Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 28, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | |
Class A common stock | Class B common stock | |||
Entity Registrant Name | 'WATTS WATER TECHNOLOGIES INC | ' | ' | ' |
Entity Central Index Key | '0000795403 | ' | ' | ' |
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 | ' | $1,293,553,373 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 28,734,210 | 6,489,290 |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
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 | $1,473.50 | $1,427.40 | $1,407.40 |
Cost of goods sold | 947 | 913.9 | 899 |
GROSS PROFIT | 526.5 | 513.5 | 508.4 |
Selling, general and administrative expenses | 405.7 | 381 | 371.5 |
Restructuring and other charges, net | 8.7 | 4.2 | 8.8 |
(Gain on) adjustment to disposal of business | -0.6 | 1.6 | -7.7 |
Goodwill and other long-lived asset impairment charges | 1.2 | 3.4 | 2.3 |
OPERATING INCOME | 111.5 | 123.3 | 133.5 |
Other (income) expense: | ' | ' | ' |
Interest income | -0.6 | -0.7 | -1 |
Interest expense | 21.5 | 24.6 | 25.8 |
Other expense (income), net | 2.8 | -0.8 | 0.8 |
Total other expense | 23.7 | 23.1 | 25.6 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 87.8 | 100.2 | 107.9 |
Provision for income taxes | 26.9 | 29.8 | 30.7 |
NET INCOME FROM CONTINUING OPERATIONS | 60.9 | 70.4 | 77.2 |
Loss from discontinued operations, net of taxes | -2.3 | -2 | -10.8 |
NET INCOME | $58.60 | $68.40 | $66.40 |
Income (loss) per share: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.72 | $1.96 | $2.07 |
Discontinued operations (in dollars per share) | ($0.06) | ($0.06) | ($0.29) |
NET INCOME (in dollars per share) | $1.65 | $1.90 | $1.78 |
Weighted average number of shares (in shares) | 35.5 | 36 | 37.3 |
Income (loss) per share: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.71 | $1.95 | $2.06 |
Discontinued operations (in dollars per share) | ($0.07) | ($0.05) | ($0.28) |
NET INCOME (in dollars per share) | $1.65 | $1.90 | $1.78 |
Weighted average number of shares (in shares) | 35.6 | 36.1 | 37.5 |
Dividends per share (in dollars per share) | $0.50 | $0.44 | $0.44 |
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 | $58.60 | $68.40 | $66.40 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 23.5 | 14.3 | -16.4 |
Foreign currency adjustment for sale of foreign entity | ' | ' | -8.6 |
Defined benefit pension plans, net of tax: | ' | ' | ' |
Net loss, net of tax benefits of $0.8, $4.1, and $2.7 in 2013, 2012 and 2011, respectively | -1.3 | -6.5 | -4.2 |
Amortization of prior service cost included in net periodic pension cost, net of tax expense of $0.1 in 2011 | ' | ' | 0.2 |
Amortization of net losses included in net periodic pension cost, net of tax expense of $0.4, $0.2, and $1.0 in 2013, 2012 and 2011, respectively | 0.6 | 0.4 | 1.7 |
Reduction in obligation related to pension curtailment, net of tax expense of $5.4 in 2011 | ' | ' | 8.6 |
Defined benefit pension plans, net of tax | -0.7 | -6.1 | 6.3 |
Other comprehensive income (loss) | 22.8 | 8.2 | -18.7 |
Comprehensive income | $81.40 | $76.60 | $47.70 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Net loss, tax benefits | $0.80 | $4.10 | $2.70 |
Amortization of prior service cost included in net periodic pension cost, tax expense | ' | ' | 0.1 |
Amortization of net losses included in net periodic pension cost, tax expense | 0.4 | 0.2 | 1 |
Reduction in obligation related to pension curtailment, tax expense | ' | ' | $5.40 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $267.90 | $271.30 |
Short-term investment securities | ' | 2.1 |
Trade accounts receivable, less allowance for doubtful accounts of $9.7 in 2013 and $9.5 in 2012 | 212.9 | 206.2 |
Inventories, net | 310.2 | 288 |
Prepaid expenses and other assets | 35 | 22.5 |
Deferred income taxes | 29.8 | 21.5 |
Assets held for sale | 1.3 | ' |
Assets of discontinued operations | ' | 11.7 |
Total Current Assets | 857.1 | 823.3 |
PROPERTY, PLANT AND EQUIPMENT, NET | 219.9 | 221.7 |
OTHER ASSETS: | ' | ' |
Goodwill | 514.8 | 504 |
Intangible assets, net | 132.4 | 145.4 |
Deferred income taxes | 3.8 | 4.8 |
Other, net | 12.2 | 9.8 |
TOTAL ASSETS | 1,740.20 | 1,709 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 145.6 | 131.3 |
Accrued expenses and other liabilities | 135.2 | 116.6 |
Accrued compensation and benefits | 43.9 | 41.9 |
Current portion of long-term debt | 2.2 | 77.1 |
Liabilities of discontinued operations | ' | 1.5 |
Total Current Liabilities | 326.9 | 368.4 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 305.5 | 307.5 |
DEFERRED INCOME TAXES | 45.9 | 44.9 |
OTHER NONCURRENT LIABILITIES | 59.8 | 48.7 |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding | ' | ' |
Additional paid-in capital | 473.5 | 448.7 |
Retained earnings | 513.1 | 498.1 |
Accumulated other comprehensive income (loss) | 12 | -10.8 |
Total Stockholders' Equity | 1,002.10 | 939.5 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,740.20 | 1,709 |
Class A common stock | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common Stock | 2.9 | 2.9 |
Class B common stock | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common Stock | $0.60 | $0.60 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Trade accounts receivable, allowance for doubtful accounts (in dollars) | $9.70 | $9.50 |
Preferred Stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Class A common stock | ' | ' |
Common Stock, par value (in dollars per share) | $0.10 | $0.10 |
Common Stock, shares authorized | 80,000,000 | 80,000,000 |
Common Stock, votes per share (Number of votes) | 1 | 1 |
Common Stock, issued shares | 28,824,779 | 28,673,639 |
Common Stock, outstanding shares | 28,824,779 | 28,673,639 |
Class B common stock | ' | ' |
Common Stock, par value (in dollars per share) | $0.10 | $0.10 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, votes per share (Number of votes) | 10 | 10 |
Common Stock, issued shares | 6,489,290 | 6,588,680 |
Common Stock, outstanding shares | 6,489,290 | 6,588,680 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Class A | Class B |
In Millions, except Share data, unless otherwise specified | Common Stock | Common Stock | ||||
Balance at Dec. 31, 2010 | $901.50 | $405.20 | $492.90 | ($0.30) | $3 | $0.70 |
Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | ' | 30,102,677 | 6,953,680 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 47.7 | ' | 66.4 | -18.7 | ' | ' |
Shares of Class A common stock issued upon the exercise of stock options | 5.4 | 5.4 | ' | ' | ' | ' |
Shares of Class A common stock issued upon the exercise of stock options (in shares) | ' | ' | ' | ' | 247,870 | ' |
Stock-based compensation | 8.3 | 8.3 | ' | ' | ' | ' |
Stock repurchase | -27.2 | ' | -27.1 | ' | -0.1 | ' |
Stock repurchase (in shares) | ' | ' | ' | ' | -1,000,000 | ' |
Issuance of net shares of restricted Class A common stock | -0.5 | ' | -0.5 | ' | ' | ' |
Issuance of net shares of restricted Class A common stock (in shares) | ' | ' | ' | ' | 79,438 | ' |
Net change in restricted stock units | 0.9 | 1.2 | -0.3 | ' | ' | ' |
Net change in restricted stock units (in shares) | ' | ' | ' | ' | 41,429 | ' |
Common stock dividends | -16.3 | ' | -16.3 | ' | ' | ' |
Balance at Dec. 31, 2011 | 919.8 | 420.1 | 515.1 | -19 | 2.9 | 0.7 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | ' | 29,471,414 | 6,953,680 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 76.6 | ' | 68.4 | 8.2 | ' | ' |
Shares of Class B common stock converted to Class A common stock | ' | ' | ' | ' | 0.1 | -0.1 |
Shares of Class B common stock converted to Class A common stock (in shares) | ' | ' | ' | ' | 365,000 | -365,000 |
Shares of Class A common stock issued upon the exercise of stock options | 17.8 | 17.7 | ' | ' | 0.1 | ' |
Shares of Class A common stock issued upon the exercise of stock options (in shares) | ' | ' | ' | ' | 589,798 | ' |
Stock-based compensation | 6.6 | 6.6 | ' | ' | ' | ' |
Stock repurchase | -65.8 | ' | -65.6 | ' | -0.2 | ' |
Stock repurchase (in shares) | ' | ' | ' | ' | -2,000,000 | ' |
Issuance of net shares of restricted Class A common stock | -0.8 | ' | -0.8 | ' | ' | ' |
Issuance of net shares of restricted Class A common stock (in shares) | ' | ' | ' | ' | 141,767 | ' |
Net change in restricted stock units | 1.3 | 4.3 | -3 | ' | ' | ' |
Net change in restricted stock units (in shares) | ' | ' | ' | ' | 105,660 | ' |
Common stock dividends | -16 | ' | -16 | ' | ' | ' |
Balance at Dec. 31, 2012 | 939.5 | 448.7 | 498.1 | -10.8 | 2.9 | 0.6 |
Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | 28,673,639 | 6,588,680 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 81.4 | ' | 58.6 | 22.8 | ' | ' |
Shares of Class B common stock converted to Class A common stock (in shares) | ' | ' | ' | ' | 99,390 | -99,390 |
Shares of Class A common stock issued upon the exercise of stock options | 11.9 | 11.9 | ' | ' | ' | ' |
Shares of Class A common stock issued upon the exercise of stock options (in shares) | ' | ' | ' | ' | 361,094 | ' |
Stock-based compensation | 9.6 | 9.6 | ' | ' | ' | ' |
Stock repurchase | -23 | ' | -23 | ' | ' | ' |
Stock repurchase (in shares) | ' | ' | ' | ' | -453,880 | ' |
Issuance of net shares of restricted Class A common stock | -1.6 | ' | -1.6 | ' | ' | ' |
Issuance of net shares of restricted Class A common stock (in shares) | ' | ' | ' | ' | 75,592 | ' |
Net change in restricted stock units | 2 | 3.3 | -1.3 | ' | ' | ' |
Net change in restricted stock units (in shares) | ' | ' | ' | ' | 68,944 | ' |
Common stock dividends | -17.7 | ' | -17.7 | ' | ' | ' |
Balance at Dec. 31, 2013 | $1,002.10 | $473.50 | $513.10 | $12 | $2.90 | $0.60 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | 28,824,779 | 6,489,290 |
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 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $58.60 | $68.40 | $66.40 |
Loss from discontinued operations, net of taxes | -2.3 | -2 | -10.8 |
NET INCOME FROM CONTINUING OPERATIONS | 60.9 | 70.4 | 77.2 |
Adjustments to reconcile income from continuing operations to net cash provided by continuing operating activities: | ' | ' | ' |
Depreciation | 34.2 | 33.1 | 32.1 |
Amortization of intangibles | 14.7 | 15.4 | 15.8 |
(Gain) loss on disposal and impairment of goodwill, property, plant and equipment and other | 1.5 | 4.1 | -9.8 |
Stock-based compensation | 9.6 | 6.6 | 8.3 |
Deferred income taxes | -6.8 | ' | 3.7 |
Changes in operating assets and liabilities, net of effects from business acquisitions and divestures: | ' | ' | ' |
Accounts receivable | -3.5 | 2 | 3.1 |
Inventories | -17.3 | -7.1 | 3.1 |
Prepaid expenses and other assets | -14.5 | 1.1 | -8.9 |
Accounts payable, accrued expenses and other liabilities | 39.5 | 4.7 | 1.5 |
Net cash provided by continuing operations | 118.3 | 130.3 | 126.1 |
INVESTING ACTIVITIES | ' | ' | ' |
Additions to property, plant and equipment | -27.7 | -30.5 | -22.5 |
Proceeds from the sale of property, plant and equipment | 1.5 | 0.2 | 0.8 |
Investments in securities | ' | -2.1 | -8.1 |
Proceeds from sale of asset held for sale | ' | 3 | ' |
Proceeds from sale of securities | 2.1 | 4.1 | 8.1 |
Purchase of intangible assets and other | ' | -0.1 | -0.9 |
Business acquisitions, net of cash acquired | ' | -17.5 | -165.5 |
Net cash used in investing activities | -24.1 | -42.9 | -188.1 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from long-term debt | ' | 9.2 | 184 |
Payments of long-term debt | -77.2 | -23.9 | -168 |
Payment of capital leases and other | -4.8 | -2.9 | -2.6 |
Proceeds from share transactions under employee stock plans | 11.9 | 17.8 | 5.4 |
Tax benefit of stock awards exercised | 1.3 | 0.9 | 0.8 |
Payments to repurchase common stock | -23 | -65.8 | -27.2 |
Dividends | -17.7 | -16 | -16.3 |
Net cash used in financing activities | -109.5 | -80.7 | -23.9 |
Effect of exchange rate changes on cash and cash equivalents | 4.1 | 3.2 | 7.3 |
Net cash (used in) provided by operating activities of discontinued operations | -0.1 | 3.2 | -0.2 |
Net cash provided by (used in) investing activities of discontinued operations | 7.9 | 8.3 | -0.2 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -3.4 | 21.4 | -79 |
Cash and cash equivalents at beginning of year | 271.3 | 249.9 | 328.9 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 267.9 | 271.3 | 249.9 |
Acquisition of businesses: | ' | ' | ' |
Fair value of assets acquired | ' | 25.2 | 225.5 |
Cash paid, net of cash acquired | ' | 17.5 | 165.5 |
Liabilities assumed | ' | 7.7 | 60 |
Acquisitions of fixed assets under financing agreement | 3.7 | 1.1 | 4.3 |
Issuance of stock under management stock purchase plan | 0.7 | 0.5 | 0.4 |
CASH PAID FOR: | ' | ' | ' |
Interest | 21.5 | 23.9 | 24.7 |
Taxes | $32.70 | $27.10 | $35.50 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business | ' |
Description of Business | ' |
(1) Description of Business | |
Watts Water Technologies, Inc. (the Company), through its subsidiaries, designs, manufactures and sells an extensive line of water safety and flow control products primarily for the water quality, water conservation, water safety and water flow control markets located predominantly in the Americas and Europe, Middle East and Africa (EMEA) with a presence in Asia Pacific. | |
Accounting_Policies
Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Accounting Policies | ' | ||||||||||||||||||||||||||||
Accounting Policies | ' | ||||||||||||||||||||||||||||
(2) Accounting Policies | |||||||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its majority and wholly owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |||||||||||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||||||||||
Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of certificates of deposit and money market funds, for which the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||
Investment securities at December 31, 2012 consisted of certificates of deposit with original maturities of greater than three months. The Company did not hold investment securities at December 31, 2013. | |||||||||||||||||||||||||||||
Trading securities are recorded at fair value. The Company determines the fair value by obtaining market value when available from quoted prices in active markets. In the absence of quoted prices, the Company uses other inputs to determine the fair value of the investments. All changes in the fair value as well as any realized gains and losses from the sale of the securities are recorded when incurred to the consolidated statements of operations as other income or expense. | |||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||||||||||
Allowance for doubtful accounts includes reserves for bad debts, sales returns and allowances and cash discounts. The Company analyzes the aging of accounts receivable, individual accounts receivable, historical bad debts, concentration of receivables by customer, customer credit worthiness, current economic trends, and changes in customer payment terms. The Company specifically analyzes individual accounts receivable and establishes specific reserves against financially troubled customers. In addition, factors are developed in certain regions utilizing historical trends of sales and returns and allowances and cash discount activities to derive a reserve for returns and allowances and cash discounts. | |||||||||||||||||||||||||||||
Concentration of Credit | |||||||||||||||||||||||||||||
The Company sells products to a diversified customer base and, therefore, has no significant concentrations of credit risk. In 2013 and 2012, no customer accounted for 10% or more of the Company's total sales. | |||||||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||||||
Inventories are stated at the lower of cost (using primarily the first-in, first-out method) or market. Market value is determined by replacement cost or net realizable value. Historical usage is used as the basis for determining the reserve for excess or obsolete inventories. | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||||||
Goodwill is recorded when the consideration paid for acquisitions exceeds the fair value of net tangible and intangible assets acquired. Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather are tested at least annually for impairment. The test for 2013 was performed as of October 27, 2013. | |||||||||||||||||||||||||||||
Impairment of Goodwill and Long-Lived Assets | |||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill by geographic segment are as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2013 | ||||||||||||||||||||||
2013 | the | Translation | 2013 | 2013 | the Period | 2013 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 225.6 | $ | — | $ | (0.9 | ) | $ | 224.7 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 200.2 | |||||||||
EMEA | 289.7 | — | 11.6 | 301.3 | — | — | — | 301.3 | |||||||||||||||||||||
Asia Pacific | 12.9 | — | 0.4 | 13.3 | — | — | — | 13.3 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 528.2 | $ | — | $ | 11.1 | $ | 539.3 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 514.8 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2012 | ||||||||||||||||||||||
2012 | the | Translation | 2012 | 2012 | the Period | 2012 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 213.8 | $ | 11.7 | $ | 0.1 | $ | 225.6 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 201.4 | ||||||||||
EMEA | 281.1 | — | 8.6 | 289.7 | — | — | — | 289.7 | |||||||||||||||||||||
Asia Pacific | 12.7 | — | 0.2 | 12.9 | — | — | — | 12.9 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 507.6 | $ | 11.7 | $ | 8.9 | $ | 528.2 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 504 | ||||||||||
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Goodwill is tested for impairment at least annually or more frequently if events or circumstances indicate that it is "more likely than not" that goodwill might be impaired, such as a change in business conditions. The Company performs its annual goodwill impairment assessment in the fourth quarter of each year. | |||||||||||||||||||||||||||||
The Company determined that the future prospects for its Blue Ridge Atlantic Enterprises, Inc. (BRAE) reporting unit in the Americas were lower than originally estimated as future sales growth expectations had been reduced a number of times since the 2010 acquisition of BRAE. The Company recorded pre-tax goodwill impairment charges of $0.3 million, $1.0 million and $1.2 million in 2013, 2012 and 2011, respectively, for that reporting unit. The BRAE goodwill balance was fully impaired in 2013. The goodwill impairment charges were offset by the reduction in anticipated earnout payments of equal amounts, with no remaining earnout liability as of December 31, 2013. The Company estimated the fair value of the reporting unit using the expected present value of future cash flows. | |||||||||||||||||||||||||||||
As of October 28, 2012, which was the previous annual impairment analysis date, the fair value of the EMEA reporting unit exceeded the carrying value by approximately 40%. The EMEA reporting unit represents the EMEA geographic segment excluding the Blücher reporting unit. During the six months ended June 30, 2013, operating results for the EMEA reporting unit had been hindered by the downturn in the economic environment in Europe and continued to fall below the expected operating results and growth rates used in the calculation of the present value of future cash flow projections, triggering the decision to update the impairment analysis. As a result of the fair value assessment, it was determined that the fair value of the EMEA reporting unit decreased from the prior year but continued to exceed its carrying value as of June 30, 2013. An updated fair value assessment was performed at the annual impairment date of October 27, 2013. The updated fair value assessment determined that the fair value of the EMEA reporting continued to exceed its carrying value by approximately 20% in 2013. | |||||||||||||||||||||||||||||
On January 31, 2012, the Company completed the acquisition of tekmar Control Systems (tekmar) in a share purchase transaction. The initial purchase price paid was CAD $18.0 million, with post-closing adjustments related to working capital and an earnout based on the attainment of certain future earnings levels. The initial purchase price paid was equal to approximately $17.8 million based on the exchange rate of Canadian dollar to U.S. dollar as of January 31, 2012. The total purchase price will not exceed CAD $26.2 million. The Company accounted for the transaction as a business combination. In January 2013, the Company completed a purchase price allocation that resulted in the recognition of $11.7 million in goodwill and $10.1 million in intangible assets (see Note 5). | |||||||||||||||||||||||||||||
Indefinite-lived intangibles are tested for impairment at least annually or more frequently if events or circumstances, such as a change in business conditions, indicate that it is "more likely than not" that the intangible asset might be impaired. The Company performs its annual indefinite-lived intangibles impairment assessment in the fourth quarter of each year. For the 2013, 2012 and 2011 impairment assessments, the Company performed quantitative assessments for all indefinite-lived intangible assets. The methodology employed was the relief from royalty method, a subset of the income approach. Based on the results of the assessment the Company recognized non-cash pre-tax impairment charges in 2013, 2012 and 2011 of approximately $0.7 million, $0.4 million and $1.4 million, respectively. The impairment charge of $0.7 million in 2013 consists of a $0.3 million impairment charge for a trade name in the Americas segment and a $0.4 million impairment charge for two trade names in the EMEA segment. The gross carrying amount in the table below reflects the impairment charges. | |||||||||||||||||||||||||||||
Intangible assets with estimable lives and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of intangible assets with estimable lives and other long-lived assets is measured by a comparison of the carrying amount of an asset or asset group to future net undiscounted pretax cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset or asset group exceeds the related estimated fair value. Estimated fair value is based on either discounted future pretax operating cash flows or appraised values, depending on the nature of the asset. The Company determines the discount rate for this analysis based on the weighted average cost of capital based on the market and guideline public companies for the related businesses and does not allocate interest charges to the asset or asset group being measured. Judgment is required to estimate future operating cash flows. | |||||||||||||||||||||||||||||
Intangible assets include the following: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Patents | $ | 16.6 | $ | (12.6 | ) | $ | 4 | $ | 16.5 | $ | (11.7 | ) | $ | 4.8 | |||||||||||||||
Customer relationships | 133 | (76.4 | ) | 56.6 | 131.4 | (65.9 | ) | 65.5 | |||||||||||||||||||||
Technology | 26.9 | (10.9 | ) | 16 | 27.4 | (9.0 | ) | 18.4 | |||||||||||||||||||||
Trade names | 13.7 | (3.0 | ) | 10.7 | 13.5 | (1.8 | ) | 11.7 | |||||||||||||||||||||
Other | 8.8 | (5.6 | ) | 3.2 | 8.7 | (5.5 | ) | 3.2 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total amortizable intangibles | 199 | (108.5 | ) | 90.5 | 197.5 | (93.9 | ) | 103.6 | |||||||||||||||||||||
Indefinite-lived intangible assets | 41.9 | — | 41.9 | 41.8 | — | 41.8 | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total | $ | 240.9 | $ | (108.5 | ) | $ | 132.4 | $ | 239.3 | $ | (93.9 | ) | $ | 145.4 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Aggregate amortization expense for amortized intangible assets for 2013, 2012 and 2011 was $14.7 million, $15.4 million and $15.8 million, respectively. Additionally, future amortization expense on amortizable intangible assets is expected to be $14.9 million for 2014, $14.7 million for 2015, $14.2 million for 2016, $13.8 million for 2017, and $10.0 million for 2018. Amortization expense is provided on a straight-line basis over the estimated useful lives of the intangible assets. The weighted-average remaining life of total amortizable intangible assets is 8.4 years. Patents, customer relationships, technology, trade names and other amortizable intangibles have weighted-average remaining lives of 5.6 years, 5.6 years, 11.4 years, 10.9 years and 40.2 years, respectively. Indefinite-lived intangible assets primarily include trade names and trademarks. | |||||||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, which range from 10 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment. | |||||||||||||||||||||||||||||
Taxes, Other than Income Taxes | |||||||||||||||||||||||||||||
Taxes assessed by governmental authorities on sale transactions are recorded on a net basis and excluded from sales in the Company's consolidated statements of operations. | |||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||||||||||||||
The Company recognizes tax benefits when the item in question meets the more-likely-than-not (greater than 50% likelihood of being sustained upon examination by the taxing authorities) threshold. During 2013, due to the completion of the federal audit, unrecognized tax benefits decreased by approximately $3.7 million related to an adjustment to temporary differences that did not impact overall income tax expense. | |||||||||||||||||||||||||||||
As of December 31, 2013, the Company had gross unrecognized tax benefits of approximately $0.8 million, approximately $0.2 million of which, if recognized, would affect the effective tax rate. The difference between the amount of unrecognized tax benefits and the amount that would affect the effective tax rate consists of the federal tax benefit of state income tax items as well as a liability related to the 2011 acquisition of Danfoss Socla S.A.S (Socla) in France that will be recoverable under the terms of the acquisition agreement. | |||||||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4.6 | |||||||||||||||||||||||||||
Increases related to prior year tax positions | 0.1 | ||||||||||||||||||||||||||||
Decreases related to prior year tax positions | (0.2 | ) | |||||||||||||||||||||||||||
Settlements | (3.7 | ) | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 0.8 | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
In February 2013, the United States Internal Revenue Service concluded an audit of the Company's 2009, 2010 and 2011 tax years. The Company conducts business in a variety of locations throughout the world resulting in tax filings in numerous domestic and foreign jurisdictions. The Company is subject to tax examinations regularly as part of the normal course of business. The Company's major jurisdictions are the U.S., Canada, China, Netherlands, U.K., Germany, Italy and France. With few exceptions the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2007. The statute of limitations in our major jurisdictions is open in the U.S. for the year 2010 and later; in Canada for 2009 and later; and in the Netherlands for 2012 and later. | |||||||||||||||||||||||||||||
The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. | |||||||||||||||||||||||||||||
Foreign Currency Translation | |||||||||||||||||||||||||||||
The financial statements of subsidiaries located outside the United States generally are measured using the local currency as the functional currency. Balance sheet accounts, including goodwill, of foreign subsidiaries are translated into United States dollars at year-end exchange rates. Income and expense items are translated at weighted average exchange rates for each period. Net translation gains or losses are included in other comprehensive income, a separate component of stockholders' equity. The Company does not provide for U.S. income taxes on foreign currency translation adjustments since it does not provide for such taxes on undistributed earnings of foreign subsidiaries. Gains and losses from foreign currency transactions of these subsidiaries are included in net earnings. | |||||||||||||||||||||||||||||
Stock-Based Compensation, Former Chief Executive Officer Separation Costs and Former Chief Financial Officer Retention Costs | |||||||||||||||||||||||||||||
The Company records compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards. Stock-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. The benefits associated with tax deductions in excess of recognized compensation cost are reported as a financing cash flow. | |||||||||||||||||||||||||||||
At December 31, 2013, the Company had two stock-based compensation plans with total unrecognized compensation costs related to unvested stock-based compensation arrangements of approximately $20.8 million and a total weighted average remaining term of 2.5 years. Included in the $20.8 million of unrecognized compensation costs is $4.5 million related to equity awards previously granted to David J. Coghlan, the Company's former Chief Executive Officer, which will not be recognized. Refer to Note 18 for details on Mr. Coghlan's resignation on January 9, 2014. For 2013, 2012 and 2011, the Company recognized compensation costs related to stock-based programs of approximately $9.6 million, $5.8 million and $5.3 million, respectively, in selling, general and administrative expenses. The Company recorded approximately $1.2 million of tax benefits during 2013 and $0.7 million in 2012 and 2011 for the compensation expense relating to its stock options. For 2013, 2012 and 2011, the Company recorded approximately $1.9 million, $1.4 million and $1.5 million, respectively, of tax benefit for its other stock-based plans. For 2013, 2012 and 2011, the recognition of total stock-based compensation expense impacted both basic and diluted net income per common share by $0.14, $0.10 and $0.09, respectively. | |||||||||||||||||||||||||||||
On May 23, 2012, William C. McCartney resigned from his position as Chief Financial Officer of the Company. Pursuant to the retention agreement entered into with Mr. McCartney, the Company recorded a charge of $1.5 million over the retention period, consisting of cash payments of $0.7 million and a non-cash charge of $0.8 million for the modification of stock options and restricted stock awards | |||||||||||||||||||||||||||||
On January 26, 2011, Patrick S. O'Keefe resigned from his positions as Chief Executive Officer, President and Director. Pursuant to a separation agreement, the Company recorded a charge of $6.3 million consisting of $3.3 million in expected cash severance and a non-cash charge of $3.0 million for the modification of stock options and restricted stock awards. | |||||||||||||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||||||||
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding. The calculation of diluted income per share assumes the conversion of all dilutive securities (see Note 12). | |||||||||||||||||||||||||||||
Net income and number of shares used to compute net income per share, basic and assuming full dilution, are reconciled below: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Net | Shares | Per | Net | Shares | Per | Net | Shares | Per | |||||||||||||||||||||
Income | Share | Income | Share | Income | Share | ||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||
(Amounts in millions, except per share information) | |||||||||||||||||||||||||||||
Basic EPS | $ | 58.6 | 35.5 | $ | 1.65 | $ | 68.4 | 36 | $ | 1.9 | $ | 66.4 | 37.3 | $ | 1.78 | ||||||||||||||
