Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'OWENS-ILLINOIS GROUP INC | ' |
Entity Central Index Key | '0000812233 | ' |
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 | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 100 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
CONSOLIDATED_RESULTS_OF_OPERAT
CONSOLIDATED RESULTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED RESULTS OF OPERATIONS | ' | ' | ' |
Net sales | $6,967 | $7,000 | $7,358 |
Cost of goods sold | -5,636 | -5,626 | -5,969 |
Gross profit | 1,331 | 1,374 | 1,389 |
Selling and administrative expense | -506 | -555 | -556 |
Research, development and engineering expense | -62 | -62 | -71 |
Interest expense | -239 | -248 | -314 |
Interest income | 10 | 9 | 11 |
Equity earnings | 67 | 64 | 66 |
Other expense, net | -121 | -99 | -756 |
Earnings (loss) from continuing operations before income taxes | 480 | 483 | -231 |
Provision for income taxes | -120 | -108 | -85 |
Earnings (loss) from continuing operations | 360 | 375 | -316 |
Gain (loss) from discontinued operations | -18 | -2 | 1 |
Net earnings (loss) | 342 | 373 | -315 |
Net earnings attributable to noncontrolling interests | -13 | -34 | -20 |
Net earnings (loss) attributable to the Company | 329 | 339 | -335 |
Amounts attributable to the Company: | ' | ' | ' |
Earnings (loss) from continuing operations | 347 | 341 | -336 |
Gain (loss) from discontinued operations | -18 | -2 | 1 |
Net earnings (loss) attributable to the Company | $329 | $339 | ($335) |
CONSOLIDATED_COMPREHENSIVE_INC
CONSOLIDATED COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED COMPREHENSIVE INCOME | ' | ' | ' |
Net earnings (loss) | $342 | $373 | ($315) |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | -232 | -26 | -187 |
Pension and other postretirement benefit adjustments, net of tax | 609 | -156 | -225 |
Change in fair value of derivative instruments | 2 | 5 | -3 |
Other comprehensive income (loss) | 379 | -177 | -415 |
Total comprehensive income (loss) | 721 | 196 | -730 |
Comprehensive income attributable to noncontrolling interests | -7 | -42 | -20 |
Comprehensive income (loss) attributable to the Company | $714 | $154 | ($750) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash, including time deposits of $61 ($90 in 2012) | $383 | $431 |
Receivables | 943 | 968 |
Inventories | 1,117 | 1,139 |
Prepaid expenses | 107 | 110 |
Total current assets | 2,550 | 2,648 |
Other assets: | ' | ' |
Equity investments | 315 | 294 |
Repair parts inventories | 116 | 133 |
Pension assets | 68 | ' |
Other assets | 679 | 675 |
Goodwill | 2,059 | 2,079 |
Total other assets | 3,237 | 3,181 |
Property, plant and equipment: | ' | ' |
Land, at cost | 254 | 261 |
Buildings and equipment, at cost: | ' | ' |
Buildings and building equipment | 1,197 | 1,221 |
Factory machinery and equipment | 4,651 | 4,861 |
Transportation, office and miscellaneous equipment | 123 | 136 |
Construction in progress | 213 | 188 |
Property, plant and equipment, at cost | 6,438 | 6,667 |
Less accumulated depreciation | 3,806 | 3,898 |
Net property, plant and equipment | 2,632 | 2,769 |
Total assets | 8,419 | 8,598 |
Current liabilities: | ' | ' |
Short-term loans | 306 | 296 |
Accounts payable | 1,144 | 1,032 |
Salaries and wages | 169 | 172 |
U.S. and foreign income taxes | 38 | 43 |
Other accrued liabilities | 431 | 441 |
Long-term debt due within one year | 16 | 23 |
Total current liabilities | 2,104 | 2,007 |
Long-term debt | 3,245 | 3,454 |
Deferred taxes | 196 | 182 |
Pension benefits | 350 | 846 |
Nonpension postretirement benefits | 187 | 264 |
Other liabilities | 286 | 329 |
Share owner's equity of the Company: | ' | ' |
Common stock, par value $.01 per share, 1,000 shares authorized, 100 shares issued and outstanding | ' | ' |
Other contributed capital | 1,112 | 124 |
Retained earnings | 1,872 | 2,683 |
Accumulated other comprehensive loss | -1,080 | -1,465 |
Total share owner's equity of the Company | 1,904 | 1,342 |
Noncontrolling interests | 147 | 174 |
Total share owners' equity | 2,051 | 1,516 |
Total liabilities and share owners' equity | $8,419 | $8,598 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Cash, time deposits (in dollars) | $61 | $90 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
CONSOLIDATED_SHARE_OWNERS_EQUI
CONSOLIDATED SHARE OWNERS' EQUITY (USD $) | Total | Other Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Millions, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $2,541 | $507 | $2,679 | ($856) | $211 |
Increase (Decrease) in Share Owners' Equity | ' | ' | ' | ' | ' |
Net distribution to parent | -157 | -157 | ' | ' | ' |
Net earnings (loss) | -315 | ' | -335 | ' | 20 |
Other comprehensive income (loss) | -415 | ' | ' | -415 | ' |
Acquisition of noncontrolling interest | -107 | -55 | ' | -9 | -43 |
Distribution to noncontrolling interests | -35 | ' | ' | ' | -35 |
Balance at Dec. 31, 2011 | 1,512 | 295 | 2,344 | -1,280 | 153 |
Increase (Decrease) in Share Owners' Equity | ' | ' | ' | ' | ' |
Net distribution to parent | -171 | -171 | ' | ' | ' |
Net earnings (loss) | 373 | ' | 339 | ' | 34 |
Other comprehensive income (loss) | -177 | ' | ' | -185 | 8 |
Distribution to noncontrolling interests | -24 | ' | ' | ' | -24 |
Contribution from noncontrolling interests | 3 | ' | ' | ' | 3 |
Balance at Dec. 31, 2012 | 1,516 | 124 | 2,683 | -1,465 | 174 |
Increase (Decrease) in Share Owners' Equity | ' | ' | ' | ' | ' |
Net distribution to parent | -152 | 988 | -1,140 | ' | ' |
Net earnings (loss) | 342 | ' | 329 | ' | 13 |
Other comprehensive income (loss) | 379 | ' | ' | 385 | -6 |
Distribution to noncontrolling interests | -22 | ' | ' | ' | -22 |
Contribution from noncontrolling interests | 5 | ' | ' | ' | 5 |
Deconsolidation of subsidiary | -17 | ' | ' | ' | -17 |
Balance at Dec. 31, 2013 | $2,051 | $1,112 | $1,872 | ($1,080) | $147 |
CONSOLIDATED_CASH_FLOWS
CONSOLIDATED CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net earnings (loss) | $342 | $373 | ($315) |
(Gain) loss from discontinued operations | 18 | 2 | -1 |
Non-cash charges (credits): | ' | ' | ' |
Depreciation | 350 | 378 | 405 |
Amortization of intangibles and other deferred items | 47 | 34 | 17 |
Amortization of finance fees and debt discount | 32 | 33 | 32 |
Deferred tax benefit | -3 | -5 | -42 |
Pension expense | 101 | 92 | 91 |
Restructuring, asset impairment and related charges | 119 | 168 | 112 |
Gain on China land compensation | ' | -61 | ' |
Charge for goodwill impairment | ' | ' | 641 |
Other | 52 | 8 | 50 |
Pension contributions | -96 | -219 | -59 |
Cash paid for restructuring | -78 | -66 | -39 |
Change in non-current assets and liabilities | -150 | -73 | -100 |
Change in components of working capital | 124 | 81 | -117 |
Cash provided by continuing operating activities | 858 | 745 | 675 |
Cash utilized in discontinued operating activities | -18 | -5 | -2 |
Total cash provided by operating activities | 840 | 740 | 673 |
Investing activities: | ' | ' | ' |
Additions to property, plant, and equipment | -361 | -290 | -285 |
Acquisitions, net of cash acquired | -4 | -5 | -144 |
Net cash proceeds related to sale of assets and other | 11 | 95 | 3 |
Net payments to fund minority partner loan | -16 | -21 | ' |
Deconsolidation of subsidiary | -32 | ' | ' |
Cash utilized in investing activities | -402 | -221 | -426 |
Financing activities: | ' | ' | ' |
Additions to long-term debt | 768 | 119 | 1,465 |
Repayments of long-term debt | -1,040 | -402 | -1,797 |
Increase (decrease) in short-term loans | 8 | -38 | 80 |
Net receipts (payments) for hedging activity and other | -24 | 27 | -22 |
Payment of finance fees | -7 | -1 | -19 |
Distributions to noncontrolling interests | -22 | -24 | -35 |
Contribution from noncontrolling interests | 5 | 3 | ' |
Distribution to parent | -167 | -188 | -165 |
Cash utilized in financing activities | -479 | -504 | -493 |
Effect of exchange rate fluctuations on cash | -7 | 16 | 6 |
Increase (decrease) in cash | -48 | 31 | -240 |
Cash at beginning of year | 431 | 400 | 640 |
Cash at end of year | $383 | $431 | $400 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
1. Significant Accounting Policies | |
Basis of Consolidated Statements The consolidated financial statements of Owens-Illinois Group, Inc. (the “Company”) include the accounts of its subsidiaries. Newly acquired subsidiaries have been included in the consolidated financial statements from dates of acquisition. | |
The Company uses the equity method of accounting for investments in which it has a significant ownership interest, generally 20% to 50%. Other investments are accounted for at cost. The Company monitors other than temporary declines in fair value and records reductions in carrying values when appropriate. | |
Relationship with Owens-Illinois, Inc. The Company is a 100%-owned subsidiary of Owens-Illinois, Inc. (“OI Inc.”). Although OI Inc. does not conduct any operations, it has substantial obligations related to outstanding indebtedness and asbestos-related payments. OI Inc. relies primarily on distributions from its direct and indirect subsidiaries to meet these obligations. | |
For federal and certain state income tax purposes, the taxable income of the Company is included in the consolidated tax returns of OI Inc. and income taxes are allocated to the Company on a basis consistent with separate returns. | |
Nature of Operations The Company is a leading manufacturer of glass container products. The Company’s principal product lines are glass containers for the food and beverage industries. The Company has glass container operations located in 21 countries. The principal markets and operations for the Company’s products are in Europe, North America, South America and Asia Pacific. | |
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management of the Company to make estimates and assumptions that affect certain amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates, at which time the Company would revise its estimates accordingly. | |
Foreign Currency Translation The assets and liabilities of non-U.S. subsidiaries are translated into U.S. dollars at year-end exchange rates. Any related translation adjustments are recorded in accumulated other comprehensive income in share owners’ equity. | |
Revenue Recognition The Company recognizes sales, net of estimated discounts and allowances, when the title to the products and risk of loss are transferred to customers. Provisions for rebates to customers are provided in the same period that the related sales are recorded. | |
Shipping and Handling Costs Shipping and handling costs are included with cost of goods sold in the Consolidated Results of Operations. | |
Stock-Based Compensation The Company participates in OI Inc.’s stock-based compensation plans consisting of stock option grants and restricted share awards. Costs resulting from all share-based compensation plans are required to be recognized in the financial statements. A public entity is required to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the required service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the required service. | |
Cash The Company defines “cash” as cash and time deposits with maturities of three months or less when purchased. Outstanding checks in excess of funds on deposit are included in accounts payable. | |
Accounts Receivable Receivables are stated at amounts estimated by management to be the net realizable value. The Company charges off accounts receivable when it becomes apparent based upon age or customer circumstances that amounts will not be collected. | |
Allowance for Doubtful Accounts The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts on a periodic basis. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. | |
Inventory Valuation Inventories are valued at the lower of average costs or market. | |
Goodwill Goodwill represents the excess of cost over fair value of net assets of businesses acquired. Goodwill is evaluated annually, as of October 1, for impairment or more frequently if an impairment indicator exists. | |
Intangible Assets and Other Long-Lived Assets Intangible assets are amortized over the expected useful life of the asset. Amortization expense directly attributed to the manufacturing of the Company’s products is included in cost of goods sold. Amortization expense related to non-manufacturing activities is included in selling and administrative and other. The Company evaluates the recoverability of intangible assets and other long-lived assets based on undiscounted projected cash flows, excluding interest and taxes, when factors indicate that impairment may exist. If impairment exists, the asset is written down to fair value. | |
Property, Plant and Equipment Property, plant and equipment (“PP&E”) is carried at cost and includes expenditures for new facilities and equipment and those costs which substantially increase the useful lives or capacity of existing PP&E. In general, depreciation is computed using the straight-line method and recorded over the estimated useful life of the asset. Factory machinery and equipment is depreciated over periods ranging from 5 to 25 years with the majority of such assets (principally glass-melting furnaces and forming machines) depreciated over 7 to 15 years. Buildings and building equipment are depreciated over periods ranging from 10 to 50 years. Depreciation expense directly attributed to the manufacturing of the Company’s products is included in cost of goods sold. Depreciation expense related to non-manufacturing activities is included in selling and administrative. Depreciation expense includes the amortization of assets recorded under capital leases. Maintenance and repairs are expensed as incurred. Costs assigned to PP&E of acquired businesses are based on estimated fair values at the date of acquisition. The Company evaluates the recoverability of PP&E based on undiscounted projected cash flows, excluding interest and taxes, when factors indicate that impairment may exist. If impairment exists, the asset is written down to fair value. | |
Derivative Instruments The Company uses forward exchange contracts, options and commodity futures contracts to manage risks generally associated with foreign exchange rate and commodity market volatility. Derivative financial instruments are included on the balance sheet at fair value. When appropriate, derivative instruments are designated as and are effective as hedges, in accordance with accounting principles generally accepted in the United States. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings. The Company does not enter into derivative financial instruments for trading purposes and is not a party to leveraged derivatives. Cash flows from short-term forward exchange contracts not designated as hedges are classified as a financing activity. Cash flows of commodity futures contracts are classified as operating activities. | |
Fair Value Measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Generally accepted accounting principles defines a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |
Level 1: Observable inputs such as quoted prices in active markets; | |
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and | |
Level 3: Unobservable inputs for which there is little or no market data, which requires the Company to develop assumptions. | |
The carrying amounts reported for cash and short-term loans approximate fair value. In addition, carrying amounts approximate fair value for certain long-term debt obligations subject to frequently redetermined interest rates. Fair values for the Company’s significant fixed rate debt obligations are generally based on published market quotations. | |
The Company’s derivative assets and liabilities consist of natural gas forwards and foreign exchange option and forward contracts. The Company uses an income approach to valuing these contracts. Natural gas forward rates and foreign exchange rates are the significant inputs into the valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. The Company also evaluates counterparty risk in determining fair values. | |
Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. | |
New Accounting Standards In July 2013, the Financial Accounting Standards Board issued guidance related to the presentation of unrecognized tax benefits when net operating loss carryforwards or tax credit carryforwards exist. This new guidance is effective for fiscal years, and interim periods, beginning after December 31, 2013. The Company elected to adopt this standard effective December 31, 2013. The adoption of this standard impacted how the Company presents certain of its unrecognized tax benefits on its balance sheet, with no impact to the results of operations or cash flows. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
2. Segment Information | |||||||||||||||||||||||
The Company has four reportable segments based on its geographic locations: Europe, North America, South America and Asia Pacific. These four segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations. Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained corporate costs and other. These include licensing, equipment manufacturing, global engineering, and non-glass equity investments. Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments. | |||||||||||||||||||||||
The Company’s measure of profit for its reportable segments is segment operating profit, which consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs. The Company’s management uses segment operating profit, in combination with selected cash flow information, to evaluate performance and to allocate resources. Segment operating profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided. | |||||||||||||||||||||||
Financial information regarding the Company’s reportable segments is as follows: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Europe | $ | 2,787 | $ | 2,717 | $ | 3,052 | |||||||||||||||||
North America | 2,002 | 1,966 | 1,929 | ||||||||||||||||||||
South America | 1,186 | 1,252 | 1,226 | ||||||||||||||||||||
Asia Pacific | 966 | 1,028 | 1,059 | ||||||||||||||||||||
Reportable segment totals | 6,941 | 6,963 | 7,266 | ||||||||||||||||||||
Other | 26 | 37 | 92 | ||||||||||||||||||||
Net sales | $ | 6,967 | $ | 7,000 | $ | 7,358 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Segment operating profit: | |||||||||||||||||||||||
Europe | $ | 305 | $ | 307 | $ | 345 | |||||||||||||||||
North America | 307 | 288 | 222 | ||||||||||||||||||||
South America | 204 | 227 | 250 | ||||||||||||||||||||
Asia Pacific | 131 | 113 | 83 | ||||||||||||||||||||
Reportable segment totals | 947 | 935 | 900 | ||||||||||||||||||||
Items excluded from segment operating profit: | |||||||||||||||||||||||
Retained corporate costs and other | (119 | ) | (106 | ) | (75 | ) | |||||||||||||||||
Restructuring, asset impairment and related charges | (119 | ) | (168 | ) | (112 | ) | |||||||||||||||||
Charge for goodwill impairment | (641 | ) | |||||||||||||||||||||
Gain on China land compensation | 61 | ||||||||||||||||||||||
Interest income | 10 | 9 | 11 | ||||||||||||||||||||
Interest expense | (239 | ) | (248 | ) | (314 | ) | |||||||||||||||||
Earnings (loss) from continuing operations before income taxes | $ | 480 | $ | 483 | $ | (231 | ) | ||||||||||||||||
Reportable | Retained | ||||||||||||||||||||||
North | South | Asia | Segment | Corp Costs | Consolidated | ||||||||||||||||||
Europe | America | America | Pacific | Totals | and Other | Totals | |||||||||||||||||
Total assets: | |||||||||||||||||||||||
2013 | $ | 3,509 | $ | 1,995 | $ | 1,467 | $ | 1,150 | $ | 8,121 | $ | 298 | $ | 8,419 | |||||||||
2012 | 3,362 | 1,994 | 1,655 | 1,349 | 8,360 | 238 | 8,598 | ||||||||||||||||
2011 | 3,588 | 2,020 | 1,682 | 1,379 | 8,669 | 306 | 8,975 | ||||||||||||||||
Equity investments: | |||||||||||||||||||||||
2013 | $ | 84 | $ | 25 | $ | — | $ | 155 | $ | 264 | $ | 51 | $ | 315 | |||||||||
2012 | 63 | 25 | 165 | 253 | 41 | 294 | |||||||||||||||||
2011 | 59 | 27 | 181 | 267 | 48 | 315 | |||||||||||||||||
Equity earnings: | |||||||||||||||||||||||
2013 | $ | 17 | $ | 16 | $ | — | $ | 10 | $ | 43 | $ | 24 | $ | 67 | |||||||||
2012 | 15 | 16 | 5 | 36 | 28 | 64 | |||||||||||||||||
2011 | 21 | 9 | 3 | 33 | 33 | 66 | |||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
2013 | $ | 130 | $ | 100 | $ | 80 | $ | 36 | $ | 346 | $ | 15 | $ | 361 | |||||||||
2012 | 87 | 68 | 75 | 49 | 279 | 11 | 290 | ||||||||||||||||
2011 | 127 | 60 | 50 | 37 | 274 | 11 | 285 | ||||||||||||||||
Depreciation and amortization expense: | |||||||||||||||||||||||
2013 | $ | 139 | $ | 110 | $ | 72 | $ | 62 | $ | 383 | $ | 14 | $ | 397 | |||||||||
2012 | 150 | 107 | 70 | 70 | 397 | 15 | 412 | ||||||||||||||||
2011 | 164 | 96 | 73 | 80 | 413 | 9 | 422 | ||||||||||||||||
The Company’s net property, plant and equipment by geographic segment are as follows: | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||||||||
2013 | $ | 686 | $ | 1,946 | $ | 2,632 | |||||||||||||||||
2012 | 663 | 2,106 | 2,769 | ||||||||||||||||||||
2011 | 667 | 2,210 | 2,877 | ||||||||||||||||||||
The Company’s net sales by geographic segment are as follows: | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||||||||
2013 | $ | 1,809 | $ | 5,158 | $ | 6,967 | |||||||||||||||||
2012 | 1,780 | 5,220 | 7,000 | ||||||||||||||||||||
2011 | 1,776 | 5,582 | 7,358 | ||||||||||||||||||||
Operations outside the U.S. that accounted for more than 10% of consolidated net sales from continuing operations were in France (2013 — 11%, 2012 — 11%, 2011 — 13%). |
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables | ' | |||||||
Receivables | ' | |||||||
3. Receivables | ||||||||
Receivables consist of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Trade accounts receivable | $ | 757 | $ | 827 | ||||
Less: allowances for doubtful accounts and discounts | 39 | 41 | ||||||
Net trade receivables | 718 | 786 | ||||||
Other receivables | 225 | 182 | ||||||
$ | 943 | $ | 968 | |||||
The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At December 31, 2013 and 2012, the amount of receivables sold by the Company was $192 million and $141 million, respectively. The Company has no continuing involvement with the sold receivables. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
4. Inventories | ||||||||
Major classes of inventory are as follows: | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 958 | $ | 957 | ||||
Raw materials | 113 | 137 | ||||||
Operating supplies | 46 | 45 | ||||||
$ | 1,117 | $ | 1,139 |
Equity_Investments
Equity Investments | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity Investments | ' | ||||||||||
