Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 18, 2013 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MSA | |
Entity Registrant Name | MINE SAFETY APPLIANCES CO | |
Entity Central Index Key | 66570 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,190,510 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $278,245 | $286,567 | $861,179 | $874,790 |
Other income, net | 609 | 169 | 1,037 | 8,433 |
Revenues, Total | 278,854 | 286,736 | 862,216 | 883,223 |
Costs and expenses | ||||
Cost of products sold | 160,029 | 164,313 | 485,301 | 502,419 |
Selling, general and administrative | 73,311 | 81,606 | 237,919 | 236,591 |
Research and development | 12,298 | 10,073 | 34,280 | 29,707 |
Restructuring and other charges | 1,515 | 3,942 | ||
Interest expense | 2,741 | 2,797 | 8,151 | 8,860 |
Currency exchange losses, net | 1,733 | 617 | 3,845 | 1,845 |
Costs and Expenses, Total | 251,627 | 259,406 | 773,438 | 779,422 |
Income before income taxes | 27,227 | 27,330 | 88,778 | 103,801 |
Provision for income taxes | 8,050 | 7,680 | 25,815 | 31,550 |
Net income | 19,177 | 19,650 | 62,963 | 72,251 |
Net loss (income) attributable to noncontrolling interests | 324 | -417 | -127 | -1,101 |
Net income attributable to Mine Safety Appliances Company | $19,501 | $19,233 | $62,836 | $71,150 |
Earnings per share attributable to Mine Safety Appliances Company common shareholders | ||||
Basic | $0.52 | $0.52 | $1.69 | $1.93 |
Diluted | $0.52 | $0.51 | $1.66 | $1.90 |
Dividends per common share | $0.30 | $0.28 | $0.88 | $0.82 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $19,177 | $19,650 | $62,963 | $72,251 |
Foreign currency translation adjustments | 6,158 | 4,814 | -7,068 | 1,315 |
Pension and post-retirement plan adjustments, net of tax | 2,107 | 6,321 | ||
Comprehensive income | 27,442 | 24,464 | 62,216 | 73,566 |
Comprehensive loss (income) attributable to noncontrolling interests | 320 | -322 | 790 | -918 |
Comprehensive income attributable to Mine Safety Appliances Company | $27,762 | $24,142 | $63,006 | $72,648 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $96,010 | $82,718 |
Trade receivables, less allowance for doubtful accounts of $7,823 and $7,402 | 194,886 | 191,289 |
Inventories | 144,277 | 136,300 |
Deferred tax assets | 16,890 | 17,727 |
Income taxes receivable | 12,485 | 6,342 |
Prepaid expenses and other current assets | 30,727 | 29,172 |
Total current assets | 495,275 | 463,548 |
Property, less accumulated depreciation of $315,391 and $310,279 | 150,146 | 147,465 |
Prepaid pension cost | 47,640 | 42,818 |
Deferred tax assets | 16,546 | 17,018 |
Goodwill | 259,388 | 258,400 |
Other noncurrent assets | 200,548 | 182,497 |
Total assets | 1,169,543 | 1,111,746 |
Current liabilities | ||
Notes payable and current portion of long-term debt | 7,114 | 6,823 |
Accounts payable | 66,628 | 59,519 |
Employees' compensation | 43,801 | 41,602 |
Insurance and product liability | 15,320 | 15,025 |
Taxes on income | 4,632 | 4,389 |
Other current liabilities | 56,716 | 61,442 |
Total current liabilities | 194,211 | 188,800 |
Long-term debt | 282,333 | 272,333 |
Pensions and other employee benefits | 154,457 | 151,536 |
Deferred tax liabilities | 19,184 | 17,249 |
Other noncurrent liabilities | 11,101 | 11,124 |
Total liabilities | 661,286 | 641,042 |
Commitments and contingencies (Note 16) | ||
Mine Safety Appliances Company shareholders' equity: | ||
Preferred stock, 4 1/2% cumulative-authorized 100,000 shares of $50 par value; issued 71,373 and 71,373 shares, callable at $52.50 per share | 3,569 | 3,569 |
Second cumulative preferred voting stock-authorized 1,000,000 shares of $10 par value; none issued | ||
Common stock, no par value, issued 62,081,391 and 62,081,391 shares, outstanding 37,190,510 and 37,007,799 shares | 129,727 | 112,135 |
Stock compensation trust-327,056 and 745,430 shares | -1,707 | -3,891 |
Treasury shares, at cost, preferred-52,878 and 52,878 shares, common-24,563,825 and 24,328,162 shares | -280,992 | -269,739 |
Accumulated other comprehensive loss | -126,902 | -127,072 |
Retained earnings | 778,095 | 747,953 |
Total Mine Safety Appliances Company shareholders' equity | 501,790 | 462,955 |
Noncontrolling interests | 6,467 | 7,749 |
Total shareholders' equity | 508,257 | 470,704 |
Total liabilities and shareholders' equity | $1,169,543 | $1,111,746 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Trade receivables, allowance for doubtful accounts | $7,823 | $7,402 |
Property, accumulated depreciation | $315,391 | $310,279 |
Common stock, par value | $0 | $0 |
Common stock, shares issued | 62,081,391 | 62,081,391 |
Common stock, shares outstanding | 37,190,510 | 37,007,799 |
Stock compensation trust, shares | 327,056 | 745,430 |
Preferred Stock, 4 1/2% Cumulative | ||
Percentage of cumulative preferred stock | 4.50% | 4.50% |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, par value | $50 | $50 |
Preferred stock, shares issued | 71,373 | 71,373 |
Preferred stock, callable per share | $52.50 | $52.50 |
Treasury shares, at cost | 52,878 | 52,878 |
Second Cumulative Preferred Voting Stock | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $10 | $10 |
Preferred stock, shares issued | 0 | 0 |
Common Stock | ||
Treasury shares, at cost | 24,563,825 | 24,328,162 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ||
Net income | $62,963 | $72,251 |
Depreciation and amortization | 23,392 | 24,057 |
Pensions | 8,639 | 2,029 |
Net gain from investing activities-disposal of assets | -505 | -7,812 |
Stock-based compensation | 9,147 | 6,898 |
Deferred income tax (benefit) provision | -802 | 999 |
Other noncurrent assets and liabilities | -23,881 | -10,556 |
Currency exchange losses, net | 3,845 | 1,845 |
Excess tax benefit related to stock plans | -1,490 | -1,305 |
Other, net | 1,689 | -2,135 |
Operating cash flow before changes in certain working capital items | 82,997 | 86,271 |
Trade receivables | -6,855 | -22,072 |
Inventories | -12,321 | -4,646 |
Accounts payable and accrued liabilities | 9,061 | 14,371 |
Income taxes receivable, prepaid expenses and other current assets | -8,176 | 15,110 |
(Increase) decrease in certain working capital items | -18,291 | 2,763 |
Cash flow from operating activities | 64,706 | 89,034 |
Investing Activities | ||
Capital expenditures | -26,214 | -24,949 |
Property disposals and other investing | 1,333 | 16,801 |
Cash flow from investing activities | -24,881 | -8,148 |
Financing Activities | ||
Proceeds from short-term debt, net | 284 | 449 |
