Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 30, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HEXCEL CORP /DE/ | ' | ' |
Entity Central Index Key | '0000717605 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $3,387,607,226 |
Entity Common Stock, Shares Outstanding | ' | 98,916,627 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $65.50 | $32.60 |
Accounts receivable, net | 232.4 | 229 |
Inventories | 265.3 | 232.8 |
Prepaid expenses and other current assets | 93.2 | 81.3 |
Total current assets | 656.4 | 575.7 |
Property, plant and equipment, net | 1,067.40 | 914.4 |
Goodwill and other intangible assets | 61 | 57.8 |
Investments in affiliated companies | 23.3 | 22.6 |
Deferred tax assets | 10.3 | 15.4 |
Other assets | 17.7 | 17.2 |
Total assets | 1,836.10 | 1,603.10 |
Current liabilities: | ' | ' |
Short-term borrowings and current maturities of long-term debt | 3 | 16.6 |
Accounts payable | 135.9 | 115.7 |
Accrued compensation and benefits | 89.2 | 58.8 |
Other accrued liabilities | 40.6 | 44.2 |
Total current liabilities | 268.7 | 235.3 |
Long-term notes payable and capital lease obligations | 292 | 240 |
Long-term retirement obligations | 41.1 | 81.3 |
Other non-current liabilities | 73.9 | 52.4 |
Total liabilities | 675.7 | 609 |
Commitments and contingencies (see Note 13) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value, 200.0 shares of stock authorized, 104.0 and 102.4 shares of stock issued at December 31, 2013 and 2012, respectively | 1 | 1 |
Additional paid-in capital | 642.3 | 617 |
Retained earnings | 636.1 | 448.2 |
Accumulated other comprehensive income (loss) | 10.7 | -31.9 |
Total stockholders' equity including treasury stock value | 1,290.10 | 1,034.30 |
Less: Treasury stock, at cost, 5.1 and 2.5 shares at December 31, 2013 and 2012, respectively | -129.7 | -40.2 |
Total stockholders' equity | 1,160.40 | 994.1 |
Total liabilities and stockholders' equity | $1,836.10 | $1,603.10 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 200 | 200 |
Common stock, shares issued | 104 | 102.4 |
Treasury stock, shares | 5.1 | 2.5 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Operations | ' | ' | ' |
Net sales | $1,678.20 | $1,578.20 | $1,392.40 |
Cost of sales | 1,224.20 | 1,171.50 | 1,050.30 |
Gross margin | 454 | 406.7 | 342.1 |
Selling, general and administrative expenses | 141.4 | 130.7 | 120.5 |
Research and technology expenses | 41.7 | 36.7 | 32.6 |
Other income, net | ' | -9.5 | -3 |
Operating income | 270.9 | 248.8 | 192 |
Interest expense, net | 7.3 | 10 | 11.6 |
Non-operating expense | 1 | 1.1 | 4.9 |
Income before income taxes and equity in earnings | 262.6 | 237.7 | 175.5 |
Provision for income taxes | 76 | 74.1 | 41.6 |
Income before equity in earnings | 186.6 | 163.6 | 133.9 |
Equity in earnings from investments in affiliated companies | 1.3 | 0.7 | 1.6 |
Net income | $187.90 | $164.30 | $135.50 |
Basic net income per common share: (in dollars per share) | $1.88 | $1.64 | $1.37 |
Diluted net income per common share: (in dollars per share) | $1.84 | $1.61 | $1.35 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 100 | 100.2 | 98.8 |
Diluted (in shares) | 102.1 | 102 | 100.7 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Net income | $187.90 | $164.30 | $135.50 |
Other comprehensive income (loss) | ' | ' | ' |
Currency translation adjustments | 19.6 | 11.7 | -10.1 |
Net unrealized pension and other benefit actuarial gains (losses) and prior service credits, net of tax | 16.9 | -10.8 | -5 |
Net unrealized gains (losses) on financial instruments, net of tax | 6.1 | 7 | -9.6 |
Other comprehensive income (loss) | 42.6 | 7.9 | -24.7 |
Comprehensive income | $230.50 | $172.20 | $110.80 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock Par | Common Stock Additional Paid-In Capital | Accumulated Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $659.40 | $1 | $552.30 | $148.40 | ($15.10) | ($27.20) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 135.5 | ' | ' | 135.5 | ' | ' |
Change in other comprehensive income (loss) - net of tax | -24.7 | ' | ' | ' | -24.7 | ' |
Stock based compensation | 36.9 | ' | 36.9 | ' | ' | ' |
Acquisition of treasury stock | -4.9 | ' | ' | ' | ' | -4.9 |
Balance at Dec. 31, 2011 | 802.2 | 1 | 589.2 | 283.9 | -39.8 | -32.1 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 164.3 | ' | ' | 164.3 | ' | ' |
Change in other comprehensive income (loss) - net of tax | 7.9 | ' | ' | ' | 7.9 | ' |
Stock based compensation | 27.8 | ' | 27.8 | ' | ' | ' |
Acquisition of treasury stock | -8.1 | ' | ' | ' | ' | -8.1 |
Balance at Dec. 31, 2012 | 994.1 | 1 | 617 | 448.2 | -31.9 | -40.2 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 187.9 | ' | ' | 187.9 | ' | ' |
Change in other comprehensive income (loss) - net of tax | 42.6 | ' | ' | ' | 42.6 | ' |
Stock based compensation | 25.3 | ' | 25.3 | ' | ' | ' |
Acquisition of treasury stock | -89.5 | ' | ' | ' | ' | -89.5 |
Balance at Dec. 31, 2013 | $1,160.40 | $1 | $642.30 | $636.10 | $10.70 | ($129.70) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $187.90 | $164.30 | $135.50 |
Reconciliation to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 59.3 | 57.2 | 55.3 |
Amortization of debt discount and deferred financing costs | 2.1 | 3.1 | 7.1 |
Deferred income taxes | 16.4 | 30.9 | 23.4 |
Stock-based compensation | 18.9 | 15.8 | 13.9 |
Excess tax benefits on stock-based compensation | -5.3 | -6.8 | -8.5 |
Equity in earnings from investments in affiliated companies | -1.3 | -0.7 | -1.6 |
Gain on sale of surplus real estate | ' | -4.9 | ' |
Pension curtailment gain | ' | ' | -5.7 |
Changes in assets and liabilities: | ' | ' | ' |
Decrease (increase) in accounts receivable | 6.4 | -28.1 | -28.2 |
Increase in inventories | -28.4 | -15.2 | -48.8 |
(Increase) decrease in prepaid expenses and other current assets | -3.3 | 0.7 | -1.1 |
Increase in accounts payable and accrued liabilities | 19.2 | 20.3 | 34.1 |
(Increase) decrease in other, net | 1 | -4.2 | -4.9 |
Net cash provided by operating activities | 272.9 | 232.4 | 170.5 |
Cash flows from investing activities | ' | ' | ' |
Capital expenditures and deposits for capital purchases | -194.9 | -263.7 | -158 |
Proceeds from sale of surplus real estate | ' | 5.3 | ' |
Settlement of foreign currency hedge | ' | ' | -5.2 |
Net cash used for investing activities | -194.9 | -258.4 | -163.2 |
Cash flows from financing activities | ' | ' | ' |
Borrowings from senior secured credit facility | 309 | 87 | 135 |
Issuance costs related to debt | -2.4 | -0.6 | ' |
Capital lease obligations and other debt, net | -3.8 | -0.5 | -3 |
Repayment of senior secured credit facility | -17 | ' | ' |
Repayment of senior secured credit agreement - term loan | -85 | -7.5 | -5 |
Repayment of prior senior secured credit facilities | -165 | ' | -57 |
Purchase of stock | -90 | ' | ' |
Repayment of 6.75% senior subordinated notes | ' | -73.5 | -151.5 |
Call premium payment for 6.75% senior subordinated notes | ' | -0.8 | -3.4 |
Activity under stock plans and other | 7 | 4.1 | 10.5 |
Net cash (used for) provided by financing activities | -47.2 | 8.2 | -74.4 |
Effect of exchange rate changes on cash and cash equivalents | 2.1 | 0.9 | -0.6 |
Net increase (decrease) in cash and cash equivalents | 32.9 | -16.9 | -67.7 |
Cash and cash equivalents at beginning of year | 32.6 | 49.5 | 117.2 |
Cash and cash equivalents at end of year | 65.5 | 32.6 | 49.5 |
Supplemental information (See Note 14): | ' | ' | ' |
Accrual basis additions to property, plant and equipment | $206.50 | $241.30 | $184.50 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Cash Flows | ' | ' | ' |
6.75% senior subordinated notes (as a percent) | 6.75% | 6.75% | 6.75% |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
Note 1 — Significant Accounting Policies | |
Nature of Operations | |
Hexcel Corporation and its subsidiaries (herein referred to as “Hexcel”, “the Company”, “we”, “us”, or “our”), is a leading advanced composites company. We develop, manufacture, and market lightweight, high-performance structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and composite structures, for use in Commercial Aerospace, Space & Defense and Industrial Applications. Our products are used in a wide variety of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, a wide variety of recreational products and other industrial applications. | |
We serve international markets through manufacturing facilities, sales offices and representatives located in the Americas, Europe, Asia Pacific and Russia. We are also an investor in a joint venture, which manufactures composite structures for commercial aerospace. | |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Hexcel Corporation and its subsidiaries after elimination of all intercompany accounts, transactions and profits. We have a 50% equity ownership investment in an Asian joint venture Aerospace Composites Malaysia Sdn. Bhd. (“ACM”), formerly known as Asian Composites Manufactoring Sdn. Bhd. In accordance with accounting standards we have determined that this investment is not a variable interest entity and as we do not have the ability to exercise control over financial or operating decisions, this investment is accounted for using the equity method of accounting. | |
Use of Estimates | |
Preparation of the accompanying consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and all highly liquid investments with an original maturity of three months or less when purchased. Our cash equivalents are held in prime money market investments with strong sponsor organizations which are monitored on a continuous basis. | |
Inventories | |
Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out and average cost methods. Inventory is reported at its estimated net realizable value based upon our historical experience with inventory becoming obsolete due to age, changes in technology and other factors. | |
Property, Plant and Equipment | |
Property, plant and equipment, including capitalized interest applicable to major project expenditures, is recorded at cost. Asset and accumulated depreciation accounts are eliminated for dispositions, with resulting gains or losses reflected in earnings. Depreciation of plant and equipment is provided using the straight-line method over the estimated useful lives of the various assets. The estimated useful lives range from 10 to 40 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Repairs and maintenance are expensed as incurred, while major replacements and betterments are capitalized and depreciated over the remaining useful life of the related asset. | |
In 2012, we reassessed the estimated useful lives of certain machinery and equipment. We increased the useful lives of this machinery and equipment from 20 years to 25 years, and increased the useful lives of other certain machinery and equipment from 10 - 12 years to 20 years. We determined that this adjustment to the useful lives of certain assets was a change in accounting estimate and we accounted for the change prospectively; i.e. the accounting change impacts the three months ended December 31, 2012 and future periods. See Note 3. | |
Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the reporting unit level annually, or when events or changes in circumstances indicate that goodwill might be impaired. The Company’s annual test for goodwill impairment was performed in the fourth quarter. The Company performed a qualitative assessment and determined that it was more likely than not that the fair values of our reporting units were not less than their carrying values and it was not necessary to perform the currently prescribed two-step goodwill impairment test. | |
We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. The Company has indefinite-lived intangible assets, consisting of purchased emissions credits. These indefinite lived intangibles are tested annually for impairment as of November 30th, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of the indefinite lived intangible exceeds the fair value, the intangible asset is written down to its fair value. Fair value is calculated using discounted cash flows. | |
Impairment of Long-Lived Assets | |
The Company reviews long-lived assets, including property, plant and equipment and identifiable intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. These indicators include: a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which a long-lived asset is used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount expected for the acquisition or construction of a long-lived asset, a current period operating or cash flow loss combined with a history of losses associated with a long-lived asset and a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated life. | |
Software Development Costs | |
Costs incurred to develop software for internal-use are accounted for under Statement of Position 98-1, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.” All costs relating to the preliminary project stage and the post-implementation/operation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the useful life of the software. The amortization of capitalized costs commences when functionality of the computer software is achieved. | |
Investments | |
We have a 50% equity ownership investment in an Asian joint venture Aerospace Composites Malaysia Sdn. Bhd., formerly Asian Composites Manufacturing Sdn. Bhd. In accordance with ASC 810 we have determined that this investment is not a variable interest entity. As such, we account for our share of the earnings of this affiliated company using the equity method of accounting. The Company continues to evaluate to make certain that the facts and circumstances associated with this investment have not changed with respect to accounting for a variable interest entity. | |
Debt Financing Costs | |
Debt financing costs are deferred and amortized to interest expense over the life of the related debt. At December 31, 2013 and 2012, deferred debt financing costs, net of accumulated amortization, were $5.0 million and $4.6 million. | |
Share-Based Compensation | |
The fair value of Restricted Stock Units (RSU’s) is equal to the market price of our stock at date of grant and is amortized to expense ratably over the vesting period. Performance restricted stock units (“PRSUs”) are a form of RSUs in which the number of shares ultimately received depends on the extent to which we achieve a specified performance target. The fair value of the PRSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized straight-line over the total vesting period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. We use the Black-Scholes model to value compensation expense for all option-based payment awards made to employees and directors based on estimated fair values on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our consolidated statements of operations. The value of RSU’s, PRSU’s and Non-qualifying options awards for retirement eligible employees is expensed on the grant date as they are fully vested. | |
Currency Translation | |
The assets and liabilities of international subsidiaries are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at average exchange rates during the year. Cumulative currency translation adjustments are included in “accumulated other comprehensive income (loss)” in the stockholders’ equity section of the consolidated balance sheets. Gains and losses from foreign currency transactions are not material. | |
Revenue Recognition | |
Our revenue is predominately derived from sales of inventory, and is recognized when persuasive evidence of an arrangement exists, title and risk of loss passes to the customer, the sales price is fixed or determinable and collectability is reasonably assured. However, from time to time we enter into contractual arrangements for which other specific revenue recognition guidance is applied. | |
Recognition of revenue on bill and hold arrangements occurs only when risk of ownership has passed to the buyer, a fixed written commitment has been provided by the buyer, the goods are complete and ready for shipment, the goods are segregated from inventory, no performance obligations remain and a schedule for delivery of goods has been established. Revenues derived from design and installation services are recognized when the service is provided. Revenues derived from long-term construction-type contracts are accounted for using the percentage-of-completion method, and progress is measured on a cost-to-cost basis. If at any time expected costs exceed the value of the contract, the loss is recognized immediately. | |
Product Warranty | |
We provide for an estimated amount of product warranty at the point a claim is probable and estimable. This estimated amount is provided by product and based on current facts, circumstances and historical warranty experience. Warranty expense was $1.2 million, $2.2 million and $2.0 million for the years ended December 31, 2013, 2012 and 2011 respectively. | |
Research and Technology | |
Significant costs are incurred each year in connection with research and technology (“R&T”) programs that are expected to contribute to future earnings. Such costs are related to the development and, in certain instances, the qualification and certification of new and improved products and their uses. R&T costs are expensed as incurred. | |
Income Taxes | |
We provide for income taxes using the liability approach. Under the liability approach, deferred income tax assets and liabilities reflect tax net operating loss and credit carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets require a valuation allowance when it is more likely than not, based on the evaluation of positive and negative evidence, that some portion of the deferred tax assets may not be realized. The realization of deferred tax assets is dependent upon the timing and magnitude of future taxable income prior to the expiration of the deferred tax assets’ attributes. When events and circumstances so dictate, we evaluate the realizability of our deferred tax assets and the need for a valuation allowance by forecasting future taxable income. Investment tax credits are recorded on a flow-through basis, which reflects the credit in net income as a reduction of the provision for income taxes in the same period as the credit is realized for federal income tax purposes. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Two customers and their related subcontractors accounted for more than half of our annual net sales in 2013, 2012 and 2011. Refer to Note 16 for further information on significant customers. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information. As of December 31, 2013 and 2012, the allowance for doubtful accounts was $0.9 million and $1.8 million, respectively. Bad debt expense was immaterial for all years presented. | |
Derivative Financial Instruments | |
We use various financial instruments, including foreign currency forward exchange contracts and interest rate swap agreements, to manage our exposure to market fluctuations by generating cash flows that offset, in relation to their amount and timing, the cash flows of certain foreign currency denominated transactions or underlying debt instruments. We mark our foreign exchange forward contracts to fair value. The change in the fair value is recorded in current period earnings. When the derivatives qualify, we designate our foreign currency forward exchange contracts as cash flow hedges against forecasted foreign currency denominated transactions and report the effective portions of changes in fair value of the instruments in “accumulated other comprehensive income (loss)” until the underlying hedged transactions affect income. We designate our interest rate swap agreements as fair value or cash flow hedges against specific debt instruments and recognize interest differentials as adjustments to interest expense as the differentials may occur. We do not use financial instruments for trading or speculative purposes. | |
In accordance with accounting guidance, we recognize all derivatives as either assets or liabilities on our balance sheet and measure those instruments at fair value. | |
Self-insurance | |
We are self-insured up to specific levels for certain medical and health insurance and workers’ compensation plans. Accruals are established based on actuarial assumptions and historical claim experience, and include estimated amounts for incurred but not reported claims. | |
New Accounting Pronouncements | |
ASU 2011-11 Balance Sheet (Topic 210); Disclosures about Offsetting Assets and Liabilities: In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for annual and interim reporting periods beginning on or after January 1, 2013. The Company has no offsetting agreements and as such, adoption of this guidance did not have any impact on the Company’s reported financial results. | |
ASU 2013-02 Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income: In February 2013 the Financial Accounting Standards Board issued Accounting Standards Update 2013-02. The Company adopted this update in the first quarter of 2013. The amounts reclassified out of accumulated other comprehensive income during 2013 were not material. | |
ASU 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic 740): In July 2013, the FASB issued ASU No. 2013-11, which requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward on a jurisdictional basis. ASU 2013-11 is expected to reduce diversity in practice by providing specific guidance on the presentation of unrecognized tax benefits. ASU 2013-11 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted and the Company has chosen to adopt ASU 2013-11 in the fourth quarter of 2013. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
Note 2 — Inventories | ||||||||
December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Raw materials | $ | 103.4 | $ | 95 | ||||
Work in progress | 62.2 | 51.2 | ||||||
Finished goods | 99.7 | 86.6 | ||||||
Total inventories | $ | 265.3 | $ | 232.8 |
Net_Property_Plant_and_Equipme
Net Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Net Property, Plant and Equipment | ' | |||||||
Net Property, Plant and Equipment | ' | |||||||
Note 3 — Net Property, Plant and Equipment | ||||||||
December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Land | $ | 50.9 | $ | 41.9 | ||||
Buildings | 396.2 | 298.3 | ||||||
Equipment | 957 | 783.4 | ||||||
Construction in progress | 257.1 | 335.6 | ||||||
Property, plant and equipment | 1,661.20 | 1,459.20 | ||||||
Less accumulated depreciation | (593.8 | ) | (544.8 | ) | ||||
Net property, plant and equipment | $ | 1,067.40 | $ | 914.4 | ||||
Depreciation expense related to property, plant and equipment for the years ended December 31, 2013, 2012 and 2011, was $59.3 million, $57.2 million and $55.3 million, respectively. Capitalized interest of $2.9 million and $3.1 million for 2013 and 2012, respectively, was included in construction in progress and is associated with our carbon fiber expansion programs. Capitalized costs associated with software developed for internal use were $4.4 million and $2.8 million for 2013 and 2012, respectively. | ||||||||
In 2012, we reassessed the estimated useful lives of certain machinery and equipment. We increased the useful lives of certain machinery and equipment from 20 years to 25 years, and increased the useful lives of certain other machinery and equipment from 10 - 12 years to 20 years. We determined that this adjustment to the useful lives of certain assets was a change in accounting estimate and we accounted for the change prospectively; i.e. the accounting change impacts the three months ended December 31, 2012 and future periods. For the quarter and year ended December 31, 2012, the change in accounting estimate lowered depreciation expense by approximately $1.25 million (pre-tax), which was reflected in Gross Margin, or by approximately $0.01 earnings per basic and diluted common share. |
Goodwill_and_Purchased_Intangi
Goodwill and Purchased Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Purchased Intangible Assets | ' | ||||||||||
Goodwill and Purchased Intangible Assets | ' | ||||||||||
Note 4 — Goodwill and Purchased Intangible Assets | |||||||||||
Changes in the carrying amount of gross goodwill and other purchased intangibles for the years ended December 31, 2013 and 2012, by segment, are as follows: | |||||||||||
(In millions) | Composite | Engineered | Total | ||||||||
Materials | Products | ||||||||||
Balance as of December 31, 2011 | $ | 41.3 | $ | 16.1 | $ | 57.4 | |||||
Currency translation adjustments and other | 0.4 | — | 0.4 | ||||||||
Balance as of December 31, 2012 | $ | 41.7 | $ | 16.1 | $ | 57.8 | |||||
Additions | 3 | — | 3 | ||||||||
Amortization expense | (0.1 | ) | — | (0.1 | ) | ||||||
Currency translation adjustments and other | 0.4 | — | 0.4 | ||||||||
Balance as of December 31, 2013 | $ | 45 | $ | 16.1 | $ | 61.1 | |||||
We performed our annual impairment review of goodwill as of November 30, 2013 and determined that it was more likely than not that the fair values of our reporting units are above their carrying values. The addition to intangible assets in 2013 represents a license agreement with a third party. The goodwill and intangible asset balances as of December 31, 2013 include $3.6 million of indefinite-lived intangible assets, $2.9 of a definitive-lived intangible asset and $54.6 million of goodwill. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
Note 5 - Debt | ||||||||
(In millions) | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Foreign operation’s working capital line of credit | $ | 3 | $ | 4.8 | ||||
Current maturities of capital lease and other obligations | — | 1.8 | ||||||
Current maturities of term loan | — | 10 | ||||||
Short-term borrowings and current maturities of long-term debt | 3 | 16.6 | ||||||
Senior secured credit facility —revolving loan due 2018 | 292 | — | ||||||
Senior secured credit facility —term loan due 2015 | — | 75 | ||||||
Senior secured credit facility — revolving loan due 2015 | — | 165 | ||||||
Long-term debt | 292 | 240 | ||||||
Total debt | $ | 295 | $ | 256.6 | ||||
Estimated Fair Values of Notes Payable | ||||||||
We did not have any notes payable outstanding at December 31, 2013. | ||||||||
Senior Secured Credit Facility | ||||||||
In June 2013 we entered into a new $600 million senior secured revolving credit facility which matures in June 2018. The new facility replaces the Company’s previous senior secured credit facility ($82.5 million term loan and a $360 million revolving loan) that would have expired in July 2015. At the current leverage ratio the new rate is LIBOR + 1.25% or 75 basis points lower than the prior facility. In addition to the lower interest rates and fees on undrawn balances, the new facility provides greater flexibility. The proceeds from the new facility were used to repay all amounts, and terminate all commitments outstanding under the Company’s credit agreement and to pay fees and expenses in connection with the refinancing. As a result of the refinancing, the Company accelerated certain unamortized financing costs of the credit facility being replaced and the deferred expense on related interest rate swaps incurring a pretax charge of $1.0 million in the second quarter of 2013. | ||||||||