Equity Investments | ' | ||||||||||
5. Equity Investments | |||||||||||
Summarized information pertaining to the Company’s equity associates follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
For the year: | |||||||||||
Equity in earnings: | |||||||||||
Non-U.S. | $ | 27 | $ | 20 | $ | 24 | |||||
U.S. | 40 | 44 | 42 | ||||||||
Total | $ | 67 | $ | 64 | $ | 66 | |||||
Dividends received | $ | 67 | $ | 50 | $ | 50 | |||||
Summarized combined financial information for equity associates is as follows (unaudited): | |||||||||||
2013 | 2012 | ||||||||||
At end of year: | |||||||||||
Current assets | $ | 419 | $ | 327 | |||||||
Non-current assets | 528 | 496 | |||||||||
Total assets | 947 | 823 | |||||||||
Current liabilities | 224 | 195 | |||||||||
Other liabilities and deferred items | 193 | 158 | |||||||||
Total liabilities and deferred items | 417 | 353 | |||||||||
Net assets | $ | 530 | $ | 470 | |||||||
2013 | 2012 | 2011 | |||||||||
For the year: | |||||||||||
Net sales | $ | 699 | $ | 658 | $ | 689 | |||||
Gross profit | $ | 185 | $ | 191 | $ | 215 | |||||
Net earnings | $ | 149 | $ | 143 | $ | 174 | |||||
The Company’s significant equity method investments include: (1) 50% of the common shares of Vetri Speciali SpA, a specialty glass manufacturer; (2) a 25% partnership interest in Tata Chemical (Soda Ash) Partners, a soda ash supplier; (3) a 50% partnership interest in Rocky Mountain Bottle Company, a glass container manufacturer; (4) a 50% partnership interest in BJC O-I Glass Pte. Ltd., a glass container manufacturer; and (5) 50% of the common shares of Vetrerie Meridionali SpA (“VeMe”), a glass container manufacturer. During the fourth quarter of 2013, changes were made to the VeMe joint venture agreement that resulted in the Company relinquishing control of the joint venture and, therefore, deconsolidating the entity. No gain or loss was recognized related to the deconsolidation as the fair value of the entity was equal to the carrying amount of the entity’s assets and liabilities. The fair value, which the Company classified as Level 3 in the fair value hierarchy, was computed using a discounted cash flow analysis based on projected future cash flows of the joint venture. | |||||||||||
There is a difference of approximately $13 million as of December 31, 2013 between the amount at which certain investments are carried and the amount of underlying equity in net assets. The portion of the difference related to inventory or amortizable assets is amortized as a reduction of the equity earnings. The remaining difference is considered goodwill. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill | ' | |||||||||||||||||||
Goodwill | ' | |||||||||||||||||||
6. Goodwill | ||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||
North | South | Asia | ||||||||||||||||||
Europe | America | America | Pacific | Other | Total | |||||||||||||||
Balance as of January 1, 2011 | $ | 1,009 | $ | 743 | $ | 387 | $ | 677 | $ | 5 | $ | 2,821 | ||||||||
Acquisitions | 8 | 8 | ||||||||||||||||||
Impairment charge | (641 | ) | (641 | ) | ||||||||||||||||
Translation effects | (34 | ) | (3 | ) | (33 | ) | (36 | ) | (106 | ) | ||||||||||
Balance as of December 31, 2011 | 983 | 740 | 354 | — | 5 | 2,082 | ||||||||||||||
Translation effects | 23 | 3 | (29 | ) | (3 | ) | ||||||||||||||
Balance as of December 31, 2012 | 1,006 | 743 | 325 | — | 5 | 2,079 | ||||||||||||||
Translation effects | 38 | (9 | ) | (49 | ) | (20 | ) | |||||||||||||
Balance as of December 31, 2013 | $ | 1,044 | $ | 734 | $ | 276 | $ | — | $ | 5 | $ | 2,059 | ||||||||
Goodwill for the Asia Pacific segment is net of accumulated impairment losses of $1,135 million as of December 31, 2013, 2012 and 2011. | ||||||||||||||||||||
Goodwill is tested for impairment annually as of October 1 (or more frequently if impairment indicators arise) using a two-step process. Step 1 compares the business enterprise value (“BEV”) of each reporting unit with its carrying value. The BEV is computed based on estimated future cash flows, discounted at the weighted average cost of capital of a hypothetical third-party buyer. If the BEV is less than the carrying value for any reporting unit, then Step 2 must be performed. Step 2 compares the implied fair value of goodwill with the carrying amount of goodwill. Any excess of the carrying value of the goodwill over the implied fair value will be recorded as an impairment loss. The calculations of the BEV in Step 1 and the implied fair value of goodwill in Step 2 are based on significant unobservable inputs, such as price trends, customer demand, material costs, discount rates and asset replacement costs, and are classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||
During the fourth quarter of 2013, the Company completed its annual impairment testing and determined that no impairment existed. During the fourth quarter of 2011, the Company completed its annual impairment testing and determined that impairment existed in the goodwill of its Asia Pacific segment. Lower projected cash flows, principally in the segment’s Australian operations, caused the decline in the business enterprise value. The strong Australian dollar in 2011 resulted in many wine producers in the country exporting their wine in bulk shipments and bottling the wine closer to their end markets. This decreased the demand for wine bottles in Australia, which was a significant portion of the Company’s sales in that country, and the Company expects this decreased demand to continue into the foreseeable future. Following a review of the valuation of the segment’s identifiable assets, the Company recorded an impairment charge of $641 million to reduce the reported value of its goodwill. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets | ' | |||||||
Other Assets | ' | |||||||
7. Other Assets | ||||||||
Other assets consist of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Deferred tax assets | $ | 237 | $ | 284 | ||||
Capitalized software | 114 | 115 | ||||||
Deferred returnable packaging costs | 124 | 96 | ||||||
Non-income tax receivable | 70 | 20 | ||||||
Deferred finance fees | 33 | 40 | ||||||
Intangibles | 23 | 29 | ||||||
Other | 78 | 91 | ||||||
$ | 679 | $ | 675 | |||||
Capitalized software includes costs related to the acquisition and development of internal-use software. These costs are amortized over the estimated useful life of the software. Amortization expense for capitalized software was $14 million, $15 million and $11 million for 2013, 2012 and 2011, respectively. Estimated amortization related to capitalized software through 2018 is as follows: 2014, $17 million; 2015, $16 million; 2016, $13 million; 2017, $13 million; and 2018, $12 million. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
8. Derivative Instruments | ||||||||||||||||||
The Company has certain derivative assets and liabilities which consist of natural gas forwards and foreign exchange option and forward contracts. The Company uses an income approach to value these contracts. Natural gas forward rates and foreign exchange rates are the significant inputs into the valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. The Company also evaluates counterparty risk in determining fair values. | ||||||||||||||||||
Commodity Futures Contracts Designated as Cash Flow Hedges | ||||||||||||||||||
In North America, the Company enters into commodity futures contracts related to forecasted natural gas requirements, the objectives of which are to limit the effects of fluctuations in the future market price paid for natural gas and the related volatility in cash flows. The Company continually evaluates the natural gas market and related price risk and periodically enters into commodity futures contracts in order to hedge a portion of its usage requirements. The majority of the sales volume in North America is tied to customer contracts that contain provisions that pass the price of natural gas to the customer. In certain of these contracts, the customer has the option of fixing the natural gas price component for a specified period of time. At December 31, 2013 and 2012, the Company had entered into commodity futures contracts covering approximately 5,400,000 MM BTUs and 7,000,000 MM BTUs, respectively, primarily related to customer requests to lock the price of natural gas. | ||||||||||||||||||
The Company accounts for the above futures contracts as cash flow hedges at December 31, 2013 and recognizes them on the balance sheet at fair value. The effective portion of changes in the fair value of a derivative that is designated as, and meets the required criteria for, a cash flow hedge is recorded in the Accumulated Other Comprehensive Income component of share owners’ equity (“OCI”) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. An unrecognized gain of $1 million at December 31, 2013 and an unrecognized loss of $1 million at December 31, 2012 related to the commodity futures contracts were included in Accumulated OCI, and will be reclassified into earnings over the next twelve to twenty-four months. Any material portion of the change in the fair value of a derivative designated as a cash flow hedge that is deemed to be ineffective is recognized in current earnings. The ineffectiveness related to these natural gas hedges for the year ended December 31, 2013 and 2012 was not material. | ||||||||||||||||||
The effect of the commodity futures contracts on the results of operations for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||
Amount of Loss | ||||||||||||||||||
Amount of Loss | Reclassified from | |||||||||||||||||
Recognized in OCI on | Accumulated OCI into Income | |||||||||||||||||
Commodity Futures Contracts | (reported in cost of goods sold) | |||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
$ | 1 | $ | (3 | ) | $ | (10 | ) | $ | (1 | ) | $ | (8 | ) | $ | (7 | ) | ||
Senior Notes Designated as Net Investment Hedge | ||||||||||||||||||
During December 2004, a U.S. subsidiary of the Company issued senior notes totaling €225 million. These notes were designated by the Company’s subsidiary as a hedge of a portion of its net investment in a non-U.S. subsidiary with a Euro functional currency. Because the amount of the senior notes matched the hedged portion of the net investment, there was no hedge ineffectiveness. Accordingly, the Company recorded the impact of changes in the foreign currency exchange rate on the Euro-denominated notes in OCI. The amount of loss recognized in OCI related to this net investment hedge for the year ended December 31, 2011 was $25 million. During the second quarter of 2011, the senior notes designated as the net investment hedge were redeemed by a subsidiary of the Company. The amount recorded in OCI related to this net investment hedge will be reclassified into earnings when the Company sells or liquidates its net investment in the non-U.S. subsidiary. | ||||||||||||||||||
Forward Exchange Contracts not Designated as Hedging Instruments | ||||||||||||||||||
The Company may enter into short-term forward exchange or option agreements to purchase foreign currencies at set rates in the future. These agreements are used to limit exposure to fluctuations in foreign currency exchange rates for significant planned purchases of fixed assets or commodities that are denominated in currencies other than the subsidiaries’ functional currency. The Company may also use forward exchange agreements to offset the foreign currency risk for receivables and payables, including intercompany receivables and payables, not denominated in, or indexed to, their functional currencies. The Company records these short-term forward exchange agreements on the balance sheet at fair value and changes in the fair value are recognized in current earnings. | ||||||||||||||||||
At December 31, 2013 and 2012, the Company had outstanding forward exchange and option agreements denominated in various currencies covering the equivalent of approximately $550 million and $750 million, respectively, related primarily to intercompany transactions and loans. | ||||||||||||||||||
The effect of the forward exchange contracts on the results of operations for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||
Amount of Gain (Loss) | ||||||||||||||||||
Location of Gain (Loss) | Recognized in Income on | |||||||||||||||||
Recognized in Income on | Forward Exchange Contracts | |||||||||||||||||
Forward Exchange Contracts | 2013 | 2012 | 2011 | |||||||||||||||
Other expense | $ | (28 | ) | $ | 6 | $ | (11 | ) | ||||||||||
Balance Sheet Classification | ||||||||||||||||||
The Company records the fair values of derivative financial instruments on the balance sheet as follows: (a) receivables if the instrument has a positive fair value and maturity within one year, (b) deposits, receivables, and other assets if the instrument has a positive fair value and maturity after one year, and (c) other accrued liabilities or other liabilities (current) if the instrument has a negative fair value and maturity within one year. The following table shows the amount and classification (as noted above) of the Company’s derivatives as of December 31, 2013 and 2012: | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Balance | 2013 | 2012 | ||||||||||||||||
Sheet | ||||||||||||||||||
Location | ||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Commodity futures contracts | c | $ | 1 | $ | — | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | a | 3 | 4 | |||||||||||||||
Total asset derivatives | $ | 4 | $ | 4 | ||||||||||||||
Liability Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Commodity futures contracts | c | $ | — | $ | 1 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | c | 7 | 9 | |||||||||||||||
Total liability derivatives | $ | 7 | $ | 10 |
Restructuring_Accruals_Asset_I
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | ' | |||||||||||||
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | ' | |||||||||||||
9. Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | ||||||||||||||
The Company continually reviews its manufacturing footprint and operating cost structure and may decide to close operations or reduce headcount to gain efficiencies, integrate acquired operations and reduce future expenses. The Company incurs costs associated with these actions including employee severance and benefits, other exit costs such as those related to contract terminations, and asset impairment charges. The Company also may incur other costs related to closed facilities including environmental remediation, clean up, dismantling and preparation for sale or other disposition. | ||||||||||||||
The Company accounts for restructuring and other costs under applicable provisions of generally accepted accounting principles. Charges for employee severance and related benefits are generally accrued based on contractual arrangements with employees or their representatives. Other exit costs are accrued based on the estimated cost to settle related contractual arrangements. Estimated environmental remediation costs are accrued when specific claims have been received or are probable of being received. | ||||||||||||||
The Company’s decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. | ||||||||||||||
When a decision is made to take these actions, the Company manages and accounts for them programmatically apart from the on-going operations of the business. Information related to major programs (as in the case of the European Asset Optimization and Asia Pacific Restructuring programs below) are presented separately. Minor initiatives are presented on a combined basis as Other Restructuring Actions. When charges related to major programs are completed, remaining accrual balances are classified with Other Restructuring Actions. | ||||||||||||||
European Asset Optimization | ||||||||||||||
In 2011, the Company implemented the European Asset Optimization program to increase the efficiency and capability of its European operations and to better align its European manufacturing footprint with market and customer needs. This program involves making additional investments in certain facilities and addressing assets with higher cost structures. As part of this program, the Company recorded charges of $16 million in 2013, $86 million in 2012 and $24 million in 2011 for employee costs, asset impairments and environmental remediation related to decisions to close furnaces and manufacturing facilities in Europe. The Company expects to execute further actions under this program in phases over the next several years. | ||||||||||||||
Asia Pacific Restructuring | ||||||||||||||
In 2011, the Company implemented a restructuring plan in its Asia Pacific segment, primarily related to aligning its supply base with lower demand in the region. As part of this plan, the Company recorded charges of $49 million, $47 million and $46 million for the years ended 2013, 2012 and 2011, respectively, for employee costs and asset impairments related to furnace closures and additional restructuring activities. | ||||||||||||||
Other Restructuring Actions | ||||||||||||||
The Company took certain other restructuring actions and recorded charges in 2013 of $16 million for employee costs related to the closure of flat glass operations in South America, $13 million for employee costs related to global headcount reduction initiatives and $3 million for miscellaneous other costs. In 2012, the Company recorded charges of $13 million for employee costs and asset impairments related to a decision to close a machine manufacturing facility in the U.S., $7 million for employee costs and asset impairments related to a decision to close a mold shop in South America and $15 million for miscellaneous other costs. In 2011, the Company recorded charges of $13 million related to headcount reductions, primarily in Europe and South America, and $12 million for an asset impairment related to a previously closed facility in Europe. | ||||||||||||||
The beginning accrual balance for other restructuring actions as of January 1, 2012 primarily relates to the Company’s strategic review of its global manufacturing footprint completed in 2010. | ||||||||||||||
The following table presents information related to restructuring, asset impairment and other costs related to closed facilities: | ||||||||||||||
European | Asia Pacific | Other | Total | |||||||||||
Asset | Restructuring | Restructuring | Restructuring | |||||||||||
Optimization | Actions | |||||||||||||
Balance at January 1, 2012 | 12 | 17 | 74 | 103 | ||||||||||
2012 charges | 86 | 47 | 35 | 168 | ||||||||||
Write-down of assets to net realizable value | (30 | ) | (22 | ) | (16 | ) | (68 | ) | ||||||
Net cash paid, principally severance and related benefits | (16 | ) | (25 | ) | (25 | ) | (66 | ) | ||||||
Pension charges transferred to other accounts | (11 | ) | (4 | ) | (15 | ) | ||||||||
Other, including foreign exchange translation | 1 | 1 | ||||||||||||
Balance at December 31, 2012 | 53 | 6 | 64 | 123 | ||||||||||
2013 charges | 16 | 49 | 32 | 97 | ||||||||||
Write-down of assets to net realizable value | (3 | ) | (11 | ) | (2 | ) | (16 | ) | ||||||
Net cash paid, principally severance and related benefits | (37 | ) | (16 | ) | (25 | ) | (78 | ) | ||||||
Pension charges transferred to other accounts | (6 | ) | (6 | ) | ||||||||||
Other, including foreign exchange translation | 1 | (2 | ) | (5 | ) | (6 | ) | |||||||
Balance at December 31, 2013 | $ | 30 | $ | 20 | $ | 64 | $ | 114 | ||||||
The restructuring accrual balance represents the Company’s estimates of the remaining future cash amounts to be paid related to the actions noted above. As of December 31, 2013, the Company’s estimates include approximately $71 million for severance and related benefits costs, $27 million for environmental remediation costs, and $16 million for other exit costs. The 2012 charges include approximately $14 million related to environmental remediation costs at a closed facility in Europe. |
Pension_Benefit_Plans_and_Othe
Pension Benefit Plans and Other Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Pension Benefit Plans and Other Postretirement Benefits | ' | |||||||||||||||||||||||||
Pension Benefit Plans and Other Postretirement Benefits | ' | |||||||||||||||||||||||||
10. Pension Benefit Plans and Other Postretirement Benefits | ||||||||||||||||||||||||||
Pension Benefit Plans | ||||||||||||||||||||||||||
The Company has defined benefit pension plans covering a substantial number of employees located in the United States, the United Kingdom, the Netherlands, Canada and Australia, as well as many employees in Germany, France and Switzerland. Benefits generally are based on compensation for salaried employees and on length of service for hourly employees. The Company’s policy is to fund pension plans such that sufficient assets will be available to meet future benefit requirements. The Company’s defined benefit pension plans use a December 31 measurement date. The following tables relate to the Company’s principal defined benefit pension plans. | ||||||||||||||||||||||||||
The changes in the pension benefit obligations for the year are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Obligations at beginning of year | $ | 2,647 | $ | 2,547 | $ | 1,911 | $ | 1,553 | ||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||
Service cost | 27 | 27 | 33 | 26 | ||||||||||||||||||||||
Interest cost | 106 | 114 | 72 | 77 | ||||||||||||||||||||||
Actuarial (gain) loss, including the effect of change in discount rates | (234 | ) | 170 | (1 | ) | 293 | ||||||||||||||||||||
Curtailment and plan amendment | (52 | ) | ||||||||||||||||||||||||
Special termination | 8 | |||||||||||||||||||||||||
Participant contributions | 7 | 7 | ||||||||||||||||||||||||
Benefit payments | (279 | ) | (220 | ) | (101 | ) | (101 | ) | ||||||||||||||||||
Other | 9 | (4 | ) | |||||||||||||||||||||||
Foreign currency translation | 1 | 56 | ||||||||||||||||||||||||
Net change in benefit obligations | (372 | ) | 100 | (45 | ) | 358 | ||||||||||||||||||||
Obligations at end of year | $ | 2,275 | $ | 2,647 | $ | 1,866 | $ | 1,911 | ||||||||||||||||||
The changes in the fair value of the pension plans’ assets for the year are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Fair value at beginning of year | $ | 2,175 | $ | 2,011 | $ | 1,527 | $ | 1,325 | ||||||||||||||||||
Change in fair value: | ||||||||||||||||||||||||||
Actual gain (loss) on plan assets | 365 | 275 | 61 | 118 | ||||||||||||||||||||||
Benefit payments | (279 | ) | (220 | ) | (101 | ) | (101 | ) | ||||||||||||||||||
