.8 512.1 128.3 162.2 161.5 Greater China 333.0 325.4 340.9 114.9 119.4 112.8 Canada 157.9 163.4 167.8 155.6 188.4 187.1 India, Middle East and Africa ("IMEA") 314.1 319.0 320.8 39.8 52.2 52.6 Total $5,870.8 $5,980.2 $5,806.8 $3,553.2 $4,401.5 $4,302.0 Global Healthcare & Life Sciences Other (millions) 2020 2019 2018 2020 2019 2018 United States $432.6 $410.3 $395.7 $645.7 $710.8 $676.4 Europe 643.6 513.8 506.4 228.8 268.4 272.1 Asia Pacific 69.8 22.5 12.3 64.8 74.5 77.5 Latin America 6.1 4.5 4.1 50.3 50.2 49.4 Greater China 3.6 2.0 1.4 63.4 66.5 59.4 Canada 6.4 5.2 5.7 16.9 19.1 21.0 IMEA 19.8 14.5 13.9 14.4 18.0 18.0 Total $1,181.9 $972.8 $939.5 $1,084.3 $1,207.5 $1,173.8 Corporate (millions) 2020 2019 2018 United States $75.2 $- $- Europe 4.8 - - Asia Pacific 2.8 - - Latin America 13.1 - - Greater China 0.9 - - Canada 0.7 - - IMEA 2.5 - - Total $100.0 $- $- Net sales by geographic region were determined based on origin of sale. There were no sales from a single foreign country or individual customer that were material to the Company’s consolidated net sales. Sales of warewashing products were approximately 11%, 13%, and 13% of consolidated net sales in 2020, 2019 and 2018, respectively. Contract Liability Payments received from customers are based on invoices or billing schedules as established in contracts with customers. Accounts receivable are recorded when the right to consideration becomes unconditional. The contract liability relates to billings in advance of performance (primarily service obligations) under the contract. Contract liabilities are recognized as revenue when the performance obligation has been performed, which primarily occurs during the subsequent quarter. December 31 December 31 (millions) 2020 2019 Contract liability as of beginning of the year $76.7 $67.7 Revenue recognized in the year from: Amounts included in the contract liability at the beginning of the year (76.7) (67.7) Increases due to billings excluding amounts recognized as revenue during the year ended 79.8 70.2 Business combinations 0.6 6.5 Contract liability as of end of period $80.4 $76.7 |
OPERATING SEGMENTS AND GEOGRAPH
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 19. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION The Company’s organizational structure consists of global business unit and global regional leadership teams. The Company’s eleven operating segments follow its commercial and product-based activities and are based on engagement in business activities, availability of discrete financial information and review of operating results by the Chief Operating Decision Maker at the identified operating segment level. The Company’s operating segments that share similar economic characteristics and future prospects, nature of the products and production processes, end-use markets, channels of distribution and regulatory environment have been aggregated into three reportable segments: Global Industrial, Global Institutional & Specialty and Global Healthcare & Life Sciences. The Company’s operating segments that do not meet the quantitative criteria to be separately reported have been combined into Other. The Company provides similar information for Other as the Company considers the information regarding its underlying operating segments as useful in understanding its consolidated results. Comparability of Reportable Segments Effective in the first quarter of 2020, and in anticipation of the separation of the Upstream Energy business, the Company created the Upstream and Downstream operating segments and reporting units from the Global Energy operating segment and reporting unit, which was also a reportable segment. The Downstream operating segment, which was previously included in the Global Energy reportable segment has been aggregated into the Global Industrial reportable segment. The table below reflects the elimination of the Global Energy reportable segment and creation of the Downstream operating segment. Also, in the first quarter of 2020, the Company announced leadership changes which allow for shared oversight and focus on the Healthcare and Life Sciences operating segments and established the Global Healthcare & Life Sciences reportable segment. This segment is comprised of the Healthcare operating segment which was previously aggregated in the Global Institutional reportable segment and the Life Sciences operating segment which was previously aggregated in the Global Industrial reportable segment. Additionally, the table reflects the Textile Care operating segment being reported in Other, which had previously been aggregated in the Global Industrial reportable segment. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. The Company made other immaterial changes, including the movement of certain customers and cost allocations between reportable segments. These changes are reflected in the “Segment Change” column in the table below. Subsequent to the separation of ChampionX, the Company no longer reports the Upstream Energy segment, which is reflected in discontinued operations. The Company’s eleven operating segments are aggregated as follows: Global Industrial Includes the Water, Food & Beverage, Paper, and Downstream operating segments. It provides water treatment and process applications, and cleaning and sanitizing solutions primarily to large industrial customers within the manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, pulp and paper, commercial laundry, global petroleum and petrochemical industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. Global Institutional & Specialty Includes the Institutional and Specialty operating segments. It provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, government and education and retail industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. Global Healthcare & Life Sciences Includes the Healthcare and Life Sciences operating segments. It provides specialized cleaning and sanitizing products to the healthcare, personal care and pharmaceutical industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. Other Includes the Pest Elimination operating segment which provides services to detect, eliminate and prevent pests, such as rodents and insects, the CTG operating segment which produces and sells colloidal silica, which is comprised of nano-sized particles of silica in water used primarily for binding and polishing applications and the Textile Care operating segment which provides products and services that manage the entire wash process through custom designed programs, premium products, dispensing equipment, water and energy management and reduction, and real time data management. Corporate Consistent with the Company’s internal management reporting, Corporate amounts in the table above include sales to ChampionX in accordance with the long-term supply agreement entered into with the Transaction, as discussed in Note 5. Corporate also includes intangible asset amortization specifically from the Nalco merger and special (gains) and charges, as discussed in Note 3, that are not allocated to the Company’s reportable segments. Comparability of Reportable Segments The Company evaluates the performance of its non-U.S. dollar functional currency international operations based on fixed currency exchange rates, which eliminate the impact of exchange rate fluctuations on its international operations. Fixed currency amounts are updated annually at the beginning of each year based on translation into U.S. dollars at foreign currency exchange rates established by management, with all periods presented using such rates. The “Fixed Currency Rate Change” column shown in the following table reflects the impact on previously reported values related to fixed currency exchange rates established by management for 2020 and have been updated from the 2019 rates reflected in the Company’s 2019 Form 10-K. The “Other” column in the table reflects immaterial changes between segments, primarily cost allocations. Further information related to the Company’s special (gains) and charges is included in Note 3. The ChampionX business, which includes the direct revenues, operating expenses and certain other expenses directly attributable to the ChampionX business, is reflected in the Company’s historical financial statements as discontinued operations. Allocations of overhead expenses included in historical Upstream Energy segment results are reallocated to the remaining segments. These changes are presented in the “Discontinued operations and related allocation changes” columns in the table below. The impact of the preceding changes on previously reported full year 2019 and 2018 reportable segment net sales and operating income is summarized as follows: December 31, 2019 Discontinued 2019 Reported Fixed 2019 Reported Operations and 2019 Revised Valued at 2019 Segment Currency Valued at 2020 Related Allocation Valued at 2020 (millions) Management Rates Change Rate Change Management Rates Charges Management Rates Net Sales Global Industrial $5,569.9 $479.2 $(52.7) $5,996.4 $(1.8) $5,994.6 Global Institutional & Specialty 5,235.5 (800.1) (23.3) 4,412.1 - 4,412.1 Global Healthcare & Life Sciences - 991.7 (12.7) 979.0 - 979.0 Upstream Energy - 2,350.0 2.9 2,352.9 (2,352.9) - Global Energy 3,334.0 (3,334.0) - - - - Other 907.5 313.2 (9.0) 1,211.7 - 1,211.7 Subtotal at fixed currency rates 15,046.9 - (94.8) 14,952.1 (2,354.7) 12,597.4 Effect of foreign currency translation (140.6) - 94.8 (45.8) 10.4 (35.4) Consolidated reported GAAP net sales $14,906.3 $- $- $14,906.3 $(2,344.3) $12,562.0 Operating Income Global Industrial $854.7 $133.4 $(7.5) $980.6 $(77.9) $902.7 Global Institutional & Specialty 1,042.2 (93.4) (1.5) 947.3 (7.5) 939.8 Global Healthcare & Life Sciences - 136.7 (1.6) 135.1 (10.6) 124.5 Upstream Energy - 188.2 (0.3) 187.9 (187.9) - Global Energy 379.1 (379.1) - - - - Other 167.3 14.2 (0.9) 180.6 (13.6) 167.0 Corporate (409.1) - 1.2 (407.9) 128.2 (279.7) Subtotal at fixed currency rates 2,034.2 - (10.6) 2,023.6 (169.3) 1,854.3 Effect of foreign currency translation (20.4) - 10.6 (9.8) 0.7 (9.1) Consolidated reported GAAP operating income $2,013.8 $- $- $2,013.8 $(168.6) $1,845.2 r December 31, 2018 Discontinued 2018 Reported Fixed 2018 Reported Operations and 2018 Revised Valued at 2019 Segment Currency Valued at 2020 Related Allocation Valued at 2020 (millions) Management Rates Change Rate Change Management Rates Charges Management Rates Net Sales Global Industrial $5,220.2 $520.9 ($50.8) $5,690.3 ($1.8) $5,688.5 Global Institutional & Specialty 5,066.0 (788.3) (22.5) 4,255.2 - 4,255.2 Global Healthcare & Life Sciences - 928.2 (12.5) 915.7 - 915.7 Upstream Energy - 2,419.8 2.5 2,422.3 (2,422.3) - Global Energy 3,388.8 (3,388.8) - - - - Other 855.7 308.2 (8.6) 1,155.3 - 1,155.3 Subtotal at fixed currency rates 14,530.7 - (91.9) 14,438.8 (2,424.1) 12,014.7 Effect of foreign currency translation 137.5 - 91.9 229.4 (22.0) 207.4 Consolidated reported GAAP net sales $14,668.2 $- $- $14,668.2 ($2,446.1) $12,222.1 Operating Income Global Industrial $724.4 $116.2 ($6.6) $834.0 ($80.3) $753.7 Global Institutional & Specialty 1,007.3 (100.8) (1.5) 905.0 (3.5) 901.5 Global Healthcare & Life Sciences - 136.8 (1.7) 135.1 (10.7) 124.4 Upstream Energy - 170.7 1.6 172.3 (172.3) - Global Energy 338.5 (338.5) - - - - Other 160.0 15.6 (1.0) 174.6 (10.6) 164.0 Corporate (303.6) - 0.9 (302.7) 60.9 (241.8) Subtotal at fixed currency rates 1,926.6 - (8.3) 1,918.3 (216.5) 1,701.8 Effect of foreign currency translation 20.4 - 8.3 28.7 (2.2) 26.5 Consolidated reported GAAP operating income $1,947.0 $- $- $1,947.0 ($218.7) $1,728.3 Reportable Segment Information Financial information for each of the Company’s reportable segments is as follows: Net Sales Operating Income (Loss) (millions) 2020 2019 2018 2020 2019 2018 Global Industrial $5,959.9 $5,994.6 $5,688.5 $1,106.0 $902.7 $753.7 Global Institutional & Specialty 3,577.2 4,412.1 4,255.2 321.9 939.8 901.5 Global Healthcare & Life Sciences 1,189.1 979.0 915.7 207.6 124.5 124.4 Other 1,093.3 1,211.7 1,155.3 131.5 167.0 164.0 Corporate 102.4 - - (347.5) (279.7) (241.8) Subtotal at fixed currency 11,921.9 12,597.4 12,014.7 1,419.5 1,854.3 1,701.8 Effect of foreign currency translation (131.7) (35.4) 207.4 (23.8) (9.1) 26.5 Consolidated $11,790.2 $12,562.0 $12,222.1 $1,395.7 $1,845.2 $1,728.3 The profitability of the Company’s operating segments is evaluated by management based on operating income. The Company has an integrated supply chain function that serves all of its reportable segments. As such, asset and capital expenditure information by reportable segment has not been provided and is not available, since the Company does not produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each reportable segment’s operating results, it is not discretely identifiable. Geographic Information Long-lived assets at public exchange rates by geographic region are as follows: Long-Lived Assets, net (millions) 2020 2019 United States $6,739.4 $6,990.8 Europe 3,062.0 2,515.2 Asia Pacific, excluding Greater China 846.1 831.1 Latin America 443.0 469.9 IMEA 178.5 177.2 Canada 89.3 93.9 Greater China 1,226.5 1,163.1 Total $12,584.8 $12,241.2 Geographic data for long-lived assets is based on physical location of those assets. Refer to Note 18 for net sales by geographic region. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 20. QUARTERLY FINANCIAL DATA (UNAUDITED) First Second Third Fourth (millions, except per share) Quarter Quarter Quarter Quarter Year 2020 Net sales $3,020.6 $2,685.7 $3,018.6 $3,065.3 $11,790.2 Operating expenses Cost of sales (a) 1,720.2 1,635.7 1,769.6 1,780.3 6,905.8 Selling, general and administrative expenses 908.3 788.6 802.6 809.6 3,309.1 Special (gains) and charges 15.9 69.4 35.0 59.3 179.6 Operating income 376.2 192.0 411.4 416.1 1,395.7 Other (income) expense (a) (15.4) (15.1) (15.1) (10.3) (55.9) Interest expense, net (a) 48.3 58.7 134.8 48.4 290.2 Income before income taxes 343.3 148.4 291.7 378.0 1,161.4 Provision for income taxes 47.0 14.1 42.4 73.1 176.6 Net income from continuing operations, including noncontrolling interest 296.3 134.3 249.3 304.9 984.8 Net income from continuing operations attributable to noncontrolling interest 4.3 5.4 3.1 4.6 17.4 Net income from continuing operations attributable to Ecolab 292.0 128.9 246.2 300.3 967.4 Net income (loss) from discontinued operations, net of tax (b) (8.6) (2,163.9) - - (2,172.5) Net income (loss) attributable to Ecolab $283.4 ($2,035.0) $246.2 $300.3 ($1,205.1) Earnings (loss) attributable to Ecolab per common share Basic Continuing operations $ 1.01 $ 0.45 $ 0.86 $ 1.05 $ 3.37 Discontinued operations ($ 0.03) ($ 7.51) $ - $ - ($ 7.57) Earnings (loss) attributable to Ecolab $ 0.98 ($ 7.06) $ 0.86 $ 1.05 ($ 4.20) Diluted Continuing operations $ 1.00 $ 0.44 $ 0.85 $ 1.04 $ 3.33 Discontinued operations ($ 0.03) ($ 7.42) $ - $ - ($ 7.48) Earnings (loss) attributable to Ecolab $ 0.97 ($ 6.98) $ 0.85 $ 1.04 ($ 4.15) Weighted-average common shares outstanding Basic 288.8 288.2 285.4 285.6 287.0 Diluted 292.6 291.5 288.4 288.7 290.3 2019 Net sales $2,924.7 $3,169.1 $3,224.0 $3,244.2 $12,562.0 Operating expenses Cost of sales (a) 1,675.5 1,780.3 1,780.9 1,809.1 7,045.8 Selling, general and administrative expenses 896.1 900.0 869.2 885.5 3,550.8 Special (gains) and charges 39.5 24.4 24.9 31.4 120.2 Operating income 313.6 464.4 549.0 518.2 1,845.2 Other (income) expense (21.2) (20.9) (20.8) (14.1) (77.0) Interest expense, net (a) 49.3 49.2 46.1 46.1 190.7 Income before income taxes 285.5 436.1 523.7 486.2 1,731.5 Provision for income taxes 29.9 88.8 83.4 86.5 288.6 Net income from continuing operations, including noncontrolling interest 255.6 347.3 440.3 399.7 1,442.9 Net income from continuing operations attributable to noncontrolling interest 4.0 3.9 4.4 5.0 17.3 Net income from continuing operations attributable to Ecolab 251.6 343.4 435.9 394.7 1,425.6 Net income from discontinued operations, net of tax (b) 44.9 25.2 28.3 34.9 133.3 Net income attributable to Ecolab $296.5 $368.6 $464.2 $429.6 $1,558.9 First Second Third Fourth (millions, except per share) Quarter Quarter Quarter Quarter Year Earnings attributable to Ecolab per common share Basic Continuing operations $ 0.87 $ 1.19 $ 1.51 $ 1.37 $ 4.95 Discontinued operations $ 0.16 $ 0.09 $ 0.10 $ 0.12 $ 0.46 Earnings attributable to Ecolab $ 1.03 $ 1.28 $ 1.61 $ 1.49 $ 5.41 Diluted Continuing operations $ 0.86 $ 1.18 $ 1.49 $ 1.35 $ 4.87 Discontinued operations $ 0.15 $ 0.09 $ 0.10 $ 0.12 $ 0.46 Earnings attributable to Ecolab $ 1.01 $ 1.26 $ 1.59 $ 1.47 $ 5.33 Weighted-average common shares outstanding Basic 288.2 287.6 288.1 288.3 288.1 Diluted 292.3 292.1 292.8 292.6 292.5 Per share amounts do not necessarily sum due to changes in the calculation of shares outstanding for each discrete period and rounding. Gross profit is calculated as net sales minus cost of sales. As discussed in Note 5, the ChampionX separation met the criteria to be reported as discontinued operations and prior periods have been conformed to current period presentation. (a) Cost of sales includes special charges of $9.1 , $27.0 , $9.5 and $2.6 in Q1, Q2, Q3 and Q4 of 2020, respectively and $3.6 , $7.8 , $11.4 and $15.7 in Q1, Q2, Q3 and Q4 of 2019, respectively. Other (income) expense includes special charges of $0.4 and $9.5 in Q4 of 2020 and 2019, respectively. Net interest expense includes special charges of $0.7 and $83.1 in Q2 and Q3 of 2020, respectively and $0.2 in Q1 of 2019. (b) Net income from discontinued operations, net of tax includes noncontrolling interest of $2.5 and ($0.3) in Q1 and Q2 of 2020, respectively and $(0.1) , ($0.3) , $0.7 and $(0.3) in Q1, Q2, Q3 and Q4 of 2019, respectively. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries in which the Company has a controlling financial interest. Investments in companies, joint ventures or partnerships in which the Company does not have control but has the ability to exercise significant influence over operating and financial decisions, are reported using the equity method of accounting. The cost method of accounting is used in circumstances where the Company does not significantly influence the investee, and the investment has no readily determinable fair value. International subsidiaries are included in the financial statements on the basis of their U.S. GAAP November 30 fiscal year ends to facilitate the timely inclusion of such entities in the Company’s consolidated financial reporting. All intercompany transactions and profits are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s critical accounting estimates include revenue recognition, valuation allowances and accrued liabilities, actuarially determined liabilities, restructuring, income taxes, long-lived assets, intangible assets and goodwill. In March 2020, coronavirus 2019 (“COVID-19”) was declared a pandemic (“pandemic”) by the World Health Organization. As the impact of the pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require judgment. These estimates and assumptions may change in future periods and will be recognized in the consolidated financial information as new events occur and additional information becomes known. To the extent actual results differ materially from those estimates and assumptions, the Company’s future financial statements could be affected. |
Foreign Currency Translation | Foreign Currency Translation Financial position and reported results of operations of the Company’s non-U.S. dollar functional currency international subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at each fiscal year end. The translation adjustments related to assets and liabilities that arise from changes in exchange rates from period to period are included in accumulated other comprehensive loss in shareholders’ equity. Income statement accounts are translated at average rates of exchange prevailing during the year. As discussed in Note 19 Operating Segments and Geographic Information, the Company evaluates its international operations based on fixed rates of exchange; however, changes in exchange rates from period to period impact the amount of reported income from consolidated operations. |
Concentration of Credit Risk | Concentration of Credit Risk Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed to perform as contracted. The Company believes the likelihood of incurring material losses due to concentration of credit risk is minimal. The principal financial instruments subject to credit risk are as follows: Cash and Cash Equivalents Accounts Receivable Foreign Currency and Interest Rate Contracts and Derivatives |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly-liquid investments with a maturity of three months or less when purchased. |
Restricted Cash | Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Other assets on the Consolidated Balance Sheet and primarily relate to acquisition activities. |
Accounts Receivable and Allowance For Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at the invoiced amounts, less an allowance for doubtful accounts, and generally do not bear interest. The Company’s allowance for doubtful accounts estimates the amount of expected future credit losses by analyzing accounts receivable balances by age and applying historical write-off and collection experience. The Company’s estimates separately considered macroeconomic trends and specific circumstances and credit conditions of customer receivables. Account balances are written off against the allowance when it is determined the receivable will not be recovered. The Company’s allowance for doubtful accounts balance also includes an allowance for the expected return of products shipped and credits related to pricing or quantities shipped of $16 million, $17 million and $16 million as of December 31, 2020, 2019, and 2018, respectively. Returns and credit activity is recorded directly as a reduction to revenue. The following table summarizes the activity in the allowance for doubtful accounts: (millions) 2020 2019 2018 Beginning balance $55.5 $52.4 $64.8 Adoption of new standard 4.3 - - Bad debt expense (a) 57.7 21.5 13.7 Write-offs (31.6) (19.1) (19.7) Other (b) (1.6) 0.7 (6.4) Ending balance $84.3 $55.5 $52.4 (a) B ad debt expense in 2020 reflects the impact of deteriorations and increased uncertainty in the macroeconomic outlook, primarily the Institutional customer base, as a result of the COVID-19 pandemic. (b) Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits. |