The new facility contains financial and other covenants, including, but not limited to, restrictions on the incurrence of debt and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio. In accordance with the terms of the new facility, we are required to maintain a minimum interest coverage ratio of 3.50 (based on the ratio of EBITDA, as defined in the credit agreement, to interest expense) and may not exceed a maximum leverage ratio of 3.50 (based on the ratio of total debt to EBITDA) throughout the term of the new facility. In addition, the new facility contains other terms and conditions such as customary representations and warranties, additional covenants and customary events of default. | ||||||||
Additionally, at December 31, 2013 we have interest rate swaps totaling approximately $150 million that expire before September 2016. These interest rate swaps are designated as cash flow hedges to our term loan. The interest rate swaps trade LIBOR for a fixed rate at an average rate of 0.81567%. | ||||||||
6.75% Senior Subordinated Notes, due 2015 | ||||||||
On February 1, 2005, we issued $225 million of 6.75% senior subordinated notes due 2015. The notes were unsecured senior subordinated obligations of Hexcel Corporation. Interest accrued at the rate of 6.75% per annum and were payable semi-annually in arrears on February 1 and August 1. | ||||||||
In June 2012 and February 2011, we redeemed $73.5 million and $150 million of these notes at a call premium of 1.125% and 2.25%, respectively, and purchased $1.5 million of notes on the open market. The redemptions were primarily funded by a $75 million and $135 million add-on to the Facility in 2012 and December 2010. As a result of the redemptions, we accelerated the unamortized financing costs of the senior subordinated notes being redeemed and expensed the call premium incurring a pretax charge of $1.1 million (after tax of $0.01 per diluted share) and $4.9 million (after tax of $0.03 per diluted share) in 2012 and 2011, respectively. | ||||||||
Other Credit Facility | ||||||||
We have a $10.0 million borrowing facility for working capital needs of our Chinese entity with an outstanding balance of $3.0 million on December 31, 2013. The facility contains a $10.0 million revolving credit line. These funds can only be used locally, and accordingly, we do not include this facility in our borrowing capacity disclosures. The facility is guaranteed by Hexcel Corporation, but is uncommitted and cancellable by the lender at any time. | ||||||||
Aggregate Maturities of Debt | ||||||||
The table below reflects aggregate scheduled maturities of debt as of December 31, 2013. | ||||||||
Payable during the years ending December 31: | (In millions) | |||||||
2014 | $ | 3 | ||||||
2015 | — | |||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 292 | |||||||
Total debt | $ | 295 |
Leasing_Arrangements
Leasing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Leasing Arrangements | ' | |||||||
Leasing Arrangements | ' | |||||||
Note 6 - Leasing Arrangements | ||||||||
On February 1, 2013 we exercised our purchase option on a capital lease for a building. In March 2013 we sold the building. The related assets, accumulated depreciation, and related liability balances under capital leasing arrangements, as of December 31, 2012 and 2011, were: | ||||||||
(In millions) | 2012 | 2011 | ||||||
Property, plant and equipment | $ | 3.7 | $ | 3.7 | ||||
Less accumulated depreciation | (1.6 | ) | (1.6 | ) | ||||
Net property, plant and equipment | $ | 2.1 | $ | 2.1 | ||||
Capital lease obligations | $ | 1.8 | $ | 2 | ||||
Less current maturities | (1.8 | ) | (0.2 | ) | ||||
Long-term capital lease obligations, net | $ | — | $ | 1.8 | ||||
Certain sales and administrative offices, data processing equipment and manufacturing facilities are leased under operating leases. We recognize rental expense on operating leases straight-line over the term of a lease. Total rental expense was $16.1 million in 2013, $15.4 million in 2012 and $15.2 million in 2011. | ||||||||
Scheduled future minimum lease payments as of December 31, 2013 were: | ||||||||
(In millions) | ||||||||
Payable during the years ending December 31: | Operating Leases | |||||||
2014 | 9.1 | |||||||
2015 | 5.3 | |||||||
2016 | 4.1 | |||||||
2017 | 2.2 | |||||||
2018 | 1.8 | |||||||
Thereafter | 9.3 | |||||||
Total minimum lease payments | $ | 31.8 |
Retirement_and_Other_Postretir
Retirement and Other Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Retirement and Other Postretirement Benefit Plans | ' | |||||||||||||||||||
Retirement and Other Postretirement Benefit Plans | ' | |||||||||||||||||||
Note 7 — Retirement and Other Postretirement Benefit Plans | ||||||||||||||||||||
We maintain qualified defined benefit retirement plans covering certain current and former European employees, as well as nonqualified defined benefit retirement plans and retirement savings plans covering certain eligible U.S. and European employees, and participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations. In addition, we provide certain postretirement health care and life insurance benefits to eligible U.S. retirees. | ||||||||||||||||||||
Accounting standards require the use of certain assumptions, such as the expected long-term rate of return, discount rate, rate of compensation increase, healthcare cost trend rates, and retirement and mortality rates, to determine the net periodic costs of such plans. These assumptions are reviewed and set annually at the beginning of each year. In addition, these models use an “attribution approach” that generally spreads individual events, such as plan amendments and changes in actuarial assumptions, over the service lives of the employees in the plan. That is, employees render service over their service lives on a relatively smooth basis and therefore, the income statement effects of retirement and postretirement benefit plans are earned in, and should follow, the same pattern. | ||||||||||||||||||||
We use our actual return experience, future expectations of long-term investment returns, and our actual and targeted asset allocations to develop our expected rate of return assumption used in the net periodic cost calculations of our funded European defined benefit retirement plans. Due to the difficulty involved in predicting the market performance of certain assets, there will be a difference in any given year between our expected return on plan assets and the actual return. Following the attribution approach, each year’s difference is amortized over a number of future years. Over time, the expected long-term returns are designed to approximate the actual long-term returns and therefore result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. | ||||||||||||||||||||
We annually set our discount rate assumption for retirement-related benefits accounting to reflect the rates available on high-quality, fixed-income debt instruments. The rates used reached a lowpoint as of 2012 and rebounded during 2013 and are expected to remain stable for 2014. The rate of compensation increase for nonqualified pension plans, which is another significant assumption used in the actuarial model for pension accounting, is determined by us based upon our long-term plans for such increases and assumed inflation. For the postretirement health care and life insurance benefits plan, we review external data and the plan’s historical trends for health care costs to determine the health care cost trend rates. Retirement and termination rates are based primarily on actual plan experience. The mortality table used for the U.S. plans is based on the RP2000 Mortality Table projected to 2020 and for the U.K. Plans the S1NA table with CMI 2011 projections (1.5% p.a. future improvements). | ||||||||||||||||||||
Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect the net periodic costs and recorded obligations in such future periods. While we believe that the assumptions used are appropriate, significant changes in economic or other conditions, employee demographics, retirement and mortality rates, and investment performance may materially impact such costs and obligations. | ||||||||||||||||||||
U.S. Defined Benefit Retirement Plans | ||||||||||||||||||||
We have nonqualified defined benefit retirement plans covering certain current and former U.S. employees that are funded as benefits are incurred. Under the provisions of these plans, we expect to contribute approximately $23.8 million in 2014 to cover unfunded benefits. | ||||||||||||||||||||
Multi-Employer Plan | ||||||||||||||||||||
The Company is party to a multi-employer pension plan covering certain U.S. employees with union affiliations. The plan is the Western Metal Industry Pension Fund, (“the Plan”). The Plan’s employer identification number is 91-6033499; the Plan number is 001. In 2012, the Plan reported Hexcel Corporation as being an employer that contributed greater than 5% of the Plan’s total contributions. The expiration date of the collective bargaining agreement is September 30, 2015. The Plan has been listed in “critical status” and has been operating in accordance with a Rehabilitation Plan since 2010. The Plan, as amended under the Rehabilitation Plan, reduced the adjustable benefits of the participants and levied a surcharge on employer contributions. The Company has contributed approximately $1.0 million in 2013, 2012 and 2011. We expect the Company’s contribution to be about $1.0 million in 2014 and remain at that level over the next few years. | ||||||||||||||||||||
U.S. Retirement Savings Plan | ||||||||||||||||||||
Under the retirement savings plan, eligible U.S. employees can contribute up to 75% of their annual compensation to an individual 401(k) retirement savings account. The Company makes matching contributions equal to 50% of employee contributions, not to exceed 3% of employee compensation each year. We also contribute an additional 2% to 4% of each eligible employee’s salary to an individual 401(k) retirement savings account, depending on the employee’s age. This increases the maximum contribution to individual employee savings accounts to between 5% and 7% per year, before any profit sharing contributions that are made when we meet or exceed certain performance targets that are set annually. These profit sharing contributions are made at the Company’s discretion and are targeted at 3% of an eligible employee’s pay, with a maximum of 4.5%. | ||||||||||||||||||||
U.S. Postretirement Plans | ||||||||||||||||||||
In addition to defined benefit and retirement savings plan benefits, we also provide certain postretirement health care and life insurance benefits to eligible U.S. retirees. Depending upon the plan, benefits are available to eligible employees who retire after meeting certain age and service requirements and were employed by Hexcel as of February 1996. Our funding policy for the postretirement health care and life insurance benefit plans is generally to pay covered expenses as they are incurred. Under the provisions of these plans, we expect to contribute approximately $0.6 million in 2014 to cover unfunded benefits. | ||||||||||||||||||||
European Defined Benefit Retirement Plans | ||||||||||||||||||||
We have defined benefit retirement plans in the United Kingdom, Belgium, France and Austria covering certain employees of our subsidiaries in those countries. The defined benefit plan in the United Kingdom (the “U.K. Plan”), the largest of the European plans, was terminated in 2011 and replaced with a defined contribution plan. We recorded a curtailment gain of $5.7 million (after tax gain of $0.04 per diluted share) to recognize previously unrecognized prior service credits. As of December 31, 2013, 57% of the total assets in the U.K. Plan were invested in equities. Equity investments are made with the objective of achieving a return on plan assets consistent with the funding requirements of the plan, maximizing portfolio return and minimizing the impact of market fluctuations on the fair value of the plan assets. As a result of an annual review of historical returns and market trends, the expected long-term weighted average rate of return for the U.K. Plan for the 2014 plan year will be 6.5% and 3.25% to 4.5% for the other European Plans as a group. | ||||||||||||||||||||
U.K. Defined Contribution Pension Plan | ||||||||||||||||||||
Under the Defined Contribution Section, eligible U.K. employees can belong to the Deferred Contribution Plan on a non-participatory basis or can elect to contribute 3%, 5% or 7% of their pensionable salary. The Company will contribute 5%, 9% and 13% respectively. The plan also provides life insurance and disability insurance benefits for members. | ||||||||||||||||||||
Retirement and Other Postretirement Plans - France | ||||||||||||||||||||
The employees of our French subsidiaries are entitled to receive a lump-sum payment upon retirement subject to certain service conditions under the provisions of the national chemicals and textile workers collective bargaining agreements. The amounts attributable to the French plans have been included within the total expense and obligation amounts noted for the European plans. | ||||||||||||||||||||
Net Periodic Pension Expense | ||||||||||||||||||||
Net periodic expense for our U.S. and European qualified and nonqualified defined benefit pension plans and our retirement savings plans for the three years ended December 31, 2013 is detailed in the table below. | ||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||
Defined benefit retirement plans | $ | 7.3 | $ | 5.4 | $ | (0.3 | ) | |||||||||||||
Union sponsored multi-employer pension plan | 1.6 | 1.2 | 0.9 | |||||||||||||||||
Retirement savings plans-matching contributions | 3 | 3.3 | 2.9 | |||||||||||||||||
Retirement savings plans-profit sharing contributions | 6.7 | 7.6 | 8 | |||||||||||||||||
Net periodic expense | $ | 18.6 | $ | 17.5 | $ | 11.5 | ||||||||||||||
Defined Benefit Retirement and Postretirement Plans | ||||||||||||||||||||
Net periodic cost of our defined benefit retirement and postretirement plans for the three years ended December 31, 2013, were: | ||||||||||||||||||||
(In millions) | U.S. Plans | European Plans | ||||||||||||||||||
Defined Benefit Retirement Plans | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||
Service cost | $ | 1.7 | $ | 1.3 | $ | 1.5 | $ | 0.7 | $ | 0.5 | $ | 1.1 | ||||||||
Interest cost | 0.8 | 1.1 | 1.1 | 6.9 | 6.6 | 7.2 | ||||||||||||||
Expected return on plan assets | — | — | — | (8.0 | ) | (7.3 | ) | (7.8 | ) | |||||||||||
Net amortization | 4 | 2.3 | 1.6 | 1.2 | 0.9 | 0.7 | ||||||||||||||
Curtailment gain | — | — | — | — | — | (5.7 | ) | |||||||||||||
Net periodic pension cost (income) | $ | 6.5 | $ | 4.7 | $ | 4.2 | $ | 0.8 | $ | 0.7 | $ | (4.5 | ) | |||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. Postretirement Plans | ||||||||||||||||||||
Interest cost | 0.2 | 0.3 | 0.4 | |||||||||||||||||
Net amortization and deferral | (0.4 | ) | (0.5 | ) | (0.3 | ) | ||||||||||||||
Net periodic postretirement benefit (income) cost | $ | (0.2 | ) | $ | (0.2 | ) | $ | 0.1 | ||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||
U.S. Plans | European Plans | Postretirement Plans | ||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||
Net loss (gain) | $ | 1 | $ | 3.1 | $ | (16.5 | ) | $ | 12.1 | $ | (1.6 | ) | $ | 0.1 | ||||||
Amortization of actuarial losses | (3.9 | ) | (2.2 | ) | (1.3 | ) | (0.9 | ) | 0.4 | 0.5 | ||||||||||
Amortization of prior service credit (cost) | (0.1 | ) | (0.1 | ) | — | — | — | — | ||||||||||||
Effect of foreign exchange | — | — | 0.2 | 1.9 | — | — | ||||||||||||||
Total recognized in other comprehensive income (pre-tax) | $ | (3.0 | ) | $ | 0.8 | $ | (17.6 | ) | $ | 13.1 | $ | (1.2 | ) | $ | 0.6 | |||||
The Company expects to recognize $2.4 million of net actuarial loss and an immaterial net prior service cost as a component of net periodic pension cost in 2014 for its defined benefit plans. The recognition of net prior service credit and net actuarial gain as a component of net periodic postretirement benefit cost in 2014 is expected to be immaterial. | ||||||||||||||||||||
The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit retirement plans and postretirement plans, as of and for the years ended December 31, 2013 and 2012, were: | ||||||||||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||
U.S. Plans | European Plans | Postretirement Plans | ||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||
Benefit obligation - beginning of year | $ | 38.6 | $ | 33.4 | $ | 164.8 | $ | 139.8 | $ | 8.1 | $ | 8 | ||||||||
Service cost | 1.7 | 1.3 | 0.7 | 0.5 | — | — | ||||||||||||||
Interest cost | 0.8 | 1.1 | 6.8 | 6.6 | 0.2 | 0.3 | ||||||||||||||
Plan participants’ contributions | — | — | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||
Actuarial loss (gain) | 1.1 | 3.1 | (8.3 | ) | 15.2 | (1.6 | ) | 0.1 | ||||||||||||
Benefits and expenses paid | (0.3 | ) | (0.3 | ) | (4.9 | ) | (3.7 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Currency translation adjustments | — | — | 3.5 | 6.3 | — | — | ||||||||||||||
Benefit obligation - end of year | $ | 41.9 | $ | 38.6 | $ | 162.7 | $ | 164.8 | $ | 6.4 | $ | 8.1 | ||||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets - beginning of year | $ | — | $ | — | $ | 128.3 | $ | 110.8 | $ | — | $ | — | ||||||||
Actual return on plan assets | — | — | 16.2 | 10.3 | — | — | ||||||||||||||
Employer contributions | 0.3 | 0.3 | 5.9 | 5.7 | 0.3 | 0.3 | ||||||||||||||
Plan participants’ contributions | — | — | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||
Benefits and expenses paid | (0.3 | ) | (0.3 | ) | (4.9 | ) | (3.7 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Currency translation adjustments | — | — | 3.7 | 5.1 | — | — | ||||||||||||||
Fair value of plan assets - end of year | $ | — | $ | — | $ | 149.3 | $ | 128.3 | $ | — | $ | — | ||||||||
Amounts recognized in Consolidated Balance Sheets: | ||||||||||||||||||||
Noncurrent Assets | $ | — | $ | — | $ | 2.7 | $ | — | $ | — | $ | — | ||||||||
Current liabilities | $ | 23.8 | $ | 0.3 | $ | 0.4 | $ | 0.4 | $ | 0.6 | $ | 0.6 | ||||||||
Non-current liabilities | 18.1 | 38.3 | 15.7 | 36.1 | 5.8 | 7.5 | ||||||||||||||
Total Liabilities | $ | 41.9 | $ | 38.6 | $ | 16.1 | $ | 36.5 | $ | 6.4 | $ | 8.1 | ||||||||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||||||||||||||||||
Actuarial net (loss) gain | $ | (7.3 | ) | $ | (10.2 | ) | $ | (32.2 | ) | $ | (49.7 | ) | $ | 4.3 | $ | 3.1 | ||||
Prior service cost | (0.1 | ) | (0.2 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||
Total amounts recognized in accumulated other comprehensive (loss) income | $ | (7.4 | ) | $ | (10.4 | ) | $ | (32.3 | ) | $ | (49.8 | ) | $ | 4.3 | $ | 3.1 | ||||
The measurement date used to determine the benefit obligations and plan assets of the defined benefit retirement and postretirement plans was December 31, 2013. | ||||||||||||||||||||
The total accumulated benefit obligation (“ABO”) for the U.S. defined benefit retirement plans was $40.9 million and $38.0 million as of December 31, 2013 and 2012, respectively. The European Plans’ ABO exceeded plan assets as of December 31, 2013 and 2012, by $11.0 million and $32.3 million, respectively. These plans’ ABO was $17.5 million and $160.6 million as of December 31, 2013 and 2012, respectively. The ABO and plan assets of the U.K. Plan are not included in the 2013 disclosures as the plan is no longer underfunded. | ||||||||||||||||||||
As of December 31, 2013 and 2012, the accrued benefit costs for the defined benefit retirement plans and postretirement benefit plans included within “accrued compensation and benefits” was $24.8 million and $1.3 million, respectively, and within “other non-current liabilities” was $39.6 million and $81.9 million, respectively, in the accompanying consolidated balance sheets. | ||||||||||||||||||||
Benefit payments for the plans are expected to be as follows: | ||||||||||||||||||||
(In millions) | U.S. Plans | European | Postretirement | |||||||||||||||||
Plans | Plans | |||||||||||||||||||
2014 | $ | 23.8 | $ | 3.8 | $ | 0.6 | ||||||||||||||
2015 | 4.5 | 4 | 0.7 | |||||||||||||||||
2016 | 2.2 | 5 | 0.7 | |||||||||||||||||
2017 | 1.1 | 5.7 | 0.6 | |||||||||||||||||
2018 | 1.4 | 6.8 | 0.7 | |||||||||||||||||
2019-2023 | 10.2 | 37.1 | 2.9 | |||||||||||||||||
$ | 43.2 | $ | 62.4 | $ | 6.2 | |||||||||||||||
Fair Values of Pension Assets | ||||||||||||||||||||
The following table presents pension assets measured at fair value at December 31, 2013 and 2012 utilizing the fair value hierarchy discussed in Note 19: | ||||||||||||||||||||
(In millions) | December | Fair Value Measurements at | ||||||||||||||||||
31, | December 31, 2013 | |||||||||||||||||||
Description | 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Equity funds | $ | 83.3 | $ | — | $ | 83.3 | $ | — | ||||||||||||
Active corporate bond fund | 58.5 | — | 58.5 | — | ||||||||||||||||
Diversified investment funds | 2.9 | — | — | 2.9 | ||||||||||||||||
Insurance contracts | 3.6 | — | — | 3.6 | ||||||||||||||||
Cash and cash equivalents | 1 | — | 1 | — | ||||||||||||||||
Total assets | $ | 149.3 | $ | — | $ | 142.8 | $ | 6.5 | ||||||||||||
December | Fair Value Measurements at | |||||||||||||||||||
31, | December 31, 2012 | |||||||||||||||||||
Description | 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Equity funds | $ | 70 | $ | — | $ | 70 | $ | — | ||||||||||||
Active corporate bond fund | 52.1 | — | 52.1 | — | ||||||||||||||||
Diversified investment funds | 3.1 | — | 0.3 | 2.8 | ||||||||||||||||
Insurance contracts | 3.1 | — | — | 3.1 | ||||||||||||||||
Total assets | $ | 128.3 | $ | — | $ | 122.4 | $ | 5.9 | ||||||||||||
(In millions) | Balance at | Actual | Purchases, | Changes due | Balance at | |||||||||||||||
Reconciliation of Level 3 Assets | January 1, | return on | sales and | to exchange | December 31, | |||||||||||||||
2013 | plan assets | settlements | rates | 2013 | ||||||||||||||||
Diversified investment funds | $ | 2.8 | $ | 0.2 | $ | (0.2 | ) | $ | 0.1 | $ | 2.9 | |||||||||
Insurance contracts | 3.1 | 0.1 | 0.2 | 0.2 | 3.6 | |||||||||||||||
Total level 3 assets | $ | 5.9 | $ | 0.3 | $ | — | $ | 0.3 | $ | 6.5 | ||||||||||
Reconciliation of Level 3 Assets | Balance at | Actual | Purchases, | Changes due | Balance at | |||||||||||||||
January 1, | return on | sales and | to exchange | December 31, | ||||||||||||||||
2012 | plan assets | settlements | rates | 2012 | ||||||||||||||||
Diversified investment funds | $ | 2.5 | $ | 0.2 | $ | 0.1 | $ | — | $ | 2.8 | ||||||||||
Insurance contracts | 2.6 | 0.2 | 0.2 | 0.1 | 3.1 | |||||||||||||||
Total level 3 assets | $ | 5.1 | $ | 0.4 | $ | 0.3 | $ | 0.1 | $ | 5.9 | ||||||||||
Plan assets are invested in a number of unit linked pooled funds by an independent asset management group. Equity funds are split 50/50 between U.K. and overseas equity funds (North America, Japan, Asia Pacific and Emerging Markets). The asset management firm uses quoted prices in active markets to value the assets. | ||||||||||||||||||||
The Bond Allocation is invested in a number of Active Corporate Bond funds which are pooled funds. The Corporate Bond funds primarily invest in corporate fixed income securities denominated in British Pounds Sterling with credit ratings of BBB- and above. We use quoted prices in active markets to value the assets. | ||||||||||||||||||||
Diversified investment funds are invested in an external pension fund which in turn invests in a range of asset classes including equities and government and corporate bonds, hedge funds and private equity. The fair value of the assets as of December 31, 2013 is equal to the fair value of the assets as of January 1, 2013, as provided by the external pension fund, adjusted for cash flows over the year and the estimated investment return on underlying assets over the year. | ||||||||||||||||||||
Insurance contracts contain a minimum guaranteed return. The fair value of the assets is equal to the total amount of all individual technical reserves plus the non-allocated employer’s financing fund reserves at the valuation date. The individual technical and financing fund reserves are equal to the accumulated paid contributions taking into account the insurance tarification and any allocated profit sharing return. | ||||||||||||||||||||
The actual allocations for the pension assets at December 31, 2013 and 2012, and target allocations by asset class, are as follows: | ||||||||||||||||||||
Percentage | Target | Percentage | Target | |||||||||||||||||
Of Plan Assets | Allocations | Of Plan Assets | Allocations | |||||||||||||||||
Asset Class | 2013 | 2013 | 2012 | 2012 | ||||||||||||||||
U.K. Equity Fund | 28.1 | % | 30.6 | % | 28 | % | 28.6 | % | ||||||||||||
Overseas Equity Fund | 27.7 | 30.6 | 26.6 | 28.6 | ||||||||||||||||
Active Corporate Bond Funds | 39.2 | 34.5 | 40.6 | 38.2 | ||||||||||||||||
Insurance Contracts | 2.4 | 2.4 | 2.4 | 2.4 | ||||||||||||||||
Diversified Investment Funds | 1.9 | 1.9 | 2.4 | 2.2 | ||||||||||||||||
Cash and cash equivalents | 0.7 | — | — | — | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Assumptions | ||||||||||||||||||||
The assumed discount rate for pension plans reflects the market rates for high-quality fixed income debt instruments currently available. The Buck Standard Yield Curve was used for the U.S. non-qualified and postretirement plans. For the U.K. plan, plan cash flows were not available and therefore we considered the derived yield to market on a representative bond of suitable duration taken from Buck’s synthetic bond yield curve. We believe that the timing and amount of cash flows related to these instruments is expected to match the estimated defined benefit payment streams of our plans. The assumed discount rate for the U.S. non-qualified plans has changed to use individual discount rates for each plan based on their associated cash flows. | ||||||||||||||||||||
Salary increase assumptions are based on historical experience and anticipated future management actions. For the postretirement health care and life insurance benefit plans, we review external data and our historical trends for health care costs to determine the health care cost trend rates. Retirement rates are based primarily on actual plan experience and on rates from previously mentioned mortality tables. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, generally affect the net periodic costs and recorded obligations in such future periods. While we believe that the assumptions used are appropriate, significant changes in economic or other conditions, employee demographics, retirement and mortality rates, and investment performance may materially impact such costs and obligations. | ||||||||||||||||||||
Assumptions used to estimate the actuarial present value of benefit obligations at December 31, 2013, 2012 and 2011 are shown in the following table. These year-end values are the basis for determining net periodic costs for the following year. | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
U.S. defined benefit retirement plans: | ||||||||||||||||||||
Discount rates | 0.1% - 4.0% | 2.00% | 3.20% | |||||||||||||||||