Employer contributions | 12 | 109 | 92 | 110 | ||||||||||||||||||||||
Participant contributions | 7 | 7 | ||||||||||||||||||||||||
Foreign currency translation | (5 | ) | 43 | |||||||||||||||||||||||
Other | (3 | ) | 25 | |||||||||||||||||||||||
Net change in fair value of assets | 98 | 164 | 51 | 202 | ||||||||||||||||||||||
Fair value at end of year | $ | 2,273 | $ | 2,175 | $ | 1,578 | $ | 1,527 | ||||||||||||||||||
The employer contributions in the U.S. for 2013 include $8 million related to special termination benefits for a discontinued operation. | ||||||||||||||||||||||||||
The funded status of the pension plans at year end is as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Plan assets at fair value | $ | 2,273 | $ | 2,175 | $ | 1,578 | $ | 1,527 | ||||||||||||||||||
Projected benefit obligations | 2,275 | 2,647 | 1,866 | 1,911 | ||||||||||||||||||||||
Plan assets less than projected benefit obligations | (2 | ) | (472 | ) | (288 | ) | (384 | ) | ||||||||||||||||||
Items not yet recognized in pension expense: | ||||||||||||||||||||||||||
Actuarial loss | 935 | 1,461 | 488 | 534 | ||||||||||||||||||||||
Prior service cost (credit) | 2 | 2 | (25 | ) | (9 | ) | ||||||||||||||||||||
937 | 1,463 | 463 | 525 | |||||||||||||||||||||||
Net amount recognized | $ | 935 | $ | 991 | $ | 175 | $ | 141 | ||||||||||||||||||
The net amount recognized is included in the Consolidated Balance Sheets at December 31, 2013 and 2012 as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Pension assets | $ | 46 | $ | — | $ | 22 | $ | — | ||||||||||||||||||
Current pension liability, included with Other accrued liabilities | (2 | ) | (3 | ) | (6 | ) | (7 | ) | ||||||||||||||||||
Pension benefits | (46 | ) | (469 | ) | (304 | ) | (377 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | 937 | 1,463 | 463 | 525 | ||||||||||||||||||||||
Net amount recognized | $ | 935 | $ | 991 | $ | 175 | $ | 141 | ||||||||||||||||||
The following changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income at December 31, 2013 and 2012 as follows (amounts are pretax): | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current year actuarial (gain) loss | $ | (416 | ) | $ | 79 | $ | 28 | $ | 239 | |||||||||||||||||
Amortization of actuarial loss | (110 | ) | (96 | ) | (28 | ) | (22 | ) | ||||||||||||||||||
Amortization of prior service credit | 1 | |||||||||||||||||||||||||
Curtailment and plan amendment | (52 | ) | ||||||||||||||||||||||||
Settlement | (6 | ) | (11 | ) | ||||||||||||||||||||||
(526 | ) | (17 | ) | (57 | ) | 206 | ||||||||||||||||||||
Translation | (5 | ) | 17 | |||||||||||||||||||||||
$ | (526 | ) | $ | (17 | ) | $ | (62 | ) | $ | 223 | ||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $4,015 million and $4,298 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
The components of the net pension expense for the year are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 27 | $ | 27 | $ | 25 | $ | 33 | $ | 26 | $ | 24 | ||||||||||||||
Interest cost | 106 | 114 | 125 | 72 | 77 | 83 | ||||||||||||||||||||
Expected asset return | (183 | ) | (183 | ) | (186 | ) | (91 | ) | (87 | ) | (86 | ) | ||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | 110 | 96 | 83 | 28 | 22 | 24 | ||||||||||||||||||||
Prior service credit | (1 | ) | (1 | ) | ||||||||||||||||||||||
Net amortization | 110 | 96 | 83 | 27 | 22 | 23 | ||||||||||||||||||||
Net expense | $ | 60 | $ | 54 | $ | 47 | $ | 41 | $ | 38 | $ | 44 | ||||||||||||||
The U.S. pension expense excludes $8 million of special termination benefits that were recorded in discontinued operations in 2013. The U.S. pension expense excludes $4 million of special termination benefits that were recorded in restructuring expense in 2012. The non-U.S. pension expense excludes $6 million and $11 million of pension settlement costs that were recorded in restructuring expense in 2013 and 2012, respectively. | ||||||||||||||||||||||||||
Amounts that are expected to be amortized from accumulated other comprehensive income into net pension expense during 2014: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | $ | 74 | $ | 22 | ||||||||||||||||||||||
Prior service cost | (3 | ) | ||||||||||||||||||||||||
Net amortization | $ | 74 | $ | 19 | ||||||||||||||||||||||
The following information is for plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at year end: | ||||||||||||||||||||||||||
Projected Benefit Obligation Exceeds | Accumulated Benefit Obligation Exceeds | |||||||||||||||||||||||||
the Fair Value of Plan Assets | the Fair Value of Plan Assets | |||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Projected benefit obligations | $ | 674 | $ | 2,647 | $ | 1,588 | $ | 1,911 | $ | 674 | $ | 2,647 | $ | 1,588 | $ | 1,172 | ||||||||||
Accumulated benefit obligation | 646 | 2,569 | 1,537 | 1,729 | 646 | 2,569 | 1,537 | 1,090 | ||||||||||||||||||
Fair value of plan assets | 626 | 2,175 | 1,278 | 1,527 | 626 | 2,175 | 1,278 | 858 | ||||||||||||||||||
The weighted average assumptions used to determine benefit obligations are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Discount rate | 4.81 | % | 4.11 | % | 4.14 | % | 3.89 | % | ||||||||||||||||||
Rate of compensation increase | 2.97 | % | 2.97 | % | 3.31 | % | 3.08 | % | ||||||||||||||||||
The weighted average assumptions used to determine net periodic pension costs are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Discount rate | 4.11 | % | 4.59 | % | 5.24 | % | 3.89 | % | 4.75 | % | 5.28 | % | ||||||||||||||
Rate of compensation increase | 2.97 | % | 3.14 | % | 4.5 | % | 3.08 | % | 3.23 | % | 3.49 | % | ||||||||||||||
Expected long-term rate of return on assets | 8 | % | 8 | % | 8 | % | 6.34 | % | 6.24 | % | 6.44 | % | ||||||||||||||
Future benefits are assumed to increase in a manner consistent with past experience of the plans, which, to the extent benefits are based on compensation, includes assumed salary increases as presented above. Amortization included in net pension expense is based on the average remaining service of employees. | ||||||||||||||||||||||||||
For 2013, the Company’s weighted average expected long-term rate of return on assets was 8.00% for the U.S. plans and 6.34% for the non-U.S. plans. In developing this assumption, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions. The Company also considered its historical 10-year average return (through December 31, 2012), which was in line with the expected long-term rate of return assumption for 2013. | ||||||||||||||||||||||||||
It is the Company’s policy to invest pension plan assets in a diversified portfolio consisting of an array of asset classes within established target asset allocation ranges. The investment risk of the assets is limited by appropriate diversification both within and between asset classes. The assets for the U.S. plans are maintained in a group trust. The U.S. plans hold no individual assets other than the investment in the group trust. The assets of the group trust and the Company’s non-U.S. plans are primarily invested in a broad mix of domestic and international equities, domestic and international bonds, and real estate, subject to the target asset allocation ranges. The assets are managed with a view to ensuring that sufficient liquidity will be available to meet expected cash flow requirements. | ||||||||||||||||||||||||||
The investment valuation policy of the Company is to value investments at fair value. All investments are valued at their respective net asset values. Equity securities for which market quotations are readily available are valued at the last reported sales price on their principal exchange on valuation date or official close for certain markets. Fixed income investments are valued by an independent pricing service. Investments in registered investment companies or collective pooled funds are valued at their respective net asset values. Short-term investments are stated at amortized cost, which approximates fair value. The fair value of real estate is determined by periodic appraisals. | ||||||||||||||||||||||||||
The Company’s U.S. pension plan assets held in the group trust are classified as Level 2 assets in the fair value hierarchy. The total U.S. plan assets amounted to $2,273 million and $2,175 million as of December 31, 2013 and 2012, respectively, and consisted of approximately 72% equity securities and 28% debt securities. The following table sets forth by level, within the fair value hierarchy, the Company’s non-U.S. pension plan assets at fair value as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||
2013 | 2012 | Target | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Allocation | ||||||||||||||||||||
Cash and cash equivalents | $ | 39 | $ | 6 | $ | — | $ | 36 | $ | 20 | $ | — | ||||||||||||||
Equity securities | 387 | 210 | 367 | 173 | 45-55% | |||||||||||||||||||||
Debt securities | 752 | 116 | 2 | 714 | 113 | 3 | 40-50% | |||||||||||||||||||
Real estate | 6 | 15 | 0-10% | |||||||||||||||||||||||
Other | 13 | 47 | 18 | 68 | 0-10% | |||||||||||||||||||||
Total assets at fair value | $ | 1,191 | $ | 379 | $ | 8 | $ | 1,135 | $ | 374 | $ | 18 | ||||||||||||||
The following is a reconciliation of the Company’s pension plan assets recorded at fair value using significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Beginning balance | $ | 18 | $ | 16 | ||||||||||||||||||||||
Net increase (decrease) | (10 | ) | 2 | |||||||||||||||||||||||
Ending balance | $ | 8 | $ | 18 | ||||||||||||||||||||||
The net increase (decrease) in the fair value of the Company’s Level 3 pension plan assets is primarily due to purchases and sales of unlisted real estate funds. The change in the fair value of Level 3 pension plan assets due to actual return on those assets was immaterial in 2013. | ||||||||||||||||||||||||||
In order to maintain minimum funding requirements, the Company is required to make contributions to its defined benefit pension plans of approximately $30 million in 2014. | ||||||||||||||||||||||||||
The following estimated future benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated: | ||||||||||||||||||||||||||
Year(s) | U.S. | Non-U.S. | ||||||||||||||||||||||||
2014 | $ | 181 | $ | 82 | ||||||||||||||||||||||
2015 | 172 | 85 | ||||||||||||||||||||||||
2016 | 174 | 86 | ||||||||||||||||||||||||
2017 | 167 | 87 | ||||||||||||||||||||||||
2018 | 164 | 90 | ||||||||||||||||||||||||
2019 - 2023 | 794 | 487 | ||||||||||||||||||||||||
The Company also sponsors several defined contribution plans for all salaried and hourly U.S. employees. Participation is voluntary and participants’ contributions are based on their compensation. The Company matches contributions of participants, up to various limits, in substantially all plans. Company contributions to these plans amounted to $8 million in 2013, $7 million in 2012, and $8 million in 2011. | ||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | ||||||||||||||||||||||||||
The Company provides certain retiree health care and life insurance benefits covering substantially all U.S. salaried and certain hourly employees, and substantially all employees in Canada. Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. The Company uses a December 31 measurement date to measure its postretirement benefit obligations. | ||||||||||||||||||||||||||
The changes in the postretirement benefit obligations for the year are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Obligations at beginning of year | $ | 181 | $ | 194 | $ | 102 | $ | 95 | ||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||
Service cost | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Interest cost | 5 | 8 | 4 | 4 | ||||||||||||||||||||||
Actuarial (gain) loss, including the effect of changing discount rates | 1 | (6 | ) | (7 | ) | 3 | ||||||||||||||||||||
Benefit payments | (15 | ) | (16 | ) | (4 | ) | (3 | ) | ||||||||||||||||||
Curtailment | (62 | ) | ||||||||||||||||||||||||
Foreign currency translation | (6 | ) | 2 | |||||||||||||||||||||||
Net change in benefit obligations | (70 | ) | (13 | ) | (12 | ) | 7 | |||||||||||||||||||
Obligations at end of year | $ | 111 | $ | 181 | $ | 90 | $ | 102 | ||||||||||||||||||
The funded status of the postretirement benefit plans at year end is as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Postretirement benefit obligations | $ | (111 | ) | $ | (181 | ) | $ | (90 | ) | $ | (102 | ) | ||||||||||||||
Items not yet recognized in net postretirement benefit cost: | ||||||||||||||||||||||||||
Actuarial loss | 30 | 36 | (2 | ) | 5 | |||||||||||||||||||||
Prior service credit | (54 | ) | (8 | ) | ||||||||||||||||||||||
(24 | ) | 28 | (2 | ) | 5 | |||||||||||||||||||||
Net amount recognized | $ | (135 | ) | $ | (153 | ) | $ | (92 | ) | $ | (97 | ) | ||||||||||||||
The net amount recognized is included in the Consolidated Balance Sheets at December 31, 2013 and 2012 as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current nonpension postretirement benefit, included with Other accrued liabilities | $ | (10 | ) | $ | (15 | ) | $ | (4 | ) | $ | (4 | ) | ||||||||||||||
Nonpension postretirement benefits | (101 | ) | (166 | ) | (86 | ) | (98 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (24 | ) | 28 | (2 | ) | 5 | ||||||||||||||||||||
Net amount recognized | $ | (135 | ) | $ | (153 | ) | $ | (92 | ) | $ | (97 | ) | ||||||||||||||
The following changes in benefit obligations were recognized in accumulated other comprehensive income at December 31, 2013 and 2012 as follows (amounts are pretax): | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current year actuarial (gain) loss | $ | 1 | $ | (6 | ) | $ | (7 | ) | $ | 3 | ||||||||||||||||
Curtailment | (57 | ) | ||||||||||||||||||||||||
Amortization of actuarial loss | (3 | ) | (5 | ) | ||||||||||||||||||||||
Amortization of prior service credit | 7 | 3 | ||||||||||||||||||||||||
Other adjustments | (2 | ) | ||||||||||||||||||||||||
$ | (52 | ) | $ | (10 | ) | $ | (7 | ) | $ | 3 | ||||||||||||||||
The components of the net postretirement benefit cost for the year are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||
Interest cost | 5 | 8 | 10 | 4 | 4 | 4 | ||||||||||||||||||||
Curtailment gain | (5 | ) | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | 3 | 5 | 5 | |||||||||||||||||||||||
Prior service credit | (7 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||
Net amortization | (4 | ) | 2 | 2 | — | — | — | |||||||||||||||||||
Net postretirement benefit cost | $ | (3 | ) | $ | 11 | $ | 13 | $ | 5 | $ | 5 | $ | 5 | |||||||||||||
Amounts that are expected to be amortized from accumulated other comprehensive income into net postretirement benefit cost during 2014: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | $ | 2 | $ | — | ||||||||||||||||||||||
Prior service credit | (8 | ) | ||||||||||||||||||||||||
Net amortization | $ | (6 | ) | $ | — | |||||||||||||||||||||
The weighted average discount rates used to determine the accumulated postretirement benefit obligation and net postretirement benefit cost are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Accumulated post retirement benefit obligation | 4.63 | % | 4.04 | % | 4.47 | % | 4.47 | % | 3.89 | % | 4.13 | % | ||||||||||||||
Net postretirement benefit cost | 4.04 | % | 4.47 | % | 5.09 | % | 3.89 | % | 4.13 | % | 5.02 | % | ||||||||||||||
The weighted average assumed health care cost trend rates at December 31 are as follows: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 8 | % | 5 | % | 6 | % | ||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2024 | 2019 | 2014 | 2014 | ||||||||||||||||||||||
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
1-Percentage-Point | 1-Percentage-Point | |||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | $ | 1 | $ | (1 | ) | |||||||||||||||||
Effect on accumulated postretirement benefit obligations | 4 | (4 | ) | 15 | (12 | ) | ||||||||||||||||||||
Amortization included in net postretirement benefit cost is based on the average remaining service of employees. | ||||||||||||||||||||||||||
The following estimated future benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated: | ||||||||||||||||||||||||||
Year(s) | U.S. | Non-U.S. | ||||||||||||||||||||||||
2014 | $ | 10 | $ | 4 | ||||||||||||||||||||||
2015 | 10 | 4 | ||||||||||||||||||||||||
2016 | 10 | 4 | ||||||||||||||||||||||||
2017 | 9 | 5 | ||||||||||||||||||||||||
2018 | 9 | 5 | ||||||||||||||||||||||||
2019 - 2023 | 39 | 25 | ||||||||||||||||||||||||
Benefits provided by the Company for certain hourly retirees are determined by collective bargaining. Most other domestic hourly retirees receive health and life insurance benefits from a multi-employer trust established by collective bargaining. Payments to the trust as required by the bargaining agreements are based upon specified amounts per hour worked and were $6 million in each of the years 2013, 2012 and 2011. Postretirement health and life benefits for retirees of foreign subsidiaries are generally provided through the national health care programs of the countries in which the subsidiaries are located. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
11. Income Taxes | |||||||||||
The provision for income taxes was calculated based on the following components of earnings (loss) before income taxes: | |||||||||||
Continuing operations | 2013 | 2012 | 2011 | ||||||||
U.S. | $ | 231 | $ | 187 | $ | 188 | |||||
Non-U.S. | 249 | 296 | (419 | ) | |||||||
$ | 480 | $ | 483 | $ | (231 | ) | |||||
Discontinued operations | 2013 | 2012 | 2011 | ||||||||
U.S. | $ | (8 | ) | $ | — | $ | — | ||||
Non-U.S. | (10 | ) | (5 | ) | (2 | ) | |||||
$ | (18 | ) | $ | (5 | ) | $ | (2 | ) | |||
The provision (benefit) for income taxes consists of the following: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
U.S. | $ | 7 | $ | (4 | ) | $ | (12 | ) | |||
Non-U.S. | 116 | 117 | 139 | ||||||||
123 | 113 | 127 | |||||||||
Deferred: | |||||||||||
U.S. | 8 | 11 | |||||||||
Non-U.S. | (3 | ) | (13 | ) | (53 | ) | |||||
(3 | ) | (5 | ) | (42 | ) | ||||||
Total: | |||||||||||
U.S. | 7 | 4 | (1 | ) | |||||||
Non-U.S. | 113 | 104 | 86 | ||||||||
Total for continuing operations | 120 | 108 | 85 | ||||||||
Total for discontinued operations | (3 | ) | (3 | ) | |||||||
$ | 120 | $ | 105 | $ | 82 | ||||||
A reconciliation of the provision for income taxes based on the statutory U.S. Federal tax rate of 35% to the provision for income taxes is as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Tax provision on pretax earnings (loss) from continuing operations at statutory U.S. Federal tax rate | $ | 168 | $ | 169 | $ | (81 | ) | ||||
Increase (decrease) in provision for income taxes due to: | |||||||||||
Differences in income taxes on foreign earnings, losses and remittances | (29 | ) | (5 | ) | (13 | ) | |||||
Goodwill impairment | 224 | ||||||||||
U.S. tax consolidation benefit | (51 | ) | (54 | ) | (58 | ) | |||||
Changes in valuation allowance | 37 | (7 | ) | 15 | |||||||
Tax audits and settlements | 1 | (1 | ) | 3 | |||||||
Other items | (6 | ) | 6 | (5 | ) | ||||||
Provision for income taxes | $ | 120 | $ | 108 | $ | 85 | |||||
Deferred income taxes reflect: (1) the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes; and (2) carryovers and credits for income tax purposes. | |||||||||||
Significant components of the Company’s deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued postretirement benefits | $ | 60 | $ | 89 | |||||||
Foreign tax credit | 356 | 354 | |||||||||
Operating and capital loss carryovers | 489 | 486 | |||||||||
Other credit carryovers | 46 | 46 | |||||||||
Accrued liabilities | 89 | 95 | |||||||||
Pension liability | 47 | 237 | |||||||||
Other | 73 | 97 | |||||||||
Total deferred tax assets | 1,160 | 1,404 | |||||||||
Deferred tax liabilities: | |||||||||||
Property, plant, and equipment | 126 | 120 | |||||||||
Exchangeable notes | 10 | 19 | |||||||||
Intangibles | 27 | 13 | |||||||||
Other | 59 | 83 | |||||||||
Total deferred tax liabilities | 222 | 235 | |||||||||
Valuation allowance | (833 | ) | (1,010 | ) | |||||||
Net deferred taxes | $ | 105 | $ | 159 | |||||||
Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2013 and 2012 as follows: | |||||||||||
2013 | 2012 | ||||||||||
Prepaid expenses | $ | 64 | $ | 62 | |||||||
Other assets | 237 | 284 | |||||||||
U.S. and foreign income taxes | (5 | ) | |||||||||
Deferred taxes | (196 | ) | (182 | ) | |||||||
Net deferred taxes | $ | 105 | $ | 159 | |||||||
The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or whenever events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with other positive and negative evidence. | |||||||||||
At December 31, 2013, before valuation allowance, the Company had unused foreign tax credits of $356 million expiring in 2017 through 2022, research tax credit of $20 million expiring from 2014 to 2033, and alternative minimum tax credits of $26 million which do not expire and which will be available to offset future U.S. Federal income tax. Approximately $164 million of the deferred tax assets related to operating and capital loss carryforwards can be carried over indefinitely, with the remaining $325 million expiring between 2014 and 2031. | |||||||||||
In certain foreign jurisdictions, the Company’s analysis indicates that it has cumulative losses in recent years. This is considered significant negative evidence which is objective and verifiable and, therefore, difficult to overcome. However, the cumulative loss position is not solely determinative and, accordingly, the Company considers all other available positive and negative evidence in its analysis. Based on its analysis, the Company has recorded a valuation allowance for the portion of deferred tax assets where based on the weight of available evidence it is unlikely to realize those deferred tax assets. | |||||||||||
In the U.S., the Company has experienced cumulative losses in previous years and has recorded a valuation allowance against its deferred tax assets. As of December 31, 2013, however, the Company’s U.S. operations are in a three-year cumulative income position, but this is not solely determinative of the need for a valuation allowance. The Company considered this factor and all other available positive and negative evidence and concluded that it is still more likely than not that the net deferred tax assets in the U.S. will not be realized, and accordingly continued to record a valuation allowance. The evidence considered included the magnitude of the current three-year cumulative income compared to historical losses, expected impact of tax planning strategies, interest rates, and the overall business environment. The Company continues to evaluate its cumulative income position and income trend as well as its future projections of sustained profitability and whether this profitability trend constitutes sufficient positive evidence to support a reversal of the valuation allowance (in full or in part). The amount of the valuation allowance recorded in the U.S. as of December 31, 2013 is $680 million. | |||||||||||