Inventory Valuations | Inventory Valuations Inventories are valued at the lower of cost or net realizable value. Certain U.S. inventory costs are determined on a last-in, first-out (“LIFO”) basis. LIFO inventories represented 26% and 33% of consolidated inventories as of December 31, 2020 and 2019, respectively. All other inventory costs are determined using either the average cost or first-in, first-out (“FIFO”) methods. Inventory values at FIFO, as shown in Note 6, approximate replacement cost. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment assets are stated at cost. Merchandising and customer equipment consists principally of various dispensing systems for the Company’s cleaning and sanitizing products, warewashing machines and process control and monitoring equipment. Certain dispensing systems capitalized by the Company are accounted for on a mass asset basis, whereby equipment is capitalized and depreciated as a group and written off when fully depreciated. The Company capitalizes both internal and external costs to develop or purchase computer software. Costs incurred for data conversion, training and maintenance associated with capitalized software are expensed as incurred. Expenditures for major renewals and improvements, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Expenditures for repairs and maintenance are charged to expense as incurred. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives ranging from 5 to 40 years for buildings and leasehold improvements, 3 to 20 years for machinery and equipment, 3 to 20 years for merchandising and customer equipment and 3 to 7 years for capitalized software. The straight-line method of depreciation reflects an appropriate allocation of the cost of the assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. Depreciation expense was $594 million, $569 million and $536 million for 2020, 2019 and 2018, respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill arises from the Company’s acquisitions and represents the amount of purchase consideration exchanged, at fair value, in excess of the fair value of acquired net assets. The Company’s reporting units are its operating segments. The Company assesses goodwill for impairment on an annual basis during the second quarter. If circumstances change or events occur that demonstrate it is more likely than not that the carrying amount of a reporting unit exceeds its fair value, the Company completes an interim goodwill assessment of that reporting unit prior to the next annual assessment. If the results of a goodwill assessment demonstrate the carrying amount of a reporting unit is greater than its fair value, the Company will recognize an impairment loss for the amount by which the reporting unit’s carrying amount exceeds its fair value, but not to exceed the carrying amount of goodwill assigned to that reporting unit. During the second quarter of 2020, the Company completed its annual goodwill impairment assessment for each of its eleven reporting units using discounted cash flow analyses that incorporated assumptions regarding future growth rates, terminal values, and discount rates. The Company’s goodwill impairment assessment for 2020 indicated the estimated fair values of each of its reporting units exceeded their respective carrying amounts by significant margins. Additionally, no events noted during the second half of 2020 indicated a need to update any of the Company’s analyses or conclusions reached in the second quarter of 2020 for any of its eleven reporting units. There has been no impairment of goodwill in any of the periods presented. The changes in the carrying amount of goodwill for each of the Company’s reportable segments are as follows: Global Global Global Institutional Healthcare & Global (millions) Industrial & Specialty Life Sciences Energy Other Total December 31, 2018 $2,730.8 $1,015.3 $- $1,442.7 $205.3 $5,394.1 Segment change (a) 1,230.8 (597.5) 775.3 (1,442.7) 34.1 - December 31, 2018 revised $3,961.6 $417.8 $775.3 $- $239.4 $5,394.1 Current year business combinations (b) - 135.3 99.0 0.7 235.0 Prior year business combinations (c) (0.2) - - - (0.2) Effect of foreign currency translation (37.7) (4.9) (14.9) (2.3) (59.8) December 31, 2019 $3,923.7 $548.2 $859.4 $- $237.8 $5,569.1 Current year business combinations (b) 275.7 - - - - 275.7 Prior year business combinations (c) - - 0.6 - - 0.6 Dispositions (47.6) - - - - (47.6) Effect of foreign currency translation 136.1 15.9 49.8 - 7.3 209.1 December 31, 2020 $4,287.9 $564.1 $909.8 $- $245.1 $6,006.9 (a) Relates to reclassifications made as a result of changes in reportable segments during the first quarter of 2020. The ChampionX business was previously recorded in the Global Energy reportable segment and has been reported as discontinued operations. The goodwill that was previously assigned to the Global Energy reportable segment, which was also an operating segment and reporting unit, was reassigned to ChampionX and the Downstream operating segment, which both became separate reporting units during the first quarter of 2020, based on a relative fair value allocation. The Downstream operating segment is now aggregated into the Global Industrial reportable segment. In addition, the Company established the Global Healthcare & Life Sciences reportable segment during the first quarter of 2020 which is comprised of the Healthcare and Life Sciences operating segments, which were previously included in the Global Institutional and Global Industrial reportable segments, respectively. These were, and continue to be reporting units, therefore goodwill did not need to be reassigned as a result of the changes in segments. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. Refer to Note 19 for further information. (b) For 2020, the goodwill related to businesses acquired is not tax deductible. For 2019, $49.4 of the goodwill related to businesses acquired is expected to be tax deductible. (c) Represents purchase price allocation adjustments for acquisitions deemed preliminary as of the end of the prior year. Other Intangible Assets The Nalco trade name is the Company’s only indefinite life intangible asset. During the second quarter of 2020, the Company completed its annual impairment assessment of the Nalco trade name using the relief from royalty discounted cash flow method, which incorporates assumptions regarding future sales projections, royalty rates and discount rates. Based on this testing, the estimated fair value of the Nalco trade name exceeded its carrying amount by a significant margin; therefore, no adjustment to the $1.2 billion carrying amount of the Nalco trade name was necessary. Additionally, no events during the second half of 2020 indicated a need to update the Company’s conclusions reached during the second quarter of 2020. There has been no impairment of the Nalco trade name intangible asset since it was acquired. The Company’s intangible assets subject to amortization include customer relationships, trademarks, patents and other technology primarily acquired through business combinations. The fair value of intangible assets acquired in business combinations is estimated primarily using discounted cash flow methods at the time of acquisition. Intangible assets are amortized on a straight-line basis over their estimated lives. The weighted-average useful life of amortizable intangible assets was 14 years as of both December 31, 2020 and 2019. The weighted-average useful life by type of amortizable asset at December 31, 2020 is as follows: (years) Customer relationships 14 Trademarks 14 Patents 15 Other technology 7 The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company evaluates the remaining useful life of its intangible assets subject to amortization each reporting period to determine whether events and circumstances warrant a change to the estimated remaining period of amortization. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset will be amortized prospectively over the revised remaining useful life. Total amortization expense related to other intangible assets during the last three years and future estimated amortization is as follows: (millions) 2018 $ 193 2019 206 2020 219 2021 223 2022 219 2023 214 2024 207 2025 200 |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived and amortizable intangible assets for impairment when significant events or changes in business circumstances indicate that the carrying amount of the assets, or asset group to which it is assigned, may not be recoverable. Such circumstances may include a significant decrease in the market price of an asset or asset group, a significant adverse change in the manner in which the asset or asset group is being used or history of operating or cash flow losses associated with the use of an asset or asset group. Impairment losses could occur when the carrying amount of an asset or asset group exceeds the anticipated future undiscounted cash flows expected to result from the use of the asset or asset group and its eventual disposition. The amount of the impairment loss to be recorded, if any, is calculated by the excess of the asset’s or asset group’s carrying value over its fair value. In addition, the Company periodically reassesses the estimated remaining useful lives of its long-lived assets. Changes to estimated useful lives would impact the amount of depreciation and amortization recorded in earnings. The Company has not experienced significant changes in the carrying amount or estimated remaining useful lives of its long-lived or amortizable intangible assets. |
Rental and Leases, Lessee | Lessee The Company determines whether a lease exists at the inception of the arrangement. In assessing whether a contract is or contains a lease, the Company evaluates whether the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company accounts for lease components separately from the nonlease components (e.g., common-area maintenance costs). Operating leases are recorded in operating lease assets, other current liabilities and operating lease liabilities in the Consolidated Balance Sheet. Operating lease assets and operating lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses the rate implicit in the lease when available or determinable. When the rate implicit in the lease is not determinable, the Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the lease liability and are recognized as incurred. The Company identified real estate, vehicles and other equipment as the primary classes of leases. Certain leases with a similar class of underlying assets are accounted for as a portfolio of leases. The Company does not record operating lease assets or liabilities for leases with terms of twelve months or less. Those lease payments will continue to be recognized in the Consolidated Statement of Income on a straight-line basis over the lease term. Many of the Company’s leases include options to renew or cancel, which are at the Company’s sole discretion. Renewal terms can extend the lease term from one month to multiple years. The lease start date is when the asset is available for use and in possession of the Company. The lease end date, which includes any options to renew or cancel that are reasonably certain to be exercised, is based on the terms of the contract. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any material restrictive covenants. |
Rental and Leases, Lessor | Lessor The Company accounts for lease and nonlease components separately. The nonlease components, such as product and service revenue, are accounted for under Topic 606 Revenue from Contracts with Customers, refer to Note 18 for more information. Revenue from leasing equipment is recognized on a straight-line basis over the life of the lease. Cost of sales includes the depreciation expense for assets under operating leases. The assets are depreciated over their estimated useful lives. Initial lease terms range from one year to five years and most leases include renewal options. Lease contracts convey the right for the customer to control the equipment for a period of time as defined by the contract. There are no options for the customer to purchase the equipment and therefore the equipment remains the property of the Company at the end of the lease term. See Note 14 for additional information regarding rental and leases. |
Income Taxes | Income Taxes Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax bases. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. Relevant factors in determining the realizability of deferred tax assets include historical results, sources of future taxable income, the expected timing of the reversal of temporary differences, tax planning strategies and the expiration dates of the various tax attributes. The Company records liabilities for income tax uncertainties in accordance with the U.S. GAAP recognition and measurement criteria guidance. The Company recognize interest and penalties related to income tax uncertainties in our income tax provision. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Tax Act added many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on global intangible low taxed income (‘GILTI”), the base erosion anti abuse tax (‘BEAT”) and a deduction for foreign derived intangible income (‘FDII”). The Company has elected the period cost method and considers the estimated GILTI impact in tax expense beginning in 2018. See Note 13 for additional information regarding income taxes. |
Share-based compensation | Share-Based Compensation The Company measures compensation expense for share-based awards at fair value at the date of grant and recognizes compensation expense over the service period for awards expected to vest. The majority of grants to retirement eligible recipients (age 55 with required years of service) are recorded to expense using the non-substantive vesting method and are fully expensed over a six-month period following the date of grant. In addition, the Company includes a forfeiture estimate in the amount of compensation expense being recognized based on an estimate of the number of outstanding awards expected to vest. All excess tax benefits or deficiencies are recognized as discrete income tax items on the Consolidated Statement of Income. The extent of excess tax benefits is subject to variation in stock price and stock option exercises. See Note 12 for additional information regarding equity compensation plans. |
Restructuring Activities | Restructuring Activities The Company’s restructuring activities are associated with plans to enhance its efficiency, effectiveness and sharpen its competitiveness. These restructuring plans include net costs associated with significant actions involving employee-related severance charges, contract termination costs and asset write-downs and disposals. Employee termination costs are largely based on policies and severance plans, and include personnel reductions and related costs for severance, benefits and outplacement services. These charges are reflected in the quarter in which the actions are probable and the amounts are estimable, which typically is when management approves the associated actions. Contract termination costs include charges to terminate leases prior to the end of their respective terms and other contract termination costs. Asset write-downs and disposals include leasehold improvement write-downs, other asset write-downs associated with combining operations and disposal of assets. See Note 3 for additional information regarding restructuring activities. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing service. Product and Sold Equipment Revenue from product and sold equipment is recognized when obligations under the terms of a contract with the customer are satisfied, which generally occurs with the transfer of the product or delivery of the equipment. Service and Lease Equipment Revenue from service and leased equipment is recognized when the services are provided, or the customer receives the benefit from the leased equipment, which is over time. Service revenue is recognized over time utilizing an input method and aligns with when the services are provided. Typically, revenue is recognized using costs incurred to date because the effort provided by the field selling and service organization represents services provided, which corresponds with the transfer of control. Revenue for leased equipment is accounted for under Topic 842 Leases and recognized on a straight-line basis over the length of the lease contract. Other Considerations Contracts with customers may include multiple performance obligations. For contracts with multiple performance obligations, the consideration is allocated between products and services based on their stand-alone selling prices. Stand-alone selling prices are generally based on the prices charged to customers or using an expected cost plus margin. Judgment is used in determining the amount of service that is embedded within the Company’s contracts, which is based on the amount of time spent on the performance obligation activities. The level of effort, including the estimated margin that would be charged, is used to determine the amount of service revenue. Depending on the terms of the contract, the Company may defer the recognition of revenue when a future performance obligation has not yet occurred. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction, which are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight are recognized in cost of sales when control over the product has transferred to the customer. Other estimates used in recognizing revenue include allocating variable consideration to customer programs and incentive offerings, including pricing arrangements, promotions and other volume-based incentives at the time the sale is recorded. These estimates are based primarily on historical experience and anticipated performance over the contract period. Based on the certainty in estimating these amounts, they are included in the transaction price of the contracts and the associated remaining performance obligations. The Company recognizes revenue when collection of the consideration expected to be received in exchange for transferring goods or providing services is probable. The Company’s revenue policies do not provide for general rights of return. Estimates used in recognizing revenue include the delay between the time that products are shipped and when they are received by customers, when title transfers and the amount of credit memos issued in subsequent periods. Depending on market conditions, the Company may increase customer incentive offerings, which could reduce gross profit margins over the term of the incentive. |
Earnings Per Common Share | Earnings Per Common Share The difference in the weighted average common shares outstanding for calculating basic and diluted earnings attributable to Ecolab per common share is a result of the dilution associated with the Company’s equity compensation plans. As noted in the table below, certain stock options and units outstanding under these equity compensation plans were not included in the computation of diluted earnings attributable to Ecolab per common share because they would not have had a dilutive effect. The computations of the basic and diluted earnings attributable to Ecolab per share amounts were as follows: (millions, except per share) 2020 2019 2018 Net income from continuing operations attributable to Ecolab $967.4 $1,425.6 $1,250.3 Net (loss) income from discontinued operations (2,172.5) 133.3 178.8 Net (loss) income attributable to Ecolab ($1,205.1) $1,558.9 $1,429.1 Weighted-average common shares outstanding Basic 287.0 288.1 288.6 Effect of dilutive stock options and units 3.3 4.4 4.2 Diluted 290.3 292.5 292.8 Earnings (loss) attributable to Ecolab per common share Basic EPS Continuing operations $ 3.37 $ 4.95 $ 4.33 Discontinued operations ($ 7.57) $ 0.46 $ 0.62 Earnings (loss) attributable to Ecolab ($ 4.20) $ 5.41 $ 4.95 Diluted EPS Continuing operations $ 3.33 $ 4.87 $ 4.27 Discontinued operations ($ 7.48) $ 0.46 $ 0.61 Earnings (loss) attributable to Ecolab ($ 4.15) $ 5.33 $ 4.88 Anti-dilutive securities excluded from the computation of diluted EPS 1.9 1.1 2.9 Amounts do not necessarily sum due to rounding. |
Fair value measurements | The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, contingent consideration obligations, commercial paper, notes payable, foreign currency forward contracts, interest rate swap agreements and long-term debt. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels: Level 1 Level 2 Level 3 |
Derivatives and hedging transactions | The Company uses foreign currency forward contracts, interest rate swap agreements and foreign currency debt to manage risks associated with foreign currency exchange rates, interest rates and net investments in foreign operations. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. The Company records derivatives as assets and liabilities on the balance sheet at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. Cash flows from derivatives are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swap agreements. The Company monitors its exposure to credit risk by using credit approvals and credit limits and by selecting major global banks and financial institutions as counterparties. The Company does not anticipate nonperformance by any of these counterparties, and therefore, recording a valuation allowance against the Company’s derivative balance is not considered necessary. |
Research and development expenditures | Research expenditures that relate to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. |
Legal contingencies | The Company is subject to various claims and contingencies related to, among other things, workers’ compensation, general liability (including product liability), automobile claims, health care claims, environmental matters and lawsuits. The Company is also subject to various claims and contingencies related to income taxes, which are discussed in Note 13. The Company also has contractual obligations including to lease commitments, which are discussed in Note 14. The Company records liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. Insurance Globally, the Company has insurance policies with varying deductible levels for property and casualty losses. The Company is insured for losses in excess of these deductibles, subject to policy terms and conditions and has recorded both a liability and an offsetting receivable for amounts in excess of these deductibles. The Company is self-insured for health care claims for eligible participating employees, subject to certain deductibles and limitations. The Company determines its liabilities for claims on an actuarial basis. Litigation and Environmental Matters The Company and certain subsidiaries are party to various lawsuits, claims and environmental actions that have arisen in the ordinary course of business. These include from time to time antitrust, commercial, patent infringement, product liability and wage hour lawsuits, as well as possible obligations to investigate and mitigate the effects on the environment of the disposal or release of certain chemical substances at various sites, such as Superfund sites and other operating or closed facilities. The Company has established accruals for certain lawsuits, claims and environmental matters. The Company currently believes that there is not a reasonably possible risk of material loss in excess of the amounts accrued related to these legal matters. Because litigation is inherently uncertain, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of recorded liabilities. A future adverse ruling, settlement or unfavorable development could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. The Company currently believes that such future charges related to suits and legal claims, if any, would not have a material adverse effect on the Company’s consolidated financial position. |
Pension and post-retirement benefit plans | The Company has a non-contributory, qualified, defined benefit pension plan covering the majority of its U.S. employees. The Company also has non-contributory, non-qualified, defined benefit plans, which provide for benefits to employees in excess of limits permitted under its U.S. pension plans. Various international subsidiaries have defined benefit pension plans. The Company provides postretirement health care benefits to certain U.S. employees and retirees. The non-qualified plans are not funded and the recorded benefit obligation for the non-qualified plans was $134 million and $127 million at December 31, 2020 and 2019, respectively. The measurement date used for determining the U.S. pension plan assets and obligations is December 31. International plans are funded based on local country requirements. The measurement date used for determining the international pension plan assets and obligations is November 30, the fiscal year end of the Company’s international subsidiaries. The U.S. postretirement health care plans are contributory based on years of service and choice of coverage (family or single), with retiree contributions adjusted annually. The measurement date used to determine the U.S. postretirement health care plan assets and obligations is December 31. Certain employees outside the U.S. are covered under government-sponsored programs, which are not required to be fully funded. The expense and obligation for providing international postretirement health care benefits are not significant. |
Reportable segments | The Company’s organizational structure consists of global business unit and global regional leadership teams. The Company’s eleven operating segments follow its commercial and product-based activities and are based on engagement in business activities, availability of discrete financial information and review of operating results by the Chief Operating Decision Maker at the identified operating segment level. |
Asset Held for Sale | Assets Held for Sale Assets and liabilities are classified as held for sale and presented separately on the balance sheet when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. The ChampionX business met the criteria to be held for sale immediately prior to the Separation. The ChampionX business was previously recorded in the Global Energy reportable segment, which became the Upstream Energy reportable segment beginning in 2020 and subsequently has been reported in discontinued operations. The assets and liabilities held for sale are recorded on the Company’s Consolidated Balance Sheet as current assets of discontinued operations, long-term assets of discontinued operations, current liabilities of discontinued operations and long-term liabilities of discontinued operations, respectively. |
Discontinued Operations | Discontinued Operations Discontinued operations comprise those activities that were disposed of during the period or which were classified as held for sale at the end of the period and represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. The ChampionX business met the criteria to be reported as discontinued operations because it was a strategic shift in business that had a major effect on the Company’s operations and financial results. The ChampionX business is presented on the Consolidated Statement of Income as discontinued operations. Refer to Note 5, Discontinued Operations, for additional information. |
New Accounting Pronouncements | New Accounting Pronouncements Standards that are not yet adopted: Required Date of Date of Effect on the Standard Issuance Description Adoption Financial Statements ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes December 2019 Simplifies the accounting for income taxes by removing certain exceptions to the general principles related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and recognition of deferred tax liabilities for outside basis differences. The new standard also simplifies the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the basis of goodwill. January 1, 2021 The adoption of this standard will not have a significant impact on the Company's financial statements. ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting March 2020 LIBOR, a widely used reference rate for pricing financial products is scheduled to be discontinued on December 31, 2021. This standard provides optional expedients and exceptions if certain criteria are met when accounting for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Application of guidance is optional until December 31, 2022 and varies based on expedient elected. The Company has not elected any expedients to date and is currently evaluating any potential future impacts on the Company's financial statements. Standards that were adopted: Date of Date of Effect on the Standard Issuance Description Adoption Financial Statements ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) August 2018 Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments require an entity (customer) in a hosting arrangement that is a service contract to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. January 1, 2020 The Company adopted the prospective transition method. Adoption of this guidance did not have a material impact on the Company's financial statements. ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans August 2018 Modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This includes, but is not limited to, the removal of the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, and the addition of a requirement to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. January 1, 2020 Adoption of the standard did not impact the Company's consolidated balance sheet or income statement. Annual disclosure requirements have been updated to align with the new standard, and changes in disclosure was not material. ASU 2017-04 - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 2017 Simplifies subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. January 1, 2020 The new standard changes the manner of how goodwill impairment losses are measured when the carrying amount of a reporting unit exceeds its fair value. Adoption of this standard impacted the financial statements to the extent the carrying amount of any of the Company's reporting units exceeds their fair values during future goodwill assessments. Credit Losses ASUs: Various Addresses the recognition, measurement, presentation and disclosure of credit losses on trade and reinsurance receivables, loans, debt securities, net investments in leases, off-balance-sheet credit exposures and certain other instruments. Amends guidance on reporting credit losses from an incurred model to an expected model for assets held at amortized cost, such as accounts receivable, loans and held-to-maturity debt securities. Additional disclosures will also be required. January 1, 2020 The Company adopted the standard for expected credit losses using the modified retrospective approach. The effects of adoption were reflected as a $4.3 million reduction to retained earnings as of January 1, 2020 and did not materially impact the Company's consolidated balance sheet, income statement or cash flows. No other new accounting pronouncement issued or effective has had or is expected to have a material impact on the Company’s consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Summarized activity in the allowance for doubtful accounts | (millions) 2020 2019 2018 Beginning balance $55.5 $52.4 $64.8 Adoption of new standard 4.3 - - Bad debt expense (a) 57.7 21.5 13.7 Write-offs (31.6) (19.1) (19.7) Other (b) (1.6) 0.7 (6.4) Ending balance $84.3 $55.5 $52.4 (a) B ad debt expense in 2020 reflects the impact of deteriorations and increased uncertainty in the macroeconomic outlook, primarily the Institutional customer base, as a result of the COVID-19 pandemic. (b) Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits. |