Rate of increase in compensation | 3.00% | 3.0%-5.8% | 3.00% | |||||||||||||||||
Expected long-term rate of return on plan assets | N/A | N/A | N/A | |||||||||||||||||
European defined benefit retirement plans: | ||||||||||||||||||||
Discount rates | 3.0% - 4.6% | 3.25% - 4.5% | 4.5% - 4.75% | |||||||||||||||||
Rates of increase in compensation | 3.00% | 3.00% | 3.00% | |||||||||||||||||
Expected long-term rates of return on plan assets | 4.0% — 6.5% | 4.0% — 6.5% | 4.25% — 6.5% | |||||||||||||||||
Postretirement benefit plans: | ||||||||||||||||||||
Discount rates | 3.80% | 2.75% | 3.85% | |||||||||||||||||
The following table presents the impact that a one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate would have on the 2014 pension expense, and the impact on our retirement obligation as of December 31, 2013 for a one-percentage-point change in the discount rate: | ||||||||||||||||||||
Non-Qualified | Retiree | U.K. | ||||||||||||||||||
Medical | Retirement | |||||||||||||||||||
(In millions) | Pension Plans | Plans | Plan | |||||||||||||||||
Periodic pension expense | ||||||||||||||||||||
One-percentage-point increase: | ||||||||||||||||||||
Expected long-term rate of return | $ | N/A | $ | N/A | $ | (1.4 | ) | |||||||||||||
Discount rate | $ | (0.1 | ) | $ | — | $ | (0.2 | ) | ||||||||||||
One-percentage-point decrease: | ||||||||||||||||||||
Expected long-term rate of return | $ | N/A | $ | N/A | $ | 1.4 | ||||||||||||||
Discount rate | $ | 0.3 | $ | — | $ | 0.4 | ||||||||||||||
Retirement obligation | ||||||||||||||||||||
One-percentage-point increase in discount rate | $ | (1.1 | ) | $ | (0.4 | ) | $ | (21.2 | ) | |||||||||||
One-percentage-point decrease in discount rate | $ | 1.2 | $ | 0.4 | $ | 26.8 | ||||||||||||||
The annual rate of increase in the per capita cost of covered health care benefits is assumed to be 8.0% for medical non-Medicare eligible, 6.0% for Medicare eligible and 5.0% for dental and vision for 2014. The medical rates are assumed to gradually decline to 4.5% by 2021, whereas dental and vision rates are assumed to remain constant at 5.0%. A one-percentage-point increase and a one-percentage-point decrease in the assumed health care cost trend would have an insignificant impact on the total of service and interest cost components, and would have an unfavorable and a favorable impact of approximately $0.2 million and $0.2 million on the postretirement benefit obligation for both 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
Note 8 - Income Taxes | |||||||||||
Income before income taxes and the provision for income taxes, for the three years ended December 31, 2013, were as follows: | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Income before income taxes: | |||||||||||
U.S. | $ | 149.8 | $ | 137.4 | $ | 106.3 | |||||
International | 112.8 | 100.3 | 69.2 | ||||||||
Total income before income taxes | $ | 262.6 | $ | 237.7 | $ | 175.5 | |||||
Provision for income taxes: | |||||||||||
Current: | |||||||||||
U.S. | $ | 30.5 | $ | 36.9 | $ | 10.6 | |||||
International | 29.2 | 20.7 | 7.6 | ||||||||
Current provision for income taxes | 59.7 | 57.6 | 18.2 | ||||||||
Deferred: | |||||||||||
U.S. | 13.1 | 10.4 | 24.4 | ||||||||
International | 3.2 | 6.1 | (1.0 | ) | |||||||
Deferred provision for income taxes | 16.3 | 16.5 | 23.4 | ||||||||
Total provision for income taxes | $ | 76 | $ | 74.1 | $ | 41.6 | |||||
A reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate of 35% to the effective income tax rate, for the three years ended December 31, 2013, is as follows: | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Provision for taxes at U.S. federal statutory rate | $ | 91.9 | $ | 83.2 | $ | 61.5 | |||||
State and local taxes, net of federal benefit | 2 | 2.2 | 2.2 | ||||||||
Foreign effective rate differential | (12.5 | ) | (10.3 | ) | (8.4 | ) | |||||
Research and Development tax credits | (2.8 | ) | (0.7 | ) | (2.0 | ) | |||||
Other | (2.6 | ) | 0.5 | (0.2 | ) | ||||||
Tax Settlement | — | 0.2 | (5.5 | ) | |||||||
Change in valuation allowance | — | (1.0 | ) | (6.0 | ) | ||||||
Total provision for income taxes | $ | 76 | $ | 74.1 | $ | 41.6 | |||||
The 2013 tax provision includes a benefit for U.S. Research and Development (“R&D”) tax credits comprised of the current year R&D tax credit and a catch-up adjustment for the prior year R&D tax credit which was excluded from last years’ provision due to the expiration of the tax credit at December 31, 2011. The current R&D tax credit expired December 31, 2013. | |||||||||||
Included in the 2011 provision were certain tax benefits relating to the reversal of valuation allowances on net operating losses in certain foreign jurisdictions and U.S. foreign tax credit carryforwards as it became more likely than not that these deferred tax assets would be realized. The 2011 provision also reflects the favorable impact of a tax audit settlement in one of the foreign jurisdictions. | |||||||||||
As of December 31, 2013 and 2012, we did not have a U.S. income tax provision for undistributed earnings of international subsidiaries. We do not currently have any specific plans to repatriate funds from our international subsidiaries; however we may do so in the future if a dividend can be remitted with no material tax impact. Such earnings are considered to be permanently reinvested. Estimating the tax liability that would result if these earnings were repatriated is not practicable at this time. | |||||||||||
Deferred Income Taxes | |||||||||||
Deferred income taxes result from tax attributes including foreign tax credits, net operating loss carryforwards and temporary differences between the recognition of items for income tax purposes and financial reporting purposes. Principal components of deferred income taxes as of December 31, 2013 and 2012 are: | |||||||||||
(In millions) | 2013 | 2012 | |||||||||
Assets | |||||||||||
Net operating loss carryforwards | $ | 63.6 | $ | 56.2 | |||||||
Unfunded pension liability and other postretirement obligations | 16 | 15.3 | |||||||||
Advanced payments from foreign affiliates | 28.9 | 22.3 | |||||||||
Tax credit carryforwards | 11.2 | 35.4 | |||||||||
Stock based compensation | 14.4 | 12.6 | |||||||||
Other comprehensive income | 6 | 14 | |||||||||
Reserves and other | 18.9 | 14.7 | |||||||||
Subtotal | 159 | 170.5 | |||||||||
Valuation allowance | (62.3 | ) | (49.4 | ) | |||||||
Total assets | $ | 96.7 | $ | 121.1 | |||||||
Liabilities | |||||||||||
Accelerated depreciation | (63.4 | ) | (50.1 | ) | |||||||
Accelerated amortization | (9.2 | ) | (8.2 | ) | |||||||
Other | (0.8 | ) | (0.2 | ) | |||||||
Total liabilities | $ | (73.4 | ) | $ | (58.5 | ) | |||||
Net deferred tax asset | $ | 23.3 | $ | 62.6 | |||||||
Deferred tax assets and deferred tax liabilities as presented in the consolidated balance sheets as of December 31, 2013 and 2012 are as follows and are recorded in prepaid expenses and other current assets, deferred tax assets, other accrued liabilities and other non-current liabilities in the consolidated balance sheets: | |||||||||||
(In millions) | 2013 | 2012 | |||||||||
Current deferred tax assets, net | $ | 63.3 | $ | 62.5 | |||||||
Current deferred tax liability, net | (1.4 | ) | (0.2 | ) | |||||||
Long-term deferred tax assets, net | 10.3 | 15.4 | |||||||||
Long-term deferred tax liability, net | (48.9 | ) | (15.1 | ) | |||||||
Net deferred tax assets | $ | 23.3 | $ | 62.6 | |||||||
In July 2013, the FASB issued ASU No. 2013-11, which requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward on a jurisdictional basis. ASU 2013-11 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted and the Company has chosen to adopt ASU 2013-11 in the fourth quarter of 2013. The adoption of this standard resulted in a reduction of the Company’s long term deferred tax assets by $21.4 million. | |||||||||||
The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more likely than not, be realized in the future. The net change in the total valuation allowance for the years ended December 31, 2013 and 2012 was an increase of $12.9 million and $10.0 million, respectively. The valuation allowance as of December 31, 2013 and 2012 relates primarily to net operating loss carryforwards of our foreign subsidiaries, and certain state net operating loss carryforwards for which we have determined, based upon historical results and projected future book and taxable income levels, that a valuation allowance should continue to be maintained. | |||||||||||
Although realization is not assured, we have concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences. | |||||||||||
Net Operating Loss & Tax Credit Carryforwards | |||||||||||
At December 31, 2013, we had tax credit carryforwards for U.S. tax purposes of $28.8 million available to offset future income taxes. These credits will begin to expire if not utilized in 2014. | |||||||||||
We also had net operating loss carryforwards for foreign income tax purposes of $231.8 million, for which there are valuation allowances of $214.8 million as of December 31, 2013. Our foreign net operating losses can be carried forward without limitation in Belgium, Luxembourg and U.K. The carryforward period in Spain and China is limited to 18 and 5 years, respectively. We have a full valuation allowance against certain foreign net operating losses for which the Company believes it is not more likely than not that the net operating losses will be utilized. | |||||||||||
Uncertain Tax Positions | |||||||||||
Our unrecognized tax benefits at December 31, 2013, relate to various Foreign and U.S. jurisdictions. | |||||||||||
The following table summarizes the activity related to our unrecognized tax benefits: | |||||||||||
Unrecognized Tax Benefits | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Balance as of January 1, | $ | 32.6 | $ | 12.5 | $ | 20.1 | |||||
Additions based on tax positions related to the current year | 5.2 | 1.7 | 1.5 | ||||||||
Additions/(reductions) for tax positions of prior years | 5.7 | 19 | (1.1 | ) | |||||||
Decreases relating to settlements with tax authorities | — | — | (6.7 | ) | |||||||
Expiration of the statute of limitations for the assessment of taxes | (1.3 | ) | (0.8 | ) | (1.6 | ) | |||||
Other, including currency translation | 0.5 | 0.2 | 0.3 | ||||||||
Balance as of December 31, | $ | 42.7 | $ | 32.6 | $ | 12.5 | |||||
Included in the unrecognized tax benefits of $42.7 million at December 31, 2013 was $39 million of tax benefits that, if recognized, would impact our annual effective tax rate. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. The Company recognized $0.7 million, $0.1 million, ($0.1) million of interest expense (income) related to the above unrecognized tax benefits in 2013, 2012 and 2011, respectively. The Company had accrued interest of approximately $1.6 million and $0.9 million as of December 31, 2013 and 2012, respectively. During 2013 we did not reverse any interest and in 2012, we reversed $0.1 million related to the unrecognized tax benefits. | |||||||||||
We are subject to taxation in the U.S. and various states and foreign jurisdictions. The U.S. tax returns have been audited through 2007. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Austria (2007 onward), Belgium (2011 onward), France (2011 onward), Spain (2004 onward) and U.K. (2011 onward). We are currently under examination in certain of the foreign jurisdictions. | |||||||||||
As of December 31, 2013, we had uncertain tax positions for which it is reasonably possible that amounts of unrecognized tax benefits could significantly change over the next year. These uncertain tax positions relate to our tax returns from 2004 onward, some of which are currently under examination by certain European tax authorities. During 2011, the Company settled an audit with foreign tax authorities in one of the jurisdictions under examination. The favorable settlement resulted in a reduction of uncertain tax benefits of approximately $5.5 million which was recognized in 2011. As of December 31, 2013, the Company has not classified any of the unrecognized tax benefits as a current liability as it does not expect to settle any of the tax positions under examinations in various jurisdictions within the next twelve months. | |||||||||||
We expect that the amount of unrecognized tax benefits will continue to change in the next twelve months as a result of ongoing tax deductions, the resolution of audits and the passing of the statute of limitations. We are unable to make a reliable estimate of the eventual cash flows of the $42.7 million of unrecognized tax benefits. |
Capital_Stock
Capital Stock | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Capital Stock | ' | |||||||
Capital Stock | ' | |||||||
Note 9 - Capital Stock | ||||||||
Common Stock Outstanding | ||||||||
Common stock outstanding as of December 31, 2013, 2012 and 2011 was as follows: | ||||||||
(Number of shares in millions) | 2013 | 2012 | 2011 | |||||
Common stock: | ||||||||
Balance, beginning of year | 102.4 | 101 | 99.5 | |||||
Activity under stock plans | 1.6 | 1.4 | 1.5 | |||||
Balance, end of year | 104 | 102.4 | 101 | |||||
Treasury stock: | ||||||||
Balance, beginning of year | 2.5 | 2.2 | 2.2 | |||||
Issued under stock plans | — | — | (0.5 | ) | ||||
Repurchased | 2.6 | 0.3 | 0.5 | |||||
Balance, end of year | 5.1 | 2.5 | 2.2 | |||||
Common stock outstanding | 98.9 | 99.9 | 98.8 | |||||
In July 2013, our Board authorized us to repurchase an additional $150 million of our outstanding common stock. The Company spent $40 million to repurchase 896,653 shares of common stock during the fourth quarter of 2013 under this authorized Repurchase Plan, of which 148,990 shares were settled in January 2014. | ||||||||
In December 2012, our Board authorized us to repurchase up to $50 million of our outstanding common stock (“Repurchase Plan”). During the six-month period ended June 30, 2013 the Company repurchased a total of 1,573,588 shares at a cost of $50 million and completed the December 2012 Repurchase Plan. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 10 — Stock-Based Compensation | |||||||||||||||||
The following table details the stock-based compensation expense by type of award for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||||||||
Non-qualified stock options | $ | 3.8 | $ | 4.5 | $ | 4.1 | |||||||||||
Restricted stock, service based (“RSUs”) | 6 | 6.5 | 5 | ||||||||||||||
Restricted stock, performance based (“PRSUs”) | 8.8 | 4.6 | 4.7 | ||||||||||||||
Employee stock purchase plan | 0.3 | 0.2 | 0.1 | ||||||||||||||
Stock-based compensation expense | $ | 18.9 | $ | 15.8 | $ | 13.9 | |||||||||||
Tax benefit from stock options exercised during the period | $ | 5.3 | $ | 6.8 | $ | 8.5 | |||||||||||
Non-Qualified Stock Options | |||||||||||||||||
Non-qualified stock options have been granted to our employees and directors under our stock compensation plan. Options granted generally vest over three years and expire ten years from the date of grant. | |||||||||||||||||
A summary of option activity under the plan for the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted-Average | |||||||||||||||
Options | Average | Remaining | |||||||||||||||
(In millions) | Exercise Price | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2010 | 4.5 | $ | 10.84 | 5.16 | |||||||||||||
Options granted | 0.6 | $ | 19.19 | ||||||||||||||
Options exercised | (1.6 | ) | $ | 8.17 | |||||||||||||
Options expired or forfeited | (0.1 | ) | $ | 12.93 | |||||||||||||
Outstanding at December 31, 2011 | 3.4 | $ | 13.55 | 6.45 | |||||||||||||
Options granted | 0.5 | $ | 25.03 | ||||||||||||||
Options exercised | (0.6 | ) | $ | 10.41 | |||||||||||||
Options expired or forfeited | — | $ | 21.82 | ||||||||||||||
Outstanding at December 31, 2012 | 3.3 | $ | 15.67 | 6.26 | |||||||||||||
Options granted | 0.3 | $ | 28.27 | ||||||||||||||
Options exercised | (0.6 | ) | $ | 14.44 | |||||||||||||
Outstanding at December 31, 2013 | 3 | $ | 17.3 | 5.96 | |||||||||||||
Year Ended December 31, | |||||||||||||||||
(In millions, except weighted average exercise price) | 2013 | 2012 | |||||||||||||||
Aggregate intrinsic value of outstanding options | $ | 82.5 | $ | 37.4 | |||||||||||||
Aggregate intrinsic value of exercisable options | $ | 66.9 | $ | 29.5 | |||||||||||||
Total intrinsic value of options exercised | $ | 10.9 | $ | 9.1 | |||||||||||||
Total number of options exercisable | 2.2 | 2.2 | |||||||||||||||
Weighted average exercise price of options exercisable | $ | 14.09 | $ | 13.57 | |||||||||||||
Total unrecognized compensation cost on nonvested options (a) | $ | 1.6 | $ | 2.1 | |||||||||||||
(a) Unrecognized compensation cost relates to nonvested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years. | |||||||||||||||||
The following table summarizes information about non-qualified stock options outstanding as of December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||
Exercise Prices | Options | Average | Average | Options | Average | ||||||||||||
Outstanding (a) | Remaining | Exercise | Exercisable (a) | Exercise | |||||||||||||
Life (in Years) | Price | Price | |||||||||||||||
$ | 7.83 | – | 10.9 | 1.1 | 5.59 | $ | 9.38 | 1.1 | $ | 9.38 | |||||||
$ | 14.51 | – | 21.11 | 1 | 4.97 | $ | 18.54 | 0.8 | $ | 17.45 | |||||||
$ | 22.00 | – | 28.27 | 0.9 | 7.58 | $ | 25.79 | 0.3 | $ | 23.54 | |||||||
$ | 7.83 | – | 28.27 | 3 | 5.96 | $ | 17.3 | 2.2 | $ | 14.09 | |||||||
(a) in millions | |||||||||||||||||
Valuation Assumptions in Estimating Fair Value | |||||||||||||||||
We estimated the fair value of stock options at the grant date using the Black-Scholes option pricing model with the following assumptions for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.08 | % | 0.83 | % | 1.88 | % | |||||||||||
Expected option life (in years) Executive | 6.32 | 5.44 | 4.84 | ||||||||||||||
Expected option life (in years) Non-Executive | 4.8 | 4.45 | 4.71 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||
Volatility | 40.12 | % | 45.76 | % | 44.08 | % | |||||||||||
Weighted-average fair value per option granted | $ | 11.07 | $ | 10.24 | $ | 7.65 | |||||||||||
We determine the expected option life for each grant based on ten years of historical option activity for two separate groups of employees (executive and non-executive). The weighted-average expected life (“WAEL”) is derived from the average midpoint between the vesting and the contractual term and considers the effect of both the inclusion and exclusion of post-vesting cancellations during the ten-year period. Expected volatility is calculated based on a blend of both historic volatility of our common stock and implied volatility of our traded options. We weigh both volatility inputs equally and utilize the average as the volatility input for the Black-Scholes calculation. The risk-free interest rate for the expected term is based on the U.S. Treasury yield curve in effect at the time of grant and corresponding to the expected term. No dividends were paid in either period. | |||||||||||||||||
Restricted Stock Units — Service Based | |||||||||||||||||
As of December 31, 2013, a total of 592,882 shares of service based restricted stock (“RSUs”) were outstanding, which vest based on years of service under the 2003 and 2013 incentive stock plans. RSUs are granted to key employees, executives and directors of the Company. The fair value of the RSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized on a straight line basis over the requisite service period. The stock-based compensation expense recognized is based on an estimate of shares ultimately expected to vest, and therefore it has been reduced for estimated forfeitures. | |||||||||||||||||
The table presented below provides a summary of the Company’s RSU activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
RSUs | Average | ||||||||||||||||
(In millions) | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 31, 2010 | 1 | $ | 11.76 | ||||||||||||||
RSUs granted | 0.3 | $ | 20.63 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 12.51 | |||||||||||||
Outstanding at December 31, 2011 | 0.9 | $ | 14.49 | ||||||||||||||
RSUs granted | 0.3 | $ | 25.26 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 12.1 | |||||||||||||
Outstanding at December 31, 2012 | 0.8 | $ | 18.9 | ||||||||||||||
RSUs granted | 0.2 | $ | 28.95 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 15.7 | |||||||||||||
Outstanding at December 31, 2013 | 0.6 | $ | 23.79 | ||||||||||||||
As of December 31, 2013, there was total unrecognized compensation cost related to nonvested RSUs of $3.1 million, which is to be recognized over the remaining vesting period ranging from one year to three years. | |||||||||||||||||
Restricted Stock Units — Performance Based | |||||||||||||||||
As of December 31, 2013, a total of 453,897 shares of performance based restricted stock (“PRSUs”) were outstanding under the 2003 and 2013 incentive stock plans. The total amount of PRSUs that will ultimately vest is based on the achievement of various financial performance targets set forth by the Company’s Compensation Committee on the date of grant. PRSUs are based on a three year performance period. Based on current projections and performance targets, it is estimated that an additional 0.3 million performance shares may be issuable for the 2011, 2012 and 2013 awards. The fair value of the PRSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized straight-line over the total three year period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. | |||||||||||||||||
The table presented below provides a summary, of the Company’s PRSU activity, at original grant amounts, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
PRSUs | Average | ||||||||||||||||
(In millions) | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 31, 2010 | 0.6 | $ | 9.77 | ||||||||||||||
PRSUs granted | 0.1 | $ | 19.02 | ||||||||||||||
Outstanding at December 31, 2011 | 0.7 | $ | 11.53 | ||||||||||||||
PRSUs granted | 0.1 | $ | 25.03 | ||||||||||||||
PRSUs additional performance shares | 0.2 | $ | 8 | ||||||||||||||
PRSUs issued | (0.5 | ) | $ | 8.28 | |||||||||||||
Outstanding at December 31, 2012 | 0.5 | $ | 16.93 | ||||||||||||||
PRSUs granted | 0.2 | $ | 28.27 | ||||||||||||||
PRSUs additional performance shares | 0.3 | $ | 10.72 | ||||||||||||||
PRSUs issued | (0.5 | ) | $ | 10.64 | |||||||||||||
Outstanding at December 31, 2013 | 0.5 | $ | 24.6 | ||||||||||||||
As of December 31, 2013, there was total unrecognized compensation cost related to nonvested PRSUs of $3.7 million, which is to be recognized over the remaining vesting period ranging from one year to three years. The final amount of compensation cost to be recognized is dependent upon our financial performance. | |||||||||||||||||
Stock-Based Compensation Cash Activity | |||||||||||||||||
During 2013, cash received from stock option exercises and from employee stock purchases was $9.8 million. We used $7.4 million in cash related to the shares withheld to satisfy employee tax obligations for NQOs exercised and RSUs and PRSUs converted during the year ended December 31, 2013. We realized a tax benefit of $5.3 million in connection with stock options exercised and RSUs and PRSUs converted during 2013. | |||||||||||||||||
We classify the cash flows resulting from these tax benefits as financing cash flows. We either issue new shares of our common stock or utilize treasury shares upon the exercise of stock options or the conversion of stock units. | |||||||||||||||||
Shares Authorized for Grant | |||||||||||||||||
As of December 31, 2013, an aggregate of 3.8 million shares were authorized for future grant under our stock plan, which covers stock options, RSUs, PRSUs and at the discretion of Hexcel, could result in the issuance of other types of stock-based awards. | |||||||||||||||||
Employee Stock Purchase Plan (“ESPP”) | |||||||||||||||||
The Company offers an ESPP, which allows for eligible employees to contribute up to 10% of their base earnings toward the quarterly purchase of our common stock at a purchase price equal to 85% of the fair market value of the common stock. There were 31,003 and 31,448 ESPP shares purchased in 2013 and 2012, respectively. |
Net_Income_Per_Common_Share
Net Income Per Common Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Net Income Per Common Share | ' | ||||||||||
Net Income Per Common Share | ' | ||||||||||
Note 11 - Net Income Per Common Share | |||||||||||
Computations of basic and diluted net income per common share for the years ended December 31, 2013, 2012 and 2011, are as follows: | |||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 187.9 | $ | 164.3 | $ | 135.5 | |||||
Basic net income per common share: | |||||||||||
Weighted average common shares outstanding | 100 | 100.2 | 98.8 | ||||||||
Basic net income per common share | $ | 1.88 | $ | 1.64 | $ | 1.37 | |||||
Diluted net income per common share: | |||||||||||
Weighted average common shares outstanding — Basic | 100 | 100.2 | 98.8 | ||||||||
Plus incremental shares from assumed conversions: | |||||||||||
Restricted stock units | 0.7 | 0.8 | 0.9 | ||||||||
Stock options | 1.4 | 1 | 1 | ||||||||
Weighted average common shares outstanding — Diluted | 102.1 | 102 | 100.7 | ||||||||
Diluted net income per common share | $ | 1.84 | $ | 1.61 | $ | 1.35 | |||||
Anti-dilutive shares outstanding, excluded from computation | — | 0.5 | 0.3 |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Financial Instruments | ' | ||||||||||
Derivative Financial Instruments | ' | ||||||||||
Note 12 — Derivative Financial Instruments | |||||||||||
Interest Rate Swap Agreements | |||||||||||
In June 2012 and in 2010, we entered into agreements to swap $75 million and $98 million, respectively, of floating rate obligations for fixed rate obligations at 0.6725% and 1.03% against LIBOR in U.S. dollars. Both swaps were scheduled to mature in March 2014. As a result of our refinancing of the bank loan, we de-designated the notional $98 million swap which resulted in a charge of $0.4 million. In September, we terminated the swap and settled for cash of $0.5 million. Also in September, we entered into three new interest rate swaps, whereby we pay a fixed rate in exchange for floating LIBOR. The maturity dates of the new swaps are from March 2016 to September 2016 at an average rate of 0.81567%. | |||||||||||
All swaps are accounted for as cash flow hedges of our floating rate bank loans. To ensure the swaps were highly effective, all of the principal terms of the swaps matched the terms of the bank loans. The remaining balance of the swaps at December 31, 2013 was approximately $150 million. The fair value of all interest rate swaps was a liability of $0.6 million and $1.0 million at December 31, 2013 and 2012, respectively. | |||||||||||
Foreign Currency Forward Exchange Contracts | |||||||||||