Dilutive securities, principally common stock options | — | 0.1 | — | — | 0.1 | — | — | 0.2 | — | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | $ | 58.6 | 35.6 | $ | 1.65 | $ | 68.4 | 36.1 | $ | 1.9 | $ | 66.4 | 37.5 | $ | 1.78 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The computation of diluted net income per share for the years ended December 31, 2013, 2012 and 2011 excludes the effect of the potential exercise of options to purchase approximately 0.2 million, 0.2 million and 0.7 million shares, respectively, because the exercise price of the option was greater than the average market price of the Class A common stock and the effect would have been anti-dilutive. | |||||||||||||||||||||||||||||
On April 30, 2013, the Board of Directors authorized the repurchase of up to $90.0 million of the Company's Class A common stock from time to time on the open market or in privately negotiated transactions. The timing and number of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of any Rule 10b5-1 plan the Company may enter into with respect to the repurchase program. During the year ended December 31, 2013, the Company repurchased approximately 454,000 shares of Class A common stock at a cost of approximately $23.0 million. | |||||||||||||||||||||||||||||
On May 16, 2012, the Board of Directors authorized a stock repurchase program of up to two million shares of the Company's Class A common stock. The stock repurchase program was completed in July 2012, as the Company repurchased the entire two million shares of Class A common stock at a cost of approximately $65.8 million. | |||||||||||||||||||||||||||||
On August 2, 2011, the Board of Directors authorized a stock repurchase program. Under the program, the Company was authorized to repurchase up to one million shares of our Class A common stock. During the three months ended October 2, 2011, the Company repurchased the entire one million shares at a cost of $27.2 million. | |||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||
In the normal course of business, the Company manages risks associated with commodity prices, foreign exchange rates and interest rates through a variety of strategies, including the use of hedging transactions, executed in accordance with the Company's policies. The Company's hedging transactions include, but are not limited to, the use of various derivative financial and commodity instruments. As a matter of policy, the Company does not use derivative instruments unless there is an underlying exposure. Any change in value of the derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. The Company does not use derivative instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
Derivative instruments may be designated and accounted for as either a hedge of a recognized asset or liability (fair value hedge) or a hedge of a forecasted transaction (cash flow hedge). For a fair value hedge, both the effective and ineffective portions of the change in fair value of the derivative instrument, along with an adjustment to the carrying amount of the hedged item for fair value changes attributable to the hedged risk, are recognized in earnings. For a cash flow hedge, changes in the fair value of the derivative instrument that are highly effective are deferred in accumulated other comprehensive income or loss until the underlying hedged item is recognized in earnings. There were no cash flow hedges as of December 31, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||
If a fair value or cash flow hedge were to cease to qualify for hedge accounting or be terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If a forecasted transaction were no longer probable of occurring, amounts previously deferred in accumulated other comprehensive income would be recognized immediately in earnings. On occasion, the Company may enter into a derivative instrument that does not qualify for hedge accounting because it is entered into to offset changes in the fair value of an underlying transaction which is required to be recognized in earnings (natural hedge). These instruments are reflected in the Consolidated Balance Sheets at fair value with changes in fair value recognized in earnings. | |||||||||||||||||||||||||||||
Foreign currency derivatives include forward foreign exchange contracts primarily for Canadian dollars. Metal derivatives include commodity swaps for copper. | |||||||||||||||||||||||||||||
Portions of the Company's outstanding debt are exposed to interest rate risks. The Company monitors its interest rate exposures on an ongoing basis to maximize the overall effectiveness of its interest rates. | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||
The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis and certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: | |||||||||||||||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||||||||||||
Assets and liabilities subject to this hierarchy are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |||||||||||||||||||||||||||||
Shipping and Handling | |||||||||||||||||||||||||||||
Shipping and handling costs included in selling, general and administrative expense amounted to $38.4 million, $37.0 million and $36.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Research and Development | |||||||||||||||||||||||||||||
Research and development costs included in selling, general, and administrative expense amounted to $21.5 million, $20.4 million and $20.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||||||
The Company recognizes revenue when all of the following criteria have been met: the Company has entered into a binding agreement, the product has been shipped and title passes, the sales price to the customer is fixed or is determinable, and collectability is reasonably assured. Provisions for estimated returns and allowances are made at the time of sale, and are recorded as a reduction of sales and included in the allowance for doubtful accounts in the Consolidated Balance Sheets. The Company records provisions for sales incentives (primarily volume rebates), as an adjustment to net sales, at the time of sale based on estimated purchase targets. | |||||||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||||||
Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to permit comparison with the 2013 presentation. These reclassifications had no effect on reported results of operations or stockholders' equity. | |||||||||||||||||||||||||||||
Estimates | |||||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. | |||||||||||||||||||||||||||||
New Accounting Standards | |||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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" which is intended to eliminate the diversity in practice in the presentation of unrecognized tax benefits in those instances. ASU 2013-11 is effective for fiscal years and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU is intended to eliminate diversity in practice on the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted, and must be applied prospectively. The Company early adopted the ASU in 2013. The adoption of this guidance has not had a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which requires additional disclosures about amounts reclassified out of OCI by component, either on the face of the income statement or as a separate footnote to the financial statements. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this guidance has not had a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Discontinued Operations | ' | ||||||||||
(3) Discontinued Operations | |||||||||||
On August 1, 2013, the Company completed the sale of all of the outstanding shares of an indirect wholly-owned subsidiary, Watts Insulation GmbH (Austroflex), receiving net cash proceeds of $7.9 million. Austroflex is an Austrian-based manufacturer of pre-insulated flexible pipe systems for district heating, solar applications and under-floor radiant heating systems. Austroflex did not meet performance expectations since its purchase approximately three years ago on June 28, 2010. The loss after tax on disposal of the business was approximately $2.2 million. Further, during the year ended December 31, 2011, the Company wrote down Austroflex's long-lived assets by $14.8 million. The Company will not have a substantial continuing involvement in Austroflex's operations and cash flows, and therefore Austroflex's results of operations have been presented as discontinued operations for all periods presented. | |||||||||||
On December 21, 2012, the Company completed the sale of all of the outstanding shares of its subsidiary, Flomatic Corporation (Flomatic). The sale excluded the backflow product line of Flomatic, which was retained by the Company. Flomatic Corporation, located in Glens Falls, New York, specializes in manufacturing and selling check valves, foot valves and automatic hydraulic control valves for the well water industry. The Company acquired Flomatic as part of its acquisition of Socla in April 2011. The Company determined that it would not have a substantial continuing involvement in Flomatic's operations and cash flows, and therefore Flomatic's results of operations have been presented as discontinued operations for all periods presented. | |||||||||||
In the first quarter of 2010, the Company recorded an estimated reserve of $5.3 million in discontinued operations in connection with its investigation of potential violations of the Foreign Corrupt Practices Act (FCPA) at Watts Valve (Changsha) Co., Ltd. (CWV), a former indirect wholly-owned subsidiary of the Company in China. On October 13, 2011, the Company entered into a settlement for $3.8 million with the Securities and Exchange Commission to resolve allegations concerning potential violations of the FCPA at CWV. In connection with this matter, in 2012, the Company received a $1.1 million payment from a service provider related to issues concerning a former divested operation. | |||||||||||
Condensed operating statements for discontinued operations are summarized below: | |||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Operating income—FCPA matter (CWV) | $ | — | $ | 1.1 | $ | 1.7 | |||||
Operating income—Flomatic | — | 1.3 | 0.4 | ||||||||
Loss on disposal—Flomatic | — | (3.8 | ) | — | |||||||
Operating (loss) income—Austroflex | (0.2 | ) | 0.2 | (16.9 | ) | ||||||
Loss on disposal—Austroflex | (2.2 | ) | — | — | |||||||
Other | — | 0.3 | 0.2 | ||||||||
| | | | | | | | | | | |
Loss before income taxes | (2.4 | ) | (0.9 | ) | (14.6 | ) | |||||
Income tax benefit (expense) | 0.1 | (1.1 | ) | 3.8 | |||||||
| | | | | | | | | | | |
Loss from discontinued operations, net of taxes | $ | (2.3 | ) | $ | (2.0 | ) | $ | (10.8 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company did not recognize a tax benefit on the loss on the disposal of the Flomatic and Austroflex shares, as the Company does not believe it is more likely than not that a tax benefit would be realized. | |||||||||||
Revenues reported in discontinued operations are as follows: | |||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Flomatic revenues | $ | — | $ | 12.9 | $ | 8.5 | |||||
Austroflex revenues | 9.5 | 18.2 | 20.7 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 9.5 | $ | 31.1 | $ | 29.2 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Restructuring_and_Other_Charge
Restructuring and Other Charges, Net | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||
(4) Restructuring and Other Charges, Net | |||||||||||||||||
The Company's Board of Directors approves all major restructuring programs that involve the discontinuance of significant product lines or the shutdown of significant facilities. From time to time, the Company takes additional restructuring actions, including involuntary terminations that are not part of a major program. The Company accounts for these costs in the period that the individual employees are notified or the liability is incurred. These costs are included in restructuring and other charges in the Company's consolidated statements of operations. | |||||||||||||||||
2013 Actions | |||||||||||||||||
On July 30, 2013, the Board of Directors authorized a restructuring program with respect to the Company's EMEA segment to reduce its European manufacturing footprint by approximately 10%, improve organizational and operational efficiency and better align costs with expected revenues in response to changing market conditions. The restructuring program is expected to include a pre-tax charge to earnings totaling approximately $14.0 million, approximately $10.0 million of which is expected to be recorded through fiscal 2014 and the remainder recorded during fiscal 2015. The total charge will include costs for severance benefits, relocation, site clean-up, professional fees and certain asset write-downs. The total net after-tax charge for the restructuring program is expected to be approximately $10.0 million. The restructuring program is expected to be completed by the end of the fourth quarter of fiscal 2015. Certain aspects of the restructuring program are subject to further analysis and determinations by local management and consultation and negotiation with various workers' councils. The net after-tax charge incurred in fiscal 2013 was $2.9 million. | |||||||||||||||||
2011 Actions | |||||||||||||||||
In April 2011, the Board approved an integration program in association with the acquisition of Socla. The program was designed to integrate certain operations and management structures of Socla with a total estimated pre-tax cost of $6.4 million, with costs being incurred through 2012. The Company revised its forecast to $4.2 million primarily to reflect reduced severance costs. The total net after-tax charge was $2.8 million, with costs being fully incurred in 2012. As of December 31, 2013, the restructuring reserve was zero. | |||||||||||||||||
2010 Actions | |||||||||||||||||
On February 8, 2010, the Board approved a restructuring program with respect to the Company's operating facilities in France. The restructuring program included the consolidation of five facilities into two facilities. The program was originally expected to include pre-tax charges totaling approximately $12.5 million, including costs for severance, relocation, site clean-up and certain asset write-downs. Prior to 2013, the Company revised its forecast to $17.1 million primarily to reflect additional severance and legal costs. In 2013, the Company recorded additional severance costs of $0.7 million for total costs of $17.8 million. The 2010 restructuring program is substantially complete. As of December 31, 2013, the restructuring reserve was 2.3 million and related to severance costs. | |||||||||||||||||
On September 13, 2010, the Board approved a restructuring program with respect to certain of the Company's operating facilities in the United States. The restructuring program included the shutdown of two manufacturing facilities in North Carolina. Operations at these facilities have been consolidated into the Company's manufacturing facilities in New Hampshire, Missouri and other locations. The program originally included pre-tax charges totaling approximately $4.9 million, including costs for severance, shutdown costs and equipment write-downs and pre-tax training and pre-production set-up costs of approximately $2.0 million. The Company revised its forecast to $2.5 million due to reduced shutdown costs. The total net after-tax charge for this restructuring program was approximately $1.5 million. The restructuring program was completed in 2012. | |||||||||||||||||
Other Actions | |||||||||||||||||
The Company also periodically initiates other actions which are not part of a major program. Total "Other Actions" pre-tax restructuring expense was $5.2 million, $3.5 million and $3.6 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
In 2013, the Company initiated restructuring activities with respect to the Company's operating facilities in EMEA, which included the relocation and closure of a manufacturing facility in Italy and other relocation initiatives in Europe. In 2012, the Company initiated restructuring activities in North America and Europe which continued into 2013. The restructuring activities in the Americas included the relocation of certain production activities, which included the closure of a manufacturing site, severance and shutdown costs in North America. The restructuring activities included costs for severance, fixed asset impairment and shut-down costs. Additional expected pre-tax costs through 2015 are $0.4 million. | |||||||||||||||||
During 2011, the Company initiated several actions that were not part of a major program. In September 2011, the Company announced a plan of termination that would result in a reduction of approximately 10% of North American non-direct payroll costs. The Company recorded a charge of $1.1 million for severance in connection with the plan during the year ended December 31, 2011. Also in 2011, the Company initiated restructuring activities with respect to the Company's operating facilities in Europe, which included the closure of a facility. The Europe restructuring activities included pre-tax costs of approximately $4.0 million, including costs for severance and shut-down costs. All costs were incurred as of December 31, 2012. | |||||||||||||||||
During 2013, 2012 and 2011, the Company recorded a credit in restructuring and other charges, net related to the reduction in the contingent liability for the anticipated earnout payment in connection with the BRAE acquisition of $0.2 million, $1.0 million and $1.2 million, respectively. | |||||||||||||||||
A summary of the pre-tax cost by restructuring program is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Restructuring costs: | |||||||||||||||||
2010 Actions | $ | 0.7 | $ | 0.6 | $ | 3.3 | |||||||||||
2011 Actions | — | 1.1 | 3.1 | ||||||||||||||
2013 Actions | 4.1 | — | — | ||||||||||||||
Other Actions | 5.2 | 3.5 | 3.6 | ||||||||||||||
| | | | | | | | | | | |||||||
Total restructuring charges | 10 | 5.2 | 10 | ||||||||||||||
Adjustment related to contingent liability reduction | (0.2 | ) | (1.0 | ) | (1.2 | ) | |||||||||||
| | | | | | | | | | | |||||||
Less: amount included in cost of goods sold | (1.1 | ) | — | — | |||||||||||||
| | | | | | | | | | | |||||||
Total restructuring and other charges, net | $ | 8.7 | $ | 4.2 | $ | 8.8 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
The Company recorded pre-tax restructuring charges in its business segments as follows: | |||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Americas | $ | 1.3 | $ | 1.3 | $ | 1.2 | |||||||||||
EMEA | 8.7 | 3.9 | 8.6 | ||||||||||||||
Asia Pacific | — | — | 0.2 | ||||||||||||||
| | | | | | | | | | | |||||||
Total | $ | 10 | $ | 5.2 | $ | 10 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
2013 Actions | |||||||||||||||||
Details of the Company's 2013 European footprint program reserve, which for the year ended December 31, 2013 only relates to severance, is as follows: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Net pre-tax restructuring charges | 4.1 | ||||||||||||||||
Utilization and foreign currency impact | (2.1 | ) | |||||||||||||||
| | | | | |||||||||||||
Balance at December 31, 2013 | $ | 2 | |||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
The following table summarizes total expected, incurred and remaining pre-tax costs for 2013 European footprint program actions by type, and all attributable to the EMEA reportable segment: | |||||||||||||||||
Severance | Legal and | Asset | Facility | Total | |||||||||||||
consultancy | write-downs | exit | |||||||||||||||
and other | |||||||||||||||||
(in millions) | |||||||||||||||||
Expected costs | $ | 12.3 | $ | 1.3 | $ | 0.2 | $ | 0.2 | $ | 14 | |||||||
Costs incurred—2013 | (4.1 | ) | — | — | — | (4.1 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Remaining costs at December 31, 2013 | $ | 8.2 | $ | 1.3 | $ | 0.2 | $ | 0.2 | $ | 9.9 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Business_Acquisitions_and_Disp
Business Acquisitions and Disposition | 12 Months Ended |
Dec. 31, 2013 | |
Business Acquisitions and Disposition | ' |
Business Acquisitions and Disposition | ' |
(5) Business Acquisitions and Disposition | |
tekmar | |
On January 31, 2012, the Company completed the acquisition of tekmar in a share purchase transaction. A designer and manufacturer of control systems used in heating, ventilation, and air conditioning applications, tekmar enhances the Company's hydronic systems product offerings in the U.S. and Canada and is part of the Americas segment. The initial purchase price paid was CAD $18.0 million, with an earn-out based on future earnings levels being achieved. The initial purchase price paid was equal to approximately $17.8 million based on the exchange rate of Canadian dollar to U.S. dollars as of January 31, 2012. The total purchase price will not exceed CAD $26.2 million. Sales for tekmar in 2011 approximated $11.0 million. The Company accounted for the transaction as a business combination. The Company completed a purchase price allocation that resulted in the recognition of $11.7 million in goodwill and $10.1 million in intangible assets. Intangible assets consist primarily of acquired technology with an estimated life of 10 years, distributor relationships with an estimated life of 7 years, and a trade name with an estimated life of 20 years. The goodwill is not expected to be deductible for tax purposes. The results of tekmar are not material to the Company's consolidated financial statements. The results of operations for tekmar are included in the Company's Americas segment since acquisition date. | |
In 2012, a contingent liability of $5.1 million was recognized as the estimate of the acquisition date fair value of the contingent consideration. A portion of the contingent consideration was paid out during 2013, in the amount of $1.2 million, based on performance metrics achieved in 2012. The contingent liability was increased by $1.0 million during the year ended 2013 based on performance metrics achieved or expected to be achieved. | |
Socla | |
On April 29, 2011, the Company completed the acquisition of Socla and the related water controls business of certain other entities controlled by Danfoss A/S, in a share and asset purchase transaction. The final consideration paid was euro 116.3 million. The purchase price was financed with cash on hand and euro-based borrowings under our Prior Credit Agreement. The purchase price was equal to approximately $172.4 million based on the exchange rate of euro to U.S. dollars as of April 29, 2011. | |
The Company accounted for the transaction as a business combination. The Company completed a purchase price allocation that resulted in the recognition of $83.1 million in goodwill and $39.9 million in intangible assets. Intangible assets consist primarily of customer relationships with estimated lives of 10 years and trade names with either 20 year lives or indefinite lives. | |
The consolidated statement of operations for the year ended December 31, 2011 includes the results of Socla since the acquisition date and includes $94.8 million of revenues and $1.6 million of operating income, which includes acquisition accounting charges of $4.7 million and restructuring charges of $2.7 million. | |
TWVC | |
In March 2010, in connection with the Company's manufacturing footprint consolidation, the Company closed the operations of Tianjin Watts Valve Company Ltd. (TWVC) and relocated its manufacturing to other facilities. On April 12, 2010, the Company signed a definitive equity transfer agreement with a third party to sell the Company's equity ownership and remaining assets of TWVC. The sale was finalized in the fourth quarter of 2011. The Company received net proceeds of approximately $6.1 million from the sale and recorded a receivable for the remaining proceeds. The Company recognized a net pre-tax gain of $7.7 million and an after-tax gain of approximately $11.4 million relating mainly to the recognition of a cumulative translation adjustment and a tax benefit related to the reversal of a tax claw back in China. In 2013 and 2013, the Company recorded adjustments to decrease the gain on disposal by $1.6 million and increase the gain on disposal by $0.6 million, respectively. | |
Inventories_net
Inventories, net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories, net | ' | |||||||
Inventories, net | ' | |||||||
(6) Inventories, net | ||||||||
Inventories consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Raw materials | $ | 111.3 | $ | 110.8 | ||||
Work-in-process | 19.1 | 20.5 | ||||||
Finished goods | 179.8 | 156.7 | ||||||
| | | | | | | | |
$ | 310.2 | $ | 288 | |||||
| | | | | | | | |
| | | | | | | | |
Raw materials, work-in-process and finished goods are net of valuation reserves of $29.9 million and $27.7 million as of December 31, 2013 and 2012, respectively. Finished goods of $16.7 million and $13.5 million as of December 31, 2013 and 2012, respectively, were consigned. | ||||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment | ' | |||||||
(7) Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 15.2 | $ | 15.8 | ||||
Buildings and improvements | 166.3 | 156.4 | ||||||
Machinery and equipment | 353.2 | 322.5 | ||||||
Construction in progress | 4.5 | 15.5 | ||||||
| | | | | | | | |
539.2 | 510.2 | |||||||
Accumulated depreciation | (319.3 | ) | (288.5 | ) | ||||
| | | | | | | | |
$ | 219.9 | $ | 221.7 | |||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
(8) Income Taxes | |||||||||||
The significant components of the Company's deferred income tax liabilities and assets are as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in millions) | |||||||||||
Deferred income tax liabilities: | |||||||||||
Excess tax over book depreciation | $ | 22.4 | $ | 23.7 | |||||||
Intangibles | 29.1 | 30.5 | |||||||||
Other | 18.3 | 15.7 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 69.8 | 69.9 | |||||||||
Deferred income tax assets: | |||||||||||
Accrued expenses | 21.3 | 16.7 | |||||||||
Net operating loss carry-forward | 10.9 | 5.4 | |||||||||
Inventory reserves | 12.3 | 8.6 | |||||||||
Pension—accumulated other comprehensive income | 16.3 | 15.8 | |||||||||
Other | 9.8 | 14.9 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 70.6 | 61.4 | |||||||||
Less: valuation allowance | (13.1 | ) | (10.1 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | 57.5 | 51.3 | |||||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | (12.3 | ) | $ | (18.6 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
The provision for income taxes from continuing operations is based on the following pre-tax income: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Domestic | $ | 21.6 | $ | 27.3 | $ | 39.6 | |||||
Foreign | 66.2 | 72.9 | 68.3 | ||||||||
| | | | | | | | | | | |
$ | 87.8 | $ | 100.2 | $ | 107.9 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for income taxes from continuing operations consists of the following: | |||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Current tax expense: | |||||||||||
Federal | $ | 12.8 | $ | 5 | $ | 6.9 | |||||
Foreign | 19.7 | 21.5 | 18.3 | ||||||||
State | 2.5 | 1.3 | 1.8 | ||||||||
| | | | | | | | | | | |
35 | 27.8 | 27 | |||||||||
| | | | | | | | | | | |
Deferred tax expense (benefit): | |||||||||||
Federal | (5.0 | ) | 4.4 | 5.5 | |||||||
Foreign | (2.3 | ) | (3.5 | ) | (3.0 | ) | |||||
State | (0.8 | ) | 1.1 | 1.2 | |||||||
| | | | | | | | | | | |
(8.1 | ) | 2 | 3.7 | ||||||||
| | | | | | | | | | | |
$ | 26.9 | $ | 29.8 | $ | 30.7 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Actual income taxes reported from continuing operations are different than would have been computed by applying the federal statutory tax rate to income from continuing operations before income taxes. The reasons for this difference are as follows: | |||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Computed expected federal income expense | $ | 30.8 | $ | 35 | $ | 37.8 | |||||
State income taxes, net of federal tax benefit | 1 | 1.5 | 1.9 | ||||||||
Foreign tax rate differential | (5.7 | ) | (7.4 | ) | (4.4 | ) | |||||
China tax clawback | — | — | (4.2 | ) | |||||||
Other, net | 0.8 | 0.7 | (0.4 | ) | |||||||
| | | | | | | | | | | |
$ | 26.9 | $ | 29.8 | $ | 30.7 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
At December 31, 2013, the Company had foreign net operating loss carry forwards of $43.5 million for income tax purposes before considering valuation allowances; $32.0 million of the losses can be carried forward indefinitely and $11.5 million expire in 2020. The net operating losses consist of $29.8 million related to Austrian operations, $2.2 million to Italian operations, and $11.5 million to Dutch operations. | |||||||||||
At December 31, 2013 and December 31, 2012, the Company had valuation allowances of $13.1 million and $10.1 million, respectively. At December 31, 2013, $6.1 million relates to U.S. capital losses and $7.0 million relates to Austrian net operating losses. At December 31, 2012, the entire $10.1 million related to U.S. capital losses. Management believes that the ability of the Company to use such losses within the applicable carry forward period does not rise to the level of the more likely than not threshold. The Company does not have a valuation allowance with respect to other deferred tax assets, as management believes that it is more likely than not that the Company will recover such deferred tax assets. | |||||||||||
Changes enacted in income tax laws had no material effect on the Company in 2013, 2012 or 2011. | |||||||||||
Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $397.2 million at December 31, 2013, $329.7 million at December 31, 2012, and $282.2 million at December 31, 2011. Those earnings are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been recorded thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company will be subject to withholding taxes payable to the various foreign countries. Determination of the amount of U.S. income tax liability that would be incurred is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce some portion of any U.S. income tax liability. Withholding taxes of approximately $11.3 million would be payable upon remittance of all previously unremitted earnings at December 31, 2013. | |||||||||||
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accrued Expenses and Other Liabilities | ' | |||||||
Accrued Expenses and Other Liabilities | ' | |||||||
(9) Accrued Expenses and Other Liabilities | ||||||||
Accrued expenses and other liabilities consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Commissions and sales incentives payable | $ | 40.5 | $ | 40.6 | ||||
Product liability and workers' compensation | 33.5 | 31.4 | ||||||
Other | 56.6 | 42.5 | ||||||
Income taxes payable | 4.6 | 2.1 | ||||||
| | | | | | | | |
$ | 135.2 | $ | 116.6 | |||||
| | | | | | | | |
| | | | | | | | |
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ' | |||||||
(10) Financing Arrangements | ||||||||
Long-term debt consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
5.85% notes due April 2016 | $ | 225 | $ | 225 | ||||
5.47% notes due May 2013 | — | 75 | ||||||
5.05% notes due June 2020 | 75 | 75 | ||||||
Other—consists primarily of European borrowings (at interest rates ranging from 5.0% to 6.0%) | 7.7 | 9.6 | ||||||
| | | | | | | | |
307.7 | 384.6 | |||||||
Less Current Maturities | 2.2 | 77.1 | ||||||
| | | | | | | | |
$ | 305.5 | $ | 307.5 | |||||
| | | | | | | | |
| | | | | | | | |
Principal payments during each of the next five years and thereafter are due as follows (in millions): 2014—$2.2; 2015—$2.3; 2016—$226.5; 2017—$1.7; 2018—$0.0, and thereafter—$75.0. | ||||||||