Changes in the carrying amount of goodwill | Global Global Global Institutional Healthcare & Global (millions) Industrial & Specialty Life Sciences Energy Other Total December 31, 2018 $2,730.8 $1,015.3 $- $1,442.7 $205.3 $5,394.1 Segment change (a) 1,230.8 (597.5) 775.3 (1,442.7) 34.1 - December 31, 2018 revised $3,961.6 $417.8 $775.3 $- $239.4 $5,394.1 Current year business combinations (b) - 135.3 99.0 0.7 235.0 Prior year business combinations (c) (0.2) - - - (0.2) Effect of foreign currency translation (37.7) (4.9) (14.9) (2.3) (59.8) December 31, 2019 $3,923.7 $548.2 $859.4 $- $237.8 $5,569.1 Current year business combinations (b) 275.7 - - - - 275.7 Prior year business combinations (c) - - 0.6 - - 0.6 Dispositions (47.6) - - - - (47.6) Effect of foreign currency translation 136.1 15.9 49.8 - 7.3 209.1 December 31, 2020 $4,287.9 $564.1 $909.8 $- $245.1 $6,006.9 (a) Relates to reclassifications made as a result of changes in reportable segments during the first quarter of 2020. The ChampionX business was previously recorded in the Global Energy reportable segment and has been reported as discontinued operations. The goodwill that was previously assigned to the Global Energy reportable segment, which was also an operating segment and reporting unit, was reassigned to ChampionX and the Downstream operating segment, which both became separate reporting units during the first quarter of 2020, based on a relative fair value allocation. The Downstream operating segment is now aggregated into the Global Industrial reportable segment. In addition, the Company established the Global Healthcare & Life Sciences reportable segment during the first quarter of 2020 which is comprised of the Healthcare and Life Sciences operating segments, which were previously included in the Global Institutional and Global Industrial reportable segments, respectively. These were, and continue to be reporting units, therefore goodwill did not need to be reassigned as a result of the changes in segments. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. Refer to Note 19 for further information. (b) For 2020, the goodwill related to businesses acquired is not tax deductible. For 2019, $49.4 of the goodwill related to businesses acquired is expected to be tax deductible. (c) Represents purchase price allocation adjustments for acquisitions deemed preliminary as of the end of the prior year. |
Weighted-average useful life by type of asset | The weighted-average useful life by type of amortizable asset at December 31, 2020 is as follows: (years) Customer relationships 14 Trademarks 14 Patents 15 Other technology 7 |
Future estimated amortization expenses | (millions) 2018 $ 193 2019 206 2020 219 2021 223 2022 219 2023 214 2024 207 2025 200 |
Computations of the basic and diluted EPS | The computations of the basic and diluted earnings attributable to Ecolab per share amounts were as follows: (millions, except per share) 2020 2019 2018 Net income from continuing operations attributable to Ecolab $967.4 $1,425.6 $1,250.3 Net (loss) income from discontinued operations (2,172.5) 133.3 178.8 Net (loss) income attributable to Ecolab ($1,205.1) $1,558.9 $1,429.1 Weighted-average common shares outstanding Basic 287.0 288.1 288.6 Effect of dilutive stock options and units 3.3 4.4 4.2 Diluted 290.3 292.5 292.8 Earnings (loss) attributable to Ecolab per common share Basic EPS Continuing operations $ 3.37 $ 4.95 $ 4.33 Discontinued operations ($ 7.57) $ 0.46 $ 0.62 Earnings (loss) attributable to Ecolab ($ 4.20) $ 5.41 $ 4.95 Diluted EPS Continuing operations $ 3.33 $ 4.87 $ 4.27 Discontinued operations ($ 7.48) $ 0.46 $ 0.61 Earnings (loss) attributable to Ecolab ($ 4.15) $ 5.33 $ 4.88 Anti-dilutive securities excluded from the computation of diluted EPS 1.9 1.1 2.9 Amounts do not necessarily sum due to rounding. |
Other significant accounting policies | Policy Note Fair value measurements 8 Derivatives and hedging transactions 9 Share-based compensation 12 Research and development expenditures 15 Legal contingencies 16 Pension and post-retirement benefit plans 17 Reportable segments 19 |
Schedule of new accounting pronouncements | Standards that are not yet adopted: Required Date of Date of Effect on the Standard Issuance Description Adoption Financial Statements ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes December 2019 Simplifies the accounting for income taxes by removing certain exceptions to the general principles related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and recognition of deferred tax liabilities for outside basis differences. The new standard also simplifies the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the basis of goodwill. January 1, 2021 The adoption of this standard will not have a significant impact on the Company's financial statements. ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting March 2020 LIBOR, a widely used reference rate for pricing financial products is scheduled to be discontinued on December 31, 2021. This standard provides optional expedients and exceptions if certain criteria are met when accounting for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Application of guidance is optional until December 31, 2022 and varies based on expedient elected. The Company has not elected any expedients to date and is currently evaluating any potential future impacts on the Company's financial statements. Standards that were adopted: Date of Date of Effect on the Standard Issuance Description Adoption Financial Statements ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) August 2018 Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments require an entity (customer) in a hosting arrangement that is a service contract to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. January 1, 2020 The Company adopted the prospective transition method. Adoption of this guidance did not have a material impact on the Company's financial statements. ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans August 2018 Modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This includes, but is not limited to, the removal of the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, and the addition of a requirement to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. January 1, 2020 Adoption of the standard did not impact the Company's consolidated balance sheet or income statement. Annual disclosure requirements have been updated to align with the new standard, and changes in disclosure was not material. ASU 2017-04 - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 2017 Simplifies subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. January 1, 2020 The new standard changes the manner of how goodwill impairment losses are measured when the carrying amount of a reporting unit exceeds its fair value. Adoption of this standard impacted the financial statements to the extent the carrying amount of any of the Company's reporting units exceeds their fair values during future goodwill assessments. Credit Losses ASUs: Various Addresses the recognition, measurement, presentation and disclosure of credit losses on trade and reinsurance receivables, loans, debt securities, net investments in leases, off-balance-sheet credit exposures and certain other instruments. Amends guidance on reporting credit losses from an incurred model to an expected model for assets held at amortized cost, such as accounts receivable, loans and held-to-maturity debt securities. Additional disclosures will also be required. January 1, 2020 The Company adopted the standard for expected credit losses using the modified retrospective approach. The effects of adoption were reflected as a $4.3 million reduction to retained earnings as of January 1, 2020 and did not materially impact the Company's consolidated balance sheet, income statement or cash flows. No other new accounting pronouncement issued or effective has had or is expected to have a material impact on the Company’s consolidated financial statements. |
SPECIAL (GAINS) AND CHARGES (Ta
SPECIAL (GAINS) AND CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Activities | |
Special (gains) and charges | (millions) 2020 2019 2018 Cost of sales Restructuring activities $7.4 $20.4 $5.4 Acquisition and integration activities 3.9 7.6 (0.6) COVID-19 activities, net 12.5 - - Other 24.4 10.5 - Cost of sales subtotal 48.2 38.5 4.8 Special (gains) and charges Restructuring activities 71.4 93.2 75.9 Acquisition and integration activities 8.5 5.6 8.8 Disposal and impairment activities 41.4 - - COVID-19 activities, net 23.6 - - Other 34.7 21.4 28.0 Special (gains) and charges subtotal 179.6 120.2 112.7 Operating income subtotal 227.8 158.7 117.5 Interest expense, net 83.8 0.2 0.3 Other (income) expense 0.4 9.5 - Total special (gains) and charges $312.0 $168.4 $117.8 |
Restructuring activity | Employee Termination Asset (millions) Costs Disposals Other Total 2018 Activity Recorded expense $80.2 $- $4.2 $84.4 Net cash payments (22.2) - (1.1) (23.3) Non-cash charges - - - 0.0 Effect of foreign currency translation (0.5) - - (0.5) Restructuring liability, December 31, 2018 57.5 - 3.1 60.6 2019 Activity Recorded expense 102.3 0.2 10.5 113.0 Net cash payments (65.3) 1.2 (10.1) (74.2) Non-cash charges - (1.4) (2.0) (3.4) Effect of foreign currency translation (0.5) - - (0.5) Restructuring liability, December 31, 2019 94.0 - 1.5 95.5 2020 Activity Recorded expense 29.5 7.8 4.5 41.8 Net cash payments (56.8) - (1.0) (57.8) Non-cash charges - (7.8) - (7.8) Effect of foreign currency translation 0.1 - - 0.1 Restructuring liability, December 31, 2020 $66.8 $- $5.0 $71.8 |
Institutional Advancement Program | |
Restructuring Activities | |
Restructuring activity | Employee Termination Asset (millions) Costs Disposals Other Total 2020 Activity Recorded expense (income) and accrual $25.6 $- $9.6 $35.2 Net cash payments (0.9) - (9.6) (10.5) Non-cash net charges - - - - Effect of foreign currency translation - - - - Restructuring liability, December 31, 2020 $24.7 $- $- $24.7 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business acquisitions | |
Schedule of assets acquired and liabilities assumed | (millions) 2020 Tangible assets $54.1 Identifiable intangible assets Customer relationships 147.5 Trademarks 58.6 Acquired technologies and product registrations 47.7 Total assets acquired 307.9 Goodwill 275.7 Total liabilities 98.1 Net consideration transferred to sellers $485.5 |
Other Acquisitions | |
Business acquisitions | |
Schedule of final consideration transferred to acquire all of the acquired entity's stock | (millions) 2020 2019 2018 Net tangible assets (liabilities) acquired and equity method investments $- ($8.0) $30.1 Identifiable intangible assets Customer relationships - 115.7 101.5 Trademarks - 24.1 3.9 Non-compete agreements - - 2.6 Other technology - 48.9 6.5 Total intangible assets - 188.7 114.5 Goodwill - 234.8 81.9 Total aggregate purchase price - 415.5 226.5 Acquisition-related liabilities and contingent considerations - (24.1) (1.5) Net cash paid for acquisitions, including acquisition-related liabilities and contingent considerations $- $391.4 $225.0 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS. | |
Schedule Of Assets And Liabilities Transferred As A Part Of Separation | (millions) Assets: Cash and cash equivalent $60.6 Current assets 810.5 Non-current assets 3,222.3 4,093.4 Liabilities: Current liabilities 313.0 Non-current liabilities 293.7 606.7 Net assets distributed to ChampionX ($3,486.7) Fair value of shares exchanged 1,051.4 Cash received from ChampionX 527.4 Consideration received less net assets (1,907.9) ChampionX cumulative translation adjustment ("CTA") write-off (229.9) Loss on separation ($2,137.8) |
Summary of discontinued operations | (millions) 2020 2019 2018 Product and equipment sales $858.9 $2,109.9 $2,225.0 Service and lease sales 99.6 234.4 221.1 Net sales 958.5 2,344.3 2,446.1 Product and equipment cost of sales 621.7 1,488.9 1,567.9 Service and lease cost of sales 80.4 188.7 182.7 Cost of sales (including special charges) 702.1 1,677.6 1,750.6 Selling, general and administrative expenses 180.5 406.7 462.8 Special (gains) and charges 2,221.7 91.4 14.0 Operating (loss) income (2,145.8) 168.6 218.7 Other (income) expense 0.3 0.7 - Interest expense (income), net 0.2 0.5 1.2 (Loss) income before income taxes (2,146.3) 167.4 217.5 Provision for income taxes 24.0 34.1 43.1 Net (loss) income including noncontrolling interest (2,170.3) 133.3 174.4 Net (loss) income attributable to noncontrolling interest 2.2 - (4.4) Net (loss) income from discontinued operations, net of tax ($2,172.5) $133.3 $178.8 December 31 (millions) 2019 ASSETS Current assets Cash and cash equivalents $67.6 Accounts receivable, net 414.5 Inventories 424.0 Other current assets 44.7 Total current assets 950.8 Property, plant and equipment, net 726.6 Goodwill 1,682.6 Other intangible assets, net 745.0 Operating lease assets 110.8 Other assets 67.8 Total assets $4,283.6 LIABILITIES AND EQUITY Current liabilities Short-term debt $0.1 Accounts payable 209.0 Compensation and benefits 33.8 Income taxes 5.9 Other current liabilities 112.7 Total current liabilities 361.5 Long-term debt 0.4 Postretirement health care and pension benefits 3.6 Deferred income taxes 203.1 Operating lease liabilities 79.2 Other liabilities 15.8 Total liabilities $663.6 |
BALANCE SHEET INFORMATION (Tabl
BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BALANCE SHEET INFORMATION | |
Balance Sheet Information | December 31 December 31 (millions) 2020 2019 Accounts receivable, net Accounts receivable $2,358.1 $2,437.5 Allowance for doubtful accounts (84.3) (55.5) Total $2,273.8 $2,382.0 Inventories Finished goods $789.6 $668.5 Raw materials and parts 511.2 437.9 Inventories at FIFO cost 1,300.8 1,106.4 FIFO cost to LIFO cost difference (15.6) (24.8) Total $1,285.2 $1,081.6 Other current assets Prepaid assets $99.1 $101.8 Taxes receivable 168.6 107.0 Derivative assets 3.2 53.3 Other 27.3 33.1 Total $298.2 $295.2 Property, plant and equipment, net Land $159.7 $158.9 Buildings and leasehold improvements 1,060.0 965.5 Machinery and equipment 1,830.1 1,701.7 Merchandising and customer equipment 2,691.0 2,742.9 Capitalized software 820.8 750.4 Construction in progress 219.8 348.1 6,781.4 6,667.5 Accumulated depreciation (3,656.5) (3,439.2) Total $3,124.9 $3,228.3 Other intangible assets, net Intangible assets not subject to amortization Trade names $1,230.0 $1,230.0 Intangible assets subject to amortization Customer relationships 2,530.9 2,378.9 Trademarks 348.0 285.2 Patents 492.5 459.0 Other technology 240.1 214.5 3,611.5 3,337.6 Accumulated amortization Customer relationships (1,319.1) (1,147.6) Trademarks (155.0) (135.1) Patents (244.6) (221.7) Other technology (145.8) (135.7) (1,864.5) (1,640.1) Net intangible assets subject to amortization 1,747.0 1,697.5 Total $2,977.0 $2,927.5 Other assets Deferred income taxes $163.2 $136.2 Pension 33.0 31.1 Derivative asset - 25.4 Other 279.8 323.6 Total $476.0 $516.3 December 31 December 31 (millions) 2020 2019 Other current liabilities Discounts and rebates $304.1 $331.4 Dividends payable 137.2 135.6 Interest payable 51.7 40.9 Taxes payable, other than income 151.8 102.9 Derivative liabilities 25.8 5.2 Restructuring 98.1 98.5 Contract liability 80.4 76.7 Operating lease liabilities 125.6 122.1 Other 214.2 197.4 Total $1,188.9 $1,110.7 Accumulated other comprehensive loss Unrealized gain (loss) on derivative financial instruments, net of tax ($21.1) ($4.1) Unrecognized pension and postretirement benefit expense, net of tax (935.2) (823.8) Cumulative translation, net of tax (1,038.1) (1,261.8) Total ($1,994.4) ($2,089.7) |
DEBT AND INTEREST (Tables)
DEBT AND INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEBT AND INTEREST | |
Schedule of short-term debt obligations | 2020 2019 Average Average Carrying Interest Carrying Interest (millions) Value Rate Value Rate Short-term debt Commercial paper $- - % $55.1 (0.30) % Notes payable 15.5 7.07 % 24.5 3.53 % Long-term debt, current maturities 1.8 300.9 Total $17.3 $380.5 |
Schedule of long-term debt obligations including current maturities | 2020 2019 Stated Effective Stated Effective Maturity Carrying Interest Interest Carrying Interest Interest (millions) by Year Value Rate Rate Value Rate Rate Long-term debt Public notes (2020 principal amount) Five year 2015 senior notes ( $300 million) 2020 - - % - % 300.0 2.25 % 2.79 % Ten year 2011 senior notes ( $1.02 billion) 2021 - - % - % 1,018.3 4.35 % 4.43 % Five year 2017 senior notes ( $500 million) 2022 498.6 2.38 % 2.55 % 497.8 2.38 % 2.55 % Seven year 2016 senior notes ( $400 million) 2023 399.0 3.25 % 3.49 % 398.5 3.25 % 3.49 % Seven year 2016 senior notes ( €575 million) 2024 682.0 1.00 % 1.18 % 628.4 1.00 % 1.10 % Ten year 2015 senior notes ( €575 million) 2025 682.9 2.63 % 2.85 % 630.0 2.63 % 2.96 % Ten year 2016 senior notes ( $750 million) 2026 745.3 2.70 % 2.93 % 744.5 2.70 % 2.93 % Ten year 2017 senior notes ( $500 million) 2027 496.0 3.25 % 3.37 % 495.4 3.25 % 3.37 % Ten year 2020 senior notes ( $750 million) 2030 765.2 4.80 % 4.64 % - - % - % Ten year 2020 senior notes ( $600 million) 2031 594.4 1.30 % 1.34 % - - % - % Thirty year 2011 senior notes ( $458 million) 2041 452.2 5.50 % 5.56 % 451.9 5.50 % 5.56 % Thirty year 2016 senior notes ( $250 million) 2046 246.4 3.70 % 3.76 % 246.2 3.70 % 3.76 % Thirty year 2017 senior notes ( $700 million) 2047 611.9 3.95 % 4.16 % 610.4 3.95 % 4.15 % Thirty year 2020 senior notes ( $500 million) 2050 490.1 2.13 % 2.15 % - - % - % Private note (2020 principal amount) Series B private placement senior notes ($250 million) 2023 - - % - % 249.6 4.32 % 4.36 % Finance lease obligations and other 7.1 3.0 Total debt 6,671.1 6,274.0 Long-term debt, current maturities (1.8) (300.9) Total long-term debt $6,669.3 $5,973.1 |
Schedule of aggregate annual maturities of long-term debt | (millions) 2021 $ 2 2022 502 2023 400 2024 683 2025 683 |
Schedule of interest expense and interest income | (millions) 2020 2019 2018 Interest expense $304.8 $214.4 $235.5 Interest income (14.6) (23.7) (14.4) Interest expense, net $290.2 $190.7 $221.1 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of the carrying amount and estimated fair value of assets and liabilities measured on recurring basis | December 31, 2020 (millions) Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Assets Foreign currency forward contracts $15.5 $- $15.5 $- Liabilities Foreign currency forward contracts 69.9 - 69.9 - December 31, 2019 (millions) Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Assets Foreign currency forward contracts $83.9 $- $83.9 $- Liabilities Foreign currency forward contracts 10.0 - 10.0 - |
Schedule of carrying amount and estimated fair value of long-term debt | December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Long-term debt, including current maturities $6,671.2 $7,704.4 $6,274.0 $6,861.6 |
DERIVATIVES AND HEDGING TRANS_2
DERIVATIVES AND HEDGING TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES AND HEDGING TRANSACTIONS | |
Gross fair value of the company's outstanding derivative assets and liabilities | (millions) Derivative Assets Derivative Liabilities December 31 December 31 December 31 December 31 (millions) 2020 2019 2020 2019 Derivatives designated as hedging instruments Foreign currency forward contracts $8.1 $67.4 $54.3 $2.1 Derivatives not designated as hedging instruments Foreign currency forward contracts (a) 7.4 16.5 15.6 7.9 Gross value of derivatives 15.5 83.9 69.9 10.0 Gross amounts offset in the Consolidated Balance Sheet (12.3) (4.2) (12.3) (4.2) Net value of derivatives $3.2 $79.7 $57.6 $5.8 (a) Foreign currency forward contract derivatives not designated as hedging instruments includes discontinued operations of $1.0 of derivative assets and $0.6 of derivative liabilities as of December 31, 2019. |
Summary of notional values of outstanding derivatives | Notional Values December 31 December 31 (millions) 2020 2019 Foreign currency forward contracts (a) $ 3,702 $ 4,004 (a) Foreign currency forward contract notional values include discontinued operations of approximately $9 million as of December 31, 2019. |
Revaluation gains and losses on euro notes and forward contracts | (millions) 2020 2019 2018 Revaluation (losses) gains, net of tax ($87.7) $31.4 $57.5 |
Impact on AOCI and earnings from derivative contracts qualified as cash flow hedges | 2020 2019 2018 (millions) COS SG&A Interest COS SG&A Interest COS SG&A Interest Gain (loss) on derivatives in cash flow hedging relationship: Foreign currency forward contracts Amount of gain (loss) reclassified from AOCI to income $10.1 ($108.3) $- $15.4 $39.5 $- ($7.7) $84.1 $- Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value - - 27.5 - - 28.7 - - 37.4 Interest rate swap agreements Amount of gain (loss) reclassified from AOCI to income - - (2.4) - - (0.9) - - (5.5) Gain (loss) on derivatives in fair value hedging relationship: Interest rate swaps Hedged items - - - - - 0.2 - - (4.0) Derivatives designated as hedging instruments - - - - - (0.2) - - 4.0 Gain (loss) on derivatives not designated as hedging instruments: Foreign currency forward contracts Amount of gain (loss) recognized in income (a) - (12.3) - - 30.0 (0.1) - 25.1 5.3 Total gain (loss) of all derivative instruments $10.1 ($120.6) $25.1 $15.4 $69.5 $27.7 ($7.7) $109.2 $37.2 (a) Gain (loss) on derivatives not designated as hedging instruments recognized in income recorded in SG&A includes discontinued operations of $(2.5) , $(5.1) and $(8.7) for the years ended December 31, 2020, 2019 and 2018, respectively. |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION | |
Schedule of other comprehensive income information related to the Company's derivatives and hedging instruments and pension and postretirement benefits | (millions) 2020 2019 2018 Derivative and Hedging Instruments Unrealized (losses) gains on derivative & hedging instruments Amount recognized in AOCI ($93.3) $78.1 $144.4 (Gains) losses reclassified from AOCI into income COS (10.1) (15.4) 7.7 SG&A 108.3 (39.5) (84.1) Interest (income) expense, net (25.1) (27.8) (31.9) 73.1 (82.7) (108.3) Other activity (0.3) 0.8 - Tax impact 3.5 0.4 (7.7) Net of tax ($17.0) ($3.4) $28.4 Pension and Postretirement Benefits Amount recognized in AOCI Current period net actuarial loss and prior service costs ($189.9) ($326.3) ($56.5) Amount reclassified from AOCI into income Amortization of net actuarial loss and prior service costs and benefits 68.1 0.4 28.4 Pension and postretirement benefits changes - - 59.3 (121.8) (325.9) 31.2 Tax impact 43.7 74.3 (13.2) Net of tax ($78.1) ($251.6) $18.0 |
EQUITY COMPENSATION PLANS (Tabl
EQUITY COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY COMPENSATION PLANS | |
Summary of stock option activity and average exercise prices | 2020 2019 2018 Number of Exercise Number of Exercise Number of Exercise Options Price (a) Options Price (a) Options Price (a) Outstanding, beginning of year 9,042,320 $ 121.72 10,516,633 $ 108.28 11,380,013 $ 95.76 Granted 931,750 220.95 879,862 184.31 1,202,314 158.23 Exercised (2,733,130) 97.52 (2,270,374) 82.93 (1,942,192) 64.63 Canceled (91,660) 166.67 (83,801) 143.08 (123,502) 127.02 Separation of ChampionX (346,865) 126.37 - - - - Outstanding, end of year 6,802,415 $ 144.20 9,042,320 $ 121.72 10,516,633 $ 108.28 Exercisable, end of year 5,051,927 $ 125.08 7,048,422 $ 109.34 7,993,297 $ 97.13 Vested and expected to vest, end of year 6,697,614 $ 143.25 (a) Represents weighted average price per share. |
Weighted-average grant-date fair value of options granted and significant assumptions used in determining the underlying fair value of each option grant | 2020 2019 2018 Weighted-average grant-date fair value of options granted at market prices $ 44.16 $ 40.30 $ 37.34 Assumptions Risk-free rate of return 0.5 % 1.6 % 2.8 % Expected life 6 years 6 years 6 years Expected volatility 23.0 % 23.0 % 22.5 % Expected dividend yield 0.9 % 1.0 % 1.2 % |
