Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 20, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MSA | |
Entity Registrant Name | MSA Safety Incorporated | |
Entity Central Index Key | 66,570 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,349,911 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 287,011 | $ 282,493 | $ 543,719 | $ 547,538 |
Other income, net | 94 | 45 | 735 | 401 |
Revenues, Total | 287,105 | 282,538 | 544,454 | 547,939 |
Costs and expenses | ||||
Cost of products sold | 156,522 | 152,823 | 296,407 | 296,053 |
Selling, general and administrative | 77,588 | 82,835 | 158,956 | 168,076 |
Research and development | 12,984 | 11,943 | 23,898 | 23,184 |
Restructuring and other charges (Note 4) | 227 | 857 | 958 | 2,757 |
Interest expense | 2,502 | 2,594 | 4,975 | 5,124 |
Currency exchange losses (gains), net | 1,557 | (309) | (991) | 43 |
Costs and Expenses, Total | 251,380 | 250,743 | 484,203 | 495,237 |
Income from continuing operations before income taxes | 35,725 | 31,795 | 60,251 | 52,702 |
Provision for income taxes (Note 10) | 12,350 | 9,753 | 27,734 | 17,357 |
Income from continuing operations | 23,375 | 22,042 | 32,517 | 35,345 |
Income from discontinued operations (Note 18) | 470 | 453 | 778 | 1,067 |
Net income | 23,845 | 22,495 | 33,295 | 36,412 |
Net loss (income) attributable to noncontrolling interests | 453 | (7) | 685 | 102 |
Net income attributable to MSA Safety Incorporated | 24,298 | 22,488 | 33,980 | 36,514 |
Amounts attributable to MSA Safety Incorporated common shareholders: | ||||
Income from continuing operations | 23,722 | 22,132 | 33,038 | 35,654 |
Income from discontinued operations (Note 18) | 576 | 356 | 942 | 860 |
Net income attributable to MSA Safety Incorporated | $ 24,298 | $ 22,488 | $ 33,980 | $ 36,514 |
Basic | ||||
Income from continuing operations, basic (dollars per share) | $ 0.63 | $ 0.59 | $ 0.88 | $ 0.96 |
Income from discontinued operations, basic (dollars per share) | 0.02 | 0.01 | 0.03 | 0.02 |
Net Income, basic (dollars per share) | 0.65 | 0.60 | 0.91 | 0.98 |
Diluted | ||||
Income from continuing operations, diluted (dollars per share) | 0.62 | 0.58 | 0.87 | 0.94 |
Income from discontinued operations, diluted (dollars per share) | 0.01 | 0.01 | 0.03 | 0.02 |
Net Income, diluted (dollars per share) | 0.63 | 0.59 | 0.90 | 0.96 |
Dividends per common share (dollars per share) | $ 0.32 | $ 0.31 | $ 0.63 | $ 0.61 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 23,845 | $ 22,495 | $ 33,295 | $ 36,412 |
Foreign currency translation adjustments | 3,891 | 54 | (20,159) | (904) |
Pension and post-retirement plan adjustments, net of tax of $1,477, $1,629, $2,894, and $2,434 | 2,623 | 2,882 | 5,152 | 4,300 |
Total other comprehensive income (loss), net of tax | 6,514 | 2,936 | (15,007) | 3,396 |
Comprehensive income | 30,359 | 25,431 | 18,288 | 39,808 |
Comprehensive loss (income) attributable to noncontrolling interests | 649 | (7) | 1,139 | 244 |
Comprehensive income attributable to MSA Safety Incorporated | $ 31,008 | $ 25,424 | $ 19,427 | $ 40,052 |
Condensed Consolidated Stateme4
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and post-retirement plan adjustments, tax | $ 1,477 | $ 1,629 | $ 2,894 | $ 2,434 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 88,134 | $ 105,998 |
Trade receivables, less allowance for doubtful accounts of $8,302 and $7,821 | 218,833 | 211,440 |
Inventories (Note 3) | 150,415 | 122,954 |
Deferred tax assets (Note 10) | 21,447 | 23,830 |
Prepaid income taxes | 12,161 | 2,876 |
Prepaid expenses and other current assets | 41,618 | 30,771 |
Total current assets | 532,608 | 497,869 |
Property, plant and equipment, net (Note 5) | 144,955 | 151,352 |
Prepaid pension cost | 79,330 | 75,017 |
Deferred tax assets (Note 10) | 18,053 | 20,227 |
Goodwill (Note 13) | 248,416 | 252,520 |
Intangible assets (Note 13) | 28,474 | 31,323 |
Other noncurrent assets | 234,743 | 236,484 |
Total assets | 1,286,579 | 1,264,792 |
Current liabilities | ||
Notes payable and current portion of long-term debt (Note 12) | 6,667 | 6,700 |
Accounts payable | 80,465 | 70,210 |
Employees’ compensation | 35,099 | 40,249 |
Insurance and product liability | 81,464 | 47,456 |
Tax liabilities | 18,833 | 5,545 |
Other current liabilities | 58,827 | 63,897 |
Total current liabilities | 281,355 | 234,057 |
Long-term debt (Note 12) | 263,000 | 245,000 |
Pensions and other employee benefits | 165,272 | 174,598 |
Deferred tax liabilities (Note 10) | 28,334 | 26,306 |
Other noncurrent liabilities | 16,059 | 46,198 |
Total liabilities | $ 754,020 | $ 726,159 |
Commitments and contingencies (Note 17) | ||
Equity | ||
Preferred stock, 4 1/2% cumulative, $50 par value (Note 7) | $ 3,569 | $ 3,569 |
Common stock, no par value (Note 7) | 156,158 | 148,401 |
Treasury shares, at cost (Note 7) | (295,222) | (286,557) |
Accumulated other comprehensive loss | (181,283) | (166,730) |
Retained earnings | 845,584 | 835,126 |
Total MSA Safety Incorporated shareholders' equity | 528,806 | 533,809 |
Noncontrolling interests | 3,753 | 4,824 |
Total shareholders’ equity | 532,559 | 538,633 |
Total liabilities and shareholders’ equity | $ 1,286,579 | $ 1,264,792 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Trade receivables, allowance for doubtful accounts | $ 8,302 | $ 7,821 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred Stock, 4 1/2% Cumulative | ||
Percentage of cumulative preferred stock | 4.50% | 4.50% |
Preferred stock, par value (dollars per share) | $ 50 | $ 50 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net income | $ 33,295 | $ 36,412 |
Depreciation and amortization | 15,664 | 15,115 |
Pensions (Note 14) | 6,032 | 2,804 |
Net gain from disposal of assets | (1,969) | 0 |
Stock-based compensation (Note 11) | 6,787 | 6,810 |
Asset impairment charges | 2,438 | 0 |
Deferred income tax provision | 4 | (520) |
Other noncurrent assets and liabilities | (45,125) | (23,237) |
Currency exchange (gains), net | (783) | (26) |
Excess tax benefit related to stock plans | (890) | (2,116) |
Other, net | 1,045 | 913 |
Operating cash flow before changes in certain working capital items | 16,498 | 36,155 |
(Increase) in trade receivables | (13,794) | (8,809) |
(Increase) in inventories (Note 3) | (33,725) | (15,050) |
(Increase) in income taxes receivable, prepaid expenses and other current assets | (12,886) | (2,612) |
Increase in accounts payable and accrued liabilities | 51,620 | 5,626 |
(Increase) in certain working capital items | (8,785) | (20,845) |
Cash Flow From Operating Activities | 7,713 | 15,310 |
Investing Activities | ||
Capital expenditures | (16,015) | (14,528) |
Property disposals and other investing | 7,969 | 0 |
Cash Flow From Investing Activities | (8,046) | (14,528) |
Financing Activities | ||
Proceeds from (payments on) short-term debt, net | 4 | (817) |
Proceeds from long-term debt (Note 12) | 191,000 | 303,000 |
(Payments on) long-term debt (Note 12) | (173,000) | (282,000) |
Restricted cash | 336 | 499 |
Cash dividends paid | (23,522) | (22,501) |
Company stock purchases | (10,009) | (4,775) |
Exercise of stock options | 1,194 | 4,235 |
Employee stock purchase plan | 230 | 0 |
Excess tax benefit related to stock plans | 890 | 2,116 |
Cash Flow From Financing Activities | (12,877) | (243) |
Effect of exchange rate changes on cash and cash equivalents | (4,654) | (621) |
(Decrease) in cash and cash equivalents | (17,864) | (82) |
Beginning cash and cash equivalents | 105,998 | 96,265 |
Ending cash and cash equivalents | $ 88,134 | $ 96,183 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Retained Earnings and Accumulated Other Comprehensive Loss Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 533,809 | |||
Net income | $ 23,845 | $ 22,495 | 33,295 | $ 36,412 |
Pension and post-retirement plan adjustments net of tax (Three months June 30 2015 and 2014 $1,477 and $1,629 and six months June 30, 2015 and 2014 $2,894 and $2,434) | 2,623 | 2,882 | 5,152 | 4,300 |
Income attributable to noncontrolling interests | 649 | (7) | 1,139 | 244 |
Ending Balance | 528,806 | 528,806 | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 833,255 | 795,051 | 835,126 | 792,206 |
Net income | 23,845 | 22,495 | 33,295 | 36,412 |
Income attributable to noncontrolling interests | 453 | (7) | 685 | 102 |
Common dividends | (11,959) | (11,310) | (23,502) | (22,481) |
Preferred dividends | (10) | (10) | (20) | (20) |
Ending Balance | 845,584 | 806,219 | 845,584 | 806,219 |
Accumulated Other Comprehensive (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (187,993) | (77,667) | (166,730) | (78,269) |
Foreign currency translation adjustments | 3,891 | 54 | (20,159) | (904) |
Pension and post-retirement plan adjustments net of tax (Three months June 30 2015 and 2014 $1,477 and $1,629 and six months June 30, 2015 and 2014 $2,894 and $2,434) | 2,623 | 2,882 | 5,152 | 4,300 |
Income attributable to noncontrolling interests | 196 | 0 | 454 | 142 |
Ending Balance | $ (181,283) | $ (74,731) | $ (181,283) | $ (74,731) |
Consolidated Statement of Chan9
Consolidated Statement of Changes in Retained Earnings and Accumulated Other Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension and post-retirement plan adjustments, tax | $ 1,477 | $ 1,629 | $ 2,894 | $ 2,434 |
Accumulated Other Comprehensive (Loss) | ||||
Pension and post-retirement plan adjustments, tax | $ 1,477 | $ 1,629 | $ 2,894 | $ 2,434 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements of MSA Safety Incorporated and its subsidiaries ("MSA" or the "Company") are unaudited. These Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2014 condensed consolidated balance sheet data was derived from the audited consolidated balance sheet but does not include all disclosures required by generally accepted accounting principles (GAAP). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2014, which includes all disclosures required by GAAP. Certain segment results in previously issued financial statements were recast to conform to the current period presentation. Refer to Note 8 for further information regarding MSA's segment allocation methodology. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity . This ASU amends the definition of a discontinued operation to include a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This ASU was adopted on January 1, 2015. The adoption of this ASU may have a material effect on our consolidated financial statements in the event that we were to divest of a component that meets the definition of discontinued operations. In May 2014, the FASB issued ASU 2014-09, Revenue with Contracts from Customers . This ASU clarifies the principles for recognizing revenue such that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of the standard until January 1, 2018. The Company is currently evaluating the impact that the adoption of this ASU will have on the consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period . This ASU clarifies the accounting treatment for share based payment awards that contain performance targets. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern . This ASU clarifies management's responsibility to evaluate whether there is a substantial doubt about the entity's ability to continue as a going concern and provides guidance for related footnote disclosures. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items . This ASU eliminates the requirement to separately present and disclose extraordinary and unusual items in the financial statements. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis . This ASU changes the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs . This ASU simplifies the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-04, Retirement Benefits - Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. This ASU allows entities with a fiscal year end that does not coincide with a month end to use the closest month end for measurement purposes. This ASU also allows entities that have a significant event in an interim period that calls for a remeasurement of defined benefit plan assets and obligations to use the month end date that is closest to the date of the significant event. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Goodwill and Other Internal Use Software - Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . This ASU clarifies when entities should account for fees paid in a cloud computing arrangement as a software license or service contract. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) June 30, 2015 December 31, 2014 Finished products $ 75,832 $ 67,713 Work in process 8,161 8,942 Raw materials and supplies 66,422 46,299 Total inventories 150,415 122,954 Excess of FIFO costs over LIFO costs 44,468 44,468 Total FIFO inventories $ 194,883 $ 167,422 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges During the three and six months ended June 30, 2015 , we recorded restructuring charges of $0.2 million ( $0.1 million after tax) and $1.0 million ( $0.7 million after tax). International segment restructuring charges of $ 0.8 million for the six months ended June 30, 2015 were related to severance costs for staff reductions associated with ongoing initiatives to right size our operations in Brazil, China and Australia. During the three and six months ended June 30, 2014, we recorded charges of $0.9 million ( $0.6 million after tax) and $ 2.8 million ($ 1.8 million after tax), respectively. European segment restructuring charges for the six months ended June 30, 2014 of $1.5 million related primarily to severance from staff reductions in Germany and Italy and reorganization costs in Germany. International segment charges for the six months ended June 30, 2014 of $1.3 million were related to severance from staff reductions in South Africa and Australia. Activity and reserve balances for restructuring charges by segment were as follows: (in millions) North America Europe International Corporate Total Reserve balances at December 31, 2013 $ — $ 1.7 $ — $ — $ 1.7 Restructuring charges — 4.8 3.7 — 8.5 Asset disposals — (0.4 ) (1.7 ) — (2.1 ) Cash payments — (3.5 ) (1.8 ) — (5.3 ) Reserve balances at December 31, 2014 $ — $ 2.6 $ 0.2 $ — $ 2.8 Restructuring charges — 0.2 0.8 — 1.0 Cash payments — (1.7 ) (1.0 ) — (2.7 ) Reserve balances at June 30, 2015 $ — $ 1.1 $ — $ — $ 1.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table sets forth the components of property, plant and equipment: (In thousands) June 30, 2015 December 31, 2014 Land $ 1,833 $ 3,573 Buildings 106,263 110,144 Machinery and equipment 337,700 335,318 Construction in progress 16,195 17,327 Total 461,991 466,362 Less accumulated depreciation (317,036 ) (315,010 ) Net property $ 144,955 $ 151,352 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss The changes in Accumulated Other Comprehensive Loss by component were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Pension and other postretirement benefits Balance at beginning of period $ (123,041 ) $ (75,662 ) $ — $ — Amounts reclassified from Accumulated other comprehensive loss: Amortization of prior service cost 17 (63 ) — — Recognized net actuarial losses 4,083 4,574 — — Tax benefit (1,477 ) (1,629 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax 2,623 2,882 — — Balance at end of period $ (120,418 ) $ (72,780 ) $ — $ — Foreign Currency Translation Balance at beginning of period $ (64,952 ) $ (2,005 ) $ (2,457 ) $ (1,744 ) Foreign currency translation adjustments 4,087 54 (196 ) — Balance at end of period $ (60,865 ) $ (1,951 ) $ (2,653 ) $ (1,744 ) MSA Safety Incorporated Noncontrolling Interests Six Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Pension and other postretirement benefits Balance at beginning of period $ (125,570 ) $ (77,080 ) $ — $ — Amounts reclassified from Accumulated other comprehensive loss: Amortization of prior service cost 34 (126 ) — — Recognized net actuarial losses 8,012 6,860 — — Tax benefit (2,894 ) (2,434 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax 5,152 4,300 — — Balance at end of period $ (120,418 ) $ (72,780 ) $ — $ — Foreign Currency Translation Balance at beginning of period $ (41,160 ) $ (1,189 ) $ (2,199 ) $ (1,602 ) Foreign currency translation adjustments (19,705 ) (762 ) (454 ) (142 ) Balance at end of period $ (60,865 ) $ (1,951 ) $ (2,653 ) $ (1,744 ) The reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic pension and other post-retirement benefit costs (see Note 14—Pensions and Other Post-Retirement Benefits). |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50 . There are 71,373 shares issued and 52,878 shares held in treasury at June 30, 2015. There were no treasury purchases of preferred stock during the quarter ended June 30, 2015. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of June 30, 2015. Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 37,349,911 and 37,448,310 shares outstanding at June 30, 2015 and December 31, 2014, respectively. Treasury Shares - On May 12, 2015, the Board of Directors adopted a new stock repurchase program to replace the existing program. The new program authorizes up to $100.0 million in repurchases of MSA common stock in the open market and in private transactions. The share purchase program has no expiration date. The maximum shares that may be purchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. We repurchased 150,000 shares during the three months ended June 30, 2015. We do not have any other share purchase programs. There were 24,731,480 and 24,633,081 Treasury Shares at June 30, 2015 and December 31, 2014, respectively. The Company began issuing Treasury Shares for all share based benefit plans during 2014. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 117,529 Treasury Shares issued for these purposes during the six months ended June 30, 2015. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are organized into nine geographic operating segments based on management responsibilities. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into four reportable segments: North America, Europe, International and Corporate. The Corporate segment was established on January 1, 2015 to reflect the activities of centralized functions in our corporate headquarters and to capture results in a manner that the chief operating decision maker reviews. The corporate segment primarily consists of administrative expenses and centrally-managed costs such as interest expense and foreign exchange gains or losses. Additionally, effective January 1, 2015, we changed the allocation methodology applied to research and development expense. The 2014 segment results have been recast to conform with current period presentation. The Company's sales are allocated to each country based primarily on the destination of the end-customer. Reportable segment information is presented in the following table: (In thousands) North America Europe International Corporate Reconciling Items Consolidated Totals Three Months Ended June 30, 2015 Sales to external customers $ 156,193 $ 75,317 $ 55,501 $ — $ — $ 287,011 Intercompany sales 35,022 56,008 5,276 — (96,306 ) — Net income (loss): Continuing operations 22,253 6,596 2,989 (7,655 ) (461 ) 23,722 Discontinued operations — — 576 — — 576 Six Months Ended June 30, 2015 Sales to external customers $ 289,757 $ 141,330 $ 112,632 $ — $ — $ 543,719 Intercompany sales 70,761 102,117 10,714 — (183,592 ) — Net income (loss): Continuing operations 36,684 2,159 6,651 (12,492 ) 36 33,038 Discontinued operations — — 942 — — 942 (In thousands) North America Europe International Corporate Reconciling Items Consolidated Totals Three Months Ended June 30, 2014 Sales to external customers $ 138,782 $ 78,883 $ 64,828 $ — $ — $ 282,493 Intercompany sales 30,696 28,238 4,789 — (63,723 ) — Net income (loss): Continuing operations 19,407 6,780 3,172 (7,473 ) 246 22,132 Discontinued operations — — 356 — — 356 Six Months Ended June 30, 2014 Sales to external customers $ 268,303 $ 153,821 $ 125,414 $ — $ — $ 547,538 Intercompany sales 58,593 57,096 8,638 — (124,327 ) — Net income (loss): Continuing operations 33,667 10,232 7,763 (15,359 ) (649 ) 35,654 Discontinued operations — — 860 — — 860 Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments. The percentage of total sales by product group were as follows: Three Months Ended June 30, 2015 2014 Breathing Apparatus 23% 18% Fire Gas & Flame Detection 21% 22% Portable Gas Detection 13% 14% Industrial Head Protection 12% 14% Fire and Rescue Helmets 5% 5% Fall Protection 4% 4% Other 22% 23% Six Months Ended June 30, 2015 2014 Breathing Apparatus 23% 18% Fire Gas & Flame Detection 22% 22% Portable Gas Detection 14% 15% Industrial Head Protection 12% 14% Fire and Rescue Helmets 5% 5% Fall Protection 4% 4% Other 20% 22% |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities. Participating securities are defined as unvested stock-based payment awards that contain nonforfeitable rights to dividends. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Net income attributable to continuing operations $ 23,722 $ 22,132 $ 33,038 $ 35,654 Preferred stock dividends (10 ) (10 ) (20 ) (20 ) Income from continuing operations available to common equity 23,712 22,122 33,018 35,634 Dividends and undistributed earnings allocated to participating securities (68 ) (137 ) (96 ) (227 ) Income from continuing operations available to common shareholders 23,644 21,985 32,922 35,407 Net income attributable to discontinued operations $ 576 $ 356 $ 942 $ 860 Preferred stock dividends — — — — Income from discontinued operations available to common equity 576 356 942 860 Dividends and undistributed earnings allocated to participating securities (2 ) (2 ) (3 ) (6 ) Income from discontinued operations available to common shareholders 574 354 939 854 Basic weighted-average shares outstanding 37,351 37,128 37,323 37,072 Stock options and other stock compensation 475 591 484 597 Diluted weighted-average shares outstanding 37,826 37,719 37,807 37,669 Antidilutive stock options 492 — 492 — Earnings per share attributable to continuing operations: Basic $0.63 $0.59 $0.88 $0.96 Diluted $0.62 $0.58 $0.87 $0.94 Earnings per share attributable to discontinued operations: Basic $0.02 $0.01 $0.03 $0.02 Diluted $0.01 $0.01 $0.03 $0.02 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the second quarter of 2015 and 2014 was 34.6% and 30.7% , respectively. The 34.6% tax rate from the second quarter of 2015 differs from the U.S. federal statutory rate of 35% primarily due to income sourced from lower tax jurisdictions. The 30.7% tax rate from the second quarter of 2014 differs from the U.S. federal statutory rate of 35% primarily due to tax benefits of earning income in lower tax foreign jurisdictions. The effective tax rate for the six month period of 2015 was 46.0% . Excluding $7.6 million of charges for the first quarter of 2015 associated with exit taxes related to our European reorganization, the effective tax rate for the six month periods of 2015 and 2014 was 33.4% and 32.9% , respectively. The 33.4% rate for the six month period of 2015 differs from the U.S. federal statutory rate of 35% primarily due to income sourced from lower tax jurisdictions. The 32.9% rate for the six month period of 2014 differs from the U.S. federal statutory rate of 35% primarily due to tax benefits of earning income in lower tax foreign jurisdictions. At June 30, 2015 , the Company had a gross liability for unrecognized tax benefit of $14.8 million . The Company has recognized tax benefits associated with these liabilities of $5.2 million at June 30, 2015 . The gross liability includes a new amount from the first quarter associated with a foreign tax exposure. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest and penalties related to uncertain tax positions was $1.1 million at June 30, 2015 . |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans The 2008 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible employees through May 2018. Management stock-based compensation includes stock options, restricted stock, and performance stock units. The 2008 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2018. We issue treasury shares for stock option exercises, restricted stock grants, and performance stock unit grants. Please refer to Note 7 for further information regarding stock compensation share issuance. Stock compensation expense is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Stock compensation expense $ 1,806 $ 1,645 $ 6,787 $ 6,810 Income tax benefit 684 603 2,596 2,490 Stock compensation expense, net of income tax benefit $ 1,122 $ 1,042 $ 4,191 $ 4,320 Stock options are granted at market value option prices and expire after ten years . Stock options are exercisable beginning three years after the grant date. Stock option expense is based on the fair value of stock option grants estimated on the grant dates using the Black-Scholes option pricing model and the following weighted average assumptions for options granted in 2015. 2015 Fair value per option $ 15.63 Risk-free interest rate 1.77 % Expected dividend yield 2.32 % Expected volatility 38.94 % Expected life (years) 6.71 The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the 1 year average closing share price. Expected volatility is based on the historical volatility using daily stock prices. Expected life is based on historical stock option exercise data. A summary of stock option activity for the six months ended June 30, 2015 follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2015 1,618,561 $ 35.74 Granted 170,683 48.64 Exercised (31,022 ) 38.49 Forfeited (3,222 ) 49.67 Expired (1,109 ) 44.36 Outstanding at June 30, 2015 1,753,891 36.91 Exercisable at June 30, 2015 1,300,908 $ 32.48 Restricted stock is valued at the market value of the stock on the grant date. A summary of restricted stock activity for the six months ended June 30, 2015 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2015 268,743 $ 45.34 Granted 77,977 47.94 Vested (102,380 ) 37.85 Forfeited (2,832 ) 48.44 Unvested at June 30, 2015 241,508 $ 49.31 Performance stock units have a market condition and are valued on the grant date based using a Monte Carlo simulation valuation model to determine fair value. The final number of shares to be issued for performance stock units may range from zero to 200% of the target award based on achieving the specified performance targets over the performance period. The following weighted average assumptions were used in the Monte Carlo model for units granted in 2015. 2015 Fair value per unit $ 40.06 Risk-free interest rate 0.93 % Expected dividend yield 2.32 % Expected volatility 27.00 % MSA stock beta 1.132 The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the 1 year average closing share price. Expected volatility is based on the historical volatility using daily stock prices. Stock beta is calculated with three years of daily price data. A summary of performance stock unit activity for the six months ended June 30, 2015 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2015 143,961 $ 52.42 Granted 54,856 40.06 Performance adjustments 16,447 41.45 Vested (63,164 ) 41.66 Forfeited (1,088 ) 52.15 Unvested at June 30, 2015 151,012 $ 51.24 The performance adjustments above relate to the final number of shares issued for the 2012 Management Performance Units, which were 133.6% of the target award based on Total Shareholder Return during the three year performance period, and vested in the first quarter of 2015. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) June 30, 2015 December 31, 2014 2006 Senior Notes payable through 2021, 5.41% $ 46,667 $ 46,667 2010 Senior Notes payable through 2021, 4.00% 100,000 100,000 Senior revolving credit facility maturing in 2019 123,000 105,000 Total 269,667 251,667 Amounts due within one year 6,667 6,667 Long-term debt $ 263,000 $ 245,000 At June 30, 2015, $173.7 million of the $300.0 million senior revolving credit facility was unused including letters of credit. The revolving credit facility and note purchase agreements require the Company to comply with specified financial covenants. In addition, the credit facility and the note purchase agreements contain negative covenants limiting the ability of the Company and its subsidiaries to enter into specified transactions. The Company was in compliance with all covenants at June 30, 2015. The Company had outstanding bank guarantees and standby letters of credit with banks as of June 30, 2015 totaling $6.4 million , of which $3.3 million relate to the senior revolving credit facility. The letters of credit serve to cover customer requirements in connection with certain sales orders and insurance companies. No amounts were drawn on these arrangements at June 30, 2015. The Company is also required to provide cash collateral in connection with certain arrangements. At June 30, 2015, the Company has $2.4 million of restricted cash in support of these arrangements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill during the six months ended June 30, 2015 are as follows: (In thousands) Goodwill Balance at January 1 $ 252,520 Currency translation (4,104 ) Balance at June 30 $ 248,416 At June 30, 2015 , goodwill of $196.5 million , $49.9 million , and $2.0 million related to the North American, European, and International reportable segments, respectively. Changes in intangible assets, net of accumulated amortization during the six months ended June 30, 2015 are as follows: (In thousands) Intangible Assets Net balance at January 1 $ 31,323 Amortization expense (1,422 ) Impairment Loss (723 ) Currency translation (704 ) Net balance at June 30 $ 28,474 In June 2015, we decided to wind down the sales efforts associated with certain non-core products. A discounted cash flow valuation showed that the book value of intangible assets used to support these non-core product sales exceeded their fair value by $0.7 million . This impairment loss is reported in other income in the condensed consolidated statement of income and included in North America in segment information. The impact of this decision is not expected to be significant to future consolidated financial results. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2015 2014 2015 2014 Three Months Ended June 30, Service cost $ 2,904 $ 2,481 $ 111 $ 156 Interest cost 4,593 4,891 216 299 Expected return on plan assets (8,537 ) (8,251 ) — — Amortization of prior service cost 17 21 (84 ) (84 ) Recognized net actuarial losses 4,083 2,203 7 83 Settlements 33 57 — — Net periodic benefit cost $ 3,093 $ 1,402 $ 250 $ 454 Six Months Ended June 30, Service cost $ 5,808 $ 4,962 $ 222 $ 312 Interest cost 9,186 9,782 432 598 Expected return on plan assets (17,074 ) (16,502 ) — — Amortization of prior service cost 34 42 (168 ) (168 ) Recognized net actuarial losses 8,012 4,406 14 166 Settlements 66 114 — — Net periodic benefit cost $ 6,032 $ 2,804 $ 500 $ 908 We made contributions of $2.0 million to our pension plans during the six months ended June 30, 2015 . We expect to make total contributions of approximately $4.1 million to our pension plans in 2015 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As part of our currency exchange rate risk management strategy, we may enter into certain derivative foreign currency forward contracts that do not meet the U.S. GAAP criteria for hedge accounting, but which have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in currency exchange gains or losses in the condensed consolidated statement of income. The notional amount of open forward contracts was $68.7 million and $60.9 million at June 30, 2015 and December 31, 2014, respectively. The following table presents the balance sheet location and fair value of assets associated with derivative financial instruments: (In thousands) June 30, 2015 December 31, 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts: other current liabilities $ 390 $ 429 Foreign exchange contracts: other current assets 636 34 The following table presents the statement of income location and impact of derivative financial instruments: Loss Recognized in Income Six Months Ended June 30, (In thousands) Statement of Income Location 2015 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 1,100 $ 1,203 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: • Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3—Unobservable inputs for the asset or liability. The valuation methodologies we used to measure financial assets and liabilities were limited to the derivative financial instruments described in Note 15. We estimate the fair value of the derivative financial instruments, consisting of foreign currency forward contracts, based upon valuation models with inputs that generally can be verified by observable market conditions and do not involve significant management judgment. Accordingly, the fair values of the derivative financial instruments are classified within Level 2 of the fair value hierarchy. With the exception of fixed rate long-term debt, we believe that the reported carrying amounts of our financial assets and liabilities approximate their fair values. The reported carrying amount of our fixed rate long-term debt (including the current portion) was $146.7 million and $153.3 million at June 30, 2015 and 2014, respectively. The fair value of this debt was $153.3 million and $162.7 million at June 30, 2015 and 2014, respectively. The fair value of our long-term debt was determined using cash flow valuation models to estimate the market value of similar instruments as of the respective balance sheet dates. The fair value of this debt was determined using Level 3 inputs as described above. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies MSA LLC, a subsidiary of MSA Safety Incorporated (formerly Mine Safety Appliances Company), categorizes the product liability losses that its various subsidiaries experience into two main categories: single incident and cumulative trauma. Single incident product liability claims are discrete incidents that are typically known to us when they occur and involve observable injuries which provide an objective basis for quantifying damages. MSA LLC estimates its liability for single incident product liability claims based on expected settlement costs for pending claims and an estimate of costs for unreported claims. The estimate for unreported claims is based on experience, sales volumes and other relevant information. The reserve for single incident product liability claims was $3.4 million at June 30, 2015 and $3.5 million at December 31, 2014 . Single incident product liability expense during the six months ended June 30, 2015 and 2014 was $0.7 million and $ 0.6 million , respectively. Single incident product liability exposures are evaluated on an ongoing basis and adjustments are made to the reserve as appropriate. Cumulative trauma product liability claims involve exposures to harmful substances (e.g., silica, asbestos and coal dust) that occurred many years ago and may have developed over long periods of time into diseases such as silicosis, asbestosis, or coal worker’s pneumoconiosis. MSA LLC is presently named as a defendant in 2,047 lawsuits, some of which involve multiple plaintiffs. In these lawsuits, plaintiffs allege to have contracted certain cumulative trauma diseases related to exposure to silica, asbestos, and/or coal dust. These lawsuits mainly involve respiratory protection products allegedly manufactured and sold by MSA LLC or its predecessors. A summary of cumulative trauma product liability lawsuit activity follows: Six Months Ended June 30, 2015 Year Ended December 31, 2014 Open lawsuits, beginning of period 2,326 2,840 New lawsuits 167 542 Settled and dismissed lawsuits (446 ) (1,056 ) Open lawsuits, end of period 2,047 2,326 More than half of the open lawsuits at June 30, 2015 have had a de minimis level of activity over the last 5 years. It is possible that these cases could become active again at any point due to changes in circumstances. Cumulative trauma product liability litigation has been difficult to predict. In our experience, until late in a lawsuit, we cannot reasonably determine whether it is probable that any of MSA LLC's cumulative trauma lawsuits will ultimately result in a liability. This uncertainty is caused by many factors, including the following: cumulative trauma complaints generally do not provide information sufficient to determine if a loss is probable; cumulative trauma litigation is inherently unpredictable; and information is often insufficient to determine if a lawsuit will develop into an actively litigated case. Even when a case is actively litigated, it is often difficult to determine if the lawsuit will be dismissed or otherwise resolved until late in the lawsuit. Moreover, even once it is probable that such a lawsuit will result in a loss, it is often difficult to reasonably estimate the amount of actual loss that will be incurred. These amounts are highly variable and turn on a case-by-case analysis of the relevant facts, which are often not learned until late in the lawsuit. Consequently, MSA LLC has historically been unable to estimate its cumulative trauma product liability exposure. As part of the company's ongoing assessment of the ability to estimate MSA LLC's cumulative trauma product liability exposure for both pending and unasserted claims, in the 2014 third quarter, MSA LLC engaged an outside valuation consultant to assist with this effort. This assessment was based on MSA LLC’s cumulative claims experience, including recent claims trends, and the development of enhanced claims data analytics. The analysis focused on claims made or resolved over the last several years as these claims are likely to best represent future claim characteristics. After extensive review by the valuation consultant, MSA LLC, and its outside counsel, it was determined that MSA LLC cannot estimate its liability for cumulative trauma product liability claims. This is a result of numerous factors, including annual claims levels and indemnity payments that are highly variable and a lack of consistency in the source of the claims. MSA LLC will continue to regularly evaluate its ability to estimate its cumulative trauma product liability exposure. During the 2014 fourth quarter and into January 2015, MSA LLC settled a number of cumulative trauma cases for $71.8 million , the vast majority of which were insured. The impact of these settlements was reflected in MSA Safety Incorporated’s 2014 consolidated financial statements and in the above year-end roll-forward of lawsuits. As a result of these settlements, at June 30, 2015, the cumulative trauma product liability reserve totaled $72.3 million , most of which will be paid equally over four quarters, beginning in the 2015 third quarter and ending in the 2016 second quarter. All of this amount, was recorded in the insurance and product liability line in the other current liabilities section of the condensed consolidated balance sheet. The cumulative trauma product liability reserve totaled $74.9 million at December 31, 2014, comprising of $35.1 million in other non-current liabilities and the remainder recorded in the insurance and product liability line in the current liabilities section of the consolidated balance sheet. Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that MSA LLC may not ultimately incur charges in excess of presently recorded liabilities. Our aggregate cumulative trauma product liability losses and administrative and defense costs for the three years ended December 31, 2014, totaled approximately $169.6 million , substantially all of which was insured. Insurance Receivable With some common contract exclusions, we maintain insurance for cumulative trauma product liability claims. We have purchased insurance policies for the policy years from 1952-1986 from over 20 different insurance carriers that provide coverage for cumulative trauma product liability losses, and in many instances, related defense costs (the "Occurrence-Based Policies"). The available limits of these policies well exceed the recorded insurance receivable balance. In the normal course of business, we make payments to settle product liability claims and for related defense costs. We record receivables for the amounts that are covered by insurance. Since December 31, 2013, the insurance receivable has increased by $94.2 million as a result of the above noted settlements and related defense costs. Various factors could affect the timing and amount of recovery of the insurance receivable, including the outcome of negotiations with insurers, legal proceedings with respect to product liability insurance coverage and the extent to which insurers may become insolvent in the future. Insurance receivables at June 30, 2015 totaled $219.0 million , of which $2.0 million is reported in other current assets and $217.0 million in other non-current assets. Insurance receivables at December 31, 2014 totaled $220.5 million , of which $2.0 million is reported in other current assets and $218.5 million in other non-current assets. A summary of insurance receivable balances and activity related to cumulative trauma product liability losses follows: (In millions) Six Months Ended June 30, 2015 Year Ended December 31, 2014 Balance beginning of period $ 220.5 $ 124.8 Additions 3.5 98.2 Collections and settlements (5.0 ) (2.5 ) Balance end of period $ 219.0 $ 220.5 Additions to insurance receivables in the above table represent insured cumulative trauma product liability losses and related defense costs. Uninsured cumulative trauma product liability losses during the three months ended June 30, 2015, and 2014 were $0.3 million , $2.2 million , respectively. Collections primarily represent agreements with insurance companies to pay amounts due that are applicable to cumulative trauma claims. In cases where the payment stream covers multiple years, the present value of the payments is recorded as a note receivable (current and long-term) in the consolidated balance sheet within prepaid expenses and other current assets and other noncurrent assets. MSA LLC believes that the increase in its insurance receivable balance that it has experienced since 2005 is primarily due to disagreements among its insurance carriers, and consequently with MSA LLC, as to when the individual obligations of insurance carriers to pay are triggered and the amount of each insurer’s obligation, as compared to other insurers. MSA LLC believes that its insurers do not contest that they have issued policies to our subsidiaries or that these policies cover cumulative trauma product liability claims. We believe that successful resolution of insurance litigation with various insurance carriers in recent years demonstrates that we have strong legal positions concerning MSA LLC's rights to coverage. The collectability of MSA LLC's insurance receivables is regularly evaluated and the amounts recorded are probable of collection. These conclusions are based on analysis of the terms of the underlying insurance policies, experience in successfully recovering cumulative trauma product liability claims from our insurers under other policies, the financial ability of the insurance carriers to pay the claims, understanding and interpretation of the relevant facts and applicable law and the advice of MSA LLC's legal counsel, who believe that the insurers are required to provide coverage based on the terms of the policies. Although it is impossible to predict the ultimate outcome of current open claims, based on current information, our experience in handling these matters, and our substantial insurance program, we do not believe that the resolution of these claims will have a material adverse effect on our future consolidated financial condition or liquidity. Insurance Litigation MSA LLC is currently involved in insurance coverage litigation with a number of our insurance carriers regarding its Occurrence-Based Policies. In 2009, MSA LLC (as Mine Safety Appliances Company) sued