The Company maintains letters of credit that guarantee its performance or payment to third parties in accordance with specified terms and conditions. Amounts outstanding were approximately $23.6 million as of December 31, 2013 and $34.8 million as of December 31, 2012. The Company's letters of credit are primarily associated with insurance coverage and, to a lesser extent, foreign purchases. The Company's letters of credit generally expire within one year of issuance and are drawn down against the revolving credit facility. These instruments may exist or expire without being drawn down. Therefore, they do not necessarily represent future cash flow obligations. | ||||||||
On June 18, 2010, the Company entered into a note purchase agreement with certain institutional investors (the 2010 Note Purchase Agreement). Pursuant to the 2010 Note Purchase Agreement, the Company issued senior notes of $75.0 million in principal, due June 18, 2020. The Company will pay interest on the outstanding balance of the Notes at the rate of 5.05% per annum, payable semi-annually on June 18 and December 18 until the principal on the Notes shall become due and payable. The Company may, at its option, upon notice, and subject to the terms of the 2010 Note Purchase Agreement, prepay at any time all or part of the Notes in an amount not less than $1 million by paying the principal amount plus a make-whole amount (which is dependent upon the yield of respective U.S. Treasury securities). The 2010 Note Purchase Agreement includes operational and financial covenants, with which the Company is required to comply, including, among others, maintenance of certain financial ratios and restrictions on additional indebtedness, liens and dispositions. As of December 31, 2013, the Company was in compliance with all covenants related to the 2010 Note Purchase Agreement. | ||||||||
On June 18, 2010, the Company entered into a credit agreement (the Prior Credit Agreement) among the Company, certain subsidiaries of the Company who become borrowers under the Prior Credit Agreement, Bank of America, N.A., as Administrative Agent, swing line lender and letter of credit issuer, and the other lenders referred to therein. The Prior Credit Agreement provided for a $300 million, five-year, senior unsecured revolving credit facility which could have been increased by an additional $150 million under certain circumstances and subject to the terms of the Prior Credit Agreement. The Prior Credit Agreement had a sublimit of up to $75.0 million in letters of credit. Borrowings outstanding under the Prior Credit Agreement bore interest at a fluctuating rate per annum equal to (i) in the case of Eurocurrency rate loans, the British Bankers Association LIBOR rate plus an applicable percentage, ranging from 1.70% to 2.30%, determined by reference to the Company's consolidated leverage ratio plus, in the case of certain lenders, a mandatory cost calculated in accordance with the terms of the Prior Credit Agreement, or (ii) in the case of base rate loans and swing line loans, the highest of (a) the federal funds rate plus 0.5%, (b) the rate of interest in effect for such day as announced by Bank of America, N.A. as its "prime rate," and (c) the British Bankers Association LIBOR rate plus 1.0%, plus an applicable percentage, ranging from 0.70% to 1.30%, determined by reference to the Company's consolidated leverage ratio. In addition to paying interest under the Prior Credit Agreement, the Company was also required to pay certain fees in connection with the credit facility, including, but not limited to, a facility fee and letter of credit fees. | ||||||||
Under the Prior Credit Agreement, the Company was required to satisfy and maintain specified financial ratios and other financial condition tests. As of December 31, 2013, the Company was in compliance with all covenants related to the Prior Credit Agreement and had $276.4 million of unused and available credit under the Prior Credit Agreement, $23.6 million of stand-by letters of credit outstanding on the Prior Credit Agreement and no borrowings outstanding under the Prior Credit Agreement. | ||||||||
On February 18, 2014, the Company terminated the Prior Credit Agreement and entered into a new Credit Agreement (the New Credit Agreement) among the Company, certain subsidiaries of the Company who become borrowers under the Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer, and the other lenders referred to therein. The New Credit Agreement provides for a $500 million, five-year, senior unsecured revolving credit facility which may be increased by an additional $500 million under certain circumstances and subject to the terms of the New Credit Agreement. The New Credit Agreement has a sublimit of up to $100 million in letters of credit. Borrowings outstanding under the New Credit Agreement bear interest at a fluctuating rate per annum equal to an applicable percentage equal to (i) in the case of Eurocurrency rate loans, the British Bankers Association LIBOR rate plus an applicable percentage, ranging from 0.975% to 1.45%, determined by reference to the Company's consolidated leverage ratio plus, in the case of certain lenders, a mandatory cost calculated in accordance with the terms of the New Credit Agreement, or (ii) in the case of base rate loans and swing line loans, the highest of (a) the federal funds rate plus 0.5%, (b) the rate of interest in effect for such day as announced by JPMorgan Chase Bank, N.A. as its "prime rate," and (c) the British Bankers Association LIBOR rate plus 1.0%, plus an applicable percentage, ranging from 0.00% to 0.45%, determined by reference to the Company's consolidated leverage ratio. In addition to paying interest under the New Credit Agreement, the Company is also required to pay certain fees in connection with the credit facility, including, but not limited to, an unused facility fee and letter of credit fees. The Credit Agreement matures on February 18, 2019, subject to extension under certain circumstances and subject to the terms of the New Credit Agreement. The Company may repay loans outstanding under the New Credit Agreement from time to time without premium or penalty, other than customary breakage costs, if any, and subject to the terms of the New Credit Agreement. | ||||||||
The New Credit Agreement imposes various restrictions on the Company and its subsidiaries, including restrictions pertaining to: (i) the incurrence of additional indebtedness, (ii) limitations on liens, (iii) making distributions, dividends and other payments, (iv) mergers, consolidations and acquisitions, (v) dispositions of assets, (vi) the maintenance of minimum consolidated net worth, certain consolidated leverage ratios and consolidated interest coverage ratios, (vii) transactions with affiliates, (viii) changes to governing documents, and (ix) changes in control. | ||||||||
On April 27, 2006, the Company completed a private placement of $225.0 million of 5.85% senior unsecured notes due April 2016 (the 2006 Note Purchase Agreement). The 2006 Note Purchase Agreement includes operational and financial covenants, with which the Company is required to comply, including, among others, maintenance of certain financial ratios and restrictions on additional indebtedness, liens and dispositions. Events of default under the 2006 Note Purchase Agreement include failure to comply with its financial and operational covenants, as well as bankruptcy and other insolvency events. The Company may, at its option, upon notice to the note holders, prepay at any time all or part of the Notes in an amount not less than $1.0 million by paying the principal amount plus a make-whole amount, which is dependent upon the yield of respective U.S. Treasury securities. As of December 31, 2013, the Company was in compliance with all covenants related to the 2006 Note Purchase Agreement. The payment of interest on the senior unsecured notes is due semi-annually on April 30th and October 30th of each year. | ||||||||
On May 15, 2003, the Company completed a private placement of $125.0 million of senior unsecured notes consisting of $50.0 million principal amount of 4.87% senior notes due 2010 and $75.0 million principal amount of 5.47% senior notes due May 2013. In May 2010, the Company repaid $50.0 million in principal of 4.87% senior notes due upon maturity. The Company repaid the $75.0 million of unsecured senior notes that matured on May 15, 2013 during the period ended June 30, 2013 with available cash. | ||||||||
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2013 | |
Common Stock | ' |
Common Stock | ' |
(11) Common Stock | |
The Class A common stock and Class B common stock have equal dividend and liquidation rights. Each share of the Company's Class A common stock is entitled to one vote on all matters submitted to stockholders, and each share of Class B common stock is entitled to ten votes on all such matters. Shares of Class B common stock are convertible into shares of Class A common stock, on a one-to-one basis, at the option of the holder. As of December 31, 2013, the Company had reserved a total of 3,719,322 of Class A common stock for issuance under its stock-based compensation plans and 6,489,290 shares for conversion of Class B common stock to Class A common stock. | |
On April 30, 2013, the Board of Directors authorized the repurchase of up to $90 million of the Company's Class A common stock from time to time on the open market or in privately negotiated transactions. The timing and number of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of any Rule 10b5-1 plan the Company may enter into with respect to the repurchase program. During 2013, the Company repurchased approximately 454,000 shares of Class A common stock at a cost of approximately $23.0 million. | |
On May 16, 2012, the Board of Directors authorized a stock repurchase program of up to two million shares of the Company's Class A common stock. The stock repurchase program was completed in July 2012, as the Company repurchased the entire two million shares of Class A common stock at a cost of approximately $65.8 million. | |
On August 2, 2011 the Board of Directors authorized a stock repurchase program. Under the program, the Company was authorized to repurchase up to one million shares of our Class A common stock. During the three months ended October 2, 2011, the Company repurchased the entire one million shares at a cost of $27.2 million. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||
(12) Stock-Based Compensation | |||||||||||||||||||||||
As of December 31, 2013, the Company maintains two stock incentive plans under which key employees have been granted incentive stock options (ISOs) and nonqualified stock options (NSOs) to purchase the Company's Class A common stock. Only one plan, the Second Amended and Restated 2004 Stock Incentive Plan, is currently available for the grant of new stock options, which are currently being granted only to employees. Under the 2004 Stock Incentive Plan, options become exercisable over a four-year period at the rate of 25% per year and expire ten years after the grant date. ISOs and NSOs granted under the plans may have exercise prices of not less than 100% of the fair market value of the Class A common stock on the date of grant. The Company's current practice is to grant all options at fair market value on the grant date. At December 31, 2013, 1,650,400 shares of Class A common stock were authorized for future grants of new equity awards under the Company's 2004 Stock Incentive Plan. | |||||||||||||||||||||||
The Company grants shares of restricted stock and deferred shares to key employees and stock awards to non-employee members of the Company's Board of Directors under the 2004 Stock Incentive Plan. Stock awards to non-employee members of the Company's Board of Directors vest immediately, and employees restricted stock awards and deferred shares vest over a three-year period at the rate of one-third per year. The restricted stock awards and deferred shares are amortized to expense on a straight-line basis over the vesting period. | |||||||||||||||||||||||
The Company also has a Management Stock Purchase Plan that allows for the granting of restricted stock units (RSUs) to key employees. On an annual basis, key employees may elect to receive a portion of their annual incentive compensation in RSUs instead of cash. Each RSU provides the key employee with the right to purchase a share of Class A common stock at 67% of the fair market value on the date of grant. RSUs vest either annually over a three-year period from the grant date or upon the third anniversary of the grant date and receipt of the shares underlying RSUs is deferred for a minimum of three years or such greater number of years as is chosen by the employee. An aggregate of 2,000,000 shares of Class A common stock may be issued under the Management Stock Purchase Plan. At December 31, 2013, 897,029 shares of Class A common stock were authorized for future grants under the Company's Management Stock Purchase Plan. | |||||||||||||||||||||||
2004 Stock Incentive Plan | |||||||||||||||||||||||
At December 31, 2013, total unrecognized compensation cost related to the unvested stock options was approximately $10.6 million with a total weighted average remaining term of 2.9 years. For 2013, 2012 and 2011, the Company recognized compensation cost of $3.8 million, $2.1 million and $1.6 million, respectively, in selling, general and administrative expenses. The Company recognized additional stock compensation expense in 2012 of approximately $0.6 million in connection with the modification of our former Chief Financial Officer's options related to his retention agreement. The Company recognized additional stock compensation expense in 2011 of approximately $2.2 million in connection with the modification of the former Chief Executive Officer's options related to his separation agreement. | |||||||||||||||||||||||
The following is a summary of stock option activity and related information: | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Options | Weighted | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
Exercise | Intrinsic | Exercise | Exercise | ||||||||||||||||||||
Price | Value | Price | Price | ||||||||||||||||||||
(Options in thousands) | |||||||||||||||||||||||
Outstanding at beginning of year | 1,064 | $ | 33.37 | 1,272 | $ | 30.43 | 1,303 | $ | 29 | ||||||||||||||
Granted | 379 | 54.78 | 415 | 37.67 | 295 | 29.39 | |||||||||||||||||
Cancelled/Forfeitures | (53 | ) | 36.97 | (33 | ) | 31.18 | (78 | ) | 30.38 | ||||||||||||||
Exercised | (361 | ) | 31.73 | (590 | ) | 30.19 | (248 | ) | 21.68 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of year | 1,029 | $ | 41.66 | $ | 20.21 | 1,064 | $ | 33.37 | 1,272 | $ | 30.43 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Exercisable at end of year | 249 | $ | 32.35 | $ | 29.52 | 360 | $ | 30.91 | 745 | $ | 30.61 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013, the aggregate intrinsic value of exercisable options was approximately $7.3 million, representing the total pre-tax intrinsic value, based on the Company's closing Class A common stock price of $61.87 as of December 31, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised for 2013, 2012 and 2011 was approximately $7.4 million, $5.7 million and $3.9 million, respectively. | |||||||||||||||||||||||
Upon exercise of options, the Company issues shares of Class A common stock. | |||||||||||||||||||||||
The following table summarizes information about options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||||
Outstanding | Remaining Contractual | Exercise | Exercisable | Exercise | |||||||||||||||||||
Life (years) | Price | Price | |||||||||||||||||||||
(Options in thousands) | |||||||||||||||||||||||
$26.34–$33.65 | 305 | 3.97 | $ | 30.18 | 174 | $ | 30.16 | ||||||||||||||||
$35.20–$35.70 | 10 | 3.8 | 35.35 | 10 | 35.35 | ||||||||||||||||||
$37.41–$37.41 | 301 | 6.05 | 37.41 | 55 | 37.41 | ||||||||||||||||||
$40.17–$57.95 | 413 | 7.93 | 53.4 | 10 | 40.17 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
1,029 | 6.17 | $ | 41.66 | 249 | $ | 32.35 | |||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
The fair value of each option granted under the 2004 Stock Incentive Plan is estimated on the date of grant, using the Black-Scholes-Merton Model, based on the following weighted average assumptions: | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected life (years) | 6 | 6 | 6 | ||||||||||||||||||||
Expected stock price volatility | 40.3 | % | 41.2 | % | 40.9 | % | |||||||||||||||||
Expected dividend yield | 1 | % | 1.2 | % | 1.5 | % | |||||||||||||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 1.6 | % | |||||||||||||||||
The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant for the respective expected life of the option. The expected life (estimated period of time outstanding) of options and volatility were calculated using historical data. The expected dividend yield of stock is the Company's best estimate of the expected future dividend yield. The Company applied an estimated forfeiture rate of 6.75% for 2013, 2012 and 2011, for its stock options. This rate was calculated based upon historical activity and is an estimate of granted shares not expected to vest. If actual forfeitures differ from the expected rates, the Company may be required to make additional adjustments to compensation expense in future periods. | |||||||||||||||||||||||
The above assumptions were used to determine the weighted average grant-date fair value of stock options of $20.30, $13.49 and $10.19 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||
The following is a summary of unvested restricted stock and deferred shares activity and related information: | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||||||
Unvested at beginning of year | 237 | $ | 35.45 | 153 | $ | 30.33 | 162 | $ | 31.39 | ||||||||||||||
Granted | 142 | 54.8 | 170 | 37.62 | 115 | 29.51 | |||||||||||||||||
Cancelled/Forfeitures | (16 | ) | 37.44 | (8 | ) | 30.66 | (14 | ) | 31.12 | ||||||||||||||
Vested | (103 | ) | 35.25 | (78 | ) | 30.61 | (110 | ) | 30.94 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Unvested at end of year | 260 | $ | 45.58 | 237 | $ | 35.45 | 153 | $ | 30.33 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
The total fair value of shares vested during 2013, 2012 and 2011 was $5.6 million, $2.5 million and $2.5 million, respectively. At December 31, 2013, total unrecognized compensation cost related to unvested restricted stock and deferred shares was approximately $9.4 million with a total weighted average remaining term of 2.1 years. For 2013, 2012 and 2011, the Company recognized compensation costs of $5.1 million, $2.9 million and $2.4 million, respectively, in selling, general and administrative expenses. The Company recognized additional stock compensation expense in 2012 of approximately $0.2 million in connection with the modification of our former Chief Financial Officer's restricted stock awards related to his retention agreement. The Company recognized additional stock compensation expense in 2011 related to restricted stock of approximately $0.8 million in connection with the modification of the former Chief Executive Officer's stock awards related to his separation agreement. | |||||||||||||||||||||||
The Company applied an estimated forfeiture rate of 9.0% for 2013, 2012 and 2011, for restricted stock and deferred shares issued to key employees. The aggregate intrinsic value of restricted stock and deferred shares granted and outstanding approximated $16.1 million representing the total pre-tax intrinsic value based on the Company's closing Class A common stock price of $61.87 as of December 31, 2013. | |||||||||||||||||||||||
Management Stock Purchase Plan | |||||||||||||||||||||||
Total unrecognized compensation cost related to unvested RSUs was approximately $0.8 million at December 31, 2013 with a total weighted average remaining term of 1.4 years. For 2013, 2012 and 2011 the Company recognized compensation cost of $0.7 million, $0.8 million and $1.3 million, respectively, in selling, general and administrative expenses. Dividends declared for RSUs, that are paid to individuals, that remain unpaid at December 31, 2013 total approximately $0.1 million. | |||||||||||||||||||||||
A summary of the Company's RSU activity and related information is shown in the following table: | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
RSUs | Weighted | Weighted | RSUs | Weighted | RSUs | Weighted | |||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
Purchase | Intrinsic | Purchase | Purchase | ||||||||||||||||||||
Price | Value | Price | Price | ||||||||||||||||||||
(RSU's in thousands) | |||||||||||||||||||||||
Outstanding at beginning of period | 196 | $ | 22.88 | 392 | $ | 18.74 | 361 | $ | 16.92 | ||||||||||||||
Granted | 45 | 31.63 | 64 | 99 | 25.15 | ||||||||||||||||||
Cancelled/Forfeitures | (14 | ) | 28.35 | (110 | ) | (10 | ) | 20.92 | |||||||||||||||
Settled | (95 | ) | 19.19 | (150 | ) | (58 | ) | 18.01 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of period | 132 | $ | 27.46 | $ | 34.41 | 196 | $ | 22.88 | 392 | $ | 18.74 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Vested at end of period | 42 | $ | 25.3 | $ | 36.57 | 81 | $ | 20.36 | 157 | $ | 15.57 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013, the aggregate intrinsic values of outstanding and vested RSUs were approximately $4.5 million and $1.5 million, respectively, representing the total pre-tax intrinsic value, based on the Company's closing Class A common stock price of $61.87 as of December 31, 2013, which would have been received by the RSUs holders had all RSUs settled as of that date. The total intrinsic value of RSUs settled for 2013, 2012 and 2011 was approximately $2.8 million, $3.8 million and $1.2 million, respectively. Upon settlement of RSUs, the Company issues shares of Class A common stock. | |||||||||||||||||||||||
The following table summarizes information about RSUs outstanding at December 31, 2013: | |||||||||||||||||||||||
RSUs Outstanding | RSUs Vested | ||||||||||||||||||||||
Range of Purchase Prices | Number | Weighted Average | Number | Weighted Average | |||||||||||||||||||
Outstanding | Purchase | Vested | Purchase | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||||
(RSUs in thousands) | |||||||||||||||||||||||
$13.25–$19.87 | 2 | $ | 16.21 | 2 | $ | 16.21 | |||||||||||||||||
$25.15–$26.51 | 91 | 25.88 | 40 | 25.69 | |||||||||||||||||||
$31.63–$31.63 | 39 | 31.63 | — | — | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
132 | $ | 27.46 | 42 | $ | 25.3 | ||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
The fair value of each share issued under the Management Stock Purchase Plan is estimated on the date of grant, using the Black-Scholes-Merton Model, based on the following weighted average assumptions: | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected life (years) | 3 | 3 | 3 | ||||||||||||||||||||
Expected stock price volatility | 34.1 | % | 38.3 | % | 44.9 | % | |||||||||||||||||
Expected dividend yield | 0.9 | % | 1.1 | % | 1.2 | % | |||||||||||||||||
Risk-free interest rate | 0.4 | % | 0.4 | % | 1.2 | % | |||||||||||||||||
The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant for the respective expected life of the RSUs. The expected life (estimated period of time outstanding) of RSUs and volatility were calculated using historical data. The expected dividend yield of stock is the Company's best estimate of the expected future dividend yield. The Company applied an estimated forfeiture rate of 6.3% for 2013, 2012 and 2011, for its RSUs. This rate was calculated based upon historical activity and are an estimate of granted shares not expected to vest. If actual forfeitures differ from the expected rates, the Company may be required to make additional adjustments to compensation expense in future periods. | |||||||||||||||||||||||
The above assumptions were used to determine the weighted average grant-date fair value of RSUs granted of $18.05, $15.68 and $16.25 during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||
The Company distributed dividends of $0.50 per share for 2013, and $0.44 per share for 2012 and 2011, respectively, on the Company's Class A common stock and Class B common stock. | |||||||||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||||
(13) Employee Benefit Plans | ||||||||||||||||||||||||||
The Company sponsors funded and unfunded non-contributing defined benefit pension plans that together cover substantially all of its domestic employees. Benefits are based primarily on years of service and employees' compensation. The funding policy of the Company for these plans is to contribute an annual amount that does not exceed the maximum amount that can be deducted for federal income tax purposes. | ||||||||||||||||||||||||||
On October 31, 2011, the Company's Board of Directors voted to cease accruals effective December 31, 2011 under both the Company's Pension Plan and Supplemental Employees Retirement Plan. The Company recorded a curtailment charge of approximately $1.5 million to write-off previously unrecognized prior service costs and reduced the projected benefit obligation by $12.5 million. The Board of Directors also voted to enhance the Company's existing 401(k) Savings Plan. | ||||||||||||||||||||||||||
The funded status of the defined benefit plans and amounts recognized in the consolidated balance sheets are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||||||||
Balance at beginning of the year | $ | 138 | $ | 121.2 | ||||||||||||||||||||||
Service cost | 0.5 | 0.6 | ||||||||||||||||||||||||
Administration costs paid | (0.8 | ) | (0.9 | ) | ||||||||||||||||||||||
Interest cost | 5.4 | 5.7 | ||||||||||||||||||||||||
Actuarial (gain) loss | (12.5 | ) | 15.6 | |||||||||||||||||||||||
Benefits paid | (4.3 | ) | (4.2 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at end of year | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||||||||
Balance at beginning of the year | $ | 115.8 | $ | 108.4 | ||||||||||||||||||||||
Actual (loss) gain on assets | (7.7 | ) | 11.8 | |||||||||||||||||||||||
Employer contributions | 0.7 | 0.7 | ||||||||||||||||||||||||
Administration costs paid | (0.8 | ) | (0.9 | ) | ||||||||||||||||||||||
Benefits paid | (4.3 | ) | (4.2 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Fair value of plan assets at end of the year | $ | 103.7 | $ | 115.8 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Funded status at end of year | $ | (22.6 | ) | $ | (22.2 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Amounts recognized in the consolidated balance sheets are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Current liabilities | $ | (0.6 | ) | $ | (0.6 | ) | ||||||||||||||||||||
Noncurrent liabilities | (22.0 | ) | (21.6 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Net amount recognized | $ | (22.6 | ) | $ | (22.2 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Net actuarial loss recognized | $ | 42.2 | $ | 41.2 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Projected benefit obligation | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
Fair value of plan assets | $ | 103.7 | $ | 115.8 | ||||||||||||||||||||||
The components of net periodic benefit cost are as follows: | ||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Service cost—benefits earned | $ | 0.5 | $ | 0.6 | $ | 5.3 | ||||||||||||||||||||
Interest costs on benefits obligation | 5.4 | 5.7 | 6 | |||||||||||||||||||||||
Expected return on assets | (6.8 | ) | (6.9 | ) | (7.5 | ) | ||||||||||||||||||||
Prior service cost amortization | — | — | 0.3 | |||||||||||||||||||||||
Net actuarial loss amortization | 1 | 0.6 | 2.7 | |||||||||||||||||||||||
Curtailment charge | — | — | 1.5 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net periodic benefit cost | $ | 0.1 | $ | — | $ | 8.3 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
For fiscal year 2014, the estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost is $1.1 million. | ||||||||||||||||||||||||||
Assumptions: | ||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Discount rate | 4.9 | % | 4 | % | ||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit costs: | ||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Discount rate | 4 | % | 4.8 | % | 5.50%/4.70% | |||||||||||||||||||||
Long-term rate of return on assets | 6 | % | 6.5 | % | 7.75% | |||||||||||||||||||||
Discount rates are selected based upon rates of return at the measurement date utilizing a bond matching approach to match the expected benefit cash flows. In selecting the expected long-term rate of return on assets, the Company considers the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of this plan. This includes considering the trust's asset allocation and the expected returns likely to be earned over the life of the plan. This basis is consistent with the prior year. The original 2011 discount rate of 5.5% was revised to 4.70% at October 31, 2011, the curtailment date of the plans. | ||||||||||||||||||||||||||
Plan assets | ||||||||||||||||||||||||||
The Company's written Retirement Plan Investment Policy sets forth the investment policy, objectives and constraints of the Watts Water Technologies, Inc. Pension Plan. This Retirement Plan Investment Policy, set forth by the Pension Plan Committee, defines general investment principles and directs investment management policy, addressing preservation of capital, risk aversion and adherence to investment discipline. Investment managers are to make a reasonable effort to control risk and are evaluated quarterly against commonly accepted benchmarks to ensure that the risk assumed is commensurate with the given investment style and objectives. | ||||||||||||||||||||||||||
The portfolio is designed to achieve a balanced return of current income and modest growth of capital, while achieving returns in excess of the rate of inflation over the investment horizon in order to preserve purchasing power of Plan assets. All Plan assets are required to be invested in liquid securities. Derivative investments are not allowed. | ||||||||||||||||||||||||||
Prohibited investments include, but are not limited to the following: futures contracts, private placements, options, limited partnerships, venture-capital investments, interest-only (IO), principal-only (PO), and residual tranche collateralized mortgage obligation (CMOs), and Watts Water Technologies, Inc. stock. | ||||||||||||||||||||||||||
Prohibited transactions include, but are not limited to the following: short selling and margin transactions. | ||||||||||||||||||||||||||
Allowable assets include: cash equivalents, fixed income securities, equity securities, mutual funds, and guaranteed investment contracts. | ||||||||||||||||||||||||||
Specific guidelines regarding allocation of assets are followed using a liability driven investment (LDI) strategy. Under an LDI strategy, investments are made based on the expected cash flows required to fund the pension plan's liabilities. This cash flow matching technique requires a plan's asset allocation to be heavily weighted toward fixed income securities. The Company's current allocation target is 85% fixed income, 15% equities and other investments. With the plan curtailment, this allocation target may increase to 90% or more in fixed income in the future. Investment performance is monitored on a regular basis and investments are re-allocated to stay within specific guidelines. The securities of any one company or government agency should not exceed 10% of the total fund, and no more than 20% of the total fund should be invested in any one industry. Individual treasury securities may represent 50% of the total fund, while the total allocation to treasury bonds and notes may represent up to 100% of the Plan's aggregate bond position. | ||||||||||||||||||||||||||