Summary of non-vested PBRSU awards and restricted stock activity | PBRSU Grant Date RSAs and Grant Date Awards Fair Value (a) RSUs Fair Value (a) December 31, 2017 1,362,836 $ 115.24 249,402 $ 116.66 Granted 284,104 152.59 109,074 138.69 Vested / Earned (324,561) 103.15 (92,032) 113.03 Canceled (55,026) 114.25 (19,975) 115.05 December 31, 2018 1,267,353 $ 126.75 246,469 $ 127.09 Granted 207,704 178.20 102,941 177.38 Vested / Earned (334,351) 114.38 (64,597) 119.08 Canceled (23,808) 135.70 (19,300) 124.77 December 31, 2019 1,116,898 $ 139.83 265,513 $ 149.46 Granted 202,187 215.23 62,693 203.09 Vested / Earned (333,676) 112.78 (81,150) 130.72 Canceled (26,285) 157.32 (15,996) 162.51 Separation of ChampionX (44,494) 142.10 (67,377) 161.82 December 31, 2020 914,630 $ 165.76 163,683 $ 172.92 (a) Represents weighted average price per share. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Income before income taxes | (millions) 2020 2019 2018 United States (U.S.) $100.5 $787.1 $690.1 International 1,060.9 944.4 897.0 Total $1,161.4 $1,731.5 $1,587.1 |
Provision (benefit) for income taxes | (millions) 2020 2019 2018 U.S. federal and state ($43.9) $134.4 $105.1 International 259.8 176.3 93.5 Total current 215.9 310.7 198.6 U.S. federal and state 12.0 37.9 52.7 International (51.3) (60.0) 69.9 Total deferred (39.3) (22.1) 122.6 Provision for income taxes $176.6 $288.6 $321.2 |
Net deferred tax assets and deferred tax liabilities | December 31 (millions) 2020 2019 Deferred tax assets Pension and post-retirement benefits $234.3 $207.4 Other accrued liabilities 154.7 127.5 Lease liability 95.5 104.8 Credit carryforwards 76.6 18.7 Loss carryforwards 63.4 48.0 Share-based compensation 44.8 55.0 Other, net 77.0 57.5 Valuation allowance (45.3) (24.5) Total deferred tax assets 701.0 594.4 Deferred tax liabilities Intangible assets (598.9) (569.9) Property, plant and equipment (317.8) (258.1) Lease asset (95.4) (105.2) Other, net (9.6) (62.3) Total deferred tax liabilities (1,021.7) (995.5) Net deferred tax liabilities balance ($320.7) ($401.1) |
Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate | 2020 2019 2018 Statutory U.S. rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.4 1.8 1.2 Foreign operations (1.3) 5.5 (15.5) R&D credit (1.1) (1.0) (1.0) Change in valuation allowance 0.6 (8.2) 10.3 Excess stock benefits (4.9) (2.4) (1.7) One-time transition tax - (0.2) 4.2 Prior year adjustments - - 2.9 Other, net 0.5 0.2 (1.2) Effective income tax rate 15.2 % 16.7 % 20.2 % |
Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits | (millions) 2020 2019 2018 Balance at beginning of year $27.0 $49.0 $60.6 Additions based on tax positions related to the current year 3.3 2.1 3.0 Additions for tax positions of prior years - 1.0 2.0 Reductions for tax positions of prior years (1.1) (18.4) (8.7) Reductions for tax positions due to statute of limitations (9.1) (5.7) (5.8) Settlements - (0.6) (0.8) Foreign currency translation 0.6 (0.4) (1.3) Balance at end of year $20.7 $27.0 $49.0 |
RENTALS AND LEASES (Tables)
RENTALS AND LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RENTALS AND LEASES | |
Schedule of operating lease cost | (millions) 2020 2019 Operating lease cost* $183.8 $179.8 *Includes immaterial short-term and variable lease costs |
Schedule of future maturity of operating lease liabilities | (millions) 2021 142 2022 110 2023 73 2024 44 2024 29 Thereafter 76 Total lease payments 474 Less: imputed interest 49 Present value of lease liabilities $ 425 |
Schedule of operating leases term and discount rate | December 31 December 31 2020 2019 Weighted-average remaining lease terms (years) 5.52 5.83 Weighted-average discount rate 3.72% 4.00% |
Schedule of other lease information | December 31 December 31 (millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $164.2 $159.0 Leased assets obtained in exchange for new operating lease liabilities 60.4 116.5 |
Schedule of operating lease revenue | (millions) 2020 2019 Operating lease revenue* $356.3 $412.7 |
Schedule of revenue from operating leases for existing contracts | Revenue from operating leases for existing contracts as of December 31, 2020 is as follows: (millions) 2021 331 2022 253 2023 191 2024 122 2024 49 Thereafter 14 Total lease revenue $ 960 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Pension and Postretirement Plans | |
Financial information related to pension and postretirement health care plans | U.S. International U.S. Postretirement Pension (a) Pension Health Care (millions) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $2,728.4 $2,535.9 $1,759.8 $1,585.5 $172.4 $165.7 Projected benefit obligation Projected benefit obligation, beginning of year $2,562.5 $2,241.0 $1,667.6 $1,436.7 $165.7 $147.3 Service cost 68.4 72.8 30.8 30.2 1.2 1.4 Interest cost 70.3 89.0 22.3 31.2 4.4 5.6 Participant contributions - - 2.6 3.0 3.8 3.4 Curtailments and settlements (0.6) 3.4 (34.3) (18.6) - 0.6 Plan amendments - - (1.7) 0.1 - - Actuarial (gain) loss 241.8 336.4 83.6 235.8 12.2 22.2 Other events - - 0.3 0.6 - - Benefits paid (214.0) (180.1) (39.6) (37.6) (14.9) (14.8) Foreign currency translation - - 102.6 (13.8) - - Projected benefit obligation, end of year (b) $2,728.4 $2,562.5 $1,834.2 $1,667.6 $172.4 $165.7 Plan assets Fair value of plan assets, beginning of year $2,292.9 $1,981.4 $1,027.1 $925.6 $6.1 $6.0 Actual returns on plan assets 281.3 366.9 87.7 110.5 0.8 1.1 Company contributions 13.3 129.0 41.3 43.3 13.7 13.8 Participant contributions - - 2.6 3.0 - - Curtailments and settlements (0.6) (4.3) (25.7) (17.6) - - Benefits paid (214.0) (180.1) (39.6) (37.6) (14.9) (14.8) Foreign currency translation - - 54.6 (0.1) - - Fair value of plan assets, end of year (c) $2,372.9 $2,292.9 $1,148.0 $1,027.1 $5.7 $6.1 Funded Status, end of year ($355.5) ($269.6) ($686.2) ($640.5) ($166.7) ($159.6) Amounts recognized in the Consolidated Balance Sheet: Other assets $- $- $37.0 $31.1 $- $- Other current liabilities (14.7) (12.5) (24.0) (23.6) (5.5) (5.2) Postretirement healthcare and pension benefits (340.8) (257.1) (699.2) (647.8) (161.2) (154.4) Net liability ($355.5) ($269.6) ($686.2) ($640.3) ($166.7) ($159.6) Amounts recognized in accumulated other comprehensive loss (income): Unrecognized net actuarial loss (gain) $691.3 $632.4 $595.6 $527.7 $1.3 ($10.5) Unrecognized net prior service costs (benefits) (32.7) (40.0) (1.2) 0.6 - (11.0) Tax (benefit) expense (165.1) (149.1) (151.9) (129.6) (2.0) 3.4 Accumulated other comprehensive loss (income), net of tax (d) $493.5 $443.3 $442.5 $398.7 ($0.7) ($18.1) Change in accumulated other comprehensive loss (income): Amortization of net actuarial (gain) loss ($51.8) ($23.5) ($29.5) ($17.3) ($0.1) $4.1 Amortization of prior service costs 7.4 11.5 (0.2) 1.1 11.0 23.2 Current period net actuarial loss (gain) 113.3 119.0 66.4 185.8 11.9 21.4 Current period prior service costs - - (1.7) 0.1 - - Curtailments and settlements (2.7) (1.5) (2.2) 1.8 - 0.2 Tax (benefit) expense (16.0) (25.7) (22.3) (36.9) (5.4) (11.7) Foreign currency translation - - 33.3 (5.2) - - Other comprehensive loss (income) $50.2 $79.8 $43.8 $129.4 $17.4 $37.2 (a) Includes qualified and non-qualified plans (b) Projected benefit obligation includes discontinued operations of $5.3 as of December 31, 2019. (c) Fair value of the plan assets includes discontinued operations of $0.6 as of December 31, 2019. (d) Accumulated other comprehensive includes discontinued operations of $2.9 as of December 31, 2019. |
Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost | U.S. Post- U.S. International Retirement (millions) Pension (a) Pension Health Care Net actuarial loss $64.8 $28.5 $0.7 Net prior service benefits (6.9) (0.2) - Total $57.9 $28.3 $0.7 (a) Includes qualified and non-qualified plans. |
Aggregate projected benefit obligation, accumulated benefit obligation and fair value of pension plan assets for plans with accumulated benefit obligations in excess of plan assets | December 31, (millions) 2020 2019 Aggregate projected benefit obligation (a) $4,155.4 $3,970.3 Accumulated benefit obligation (b) 4,098.6 3,877.4 Fair value of plan assets (c) 3,085.2 3,040.5 (a) Projected benefit obligation includes discontinued operations of $5.3 as of December 31, 2019. (b) Accumulated benefit obligation includes discontinued operations of $1.1 as of December 31, 2019. (c) Fair value of plan assets includes discontinued operations of $0.6 as of December 31, 2019. |
Net periodic pension and postretirement health care benefit costs | U.S. International U.S. Postretirement Pension (a) Pension Health Care (millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Service cost $68.4 $72.8 $74.5 $30.8 $30.2 $33.2 $1.2 $1.4 $2.7 Interest cost on benefit obligation 70.3 89.0 83.1 22.3 31.2 29.1 4.4 5.6 5.6 Expected return on plan assets (152.9) (149.5) (161.9) (63.9) (59.9) (63.2) (0.4) (0.4) (0.4) Recognition of net actuarial loss (gain) 51.9 23.6 39.0 26.1 16.3 17.2 0.1 (4.1) (1.9) Amortization of prior service benefit (7.4) (11.5) (6.8) (0.1) (0.9) (0.9) (11.0) (23.2) (19.7) Curtailments and settlements 2.5 9.1 - 2.2 (1.9) 2.3 - 0.3 - Total expense (benefit) (b) $32.8 $33.5 $27.9 $17.4 $15.0 $17.7 ($5.7) ($20.4) ($13.7) (a) Includes qualified and non-qualified plans. (b) Service cost includes discontinued operations of $2.5 , $7.8 , and $7.1 for the years ended December 31, 2020, 2019, and 2018, respectively. |
Plan Assumptions | Plan Assumptions U.S. International U.S. Postretirement Pension (a) Pension Health Care (percent) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Weighted-average actuarial assumptions used to determine benefit obligations as of year end: Discount rate 2.48 % 3.20 % 4.34 % 1.13 % 1.52 % 2.49 % 2.37 % 3.16 % 4.29 % Projected salary increase 4.03 4.03 4.03 2.12 2.50 2.46 Weighted-average actuarial assumptions used to determine net cost: Interest credit rate for cash balance plans 1.81 N/A N/A N/A N/A N/A N/A N/A N/A Discount rate 3.20 4.34 3.70 1.84 2.66 2.29 3.16 4.29 3.66 Expected return on plan assets 7.25 7.25 7.75 6.24 6.66 6.67 7.25 7.25 7.75 Projected salary increase 4.03 4.03 4.03 2.81 2.70 2.67 (a) Includes qualified and non-qualified plans. |
Estimated future benefits payments | (millions) All Plans 2021 $ 232 2022 262 2023 247 2024 253 2025 261 2026 - 2030 1,254 |
Pension and Postretirement Health Care Benefit Plans | |
Pension and Postretirement Plans | |
Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans | The fair value of the Company’s U.S. qualified pension plan assets are as follows: Fair Value as of Fair Value as of (millions) December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash $38.3 $- $38.3 $13.2 $- $13.2 Equity securities: Large cap equity 610.0 - 610.0 785.9 - 785.9 Small cap equity 36.5 68.3 104.8 201.7 - 201.7 International equity 95.8 42.9 138.7 350.4 - 350.4 Fixed income: Core fixed income 360.3 327.8 688.1 410.0 - 410.0 High-yield bonds 76.3 - 76.3 107.9 - 107.9 Emerging markets - 55.6 55.6 41.7 - 41.7 Insurance company accounts - - - - 0.3 0.3 Total investments at fair value 1,217.2 494.6 1,711.8 1,910.8 0.3 1,911.1 Investments measured at NAV 666.9 387.9 Total $1,217.2 $494.6 $2,378.7 $1,910.8 $0.3 $2,299.0 The Company had no level 3 assets as part of its U.S. qualified pension plan assets as of December 31, 2020 or 2019. The allocation of the Company’s U.S. qualified pension plan assets plans are as follows: Target Asset Asset Category Allocation Percentage Percentage of Plan Assets December 31 2020 2019 2020 2019 Cash - % - % 2 % 1 % Equity securities: Large cap equity 27 34 26 34 Small cap equity 4 9 4 8 International equity 16 15 15 15 Fixed income: Core fixed income 30 18 29 18 High-yield bonds 4 5 3 5 Emerging markets 2 2 2 2 Other: Real estate 6 6 7 7 Private equity 8 8 9 7 Distressed debt 3 3 3 3 Total 100 % 100 % 100 % 100 % |
International | |
Pension and Postretirement Plans | |
Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans | Fair Value as of Fair Value as of (millions) December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash $11.0 $- $11.0 $7.7 $- $7.7 Equity securities: International equity - 467.0 467.0 - 418.1 418.1 Fixed income: Corporate bonds 9.1 218.6 227.7 8.2 207.6 215.8 Government bonds 6.8 241.9 248.7 12.6 215.8 228.4 Insurance company accounts - 149.6 149.6 - 144.2 144.2 Total investments at fair value 26.9 1,077.1 1,104.0 28.5 985.7 1,014.2 Investments measured at NAV 44.0 12.9 Total $26.9 $1,077.1 $1,148.0 $28.5 $985.7 $1,027.1 The Company had no level 3 assets as part of its international plan assets as of December 31, 2020 or 2019. The allocation of plan assets of the Company’s international plan assets for its defined benefit pension plans are as follows: Percentage Asset Category of Plan Assets December 31 2020 2019 Cash 1 % 1 % Equity securities: International equity 40 41 Fixed income: Corporate bonds 20 21 Government bonds 22 22 Total fixed income 42 43 Other: Insurance contracts 14 14 Debt securities 2 - Real estate 1 1 Total 100 % 100 % |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
Schedule of principal activities, separated by reportable segments and geographic region | (millions) 2020 2019 2018 Global Industrial Product and sold equipment $5,052.3 $5,174.1 $4,992.8 Service and lease equipment 818.5 806.1 814.0 Global Institutional & Specialty Product and sold equipment 2,968.7 3,701.9 3,673.5 Service and lease equipment 584.5 699.6 628.5 Global Healthcare & Life Sciences Product and sold equipment 1,071.4 890.6 877.2 Service and lease equipment 110.5 82.2 62.3 Other Product and sold equipment 274.5 362.4 360.1 Service and lease equipment 809.8 845.1 813.7 Corporate Product and sold equipment 99.7 - - Service and lease equipment 0.3 - - Total Total product and sold equipment $9,466.6 $10,129.0 $9,903.6 Total service and lease equipment 2,323.6 2,433.0 2,318.5 Net sales at public exchange rates by geographic region are as follows: Global Industrial Global Institutional & Specialty (millions) 2020 2019 2018 2020 2019 2018 United States $2,564.3 $2,668.1 $2,564.9 $2,400.4 $3,021.3 $2,899.0 Europe 1,262.6 1,204.2 1,147.9 510.3 622.3 654.0 Asia Pacific 747.2 774.3 752.4 203.9 235.7 235.0 Latin America 491.7 525.8 512.1 128.3 162.2 161.5 Greater China 333.0 325.4 340.9 114.9 119.4 112.8 Canada 157.9 163.4 167.8 155.6 188.4 187.1 India, Middle East and Africa ("IMEA") 314.1 319.0 320.8 39.8 52.2 52.6 Total $5,870.8 $5,980.2 $5,806.8 $3,553.2 $4,401.5 $4,302.0 Global Healthcare & Life Sciences Other (millions) 2020 2019 2018 2020 2019 2018 United States $432.6 $410.3 $395.7 $645.7 $710.8 $676.4 Europe 643.6 513.8 506.4 228.8 268.4 272.1 Asia Pacific 69.8 22.5 12.3 64.8 74.5 77.5 Latin America 6.1 4.5 4.1 50.3 50.2 49.4 Greater China 3.6 2.0 1.4 63.4 66.5 59.4 Canada 6.4 5.2 5.7 16.9 19.1 21.0 IMEA 19.8 14.5 13.9 14.4 18.0 18.0 Total $1,181.9 $972.8 $939.5 $1,084.3 $1,207.5 $1,173.8 Corporate (millions) 2020 2019 2018 United States $75.2 $- $- Europe 4.8 - - Asia Pacific 2.8 - - Latin America 13.1 - - Greater China 0.9 - - Canada 0.7 - - IMEA 2.5 - - Total $100.0 $- $- |
Schedule of contract liability | December 31 December 31 (millions) 2020 2019 Contract liability as of beginning of the year $76.7 $67.7 Revenue recognized in the year from: Amounts included in the contract liability at the beginning of the year (76.7) (67.7) Increases due to billings excluding amounts recognized as revenue during the year ended 79.8 70.2 Business combinations 0.6 6.5 Contract liability as of end of period $80.4 $76.7 |
OPERATING SEGMENTS AND GEOGRA_2
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | |
Schedule of financial information for each of the entity's reportable segments, including the impact of the preceding changes on previously reported full year 2019 net sales and operating income | December 31, 2019 Discontinued 2019 Reported Fixed 2019 Reported Operations and 2019 Revised Valued at 2019 Segment Currency Valued at 2020 Related Allocation Valued at 2020 (millions) Management Rates Change Rate Change Management Rates Charges Management Rates Net Sales Global Industrial $5,569.9 $479.2 $(52.7) $5,996.4 $(1.8) $5,994.6 Global Institutional & Specialty 5,235.5 (800.1) (23.3) 4,412.1 - 4,412.1 Global Healthcare & Life Sciences - 991.7 (12.7) 979.0 - 979.0 Upstream Energy - 2,350.0 2.9 2,352.9 (2,352.9) - Global Energy 3,334.0 (3,334.0) - - - - Other 907.5 313.2 (9.0) 1,211.7 - 1,211.7 Subtotal at fixed currency rates 15,046.9 - (94.8) 14,952.1 (2,354.7) 12,597.4 Effect of foreign currency translation (140.6) - 94.8 (45.8) 10.4 (35.4) Consolidated reported GAAP net sales $14,906.3 $- $- $14,906.3 $(2,344.3) $12,562.0 Operating Income Global Industrial $854.7 $133.4 $(7.5) $980.6 $(77.9) $902.7 Global Institutional & Specialty 1,042.2 (93.4) (1.5) 947.3 (7.5) 939.8 Global Healthcare & Life Sciences - 136.7 (1.6) 135.1 (10.6) 124.5 Upstream Energy - 188.2 (0.3) 187.9 (187.9) - Global Energy 379.1 (379.1) - - - - Other 167.3 14.2 (0.9) 180.6 (13.6) 167.0 Corporate (409.1) - 1.2 (407.9) 128.2 (279.7) Subtotal at fixed currency rates 2,034.2 - (10.6) 2,023.6 (169.3) 1,854.3 Effect of foreign currency translation (20.4) - 10.6 (9.8) 0.7 (9.1) Consolidated reported GAAP operating income $2,013.8 $- $- $2,013.8 $(168.6) $1,845.2 r December 31, 2018 Discontinued 2018 Reported Fixed 2018 Reported Operations and 2018 Revised Valued at 2019 Segment Currency Valued at 2020 Related Allocation Valued at 2020 (millions) Management Rates Change Rate Change Management Rates Charges Management Rates Net Sales Global Industrial $5,220.2 $520.9 ($50.8) $5,690.3 ($1.8) $5,688.5 Global Institutional & Specialty 5,066.0 (788.3) (22.5) 4,255.2 - 4,255.2 Global Healthcare & Life Sciences - 928.2 (12.5) 915.7 - 915.7 Upstream Energy - 2,419.8 2.5 2,422.3 (2,422.3) - Global Energy 3,388.8 (3,388.8) - - - - Other 855.7 308.2 (8.6) 1,155.3 - 1,155.3 Subtotal at fixed currency rates 14,530.7 - (91.9) 14,438.8 (2,424.1) 12,014.7 Effect of foreign currency translation 137.5 - 91.9 229.4 (22.0) 207.4 Consolidated reported GAAP net sales $14,668.2 $- $- $14,668.2 ($2,446.1) $12,222.1 Operating Income Global Industrial $724.4 $116.2 ($6.6) $834.0 ($80.3) $753.7 Global Institutional & Specialty 1,007.3 (100.8) (1.5) 905.0 (3.5) 901.5 Global Healthcare & Life Sciences - 136.8 (1.7) 135.1 (10.7) 124.4 Upstream Energy - 170.7 1.6 172.3 (172.3) - Global Energy 338.5 (338.5) - - - - Other 160.0 15.6 (1.0) 174.6 (10.6) 164.0 Corporate (303.6) - 0.9 (302.7) 60.9 (241.8) Subtotal at fixed currency rates 1,926.6 - (8.3) 1,918.3 (216.5) 1,701.8 Effect of foreign currency translation 20.4 - 8.3 28.7 (2.2) 26.5 Consolidated reported GAAP operating income $1,947.0 $- $- $1,947.0 ($218.7) $1,728.3 |
Schedule of financial information for each of the entity's reportable segments | Net Sales Operating Income (Loss) (millions) 2020 2019 2018 2020 2019 2018 Global Industrial $5,959.9 $5,994.6 $5,688.5 $1,106.0 $902.7 $753.7 Global Institutional & Specialty 3,577.2 4,412.1 4,255.2 321.9 939.8 901.5 Global Healthcare & Life Sciences 1,189.1 979.0 915.7 207.6 124.5 124.4 Other 1,093.3 1,211.7 1,155.3 131.5 167.0 164.0 Corporate 102.4 - - (347.5) (279.7) (241.8) Subtotal at fixed currency 11,921.9 12,597.4 12,014.7 1,419.5 1,854.3 1,701.8 Effect of foreign currency translation (131.7) (35.4) 207.4 (23.8) (9.1) 26.5 Consolidated $11,790.2 $12,562.0 $12,222.1 $1,395.7 $1,845.2 $1,728.3 |
Schedule of net sales and long-lived assets at public exchange rates by geographic region | Long-Lived Assets, net (millions) 2020 2019 United States $6,739.4 $6,990.8 Europe 3,062.0 2,515.2 Asia Pacific, excluding Greater China 846.1 831.1 Latin America 443.0 469.9 IMEA 178.5 177.2 Canada 89.3 93.9 Greater China 1,226.5 1,163.1 Total $12,584.8 $12,241.2 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Quarterly financial data | First Second Third Fourth (millions, except per share) Quarter Quarter Quarter Quarter Year 2020 Net sales $3,020.6 $2,685.7 $3,018.6 $3,065.3 $11,790.2 Operating expenses Cost of sales (a) 1,720.2 1,635.7 1,769.6 1,780.3 6,905.8 Selling, general and administrative expenses 908.3 788.6 802.6 809.6 3,309.1 Special (gains) and charges 15.9 69.4 35.0 59.3 179.6 Operating income 376.2 192.0 411.4 416.1 1,395.7 Other (income) expense (a) (15.4) (15.1) (15.1) (10.3) (55.9) Interest expense, net (a) 48.3 58.7 134.8 48.4 290.2 Income before income taxes 343.3 148.4 291.7 378.0 1,161.4 Provision for income taxes 47.0 14.1 42.4 73.1 176.6 Net income from continuing operations, including noncontrolling interest 296.3 134.3 249.3 304.9 984.8 Net income from continuing operations attributable to noncontrolling interest 4.3 5.4 3.1 4.6 17.4 Net income from continuing operations attributable to Ecolab 292.0 128.9 246.2 300.3 967.4 Net income (loss) from discontinued operations, net of tax (b) (8.6) (2,163.9) - - (2,172.5) Net income (loss) attributable to Ecolab $283.4 ($2,035.0) $246.2 $300.3 ($1,205.1) Earnings (loss) attributable to Ecolab per common share Basic Continuing operations $ 1.01 $ 0.45 $ 0.86 $ 1.05 $ 3.37 Discontinued operations ($ 0.03) ($ 7.51) $ - $ - ($ 7.57) Earnings (loss) attributable to Ecolab $ 0.98 ($ 7.06) $ 0.86 $ 1.05 ($ 4.20) Diluted Continuing operations $ 1.00 $ 0.44 $ 0.85 $ 1.04 $ 3.33 Discontinued operations ($ 0.03) ($ 7.42) $ - $ - ($ 7.48) Earnings (loss) attributable to Ecolab $ 0.97 ($ 6.98) $ 0.85 $ 1.04 ($ 4.15) Weighted-average common shares outstanding Basic 288.8 288.2 285.4 285.6 287.0 Diluted 292.6 291.5 288.4 288.7 290.3 2019 Net sales $2,924.7 $3,169.1 $3,224.0 $3,244.2 $12,562.0 Operating expenses Cost of sales (a) 1,675.5 1,780.3 1,780.9 1,809.1 7,045.8 Selling, general and administrative expenses 896.1 900.0 869.2 885.5 3,550.8 Special (gains) and charges 39.5 24.4 24.9 31.4 120.2 Operating income 313.6 464.4 549.0 518.2 1,845.2 Other (income) expense (21.2) (20.9) (20.8) (14.1) (77.0) Interest expense, net (a) 49.3 49.2 46.1 46.1 190.7 Income before income taxes 285.5 436.1 523.7 486.2 1,731.5 Provision for income taxes 29.9 88.8 83.4 86.5 288.6 Net income from continuing operations, including noncontrolling interest 255.6 347.3 440.3 399.7 1,442.9 Net income from continuing operations attributable to noncontrolling interest 4.0 3.9 4.4 5.0 17.3 Net income from continuing operations attributable to Ecolab 251.6 343.4 435.9 394.7 1,425.6 Net income from discontinued operations, net of tax (b) 44.9 25.2 28.3 34.9 133.3 Net income attributable to Ecolab $296.5 $368.6 $464.2 $429.6 $1,558.9 First Second Third Fourth (millions, except per share) Quarter Quarter Quarter Quarter Year Earnings attributable to Ecolab per common share Basic Continuing operations $ 0.87 $ 1.19 $ 1.51 $ 1.37 $ 4.95 Discontinued operations $ 0.16 $ 0.09 $ 0.10 $ 0.12 $ 0.46 Earnings attributable to Ecolab $ 1.03 $ 1.28 $ 1.61 $ 1.49 $ 5.41 Diluted Continuing operations $ 0.86 $ 1.18 $ 1.49 $ 1.35 $ 4.87 Discontinued operations $ 0.15 $ 0.09 $ 0.10 $ 0.12 $ 0.46 Earnings attributable to Ecolab $ 1.01 $ 1.26 $ 1.59 $ 1.47 $ 5.33 Weighted-average common shares outstanding Basic 288.2 287.6 288.1 288.3 288.1 Diluted 292.3 292.1 292.8 292.6 292.5 Per share amounts do not necessarily sum due to changes in the calculation of shares outstanding for each discrete period and rounding. Gross profit is calculated as net sales minus cost of sales. As discussed in Note 5, the ChampionX separation met the criteria to be reported as discontinued operations and prior periods have been conformed to current period presentation. (a) Cost of sales includes special charges of $9.1 , $27.0 , $9.5 and $2.6 in Q1, Q2, Q3 and Q4 of 2020, respectively and $3.6 , $7.8 , $11.4 and $15.7 in Q1, Q2, Q3 and Q4 of 2019, respectively. Other (income) expense includes special charges of $0.4 and $9.5 in Q4 of 2020 and 2019, respectively. Net interest expense includes special charges of $0.7 and $83.1 in Q2 and Q3 of 2020, respectively and $0.2 in Q1 of 2019. (b) Net income from discontinued operations, net of tax includes noncontrolling interest of $2.5 and ($0.3) in Q1 and Q2 of 2020, respectively and $(0.1) , ($0.3) , $0.7 and $(0.3) in Q1, Q2, Q3 and Q4 of 2019, respectively. |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2020countrysegment | |
Nature of business | |
Number of reportable segments | segment | 3 |
Minimum | |
Nature of business | |
Number of countries in which company delivers comprehensive programs and services | country | 170 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Valuation Allowance and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable and Allowance for Doubtful Accounts | |||
Allowance for doubtful accounts, returns and credits | $ 16 | $ 17 | $ 16 |
Activity in the allowance for doubtful accounts | |||
Allowance for doubtful accounts, beginning balance | 55.5 | 52.4 | 64.8 |
Bad debt expense | 57.7 | 21.5 | 13.7 |
Write-offs | (31.6) | (19.1) | (19.7) |
Other | (1.6) | 0.7 | (6.4) |
Allowance for doubtful accounts, ending balance | 84.3 | $ 55.5 | $ 52.4 |
Accounting Standards Update 2016-13 | Adjustment. | |||
Activity in the allowance for doubtful accounts | |||
Allowance for doubtful accounts, ending balance | $ 4.3 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Valuations | |||
LIFO inventory as percentage of consolidated inventory | 26.00% | 33.00% | |
Property, Plant and Equipment | |||
Total depreciation expense | $ 594.3 | $ 569.1 | $ 535.9 |
Buildings and Leasehold Improvements | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life | 5 years | ||
Buildings and Leasehold Improvements | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life | 40 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life | 20 years | ||
Merchandising and Customer Equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life | 3 years | ||
Merchandising and Customer Equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life | 20 years | ||
Capitalized Software | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life | 3 years | ||
Capitalized Software | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life | 7 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Changes in the carrying amount of goodwill for each of the company's reportable segments | ||||
Number of reporting units | item | 11 | |||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | $ 5,569.1 | $ 5,394.1 | ||
Current year business combinations | 275.7 | 235 | ||
Prior year business combinations | 0.6 | (0.2) | ||
Dispositions | (47.6) | |||
Effect of foreign currency translation | 209.1 | (59.8) | ||
Ending goodwill | 6,006.9 | 5,569.1 | $ 5,394.1 | |
Impairment of goodwill | 0 | |||
Goodwill expected to be tax deductible | 49.4 | |||
Previously Reported | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 5,394.1 | |||
Ending goodwill | 5,394.1 | |||
Nalco | Trademarks | ||||