Proceeds from long-term debt | 233,100 | 137,500 |
Payments on long-term debt | -223,100 | -175,500 |
Cash dividends paid | -32,694 | -30,261 |
Distributions to noncontrolling interests | -556 | |
Company stock purchases | -11,253 | -2,948 |
Exercise of stock options | 9,138 | 3,016 |
Excess tax benefit related to stock plans | 1,490 | 1,305 |
Cash flow from financing activities | -23,591 | -66,439 |
Effect of exchange rate changes on cash and cash equivalents | -2,942 | 71 |
Increase in cash and cash equivalents | 13,292 | 14,518 |
Beginning cash and cash equivalents | 82,718 | 59,938 |
Ending cash and cash equivalents | $96,010 | $74,456 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | (1) Basis of Presentation |
We have prepared the condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. | |
The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The other information in these financial statements is unaudited; however, we believe that all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of these interim periods have been included. The results for interim periods are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated financial statements include the accounts of the company and all subsidiaries. Intercompany accounts and transactions have been eliminated. |
Restructuring_and_Other_Charge
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2013 | |
Restructuring and Other Charges | (2) Restructuring and Other Charges |
During the three and nine months ended September 30, 2013, we recorded charges of $1.5 million ($1.1 million after tax) and $3.9 million ($2.8 million after tax), respectively. European segment charges for the nine months ended September 30, 2013 of $2.2 million related primarily to staff reductions in Germany and the Netherlands. International segment charges for the nine months ended September 30, 2013 of $1.7 million were related to staff reductions in Australia. | |
We did not incur any restructuring charges during the three and nine months ended September 30, 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated Other Comprehensive Loss | (3) Accumulated Other Comprehensive Loss | ||||||||
Components of accumulated other comprehensive loss are as follows: | |||||||||
(In thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Cumulative translation adjustments | $ | (1,192 | ) | $ | 4,959 | ||||
Pension and post-retirement plan adjustments | (125,710 | ) | (132,031 | ) | |||||
Accumulated other comprehensive loss | (126,902 | ) | (127,072 | ) | |||||
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Reclassifications Out of Accumulated Other Comprehensive Loss | (4) Reclassifications Out of Accumulated Other Comprehensive Loss | ||||||||
Pension and post-retirement benefit plan items reclassified out of accumulated other comprehensive loss during the three and nine months ended September 30, 2013 are as follows: | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
30-Sep-13 | September 30, 2013 | ||||||||
Amortization of prior service cost | $ | (80 | ) | $ | (240 | ) | |||
Recognized net actuarial losses | 3,462 | 10,392 | |||||||
Total reclassifications | 3,382 | 10,152 | |||||||
Tax benefit | 1,275 | 3,831 | |||||||
Total reclassifications, net of tax | 2,107 | 6,321 | |||||||
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 7—Pensions and Other Post-Retirement Benefits). |
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings per Share | (5) 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to Mine Safety Appliances Company | $ | 19,501 | $ | 19,233 | $ | 62,836 | $ | 71,150 | |||||||||
Preferred stock dividends | (10 | ) | (10 | ) | (30 | ) | (30 | ) | |||||||||
Income available to common equity | 19,491 | 19,223 | 62,806 | 71,120 | |||||||||||||
Dividends and undistributed earnings allocated to participating securities | (138 | ) | (172 | ) | (486 | ) | (691 | ) | |||||||||
Income available to Mine Safety Appliances Company common shareholders | 19,353 | 19,051 | 62,320 | 70,429 | |||||||||||||
Basic earnings per common share | $ | 0.52 | $ | 0.52 | $ | 1.69 | $ | 1.93 | |||||||||
Diluted earnings per common share | $ | 0.52 | $ | 0.51 | $ | 1.66 | $ | 1.9 | |||||||||
Basic shares outstanding | 36,915 | 36,633 | 36,845 | 36,535 | |||||||||||||
Stock options and other stock compensation | 592 | 422 | 593 | 474 | |||||||||||||
Diluted shares outstanding | 37,507 | 37,055 | 37,438 | 37,009 | |||||||||||||
Antidilutive stock options | — | 943 | — | 943 | |||||||||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Segment Information | (6) Segment Information | ||||||||||||||||||||
We are organized into eleven 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 three reportable segments: North America, Europe, and International. Reportable segment information is presented in the following table: | |||||||||||||||||||||
(In thousands) | North | Europe | International | Reconciling | Consolidated | ||||||||||||||||
America | Items | Totals | |||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||
Sales to external customers | $ | 134,889 | $ | 67,093 | $ | 76,263 | $ | — | $ | 278,245 | |||||||||||
Intercompany sales | 30,960 | 23,566 | 6,363 | (60,889 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 18,053 | 2,667 | 4,636 | (5,855 | ) | 19,501 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Sales to external customers | $ | 423,319 | $ | 204,735 | $ | 233,125 | $ | — | $ | 861,179 | |||||||||||
Intercompany sales | 92,017 | 71,235 | 16,619 | (179,871 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 55,217 | 8,003 | 16,493 | (16,877 | ) | 62,836 | |||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||
Sales to external customers | $ | 133,944 | $ | 67,660 | $ | 84,963 | $ | — | $ | 286,567 | |||||||||||
Intercompany sales | 30,829 | 23,735 | 4,902 | (59,466 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 15,100 | 2,039 | 6,016 | (3,922 | ) | 19,233 | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Sales to external customers | $ | 416,728 | $ | 207,450 | $ | 250,612 | $ | — | $ | 874,790 | |||||||||||
Intercompany sales | 88,720 | 74,377 | 14,770 | (177,867 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 51,636 | 9,794 | 17,900 | (8,180 | ) | 71,150 | |||||||||||||||
Reconciling items consist primarily of intercompany eliminations and items reported at the corporate level. |
Pensions_and_Other_Postretirem