At December 31, 2013, the Company’s equity in the undistributed earnings of foreign subsidiaries for which income taxes had not been provided approximated $3.2 billion. The Company intends to reinvest these earnings indefinitely in the non-U.S. operations and has not distributed any of these earnings to the U.S. in 2013, 2012 or 2011. It is not practicable to estimate the U.S. and foreign tax which would be payable should these earnings be distributed. Deferred taxes are provided for earnings of non-U.S. jurisdictions when the Company plans to remit those earnings. | |||||||||||
The Company has recognized tax benefits as a result of incentives in certain non-U.S. jurisdictions which expire between 2014 and 2016. | |||||||||||
The Company records a liability for unrecognized tax benefits related to uncertain tax positions. The Company accrues interest and penalties associated with unrecognized tax benefits as a component of its income tax expense. The following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at January 1 | $ | 97 | $ | 125 | $ | 143 | |||||
Additions and reductions for tax positions of prior years | (3 | ) | 8 | (15 | ) | ||||||
Additions based on tax positions related to the current year | 9 | 7 | 30 | ||||||||
Reductions due to the lapse of the applicable statute of limitations | (2 | ) | (21 | ) | (8 | ) | |||||
Reductions due to settlements | (26 | ) | (18 | ) | |||||||
Foreign currency translation | (1 | ) | 4 | (7 | ) | ||||||
Balance at December 31 | $ | 100 | $ | 97 | $ | 125 | |||||
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate | $ | 92 | $ | 89 | $ | 114 | |||||
Accrued interest and penalties at December 31 | $ | 35 | $ | 33 | $ | 49 | |||||
Interest and penalties included in tax expense for the years ended December 31 | $ | 1 | $ | (6 | ) | $ | 18 | ||||
Based upon the outcome of tax examinations, judicial proceedings, or expiration of statute of limitations, it is reasonably possible that the ultimate resolution of these unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. The Company believes that it is reasonably possible that the estimated liability could decrease up to $20 million within the next 12 months. This is primarily the result of audit settlements or statute expirations in several taxing jurisdictions. | |||||||||||
The Company is currently under examination in various tax jurisdictions in which it operates, including Argentina, Australia, Ecuador, Germany, and Italy. The years under examination range from 2005 through 2012. The Company believes that there are no jurisdictions in which the outcome of unresolved issues or claims is likely to be material to the Company’s results of operations, financial position or cash flows. The Company further believes that adequate provisions for all income tax uncertainties have been made. During 2013, the Company concluded audits in several jurisdictions, including Czech Republic, France, New Zealand, Peru, Poland, Spain and the United Kingdom. |
Debt
Debt | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Debt | ' | |||||||||
Debt | ' | |||||||||
12. Debt | ||||||||||
The following table summarizes the long-term debt of the Company at December 31, 2013 and 2012: | ||||||||||
2013 | 2012 | |||||||||
Secured Credit Agreement: | ||||||||||
Revolving Credit Facility: | ||||||||||
Revolving Loans | $ | — | $ | — | ||||||
Term Loans: | ||||||||||
Term Loan A | 53 | |||||||||
Term Loan B | 405 | 525 | ||||||||
Term Loan C (81 million CAD at December 31, 2013) | 76 | 102 | ||||||||
Term Loan D (€85 million at December 31, 2013) | 117 | 163 | ||||||||
Senior Notes: | ||||||||||
3.00%, Exchangeable, due 2015 | 617 | 642 | ||||||||
7.375%, due 2016 | 593 | 591 | ||||||||
6.875%, due 2017 (€300 million) | 396 | |||||||||
6.75%, due 2020 (€500 million) | 690 | 660 | ||||||||
4.875%, due 2021 (€330 million) | 455 | |||||||||
Payable to OI Inc. | 250 | 250 | ||||||||
Other | 58 | 95 | ||||||||
Total long-term debt | 3,261 | 3,477 | ||||||||
Less amounts due within one year | 16 | 23 | ||||||||
Long-term debt | $ | 3,245 | $ | 3,454 | ||||||
On May 19, 2011, the Company entered into the Secured Credit Agreement (the “Agreement”). At December 31, 2013, the Agreement included a $900 million revolving credit facility, a $405 million term loan, an 81 million Canadian dollar term loan, and a €85 million term loan, each of which has a final maturity date of May 19, 2016. During 2013, the Company repaid 51 million Australian dollars on Term Loan A, $120 million on Term Loan B, 20 million Canadian dollars on Term Loan C and €39 million on Term Loan D under the Agreement. At December 31, 2013, the Company had unused credit of $816 million available under the Agreement. | ||||||||||
The Agreement contains various covenants that restrict, among other things and subject to certain exceptions, the ability of the Company to incur certain liens, make certain investments, become liable under contingent obligations in certain defined instances only, make restricted junior payments, make certain asset sales within guidelines and limits, make capital expenditures beyond a certain threshold, engage in material transactions with shareholders and affiliates, participate in sale and leaseback financing arrangements, alter its fundamental business, and amend certain outstanding debt obligations. | ||||||||||
The Agreement also contains one financial maintenance covenant, a Leverage Ratio, that requires the Company not to exceed a ratio calculated by dividing consolidated total debt, less cash and cash equivalents, by Consolidated Adjusted EBITDA, as defined in the Agreement. The Leverage Ratio could restrict the ability of the Company to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Leverage Ratio to exceed the specified maximum. | ||||||||||
Failure to comply with these covenants and restrictions could result in an event of default under the Agreement. In such an event, the Company could not request borrowings under the revolving facility, and all amounts outstanding under the Agreement, together with accrued interest, could then be declared immediately due and payable. If an event of default occurs under the Agreement and the lenders cause all of the outstanding debt obligations under the Agreement to become due and payable, this would result in a default under a number of other outstanding debt securities and could lead to an acceleration of obligations related to these debt securities. A default or event of default under the Agreement, indentures or agreements governing other indebtedness could also lead to an acceleration of debt under other debt instruments that contain cross acceleration or cross-default provisions. | ||||||||||
The Leverage Ratio also determines pricing under the Agreement. The interest rate on borrowings under the Agreement is, at the Company’s option, the Base Rate or the Eurocurrency Rate, as defined in the Agreement. These rates include a margin linked to the Leverage Ratio. The margins range from 1.25% to 2.00% for Eurocurrency Rate loans and from 0.25% to 1.00% for Base Rate loans. In addition, a facility fee is payable on the revolving credit facility commitments ranging from 0.25% to 0.50% per annum linked to the Leverage Ratio. The weighted average interest rate on borrowings outstanding under the Agreement at December 31, 2013 was 2.12%. As of December 31, 2013, the Company was in compliance with all covenants and restrictions in the Agreement. In addition, the Company believes that it will remain in compliance and that its ability to borrow funds under the Agreement will not be adversely affected by the covenants and restrictions. | ||||||||||
Borrowings under the Agreement are secured by substantially all of the assets, excluding real estate, of the Company’s domestic subsidiaries and certain foreign subsidiaries. Borrowings are also secured by a pledge of intercompany debt and equity in most of the Company’s domestic subsidiaries and stock of certain foreign subsidiaries. All borrowings under the agreement are guaranteed by substantially all domestic subsidiaries of the Company for the term of the Agreement. | ||||||||||
During March 2013, the Company issued senior notes with a face value of €330 million due March 31, 2021. The notes bear interest at 4.875% and are guaranteed by substantially all of the Company’s domestic subsidiaries. The net proceeds, after deducting debt issuance costs, totaled approximately $418 million. | ||||||||||
During March 2013, the Company discharged, in accordance with the indenture, all €300 million of the 6.875% senior notes due 2017. The Company recorded $11 million of additional interest charges for note repurchase premiums and the related write-off of unamortized finance fees. | ||||||||||
During May 2010, a subsidiary of the Company issued exchangeable senior notes with a face value of $690 million due June 1, 2015 (“2015 Exchangeable Notes”). The 2015 Exchangeable Notes bear interest at 3.00% and are guaranteed by substantially all of the Company’s domestic subsidiaries. | ||||||||||
Upon exchange of the 2015 Exchangeable Notes, under the terms outlined below, the issuer of the 2015 Exchangeable Notes is required to settle the principal amount in cash and OI Inc. is required to settle the exchange premium in shares of OI Inc.’s common stock. The exchange premium is calculated as the value of OI Inc.’s common stock in excess of the initial exchange price of approximately $47.47 per share, which is equivalent to an exchange rate of 21.0642 per $1,000 principal amount of the 2015 Exchangeable Notes. The exchange rate may be adjusted upon the occurrence of certain events, such as certain distributions, dividends or issuances of cash, stock, options, warrants or other property or effecting a share split, or a significant change in the ownership or structure of the Company or OI Inc., such as a recapitalization or reclassification of OI Inc.’s common stock, a merger or consolidation involving the Company or the sale or conveyance to another person of all or substantially all of the property and assets of the Company and its subsidiaries substantially as an entirety. | ||||||||||
Prior to March 1, 2015, the 2015 Exchangeable Notes may be exchanged only if (1) the price of OI Inc.’s common stock exceeds $61.71 (130% of the exchange price) for a specified period of time, (2) the trading price of the 2015 Exchangeable Notes falls below 98% of the average exchange value of the 2015 Exchangeable Notes for a specified period of time (trading price was 139% of exchange value at December 31, 2013), or (3) upon the occurrence of specified corporate transactions. The 2015 Exchangeable Notes may be exchanged without restrictions on or after March 1, 2015. As of December 31, 2013, the 2015 Exchangeable Notes are not exchangeable by the holders. | ||||||||||
For accounting purposes, the 2015 Exchangeable Notes are considered to be non-exchangeable since OI Inc. is directly responsible for settling the exchange premium, if any. The issuer’s obligation with respect to the instrument is limited to only the payment of interest and principal. The value of OI Inc.’s obligation to holders of the 2015 Exchangeable Notes was computed using the Company’s non-exchangeable debt borrowing rate at the date of issuance of 6.15% and was accounted for as a debt discount and a corresponding capital contribution. | ||||||||||
During 2013, the Company repurchased $46 million of the 2015 Exchangeable Notes. The amount by which the cash paid exceeded the fair value of the notes repurchased was recorded as a reduction to share owners’ equity. The Company recorded $3 million of additional interest charges for the loss on debt extinguishment and the related write-off of unamortized finance fees. | ||||||||||
The carrying values of the liability and equity components at December 31, 2013 and 2012 are as follows: | ||||||||||
2013 | 2012 | |||||||||
Principal amount of exchangeable notes | $ | 644 | $ | 690 | ||||||
Unamortized discount on exchangeable notes | 27 | 48 | ||||||||
Net carrying amount of liability component | $ | 617 | $ | 642 | ||||||
Carrying amount of equity component | $ | 92 | $ | 93 | ||||||
The debt discount is being amortized over the life of the 2015 Exchangeable Notes. The amount of interest expense recognized on the 2015 Exchangeable Notes for the years ended December 31, 2013 and 2012 is as follows: | ||||||||||
2013 | 2012 | |||||||||
Contractual coupon interest | $ | 20 | $ | 21 | ||||||
Amortization of discount on exchangeable notes | 18 | 18 | ||||||||
Total interest expense | $ | 38 | $ | 39 | ||||||
During 2011, the Company recorded additional interest charges of $25 million for note repurchase premiums and the related write-off of unamortized finance fees related to debt that was repaid prior to maturity. | ||||||||||
The Company has a €215 million European accounts receivable securitization program, which extends through September 2016, subject to periodic renewal of backup credit lines. Information related to the Company’s accounts receivable securitization program as of December 31, 2013 and 2012 is as follows: | ||||||||||
2013 | 2012 | |||||||||
Balance (included in short-term loans) | $ | 276 | $ | 264 | ||||||
Weighted average interest rate | 1.41 | % | 1.33 | % | ||||||
As of December 31, 2013, the Company has capital lease obligations of $37 million included in other in the long-term debt table above. | ||||||||||
Annual maturities for all of the Company’s long-term debt through 2018 are as follows: 2014, $16 million; 2015, $984 million; 2016, $877 million; 2017, $4 million; and 2018, $255 million. | ||||||||||
Fair values at December 31, 2013, of the Company’s significant fixed rate debt obligations are as follows: | ||||||||||
Principal Amount | Indicated | Fair Value | ||||||||
Market | ||||||||||
Price | ||||||||||
Senior Notes: | ||||||||||
3.00%, Exchangeable, due 2015 | $ | 644 | 104.71 | $ | 674 | |||||
7.375%, due 2016 | 600 | 112.76 | 677 | |||||||
6.75%, due 2020 (€500 million) | 690 | 116.5 | 804 | |||||||
4.875%, due 2021 (€330 million) | 455 | 105.04 | 478 | |||||||
Contingencies
Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Contingencies | ' | |||||||
Contingencies | ' | |||||||
13. Contingencies | ||||||||
Asbestos | ||||||||
OI Inc. is a defendant in numerous lawsuits alleging bodily injury and death as a result of exposure to asbestos dust. From 1948 to 1958, one of OI Inc.’s former business units commercially produced and sold approximately $40 million of a high-temperature, calcium-silicate based pipe and block insulation material containing asbestos. OI Inc. exited the pipe and block insulation business in April 1958. The typical asbestos personal injury lawsuit alleges various theories of liability, including negligence, gross negligence and strict liability and seeks compensatory and in some cases, punitive damages in various amounts (herein referred to as “asbestos claims”). | ||||||||
The following table shows the approximate number of plaintiffs and claimants who had asbestos claims pending against OI Inc. at the beginning of each listed year, the number of claims disposed of during that year, the year’s filings and the claims pending at the end of each listed year (eliminating duplicate filings): | ||||||||
2013 | 2012 | 2011 | ||||||
Pending at beginning of year | 2,600 | 4,600 | 5,900 | |||||
Disposed | 1,700 | 4,400 | 4,500 | |||||
Filed | 1,700 | 2,400 | 3,200 | |||||
Pending at end of year | 2,600 | 2,600 | 4,600 | |||||
Based on an analysis of the lawsuits pending as of December 31, 2013, approximately 80% of plaintiffs either do not specify the monetary damages sought, or in the case of court filings, claim an amount sufficient to invoke the jurisdictional minimum of the trial court. Approximately 16% of plaintiffs specifically plead damages above the jurisdictional minimum up to, and including, $15 million or less, and 3% of plaintiffs specifically plead damages greater than $15 million but less than $100 million. Fewer than 1% of plaintiffs specifically plead damages equal to or greater than $100 million. | ||||||||
As indicated by the foregoing summary, current pleading practice permits considerable variation in the assertion of monetary damages. OI Inc.’s experience resolving hundreds of thousands of asbestos claims and lawsuits over an extended period demonstrates that the monetary relief that may be alleged in a complaint bears little relevance to a claim’s merits or disposition value. Rather, the amount potentially recoverable is determined by such factors as the severity of the plaintiff’s asbestos disease, the product identification evidence against OI Inc. and other defendants, the defenses available to OI Inc. and other defendants, the specific jurisdiction in which the claim is made, and the plaintiff’s medical history and exposure to other disease-causing agents. | ||||||||
In addition to the pending claims set forth above, OI Inc. has claims-handling agreements in place with many plaintiffs’ counsel throughout the country. These agreements require evaluation and negotiation regarding whether particular claimants qualify under the criteria established by such agreements. The criteria for such claims include verification of a compensable illness and a reasonable probability of exposure to a product manufactured by OI Inc.’s former business unit during its manufacturing period ending in 1958. | ||||||||
OI Inc. has also been a defendant in other asbestos-related lawsuits or claims involving maritime workers, medical monitoring claimants, co-defendants and property damage claimants. Based upon its past experience, OI Inc. believes that these categories of lawsuits and claims will not involve any material liability and they are not included in the above description of pending matters or in the following description of disposed matters. | ||||||||
Since receiving its first asbestos claim, OI Inc. as of December 31, 2013, has disposed of the asbestos claims of approximately 393,000 plaintiffs and claimants at an average indemnity payment per claim of approximately $8,600. Certain of these dispositions have included deferred amounts payable over a number of years. Deferred amounts payable totaled approximately $12 million at December 31, 2013 ($24 million at December 31, 2012) and are included in the foregoing average indemnity payment per claim. OI Inc.’s asbestos indemnity payments have varied on a per claim basis, and are expected to continue to vary considerably over time. As discussed above, a part of OI Inc.’s objective is to achieve, where possible, resolution of asbestos claims pursuant to claims-handling agreements. Failure of claimants to meet certain medical and product exposure criteria in OI Inc.’s administrative claims handling agreements has generally reduced the number of marginal or suspect claims that would otherwise have been received. In addition, certain courts and legislatures have reduced or eliminated the number of marginal or suspect claims that OI Inc. otherwise would have received. These developments generally have had the effect of increasing OI Inc.’s per-claim average indemnity payment over time. | ||||||||
OI Inc. believes that its ultimate asbestos-related liability (i.e., its indemnity payments or other claim disposition costs plus related legal fees) cannot reasonably be estimated. Beginning with the initial liability of $975 million established in 1993, OI Inc. has accrued a total of approximately $4.3 billion through 2013, before insurance recoveries, for its asbestos-related liability. OI Inc.’s ability to reasonably estimate its liability has been significantly affected by, among other factors, the volatility of asbestos-related litigation in the United States, the significant number of co-defendants that have filed for bankruptcy, the magnitude and timing of co-defendant bankruptcy trust payments, the inherent uncertainty of future disease incidence and claiming patterns against OI Inc., and the success of efforts by co-defendants to restrict or eliminate their liability in the litigation. | ||||||||
OI Inc. has continued to monitor trends that may affect its ultimate liability and has continued to analyze the developments and variables affecting or likely to affect the resolution of pending and future asbestos claims against OI Inc. The material components of OI Inc.’s accrued liability are based on amounts determined by OI Inc. in connection with its annual comprehensive review and consist of the following estimates, to the extent it is probable that such liabilities have been incurred and can be reasonably estimated: (i) the liability for asbestos claims already asserted against OI Inc.; (ii) the liability for asbestos claims not yet asserted against OI Inc., but which OI Inc. believes will be asserted in the next several years; and (iii) the legal defense costs likely to be incurred in connection with the foregoing types of claims. | ||||||||
The significant assumptions underlying the material components of OI Inc.’s accrual are: | ||||||||
(a) the extent to which settlements are limited to claimants who were exposed to OI Inc.’s asbestos-containing insulation prior to its exit from that business in 1958; | ||||||||
b) the extent to which claims are resolved under OI Inc.’s administrative claims agreements or on terms comparable to those set forth in those agreements; | ||||||||
c) the extent of decrease or increase in the incidence of serious disease cases and claiming patterns for such cases; | ||||||||
d) the extent to which OI Inc. is able to defend itself successfully at trial or on appeal; | ||||||||
e) the number and timing of additional co-defendant bankruptcies; and | ||||||||
f) the extent to which co-defendants with substantial resources and assets continue to participate significantly in the resolution of future asbestos lawsuits and claims. | ||||||||