The weighted average asset allocations by asset category are as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
Asset Category | 2013 | 2012 | ||||||||||||||||||||||||
Equity securities | 9.4 | % | 9.6 | % | ||||||||||||||||||||||
Debt securities | 85.1 | 85.3 | ||||||||||||||||||||||||
Other | 5.5 | 5.1 | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
The following table presents the investments in the pension plan measured at fair value at December 31, 2013 and 2012: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Level | Level | Level | Total | Level | Level | Level | Total | |||||||||||||||||||
1 | 2 | 3 | 1 | 2 | 3 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Money market funds | $ | 2 | $ | — | $ | — | $ | 2 | $ | 1.2 | $ | 0.3 | $ | — | $ | 1.5 | ||||||||||
Equity securities | ||||||||||||||||||||||||||
U.S. equity securities(a) | 7.6 | — | — | 7.6 | 8.3 | — | — | 8.3 | ||||||||||||||||||
Non-U.S. equity securities(a) | 1.3 | — | — | 1.3 | 1.4 | — | — | 1.4 | ||||||||||||||||||
Other equity securities(b) | 0.7 | — | — | 0.7 | 1.3 | — | — | 1.3 | ||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||
U.S. government | 16.5 | — | — | 16.5 | 18.8 | — | — | 18.8 | ||||||||||||||||||
U.S. and non-U.S. corporate(c) | — | 70.9 | — | 70.9 | — | 79 | — | 79 | ||||||||||||||||||
Other investments(d) | 4.7 | — | — | 4.7 | 4.4 | 1.1 | — | 5.5 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investments | $ | 32.8 | $ | 70.9 | $ | — | $ | 103.7 | $ | 35.4 | $ | 80.4 | $ | — | $ | 115.8 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||||||||
Includes investments in common stock from diverse industries | ||||||||||||||||||||||||||
(b) | ||||||||||||||||||||||||||
Includes investments in index and exchange-traded funds | ||||||||||||||||||||||||||
(c) | ||||||||||||||||||||||||||
Includes investment grade bonds from diverse industries | ||||||||||||||||||||||||||
(d) | ||||||||||||||||||||||||||
Includes investments in real estate investment funds, exchange-traded funds, commodity mutual funds and accrued interest | ||||||||||||||||||||||||||
Cash flows | ||||||||||||||||||||||||||
The information related to the Company's pension funds cash flow is as follows: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Employer Contributions | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||
Benefit Payments | $ | 4.3 | $ | 4.2 | ||||||||||||||||||||||
The Company expects to contribute approximately $0.8 million in 2014. | ||||||||||||||||||||||||||
Expected benefit payments to be paid by the pension plans are as follows: | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
During fiscal year ending December 31, 2014 | $ | 5.2 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2015 | $ | 5.5 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2016 | $ | 5.8 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2017 | $ | 6.1 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2018 | $ | 6.4 | ||||||||||||||||||||||||
During fiscal years ending December 31, 2019 through December 31, 2023 | $ | 37.3 | ||||||||||||||||||||||||
Additionally, all of the Company's domestic employees are eligible to participate in the Company's 401(k) savings plan. Effective January 1, 2012, the Company provides a base contribution of 2% of an employee's salary, regardless of whether the employee participates in the plan. Further, the Company matches the contribution of up to 100% of the first 4% of an employee's contribution. The Company's match contribution for the years ended December 31, 2013 and 2012 were $4.2 million and $4.0 million, respectively. During 2011, the Company matched a specified percentage of employee contributions, subject to certain limitations. The Company's match contributions for the year ended December 31, 2011 was $0.5 million. Charges for EMEA pension plans approximated $5.8 million, $6.0 million and $6.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. These costs relate to plans administered by certain European subsidiaries, with benefits calculated according to government requirements and paid out to employees upon retirement or change of employment. | ||||||||||||||||||||||||||
The Company entered into a Supplemental Compensation Agreement (the Agreement) with Timothy P. Horne on September 1, 1996. Per the Agreement, upon ceasing to be an employee of the Company, Mr. Horne must make himself available, as requested by the Board, to work a minimum of 300 but not more than 500 hours per year as a consultant in return for certain annual compensation as long as he is physically able to do so. Mr. Horne retired effective December 31, 2002, and therefore the Supplemental Compensation period began on January 1, 2003. If Mr. Horne complies with the consulting provisions of the agreement above, he shall receive supplemental compensation on an annual basis, subject to cost of living increases each year, in exchange for the services performed, as long as he is physically able to do so. The payment for consulting services provided by Mr. Horne will be expensed as incurred by the Company. During the years ended 2013, 2012 and 2011, Mr. Horne received payments of $0.6 million, $0.6 million and $0.5 million, respectively. In the event of physical disability, Mr. Horne will continue to receive this payment annually. In accordance with Generally Accepted Accounting Principles (GAAP), the Company accrues for the future post-retirement disability benefits over the period from January 1, 2003, to the time in which Mr. Horne becomes physically unable to perform his consulting services (the period in which the disability benefits are earned). Mr. Horne is still active as a consultant in accordance with the terms of the Agreement. | ||||||||||||||||||||||||||
Contingencies_and_Environmenta
Contingencies and Environmental Remediation | 12 Months Ended |
Dec. 31, 2013 | |
Contingencies and Environmental Remediation | ' |
Contingencies and Environmental Remediation | ' |
(14) Contingencies and Environmental Remediation | |
Accrual and Disclosure Policy | |
The Company is a defendant in numerous legal matters arising from its ordinary course of operations, including those involving product liability, environmental matters and commercial disputes. | |
The Company reviews its lawsuits and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for matters when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated, net of any applicable insurance proceeds. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company's assessment of whether a loss is probable is based on its assessment of the ultimate outcome of the matter following all appeals. | |
Under the FASB issued ASC 450 "Contingencies", an event is "reasonably possible" if "the chance of the future event or events occurring is more than remote but less than likely" and an event is "remote" if "the chance of the future event or events occurring is slight". Thus, references to the upper end of the range of reasonable possible loss for cases in which the Company is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Company believes the risk of loss is more than slight. | |
There may continue to be exposure to loss in excess of any amount accrued. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued for the matters disclosed, that estimate is aggregated and disclosed. The Company records legal costs associated with its legal contingencies as incurred, except for legal costs associated with product liability claims which are included in the actuarial estimates used in determining the product liability accrual. | |
As of December 31, 2013, the Company estimates that the aggregate amount of reasonably possible loss in excess of the amount accrued for its legal contingencies is approximately $11.2 million pre-tax. With respect to the estimate of reasonably possible loss, management has estimated the upper end of the range of reasonably possible loss based on (i) the amount of money damages claimed, where applicable, (ii) the allegations and factual development to date, (iii) available defenses based on the allegations, and/or (iv) other potentially liable parties. This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. In the event of an unfavorable outcome in one or more of the matters described below, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company's operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters, as they are resolved over time, is not likely to have a material adverse effect on the financial condition of the Company, though the outcome could be material to the Company's operating results for any particular period depending, in part, upon the operating results for such period. | |
Trabakoolas et al., v, Watts Water Technologies, Inc., et al., | |
On March 8, 2012, Watts Water Technologies, Inc., Watts Regulator Co., and Watts Plumbing Technologies Co., Ltd., among other companies, were named as defendants in a putative nationwide class action complaint filed in the U.S. District Court for the Northern District of California seeking to recover damages and other relief based on the alleged failure of toilet connectors. The complaint seeks among other items, damages in an unspecified amount, replacement costs, injunctive relief, and attorneys' fees and costs. No class certification hearing has been scheduled and the matter is currently in the discovery phase. On August 22, 2013, the Court stayed the action for 45 days, to allow the parties to explore the possibility of settlement. On October 8, 2013, this stay was extended until November 7, 2013, in order to allow the parties additional time to explore settlement. On November 7, 2013, the Court extended the stay until December 12, 2013, in order to allow the parties additional time to explore settlement. | |
On December 12, 2013, the Company reached an agreement in principle to settle all claims. The total settlement amount is $23.0 million, of which the Company would be responsible for $14.0 million after insurance proceeds of $9.0 million. The settlement was subject to review by the Court at a preliminary approval hearing held on February 12, 2014. The Court granted preliminary approval on February 14, 2014. The settlement is subject to final court approval after a fairness hearing currently scheduled for July 16, 2014. Accordingly, there can be no assurance that the proposed settlement will be approved in its current form. If the settlement is not approved, the Company intends to continue to vigorously contest the allegations in this case. | |
During the fourth quarter of 2013, the Company recorded a liability of $22.6 million related to the Trabakoolas matter, of which $12.7 million was included in current liabilities and $9.9 million in other noncurrent liabilities. In addition, a $9.0 million receivable was recorded in current assets related to insurance proceeds due under a separate settlement agreement if the class action settlement is approved. | |
Product Liability | |
The Company is subject to a variety of potential liabilities in connection with product liability cases. The Company maintains product liability and other insurance coverage, which the Company believes to be generally in accordance with industry practices. For product liability cases in the U.S., management establishes its product liability accrual, which includes legal costs associated with accrued claims, by utilizing third-party actuarial valuations which incorporate historical trend factors and the Company's specific claims experience derived from loss reports provided by third-party administrators. In other countries, the Company maintains insurance coverage with relatively high deductible payments, as product liability claims tend to be smaller than those experienced in the U.S. Changes in the nature of claims or the actual settlement amounts could affect the adequacy of this estimate and require changes to the provisions. Because the liability is an estimate, the ultimate liability may be more or less than reported. | |
Foreign Corrupt Practices Act Settlement | |
On October 13, 2011, the Company entered into a settlement with the SEC to resolve allegations concerning potential violations of the U.S. Foreign Corrupt Practices Act (FCPA) at Watts Valve Changsha Co., Ltd., (CWV), a former indirect wholly-owned subsidiary of Watts Water in China. Under the terms of the settlement, without admitting or denying the SEC's allegations, the Company consented to entry of an administrative cease-and-desist order under the books and records and internal controls provisions of the FCPA. The Company also agreed to pay to the SEC $3.6 million in disgorgement and prejudgment interest, and $0.2 million in penalties. | |
The amounts paid by us in connection with the settlement were fully accrued as of December 31, 2010. This settlement resolves all government investigations with respect to the Company concerning CWV's sales practices and potential FCPA violations. | |
Environmental Remediation | |
The Company has been named as a potentially responsible party with respect to a limited number of identified contaminated sites. The levels of contamination vary significantly from site to site as do the related levels of remediation efforts. Environmental liabilities are recorded based on the most probable cost, if known, or on the estimated minimum cost of remediation. Accruals are not discounted to their present value, unless the amount and timing of expenditures are fixed and reliably determinable. The Company accrues estimated environmental liabilities based on assumptions, which are subject to a number of factors and uncertainties. Circumstances that can affect the reliability and precision of these estimates include identification of additional sites, environmental regulations, level of clean-up required, technologies available, number and financial condition of other contributors to remediation and the time period over which remediation may occur. The Company recognizes changes in estimates as new remediation requirements are defined or as new information becomes available. | |
Asbestos Litigation | |
The Company is defending 44 lawsuits in different jurisdictions, alleging injury or death as a result of exposure to asbestos. The complaints in these cases typically name a large number of defendants and do not identify any particular Company products as a source of asbestos exposure. To date, the Company has obtained a dismissal in every case before it has reached trial because discovery has failed to yield evidence of substantial exposure to any Company products. | |
Other Litigation | |
Other lawsuits and proceedings or claims, arising from the ordinary course of operations, are also pending or threatened against the Company. | |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
(15) Financial Instruments | |||||||||||||||||
Fair Value | |||||||||||||||||
The carrying amounts of cash and cash equivalents, short-term investments, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. | |||||||||||||||||
The fair value of the Company's 5.85% senior notes due 2016 and 5.05% senior notes due 2020 is based on quoted market prices of similar notes (level 2). The fair value of the Company's variable rate debt approximates its carrying value. The carrying amount and the estimated fair market value of the Company's long-term debt, including the current portion, are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Carrying amount | $ | 307.7 | $ | 384.6 | |||||||||||||
Estimated fair value | $ | 333.4 | $ | 420.8 | |||||||||||||
Financial Instruments | |||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including foreign currency derivatives, deferred compensation plan assets and related liability. There are no cash flow hedges as of December 31, 2013. The fair value of these certain financial assets and liabilities were determined using the following inputs at December 31, 2013 and 2012: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Plan asset for deferred compensation(1) | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
Total assets | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Liabilities | |||||||||||||||||
Plan liability for deferred compensation(2) | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
Contingent consideration(2) | 4.4 | — | — | 4.4 | |||||||||||||
| | | | | | | | | | | | | | ||||
Total liabilities | $ | 9 | $ | 4.6 | $ | — | $ | 4.4 | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Plan asset for deferred compensation(1) | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
Total assets | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Liabilities | |||||||||||||||||
Plan liability for deferred compensation(2) | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
Contingent consideration(2) | 5.2 | — | — | 5.2 | |||||||||||||
| | | | | | | | | | | | | | ||||
Total liabilities | $ | 9.4 | $ | 4.2 | $ | — | $ | 5.2 | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
-1 | |||||||||||||||||
Included in other, net on the Company's consolidated balance sheet. | |||||||||||||||||
-2 | |||||||||||||||||
Included in other noncurrent liabilities on the Company's consolidated balance sheet. | |||||||||||||||||
The table below provides a summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period December 31, 2012 to December 31, 2013. | |||||||||||||||||
Total realized and | |||||||||||||||||
unrealized (gains) | |||||||||||||||||
losses included in: | |||||||||||||||||
Balance | Purchases, | Net earnings | Comprehensive | Balance | |||||||||||||
December 31, | sales, | adjustments | income | December 31, | |||||||||||||
2012 | settlements, net | 2013 | |||||||||||||||
(in millions) | |||||||||||||||||
Contingent consideration | $ | 5.2 | $ | (1.2 | ) | $ | 0.8 | $ | (0.4 | ) | $ | 4.4 | |||||
In 2010, a contingent liability of $1.9 million was recognized as an estimate of the acquisition date fair value of the contingent consideration in the BRAE acquisition. This liability was classified as Level 3 under the fair value hierarchy as it was based on the weighted probability of achievement of a future performance metric as of the date of the acquisition, which was not observable in the market. During the year ended December 31, 2011 and the year ended December 31, 2012, the estimate of the fair value of the contingent consideration was reduced to $1.1 million and subsequently to $0.2 million, based on the revised probability of achievement of the future performance metric. During the year ended December 31, 2013, the remaining liability was reduced to zero. | |||||||||||||||||
In connection with the tekmar Control Systems acquisition in 2012, a contingent liability of $5.1 million was recognized as the estimate of the acquisition date fair value of the contingent consideration. This liability was classified as Level 3 under the fair value hierarchy as it was based on the probability of achievement of a future performance metric as of the date of the acquisition, which was not observable in the market. Failure to meet the performance metrics would reduce this liability to zero; while complete achievement would increase this liability to the full remaining purchase price of $8.2 million. A portion of the contingent consideration was paid out during 2013, in the amount of $1.2 million, based on performance metrics achieved in 2012. The contingent liability was increased by $1.0 million during the year ended 2013 based on performance metrics achieved to date. | |||||||||||||||||
Short-term investment securities as of December 31, 2012 consist of a certificate of deposit with a remaining maturity of greater than three months at the date of purchase, for which the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||
Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of certificates of deposit and money market funds, for which the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||
The Company uses financial instruments from time to time to enhance its ability to manage risk, including foreign currency and commodity pricing exposures, which exist as part of its ongoing business operations. The use of derivatives exposes the Company to counterparty credit risk for nonperformance and to market risk related to changes in currency exchange rates and commodity prices. The Company manages its exposure to counterparty credit risk through diversification of counterparties. The Company's counterparties in derivative transactions are substantial commercial banks with significant experience using such derivative instruments. The impact of market risk on the fair value and cash flows of the Company's derivative instruments is monitored and the Company restricts the use of derivative financial instruments to hedging activities. The Company does not enter into contracts for trading purposes nor does the Company enter into any contracts for speculative purposes. The use of derivative instruments is approved by senior management under written guidelines. | |||||||||||||||||
The Company has exposure to a number of foreign currency rates, including the Canadian dollar, the euro, the Chinese yuan and the British pound. To manage this risk, the Company generally uses a layering methodology whereby at the end of any quarter, the Company has generally entered into forward exchange contracts which hedge approximately 50% of the projected intercompany purchase transactions for the next twelve months. The Company primarily uses this strategy for the purchases between Canada and the U.S. The average volume of contracts can vary but generally approximates $1.0 to $10.0 million in open contracts at the end of any given quarter. At December 31, 2013, the Company had contracts for notional amounts aggregating approximately $1.0 million. The Company accounts for the forward exchange contracts as an economic hedge. Realized and unrealized gains and losses on the contracts are recognized in other (income) expense in the consolidated statement of operations. These contracts do not subject the Company to significant market risk from exchange movement because they offset gains and losses on the related foreign currency denominated transactions. As of December 31, 2013 and 2012, the Company had no outstanding swaps. | |||||||||||||||||
The Company recorded income (loss) of approximately $0.1 million, $0.1 million and $0.6 million in 2013, 2012 and 2011, respectively, to other expense (income), net in the consolidated statement of operations from the impact of derivative instruments. | |||||||||||||||||
Leases | |||||||||||||||||
The Company leases certain manufacturing facilities, sales offices, warehouses, and equipment. Generally, the leases carry renewal provisions and require the Company to pay maintenance costs. Future minimum lease payments under capital leases and non-cancelable operating leases as of December 31, 2013 are as follows: | |||||||||||||||||
Capital Leases | Operating Leases | ||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 1.6 | $ | 9.1 | |||||||||||||
2015 | 1.6 | 6.3 | |||||||||||||||
2016 | 1.6 | 3.6 | |||||||||||||||
2017 | 1.5 | 2.2 | |||||||||||||||
2018 | 1.4 | 1 | |||||||||||||||
Thereafter | 2.8 | 6.4 | |||||||||||||||
| | | | | | | | ||||||||||
Total | $ | 10.5 | $ | 28.6 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Less amount representing interest (at rates ranging from 4.2% to 8.7%) | 1 | ||||||||||||||||
| | | | | | | | ||||||||||
Present value of net minimum capital lease payments | 9.5 | ||||||||||||||||
Less current installments of obligations under capital leases | 1.4 | ||||||||||||||||
| | | | | | | | ||||||||||
Obligations under capital leases, excluding current installments | $ | 8.1 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Carrying amounts of assets under capital lease include: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Buildings | $ | 17.5 | $ | 16.8 | |||||||||||||
Machinery and equipment | 1.8 | 1.2 | |||||||||||||||
| | | | | | | | ||||||||||
19.3 | 18 | ||||||||||||||||
Less accumulated depreciation | (5.1 | ) | (3.9 | ) | |||||||||||||
| | | | | | | | ||||||||||
$ | 14.2 | $ | 14.1 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Segment Information | ' | ||||||||||
(16) Segment Information | |||||||||||
The Company operates in three geographic segments: Americas, EMEA, and Asia Pacific. Each of these segments sells similar products, is managed separately and has separate financial results that are reviewed by the Company's chief operating decision-maker. All intercompany sales transactions have been eliminated. Sales by region are based upon location of the entity recording the sale. The accounting policies for each segment are the same as those described in the summary of significant accounting policies (see Note 2). | |||||||||||
The following is a summary of the Company's significant accounts and balances by segment, reconciled to its consolidated totals: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net Sales | |||||||||||
Americas | $ | 878.5 | $ | 835 | $ | 810.9 | |||||
EMEA | 562.2 | 565.6 | 574.8 | ||||||||
Asia Pacific | 32.8 | 26.8 | 21.7 | ||||||||
| | | | | | | | | | | |
Consolidated net sales | $ | 1,473.50 | $ | 1,427.40 | $ | 1,407.40 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Operating income (loss) | |||||||||||
Americas | $ | 90.4 | $ | 96.5 | $ | 111.6 | |||||
EMEA | 46.9 | 52.5 | 45.5 | ||||||||
Asia Pacific | 9.7 | 6.5 | 12.2 | ||||||||
| | | | | | | | | | | |
Subtotal reportable segments | 147 | 155.5 | 169.3 | ||||||||
Corporate(*) | (35.5 | ) | (32.2 | ) | (35.8 | ) | |||||
| | | | | | | | | | | |
Consolidated operating income | 111.5 | 123.3 | 133.5 | ||||||||
Interest income | 0.6 | 0.7 | 1 | ||||||||
Interest expense | (21.5 | ) | (24.6 | ) | (25.8 | ) | |||||
Other income (expense), net | (2.8 | ) | 0.8 | (0.8 | ) | ||||||
| | | | | | | | | | | |
Income from continuing operations before income taxes | $ | 87.8 | $ | 100.2 | $ | 107.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Identifiable assets (at end of period) | |||||||||||
Americas | $ | 787.9 | $ | 810.9 | $ | 814.3 | |||||
EMEA | 869.6 | 802.1 | 759.8 | ||||||||
Asia Pacific | 82.7 | 84.3 | 92.5 | ||||||||
Discontinued operations | — | 11.7 | 27.4 | ||||||||
| | | | | | | | | | | |
Consolidated identifiable assets | $ | 1,740.20 | $ | 1,709.00 | $ | 1,694.00 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Property, plant and equipment, net (at end of period) | |||||||||||
Americas | $ | 85.8 | $ | 80.6 | $ | 74.8 | |||||
EMEA | 119.8 | 126.3 | 130.6 | ||||||||
Asia Pacific | 14.3 | 14.8 | 15 | ||||||||
| | | | | | | | | | | |
Consolidated long-lived assets | $ | 219.9 | $ | 221.7 | $ | 220.4 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Capital Expenditures | |||||||||||
Americas | $ | 18 | $ | 17.9 | $ | 8.3 | |||||
EMEA | 8.5 | 10.7 | 13.5 | ||||||||
Asia Pacific | 1.2 | 1.9 | 0.7 | ||||||||
| | | | | | | | | | | |
Consolidated capital expenditures | $ | 27.7 | $ | 30.5 | $ | 22.5 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and Amortization | |||||||||||
Americas | $ | 20.5 | $ | 19.6 | $ | 18.7 | |||||
EMEA | 26 | 26.8 | 27.2 | ||||||||
Asia Pacific | 2.4 | 2.1 | 2 | ||||||||
| | | | | | | | | | | |
Consolidated depreciation and amortization | $ | 48.9 | $ | 48.5 | $ | 47.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
* | |||||||||||
Corporate expenses are primarily for administrative compensation expense, internal controls costs, professional fees, including legal and audit expenses, shareholder services and benefit administration costs. These costs are not allocated to the geographic segments as they are viewed as corporate functions that support all activities. | |||||||||||
The following includes U.S. net sales and U.S. property, plant and equipment of the Company's Americas segment: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
U.S. net sales | $ | 788.7 | $ | 747.4 | $ | 732.9 | |||||
U.S. property, plant and equipment, net (at end of period) | $ | 81.1 | $ | 75.1 | $ | 69.9 | |||||
The following includes intersegment sales for Americas, EMEA and Asia Pacific: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Intersegment Sales | |||||||||||
Americas | $ | 5.4 | $ | 5.3 | $ | 3.3 | |||||
EMEA | 10.2 | 10.9 | 8.4 | ||||||||
Asia Pacific | 170.9 | 139 | 132.9 | ||||||||
| | | | | | | | | | | |
Intersegment sales | $ | 186.5 | $ | 155.2 | $ | 144.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company sells its products into various end markets around the world and groups net sales to third parties into four product categories. As a result of the EMEA transformation program, the Company reallocated revenues of approximately $90.0 million and $100.0 million in 2012 and 2011, respectively, from HVAC & gas to Residential & commercial flow control from what was previously reported. The reallocation is based on the alignment of certain subsidiaries within these product groupings. The adjustment to the disclosure has no effect on the consolidated financial statements. Net sales to third parties for the four product categories are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net Sales | |||||||||||
Residential & commercial flow control | $ | 907.7 | $ | 879.2 | $ | 854.9 | |||||
HVAC & gas | 348.8 | 337 | 347 | ||||||||
Drains & water re-use | 140 | 138.8 | 135.3 | ||||||||
Water quality | 77 | 72.4 | 70.2 | ||||||||
| | | | | | | | | | | |
Consolidated net sales | $ | 1,473.50 | $ | 1,427.40 | $ | 1,407.40 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Information (unaudited) | ' | |||||||||||||
Quarterly Financial Information (unaudited) | ' | |||||||||||||
(17) Quarterly Financial Information (unaudited) | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in millions, except per share information) | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||
Net sales | $ | 358.9 | $ | 366.8 | $ | 371.8 | $ | 376 | ||||||
Gross profit | 128.9 | 132.8 | 133.9 | 130.9 | ||||||||||
Income from continuing operations | 16.3 | 18.9 | 17.5 | 8.2 | ||||||||||
Net income | 16.1 | 18.9 | 15.4 | 8.2 | ||||||||||
Per common share: | ||||||||||||||
Basic | ||||||||||||||
Income from continuing operations | 0.46 | 0.53 | 0.49 | 0.23 | ||||||||||
Net income | 0.45 | 0.53 | 0.43 | 0.23 | ||||||||||
Diluted | ||||||||||||||
Income from continuing operations | 0.46 | 0.53 | 0.49 | 0.23 | ||||||||||
Net income | 0.45 | 0.53 | 0.43 | 0.23 | ||||||||||
Dividends per common share | 0.11 | 0.13 | 0.13 | 0.13 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||
Net sales | $ | 357.6 | $ | 362.5 | $ | 352.8 | $ | 354.5 | ||||||
Gross profit | 127.8 | 129.4 | 127.7 | 128.6 | ||||||||||
Income from continuing operations | 15.7 | 18.2 | 18.3 | 18.2 | ||||||||||
Net income | 15.7 | 18.5 | 18.7 | 15.5 | ||||||||||
Per common share: | ||||||||||||||
Basic | ||||||||||||||
Income from continuing operations | 0.42 | 0.5 | 0.52 | 0.51 | ||||||||||
Net income | 0.42 | 0.51 | 0.53 | 0.44 | ||||||||||
Diluted | ||||||||||||||
Income from continuing operations | 0.42 | 0.5 | 0.52 | 0.51 | ||||||||||
Net income | 0.42 | 0.51 | 0.53 | 0.44 | ||||||||||
Dividends per common share | 0.11 | 0.11 | 0.11 | 0.11 | ||||||||||