The North River Insurance Company (North River) in the United States District Court for the Western District of Pennsylvania, alleging that North River breached one of its insurance policies by failing to pay amounts owed to MSA LLC and that it engaged in bad-faith claims handling. MSA LLC believes that North River’s refusal to indemnify it under the policy for product liability losses and legal fees paid by MSA LLC is wholly contrary to Pennsylvania law and MSA LLC is vigorously pursuing the legal actions necessary to collect all due amounts. Motions for summary judgment on certain issues will be submitted to the court at the earliest possible date. A trial date has not yet been scheduled. In 2010, North River sued MSA LLC (as Mine Safety Appliances Company) in the Court of Common Pleas of Allegheny County, Pennsylvania seeking a declaratory judgment concerning their responsibilities under three additional policies. MSA LLC asserted claims against North River for breaches of contract for failures to pay amounts owed to MSA LLC. MSA LLC also alleges that North River engaged in bad-faith claims handling. MSA LLC believes that North River’s refusal to indemnify us under these policies for product liability losses and legal fees paid by MSA LLC is wholly contrary to Pennsylvania law and MSA LLC is vigorously pursuing the legal actions necessary to collect all due amounts. Summary judgment on certain issues is pending with the court. A trial date has not yet been scheduled. In July 2010, MSA LLC (as Mine Safety Appliances Company) filed a lawsuit in the Superior Court of the State of Delaware seeking declaratory and other relief from the majority of its excess insurance carriers concerning the future rights and obligations of MSA LLC and its excess insurance carriers under various insurance policies. The reason for this insurance coverage action is to secure a comprehensive resolution of its rights under the insurance policies issued by the insurers. Motions for summary judgment on certain issues will be submitted to the court at various times in 2015. A trial date is currently scheduled for the second quarter of 2016. MSA LLC has resolved claims against certain of its insurance carriers on some of their policies, including the Occurrence-Based Policies through negotiated settlements. When a settlement is reached, MSA LLC dismisses the settling carrier from relevant above noted lawsuit(s). Assuming satisfactory resolution, once disputes are resolved with each of the remaining carriers responsible for the Occurrence-Based Policies, MSA LLC anticipates having commitments to provide future payment streams which should be sufficient to satisfy its recorded receivables due from insurance carriers. In addition, MSA LLC likely will retain some coverage through coverage-in-place agreements, although that coverage may not be immediately accessible. When these insurance coverage matters are fully resolved, MSA LLC (and its coverage-in-place carriers, where applicable) will be responsible for expenses related to cumulative trauma product liability claims. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company is actively negotiating the sale of substantially all of the assets and liabilities of its South African personal protective equipment distribution business and its Zambian operations. Management continues to conclude it is probable that the sale of these assets and liabilities will close in 2015. The operations of this business qualify as a component of an entity under FASB ASC 205-20 "Presentation of Financial Statements - Discontinued Operations", and thus the operations have been reclassified as discontinued operations and prior periods have been reclassified to conform to this presentation. Summarized financial information for discontinued operations is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Discontinued Operations Net sales $ 11,384 $ 10,589 $ 22,541 $ 20,649 Other income, net 107 15 173 28 Cost and expenses: Cost of products sold 9,058 8,455 18,048 16,151 Selling, general and administrative 1,682 1,605 3,284 3,159 Currency exchange losses (gains), net 38 (62 ) 208 (69 ) Income from discontinued operations before income taxes 713 606 1,174 1,436 Provision for income taxes 243 153 396 369 Income from discontinued operations, net of tax $ 470 $ 453 $ 778 $ 1,067 Certain balance sheet items that are related to the Company's South African personal protective equipment distribution business and its Zambian operations are reported as discontinued operations. These items are reported in the following consolidated balance sheet lines: (In thousands) June 30, 2015 December 31, 2014 Discontinued Operations assets and liabilities Trade receivables, less allowance for doubtful accounts $ 6,949 $ 6,638 Inventories 11,643 11,829 Net property 288 342 Other assets 1,896 2,022 Total assets 20,776 20,831 Accounts payable 4,053 5,263 Accrued and other liabilities 1,059 991 Total liabilities 5,112 6,254 Net assets $ 15,664 $ 14,577 The following summary provides financial information for discontinued operations related to net loss related to noncontrolling interests: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net loss (income) attributable to noncontrolling interests Loss from continuing operations $ 347 $ 90 $ 521 $ 309 Loss (income) from discontinued operations 106 (97 ) 164 (207 ) Net loss (income) $ 453 $ (7 ) $ 685 $ 102 |
Recently Adopted and Recently28
Recently Adopted and Recently Issued Accounting Standards Recently Adopted and Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Recently Adopted and Recently Issued Accounting Standards In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity . This ASU amends the definition of a discontinued operation to include a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This ASU was adopted on January 1, 2015. The adoption of this ASU may have a material effect on our consolidated financial statements in the event that we were to divest of a component that meets the definition of discontinued operations. In May 2014, the FASB issued ASU 2014-09, Revenue with Contracts from Customers . This ASU clarifies the principles for recognizing revenue such that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of the standard until January 1, 2018. The Company is currently evaluating the impact that the adoption of this ASU will have on the consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period . This ASU clarifies the accounting treatment for share based payment awards that contain performance targets. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern . This ASU clarifies management's responsibility to evaluate whether there is a substantial doubt about the entity's ability to continue as a going concern and provides guidance for related footnote disclosures. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items . This ASU eliminates the requirement to separately present and disclose extraordinary and unusual items in the financial statements. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis . This ASU changes the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs . This ASU simplifies the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-04, Retirement Benefits - Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. This ASU allows entities with a fiscal year end that does not coincide with a month end to use the closest month end for measurement purposes. This ASU also allows entities that have a significant event in an interim period that calls for a remeasurement of defined benefit plan assets and obligations to use the month end date that is closest to the date of the significant event. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Goodwill and Other Internal Use Software - Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . This ASU clarifies when entities should account for fees paid in a cloud computing arrangement as a software license or service contract. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) June 30, 2015 December 31, 2014 Finished products $ 75,832 $ 67,713 Work in process 8,161 8,942 Raw materials and supplies 66,422 46,299 Total inventories 150,415 122,954 Excess of FIFO costs over LIFO costs 44,468 44,468 Total FIFO inventories $ 194,883 $ 167,422 |
Restructuring and Other Charg30
Restructuring and Other Charges Restructuring and Related Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Activity and reserve balances for restructuring charges by segment were as follows: (in millions) North America Europe International Corporate Total Reserve balances at December 31, 2013 $ — $ 1.7 $ — $ — $ 1.7 Restructuring charges — 4.8 3.7 — 8.5 Asset disposals — (0.4 ) (1.7 ) — (2.1 ) Cash payments — (3.5 ) (1.8 ) — (5.3 ) Reserve balances at December 31, 2014 $ — $ 2.6 $ 0.2 $ — $ 2.8 Restructuring charges — 0.2 0.8 — 1.0 Cash payments — (1.7 ) (1.0 ) — (2.7 ) Reserve balances at June 30, 2015 $ — $ 1.1 $ — $ — $ 1.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (In thousands) June 30, 2015 December 31, 2014 Land $ 1,833 $ 3,573 Buildings 106,263 110,144 Machinery and equipment 337,700 335,318 Construction in progress 16,195 17,327 Total 461,991 466,362 Less accumulated depreciation (317,036 ) (315,010 ) Net property $ 144,955 $ 151,352 |
Reclassifications Out of Accu32
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Reclassification of Pension and Post-Retirement Benefit Plan Out of Accumulated Other Comprehensive Loss | The changes in Accumulated Other Comprehensive Loss by component were as follows: MSA Safety Incorporated Noncontrolling Interests Three Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Pension and other postretirement benefits Balance at beginning of period $ (123,041 ) $ (75,662 ) $ — $ — Amounts reclassified from Accumulated other comprehensive loss: Amortization of prior service cost 17 (63 ) — — Recognized net actuarial losses 4,083 4,574 — — Tax benefit (1,477 ) (1,629 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax 2,623 2,882 — — Balance at end of period $ (120,418 ) $ (72,780 ) $ — $ — Foreign Currency Translation Balance at beginning of period $ (64,952 ) $ (2,005 ) $ (2,457 ) $ (1,744 ) Foreign currency translation adjustments 4,087 54 (196 ) — Balance at end of period $ (60,865 ) $ (1,951 ) $ (2,653 ) $ (1,744 ) MSA Safety Incorporated Noncontrolling Interests Six Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Pension and other postretirement benefits Balance at beginning of period $ (125,570 ) $ (77,080 ) $ — $ — Amounts reclassified from Accumulated other comprehensive loss: Amortization of prior service cost 34 (126 ) — — Recognized net actuarial losses 8,012 6,860 — — Tax benefit (2,894 ) (2,434 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax 5,152 4,300 — — Balance at end of period $ (120,418 ) $ (72,780 ) $ — $ — Foreign Currency Translation Balance at beginning of period $ (41,160 ) $ (1,189 ) $ (2,199 ) $ (1,602 ) Foreign currency translation adjustments (19,705 ) (762 ) (454 ) (142 ) Balance at end of period $ (60,865 ) $ (1,951 ) $ (2,653 ) $ (1,744 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | Reportable segment information is presented in the following table: (In thousands) North America Europe International Corporate Reconciling Items Consolidated Totals Three Months Ended June 30, 2015 Sales to external customers $ 156,193 $ 75,317 $ 55,501 $ — $ — $ 287,011 Intercompany sales 35,022 56,008 5,276 — (96,306 ) — Net income (loss): Continuing operations 22,253 6,596 2,989 (7,655 ) (461 ) 23,722 Discontinued operations — — 576 — — 576 Six Months Ended June 30, 2015 Sales to external customers $ 289,757 $ 141,330 $ 112,632 $ — $ — $ 543,719 Intercompany sales 70,761 102,117 10,714 — (183,592 ) — Net income (loss): Continuing operations 36,684 2,159 6,651 (12,492 ) 36 33,038 Discontinued operations — — 942 — — 942 (In thousands) North America Europe International Corporate Reconciling Items Consolidated Totals Three Months Ended June 30, 2014 Sales to external customers $ 138,782 $ 78,883 $ 64,828 $ — $ — $ 282,493 Intercompany sales 30,696 28,238 4,789 — (63,723 ) — Net income (loss): Continuing operations 19,407 6,780 3,172 (7,473 ) 246 22,132 Discontinued operations — — 356 — — 356 Six Months Ended June 30, 2014 Sales to external customers $ 268,303 $ 153,821 $ 125,414 $ — $ — $ 547,538 Intercompany sales 58,593 57,096 8,638 — (124,327 ) — Net income (loss): Continuing operations 33,667 10,232 7,763 (15,359 ) (649 ) 35,654 Discontinued operations — — 860 — — 860 |