Pensions and Other Postretirement Benefits | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Pensions and Other Postretirement Benefits | (7) Pensions and Other Postretirement Benefits | ||||||||||||||||
Components of net periodic benefit cost consisted of the following: | |||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Three months ended September 30 | |||||||||||||||||
Service cost | $ | 2,784 | $ | 2,437 | $ | 172 | $ | 174 | |||||||||
Interest cost | 4,468 | 4,793 | 262 | 316 | |||||||||||||
Expected return on plan assets | (7,725 | ) | (8,099 | ) | — | — | |||||||||||
Amortization of prior service cost | 26 | 73 | (106 | ) | (114 | ) | |||||||||||
Recognized net actuarial losses | 3,325 | 1,473 | 137 | 132 | |||||||||||||
Net periodic benefit cost | 2,878 | 677 | 465 | 508 | |||||||||||||
Nine months ended September 30 | |||||||||||||||||
Service cost | $ | 8,353 | $ | 7,309 | $ | 516 | $ | 522 | |||||||||
Interest cost | 13,404 | 14,371 | 787 | 948 | |||||||||||||
Expected return on plan assets | (23,175 | ) | (24,301 | ) | — | — | |||||||||||
Amortization of prior service cost | 78 | 227 | (318 | ) | (342 | ) | |||||||||||
Recognized net actuarial losses | 9,979 | 4,423 | 413 | 396 | |||||||||||||
Net periodic benefit cost | 8,639 | 2,029 | 1,398 | 1,524 | |||||||||||||
We made contributions of $3.4 million to our pension plans during the nine months ended September 30, 2013. We expect to make total contributions of approximately $4.5 million to our pension plans in 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill and Intangible Assets | (8) Goodwill and Intangible Assets | ||||
Changes in goodwill during the nine months ended September 30, 2013 are as follows: | |||||
(In thousands) | Goodwill | ||||
Net balance at January 1 | $ | 258,400 | |||
Currency translation | 988 | ||||
Net balance at September 30 | 259,388 | ||||
At September 30, 2013, goodwill of $196.5 million, $60.5 million, and $2.4 million related to the North American, European, and International reportable segments, respectively. | |||||
Changes in intangible assets, net of accumulated amortization (reported in other noncurrent assets) during the nine months ended September 30, 2013 are as follows: | |||||
(In thousands) | Intangible | ||||
Assets | |||||
Net balance at January 1 | $ | 38,648 | |||
Amortization expense | (2,787 | ) | |||
Currency translation | 33 | ||||
Net balance at September 30 | 35,894 | ||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories | (9) Inventories | ||||||||
(In thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Finished products | $ | 76,676 | $ | 72,658 | |||||
Work in process | 12,545 | 13,473 | |||||||
Raw materials and supplies | 55,056 | 50,169 | |||||||
Total inventories | 144,277 | 136,300 | |||||||
Stock_Plans
Stock Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Plans | (10) 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. 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. Restricted stock is granted without payment to the company and generally vests three years after the grant date. Restricted stock is valued at the market value of the stock on the grant date. Performance stock units with a performance condition are valued at the market value of the stock on the grant date. Performance stock units with a market condition are valued at an estimated fair value using a Monte Carlo model. 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. We issue Stock Compensation Trust shares or new shares for stock option exercises, restricted stock grants, and performance stock unit grants. | |||||||||||||||||
Stock compensation expense is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock compensation expense | $ | 1,198 | $ | 1,603 | $ | 9,147 | $ | 6,898 | |||||||||
Income tax benefit | 432 | 589 | 3,380 | 2,522 | |||||||||||||
Stock compensation expense, net of income tax benefit | 766 | 1,014 | 5,767 | 4,376 | |||||||||||||
A summary of stock option activity for the nine months ended September 30, 2013 follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at January 1 | 1,784,660 | $ | 33.05 | ||||||||||||||
Granted | 188,407 | 49.03 | |||||||||||||||
Exercised | (265,931 | ) | 34.36 | ||||||||||||||
Outstanding at September 30 | 1,707,136 | 34.6 | |||||||||||||||
Exercisable at September 30 | 1,162,103 | 31.88 | |||||||||||||||
A summary of restricted stock activity for the nine months ended September 30, 2013 follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at January 1 | 417,843 | $ | 31.92 | ||||||||||||||
Granted | 89,910 | 49 | |||||||||||||||
Vested | (168,226 | ) | 26.88 | ||||||||||||||
Forfeited | (8,677 | ) | 40.38 | ||||||||||||||
Unvested at September 30 | 330,850 | 38.9 | |||||||||||||||
A summary of performance stock unit activity for the nine months ended September 30, 2013 follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at January 1 | 137,672 | $ | 35.85 | ||||||||||||||
Granted | 53,357 | 57.58 | |||||||||||||||
Performance adjustments | 3,317 | 24.63 | |||||||||||||||
Vested | (45,113 | ) | 25.86 | ||||||||||||||
Unvested at September 30 | 149,233 | 46.39 | |||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Derivative Financial Instruments | (11) 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 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. At September 30, 2013, the notional amount of open forward contracts was $54.5 million, and the unrealized gain on these contracts was $0.3 million. | |||||||||||
The following table presents the balance sheet location and fair value of assets associated with derivative financial instruments: | |||||||||||
(In thousands) | September 30, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Foreign exchange contracts: | |||||||||||
Prepaid expenses and other current assets | $ | 260 | $ | 801 | |||||||
The following table presents the income statement location and impact of derivative financial instruments: | |||||||||||
Loss (Gain) | |||||||||||
Recognized in Income | |||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
(In thousands) | Income Statement | 2013 | 2012 | ||||||||
Location | |||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Foreign exchange contracts | Currency exchange losses, net | $ | 233 | $ | (364 | ) |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | (12) Income Taxes |
At September 30, 2013, we had a gross liability for unrecognized tax benefits of $9.5 million. We have recognized tax benefits associated with these liabilities of $8.6 million at September 30, 2013. These balances are unchanged since December 31, 2012. We do not expect that the total amount of the unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. | |