In the fourth quarter of 2013, the Company recorded legal costs related to the agreement in principle to settle all claims in the Trabakoolas et al., v. Watts Water Technologies, Inc., et al., matter pending in the United States District Court for the Northern District of California. The net settlement expense recorded in income from continuing operations was $13.6 million. Please see Note 14 for additional information. Also in the fourth quarter of 2013, the Company recorded customer rebate expense of approximately $3.0 million that related to accrual adjustments for 2013. | ||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
(18) Subsequent Events | |
On January 9, 2014, David J. Coghlan resigned from his positions as Chief Executive Officer, President and Director of the Company and our Board of Directors appointed Dean P. Freeman, our Executive Vice President and Chief Financial Officer, to serve as interim Chief Executive Officer and President of the Company. The Company's Board of Directors has initiated a search for the Company's next Chief Executive Officer and President. | |
On February 18, 2014, the Company declared a quarterly dividend of thirteen cents ($0.13) per share on each outstanding share of Class A common stock and Class B common stock. | |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | ||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | ||||||||||||||||
Balance At | Additions | Additions | Deductions | Balance At | |||||||||||||
Beginning of | Charged To | Charged To | End of | ||||||||||||||
Period | Expense | Other Accounts | Period | ||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Allowance for doubtful accounts | $ | 8.7 | 1.1 | 0.3 | (1.2 | ) | $ | 8.9 | |||||||||
Reserve for excess and obsolete inventories | $ | 23.5 | 6.1 | 1.3 | (4.9 | ) | $ | 26 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 8.9 | 1.2 | 1 | (1.6 | ) | $ | 9.5 | |||||||||
Reserve for excess and obsolete inventories | $ | 26 | 6.6 | 0.4 | (6.2 | ) | $ | 26.8 | |||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 9.5 | 1.2 | 0.2 | (1.2 | ) | $ | 9.7 | |||||||||
Reserve for excess and obsolete inventories | $ | 26.8 | 8.1 | 0.3 | (7.3 | ) | $ | 27.9 | |||||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Accounting Policies | ' | ||||||||||||||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its majority and wholly owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |||||||||||||||||||||||||||||
Cash Equivalents | ' | ||||||||||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||||||||||
Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of certificates of deposit and money market funds, for which the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||
Investment securities at December 31, 2012 consisted of certificates of deposit with original maturities of greater than three months. The Company did not hold investment securities at December 31, 2013. | |||||||||||||||||||||||||||||
Trading securities are recorded at fair value. The Company determines the fair value by obtaining market value when available from quoted prices in active markets. In the absence of quoted prices, the Company uses other inputs to determine the fair value of the investments. All changes in the fair value as well as any realized gains and losses from the sale of the securities are recorded when incurred to the consolidated statements of operations as other income or expense. | |||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||||||||||
Allowance for doubtful accounts includes reserves for bad debts, sales returns and allowances and cash discounts. The Company analyzes the aging of accounts receivable, individual accounts receivable, historical bad debts, concentration of receivables by customer, customer credit worthiness, current economic trends, and changes in customer payment terms. The Company specifically analyzes individual accounts receivable and establishes specific reserves against financially troubled customers. In addition, factors are developed in certain regions utilizing historical trends of sales and returns and allowances and cash discount activities to derive a reserve for returns and allowances and cash discounts. | |||||||||||||||||||||||||||||
Concentration of Credit | ' | ||||||||||||||||||||||||||||
Concentration of Credit | |||||||||||||||||||||||||||||
The Company sells products to a diversified customer base and, therefore, has no significant concentrations of credit risk. In 2013 and 2012, no customer accounted for 10% or more of the Company's total sales. | |||||||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||||||
Inventories are stated at the lower of cost (using primarily the first-in, first-out method) or market. Market value is determined by replacement cost or net realizable value. Historical usage is used as the basis for determining the reserve for excess or obsolete inventories. | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||||||
Goodwill is recorded when the consideration paid for acquisitions exceeds the fair value of net tangible and intangible assets acquired. Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather are tested at least annually for impairment. The test for 2013 was performed as of October 27, 2013. | |||||||||||||||||||||||||||||
Impairment of Goodwill and Long-Lived Assets | ' | ||||||||||||||||||||||||||||
Impairment of Goodwill and Long-Lived Assets | |||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill by geographic segment are as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2013 | ||||||||||||||||||||||
2013 | the | Translation | 2013 | 2013 | the Period | 2013 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 225.6 | $ | — | $ | (0.9 | ) | $ | 224.7 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 200.2 | |||||||||
EMEA | 289.7 | — | 11.6 | 301.3 | — | — | — | 301.3 | |||||||||||||||||||||
Asia Pacific | 12.9 | — | 0.4 | 13.3 | — | — | — | 13.3 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 528.2 | $ | — | $ | 11.1 | $ | 539.3 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 514.8 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2012 | ||||||||||||||||||||||
2012 | the | Translation | 2012 | 2012 | the Period | 2012 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 213.8 | $ | 11.7 | $ | 0.1 | $ | 225.6 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 201.4 | ||||||||||
EMEA | 281.1 | — | 8.6 | 289.7 | — | — | — | 289.7 | |||||||||||||||||||||
Asia Pacific | 12.7 | — | 0.2 | 12.9 | — | — | — | 12.9 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 507.6 | $ | 11.7 | $ | 8.9 | $ | 528.2 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 504 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Goodwill is tested for impairment at least annually or more frequently if events or circumstances indicate that it is "more likely than not" that goodwill might be impaired, such as a change in business conditions. The Company performs its annual goodwill impairment assessment in the fourth quarter of each year. | |||||||||||||||||||||||||||||
The Company determined that the future prospects for its Blue Ridge Atlantic Enterprises, Inc. (BRAE) reporting unit in the Americas were lower than originally estimated as future sales growth expectations had been reduced a number of times since the 2010 acquisition of BRAE. The Company recorded pre-tax goodwill impairment charges of $0.3 million, $1.0 million and $1.2 million in 2013, 2012 and 2011, respectively, for that reporting unit. The BRAE goodwill balance was fully impaired in 2013. The goodwill impairment charges were offset by the reduction in anticipated earnout payments of equal amounts, with no remaining earnout liability as of December 31, 2013. The Company estimated the fair value of the reporting unit using the expected present value of future cash flows. | |||||||||||||||||||||||||||||
As of October 28, 2012, which was the previous annual impairment analysis date, the fair value of the EMEA reporting unit exceeded the carrying value by approximately 40%. The EMEA reporting unit represents the EMEA geographic segment excluding the Blücher reporting unit. During the six months ended June 30, 2013, operating results for the EMEA reporting unit had been hindered by the downturn in the economic environment in Europe and continued to fall below the expected operating results and growth rates used in the calculation of the present value of future cash flow projections, triggering the decision to update the impairment analysis. As a result of the fair value assessment, it was determined that the fair value of the EMEA reporting unit decreased from the prior year but continued to exceed its carrying value as of June 30, 2013. An updated fair value assessment was performed at the annual impairment date of October 27, 2013. The updated fair value assessment determined that the fair value of the EMEA reporting continued to exceed its carrying value by approximately 20% in 2013. | |||||||||||||||||||||||||||||
On January 31, 2012, the Company completed the acquisition of tekmar Control Systems (tekmar) in a share purchase transaction. The initial purchase price paid was CAD $18.0 million, with post-closing adjustments related to working capital and an earnout based on the attainment of certain future earnings levels. The initial purchase price paid was equal to approximately $17.8 million based on the exchange rate of Canadian dollar to U.S. dollar as of January 31, 2012. The total purchase price will not exceed CAD $26.2 million. The Company accounted for the transaction as a business combination. In January 2013, the Company completed a purchase price allocation that resulted in the recognition of $11.7 million in goodwill and $10.1 million in intangible assets (see Note 5). | |||||||||||||||||||||||||||||
Indefinite-lived intangibles are tested for impairment at least annually or more frequently if events or circumstances, such as a change in business conditions, indicate that it is "more likely than not" that the intangible asset might be impaired. The Company performs its annual indefinite-lived intangibles impairment assessment in the fourth quarter of each year. For the 2013, 2012 and 2011 impairment assessments, the Company performed quantitative assessments for all indefinite-lived intangible assets. The methodology employed was the relief from royalty method, a subset of the income approach. Based on the results of the assessment the Company recognized non-cash pre-tax impairment charges in 2013, 2012 and 2011 of approximately $0.7 million, $0.4 million and $1.4 million, respectively. The impairment charge of $0.7 million in 2013 consists of a $0.3 million impairment charge for a trade name in the Americas segment and a $0.4 million impairment charge for two trade names in the EMEA segment. The gross carrying amount in the table below reflects the impairment charges. | |||||||||||||||||||||||||||||
Intangible assets with estimable lives and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of intangible assets with estimable lives and other long-lived assets is measured by a comparison of the carrying amount of an asset or asset group to future net undiscounted pretax cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset or asset group exceeds the related estimated fair value. Estimated fair value is based on either discounted future pretax operating cash flows or appraised values, depending on the nature of the asset. The Company determines the discount rate for this analysis based on the weighted average cost of capital based on the market and guideline public companies for the related businesses and does not allocate interest charges to the asset or asset group being measured. Judgment is required to estimate future operating cash flows. | |||||||||||||||||||||||||||||
Intangible assets include the following: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Patents | $ | 16.6 | $ | (12.6 | ) | $ | 4 | $ | 16.5 | $ | (11.7 | ) | $ | 4.8 | |||||||||||||||
Customer relationships | 133 | (76.4 | ) | 56.6 | 131.4 | (65.9 | ) | 65.5 | |||||||||||||||||||||
Technology | 26.9 | (10.9 | ) | 16 | 27.4 | (9.0 | ) | 18.4 | |||||||||||||||||||||
Trade names | 13.7 | (3.0 | ) | 10.7 | 13.5 | (1.8 | ) | 11.7 | |||||||||||||||||||||
Other | 8.8 | (5.6 | ) | 3.2 | 8.7 | (5.5 | ) | 3.2 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total amortizable intangibles | 199 | (108.5 | ) | 90.5 | 197.5 | (93.9 | ) | 103.6 | |||||||||||||||||||||
Indefinite-lived intangible assets | 41.9 | — | 41.9 | 41.8 | — | 41.8 | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total | $ | 240.9 | $ | (108.5 | ) | $ | 132.4 | $ | 239.3 | $ | (93.9 | ) | $ | 145.4 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Aggregate amortization expense for amortized intangible assets for 2013, 2012 and 2011 was $14.7 million, $15.4 million and $15.8 million, respectively. Additionally, future amortization expense on amortizable intangible assets is expected to be $14.9 million for 2014, $14.7 million for 2015, $14.2 million for 2016, $13.8 million for 2017, and $10.0 million for 2018. Amortization expense is provided on a straight-line basis over the estimated useful lives of the intangible assets. The weighted-average remaining life of total amortizable intangible assets is 8.4 years. Patents, customer relationships, technology, trade names and other amortizable intangibles have weighted-average remaining lives of 5.6 years, 5.6 years, 11.4 years, 10.9 years and 40.2 years, respectively. Indefinite-lived intangible assets primarily include trade names and trademarks. | |||||||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, which range from 10 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment. | |||||||||||||||||||||||||||||
Taxes, Other than Income Taxes | ' | ||||||||||||||||||||||||||||
Taxes, Other than Income Taxes | |||||||||||||||||||||||||||||
Taxes assessed by governmental authorities on sale transactions are recorded on a net basis and excluded from sales in the Company's consolidated statements of operations. | |||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||||||||||||||
The Company recognizes tax benefits when the item in question meets the more-likely-than-not (greater than 50% likelihood of being sustained upon examination by the taxing authorities) threshold. During 2013, due to the completion of the federal audit, unrecognized tax benefits decreased by approximately $3.7 million related to an adjustment to temporary differences that did not impact overall income tax expense. | |||||||||||||||||||||||||||||
As of December 31, 2013, the Company had gross unrecognized tax benefits of approximately $0.8 million, approximately $0.2 million of which, if recognized, would affect the effective tax rate. The difference between the amount of unrecognized tax benefits and the amount that would affect the effective tax rate consists of the federal tax benefit of state income tax items as well as a liability related to the 2011 acquisition of Danfoss Socla S.A.S (Socla) in France that will be recoverable under the terms of the acquisition agreement. | |||||||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4.6 | |||||||||||||||||||||||||||
Increases related to prior year tax positions | 0.1 | ||||||||||||||||||||||||||||
Decreases related to prior year tax positions | (0.2 | ) | |||||||||||||||||||||||||||
Settlements | (3.7 | ) | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 0.8 | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
In February 2013, the United States Internal Revenue Service concluded an audit of the Company's 2009, 2010 and 2011 tax years. The Company conducts business in a variety of locations throughout the world resulting in tax filings in numerous domestic and foreign jurisdictions. The Company is subject to tax examinations regularly as part of the normal course of business. The Company's major jurisdictions are the U.S., Canada, China, Netherlands, U.K., Germany, Italy and France. With few exceptions the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2007. The statute of limitations in our major jurisdictions is open in the U.S. for the year 2010 and later; in Canada for 2009 and later; and in the Netherlands for 2012 and later. | |||||||||||||||||||||||||||||
The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. | |||||||||||||||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||||||||||||||
Foreign Currency Translation | |||||||||||||||||||||||||||||
The financial statements of subsidiaries located outside the United States generally are measured using the local currency as the functional currency. Balance sheet accounts, including goodwill, of foreign subsidiaries are translated into United States dollars at year-end exchange rates. Income and expense items are translated at weighted average exchange rates for each period. Net translation gains or losses are included in other comprehensive income, a separate component of stockholders' equity. The Company does not provide for U.S. income taxes on foreign currency translation adjustments since it does not provide for such taxes on undistributed earnings of foreign subsidiaries. Gains and losses from foreign currency transactions of these subsidiaries are included in net earnings. | |||||||||||||||||||||||||||||
Stock-Based Compensation, Former Chief Executive Officer Separation Costs and Former Chief Financial Officer Retention Costs | ' | ||||||||||||||||||||||||||||
Stock-Based Compensation, Former Chief Executive Officer Separation Costs and Former Chief Financial Officer Retention Costs | |||||||||||||||||||||||||||||
The Company records compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards. Stock-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. The benefits associated with tax deductions in excess of recognized compensation cost are reported as a financing cash flow. | |||||||||||||||||||||||||||||
At December 31, 2013, the Company had two stock-based compensation plans with total unrecognized compensation costs related to unvested stock-based compensation arrangements of approximately $20.8 million and a total weighted average remaining term of 2.5 years. Included in the $20.8 million of unrecognized compensation costs is $4.5 million related to equity awards previously granted to David J. Coghlan, the Company's former Chief Executive Officer, which will not be recognized. Refer to Note 18 for details on Mr. Coghlan's resignation on January 9, 2014. For 2013, 2012 and 2011, the Company recognized compensation costs related to stock-based programs of approximately $9.6 million, $5.8 million and $5.3 million, respectively, in selling, general and administrative expenses. The Company recorded approximately $1.2 million of tax benefits during 2013 and $0.7 million in 2012 and 2011 for the compensation expense relating to its stock options. For 2013, 2012 and 2011, the Company recorded approximately $1.9 million, $1.4 million and $1.5 million, respectively, of tax benefit for its other stock-based plans. For 2013, 2012 and 2011, the recognition of total stock-based compensation expense impacted both basic and diluted net income per common share by $0.14, $0.10 and $0.09, respectively. | |||||||||||||||||||||||||||||
On May 23, 2012, William C. McCartney resigned from his position as Chief Financial Officer of the Company. Pursuant to the retention agreement entered into with Mr. McCartney, the Company recorded a charge of $1.5 million over the retention period, consisting of cash payments of $0.7 million and a non-cash charge of $0.8 million for the modification of stock options and restricted stock awards | |||||||||||||||||||||||||||||
On January 26, 2011, Patrick S. O'Keefe resigned from his positions as Chief Executive Officer, President and Director. Pursuant to a separation agreement, the Company recorded a charge of $6.3 million consisting of $3.3 million in expected cash severance and a non-cash charge of $3.0 million for the modification of stock options and restricted stock awards. | |||||||||||||||||||||||||||||
Net Income Per Common Share | ' | ||||||||||||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||||||||
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding. The calculation of diluted income per share assumes the conversion of all dilutive securities (see Note 12). | |||||||||||||||||||||||||||||
Net income and number of shares used to compute net income per share, basic and assuming full dilution, are reconciled below: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Net | Shares | Per | Net | Shares | Per | Net | Shares | Per | |||||||||||||||||||||
Income | Share | Income | Share | Income | Share | ||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||
(Amounts in millions, except per share information) | |||||||||||||||||||||||||||||
Basic EPS | $ | 58.6 | 35.5 | $ | 1.65 | $ | 68.4 | 36 | $ | 1.9 | $ | 66.4 | 37.3 | $ | 1.78 | ||||||||||||||
Dilutive securities, principally common stock options | — | 0.1 | — | — | 0.1 | — | — | 0.2 | — | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | $ | 58.6 | 35.6 | $ | 1.65 | $ | 68.4 | 36.1 | $ | 1.9 | $ | 66.4 | 37.5 | $ | 1.78 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The computation of diluted net income per share for the years ended December 31, 2013, 2012 and 2011 excludes the effect of the potential exercise of options to purchase approximately 0.2 million, 0.2 million and 0.7 million shares, respectively, because the exercise price of the option was greater than the average market price of the Class A common stock and the effect would have been anti-dilutive. | |||||||||||||||||||||||||||||
On April 30, 2013, the Board of Directors authorized the repurchase of up to $90.0 million of the Company's Class A common stock from time to time on the open market or in privately negotiated transactions. The timing and number of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of any Rule 10b5-1 plan the Company may enter into with respect to the repurchase program. During the year ended December 31, 2013, the Company repurchased approximately 454,000 shares of Class A common stock at a cost of approximately $23.0 million. | |||||||||||||||||||||||||||||
On May 16, 2012, the Board of Directors authorized a stock repurchase program of up to two million shares of the Company's Class A common stock. The stock repurchase program was completed in July 2012, as the Company repurchased the entire two million shares of Class A common stock at a cost of approximately $65.8 million. | |||||||||||||||||||||||||||||
On August 2, 2011, the Board of Directors authorized a stock repurchase program. Under the program, the Company was authorized to repurchase up to one million shares of our Class A common stock. During the three months ended October 2, 2011, the Company repurchased the entire one million shares at a cost of $27.2 million. | |||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||
In the normal course of business, the Company manages risks associated with commodity prices, foreign exchange rates and interest rates through a variety of strategies, including the use of hedging transactions, executed in accordance with the Company's policies. The Company's hedging transactions include, but are not limited to, the use of various derivative financial and commodity instruments. As a matter of policy, the Company does not use derivative instruments unless there is an underlying exposure. Any change in value of the derivative instruments would be substantially offset by an opposite change in the value of the underlying hedged items. The Company does not use derivative instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
Derivative instruments may be designated and accounted for as either a hedge of a recognized asset or liability (fair value hedge) or a hedge of a forecasted transaction (cash flow hedge). For a fair value hedge, both the effective and ineffective portions of the change in fair value of the derivative instrument, along with an adjustment to the carrying amount of the hedged item for fair value changes attributable to the hedged risk, are recognized in earnings. For a cash flow hedge, changes in the fair value of the derivative instrument that are highly effective are deferred in accumulated other comprehensive income or loss until the underlying hedged item is recognized in earnings. There were no cash flow hedges as of December 31, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||
If a fair value or cash flow hedge were to cease to qualify for hedge accounting or be terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If a forecasted transaction were no longer probable of occurring, amounts previously deferred in accumulated other comprehensive income would be recognized immediately in earnings. On occasion, the Company may enter into a derivative instrument that does not qualify for hedge accounting because it is entered into to offset changes in the fair value of an underlying transaction which is required to be recognized in earnings (natural hedge). These instruments are reflected in the Consolidated Balance Sheets at fair value with changes in fair value recognized in earnings. | |||||||||||||||||||||||||||||
Foreign currency derivatives include forward foreign exchange contracts primarily for Canadian dollars. Metal derivatives include commodity swaps for copper. | |||||||||||||||||||||||||||||
Portions of the Company's outstanding debt are exposed to interest rate risks. The Company monitors its interest rate exposures on an ongoing basis to maximize the overall effectiveness of its interest rates. | |||||||||||||||||||||||||||||
Fair value Measurements | ' | ||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||
The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis and certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: | |||||||||||||||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||||||||||||
Assets and liabilities subject to this hierarchy are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |||||||||||||||||||||||||||||
Shipping and Handling | ' | ||||||||||||||||||||||||||||
Shipping and Handling | |||||||||||||||||||||||||||||
Shipping and handling costs included in selling, general and administrative expense amounted to $38.4 million, $37.0 million and $36.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Research and Development | ' | ||||||||||||||||||||||||||||
Research and Development | |||||||||||||||||||||||||||||
Research and development costs included in selling, general, and administrative expense amounted to $21.5 million, $20.4 million and $20.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||||||
The Company recognizes revenue when all of the following criteria have been met: the Company has entered into a binding agreement, the product has been shipped and title passes, the sales price to the customer is fixed or is determinable, and collectability is reasonably assured. Provisions for estimated returns and allowances are made at the time of sale, and are recorded as a reduction of sales and included in the allowance for doubtful accounts in the Consolidated Balance Sheets. The Company records provisions for sales incentives (primarily volume rebates), as an adjustment to net sales, at the time of sale based on estimated purchase targets. | |||||||||||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||||||
Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to permit comparison with the 2013 presentation. These reclassifications had no effect on reported results of operations or stockholders' equity. | |||||||||||||||||||||||||||||
Estimates | ' | ||||||||||||||||||||||||||||
Estimates | |||||||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. | |||||||||||||||||||||||||||||
New Accounting Standards | ' | ||||||||||||||||||||||||||||
New Accounting Standards | |||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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" which is intended to eliminate the diversity in practice in the presentation of unrecognized tax benefits in those instances. ASU 2013-11 is effective for fiscal years and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU is intended to eliminate diversity in practice on the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted, and must be applied prospectively. The Company early adopted the ASU in 2013. The adoption of this guidance has not had a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which requires additional disclosures about amounts reclassified out of OCI by component, either on the face of the income statement or as a separate footnote to the financial statements. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this guidance has not had a material impact on the Company's financial statements. | |||||||||||||||||||||||||||||
Accounting_Policies_Tables
Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Accounting Policies | ' | ||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill by geographic segment | ' | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2013 | ||||||||||||||||||||||
2013 | the | Translation | 2013 | 2013 | the Period | 2013 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 225.6 | $ | — | $ | (0.9 | ) | $ | 224.7 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 200.2 | |||||||||
EMEA | 289.7 | — | 11.6 | 301.3 | — | — | — | 301.3 | |||||||||||||||||||||
Asia Pacific | 12.9 | — | 0.4 | 13.3 | — | — | — | 13.3 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 528.2 | $ | — | $ | 11.1 | $ | 539.3 | $ | (24.2 | ) | $ | (0.3 | ) | $ | (24.5 | ) | $ | 514.8 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Gross Balance | Accumulated Impairment Losses | Net Goodwill | |||||||||||||||||||||||||||
Balance | Acquired | Foreign | Balance | Balance | Impairment | Balance | December 31, | ||||||||||||||||||||||
January 1, | During | Currency | December 31, | January 1, | Loss During | December 31, | 2012 | ||||||||||||||||||||||
2012 | the | Translation | 2012 | 2012 | the Period | 2012 | |||||||||||||||||||||||
Period | and Other | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Americas | $ | 213.8 | $ | 11.7 | $ | 0.1 | $ | 225.6 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 201.4 | ||||||||||
EMEA | 281.1 | — | 8.6 | 289.7 | — | — | — | 289.7 | |||||||||||||||||||||
Asia Pacific | 12.7 | — | 0.2 | 12.9 | — | — | — | 12.9 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 507.6 | $ | 11.7 | $ | 8.9 | $ | 528.2 | $ | (23.2 | ) | $ | (1.0 | ) | $ | (24.2 | ) | $ | 504 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Intangible assets | ' | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Patents | $ | 16.6 | $ | (12.6 | ) | $ | 4 | $ | 16.5 | $ | (11.7 | ) | $ | 4.8 | |||||||||||||||
Customer relationships | 133 | (76.4 | ) | 56.6 | 131.4 | (65.9 | ) | 65.5 | |||||||||||||||||||||
Technology | 26.9 | (10.9 | ) | 16 | 27.4 | (9.0 | ) | 18.4 | |||||||||||||||||||||
Trade names | 13.7 | (3.0 | ) | 10.7 | 13.5 | (1.8 | ) | 11.7 | |||||||||||||||||||||
Other | 8.8 | (5.6 | ) | 3.2 | 8.7 | (5.5 | ) | 3.2 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total amortizable intangibles | 199 | (108.5 | ) | 90.5 | 197.5 | (93.9 | ) | 103.6 | |||||||||||||||||||||
Indefinite-lived intangible assets | 41.9 | — | 41.9 | 41.8 | — | 41.8 | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total | $ | 240.9 | $ | (108.5 | ) | $ | 132.4 | $ | 239.3 | $ | (93.9 | ) | $ | 145.4 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 4.6 | |||||||||||||||||||||||||||
Increases related to prior year tax positions | 0.1 | ||||||||||||||||||||||||||||
Decreases related to prior year tax positions | (0.2 | ) | |||||||||||||||||||||||||||
Settlements | (3.7 | ) | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 0.8 | |||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