As noted above, OI Inc. conducts a comprehensive review of its asbestos-related liabilities and costs annually in connection with finalizing and reporting its annual results of operations, unless significant changes in trends or new developments warrant an earlier review. If the results of an annual comprehensive review indicate that the existing amount of the accrued liability is insufficient to cover its estimated future asbestos-related costs, then OI Inc. will record an appropriate charge to increase the accrued liability. OI Inc. believes that a reasonable estimation of the probable amount of the liability for claims not yet asserted against OI Inc. is not possible beyond a period of several years. Therefore, while the results of future annual comprehensive reviews cannot be determined, OI Inc. expects the addition of one year to the estimation period will result in an annual charge. | ||||||||
OI Inc.’s reported results of operations for 2013 were materially affected by the $145 million fourth quarter charge for asbestos-related costs and asbestos-related payments continue to be substantial. Any future additional charge would likewise materially affect OI Inc.’s results of operations for the period in which it is recorded. Also, the continued use of significant amounts of cash for asbestos-related costs has affected and may continue to affect the Company’s and OI Inc.’s cost of borrowing and its ability to pursue global or domestic acquisitions. However, the Company believes that its operating cash flows and other sources of liquidity will be sufficient to fund OI Inc.’s asbestos-related costs and to fund the Company’s working capital and capital expenditure requirements on a short-term and long-term basis. | ||||||||
Other Matters | ||||||||
The Company conducted an internal investigation into conduct in certain of its overseas operations that may have violated the anti-bribery provisions of the United States Foreign Corrupt Practices Act (the “FCPA”), the FCPA’s books and records and internal controls provisions, the Company’s own internal policies, and various local laws. In October 2012, the Company voluntarily disclosed these matters to the U.S. Department of Justice (the “DOJ”) and the Securities and Exchange Commission (the “SEC”). | ||||||||
On July 18, 2013, the Company received a letter from the DOJ indicating that it presently did not intend to take any enforcement action and is closing its inquiry into the matter. | ||||||||
The Company is presently unable to predict the duration, scope or result of an investigation by the SEC, if any, or whether the SEC will commence any legal action. The SEC has a broad range of civil sanctions under the FCPA and other laws and regulations including, but not limited to, injunctive relief, disgorgement, penalties, and modifications to business practices. The Company could also be subject to investigation and sanctions outside the United States. While the Company is currently unable to quantify the impact of any potential sanctions or remedial measures, it does not expect such actions will have a material adverse effect on the Company’s liquidity, results of operations or financial condition. | ||||||||
The Company received a non-income tax assessment from a foreign tax authority for approximately $90 million (including penalties and interest). The Company challenged this assessment, but the tax authority’s position was upheld in court. The Company strongly disagrees with this ruling and believes it to be contradictory to other court rulings in the Company’s favor. Although the Company cannot predict the ultimate outcome of this case, it believes that it is probable that the tax authority’s assessment will be overturned by a higher court, and therefore, the Company has not established an accrual. In order to contest the lower court rulings, legal rules require the Company to deposit the amount of the tax assessment, which will be remitted in monthly installments over the next twenty-four months. A favorable ruling by the higher court will result in a return to the Company of amounts paid. An unfavorable ruling will result in the forfeiture of the deposit, a charge of approximately $60 million and a non-income tax refund of $30 million. As of December 31, 2013, the Company has made installment payments totaling $43 million, which is included in Other assets on the balance sheet. | ||||||||
Other litigation is pending against the Company, in many cases involving ordinary and routine claims incidental to the business of the Company and in others presenting allegations that are non-routine and involve compensatory, punitive or treble damage claims as well as other types of relief. The Company records a liability for such matters when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. Recorded amounts are reviewed and adjusted to reflect changes in the factors upon which the estimates are based, including additional information, negotiations, settlements and other events. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
14. Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
The components of comprehensive income are: (a) net earnings; (b) change in fair value of certain derivative instruments; (c) pension and other postretirement benefit adjustments; and (d) foreign currency translation adjustments. The net effect of exchange rate fluctuations generally reflects changes in the relative strength of the U.S. dollar against major foreign currencies between the beginning and end of the year. | ||||||||||||||
The following table lists the beginning balance, annual activity and ending balance of each component of accumulated other comprehensive income (loss): | ||||||||||||||
Net Effect of | Change in | Employee | Total | |||||||||||
Exchange | Certain | Benefit | Accumulated | |||||||||||
Rate | Derivative | Plans | Other | |||||||||||
Fluctuations | Instruments | Comprehensive | ||||||||||||
Loss | ||||||||||||||
Balance on January 1, 2013 | $ | 455 | $ | (7 | ) | $ | (1,913 | ) | $ | (1,465 | ) | |||
Change before reclassifications | (226 | ) | 1 | 503 | 278 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 1 | (a) | 139 | (b) | 140 | |||||||||
Tax effect | (33 | ) | (33 | ) | ||||||||||
Other comprehensive income attributable to the Company | (226 | ) | 2 | 609 | 385 | |||||||||
Balance on December 31, 2013 | $ | 229 | $ | (5 | ) | $ | (1,304 | ) | $ | (1,080 | ) | |||
(a) Amount is included in Cost of goods sold on the Consolidated Results of Operations (see Note 8 for additional information). | ||||||||||||||
(b) Amount is included in the computation of net periodic pension cost and net postretirement benefit cost (see Note 10 for additional information). |
Stock_Options_and_Other_Stock_
Stock Options and Other Stock Based Compensation | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock Options and Other Stock Based Compensation | ' | |||||||||||
Stock Options and Other Stock Based Compensation | ' | |||||||||||
15. Stock Options and Other Stock Based Compensation | ||||||||||||
The Company participates in OI Inc.’s nonqualified plans under which OI Inc. has granted stock options, restricted shares and performance vested restricted share units. At December 31, 2013, there were 4,644,000 shares available for grants under these plans. Total compensation cost for all grants of shares and units under these plans was $11 million, $11 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. The expense in 2011 was decreased as a result of adjustments made to performance vested restricted share units due to actual and expected attainment of performance goals. | ||||||||||||
Stock Options | ||||||||||||
Options granted prior to March 22, 2005, all of which are exercisable, expire following termination of employment or the day after the tenth anniversary date of the option grant. | ||||||||||||
For options granted after March 21, 2005, no options may be exercised in whole or in part during the first year after the date granted. In general, subject to change in control, these options become exercisable 25% per year beginning on the first anniversary. In general, options expire following termination of employment or the seventh anniversary of the option grant. The fair value of options is amortized over the vesting periods which range from one to four years. | ||||||||||||
Stock option information at December 31, 2013 and for the year then ended is as follows: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | |||||||||||
Number of | Exercise | Contractual | Aggregate | |||||||||
Shares | Price | Term | Intrinsic | |||||||||
(thousands) | (per share) | (years) | Value | |||||||||
Options outstanding at January 1, 2013 | 3,735 | $ | 22.65 | |||||||||
Granted | 354 | 26.1 | ||||||||||
Exercised | (1,414 | ) | 17.52 | |||||||||
Forfeited or expired | (254 | ) | 28.9 | |||||||||
Options outstanding at December 31, 2013 | 2,421 | 25.5 | 3.4 | $ | 30 | |||||||
Options vested or expected to vest at December 31, 2013 | 2,354 | $ | 25.48 | 3.4 | $ | 29 | ||||||
Options exercisable at December 31, 2013 | 1,538 | $ | 25.04 | 2.4 | $ | 21 | ||||||
Certain additional information related to stock options is as follows for the periods indicated: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average grant-date fair value of options granted (per share) | $ | 12.39 | $ | 10.63 | $ | 13.7 | ||||||
Aggregate intrinsic value of options exercised | $ | 16 | $ | 3 | $ | 4 | ||||||
Aggregate cash received from options exercised | $ | 24 | $ | 4 | $ | 5 | ||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected life of options (years) | 5 | 4.75 | 4.75 | |||||||||
Expected stock price volatility | 55.3 | % | 56.6 | % | 53.2 | % | ||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | 1.7 | % | ||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||
The expected life of options is determined from historical exercise and termination data. The expected stock price volatility is determined by reference to historical prices over a period equal to the expected life. | ||||||||||||
Restricted Shares and Restricted Share Units | ||||||||||||
Shares granted to employees prior to March 22, 2005, generally vest after three years or upon retirement, whichever is later. Shares granted after March 21, 2005 and prior to 2011, vest 25% per year beginning on the first anniversary and unvested shares are forfeited upon termination of employment. Restricted share units granted to employees after 2010 vest 25% per year beginning on the first anniversary. Holders of vested restricted share units receive one share of OI Inc.’s common stock for each unit. Granted but unvested restricted share units are forfeited upon termination, unless certain retirement criteria are met. Restricted share units granted to directors vest after one year. | ||||||||||||
The fair value of the restricted shares and restricted share units is equal to the market price of OI Inc.’s common stock on the date of the grant. The fair value of restricted shares granted before March 22, 2005, is amortized ratably over the vesting period. The fair value of restricted shares and restricted share units granted after March 21, 2005, is amortized over the vesting periods which range from one to four years. | ||||||||||||
The activity of restricted shares and restricted share units is as follows: | ||||||||||||
Weighted | ||||||||||||
Number of | Average | |||||||||||
Restricted | Grant-Date | |||||||||||
Shares | Fair Value | |||||||||||
(thousands) | (per share) | |||||||||||
Nonvested at January 1, 2013 | 465 | $ | 22.34 | |||||||||
Granted | 198 | 26.49 | ||||||||||
Vested | (176 | ) | 21.99 | |||||||||
Forfeited | (30 | ) | 24.34 | |||||||||
Nonvested at December 31, 2013 | 457 | 24.14 | ||||||||||
Awards granted during 2012 | $ | 22.39 | ||||||||||
Awards granted during 2011 | $ | 29.99 | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Total fair value of shares vested | $ | 5 | $ | 5 | $ | 4 | ||||||
Performance Vested Restricted Share Units | ||||||||||||
Performance vested restricted share units vest on January 1 of the third year following the year in which they are granted. Holders of vested units may receive up to 2 shares of OI Inc.’s common stock for each unit, depending upon the attainment of consolidated performance goals established by the Compensation Committee of OI Inc.’s Board of Directors. If minimum goals are not met, no shares will be issued. Granted but unvested restricted share units are forfeited upon termination of employment, unless certain retirement criteria are met. | ||||||||||||
The fair value of each performance vested restricted share unit is equal to the product of the fair value of OI Inc.’s common stock on the date of grant and the estimated number of shares into which the performance vested restricted share unit will be converted. The fair value of performance vested restricted share units is amortized ratably over the vesting period. Should the estimated number of shares into which the performance vested restricted share unit will be converted change, an adjustment will be recorded to recognize the accumulated difference in amortization between the revised and previous estimates. | ||||||||||||
Performance vested restricted share unit activity is as follows: | ||||||||||||
Number of Performance | Weighted Average | |||||||||||
Vested Restricted Shares | Grant-Date Fair Value | |||||||||||
Units (thousands) | (per unit) | |||||||||||
Nonvested at January 1, 2013 | 813 | $ | 26.78 | |||||||||
Granted | 336 | 26.1 | ||||||||||
Vested | (110 | ) | 31.12 | |||||||||
Forfeited/Cancelled | (157 | ) | 29.55 | |||||||||
Nonvested at December 31, 2013 | 882 | 25.49 | ||||||||||
Awards granted during 2012 | $ | 22.5 | ||||||||||
Awards granted during 2011 | $ | 29.7 | ||||||||||
110,000 shares were issued in 2013 with a fair value at issuance date of $3 million related to performance vested restricted share units. | ||||||||||||
As of December 31, 2013, there was $16 million of total unrecognized compensation cost related to all unvested stock options, restricted shares, restricted share units and performance vested restricted share units. That cost is expected to be recognized over a weighted average period of approximately two years. |
Other_Expense
Other Expense | 12 Months Ended |
Dec. 31, 2013 | |
Other Expense | ' |
Other Expense | ' |
16. Other Expense | |
Other expense for the year ended December 31, 2013 included the following: | |
· The Company recorded charges totaling $97 million for restructuring, asset impairment and related charges. See Note 9 for additional information. | |
· The Company recorded charges totaling $22 million for asset impairment related to the Company’s operations in Argentina, due primarily to macroeconomic issues in that country. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The fair value of the assets was computed based on estimated future cash flows. The Company classified the significant assumptions used to determine the fair value of the impaired assets, which was not material, as Level 3 in the fair value hierarchy. | |
· Aggregate foreign currency exchange losses included in other expense were $9 million in 2013. | |
Other expense for the year ended December 31, 2012 included the following: | |
· The Company recorded charges totaling $168 million for restructuring, asset impairment and related charges. See Note 9 for additional information. | |
· During the fourth quarter of 2012, the Company recorded a gain of $61 million related to cash received from the Chinese government as compensation for land in China that the Company was required to return to the government. | |
· Aggregate foreign currency exchange losses included in other expense were $8 million in 2012. | |
Other expense for the year ended December 31, 2011 included the following: | |
· The Company recorded charges totaling $95 million for restructuring, asset impairment and related charges. See Note 9 for additional information. | |
· The Company recorded charges totaling $17 million for asset impairment, primarily due to the write down of asset values related to a 2010 acquisition in China as a result of integration challenges. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine the fair value of the impaired assets, which was not material, as Level 3 in the fair value hierarchy. | |
· The Company recorded a goodwill impairment charge of $641 million related to its Asia Pacific segment. See Note 6 for additional information. | |
· Aggregate foreign currency exchange losses included in other expense were $6 million in 2011. |
Operating_Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2013 | |
Operating Leases | ' |
Operating Leases | ' |
17. Operating Leases | |
Rent expense attributable to all warehouse, office buildings and equipment operating leases was $57 million in 2013, $76 million in 2012, and $89 million in 2011. Minimum future rentals under operating leases are as follows: 2014, $50 million; 2015, $36 million; 2016, $30 million; 2017, $26 million; 2018, $21 million; and 2019 and thereafter, $48 million. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
18. Supplemental Cash Flow Information | |||||||||||
Changes in the components of working capital related to operations (net of the effects related to acquisitions and divestitures) were as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Decrease (increase) in current assets: | |||||||||||
Receivables | $ | 18 | $ | 213 | $ | (131 | ) | ||||
Inventories | (30 | ) | (74 | ) | (102 | ) | |||||
Prepaid expenses and other | 3 | 19 | 1 | ||||||||
Increase (decrease) in current liabilities: | |||||||||||
Accounts payable | 128 | (53 | ) | 145 | |||||||
Accrued liabilities | 7 | (47 | ) | (13 | ) | ||||||
Salaries and wages | (2 | ) | 29 | (3 | ) | ||||||
U.S. and foreign income taxes | (6 | ) | (14 | ) | |||||||
$ | 124 | $ | 81 | $ | (117 | ) | |||||
Interest paid in cash, including note repurchase premiums, aggregated $205 million for 2013, $234 million for 2012, and $274 million for 2011. | |||||||||||
Income taxes paid in cash were as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. | $ | — | $ | — | $ | 1 | |||||
Non-U.S. | 128 | 132 | 111 | ||||||||
Total income taxes paid in cash | $ | 128 | $ | 132 | $ | 112 |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations | ' |
Business Combinations | ' |
19. Business Combinations | |
On August 1, 2011, the Company completed the acquisition of Verrerie du Languedoc SAS, a single-furnace glass container plant in Vergeze, France. The Vergeze plant is located near the Nestle Waters’ Perrier bottling facility and has a long-standing supply relationship with Nestle Waters. | |
On May 31, 2011, the Company acquired the noncontrolling interest in its southern Brazil operations for approximately $140 million. | |
The acquisitions, individually and in the aggregate, did not meet the thresholds for a significant acquisition and therefore no pro forma financial information is presented. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations | ' |
Discontinued Operations | ' |
20. Discontinued Operations | |
On October 26, 2010, the Venezuelan government, through Presidential Decree No. 7.751, expropriated the assets of Owens-Illinois de Venezuela and Fabrica de Vidrios Los Andes, C.A., two of the Company’s subsidiaries in that country, which in effect constituted a taking of the going concerns of those companies. Shortly after the issuance of the decree, the Venezuelan government installed temporary administrative boards to control the expropriated assets. | |
Since the issuance of the decree, the Company has cooperated with the Venezuelan government, as it is compelled to do under Venezuelan law, to provide for an orderly transition while ensuring the safety and well-being of the employees and the integrity of the production facilities. The Company has been engaged in negotiations with the Venezuelan government in relation to certain aspects of the expropriation, including the compensation payable by the government as a result of its expropriation. On September 26, 2011, the Company, having been unable to reach an agreement with the Venezuelan government regarding fair compensation, commenced an arbitration against Venezuela through the World Bank’s International Centre for Settlement of Investment Disputes. The Company is unable at this stage to predict the amount, or timing of receipt, of compensation it will ultimately receive, and will record any such compensation as a gain from discontinued operations when received. | |
The loss from discontinued operations of $18 million for the year ended December 31, 2013 includes $8 million of special termination benefits related to a previously disposed business and $10 million for ongoing costs related to the Venezuela expropriation. |
Financial_Information_for_Subs
Financial Information for Subsidiary Guarantors and Non-Guarantors | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantors | ' | |||||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantors | ' | |||||||||||||||||||
21. Financial Information for Subsidiary Guarantors and Non-Guarantors | ||||||||||||||||||||
The following presents condensed consolidating financial information for the Company, segregating: (1) Owens-Illinois Group, Inc. (the “Parent”); (2) Owens-Brockway Glass Container Inc. (the “Issuer”); (3) those domestic subsidiaries that guarantee the Senior Notes (3.00% Exchangeable Senior Notes due 2015, and 7.375% Senior Notes due 2016) of the Issuer (the “Guarantor Subsidiaries”); and (4) all other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned direct and indirect subsidiaries of the Parent and their guarantees are full, unconditional and joint and several. The Parent is also a guarantor, and its guarantee is full, unconditional and joint and several. | ||||||||||||||||||||
Subsidiaries of the Parent and of the Issuer are presented on the equity basis of accounting. Certain reclassifications have been made to conform all of the financial information to the financial presentation on a consolidated basis. The principal eliminations relate to investments in subsidiaries and intercompany balances and transactions. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Balance Sheet | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Current assets: | ||||||||||||||||||||
Accounts receivable | $ | — | $ | 68 | $ | — | $ | 875 | $ | — | $ | 943 | ||||||||
Inventories | 203 | 914 | 1,117 | |||||||||||||||||
Other current assets | 20 | 35 | 435 | 490 | ||||||||||||||||
Total current assets | — | 291 | 35 | 2,224 | — | 2,550 | ||||||||||||||
Investments in and advances to subsidiaries | 2,154 | 2,656 | 161 | (4,971 | ) | — | ||||||||||||||
Goodwill | 574 | 8 | 1,477 | 2,059 | ||||||||||||||||
Other non-current assets | 121 | 131 | 926 | 1,178 | ||||||||||||||||