We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our liability for accrued interest and penalties related to uncertain tax positions was $0.9 million at September 30, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Fair Value Measurements | (13) 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 11. 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. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value of Financial Instruments | (14) Fair Value of Financial Instruments |
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. At September 30, 2013, the reported carrying amount of our fixed rate long-term debt (including the current portion) was $160.0 million and the fair value was $167.1 million. The fair value of our long-term debt was determined using cash flow valuation models to estimate the market value of similar transactions as of September 30, 2013. Accordingly, the fair value of fixed rate long-term debt is classified within Level 2 of the fair value hierarchy. |
Assets_Held_for_Sale
Assets Held for Sale | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Assets Held for Sale | (15) Assets Held for Sale | ||||
Certain assets related to detector tube manufacturing are classified as held for sale at September 30, 2013. These assets are reported in the following balance sheet lines: | |||||
(In millions) | September 30, 2013 | ||||
Inventory | $ | 1.8 | |||
Property, net of depreciation | 0.3 | ||||
Total assets | 2.1 | ||||
In September 2013, we entered into an agreement to sell the detector tube assets. Under the terms of the agreement, the transaction is expected to close during the fourth quarter of 2013. In addition to the asset sale agreement, we entered into transitional manufacturing and sales agreements with the buyer. Under the terms of the transitional agreements, we will continue to manufacture and sell detector tubes on behalf of the buyer until mid-2014. The expected gain on the transaction will be recognized in 2014, at the conclusion of the transitional manufacturing period and is not expected to be material to net income or earnings per share. |
Contingencies
Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Contingencies | (16) Contingencies | ||||||||
We categorize the product liability losses that we 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 and, therefore, more quantifiable damages. Therefore, we maintain a reserve for single incident product liability claims based on expected settlement costs for pending claims and an estimate of costs for unreported claims derived from experience, sales volumes and other relevant information. Our reserve for single incident product liability claims was $4.0 million at September 30, 2013 and $4.4 million at December 31, 2012. Single incident product liability expense during the nine months ended September 30, 2013 and 2012 was not significant. We evaluate our single incident product liability exposures on an ongoing basis and make adjustments to the reserve as new information becomes available. | |||||||||
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. We are presently named as a defendant in 2,775 lawsuits in which 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 us. We are unable to estimate total damages sought in these lawsuits as they generally do not specify the injuries alleged or the amount of damages sought, and potentially involve multiple defendants. | |||||||||
Cumulative trauma product liability litigation is difficult to predict. In our experience, until late in a lawsuit, we cannot reasonably determine whether it is probable that any given cumulative trauma lawsuit 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; and 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 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. | |||||||||
Because of these factors, we cannot reliably determine our potential liability for such claims until late in the lawsuit. We, therefore, do not record cumulative trauma product liability losses when a lawsuit is filed, but rather, when we learn sufficient information to determine that it is probable that we will incur a loss and the amount of loss can be reasonably estimated. We record expenses for defense costs associated with open cumulative trauma product liability lawsuits as incurred. | |||||||||
We cannot estimate any amount or range of possible losses related to resolving pending and future cumulative trauma product liability claims that we may face because of the factors described above. As new information about cumulative trauma product liability cases and future developments becomes available, we reassess our potential exposures. | |||||||||
A summary of cumulative trauma product liability claims activity follows: | |||||||||
Nine Months Ended | Year Ended | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Open claims, beginning of period | 2,609 | 2,321 | |||||||
New claims | 373 | 750 | |||||||
Settled and dismissed claims | (207 | ) | (462 | ) | |||||
Open claims, end of period | 2,775 | 2,609 | |||||||
With some common contract exclusions, we maintain insurance for cumulative trauma product liability claims. We have purchased insurance policies from over 20 different insurance carriers that provide coverage for cumulative trauma product liability losses and related defense costs. 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. The available limits of these policies are many times our recorded insurance receivable balance. | |||||||||
Various factors could affect the timing and amount of recovery of our insurance receivables, 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. | |||||||||
Our insurance receivables at September 30, 2013 totaled $152.1 million, of which $2.0 million is reported in other current assets and $150.1 million in other non-current assets. Our insurance receivables at December 31, 2012 totaled $130.0 million. | |||||||||
A summary of insurance receivable balances and activity related to cumulative trauma product liability losses follows: | |||||||||
(In millions) | Nine Months Ended | Year Ended | |||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Balance beginning of period | $ | 130 | $ | 112.1 | |||||
Additions | 30.8 | 29.7 | |||||||
Collections and settlements | (8.7 | ) | (11.8 | ) | |||||