Revenue from External Customers by Products and Services | The percentage of total sales by product group were as follows: Three Months Ended June 30, 2015 2014 Breathing Apparatus 23% 18% Fire Gas & Flame Detection 21% 22% Portable Gas Detection 13% 14% Industrial Head Protection 12% 14% Fire and Rescue Helmets 5% 5% Fall Protection 4% 4% Other 22% 23% |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Net income attributable to continuing operations $ 23,722 $ 22,132 $ 33,038 $ 35,654 Preferred stock dividends (10 ) (10 ) (20 ) (20 ) Income from continuing operations available to common equity 23,712 22,122 33,018 35,634 Dividends and undistributed earnings allocated to participating securities (68 ) (137 ) (96 ) (227 ) Income from continuing operations available to common shareholders 23,644 21,985 32,922 35,407 Net income attributable to discontinued operations $ 576 $ 356 $ 942 $ 860 Preferred stock dividends — — — — Income from discontinued operations available to common equity 576 356 942 860 Dividends and undistributed earnings allocated to participating securities (2 ) (2 ) (3 ) (6 ) Income from discontinued operations available to common shareholders 574 354 939 854 Basic weighted-average shares outstanding 37,351 37,128 37,323 37,072 Stock options and other stock compensation 475 591 484 597 Diluted weighted-average shares outstanding 37,826 37,719 37,807 37,669 Antidilutive stock options 492 — 492 — Earnings per share attributable to continuing operations: Basic $0.63 $0.59 $0.88 $0.96 Diluted $0.62 $0.58 $0.87 $0.94 Earnings per share attributable to discontinued operations: Basic $0.02 $0.01 $0.03 $0.02 Diluted $0.01 $0.01 $0.03 $0.02 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Compensation Expense | Stock compensation expense is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Stock compensation expense $ 1,806 $ 1,645 $ 6,787 $ 6,810 Income tax benefit 684 603 2,596 2,490 Stock compensation expense, net of income tax benefit $ 1,122 $ 1,042 $ 4,191 $ 4,320 |
Schedule of Valuation Assumptions, Stock Options | Stock option expense is based on the fair value of stock option grants estimated on the grant dates using the Black-Scholes option pricing model and the following weighted average assumptions for options granted in 2015. 2015 Fair value per option $ 15.63 Risk-free interest rate 1.77 % Expected dividend yield 2.32 % Expected volatility 38.94 % Expected life (years) 6.71 |
Summary of Stock Option Activity | A summary of stock option activity for the six months ended June 30, 2015 follows: Shares Weighted Average Exercise Price Outstanding at January 1, 2015 1,618,561 $ 35.74 Granted 170,683 48.64 Exercised (31,022 ) 38.49 Forfeited (3,222 ) 49.67 Expired (1,109 ) 44.36 Outstanding at June 30, 2015 1,753,891 36.91 Exercisable at June 30, 2015 1,300,908 $ 32.48 |
Summary of Restricted Stock Activity | A summary of restricted stock activity for the six months ended June 30, 2015 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2015 268,743 $ 45.34 Granted 77,977 47.94 Vested (102,380 ) 37.85 Forfeited (2,832 ) 48.44 Unvested at June 30, 2015 241,508 $ 49.31 |
Schedule of Value Assumptions, Equity Instruments Other than Options | The following weighted average assumptions were used in the Monte Carlo model for units granted in 2015. 2015 Fair value per unit $ 40.06 Risk-free interest rate 0.93 % Expected dividend yield 2.32 % Expected volatility 27.00 % MSA stock beta 1.132 |
Summary of Performance Stock Unit Activity | A summary of performance stock unit activity for the six months ended June 30, 2015 follows: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2015 143,961 $ 52.42 Granted 54,856 40.06 Performance adjustments 16,447 41.45 Vested (63,164 ) 41.66 Forfeited (1,088 ) 52.15 Unvested at June 30, 2015 151,012 $ 51.24 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (In thousands) June 30, 2015 December 31, 2014 2006 Senior Notes payable through 2021, 5.41% $ 46,667 $ 46,667 2010 Senior Notes payable through 2021, 4.00% 100,000 100,000 Senior revolving credit facility maturing in 2019 123,000 105,000 Total 269,667 251,667 Amounts due within one year 6,667 6,667 Long-term debt $ 263,000 $ 245,000 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill during the six months ended June 30, 2015 are as follows: (In thousands) Goodwill Balance at January 1 $ 252,520 Currency translation (4,104 ) Balance at June 30 $ 248,416 |
Changes in Intangible Assets, Net of Accumulated Amortization | Changes in intangible assets, net of accumulated amortization during the six months ended June 30, 2015 are as follows: (In thousands) Intangible Assets Net balance at January 1 $ 31,323 Amortization expense (1,422 ) Impairment Loss (723 ) Currency translation (704 ) Net balance at June 30 $ 28,474 |
Pensions and Other Postretire38
Pensions and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following: Pension Benefits Other Benefits (In thousands) 2015 2014 2015 2014 Three Months Ended June 30, Service cost $ 2,904 $ 2,481 $ 111 $ 156 Interest cost 4,593 4,891 216 299 Expected return on plan assets (8,537 ) (8,251 ) — — Amortization of prior service cost 17 21 (84 ) (84 ) Recognized net actuarial losses 4,083 2,203 7 83 Settlements 33 57 — — Net periodic benefit cost $ 3,093 $ 1,402 $ 250 $ 454 Six Months Ended June 30, Service cost $ 5,808 $ 4,962 $ 222 $ 312 Interest cost 9,186 9,782 432 598 Expected return on plan assets (17,074 ) (16,502 ) — — Amortization of prior service cost 34 42 (168 ) (168 ) Recognized net actuarial losses 8,012 4,406 14 166 Settlements 66 114 — — Net periodic benefit cost $ 6,032 $ 2,804 $ 500 $ 908 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Location and Fair Value of Assets and Liabilities Associated with Derivative Financial Instruments | The following table presents the balance sheet location and fair value of assets associated with derivative financial instruments: (In thousands) June 30, 2015 December 31, 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts: other current liabilities $ 390 $ 429 Foreign exchange contracts: other current assets 636 34 |
Income Statement Location and Impact of Derivative Financial Instruments | The following table presents the statement of income location and impact of derivative financial instruments: Loss Recognized in Income Six Months Ended June 30, (In thousands) Statement of Income Location 2015 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts Currency exchange losses, net $ 1,100 $ 1,203 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Cumulative Trauma Product Liability Claims Activity | A summary of cumulative trauma product liability lawsuit activity follows: Six Months Ended June 30, 2015 Year Ended December 31, 2014 Open lawsuits, beginning of period 2,326 2,840 New lawsuits 167 542 Settled and dismissed lawsuits (446 ) (1,056 ) Open lawsuits, end of period 2,047 2,326 |
Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses | A summary of insurance receivable balances and activity related to cumulative trauma product liability losses follows: (In millions) Six Months Ended June 30, 2015 Year Ended December 31, 2014 Balance beginning of period $ 220.5 $ 124.8 Additions 3.5 98.2 Collections and settlements (5.0 ) (2.5 ) Balance end of period $ 219.0 $ 220.5 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Summarized financial information for discontinued operations is as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Discontinued Operations Net sales $ 11,384 $ 10,589 $ 22,541 $ 20,649 Other income, net 107 15 173 28 Cost and expenses: Cost of products sold 9,058 8,455 18,048 16,151 Selling, general and administrative 1,682 1,605 3,284 3,159 Currency exchange losses (gains), net 38 (62 ) 208 (69 ) Income from discontinued operations before income taxes 713 606 1,174 1,436 Provision for income taxes 243 153 396 369 Income from discontinued operations, net of tax $ 470 $ 453 $ 778 $ 1,067 Certain balance sheet items that are related to the Company's South African personal protective equipment distribution business and its Zambian operations are reported as discontinued operations. These items are reported in the following consolidated balance sheet lines: (In thousands) June 30, 2015 December 31, 2014 Discontinued Operations assets and liabilities Trade receivables, less allowance for doubtful accounts $ 6,949 $ 6,638 Inventories 11,643 11,829 Net property 288 342 Other assets 1,896 2,022 Total assets 20,776 20,831 Accounts payable 4,053 5,263 Accrued and other liabilities 1,059 991 Total liabilities 5,112 6,254 Net assets $ 15,664 $ 14,577 The following summary provides financial information for discontinued operations related to net loss related to noncontrolling interests: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net loss (income) attributable to noncontrolling interests Loss from continuing operations $ 347 $ 90 $ 521 $ 309 Loss (income) from discontinued operations 106 (97 ) 164 (207 ) Net loss (income) $ 453 $ (7 ) $ 685 $ 102 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 75,832 | $ 67,713 |
Work in process | 8,161 | 8,942 |
Raw materials and supplies | 66,422 | 46,299 |
Total inventories | 150,415 | 122,954 |
Excess of FIFO costs over LIFO costs | 44,468 | 44,468 |
Total FIFO inventories | $ 194,883 | $ 167,422 |
Restructuring and Other Charg43
Restructuring and Other Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 227 | $ 857 | $ 958 | $ 2,757 | $ 8,500 |