Changes in the carrying amount of goodwill | ||||
Carrying value of asset subject to impairment testing | $ 1,200 | |||
Impairment of indefinite life intangible asset | 0 | |||
Global Industrial | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 3,923.7 | 3,961.6 | ||
Segment changes | 1,230.8 | |||
Current year business combinations | 275.7 | |||
Prior year business combinations | (0.2) | |||
Dispositions | (47.6) | |||
Effect of foreign currency translation | 136.1 | (37.7) | ||
Ending goodwill | 4,287.9 | 3,923.7 | 3,961.6 | |
Global Industrial | Previously Reported | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 2,730.8 | |||
Ending goodwill | 2,730.8 | |||
Global Institutional & Specialty | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 548.2 | 417.8 | ||
Segment changes | (597.5) | |||
Current year business combinations | 135.3 | |||
Effect of foreign currency translation | 15.9 | (4.9) | ||
Ending goodwill | 564.1 | 548.2 | 417.8 | |
Global Institutional & Specialty | Previously Reported | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 1,015.3 | |||
Ending goodwill | 1,015.3 | |||
Global Healthcare and Life Sciences | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 859.4 | 775.3 | ||
Segment changes | 775.3 | |||
Current year business combinations | 99 | |||
Prior year business combinations | 0.6 | |||
Effect of foreign currency translation | 49.8 | (14.9) | ||
Ending goodwill | 909.8 | 859.4 | 775.3 | |
Global Energy | ||||
Changes in the carrying amount of goodwill | ||||
Segment changes | (1,442.7) | |||
Global Energy | Previously Reported | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 1,442.7 | |||
Ending goodwill | 1,442.7 | |||
Other | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | 237.8 | 239.4 | ||
Segment changes | 34.1 | |||
Current year business combinations | 0.7 | |||
Effect of foreign currency translation | 7.3 | (2.3) | ||
Ending goodwill | $ 245.1 | 237.8 | 239.4 | |
Other | Previously Reported | ||||
Changes in the carrying amount of goodwill | ||||
Beginning goodwill | $ 205.3 | |||
Ending goodwill | $ 205.3 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total amortization expense related to other intangible assets during the last three years and future estimated amortization | |||
Total amortization expense related to other intangible assets | $ 219 | $ 206 | $ 193 |
2021 | 223 | ||
2022 | 219 | ||
2023 | 214 | ||
2024 | 207 | ||
2025 | $ 200 | ||
Customer relationships | |||
Other intangible assets | |||
Weighted-average useful life of other amortizable assets | 14 years | ||
Trademarks | |||
Other intangible assets | |||
Weighted-average useful life of other amortizable assets | 14 years | ||
Patents | |||
Other intangible assets | |||
Weighted-average useful life of other amortizable assets | 15 years | ||
Other technology | |||
Other intangible assets | |||
Weighted-average useful life of other amortizable assets | 7 years | ||
Other intangibles | |||
Other intangible assets | |||
Weighted-average useful life of other amortizable assets | 14 years | 14 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Rentals and Leases (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Lessor, Operating Lease, Description [Abstract] | |
Lessor, Operating Lease, Existence of Lessee Option to Purchase Underlying Asset [true false] | false |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term - Operating | 1 month |
Lessor, Operating Lease, Description [Abstract] | |
Lessor, Operating Lease, Term of Contract | 1 year |
Maximum | |
Lessor, Operating Lease, Description [Abstract] | |
Lessor, Operating Lease, Term of Contract | 5 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Statutory U.S. rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Computations of the basic and diluted earnings attributable to Ecolab per share amounts | |||||||||||
Net income from continuing operations attributable to Ecolab | $ 300.3 | $ 246.2 | $ 128.9 | $ 292 | $ 394.7 | $ 435.9 | $ 343.4 | $ 251.6 | $ 967.4 | $ 1,425.6 | $ 1,250.3 |
Net (loss) income from discontinued operations, net of tax | (2,163.9) | (8.6) | 34.9 | 28.3 | 25.2 | 44.9 | (2,172.5) | 133.3 | 178.8 | ||
Net (loss) income attributable to Ecolab | $ 300.3 | $ 246.2 | $ (2,035) | $ 283.4 | $ 429.6 | $ 464.2 | $ 368.6 | $ 296.5 | $ (1,205.1) | $ 1,558.9 | $ 1,429.1 |
Weighted-average common shares outstanding | |||||||||||
Basic (in shares) | 285.6 | 285.4 | 288.2 | 288.8 | 288.3 | 288.1 | 287.6 | 288.2 | 287 | 288.1 | 288.6 |
Effect of dilutive stock options and units (in shares) | 3.3 | 4.4 | 4.2 | ||||||||
Diluted (in shares) | 288.7 | 288.4 | 291.5 | 292.6 | 292.6 | 292.8 | 292.1 | 292.3 | 290.3 | 292.5 | 292.8 |
Basic EPS | |||||||||||
Continuing operations | $ 1.05 | $ 0.86 | $ 0.45 | $ 1.01 | $ 1.37 | $ 1.51 | $ 1.19 | $ 0.87 | $ 3.37 | $ 4.95 | $ 4.33 |
Discontinued operations | (7.51) | (0.03) | 0.12 | 0.10 | 0.09 | 0.16 | (7.57) | 0.46 | 0.62 | ||
Earnings (loss) attributable to Ecolab | 1.05 | 0.86 | (7.06) | 0.98 | 1.49 | 1.61 | 1.28 | 1.03 | (4.20) | 5.41 | 4.95 |
Diluted EPS | |||||||||||
Continuing operations | 1.04 | 0.85 | 0.44 | 1 | 1.35 | 1.49 | 1.18 | 0.86 | 3.33 | 4.87 | 4.27 |
Discontinued operations | (7.42) | (0.03) | 0.12 | 0.10 | 0.09 | 0.15 | (7.48) | 0.46 | 0.61 | ||
Earnings (loss) attributable to Ecolab | $ 1.04 | $ 0.85 | $ (6.98) | $ 0.97 | $ 1.47 | $ 1.59 | $ 1.26 | $ 1.01 | $ (4.15) | $ 5.33 | $ 4.88 |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1.9 | 1.1 | 2.9 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New accounting guidance, cumulative effect | $ 8,243 | $ 9,993.7 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
New accounting guidance, cumulative effect | $ 4.3 |
SPECIAL (GAINS) AND CHARGES - C
SPECIAL (GAINS) AND CHARGES - Charges Reported on Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Special (gains) and charges | |||||||||||
Other special gains and charges | $ 28 | ||||||||||
Other (income) expense | $ 59.3 | $ 35 | $ 69.4 | $ 15.9 | $ 31.4 | $ 24.9 | $ 24.4 | $ 39.5 | $ 179.6 | $ 120.2 | 112.7 |
Total special (gains) and charges | 312 | 168.4 | 117.8 | ||||||||
Cost of sales | |||||||||||
Special (gains) and charges | |||||||||||
Restructuring activities | 7.4 | 20.4 | 5.4 | ||||||||
Acquisition and integration activities | 3.9 | 7.6 | (0.6) | ||||||||
Other special gains and charges | 24.4 | 10.5 | |||||||||
Other (income) expense | 48.2 | 38.5 | 4.8 | ||||||||
Cost of sales | C O V I D 19 | |||||||||||
Special (gains) and charges | |||||||||||
COVID-19 | 12.5 | ||||||||||
Special (gains) and charges | |||||||||||
Special (gains) and charges | |||||||||||
Restructuring activities | 71.4 | 93.2 | 75.9 | ||||||||
Acquisition and integration activities | 8.5 | 5.6 | 8.8 | ||||||||
Acquisition and integration costs, after tax | 6.9 | 4.1 | 6.1 | ||||||||
Disposal And Impairment Activities | 41.4 | ||||||||||
Other special gains and charges | 34.7 | 21.4 | 28 | ||||||||
Other (income) expense | 179.6 | 120.2 | 112.7 | ||||||||
Special (gains) and charges | C O V I D 19 | |||||||||||
Special (gains) and charges | |||||||||||
COVID-19 | 23.6 | ||||||||||
Operating income subtotal | |||||||||||
Special (gains) and charges | |||||||||||
Other (income) expense | 227.8 | 158.7 | 117.5 | ||||||||
Interest expense | |||||||||||
Special (gains) and charges | |||||||||||
Acquisition and integration activities | 0.7 | 0.2 | 0.3 | ||||||||
Acquisition and integration costs, after tax | 0.1 | 0.2 | |||||||||
Other (income) expense | 83.8 | 0.2 | $ 0.3 | ||||||||
Other (income) expense | |||||||||||
Special (gains) and charges | |||||||||||
Other (income) expense | $ 0.4 | $ 9.5 | 0.4 | 9.5 | |||||||
Other (income) expense, net of tax | $ 0.3 | $ 7.2 |
SPECIAL (GAINS) AND CHARGES - R
SPECIAL (GAINS) AND CHARGES - Restructuring and Non-Restructuring Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring | |||||||||||
Recorded expense | $ 41.8 | $ 113 | $ 84.4 | ||||||||
Net cash payments | (57.8) | (74.2) | (23.3) | ||||||||
Non-cash charges | (7.8) | (3.4) | 0 | ||||||||
Effect of foreign currency translation | 0.1 | (0.5) | (0.5) | ||||||||
Other restructuring information | |||||||||||
Restructuring liability | $ 71.8 | $ 95.5 | 71.8 | 95.5 | 60.6 | ||||||
Restructuring Costs | 7.8 | 29.9 | 40.2 | ||||||||
Other special gains and charges | 28 | ||||||||||
Other special gains and charges, after-tax | 21.2 | ||||||||||
ChampionX Separation | 7.2 | ||||||||||
Special (gains) and charges | 59.3 | $ 35 | $ 69.4 | $ 15.9 | 31.4 | $ 24.9 | $ 24.4 | $ 39.5 | 179.6 | 120.2 | 112.7 |
Non-restructuring Special (Gains) and Charges | |||||||||||
Debt refinancing charges, net of tax | 64 | ||||||||||
C O V I D 19 | |||||||||||
Non-restructuring Special (Gains) and Charges | |||||||||||
Expenses Incurred To Pay Employees Impacted By Pandemic | 57.1 | ||||||||||
Net charges (gains) related to the pandemic | 27.4 | ||||||||||
Medical charges and testing fee | 2.4 | ||||||||||
Gain from government subsidy | (23.4) | ||||||||||
Special (gains) and charges | |||||||||||
Other restructuring information | |||||||||||
Restructuring charges incurred, pre-tax | 71.4 | 93.2 | 75.9 | ||||||||
Business combination advisory and legal fees, pre tax | 8.5 | 5.6 | 8.8 | ||||||||
Business combination advisory and legal fees, after tax | 6.9 | 4.1 | 6.1 | ||||||||
Other special gains and charges | 34.7 | 21.4 | 28 | ||||||||
Other, Ecolab Foundation, pre-tax | 25 | ||||||||||
Other, Ecolab Foundation, after tax | 18.9 | ||||||||||
Special (gains) and charges | 179.6 | 120.2 | 112.7 | ||||||||
Disposal And Impairment Activities | 41.4 | ||||||||||
Disposal And Impairment charges, after tax | 41.5 | ||||||||||
Equity Method Investment, Other than Temporary Impairment | 28.6 | ||||||||||
Special (gains) and charges | Holchem | |||||||||||
Other restructuring information | |||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (12.8) | ||||||||||
Non-restructuring Special (Gains) and Charges | |||||||||||
Gain (loss) on sale of business, before tax | (12.8) | ||||||||||
Gain (loss) on sale of business, net of tax | (12.9) | ||||||||||
Cost of sales | |||||||||||
Other restructuring information | |||||||||||
Restructuring charges incurred, pre-tax | 7.4 | 20.4 | 5.4 | ||||||||
Business combination advisory and legal fees, pre tax | 3.9 | 7.6 | (0.6) | ||||||||
Other special gains and charges | 24.4 | 10.5 | |||||||||
Special (gains) and charges | 48.2 | 38.5 | 4.8 | ||||||||
Interest expense | |||||||||||
Other restructuring information | |||||||||||
Business combination advisory and legal fees, pre tax | 0.7 | 0.2 | 0.3 | ||||||||
Business combination advisory and legal fees, after tax | 0.1 | 0.2 | |||||||||
Special (gains) and charges | 83.8 | 0.2 | 0.3 | ||||||||
Non-restructuring Special (Gains) and Charges | |||||||||||
Debt refinancing charges, pre-tax | 83.1 | ||||||||||
Debt refinancing charges, net of tax | 64 | ||||||||||
Specific Legal Reserve And Related Legal Charges [Member] | |||||||||||
Other restructuring information | |||||||||||
Other special gains and charges | 34.7 | 21.4 | |||||||||
Other special gains and charges, after-tax | 33.9 | 16.2 | |||||||||
Other (income) expense | |||||||||||
Other restructuring information | |||||||||||
Special (gains) and charges | 0.4 | 9.5 | 0.4 | 9.5 | |||||||
Special (gains) and charges, net of tax | 0.4 | ||||||||||
Bioquell | Interest expense | |||||||||||
Other restructuring information | |||||||||||
Business combination advisory and legal fees, after tax | 0.6 | ||||||||||
Employee termination costs | |||||||||||
Restructuring | |||||||||||
Recorded expense | 29.5 | 102.3 | 80.2 | ||||||||
Net cash payments | (56.8) | (65.3) | (22.2) | ||||||||
Effect of foreign currency translation | 0.1 | (0.5) | (0.5) | ||||||||
Other restructuring information | |||||||||||
Restructuring liability | 66.8 | 94 | 66.8 | 94 | 57.5 | ||||||
Asset disposals | |||||||||||
Restructuring | |||||||||||
Recorded expense | 7.8 | 0.2 | |||||||||
Net cash payments | 1.2 | ||||||||||
Non-cash charges | (7.8) | (1.4) | |||||||||
Other | |||||||||||
Restructuring | |||||||||||
Recorded expense | 4.5 | 10.5 | 4.2 | ||||||||
Net cash payments | (1) | (10.1) | (1.1) | ||||||||
Non-cash charges | (2) | ||||||||||
Other restructuring information | |||||||||||
Restructuring liability | 5 | 1.5 | 5 | 1.5 | 3.1 | ||||||
Product and sold equipment | Cost of sales | |||||||||||
Other restructuring information | |||||||||||
Business combination advisory and legal fees, pre tax | 3.9 | 7.6 | |||||||||
Business combination advisory and legal fees, after tax | 3.2 | 5.6 | |||||||||
Other special gains and charges | 24.4 | 10.5 | |||||||||
Other special gains and charges, after-tax | 16 | 7.1 | |||||||||
Special (gains) and charges | 39.3 | 38.5 | 4.8 | ||||||||
Service and lease equipment | Cost of sales | |||||||||||
Other restructuring information | |||||||||||
Special (gains) and charges | 8.9 | ||||||||||
Institutional Advancement Program | |||||||||||
Restructuring | |||||||||||
Recorded expense (income) and accrual | 35.2 | ||||||||||
Recorded expense | 35.2 | ||||||||||
Net cash payments | (10.5) | ||||||||||
Other restructuring information | |||||||||||
Restructuring charge expected to be incurred, pre-tax | 80 | 80 | |||||||||
Restructuring charge expected to be incurred, after tax | 60 | 60 | |||||||||
Expected savings | 50 | 50 | |||||||||
Restructuring charges, after tax | 26.4 | ||||||||||
Restructuring liability | 24.7 | 24.7 | |||||||||
Institutional Advancement Program | Employee termination costs | |||||||||||
Restructuring | |||||||||||
Recorded expense (income) and accrual | 25.6 | ||||||||||
Net cash payments | (0.9) | ||||||||||
Other restructuring information | |||||||||||
Restructuring liability | 24.7 | 24.7 | |||||||||
Institutional Advancement Program | Other | |||||||||||
Restructuring | |||||||||||
Recorded expense (income) and accrual | 9.6 | ||||||||||
Net cash payments | (9.6) | ||||||||||
Accelerate 2020 Restructuring Plan | |||||||||||
Other restructuring information | |||||||||||
Restructuring charge expected to be incurred, pre-tax | 255 | 255 | |||||||||
Restructuring charge expected to be incurred, after tax | 195 | 195 | |||||||||
Accelerate 2020 Restructuring Plan | Special (gains) and charges | |||||||||||
Restructuring | |||||||||||
Recorded expense | 41.8 | 113 | 84.4 | ||||||||
Other restructuring information | |||||||||||
Restructuring charges, after tax | 33 | 86.5 | 64.3 | ||||||||
Restructuring liability | 71.8 | 95.5 | 71.8 | 95.5 | |||||||
Restructuring charges incurred to date, pre-tax | 239.2 | 239.2 | |||||||||
Restructuring charges incurred to date, after-tax | 183.8 | 183.8 | |||||||||
Pension settlements and curtailments | 0.3 | 2 | |||||||||
Pension settlements and curtailments, after tax | 0.2 | 1.5 | |||||||||
Other Restructuring Plan | |||||||||||
Restructuring | |||||||||||
Recorded expense | 1.8 | ||||||||||
Other restructuring information | |||||||||||
Restructuring charges, after tax | 1.2 | ||||||||||
Prior Year Plans | |||||||||||
Restructuring | |||||||||||
Recorded expense | 3.1 | ||||||||||
Other restructuring information | |||||||||||
Restructuring charges, after tax | $ 2.4 | ||||||||||
Restructuring liability | $ 5.9 | $ 7.7 | 5.9 | 7.7 | |||||||
Restructuring net gain | 1.5 | ||||||||||
Restructuring net gain, net of tax | $ 1.1 | ||||||||||
Cash payments | $ 2.7 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisition Summary (Details) € in Millions, $ in Millions | May 11, 2020USD ($) | Jan. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Total assets acquired | $ 188.7 | $ 114.5 | ||||
Goodwill | $ 6,006.9 | 5,569.1 | 5,394.1 | |||
Accounts receivable | $ 30.3 | |||||
Property, plant and equipment | 7.3 | |||||
Inventory | 16.3 | |||||
Deferred tax liabilities | 64.8 | |||||
Current liabilities | $ 33.3 | |||||
Net tangible assets (liabilities) acquired and equity method investments | (8) | 30.1 | ||||
Customer relationships | 115.7 | 101.5 | ||||
Trademarks | 24.1 | 3.9 | ||||
Non-compete agreements | 2.6 | |||||
Other technology | 48.9 | 6.5 | ||||
Goodwill | 234.8 | 81.9 | ||||
Total aggregate purchase price | 415.5 | 226.5 | ||||
Acquisition related liabilities and contingent consideration | 24.1 | 1.5 | ||||
Net cash paid for acquisitions, including acquisition-related liabilities and contingent consideration | 391.4 | 225 | ||||
Prior year business combinations, net intangible assets adjustments | 0.9 | |||||
Prior year business combinations, goodwill adjustments | 0.6 | (0.2) | ||||
Acquisition related liabilities and contingent consideration | 3.5 | |||||
Subsequent event | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 100 | |||||
Number of acquisitions | item | 2 | |||||
Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful lives of identifiable intangible assets acquired | 14 years | |||||
Other technology | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful lives of identifiable intangible assets acquired | 16 years | |||||
Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful lives of identifiable intangible assets acquired | 14 years | |||||
Bioquell | ||||||
Business Acquisition [Line Items] | ||||||
Portion of purchase price transferred to an escrow fund | $ 179.3 | € 140.5 | ||||
Pre-acquisition annual sales | $ 134 | |||||
Lobster Ink | ||||||
Business Acquisition [Line Items] | ||||||
Earn-out term | 3 years | 3 years | ||||
CID Lines | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 506.9 | |||||
Annualized pre-acquisition sales | $ 110 | |||||
Tangible assets | 54.1 | |||||
Total assets acquired | 307.9 | |||||
Goodwill | 275.7 | |||||
Total liabilities | 98.1 | |||||
Net consideration transferred to sellers | 485.5 | |||||
CID Lines | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | 147.5 | |||||
CID Lines | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | 58.6 | |||||
CID Lines | Acquired Technologies And Product Registrations | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 47.7 | |||||
Other Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful lives of identifiable intangible assets acquired | 14 years | 12 years | 12 years | 13 years |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Disposition (Details) - Holchem Group Limited [Member] $ in Millions | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total Consideration | $ 106.6 |
Proceeds from Divestiture of Businesses | 55.4 |
Disposal Group Including Discontinued Operation, Consideration, Notes Receivable | 51.2 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal After Tax | 12.8 |
Disposal Group, Including Discontinued Operation, Revenue | $ 55 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Assets and Liabilities Transferred (Details) - Discontinued Operations, Disposed of By Sale - ChampionX $ in Millions | Jun. 03, 2020USD ($)shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Shares accepted | shares | 4,955,552 |
Number of shares exchanged | shares | 122,200,000 |
Discontinued Operation, Assets And Liabilities Transferred [Abstract] | |
Cash and cash equivalent | $ 60.6 |
Current assets | 810.5 |
Non-Current Assets | 3,222.3 |
Total assets | 4,093.4 |
Current liabilities | 313 |
Non-current liabilities | 293.7 |
Total liabilities | 606.7 |
Net assets distributed to ChampionX | (3,486.7) |
Fair value of shares exchanged | 1,051.4 |
Cash received from ChampionX | 527.4 |
Consideration received less net assets | (1,907.9) |
ChampionX cumulative translation adjustment ("CTA") write-off | (229.9) |
Loss on separation | $ (2,137.8) |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summarized Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Net (loss) income including noncontrolling interest | $ 2,170.3 | $ (133.3) | $ (174.4) | ||||||
Net income (loss) from discontinued operations attributable to noncontrolling interest | 2.2 | 0 | (4.4) | ||||||
Net (loss) income from discontinued operations, net of tax | $ (2,163.9) | $ (8.6) | $ 34.9 | $ 28.3 | $ 25.2 | $ 44.9 | (2,172.5) | 133.3 | 178.8 |
ChampionX | Discontinued Operations, Disposed of By Sale | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Net sales | 958.5 | 2,344.3 | 2,446.1 | ||||||
Cost of sales (including special charges) | 702.1 | 1,677.6 | 1,750.6 | ||||||
Selling, general and administrative expenses | 180.5 | 406.7 | 462.8 | ||||||
Special (gains) and charges | 2,221.7 | 91.4 | 14 | ||||||
Operating (loss) income | (2,145.8) | 168.6 | 218.7 | ||||||
Other (income) expense | 0.3 | 0.7 | |||||||
Interest expense (income), net | 0.2 | 0.5 | 1.2 | ||||||
(Loss) income before income taxes | (2,146.3) | 167.4 | 217.5 | ||||||
Provision for income taxes | 24 | 34.1 | 43.1 | ||||||
Net (loss) income including noncontrolling interest | (2,170.3) | 133.3 | 174.4 | ||||||
Net income (loss) from discontinued operations attributable to noncontrolling interest | 2.2 | (4.4) | |||||||
Net (loss) income from discontinued operations, net of tax | (2,172.5) | 133.3 | 178.8 | ||||||
Special (gains) and charges, including non-controlling interest | 2,221.7 | 91.4 | 18.8 | ||||||
ChampionX | Discontinued Operations, Disposed of By Sale | Product and sold equipment | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Net sales | 858.9 | 2,109.9 | 2,225 | ||||||
Cost of sales (including special charges) | 621.7 | 1,488.9 | 1,567.9 | ||||||
ChampionX | Discontinued Operations, Disposed of By Sale | Service and lease equipment | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Net sales | 99.6 | 234.4 | 221.1 | ||||||
Cost of sales (including special charges) | $ 80.4 | $ 188.7 | $ 182.7 |
DISCONTINUED OPERATIONS - Sum_3
DISCONTINUED OPERATIONS - Summary of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 03, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Total current assets | $ 950.8 | ||
Liabilities: | |||
Total current liabilities | 361.5 | ||
ChampionX | Discontinued Operations, Disposed of By Sale | |||
Assets: | |||
Total assets | $ 0 | ||
Liabilities: | |||
Total liabilities | 0 | ||
Term of post-separation agreement | 18 months | ||
Amount billed for transition services | 14.3 | ||
Period of time post-separation that the entity may transfer or receive certain products | 36 months | ||
Post-separation sales | $ 99.7 | ||
ChampionX | Discontinued Operations, Held-for-sale | |||
Assets: | |||
Cash and cash equivalents | 67.6 | ||
Accounts receivable, net | 414.5 | ||
Inventories | 424 | ||
Other current assets | 44.7 | ||
Total current assets | 950.8 | ||
Property, plant and equipment, net | 726.6 | ||
Goodwill | 1,682.6 | ||
Other intangible assets, net | 745 | ||
Operating lease assets | 110.8 | ||
Other assets | 67.8 | ||
Total assets | 4,283.6 | ||
Liabilities: | |||
Short-term debt | 0.1 | ||
Accounts payable | 209 | ||
Compensation and benefits | 33.8 | ||
Income taxes | 5.9 | ||
Other current liabilities | 112.7 | ||
Total current liabilities | 361.5 | ||
Long-term debt | 0.4 | ||
Postretirement health care and pension benefits | 3.6 | ||
Deferred income taxes | 203.1 | ||
Operating lease liabilities | 79.2 | ||
Other liabilities | 15.8 | ||
Total liabilities | $ 663.6 |
BALANCE SHEET INFORMATION (Deta
BALANCE SHEET INFORMATION (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, net | ||||
Accounts receivable | $ 2,358.1 | $ 2,437.5 | ||
Allowance for doubtful accounts | (84.3) | (55.5) | $ (52.4) | $ (64.8) |
Total | 2,273.8 | 2,382 | ||
Inventories | ||||
Finished goods | 789.6 | 668.5 | ||
Raw materials and parts | 511.2 | 437.9 | ||
Inventories at FIFO cost | 1,300.8 | 1,106.4 | ||
FIFO cost to LIFO cost difference | (15.6) | (24.8) | ||
Total | 1,285.2 | 1,081.6 | ||
Other current assets | ||||
Prepaid assets | 99.1 | 101.8 | ||
Taxes receivable | 168.6 | 107 | ||
Derivative assets | 3.2 | 53.3 | ||
Other current assets | 27.3 | 33.1 | ||
Total | 298.2 | 295.2 | ||
Property, plant and equipment, net | ||||
Land | 159.7 | 158.9 | ||
Buildings and leasehold improvements | 1,060 | 965.5 | ||
Machinery and equipment | 1,830.1 | 1,701.7 | ||
Merchandising and customer equipment | 2,691 | 2,742.9 | ||
Capitalized software | 820.8 | 750.4 | ||
Construction in progress | 219.8 | 348.1 | ||
Property, plant and equipment, gross | 6,781.4 | 6,667.5 | ||
Accumulated depreciation | (3,656.5) | (3,439.2) | ||
Total | 3,124.9 | 3,228.3 | ||
Intangible assets subject to amortization: | ||||
Other intangible assets, gross | 3,611.5 | 3,337.6 | ||
Accumulated amortization | (1,864.5) | (1,640.1) | ||
Net intangible assets subject to amortization | 1,747 | 1,697.5 | ||
Total | 2,977 | 2,927.5 | ||
Other assets | ||||
Deferred income taxes | 163.2 | 136.2 | ||
Pension | 33 | 31.1 | ||
Derivative asset | 25.4 | |||
Other | 279.8 | 323.6 | ||
Total | 476 | 516.3 | ||
Other current liabilities | ||||
Discounts and rebates | 304.1 | 331.4 | ||
Dividends payable | 137.2 | 135.6 | ||
Interest payable | 51.7 | 40.9 | ||
Taxes payable, other than income | 151.8 | 102.9 | ||
Derivative liabilities | 25.8 | 5.2 | ||
Restructuring | 98.1 | 98.5 | ||
Contract liability | 80.4 | 76.7 | ||
Operating lease liabilities | $ 125.6 | $ 122.1 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total | Total | ||
Other | $ 214.2 | $ 197.4 | ||
Total | 1,188.9 | 1,110.7 | ||
Accumulated other comprehensive loss | ||||
Unrealized gain (loss) on derivative financial instruments, net of tax | (21.1) | (4.1) | ||
Unrecognized pension and postretirement benefit expense, net of tax | (935.2) | (823.8) | ||
Cumulative translation, net of tax | (1,038.1) | (1,261.8) | ||
Total | (1,994.4) | (2,089.7) | ||
Customer relationships | ||||
Intangible assets subject to amortization: | ||||
Other intangible assets, gross | 2,530.9 | 2,378.9 | ||
Accumulated amortization | (1,319.1) | (1,147.6) | ||
Trademarks | ||||
Intangible assets subject to amortization: | ||||
Other intangible assets, gross | 348 | 285.2 | ||
Accumulated amortization | (155) | (135.1) | ||
Patents | ||||
Intangible assets subject to amortization: | ||||
Other intangible assets, gross | 492.5 | 459 | ||
Accumulated amortization | (244.6) | (221.7) | ||
Other technology | ||||
Intangible assets subject to amortization: | ||||
Other intangible assets, gross | 240.1 | 214.5 | ||
Accumulated amortization | (145.8) | (135.7) | ||
Trade names | ||||
Intangible assets not subject to amortization: | ||||