Balance end of period | 152.1 | 130 | |||||||
Additions to insurance receivables in the above table represent insured cumulative trauma product liability losses and related defense costs. Uninsured cumulative trauma losses during the nine months ended September 30, 2013 and 2012 were $1.4 million and $7.3 million, respectively. | |||||||||
Our aggregate cumulative trauma product liability losses and administrative and defense costs for the three years ended December 31, 2012, totaled approximately $99.7 million, substantially all of which was insured. | |||||||||
We believe that the increase in the insurance receivable balance that we have experienced since 2005 is primarily due to disagreements among our insurance carriers, and consequently with us, as to when their individual obligations to pay us are triggered and the amount of each insurer’s obligation, as compared to other insurers. We believe that our insurers do not contest that they have issued policies to us or that these policies cover cumulative trauma product liability claims. We believe that our ability to successfully resolve our insurance litigation with various insurance carriers in recent years demonstrates that we have strong legal positions concerning our rights to coverage. | |||||||||
We regularly evaluate the collectability of the insurance receivables and record the amounts that we conclude are probable of collection. Our conclusions are based on our analysis of the terms of the underlying insurance policies, our experience in successfully recovering cumulative trauma product liability claims from our insurers under other policies, the financial ability of our insurance carriers to pay the claims, our understanding and interpretation of the relevant facts and applicable law and the advice of legal counsel, who believe that our insurers are required to provide coverage based on the terms of the policies. | |||||||||
Although the outcome of cumulative trauma product liability matters cannot be predicted with certainty and unfavorable resolutions could materially affect our results of operations on a quarter-to-quarter basis, based on information currently available and the amounts of insurance coverage available to us, we believe that the disposition of cumulative trauma product liability lawsuits that are pending against us will not have a materially adverse effect on our future results of operations, financial condition, or liquidity. | |||||||||
We are currently involved in insurance coverage litigations with various of our insurance carriers. | |||||||||
In 2009, we 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 us and that it engaged in bad-faith claims handling. We believe that North River’s refusal to indemnify us under the policy for product liability losses and legal fees paid by us is wholly contrary to Pennsylvania law and we are vigorously pursuing the legal actions necessary to collect all due amounts. Discovery has concluded and motions for summary judgment on certain issues have been submitted to the court. A trial date has not yet been scheduled. | |||||||||
In 2010, North River sued us in the Court of Common Pleas of Allegheny County, Pennsylvania seeking a declaratory judgment concerning their responsibilities under three additional policies shared with Allstate Insurance Company (as successor in interest to policies issued by the Northbrook Excess and Surplus Insurance Company). We asserted claims against North River and Allstate for breaches of contract for failures to pay amounts owed to us. We also alleged that North River engaged in bad-faith claims handling. We believe that North River’s and Allstate’s refusals to indemnify us under these policies for product liability losses and legal fees paid by us is wholly contrary to Pennsylvania law and we are vigorously pursuing the legal actions necessary to collect all due amounts. Discovery has concluded and motions for summary judgment on certain issues have been submitted to the court. A trial date has not yet been scheduled. | |||||||||
In July 2010, we filed a lawsuit in the Superior Court of the State of Delaware seeking declaratory and other relief from the majority of our excess insurance carriers concerning the future rights and obligations of MSA and our excess insurance carriers under various insurance policies. The reason for this insurance coverage action is to secure a comprehensive resolution of our rights under the insurance policies issued by our insurers. The case is currently in discovery. We have resolved our claims against certain of our insurance carriers on some of their policies through negotiated settlements. When a settlement is reached, we dismiss the settling carrier from this action in Delaware. |
Recently_Adopted_and_Recently_
Recently Adopted and Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
Recently Adopted and Recently Issued Accounting Standards | (17) Recently Adopted and Recently Issued Accounting Standards |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income-Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires additional information about the amounts reclassified out of accumulated other comprehensive income by component. The adoption of this ASU on January 1, 2013 did not have a material effect on our consolidated financial statements. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Components of Accumulated Other Comprehensive Loss | Components of accumulated other comprehensive loss are as follows: | ||||||||
(In thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Cumulative translation adjustments | $ | (1,192 | ) | $ | 4,959 | ||||
Pension and post-retirement plan adjustments | (125,710 | ) | (132,031 | ) | |||||
Accumulated other comprehensive loss | (126,902 | ) | (127,072 | ) | |||||
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Reclassification of Pension and Post-Retirement Benefit Plan Out of Accumulated Other Comprehensive Loss | Pension and post-retirement benefit plan items reclassified out of accumulated other comprehensive loss during the three and nine months ended September 30, 2013 are as follows: | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
30-Sep-13 | September 30, 2013 | ||||||||
Amortization of prior service cost | $ | (80 | ) | $ | (240 | ) | |||
Recognized net actuarial losses | 3,462 | 10,392 | |||||||
Total reclassifications | 3,382 | 10,152 | |||||||
Tax benefit | 1,275 | 3,831 | |||||||