A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British Pound sterling. We entered into contracts to exchange U.S. dollars for Euros and British Pound sterling through June 2016. The aggregate notional amount of these contracts was $187.1 million and $201.2 million at December 31, 2013 and December 31, 2012, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges was a gain of $7.9 million, $6.4 million and $2.9 million, for the years ended December 31, 2013, 2012 and 2011, respectively and are recorded in other comprehensive income (“OCI”). At December 31, 2013, $11.5 million of the carrying amount of these contracts was classified in other assets and $0.6 million in other liabilities on the consolidated balance sheets and $3.6 million in other assets and $1.6 million classified in other liabilities at December 31, 2012. During the years ended December 31, 2013, 2012 and 2011, we recognized a net gain of $0.4 million, a net loss of $3.1 million and a net gain of $3.1 million, respectively, recorded in gross margin. For the three years ended December 31, 2013, 2012 and 2011, hedge ineffectiveness was immaterial. | |||||||||||
In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the years ended December 31, 2013, 2012 and 2011, we recognized a net foreign exchange gain of $7.6 million, a gain of $5.3 million, and a loss of $4.8 million, respectively, in the consolidated statements of operations. The carrying amount of the contracts for asset and liability derivatives not designated as hedging instruments was $2.6 million classified in other assets and $0.1 million in other liabilities and $3.1 million classified in other assets and $0.1 million in other liabilities on the December 31, 2013 and 2012 consolidated balance sheets, respectively. | |||||||||||
The activity in “accumulated other comprehensive income (loss)” related to foreign currency forward exchange contracts for the years ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Unrealized gains (losses) at beginning of period | $ | 2.4 | $ | (4.5 | ) | $ | (0.2 | ) | |||
(Losses) gains reclassified to net sales | (0.3 | ) | 2.4 | (2.2 | ) | ||||||
Increase (decrease) in fair value, net of tax of $2.8 million, $1.9 million and ($0.8) million in 2013, 2012 and 2011 respectively | 5.1 | 4.5 | (2.1 | ) | |||||||
Unrealized gains (losses) at end of period | $ | 7.2 | $ | 2.4 | $ | (4.5 | ) | ||||
Unrealized gains of $4.8 million recorded in “accumulated other comprehensive income,” net of tax of $2.3 million, as of December 31, 2013 are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded. The impact of credit risk adjustments was immaterial for the three years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
Note 13 — Commitments and Contingencies | |||||||||||
We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment, health and safety matters. We estimate and accrue our liabilities resulting from such matters based on a variety of factors, including the stage of the proceeding; potential settlement value; assessments by internal and external counsel; and assessments by environmental engineers and consultants of potential environmental liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years. | |||||||||||
While it is impossible to ascertain the ultimate legal and financial liability with respect to certain contingent liabilities and claims, we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that the individual and aggregate liabilities resulting from the ultimate resolution of these contingent matters, after taking into consideration our existing insurance coverage and amounts already provided for, will not have a material adverse impact on our consolidated results of operations, financial position or cash flows. | |||||||||||
Environmental Matters | |||||||||||
We are subject to various U.S. and international federal, state and local environmental, and health and safety laws and regulations. We are also subject to liabilities arising under the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, and similar state and international laws and regulations that impose responsibility for the control, remediation and abatement of air, water and soil pollutants and the manufacturing, storage, handling and disposal of hazardous substances and waste. | |||||||||||
We have been named as a potentially responsible party (“PRP”) with respect to several hazardous waste disposal sites that we do not own or possess, which are included on, or proposed to be included on, the Superfund National Priority List of the U.S. Environmental Protection Agency (“EPA”) or on equivalent lists of various state governments. Because CERCLA allows for joint and several liability in certain circumstances, we could be responsible for all remediation costs at such sites, even if we are one of many PRPs. We believe, based on the amount and nature of our waste, and the number of other financially viable PRPs, that our liability in connection with such matters will not be material. | |||||||||||
Lodi, New Jersey Site | |||||||||||
Pursuant to the New Jersey Industrial Site Recovery Act, Hexcel entered into an Administrative Consent Order for the environmental remediation of a manufacturing facility we own and formerly operated in Lodi, New Jersey. We have been remediating this site in accordance with a State approved plan and continue to do so under the New Jersey Licensed Site Remediation Professional program. Hexcel has completed the primary remediation activities and we are in the process of conducting testing to support a monitored natural attenuation (MNA) program. The accrual is $1.7 million at December 31, 2013. | |||||||||||
Lower Passaic River Study Area | |||||||||||
In October 2003, we received, along with 66 other entities, a directive from the New Jersey Department of Environmental Protection (“NJDEP”) that requires the entities to assess whether operations at various New Jersey sites, including our former manufacturing site in Lodi, New Jersey, caused damage to natural resources in the Lower Passaic River watershed. The NJDEP later dismissed us from the Directive. In February 2004, 42 entities including Hexcel, received a general notice letter from the EPA which requested that the entities consider helping to finance an estimated $10 million towards an EPA study of environmental conditions in the Lower Passaic River watershed. In May 2005, we voluntarily signed into an agreement with the EPA to participate (bringing the total number of participating entities to 43) in financing such a study up to $10 million, in the aggregate. Since May 2005, a number of additional PRPs have joined into the agreement with the EPA. In October 2005, we along with the other EPA notice recipients were advised by the EPA that the notice recipients’ share of the costs of the EPA study was expected to significantly exceed the earlier EPA estimate. While we and the other recipients were not obligated by our agreement to share in such excess, a Group of notice recipients (73 companies including Hexcel) negotiated an agreement with the EPA to assume responsibility for the study pursuant to an Administrative Order on Consent. We believe we have viable defenses to the EPA claims and expect that other as yet unnamed parties will also receive notices from the EPA. In June 2007, the EPA issued a draft Focused Feasibility Study (“FFS”) that considers interim remedial options for the lower eight miles of the river, in addition to a “no action” option. The estimated costs for the six options ranged from $900 million to $2.3 billion. The PRP Group provided comments to the EPA on the FFS; the EPA has not yet taken further action. The Administrative Order on Consent regarding the study does not cover work contemplated by the FFS. In June 2012, without admitting liability, we along with 69 other PRPs entered into a further agreement with EPA to remove and cap contaminated sediments near River Mile 10.9 of the Lower Passaic River at an approximate cost of $20 million. We accrued $0.5 million in the second quarter of 2012 for our expected allocation of these costs. Work at River Mile 10.9 is ongoing. Furthermore, the Federal Trustee for natural resources has indicated their intent to perform a natural resources damage assessment on the river and invited the PRPs to participate in the development and performance of this assessment. The PRP Group, including Hexcel, has not agreed to participate in the assessment at this time. Our ultimate liability for investigatory costs, remedial costs and/or natural resource damages in connection with the Lower Passaic River cannot be determined at this time. | |||||||||||
On February 4, 2009, Tierra Solutions (“Tierra”) and Maxus Energy Corporation (“Maxus”) filed a third party complaint in New Jersey Superior Court against us and over 300 other entities in an action brought against Tierra and Maxus (and other entities) by the State of New Jersey. New Jersey’s suit against Tierra and Maxus relates to alleged discharges of contaminants by Tierra and Maxus to the Passaic River and seeks payment of all past and future costs the State has and will incur regarding cleanup and removal of contaminants, investigation of the Passaic River and related water bodies, assessment of natural resource injuries and other specified injuries. The third party complaint seeks contribution from us for all or part of the damages that Tierra and Maxus may owe to the State. At a case management conference held in March 2013, the Court announced that most third-party defendants had reached a tentative settlement with the State of New Jersey which, if approved by the Court, would end the state court litigation as to participating third-party defendants. We committed to join the settlement and if the settlement is approved by the Court, we would pay New Jersey $0.3 million. This amount was accrued in the first quarter of 2013. In December 2013, the Court entered the settlement and entered an order dismissing participating third-party defendants from the litigation. We have paid our settlement amount into escrow pending any appeal of the Court’s orders. The scope of Hexcel’s continued involvement in the litigation depends on whether the settlement becomes final and no longer subject to appeal. | |||||||||||
Kent, Washington Site | |||||||||||
We were party to a cost-sharing agreement regarding the operation of certain environmental remediation systems necessary to satisfy a post-closure care permit issued to a previous owner of our Kent, Washington site by the EPA. Under the terms of the cost-sharing agreement, we were obligated to reimburse the previous owner for a portion of the cost of the required remediation activities. The previous owner, who also continues to own an adjacent site, has installed certain remediation and isolation technologies and is operating those in accordance with an order agreed with the State of Washington. This isolation is expected to ultimately prevent further migration of contaminants to our site and enable us to perform a cleanup of our site. We and the Washington Department of Ecology have reached an agreed order to perform certain cleanup activities on our site by certain deadlines, and we are in full compliance with the order as modified. The total accrued liability related to this matter was $0.8 million at December 31, 2013. | |||||||||||
Omega Chemical Corporation Superfund Site, Whittier, CA | |||||||||||
We are a potentially responsible party at a former chemical waste site in Whittier, CA. The PRPs at Omega have established a PRP Group, the “Omega PRP Group”, and are currently investigating and remediating soil and groundwater at the site pursuant to a Consent Decree with the EPA. The Omega PRP Group has attributed approximately 1.07% of the waste tonnage sent to the site to Hexcel. In addition to the Omega site specifically, the EPA is investigating the scope of regional groundwater contamination in the vicinity of the Omega site and issued a Record of Decision; the Omega PRP Group members have been noticed by the EPA as PRP’s who will be required to be involved in the remediation of the regional groundwater contamination in that vicinity as well. As a member of the Omega PRP group, Hexcel will incur costs associated with the investigation and remediation of the Omega site and the regional groundwater remedy, although our ultimate liability, if any, in connection with this matter cannot be determined at this time, we have accrued $0.6 million relating to potential liability for both the Omega site and regional groundwater remedies. | |||||||||||
Environmental remediation reserve activity for the three years ended December 31, 2013 was as follows: | |||||||||||
For the year ended December 31, | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Beginning remediation accrual balance | $ | 6.6 | $ | 5 | $ | 7.3 | |||||
Current period expenses | 0.9 | 5 | 3.4 | ||||||||
Cash expenditures | (3.6 | ) | (3.4 | ) | (5.7 | ) | |||||
Ending remediation accrual balance | $ | 3.9 | $ | 6.6 | $ | 5 | |||||
Capital expenditures for environmental matters | $ | 4.6 | $ | 2.4 | $ | 4.1 | |||||
Environmental Summary | |||||||||||
Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lodi, New Jersey; Kent, Washington; and other sites are accrued in the consolidated balance sheets. As of December 31, 2013 and 2012, our aggregate environmental related accruals were $3.9 million and $6.6 million, respectively. As of December 31, 2013 and 2012, $3.4 million and $4.2 million, respectively, were included in current other accrued liabilities, with the remainder included in other non-current liabilities. As related to certain environmental matters, except for the Lodi site, the accruals were estimated at the low end of a range of possible outcomes since no amount within the range is a better estimate than any other amount. If we had accrued, for those sites where we are able to estimate our liability, at the high end of the range of possible outcomes, our accrual would have been $6.5 million and $9.2 million at December 31, 2013 and 2012, respectively. | |||||||||||
These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter. | |||||||||||
Environmental remediation spending charged directly to our reserve balance was $3.6 million and $3.4 million for the years ended December 31, 2013 and 2012, respectively. In addition, our operating costs relating to environmental compliance charged directly to expense were $13.5 million and $13.1 million for the years ended December 31, 2013 and 2012. | |||||||||||
Product Warranty | |||||||||||
Warranty expense for the years ended December 31, 2013, 2012 and 2011, and accrued warranty cost, included in “other accrued liabilities” in the consolidated balance sheets were as follows: | |||||||||||
(In millions) | Product | ||||||||||
Warranties | |||||||||||
Balance as of December 31, 2010 | $ | 4.3 | |||||||||
Warranty expense | 2 | ||||||||||
Deductions and other | (0.6 | ) | |||||||||
Balance as of December 31, 2011 | $ | 5.7 | |||||||||
Warranty expense | 2.2 | ||||||||||
Deductions and other | (2.8 | ) | |||||||||
Balance as of December 31, 2012 | $ | 5.1 | |||||||||
Warranty expense | 1.2 | ||||||||||
Deductions and other | (1.8 | ) | |||||||||
Balance as of December 31, 2013 | $ | 4.5 |
Supplemental_Cash_Flow
Supplemental Cash Flow | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow | ' | ||||||||||
Supplemental Cash Flow | ' | ||||||||||
Note 14 — Supplemental Cash Flow | |||||||||||
Supplemental cash flow information, for the years ended December 31, 2013, 2012 and 2011, consisted of the following: | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Cash paid for: | |||||||||||
Interest | $ | 7.6 | $ | 12.6 | $ | 15.5 | |||||
Taxes | $ | 49 | $ | 23.4 | $ | 10.2 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Note 15 — Accumulated Other Comprehensive Loss | ||||||||
Comprehensive income represents net income and other gains and losses affecting stockholders’ equity that are not reflected in the consolidated statements of operations. The components of accumulated other comprehensive income (loss) as of December 31, 2013 and 2012 were as follows: | ||||||||
(In millions) | 2013 | 2012 | ||||||
Currency translation adjustments (a) | $ | 26.7 | $ | 7.1 | ||||
Net unrealized gains on financial instruments, net of tax (b) | 8.2 | 2.2 | ||||||
Pension obligation adjustment, net of tax (c) | (24.2 | ) | (41.2 | ) | ||||
Accumulated other comprehensive income (loss) | $ | 10.7 | $ | (31.9 | ) | |||
(a) | The currency translation adjustments are not currently adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. | |||||||
(b) | Reduced by the tax impact of ($1.8) million and ($0.1) million at December 31, 2013 and 2012, respectively. | |||||||
(c) | Reduced by the tax impact of $11.1 million and $16.0 million at December 31, 2013 and 2012, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
Note 16 — Segment Information | ||||||||||||||
The financial results for our segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our segments based on operating income, and generally account for intersegment sales based on arm’s length prices. We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel’s consolidated results. | ||||||||||||||
In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products. Therefore, for each segment, we have also reported disaggregated sales by end market. | ||||||||||||||
The following table presents financial information on our segments as of December 31, 2013, 2012 and 2011, and for the years then ended. | ||||||||||||||
(In millions) | Composite | Engineered | Corporate & | Total | ||||||||||
Materials | Products | Other | ||||||||||||
Third-Party Sales | ||||||||||||||
2013 | $ | 1,286.90 | $ | 391.3 | $ | — | $ | 1,678.20 | ||||||
2012 | 1,230.90 | 347.3 | — | 1,578.20 | ||||||||||
2011 | 1,074.50 | 317.9 | — | 1,392.40 | ||||||||||
Intersegment sales | ||||||||||||||
2013 | $ | 68 | $ | 1.8 | $ | (69.8 | ) | $ | — | |||||
2012 | 56.8 | 2 | (58.8 | ) | — | |||||||||
2011 | 53.8 | 1.6 | (55.4 | ) | — | |||||||||
Operating income (loss) | ||||||||||||||
2013 | $ | 276.3 | $ | 58.9 | $ | (64.3 | ) | $ | 270.9 | |||||
2012 | 257.3 | 50.6 | (59.1 | ) | 248.8 | |||||||||
2011 | 194.5 | 51.6 | (54.1 | ) | 192 | |||||||||
Depreciation | ||||||||||||||
2013 | $ | 54.4 | $ | 4.7 | $ | 0.2 | $ | 59.3 | ||||||
2012 | 52.6 | 4.5 | 0.1 | 57.2 | ||||||||||
2011 | 50.8 | 4.3 | 0.2 | 55.3 | ||||||||||
Equity in earnings from affiliated companies | ||||||||||||||
2013 | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||
2012 | — | 0.7 | — | 0.7 | ||||||||||
2011 | — | 1.6 | — | 1.6 | ||||||||||
Other (income) expense, net | ||||||||||||||
2012 | (14.5 | ) | — | 5 | (9.5 | ) | ||||||||
2011 | (5.7 | ) | — | 2.7 | (3.0 | ) | ||||||||
Segment assets | ||||||||||||||
2013 | $ | 1,479.20 | $ | 244 | $ | 112.9 | $ | 1,836.10 | ||||||
2012 | 1,295.40 | 215.2 | 92.5 | 1,603.10 | ||||||||||
2011 | 1,076.00 | 192.3 | 107.8 | 1,376.10 | ||||||||||
Investments in affiliated companies | ||||||||||||||
2013 | $ | — | $ | 23.3 | $ | — | $ | 23.3 | ||||||
2012 | — | 22.6 | — | 22.6 | ||||||||||
2011 | — | 21.7 | — | 21.7 | ||||||||||
Accrual basis additions to property, plant and equipment | ||||||||||||||
2013 | $ | 194.6 | $ | 11.9 | $ | — | $ | 206.5 | ||||||
2012 | 228.6 | 12.5 | 0.2 | 241.3 | ||||||||||
2011 | 176.6 | 6.9 | 1 | 184.5 | ||||||||||
Geographic Data | ||||||||||||||
Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||
Net sales by Geography (a): | ||||||||||||||
United States | $ | 871 | $ | 801.4 | $ | 721.5 | ||||||||
International | ||||||||||||||
France | 321.1 | 302.9 | 257.6 | |||||||||||
Spain | 164.8 | 150.6 | 142.6 | |||||||||||
United Kingdom | 110.9 | 114.7 | 102.1 | |||||||||||
Austria | 96.2 | 105 | 95.5 | |||||||||||
Other | 114.2 | 103.6 | 73.1 | |||||||||||
Total international | 807.2 | 776.8 | 670.9 | |||||||||||
Total consolidated net sales | $ | 1,678.20 | $ | 1,578.20 | $ | 1,392.40 | ||||||||
Net Sales to External Customers (b): | ||||||||||||||
United States | $ | 765.2 | $ | 719.4 | $ | 615.7 | ||||||||
International | ||||||||||||||
France | 146.1 | 144.4 | 132.3 | |||||||||||
Germany | 135.2 | 128.2 | 87.7 | |||||||||||
Spain | 154.7 | 123.9 | 120.8 | |||||||||||
United Kingdom | 81.4 | 82.2 | 80.2 | |||||||||||
Other | 395.6 | 380.1 | 355.7 | |||||||||||
Total international | 913 | 858.8 | 776.7 | |||||||||||
Total | $ | 1,678.20 | $ | 1,578.20 | $ | 1,392.40 | ||||||||
Long-lived assets (c): | ||||||||||||||
United States | $ | 854.6 | $ | 733.5 | $ | 568.2 | ||||||||
International | ||||||||||||||
United Kingdom | 92.6 | 83.8 | 68.4 | |||||||||||
Spain | 73.2 | 68.2 | 60.5 | |||||||||||
France | 55.8 | 37.9 | 36 | |||||||||||
Other | 75.5 | 48.8 | 46.4 | |||||||||||
Total international | 297.1 | 238.7 | 211.3 | |||||||||||
Total consolidated long-lived assets | $ | 1,151.70 | $ | 972.2 | $ | 779.5 | ||||||||
(a) Net sales by geography based on the location in which the product sold was manufactured. | ||||||||||||||
(b) Net sales to external customers based on the location to which the product sold was delivered. | ||||||||||||||
(c) Long-lived assets primarily consist of property, plant and equipment, net and goodwill. | ||||||||||||||
Significant Customers and Suppliers | ||||||||||||||
Boeing and its subcontractors accounted for approximately 34%, 29% and 30% of 2013, 2012 and 2011 net sales, respectively. Similarly, Airbus Group, including Airbus and its subcontractors, accounted for approximately 29%, 28% and 27% of 2013, 2012 and 2011 net sales, respectively. In the Composite Materials segment approximately 24%, 19% and 20% of sales for 2013, 2012 and 2011, respectively, were to Boeing and its subcontractors. Approximately 35%, 34% and 33% of sales for 2013, 2012 and 2011, respectively were to Airbus Group and its subcontractors. In the Engineered Products segment approximately 68%, 66% and 64% of sales for 2013, 2012 and 2011, respectively were to Boeing and its subcontractors. | ||||||||||||||
A significant decline in business with Boeing or Airbus Group could materially impact our business, operating results, prospects and financial condition. | ||||||||||||||
Certain key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances materially impact our consolidated results of operations. |
Other_Income_net
Other Income, net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income, net | ' | |||||||
Other Income, net | ' | |||||||
Note 17 — Other Income, net | ||||||||
Other income, net for the two years ended December 31, 2012, consisted of the following: | ||||||||
(In millions) | 2012 | 2011 | ||||||
Business interruption insurance settlement | $ | (9.6 | ) | $ | — | |||
Gain on sale of land | (4.9 | ) | — | |||||
Pension curtailment gain | — | (5.7 | ) | |||||
Environmental expense | 5 | 2.7 | ||||||
Other income, net | $ | (9.5 | ) | $ | (3.0 | ) | ||
In 2012, the company settled a business interruption insurance claim resulting from tornado damage in 2011 and recorded operating income of $9.6 million. Also in 2012, the Company recorded a pre-tax gain of $4.9 million on the sale of land from a previously closed manufacturing facility and $5.0 million of charges primarily for additional remediation of a manufacturing facility sold in 1986. | ||||||||
Effective January 31, 2011, credited service for the participants in our U.K. plan was frozen. This resulted in recognizing $5.7 million of prior unrecognized service credits as a curtailment gain and also reduced the projected plan obligation by $1.6 million. Also in 2011, the Company recorded an additional $2.7 million in expense for additional environmental reserves primarily to remediate our former Lodi, New Jersey manufacturing facility that was sold in 1986 as further discussed in Note 13 to the consolidated financial statements. |
Nonoperating_Expense
Non-operating Expense | 12 Months Ended |
Dec. 31, 2013 | |
Non-operating Expense | ' |
Non-operating Expense | ' |
Note 18 — Non-operating Expense | |
In June 2013, the Company entered into a new $600 million senior secured revolving credit facility that will mature in five years. The new facility replaces the Company’s previous senior secured credit facility ($82.5 million term loan and a $360 million revolving loan) that would have expired in July 2015. As a result of the refinancing, we accelerated certain unamortized financing costs of the credit facility being replaced and the deferred expense on related interest rate swaps incurring a pretax charge of $1.0 million in the second quarter of 2013. | |
In June 2012 and February 2011, we redeemed $73.5 million and $150 million of our 6.75% senior subordinated notes at a call premium of 1.125% and 2.25%, respectively. As a result of the redemption, we accelerated the unamortized financing costs of the senior subordinated notes redeemed and expensed the call premium incurring a pretax charge of $1.1 million and $4.9 million, in 2012 and 2011, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Measurements | ' |
Fair Value Measurements | ' |
Note 19 — Fair Value Measurements | |
The fair values of our financial instruments are classified into one of the following categories: | |
· Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
· Level 2: Observable inputs other than quoted prices in active markets, but corroborated by market data. | |
· Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |
In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk. At December 31, 2013 and 2012, we did not have any assets or liabilities that utilize Level 3 inputs. | |
For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs, and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset position, and the credit standing of Hexcel when the derivative is in a net liability position). The fair value of these assets and liabilities was approximately $14.0 million and $1.3 million, and approximately $6.6 million and $2.7 million respectively at December 31, 2013 and 2012. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the consolidated balance sheet. | |
Below is a summary of valuation techniques for all Level 2 financial assets and liabilities: | |
· Interest rate swap — valued using LIBOR yield curves at the reporting date. Fair value was a liability of $0.6 million at December 31, 2013. | |
· Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date. Fair value of assets and liabilities at December 31, 2013 was $14.0 million and $0.7 million, respectively. | |
Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in 2013 that would reduce the receivable amount owed, if any, to the Company. |
Quarterly_Financial_and_Market
Quarterly Financial and Market Data (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial and Market Data (Unaudited) | ' | |||||||||||||
Quarterly Financial and Market Data (Unaudited) | ' | |||||||||||||
Note 20 - Quarterly Financial and Market Data (Unaudited) | ||||||||||||||
Quarterly financial and market data for the years ended December 31, 2013 and 2012 were: | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(In millions) | Quarter | Quarter | Quarter | Quarter | ||||||||||
2013 | ||||||||||||||
Net sales | $ | 416.5 | $ | 422.6 | $ | 412.3 | $ | 426.8 | ||||||
Gross margin | 112 | 116.8 | 112.1 | 113.1 | ||||||||||
Operating income | 63 | 71.9 | 69 | 67 | ||||||||||
Net income | 43.6 | 48.5 | 48.7 | 47.1 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.43 | $ | 0.49 | $ | 0.49 | $ | 0.47 | ||||||
Diluted | $ | 0.43 | $ | 0.48 | $ | 0.48 | $ | 0.46 | ||||||
Market price: | ||||||||||||||
High | $ | 30.23 | $ | 35.46 | $ | 39.67 | $ | 44.69 | ||||||
Low | $ | 26.5 | $ | 27.64 | $ | 33.88 | $ | 38.09 | ||||||