Reconciliation of net income and number of shares used to compute net income per share, basic and assuming full dilution | ' | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Net | Shares | Per | Net | Shares | Per | Net | Shares | Per | |||||||||||||||||||||
Income | Share | Income | Share | Income | Share | ||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||
(Amounts in millions, except per share information) | |||||||||||||||||||||||||||||
Basic EPS | $ | 58.6 | 35.5 | $ | 1.65 | $ | 68.4 | 36 | $ | 1.9 | $ | 66.4 | 37.3 | $ | 1.78 | ||||||||||||||
Dilutive securities, principally common stock options | — | 0.1 | — | — | 0.1 | — | — | 0.2 | — | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | $ | 58.6 | 35.6 | $ | 1.65 | $ | 68.4 | 36.1 | $ | 1.9 | $ | 66.4 | 37.5 | $ | 1.78 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Summary of condensed operating statements for discontinued operations | ' | ||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Operating income—FCPA matter (CWV) | $ | — | $ | 1.1 | $ | 1.7 | |||||
Operating income—Flomatic | — | 1.3 | 0.4 | ||||||||
Loss on disposal—Flomatic | — | (3.8 | ) | — | |||||||
Operating (loss) income—Austroflex | (0.2 | ) | 0.2 | (16.9 | ) | ||||||
Loss on disposal—Austroflex | (2.2 | ) | — | — | |||||||
Other | — | 0.3 | 0.2 | ||||||||
| | | | | | | | | | | |
Loss before income taxes | (2.4 | ) | (0.9 | ) | (14.6 | ) | |||||
Income tax benefit (expense) | 0.1 | (1.1 | ) | 3.8 | |||||||
| | | | | | | | | | | |
Loss from discontinued operations, net of taxes | $ | (2.3 | ) | $ | (2.0 | ) | $ | (10.8 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Revenues reported in discontinued operations | ' | ||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Flomatic revenues | $ | — | $ | 12.9 | $ | 8.5 | |||||
Austroflex revenues | 9.5 | 18.2 | 20.7 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 9.5 | $ | 31.1 | $ | 29.2 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Restructuring_and_Other_Charge1
Restructuring and Other Charges, Net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||
Summary of the pre-tax cost by restructuring program | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Restructuring costs: | |||||||||||||||||
2010 Actions | $ | 0.7 | $ | 0.6 | $ | 3.3 | |||||||||||
2011 Actions | — | 1.1 | 3.1 | ||||||||||||||
2013 Actions | 4.1 | — | — | ||||||||||||||
Other Actions | 5.2 | 3.5 | 3.6 | ||||||||||||||
| | | | | | | | | | | |||||||
Total restructuring charges | 10 | 5.2 | 10 | ||||||||||||||
Adjustment related to contingent liability reduction | (0.2 | ) | (1.0 | ) | (1.2 | ) | |||||||||||
| | | | | | | | | | | |||||||
Less: amount included in cost of goods sold | (1.1 | ) | — | — | |||||||||||||
| | | | | | | | | | | |||||||
Total restructuring and other charges, net | $ | 8.7 | $ | 4.2 | $ | 8.8 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Summary of recorded pre-tax restructuring charges by business segments | ' | ||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Americas | $ | 1.3 | $ | 1.3 | $ | 1.2 | |||||||||||
EMEA | 8.7 | 3.9 | 8.6 | ||||||||||||||
Asia Pacific | — | — | 0.2 | ||||||||||||||
| | | | | | | | | | | |||||||
Total | $ | 10 | $ | 5.2 | $ | 10 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
2013 Actions | ' | ||||||||||||||||
Restructuring and other charges | ' | ||||||||||||||||
Summary of European footprint program reserve related to severance | ' | ||||||||||||||||
Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Net pre-tax restructuring charges | 4.1 | ||||||||||||||||
Utilization and foreign currency impact | (2.1 | ) | |||||||||||||||
| | | | | |||||||||||||
Balance at December 31, 2013 | $ | 2 | |||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Summary of total expected, incurred and remaining pre-tax costs for European footprint program actions by type | ' | ||||||||||||||||
Severance | Legal and | Asset | Facility | Total | |||||||||||||
consultancy | write-downs | exit | |||||||||||||||
and other | |||||||||||||||||
(in millions) | |||||||||||||||||
Expected costs | $ | 12.3 | $ | 1.3 | $ | 0.2 | $ | 0.2 | $ | 14 | |||||||
Costs incurred—2013 | (4.1 | ) | — | — | — | (4.1 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Remaining costs at December 31, 2013 | $ | 8.2 | $ | 1.3 | $ | 0.2 | $ | 0.2 | $ | 9.9 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Inventories_net_Tables
Inventories, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories, net | ' | |||||||
Schedule of inventories | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Raw materials | $ | 111.3 | $ | 110.8 | ||||
Work-in-process | 19.1 | 20.5 | ||||||
Finished goods | 179.8 | 156.7 | ||||||
| | | | | | | | |
$ | 310.2 | $ | 288 | |||||
| | | | | | | | |
| | | | | | | | |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment | ' | |||||||
Schedule of Property, plant and equipment | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 15.2 | $ | 15.8 | ||||
Buildings and improvements | 166.3 | 156.4 | ||||||
Machinery and equipment | 353.2 | 322.5 | ||||||
Construction in progress | 4.5 | 15.5 | ||||||
| | | | | | | | |
539.2 | 510.2 | |||||||
Accumulated depreciation | (319.3 | ) | (288.5 | ) | ||||
| | | | | | | | |
$ | 219.9 | $ | 221.7 | |||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of significant components of the Company's deferred income tax liabilities and assets | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in millions) | |||||||||||
Deferred income tax liabilities: | |||||||||||
Excess tax over book depreciation | $ | 22.4 | $ | 23.7 | |||||||
Intangibles | 29.1 | 30.5 | |||||||||
Other | 18.3 | 15.7 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 69.8 | 69.9 | |||||||||
Deferred income tax assets: | |||||||||||
Accrued expenses | 21.3 | 16.7 | |||||||||
Net operating loss carry-forward | 10.9 | 5.4 | |||||||||
Inventory reserves | 12.3 | 8.6 | |||||||||
Pension—accumulated other comprehensive income | 16.3 | 15.8 | |||||||||
Other | 9.8 | 14.9 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 70.6 | 61.4 | |||||||||
Less: valuation allowance | (13.1 | ) | (10.1 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | 57.5 | 51.3 | |||||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | (12.3 | ) | $ | (18.6 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of pre-tax income upon which provision for income taxes from continuing operations is based | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Domestic | $ | 21.6 | $ | 27.3 | $ | 39.6 | |||||
Foreign | 66.2 | 72.9 | 68.3 | ||||||||
| | | | | | | | | | | |
$ | 87.8 | $ | 100.2 | $ | 107.9 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of provision for income taxes from continuing operations | ' | ||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Current tax expense: | |||||||||||
Federal | $ | 12.8 | $ | 5 | $ | 6.9 | |||||
Foreign | 19.7 | 21.5 | 18.3 | ||||||||
State | 2.5 | 1.3 | 1.8 | ||||||||
| | | | | | | | | | | |
35 | 27.8 | 27 | |||||||||
| | | | | | | | | | | |
Deferred tax expense (benefit): | |||||||||||
Federal | (5.0 | ) | 4.4 | 5.5 | |||||||
Foreign | (2.3 | ) | (3.5 | ) | (3.0 | ) | |||||
State | (0.8 | ) | 1.1 | 1.2 | |||||||
| | | | | | | | | | | |
(8.1 | ) | 2 | 3.7 | ||||||||
| | | | | | | | | | | |
$ | 26.9 | $ | 29.8 | $ | 30.7 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of federal statutory taxes to actual income taxes reported from continuing operations | ' | ||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Computed expected federal income expense | $ | 30.8 | $ | 35 | $ | 37.8 | |||||
State income taxes, net of federal tax benefit | 1 | 1.5 | 1.9 | ||||||||
Foreign tax rate differential | (5.7 | ) | (7.4 | ) | (4.4 | ) | |||||
China tax clawback | — | — | (4.2 | ) | |||||||
Other, net | 0.8 | 0.7 | (0.4 | ) | |||||||
| | | | | | | | | | | |
$ | 26.9 | $ | 29.8 | $ | 30.7 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accrued Expenses and Other Liabilities | ' | |||||||
Schedule of accrued expenses and other liabilities | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Commissions and sales incentives payable | $ | 40.5 | $ | 40.6 | ||||
Product liability and workers' compensation | 33.5 | 31.4 | ||||||
Other | 56.6 | 42.5 | ||||||
Income taxes payable | 4.6 | 2.1 | ||||||
| | | | | | | | |
$ | 135.2 | $ | 116.6 | |||||
| | | | | | | | |
| | | | | | | | |
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Financing Arrangements | ' | |||||||
Schedule of long-term debt | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
5.85% notes due April 2016 | $ | 225 | $ | 225 | ||||
5.47% notes due May 2013 | — | 75 | ||||||
5.05% notes due June 2020 | 75 | 75 | ||||||
Other—consists primarily of European borrowings (at interest rates ranging from 5.0% to 6.0%) | 7.7 | 9.6 | ||||||
| | | | | | | | |
307.7 | 384.6 | |||||||
Less Current Maturities | 2.2 | 77.1 | ||||||
| | | | | | | | |
$ | 305.5 | $ | 307.5 | |||||
| | | | | | | | |
| | | | | | | | |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||
Schedule of stock option activity and related information | ' | ||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Options | Weighted | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
Exercise | Intrinsic | Exercise | Exercise | ||||||||||||||||||||
Price | Value | Price | Price | ||||||||||||||||||||
(Options in thousands) | |||||||||||||||||||||||
Outstanding at beginning of year | 1,064 | $ | 33.37 | 1,272 | $ | 30.43 | 1,303 | $ | 29 | ||||||||||||||
Granted | 379 | 54.78 | 415 | 37.67 | 295 | 29.39 | |||||||||||||||||
Cancelled/Forfeitures | (53 | ) | 36.97 | (33 | ) | 31.18 | (78 | ) | 30.38 | ||||||||||||||
Exercised | (361 | ) | 31.73 | (590 | ) | 30.19 | (248 | ) | 21.68 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of year | 1,029 | $ | 41.66 | $ | 20.21 | 1,064 | $ | 33.37 | 1,272 | $ | 30.43 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Exercisable at end of year | 249 | $ | 32.35 | $ | 29.52 | 360 | $ | 30.91 | 745 | $ | 30.61 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Schedule of information about options outstanding | ' | ||||||||||||||||||||||
The following table summarizes information about options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||||
Outstanding | Remaining Contractual | Exercise | Exercisable | Exercise | |||||||||||||||||||
Life (years) | Price | Price | |||||||||||||||||||||
(Options in thousands) | |||||||||||||||||||||||
$26.34–$33.65 | 305 | 3.97 | $ | 30.18 | 174 | $ | 30.16 | ||||||||||||||||
$35.20–$35.70 | 10 | 3.8 | 35.35 | 10 | 35.35 | ||||||||||||||||||
$37.41–$37.41 | 301 | 6.05 | 37.41 | 55 | 37.41 | ||||||||||||||||||
$40.17–$57.95 | 413 | 7.93 | 53.4 | 10 | 40.17 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
1,029 | 6.17 | $ | 41.66 | 249 | $ | 32.35 | |||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Schedule of weighted average assumptions used to estimate the grant-date fair value of share issued under the 2004 Stock Incentive Plan | ' | ||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected life (years) | 6 | 6 | 6 | ||||||||||||||||||||
Expected stock price volatility | 40.3 | % | 41.2 | % | 40.9 | % | |||||||||||||||||
Expected dividend yield | 1 | % | 1.2 | % | 1.5 | % | |||||||||||||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 1.6 | % | |||||||||||||||||
Schedule of unvested restricted stock and deferred shares activity and related information | ' | ||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||||||
Unvested at beginning of year | 237 | $ | 35.45 | 153 | $ | 30.33 | 162 | $ | 31.39 | ||||||||||||||
Granted | 142 | 54.8 | 170 | 37.62 | 115 | 29.51 | |||||||||||||||||
Cancelled/Forfeitures | (16 | ) | 37.44 | (8 | ) | 30.66 | (14 | ) | 31.12 | ||||||||||||||
Vested | (103 | ) | 35.25 | (78 | ) | 30.61 | (110 | ) | 30.94 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Unvested at end of year | 260 | $ | 45.58 | 237 | $ | 35.45 | 153 | $ | 30.33 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Schedule of the Company's RSU activity and related information | ' | ||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
RSUs | Weighted | Weighted | RSUs | Weighted | RSUs | Weighted | |||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
Purchase | Intrinsic | Purchase | Purchase | ||||||||||||||||||||
Price | Value | Price | Price | ||||||||||||||||||||
(RSU's in thousands) | |||||||||||||||||||||||
Outstanding at beginning of period | 196 | $ | 22.88 | 392 | $ | 18.74 | 361 | $ | 16.92 | ||||||||||||||
Granted | 45 | 31.63 | 64 | 99 | 25.15 | ||||||||||||||||||
Cancelled/Forfeitures | (14 | ) | 28.35 | (110 | ) | (10 | ) | 20.92 | |||||||||||||||
Settled | (95 | ) | 19.19 | (150 | ) | (58 | ) | 18.01 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of period | 132 | $ | 27.46 | $ | 34.41 | 196 | $ | 22.88 | 392 | $ | 18.74 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Vested at end of period | 42 | $ | 25.3 | $ | 36.57 | 81 | $ | 20.36 | 157 | $ | 15.57 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Schedule of information about RSUs outstanding | ' | ||||||||||||||||||||||
RSUs Outstanding | RSUs Vested | ||||||||||||||||||||||
Range of Purchase Prices | Number | Weighted Average | Number | Weighted Average | |||||||||||||||||||
Outstanding | Purchase | Vested | Purchase | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||||
(RSUs in thousands) | |||||||||||||||||||||||
$13.25–$19.87 | 2 | $ | 16.21 | 2 | $ | 16.21 | |||||||||||||||||
$25.15–$26.51 | 91 | 25.88 | 40 | 25.69 | |||||||||||||||||||
$31.63–$31.63 | 39 | 31.63 | — | — | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
132 | $ | 27.46 | 42 | $ | 25.3 | ||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Schedule of weighted average assumptions used to estimate the grant-date fair value of restricted stock units | ' | ||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected life (years) | 3 | 3 | 3 | ||||||||||||||||||||
Expected stock price volatility | 34.1 | % | 38.3 | % | 44.9 | % | |||||||||||||||||
Expected dividend yield | 0.9 | % | 1.1 | % | 1.2 | % | |||||||||||||||||
Risk-free interest rate | 0.4 | % | 0.4 | % | 1.2 | % | |||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||||
Schedule of funded status of the defined benefit plans and amounts recognized in the consolidated balance sheets | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||||||||
Balance at beginning of the year | $ | 138 | $ | 121.2 | ||||||||||||||||||||||
Service cost | 0.5 | 0.6 | ||||||||||||||||||||||||
Administration costs paid | (0.8 | ) | (0.9 | ) | ||||||||||||||||||||||
Interest cost | 5.4 | 5.7 | ||||||||||||||||||||||||
Actuarial (gain) loss | (12.5 | ) | 15.6 | |||||||||||||||||||||||
Benefits paid | (4.3 | ) | (4.2 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at end of year | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||||||||
Balance at beginning of the year | $ | 115.8 | $ | 108.4 | ||||||||||||||||||||||
Actual (loss) gain on assets | (7.7 | ) | 11.8 | |||||||||||||||||||||||
Employer contributions | 0.7 | 0.7 | ||||||||||||||||||||||||
Administration costs paid | (0.8 | ) | (0.9 | ) | ||||||||||||||||||||||
Benefits paid | (4.3 | ) | (4.2 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Fair value of plan assets at end of the year | $ | 103.7 | $ | 115.8 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Funded status at end of year | $ | (22.6 | ) | $ | (22.2 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Schedule of amounts recognized in the consolidated balance sheets | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Current liabilities | $ | (0.6 | ) | $ | (0.6 | ) | ||||||||||||||||||||
Noncurrent liabilities | (22.0 | ) | (21.6 | ) | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Net amount recognized | $ | (22.6 | ) | $ | (22.2 | ) | ||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Schedule of amounts recognized in accumulated other comprehensive income | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Net actuarial loss recognized | $ | 42.2 | $ | 41.2 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Projected benefit obligation | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 126.3 | $ | 138 | ||||||||||||||||||||||
Fair value of plan assets | $ | 103.7 | $ | 115.8 | ||||||||||||||||||||||
Schedule of the components of net periodic benefit cost | ' | |||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Service cost—benefits earned | $ | 0.5 | $ | 0.6 | $ | 5.3 | ||||||||||||||||||||
Interest costs on benefits obligation | 5.4 | 5.7 | 6 | |||||||||||||||||||||||
Expected return on assets | (6.8 | ) | (6.9 | ) | (7.5 | ) | ||||||||||||||||||||
Prior service cost amortization | — | — | 0.3 | |||||||||||||||||||||||
Net actuarial loss amortization | 1 | 0.6 | 2.7 | |||||||||||||||||||||||
Curtailment charge | — | — | 1.5 | |||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Net periodic benefit cost | $ | 0.1 | $ | — | $ | 8.3 | ||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Schedule of weighted average assumptions used to determine benefit obligations | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Discount rate | 4.9 | % | 4 | % | ||||||||||||||||||||||
Schedule of weighted-average assumptions used to determine net periodic benefit costs | ' | |||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Discount rate | 4 | % | 4.8 | % | 5.50%/4.70% | |||||||||||||||||||||
Long-term rate of return on assets | 6 | % | 6.5 | % | 7.75% | |||||||||||||||||||||
Schedule of the weighted average asset allocations by asset category | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
Asset Category | 2013 | 2012 | ||||||||||||||||||||||||
Equity securities | 9.4 | % | 9.6 | % | ||||||||||||||||||||||
Debt securities | 85.1 | 85.3 | ||||||||||||||||||||||||
Other | 5.5 | 5.1 | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Schedule of the investments in the pension plan measured at fair value | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Level | Level | Level | Total | Level | Level | Level | Total | |||||||||||||||||||
1 | 2 | 3 | 1 | 2 | 3 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Money market funds | $ | 2 | $ | — | $ | — | $ | 2 | $ | 1.2 | $ | 0.3 | $ | — | $ | 1.5 | ||||||||||
Equity securities | ||||||||||||||||||||||||||
U.S. equity securities(a) | 7.6 | — | — | 7.6 | 8.3 | — | — | 8.3 | ||||||||||||||||||
Non-U.S. equity securities(a) | 1.3 | — | — | 1.3 | 1.4 | — | — | 1.4 | ||||||||||||||||||
Other equity securities(b) | 0.7 | — | — | 0.7 | 1.3 | — | — | 1.3 | ||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||
U.S. government | 16.5 | — | — | 16.5 | 18.8 | — | — | 18.8 | ||||||||||||||||||
U.S. and non-U.S. corporate(c) | — | 70.9 | — | 70.9 | — | 79 | — | 79 | ||||||||||||||||||
Other investments(d) | 4.7 | — | — | 4.7 | 4.4 | 1.1 | — | 5.5 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investments | $ | 32.8 | $ | 70.9 | $ | — | $ | 103.7 | $ | 35.4 | $ | 80.4 | $ | — | $ | 115.8 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||||||||
Includes investments in common stock from diverse industries | ||||||||||||||||||||||||||
(b) | ||||||||||||||||||||||||||
Includes investments in index and exchange-traded funds | ||||||||||||||||||||||||||
(c) | ||||||||||||||||||||||||||
Includes investment grade bonds from diverse industries | ||||||||||||||||||||||||||
(d) | ||||||||||||||||||||||||||
Includes investments in real estate investment funds, exchange-traded funds, commodity mutual funds and accrued interest | ||||||||||||||||||||||||||
Information related to the company's pension funds cash flow | ' | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Employer Contributions | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||
Benefit Payments | $ | 4.3 | $ | 4.2 | ||||||||||||||||||||||
Schedule of expected benefit payments to be paid by the pension plans | ' | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
During fiscal year ending December 31, 2014 | $ | 5.2 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2015 | $ | 5.5 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2016 | $ | 5.8 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2017 | $ | 6.1 | ||||||||||||||||||||||||
During fiscal year ending December 31, 2018 | $ | 6.4 | ||||||||||||||||||||||||
During fiscal years ending December 31, 2019 through December 31, 2023 | $ | 37.3 | ||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
Carrying amount and estimated fair market value of the company's long-term debt, including current portion | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Carrying amount | $ | 307.7 | $ | 384.6 | |||||||||||||
Estimated fair value | $ | 333.4 | $ | 420.8 | |||||||||||||
Schedule of fair value of financial assets and liabilities | ' | ||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Plan asset for deferred compensation(1) | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
Total assets | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Liabilities | |||||||||||||||||
Plan liability for deferred compensation(2) | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||||
Contingent consideration(2) | 4.4 | — | — | 4.4 | |||||||||||||
| | | | | | | | | | | | | | ||||
Total liabilities | $ | 9 | $ | 4.6 | $ | — | $ | 4.4 | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | |||||||||||||||
Markets for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Plan asset for deferred compensation(1) | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
Total assets | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Liabilities | |||||||||||||||||
Plan liability for deferred compensation(2) | $ | 4.2 | $ | 4.2 | $ | — | $ | — | |||||||||
Contingent consideration(2) | 5.2 | — | — | 5.2 | |||||||||||||
| | | | | | | | | | | | | | ||||
Total liabilities | $ | 9.4 | $ | 4.2 | $ | — | $ | 5.2 | |||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
-1 | |||||||||||||||||
Included in other, net on the Company's consolidated balance sheet. | |||||||||||||||||
-2 | |||||||||||||||||
Included in other noncurrent liabilities on the Company's consolidated balance sheet. | |||||||||||||||||
Summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||||||||
Total realized and | |||||||||||||||||
unrealized (gains) | |||||||||||||||||
losses included in: | |||||||||||||||||
Balance | Purchases, | Net earnings | Comprehensive | Balance | |||||||||||||
December 31, | sales, | adjustments | income | December 31, | |||||||||||||
2012 | settlements, net | 2013 | |||||||||||||||
(in millions) | |||||||||||||||||
Contingent consideration | $ | 5.2 | $ | (1.2 | ) | $ | 0.8 | $ | (0.4 | ) | $ | 4.4 | |||||
Schedule of future minimum lease payments under capital leases and non-cancelable operating leases | ' | ||||||||||||||||
Future minimum lease payments under capital leases and non-cancelable operating leases as of December 31, 2013 are as follows: | |||||||||||||||||
Capital Leases | Operating Leases | ||||||||||||||||
(in millions) | |||||||||||||||||
2014 | $ | 1.6 | $ | 9.1 | |||||||||||||
2015 | 1.6 | 6.3 | |||||||||||||||
2016 | 1.6 | 3.6 | |||||||||||||||
2017 | 1.5 | 2.2 | |||||||||||||||
2018 | 1.4 | 1 | |||||||||||||||
Thereafter | 2.8 | 6.4 | |||||||||||||||
| | | | | | | | ||||||||||
Total | $ | 10.5 | $ | 28.6 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Less amount representing interest (at rates ranging from 4.2% to 8.7%) | 1 | ||||||||||||||||
| | | | | | | | ||||||||||
Present value of net minimum capital lease payments | 9.5 | ||||||||||||||||
Less current installments of obligations under capital leases | 1.4 | ||||||||||||||||
| | | | | | | | ||||||||||
Obligations under capital leases, excluding current installments | $ | 8.1 | |||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Schedule of carrying amounts of assets under capital lease | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Buildings | $ | 17.5 | $ | 16.8 | |||||||||||||
Machinery and equipment | 1.8 | 1.2 | |||||||||||||||
| | | | | | | | ||||||||||
19.3 | 18 | ||||||||||||||||
Less accumulated depreciation | (5.1 | ) | (3.9 | ) | |||||||||||||
| | | | | | | | ||||||||||
$ | 14.2 | $ | 14.1 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Summary of the Company's significant accounts and balances by segment, reconciled to the consolidated totals | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net Sales | |||||||||||
Americas | $ | 878.5 | $ | 835 | $ | 810.9 | |||||
EMEA | 562.2 | 565.6 | 574.8 | ||||||||
Asia Pacific | 32.8 | 26.8 | 21.7 | ||||||||
| | | | | | | | | | | |
Consolidated net sales | $ | 1,473.50 | $ | 1,427.40 | $ | 1,407.40 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Operating income (loss) | |||||||||||
Americas | $ | 90.4 | $ | 96.5 | $ | 111.6 | |||||
EMEA | 46.9 | 52.5 | 45.5 | ||||||||
Asia Pacific | 9.7 | 6.5 | 12.2 | ||||||||
| | | | | | | | | | | |
Subtotal reportable segments | 147 | 155.5 | 169.3 | ||||||||
Corporate(*) | (35.5 | ) | (32.2 | ) | (35.8 | ) | |||||
| | | | | | | | | | | |
Consolidated operating income | 111.5 | 123.3 | 133.5 | ||||||||
Interest income | 0.6 | 0.7 | 1 | ||||||||
Interest expense | (21.5 | ) | (24.6 | ) | (25.8 | ) | |||||
Other income (expense), net | (2.8 | ) | 0.8 | (0.8 | ) | ||||||
| | | | | | | | | | | |
Income from continuing operations before income taxes | $ | 87.8 | $ | 100.2 | $ | 107.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Identifiable assets (at end of period) | |||||||||||
Americas | $ | 787.9 | $ | 810.9 | $ | 814.3 | |||||
EMEA | 869.6 | 802.1 | 759.8 | ||||||||
Asia Pacific | 82.7 | 84.3 | 92.5 | ||||||||
Discontinued operations | — | 11.7 | 27.4 | ||||||||
| | | | | | | | | | | |
Consolidated identifiable assets | $ | 1,740.20 | $ | 1,709.00 | $ | 1,694.00 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Property, plant and equipment, net (at end of period) | |||||||||||
Americas | $ | 85.8 | $ | 80.6 | $ | 74.8 | |||||
EMEA | 119.8 | 126.3 | 130.6 | ||||||||
Asia Pacific | 14.3 | 14.8 | 15 | ||||||||
| | | | | | | | | | | |
Consolidated long-lived assets | $ | 219.9 | $ | 221.7 | $ | 220.4 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Capital Expenditures | |||||||||||
Americas | $ | 18 | $ | 17.9 | $ | 8.3 | |||||
EMEA | 8.5 | 10.7 | 13.5 | ||||||||
Asia Pacific | 1.2 | 1.9 | 0.7 | ||||||||
| | | | | | | | | | | |
Consolidated capital expenditures | $ | 27.7 | $ | 30.5 | $ | 22.5 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and Amortization | |||||||||||
Americas | $ | 20.5 | $ | 19.6 | $ | 18.7 | |||||
EMEA | 26 | 26.8 | 27.2 | ||||||||
Asia Pacific | 2.4 | 2.1 | 2 | ||||||||
| | | | | | | | | | | |
Consolidated depreciation and amortization | $ | 48.9 | $ | 48.5 | $ | 47.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
* | |||||||||||
Corporate expenses are primarily for administrative compensation expense, internal controls costs, professional fees, including legal and audit expenses, shareholder services and benefit administration costs. These costs are not allocated to the geographic segments as they are viewed as corporate functions that support all activities. | |||||||||||
Schedule of U.S. net sales and U.S. property, plant and equipment of the Company's Americas segment | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
U.S. net sales | $ | 788.7 | $ | 747.4 | $ | 732.9 | |||||
U.S. property, plant and equipment, net (at end of period) | $ | 81.1 | $ | 75.1 | $ | 69.9 | |||||
Schedule of intersegment sales for Americas, EMEA and Asia-Pacific | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Intersegment Sales | |||||||||||
Americas | $ | 5.4 | $ | 5.3 | $ | 3.3 | |||||
EMEA | 10.2 | 10.9 | 8.4 | ||||||||
Asia Pacific | 170.9 | 139 | 132.9 | ||||||||
| | | | | | | | | | | |
Intersegment sales | $ | 186.5 | $ | 155.2 | $ | 144.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of net sales to third parties for the four product categories | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net Sales | |||||||||||
Residential & commercial flow control | $ | 907.7 | $ | 879.2 | $ | 854.9 | |||||
HVAC & gas | 348.8 | 337 | 347 | ||||||||
Drains & water re-use | 140 | 138.8 | 135.3 | ||||||||
Water quality | 77 | 72.4 | 70.2 | ||||||||
| | | | | | | | | | | |
Consolidated net sales | $ | 1,473.50 | $ | 1,427.40 | $ | 1,407.40 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Information (unaudited) | ' | |||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in millions, except per share information) | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||
Net sales | $ | 358.9 | $ | 366.8 | $ | 371.8 | $ | 376 | ||||||
Gross profit | 128.9 | 132.8 | 133.9 | 130.9 | ||||||||||
Income from continuing operations | 16.3 | 18.9 | 17.5 | 8.2 | ||||||||||
Net income | 16.1 | 18.9 | 15.4 | 8.2 | ||||||||||
Per common share: | ||||||||||||||
Basic | ||||||||||||||
Income from continuing operations | 0.46 | 0.53 | 0.49 | 0.23 | ||||||||||
Net income | 0.45 | 0.53 | 0.43 | 0.23 | ||||||||||
Diluted | ||||||||||||||
Income from continuing operations | 0.46 | 0.53 | 0.49 | 0.23 | ||||||||||
Net income | 0.45 | 0.53 | 0.43 | 0.23 | ||||||||||
Dividends per common share | 0.11 | 0.13 | 0.13 | 0.13 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||
Net sales | $ | 357.6 | $ | 362.5 | $ | 352.8 | $ | 354.5 | ||||||
Gross profit | 127.8 | 129.4 | 127.7 | 128.6 | ||||||||||
Income from continuing operations | 15.7 | 18.2 | 18.3 | 18.2 | ||||||||||
Net income | 15.7 | 18.5 | 18.7 | 15.5 | ||||||||||
Per common share: | ||||||||||||||
Basic | ||||||||||||||
Income from continuing operations | 0.42 | 0.5 | 0.52 | 0.51 | ||||||||||
Net income | 0.42 | 0.51 | 0.53 | 0.44 | ||||||||||
Diluted | ||||||||||||||
Income from continuing operations | 0.42 | 0.5 | 0.52 | 0.51 | ||||||||||
Net income | 0.42 | 0.51 | 0.53 | 0.44 | ||||||||||
Dividends per common share | 0.11 | 0.11 | 0.11 | 0.11 | ||||||||||
Accounting_Policies_Details
Accounting Policies (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 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 | Jan. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Jan. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | BRAE | BRAE | BRAE | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Americas | Americas | EMEA | EMEA | EMEA | Asia Pacific | Asia Pacific | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Maximum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||
Scenario | |||||||||||||||||
CAD | |||||||||||||||||
Gross Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $528.20 | $507.60 | ' | ' | ' | ' | ' | ' | ' | ' | $225.60 | $213.80 | ' | $289.70 | $281.10 | $12.90 | $12.70 |
Acquired During the Period | ' | 11.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.7 | ' | ' | ' | ' | ' |
Foreign Currency Translation and Other | 11.1 | 8.9 | ' | ' | ' | ' | ' | ' | ' | ' | -0.9 | 0.1 | ' | 11.6 | 8.6 | 0.4 | 0.2 |
Balance at the end of the period | 539.3 | 528.2 | ' | ' | ' | ' | ' | ' | ' | ' | 224.7 | 225.6 | ' | 301.3 | 289.7 | 13.3 | 12.9 |
Accumulated Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | -24.2 | -23.2 | ' | ' | ' | ' | ' | ' | ' | ' | -24.2 | -23.2 | ' | ' | ' | ' | ' |
Impairment Loss During the Period | -0.3 | -1 | -0.3 | -1 | -1.2 | ' | ' | ' | ' | ' | -0.3 | -1 | ' | ' | ' | ' | ' |
Balance at the end of the period | -24.5 | -24.2 | ' | ' | ' | ' | ' | ' | ' | ' | -24.5 | -24.2 | ' | ' | ' | ' | ' |
Net goodwill | 514.8 | 504 | ' | ' | ' | 11.7 | ' | ' | ' | ' | 200.2 | 201.4 | ' | 301.3 | 289.7 | 13.3 | 12.9 |
Earnout liability | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial purchase price paid | ' | ' | ' | ' | ' | ' | ' | 17.8 | 18 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate consideration, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.2 | ' | ' | ' | ' | ' | ' | ' |