Other intangible assets, gross | $ 1,230 | $ 1,230 |
DEBT AND INTEREST (Details)
DEBT AND INTEREST (Details) € in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) |
Components of the company's debt obligations | |||
Long-term debt, current maturities | $ 1.8 | $ 300.9 | |
Short-term debt including current maturities of long-term debt | 17.3 | 380.5 | |
Amount outstanding under the credit agreement | 0 | 0 | |
Commercial paper. | |||
Components of the company's debt obligations | |||
Short-term debt | $ 55.1 | ||
Maximum borrowing capacity, commercial paper | 2,000 | ||
Average interest rate (as a percent) | (0.30%) | (0.30%) | |
U.S. commercial paper program | |||
Components of the company's debt obligations | |||
Maximum borrowing capacity, commercial paper | 2,000 | ||
Outstanding commercial paper | 0 | ||
European commercial paper | |||
Components of the company's debt obligations | |||
Maximum borrowing capacity, commercial paper | 2,000 | ||
Outstanding commercial paper | 0 | $ 55.1 | € 50 |
Notes payable | |||
Components of the company's debt obligations | |||
Short-term debt | $ 15.5 | $ 24.5 | |
Average interest rate (as a percent) | 7.07% | 3.53% | 3.53% |
Remaining capacity | $ 1,734 | $ 1,378 | |
Multi-Currency Revolving Credit Facility | |||
Components of the company's debt obligations | |||
Maximum borrowing capacity under the credit agreement | $ 2,000 |
DEBT AND INTEREST - Other Debt
DEBT AND INTEREST - Other Debt Information (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | May 11, 2020USD ($) | |
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 6,671.1 | $ 6,274 | $ 6,671.1 | $ 6,274 | ||||||||||
Long-term debt, current maturities | (1.8) | (300.9) | (1.8) | (300.9) | ||||||||||
Long-term debt | 6,669.3 | 5,973.1 | 6,669.3 | 5,973.1 | ||||||||||
Credit facility amount | 0 | 0 | 0 | 0 | ||||||||||
Debt refinancing charges, net of tax | 64 | |||||||||||||
Components of the aggregate purchase prices of the completed acquisitions | ||||||||||||||
Property, plant and equipment | $ 7.3 | |||||||||||||
Aggregate annual maturities of long-term debt | ||||||||||||||
2021 | 2 | 2 | ||||||||||||
2022 | 502 | 502 | ||||||||||||
2023 | 400 | 400 | ||||||||||||
2024 | 683 | 683 | ||||||||||||
2025 | 683 | 683 | ||||||||||||
Interest | ||||||||||||||
Interest expense | 304.8 | 214.4 | $ 235.5 | |||||||||||
Interest income | (14.6) | (23.7) | (14.4) | |||||||||||
Interest expense, net | 48.4 | $ 134.8 | $ 58.7 | $ 48.3 | 46.1 | $ 46.1 | $ 49.2 | $ 49.3 | 290.2 | 190.7 | $ 221.1 | |||
Debt extinguishment charges | (77.1) | |||||||||||||
Subsequent event | ||||||||||||||
Components of the aggregate purchase prices of the completed acquisitions | ||||||||||||||
Total consideration | $ 100 | |||||||||||||
Interest expense | ||||||||||||||
Debt instrument | ||||||||||||||
Debt refinancing charges, pre-tax | 83.1 | |||||||||||||
Debt refinancing charges, net of tax | $ 64 | |||||||||||||
Public Notes | ||||||||||||||
Debt instrument | ||||||||||||||
Principal outstanding payable at time of prepayment of notes (as a percent) | 101.00% | |||||||||||||
Ten year 2011 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | 1,018.3 | 1,018.3 | ||||||||||||
Aggregate principal amount | $ 1,020 | $ 1,020 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 4.35% | 4.35% | ||||||||||||
Effective interest rate (as a percent) | 4.43% | 4.43% | ||||||||||||
Debt instrument, term | 10 years | |||||||||||||
Thirty year 2011 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | 452.2 | $ 451.9 | $ 452.2 | $ 451.9 | ||||||||||
Aggregate principal amount | $ 458 | $ 458 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | |||||||||
Effective interest rate (as a percent) | 5.56% | 5.56% | 5.56% | 5.56% | 5.56% | |||||||||
Debt instrument, term | 30 years | |||||||||||||
Five year 2017 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 498.6 | $ 497.8 | $ 498.6 | $ 497.8 | ||||||||||
Aggregate principal amount | $ 500 | $ 500 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 2.38% | 2.38% | 2.38% | 2.38% | 2.38% | |||||||||
Effective interest rate (as a percent) | 2.55% | 2.55% | 2.55% | 2.55% | 2.55% | |||||||||
Debt instrument, term | 5 years | |||||||||||||
Ten year 2017 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 496 | $ 495.4 | $ 496 | $ 495.4 | ||||||||||
Aggregate principal amount | $ 500 | $ 500 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||
Effective interest rate (as a percent) | 3.37% | 3.37% | 3.37% | 3.37% | 3.37% | |||||||||
Debt instrument, term | 10 years | |||||||||||||
Thirty year 2017 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 611.9 | $ 610.4 | $ 611.9 | $ 610.4 | ||||||||||
Aggregate principal amount | $ 700 | $ 700 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | |||||||||
Effective interest rate (as a percent) | 4.16% | 4.15% | 4.16% | 4.15% | 4.16% | |||||||||
Debt instrument, term | 30 years | |||||||||||||
Thirty year 2020 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 490.1 | $ 490.1 | ||||||||||||
Aggregate principal amount | $ 500 | $ 500 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 2.13% | 2.13% | 2.13% | |||||||||||
Effective interest rate (as a percent) | 2.15% | 2.15% | 2.15% | |||||||||||
Debt instrument, term | 30 years | |||||||||||||
Ten year 2020 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 765.2 | $ 765.2 | ||||||||||||
Aggregate principal amount | $ 750 | $ 750 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 4.80% | 4.80% | 4.80% | |||||||||||
Effective interest rate (as a percent) | 4.64% | 4.64% | 4.64% | |||||||||||
Debt instrument, term | 10 years | |||||||||||||
Ten year 2020 senior notes, maturing in 2031 | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 594.4 | $ 594.4 | ||||||||||||
Aggregate principal amount | $ 600 | $ 600 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 1.30% | 1.30% | 1.30% | |||||||||||
Effective interest rate (as a percent) | 1.34% | 1.34% | 1.34% | |||||||||||
Debt instrument, term | 10 years | |||||||||||||
Seven year 2016 senior Notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 399 | $ 398.5 | $ 399 | $ 398.5 | ||||||||||
Aggregate principal amount | $ 400 | $ 400 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||
Effective interest rate (as a percent) | 3.49% | 3.49% | 3.49% | 3.49% | 3.49% | |||||||||
Debt instrument, term | 7 years | |||||||||||||
Seven year 2016 senior euro notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 682 | $ 628.4 | $ 682 | $ 628.4 | ||||||||||
Aggregate principal amount | € | € 575 | |||||||||||||
AVERAGE INTEREST RATE (as a percent) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||
Effective interest rate (as a percent) | 1.18% | 1.10% | 1.18% | 1.10% | 1.18% | |||||||||
Debt instrument, term | 7 years | |||||||||||||
Ten year 2016 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 745.3 | $ 744.5 | $ 745.3 | $ 744.5 | ||||||||||
Aggregate principal amount | $ 750 | $ 750 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 2.70% | 2.70% | 2.70% | 2.70% | 2.70% | |||||||||
Effective interest rate (as a percent) | 2.93% | 2.93% | 2.93% | 2.93% | 2.93% | |||||||||
Debt instrument, term | 10 years | |||||||||||||
Thirty year 2016 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 246.4 | $ 246.2 | $ 246.4 | $ 246.2 | ||||||||||
Aggregate principal amount | $ 250 | $ 250 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 3.70% | 3.70% | 3.70% | 3.70% | 3.70% | |||||||||
Effective interest rate (as a percent) | 3.76% | 3.76% | 3.76% | 3.76% | 3.76% | |||||||||
Debt instrument, term | 30 years | |||||||||||||
Five year 2015 senior notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 300 | $ 300 | ||||||||||||
Aggregate principal amount | $ 300 | $ 300 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 2.25% | 2.25% | ||||||||||||
Effective interest rate (as a percent) | 2.79% | 2.79% | ||||||||||||
Debt instrument, term | 5 years | |||||||||||||
Ten Year 2015 senior euro notes | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 682.9 | $ 630 | $ 682.9 | $ 630 | ||||||||||
Aggregate principal amount | € | € 575 | |||||||||||||
AVERAGE INTEREST RATE (as a percent) | 2.63% | 2.63% | 2.63% | 2.63% | 2.63% | |||||||||
Effective interest rate (as a percent) | 2.85% | 2.96% | 2.85% | 2.96% | 2.85% | |||||||||
Debt instrument, term | 10 years | |||||||||||||
Series B private placement senior notes due 2023 | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 249.6 | $ 249.6 | ||||||||||||
Aggregate principal amount | $ 250 | $ 250 | ||||||||||||
AVERAGE INTEREST RATE (as a percent) | 4.32% | 4.32% | ||||||||||||
Effective interest rate (as a percent) | 4.36% | 4.36% | ||||||||||||
Other | ||||||||||||||
Debt instrument | ||||||||||||||
CARRYING VALUE | $ 7.1 | $ 3 | $ 7.1 | $ 3 | ||||||||||
364-day Revolving Credit Agreement | ||||||||||||||
Debt instrument | ||||||||||||||
Maximum borrowing capacity under the credit agreement | 500 | 500 | ||||||||||||
Credit facility amount | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Assets: | ||
Foreign currency forward contracts | $ 15.5 | $ 83.9 |
Liabilities: | ||
Foreign currency forward contracts | 69.9 | 10 |
Level 2 | ||
Assets: | ||
Foreign currency forward contracts | 15.5 | 83.9 |
Liabilities: | ||
Foreign currency forward contracts | $ 69.9 | $ 10 |
FAIR VALUE MEASUREMENTS - Long-
FAIR VALUE MEASUREMENTS - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Carrying amount and fair value of financial instruments | ||
Long-term debt (including current maturities) | $ 6,671.2 | $ 6,274 |
Fair Value | ||
Carrying amount and fair value of financial instruments | ||
Long-term debt (including current maturities) | $ 7,704.4 | $ 6,861.6 |
DERIVATIVES AND HEDGING TRANS_3
DERIVATIVES AND HEDGING TRANSACTIONS - Derivative Positions Summary (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Derivatives | ||
Gross value of derivatives | $ 15.5 | $ 83.9 |
Gross amounts offset in the Consolidated Balance Sheet | (12.3) | (4.2) |
Net value of derivatives presented in the Consolidated Balance Sheet | 3.2 | 79.7 |
Liability Derivatives | ||
Gross value of derivatives | 69.9 | 10 |
Gross amounts offset in the Consolidated Balance Sheet | (12.3) | (4.2) |
Net value of derivatives presented in the Consolidated Balance Sheet | 57.6 | 5.8 |
Cash collateral received | 0 | |
Cash collateral pledged | 0 | |
Foreign currency forward contracts. | ||
Liability Derivatives | ||
Notional values | 3,702 | 4,004 |
Derivatives designated as hedging instruments | Foreign currency forward contracts. | ||
Asset Derivatives | ||
Gross value of derivatives | 8.1 | 67.4 |
Liability Derivatives | ||
Gross value of derivatives | 54.3 | 2.1 |
Derivatives not designated as hedging instruments | Foreign currency forward contracts. | ||
Asset Derivatives | ||
Gross value of derivatives | 7.4 | 16.5 |
Liability Derivatives | ||
Gross value of derivatives | $ 15.6 | 7.9 |
Discontinued Operations | Foreign currency forward contracts. | ||
Liability Derivatives | ||
Notional values | 9 | |
Discontinued Operations | Derivatives not designated as hedging instruments | Foreign currency forward contracts. | ||
Asset Derivatives | ||
Gross value of derivatives | 1 | |
Liability Derivatives | ||
Gross value of derivatives | $ 0.6 |
DERIVATIVES AND HEDGING TRANS_4
DERIVATIVES AND HEDGING TRANSACTIONS - Information by Type of Derivative and Hedging Activities (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Net Investment Hedges | ||||
Revaluation (losses) gains, net of tax | $ (87.7) | $ 31.4 | $ 57.5 | |
Derivative Summary | ||||
Maximum period for hedged transactions | 3 years | |||
Cash collateral received | $ 0 | |||
Cost of sales | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | 10.1 | 15.4 | (7.7) | |
Selling, general and administrative expenses | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | (120.6) | 69.5 | 109.2 | |
Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | 25.1 | 27.7 | 37.2 | |
Foreign currency forward contracts. | ||||
Net Investment Hedges | ||||
Notional values | 3,702 | 4,004 | ||
Foreign currency forward contracts. | Derivatives not designated as hedging instruments | Selling, general and administrative expenses | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | (12.3) | 30 | 25.1 | |
Foreign currency forward contracts. | Derivatives not designated as hedging instruments | Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | (0.1) | 5.3 | ||
Cash Flow Hedges | Foreign currency forward contracts. | Derivatives designated as hedging instruments | Cost of sales | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) reclassified from AOCI into income (effective portion) | 10.1 | 15.4 | (7.7) | |
Cash Flow Hedges | Foreign currency forward contracts. | Derivatives designated as hedging instruments | Selling, general and administrative expenses | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) reclassified from AOCI into income (effective portion) | (108.3) | 39.5 | 84.1 | |
Cash Flow Hedges | Foreign currency forward contracts. | Derivatives designated as hedging instruments | Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value | 27.5 | 28.7 | 37.4 | |
Gain (loss) recognized in income (ineffective portion) | 27.5 | 28.7 | 37.4 | |
Cash Flow Hedges | Interest rate swaps | Derivatives designated as hedging instruments | Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) reclassified from AOCI into income (effective portion) | (2.4) | (0.9) | (5.5) | |
Fair Value Hedges | Interest rate swaps | Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on hedged item recognized in income | 0.2 | (4) | ||
Fair Value Hedges | Interest rate swaps | Derivatives designated as hedging instruments | Interest expense, net | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivative recognized in income | (0.2) | 4 | ||
Net Investment Hedges | ||||
Net Investment Hedges | ||||
Revaluation (losses) gains, net of tax | (87.7) | 31.4 | 57.5 | |
Net Investment Hedges | Senior euro notes | ||||
Net Investment Hedges | ||||
Notional values | 1,365 | € 1,150 | ||
Discontinued Operations | Derivatives not designated as hedging instruments | Selling, general and administrative expenses | ||||
Impact on AOCI and earnings from derivative contracts | ||||
Gain (loss) on derivatives | $ (2.5) | (5.1) | $ (8.7) | |
Discontinued Operations | Foreign currency forward contracts. | ||||
Net Investment Hedges | ||||
Notional values | $ 9 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification adjustments | |||||||||||
Cost of sales | $ (1,780.3) | $ (1,769.6) | $ (1,635.7) | $ (1,720.2) | $ (1,809.1) | $ (1,780.9) | $ (1,780.3) | $ (1,675.5) | $ (6,905.8) | $ (7,045.8) | $ (6,875.3) |
SG&A | (809.6) | (802.6) | (788.6) | (908.3) | (885.5) | (869.2) | (900) | (896.1) | (3,309.1) | (3,550.8) | (3,505.8) |
Interest expense, net (a) | $ (48.4) | $ (134.8) | $ (58.7) | $ (48.3) | $ (46.1) | $ (46.1) | $ (49.2) | $ (49.3) | (290.2) | (190.7) | (221.1) |
Subtotal | 97.1 | (268.7) | (119.4) | ||||||||
Derivative & Hedging Instruments. | |||||||||||
Reclassification adjustments | |||||||||||
Amount recognized in AOCI | (93.3) | 78.1 | 144.4 | ||||||||
Other activity | (0.3) | 0.8 | |||||||||
Tax impact | 3.5 | 0.4 | (7.7) | ||||||||
Subtotal | (17) | (3.4) | 28.4 | ||||||||
Derivative & Hedging Instruments. | Amount reclassified from AOCI | |||||||||||
Reclassification adjustments | |||||||||||
Cost of sales | (10.1) | (15.4) | 7.7 | ||||||||
SG&A | 108.3 | (39.5) | (84.1) | ||||||||
Interest expense, net (a) | (25.1) | (27.8) | (31.9) | ||||||||
(Gains) losses reclassified from AOCI into income | 73.1 | (82.7) | (108.3) | ||||||||
Pension & Postretirement Benefits. | |||||||||||
Reclassification adjustments | |||||||||||
Amount recognized in AOCI | (189.9) | (326.3) | (56.5) | ||||||||
Other Comprehensive Income (Loss), before Tax | (121.8) | (325.9) | 31.2 | ||||||||
Tax impact | 43.7 | 74.3 | (13.2) | ||||||||
Subtotal | (78.1) | (251.6) | 18 | ||||||||
Actuarial losses | Amount reclassified from AOCI | |||||||||||
Reclassification adjustments | |||||||||||
(Gains) losses reclassified from AOCI into income | $ 68.1 | $ 0.4 | 28.4 | ||||||||
Postretirement benefits changes | Amount reclassified from AOCI | |||||||||||
Reclassification adjustments | |||||||||||
Amount recognized in AOCI | $ 59.3 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - $ / shares | Jun. 03, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2015 |
Shareholder's Equity | |||||
Common stock, par value per share (in dollars per share) | $ 1 | $ 1 | |||
Common stock, shares authorized | 800,000,000 | 800,000,000 | |||
Dividends declared per common share (in dollars per share) | $ 1.89 | $ 1.85 | $ 1.69 | ||
Discontinued Operations, Disposed of By Sale | ChampionX | |||||
Shareholder's Equity | |||||
Shares accepted | 4,955,552 | ||||
Number of shares exchanged | 122,200,000 | ||||
Common Stock | |||||
Shareholder's Equity | |||||
Common stock, par value per share (in dollars per share) | $ 1 | $ 1 | $ 1 | ||
Common stock, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | ||
Dividends declared per common share (in dollars per share) | $ 1.89 | $ 1.85 | $ 1.69 | ||
Common stock, shares authorized to be repurchased | 20,000,000 | ||||
Reacquired shares (in shares) | 761,245 | 1,986,241 | |||
Remaining shares authorized to be repurchased | 6,239,946 | ||||
Number of shares reacquired through the open market | 565,064 | 1,846,384 | |||
Number of shares that have been repurchased through the exercise of stock options and vesting of stock awards | 196,181 | 139,857 | |||
Undesignated preferred stock | |||||
Shareholder's Equity | |||||
Preferred stock, shares authorized | 15,000,000 |
EQUITY COMPENSATION PLANS (Deta
EQUITY COMPENSATION PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EQUITY COMPENSATION PLANS | |||
Common shares available for grant (in shares) | 8,644,262 | 9,029,645 | 10,152,863 |
Value of awards granted, portion from stock options under current program (as a percent) | 50.00% | ||
Value of awards granted, portion from PBRSUs under current program (as a percent) | 50.00% | ||
Total compensation expense related to all share-based compensation plans | $ 81 | $ 84 | $ 88 |
Total compensation expense, net of tax benefit | 68 | $ 70 | $ 73 |
Total measured but unrecognized compensation expense related to non-vested share-based compensation arrangements granted under all of the company's plans | $ 120 | ||
Weighted-average period over which unrecognized compensation costs on nonvested awards expected to be recognized | 2 years 1 month 6 days |
EQUITY COMPENSATION PLANS - Sto
EQUITY COMPENSATION PLANS - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock incentive and option plans | |||
Stock option expiration period | 10 years | ||
Stock option vesting period | 3 years | ||
SHARES | |||
Outstanding, beginning of year (in shares) | 9,042,320 | 10,516,633 | 11,380,013 |
Granted (in shares) | 931,750 | 879,862 | 1,202,314 |
Exercised (in shares) | (2,733,130) | (2,270,374) | (1,942,192) |
Canceled (in shares) | (91,660) | (83,801) | (123,502) |
Separation of ChampionX | (346,865) | ||
Outstanding, end of year (in shares) | 6,802,415 | 9,042,320 | 10,516,633 |
Exercisable, end of year (in shares) | 5,051,927 | 7,048,422 | 7,993,297 |
Vested and expected to vest, end of year (in shares) | 6,697,614 | ||
AVERAGE PRICE PER SHARE | |||
Outstanding, beginning of year (in dollars per share) | $ 121.72 | $ 108.28 | $ 95.76 |
Granted (in dollars per share) | 220.95 | 184.31 | 158.23 |
Exercised (in dollars per share) | 97.52 | 82.93 | 64.63 |
Canceled (in dollars per share) | 166.67 | 143.08 | 127.02 |
Separation of ChampionX (in dollars per share) | 126.37 | ||
Outstanding, end of year (in dollars per share) | 144.20 | 121.72 | 108.28 |
Exercisable, end of year (in dollars per share) | 125.08 | $ 109.34 | $ 97.13 |
Vested and expected to vest, end of year (in dollars per shares) | $ 143.25 | ||
Total intrinsic value of options exercised during period | $ 299 | $ 227 | $ 161 |
Total aggregate intrinsic value of in-the-money options outstanding | $ 492 | ||
Weighted-average remaining contractual life of options outstanding | 6 years 7 months 6 days | ||
Total aggregate intrinsic value of in-the-money options exercisable | $ 458 | ||
Weighted-average remaining contractual life of options exercisable | 5 years 8 months 12 days | ||
Aggregate intrinsic value of vested and expected to vest options outstanding | $ 491 | ||
Weighted-average remaining contractual life of vested and expected to vest options outstanding | 6 years 6 months |
EQUITY COMPENSATION PLANS - Fai
EQUITY COMPENSATION PLANS - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | |||
Assumptions | |||
Weighted average grant date fair value of options granted at market prices (in dollars per share) | $ 44.16 | $ 40.30 | $ 37.34 |
Risk-free rate of return (as a percent) | 0.50% | 1.60% | 2.80% |
Expected life | 6 years | 6 years | 6 years |
Expected volatility (as a percent) | 23.00% | 23.00% | 22.50% |
Expected dividend yield (as a percent) | 0.90% | 1.00% | 1.20% |
Vesting period | 3 years | ||
Stock Options | Minimum | |||
Assumptions | |||
Yield curve of U.S. treasury rates | 1 month | ||
Stock Options | Maximum | |||
Assumptions | |||
Yield curve of U.S. treasury rates | 10 years | ||
PBRSU Awards | |||
Assumptions | |||
Period of requisite continued service | 3 years | ||
Common stock issuable for each vested stock award (in shares) | 1 | ||
Vesting period | 3 years | ||
Restricted Stock Awards and Units | Minimum | |||
Assumptions | |||
Vesting period | 12 months | ||
Restricted Stock Awards and Units | Maximum | |||
Assumptions | |||
Vesting period | 60 months |
EQUITY COMPENSATION PLANS - Oth
EQUITY COMPENSATION PLANS - Other Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PBRSU Awards | |||
Summary of PBRSU awards and restricted stock activity: | |||
Stock awards outstanding, at the beginning of period (in shares) | 1,116,898 | 1,267,353 | 1,362,836 |
Stock awards granted (in shares) | 202,187 | 207,704 | 284,104 |
Stock awards vested/ earned (in shares) | (333,676) | (334,351) | (324,561) |
Stock awards cancelled (in shares) | (26,285) | (23,808) | (55,026) |
Separation of ChampionX | (44,494) | ||
Stock awards outstanding, at the end of period (in shares) | 914,630 | 1,116,898 | 1,267,353 |
Weighted-average fair value at grant-date of stock awards outstanding, at the beginning of period (in dollars per share) | $ 139.83 | $ 126.75 | $ 115.24 |
Weighted-average fair value at grant-date of stock awards granted (in dollars per share) | 215.23 | 178.20 | 152.59 |
Weighted-average fair value at grant-date of stock awards vested/earned (in dollars per share) | 112.78 | 114.38 | 103.15 |
Weighted-average fair value at grant-date of stock awards cancelled (in dollars per share) | 157.32 | 135.70 | 114.25 |
Weighted-average fair value at grant-date of stock awards Separation of ChampionX (in dollars per share) | 142.10 | ||
Weighted-average fair value at grant-date of stock awards outstanding, at the end of period (in dollars per share) | $ 165.76 | $ 139.83 | $ 126.75 |
Restricted Stock Awards and Units | |||
Summary of PBRSU awards and restricted stock activity: | |||
Stock awards outstanding, at the beginning of period (in shares) | 265,513 | 246,469 | 249,402 |
Stock awards granted (in shares) | 62,693 | 102,941 | 109,074 |
Stock awards vested/ earned (in shares) | (81,150) | (64,597) | (92,032) |
Stock awards cancelled (in shares) | (15,996) | (19,300) | (19,975) |
Separation of ChampionX | (67,377) | ||
Stock awards outstanding, at the end of period (in shares) | 163,683 | 265,513 | 246,469 |
Weighted-average fair value at grant-date of stock awards outstanding, at the beginning of period (in dollars per share) | $ 149.46 | $ 127.09 | $ 116.66 |
Weighted-average fair value at grant-date of stock awards granted (in dollars per share) | 203.09 | 177.38 | 138.69 |
Weighted-average fair value at grant-date of stock awards vested/earned (in dollars per share) | 130.72 | 119.08 | 113.03 |
Weighted-average fair value at grant-date of stock awards cancelled (in dollars per share) | 162.51 | 124.77 | 115.05 |
Weighted-average fair value at grant-date of stock awards Separation of ChampionX (in dollars per share) | 161.82 | ||
Weighted-average fair value at grant-date of stock awards outstanding, at the end of period (in dollars per share) | $ 172.92 | $ 149.46 | $ 127.09 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes | |||||||||||
United States | $ 100.5 | $ 787.1 | $ 690.1 | ||||||||
International | 1,060.9 | 944.4 | 897 | ||||||||
Income before income taxes | $ 378 | $ 291.7 | $ 148.4 | $ 343.3 | $ 486.2 | $ 523.7 | $ 436.1 | $ 285.5 | 1,161.4 | 1,731.5 | 1,587.1 |
Current income tax expense (benefit) | |||||||||||
Federal and state | (43.9) | 134.4 | 105.1 | ||||||||
International | 259.8 | 176.3 | 93.5 | ||||||||
Total current | 215.9 | 310.7 | 198.6 | ||||||||
Deferred income tax expense (benefit) | |||||||||||
Federal and state | 12 | 37.9 | 52.7 | ||||||||
International | (51.3) | (60) | 69.9 | ||||||||
Total deferred | (39.3) | (22.1) | 122.6 | ||||||||
Provision for income taxes | $ 73.1 | $ 42.4 | $ 14.1 | $ 47 | $ 86.5 | $ 83.4 | $ 88.8 | $ 29.9 | $ 176.6 | $ 288.6 | $ 321.2 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Pension and post-retirement benefits | $ 234.3 | $ 207.4 |
Other accrued liabilities | 154.7 | 127.5 |
Lease liability | 95.5 | 104.8 |
Credit carryforwards | 76.6 | 18.7 |
Loss carryforwards | 63.4 | 48 |
Share-based compensation | 44.8 | 55 |
Other, net | 77 | 57.5 |
Valuation allowance | (45.3) | (24.5) |
Total deferred tax assets | 701 | 594.4 |
Deferred tax liabilities | ||
Intangible assets | (598.9) | (569.9) |
Property, plant and equipment | (317.8) | (258.1) |
Lease asset | (95.4) | (105.2) |
Other, net | (9.6) | (62.3) |
Total deferred tax liabilities | (1,021.7) | (995.5) |
Net deferred tax liabilities balance | (320.7) | $ (401.1) |
Federal | ||
Deferred tax assets | ||
Loss carryforwards | 0.1 | |
State | ||
Deferred tax assets | ||
Credit carryforwards | 19.1 | |
Loss carryforwards | 20.2 | |
International | ||
Deferred tax assets | ||
Credit carryforwards | 57.7 | |
Loss carryforwards | $ 43.1 |
INCOME TAXES - Loss Carryforwar