Restructuring and other charges, net of tax | $ 100 | $ 600 | 700 | 1,800 | |
International Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 800 | 1,300 | 3,700 | ||
European Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 200 | $ 1,500 | $ 4,800 |
Restructuring and Other Charg44
Restructuring and Other Charges Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring reserve, beginning balance | $ 2,800 | $ 1,700 | $ 1,700 | ||
Restructuring charges | $ 227 | $ 857 | 958 | 2,757 | 8,500 |
Asset disposals | (2,100) | ||||
Cash payments | (2,700) | (5,300) | |||
Restructuring reserve, ending balance | 1,100 | 1,100 | 2,800 | ||
North American Segment | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring reserve, beginning balance | 0 | 0 | 0 | ||
Restructuring charges | 0 | 0 | |||
Asset disposals | 0 | ||||
Cash payments | 0 | 0 | |||
Restructuring reserve, ending balance | 0 | 0 | 0 | ||
European Segment | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring reserve, beginning balance | 2,600 | 1,700 | 1,700 | ||
Restructuring charges | 200 | 1,500 | 4,800 | ||
Asset disposals | (400) | ||||
Cash payments | (1,700) | (3,500) | |||
Restructuring reserve, ending balance | 1,100 | 1,100 | 2,600 | ||
International Segment | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring reserve, beginning balance | 200 | 0 | 0 | ||
Restructuring charges | 800 | 1,300 | 3,700 | ||
Asset disposals | (1,700) | ||||
Cash payments | (1,000) | (1,800) | |||
Restructuring reserve, ending balance | 0 | 0 | 200 | ||
Corporate Segment | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring reserve, beginning balance | 0 | $ 0 | 0 | ||
Restructuring charges | 0 | 0 | |||
Asset disposals | 0 | ||||
Cash payments | 0 | 0 | |||
Restructuring reserve, ending balance | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment45
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 461,991 | $ 466,362 |
Less accumulated depreciation | (317,036) | (315,010) |
Net property | 144,955 | 151,352 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,833 | 3,573 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 106,263 | 110,144 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 337,700 | 335,318 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,195 | $ 17,327 |
Reclassification of Pension and
Reclassification of Pension and Post-retirement Benefit Plan Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 123,041 | $ 75,662 | $ (125,570) | $ (77,080) |
Amortization of prior service cost | 17 | (63) | 34 | (126) |
Recognized net actuarial losses | 4,083 | 4,574 | 8,012 | 6,860 |
Tax benefit | (1,477) | (1,629) | (2,894) | (2,434) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 2,623 | 2,882 | 5,152 | 4,300 |
Balance at end of period | (120,418) | (72,780) | (120,418) | (72,780) |
Balance at beginning of period | (64,952) | (2,005) | (41,160) | (1,189) |
Foreign currency translation adjustments, parent | 4,087 | 54 | (19,705) | (762) |
Balance at end of period | (60,865) | (1,951) | (60,865) | (1,951) |
Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (2,457) | (1,744) | (2,199) | (1,602) |
Foreign currency translation adjustments, noncontrolling interest | (196) | 0 | (454) | (142) |
Balance at end of period | $ (2,653) | $ (1,744) | $ (2,653) | $ (1,744) |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | May. 12, 2015 | Dec. 31, 2014 | |
Capital Unit [Line Items] | ||||
Common Stock, shares authorized (shares) | 180,000,000 | 180,000,000 | ||
Common stock, par value (dollars per share) | $ 0 | $ 0 | $ 0 | |
Common stock, shares, outstanding (shares) | 37,349,911 | 37,349,911 | 37,448,310 | |
Treasury stock, shares acquired | 150,000 | |||
Treasury stock, shares | 24,731,480 | 24,731,480 | 24,633,081 | |
Second Cumulative Preferred Voting Stock | ||||
Capital Unit [Line Items] | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, par value (dollars per share) | $ 10 | $ 10 | ||
Preferred stock, shares issued (shares) | 0 | 0 | ||
Treasury Stock | ||||
Capital Unit [Line Items] | ||||
Reissued shares | 117,529 | |||
Board of Directors | ||||
Capital Unit [Line Items] | ||||
Common stock, value, issued | $ 100,000,000 | |||
4 1/2% Cumulative Preferred Nonvoting Stock | ||||
Capital Unit [Line Items] | ||||
Preferred stock, shares authorized | 100,000 | 100,000 | ||
Preferred stock, par value (dollars per share) | $ 50 | $ 50 | ||
Percentage of cumulative preferred stock | 4.50% | 4.50% | ||
Preferred stock, callable price per share (dollars per share) | $ 52.50 | $ 52.50 | ||
Preferred stock, shares issued (shares) | 71,373 | 71,373 | ||
Treasury share, number of shares held (shares) | 52,878 | 52,878 | ||
Purchase of treasury shares | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of geographic operating segments | 9 |
Number of reportable segments | 4 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales to external customers | $ 287,011 | $ 282,493 | $ 543,719 | $ 547,538 |
Intercompany sales | 0 | 0 | 0 | 0 |
Net income (loss): | ||||
Continuing operations | 23,722 | 22,132 | 33,038 | 35,654 |
Discontinued operations | 576 | 356 | 942 | 860 |
North American Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 156,193 | 138,782 | 289,757 | 268,303 |
Intercompany sales | 35,022 | 30,696 | 70,761 | 58,593 |
Net income (loss): | ||||
Continuing operations | 22,253 | 19,407 | 36,684 | 33,667 |
Discontinued operations | 0 | 0 | 0 | 0 |
European Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 75,317 | 78,883 | 141,330 | 153,821 |
Intercompany sales | 56,008 | 28,238 | 102,117 | 57,096 |
Net income (loss): | ||||
Continuing operations | 6,596 | 6,780 | 2,159 | 10,232 |
Discontinued operations | 0 | 0 | 0 | 0 |
International Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 55,501 | 64,828 | 112,632 | 125,414 |
Intercompany sales | 5,276 | 4,789 | 10,714 | 8,638 |
Net income (loss): | ||||
Continuing operations | 2,989 | 3,172 | 6,651 | 7,763 |
Discontinued operations | 576 | 356 | 942 | 860 |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 0 | 0 | 0 | 0 |
Intercompany sales | 0 | 0 | 0 | 0 |
Net income (loss): | ||||
Continuing operations | (7,655) | (7,473) | (12,492) | (15,359) |
Discontinued operations | 0 | 0 | 0 | 0 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 0 | 0 | 0 | 0 |
Intercompany sales | (96,306) | (63,723) | (183,592) | (124,327) |
Net income (loss): | ||||
Continuing operations | (461) | 246 | 36 | (649) |
Discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Revenue f
Segment Information - Revenue from External Customers by Products and Services (Details) - Sales | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Breathing Apparatus | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 23.00% | 18.00% |
Fire Gas & Flame Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 21.00% | 22.00% |
Portable Gas Detection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 13.00% | 14.00% |
Industrial Head Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 12.00% | 14.00% |
Fire and Rescue Helmets | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 5.00% | 5.00% |
Fall Protection | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 4.00% | 4.00% |
Other | ||
Revenue from External Customer [Line Items] | ||
Concentration risk percentage | 22.00% | 23.00% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per share attributable to MSA Safety Incorporated common shareholders: | ||||
Net income attributable to continuing operations | $ 23,722 | $ 22,132 | $ 33,038 | $ 35,654 |
Preferred stock dividends | (10) | (10) | (20) | (20) |
Income from continuing operations available to common equity | 23,712 | 22,122 | 33,018 | 35,634 |
Dividends and undistributed earnings allocated to participating securities | (68) | (137) | (96) | (227) |
Income from continuing operations available to common shareholders | 23,644 | 21,985 | 32,922 | 35,407 |
Net income attributable to discontinued operations | 576 | 356 | 942 | 860 |
Preferred stock dividends | 0 | 0 | 0 | 0 |
Income from discontinued operations available to common equity | 576 | 356 | 942 | 860 |
Dividends and undistributed earnings allocated to participating securities | (2) | (2) | (3) | (6) |
Income from discontinued operations available to common shareholders | $ 574 | $ 354 | $ 939 | $ 854 |
Basic weighted-average shares outstanding (shares) | 37,351 | 37,128 | 37,323 | 37,072 |
Stock options and other stock compensation (shares) | 475 | 591 | 484 | 597 |
Diluted weighted-average shares outstanding (shares) | 37,826 | 37,719 | 37,807 | 37,669 |
Antidilutive stock options (shares) | 492 | 0 | 492 | 0 |
Earnings per share attributable to continuing operations: | ||||
Income from continuing operations, basic (dollars per share) | $ 0.63 | $ 0.59 | $ 0.88 | $ 0.96 |
Income from continuing operations, diluted (dollars per share) | 0.62 | 0.58 | 0.87 | 0.94 |
Earnings per share attributable to discontinued operations: | ||||
Income from discontinued operations, basic (dollars per share) | 0.02 | 0.01 | 0.03 | 0.02 |
Income from discontinued operations, diluted (dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.02 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 34.60% | 30.70% | 46.00% | ||
Effective income tax rate reconciliation, excluding European Segment reorganization costs (percent) | 33.40% | 32.90% | |||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | ||
Unrecognized tax benefits | $ 14.8 | $ 14.8 | |||
Recognized tax benefits | 5.2 | 5.2 | |||
Accrued interest and penalties related to uncertain tax positions | $ 1.1 | $ 1.1 | |||
European Segment | |||||
Income Tax Contingency [Line Items] | |||||
Exit taxes related to European reorganization | $ 7.6 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Stock options exercisable period after grant date | 3 years | |
Share-based compensation arrangement by share-based payment award, fair value assumptions, average closing price used to calculated expected dividend rate, period | 1 year | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award based on achieving targeted performance conditions | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award based on achieving targeted performance conditions | 200.00% | |
Percentage of target award based on achieving specified performance targets | 133.60% | |
Performance Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Performance Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, average closing price used to calculated expected dividend rate, period | 1 year | |
Stock beta, daily price data period | 3 years |
Stock Plans - Schedule of Stock
Stock Plans - Schedule of Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock compensation expense | $ 1,806 | $ 1,645 | $ 6,787 | $ 6,810 |
Income tax benefit | 684 | 603 | 2,596 | 2,490 |
Stock compensation expense, net of income tax benefit | $ 1,122 | $ 1,042 | $ 4,191 | $ 4,320 |
Stock Plans - Weighted Average
Stock Plans - Weighted Average Risk Assumptions (Details) - 6 months ended Jun. 30, 2015 | $ / shares |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per option (dollars per share) | $ 15.63 |