Total reclassifications, net of tax | 2,107 | 6,321 | |||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Earnings Per Share | |||||||||||||||||
` | Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to Mine Safety Appliances Company | $ | 19,501 | $ | 19,233 | $ | 62,836 | $ | 71,150 | |||||||||
Preferred stock dividends | (10 | ) | (10 | ) | (30 | ) | (30 | ) | |||||||||
Income available to common equity | 19,491 | 19,223 | 62,806 | 71,120 | |||||||||||||
Dividends and undistributed earnings allocated to participating securities | (138 | ) | (172 | ) | (486 | ) | (691 | ) | |||||||||
Income available to Mine Safety Appliances Company common shareholders | 19,353 | 19,051 | 62,320 | 70,429 | |||||||||||||
Basic earnings per common share | $ | 0.52 | $ | 0.52 | $ | 1.69 | $ | 1.93 | |||||||||
Diluted earnings per common share | $ | 0.52 | $ | 0.51 | $ | 1.66 | $ | 1.9 | |||||||||
Basic shares outstanding | 36,915 | 36,633 | 36,845 | 36,535 | |||||||||||||
Stock options and other stock compensation | 592 | 422 | 593 | 474 | |||||||||||||
Diluted shares outstanding | 37,507 | 37,055 | 37,438 | 37,009 | |||||||||||||
Antidilutive stock options | — | 943 | — | 943 | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Schedule of Reportable Segment Information | Reportable segment information is presented in the following table: | ||||||||||||||||||||
(In thousands) | North | Europe | International | Reconciling | Consolidated | ||||||||||||||||
America | Items | Totals | |||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||
Sales to external customers | $ | 134,889 | $ | 67,093 | $ | 76,263 | $ | — | $ | 278,245 | |||||||||||
Intercompany sales | 30,960 | 23,566 | 6,363 | (60,889 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 18,053 | 2,667 | 4,636 | (5,855 | ) | 19,501 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Sales to external customers | $ | 423,319 | $ | 204,735 | $ | 233,125 | $ | — | $ | 861,179 | |||||||||||
Intercompany sales | 92,017 | 71,235 | 16,619 | (179,871 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 55,217 | 8,003 | 16,493 | (16,877 | ) | 62,836 | |||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||
Sales to external customers | $ | 133,944 | $ | 67,660 | $ | 84,963 | $ | — | $ | 286,567 | |||||||||||
Intercompany sales | 30,829 | 23,735 | 4,902 | (59,466 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 15,100 | 2,039 | 6,016 | (3,922 | ) | 19,233 | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Sales to external customers | $ | 416,728 | $ | 207,450 | $ | 250,612 | $ | — | $ | 874,790 | |||||||||||
Intercompany sales | 88,720 | 74,377 | 14,770 | (177,867 | ) | — | |||||||||||||||
Net income (loss) attributable to Mine Safety Appliances Company | 51,636 | 9,794 | 17,900 | (8,180 | ) | 71,150 |
Pensions_and_Other_Postretirem1
Pensions and Other Postretirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following: | ||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Three months ended September 30 | |||||||||||||||||
Service cost | $ | 2,784 | $ | 2,437 | $ | 172 | $ | 174 | |||||||||
Interest cost | 4,468 | 4,793 | 262 | 316 | |||||||||||||
Expected return on plan assets | (7,725 | ) | (8,099 | ) | — | — | |||||||||||
Amortization of prior service cost | 26 | 73 | (106 | ) | (114 | ) | |||||||||||
Recognized net actuarial losses | 3,325 | 1,473 | 137 | 132 | |||||||||||||
Net periodic benefit cost | 2,878 | 677 | 465 | 508 | |||||||||||||
Nine months ended September 30 | |||||||||||||||||
Service cost | $ | 8,353 | $ | 7,309 | $ | 516 | $ | 522 | |||||||||
Interest cost | 13,404 | 14,371 | 787 | 948 | |||||||||||||
Expected return on plan assets | (23,175 | ) | (24,301 | ) | — | — | |||||||||||
Amortization of prior service cost | 78 | 227 | (318 | ) | (342 | ) | |||||||||||
Recognized net actuarial losses | 9,979 | 4,423 | 413 | 396 | |||||||||||||
Net periodic benefit cost | 8,639 | 2,029 | 1,398 | 1,524 | |||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Changes in Goodwill | Changes in goodwill during the nine months ended September 30, 2013 are as follows: | ||||
(In thousands) | Goodwill | ||||
Net balance at January 1 | $ | 258,400 | |||
Currency translation | 988 | ||||
Net balance at September 30 | 259,388 | ||||
Changes in Intangible Assets, Net of Accumulated Amortization | Changes in intangible assets, net of accumulated amortization (reported in other noncurrent assets) during the nine months ended September 30, 2013 are as follows: | ||||
(In thousands) | Intangible | ||||
Assets | |||||
Net balance at January 1 | $ | 38,648 | |||
Amortization expense | (2,787 | ) | |||
Currency translation | 33 | ||||
Net balance at September 30 | 35,894 | ||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Schedule of Inventories | |||||||||
(In thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Finished products | $ | 76,676 | $ | 72,658 | |||||
Work in process | 12,545 | 13,473 | |||||||
Raw materials and supplies | 55,056 | 50,169 | |||||||
Total inventories | 144,277 | 136,300 | |||||||
Stock_Plans_Tables
Stock Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Stock Compensation Expense | Stock compensation expense is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock compensation expense | $ | 1,198 | $ | 1,603 | $ | 9,147 | $ | 6,898 | |||||||||
Income tax benefit | 432 | 589 | 3,380 | 2,522 | |||||||||||||
Stock compensation expense, net of income tax benefit | 766 | 1,014 | 5,767 | 4,376 | |||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2013 follows: | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at January 1 | 1,784,660 | $ | 33.05 | ||||||||||||||
Granted | 188,407 | 49.03 | |||||||||||||||
Exercised | (265,931 | ) | 34.36 | ||||||||||||||
Outstanding at September 30 | 1,707,136 | 34.6 | |||||||||||||||
Exercisable at September 30 | 1,162,103 | 31.88 | |||||||||||||||
Summary of Restricted Stock Activity | A summary of restricted stock activity for the nine months ended September 30, 2013 follows: | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at January 1 | 417,843 | $ | 31.92 | ||||||||||||||
Granted | 89,910 | 49 | |||||||||||||||
Vested | (168,226 | ) | 26.88 | ||||||||||||||
Forfeited | (8,677 | ) | 40.38 | ||||||||||||||
Unvested at September 30 | 330,850 | 38.9 | |||||||||||||||
Summary of Performance Stock Unit Activity | A summary of performance stock unit activity for the nine months ended September 30, 2013 follows: | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Unvested at January 1 | 137,672 | $ | 35.85 | ||||||||||||||