Total other assets | 2,154 | 3,351 | 300 | 2,403 | (4,971 | ) | 3,237 | |||||||||||||
Property, plant and equipment, net | 651 | 38 | 1,943 | 2,632 | ||||||||||||||||
Total assets | $ | 2,154 | $ | 4,293 | $ | 373 | $ | 6,570 | $ | (4,971 | ) | $ | 8,419 | |||||||
Current liabilities : | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 293 | $ | 67 | $ | 1,422 | $ | — | $ | 1,782 | ||||||||
Short-term loans and long-term debt due within one year | 322 | 322 | ||||||||||||||||||
Total current liabilities | — | 293 | 67 | 1,744 | — | 2,104 | ||||||||||||||
Long-term debt | 250 | 1,617 | 12 | 1,366 | 3,245 | |||||||||||||||
Other non-current liabilities | 68 | 136 | 815 | 1,019 | ||||||||||||||||
Investments by and advances from parent | 2,315 | 158 | 2,498 | (4,971 | ) | — | ||||||||||||||
Total share owner’s equity of the Company | 1,904 | 1,904 | ||||||||||||||||||
Noncontrolling interests | 147 | 147 | ||||||||||||||||||
Total liabilities and share owners’ equity | $ | 2,154 | $ | 4,293 | $ | 373 | $ | 6,570 | $ | (4,971 | ) | $ | 8,419 | |||||||
December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Balance Sheet | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Current assets: | ||||||||||||||||||||
Accounts receivable | $ | — | $ | 66 | $ | (15 | ) | $ | 917 | $ | — | $ | 968 | |||||||
Inventories | 212 | 927 | 1,139 | |||||||||||||||||
Other current assets | 9 | 18 | 514 | 541 | ||||||||||||||||
Total current assets | — | 287 | 3 | 2,358 | — | 2,648 | ||||||||||||||
Investments in and advances to subsidiaries | 1,592 | 2,836 | (178 | ) | (4,250 | ) | — | |||||||||||||
Goodwill | 555 | 8 | 1,516 | 2,079 | ||||||||||||||||
Other non-current assets | 127 | 87 | 888 | 1,102 | ||||||||||||||||
Total other assets | 1,592 | 3,518 | (83 | ) | 2,404 | (4,250 | ) | 3,181 | ||||||||||||
Property, plant and equipment, net | 626 | 42 | 2,101 | 2,769 | ||||||||||||||||
Total assets | $ | 1,592 | $ | 4,431 | $ | (38 | ) | $ | 6,863 | $ | (4,250 | ) | $ | 8,598 | ||||||
Current liabilities : | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 273 | $ | 60 | $ | 1,355 | $ | — | $ | 1,688 | ||||||||
Short-term loans and long-term debt due within one year | 1 | 318 | 319 | |||||||||||||||||
Total current liabilities | — | 273 | 61 | 1,673 | — | 2,007 | ||||||||||||||
Long-term debt | 250 | 1,759 | 13 | 1,432 | 3,454 | |||||||||||||||
Other non-current liabilities | 31 | 665 | 925 | 1,621 | ||||||||||||||||
Investments by and advances from parent | 2,368 | (777 | ) | 2,659 | (4,250 | ) | — | |||||||||||||
Total share owner’s equity of the Company | 1,342 | 1,342 | ||||||||||||||||||
Noncontrolling interests | 174 | 174 | ||||||||||||||||||
Total liabilities and share owners’ equity | $ | 1,592 | $ | 4,431 | $ | (38 | ) | $ | 6,863 | $ | (4,250 | ) | $ | 8,598 | ||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,883 | $ | 3 | $ | 5,081 | $ | — | $ | 6,967 | ||||||||
Cost of goods sold | (1,555 | ) | (18 | ) | (4,063 | ) | (5,636 | ) | ||||||||||||
Gross profit | — | 328 | (15 | ) | 1,018 | — | 1,331 | |||||||||||||
Research, engineering, selling, administrative and other | (112 | ) | (83 | ) | (533 | ) | (728 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Other interest expense | (20 | ) | (107 | ) | (1 | ) | (111 | ) | (239 | ) | ||||||||||
Interest income | 10 | 10 | ||||||||||||||||||
Equity earnings from subsidiaries | 337 | 154 | (491 | ) | — | |||||||||||||||
Other equity earnings | 16 | 51 | 67 | |||||||||||||||||
Other revenue (expense) | 194 | 6 | (161 | ) | 39 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | 337 | 453 | (93 | ) | 274 | (491 | ) | 480 | ||||||||||||
Provision for income taxes | (7 | ) | (113 | ) | (120 | ) | ||||||||||||||
Earnings (loss) from continuing operations | 337 | 446 | (93 | ) | 161 | (491 | ) | 360 | ||||||||||||
Loss from discontinued operations | (8 | ) | (10 | ) | (18 | ) | ||||||||||||||
Net earnings (loss) | 329 | 446 | (93 | ) | 151 | (491 | ) | 342 | ||||||||||||
Net earnings attributable to noncontrolling interests | (13 | ) | (13 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | 329 | $ | 446 | $ | (93 | ) | $ | 138 | $ | (491 | ) | $ | 329 | ||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | 329 | $ | 446 | $ | (93 | ) | $ | 151 | $ | (491 | ) | $ | 342 | ||||||
Other comprehensive income (loss) | 385 | 2 | (201 | ) | 193 | 379 | ||||||||||||||
Total comprehensive income (loss) | 714 | 448 | (93 | ) | (50 | ) | (298 | ) | 721 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (7 | ) | (7 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 714 | $ | 448 | $ | (93 | ) | $ | (57 | ) | $ | (298 | ) | $ | 714 | |||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,868 | $ | 2 | $ | 5,130 | $ | — | $ | 7,000 | ||||||||
Cost of goods sold | (1,530 | ) | (13 | ) | (4,083 | ) | (5,626 | ) | ||||||||||||
Gross profit | — | 338 | (11 | ) | 1,047 | — | 1,374 | |||||||||||||
Research, engineering, selling, administrative and other | (165 | ) | (83 | ) | (504 | ) | (752 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Other interest expense | (20 | ) | (107 | ) | (1 | ) | (120 | ) | (248 | ) | ||||||||||
Interest income | 9 | 9 | ||||||||||||||||||
Equity earnings from subsidiaries | 339 | 193 | (532 | ) | — | |||||||||||||||
Other equity earnings | 15 | 49 | 64 | |||||||||||||||||
Other revenue | 181 | 6 | (151 | ) | 36 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | 339 | 435 | (89 | ) | 330 | (532 | ) | 483 | ||||||||||||
Provision for income taxes | (10 | ) | 5 | (103 | ) | (108 | ) | |||||||||||||
Earnings (loss) from continuing operations | 339 | 425 | (84 | ) | 227 | (532 | ) | 375 | ||||||||||||
Loss from discontinued operations | (2 | ) | (2 | ) | ||||||||||||||||
Net earnings (loss) | 339 | 425 | (84 | ) | 225 | (532 | ) | 373 | ||||||||||||
Net earnings attributable to noncontrolling interests | (34 | ) | (34 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | 339 | $ | 425 | $ | (84 | ) | $ | 191 | $ | (532 | ) | $ | 339 | ||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | 339 | $ | 425 | $ | (84 | ) | $ | 225 | $ | (532 | ) | $ | 373 | ||||||
Other comprehensive income (loss) | (185 | ) | 5 | (207 | ) | 210 | (177 | ) | ||||||||||||
Total comprehensive income (loss) | 154 | 430 | (84 | ) | 18 | (322 | ) | 196 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (42 | ) | (42 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 154 | $ | 430 | $ | (84 | ) | $ | (24 | ) | $ | (322 | ) | $ | 154 | |||||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,837 | $ | 3 | $ | 5,521 | $ | (3 | ) | $ | 7,358 | |||||||
Cost of goods sold | (1,549 | ) | (5 | ) | (4,419 | ) | 4 | (5,969 | ) | |||||||||||
Gross profit | — | 288 | (2 | ) | 1,102 | 1 | 1,389 | |||||||||||||
Research, engineering, selling, administrative and other | (120 | ) | (77 | ) | (1,213 | ) | (1,410 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Interest expense | (20 | ) | (145 | ) | (1 | ) | (148 | ) | (314 | ) | ||||||||||
Interest income | 11 | 11 | ||||||||||||||||||
Equity earnings from subsidiaries | (335 | ) | (474 | ) | 809 | — | ||||||||||||||
Other equity earnings | 9 | 57 | 66 | |||||||||||||||||
Other revenue | 216 | 1 | (190 | ) | — | 27 | ||||||||||||||
Earnings (loss) from continuing operations before income taxes | (335 | ) | (246 | ) | (79 | ) | (381 | ) | 810 | (231 | ) | |||||||||
Provision for income taxes | (1 | ) | 2 | (86 | ) | (85 | ) | |||||||||||||
Earnings (loss) from continuing operations | (335 | ) | (247 | ) | (77 | ) | (467 | ) | 810 | (316 | ) | |||||||||
Earnings (loss) from discontinued operations | 3 | (2 | ) | 1 | ||||||||||||||||
Net earnings (loss) | (335 | ) | (247 | ) | (74 | ) | (469 | ) | 810 | (315 | ) | |||||||||
Net earnings attributable to noncontrolling interests | (20 | ) | (20 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | (335 | ) | $ | (247 | ) | $ | (74 | ) | $ | (489 | ) | $ | 810 | $ | (335 | ) | |||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | (335 | ) | $ | (247 | ) | $ | (74 | ) | $ | (469 | ) | $ | 810 | $ | (315 | ) | |||
Other comprehensive income | (415 | ) | (28 | ) | (136 | ) | 164 | (415 | ) | |||||||||||
Total comprehensive income | (750 | ) | (275 | ) | (74 | ) | (605 | ) | 974 | (730 | ) | |||||||||
Comprehensive income attributable to noncontrolling interests | (20 | ) | (20 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | (750 | ) | $ | (275 | ) | $ | (74 | ) | $ | (625 | ) | $ | 974 | $ | (750 | ) | |||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | 8 | $ | 375 | $ | (43 | ) | $ | 520 | $ | (2 | ) | $ | 858 | ||||||
Cash used in discontinued operating activities | (8 | ) | (10 | ) | (18 | ) | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (111 | ) | (1 | ) | (249 | ) | (361 | ) | ||||||||||||
Acquisition, net of cash acquired | (4 | ) | (4 | ) | ||||||||||||||||
Proceeds from sales and other | 11 | 11 | ||||||||||||||||||
Net payments to fund minority partner loan | (16 | ) | (16 | ) | ||||||||||||||||
Deconsolidation of subsidiary | (32 | ) | (32 | ) | ||||||||||||||||
Cash used in investing activities | (8 | ) | (115 | ) | (1 | ) | (286 | ) | — | (402 | ) | |||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (167 | ) | (167 | ) | ||||||||||||||||
Change in intercompany transactions | 167 | (93 | ) | 74 | (150 | ) | 2 | — | ||||||||||||
Change in short term debt | 8 | 8 | ||||||||||||||||||
Payments of long term debt | (384 | ) | (13 | ) | (643 | ) | (1,040 | ) | ||||||||||||
Borrowings of long term debt | 217 | 551 | 768 | |||||||||||||||||
Net payments for hedging activity and other | (24 | ) | (24 | ) | ||||||||||||||||
Contribution from noncontrolling interests | 5 | 5 | ||||||||||||||||||
Noncontrolling dividends | (22 | ) | (22 | ) | ||||||||||||||||
Payment of finance fees | (7 | ) | (7 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (260 | ) | 61 | (282 | ) | 2 | (479 | ) | |||||||||||
Effect of exchange rate change on cash | (7 | ) | (7 | ) | ||||||||||||||||
Net change in cash | — | — | 17 | (65 | ) | — | (48 | ) | ||||||||||||
Cash at beginning of period | 10 | 421 | 431 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 27 | $ | 356 | $ | — | $ | 383 | ||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | — | $ | 148 | $ | (8 | ) | $ | 649 | $ | (44 | ) | $ | 745 | ||||||
Cash used in discontinued operating activities | (5 | ) | (5 | ) | ||||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (73 | ) | (1 | ) | (216 | ) | (290 | ) | ||||||||||||
Acquisition, net of cash acquired | (5 | ) | (5 | ) | ||||||||||||||||
Proceeds from sales and other | 2 | 93 | 95 | |||||||||||||||||
Net payments to fund minority partner loan | (21 | ) | (21 | ) | ||||||||||||||||
Cash used in investing activities | — | (71 | ) | (1 | ) | (149 | ) | — | (221 | ) | ||||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (188 | ) | (188 | ) | ||||||||||||||||
Change in intercompany transactions | 188 | (2 | ) | (1 | ) | (229 | ) | 44 | — | |||||||||||
Change in short term debt | (38 | ) | (38 | ) | ||||||||||||||||
Payments of long term debt | (185 | ) | (1 | ) | (216 | ) | (402 | ) | ||||||||||||
Borrowings of long term debt | 110 | 9 | 119 | |||||||||||||||||
Net receipts for hedging activity | 27 | 27 | ||||||||||||||||||
Contribution from noncontrolling interests | 3 | 3 | ||||||||||||||||||
Noncontrolling dividends | (24 | ) | (24 | ) | ||||||||||||||||
Payment of finance fees | (1 | ) | (1 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (77 | ) | (2 | ) | (469 | ) | 44 | (504 | ) | ||||||||||
Effect of exchange rate change on cash | 16 | 16 | ||||||||||||||||||
Net change in cash | — | — | (11 | ) | 42 | — | 31 | |||||||||||||
Cash at beginning of period | 21 | 379 | 400 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 10 | $ | 421 | $ | — | $ | 431 | ||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | — | $ | 289 | $ | (4 | ) | $ | 319 | $ | 71 | $ | 675 | |||||||
Cash used in discontinued operating activities | (2 | ) | (2 | ) | ||||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (38 | ) | (5 | ) | (242 | ) | (285 | ) | ||||||||||||
Acquisition, net of cash acquired | (8 | ) | (136 | ) | (144 | ) | ||||||||||||||
Proceeds from sales and other | 3 | 3 | ||||||||||||||||||
Cash used in investing activities | — | (46 | ) | (5 | ) | (375 | ) | — | (426 | ) | ||||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (165 | ) | (165 | ) | ||||||||||||||||
Change in intercompany transactions | 165 | 86 | (199 | ) | 17 | (69 | ) | — | ||||||||||||
Change in short term debt | 80 | 80 | ||||||||||||||||||
Payments of long term debt | (1,262 | ) | (1 | ) | (534 | ) | (1,797 | ) | ||||||||||||
Borrowings of long term debt | 933 | 534 | (2 | ) | 1,465 | |||||||||||||||
Net payments for hedging activity | (22 | ) | (22 | ) | ||||||||||||||||
Noncontrolling dividends | (35 | ) | (35 | ) | ||||||||||||||||
Payment of finance fees | (19 | ) | (19 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (243 | ) | (200 | ) | 21 | (71 | ) | (493 | ) | ||||||||||
Effect of exchange rate change on cash | 6 | 6 | ||||||||||||||||||
Net change in cash | — | — | (209 | ) | (31 | ) | — | (240 | ) | |||||||||||
Cash at beginning of period | 230 | 410 | 640 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 21 | $ | 379 | $ | — | $ | 400 | ||||||||
Selected Quarterly Financial Data (unaudited) The following tables present selected financial data by quarter for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||
2013 | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Net sales | $ | 1,641 | $ | 1,781 | $ | 1,784 | $ | 1,761 | $ | 6,967 | ||||||||||
Gross profit | $ | 319 | $ | 369 | $ | 352 | $ | 291 | $ | 1,331 | ||||||||||
Earnings (loss) from continuing operations attributable to the Company (a) | $ | 79 | $ | 135 | $ | 132 | $ | 1 | $ | 347 | ||||||||||
Earnings (loss) from discontinued operations attributable to the Company | (10 | ) | (3 | ) | (2 | ) | (3 | ) | (18 | ) | ||||||||||
Net earnings (loss) attributable to the Company | $ | 69 | $ | 132 | $ | 130 | $ | (2 | ) | $ | 329 | |||||||||
(a) Amounts management considers not representative of ongoing operations include: | ||||||||||||||||||||
Amount for the first quarter included charges totaling $21 million ($20 million after tax amount attributable to the Company) for the following: (1) $11 million (pretax and after tax) for note repurchase premiums and the write-off of finance fees related to debt that was repaid prior to its maturity; and (2) $10 million ($9 million after tax amount attributable to the Company) for restructuring, asset impairment and related charges. | ||||||||||||||||||||
Amount for the fourth quarter included net charges totaling $109 million ($84 million after tax amount attributable to the Company) for restructuring, asset impairment and related charges. | ||||||||||||||||||||
2012 | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Net sales | $ | 1,739 | $ | 1,766 | $ | 1,747 | $ | 1,748 | $ | 7,000 | ||||||||||
Gross profit | $ | 378 | $ | 376 | $ | 342 | $ | 278 | $ | 1,374 | ||||||||||
Earnings (loss) from continuing operations attributable to the Company (b) | $ | 122 | $ | 134 | $ | 92 | $ | (7 | ) | $ | 341 | |||||||||
Earnings (loss) from discontinued operations attributable to the Company | (1 | ) | (1 | ) | (2 | ) | 2 | (2 | ) | |||||||||||
Net earnings (loss) attributable to the Company | $ | 121 | $ | 133 | $ | 90 | $ | (5 | ) | $ | 339 | |||||||||
(b) Amounts management considers not representative of ongoing operations include: | ||||||||||||||||||||
Amount for the third quarter included charges of $33 million ($23 million after tax amount attributable to the Company) for restructuring, asset impairment and related charges. | ||||||||||||||||||||
Amount for the fourth quarter included net charges totaling $74 million ($88 million after tax amount attributable to the Company) for the following: (1) $135 million ($121 million after tax amount attributable to the Company) for restructuring, asset impairment and related charges; and (2) a gain of $61 million ($33 million after tax amount attributable to the Company) related to cash received from the Chinese government as compensation for land in China that the Company was required to return to the government. | ||||||||||||||||||||
Amount for the fourth quarter included a tax benefit of $14 million for certain tax adjustments. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) | ' | |||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) | ' | |||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) | ||||||||||||||||||||
Years ended December 31, 2013, 2012, and 2011 | ||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
Reserves deducted from assets in the balance sheets: | ||||||||||||||||||||
Allowances for losses and discounts on receivables | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Balance | ||||||||||||||||||
beginning | costs and | Deductions | at end of | |||||||||||||||||
of period | expenses | Other | (Note 1) | period | ||||||||||||||||
2013 | $ | 41 | $ | 11 | $ | (5 | ) | $ | (8 | ) | $ | 39 | ||||||||
2012 | $ | 38 | $ | 17 | $ | (5 | ) | $ | (9 | ) | $ | 41 | ||||||||
2011 | $ | 40 | $ | 8 | $ | (6 | ) | $ | (4 | ) | $ | 38 | ||||||||
(1) Deductions from allowances for losses and discounts on receivables represent uncollectible notes and accounts written off. | ||||||||||||||||||||
Valuation allowance on net deferred tax assets | ||||||||||||||||||||
Balance at | Charged to | Charged to other | Foreign currency | Other | Balance at | |||||||||||||||
beginning of | income | comprehensive | translation | end of | ||||||||||||||||
period | income | period | ||||||||||||||||||
2013 | $ | 1,010 | $ | (14 | ) | $ | (187 | ) | $ | (7 | ) | $ | 31 | $ | 833 | |||||
2012 | $ | 1,012 | $ | (61 | ) | $ | (10 | ) | $ | 3 | $ | 66 | $ | 1,010 | ||||||
2011 | $ | 910 | $ | (43 | ) | $ | 89 | $ | (1 | ) | $ | 57 | $ | 1,012 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
Basis of Consolidated Statements | ' |
Basis of Consolidated Statements The consolidated financial statements of Owens-Illinois Group, Inc. (the “Company”) include the accounts of its subsidiaries. Newly acquired subsidiaries have been included in the consolidated financial statements from dates of acquisition. | |
The Company uses the equity method of accounting for investments in which it has a significant ownership interest, generally 20% to 50%. Other investments are accounted for at cost. The Company monitors other than temporary declines in fair value and records reductions in carrying values when appropriate. | |
Relationship with Owens-Illinois, Inc. | ' |
Relationship with Owens-Illinois, Inc. The Company is a 100%-owned subsidiary of Owens-Illinois, Inc. (“OI Inc.”). Although OI Inc. does not conduct any operations, it has substantial obligations related to outstanding indebtedness and asbestos-related payments. OI Inc. relies primarily on distributions from its direct and indirect subsidiaries to meet these obligations. | |
For federal and certain state income tax purposes, the taxable income of the Company is included in the consolidated tax returns of OI Inc. and income taxes are allocated to the Company on a basis consistent with separate returns. | |
Nature of Operations | ' |
Nature of Operations The Company is a leading manufacturer of glass container products. The Company’s principal product lines are glass containers for the food and beverage industries. The Company has glass container operations located in 21 countries. The principal markets and operations for the Company’s products are in Europe, North America, South America and Asia Pacific. | |
Use of Estimates | ' |
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management of the Company to make estimates and assumptions that affect certain amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates, at which time the Company would revise its estimates accordingly. | |
Foreign Currency Translation | ' |
Foreign Currency Translation The assets and liabilities of non-U.S. subsidiaries are translated into U.S. dollars at year-end exchange rates. Any related translation adjustments are recorded in accumulated other comprehensive income in share owners’ equity. | |
Revenue Recognition | ' |
Revenue Recognition The Company recognizes sales, net of estimated discounts and allowances, when the title to the products and risk of loss are transferred to customers. Provisions for rebates to customers are provided in the same period that the related sales are recorded. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs Shipping and handling costs are included with cost of goods sold in the Consolidated Results of Operations. | |
Stock-Based Compensation | ' |
Stock-Based Compensation The Company participates in OI Inc.’s stock-based compensation plans consisting of stock option grants and restricted share awards. Costs resulting from all share-based compensation plans are required to be recognized in the financial statements. A public entity is required to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the required service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the required service. | |
Cash | ' |
Cash The Company defines “cash” as cash and time deposits with maturities of three months or less when purchased. Outstanding checks in excess of funds on deposit are included in accounts payable. | |
Accounts Receivable and Allowance for Doubtful Accounts | ' |
Accounts Receivable Receivables are stated at amounts estimated by management to be the net realizable value. The Company charges off accounts receivable when it becomes apparent based upon age or customer circumstances that amounts will not be collected. | |
Allowance for Doubtful Accounts The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts on a periodic basis. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. | |
Inventory Valuation | ' |
Inventory Valuation Inventories are valued at the lower of average costs or market. | |
Goodwill | ' |
Goodwill Goodwill represents the excess of cost over fair value of net assets of businesses acquired. Goodwill is evaluated annually, as of October 1, for impairment or more frequently if an impairment indicator exists. | |
Intangible Assets and Other Long-Lived Assets | ' |
Intangible Assets and Other Long-Lived Assets Intangible assets are amortized over the expected useful life of the asset. Amortization expense directly attributed to the manufacturing of the Company’s products is included in cost of goods sold. Amortization expense related to non-manufacturing activities is included in selling and administrative and other. The Company evaluates the recoverability of intangible assets and other long-lived assets based on undiscounted projected cash flows, excluding interest and taxes, when factors indicate that impairment may exist. If impairment exists, the asset is written down to fair value. | |