Risk-free interest rate | 1.77% |
Expected dividend yield | 2.32% |
Expected volatility | 38.94% |
Expected life (years) | 6 years 8 months 16 days |
Performance Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per unit (dollars per share) | $ 40.06 |
Risk-free interest rate | 0.93% |
Expected dividend yield | 2.32% |
Expected volatility | 27.00% |
MSA stock beta | 1.132 |
Stock Plans - Summary of Stock
Stock Plans - Summary of Stock Option Activity (Detail) - Jun. 30, 2015 - $ / shares | Total |
Shares | |
Outstanding Beginning balance | 1,618,561 |
Granted | 170,683 |
Exercised | (31,022) |
Forfeited | (3,222) |
Expired | (1,109) |
Outstanding Ending balance | 1,753,891 |
Exercisable Ending balance | 1,300,908 |
Weighted Average Exercise Price (dollars per share) | |
Outstanding Beginning balance (dollars per share) | $ 35.74 |
Granted (dollars per share) | 48.64 |
Exercised (dollars per share) | 38.49 |
Forfeitures (dollars per share) | 49.67 |
Expired (dollars per share) | 44.36 |
Outstanding Ending balance (dollars per share) | 36.91 |
Exercisable Ending balance (dollars per share) | $ 32.48 |
Stock Plans - Summary of Restri
Stock Plans - Summary of Restricted Stock Activity (Detail) - 6 months ended Jun. 30, 2015 - Restricted Stock Activity - $ / shares | Total |
Shares | |
Unvested Shares, Beginning Balance | 268,743 |
Granted | 77,977 |
Vested | (102,380) |
Forfeited | (2,832) |
Unvested Shares, Ending Balance | 241,508 |
Weighted Average Exercise Price (dollars per share) | |
Unvested Weighted Average Grant Date Fair value, Beginning Balance (dollars per share) | $ 45.34 |
Granted (dollars per share) | 47.94 |
Vested (dollars per share) | 37.85 |
Forfeited (dollars per share) | 48.44 |
Unvested Weighted Average Grant Date Fair value, Ending Balance (dollars per share) | $ 49.31 |
Stock Plans - Summary of Perfor
Stock Plans - Summary of Performance Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - Performance Stock Unit - $ / shares | Total |
Shares | |
Unvested Shares, Beginning Balance | 143,961 |
Granted | 54,856 |
Performance adjustments | 16,447 |
Vested | (63,164) |
Forfeited | (1,088) |
Unvested Shares, Ending Balance | 151,012 |
Weighted Average Exercise Price (dollars per share) | |
Unvested Weighted Average Grant Date Fair value, Beginning Balance (dollars per share) | $ 52.42 |
Granted (dollars per share) | 40.06 |
Performance adjustments (dollars per share) | 41.45 |
Vested (dollars per share) | 41.66 |
Forfeited (dollars per share) | 52.15 |
Unvested Weighted Average Grant Date Fair value, Ending Balance (dollars per share) | $ 51.24 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Jun. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 173,700,000 |
Line of credit facility, maximum borrowing capacity | 300,000,000 |
Letters of credit and bank guarantees outstanding, amount | 6,400,000 |
Debt instrument, collateral amount | 2,400,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Letters of credit and bank guarantees outstanding, amount | $ 3,300,000 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Senior revolving credit facility maturing in 2019 | $ 123,000 | $ 105,000 |
Total | 269,667 | 251,667 |
Amounts due within one year | 6,667 | 6,667 |
Long-term debt | 263,000 | 245,000 |
2006 Senior Notes Payable Through 2021, 5.41% | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 46,667 | $ 46,667 |
Debt instruments maturity date | 2,021 | 2,021 |
Debt instrument, stated interest rate percentage | 5.41% | 5.41% |
2010 Senior Notes Payable Through 2021, 4.00% | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 100,000 | $ 100,000 |
Debt instruments maturity date | 2,021 | 2,021 |
Debt instrument, stated interest rate percentage | 4.00% | 4.00% |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets - Changes in Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Balance at January 1 | $ 252,520 |
Currency translation | (4,104) |
Balance at June 30 | $ 248,416 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 248,416 | $ 248,416 | $ 252,520 |
Impairment loss | 723 | ||
North American Segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 196,500 | 196,500 | |
European Segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 49,900 | 49,900 | |
International Segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,000 | $ 2,000 | |
Other Income | North American Segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 700 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets - Changes in Intangible Assets, Net of Accumulated Amortization (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Finite-lived Intangible Assets [Roll Forward] | |
Net balance at January 1 | $ 31,323 |
Amortization expense | (1,422) |
Impairment Loss | (723) |
Currency translation | (704) |
Net balance at June 30 | $ 28,474 |
Pensions and Other Postretire64
Pensions and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Pension plans contributions | $ 2 |
Total pension plans contributions for the period | $ 4.1 |
Pensions and Other Postretire65
Pensions and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,904 | $ 2,481 | $ 5,808 | $ 4,962 |
Interest cost | 4,593 | 4,891 | 9,186 | 9,782 |
Expected return on plan assets | (8,537) | (8,251) | (17,074) | (16,502) |
Amortization of prior service cost | 17 | 21 | 34 | 42 |
Recognized net actuarial losses | 4,083 | 2,203 | 8,012 | 4,406 |
Settlements | 33 | 57 | 66 | 114 |
Net periodic benefit cost | 3,093 | 1,402 | 6,032 | 2,804 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 111 | 156 | 222 | 312 |
Interest cost | 216 | 299 | 432 | 598 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (84) | (84) | (168) | (168) |
Recognized net actuarial losses | 7 | 83 | 14 | 166 |
Settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 250 | $ 454 | $ 500 | $ 908 |
Derivative Financial Instrume66
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Notional amount of open forward contracts | $ 68.7 | $ 60.9 |
Derivative Financial Instrume67
Derivative Financial Instruments - Balance Sheet Location and Fair Value of Assets and Liabilities Associated with Derivative Financial Instruments (Detail) - Foreign exchange contract - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: other current liabilities | $ 390 | $ 429 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: other current assets | $ 636 | $ 34 |
Derivative Financial Instrume68
Derivative Financial Instruments - Income Statement Location and Impact of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Not Designated as Hedging Instrument | Foreign exchange contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Currency exchange losses, net | $ 1,100 | $ 1,203 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Fair Value Disclosures [Abstract] | ||
Senior Notes | $ 146.7 | $ 153.3 |
Fair value of long-term debt | $ 153.3 | $ 162.7 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||
Jun. 30, 2015USD ($)LegalMatter | Jun. 30, 2014USD ($) | Jan. 31, 2015USD ($) | Jun. 30, 2015USD ($)LegalMatterVendor | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)LegalMatter | Jun. 30, 2015USD ($)LegalMatter | Dec. 31, 2013USD ($)LegalMatter | |
Loss Contingencies [Line Items] | ||||||||
Number of lawsuits | LegalMatter | 2,047 | 2,047 | 2,326 | 2,047 | 2,840 | |||
Loss contingency, years of activity | 5 years | |||||||
Number of insurance carriers | Vendor | 20 | |||||||
Increase in insurance settlements receivable | $ 94.2 | |||||||
Insurance receivables | $ 219 | $ 219 | $ 220.5 | 219 | $ 124.8 | |||
Insurance receivables, current | 2 | 2 | 2 | 2 | ||||
Insurance receivables, noncurrent | 217 | 217 | 218.5 | 217 | ||||
Single Incident | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserves for product liability claims | 3.4 | 3.4 | 3.5 | 3.4 | ||||
Product liability expense | 0.7 | $ 0.6 | ||||||
Cumulative Trauma | ||||||||
Loss Contingencies [Line Items] | ||||||||
Product liability expense | 169.6 | |||||||
Litigation settlement amount | $ 71.8 | |||||||
Loss contingency accrual, product liability, net | 72.3 | $ 72.3 | 74.9 | $ 72.3 | ||||
Uninsured Cumulative Trauma | ||||||||
Loss Contingencies [Line Items] | ||||||||
Product liability expense | $ 0.3 | $ 2.2 | ||||||
Other Noncurrent Liabilities | Cumulative Trauma | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual, product liability, net | $ 35.1 |
Contingencies - Summary of Cumu
Contingencies - Summary of Cumulative Trauma Product Liability Claims Activity (Detail) - LegalMatter | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Loss Contingency, Quantities [Roll Forward] | ||
Open lawsuits, beginning of period | 2,326 | 2,840 |
New lawsuits | 167 | 542 |
Settled and dismissed lawsuits | (446) | (1,056) |
Open lawsuits, end of period | 2,047 | 2,326 |
Contingencies - Summary of Insu
Contingencies - Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 220.5 | $ 124.8 |
Additions | 3.5 | 98.2 |
Collections and settlements | (5) | (2.5) |
Balance end of period | $ 219 | $ 220.5 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 470 | $ 453 | $ 778 | $ 1,067 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | Zambian Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 11,384 | 10,589 | 22,541 | 20,649 |
Other income, net | 107 | 15 | 173 | 28 |
Cost of products sold | 9,058 | 8,455 | 18,048 | 16,151 |
Selling, general and administrative | 1,682 | 1,605 | 3,284 | 3,159 |
Currency exchange losses (gains), net | 38 | (62) | 208 | (69) |
Income from discontinued operations before income taxes | 713 | 606 | 1,174 | 1,436 |
Provision for income taxes | 243 | 153 | 396 | 369 |
Income from discontinued operations, net of tax | $ 470 | $ 453 | $ 778 | $ 1,067 |
Discontinued Operations, Assets
Discontinued Operations, Assets and Liabilities (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale - Zambian Operations - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Trade receivables, less allowance for doubtful accounts | $ 6,949 | $ 6,638 |
Inventories | 11,643 | 11,829 |
Net property | 288 | 342 |
Other assets | 1,896 | 2,022 |
Total assets | 20,776 | 20,831 |
Accounts payable | 4,053 | 5,263 |
Accrued and other liabilities | 1,059 | 991 |
Total liabilities | 5,112 | 6,254 |
Net assets | $ 15,664 | $ 14,577 |
Discontinued Operations Related
Discontinued Operations Related to Net Loss (Income) Related to Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net loss (income) | $ 453 | $ (7) | $ 685 | $ 102 |
Zambian Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from continuing operations | 347 | 90 | ||
Loss (income) from discontinued operations | 106 | (97) | ||
Net loss (income) | $ 453 | $ (7) | ||
Discontinued Operations, Held-for-sale or Disposed of by Sale | Zambian Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from continuing operations | 521 | 309 | ||
Loss (income) from discontinued operations | 164 | (207) | ||
Net loss (income) | $ 685 | $ 102 |