Granted | 53,357 | 57.58 | |||||||||||||||
Performance adjustments | 3,317 | 24.63 | |||||||||||||||
Vested | (45,113 | ) | 25.86 | ||||||||||||||
Unvested at September 30 | 149,233 | 46.39 | |||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
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) | September 30, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Foreign exchange contracts: | |||||||||||
Prepaid expenses and other current assets | $ | 260 | $ | 801 | |||||||
Income Statement Location and Impact of Derivative Financial Instruments | The following table presents the income statement location and impact of derivative financial instruments: | ||||||||||
Loss (Gain) | |||||||||||
Recognized in Income | |||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
(In thousands) | Income Statement | 2013 | 2012 | ||||||||
Location | |||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Foreign exchange contracts | Currency exchange losses, net | $ | 233 | $ | (364 | ) |
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Schedule of Assets Held for Sale | These assets are reported in the following balance sheet lines: | ||||
(In millions) | September 30, 2013 | ||||
Inventory | $ | 1.8 | |||
Property, net of depreciation | 0.3 | ||||
Total assets | 2.1 | ||||
Contingencies_Tables
Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Cumulative Trauma Product Liability Claims Activity | A summary of cumulative trauma product liability claims activity follows: | ||||||||
Nine Months Ended | Year Ended | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Open claims, beginning of period | 2,609 | 2,321 | |||||||
New claims | 373 | 750 | |||||||
Settled and dismissed claims | (207 | ) | (462 | ) | |||||
Open claims, end of period | 2,775 | 2,609 | |||||||
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) | Nine Months Ended | Year Ended | |||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Balance beginning of period | $ | 130 | $ | 112.1 | |||||
Additions | 30.8 | 29.7 | |||||||
Collections and settlements | (8.7 | ) | (11.8 | ) | |||||
Balance end of period | 152.1 | 130 | |||||||
Restructuring_and_Other_Charge1
Restructuring and Other Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $1,515,000 | $3,942,000 |
Restructuring and other charges, net of tax | 1,100,000 | 2,800,000 |
Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 2,200,000 | |
International | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $1,700,000 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Loss [Abstract] | ||
Cumulative translation adjustments | ($1,192) | $4,959 |
Pension and post-retirement plan adjustments | -125,710 | -132,031 |
Accumulated other comprehensive loss | ($126,902) | ($127,072) |
Reclassification_of_Pension_an
Reclassification of Pension and Post-retirement Benefit Plan Out of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of prior service cost | ($80) | ($240) |
Recognized net actuarial losses | 3,462 | 10,392 |
Total reclassifications | 3,382 | 10,152 |
Tax benefit | 1,275 | 3,831 |
Total reclassifications, net of tax | $2,107 | $6,321 |
Schedule_of_Earnings_Per_Share
Schedule of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings per share attributable to Mine Safety Appliances Company common shareholders | ||||
Net income attributable to Mine Safety Appliances Company | $19,501 | $19,233 | $62,836 | $71,150 |
Preferred stock dividends | -10 | -10 | -30 | -30 |
Income available to common equity | 19,491 | 19,223 | 62,806 | 71,120 |
Dividends and undistributed earnings allocated to participating securities | -138 | -172 | -486 | -691 |
Income available to Mine Safety Appliances Company common shareholders | $19,353 | $19,051 | $62,320 | $70,429 |
Basic earnings per common share | $0.52 | $0.52 | $1.69 | $1.93 |
Diluted earnings per common share | $0.52 | $0.51 | $1.66 | $1.90 |
Basic shares outstanding | 36,915 | 36,633 | 36,845 | 36,535 |
Stock options and other stock compensation | 592 | 422 | 593 | 474 |
Diluted shares outstanding | 37,507 | 37,055 | 37,438 | 37,009 |
Antidilutive stock options | 943 | 943 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of geographic operating segments | 11 |
Number of reportable segments | 3 |
Schedule_of_Reportable_Segment
Schedule of Reportable Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ||||
Sales to external customers | $278,245 | $286,567 | $861,179 | $874,790 |
Net income (loss) attributable to Mine Safety Appliances Company | 19,501 | 19,233 | 62,836 | 71,150 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 134,889 | 133,944 | 423,319 | 416,728 |
Intercompany sales | 30,960 | 30,829 | 92,017 | 88,720 |
Net income (loss) attributable to Mine Safety Appliances Company | 18,053 | 15,100 | 55,217 | 51,636 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 67,093 | 67,660 | 204,735 | 207,450 |
Intercompany sales | 23,566 | 23,735 | 71,235 | 74,377 |
Net income (loss) attributable to Mine Safety Appliances Company | 2,667 | 2,039 | 8,003 | 9,794 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 76,263 | 84,963 | 233,125 | 250,612 |
Intercompany sales | 6,363 | 4,902 | 16,619 | 14,770 |
Net income (loss) attributable to Mine Safety Appliances Company | 4,636 | 6,016 | 16,493 | 17,900 |
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Intercompany sales | -60,889 | -59,466 | -179,871 | -177,867 |
Net income (loss) attributable to Mine Safety Appliances Company | ($5,855) | ($3,922) | ($16,877) | ($8,180) |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $2,784 | $2,437 | $8,353 | $7,309 |
Interest cost | 4,468 | 4,793 | 13,404 | 14,371 |
Expected return on plan assets | -7,725 | -8,099 | -23,175 | -24,301 |
Amortization of prior service cost | 26 | 73 | 78 | 227 |
Recognized net actuarial losses | 3,325 | 1,473 | 9,979 | 4,423 |
Net periodic benefit cost | 2,878 | 677 | 8,639 | 2,029 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 172 | 174 | 516 | 522 |
Interest cost | 262 | 316 | 787 | 948 |
Amortization of prior service cost | -106 | -114 | -318 | -342 |
Recognized net actuarial losses | 137 | 132 | 413 | 396 |
Net periodic benefit cost | $465 | $508 | $1,398 | $1,524 |
Pensions_and_Other_Postretirem2
Pensions and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plans contributions | $3.40 |
Total pension plans contributions for the period | $4.50 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | |
Net balance at January 1 | $258,400 |
Currency translation | 988 |