INCOME TAXES - Loss Carryforwards (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)item$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017 | |
Operating loss carryforwards | ||||
Statutory U.S. rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% |
Net discrete expense (benefit), prior year returns | $ 11 | $ (39.5) | ||
Net operating loss carryforwards | $ 63.4 | 48 | ||
Valuation allowance on deferred tax asset | 45.3 | $ 24.5 | ||
Number of foreign jurisdictions with a tax holiday | item | 2 | |||
Federal | ||||
Operating loss carryforwards | ||||
Net operating loss carryforwards | 0.1 | |||
Carryforwards subject to expiration | 20.3 | |||
State | ||||
Operating loss carryforwards | ||||
Net operating loss carryforwards | 20.2 | |||
International | ||||
Operating loss carryforwards | ||||
Net operating loss carryforwards | 43.1 | |||
Carryforwards subject to expiration | 13.9 | |||
No expiration | 29.2 | |||
Preferential income tax rate, certain headquarter income | 10.00% | |||
Tax reduction due to tax holiday | $ 26.9 | $ 29.2 | $ 25.6 | |
Tax holiday impact on diluted earnings per share (in dollars per share) | $ / shares | $ 0.09 | $ 0.10 | $ 0.09 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Statutory Rate to Effective Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate | |||||
Statutory U.S. rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | |
State income taxes, net of federal benefit (as a percent) | 0.40% | 1.80% | 1.20% | ||
Foreign operations (as a percent) | (1.30%) | 5.50% | (15.50%) | ||
R&D credit (as a percent) | (1.10%) | (1.00%) | (1.00%) | ||
Change in valuation allowance (as a percent) | 0.60% | (8.20%) | 10.30% | ||
Excess stock benefits (as a percent) | (4.90%) | (2.40%) | (1.70%) | ||
One time transition tax (as a percent) | (0.2) | 4.2 | |||
Prior year adjustments (as a percent) | 2.90% | ||||
Other, net (as a percent) | 0.50% | 0.20% | (1.20%) | ||
Effective income tax rate (as a percent) | 15.20% | 16.70% | 20.20% | ||
Net tax benefit for the one-time transition | $ 3.1 | ||||
Net expense for the one-time transition | $ 66 | ||||
Special gains and charges, recognized discrete tax expense (benefit), net, | $ 57.9 | 40.1 | (29) | ||
Recognized discrete tax expense (benefit), net | 55.8 | 54.6 | 64 | ||
Excess tax benefits, share-based compensation | 57.3 | 42.3 | 27.7 | ||
Effective Income Tax | 15.6 | ||||
Net discrete expense (benefit), prior year returns | 11 | (39.5) | |||
Out of period charges incurred | $ 38 | ||||
Tax expense (benefit) due to issuance of final regulations governing taxation of foreign dividends | 10.2 | ||||
Tax expense (benefit) due to passage of tax reform. | 30.4 | ||||
Tax expense (benefit) due to audit settlements and statutes of limitations | 9.8 | 13.8 | |||
Amount of adjustments recognized from filing prior year U.S. federal and state tax returns, used to derive net discrete tax benefit | 11.3 | ||||
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||||
Balance at beginning of year | 27 | 49 | 60.6 | ||
Additions based on tax positions related to the current year | 3.3 | 2.1 | 3 | ||
Additions for tax positions of prior years | 1 | 2 | |||
Reductions for tax positions of prior years | (1.1) | (18.4) | (8.7) | ||
Reductions for tax positions due to statute of limitations | (9.1) | (5.7) | (5.8) | ||
Settlements | (0.6) | (0.8) | |||
Foreign currency translation | 0.6 | (0.4) | (1.3) | ||
Balance at end of year | 49 | 20.7 | 27 | 49 | $ 60.6 |
Unrecognized tax benefits that would affect the annual effective tax rate | 35.6 | 18.3 | 23.7 | 35.6 | |
Interest and penalties on unrecognized tax benefits accrued during the period | (2) | 1.9 | 1.2 | ||
Accrued interest, including minor amounts for penalties | $ 8 | $ 4.1 | $ 6.1 | $ 8 |
RENTALS AND LEASES - Lessee (De
RENTALS AND LEASES - Lessee (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RENTALS AND LEASES | ||
Operating lease cost | $ 183.8 | $ 179.8 |
RENTALS AND LEASES - Future Mat
RENTALS AND LEASES - Future Maturity and Minimum Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating leases maturities: | |||
2021 | $ 142 | ||
2022 | 110 | ||
2023 | 73 | ||
2024 | 44 | ||
2025 | 29 | ||
Thereafter | 76 | ||
Total lease payments | 474 | ||
Less: imputed interest | 49 | ||
Present value of lease liabilities | $ 425 | ||
Total rental expenses | $ 172 | ||
Weighted-average remaining lease term - operating leases | 5 years 6 months 7 days | 5 years 9 months 29 days | |
Weighted-average discount rate - operating leases | 3.72% | 4.00% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 164.2 | $ 159 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 60.4 | $ 116.5 |
RENTALS AND LEASES - Lessor (De
RENTALS AND LEASES - Lessor (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Property, plant and equipment, gross | $ 6,781.4 | $ 6,667.5 |
Accumulated depreciation | 3,656.5 | 3,439.2 |
Operating Leases, Income Statement, Lease Revenue | ||
Operating lease revenue | 356.3 | 412.7 |
Operating Leases, Future Minimum Payments Receivable | ||
2021 | 331 | |
2022 | 253 | |
2023 | 191 | |
2024 | 122 | |
2025 | 49 | |
Thereafter | 14 | |
Total lease revenue | 960 | |
Operating Leases Recorded in Property, Plant and Equipment | ||
Lessor, Lease, Description [Line Items] | ||
Property, plant and equipment, gross | 1,190.3 | 1,091.7 |
Accumulated depreciation | $ 646.1 | $ 606.7 |
RESEARCH AND DEVELOPMENT EXPE_2
RESEARCH AND DEVELOPMENT EXPENDITURES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RESEARCH AND DEVELOPMENT EXPENDITURES | |||
Research expenditures related to the development of new products and processes, including significant improvements and refinements to existing products | $ 185 | $ 190 | $ 193 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended |
Dec. 31, 2020location | |
Environmental matters | |
Number of locations for environmental assessments and remediation | 30 |
RETIREMENT PLANS - Information
RETIREMENT PLANS - Information Related to Pension and Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in Consolidated Balance Sheet: | |||||
Other assets | $ 33 | $ 31.1 | |||
Postretirement health care and pension benefits | (1,226.2) | (1,084.4) | |||
Amounts recognized in Accumulated Other Comprehensive Loss (Income): | |||||
Accumulated other comprehensive loss (income), net of tax | 935.2 | 823.8 | |||
Change in Accumulated Other Comprehensive Loss (Income): | |||||
Other comprehensive loss (income) | 78.1 | 251.6 | $ (18) | ||
Aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets: | |||||
Aggregate projected benefit obligation | 4,155.4 | 3,970.3 | |||
Accumulated benefit obligation | 4,098.6 | 3,877.4 | |||
Fair value of plan assets | 3,085.2 | 3,040.5 | |||
Discontinued Operations | |||||
Defined Benefit Plan Disclosure | |||||
Accumulated Benefit Obligation, end of year | 1.1 | ||||
Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of year | 5.3 | ||||
Service cost | 2.5 | 7.8 | 7.1 | ||
Projected benefit obligation, end of year | 5.3 | ||||
Plan Assets | |||||
Fair value of plan assets, beginning of year | 0.6 | ||||
Fair value of plan assets, end of year | 0.6 | ||||
Amounts recognized in Accumulated Other Comprehensive Loss (Income): | |||||
Accumulated other comprehensive loss (income), net of tax | 2.9 | ||||
Aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets: | |||||
Fair value of plan assets | 0.6 | ||||
Non-qualified plan | |||||
Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of year | 127 | ||||
Projected benefit obligation, end of year | 134 | 127 | |||
United States | Pension | |||||
Defined Benefit Plan Disclosure | |||||
Accumulated Benefit Obligation, end of year | 2,728.4 | 2,535.9 | |||
Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of year | 2,562.5 | 2,241 | |||
Service cost | 68.4 | 72.8 | 74.5 | ||
Interest cost | 70.3 | 89 | 83.1 | ||
Curtailments and settlements | (0.6) | 3.4 | |||
Plan amendments | $ (40.4) | ||||
Actuarial (gain) loss | 241.8 | 336.4 | |||
Benefits paid | (214) | (180.1) | |||
Projected benefit obligation, end of year | 2,241 | 2,728.4 | 2,562.5 | 2,241 | |
Plan Assets | |||||
Fair value of plan assets, beginning of year | 2,292.9 | 1,981.4 | |||
Actual returns on plan assets | 281.3 | 366.9 | |||
Company contributions | 13.3 | 129 | |||
Curtailments and settlements | (0.6) | (4.3) | |||
Benefits paid | (214) | (180.1) | |||
Fair value of plan assets, end of year | 1,981.4 | 2,372.9 | 2,292.9 | 1,981.4 | |
Funded Status, end of year | (355.5) | (269.6) | |||
Amounts recognized in Consolidated Balance Sheet: | |||||
Other current liabilities | (14.7) | (12.5) | |||
Postretirement health care and pension benefits | (340.8) | (257.1) | |||
Net liability | (355.5) | (269.6) | |||
Amounts recognized in Accumulated Other Comprehensive Loss (Income): | |||||
Unrecognized net actuarial loss (gain) | 691.3 | 632.4 | |||
Unrecognized net prior service costs (benefits) | (32.7) | (40) | |||
Tax (benefit) expense | (165.1) | (149.1) | |||
Accumulated other comprehensive loss (income), net of tax | 493.5 | 443.3 | |||
Change in Accumulated Other Comprehensive Loss (Income): | |||||
Amortization of net actuarial (gain) loss | (51.8) | (23.5) | |||
Amortization of prior service costs | 7.4 | 11.5 | |||
Current period net actuarial loss (gain) | 113.3 | 119 | |||
Curtailments and settlements | (2.7) | (1.5) | |||
Tax (benefit) expense | (16) | (25.7) | |||
Other comprehensive loss (income) | 50.2 | 79.8 | |||
Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2021 | |||||
Net actuarial loss (gain) | 64.8 | ||||
Net prior service costs (benefits) | (6.9) | ||||
Total | 57.9 | ||||
United States | Postretirement Health Care | |||||
Defined Benefit Plan Disclosure | |||||
Accumulated Benefit Obligation, end of year | 172.4 | 165.7 | |||
Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of year | 165.7 | 147.3 | |||
Service cost | 1.2 | 1.4 | 2.7 | ||
Interest cost | 4.4 | 5.6 | 5.6 | ||
Participant contributions | 3.8 | 3.4 | |||
Curtailments and settlements | 0.6 | ||||
Plan amendments | $ (18.9) | ||||
Actuarial (gain) loss | 12.2 | 22.2 | |||
Benefits paid | (14.9) | (14.8) | |||
Projected benefit obligation, end of year | 147.3 | 172.4 | 165.7 | 147.3 | |
Plan Assets | |||||
Fair value of plan assets, beginning of year | 6.1 | 6 | |||
Actual returns on plan assets | 0.8 | 1.1 | |||
Company contributions | 13.7 | 13.8 | |||
Benefits paid | (14.9) | (14.8) | |||
Fair value of plan assets, end of year | 6 | 5.7 | 6.1 | 6 | |
Funded Status, end of year | (166.7) | (159.6) | |||
Amounts recognized in Consolidated Balance Sheet: | |||||
Other current liabilities | (5.5) | (5.2) | |||
Postretirement health care and pension benefits | (161.2) | (154.4) | |||
Net liability | (166.7) | (159.6) | |||
Amounts recognized in Accumulated Other Comprehensive Loss (Income): | |||||
Unrecognized net actuarial loss (gain) | 1.3 | (10.5) | |||
Unrecognized net prior service costs (benefits) | (11) | ||||
Tax (benefit) expense | (2) | 3.4 | |||
Accumulated other comprehensive loss (income), net of tax | (0.7) | (18.1) | |||
Change in Accumulated Other Comprehensive Loss (Income): | |||||
Amortization of net actuarial (gain) loss | (0.1) | 4.1 | |||
Amortization of prior service costs | 11 | 23.2 | |||
Current period net actuarial loss (gain) | 11.9 | 21.4 | |||
Curtailments and settlements | 0.2 | ||||
Tax (benefit) expense | (5.4) | (11.7) | |||
Other comprehensive loss (income) | 17.4 | 37.2 | |||
Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2021 | |||||
Net actuarial loss (gain) | 0.7 | ||||
Total | 0.7 | ||||
International | Pension | |||||
Defined Benefit Plan Disclosure | |||||
Accumulated Benefit Obligation, end of year | 1,759.8 | 1,585.5 | |||
Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of year | 1,667.6 | 1,436.7 | |||
Service cost | 30.8 | 30.2 | 33.2 | ||
Interest cost | 22.3 | 31.2 | 29.1 | ||
Participant contributions | 2.6 | 3 | |||
Curtailments and settlements | (34.3) | (18.6) | |||
Plan amendments | (1.7) | 0.1 | |||
Actuarial (gain) loss | 83.6 | 235.8 | |||
Other events | 0.3 | 0.6 | |||
Benefits paid | (39.6) | (37.6) | |||
Foreign currency translation | 102.6 | (13.8) | |||
Projected benefit obligation, end of year | 1,436.7 | 1,834.2 | 1,667.6 | 1,436.7 | |
Plan Assets | |||||
Fair value of plan assets, beginning of year | 1,027.1 | 925.6 | |||
Actual returns on plan assets | 87.7 | 110.5 | |||
Company contributions | 41.3 | 43.3 | |||
Participant contributions | 2.6 | 3 | |||
Curtailments and settlements | (25.7) | (17.6) | |||
Benefits paid | (39.6) | (37.6) | |||
Foreign currency translation | 54.6 | (0.1) | |||
Fair value of plan assets, end of year | $ 925.6 | 1,148 | 1,027.1 | $ 925.6 | |
Funded Status, end of year | (686.2) | (640.5) | |||
Amounts recognized in Consolidated Balance Sheet: | |||||
Other assets | 37 | 31.1 | |||
Other current liabilities | (24) | (23.6) | |||
Postretirement health care and pension benefits | (699.2) | (647.8) | |||
Net liability | (686.2) | (640.3) | |||
Amounts recognized in Accumulated Other Comprehensive Loss (Income): | |||||
Unrecognized net actuarial loss (gain) | 595.6 | 527.7 | |||
Unrecognized net prior service costs (benefits) | (1.2) | 0.6 | |||
Tax (benefit) expense | (151.9) | (129.6) | |||
Accumulated other comprehensive loss (income), net of tax | 442.5 | 398.7 | |||
Change in Accumulated Other Comprehensive Loss (Income): | |||||
Amortization of net actuarial (gain) loss | (29.5) | (17.3) | |||
Amortization of prior service costs | (0.2) | 1.1 | |||
Current period net actuarial loss (gain) | 66.4 | 185.8 | |||
Current period prior service costs | (1.7) | 0.1 | |||
Curtailments and settlements | (2.2) | 1.8 | |||
Tax (benefit) expense | (22.3) | (36.9) | |||
Foreign currency translation | 33.3 | (5.2) | |||
Other comprehensive loss (income) | 43.8 | $ 129.4 | |||
Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2021 | |||||
Net actuarial loss (gain) | 28.5 | ||||
Net prior service costs (benefits) | (0.2) | ||||
Total | $ 28.3 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | Pension | ||||||
Net periodic benefit costs | ||||||
Service cost | $ 68.4 | $ 72.8 | $ 74.5 | |||
Interest cost on benefit obligation | 70.3 | 89 | 83.1 | |||
Expected return on plan assets | (152.9) | (149.5) | (161.9) | |||
Recognition of net actuarial loss (gain) | 51.9 | 23.6 | 39 | |||
Amortization of prior service cost (benefit) | (7.4) | (11.5) | (6.8) | |||
Curtailments and settlements | 2.5 | 9.1 | ||||
Total expense (benefit) | $ 32.8 | $ 33.5 | $ 27.9 | |||
Other Pension Plan Information | ||||||
Contributions to plan | $ 120 | |||||
Plan amendments, decrease in benefit obligation | $ 40.4 | |||||
Discount rate (as a percent) | 4.34% | 2.48% | 3.20% | 4.34% | ||
United States | Postretirement Health Care | ||||||
Net periodic benefit costs | ||||||
Service cost | $ 1.2 | $ 1.4 | $ 2.7 | |||
Interest cost on benefit obligation | 4.4 | 5.6 | 5.6 | |||
Expected return on plan assets | (0.4) | (0.4) | (0.4) | |||
Recognition of net actuarial loss (gain) | 0.1 | (4.1) | (1.9) | |||
Amortization of prior service cost (benefit) | (11) | (23.2) | (19.7) | |||
Curtailments and settlements | 0.3 | |||||
Total expense (benefit) | $ (5.7) | $ (20.4) | $ (13.7) | |||
Other Pension Plan Information | ||||||
Plan amendments, decrease in benefit obligation | $ 18.9 | |||||
Discount rate (as a percent) | 4.29% | 4.36% | 2.37% | 3.16% | 4.29% | |
Decrease in defined benefit cost due to re-measurement of benefit plans | $ (4.5) | |||||
International | Pension | ||||||
Net periodic benefit costs | ||||||
Service cost | $ 30.8 | $ 30.2 | 33.2 | |||
Interest cost on benefit obligation | 22.3 | 31.2 | 29.1 | |||
Expected return on plan assets | (63.9) | (59.9) | (63.2) | |||
Recognition of net actuarial loss (gain) | 26.1 | 16.3 | 17.2 | |||
Amortization of prior service cost (benefit) | (0.1) | (0.9) | (0.9) | |||
Curtailments and settlements | 2.2 | (1.9) | 2.3 | |||
Total expense (benefit) | 17.4 | 15 | $ 17.7 | |||
Other Pension Plan Information | ||||||
Plan amendments, decrease in benefit obligation | $ 1.7 | $ (0.1) | ||||
Discount rate (as a percent) | 2.49% | 1.13% | 1.52% | 2.49% | ||
Discontinued Operations | ||||||
Net periodic benefit costs | ||||||
Service cost | $ 2.5 | $ 7.8 | $ 7.1 |
RETIREMENT PLANS - Assumption D
RETIREMENT PLANS - Assumption Details (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | Corporate bonds | Minimum | |||||
Weighted-average actuarial assumptions used to determine net cost: | |||||
Maturity period of debt securities | 6 months | ||||
United States | Corporate bonds | Maximum | |||||
Weighted-average actuarial assumptions used to determine net cost: | |||||
Maturity period of debt securities | 30 years | ||||
United States | Pension | |||||
Weighted-average actuarial assumptions used to determine benefit obligations as of year end: | |||||
Discount rate (as a percent) | 4.34% | 2.48% | 3.20% | 4.34% | |
Projected salary increase (as a percent) | 4.03% | 4.03% | 4.03% | 4.03% | |
Weighted-average actuarial assumptions used to determine net cost: | |||||
Interest credit rate for cash balance plans | 1.81% | ||||
Discount rate (as a percent) | 3.20% | 4.34% | 3.70% | ||
Expected return on plan assets (as a percent) | 7.25% | 7.25% | 7.75% | ||
Projected salary increase (as a percent) | 4.03% | 4.03% | 4.03% | ||
Defined Benefit Plan Assumed Health Care Cost Trend Rates | |||||
Plan amendments, decrease in benefit obligation | $ (40.4) | ||||
United States | Postretirement Health Care | |||||
Weighted-average actuarial assumptions used to determine benefit obligations as of year end: | |||||
Discount rate (as a percent) | 4.29% | 4.36% | 2.37% | 3.16% | 4.29% |
Weighted-average actuarial assumptions used to determine net cost: | |||||
Discount rate (as a percent) | 3.16% | 4.29% | 3.66% | ||
Expected return on plan assets (as a percent) | 7.25% | 7.25% | 7.75% | ||
Defined Benefit Plan Assumed Health Care Cost Trend Rates | |||||
Annual rates of increase in the per capita cost of covered health care for pre-age 65 retirees (as a percent) | 8.00% | ||||
Annual rates of increase in the per capita cost of covered health care for post-age 65 retirees (as a percent) | 10.75% | ||||
Rate of per capita cost of covered health care, in 2028 (as a percent) | 5.00% | ||||
Plan amendments, decrease in benefit obligation | $ (18.9) | ||||
Plan amendments, decrease in benefit obligation, net of tax | $ (14.4) | ||||
Defined Benefit Plan, Reduction in Benefit Cost | $ (4.5) | ||||
International | Pension | |||||
Weighted-average actuarial assumptions used to determine benefit obligations as of year end: | |||||
Discount rate (as a percent) | 2.49% | 1.13% | 1.52% | 2.49% | |
Projected salary increase (as a percent) | 2.46% | 2.12% | 2.50% | 2.46% | |
Weighted-average actuarial assumptions used to determine net cost: | |||||
Discount rate (as a percent) | 1.84% | 2.66% | 2.29% | ||
Expected return on plan assets (as a percent) | 6.24% | 6.66% | 6.67% | ||
Projected salary increase (as a percent) | 2.81% | 2.70% | 2.67% | ||
Defined Benefit Plan Assumed Health Care Cost Trend Rates | |||||
Plan amendments, decrease in benefit obligation | $ (1.7) | $ 0.1 |
RETIREMENT PLANS - Fair Value o
RETIREMENT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension | United States | |||
Defined Benefit Plan Disclosure | |||
Total | $ 2,372.9 | $ 2,292.9 | $ 1,981.4 |
Pension | International | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 1,104 | 1,014.2 | |
Investments measured at NAV | 44 | 12.9 | |
Total | 1,148 | 1,027.1 | $ 925.6 |
Pension | International | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 26.9 | 28.5 | |
Total | 26.9 | 28.5 | |
Pension | International | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 1,077.1 | 985.7 | |
Total | 1,077.1 | 985.7 | |
Pension | International | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Pension | International | Cash | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 11 | 7.7 | |
Pension | International | Cash | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 11 | 7.7 | |
Pension | International | International equity | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 467 | 418.1 | |
Pension | International | International equity | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 467 | 418.1 | |
Pension | International | Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 227.7 | 215.8 | |
Pension | International | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 9.1 | 8.2 | |
Pension | International | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 218.6 | 207.6 | |
Pension | International | Government bonds | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 248.7 | 228.4 | |
Pension | International | Government bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 6.8 | 12.6 | |
Pension | International | Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 241.9 | 215.8 | |
Pension | International | Insurance company accounts | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 149.6 | 144.2 | |
Pension | International | Insurance company accounts | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 149.6 | 144.2 | |
Pension and Postretirement Health Care Benefit Plans | United States | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 1,711.8 | 1,911.1 | |
Total | 2,378.7 | 2,299 | |
Pension and Postretirement Health Care Benefit Plans | United States | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 1,217.2 | 1,910.8 | |
Total | 1,217.2 | 1,910.8 | |
Pension and Postretirement Health Care Benefit Plans | United States | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 494.6 | 0.3 | |
Total | 494.6 | 0.3 | |
Pension and Postretirement Health Care Benefit Plans | United States | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | 0 | |
Pension and Postretirement Health Care Benefit Plans | United States | Cash | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 38.3 | 13.2 | |
Pension and Postretirement Health Care Benefit Plans | United States | Cash | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 38.3 | 13.2 | |
Pension and Postretirement Health Care Benefit Plans | United States | Large cap equity | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 610 | 785.9 | |
Pension and Postretirement Health Care Benefit Plans | United States | Large cap equity | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 610 | 785.9 | |
Pension and Postretirement Health Care Benefit Plans | United States | Small cap equity | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 104.8 | 201.7 | |
Pension and Postretirement Health Care Benefit Plans | United States | Small cap equity | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 36.5 | 201.7 | |
Pension and Postretirement Health Care Benefit Plans | United States | Small cap equity | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 68.3 | ||
Pension and Postretirement Health Care Benefit Plans | United States | International equity | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 138.7 | 350.4 | |
Investments measured at NAV | 666.9 | 387.9 | |
Pension and Postretirement Health Care Benefit Plans | United States | International equity | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 95.8 | 350.4 | |
Pension and Postretirement Health Care Benefit Plans | United States | International equity | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 42.9 | ||
Pension and Postretirement Health Care Benefit Plans | United States | Core fixed income | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 688.1 | 410 | |
Pension and Postretirement Health Care Benefit Plans | United States | Core fixed income | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 360.3 | 410 | |
Pension and Postretirement Health Care Benefit Plans | United States | Core fixed income | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 327.8 | ||
Pension and Postretirement Health Care Benefit Plans | United States | High-yield bonds | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 76.3 | 107.9 | |
Pension and Postretirement Health Care Benefit Plans | United States | High-yield bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 76.3 | 107.9 | |
Pension and Postretirement Health Care Benefit Plans | United States | Emerging markets | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 55.6 | 41.7 | |
Pension and Postretirement Health Care Benefit Plans | United States | Emerging markets | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 41.7 | ||
Pension and Postretirement Health Care Benefit Plans | United States | Emerging markets | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | $ 55.6 | ||
Pension and Postretirement Health Care Benefit Plans | United States | Insurance company accounts | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | 0.3 | ||
Pension and Postretirement Health Care Benefit Plans | United States | Insurance company accounts | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total investments at fair value | $ 0.3 |
RETIREMENT PLANS - Allocation P
RETIREMENT PLANS - Allocation Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension | International | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 100.00% | 100.00% |
Pension | International | Cash | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 1.00% | 1.00% |
Pension | International | International equity | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 40.00% | 41.00% |
Pension | International | Corporate bonds | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 20.00% | 21.00% |
Pension | International | Government bonds | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 22.00% | 22.00% |
Pension | International | Total fixed income | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 42.00% | 43.00% |
Pension | International | Insurance company accounts | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 14.00% | 14.00% |
Pension | International | Real estate | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 1.00% | 1.00% |
Pension | International | Debt securities | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 2.00% | |
Pension and Postretirement Health Care Benefit Plans | United States | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 100.00% | 100.00% |