Purchase price allocated to goodwill | 514.8 | 504 | ' | ' | ' | 11.7 | ' | ' | ' | ' | 200.2 | 201.4 | ' | 301.3 | 289.7 | 13.3 | 12.9 |
Purchase price allocated to intangible assets | ' | ' | ' | ' | ' | $10.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of reporting unit exceeding carrying value (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 20.00% | ' | ' | ' |
Accounting_Policies_Details_2
Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets | ' | ' | ' |
Non-cash pre-tax impairment charges of indefinite lived intangible assets | $0.70 | $0.40 | $1.40 |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 199 | 197.5 | ' |
Accumulated Amortization | -108.5 | -93.9 | ' |
Net Carrying Amount | 90.5 | 103.6 | ' |
Indefinite-lived intangible assets | ' | ' | ' |
Indefinite-lived intangible assets | 41.9 | 41.8 | ' |
Intangible assets | ' | ' | ' |
Gross Carrying Amount | 240.9 | 239.3 | ' |
Total | 132.4 | 145.4 | ' |
Weighted-average remaining life | '8 years 4 months 24 days | ' | ' |
Aggregate amortization expense for amortized intangible assets | 14.7 | 15.4 | 15.8 |
Future amortization expense | ' | ' | ' |
Future amortization expense, 2014 | 14.9 | ' | ' |
Future amortization expense, 2015 | 14.7 | ' | ' |
Future amortization expense, 2016 | 14.2 | ' | ' |
Future amortization expense, 2017 | 13.8 | ' | ' |
Future amortization expense, 2018 | 10 | ' | ' |
EMEA | ' | ' | ' |
Intangible assets | ' | ' | ' |
Number of trade names in EMEA Segment | 2 | ' | ' |
Patents | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 16.6 | 16.5 | ' |
Accumulated Amortization | -12.6 | -11.7 | ' |
Net Carrying Amount | 4 | 4.8 | ' |
Intangible assets | ' | ' | ' |
Weighted-average remaining life | '5 years 7 months 6 days | ' | ' |
Customer relationships | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 133 | 131.4 | ' |
Accumulated Amortization | -76.4 | -65.9 | ' |
Net Carrying Amount | 56.6 | 65.5 | ' |
Intangible assets | ' | ' | ' |
Weighted-average remaining life | '5 years 7 months 6 days | ' | ' |
Technology | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 26.9 | 27.4 | ' |
Accumulated Amortization | -10.9 | -9 | ' |
Net Carrying Amount | 16 | 18.4 | ' |
Intangible assets | ' | ' | ' |
Weighted-average remaining life | '11 years 4 months 24 days | ' | ' |
Trade Names | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 13.7 | 13.5 | ' |
Accumulated Amortization | -3 | -1.8 | ' |
Net Carrying Amount | 10.7 | 11.7 | ' |
Intangible assets | ' | ' | ' |
Weighted-average remaining life | '10 years 10 months 24 days | ' | ' |
Trade Names | Americas | ' | ' | ' |
Intangible assets | ' | ' | ' |
Long-lived assets written-down | 0.3 | ' | ' |
Trade Names | EMEA | ' | ' | ' |
Intangible assets | ' | ' | ' |
Long-lived assets written-down | 0.4 | ' | ' |
Other | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Carrying Amount | 8.8 | 8.7 | ' |
Accumulated Amortization | -5.6 | -5.5 | ' |
Net Carrying Amount | $3.20 | $3.20 | ' |
Intangible assets | ' | ' | ' |
Weighted-average remaining life | '40 years 2 months 12 days | ' | ' |
Accounting_Policies_Details_3
Accounting Policies (Details 3) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Income Taxes | ' |
Reduction in unrecognized tax benefits resulting from voluntary disclosure agreements | $3.70 |
Gross unrecognized tax benefits | 0.8 |
Amount of unrecognized tax benefits which, if recognized, would affect the effective tax rate | 0.2 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' |
Balance at the beginning of the period | 4.6 |
Increases related to prior year tax positions | 0.1 |
Decreases related to prior year tax positions | -0.2 |
Settlements | -3.7 |
Balance at the end of the period | $0.80 |
Percentage of likelihood of realization that the tax position must exceed in order for the amount to be recognized | 0.5 |
Buildings and improvements | Minimum | ' |
Property, plant and equipment | ' |
Estimated useful lives of the assets | '10 years |
Buildings and improvements | Maximum | ' |
Property, plant and equipment | ' |
Estimated useful lives of the assets | '40 years |
Machinery and equipment | Minimum | ' |
Property, plant and equipment | ' |
Estimated useful lives of the assets | '3 years |
Machinery and equipment | Maximum | ' |
Property, plant and equipment | ' |
Estimated useful lives of the assets | '15 years |
Accounting_Policies_Details_4
Accounting Policies (Details 4) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 26, 2011 | Dec. 31, 2013 | 23-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | Chief Executive Officer | Chief Executive Officer | Chief Financial Officer | Stock options | Stock options | Stock options | Other stock-based plans | Other stock-based plans | Other stock-based plans | |||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock-based compensation plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation costs related to unvested stock-based compensation arrangements | $20.80 | ' | ' | ' | $4.50 | ' | ' | ' | ' | ' | ' | ' |
Total weighted average remaining term of unrecognized compensation costs | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost recognized in selling, general and administrative expenses | 9.6 | 5.8 | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit recorded for the compensation expense | ' | ' | ' | ' | ' | ' | 1.2 | 0.7 | 0.7 | 1.9 | 1.4 | 1.5 |
Impact on both basic and diluted net income per common share for recognition of total stock-based compensation expense (in dollars per share) | $0.14 | $0.10 | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to separation agreement with company's former executive | ' | ' | ' | 6.3 | ' | 1.5 | ' | ' | ' | ' | ' | ' |
Expected cash severance charge | ' | ' | ' | 3.3 | ' | 0.7 | ' | ' | ' | ' | ' | ' |
Expected non-cash severance charge | ' | ' | ' | $3 | ' | $0.80 | ' | ' | ' | ' | ' | ' |
Accounting_Policies_Details_5
Accounting Policies (Details 5) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2013 | Jul. 31, 2012 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 16-May-12 | Aug. 02, 2011 |
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | $8.20 | $15.40 | $18.90 | $16.10 | $15.50 | $18.70 | $18.50 | $15.70 | ' | $58.60 | $68.40 | $66.40 | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,500,000 | 36,000,000 | 37,300,000 | ' | ' |
Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET INCOME (in dollars per share) | ' | ' | $0.23 | $0.43 | $0.53 | $0.45 | $0.44 | $0.53 | $0.51 | $0.42 | ' | $1.65 | $1.90 | $1.78 | ' | ' |
Dilutive securities, principally common stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 200,000 | ' | ' |
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58.6 | 68.4 | 66.4 | ' | ' |
Weighted average number of shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,600,000 | 36,100,000 | 37,500,000 | ' | ' |
Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET INCOME (in dollars per share) | ' | ' | $0.23 | $0.43 | $0.53 | $0.45 | $0.44 | $0.53 | $0.51 | $0.42 | ' | $1.65 | $1.90 | $1.78 | ' | ' |
Securities not included in the computation of diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options to purchase shares of Class A common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 700,000 | ' | ' |
Number of shares of the entity's Class A common stock authorized to be repurchased | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of the entity's Class A common stock authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 1,000,000 |
Number of shares of Class A common stock repurchased | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 454,000 | ' | ' | ' | ' |
Cost of shares of Class A common stock repurchased | ' | 65.8 | ' | ' | ' | ' | ' | ' | ' | ' | 27.2 | 23 | ' | ' | ' | ' |
Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedges, fair value | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Shipping and Handling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling costs included in selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.4 | 37 | 36.9 | ' | ' |
Research and Development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development costs included in selling, general, and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21.50 | $20.40 | $20.50 | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2010 | Oct. 13, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
CWV | CWV | CWV | CWV | CWV | Flomatic | Flomatic | Austroflex | Austroflex | Austroflex | Austroflex | Other | Other | ||||
Foreign Corrupt Practices Act (FCPA) Settlement | Foreign Corrupt Practices Act (FCPA) Settlement | Foreign Corrupt Practices Act (FCPA) Settlement | ||||||||||||||
Discontinued Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of outstanding shares of an indirect wholly-owned subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.90 | ' | ' | ' | ' | ' |
Loss after tax on disposal of the business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.2 | ' | ' | ' | ' | ' |
Written down value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.8 | ' | ' |
Estimated reserve | ' | ' | ' | ' | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of settlement entered into with the Securities and Exchange Commission to resolve allegations concerning potential violations of the FCPA | ' | ' | ' | ' | ' | 3.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserve revised based on the pending settlement | ' | ' | ' | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | 1.1 | 1.7 | 1.3 | 0.4 | ' | -0.2 | 0.2 | -16.9 | ' | ' |
Loss on disposal | ' | ' | ' | ' | ' | ' | ' | ' | -3.8 | ' | ' | -2.2 | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.2 |
Loss before income taxes | -2.4 | -0.9 | -14.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit (expense) | 0.1 | -1.1 | 3.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations, net of taxes | -2.3 | -2 | -10.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $9.50 | $31.10 | $29.20 | ' | ' | ' | ' | ' | $12.90 | $8.50 | ' | $9.50 | $18.20 | $20.70 | ' | ' |
Restructuring_and_Other_Charge2
Restructuring and Other Charges, Net (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | 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, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 30, 2013 | Dec. 31, 2013 | Jul. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 13, 2010 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2011 |
BRAE | BRAE | BRAE | Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) | Asia Pacific | Americas | Americas | Americas | 2013 Actions | 2013 Actions | 2013 Actions | 2011 Actions | 2011 Actions | 2011 Actions | 2011 Actions | 2011 Actions | 2011 Actions | 2010 Actions | 2010 Actions | 2010 Actions | 2010 Actions | 2010 Actions | 2010 Actions | 2010 Actions | 2010 Actions | Other Actions | Other Actions | Other Actions | Other Actions | Other Actions | Other Actions | Other Actions | ||||
Europe, Middle East and Africa (EMEA) | Danfoss Socla S.A.S | Danfoss Socla S.A.S | Danfoss Socla S.A.S | Severance | France | France | France | U.S. | U.S. | Europe | North America | North America | North America | ||||||||||||||||||||||||
Danfoss Socla S.A.S | Facilities consolidation | Facilities consolidation | Facilities consolidation | Facilities consolidation | Facilities consolidation | Facilities consolidation | Severance | Severance | |||||||||||||||||||||||||||||
item | item | ||||||||||||||||||||||||||||||||||||
Restructuring and other charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in manufacturing footprint cost (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net pre-tax restructuring charges | $10 | $5.20 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.10 | ' | $1.10 | $3.10 | ' | ' | ' | ' | $0.70 | $0.60 | $3.30 | ' | ' | ' | ' | ' | $5.20 | $3.50 | $3.60 | $4 | ' | ' | ' |
Adjustment related to contingent liability reduction | -0.2 | -1 | -1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: amounts included in cost of goods sold | -1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total restructuring and other charges, net | 8.7 | 4.2 | 8.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net pre-tax restructuring charges, expected to be recorded through fiscal 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original estimate of expected costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.4 | ' | ' | ' | ' | ' | ' | 12.5 | ' | ' | 4.9 | ' | ' | ' | ' | ' | ' | ' | ' |
Expected pre-tax training and pre-production set-up costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Net after tax charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.9 | ' | ' | ' | ' | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Total expected restructuring and related costs (after tax) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total estimated cost (pre-tax) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | 4.2 | ' | ' | ' | ' | 17.8 | 17.1 | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 2.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating facilities included under restructuring program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of facilities after consolidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 |
Number of manufacturing facilities to be shut down | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Net pre-tax restructuring charges, expected to be recorded through fiscal 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' |
Reduction in non-direct payroll cost (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' |
Reduction in anticipated earnout payment | ' | ' | ' | 0.2 | 1 | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total restructuring | $10 | $5.20 | $10 | ' | ' | ' | $8.70 | $3.90 | $8.60 | $0.20 | $1.30 | $1.30 | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Other_Charge3
Restructuring and Other Charges, Net (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring reserve | ' | ' | ' |
Net pre-tax restructuring charges | $8.70 | $4.20 | $8.80 |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Costs incurred | -8.7 | -4.2 | -8.8 |
Europe, Middle East and Africa (EMEA) | 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Net pre-tax restructuring charges | 4.1 | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Expected costs | 14 | ' | ' |
Costs incurred | -4.1 | ' | ' |
Remaining costs | 9.9 | ' | ' |
Severance | Europe | 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Net pre-tax restructuring charges | 4.1 | ' | ' |
Utilization and foreign currency impact | -2.1 | ' | ' |
Balance at the ending of the period | 2 | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Costs incurred | -4.1 | ' | ' |
Severance | Europe, Middle East and Africa (EMEA) | 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Net pre-tax restructuring charges | 4.1 | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Expected costs | 12.3 | ' | ' |
Costs incurred | -4.1 | ' | ' |
Remaining costs | 8.2 | ' | ' |
Legal and consultancy | Europe, Middle East and Africa (EMEA) | 2013 Actions | ' | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Expected costs | 1.3 | ' | ' |
Remaining costs | 1.3 | ' | ' |
Asset write-downs | Europe, Middle East and Africa (EMEA) | 2013 Actions | ' | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Expected costs | 0.2 | ' | ' |
Remaining costs | 0.2 | ' | ' |
Facility exit and other | Europe, Middle East and Africa (EMEA) | 2013 Actions | ' | ' | ' |
Summary of total expected, incurred and remaining pre-tax costs | ' | ' | ' |
Expected costs | 0.2 | ' | ' |
Remaining costs | $0.20 | ' | ' |
Business_Acquisitions_and_Disp1
Business Acquisitions and Disposition (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2012 | Apr. 29, 2011 | Apr. 29, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | Technology | Customer relationships | Trade name | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Tekmar | Socla | Socla | Socla | Socla | Socla | |
USD ($) | CAD | USD ($) | USD ($) | USD ($) | CAD | Technology | Distributor relationships | Trade name | Maximum | USD ($) | EUR (€) | USD ($) | Customer relationships | Trade name | ||||||
Scenario | ||||||||||||||||||||
CAD | ||||||||||||||||||||
Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial purchase price paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.80 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate consideration, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.2 | 172.4 | 116.3 | ' | ' | ' |
Annual sales prior to the acquisition | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price allocated to goodwill | 514.8 | 504 | ' | ' | ' | ' | ' | 11.7 | ' | ' | ' | ' | ' | ' | ' | 83.1 | ' | ' | ' | ' |
Purchase price allocated to intangible assets | ' | ' | ' | ' | ' | ' | ' | 10.1 | ' | ' | ' | ' | ' | ' | ' | 39.9 | ' | ' | ' | ' |
Weighted-average remaining life | '8 years 4 months 24 days | ' | '11 years 4 months 24 days | '5 years 7 months 6 days | '10 years 10 months 24 days | ' | ' | ' | ' | ' | ' | '10 years | '7 years | '20 years | ' | ' | ' | ' | '10 years | '20 years |
Contingent liability of the acquisition date fair value | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of contingent consideration paid | ' | ' | ' | ' | ' | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in contingent liability | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94.8 | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | ' | ' |
Acquisition-related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.7 | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.70 | ' | ' |
Business_Acquisitions_and_Disp2
Business Acquisitions and Disposition (Details 2) (TWVC, USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
TWVC | ' | ' | ' |
Disposition | ' | ' | ' |
Net proceeds from sale | $6.10 | ' | ' |
Pre-tax gain on sale | 7.7 | ' | ' |
After-tax gain on sale | 11.4 | ' | ' |
Increase (decrease) in adjustment to gain on disposal amount | ' | $0.60 | ($1.60) |
Inventories_net_Details
Inventories, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $111.30 | $110.80 |
Work-in-process | 19.1 | 20.5 |
Finished goods | 179.8 | 156.7 |
Inventories, net | 310.2 | 288 |
Valuation reserves | 29.9 | 27.7 |
Finished goods consigned | $16.70 | $13.50 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, at cost | $539.20 | $510.20 | ' |
Accumulated depreciation | -319.3 | -288.5 | ' |
Property, plant and equipment, net | 219.9 | 221.7 | 220.4 |
Land | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, at cost | 15.2 | 15.8 | ' |
Buildings and improvements | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, at cost | 166.3 | 156.4 | ' |
Machinery and equipment | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, at cost | 353.2 | 322.5 | ' |
Construction in progress | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, at cost | $4.50 | $15.50 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred income tax liabilities: | ' | ' | ' |
Excess tax over book depreciation | $22.40 | $23.70 | ' |
Intangibles | 29.1 | 30.5 | ' |
Other | 18.3 | 15.7 | ' |
Total deferred tax liabilities | 69.8 | 69.9 | ' |
Deferred income tax assets: | ' | ' | ' |
Accrued expenses | 21.3 | 16.7 | ' |
Net operating loss carry-forward | 10.9 | 5.4 | ' |
Inventory reserves | 12.3 | 8.6 | ' |
Pension-accumulated other comprehensive income | 16.3 | 15.8 | ' |
Other | 9.8 | 14.9 | ' |
Total deferred tax assets | 70.6 | 61.4 | ' |
Less: valuation allowance | -13.1 | -10.1 | ' |
Net deferred tax assets | 57.5 | 51.3 | ' |
Net deferred tax liabilities | -12.3 | -18.6 | ' |
Pre-tax income, basis for the provision for income taxes from continuing operations | ' | ' | ' |
Domestic | 21.6 | 27.3 | 39.6 |
Foreign | 66.2 | 72.9 | 68.3 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 87.8 | 100.2 | 107.9 |
Current tax expense: | ' | ' | ' |
Federal | 12.8 | 5 | 6.9 |
Foreign | 19.7 | 21.5 | 18.3 |
State | 2.5 | 1.3 | 1.8 |
Total | 35 | 27.8 | 27 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | -5 | 4.4 | 5.5 |
Foreign | -2.3 | -3.5 | -3 |
State | -0.8 | 1.1 | 1.2 |
Total | -8.1 | 2 | 3.7 |
Provision for income taxes from continuing operations | 26.9 | 29.8 | 30.7 |
Reconciliation of federal statutory taxes to actual income taxes reported from continuing operations | ' | ' | ' |
Computed expected federal income expense | 30.8 | 35 | 37.8 |
State income taxes, net of federal tax benefit | 1 | 1.5 | 1.9 |
Foreign tax rate differential | -5.7 | -7.4 | -4.4 |
China tax clawback | ' | ' | -4.2 |
Other, net | 0.8 | 0.7 | -0.4 |
Provision for income taxes from continuing operations | $26.90 | $29.80 | $30.70 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Foreign | ' |
Net operating loss carry forwards | ' |
Net operating loss carry forwards | $43.50 |
Net operating loss carry forwards for indefinite period | 32 |
Net operating loss carry forwards expiring in 2020 | 11.5 |
Austria | ' |
Net operating loss carry forwards | ' |
Net operating loss carry forwards | 29.8 |
Italy | ' |
Net operating loss carry forwards | ' |
Net operating loss carry forwards | 2.2 |
Dutch | ' |
Net operating loss carry forwards | ' |
Net operating loss carry forwards | $11.50 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation allowance | ' | ' | ' |
Valuation allowance | $13.10 | $10.10 | ' |
Provision for income taxes | 26.9 | 29.8 | 30.7 |
Undistributed earnings of the Company's foreign subsidiaries | 397.2 | 329.7 | 282.2 |
Withholding taxes payable upon remittance of all previously unremitted earnings | 11.3 | ' | ' |
U.S. | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance | 6.1 | 10.1 | ' |
Provision for income taxes | 0 | ' | ' |
Austrian | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance | $7 | ' | ' |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accrued Expenses and Other Liabilities | ' | ' |
Commissions and sales incentives payable | $40.50 | $40.60 |
Product liability and workers' compensation | 33.5 | 31.4 |
Other | 56.6 | 42.5 |
Income taxes payable | 4.6 | 2.1 |
Accrued expenses and other liabilities | $135.20 | $116.60 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 27, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 15-May-03 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 18, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | 15-May-03 | 15-May-03 | 31-May-10 | Dec. 31, 2013 |
In Millions, unless otherwise specified | 5.85% Senior notes due 2016 | 5.85% Senior notes due 2016 | 5.85% Senior notes due 2016 | 5.85% Senior notes due 2016 | 5.47% notes due May 2013 | 5.47% notes due May 2013 | 5.47% notes due May 2013 | 5.05% Senior notes due 2020 | 5.05% Senior notes due 2020 | 5.05% Senior notes due 2020 | 5.05% Senior notes due 2020 | Other consists primarily of European borrowings (at interest rates ranging from 5.0% to 6.0%) | Other consists primarily of European borrowings (at interest rates ranging from 5.0% to 6.0%) | Senior unsecured notes | 4.87% senior notes due 2010 | 4.87% senior notes due 2010 | Letters of credit | ||
Minimum | Minimum | ||||||||||||||||||
Financing Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | 5.85% | 5.85% | ' | ' | 5.47% | 5.47% | ' | 5.05% | 5.05% | ' | ' | ' | ' | ' | 4.87% | 4.87% | ' |
Minimum interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Maximum interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' |
Total debt | $307.70 | $384.60 | ' | $225 | $225 | ' | ' | ' | $75 | ' | $75 | $75 | ' | $7.70 | $9.60 | ' | ' | ' | ' |
Less Current Maturities | 2.2 | 77.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, net of current portion | 305.5 | 307.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes issued | ' | ' | 225 | ' | ' | ' | 75 | ' | ' | 75 | ' | ' | ' | ' | ' | 125 | 50 | ' | ' |
Term of letters of credit from the date of issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year |
Optional amount that the Company may prepay | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Debt repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' |
Principal payments during each of the next five years and thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 2.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 2.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 226.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | $23.60 | $34.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Details1
Financing Arrangements (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 18, 2010 | Dec. 31, 2013 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Jun. 18, 2010 | Dec. 31, 2013 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 |
In Millions, unless otherwise specified | Prior Credit Agreement | Prior Credit Agreement | Prior Eurocurrency rate loans | Prior Eurocurrency rate loans | Prior Eurocurrency rate loans | Prior Eurocurrency rate loans | Prior Eurocurrency rate loans | Prior base rate loans and swing line loans | Prior base rate loans and swing line loans | Prior base rate loans and swing line loans | Credit Agreement | Credit Agreement | Eurocurrency rate loans | Eurocurrency rate loans | Base rate loans and swing line loans | Base rate loans and swing line loans | Base rate loans and swing line loans | Base rate loans and swing line loans | Base rate loans and swing line loans | ||
LIBOR | LIBOR | LIBOR | Federal funds | Prime Rate | LIBOR | LIBOR | LIBOR | Subsequent event | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | Federal funds | Prime Rate | ||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Subsequent event | Minimum | Maximum | Subsequent event | Subsequent event | |||||||||||
Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||||||||||||||||||
Credit Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multi-currency borrowing capacity | ' | ' | $300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500 | ' | ' | ' | ' | ' | ' | ' |
Term of senior unsecured revolving credit facility | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Potential additional borrowing capacity | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' |
Sublimit on letters of credit | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' |
Interest rate added to base rate (as a percent) | ' | ' | ' | ' | ' | 1.70% | 2.30% | ' | ' | ' | 0.70% | 1.30% | ' | ' | 0.98% | 1.45% | ' | 0.00% | 0.45% | ' | ' |
Interest rate added to base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | 1.00% | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 0.50% | ' |
Variable interest rate basis | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | 'Prime Rate | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Prime Rate |
Unused and available credit under the credit agreement | ' | ' | ' | 276.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stand-by letters of credit outstanding | 23.6 | 34.8 | ' | 23.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding | $305.50 | $307.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Details
Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2013 | Jul. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | 16-May-12 | Aug. 02, 2011 | Apr. 30, 2013 | Jul. 31, 2012 | Oct. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | 16-May-12 | Aug. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class B common stock | Class B common stock | |||||||
Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, votes per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | 10 | 10 |
Common Stock conversion ratio, at the option of the holder | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Common Stock reserved for issuance under stock-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,719,322 | ' | ' | ' | ' | ' |
Shares of Common Stock reserved for conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,489,290 | ' |
Options to purchase shares of Class A common stock | $90 | ' | ' | ' | ' | ' | $90 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | ' | 2,000,000 | 1,000,000 | ' | ' | ' | ' | ' | 2,000,000 | 1,000,000 | ' | ' |
Number of shares repurchased | ' | 2,000,000 | 1,000,000 | 454,000 | ' | ' | ' | 2,000,000 | 1,000,000 | 454,000 | ' | ' | ' | ' | ' |
Cost of shares repurchased | ' | $65.80 | $27.20 | $23 | ' | ' | ' | $65.80 | $27.20 | $23 | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Stock-based compensation | ' | ' | ' |
Number of stock incentive plans | 2 | ' | ' |
Total unrecognized compensation cost related to the unvested awards | $20.80 | ' | ' |
Total weighted average remaining term of unrecognized compensation costs | '2 years 6 months | ' | ' |
Compensation cost recognized | 9.6 | 5.8 | 5.3 |
ISOs | Class A common stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Minimum exercise price as percentage of fair market value of common stock on grant date | 100.00% | ' | ' |
NSOs | Class A common stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Minimum exercise price as percentage of fair market value of common stock on grant date | 100.00% | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Number of stock-based compensation plans available for grant of new equity awards | 1 | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Class A common stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Shares authorized | 1,650,400 | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Stock options | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period, if not immediate | '4 years | ' | ' |
Percentage of stock options becoming exercisable | 25.00% | ' | ' |
Expiration period | '10 years | ' | ' |
Total unrecognized compensation cost related to the unvested awards | 10.6 | ' | ' |
Total weighted average remaining term of unrecognized compensation costs | '2 years 10 months 24 days | ' | ' |
Additional stock compensation expense | ' | 0.6 | 2.2 |
Summary of stock option activity and related information | ' | ' | ' |
Outstanding at beginning of year (in shares) | 1,064,000 | 1,272,000 | 1,303,000 |
Granted (in shares) | 379,000 | 415,000 | 295,000 |
Cancelled/Forfeitures (in shares) | -53,000 | -33,000 | -78,000 |
Exercised (in shares) | -361,000 | -590,000 | -248,000 |
Outstanding at end of year (in shares) | 1,029,000 | 1,064,000 | 1,272,000 |
Exercisable at end of year (in shares) | 249,000 | 360,000 | 745,000 |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at beginning of year (in dollars per share) | $33.37 | $30.43 | $29 |
Granted (in dollars per share) | $54.78 | $37.67 | $29.39 |
Cancelled/Forfeitures (in dollars per share) | $36.97 | $31.18 | $30.38 |
Exercised (in dollars per share) | $31.73 | $30.19 | $21.68 |
Outstanding at end of year (in dollars per share) | $41.66 | $33.37 | $30.43 |
Exercisable at end of year (in dollars per share) | $32.35 | $30.91 | $30.61 |
Weighted Average Intrinsic Value | ' | ' | ' |
Outstanding at end of year (in dollars per share) | $20.21 | ' | ' |
Exercisable at end of year (in dollars per share) | $29.52 | ' | ' |
Aggregate intrinsic values of exercisable options (in dollars) | 7.3 | ' | ' |
Total intrinsic value of options exercised | 7.4 | 5.7 | 3.9 |
Fair value assumptions | ' | ' | ' |
Expected life | '6 years | '6 years | '6 years |
Expected stock price volatility (as a percent) | 40.30% | 41.20% | 40.90% |
Expected dividend yield (as a percent) | 1.00% | 1.20% | 1.50% |
Risk-free interest rate (as a percent) | 1.70% | 0.90% | 1.60% |
Estimated forfeiture rate (as a percent) | 6.75% | 6.75% | 6.75% |
Weighted average grant-date fair value of stock options (in dollars per share) | $20.30 | $13.49 | $10.19 |