Net balance at September 30 | $259,388 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $259,388 | $258,400 |
North America | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 196,500 | |
Europe | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 60,500 | |
International | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $2,400 |
Changes_in_Intangible_Assets_N
Changes in Intangible Assets, Net of Accumulated Amortization (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Finite-Lived Intangible Assets, Net [Abstract] | |
Net balance at January 1 | $38,648 |
Amortization expense | -2,787 |
Currency translation | 33 |
Net balance at September 30 | $35,894 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Finished products | $76,676 | $72,658 |
Work in process | 12,545 | 13,473 |
Raw materials and supplies | 55,056 | 50,169 |
Total inventories | $144,277 | $136,300 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options expiration period | 10 years |
Stock options exercisable period after grant date | 3 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving specified performance targets | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award based on achieving specified performance targets | 200.00% |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vest period | 3 years |
Schedule_of_Stock_Compensation
Schedule of Stock Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Stock compensation expense | $1,198 | $1,603 | $9,147 | $6,898 |
Income tax benefit | 432 | 589 | 3,380 | 2,522 |
Stock compensation expense, net of income tax benefit | $766 | $1,014 | $5,767 | $4,376 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Beginning balance,Shares | 1,784,660 |
Granted, Shares | 188,407 |
Exercised, Shares | -265,931 |
Outstanding Ending balance,Shares | 1,707,136 |
Exercisable Ending balance,Shares | 1,162,103 |
Outstanding Beginning balance, Weighted Average Exercise Price | $33.05 |
Granted, Weighted Average Exercise Price | $49.03 |
Exercised, Weighted Average Exercise Price | $34.36 |
Outstanding Ending balance,Weighted Average Exercise Price | $34.60 |
Exercisable Ending balance, Weighted Average Exercise Price | $31.88 |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (Restricted Stock Activity, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock Activity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | 417,843 |
Granted, Shares | 89,910 |
Vested, Shares | -168,226 |
Forfeited, Shares | -8,677 |
Unvested Shares, Ending Balance | 330,850 |
Unvested Weighted Average Grant Date Fair value, Beginning Balance | $31.92 |
Granted, Weighted Average Grant Date Fair Value | $49 |
Vested, Weighted Average Grant Date Fair Value | $26.88 |
Forfeited, Weighted Average Grant Date Fair Value | $40.38 |
Unvested Weighted Average Grant Date Fair value, Ending Balance | $38.90 |
Summary_of_Performance_Stock_U
Summary of Performance Stock Unit Activity (Detail) (Performance Stock Unit Activity, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Performance Stock Unit Activity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | 137,672 |
Granted, Shares | 53,357 |
Performance adjustments, Shares | 3,317 |
Vested, Shares | -45,113 |
Unvested Shares, Ending Balance | 149,233 |
Unvested Weighted Average Grant Date Fair value, Beginning Balance | $35.85 |
Granted, Weighted Average Grant Date Fair Value | $57.58 |
Performance adjustments, Weighted Average Grant Date Fair Value | $24.63 |
Vested, Weighted Average Grant Date Fair Value | $25.86 |
Unvested Weighted Average Grant Date Fair value, Ending Balance | $46.39 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative [Line Items] | |
Unrealized gain on contract | $0.30 |
Foreign exchange contract | |
Derivative [Line Items] | |
Notional amount of open forward contracts | $54.50 |
Balance_Sheet_Location_and_Fai
Balance Sheet Location and Fair Value of Assets and Liabilities Associated with Derivative Financial Instruments (Detail) (Foreign exchange contract, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Foreign exchange contract | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses and other current assets | $260 | $801 |
Income_Statement_Location_and_
Income Statement Location and Impact of Derivative Financial Instruments (Detail) (Derivatives Not Designated As Hedging Instruments, Foreign exchange contract, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Currency exchange losses, net | $233 | ($364) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Income Taxes [Line Items] | |
Unrecognized tax benefits | $9.50 |
Recognized tax benefits | 8.6 |
Accrued interest and penalties related to uncertain tax positions | $0.90 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Carrying Amounts and Fair Values of Financial Instruments or Liabilities [Line Items] | |
Carrying amount of fixed rate long-term debt | $160 |
Fair value of long-term debt | $167.10 |
Schedule_of_Assets_Held_for_Sa
Schedule of Assets Held for Sale (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Assets Held For Sale [Abstract] | |
Inventory | $1.80 |
Property, net of depreciation | 0.3 |
Total assets | $2.10 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 36 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Vendor | LegalMatter | LegalMatter | Single Incident | Single Incident | Uninsured Cumulative Trauma | Uninsured Cumulative Trauma | Cumulative Trauma | |
LegalMatter | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserves for product liability claims | $4 | $4.40 | ||||||
Number of lawsuits | 2,775 | 2,609 | 2,321 | |||||
Number of insurance carriers | 20 | |||||||
Insurance receivables | 152.1 | 130 | 112.1 | |||||
Insurance receivables, current | 2 | |||||||
Insurance receivables, noncurrent | 150.1 | |||||||
Product liability expense | $1.40 | $7.30 | $99.70 |
Summary_of_Cumulative_Trauma_P
Summary of Cumulative Trauma Product Liability Claims Activity (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
LegalMatter | LegalMatter | |
Commitments and Contingencies Disclosure [Abstract] | ||
Open claims, beginning of period | 2,609 | 2,321 |
New claims | 373 | 750 |
Settled and dismissed claims | -207 | -462 |
Open claims, end of period | 2,775 | 2,609 |
Summary_of_Insurance_Receivabl
Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance beginning of period | $130 | $112.10 |
Additions | 30.8 | 29.7 |
Collections and settlements | -8.7 | -11.8 |
Balance end of period | $152.10 | $130 |