2012 | ||||||||||||||
Net sales | $ | 400.1 | $ | 399.2 | $ | 391.6 | $ | 387.3 | ||||||
Gross margin | 106.4 | 105.5 | 99.2 | 95.6 | ||||||||||
Other income, net | — | (9.5 | ) | — | — | |||||||||
Operating income | 60.6 | 73.9 | 60 | 54.3 | ||||||||||
Net income | 39.6 | 48 | 39.8 | 36.9 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.4 | $ | 0.48 | $ | 0.4 | $ | 0.37 | ||||||
Diluted | $ | 0.39 | $ | 0.47 | $ | 0.39 | $ | 0.36 | ||||||
Market price: | ||||||||||||||
High | $ | 26.71 | $ | 27.8 | $ | 26.49 | $ | 27.29 | ||||||
Low | $ | 23.42 | $ | 23.05 | $ | 22.53 | $ | 23.55 |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | |||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | |||||||||||||
Hexcel Corporation and Subsidiaries | ||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||
(In millions) | Balance at | Charged to | Deductions | Balance | ||||||||||
beginning | expense/(recovery) | and other | at end of | |||||||||||
of year | year | |||||||||||||
Year ended December 31, 2013 | ||||||||||||||
Allowance for doubtful accounts | $ | 1.8 | $ | — | $ | (0.9 | ) | $ | 0.9 | |||||
Valuation allowance for deferred tax assets | 49.4 | 10.5 | 2.4 | 62.3 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||
Allowance for doubtful accounts | $ | 1.2 | $ | 1.1 | $ | (0.5 | ) | $ | 1.8 | |||||
Valuation allowance for deferred tax assets | 39.4 | 9 | 1 | 49.4 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||
Allowance for doubtful accounts | $ | 1.5 | $ | — | $ | (0.3 | ) | $ | 1.2 | |||||
Valuation allowance for deferred tax assets | 36.5 | 10.5 | (7.6 | ) | 39.4 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Hexcel Corporation and its subsidiaries after elimination of all intercompany accounts, transactions and profits. We have a 50% equity ownership investment in an Asian joint venture Aerospace Composites Manufacturing Sdn. Bhd. (“ACM”), formerly known as Asian Composites Manufactoring Sdn. Bhd. In accordance with accounting standards we have determined that this investment is not a variable interest entity and as we do not have the ability to exercise control over financial or operating decisions, this investment is accounted for using the equity method of accounting. | |
Use of Estimates | ' |
Use of Estimates | |
Preparation of the accompanying consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and all highly liquid investments with an original maturity of three months or less when purchased. Our cash equivalents are held in prime money market investments with strong sponsor organizations which are monitored on a continuous basis. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out and average cost methods. Inventory is reported at its estimated net realizable value based upon our historical experience with inventory becoming obsolete due to age, changes in technology and other factors. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment, including capitalized interest applicable to major project expenditures, is recorded at cost. Asset and accumulated depreciation accounts are eliminated for dispositions, with resulting gains or losses reflected in earnings. Depreciation of plant and equipment is provided using the straight-line method over the estimated useful lives of the various assets. The estimated useful lives range from 10 to 40 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Repairs and maintenance are expensed as incurred, while major replacements and betterments are capitalized and depreciated over the remaining useful life of the related asset. | |
In 2012, we reassessed the estimated useful lives of certain machinery and equipment. We increased the useful lives of this machinery and equipment from 20 years to 25 years, and increased the useful lives of other certain machinery and equipment from 10 - 12 years to 20 years. We determined that this adjustment to the useful lives of certain assets was a change in accounting estimate and we accounted for the change prospectively; i.e. the accounting change impacts the three months ended December 31, 2012 and future periods. See Note 3. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the reporting unit level annually, or when events or changes in circumstances indicate that goodwill might be impaired. The Company’s annual test for goodwill impairment was performed in the fourth quarter. The Company performed a qualitative assessment and determined that it was more likely than not that the fair values of our reporting units were not less than their carrying values and it was not necessary to perform the currently prescribed two-step goodwill impairment test. | |
We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. The Company has indefinite-lived intangible assets, consisting of purchased emissions credits. These indefinite lived intangibles are tested annually for impairment as of November 30th, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of the indefinite lived intangible exceeds the fair value, the intangible asset is written down to its fair value. Fair value is calculated using discounted cash flows. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company reviews long-lived assets, including property, plant and equipment and identifiable intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. These indicators include: a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which a long-lived asset is used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount expected for the acquisition or construction of a long-lived asset, a current period operating or cash flow loss combined with a history of losses associated with a long-lived asset and a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated life. | |
Software Development Costs | ' |
Software Development Costs | |
Costs incurred to develop software for internal-use are accounted for under Statement of Position 98-1, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.” All costs relating to the preliminary project stage and the post-implementation/operation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the useful life of the software. The amortization of capitalized costs commences when functionality of the computer software is achieved. | |
Investments | ' |
Investments | |
We have a 50% equity ownership investment in an Asian joint venture Aerospace Composites Manufacturing Sdn. Bhd., formerly Asian Composites Manufacturing Sdn. Bhd. In accordance with ASC 810 we have determined that this investment is not a variable interest entity. As such, we account for our share of the earnings of this affiliated company using the equity method of accounting. The Company continues to evaluate to make certain that the facts and circumstances associated with this investment have not changed with respect to accounting for a variable interest entity. | |
Debt Financing Costs | ' |
Debt Financing Costs | |
Debt financing costs are deferred and amortized to interest expense over the life of the related debt. At December 31, 2013 and 2012, deferred debt financing costs, net of accumulated amortization, were $5.0 million and $4.6 million. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
The fair value of Restricted Stock Units (RSU’s) is equal to the market price of our stock at date of grant and is amortized to expense ratably over the vesting period. Performance restricted stock units (“PRSUs”) are a form of RSUs in which the number of shares ultimately received depends on the extent to which we achieve a specified performance target. The fair value of the PRSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized straight-line over the total vesting period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. We use the Black-Scholes model to value compensation expense for all option-based payment awards made to employees and directors based on estimated fair values on the grant date. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our consolidated statements of operations. The value of RSU’s, PRSU’s and Non-qualifying options awards for retirement eligible employees is expensed on the grant date as they are fully vested. | |
Currency Translation | ' |
Currency Translation | |
The assets and liabilities of international subsidiaries are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at average exchange rates during the year. Cumulative currency translation adjustments are included in “accumulated other comprehensive income (loss)” in the stockholders’ equity section of the consolidated balance sheets. Gains and losses from foreign currency transactions are not material. | |
Revenue Recognition | ' |
Revenue Recognition | |
Our revenue is predominately derived from sales of inventory, and is recognized when persuasive evidence of an arrangement exists, title and risk of loss passes to the customer, the sales price is fixed or determinable and collectability is reasonably assured. However, from time to time we enter into contractual arrangements for which other specific revenue recognition guidance is applied. | |
Recognition of revenue on bill and hold arrangements occurs only when risk of ownership has passed to the buyer, a fixed written commitment has been provided by the buyer, the goods are complete and ready for shipment, the goods are segregated from inventory, no performance obligations remain and a schedule for delivery of goods has been established. Revenues derived from design and installation services are recognized when the service is provided. Revenues derived from long-term construction-type contracts are accounted for using the percentage-of-completion method, and progress is measured on a cost-to-cost basis. If at any time expected costs exceed the value of the contract, the loss is recognized immediately. | |
Product Warranty | ' |
Product Warranty | |
We provide for an estimated amount of product warranty at the point a claim is probable and estimable. This estimated amount is provided by product and based on current facts, circumstances and historical warranty experience. Warranty expense was $1.2 million, $2.2 million and $2.0 million for the years ended December 31, 2013, 2012 and 2011 respectively. | |
Research and Technology | ' |
Research and Technology | |
Significant costs are incurred each year in connection with research and technology (“R&T”) programs that are expected to contribute to future earnings. Such costs are related to the development and, in certain instances, the qualification and certification of new and improved products and their uses. R&T costs are expensed as incurred. | |
Income Taxes | ' |
Income Taxes | |
We provide for income taxes using the liability approach. Under the liability approach, deferred income tax assets and liabilities reflect tax net operating loss and credit carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets require a valuation allowance when it is more likely than not, based on the evaluation of positive and negative evidence, that some portion of the deferred tax assets may not be realized. The realization of deferred tax assets is dependent upon the timing and magnitude of future taxable income prior to the expiration of the deferred tax assets’ attributes. When events and circumstances so dictate, we evaluate the realizability of our deferred tax assets and the need for a valuation allowance by forecasting future taxable income. Investment tax credits are recorded on a flow-through basis, which reflects the credit in net income as a reduction of the provision for income taxes in the same period as the credit is realized for federal income tax purposes. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Two customers and their related subcontractors accounted for more than half of our annual net sales in 2013, 2012 and 2011. Refer to Note 16 for further information on significant customers. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information. As of December 31, 2013 and 2012, the allowance for doubtful accounts was $0.9 million and $1.8 million, respectively. Bad debt expense was immaterial for all years presented. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
We use various financial instruments, including foreign currency forward exchange contracts and interest rate swap agreements, to manage our exposure to market fluctuations by generating cash flows that offset, in relation to their amount and timing, the cash flows of certain foreign currency denominated transactions or underlying debt instruments. We mark our foreign exchange forward contracts to fair value. The change in the fair value is recorded in current period earnings. When the derivatives qualify, we designate our foreign currency forward exchange contracts as cash flow hedges against forecasted foreign currency denominated transactions and report the effective portions of changes in fair value of the instruments in “accumulated other comprehensive income (loss)” until the underlying hedged transactions affect income. We designate our interest rate swap agreements as fair value or cash flow hedges against specific debt instruments and recognize interest differentials as adjustments to interest expense as the differentials may occur. We do not use financial instruments for trading or speculative purposes. | |
In accordance with accounting guidance, we recognize all derivatives as either assets or liabilities on our balance sheet and measure those instruments at fair value. | |
Self-insurance | ' |
Self-insurance | |
We are self-insured up to specific levels for certain medical and health insurance and workers’ compensation plans. Accruals are established based on actuarial assumptions and historical claim experience, and include estimated amounts for incurred but not reported claims. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
ASU 2011-11 Balance Sheet (Topic 210); Disclosures about Offsetting Assets and Liabilities: In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for annual and interim reporting periods beginning on or after January 1, 2013. The Company has no offsetting agreements and as such, adoption of this guidance did not have any impact on the Company’s reported financial results. | |
ASU 2013-02 Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income: In February 2013 the Financial Accounting Standards Board issued Accounting Standards Update 2013-02. The Company adopted this update in the first quarter of 2013. The amounts reclassified out of accumulated other comprehensive income during 2013 were not material. | |
ASU 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic 740): In July 2013, the FASB issued ASU No. 2013-11, which requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward on a jurisdictional basis. ASU 2013-11 is expected to reduce diversity in practice by providing specific guidance on the presentation of unrecognized tax benefits. ASU 2013-11 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted and the Company has chosen to adopt ASU 2013-11 in the fourth quarter of 2013. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of net inventories | ' | |||||||
December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Raw materials | $ | 103.4 | $ | 95 | ||||
Work in progress | 62.2 | 51.2 | ||||||
Finished goods | 99.7 | 86.6 | ||||||
Total inventories | $ | 265.3 | $ | 232.8 |
Net_Property_Plant_and_Equipme1
Net Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Net Property, Plant and Equipment | ' | |||||||
Schedule of property, plant and equipment | ' | |||||||
December 31, | ||||||||
(In millions) | 2013 | 2012 | ||||||
Land | $ | 50.9 | $ | 41.9 | ||||
Buildings | 396.2 | 298.3 | ||||||
Equipment | 957 | 783.4 | ||||||
Construction in progress | 257.1 | 335.6 | ||||||
Property, plant and equipment | 1,661.20 | 1,459.20 | ||||||
Less accumulated depreciation | (593.8 | ) | (544.8 | ) | ||||
Net property, plant and equipment | $ | 1,067.40 | $ | 914.4 |
Goodwill_and_Purchased_Intangi1
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Purchased Intangible Assets | ' | ||||||||||
Schedule of gross goodwill and other purchased intangible assets | ' | ||||||||||
(In millions) | Composite | Engineered | Total | ||||||||
Materials | Products | ||||||||||
Balance as of December 31, 2011 | $ | 41.3 | $ | 16.1 | $ | 57.4 | |||||
Currency translation adjustments and other | 0.4 | — | 0.4 | ||||||||
Balance as of December 31, 2012 | $ | 41.7 | $ | 16.1 | $ | 57.8 | |||||
Additions | 3 | — | 3 | ||||||||
Amortization expense | (0.1 | ) | — | (0.1 | ) | ||||||
Currency translation adjustments and other | 0.4 | — | 0.4 | ||||||||
Balance as of December 31, 2013 | $ | 45 | $ | 16.1 | $ | 61.1 |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Schedule of debt and capital lease obligations | ' | |||||||
(In millions) | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Foreign operation’s working capital line of credit | $ | 3 | $ | 4.8 | ||||
Current maturities of capital lease and other obligations | — | 1.8 | ||||||
Current maturities of term loan | — | 10 | ||||||
Short-term borrowings and current maturities of long-term debt | 3 | 16.6 | ||||||
Senior secured credit facility —revolving loan due 2018 | 292 | — | ||||||
Senior secured credit facility —term loan due 2015 | — | 75 | ||||||
Senior secured credit facility — revolving loan due 2015 | — | 165 | ||||||
Long-term debt | 292 | 240 | ||||||
Total debt | $ | 295 | $ | 256.6 | ||||
Schedule of the aggregate scheduled maturities of debt | ' | |||||||
Payable during the years ending December 31: | (In millions) | |||||||
2014 | $ | 3 | ||||||
2015 | — | |||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 292 | |||||||
Total debt | $ | 295 |
Leasing_Arrangements_Tables
Leasing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Leasing Arrangements | ' | |||||||
Schedule of related assets, accumulated depreciation and related liability balances under capital leasing arrangements | ' | |||||||
(In millions) | 2012 | 2011 | ||||||
Property, plant and equipment | $ | 3.7 | $ | 3.7 | ||||
Less accumulated depreciation | (1.6 | ) | (1.6 | ) | ||||
Net property, plant and equipment | $ | 2.1 | $ | 2.1 | ||||
Capital lease obligations | $ | 1.8 | $ | 2 | ||||
Less current maturities | (1.8 | ) | (0.2 | ) | ||||
Long-term capital lease obligations, net | $ | — | $ | 1.8 | ||||
Schedule of future minimum lease payments | ' | |||||||
(In millions) | ||||||||
Payable during the years ending December 31: | Operating Leases | |||||||
2014 | 9.1 | |||||||
2015 | 5.3 | |||||||
2016 | 4.1 | |||||||
2017 | 2.2 | |||||||
2018 | 1.8 | |||||||
Thereafter | 9.3 | |||||||
Total minimum lease payments | $ | 31.8 |
Retirement_and_Other_Postretir1
Retirement and Other Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Retirement and Other Postretirement Benefit Plans | ' | |||||||||||||||||||
Schedule of net periodic pension expenses | ' | |||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||
Defined benefit retirement plans | $ | 7.3 | $ | 5.4 | $ | (0.3 | ) | |||||||||||||
Union sponsored multi-employer pension plan | 1.6 | 1.2 | 0.9 | |||||||||||||||||
Retirement savings plans-matching contributions | 3 | 3.3 | 2.9 | |||||||||||||||||
Retirement savings plans-profit sharing contributions | 6.7 | 7.6 | 8 | |||||||||||||||||
Net periodic expense | $ | 18.6 | $ | 17.5 | $ | 11.5 | ||||||||||||||
Schedule of net periodic cost of defined benefit retirement and postretirement plans | ' | |||||||||||||||||||
(In millions) | U.S. Plans | European Plans | ||||||||||||||||||
Defined Benefit Retirement Plans | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||
Service cost | $ | 1.7 | $ | 1.3 | $ | 1.5 | $ | 0.7 | $ | 0.5 | $ | 1.1 | ||||||||
Interest cost | 0.8 | 1.1 | 1.1 | 6.9 | 6.6 | 7.2 | ||||||||||||||
Expected return on plan assets | — | — | — | (8.0 | ) | (7.3 | ) | (7.8 | ) | |||||||||||
Net amortization | 4 | 2.3 | 1.6 | 1.2 | 0.9 | 0.7 | ||||||||||||||
Curtailment gain | — | — | — | — | — | (5.7 | ) | |||||||||||||
Net periodic pension cost (income) | $ | 6.5 | $ | 4.7 | $ | 4.2 | $ | 0.8 | $ | 0.7 | $ | (4.5 | ) | |||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||
U.S. Postretirement Plans | ||||||||||||||||||||
Interest cost | 0.2 | 0.3 | 0.4 | |||||||||||||||||
Net amortization and deferral | (0.4 | ) | (0.5 | ) | (0.3 | ) | ||||||||||||||
Net periodic postretirement benefit (income) cost | $ | (0.2 | ) | $ | (0.2 | ) | $ | 0.1 | ||||||||||||
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | ' | |||||||||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||
U.S. Plans | European Plans | Postretirement Plans | ||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||
Net loss (gain) | $ | 1 | $ | 3.1 | $ | (16.5 | ) | $ | 12.1 | $ | (1.6 | ) | $ | 0.1 | ||||||
Amortization of actuarial losses | (3.9 | ) | (2.2 | ) | (1.3 | ) | (0.9 | ) | 0.4 | 0.5 | ||||||||||
Amortization of prior service credit (cost) | (0.1 | ) | (0.1 | ) | — | — | — | — | ||||||||||||
Effect of foreign exchange | — | — | 0.2 | 1.9 | — | — | ||||||||||||||
Total recognized in other comprehensive income (pre-tax) | $ | (3.0 | ) | $ | 0.8 | $ | (17.6 | ) | $ | 13.1 | $ | (1.2 | ) | $ | 0.6 | |||||
Schedule of benefit obligation, fair value of plan assets, funded status and amounts recognized in the consolidated financial statements | ' | |||||||||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||
U.S. Plans | European Plans | Postretirement Plans | ||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||
Benefit obligation - beginning of year | $ | 38.6 | $ | 33.4 | $ | 164.8 | $ | 139.8 | $ | 8.1 | $ | 8 | ||||||||
Service cost | 1.7 | 1.3 | 0.7 | 0.5 | — | — | ||||||||||||||
Interest cost | 0.8 | 1.1 | 6.8 | 6.6 | 0.2 | 0.3 | ||||||||||||||
Plan participants’ contributions | — | — | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||
Actuarial loss (gain) | 1.1 | 3.1 | (8.3 | ) | 15.2 | (1.6 | ) | 0.1 | ||||||||||||
Benefits and expenses paid | (0.3 | ) | (0.3 | ) | (4.9 | ) | (3.7 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Currency translation adjustments | — | — | 3.5 | 6.3 | — | — | ||||||||||||||
Benefit obligation - end of year | $ | 41.9 | $ | 38.6 | $ | 162.7 | $ | 164.8 | $ | 6.4 | $ | 8.1 | ||||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets - beginning of year | $ | — | $ | — | $ | 128.3 | $ | 110.8 | $ | — | $ | — | ||||||||
Actual return on plan assets | — | — | 16.2 | 10.3 | — | — | ||||||||||||||
Employer contributions | 0.3 | 0.3 | 5.9 | 5.7 | 0.3 | 0.3 | ||||||||||||||
Plan participants’ contributions | — | — | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||
Benefits and expenses paid | (0.3 | ) | (0.3 | ) | (4.9 | ) | (3.7 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Currency translation adjustments | — | — | 3.7 | 5.1 | — | — | ||||||||||||||
Fair value of plan assets - end of year | $ | — | $ | — | $ | 149.3 | $ | 128.3 | $ | — | $ | — | ||||||||
Amounts recognized in Consolidated Balance Sheets: | ||||||||||||||||||||
Noncurrent Assets | $ | — | $ | — | $ | 2.7 | $ | — | $ | — | $ | — | ||||||||
Current liabilities | $ | 23.8 | $ | 0.3 | $ | 0.4 | $ | 0.4 | $ | 0.6 | $ | 0.6 | ||||||||
Non-current liabilities | 18.1 | 38.3 | 15.7 | 36.1 | 5.8 | 7.5 | ||||||||||||||
Total Liabilities | $ | 41.9 | $ | 38.6 | $ | 16.1 | $ | 36.5 | $ | 6.4 | $ | 8.1 | ||||||||
Amounts recognized in Accumulated Other Comprehensive Income: | ||||||||||||||||||||
Actuarial net (loss) gain | $ | (7.3 | ) | $ | (10.2 | ) | $ | (32.2 | ) | $ | (49.7 | ) | $ | 4.3 | $ | 3.1 | ||||
Prior service cost | (0.1 | ) | (0.2 | ) | (0.1 | ) | (0.1 | ) | — | — | ||||||||||
Total amounts recognized in accumulated other comprehensive (loss) income | $ | (7.4 | ) | $ | (10.4 | ) | $ | (32.3 | ) | $ | (49.8 | ) | $ | 4.3 | $ | 3.1 | ||||
Schedule of expected benefit payments for the plan | ' | |||||||||||||||||||
(In millions) | U.S. Plans | European | Postretirement | |||||||||||||||||
Plans | Plans | |||||||||||||||||||
2014 | $ | 23.8 | $ | 3.8 | $ | 0.6 | ||||||||||||||
2015 | 4.5 | 4 | 0.7 | |||||||||||||||||
2016 | 2.2 | 5 | 0.7 | |||||||||||||||||
2017 | 1.1 | 5.7 | 0.6 | |||||||||||||||||
2018 | 1.4 | 6.8 | 0.7 | |||||||||||||||||
2019-2023 | 10.2 | 37.1 | 2.9 | |||||||||||||||||
$ | 43.2 | $ | 62.4 | $ | 6.2 | |||||||||||||||
Schedule of pension assets measured at fair value | ' | |||||||||||||||||||
(In millions) | December | Fair Value Measurements at | ||||||||||||||||||
31, | December 31, 2013 | |||||||||||||||||||
Description | 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Equity funds | $ | 83.3 | $ | — | $ | 83.3 | $ | — | ||||||||||||
Active corporate bond fund | 58.5 | — | 58.5 | — | ||||||||||||||||
Diversified investment funds | 2.9 | — | — | 2.9 | ||||||||||||||||
Insurance contracts | 3.6 | — | — | 3.6 | ||||||||||||||||
Cash and cash equivalents | 1 | — | 1 | — | ||||||||||||||||
Total assets | $ | 149.3 | $ | — | $ | 142.8 | $ | 6.5 | ||||||||||||
December | Fair Value Measurements at | |||||||||||||||||||
31, | December 31, 2012 | |||||||||||||||||||
Description | 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Equity funds | $ | 70 | $ | — | $ | 70 | $ | — | ||||||||||||
Active corporate bond fund | 52.1 | — | 52.1 | — | ||||||||||||||||
Diversified investment funds | 3.1 | — | 0.3 | 2.8 | ||||||||||||||||
Insurance contracts | 3.1 | — | — | 3.1 | ||||||||||||||||
Total assets | $ | 128.3 | $ | — | $ | 122.4 | $ | 5.9 | ||||||||||||
(In millions) | Balance at | Actual | Purchases, | Changes due | Balance at | |||||||||||||||
Reconciliation of Level 3 Assets | January 1, | return on | sales and | to exchange | December 31, | |||||||||||||||
2013 | plan assets | settlements | rates | 2013 | ||||||||||||||||
Diversified investment funds | $ | 2.8 | $ | 0.2 | $ | (0.2 | ) | $ | 0.1 | $ | 2.9 | |||||||||
Insurance contracts | 3.1 | 0.1 | 0.2 | 0.2 | 3.6 | |||||||||||||||
Total level 3 assets | $ | 5.9 | $ | 0.3 | $ | — | $ | 0.3 | $ | 6.5 | ||||||||||
Reconciliation of Level 3 Assets | Balance at | Actual | Purchases, | Changes due | Balance at | |||||||||||||||
January 1, | return on | sales and | to exchange | December 31, | ||||||||||||||||
2012 | plan assets | settlements | rates | 2012 | ||||||||||||||||
Diversified investment funds | $ | 2.5 | $ | 0.2 | $ | 0.1 | $ | — | $ | 2.8 | ||||||||||
Insurance contracts | 2.6 | 0.2 | 0.2 | 0.1 | 3.1 | |||||||||||||||
Total level 3 assets | $ | 5.1 | $ | 0.4 | $ | 0.3 | $ | 0.1 | $ | 5.9 | ||||||||||
Schedule of actual allocations for pension assets and target allocations by asset class | ' | |||||||||||||||||||
Percentage | Target | Percentage | Target | |||||||||||||||||
Of Plan Assets | Allocations | Of Plan Assets | Allocations | |||||||||||||||||
Asset Class | 2013 | 2013 | 2012 | 2012 | ||||||||||||||||
U.K. Equity Fund | 28.1 | % | 30.6 | % | 28 | % | 28.6 | % | ||||||||||||
Overseas Equity Fund | 27.7 | 30.6 | 26.6 | 28.6 | ||||||||||||||||
Active Corporate Bond Funds | 39.2 | 34.5 | 40.6 | 38.2 | ||||||||||||||||
Insurance Contracts | 2.4 | 2.4 | 2.4 | 2.4 | ||||||||||||||||
Diversified Investment Funds | 1.9 | 1.9 | 2.4 | 2.2 | ||||||||||||||||
Cash and cash equivalents | 0.7 | — | — | — | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Schedule of assumptions used to estimate the actuarial present value of benefit obligations | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