Property, Plant, and Equipment | ' |
Property, Plant and Equipment Property, plant and equipment (“PP&E”) is carried at cost and includes expenditures for new facilities and equipment and those costs which substantially increase the useful lives or capacity of existing PP&E. In general, depreciation is computed using the straight-line method and recorded over the estimated useful life of the asset. Factory machinery and equipment is depreciated over periods ranging from 5 to 25 years with the majority of such assets (principally glass-melting furnaces and forming machines) depreciated over 7 to 15 years. Buildings and building equipment are depreciated over periods ranging from 10 to 50 years. Depreciation expense directly attributed to the manufacturing of the Company’s products is included in cost of goods sold. Depreciation expense related to non-manufacturing activities is included in selling and administrative. Depreciation expense includes the amortization of assets recorded under capital leases. Maintenance and repairs are expensed as incurred. Costs assigned to PP&E of acquired businesses are based on estimated fair values at the date of acquisition. The Company evaluates the recoverability of PP&E based on undiscounted projected cash flows, excluding interest and taxes, when factors indicate that impairment may exist. If impairment exists, the asset is written down to fair value. | |
Derivative Instruments | ' |
Derivative Instruments The Company uses forward exchange contracts, options and commodity futures contracts to manage risks generally associated with foreign exchange rate and commodity market volatility. Derivative financial instruments are included on the balance sheet at fair value. When appropriate, derivative instruments are designated as and are effective as hedges, in accordance with accounting principles generally accepted in the United States. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings. The Company does not enter into derivative financial instruments for trading purposes and is not a party to leveraged derivatives. Cash flows from short-term forward exchange contracts not designated as hedges are classified as a financing activity. Cash flows of commodity futures contracts are classified as operating activities. | |
Fair Value Measurements | ' |
Fair Value Measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Generally accepted accounting principles defines a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |
Level 1: Observable inputs such as quoted prices in active markets; | |
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and | |
Level 3: Unobservable inputs for which there is little or no market data, which requires the Company to develop assumptions. | |
The carrying amounts reported for cash and short-term loans approximate fair value. In addition, carrying amounts approximate fair value for certain long-term debt obligations subject to frequently redetermined interest rates. Fair values for the Company’s significant fixed rate debt obligations are generally based on published market quotations. | |
The Company’s derivative assets and liabilities consist of natural gas forwards and foreign exchange option and forward contracts. The Company uses an income approach to valuing these contracts. Natural gas forward rates and foreign exchange rates are the significant inputs into the valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the Company classifies its derivative assets and liabilities as Level 2 in the hierarchy. The Company also evaluates counterparty risk in determining fair values. | |
Reclassifications | ' |
Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. | |
New Accounting Standards | ' |
New Accounting Standards In July 2013, the Financial Accounting Standards Board issued guidance related to the presentation of unrecognized tax benefits when net operating loss carryforwards or tax credit carryforwards exist. This new guidance is effective for fiscal years, and interim periods, beginning after December 31, 2013. The Company elected to adopt this standard effective December 31, 2013. The adoption of this standard impacted how the Company presents certain of its unrecognized tax benefits on its balance sheet, with no impact to the results of operations or cash flows. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Net sales for the Company's reportable segments | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Europe | $ | 2,787 | $ | 2,717 | $ | 3,052 | |||||||||||||||||
North America | 2,002 | 1,966 | 1,929 | ||||||||||||||||||||
South America | 1,186 | 1,252 | 1,226 | ||||||||||||||||||||
Asia Pacific | 966 | 1,028 | 1,059 | ||||||||||||||||||||
Reportable segment totals | 6,941 | 6,963 | 7,266 | ||||||||||||||||||||
Other | 26 | 37 | 92 | ||||||||||||||||||||
Net sales | $ | 6,967 | $ | 7,000 | $ | 7,358 | |||||||||||||||||
Segment operating profit (loss) for the Company's reportable segments | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Segment operating profit: | |||||||||||||||||||||||
Europe | $ | 305 | $ | 307 | $ | 345 | |||||||||||||||||
North America | 307 | 288 | 222 | ||||||||||||||||||||
South America | 204 | 227 | 250 | ||||||||||||||||||||
Asia Pacific | 131 | 113 | 83 | ||||||||||||||||||||
Reportable segment totals | 947 | 935 | 900 | ||||||||||||||||||||
Items excluded from segment operating profit: | |||||||||||||||||||||||
Retained corporate costs and other | (119 | ) | (106 | ) | (75 | ) | |||||||||||||||||
Restructuring, asset impairment and related charges | (119 | ) | (168 | ) | (112 | ) | |||||||||||||||||
Charge for goodwill impairment | (641 | ) | |||||||||||||||||||||
Gain on China land compensation | 61 | ||||||||||||||||||||||
Interest income | 10 | 9 | 11 | ||||||||||||||||||||
Interest expense | (239 | ) | (248 | ) | (314 | ) | |||||||||||||||||
Earnings (loss) from continuing operations before income taxes | $ | 480 | $ | 483 | $ | (231 | ) | ||||||||||||||||
Assets, equity investments, equity earnings, capital expenditures and depreciation and amortization expense for the Company's reportable segments | ' | ||||||||||||||||||||||
Reportable | Retained | ||||||||||||||||||||||
North | South | Asia | Segment | Corp Costs | Consolidated | ||||||||||||||||||
Europe | America | America | Pacific | Totals | and Other | Totals | |||||||||||||||||
Total assets: | |||||||||||||||||||||||
2013 | $ | 3,509 | $ | 1,995 | $ | 1,467 | $ | 1,150 | $ | 8,121 | $ | 298 | $ | 8,419 | |||||||||
2012 | 3,362 | 1,994 | 1,655 | 1,349 | 8,360 | 238 | 8,598 | ||||||||||||||||
2011 | 3,588 | 2,020 | 1,682 | 1,379 | 8,669 | 306 | 8,975 | ||||||||||||||||
Equity investments: | |||||||||||||||||||||||
2013 | $ | 84 | $ | 25 | $ | — | $ | 155 | $ | 264 | $ | 51 | $ | 315 | |||||||||
2012 | 63 | 25 | 165 | 253 | 41 | 294 | |||||||||||||||||
2011 | 59 | 27 | 181 | 267 | 48 | 315 | |||||||||||||||||
Equity earnings: | |||||||||||||||||||||||
2013 | $ | 17 | $ | 16 | $ | — | $ | 10 | $ | 43 | $ | 24 | $ | 67 | |||||||||
2012 | 15 | 16 | 5 | 36 | 28 | 64 | |||||||||||||||||
2011 | 21 | 9 | 3 | 33 | 33 | 66 | |||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
2013 | $ | 130 | $ | 100 | $ | 80 | $ | 36 | $ | 346 | $ | 15 | $ | 361 | |||||||||
2012 | 87 | 68 | 75 | 49 | 279 | 11 | 290 | ||||||||||||||||
2011 | 127 | 60 | 50 | 37 | 274 | 11 | 285 | ||||||||||||||||
Depreciation and amortization expense: | |||||||||||||||||||||||
2013 | $ | 139 | $ | 110 | $ | 72 | $ | 62 | $ | 383 | $ | 14 | $ | 397 | |||||||||
2012 | 150 | 107 | 70 | 70 | 397 | 15 | 412 | ||||||||||||||||
2011 | 164 | 96 | 73 | 80 | 413 | 9 | 422 | ||||||||||||||||
Schedule of segment information by geographic segment | ' | ||||||||||||||||||||||
The Company’s net property, plant and equipment by geographic segment are as follows: | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||||||||
2013 | $ | 686 | $ | 1,946 | $ | 2,632 | |||||||||||||||||
2012 | 663 | 2,106 | 2,769 | ||||||||||||||||||||
2011 | 667 | 2,210 | 2,877 | ||||||||||||||||||||
The Company’s net sales by geographic segment are as follows: | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||||||||
2013 | $ | 1,809 | $ | 5,158 | $ | 6,967 | |||||||||||||||||
2012 | 1,780 | 5,220 | 7,000 | ||||||||||||||||||||
2011 | 1,776 | 5,582 | 7,358 | ||||||||||||||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables | ' | |||||||
Schedule of receivables | ' | |||||||
2013 | 2012 | |||||||
Trade accounts receivable | $ | 757 | $ | 827 | ||||
Less: allowances for doubtful accounts and discounts | 39 | 41 | ||||||
Net trade receivables | 718 | 786 | ||||||
Other receivables | 225 | 182 | ||||||
$ | 943 | $ | 968 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Major classes of inventory | ' | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 958 | $ | 957 | ||||
Raw materials | 113 | 137 | ||||||
Operating supplies | 46 | 45 | ||||||
$ | 1,117 | $ | 1,139 |
Equity_Investments_Tables
Equity Investments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity Investments | ' | ||||||||||
Equity in earnings | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
For the year: | |||||||||||
Equity in earnings: | |||||||||||
Non-U.S. | $ | 27 | $ | 20 | $ | 24 | |||||
U.S. | 40 | 44 | 42 | ||||||||
Total | $ | 67 | $ | 64 | $ | 66 | |||||
Dividends received | $ | 67 | $ | 50 | $ | 50 | |||||
Summary of balance sheet information of equity investments | ' | ||||||||||
2013 | 2012 | ||||||||||
At end of year: | |||||||||||
Current assets | $ | 419 | $ | 327 | |||||||
Non-current assets | 528 | 496 | |||||||||
Total assets | 947 | 823 | |||||||||
Current liabilities | 224 | 195 | |||||||||
Other liabilities and deferred items | 193 | 158 | |||||||||
Total liabilities and deferred items | 417 | 353 | |||||||||
Net assets | $ | 530 | $ | 470 | |||||||
Summary of income statement information of equity investments | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
For the year: | |||||||||||
Net sales | $ | 699 | $ | 658 | $ | 689 | |||||
Gross profit | $ | 185 | $ | 191 | $ | 215 | |||||
Net earnings | $ | 149 | $ | 143 | $ | 174 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill | ' | |||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||||||||||
North | South | Asia | ||||||||||||||||||
Europe | America | America | Pacific | Other | Total | |||||||||||||||
Balance as of January 1, 2011 | $ | 1,009 | $ | 743 | $ | 387 | $ | 677 | $ | 5 | $ | 2,821 | ||||||||
Acquisitions | 8 | 8 | ||||||||||||||||||
Impairment charge | (641 | ) | (641 | ) | ||||||||||||||||
Translation effects | (34 | ) | (3 | ) | (33 | ) | (36 | ) | (106 | ) | ||||||||||
Balance as of December 31, 2011 | 983 | 740 | 354 | — | 5 | 2,082 | ||||||||||||||
Translation effects | 23 | 3 | (29 | ) | (3 | ) | ||||||||||||||
Balance as of December 31, 2012 | 1,006 | 743 | 325 | — | 5 | 2,079 | ||||||||||||||
Translation effects | 38 | (9 | ) | (49 | ) | (20 | ) | |||||||||||||
Balance as of December 31, 2013 | $ | 1,044 | $ | 734 | $ | 276 | $ | — | $ | 5 | $ | 2,059 |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets | ' | |||||||
Schedule of other assets | ' | |||||||
2013 | 2012 | |||||||
Deferred tax assets | $ | 237 | $ | 284 | ||||
Capitalized software | 114 | 115 | ||||||
Deferred returnable packaging costs | 124 | 96 | ||||||
Non-income tax receivable | 70 | 20 | ||||||
Deferred finance fees | 33 | 40 | ||||||
Intangibles | 23 | 29 | ||||||
Other | 78 | 91 | ||||||
$ | 679 | $ | 675 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Effect of commodity futures contracts designated as cash flow hedges on the results of operations | ' | |||||||||||||||||
Amount of Loss | ||||||||||||||||||
Amount of Loss | Reclassified from | |||||||||||||||||
Recognized in OCI on | Accumulated OCI into Income | |||||||||||||||||
Commodity Futures Contracts | (reported in cost of goods sold) | |||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
$ | 1 | $ | (3 | ) | $ | (10 | ) | $ | (1 | ) | $ | (8 | ) | $ | (7 | ) | ||
Effect of the forward exchange contracts not designated as hedging instruments on the results of operations | ' | |||||||||||||||||
Amount of Gain (Loss) | ||||||||||||||||||
Location of Gain (Loss) | Recognized in Income on | |||||||||||||||||
Recognized in Income on | Forward Exchange Contracts | |||||||||||||||||
Forward Exchange Contracts | 2013 | 2012 | 2011 | |||||||||||||||
Other expense | $ | (28 | ) | $ | 6 | $ | (11 | ) | ||||||||||
Balance Sheet Classification of derivative instruments | ' | |||||||||||||||||
Fair Value | ||||||||||||||||||
Balance | 2013 | 2012 | ||||||||||||||||
Sheet | ||||||||||||||||||
Location | ||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Commodity futures contracts | c | $ | 1 | $ | — | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | a | 3 | 4 | |||||||||||||||
Total asset derivatives | $ | 4 | $ | 4 | ||||||||||||||
Liability Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Commodity futures contracts | c | $ | — | $ | 1 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | c | 7 | 9 | |||||||||||||||
Total liability derivatives | $ | 7 | $ | 10 |
Restructuring_Accruals_Asset_I1
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities | ' | |||||||||||||
Selected information related to the restructuring accruals | ' | |||||||||||||
European | Asia Pacific | Other | Total | |||||||||||
Asset | Restructuring | Restructuring | Restructuring | |||||||||||
Optimization | Actions | |||||||||||||
Balance at January 1, 2012 | 12 | 17 | 74 | 103 | ||||||||||
2012 charges | 86 | 47 | 35 | 168 | ||||||||||
Write-down of assets to net realizable value | (30 | ) | (22 | ) | (16 | ) | (68 | ) | ||||||
Net cash paid, principally severance and related benefits | (16 | ) | (25 | ) | (25 | ) | (66 | ) | ||||||
Pension charges transferred to other accounts | (11 | ) | (4 | ) | (15 | ) | ||||||||
Other, including foreign exchange translation | 1 | 1 | ||||||||||||
Balance at December 31, 2012 | 53 | 6 | 64 | 123 | ||||||||||
2013 charges | 16 | 49 | 32 | 97 | ||||||||||
Write-down of assets to net realizable value | (3 | ) | (11 | ) | (2 | ) | (16 | ) | ||||||
Net cash paid, principally severance and related benefits | (37 | ) | (16 | ) | (25 | ) | (78 | ) | ||||||
Pension charges transferred to other accounts | (6 | ) | (6 | ) | ||||||||||
Other, including foreign exchange translation | 1 | (2 | ) | (5 | ) | (6 | ) | |||||||
Balance at December 31, 2013 | $ | 30 | $ | 20 | $ | 64 | $ | 114 | ||||||
Pension_Benefit_Plans_and_Othe1
Pension Benefit Plans and Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Pension Benefit Plans | ' | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | |||||||||||||||||||||||||
Changes in the benefit obligations | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Obligations at beginning of year | $ | 2,647 | $ | 2,547 | $ | 1,911 | $ | 1,553 | ||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||
Service cost | 27 | 27 | 33 | 26 | ||||||||||||||||||||||
Interest cost | 106 | 114 | 72 | 77 | ||||||||||||||||||||||
Actuarial (gain) loss, including the effect of change in discount rates | (234 | ) | 170 | (1 | ) | 293 | ||||||||||||||||||||
Curtailment and plan amendment | (52 | ) | ||||||||||||||||||||||||
Special termination | 8 | |||||||||||||||||||||||||
Participant contributions | 7 | 7 | ||||||||||||||||||||||||
Benefit payments | (279 | ) | (220 | ) | (101 | ) | (101 | ) | ||||||||||||||||||
Other | 9 | (4 | ) | |||||||||||||||||||||||
Foreign currency translation | 1 | 56 | ||||||||||||||||||||||||
Net change in benefit obligations | (372 | ) | 100 | (45 | ) | 358 | ||||||||||||||||||||
Obligations at end of year | $ | 2,275 | $ | 2,647 | $ | 1,866 | $ | 1,911 | ||||||||||||||||||
Changes in the fair value of the pension plans' assets | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Fair value at beginning of year | $ | 2,175 | $ | 2,011 | $ | 1,527 | $ | 1,325 | ||||||||||||||||||
Change in fair value: | ||||||||||||||||||||||||||
Actual gain (loss) on plan assets | 365 | 275 | 61 | 118 | ||||||||||||||||||||||
Benefit payments | (279 | ) | (220 | ) | (101 | ) | (101 | ) | ||||||||||||||||||
Employer contributions | 12 | 109 | 92 | 110 | ||||||||||||||||||||||
Participant contributions | 7 | 7 | ||||||||||||||||||||||||
Foreign currency translation | (5 | ) | 43 | |||||||||||||||||||||||
Other | (3 | ) | 25 | |||||||||||||||||||||||
Net change in fair value of assets | 98 | 164 | 51 | 202 | ||||||||||||||||||||||
Fair value at end of year | $ | 2,273 | $ | 2,175 | $ | 1,578 | $ | 1,527 | ||||||||||||||||||
Funded status | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Plan assets at fair value | $ | 2,273 | $ | 2,175 | $ | 1,578 | $ | 1,527 | ||||||||||||||||||
Projected benefit obligations | 2,275 | 2,647 | 1,866 | 1,911 | ||||||||||||||||||||||
Plan assets less than projected benefit obligations | (2 | ) | (472 | ) | (288 | ) | (384 | ) | ||||||||||||||||||
Items not yet recognized in pension expense: | ||||||||||||||||||||||||||
Actuarial loss | 935 | 1,461 | 488 | 534 | ||||||||||||||||||||||
Prior service cost (credit) | 2 | 2 | (25 | ) | (9 | ) | ||||||||||||||||||||
937 | 1,463 | 463 | 525 | |||||||||||||||||||||||
Net amount recognized | $ | 935 | $ | 991 | $ | 175 | $ | 141 | ||||||||||||||||||
Net amount recognized included in the Consolidated Balance Sheets | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Pension assets | $ | 46 | $ | — | $ | 22 | $ | — | ||||||||||||||||||
Current pension liability, included with Other accrued liabilities | (2 | ) | (3 | ) | (6 | ) | (7 | ) | ||||||||||||||||||
Pension benefits | (46 | ) | (469 | ) | (304 | ) | (377 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | 937 | 1,463 | 463 | 525 | ||||||||||||||||||||||
Net amount recognized | $ | 935 | $ | 991 | $ | 175 | $ | 141 | ||||||||||||||||||
Changes in plan assets and/or benefit obligations recognized in accumulated other comprehensive income | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current year actuarial (gain) loss | $ | (416 | ) | $ | 79 | $ | 28 | $ | 239 | |||||||||||||||||
Amortization of actuarial loss | (110 | ) | (96 | ) | (28 | ) | (22 | ) | ||||||||||||||||||
Amortization of prior service credit | 1 | |||||||||||||||||||||||||
Curtailment and plan amendment | (52 | ) | ||||||||||||||||||||||||
Settlement | (6 | ) | (11 | ) | ||||||||||||||||||||||
(526 | ) | (17 | ) | (57 | ) | 206 | ||||||||||||||||||||
Translation | (5 | ) | 17 | |||||||||||||||||||||||
$ | (526 | ) | $ | (17 | ) | $ | (62 | ) | $ | 223 | ||||||||||||||||
Components of net periodic pension cost (income) and net periodic postretirement (benefit) cost | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 27 | $ | 27 | $ | 25 | $ | 33 | $ | 26 | $ | 24 | ||||||||||||||
Interest cost | 106 | 114 | 125 | 72 | 77 | 83 | ||||||||||||||||||||
Expected asset return | (183 | ) | (183 | ) | (186 | ) | (91 | ) | (87 | ) | (86 | ) | ||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | 110 | 96 | 83 | 28 | 22 | 24 | ||||||||||||||||||||
Prior service credit | (1 | ) | (1 | ) | ||||||||||||||||||||||
Net amortization | 110 | 96 | 83 | 27 | 22 | 23 | ||||||||||||||||||||
Net expense | $ | 60 | $ | 54 | $ | 47 | $ | 41 | $ | 38 | $ | 44 | ||||||||||||||
Amounts expected to be amortized from accumulated other comprehensive income during 2014 | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | $ | 74 | $ | 22 | ||||||||||||||||||||||
Prior service cost | (3 | ) | ||||||||||||||||||||||||
Net amortization | $ | 74 | $ | 19 | ||||||||||||||||||||||
Information for plans with projected and accumulated benefit obligations in excess of the fair value of plan assets | ' | |||||||||||||||||||||||||
Projected Benefit Obligation Exceeds | Accumulated Benefit Obligation Exceeds | |||||||||||||||||||||||||
the Fair Value of Plan Assets | the Fair Value of Plan Assets | |||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Projected benefit obligations | $ | 674 | $ | 2,647 | $ | 1,588 | $ | 1,911 | $ | 674 | $ | 2,647 | $ | 1,588 | $ | 1,172 | ||||||||||
Accumulated benefit obligation | 646 | 2,569 | 1,537 | 1,729 | 646 | 2,569 | 1,537 | 1,090 | ||||||||||||||||||
Fair value of plan assets | 626 | 2,175 | 1,278 | 1,527 | 626 | 2,175 | 1,278 | 858 | ||||||||||||||||||
Weighted average assumptions used to determine benefit obligations and net periodic pension costs for pension plans, and accumulated postretirement benefit obligation and net postretirement benefit cost for postretirement plans | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Discount rate | 4.81 | % | 4.11 | % | 4.14 | % | 3.89 | % | ||||||||||||||||||
Rate of compensation increase | 2.97 | % | 2.97 | % | 3.31 | % | 3.08 | % | ||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Discount rate | 4.11 | % | 4.59 | % | 5.24 | % | 3.89 | % | 4.75 | % | 5.28 | % | ||||||||||||||
Rate of compensation increase | 2.97 | % | 3.14 | % | 4.5 | % | 3.08 | % | 3.23 | % | 3.49 | % | ||||||||||||||
Expected long-term rate of return on assets | 8 | % | 8 | % | 8 | % | 6.34 | % | 6.24 | % | 6.44 | % | ||||||||||||||
Fair values of defined benefit pension plan assets and target allocations | ' | |||||||||||||||||||||||||
2013 | 2012 | Target | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Allocation | ||||||||||||||||||||
Cash and cash equivalents | $ | 39 | $ | 6 | $ | — | $ | 36 | $ | 20 | $ | — | ||||||||||||||
Equity securities | 387 | 210 | 367 | 173 | 45-55% | |||||||||||||||||||||
Debt securities | 752 | 116 | 2 | 714 | 113 | 3 | 40-50% | |||||||||||||||||||
Real estate | 6 | 15 | 0-10% | |||||||||||||||||||||||
Other | 13 | 47 | 18 | 68 | 0-10% | |||||||||||||||||||||
Total assets at fair value | $ | 1,191 | $ | 379 | $ | 8 | $ | 1,135 | $ | 374 | $ | 18 | ||||||||||||||
Reconciliation of pension plan assets recorded at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Beginning balance | $ | 18 | $ | 16 | ||||||||||||||||||||||
Net increase (decrease) | (10 | ) | 2 | |||||||||||||||||||||||
Ending balance | $ | 8 | $ | 18 | ||||||||||||||||||||||
Estimated future benefit payments, reflecting expected future service, as appropriate, expected to be paid | ' | |||||||||||||||||||||||||
Year(s) | U.S. | Non-U.S. | ||||||||||||||||||||||||
2014 | $ | 181 | $ | 82 | ||||||||||||||||||||||
2015 | 172 | 85 | ||||||||||||||||||||||||