PERCENTAGE OF PLAN ASSETS | 100.00% | 100.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Cash | ||
Asset allocation percentages | ||
PERCENTAGE OF PLAN ASSETS | 2.00% | 1.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Large cap equity | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 27.00% | 34.00% |
PERCENTAGE OF PLAN ASSETS | 26.00% | 34.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Small cap equity | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 4.00% | 9.00% |
PERCENTAGE OF PLAN ASSETS | 4.00% | 8.00% |
Pension and Postretirement Health Care Benefit Plans | United States | International equity | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 16.00% | 15.00% |
PERCENTAGE OF PLAN ASSETS | 15.00% | 15.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Core fixed income | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 30.00% | 18.00% |
PERCENTAGE OF PLAN ASSETS | 29.00% | 18.00% |
Pension and Postretirement Health Care Benefit Plans | United States | High-yield bonds | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 4.00% | 5.00% |
PERCENTAGE OF PLAN ASSETS | 3.00% | 5.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Emerging markets | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 2.00% | 2.00% |
PERCENTAGE OF PLAN ASSETS | 2.00% | 2.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Real estate | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 6.00% | 6.00% |
PERCENTAGE OF PLAN ASSETS | 7.00% | 7.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Private Equity | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 8.00% | 8.00% |
PERCENTAGE OF PLAN ASSETS | 9.00% | 7.00% |
Pension and Postretirement Health Care Benefit Plans | United States | Distressed debt | ||
Asset allocation percentages | ||
TARGET ASSET ALLOCATION PERCENTAGE | 3.00% | 3.00% |
PERCENTAGE OF PLAN ASSETS | 3.00% | 3.00% |
RETIREMENT PLANS - Cash Flows (
RETIREMENT PLANS - Cash Flows (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2020 | |
Pension | United States | ||
Estimate of benefits expected to be paid for company's pension and postretirement health care benefit plans: | ||
Contributions to plan | $ 120 | |
Pension | International | ||
Estimate of benefits expected to be paid for company's pension and postretirement health care benefit plans: | ||
Estimated contribution to pension benefit plan during 2021 | $ 47 | |
Pension | Non-qualified plan | United States | ||
Estimate of benefits expected to be paid for company's pension and postretirement health care benefit plans: | ||
Employer voluntary contribution to defined benefit plan | 0 | |
Pension and Postretirement Health Care Benefit Plans | ||
Estimate of benefits expected to be paid for company's pension and postretirement health care benefit plans: | ||
2021 | 232 | |
2022 | 262 | |
2023 | 247 | |
2024 | 253 | |
2025 | 261 | |
2026-2030 | $ 1,254 |
RETIREMENT PLANS - Savings Plan
RETIREMENT PLANS - Savings Plan and ESOP (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of matching contribution by company vested immediately | 100.00% | ||
Employer matching contribution expense | $ 72 | $ 76 | $ 72 |
Traditional Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Cash balance benefits percentage | 5.00% | ||
Percentage of matching contribution made by company, up to 3% eligible compensation | 100.00% | ||
Percentage of matching contribution made by company for employee contributions between 3% and 5% | 50.00% | ||
Ecolab Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Cash balance benefits percentage | 3.00% | ||
Percentage of matching contribution made by company, up to 4% eligible compensation | 100.00% | ||
Percentage of matching contribution made by company for employee contributions between 4% and 8% | 50.00% | ||
Minimum | Traditional Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of eligible compensation, matched 50% | 3.00% | ||
Minimum | Ecolab Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of eligible compensation, matched 50% | 4.00% | ||
Maximum | Traditional Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of eligible compensation, matched 100% | 3.00% | ||
Percentage of eligible compensation, matched 50% | 5.00% | ||
Maximum | Ecolab Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of eligible compensation, matched 100% | 4.00% | ||
Percentage of eligible compensation, matched 50% | 8.00% |
REVENUES - Principal Activities
REVENUES - Principal Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of revenue | |||||||||||
Net sales | $ 3,065.3 | $ 3,018.6 | $ 2,685.7 | $ 3,020.6 | $ 3,244.2 | $ 3,224 | $ 3,169.1 | $ 2,924.7 | $ 11,790.2 | $ 12,562 | $ 12,222.1 |
Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 9,466.6 | 10,129 | 9,903.6 | ||||||||
Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | $ 2,323.6 | $ 2,433 | $ 2,318.5 | ||||||||
Warewashing Products | Product concentration | Consolidated net sales | |||||||||||
Disaggregation of revenue | |||||||||||
Percentage of consolidated sales | 11.00% | 13.00% | 13.00% | ||||||||
Corporate | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | $ 100 | ||||||||||
Corporate | United States | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 75.2 | ||||||||||
Corporate | Europe | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 4.8 | ||||||||||
Corporate | Asia Pacific | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 2.8 | ||||||||||
Corporate | Latin America | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 13.1 | ||||||||||
Corporate | Greater China | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 0.9 | ||||||||||
Corporate | Canada | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 0.7 | ||||||||||
Corporate | India, Middle East and Africa ("IMEA") | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 2.5 | ||||||||||
Corporate | Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 99.7 | ||||||||||
Corporate | Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 0.3 | ||||||||||
Global Industrial | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 5,870.8 | $ 5,980.2 | $ 5,806.8 | ||||||||
Global Industrial | United States | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 2,564.3 | 2,668.1 | 2,564.9 | ||||||||
Global Industrial | Europe | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 1,262.6 | 1,204.2 | 1,147.9 | ||||||||
Global Industrial | Asia Pacific | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 747.2 | 774.3 | 752.4 | ||||||||
Global Industrial | Latin America | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 491.7 | 525.8 | 512.1 | ||||||||
Global Industrial | Greater China | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 333 | 325.4 | 340.9 | ||||||||
Global Industrial | Canada | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 157.9 | 163.4 | 167.8 | ||||||||
Global Industrial | India, Middle East and Africa ("IMEA") | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 314.1 | 319 | 320.8 | ||||||||
Global Industrial | Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 5,052.3 | 5,174.1 | 4,992.8 | ||||||||
Global Industrial | Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 818.5 | 806.1 | 814 | ||||||||
Global Institutional & Specialty | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 3,553.2 | 4,401.5 | 4,302 | ||||||||
Global Institutional & Specialty | United States | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 2,400.4 | 3,021.3 | 2,899 | ||||||||
Global Institutional & Specialty | Europe | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 510.3 | 622.3 | 654 | ||||||||
Global Institutional & Specialty | Asia Pacific | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 203.9 | 235.7 | 235 | ||||||||
Global Institutional & Specialty | Latin America | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 128.3 | 162.2 | 161.5 | ||||||||
Global Institutional & Specialty | Greater China | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 114.9 | 119.4 | 112.8 | ||||||||
Global Institutional & Specialty | Canada | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 155.6 | 188.4 | 187.1 | ||||||||
Global Institutional & Specialty | India, Middle East and Africa ("IMEA") | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 39.8 | 52.2 | 52.6 | ||||||||
Global Institutional & Specialty | Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 2,968.7 | 3,701.9 | 3,673.5 | ||||||||
Global Institutional & Specialty | Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 584.5 | 699.6 | 628.5 | ||||||||
Global Healthcare and Life Sciences | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 1,181.9 | 972.8 | 939.5 | ||||||||
Global Healthcare and Life Sciences | United States | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 432.6 | 410.3 | 395.7 | ||||||||
Global Healthcare and Life Sciences | Europe | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 643.6 | 513.8 | 506.4 | ||||||||
Global Healthcare and Life Sciences | Asia Pacific | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 69.8 | 22.5 | 12.3 | ||||||||
Global Healthcare and Life Sciences | Latin America | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 6.1 | 4.5 | 4.1 | ||||||||
Global Healthcare and Life Sciences | Greater China | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 3.6 | 2 | 1.4 | ||||||||
Global Healthcare and Life Sciences | Canada | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 6.4 | 5.2 | 5.7 | ||||||||
Global Healthcare and Life Sciences | India, Middle East and Africa ("IMEA") | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 19.8 | 14.5 | 13.9 | ||||||||
Global Healthcare and Life Sciences | Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 1,071.4 | 890.6 | 877.2 | ||||||||
Global Healthcare and Life Sciences | Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 110.5 | 82.2 | 62.3 | ||||||||
Other | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 1,084.3 | 1,207.5 | 1,173.8 | ||||||||
Other | United States | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 645.7 | 710.8 | 676.4 | ||||||||
Other | Europe | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 228.8 | 268.4 | 272.1 | ||||||||
Other | Asia Pacific | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 64.8 | 74.5 | 77.5 | ||||||||
Other | Latin America | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 50.3 | 50.2 | 49.4 | ||||||||
Other | Greater China | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 63.4 | 66.5 | 59.4 | ||||||||
Other | Canada | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 16.9 | 19.1 | 21 | ||||||||
Other | India, Middle East and Africa ("IMEA") | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 14.4 | 18 | 18 | ||||||||
Other | Product and sold equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | 274.5 | 362.4 | 360.1 | ||||||||
Other | Service and lease equipment | |||||||||||
Disaggregation of revenue | |||||||||||
Net sales | $ 809.8 | $ 845.1 | $ 813.7 |
REVENUES - Contract Liability (
REVENUES - Contract Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in contract liability | ||
Contract liability as of beginning of period | $ 76.7 | $ 67.7 |
Revenue recognized: Amounts included in the contract liability at the beginning of the period | (76.7) | (67.7) |
Increases due to invoices issued, excluding amounts recognized as revenues during the period | 79.8 | 70.2 |
Business combination | 0.6 | 6.5 |
Contract liability as of end of period | $ 80.4 | $ 76.7 |
OPERATING SEGMENTS AND GEOGRA_3
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financial information of reportable segments | |||||||||||
Number of operating units | segment | 11 | ||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Net sales | $ 3,065.3 | $ 3,018.6 | $ 2,685.7 | $ 3,020.6 | $ 3,244.2 | $ 3,224 | $ 3,169.1 | $ 2,924.7 | $ 11,790.2 | $ 12,562 | $ 12,222.1 |
Operating Income (Loss) | $ 416.1 | $ 411.4 | $ 192 | $ 376.2 | $ 518.2 | $ 549 | $ 464.4 | $ 313.6 | 1,395.7 | 1,845.2 | 1,728.3 |
Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 11,790.2 | 12,562 | 12,222.1 | ||||||||
Operating Income (Loss) | 1,395.7 | 1,845.2 | 1,728.3 | ||||||||
Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 14,906.3 | 14,668.2 | |||||||||
Operating Income (Loss) | 2,013.8 | 1,947 | |||||||||
Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 14,906.3 | 14,668.2 | |||||||||
Operating Income (Loss) | 2,013.8 | 1,947 | |||||||||
Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (2,344.3) | (2,446.1) | |||||||||
Operating Income (Loss) | (168.6) | (218.7) | |||||||||
Global Industrial | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 5,870.8 | 5,980.2 | 5,806.8 | ||||||||
Global Institutional & Specialty | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 3,553.2 | 4,401.5 | 4,302 | ||||||||
Global Healthcare and Life Sciences | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 1,181.9 | 972.8 | 939.5 | ||||||||
Global Healthcare and Life Sciences | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 979 | ||||||||||
Global Healthcare and Life Sciences | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 979 | ||||||||||
Global Healthcare and Life Sciences | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 991.7 | ||||||||||
Global Healthcare and Life Sciences | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (12.7) | ||||||||||
Upstream Energy | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2,352.9 | ||||||||||
Upstream Energy | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2,350 | ||||||||||
Upstream Energy | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2.9 | ||||||||||
Upstream Energy | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (2,352.9) | ||||||||||
Other | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 1,084.3 | 1,207.5 | 1,173.8 | ||||||||
Operating segment | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 11,921.9 | 12,597.4 | 12,014.7 | ||||||||
Operating Income (Loss) | 1,419.5 | 1,854.3 | 1,701.8 | ||||||||
Operating segment | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 15,046.9 | 14,530.7 | |||||||||
Operating Income (Loss) | 2,034.2 | 1,926.6 | |||||||||
Operating segment | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 14,952.1 | 14,438.8 | |||||||||
Operating Income (Loss) | 2,023.6 | 1,918.3 | |||||||||
Operating segment | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (94.8) | (91.9) | |||||||||
Operating Income (Loss) | (10.6) | (8.3) | |||||||||
Operating segment | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (2,354.7) | (2,424.1) | |||||||||
Operating Income (Loss) | (169.3) | (216.5) | |||||||||
Operating segment | Global Industrial | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 5,959.9 | 5,994.6 | 5,688.5 | ||||||||
Operating Income (Loss) | 1,106 | 902.7 | 753.7 | ||||||||
Operating segment | Global Industrial | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 5,569.9 | 5,220.2 | |||||||||
Operating Income (Loss) | 854.7 | 724.4 | |||||||||
Operating segment | Global Industrial | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 5,996.4 | 5,690.3 | |||||||||
Operating Income (Loss) | 980.6 | 834 | |||||||||
Operating segment | Global Industrial | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 479.2 | 520.9 | |||||||||
Operating Income (Loss) | 133.4 | 116.2 | |||||||||
Operating segment | Global Industrial | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (52.7) | (50.8) | |||||||||
Operating Income (Loss) | (7.5) | (6.6) | |||||||||
Operating segment | Global Industrial | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (1.8) | (1.8) | |||||||||
Operating Income (Loss) | (77.9) | (80.3) | |||||||||
Operating segment | Global Institutional & Specialty | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 3,577.2 | 4,412.1 | 4,255.2 | ||||||||
Operating Income (Loss) | 321.9 | 939.8 | 901.5 | ||||||||
Operating segment | Global Institutional & Specialty | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 5,235.5 | 5,066 | |||||||||
Operating Income (Loss) | 1,042.2 | 1,007.3 | |||||||||
Operating segment | Global Institutional & Specialty | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 4,412.1 | 4,255.2 | |||||||||
Operating Income (Loss) | 947.3 | 905 | |||||||||
Operating segment | Global Institutional & Specialty | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (800.1) | (788.3) | |||||||||
Operating Income (Loss) | (93.4) | (100.8) | |||||||||
Operating segment | Global Institutional & Specialty | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (23.3) | (22.5) | |||||||||
Operating Income (Loss) | (1.5) | (1.5) | |||||||||
Operating segment | Global Institutional & Specialty | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | (7.5) | (3.5) | |||||||||
Operating segment | Global Healthcare and Life Sciences | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 1,189.1 | 979 | 915.7 | ||||||||
Operating Income (Loss) | 207.6 | 124.5 | 124.4 | ||||||||
Operating segment | Global Healthcare and Life Sciences | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 915.7 | ||||||||||
Operating Income (Loss) | 135.1 | 135.1 | |||||||||
Operating segment | Global Healthcare and Life Sciences | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 928.2 | ||||||||||
Operating Income (Loss) | 136.7 | 136.8 | |||||||||
Operating segment | Global Healthcare and Life Sciences | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (12.5) | ||||||||||
Operating Income (Loss) | (1.6) | (1.7) | |||||||||
Operating segment | Global Healthcare and Life Sciences | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | (10.6) | (10.7) | |||||||||
Operating segment | Upstream Energy | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2,422.3 | ||||||||||
Operating Income (Loss) | 187.9 | ||||||||||
Operating segment | Upstream Energy | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2,419.8 | ||||||||||
Operating Income (Loss) | 188.2 | ||||||||||
Operating segment | Upstream Energy | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 2.5 | ||||||||||
Operating Income (Loss) | (0.3) | ||||||||||
Operating segment | Upstream Energy | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (2,422.3) | ||||||||||
Operating Income (Loss) | (187.9) | ||||||||||
Operating segment | Global Energy | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 3,334 | 3,388.8 | |||||||||
Operating Income (Loss) | 379.1 | 338.5 | |||||||||
Operating segment | Global Energy | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (3,334) | (3,388.8) | |||||||||
Operating Income (Loss) | (379.1) | (338.5) | |||||||||
Operating segment | Other | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 1,093.3 | 1,211.7 | 1,155.3 | ||||||||
Operating Income (Loss) | 131.5 | 167 | 164 | ||||||||
Operating segment | Other | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 907.5 | 855.7 | |||||||||
Operating Income (Loss) | 167.3 | 160 | |||||||||
Operating segment | Other | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 1,211.7 | 1,155.3 | |||||||||
Operating Income (Loss) | 180.6 | 174.6 | |||||||||
Operating segment | Other | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 313.2 | 308.2 | |||||||||
Operating Income (Loss) | 14.2 | 15.6 | |||||||||
Operating segment | Other | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (9) | (8.6) | |||||||||
Operating Income (Loss) | (0.9) | (1) | |||||||||
Operating segment | Other | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | (13.6) | (10.6) | |||||||||
Currency Impact | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (131.7) | (35.4) | 207.4 | ||||||||
Operating Income (Loss) | (23.8) | (9.1) | 26.5 | ||||||||
Currency Impact | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (140.6) | 137.5 | |||||||||
Operating Income (Loss) | (20.4) | 20.4 | |||||||||
Currency Impact | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | (45.8) | 229.4 | |||||||||
Operating Income (Loss) | (9.8) | 28.7 | |||||||||
Currency Impact | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 94.8 | 91.9 | |||||||||
Operating Income (Loss) | 10.6 | 8.3 | |||||||||
Currency Impact | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 10.4 | (22) | |||||||||
Operating Income (Loss) | 0.7 | (2.2) | |||||||||
Corporate | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 100 | ||||||||||
Corporate | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Net sales | 102.4 | ||||||||||
Operating Income (Loss) | $ (347.5) | (279.7) | (241.8) | ||||||||
Corporate | Previously Reported | Valued at 2019 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | (409.1) | (303.6) | |||||||||
Corporate | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | (407.9) | (302.7) | |||||||||
Corporate | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | 1.2 | 0.9 | |||||||||
Corporate | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | $ 128.2 | 60.9 | |||||||||
Corporate | Upstream Energy | Previously Reported | Valued at 2020 Management Rates | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | 172.3 | ||||||||||
Corporate | Upstream Energy | Adjustment | Segment Change | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | 170.7 | ||||||||||
Corporate | Upstream Energy | Adjustment | Fixed Currency Rate Change | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | 1.6 | ||||||||||
Corporate | Upstream Energy | Adjustment | Discontinued Operations and Related Allocation Charges | |||||||||||
Financial information of reportable segments | |||||||||||
Operating Income (Loss) | $ (172.3) |
OPERATING SEGMENTS AND GEOGRA_4
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Net Sales and Long-lived Assets by Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial information of operating segments | ||
Long-Lived Assets, net | $ 12,584.8 | $ 12,241.2 |
United States | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 6,739.4 | 6,990.8 |
Europe | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 3,062 | 2,515.2 |
Asia Pacific, excluding Greater China | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 846.1 | 831.1 |
Latin America | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 443 | 469.9 |
IMEA | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 178.5 | 177.2 |
Canada | ||
Financial information of operating segments | ||
Long-Lived Assets, net | 89.3 | 93.9 |
Greater China | ||
Financial information of operating segments | ||
Long-Lived Assets, net | $ 1,226.5 | $ 1,163.1 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 3,065.3 | $ 3,018.6 | $ 2,685.7 | $ 3,020.6 | $ 3,244.2 | $ 3,224 | $ 3,169.1 | $ 2,924.7 | $ 11,790.2 | $ 12,562 | $ 12,222.1 |
Cost of sales | 1,780.3 | 1,769.6 | 1,635.7 | 1,720.2 | 1,809.1 | 1,780.9 | 1,780.3 | 1,675.5 | 6,905.8 | 7,045.8 | 6,875.3 |
Selling, general and administrative expenses | 809.6 | 802.6 | 788.6 | 908.3 | 885.5 | 869.2 | 900 | 896.1 | 3,309.1 | 3,550.8 | 3,505.8 |
Special (gains) and charges | 59.3 | 35 | 69.4 | 15.9 | 31.4 | 24.9 | 24.4 | 39.5 | 179.6 | 120.2 | 112.7 |
Operating Income | 416.1 | 411.4 | 192 | 376.2 | 518.2 | 549 | 464.4 | 313.6 | 1,395.7 | 1,845.2 | 1,728.3 |
Other (income) expense (b) | (10.3) | (15.1) | (15.1) | (15.4) | (14.1) | (20.8) | (20.9) | (21.2) | (55.9) | (77) | (79.9) |
Interest expense, net (a) | (48.4) | (134.8) | (58.7) | (48.3) | (46.1) | (46.1) | (49.2) | (49.3) | (290.2) | (190.7) | (221.1) |
Income before income taxes | 378 | 291.7 | 148.4 | 343.3 | 486.2 | 523.7 | 436.1 | 285.5 | 1,161.4 | 1,731.5 | 1,587.1 |
Provision for income taxes | 73.1 | 42.4 | 14.1 | 47 | 86.5 | 83.4 | 88.8 | 29.9 | 176.6 | 288.6 | 321.2 |
Net income from continuing operations, including noncontrolling interest | 304.9 | 249.3 | 134.3 | 296.3 | 399.7 | 440.3 | 347.3 | 255.6 | 984.8 | 1,442.9 | 1,265.9 |
Net income from continuing operations attributable to noncontrolling interest | 4.6 | 3.1 | 5.4 | 4.3 | 5 | 4.4 | 3.9 | 4 | 17.4 | 17.3 | 15.6 |
Net income from continuing operations attributable to Ecolab | 300.3 | 246.2 | 128.9 | 292 | 394.7 | 435.9 | 343.4 | 251.6 | 967.4 | 1,425.6 | 1,250.3 |
Net (loss) income from discontinued operations, net of tax | (2,163.9) | (8.6) | 34.9 | 28.3 | 25.2 | 44.9 | (2,172.5) | 133.3 | 178.8 | ||
Net (loss) income attributable to Ecolab | $ 300.3 | $ 246.2 | $ (2,035) | $ 283.4 | $ 429.6 | $ 464.2 | $ 368.6 | $ 296.5 | $ (1,205.1) | $ 1,558.9 | $ 1,429.1 |
Basic EPS | |||||||||||
Continuing operations | $ 1.05 | $ 0.86 | $ 0.45 | $ 1.01 | $ 1.37 | $ 1.51 | $ 1.19 | $ 0.87 | $ 3.37 | $ 4.95 | $ 4.33 |
Discontinued operations | (7.51) | (0.03) | 0.12 | 0.10 | 0.09 | 0.16 | (7.57) | 0.46 | 0.62 | ||
Earnings (loss) attributable to Ecolab | 1.05 | 0.86 | (7.06) | 0.98 | 1.49 | 1.61 | 1.28 | 1.03 | (4.20) | 5.41 | 4.95 |
Diluted EPS | |||||||||||
Continuing operations | 1.04 | 0.85 | 0.44 | 1 | 1.35 | 1.49 | 1.18 | 0.86 | 3.33 | 4.87 | 4.27 |
Discontinued operations | (7.42) | (0.03) | 0.12 | 0.10 | 0.09 | 0.15 | (7.48) | 0.46 | 0.61 | ||
Earnings (loss) attributable to Ecolab | $ 1.04 | $ 0.85 | $ (6.98) | $ 0.97 | $ 1.47 | $ 1.59 | $ 1.26 | $ 1.01 | $ (4.15) | $ 5.33 | $ 4.88 |
Weighted-average common shares outstanding | |||||||||||
Basic (in shares) | 285.6 | 285.4 | 288.2 | 288.8 | 288.3 | 288.1 | 287.6 | 288.2 | 287 | 288.1 | 288.6 |
Diluted (in shares) | 288.7 | 288.4 | 291.5 | 292.6 | 292.6 | 292.8 | 292.1 | 292.3 | 290.3 | 292.5 | 292.8 |
Net income (loss) from discontinued operations attributable to noncontrolling interest | $ 2.2 | $ 0 | $ (4.4) | ||||||||
Cost of sales | |||||||||||
Special (gains) and charges | 48.2 | 38.5 | 4.8 | ||||||||
Weighted-average common shares outstanding | |||||||||||
Cost of sales, special charges | $ 2.6 | $ 9.5 | $ 27 | $ 9.1 | $ 15.7 | $ 11.4 | $ 7.8 | $ 3.6 | |||
Other (income) expense | |||||||||||
Special (gains) and charges | $ 0.4 | 9.5 | 0.4 | 9.5 | |||||||
Interest expense | |||||||||||
Special (gains) and charges | $ 83.8 | $ 0.2 | $ 0.3 | ||||||||
Weighted-average common shares outstanding | |||||||||||
Interest expense, special charges | $ 83.1 | 0.7 | 0.2 | ||||||||
Net income attributable to noncontrolling interest | |||||||||||
Weighted-average common shares outstanding | |||||||||||
Net income (loss) attributable to noncontrolling interest, special charges | $ (0.3) | $ 2.5 | $ (0.3) | $ 0.7 | $ (0.3) | $ (0.1) |