U.S. defined benefit retirement plans: | ||||||||||||||||||||
Discount rates | 0.1% - 4.0% | 2.00% | 3.20% | |||||||||||||||||
Rate of increase in compensation | 3.00% | 3.0%-5.8% | 3.00% | |||||||||||||||||
Expected long-term rate of return on plan assets | N/A | N/A | N/A | |||||||||||||||||
European defined benefit retirement plans: | ||||||||||||||||||||
Discount rates | 3.0% - 4.6% | 3.25% - 4.5% | 4.5% - 4.75% | |||||||||||||||||
Rates of increase in compensation | 3.00% | 3.00% | 3.00% | |||||||||||||||||
Expected long-term rates of return on plan assets | 4.0% — 6.5% | 4.0% — 6.5% | 4.25% — 6.5% | |||||||||||||||||
Postretirement benefit plans: | ||||||||||||||||||||
Discount rates | 3.80% | 2.75% | 3.85% | |||||||||||||||||
Schedule of impact of one-percentage-point change in expected long-term rate of return and discount rate on pension expense and retirement obligation | ' | |||||||||||||||||||
Non-Qualified | Retiree | U.K. | ||||||||||||||||||
Medical | Retirement | |||||||||||||||||||
(In millions) | Pension Plans | Plans | Plan | |||||||||||||||||
Periodic pension expense | ||||||||||||||||||||
One-percentage-point increase: | ||||||||||||||||||||
Expected long-term rate of return | $ | N/A | $ | N/A | $ | (1.4 | ) | |||||||||||||
Discount rate | $ | (0.1 | ) | $ | — | $ | (0.2 | ) | ||||||||||||
One-percentage-point decrease: | ||||||||||||||||||||
Expected long-term rate of return | $ | N/A | $ | N/A | $ | 1.4 | ||||||||||||||
Discount rate | $ | 0.3 | $ | — | $ | 0.4 | ||||||||||||||
Retirement obligation | ||||||||||||||||||||
One-percentage-point increase in discount rate | $ | (1.1 | ) | $ | (0.4 | ) | $ | (21.2 | ) | |||||||||||
One-percentage-point decrease in discount rate | $ | 1.2 | $ | 0.4 | $ | 26.8 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of income taxes and provision for income taxes | ' | ||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Income before income taxes: | |||||||||||
U.S. | $ | 149.8 | $ | 137.4 | $ | 106.3 | |||||
International | 112.8 | 100.3 | 69.2 | ||||||||
Total income before income taxes | $ | 262.6 | $ | 237.7 | $ | 175.5 | |||||
Provision for income taxes: | |||||||||||
Current: | |||||||||||
U.S. | $ | 30.5 | $ | 36.9 | $ | 10.6 | |||||
International | 29.2 | 20.7 | 7.6 | ||||||||
Current provision for income taxes | 59.7 | 57.6 | 18.2 | ||||||||
Deferred: | |||||||||||
U.S. | 13.1 | 10.4 | 24.4 | ||||||||
International | 3.2 | 6.1 | (1.0 | ) | |||||||
Deferred provision for income taxes | 16.3 | 16.5 | 23.4 | ||||||||
Total provision for income taxes | $ | 76 | $ | 74.1 | $ | 41.6 | |||||
Schedule of a reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate to the actual income tax provision | ' | ||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Provision for taxes at U.S. federal statutory rate | $ | 91.9 | $ | 83.2 | $ | 61.5 | |||||
State and local taxes, net of federal benefit | 2 | 2.2 | 2.2 | ||||||||
Foreign effective rate differential | (12.5 | ) | (10.3 | ) | (8.4 | ) | |||||
Research and Development tax credits | (2.8 | ) | (0.7 | ) | (2.0 | ) | |||||
Other | (2.6 | ) | 0.5 | (0.2 | ) | ||||||
Tax Settlement | — | 0.2 | (5.5 | ) | |||||||
Change in valuation allowance | — | (1.0 | ) | (6.0 | ) | ||||||
Total provision for income taxes | $ | 76 | $ | 74.1 | $ | 41.6 | |||||
Schedule of deferred income taxes | ' | ||||||||||
(In millions) | 2013 | 2012 | |||||||||
Assets | |||||||||||
Net operating loss carryforwards | $ | 63.6 | $ | 56.2 | |||||||
Unfunded pension liability and other postretirement obligations | 16 | 15.3 | |||||||||
Advanced payments from foreign affiliates | 28.9 | 22.3 | |||||||||
Tax credit carryforwards | 11.2 | 35.4 | |||||||||
Stock based compensation | 14.4 | 12.6 | |||||||||
Other comprehensive income | 6 | 14 | |||||||||
Reserves and other | 18.9 | 14.7 | |||||||||
Subtotal | 159 | 170.5 | |||||||||
Valuation allowance | (62.3 | ) | (49.4 | ) | |||||||
Total assets | $ | 96.7 | $ | 121.1 | |||||||
Liabilities | |||||||||||
Accelerated depreciation | (63.4 | ) | (50.1 | ) | |||||||
Accelerated amortization | (9.2 | ) | (8.2 | ) | |||||||
Other | (0.8 | ) | (0.2 | ) | |||||||
Total liabilities | $ | (73.4 | ) | $ | (58.5 | ) | |||||
Net deferred tax asset | $ | 23.3 | $ | 62.6 | |||||||
Schedule of classification of deferred tax assets and deferred tax liabilities in consolidated balance sheets | ' | ||||||||||
(In millions) | 2013 | 2012 | |||||||||
Current deferred tax assets, net | $ | 63.3 | $ | 62.5 | |||||||
Current deferred tax liability, net | (1.4 | ) | (0.2 | ) | |||||||
Long-term deferred tax assets, net | 10.3 | 15.4 | |||||||||
Long-term deferred tax liability, net | (48.9 | ) | (15.1 | ) | |||||||
Net deferred tax assets | $ | 23.3 | $ | 62.6 | |||||||
Schedule of unrecognized tax benefits | ' | ||||||||||
Unrecognized Tax Benefits | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Balance as of January 1, | $ | 32.6 | $ | 12.5 | $ | 20.1 | |||||
Additions based on tax positions related to the current year | 5.2 | 1.7 | 1.5 | ||||||||
Additions/(reductions) for tax positions of prior years | 5.7 | 19 | (1.1 | ) | |||||||
Decreases relating to settlements with tax authorities | — | — | (6.7 | ) | |||||||
Expiration of the statute of limitations for the assessment of taxes | (1.3 | ) | (0.8 | ) | (1.6 | ) | |||||
Other, including currency translation | 0.5 | 0.2 | 0.3 | ||||||||
Balance as of December 31, | $ | 42.7 | $ | 32.6 | $ | 12.5 |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Capital Stock | ' | |||||||
Schedule of common stock outstanding | ' | |||||||
(Number of shares in millions) | 2013 | 2012 | 2011 | |||||
Common stock: | ||||||||
Balance, beginning of year | 102.4 | 101 | 99.5 | |||||
Activity under stock plans | 1.6 | 1.4 | 1.5 | |||||
Balance, end of year | 104 | 102.4 | 101 | |||||
Treasury stock: | ||||||||
Balance, beginning of year | 2.5 | 2.2 | 2.2 | |||||
Issued under stock plans | — | — | (0.5 | ) | ||||
Repurchased | 2.6 | 0.3 | 0.5 | |||||
Balance, end of year | 5.1 | 2.5 | 2.2 | |||||
Common stock outstanding | 98.9 | 99.9 | 98.8 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Schedule of stock-based compensation expense by type of award | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||||||||
Non-qualified stock options | $ | 3.8 | $ | 4.5 | $ | 4.1 | |||||||||||
Restricted stock, service based (“RSUs”) | 6 | 6.5 | 5 | ||||||||||||||
Restricted stock, performance based (“PRSUs”) | 8.8 | 4.6 | 4.7 | ||||||||||||||
Employee stock purchase plan | 0.3 | 0.2 | 0.1 | ||||||||||||||
Stock-based compensation expense | $ | 18.9 | $ | 15.8 | $ | 13.9 | |||||||||||
Tax benefit from stock options exercised during the period | $ | 5.3 | $ | 6.8 | $ | 8.5 | |||||||||||
Summary of option activity | ' | ||||||||||||||||
Number of | Weighted- | Weighted-Average | |||||||||||||||
Options | Average | Remaining | |||||||||||||||
(In millions) | Exercise Price | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2010 | 4.5 | $ | 10.84 | 5.16 | |||||||||||||
Options granted | 0.6 | $ | 19.19 | ||||||||||||||
Options exercised | (1.6 | ) | $ | 8.17 | |||||||||||||
Options expired or forfeited | (0.1 | ) | $ | 12.93 | |||||||||||||
Outstanding at December 31, 2011 | 3.4 | $ | 13.55 | 6.45 | |||||||||||||
Options granted | 0.5 | $ | 25.03 | ||||||||||||||
Options exercised | (0.6 | ) | $ | 10.41 | |||||||||||||
Options expired or forfeited | — | $ | 21.82 | ||||||||||||||
Outstanding at December 31, 2012 | 3.3 | $ | 15.67 | 6.26 | |||||||||||||
Options granted | 0.3 | $ | 28.27 | ||||||||||||||
Options exercised | (0.6 | ) | $ | 14.44 | |||||||||||||
Outstanding at December 31, 2013 | 3 | $ | 17.3 | 5.96 | |||||||||||||
Schedule of other stock option statistics | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(In millions, except weighted average exercise price) | 2013 | 2012 | |||||||||||||||
Aggregate intrinsic value of outstanding options | $ | 82.5 | $ | 37.4 | |||||||||||||
Aggregate intrinsic value of exercisable options | $ | 66.9 | $ | 29.5 | |||||||||||||
Total intrinsic value of options exercised | $ | 10.9 | $ | 9.1 | |||||||||||||
Total number of options exercisable | 2.2 | 2.2 | |||||||||||||||
Weighted average exercise price of options exercisable | $ | 14.09 | $ | 13.57 | |||||||||||||
Total unrecognized compensation cost on nonvested options (a) | $ | 1.6 | $ | 2.1 | |||||||||||||
(a) Unrecognized compensation cost relates to nonvested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years. | |||||||||||||||||
Summary of information about outstanding and exercisable stock options | ' | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||
Exercise Prices | Options | Average | Average | Options | Average | ||||||||||||
Outstanding (a) | Remaining | Exercise | Exercisable (a) | Exercise | |||||||||||||
Life (in Years) | Price | Price | |||||||||||||||
$ | 7.83 | – | 10.9 | 1.1 | 5.59 | $ | 9.38 | 1.1 | $ | 9.38 | |||||||
$ | 14.51 | – | 21.11 | 1 | 4.97 | $ | 18.54 | 0.8 | $ | 17.45 | |||||||
$ | 22.00 | – | 28.27 | 0.9 | 7.58 | $ | 25.79 | 0.3 | $ | 23.54 | |||||||
$ | 7.83 | – | 28.27 | 3 | 5.96 | $ | 17.3 | 2.2 | $ | 14.09 | |||||||
(a) in millions | |||||||||||||||||
Schedule of assumptions used in determining the estimated the fair value of stock options | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.08 | % | 0.83 | % | 1.88 | % | |||||||||||
Expected option life (in years) Executive | 6.32 | 5.44 | 4.84 | ||||||||||||||
Expected option life (in years) Non-Executive | 4.8 | 4.45 | 4.71 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||
Volatility | 40.12 | % | 45.76 | % | 44.08 | % | |||||||||||
Weighted-average fair value per option granted | $ | 11.07 | $ | 10.24 | $ | 7.65 | |||||||||||
Summary of the company's service based RSU activity | ' | ||||||||||||||||
Number of | Weighted- | ||||||||||||||||
RSUs | Average | ||||||||||||||||
(In millions) | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 31, 2010 | 1 | $ | 11.76 | ||||||||||||||
RSUs granted | 0.3 | $ | 20.63 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 12.51 | |||||||||||||
Outstanding at December 31, 2011 | 0.9 | $ | 14.49 | ||||||||||||||
RSUs granted | 0.3 | $ | 25.26 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 12.1 | |||||||||||||
Outstanding at December 31, 2012 | 0.8 | $ | 18.9 | ||||||||||||||
RSUs granted | 0.2 | $ | 28.95 | ||||||||||||||
RSUs issued | (0.4 | ) | $ | 15.7 | |||||||||||||
Outstanding at December 31, 2013 | 0.6 | $ | 23.79 | ||||||||||||||
Summary of the company's PRSU activity | ' | ||||||||||||||||
Number of | Weighted- | ||||||||||||||||
PRSUs | Average | ||||||||||||||||
(In millions) | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at December 31, 2010 | 0.6 | $ | 9.77 | ||||||||||||||
PRSUs granted | 0.1 | $ | 19.02 | ||||||||||||||
Outstanding at December 31, 2011 | 0.7 | $ | 11.53 | ||||||||||||||
PRSUs granted | 0.1 | $ | 25.03 | ||||||||||||||
PRSUs additional performance shares | 0.2 | $ | 8 | ||||||||||||||
PRSUs issued | (0.5 | ) | $ | 8.28 | |||||||||||||
Outstanding at December 31, 2012 | 0.5 | $ | 16.93 | ||||||||||||||
PRSUs granted | 0.2 | $ | 28.27 | ||||||||||||||
PRSUs additional performance shares | 0.3 | $ | 10.72 | ||||||||||||||
PRSUs issued | (0.5 | ) | $ | 10.64 | |||||||||||||
Outstanding at December 31, 2013 | 0.5 | $ | 24.6 |
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Net Income Per Common Share | ' | ||||||||||
Summary of earnings per share basic and diluted | ' | ||||||||||
(In millions, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 187.9 | $ | 164.3 | $ | 135.5 | |||||
Basic net income per common share: | |||||||||||
Weighted average common shares outstanding | 100 | 100.2 | 98.8 | ||||||||
Basic net income per common share | $ | 1.88 | $ | 1.64 | $ | 1.37 | |||||
Diluted net income per common share: | |||||||||||
Weighted average common shares outstanding — Basic | 100 | 100.2 | 98.8 | ||||||||
Plus incremental shares from assumed conversions: | |||||||||||
Restricted stock units | 0.7 | 0.8 | 0.9 | ||||||||
Stock options | 1.4 | 1 | 1 | ||||||||
Weighted average common shares outstanding — Diluted | 102.1 | 102 | 100.7 | ||||||||
Diluted net income per common share | $ | 1.84 | $ | 1.61 | $ | 1.35 | |||||
Anti-dilutive shares outstanding, excluded from computation | — | 0.5 | 0.3 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Financial Instruments | ' | ||||||||||
Schedule of change in fair value of foreign currency forward exchange contracts under hedge designations | ' | ||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Unrealized gains (losses) at beginning of period | $ | 2.4 | $ | (4.5 | ) | $ | (0.2 | ) | |||
(Losses) gains reclassified to net sales | (0.3 | ) | 2.4 | (2.2 | ) | ||||||
Increase (decrease) in fair value, net of tax of $2.8 million, $1.9 million and ($0.8) million in 2013, 2012 and 2011 respectively | 5.1 | 4.5 | (2.1 | ) | |||||||
Unrealized gains (losses) at end of period | $ | 7.2 | $ | 2.4 | $ | (4.5 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Schedule of environmental remediation reserve activity | ' | ||||||||||
For the year ended December 31, | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Beginning remediation accrual balance | $ | 6.6 | $ | 5 | $ | 7.3 | |||||
Current period expenses | 0.9 | 5 | 3.4 | ||||||||
Cash expenditures | (3.6 | ) | (3.4 | ) | (5.7 | ) | |||||
Ending remediation accrual balance | $ | 3.9 | $ | 6.6 | $ | 5 | |||||
Capital expenditures for environmental matters | $ | 4.6 | $ | 2.4 | $ | 4.1 | |||||
Schedule of product warranty | ' | ||||||||||
(In millions) | Product | ||||||||||
Warranties | |||||||||||
Balance as of December 31, 2010 | $ | 4.3 | |||||||||
Warranty expense | 2 | ||||||||||
Deductions and other | (0.6 | ) | |||||||||
Balance as of December 31, 2011 | $ | 5.7 | |||||||||
Warranty expense | 2.2 | ||||||||||
Deductions and other | (2.8 | ) | |||||||||
Balance as of December 31, 2012 | $ | 5.1 | |||||||||
Warranty expense | 1.2 | ||||||||||
Deductions and other | (1.8 | ) | |||||||||
Balance as of December 31, 2013 | $ | 4.5 |
Supplemental_Cash_Flow_Tables
Supplemental Cash Flow (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow | ' | ||||||||||
Schedule of supplemental cash flow information | ' | ||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Cash paid for: | |||||||||||
Interest | $ | 7.6 | $ | 12.6 | $ | 15.5 | |||||
Taxes | $ | 49 | $ | 23.4 | $ | 10.2 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Schedule of components of accumulated other comprehensive income (loss) | ' | |||||||
(In millions) | 2013 | 2012 | ||||||
Currency translation adjustments (a) | $ | 26.7 | $ | 7.1 | ||||
Net unrealized gains on financial instruments, net of tax (b) | 8.2 | 2.2 | ||||||
Pension obligation adjustment, net of tax (c) | (24.2 | ) | (41.2 | ) | ||||
Accumulated other comprehensive income (loss) | $ | 10.7 | $ | (31.9 | ) | |||
(a) | The currency translation adjustments are not currently adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. | |||||||
(b) | Reduced by the tax impact of ($1.8) million and ($0.1) million at December 31, 2013 and 2012, respectively. | |||||||
(c) | Reduced by the tax impact of $11.1 million and $16.0 million at December 31, 2013 and 2012, respectively. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of segment reporting information | ' | |||||||||||||
(In millions) | Composite | Engineered | Corporate & | Total | ||||||||||
Materials | Products | Other | ||||||||||||
Third-Party Sales | ||||||||||||||
2013 | $ | 1,286.90 | $ | 391.3 | $ | — | $ | 1,678.20 | ||||||
2012 | 1,230.90 | 347.3 | — | 1,578.20 | ||||||||||
2011 | 1,074.50 | 317.9 | — | 1,392.40 | ||||||||||
Intersegment sales | ||||||||||||||
2013 | $ | 68 | $ | 1.8 | $ | (69.8 | ) | $ | — | |||||
2012 | 56.8 | 2 | (58.8 | ) | — | |||||||||
2011 | 53.8 | 1.6 | (55.4 | ) | — | |||||||||
Operating income (loss) | ||||||||||||||
2013 | $ | 276.3 | $ | 58.9 | $ | (64.3 | ) | $ | 270.9 | |||||
2012 | 257.3 | 50.6 | (59.1 | ) | 248.8 | |||||||||
2011 | 194.5 | 51.6 | (54.1 | ) | 192 | |||||||||
Depreciation | ||||||||||||||
2013 | $ | 54.4 | $ | 4.7 | $ | 0.2 | $ | 59.3 | ||||||
2012 | 52.6 | 4.5 | 0.1 | 57.2 | ||||||||||
2011 | 50.8 | 4.3 | 0.2 | 55.3 | ||||||||||
Equity in earnings from affiliated companies | ||||||||||||||
2013 | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||
2012 | — | 0.7 | — | 0.7 | ||||||||||
2011 | — | 1.6 | — | 1.6 | ||||||||||
Other (income) expense, net | ||||||||||||||
2012 | (14.5 | ) | — | 5 | (9.5 | ) | ||||||||
2011 | (5.7 | ) | — | 2.7 | (3.0 | ) | ||||||||
Segment assets | ||||||||||||||
2013 | $ | 1,479.20 | $ | 244 | $ | 112.9 | $ | 1,836.10 | ||||||
2012 | 1,295.40 | 215.2 | 92.5 | 1,603.10 | ||||||||||
2011 | 1,076.00 | 192.3 | 107.8 | 1,376.10 | ||||||||||
Investments in affiliated companies | ||||||||||||||
2013 | $ | — | $ | 23.3 | $ | — | $ | 23.3 | ||||||
2012 | — | 22.6 | — | 22.6 | ||||||||||
2011 | — | 21.7 | — | 21.7 | ||||||||||
Accrual basis additions to property, plant and equipment | ||||||||||||||
2013 | $ | 194.6 | $ | 11.9 | $ | — | $ | 206.5 | ||||||
2012 | 228.6 | 12.5 | 0.2 | 241.3 | ||||||||||
2011 | 176.6 | 6.9 | 1 | 184.5 | ||||||||||
Schedule of net sales and long-lived assets, by geographic area | ' | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||
Net sales by Geography (a): | ||||||||||||||
United States | $ | 871 | $ | 801.4 | $ | 721.5 | ||||||||
International | ||||||||||||||
France | 321.1 | 302.9 | 257.6 | |||||||||||
Spain | 164.8 | 150.6 | 142.6 | |||||||||||
United Kingdom | 110.9 | 114.7 | 102.1 | |||||||||||
Austria | 96.2 | 105 | 95.5 | |||||||||||
Other | 114.2 | 103.6 | 73.1 | |||||||||||
Total international | 807.2 | 776.8 | 670.9 | |||||||||||
Total consolidated net sales | $ | 1,678.20 | $ | 1,578.20 | $ | 1,392.40 | ||||||||
Net Sales to External Customers (b): | ||||||||||||||
United States | $ | 765.2 | $ | 719.4 | $ | 615.7 | ||||||||
International | ||||||||||||||
France | 146.1 | 144.4 | 132.3 | |||||||||||
Germany | 135.2 | 128.2 | 87.7 | |||||||||||
Spain | 154.7 | 123.9 | 120.8 | |||||||||||
United Kingdom | 81.4 | 82.2 | 80.2 | |||||||||||
Other | 395.6 | 380.1 | 355.7 | |||||||||||
Total international | 913 | 858.8 | 776.7 | |||||||||||
Total | $ | 1,678.20 | $ | 1,578.20 | $ | 1,392.40 | ||||||||
Long-lived assets (c): | ||||||||||||||
United States | $ | 854.6 | $ | 733.5 | $ | 568.2 | ||||||||
International | ||||||||||||||
United Kingdom | 92.6 | 83.8 | 68.4 | |||||||||||
Spain | 73.2 | 68.2 | 60.5 | |||||||||||
France | 55.8 | 37.9 | 36 | |||||||||||
Other | 75.5 | 48.8 | 46.4 | |||||||||||
Total international | 297.1 | 238.7 | 211.3 | |||||||||||
Total consolidated long-lived assets | $ | 1,151.70 | $ | 972.2 | $ | 779.5 | ||||||||
(a) Net sales by geography based on the location in which the product sold was manufactured. | ||||||||||||||
(b) Net sales to external customers based on the location to which the product sold was delivered. | ||||||||||||||
(c) Long-lived assets primarily consist of property, plant and equipment, net and goodwill. |
Other_Income_net_Tables
Other Income, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income, net | ' | |||||||
Schedule of other income, net | ' | |||||||
(In millions) | 2012 | 2011 | ||||||
Business interruption insurance settlement | $ | (9.6 | ) | $ | — | |||
Gain on sale of land | (4.9 | ) | — | |||||
Pension curtailment gain | — | (5.7 | ) | |||||
Environmental expense | 5 | 2.7 | ||||||
Other income, net | $ | (9.5 | ) | $ | (3.0 | ) |
Quarterly_Financial_and_Market1
Quarterly Financial and Market Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial and Market Data (Unaudited) | ' | |||||||||||||
Schedule of quarterly financial and market data | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
(In millions) | Quarter | Quarter | Quarter | Quarter | ||||||||||
2013 | ||||||||||||||
Net sales | $ | 416.5 | $ | 422.6 | $ | 412.3 | $ | 426.8 | ||||||
Gross margin | 112 | 116.8 | 112.1 | 113.1 | ||||||||||
Operating income | 63 | 71.9 | 69 | 67 | ||||||||||
Net income | 43.6 | 48.5 | 48.7 | 47.1 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.43 | $ | 0.49 | $ | 0.49 | $ | 0.47 | ||||||
Diluted | $ | 0.43 | $ | 0.48 | $ | 0.48 | $ | 0.46 | ||||||
Market price: | ||||||||||||||
High | $ | 30.23 | $ | 35.46 | $ | 39.67 | $ | 44.69 | ||||||
Low | $ | 26.5 | $ | 27.64 | $ | 33.88 | $ | 38.09 | ||||||
2012 | ||||||||||||||
Net sales | $ | 400.1 | $ | 399.2 | $ | 391.6 | $ | 387.3 | ||||||
Gross margin | 106.4 | 105.5 | 99.2 | 95.6 | ||||||||||
Other income, net | — | (9.5 | ) | — | — | |||||||||
Operating income | 60.6 | 73.9 | 60 | 54.3 | ||||||||||
Net income | 39.6 | 48 | 39.8 | 36.9 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.4 | $ | 0.48 | $ | 0.4 | $ | 0.37 | ||||||
Diluted | $ | 0.39 | $ | 0.47 | $ | 0.39 | $ | 0.36 | ||||||
Market price: | ||||||||||||||
High | $ | 26.71 | $ | 27.8 | $ | 26.49 | $ | 27.29 | ||||||
Low | $ | 23.42 | $ | 23.05 | $ | 22.53 | $ | 23.55 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) | Dec. 31, 2013 |
Significant Accounting Policies | ' |
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 50.00% |
Significant_Accounting_Policie3
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt financing costs | ' | ' | ' |
Deferred financing cost net of accumulated amortization | $5 | $4.60 | ' |
Product Warranty | ' | ' | ' |
Warranty expense | $1.20 | $2.20 | $2 |
Building and improvements | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '10 years | ' | ' |
Building and improvements | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '40 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '3 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '25 years | ' | ' |
Machinery and equipment | Useful lives | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | ' | '25 years | '20 years |
Other machinery and equipment | Useful lives | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | ' | '20 years | ' |
Other machinery and equipment | Useful lives | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | ' | ' | '10 years |
Other machinery and equipment | Useful lives | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | ' | ' | '12 years |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | item | |
Concentration of credit risk | ' | ' | ' |
Allowance for doubtful accounts | 0.9 | 1.8 | ' |
Net sales | Customer concentration | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Number of major customers | 2 | 2 | 2 |
Net sales | Customer concentration | Two customers and their related subcontractors | Minimum | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration percentage (as a percent) | 50.00% | 50.00% | 50.00% |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $103.40 | $95 |
Work in progress | 62.2 | 51.2 |
Finished goods | 99.7 | 86.6 |
Total inventories | $265.30 | $232.80 |
Net_Property_Plant_and_Equipme2
Net Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Useful lives | Useful lives | Land | Land | Buildings | Buildings | Equipment | Equipment | Construction in progress | Construction in progress | Other machinery and equipment | Other machinery and equipment | Other machinery and equipment | Machinery and equipment | Machinery and equipment | Machinery and equipment | Machinery and equipment | ||||
Useful lives | Useful lives | Useful lives | Minimum | Maximum | Useful lives | Useful lives | ||||||||||||||
Minimum | Maximum | |||||||||||||||||||
Net Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | $1,661.20 | $1,459.20 | ' | ' | ' | $50.90 | $41.90 | $396.20 | $298.30 | $957 | $783.40 | $257.10 | $335.60 | ' | ' | ' | ' | ' | ' | ' |
Less accumulated depreciation | -593.8 | -544.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net property, plant and equipment | 1,067.40 | 914.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense related to property, plant and equipment | 59.3 | 57.2 | 55.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.9 | 3.1 | ' | ' | ' | ' | ' | ' | ' |
Capitalized costs associated with software developed for internal use | 4.4 | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | '10 years | '12 years | '3 years | '25 years | '25 years | '20 years |
Pre-tax lowered depreciation | ' | ' | ' | $1.25 | $1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in earnings per basic and diluted common share (in dollars per share) | ' | ' | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Purchased_Intangi2
Goodwill and Purchased Intangible Assets (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Composite Materials | Composite Materials | Engineered Products | Engineered Products | Engineered Products | |||
Changes in the carrying amount of gross goodwill and other purchased intangibles | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $57.80 | $57.40 | $41.70 | $41.30 | $16.10 | $16.10 | $16.10 |
Additions | 3 | ' | 3 | ' | ' | ' | ' |
Amortization expense | -0.1 | ' | -0.1 | ' | ' | ' | ' |
Currency translation adjustments and other | 0.4 | 0.4 | 0.4 | 0.4 | ' | ' | ' |
Balance at the end of the period | 61.1 | 57.8 | 45 | 41.7 | 16.1 | 16.1 | 16.1 |
Indefinite-lived intangible assets | 3.6 | ' | ' | ' | ' | ' | ' |
Definitive-lived intangible asset | 2.9 | ' | ' | ' | ' | ' | ' |
Goodwill | $54.60 | ' | ' | ' | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Feb. 28, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 01, 2005 |
Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Foreign operation's working capital line of credit | Foreign operation's working capital line of credit | Revolving credit line | Revolving credit line | Capital lease and other obligations | Term loan | Term loan | Senior secured credit facility - revolving loan due 2018 | Senior secured credit facility - revolving loan due 2018 | Senior secured credit facility - revolving loan due 2018 | Senior secured credit facility - revolving loan due 2018 | Senior secured credit facility - term loan due 2015 | Senior secured credit facility - revolving loan due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | |||||
Cash flow hedges | Minimum | Maximum | ||||||||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | 6.75% | 6.75% | 6.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.75% | 6.75% | ' | ' | ' | ' | ' |
Short-term borrowings and current maturities of long-term debt | ' | $3 | $16.60 | ' | ' | ' | ' | ' | $3 | $4.80 | ' | ' | $1.80 | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | 292 | 240 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 292 | ' | ' | ' | 75 | 165 | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | 295 | 256.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | 10 | ' | ' | ' | ' | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360 | ' | 82.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225 |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spread on variable rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in new initial interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio required to be maintained (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average fixed interest rate (as a percent) | ' | ' | ' | ' | 81.57% | 0.67% | 1.03% | 0.82% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.5 | 150 | ' | ' | ' | ' | ' |