Second Amended and Restated 2004 Stock Incentive Plan | Stock options | Selling, general and administrative expenses | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Compensation cost recognized | 3.8 | 2.1 | 1.6 |
Second Amended and Restated 2004 Stock Incentive Plan | Stock options | Class A common stock | ' | ' | ' |
Weighted Average Intrinsic Value | ' | ' | ' |
Company's closing Common Stock price (in dollars per share) | $61.87 | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Restricted stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Additional stock compensation expense | ' | 0.2 | 0.8 |
Second Amended and Restated 2004 Stock Incentive Plan | Restricted stock | Maximum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period, if not immediate | '3 years | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Deferred shares | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting rate per year for maximum vesting period | 0.33 | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Deferred shares | Maximum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period, if not immediate | '3 years | ' | ' |
Management Stock Purchase Plan | Class A common stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Shares available for future grants of new equity awards | 897,029 | ' | ' |
Shares authorized | 2,000,000 | ' | ' |
Exercise price as percentage of fair market value of common stock on grant date | 67.00% | ' | ' |
Management Stock Purchase Plan | Restricted stock | Class A common stock | ' | ' | ' |
Weighted Average Intrinsic Value | ' | ' | ' |
Company's closing Common Stock price (in dollars per share) | $61.87 | ' | ' |
Management Stock Purchase Plan | Restricted stock units (RSUs) | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Total unrecognized compensation cost related to the unvested awards | 0.8 | ' | ' |
Total weighted average remaining term of unrecognized compensation costs | '1 year 4 months 24 days | ' | ' |
Compensation cost recognized | $0.70 | $0.80 | $1.30 |
Fair value assumptions | ' | ' | ' |
Expected life | '3 years | '3 years | '3 years |
Expected stock price volatility (as a percent) | 34.10% | 38.30% | 44.90% |
Expected dividend yield (as a percent) | 0.90% | 1.10% | 1.20% |
Risk-free interest rate (as a percent) | 0.40% | 0.40% | 1.20% |
Estimated forfeiture rate (as a percent) | 6.30% | 6.30% | 6.30% |
Weighted average grant-date fair value (in dollars per share) | $18.05 | $15.68 | $16.25 |
Management Stock Purchase Plan | Restricted stock units (RSUs) | Minimum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period, if not immediate | '3 years | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (Stock options, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Options Outstanding | ' |
Number Outstanding (in shares) | 1,029 |
Weighted Average Remaining Contractual Life | '6 years 2 months 1 day |
Weighted Average Exercise Price (in dollars per share) | $41.66 |
Options Exercisable | ' |
Number Exercisable (in shares) | 249 |
Weighted Average Exercise Price (in dollars per share) | $32.35 |
$26.34-$33.65 | ' |
Information about options outstanding | ' |
Low end of exercise price range (in dollars per share) | $26.34 |
High end of exercise price range (in dollars per share) | $33.65 |
Options Outstanding | ' |
Number Outstanding (in shares) | 305 |
Weighted Average Remaining Contractual Life | '3 years 11 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $30.18 |
Options Exercisable | ' |
Number Exercisable (in shares) | 174 |
Weighted Average Exercise Price (in dollars per share) | $30.16 |
$35.20-$35.70 | ' |
Information about options outstanding | ' |
Low end of exercise price range (in dollars per share) | $35.20 |
High end of exercise price range (in dollars per share) | $35.70 |
Options Outstanding | ' |
Number Outstanding (in shares) | 10 |
Weighted Average Remaining Contractual Life | '3 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $35.35 |
Options Exercisable | ' |
Number Exercisable (in shares) | 10 |
Weighted Average Exercise Price (in dollars per share) | $35.35 |
$37.41-$37.41 | ' |
Information about options outstanding | ' |
Low end of exercise price range (in dollars per share) | $37.41 |
High end of exercise price range (in dollars per share) | $37.41 |
Options Outstanding | ' |
Number Outstanding (in shares) | 301 |
Weighted Average Remaining Contractual Life | '6 years 18 days |
Weighted Average Exercise Price (in dollars per share) | $37.41 |
Options Exercisable | ' |
Number Exercisable (in shares) | 55 |
Weighted Average Exercise Price (in dollars per share) | $37.41 |
$40.17-$57.95 | ' |
Information about options outstanding | ' |
Low end of exercise price range (in dollars per share) | $40.17 |
High end of exercise price range (in dollars per share) | $57.95 |
Options Outstanding | ' |
Number Outstanding (in shares) | 413 |
Weighted Average Remaining Contractual Life | '7 years 11 months 5 days |
Weighted Average Exercise Price (in dollars per share) | $53.40 |
Options Exercisable | ' |
Number Exercisable (in shares) | 10 |
Weighted Average Exercise Price (in dollars per share) | $40.17 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Disclosures | ' | ' | ' |
Total unrecognized compensation cost related to the unvested awards | $20.80 | ' | ' |
Total weighted average remaining term of unvested awards | '2 years 6 months | ' | ' |
Compensation cost recognized in selling, general and administrative expenses | 9.6 | 5.8 | 5.3 |
Second Amended and Restated 2004 Stock Incentive Plan | Restricted stock and deferred shares | ' | ' | ' |
Summary of unvested restricted stock and deferred shares activity and related information | ' | ' | ' |
Unvested at beginning of year (in shares) | 237 | 153 | 162 |
Granted (in shares) | 142 | 170 | 115 |
Cancelled/Forfeitures (in shares) | -16 | -8 | -14 |
Vested (in shares) | -103 | -78 | -110 |
Unvested at end of year (in shares) | 260 | 237 | 153 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Unvested at beginning of period (in dollars per share) | $35.45 | $30.33 | $31.39 |
Granted (in dollars per share) | $54.80 | $37.62 | $29.51 |
Cancelled/Forfeitures (in dollars per share) | $37.44 | $30.66 | $31.12 |
Vested (in dollars per share) | $35.25 | $30.61 | $30.94 |
Unvested at end of period (in dollars per share) | $45.58 | $35.45 | $30.33 |
Other Disclosures | ' | ' | ' |
Total fair value of shares vested | 5.6 | 2.5 | 2.5 |
Total unrecognized compensation cost related to the unvested awards | 9.4 | ' | ' |
Total weighted average remaining term of unvested awards | '2 years 1 month 6 days | ' | ' |
Compensation cost recognized in selling, general and administrative expenses | 5.1 | 2.9 | 2.4 |
Estimated forfeiture rate (as a percent) | 9.00% | 9.00% | 9.00% |
Aggregate intrinsic value of restricted stock granted and outstanding | 16.1 | ' | ' |
Second Amended and Restated 2004 Stock Incentive Plan | Restricted stock and deferred shares | Class A common stock | ' | ' | ' |
Other Disclosures | ' | ' | ' |
Company's closing Common Stock price (in dollars per share) | $61.87 | ' | ' |
Management Stock Purchase Plan | Restricted stock | Class A common stock | ' | ' | ' |
Other Disclosures | ' | ' | ' |
Company's closing Common Stock price (in dollars per share) | $61.87 | ' | ' |
Management Stock Purchase Plan | Restricted stock units (RSUs) | ' | ' | ' |
Summary of unvested restricted stock and deferred shares activity and related information | ' | ' | ' |
Granted (in shares) | 45 | 64 | 99 |
Cancelled/Forfeitures (in shares) | -14 | -110 | -10 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Granted (in dollars per share) | $18.05 | $15.68 | $16.25 |
Other Disclosures | ' | ' | ' |
Total unrecognized compensation cost related to the unvested awards | 0.8 | ' | ' |
Total weighted average remaining term of unvested awards | '1 year 4 months 24 days | ' | ' |
Compensation cost recognized in selling, general and administrative expenses | 0.7 | 0.8 | 1.3 |
Estimated forfeiture rate (as a percent) | 6.30% | 6.30% | 6.30% |
Dividend declared and unpaid | $0.10 | ' | ' |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (Management Stock Purchase Plan, Restricted stock units (RSUs), USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Management Stock Purchase Plan | Restricted stock units (RSUs) | ' | ' | ' |
RSU activity and related information | ' | ' | ' |
Outstanding at beginning of period (in shares) | 196 | 392 | 361 |
Granted (in shares) | 45 | 64 | 99 |
Cancelled/Forfeitures (in shares) | -14 | -110 | -10 |
Settled (in shares) | -95 | -150 | -58 |
Outstanding at end of period (in shares) | 132 | 196 | 392 |
Vested at end of period (in shares) | 42 | 81 | 157 |
Weighted Average Purchase Price | ' | ' | ' |
Outstanding at beginning of period (in dollars per share) | $22.88 | $18.74 | $16.92 |
Granted (in dollars per share) | $31.63 | ' | $25.15 |
Cancelled/Forfeitures (in dollars per share) | $28.35 | ' | $20.92 |
Settled (in dollars per share) | $19.19 | ' | $18.01 |
Outstanding at end of period (in dollars per share) | $27.46 | $22.88 | $18.74 |
Vested at end of period (in dollars per share) | $25.30 | $20.36 | $15.57 |
Weighted Average Intrinsic Value | ' | ' | ' |
Outstanding at end of period (in dollars per share) | $34.41 | ' | ' |
Vested at end of period (in dollars per share) | $36.57 | ' | ' |
Aggregate intrinsic value of outstanding awards | $4.50 | ' | ' |
Aggregate intrinsic value of awards vested | 1.5 | ' | ' |
Aggregate intrinsic value of awards settled | $2.80 | $3.80 | $1.20 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 29, 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 | 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, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Class A common stock | Class A common stock | Class A common stock | Class B common stock | Class B common stock | Class B common stock | Management Stock Purchase Plan | Management Stock Purchase Plan | Management Stock Purchase Plan | Management Stock Purchase Plan | $13.25-$19.87 | $25.15-$26.51 | $31.63-$31.63 | ||||||||||||
Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Management Stock Purchase Plan | Management Stock Purchase Plan | Management Stock Purchase Plan | ||||||||||||||||||
Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | ||||||||||||||||||||||
Information about RSUs outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Low end of purchase price range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.25 | $25.15 | $31.63 |
High end of purchase price range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19.87 | $26.51 | $31.63 |
RSUs Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132 | 196 | 392 | 361 | 2 | 91 | 39 |
Weighted Average Purchase Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27.46 | $22.88 | $18.74 | $16.92 | $16.21 | $25.88 | $31.63 |
RSUs Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42 | 81 | 157 | ' | 2 | 40 | ' |
Weighted Average Purchase Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.30 | $20.36 | $15.57 | ' | $16.21 | $25.69 | ' |
Dividends per common share (in dollars per share) | $0.13 | $0.13 | $0.13 | $0.11 | $0.11 | $0.11 | $0.11 | $0.11 | $0.50 | $0.44 | $0.44 | $0.50 | $0.44 | $0.44 | $0.50 | $0.44 | $0.44 | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plans | ' | ' | ' |
Curtailment charges recorded to write-off previously unrecognized prior service costs | ' | ' | $1.50 |
Reduced the projected benefit obligation | ' | ' | 12.5 |
Change in projected benefit obligation | ' | ' | ' |
Balance at beginning of the year | 138 | 121.2 | ' |
Service cost | 0.5 | 0.6 | 5.3 |
Administration costs paid | -0.8 | -0.9 | ' |
Interest cost | 5.4 | 5.7 | 6 |
Actuarial (gain) loss | -12.5 | 15.6 | ' |
Benefits paid | -4.3 | -4.2 | ' |
Balance at end of year | 126.3 | 138 | 121.2 |
Change in fair value of plan assets | ' | ' | ' |
Balance at beginning of the year | 115.8 | 108.4 | ' |
Actual (loss) gain on assets | -7.7 | 11.8 | ' |
Employer contributions | 0.7 | 0.7 | ' |
Administration costs paid | -0.8 | -0.9 | ' |
Benefits paid | -4.3 | -4.2 | ' |
Fair value of plan assets at end of the year | 103.7 | 115.8 | 108.4 |
Funded status at end of year | -22.6 | -22.2 | ' |
Amounts recognized in the consolidated balance sheet | ' | ' | ' |
Current liabilities | -0.6 | -0.6 | ' |
Noncurrent liabilities | -22 | -21.6 | ' |
Net amount recognized | -22.6 | -22.2 | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' | ' |
Net actuarial loss recognized | 42.2 | 41.2 | ' |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | ' | ' | ' |
Projected benefit obligation | 126.3 | 138 | ' |
Accumulated benefit obligation | 126.3 | 138 | ' |
Fair value of plan assets | 103.7 | 115.8 | ' |
Components of net periodic benefit cost | ' | ' | ' |
Service cost-benefits earned | 0.5 | 0.6 | 5.3 |
Interest costs on benefits obligation | 5.4 | 5.7 | 6 |
Expected return on assets | -6.8 | -6.9 | -7.5 |
Prior service cost amortization | ' | ' | 0.3 |
Net actuarial loss amortization | 1 | 0.6 | 2.7 |
Curtailment charge | ' | ' | 1.5 |
Net periodic benefit cost | 0.1 | ' | 8.3 |
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year | ' | ' | ' |
Net actuarial loss | $1.10 | ' | ' |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Weighted-average assumptions used to determine benefit obligations | ' | ' | ' |
Discount rate (as a percent) | 4.90% | 4.00% | ' |
Weighted-average assumptions used to determine net periodic benefit costs | ' | ' | ' |
Discount rate (as a percent) | 4.00% | 4.80% | 4.70% |
Original discount rate (as a percent) | ' | ' | 5.50% |
Long-term rate of return on assets (as a percent) | 6.00% | 6.50% | 7.75% |
Guidelines regarding allocation of assets | ' | ' | ' |
Allocation target in 2012, minimum (as a percent) | 90.00% | ' | ' |
Number of companies or government agencies in which the allocation of assets should not exceed 10% of the total fund | 1 | ' | ' |
Maximum allocation of assets in the securities of any one company or government agency (as a percent) | 10.00% | ' | ' |
Maximum allocation of assets in any one industry (as a percent) | 20.00% | ' | ' |
Number of industries in which the allocation of assets should be no more than 20% of the total fund | 1 | ' | ' |
Individual treasury securities (as a percent) | 50.00% | ' | ' |
Treasury bonds and notes, maximum (as a percent) | 100.00% | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 100.00% | 100.00% | ' |
Equity securities | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 9.40% | 9.60% | ' |
Debt securities | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 85.10% | 85.30% | ' |
Other investments | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 5.50% | 5.10% | ' |
Fixed income securities | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 85.00% | ' | ' |
Equity securities and other investments | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Total (as a percent) | 15.00% | ' | ' |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | $103.70 | $115.80 | $108.40 |
Information related to the Company's pension funds cash flow | ' | ' | ' |
Employer contributions | 0.7 | 0.7 | ' |
Benefit Payments | 4.3 | 4.2 | ' |
Expected employer contributions in next fiscal year | 0.8 | ' | ' |
Expected benefit payments to be paid by the pension plans | ' | ' | ' |
During fiscal year ending December 31, 2014 | 5.2 | ' | ' |
During fiscal year ending December 31, 2015 | 5.5 | ' | ' |
During fiscal year ending December 31, 2016 | 5.8 | ' | ' |
During fiscal year ending December 31, 2017 | 6.1 | ' | ' |
During fiscal year ending December 31, 2018 | 6.4 | ' | ' |
During fiscal years ending December 31, 2019 through December 31, 2023 | 37.3 | ' | ' |
Money market funds | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 2 | 1.5 | ' |
U.S. equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 7.6 | 8.3 | ' |
Non-U.S. equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 1.3 | 1.4 | ' |
Other equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 0.7 | 1.3 | ' |
U.S. government debt securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 16.5 | 18.8 | ' |
U.S. and non-U.S. corporate debt securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 70.9 | 79 | ' |
Other investments | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 4.7 | 5.5 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 32.8 | 35.4 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 2 | 1.2 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 7.6 | 8.3 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 1.3 | 1.4 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other equity securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 0.7 | 1.3 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government debt securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 16.5 | 18.8 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 4.7 | 4.4 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 70.9 | 80.4 | ' |
Significant Other Observable Inputs (Level 2) | Money market funds | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | ' | 0.3 | ' |
Significant Other Observable Inputs (Level 2) | U.S. and non-U.S. corporate debt securities | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | 70.9 | 79 | ' |
Significant Other Observable Inputs (Level 2) | Other investments | ' | ' | ' |
Investments in the pension plan measured at fair value | ' | ' | ' |
Total investments | ' | $1.10 | ' |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plans | ' | ' | ' |
Base contribution as a percentage of employee gross pay (as a percent) | ' | 2.00% | ' |
Employer maximum match of an employee's contributions of first 4% of eligible compensation (as a percent) | 100.00% | ' | ' |
Percentage of eligible compensation, matched 100% by employer | 4.00% | ' | ' |
Company's matching contributions under certain 401(k) savings plans | $4.20 | $4 | $0.50 |
Employee Benefit Plans | ' | ' | ' |
Charges for pension plans | 0.1 | ' | 8.3 |
Supplemental compensation agreement with Timothy P. Horne | ' | ' | ' |
Supplemental compensation paid on an annual basis | 0.6 | 0.6 | 0.5 |
Minimum | ' | ' | ' |
Supplemental compensation agreement with Timothy P. Horne | ' | ' | ' |
Hours per year required to be worked as a consultant in return for certain annual compensation | '300 hours | ' | ' |
Maximum | ' | ' | ' |
Supplemental compensation agreement with Timothy P. Horne | ' | ' | ' |
Hours per year required to be worked as a consultant in return for certain annual compensation | '500 hours | ' | ' |
EMEA pension plans | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Charges for pension plans | $5.80 | $6 | $6.20 |
Contingencies_and_Environmenta1
Contingencies and Environmental Remediation (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 13, 2011 | Dec. 12, 2013 | Aug. 22, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Asbestos Litigation | Foreign Corrupt Practices Act Settlement | Trabakoolas et al., v, Watts Water Technologies, Inc., et al. | Trabakoolas et al., v, Watts Water Technologies, Inc., et al. | Trabakoolas et al., v, Watts Water Technologies, Inc., et al. | |
item | CWV | |||||
Litigation contingencies | ' | ' | ' | ' | ' | ' |
Reasonably possible loss in excess of the amount accrued for its legal contingencies | $11.20 | ' | ' | ' | ' | ' |
Period of stay for class action | ' | ' | ' | ' | '45 days | ' |
Total settlement amount | ' | ' | ' | 23 | ' | ' |
Possible loss | ' | ' | ' | 14 | ' | ' |
Insurance proceeds | ' | ' | ' | 9 | ' | ' |
Liability recorded | ' | ' | ' | ' | ' | 22.6 |
Liability recorded, current | ' | ' | ' | ' | ' | 12.7 |
Liability recorded, noncurrent | ' | ' | ' | ' | ' | 9.9 |
Insurance proceeds, current assets | ' | ' | ' | ' | ' | 9 |
Payment related to disgorgement and prejudgment interest | ' | ' | 3.6 | ' | ' | ' |
Penalties | ' | ' | $0.20 | ' | ' | ' |
Number of lawsuits the entity is defending in different jurisdictions | ' | 44 | ' | ' | ' | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 27, 2006 | Dec. 31, 2013 | Jun. 18, 2010 |
In Millions, unless otherwise specified | 5.85% Senior notes due 2016 | 5.85% Senior notes due 2016 | 5.05% Senior notes due 2020 | 5.05% Senior notes due 2020 | ||
Senior notes | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | 5.85% | 5.85% | 5.05% | 5.05% |
Long-term debt | ' | ' | ' | ' | ' | ' |
Carrying amount | $307.70 | $384.60 | ' | ' | ' | ' |
Estimated fair value | $333.40 | $420.80 | ' | ' | ' | ' |
Financial_Instruments_Details_
Financial Instruments (Details 2) (Fair value measured on a recurring basis, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Measurements at Reporting Date | ' | ' |
Financial assets, cash flow hedges | $0 | ' |
Financial liabilities, cash flow hedges | 0 | ' |
Total | ' | ' |
Assets | ' | ' |
Plan asset for deferred compensation | 4.6 | 4.2 |
Total assets | 4.6 | 4.2 |
Liabilities | ' | ' |
Plan liability for deferred compensation | 4.6 | 4.2 |
Contingent consideration | 4.4 | 5.2 |
Total liabilities | 9 | 9.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Plan asset for deferred compensation | 4.6 | 4.2 |
Total assets | 4.6 | 4.2 |
Liabilities | ' | ' |
Plan liability for deferred compensation | 4.6 | 4.2 |
Total liabilities | 4.6 | 4.2 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Liabilities | ' | ' |
Contingent consideration | 4.4 | 5.2 |
Total liabilities | $4.40 | $5.20 |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
In Millions, unless otherwise specified | BRAE | BRAE | BRAE | BRAE | Tekmar | Tekmar | Contingent consideration |
Reconciliation of changes in fair value of all financial assets and liabilities | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | $0.20 | $1.10 | ' | ' | ' | $5.20 |
Purchases, sales, settlements, net | ' | ' | ' | ' | ' | ' | -1.2 |
Total realized and unrealized (gains) losses included in Net earnings adjustments | ' | ' | ' | ' | ' | ' | 0.8 |
Total realized and unrealized (gains) losses included in Comprehensive income | ' | ' | ' | ' | ' | ' | -0.4 |
Balance at the ending of the period | ' | 0.2 | 1.1 | ' | ' | ' | 4.4 |
Contingent liability of the acquisition date fair value | ' | ' | ' | 1.9 | ' | 5.1 | ' |
Contingent liability | 0 | ' | ' | ' | ' | 0 | ' |
Contingent liability in case of complete achievement of performance metrics | ' | ' | ' | ' | ' | 8.2 | ' |
Portion of contingent consideration paid on achievement of performance metrics | ' | ' | ' | ' | 1.2 | ' | ' |
Increase in fair value of contingent liability based on performance metrics achieved | ' | ' | ' | ' | $1 | ' | ' |
Financial_Instruments_Details_2
Financial Instruments (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative instruments | ' | ' | ' |
Percentage of projected intercompany purchases hedged by forward exchange contracts | 50.00% | ' | ' |
Period of projected intercompany purchase transactions | '12 months | ' | ' |
Amount of Gain or (Loss) Recognized in Income on Derivatives | ' | ' | ' |
Income (loss) from derivatives recorded to other expense (income), net in statement of operations | $0.10 | $0.10 | $0.60 |
Forward exchange contracts | Purchased contracts | Low end of range | ' | ' | ' |
Derivative instruments | ' | ' | ' |
Notional amount | 1 | ' | ' |
Forward exchange contracts | Purchased contracts | High end of range | ' | ' | ' |
Derivative instruments | ' | ' | ' |
Notional amount | 10 | ' | ' |
Forward exchange contracts | Non designated | ' | ' | ' |
Derivative instruments | ' | ' | ' |
Notional amount | 1 | ' | ' |
Swap | ' | ' | ' |
Derivative instruments | ' | ' | ' |
Derivative outstanding | $0 | $0 | ' |
Financial_Instruments_Details_3
Financial Instruments (Details 5) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Future minimum lease payments under capital leases | ' |
2014 | 1.6 |
2015 | 1.6 |
2016 | 1.6 |
2017 | 1.5 |
2018 | 1.4 |
Thereafter | 2.8 |
Total | 10.5 |
Less amount representing interest (at rates ranging from 4.2% to 8.7%) | 1 |
Present value of net minimum capital lease payments | 9.5 |
Less current installments of obligations under capital leases | 1.4 |
Obligations under capital leases, excluding current installments | 8.1 |
Future minimum lease payments under operating leases | ' |
2014 | 9.1 |
2015 | 6.3 |
2016 | 3.6 |
2017 | 2.2 |
2018 | 1 |
Thereafter | 6.4 |
Total | 28.6 |
Minimum | ' |
Capital Leases | ' |
Interest rate for capital leases (as a percent) | 4.20% |
Maximum | ' |
Capital Leases | ' |
Interest rate for capital leases (as a percent) | 8.70% |
Financial_Instruments_Details_4
Financial Instruments (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying amounts of assets under capital lease | ' | ' |
Gross assets under capital lease | $19.30 | $18 |
Less accumulated depreciation | -5.1 | -3.9 |
Net assets under capital lease | 14.2 | 14.1 |
Buildings | ' | ' |
Carrying amounts of assets under capital lease | ' | ' |
Gross assets under capital lease | 17.5 | 16.8 |
Machinery and equipment | ' | ' |
Carrying amounts of assets under capital lease | ' | ' |
Gross assets under capital lease | $1.80 | $1.20 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 29, 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 geographic segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $376 | $371.80 | $366.80 | $358.90 | $354.50 | $352.80 | $362.50 | $357.60 | $1,473.50 | $1,427.40 | $1,407.40 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 111.5 | 123.3 | 133.5 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.7 | 1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -21.5 | -24.6 | -25.8 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -2.8 | 0.8 | -0.8 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 87.8 | 100.2 | 107.9 |
Identifiable Assets (at end of period) | 1,740.20 | ' | ' | ' | 1,709 | ' | ' | ' | 1,740.20 | 1,709 | 1,694 |
Property, plant and equipment, net (at end of period) | 219.9 | ' | ' | ' | 221.7 | ' | ' | ' | 219.9 | 221.7 | 220.4 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 27.7 | 30.5 | 22.5 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 48.9 | 48.5 | 47.9 |
Number of product categories | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Residential & commercial flow control | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 907.7 | 879.2 | 854.9 |
HVAC & gas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 348.8 | 337 | 347 |
Drains & water re-use | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 140 | 138.8 | 135.3 |
Water quality | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 77 | 72.4 | 70.2 |
Reallocation as a result of EMEA transformation program | Residential & commercial flow control | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90 | 100 |
Reallocation as a result of EMEA transformation program | HVAC & gas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | -90 | -100 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable Assets (at end of period) | ' | ' | ' | ' | 11.7 | ' | ' | ' | ' | 11.7 | 27.4 |
Reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 147 | 155.5 | 169.3 |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -35.5 | -32.2 | -35.8 |
Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 186.5 | 155.2 | 144.6 |
Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 878.5 | 835 | 810.9 |
Identifiable Assets (at end of period) | 787.9 | ' | ' | ' | 810.9 | ' | ' | ' | 787.9 | 810.9 | 814.3 |
Property, plant and equipment, net (at end of period) | 85.8 | ' | ' | ' | 80.6 | ' | ' | ' | 85.8 | 80.6 | 74.8 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 17.9 | 8.3 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 20.5 | 19.6 | 18.7 |
Americas | U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 788.7 | 747.4 | 732.9 |
Property, plant and equipment, net (at end of period) | 81.1 | ' | ' | ' | 75.1 | ' | ' | ' | 81.1 | 75.1 | 69.9 |
Americas | Reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 90.4 | 96.5 | 111.6 |
Americas | Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 5.4 | 5.3 | 3.3 |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 562.2 | 565.6 | 574.8 |
Identifiable Assets (at end of period) | 869.6 | ' | ' | ' | 802.1 | ' | ' | ' | 869.6 | 802.1 | 759.8 |
Property, plant and equipment, net (at end of period) | 119.8 | ' | ' | ' | 126.3 | ' | ' | ' | 119.8 | 126.3 | 130.6 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 8.5 | 10.7 | 13.5 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 26 | 26.8 | 27.2 |
EMEA | Reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 46.9 | 52.5 | 45.5 |
EMEA | Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 10.2 | 10.9 | 8.4 |
Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 32.8 | 26.8 | 21.7 |
Identifiable Assets (at end of period) | 82.7 | ' | ' | ' | 84.3 | ' | ' | ' | 82.7 | 84.3 | 92.5 |
Property, plant and equipment, net (at end of period) | 14.3 | ' | ' | ' | 14.8 | ' | ' | ' | 14.3 | 14.8 | 15 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 1.9 | 0.7 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 2.1 | 2 |
Asia Pacific | Reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9.7 | 6.5 | 12.2 |
Asia Pacific | Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $170.90 | $139 | $132.90 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 29, 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 Information (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $376 | $371.80 | $366.80 | $358.90 | $354.50 | $352.80 | $362.50 | $357.60 | $1,473.50 | $1,427.40 | $1,407.40 |
Gross profit | 130.9 | 133.9 | 132.8 | 128.9 | 128.6 | 127.7 | 129.4 | 127.8 | 526.5 | 513.5 | 508.4 |
Income from continuing operations | 8.2 | 17.5 | 18.9 | 16.3 | 18.2 | 18.3 | 18.2 | 15.7 | ' | ' | ' |
Net income | 8.2 | 15.4 | 18.9 | 16.1 | 15.5 | 18.7 | 18.5 | 15.7 | 58.6 | 68.4 | 66.4 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.23 | $0.49 | $0.53 | $0.46 | $0.51 | $0.52 | $0.50 | $0.42 | $1.72 | $1.96 | $2.07 |
Net income (in dollars per share) | $0.23 | $0.43 | $0.53 | $0.45 | $0.44 | $0.53 | $0.51 | $0.42 | $1.65 | $1.90 | $1.78 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.23 | $0.49 | $0.53 | $0.46 | $0.51 | $0.52 | $0.50 | $0.42 | $1.71 | $1.95 | $2.06 |
Net income (in dollars per share) | $0.23 | $0.43 | $0.53 | $0.45 | $0.44 | $0.53 | $0.51 | $0.42 | $1.65 | $1.90 | $1.78 |
Dividends per common share (in dollars per share) | $0.13 | $0.13 | $0.13 | $0.11 | $0.11 | $0.11 | $0.11 | $0.11 | $0.50 | $0.44 | $0.44 |
Net settlement expense recorded for Trabakoolas et al., v. Watts Water Technologies litigation | 13.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer rebate expense | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event, USD $) | Feb. 18, 2014 |
Class A common stock | ' |
Subsequent events | ' |
Quarterly dividend declared (in dollars per share) | $0.13 |
Class B common stock | ' |
Subsequent events | ' |
Quarterly dividend declared (in dollars per share) | $0.13 |
Schedule_IIValuation_and_Quali1
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 and qualifying accounts | ' | ' | ' |
Balance At Beginning of Period | $9.50 | $8.90 | $8.70 |
Additions Charged To Expense | 1.2 | 1.2 | 1.1 |
Additions Charged To Other Accounts | 0.2 | 1 | 0.3 |
Deductions | -1.2 | -1.6 | -1.2 |
Balance At End of Period | 9.7 | 9.5 | 8.9 |
Reserve for excess and obsolete inventories | ' | ' | ' |
Changes in valuation and qualifying accounts | ' | ' | ' |
Balance At Beginning of Period | 26.8 | 26 | 23.5 |
Additions Charged To Expense | 8.1 | 6.6 | 6.1 |
Additions Charged To Other Accounts | 0.3 | 0.4 | 1.3 |
Deductions | -7.3 | -6.2 | -4.9 |
Balance At End of Period | $27.90 | $26.80 | $26 |