Call premium (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.13% | 2.25% | ' | ' | ' | ' | ' |
Amount of notes purchased on the open market | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' |
Add-on to senior secured credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135 | 75 | ' | ' | ' |
Call premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 4.9 | ' | ' |
Impact of call premium on diluted earnings per share, net of tax (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.03 | ' | ' |
Pre-tax charge incurred on call premium | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.10 | $4.90 | ' | ' |
Debt_Details_2
Debt (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Aggregate Maturities of Debt | ' | ' |
2014 | $3 | ' |
2018 | 292 | ' |
Total debt | $295 | $256.60 |
Leasing_Arrangements_Details
Leasing Arrangements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, plant and equipment under capital leasing arrangements | ' | ' | ' |
Property, plant and equipment | $3.70 | $3.70 | ' |
Less accumulated depreciation | -1.6 | -1.6 | ' |
Net property, plant and equipment | 2.1 | 2.1 | ' |
Liability balances under capital leasing arrangements | ' | ' | ' |
Capital lease obligations | 1.8 | 2 | ' |
Less current maturities | -1.8 | -0.2 | ' |
Long-term capital lease obligations, net | ' | 1.8 | ' |
Operating leases | ' | ' | ' |
Rental expenses on operating leases | 16.1 | 15.4 | 15.2 |
Future minimum operating lease payments | ' | ' | ' |
2014 | 9.1 | ' | ' |
2015 | 5.3 | ' | ' |
2016 | 4.1 | ' | ' |
2017 | 2.2 | ' | ' |
2018 | 1.8 | ' | ' |
Thereafter | 9.3 | ' | ' |
Total minimum lease payments | $31.80 | ' | ' |
Retirement_and_Other_Postretir2
Retirement and Other Postretirement Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Period for which the discount rate has declined | '3 years | ' | ' |
Multi-Employer Plan | ' | ' | ' |
Minimum percentage of the Plan's total contributions contributed by the entity | ' | 5.00% | ' |
Employer contribution | $1 | $1 | $1 |
Expected contribution in 2014 | $1 | ' | ' |
U.S. Retirement Savings Plan | ' | ' | ' |
U.S. retirement saving plan | ' | ' | ' |
Maximum percentage of employee's annual compensation allowed as contribution to individual 401(k) retirement saving account (as a percent) | 75.00% | ' | ' |
Employer contribution as a percentage of employee contribution (as a percent) | 50.00% | ' | ' |
Employer matching contribution as a percentage of employee's annual compensation (as a percent) | 3.00% | ' | ' |
U.S. Retirement Savings Plan | Minimum | ' | ' | ' |
U.S. retirement saving plan | ' | ' | ' |
Additional employer contribution as a percentage of eligible income depending on employee's age (as a percent) | 2.00% | ' | ' |
Maximum employer contribution to individual 401(k) retirement saving account, after additional contribution (as a percent) | 5.00% | ' | ' |
U.S. Retirement Savings Plan | Maximum | ' | ' | ' |
U.S. retirement saving plan | ' | ' | ' |
Employer matching contribution as a percentage of employee's annual compensation (as a percent) | 4.50% | ' | ' |
Additional employer contribution as a percentage of eligible income depending on employee's age (as a percent) | 4.00% | ' | ' |
Maximum employer contribution to individual 401(k) retirement saving account, after additional contribution (as a percent) | 7.00% | ' | ' |
UK Defined Contribution Pension Plan | ' | ' | ' |
U.S. retirement saving plan | ' | ' | ' |
Percentage of pensionable salary that eligible employees can elect to contribute under the first option | 3.00% | ' | ' |
Percentage of pensionable salary that eligible employees can elect to contribute under the second option | 5.00% | ' | ' |
Percentage of pensionable salary that eligible employees can elect to contribute under the third option | 7.00% | ' | ' |
Company's contribution under the first option (as a percent) | 5.00% | ' | ' |
Company's contribution under the second option (as a percent) | 9.00% | ' | ' |
Company's contribution under the third option (as a percent) | 13.00% | ' | ' |
Retirement_and_Other_Postretir3
Retirement and Other Postretirement Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Total plan assets invested in active corporate bond funds (as a percent) | 100.00% | 100.00% | ' |
Curtailment gain | ' | ' | ($5.70) |
Net Periodic Pension Expense | ' | ' | ' |
Defined benefit retirement plans | 7.3 | 5.4 | -0.3 |
Union sponsored multi-employer pension plan | 1.6 | 1.2 | 0.9 |
Retirement savings plans-matching contributions | 3 | 3.3 | 2.9 |
Retirement savings plans-profit sharing contributions | 6.7 | 7.6 | 8 |
Net periodic expense | 18.6 | 17.5 | 11.5 |
Net periodic benefit costs of defined benefit retirement plans | ' | ' | ' |
Curtailment gain | ' | ' | -5.7 |
Net periodic benefit cost | 7.3 | 5.4 | -0.3 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets - beginning of year | 128.3 | ' | ' |
Fair value of plan assets - end of year | 149.3 | 128.3 | ' |
U.S. Non-qualified Defined Benefit Retirement Plans | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Expected employer contribution in next fiscal year | 23.8 | ' | ' |
Net Periodic Pension Expense | ' | ' | ' |
Defined benefit retirement plans | 6.5 | 4.7 | 4.2 |
Net periodic benefit costs of defined benefit retirement plans | ' | ' | ' |
Service cost | 1.7 | 1.3 | 1.5 |
Interest cost | 0.8 | 1.1 | 1.1 |
Net amortization and deferral | 4 | 2.3 | 1.6 |
Net periodic benefit cost | 6.5 | 4.7 | 4.2 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ' | ' | ' |
Net loss (gain) | 1 | 3.1 | ' |
Amortization of actuarial losses | -3.9 | -2.2 | ' |
Amortization of prior service credit (cost) | -0.1 | -0.1 | ' |
Total recognized in other comprehensive income (pre-tax) | -3 | 0.8 | ' |
Estimated net actuarial loss to be recognized as a component of net periodic pension cost | 2.4 | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation - beginning of year | 38.6 | 33.4 | ' |
Service cost | 1.7 | 1.3 | 1.5 |
Interest cost | 0.8 | 1.1 | 1.1 |
Actuarial loss (gain) | 1.1 | 3.1 | ' |
Benefits and expenses paid | -0.3 | -0.3 | ' |
Benefit obligation - end of year | 41.9 | 38.6 | 33.4 |
Change in plan assets: | ' | ' | ' |
Employer contribution to defined benefit retirement plans | 0.3 | 0.3 | ' |
Benefits and expenses paid | -0.3 | -0.3 | ' |
Amounts recognized on the balance sheet: | ' | ' | ' |
Current liabilities | 23.8 | 0.3 | ' |
Other non-current liabilities | 18.1 | 38.3 | ' |
Total accrued benefit | 41.9 | 38.6 | ' |
Amounts recognized in Accumulated Other Comprehensive Income: | ' | ' | ' |
Actuarial net (loss) gain | -7.3 | -10.2 | ' |
Prior service cost | -0.1 | -0.2 | ' |
Total amounts recognized in accumulated other comprehensive (loss) income | -7.4 | -10.4 | ' |
Total accumulated benefit obligation | 40.9 | 38 | ' |
Defined benefit retirement plans and postretirement benefit plans included within accrued compensation and benefits | 24.8 | 1.3 | ' |
Defined benefit retirement plans and postretirement benefit plans included within other non-current liabilities | 39.6 | 81.9 | ' |
Expected benefit payments for the plans | ' | ' | ' |
2014 | 23.8 | ' | ' |
2015 | 4.5 | ' | ' |
2016 | 2.2 | ' | ' |
2017 | 1.1 | ' | ' |
2018 | 1.4 | ' | ' |
2019-2023 | 10.2 | ' | ' |
Aggregate expected benefit payments | 43.2 | ' | ' |
U.S. Postretirement Plans | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Expected employer contribution in next fiscal year | 0.6 | ' | ' |
Net Periodic Pension Expense | ' | ' | ' |
Defined benefit retirement plans | -0.2 | -0.2 | 0.1 |
Net periodic benefit costs of defined benefit retirement plans | ' | ' | ' |
Interest cost | 0.2 | 0.3 | 0.4 |
Net amortization and deferral | -0.4 | -0.5 | -0.3 |
Net periodic benefit cost | -0.2 | -0.2 | 0.1 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ' | ' | ' |
Net loss (gain) | -1.6 | 0.1 | ' |
Amortization of actuarial losses | 0.4 | 0.5 | ' |
Total recognized in other comprehensive income (pre-tax) | -1.2 | 0.6 | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation - beginning of year | 8.1 | 8 | ' |
Interest cost | 0.2 | 0.3 | 0.4 |
Plan participants' contributions | 0.1 | 0.1 | ' |
Actuarial loss (gain) | -1.6 | 0.1 | ' |
Benefits and expenses paid | -0.4 | -0.4 | ' |
Benefit obligation - end of year | 6.4 | 8.1 | 8 |
Change in plan assets: | ' | ' | ' |
Employer contribution to defined benefit retirement plans | 0.3 | 0.3 | ' |
Plan participants' contributions | 0.1 | 0.1 | ' |
Benefits and expenses paid | -0.4 | -0.4 | ' |
Amounts recognized on the balance sheet: | ' | ' | ' |
Current liabilities | 0.6 | 0.6 | ' |
Other non-current liabilities | 5.8 | 7.5 | ' |
Total accrued benefit | 6.4 | 8.1 | ' |
Amounts recognized in Accumulated Other Comprehensive Income: | ' | ' | ' |
Actuarial net (loss) gain | 4.3 | 3.1 | ' |
Total amounts recognized in accumulated other comprehensive (loss) income | 4.3 | 3.1 | ' |
Expected benefit payments for the plans | ' | ' | ' |
2014 | 0.6 | ' | ' |
2015 | 0.7 | ' | ' |
2016 | 0.7 | ' | ' |
2017 | 0.6 | ' | ' |
2018 | 0.7 | ' | ' |
2019-2023 | 2.9 | ' | ' |
Aggregate expected benefit payments | 6.2 | ' | ' |
European Defined Benefit Retirement Plans | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Curtailment gain | ' | ' | -5.7 |
Service credits recognized as a curtailment gain per diluted share (in dollars per share) | $0.04 | ' | ' |
Net Periodic Pension Expense | ' | ' | ' |
Defined benefit retirement plans | 0.8 | 0.7 | -4.5 |
Net periodic benefit costs of defined benefit retirement plans | ' | ' | ' |
Service cost | 0.7 | 0.5 | 1.1 |
Interest cost | 6.9 | 6.6 | 7.2 |
Expected return on plan assets | -8 | -7.3 | -7.8 |
Net amortization and deferral | 1.2 | 0.9 | 0.7 |
Curtailment gain | ' | ' | -5.7 |
Net periodic benefit cost | 0.8 | 0.7 | -4.5 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ' | ' | ' |
Net loss (gain) | -16.5 | 12.1 | ' |
Amortization of actuarial losses | -1.3 | -0.9 | ' |
Effect of foreign exchange | 0.2 | 1.9 | ' |
Total recognized in other comprehensive income (pre-tax) | -17.6 | 13.1 | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation - beginning of year | 164.8 | 139.8 | ' |
Service cost | 0.7 | 0.5 | 1.1 |
Interest cost | 6.9 | 6.6 | 7.2 |
Plan participants' contributions | 0.1 | 0.1 | ' |
Actuarial loss (gain) | -8.3 | 15.2 | ' |
Benefits and expenses paid | -4.9 | -3.7 | ' |
Currency translation adjustments | 3.5 | 6.3 | ' |
Benefit obligation - end of year | 162.7 | 164.8 | 139.8 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets - beginning of year | 128.3 | 110.8 | ' |
Actual return on plan assets | 16.2 | 10.3 | ' |
Employer contribution to defined benefit retirement plans | 5.9 | 5.7 | ' |
Plan participants' contributions | 0.1 | 0.1 | ' |
Benefits and expenses paid | -4.9 | -3.7 | ' |
Currency translation adjustments | 3.7 | 5.1 | ' |
Fair value of plan assets - end of year | 149.3 | 128.3 | 110.8 |
Amounts recognized on the balance sheet: | ' | ' | ' |
Noncurrent Assets | 2.7 | ' | ' |
Current liabilities | 0.4 | 0.4 | ' |
Other non-current liabilities | 15.7 | 36.1 | ' |
Total accrued benefit | 16.1 | 36.5 | ' |
Amounts recognized in Accumulated Other Comprehensive Income: | ' | ' | ' |
Actuarial net (loss) gain | -32.2 | -49.7 | ' |
Prior service cost | -0.1 | -0.1 | ' |
Total amounts recognized in accumulated other comprehensive (loss) income | -32.3 | -49.8 | ' |
Total accumulated benefit obligation | 17.5 | 160.6 | ' |
Accumulated benefit obligation in excess of plan assets | 11 | 32.3 | ' |
Expected benefit payments for the plans | ' | ' | ' |
2014 | 3.8 | ' | ' |
2015 | 4 | ' | ' |
2016 | 5 | ' | ' |
2017 | 5.7 | ' | ' |
2018 | 6.8 | ' | ' |
2019-2023 | 37.1 | ' | ' |
Aggregate expected benefit payments | 62.4 | ' | ' |
European Defined Benefit Retirement Plans | Minimum | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Expected long-term weighted average rate of return for next fiscal year (as a percent) | 3.25% | ' | ' |
European Defined Benefit Retirement Plans | Maximum | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Expected long-term weighted average rate of return for next fiscal year (as a percent) | 4.50% | ' | ' |
United Kingdom defined benefit plan (the U.K. Plan) | ' | ' | ' |
Retirement and Other Postretirement Benefit Plans | ' | ' | ' |
Total plan assets invested in active corporate bond funds (as a percent) | 57.00% | ' | ' |
Expected long-term weighted average rate of return for next fiscal year (as a percent) | 6.50% | ' | ' |
Curtailment gain | 5.7 | ' | ' |
Service credits recognized as a curtailment gain per diluted share (in dollars per share) | $0.04 | ' | ' |
Net periodic benefit costs of defined benefit retirement plans | ' | ' | ' |
Curtailment gain | $5.70 | ' | ' |
Retirement_and_Other_Postretir4
Retirement and Other Postretirement Benefit Plans (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair value of pension assets | ' | ' |
Fair value measurements | $149.30 | $128.30 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 128.3 | ' |
Fair value of plan assets - end of year | 149.3 | 128.3 |
Total plan assets invested in active corporate bond funds (as a percent) | 100.00% | 100.00% |
Target allocations by asset class (as a percent) | 100.00% | 100.00% |
Equity funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 83.3 | 70 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 83.3 | 70 |
U.K. Equity Fund | ' | ' |
Reconciliation of Level 3 Assets | ' | ' |
Total plan assets invested in active corporate bond funds (as a percent) | 28.10% | 28.00% |
Target allocations by asset class (as a percent) | 30.60% | 28.60% |
Total invested in equities (as a percent) | 50.00% | ' |
Overseas Equity Fund | ' | ' |
Reconciliation of Level 3 Assets | ' | ' |
Total plan assets invested in active corporate bond funds (as a percent) | 27.70% | 26.60% |
Target allocations by asset class (as a percent) | 30.60% | 28.60% |
Total invested in equities (as a percent) | 50.00% | ' |
Active Corporate Bond Funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 58.5 | 52.1 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 52.1 | ' |
Fair value of plan assets - end of year | 58.5 | 52.1 |
Total plan assets invested in active corporate bond funds (as a percent) | 39.20% | 40.60% |
Target allocations by asset class (as a percent) | 34.50% | 38.20% |
Diversified Investment Funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 2.9 | 3.1 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 3.1 | ' |
Fair value of plan assets - end of year | 2.9 | 3.1 |
Total plan assets invested in active corporate bond funds (as a percent) | 1.90% | 2.40% |
Target allocations by asset class (as a percent) | 1.90% | 2.20% |
Insurance Contracts | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 3.6 | 3.1 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 3.1 | ' |
Fair value of plan assets - end of year | 3.6 | 3.1 |
Total plan assets invested in active corporate bond funds (as a percent) | 2.40% | 2.40% |
Target allocations by asset class (as a percent) | 2.40% | 2.40% |
Cash and cash equivalents | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 1 | ' |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 1 | ' |
Target allocations by asset class (as a percent) | 0.70% | ' |
Level 2 | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 142.8 | 122.4 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 142.8 | 122.4 |
Level 2 | Equity funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 83.3 | 70 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 83.3 | 70 |
Level 2 | Active Corporate Bond Funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 58.5 | 52.1 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 58.5 | 52.1 |
Level 2 | Diversified Investment Funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | ' | 0.3 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | ' | 0.3 |
Level 2 | Cash and cash equivalents | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 1 | ' |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - end of year | 1 | ' |
Level 3 | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 6.5 | 5.9 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 5.9 | 5.1 |
Actual return on plan assets | 0.3 | 0.4 |
Purchases, sales and settlements | ' | 0.3 |
Changes due to exchange rates | 0.3 | 0.1 |
Fair value of plan assets - end of year | 6.5 | 5.9 |
Level 3 | Diversified Investment Funds | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 2.9 | 2.8 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 2.8 | 2.5 |
Actual return on plan assets | 0.2 | 0.2 |
Purchases, sales and settlements | -0.2 | 0.1 |
Changes due to exchange rates | 0.1 | ' |
Fair value of plan assets - end of year | 2.9 | 2.8 |
Level 3 | Insurance Contracts | ' | ' |
Fair value of pension assets | ' | ' |
Fair value measurements | 3.6 | 3.1 |
Reconciliation of Level 3 Assets | ' | ' |
Fair value of plan assets - beginning of year | 3.1 | 2.6 |
Actual return on plan assets | 0.1 | 0.2 |
Purchases, sales and settlements | 0.2 | 0.2 |
Changes due to exchange rates | 0.2 | 0.1 |
Fair value of plan assets - end of year | $3.60 | $3.10 |
Retirement_and_Other_Postretir5
Retirement and Other Postretirement Benefit Plans (Details 4) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Non-qualified Defined Benefit Retirement Plans | U.S. Postretirement Plans | U.S. Postretirement Plans | U.S. Postretirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | European Defined Benefit Retirement Plans | United Kingdom defined benefit plan (the U.K. Plan) | Retiree Medical Plans | |||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | ||||||||||||||
Assumptions used to estimate the actuarial present value of benefit obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rates (as a percent) | ' | ' | ' | 2.00% | 3.20% | 0.10% | ' | 4.00% | ' | 3.80% | 2.75% | 3.85% | ' | ' | ' | 3.00% | 3.25% | 4.50% | 4.60% | 4.50% | 4.75% | ' | ' |
Rate of increase in compensation (as a percent) | ' | ' | 3.00% | ' | 3.00% | ' | 3.00% | ' | 5.80% | ' | ' | ' | 3.00% | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected long-term rate of return on plan assets (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 4.25% | 6.50% | 6.50% | 6.50% | ' | ' |
Impact of one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate on periodic pension expense in next fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
One-percentage-point increase in expected long-term rate of return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($1.40) | ' |
One-percentage-point increase in discount rate | ' | ' | -0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | ' |
One-percentage-point decrease in expected long-term rate of return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | ' |
One-percentage-point decrease in discount rate | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' |
Impact of one-percentage-point increase and a one-percentage-point decrease in the discount rate on retirement obligation as of December 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
One-percentage-point increase in discount rate | ' | ' | -1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21.2 | -0.4 |
One-percentage-point decrease in discount rate | ' | ' | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.8 | 0.4 |
Assumed annual rate of increase in the per capita cost of covered health care benefits for non-medical care (as a percent) | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed annual rate of increase in the per capita cost of covered health care benefits for medical care (as a percent) | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed annual rate of increase in the per capita cost of covered health care benefits for dental and vision care (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ultimate annual rate of increase in the per capita cost of covered health care benefits for medical care (as a percent) | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ultimate annual rate of increase in the per capita cost of covered health care benefits for dental and vision care (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of a one-percentage-point increase in the assumed health care cost trend on postretirement benefit obligation | 0.2 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of a one-percentage-point decrease in the assumed health care cost trend on postretirement benefit obligation | $0.20 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Early adoption of standard | ||||
Income before income taxes: | ' | ' | ' | ' |
U.S. | $149.80 | $137.40 | $106.30 | ' |
International | 112.8 | 100.3 | 69.2 | ' |
Income before income taxes and equity in earnings | 262.6 | 237.7 | 175.5 | ' |
Current: | ' | ' | ' | ' |
U.S. | 30.5 | 36.9 | 10.6 | ' |
International | 29.2 | 20.7 | 7.6 | ' |
Current provision for income taxes | 59.7 | 57.6 | 18.2 | ' |
Deferred: | ' | ' | ' | ' |
U.S. | 13.1 | 10.4 | 24.4 | ' |
International | 3.2 | 6.1 | -1 | ' |
Deferred provision for income taxes | 16.3 | 16.5 | 23.4 | ' |
Total provision for income taxes | 76 | 74.1 | 41.6 | ' |
U.S. federal statutory income tax rate (as a percent) | 35.00% | ' | ' | ' |
Reconciliation of provision for income taxes at U.S. federal statutory income tax rate to effective income tax rate | ' | ' | ' | ' |
Provision for taxes at U.S. federal statutory rate | 91.9 | 83.2 | 61.5 | ' |
State and local taxes, net of federal benefit | 2 | 2.2 | 2.2 | ' |
Foreign effective rate differential | -12.5 | -10.3 | -8.4 | ' |
Research and Development tax credits | -2.8 | -0.7 | -2 | ' |
Other | -2.6 | 0.5 | -0.2 | ' |
Tax Settlement | ' | 0.2 | -5.5 | ' |
Change in valuation allowance | ' | -1 | -6 | ' |
Total provision for income taxes | 76 | 74.1 | 41.6 | ' |
Assets | ' | ' | ' | ' |
Net operating loss carryforwards | 63.6 | 56.2 | ' | ' |
Unfunded pension liability and other postretirement obligations | 16 | 15.3 | ' | ' |
Advanced payments from foreign affiliates | 28.9 | 22.3 | ' | ' |
Tax credit carryforwards | 11.2 | 35.4 | ' | ' |
Stock based compensation | 14.4 | 12.6 | ' | ' |
Other comprehensive income | 6 | 14 | ' | ' |
Reserves and other | 18.9 | 14.7 | ' | ' |
Subtotal | 159 | 170.5 | ' | ' |
Valuation allowance | -62.3 | -49.4 | ' | ' |
Total assets | 96.7 | 121.1 | ' | ' |
Liabilities | ' | ' | ' | ' |
Accelerated depreciation | -63.4 | -50.1 | ' | ' |
Accelerated amortization | -9.2 | -8.2 | ' | ' |
Other | -0.8 | -0.2 | ' | ' |
Total liabilities | -73.4 | -58.5 | ' | ' |
Net deferred tax assets | 23.3 | 62.6 | ' | ' |
Deferred tax assets and deferred tax liabilities as presented in consolidated balance sheets | ' | ' | ' | ' |
Current deferred tax assets, net | 63.3 | 62.5 | ' | ' |
Current deferred tax liability, net | -1.4 | -0.2 | ' | ' |
Long-term deferred tax assets, net | 10.3 | 15.4 | ' | ' |
Long-term deferred tax liability, net | 48.9 | -15.1 | ' | ' |
Net deferred tax assets | 23.3 | 62.6 | ' | ' |
Effect of early adoption of standard | ' | ' | ' | ' |
Reduction in long-term deferred tax liability, net | ' | ' | ' | $21.40 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Income Taxes | ' | ' | ' |
Net change in the total valuation allowance | $12.90 | $10 | ' |
Tax credit carryforwards for U.S. tax purposes | 28.8 | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Unrecognized tax benefits that impact on effective tax rate | 39 | ' | ' |
Reduction of uncertain tax benefits due to the favorable settlement | ' | ' | 6.7 |
Activity related to unrecognized tax benefit | ' | ' | ' |
Balance at the beginning of the period | 32.6 | 12.5 | 20.1 |
Additions based on tax positions related to the current year | 5.2 | 1.7 | 1.5 |
Additions/(reductions) for tax positions of prior years | 5.7 | 19 | -1.1 |
Decreases relating to settlements with tax authorities / reduction of uncertain tax benefits due to the favorable settlement | ' | ' | -6.7 |
Expiration of the statute of limitations for the assessment of taxes | -1.3 | -0.8 | -1.6 |
Other, including currency translation | 0.5 | 0.2 | 0.3 |
Balance at the end of the period | 42.7 | 32.6 | 12.5 |
Interest expense (income) related to unrecognized tax benefit | 0.7 | 0.1 | -0.1 |
Interest accrued on unrecognized tax benefits | 1.6 | 0.9 | ' |
Interest related to the unrecognized tax benefit reversed | ' | 0.1 | ' |
Number of jurisdictions in which the company settled an audit with foreign tax authorities | ' | ' | 1 |
U.S. | Maximum | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Statute of limitations on years that can be open for examination | '5 years | ' | ' |
U.S. | Minimum | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Statute of limitations on years that can be open for examination | '3 years | ' | ' |
Foreign country | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards | 231.8 | ' | ' |
Valuation allowance on net operating losses | 214.8 | ' | ' |
Reduction of uncertain tax benefits due to the favorable settlement | ' | ' | 5.5 |
Activity related to unrecognized tax benefit | ' | ' | ' |
Decreases relating to settlements with tax authorities / reduction of uncertain tax benefits due to the favorable settlement | ' | ' | ($5.50) |
Foreign country | Maximum | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Statute of limitations on years that can be open for examination | '5 years | ' | ' |
Foreign country | Minimum | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Statute of limitations on years that can be open for examination | '3 years | ' | ' |
Spain | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Carryforward period | '18 years | ' | ' |
China | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' |
Carryforward period | '5 years | ' | ' |
Capital_Stock_Details
Capital Stock (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common stock: | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | 102,400,000 | 102,400,000 | 101,000,000 | 99,500,000 |
Activity under stock plans | ' | ' | 1,600,000 | 1,400,000 | 1,500,000 |
Balance, end of year | 104,000,000 | ' | 104,000,000 | 102,400,000 | 101,000,000 |
Treasury stock: | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | 2,500,000 | 2,500,000 | 2,200,000 | 2,200,000 |
Issued under stock plans | ' | ' | ' | ' | -500,000 |
Repurchased | 896,653 | 1,573,588 | 2,600,000 | 300,000 | 500,000 |
Balance, end of year | 5,100,000 | ' | 5,100,000 | 2,500,000 | 2,200,000 |
Common stock outstanding | 98,900,000 | ' | 98,900,000 | 99,900,000 | 98,800,000 |
Capital_Stock_Details_2
Capital Stock (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Jul. 31, 2013 | Dec. 31, 2012 |
Subsequent event | Maximum | Maximum | ||||||
Capital Stock | ' | ' | ' | ' | ' | ' | ' | ' |
Additional authorized amount of outstanding common stock to be repurchased | ' | ' | ' | ' | ' | ' | $150 | $50 |
Authorized amount to repurchase outstanding common stock | 40 | ' | ' | ' | ' | ' | ' | ' |
Aggregate shares repurchased | 896,653 | 1,573,588 | 2,600,000 | 300,000 | 500,000 | ' | ' | ' |
Total cost of shares repurchased | ' | $50 | $89.50 | $8.10 | $4.90 | ' | ' | ' |
Repurchased shares settled | ' | ' | ' | ' | ' | 148,990 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-based compensation expense | ' | ' | ' |
Stock-based compensation expense | $18.90 | $15.80 | $13.90 |
Tax benefit from stock options exercised during the period | 5.3 | 6.8 | 8.5 |
Non-qualified stock options | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Stock-based compensation expense | 3.8 | 4.5 | 4.1 |
RSUs | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Stock-based compensation expense | 6 | 6.5 | 5 |
PRSUs | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Stock-based compensation expense | 8.8 | 4.6 | 4.7 |
Employee stock purchase plan | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Stock-based compensation expense | $0.30 | $0.20 | $0.10 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
item | ||||
Assumptions used in determining the estimated fair value of stock options | ' | ' | ' | ' |
Dividends paid | $0 | $0 | $0 | ' |
Non-qualified stock options | ' | ' | ' | ' |
Summary of option activity | ' | ' | ' | ' |
Vesting period | '5 years 11 months 16 days | '6 years 3 months 4 days | '6 years 5 months 12 days | '5 years 1 month 28 days |
Expiration from date of grant | '10 years | ' | ' | ' |
Outstanding at the beginning of the period | 3.3 | 3.4 | 4.5 | ' |
Options granted | 0.3 | 0.5 | 0.6 | ' |
Options exercised | -0.6 | -0.6 | -1.6 | ' |
Options expired or forfeited | ' | ' | -0.1 | ' |
Outstanding at the end of the period | 3 | 3.3 | 3.4 | 4.5 |
Weighted-Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $15.67 | $13.55 | $10.84 | ' |
Options granted (in dollars per share) | $28.27 | $25.03 | $19.19 | ' |
Options exercised (in dollars per share) | $14.44 | $10.41 | $8.17 | ' |
Options expired or forfeited (in dollars per share) | ' | $21.82 | $12.93 | ' |
Outstanding at the end of the period (in dollars per share) | $17.30 | $15.67 | $13.55 | $10.84 |
Weighted-Average Remaining Contractual Life | ' | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 11 months 16 days | '6 years 3 months 4 days | '6 years 5 months 12 days | '5 years 1 month 28 days |
Other disclosures | ' | ' | ' | ' |
Aggregate intrinsic value of outstanding options | 82.5 | 37.4 | ' | ' |
Aggregate intrinsic value of exercisable options | 66.9 | 29.5 | ' | ' |
Total intrinsic value of options exercised | 10.9 | 9.1 | ' | ' |
Total number of options exercisable (in shares) | 2.2 | 2.2 | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $14.09 | $13.57 | ' | ' |
Total unrecognized compensation cost on nonvested options | $1.60 | $2.10 | ' | ' |
Information about outstanding non-qualified stock options | ' | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $7.83 | ' | ' | ' |
Exercise price, high end of range (in dollars per share) | $28.27 | ' | ' | ' |
Number of Options Outstanding | 3 | ' | ' | ' |
Weighted Average Remaining Life | '5 years 11 months 16 days | ' | ' | ' |
Weighted average exercise price of options Outstanding (in dollars per share) | $17.30 | ' | ' | ' |
Number of Options Exercisable (in shares) | 2.2 | ' | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $14.09 | ' | ' | ' |
Assumptions used in determining the estimated fair value of stock options | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | 1.08% | 0.83% | 1.88% | ' |
Expected option life, Executive | '6 years 3 months 25 days | '5 years 5 months 8 days | '4 years 10 months 2 days | ' |
Expected option life, Non-Executive | '4 years 9 months 18 days | '4 years 5 months 12 days | '4 years 8 months 16 days | ' |
Volatility (as a percent) | 40.12% | 45.76% | 44.08% | ' |
Weighted-average fair value per option granted | $11.07 | $10.24 | $7.65 | ' |
Period of historical option activity considered to determine expected option life | '10 years | ' | ' | ' |
Number of separate employee groups | 2 | ' | ' | ' |
Non-qualified stock options | Minimum | ' | ' | ' | ' |
Other disclosures | ' | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '1 year | ' | ' | ' |
Non-qualified stock options | Maximum | ' | ' | ' | ' |
Other disclosures | ' | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '3 years | ' | ' | ' |
Non-qualified stock options | Range of exercise prices $7.83 - $10.90 | ' | ' | ' | ' |
Information about outstanding non-qualified stock options | ' | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $7.83 | ' | ' | ' |
Exercise price, high end of range (in dollars per share) | $10.90 | ' | ' | ' |
Number of Options Outstanding | 1.1 | ' | ' | ' |
Weighted Average Remaining Life | '5 years 7 months 2 days | ' | ' | ' |
Weighted average exercise price of options Outstanding (in dollars per share) | $9.38 | ' | ' | ' |
Number of Options Exercisable (in shares) | 1.1 | ' | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $9.38 | ' | ' | ' |
Non-qualified stock options | Range of exercise prices $14.51 - $21.11 | ' | ' | ' | ' |
Information about outstanding non-qualified stock options | ' | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $14.51 | ' | ' | ' |
Exercise price, high end of range (in dollars per share) | $21.11 | ' | ' | ' |
Number of Options Outstanding | 1 | ' | ' | ' |
Weighted Average Remaining Life | '4 years 11 months 19 days | ' | ' | ' |
Weighted average exercise price of options Outstanding (in dollars per share) | $18.54 | ' | ' | ' |
Number of Options Exercisable (in shares) | 0.8 | ' | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $17.45 | ' | ' | ' |
Non-qualified stock options | Range of exercise prices $22.00 - $28.27 | ' | ' | ' | ' |
Information about outstanding non-qualified stock options | ' | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | $22 | ' | ' | ' |
Exercise price, high end of range (in dollars per share) | $28.27 | ' | ' | ' |
Number of Options Outstanding | 0.9 | ' | ' | ' |
Weighted Average Remaining Life | '7 years 6 months 29 days | ' | ' | ' |
Weighted average exercise price of options Outstanding (in dollars per share) | $25.79 | ' | ' | ' |
Number of Options Exercisable (in shares) | 0.3 | ' | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $23.54 | ' | ' | ' |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Cash received from stock option exercises and employee stock purchases | $9.80 | ' | ' |
Cash used for shares withheld to satisfy employee tax obligations for NQOs exercised and RSUs converted | 7.4 | ' | ' |
Shares authorized for future grant under stock plan (in shares) | 3,800,000 | ' | ' |
RSUs | ' | ' | ' |
Summary of the Company's RSU activity | ' | ' | ' |
Outstanding at the beginning of the period | 800,000 | 900,000 | 1,000,000 |
Granted | 200,000 | 300,000 | 300,000 |
Issued | -400,000 | -400,000 | -400,000 |
Outstanding at the end of the period | 600,000 | 800,000 | 900,000 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period | $18.90 | $14.49 | $11.76 |
Granted | $28.95 | $25.26 | $20.63 |
Issued | $15.70 | $12.10 | $12.51 |
Outstanding at the end of the period | $23.79 | $18.90 | $14.49 |
Unrecognized compensation cost | 3.1 | ' | ' |
RSUs | Minimum | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '1 year | ' | ' |
RSUs | Maximum | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '3 years | ' | ' |
PRSUs | ' | ' | ' |
Summary of the Company's RSU activity | ' | ' | ' |
Outstanding at the beginning of the period | 500,000 | 700,000 | 600,000 |
Granted | 200,000 | 100,000 | 100,000 |
Earned | 300,000 | 200,000 | ' |
Issued | -500,000 | -500,000 | ' |
Outstanding at the end of the period | 500,000 | 500,000 | 700,000 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period | $16.93 | $11.53 | $9.77 |
Granted | $28.27 | $25.03 | $19.02 |
Earned | $10.72 | $8 | ' |
Issued | $10.64 | $8.28 | ' |
Outstanding at the end of the period | $24.60 | $16.93 | $11.53 |
Unrecognized compensation cost | $3.70 | ' | ' |
Performance period | '3 years | '3 years | '3 years |
PRSUs | Minimum | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '1 year | ' | ' |
Performance period | '3 years | ' | ' |
Current projections and performance targets estimated additional performance shares issuable | 300,000 | ' | ' |
PRSUs | Maximum | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Period over which unrecognized compensation costs will be recognized | '3 years | ' | ' |
Employee stock purchase plan | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Maximum contribution by eligible employees as percentage of base earnings (as a percent) | 10.00% | ' | ' |
Common stock purchase price as percentage of fair market value (as a percent) | 85.00% | ' | ' |
Shares purchased under employee stock purchase plan (in shares) | 31,003 | 31,448 | ' |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income Per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $187.90 | $164.30 | $135.50 |
Basic net income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 100.2 | 98.8 |
Basic net income per common share (in dollars per share) | $0.47 | $0.49 | $0.49 | $0.43 | $0.37 | $0.40 | $0.48 | $0.40 | $1.88 | $1.64 | $1.37 |
Diluted net income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - Basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 100.2 | 98.8 |
Plus incremental shares from assumed conversions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | 0.8 | 0.9 |
Stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | 1 | 1 |
Weighted average common shares outstanding - Dilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 102.1 | 102 | 100.7 |
Diluted net income per common share (in dollars per share) | $0.46 | $0.48 | $0.48 | $0.43 | $0.36 | $0.39 | $0.47 | $0.39 | $1.84 | $1.61 | $1.35 |
Anti-dilutive securities excluded from computation of earnings per share amount (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.3 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | |||
item | U.S. dollars | Interest Rate Swap Agreements | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Cash flow hedges | Cash flow hedges | Cash flow hedges | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | |||||||||||
Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | Foreign Currency Forward Exchange Contracts | |||||||||||||||||||||||||||
Derivative Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floating rate obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75 | $98 | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | 81.57% | 0.67% | 1.03% | ' | ' | ' | ' | 0.82% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | 150 | 98 | ' | ' | ' | 187.1 | 201.2 | ' | ' | ' | ' | ' | ' |
Swap charges related to derivatives | ' | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid on termination and settlement of swaps | ' | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of derivative contracts entered | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value / fair value of derivative assets included in other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.5 | 3.6 | ' | ' | ' | 2.6 | 3.1 | ' |
Carrying value / fair value of derivative liabilities included in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | ' | 1 | ' | ' | 0.6 | 1.6 | ' | ' | ' | 0.1 | 0.5 | ' |
Gains (losses) in other comprehensive income, effective portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.9 | 6.4 | 2.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded in gross margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | -3.1 | 3.1 | ' | ' | ' |
Number of credit contingency features | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gains (losses) on derivative contracts not designated as hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.6 | 5.3 | -4.8 |
Accumulated other comprehensive income, change in fair value of foreign currency forward exchange contracts under hedge designations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) at beginning of period | 2.2 | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | -4.5 | -0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Losses) gains reclassified to net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | 2.4 | -2.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in fair value, net of tax of $2.8 million, $1.9 million and ($0.8) million in 2013, 2012 and 2011 respectively | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | 4.5 | -2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) at end of period, net of tax | 8.2 | 2.2 | ' | ' | ' | ' | ' | ' | ' | 7.2 | 2.4 | -4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in fair value, tax amount | 2.8 | 1.9 | -0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months | 4.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, tax | $2.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | Jun. 30, 2007 | Oct. 31, 2005 | 31-May-05 | Feb. 29, 2004 | Oct. 31, 2003 | Mar. 31, 2013 | Jun. 30, 2012 | Feb. 04, 2009 | Jun. 30, 2007 | Jun. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lower Passaic River Study Area | Lodi, New Jersey Site | Kent, Washington Site | Omega Chemical Corporation Superfund Site, Whittier, CA | Omega Chemical Corporation Superfund Site, Whittier, CA | ||||
entity | mi | entity | entity | entity | entity | entity | Minimum | Maximum | ||||||||||
option | ||||||||||||||||||
Environmental costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental remediation | $3.90 | $6.60 | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.70 | $0.80 | ' | $0.60 |
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | ' | ' | ' | ' | ' | ' | ' | ' | 66 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities who received notice from Environmental Protection Agency (EPA) | ' | ' | ' | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated cost for study of environmental conditions by EPA | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of participating entities financing the study of environmental conditions by EPA | ' | ' | ' | ' | ' | ' | 43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of financing for the study of environmental conditions by EPA | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities assuming responsibility for environmental study by EPA | ' | ' | ' | ' | ' | 73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the river for which interim remedial options are considered (in miles) | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interim remedial options | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated cost of the six interim remedial options for the lower eight miles of the river | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900 | 2,300 | ' | ' | ' | ' |
Number of PRPs entered into environmental activities with EPA | ' | ' | ' | 69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation activity, Cash expenditures | 3.6 | 3.4 | 5.7 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued additional charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' |
Minimum number of entities against whom third party complaint was filed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' |
Amount payable, if settlement is approved by the Court | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate contribution to waste tonnage (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.07% | ' |
Environmental remediation reserve activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning remediation accrual balance | 6.6 | 5 | 7.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 0.8 | ' | 0.6 |
Current period expenses | 0.9 | 5 | 3.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash expenditures | -3.6 | -3.4 | -5.7 | -20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending remediation accrual balance | 3.9 | 6.6 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 0.8 | ' | 0.6 |
Capital expenditure for environmental matters | 4.6 | 2.4 | 4.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate environmental accruals included in current other accrued liabilities | 3.4 | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount which is a better estimate within the range | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation accrual balance if accrued at high end of the range of possible outcomes | 6.5 | 9.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation spending charged to reserve balance | 3.6 | 3.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating costs relating to environmental compliance | ' | 5 | 2.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in accrued product warranty cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 5.1 | 5.7 | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty expense | 1.2 | 2.2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deductions and other | -1.8 | -2.8 | -0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | $4.50 | $5.10 | $5.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Cash_Flow_Details
Supplemental Cash Flow (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash paid for: | ' | ' | ' |
Interest | $7.60 | $12.60 | $15.50 |
Taxes | $49 | $23.40 | $10.20 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accumulated Other Comprehensive Loss | ' | ' |
Currency translation adjustments | $26.70 | $7.10 |
Net unrealized gains on financial instruments, net of tax | 8.2 | 2.2 |
Pension obligation adjustment, net of tax | -24.2 | -41.2 |
Accumulated other comprehensive income (loss) | 10.7 | -31.9 |
Tax effect of net unrealized gains (losses) on financial instruments | -1.8 | -0.1 |
Tax effect of pension obligation adjustment | $11.10 | $16 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $426.80 | $412.30 | $422.60 | $416.50 | $387.30 | $391.60 | $399.20 | $400.10 | $1,678.20 | $1,578.20 | $1,392.40 |
Other (income) expense, net | 67 | 69 | 71.9 | 63 | 54.3 | 60 | 73.9 | 60.6 | 270.9 | 248.8 | 192 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 59.3 | 57.2 | 55.3 |
Equity in earnings from affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | 0.7 | 1.6 |
Other income, net | ' | ' | ' | ' | ' | ' | -9.5 | ' | ' | -9.5 | -3 |
Segment assets | 1,836.10 | ' | ' | ' | 1,603.10 | ' | ' | ' | 1,836.10 | 1,603.10 | 1,376.10 |
Investments in affiliated companies | 23.3 | ' | ' | ' | 22.6 | ' | ' | ' | 23.3 | 22.6 | 21.7 |
Accrual basis additions to property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 206.5 | 241.3 | 184.5 |
Composite Materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other (income) expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 276.3 | 257.3 | 194.5 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 54.4 | 52.6 | 50.8 |
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14.5 | -5.7 |
Segment assets | 1,479.20 | ' | ' | ' | 1,295.40 | ' | ' | ' | 1,479.20 | 1,295.40 | 1,076 |
Accrual basis additions to property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 194.6 | 228.6 | 176.6 |
Engineered Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other (income) expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 58.9 | 50.6 | 51.6 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 4.7 | 4.5 | 4.3 |
Equity in earnings from affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | 0.7 | 1.6 |
Segment assets | 244 | ' | ' | ' | 215.2 | ' | ' | ' | 244 | 215.2 | 192.3 |
Investments in affiliated companies | 23.3 | ' | ' | ' | 22.6 | ' | ' | ' | 23.3 | 22.6 | 21.7 |
Accrual basis additions to property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 11.9 | 12.5 | 6.9 |
Corporate and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other (income) expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -64.3 | -59.1 | -54.1 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.1 | 0.2 |
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 2.7 |
Segment assets | 112.9 | ' | ' | ' | 92.5 | ' | ' | ' | 112.9 | 92.5 | 107.8 |
Accrual basis additions to property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 1 |
Operating Segments | Composite Materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,286.90 | 1,230.90 | 1,074.50 |
Operating Segments | Engineered Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 391.3 | 347.3 | 317.9 |
Intersegment Elimination | Composite Materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 56.8 | 53.8 |
Intersegment Elimination | Engineered Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | 2 | 1.6 |
Intersegment Elimination | Corporate and Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ($69.80) | ($58.80) | ($55.40) |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $426.80 | $412.30 | $422.60 | $416.50 | $387.30 | $391.60 | $399.20 | $400.10 | $1,678.20 | $1,578.20 | $1,392.40 |
Consolidated long-lived assets | 1,151.70 | ' | ' | ' | 972.2 | ' | ' | ' | 1,151.70 | 972.2 | 779.5 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 854.6 | ' | ' | ' | 733.5 | ' | ' | ' | 854.6 | 733.5 | 568.2 |
United States | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 871 | 801.4 | 721.5 |
United States | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 765.2 | 719.4 | 615.7 |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 297.1 | ' | ' | ' | 238.7 | ' | ' | ' | 297.1 | 238.7 | 211.3 |
International | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 807.2 | 776.8 | 670.9 |
International | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 913 | 858.8 | 776.7 |
France | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 55.8 | ' | ' | ' | 37.9 | ' | ' | ' | 55.8 | 37.9 | 36 |
France | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 321.1 | 302.9 | 257.6 |
France | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 146.1 | 144.4 | 132.3 |
Germany | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 135.2 | 128.2 | 87.7 |
Spain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 73.2 | ' | ' | ' | 68.2 | ' | ' | ' | 73.2 | 68.2 | 60.5 |
Spain | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 164.8 | 150.6 | 142.6 |
Spain | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 154.7 | 123.9 | 120.8 |
Austria | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 96.2 | 105 | 95.5 |
United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 92.6 | ' | ' | ' | 83.8 | ' | ' | ' | 92.6 | 83.8 | 68.4 |
United Kingdom | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 110.9 | 114.7 | 102.1 |
United Kingdom | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 81.4 | 82.2 | 80.2 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated long-lived assets | 75.5 | ' | ' | ' | 48.8 | ' | ' | ' | 75.5 | 48.8 | 46.4 |
Other | Net sales by Geography | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 114.2 | 103.6 | 73.1 |
Other | Net Sales by External Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $395.60 | $380.10 | $355.70 |
Segment_Information_Details_3
Segment Information (Details 3) (Net sales, Customer concentration) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Boeing company and its subcontractors | ' | ' | ' |
Segment information | ' | ' | ' |
Concentration percentage (as a percent) | 34.00% | 29.00% | 30.00% |
Boeing company and its subcontractors | Composite Materials | ' | ' | ' |
Segment information | ' | ' | ' |
Concentration percentage (as a percent) | 24.00% | 19.00% | 20.00% |
Boeing company and its subcontractors | Engineered Products | ' | ' | ' |
Segment information | ' | ' | ' |
Concentration percentage (as a percent) | 68.00% | 66.00% | 64.00% |
Airbus Group and its subcontractors | ' | ' | ' |
Segment information | ' | ' | ' |
Concentration percentage (as a percent) | 29.00% | 28.00% | 27.00% |
Airbus Group and its subcontractors | Composite Materials | ' | ' | ' |
Segment information | ' | ' | ' |
Concentration percentage (as a percent) | 35.00% | 34.00% | 33.00% |
Other_Income_net_Details
Other Income, net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Income, net | ' | ' | ' | ' |
Business interruption insurance settlement | ' | ' | ($9.60) | ' |
Gain on sale of land | ' | ' | -4.9 | ' |
Pension curtailment gain | ' | ' | ' | -5.7 |
Environmental expense | ' | ' | 5 | 2.7 |
Other Income, net | -9.5 | ' | -9.5 | -3 |
Reduction in projected plan obligation | ' | $1.60 | ' | ' |
Nonoperating_Expense_Details
Non-operating Expense (Details) (USD $) | 3 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Feb. 28, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
Senior secured credit facility - revolving loan due 2018 | Previous term Loan | Previous revolving credit line | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | 6.75% senior subordinated notes due 2015 | |||||
Other non-operating expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax charge incurred on call premium | $1 | ' | ' | ' | ' | ' | ' | ' | ' | $1.10 | $4.90 |
Maximum borrowing capacity | ' | ' | ' | ' | 600 | 82.5 | 360 | ' | ' | ' | ' |
Debt maturity period | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Senior subordinated notes redeemed | ' | ' | ' | ' | ' | ' | ' | $73.50 | $150 | ' | ' |
Interest rate (as a percent) | ' | 6.75% | 6.75% | 6.75% | ' | ' | ' | 6.75% | 6.75% | ' | ' |
Call premium (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.13% | 2.25% | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
item | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | |
Level 2 | Level 2 | Level 2 | Level 2 | ||
Interest Rate Swap Agreements | Foreign Currency Forward Exchange Contracts | ||||
Fair value of assets and liabilities | ' | ' | ' | ' | ' |
Derivative assets | ' | $14 | $6.60 | ' | $14 |
Derivative liabilities | ' | $1.30 | $2.70 | $0.60 | $0.70 |
Number of counterparties, which experienced significant downgrades | 0 | ' | ' | ' | ' |
Quarterly_Financial_and_Market2
Quarterly Financial and Market Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial and Market Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $426.80 | $412.30 | $422.60 | $416.50 | $387.30 | $391.60 | $399.20 | $400.10 | $1,678.20 | $1,578.20 | $1,392.40 |
Gross margin | 113.1 | 112.1 | 116.8 | 112 | 95.6 | 99.2 | 105.5 | 106.4 | 454 | 406.7 | 342.1 |
Other income, net | ' | ' | ' | ' | ' | ' | -9.5 | ' | ' | -9.5 | -3 |
Operating income | 67 | 69 | 71.9 | 63 | 54.3 | 60 | 73.9 | 60.6 | 270.9 | 248.8 | 192 |
Net income | $47.10 | $48.70 | $48.50 | $43.60 | $36.90 | $39.80 | $48 | $39.60 | ' | ' | ' |
Net income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.47 | $0.49 | $0.49 | $0.43 | $0.37 | $0.40 | $0.48 | $0.40 | $1.88 | $1.64 | $1.37 |
Diluted | $0.46 | $0.48 | $0.48 | $0.43 | $0.36 | $0.39 | $0.47 | $0.39 | $1.84 | $1.61 | $1.35 |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Value during the Period | $44.69 | $39.67 | $35.46 | $30.23 | $27.29 | $26.49 | $27.80 | $26.71 | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Value during the Period | $38.09 | $33.88 | $27.64 | $26.50 | $23.55 | $22.53 | $23.05 | $23.42 | ' | ' | ' |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' |
Changes in valuation allowances and reserves | ' | ' | ' |
Balance at beginning of year | $1.80 | $1.20 | $1.50 |
Charged to expenses/(recovery) | ' | 1.1 | ' |
Deductions and other | -0.9 | -0.5 | -0.3 |
Balance at end of year | 0.9 | 1.8 | 1.2 |
Valuation allowance for deferred tax assets | ' | ' | ' |
Changes in valuation allowances and reserves | ' | ' | ' |
Balance at beginning of year | 49.4 | 39.4 | 36.5 |
Charged to expenses/(recovery) | 10.5 | 9 | 10.5 |
Deductions and other | -2.4 | 1 | -7.6 |
Balance at end of year | $62.30 | $49.40 | $39.40 |