2016 | 174 | 86 | ||||||||||||||||||||||||
2017 | 167 | 87 | ||||||||||||||||||||||||
2018 | 164 | 90 | ||||||||||||||||||||||||
2019 - 2023 | 794 | 487 | ||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | ' | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | |||||||||||||||||||||||||
Changes in the benefit obligations | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Obligations at beginning of year | $ | 181 | $ | 194 | $ | 102 | $ | 95 | ||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||
Service cost | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Interest cost | 5 | 8 | 4 | 4 | ||||||||||||||||||||||
Actuarial (gain) loss, including the effect of changing discount rates | 1 | (6 | ) | (7 | ) | 3 | ||||||||||||||||||||
Benefit payments | (15 | ) | (16 | ) | (4 | ) | (3 | ) | ||||||||||||||||||
Curtailment | (62 | ) | ||||||||||||||||||||||||
Foreign currency translation | (6 | ) | 2 | |||||||||||||||||||||||
Net change in benefit obligations | (70 | ) | (13 | ) | (12 | ) | 7 | |||||||||||||||||||
Obligations at end of year | $ | 111 | $ | 181 | $ | 90 | $ | 102 | ||||||||||||||||||
Funded status | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Postretirement benefit obligations | $ | (111 | ) | $ | (181 | ) | $ | (90 | ) | $ | (102 | ) | ||||||||||||||
Items not yet recognized in net postretirement benefit cost: | ||||||||||||||||||||||||||
Actuarial loss | 30 | 36 | (2 | ) | 5 | |||||||||||||||||||||
Prior service credit | (54 | ) | (8 | ) | ||||||||||||||||||||||
(24 | ) | 28 | (2 | ) | 5 | |||||||||||||||||||||
Net amount recognized | $ | (135 | ) | $ | (153 | ) | $ | (92 | ) | $ | (97 | ) | ||||||||||||||
Net amount recognized included in the Consolidated Balance Sheets | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current nonpension postretirement benefit, included with Other accrued liabilities | $ | (10 | ) | $ | (15 | ) | $ | (4 | ) | $ | (4 | ) | ||||||||||||||
Nonpension postretirement benefits | (101 | ) | (166 | ) | (86 | ) | (98 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (24 | ) | 28 | (2 | ) | 5 | ||||||||||||||||||||
Net amount recognized | $ | (135 | ) | $ | (153 | ) | $ | (92 | ) | $ | (97 | ) | ||||||||||||||
Changes in plan assets and/or benefit obligations recognized in accumulated other comprehensive income | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Current year actuarial (gain) loss | $ | 1 | $ | (6 | ) | $ | (7 | ) | $ | 3 | ||||||||||||||||
Curtailment | (57 | ) | ||||||||||||||||||||||||
Amortization of actuarial loss | (3 | ) | (5 | ) | ||||||||||||||||||||||
Amortization of prior service credit | 7 | 3 | ||||||||||||||||||||||||
Other adjustments | (2 | ) | ||||||||||||||||||||||||
$ | (52 | ) | $ | (10 | ) | $ | (7 | ) | $ | 3 | ||||||||||||||||
Components of net periodic pension cost (income) and net periodic postretirement (benefit) cost | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||
Interest cost | 5 | 8 | 10 | 4 | 4 | 4 | ||||||||||||||||||||
Curtailment gain | (5 | ) | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | 3 | 5 | 5 | |||||||||||||||||||||||
Prior service credit | (7 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||
Net amortization | (4 | ) | 2 | 2 | — | — | — | |||||||||||||||||||
Net postretirement benefit cost | $ | (3 | ) | $ | 11 | $ | 13 | $ | 5 | $ | 5 | $ | 5 | |||||||||||||
Amounts expected to be amortized from accumulated other comprehensive income during 2014 | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Actuarial loss | $ | 2 | $ | — | ||||||||||||||||||||||
Prior service credit | (8 | ) | ||||||||||||||||||||||||
Net amortization | $ | (6 | ) | $ | — | |||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations and net periodic pension costs for pension plans, and accumulated postretirement benefit obligation and net postretirement benefit cost for postretirement plans | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Accumulated post retirement benefit obligation | 4.63 | % | 4.04 | % | 4.47 | % | 4.47 | % | 3.89 | % | 4.13 | % | ||||||||||||||
Net postretirement benefit cost | 4.04 | % | 4.47 | % | 5.09 | % | 3.89 | % | 4.13 | % | 5.02 | % | ||||||||||||||
Weighted average assumed health care cost trend rates | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 8 | % | 5 | % | 6 | % | ||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2024 | 2019 | 2014 | 2014 | ||||||||||||||||||||||
Effects of one-percentage-point change in assumed health care cost trend rates on amount reported for the postretirement benefit plans | ' | |||||||||||||||||||||||||
U.S. | Non-U.S. | |||||||||||||||||||||||||
1-Percentage-Point | 1-Percentage-Point | |||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | $ | 1 | $ | (1 | ) | |||||||||||||||||
Effect on accumulated postretirement benefit obligations | 4 | (4 | ) | 15 | (12 | ) | ||||||||||||||||||||
Estimated future benefit payments, reflecting expected future service, as appropriate, expected to be paid | ' | |||||||||||||||||||||||||
Year(s) | U.S. | Non-U.S. | ||||||||||||||||||||||||
2014 | $ | 10 | $ | 4 | ||||||||||||||||||||||
2015 | 10 | 4 | ||||||||||||||||||||||||
2016 | 10 | 4 | ||||||||||||||||||||||||
2017 | 9 | 5 | ||||||||||||||||||||||||
2018 | 9 | 5 | ||||||||||||||||||||||||
2019 - 2023 | 39 | 25 | ||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Provision for income taxes calculated based on components of earnings (loss) before income taxes | ' | ||||||||||
Continuing operations | 2013 | 2012 | 2011 | ||||||||
U.S. | $ | 231 | $ | 187 | $ | 188 | |||||
Non-U.S. | 249 | 296 | (419 | ) | |||||||
$ | 480 | $ | 483 | $ | (231 | ) | |||||
Discontinued operations | 2013 | 2012 | 2011 | ||||||||
U.S. | $ | (8 | ) | $ | — | $ | — | ||||
Non-U.S. | (10 | ) | (5 | ) | (2 | ) | |||||
$ | (18 | ) | $ | (5 | ) | $ | (2 | ) | |||
Provision (benefit) for income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
U.S. | $ | 7 | $ | (4 | ) | $ | (12 | ) | |||
Non-U.S. | 116 | 117 | 139 | ||||||||
123 | 113 | 127 | |||||||||
Deferred: | |||||||||||
U.S. | 8 | 11 | |||||||||
Non-U.S. | (3 | ) | (13 | ) | (53 | ) | |||||
(3 | ) | (5 | ) | (42 | ) | ||||||
Total: | |||||||||||
U.S. | 7 | 4 | (1 | ) | |||||||
Non-U.S. | 113 | 104 | 86 | ||||||||
Total for continuing operations | 120 | 108 | 85 | ||||||||
Total for discontinued operations | (3 | ) | (3 | ) | |||||||
$ | 120 | $ | 105 | $ | 82 | ||||||
Reconciliation of the provision for income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Tax provision on pretax earnings (loss) from continuing operations at statutory U.S. Federal tax rate | $ | 168 | $ | 169 | $ | (81 | ) | ||||
Increase (decrease) in provision for income taxes due to: | |||||||||||
Differences in income taxes on foreign earnings, losses and remittances | (29 | ) | (5 | ) | (13 | ) | |||||
Goodwill impairment | 224 | ||||||||||
U.S. tax consolidation benefit | (51 | ) | (54 | ) | (58 | ) | |||||
Changes in valuation allowance | 37 | (7 | ) | 15 | |||||||
Tax audits and settlements | 1 | (1 | ) | 3 | |||||||
Other items | (6 | ) | 6 | (5 | ) | ||||||
Provision for income taxes | $ | 120 | $ | 108 | $ | 85 | |||||
Significant components of deferred tax assets and liabilities and deferred taxes included in the Consolidated Balance Sheets | ' | ||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued postretirement benefits | $ | 60 | $ | 89 | |||||||
Foreign tax credit | 356 | 354 | |||||||||
Operating and capital loss carryovers | 489 | 486 | |||||||||
Other credit carryovers | 46 | 46 | |||||||||
Accrued liabilities | 89 | 95 | |||||||||
Pension liability | 47 | 237 | |||||||||
Other | 73 | 97 | |||||||||
Total deferred tax assets | 1,160 | 1,404 | |||||||||
Deferred tax liabilities: | |||||||||||
Property, plant, and equipment | 126 | 120 | |||||||||
Exchangeable notes | 10 | 19 | |||||||||
Intangibles | 27 | 13 | |||||||||
Other | 59 | 83 | |||||||||
Total deferred tax liabilities | 222 | 235 | |||||||||
Valuation allowance | (833 | ) | (1,010 | ) | |||||||
Net deferred taxes | $ | 105 | $ | 159 | |||||||
2013 | 2012 | ||||||||||
Prepaid expenses | $ | 64 | $ | 62 | |||||||
Other assets | 237 | 284 | |||||||||
U.S. and foreign income taxes | (5 | ) | |||||||||
Deferred taxes | (196 | ) | (182 | ) | |||||||
Net deferred taxes | $ | 105 | $ | 159 | |||||||
Reconciliation of the gross unrecognized tax benefits | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at January 1 | $ | 97 | $ | 125 | $ | 143 | |||||
Additions and reductions for tax positions of prior years | (3 | ) | 8 | (15 | ) | ||||||
Additions based on tax positions related to the current year | 9 | 7 | 30 | ||||||||
Reductions due to the lapse of the applicable statute of limitations | (2 | ) | (21 | ) | (8 | ) | |||||
Reductions due to settlements | (26 | ) | (18 | ) | |||||||
Foreign currency translation | (1 | ) | 4 | (7 | ) | ||||||
Balance at December 31 | $ | 100 | $ | 97 | $ | 125 | |||||
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate | $ | 92 | $ | 89 | $ | 114 | |||||
Accrued interest and penalties at December 31 | $ | 35 | $ | 33 | $ | 49 | |||||
Interest and penalties included in tax expense for the years ended December 31 | $ | 1 | $ | (6 | ) | $ | 18 |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Debt | ' | |||||||||
Long-term Debt | ' | |||||||||
2013 | 2012 | |||||||||
Secured Credit Agreement: | ||||||||||
Revolving Credit Facility: | ||||||||||
Revolving Loans | $ | — | $ | — | ||||||
Term Loans: | ||||||||||
Term Loan A | 53 | |||||||||
Term Loan B | 405 | 525 | ||||||||
Term Loan C (81 million CAD at December 31, 2013) | 76 | 102 | ||||||||
Term Loan D (€85 million at December 31, 2013) | 117 | 163 | ||||||||
Senior Notes: | ||||||||||
3.00%, Exchangeable, due 2015 | 617 | 642 | ||||||||
7.375%, due 2016 | 593 | 591 | ||||||||
6.875%, due 2017 (€300 million) | 396 | |||||||||
6.75%, due 2020 (€500 million) | 690 | 660 | ||||||||
4.875%, due 2021 (€330 million) | 455 | |||||||||
Payable to OI Inc. | 250 | 250 | ||||||||
Other | 58 | 95 | ||||||||
Total long-term debt | 3,261 | 3,477 | ||||||||
Less amounts due within one year | 16 | 23 | ||||||||
Long-term debt | $ | 3,245 | $ | 3,454 | ||||||
Carrying values of the liability and equity components | ' | |||||||||
2013 | 2012 | |||||||||
Principal amount of exchangeable notes | $ | 644 | $ | 690 | ||||||
Unamortized discount on exchangeable notes | 27 | 48 | ||||||||
Net carrying amount of liability component | $ | 617 | $ | 642 | ||||||
Carrying amount of equity component | $ | 92 | $ | 93 | ||||||
Amount of interest expense recognized on the 2015 Exchangeable Notes | ' | |||||||||
2013 | 2012 | |||||||||
Contractual coupon interest | $ | 20 | $ | 21 | ||||||
Amortization of discount on exchangeable notes | 18 | 18 | ||||||||
Total interest expense | $ | 38 | $ | 39 | ||||||
Information related to accounts receivable securitization program | ' | |||||||||
2013 | 2012 | |||||||||
Balance (included in short-term loans) | $ | 276 | $ | 264 | ||||||
Weighted average interest rate | 1.41 | % | 1.33 | % | ||||||
Fair values at December 31, 2013 of the entity's significant fixed rate debt obligations | ' | |||||||||
Principal Amount | Indicated | Fair Value | ||||||||
Market | ||||||||||
Price | ||||||||||
Senior Notes: | ||||||||||
3.00%, Exchangeable, due 2015 | $ | 644 | 104.71 | $ | 674 | |||||
7.375%, due 2016 | 600 | 112.76 | 677 | |||||||
6.75%, due 2020 (€500 million) | 690 | 116.5 | 804 | |||||||
4.875%, due 2021 (€330 million) | 455 | 105.04 | 478 | |||||||
Contingencies_Tables
Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Contingencies | ' | |||||||
Asbestos filings and the claims pending at the end of each listed year | ' | |||||||
2013 | 2012 | 2011 | ||||||
Pending at beginning of year | 2,600 | 4,600 | 5,900 | |||||
Disposed | 1,700 | 4,400 | 4,500 | |||||
Filed | 1,700 | 2,400 | 3,200 | |||||
Pending at end of year | 2,600 | 2,600 | 4,600 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
Schedule of activity in accumulated other comprehensive income (loss) | ' | |||||||||||||
Net Effect of | Change in | Employee | Total | |||||||||||
Exchange | Certain | Benefit | Accumulated | |||||||||||
Rate | Derivative | Plans | Other | |||||||||||
Fluctuations | Instruments | Comprehensive | ||||||||||||
Loss | ||||||||||||||
Balance on January 1, 2013 | $ | 455 | $ | (7 | ) | $ | (1,913 | ) | $ | (1,465 | ) | |||
Change before reclassifications | (226 | ) | 1 | 503 | 278 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 1 | (a) | 139 | (b) | 140 | |||||||||
Tax effect | (33 | ) | (33 | ) | ||||||||||
Other comprehensive income attributable to the Company | (226 | ) | 2 | 609 | 385 | |||||||||
Balance on December 31, 2013 | $ | 229 | $ | (5 | ) | $ | (1,304 | ) | $ | (1,080 | ) | |||
(a) Amount is included in Cost of goods sold on the Consolidated Results of Operations (see Note 8 for additional information). | ||||||||||||||
(b) Amount is included in the computation of net periodic pension cost and net postretirement benefit cost (see Note 10 for additional information). |
Stock_Options_and_Other_Stock_1
Stock Options and Other Stock Based Compensation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock Options and Other Stock Based Compensation | ' | |||||||||||
Summary of option activity | ' | |||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | |||||||||||
Number of | Exercise | Contractual | Aggregate | |||||||||
Shares | Price | Term | Intrinsic | |||||||||
(thousands) | (per share) | (years) | Value | |||||||||
Options outstanding at January 1, 2013 | 3,735 | $ | 22.65 | |||||||||
Granted | 354 | 26.1 | ||||||||||
Exercised | (1,414 | ) | 17.52 | |||||||||
Forfeited or expired | (254 | ) | 28.9 | |||||||||
Options outstanding at December 31, 2013 | 2,421 | 25.5 | 3.4 | $ | 30 | |||||||
Options vested or expected to vest at December 31, 2013 | 2,354 | $ | 25.48 | 3.4 | $ | 29 | ||||||
Options exercisable at December 31, 2013 | 1,538 | $ | 25.04 | 2.4 | $ | 21 | ||||||
Additional information related to stock options | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average grant-date fair value of options granted (per share) | $ | 12.39 | $ | 10.63 | $ | 13.7 | ||||||
Aggregate intrinsic value of options exercised | $ | 16 | $ | 3 | $ | 4 | ||||||
Aggregate cash received from options exercised | $ | 24 | $ | 4 | $ | 5 | ||||||
Schedule of weighted average assumptions used to estimate the fair value of each option grant on the date of grant using the Black-Scholes option pricing model | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected life of options (years) | 5 | 4.75 | 4.75 | |||||||||
Expected stock price volatility | 55.3 | % | 56.6 | % | 53.2 | % | ||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | 1.7 | % | ||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||
Restricted shares and restricted share units activity | ' | |||||||||||
Weighted | ||||||||||||
Number of | Average | |||||||||||
Restricted | Grant-Date | |||||||||||
Shares | Fair Value | |||||||||||
(thousands) | (per share) | |||||||||||
Nonvested at January 1, 2013 | 465 | $ | 22.34 | |||||||||
Granted | 198 | 26.49 | ||||||||||
Vested | (176 | ) | 21.99 | |||||||||
Forfeited | (30 | ) | 24.34 | |||||||||
Nonvested at December 31, 2013 | 457 | 24.14 | ||||||||||
Awards granted during 2012 | $ | 22.39 | ||||||||||
Awards granted during 2011 | $ | 29.99 | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Total fair value of shares vested | $ | 5 | $ | 5 | $ | 4 | ||||||
Performance vested restricted share unit activity | ' | |||||||||||
Number of Performance | Weighted Average | |||||||||||
Vested Restricted Shares | Grant-Date Fair Value | |||||||||||
Units (thousands) | (per unit) | |||||||||||
Nonvested at January 1, 2013 | 813 | $ | 26.78 | |||||||||
Granted | 336 | 26.1 | ||||||||||
Vested | (110 | ) | 31.12 | |||||||||
Forfeited/Cancelled | (157 | ) | 29.55 | |||||||||
Nonvested at December 31, 2013 | 882 | 25.49 | ||||||||||
Awards granted during 2012 | $ | 22.5 | ||||||||||
Awards granted during 2011 | $ | 29.7 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Decrease (increase) in current assets: | |||||||||||
Receivables | $ | 18 | $ | 213 | $ | (131 | ) | ||||
Inventories | (30 | ) | (74 | ) | (102 | ) | |||||
Prepaid expenses and other | 3 | 19 | 1 | ||||||||
Increase (decrease) in current liabilities: | |||||||||||
Accounts payable | 128 | (53 | ) | 145 | |||||||
Accrued liabilities | 7 | (47 | ) | (13 | ) | ||||||
Salaries and wages | (2 | ) | 29 | (3 | ) | ||||||
U.S. and foreign income taxes | (6 | ) | (14 | ) | |||||||
$ | 124 | $ | 81 | $ | (117 | ) | |||||
Income taxes paid (received) in cash | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. | $ | — | $ | — | $ | 1 | |||||
Non-U.S. | 128 | 132 | 111 | ||||||||
Total income taxes paid in cash | $ | 128 | $ | 132 | $ | 112 |
Financial_Information_for_Subs1
Financial Information for Subsidiary Guarantors and Non-Guarantors (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantors | ' | |||||||||||||||||||
Balance Sheet | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Balance Sheet | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Current assets: | ||||||||||||||||||||
Accounts receivable | $ | — | $ | 68 | $ | — | $ | 875 | $ | — | $ | 943 | ||||||||
Inventories | 203 | 914 | 1,117 | |||||||||||||||||
Other current assets | 20 | 35 | 435 | 490 | ||||||||||||||||
Total current assets | — | 291 | 35 | 2,224 | — | 2,550 | ||||||||||||||
Investments in and advances to subsidiaries | 2,154 | 2,656 | 161 | (4,971 | ) | — | ||||||||||||||
Goodwill | 574 | 8 | 1,477 | 2,059 | ||||||||||||||||
Other non-current assets | 121 | 131 | 926 | 1,178 | ||||||||||||||||
Total other assets | 2,154 | 3,351 | 300 | 2,403 | (4,971 | ) | 3,237 | |||||||||||||
Property, plant and equipment, net | 651 | 38 | 1,943 | 2,632 | ||||||||||||||||
Total assets | $ | 2,154 | $ | 4,293 | $ | 373 | $ | 6,570 | $ | (4,971 | ) | $ | 8,419 | |||||||
Current liabilities : | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 293 | $ | 67 | $ | 1,422 | $ | — | $ | 1,782 | ||||||||
Short-term loans and long-term debt due within one year | 322 | 322 | ||||||||||||||||||
Total current liabilities | — | 293 | 67 | 1,744 | — | 2,104 | ||||||||||||||
Long-term debt | 250 | 1,617 | 12 | 1,366 | 3,245 | |||||||||||||||
Other non-current liabilities | 68 | 136 | 815 | 1,019 | ||||||||||||||||
Investments by and advances from parent | 2,315 | 158 | 2,498 | (4,971 | ) | — | ||||||||||||||
Total share owner’s equity of the Company | 1,904 | 1,904 | ||||||||||||||||||
Noncontrolling interests | 147 | 147 | ||||||||||||||||||
Total liabilities and share owners’ equity | $ | 2,154 | $ | 4,293 | $ | 373 | $ | 6,570 | $ | (4,971 | ) | $ | 8,419 | |||||||
December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Balance Sheet | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Current assets: | ||||||||||||||||||||
Accounts receivable | $ | — | $ | 66 | $ | (15 | ) | $ | 917 | $ | — | $ | 968 | |||||||
Inventories | 212 | 927 | 1,139 | |||||||||||||||||
Other current assets | 9 | 18 | 514 | 541 | ||||||||||||||||
Total current assets | — | 287 | 3 | 2,358 | — | 2,648 | ||||||||||||||
Investments in and advances to subsidiaries | 1,592 | 2,836 | (178 | ) | (4,250 | ) | — | |||||||||||||
Goodwill | 555 | 8 | 1,516 | 2,079 | ||||||||||||||||
Other non-current assets | 127 | 87 | 888 | 1,102 | ||||||||||||||||
Total other assets | 1,592 | 3,518 | (83 | ) | 2,404 | (4,250 | ) | 3,181 | ||||||||||||
Property, plant and equipment, net | 626 | 42 | 2,101 | 2,769 | ||||||||||||||||
Total assets | $ | 1,592 | $ | 4,431 | $ | (38 | ) | $ | 6,863 | $ | (4,250 | ) | $ | 8,598 | ||||||
Current liabilities : | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 273 | $ | 60 | $ | 1,355 | $ | — | $ | 1,688 | ||||||||
Short-term loans and long-term debt due within one year | 1 | 318 | 319 | |||||||||||||||||
Total current liabilities | — | 273 | 61 | 1,673 | — | 2,007 | ||||||||||||||
Long-term debt | 250 | 1,759 | 13 | 1,432 | 3,454 | |||||||||||||||
Other non-current liabilities | 31 | 665 | 925 | 1,621 | ||||||||||||||||
Investments by and advances from parent | 2,368 | (777 | ) | 2,659 | (4,250 | ) | — | |||||||||||||
Total share owner’s equity of the Company | 1,342 | 1,342 | ||||||||||||||||||
Noncontrolling interests | 174 | 174 | ||||||||||||||||||
Total liabilities and share owners’ equity | $ | 1,592 | $ | 4,431 | $ | (38 | ) | $ | 6,863 | $ | (4,250 | ) | $ | 8,598 | ||||||
Results of Operations | ' | |||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,883 | $ | 3 | $ | 5,081 | $ | — | $ | 6,967 | ||||||||
Cost of goods sold | (1,555 | ) | (18 | ) | (4,063 | ) | (5,636 | ) | ||||||||||||
Gross profit | — | 328 | (15 | ) | 1,018 | — | 1,331 | |||||||||||||
Research, engineering, selling, administrative and other | (112 | ) | (83 | ) | (533 | ) | (728 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Other interest expense | (20 | ) | (107 | ) | (1 | ) | (111 | ) | (239 | ) | ||||||||||
Interest income | 10 | 10 | ||||||||||||||||||
Equity earnings from subsidiaries | 337 | 154 | (491 | ) | — | |||||||||||||||
Other equity earnings | 16 | 51 | 67 | |||||||||||||||||
Other revenue (expense) | 194 | 6 | (161 | ) | 39 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | 337 | 453 | (93 | ) | 274 | (491 | ) | 480 | ||||||||||||
Provision for income taxes | (7 | ) | (113 | ) | (120 | ) | ||||||||||||||
Earnings (loss) from continuing operations | 337 | 446 | (93 | ) | 161 | (491 | ) | 360 | ||||||||||||
Loss from discontinued operations | (8 | ) | (10 | ) | (18 | ) | ||||||||||||||
Net earnings (loss) | 329 | 446 | (93 | ) | 151 | (491 | ) | 342 | ||||||||||||
Net earnings attributable to noncontrolling interests | (13 | ) | (13 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | 329 | $ | 446 | $ | (93 | ) | $ | 138 | $ | (491 | ) | $ | 329 | ||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | 329 | $ | 446 | $ | (93 | ) | $ | 151 | $ | (491 | ) | $ | 342 | ||||||
Other comprehensive income (loss) | 385 | 2 | (201 | ) | 193 | 379 | ||||||||||||||
Total comprehensive income (loss) | 714 | 448 | (93 | ) | (50 | ) | (298 | ) | 721 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (7 | ) | (7 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 714 | $ | 448 | $ | (93 | ) | $ | (57 | ) | $ | (298 | ) | $ | 714 | |||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,868 | $ | 2 | $ | 5,130 | $ | — | $ | 7,000 | ||||||||
Cost of goods sold | (1,530 | ) | (13 | ) | (4,083 | ) | (5,626 | ) | ||||||||||||
Gross profit | — | 338 | (11 | ) | 1,047 | — | 1,374 | |||||||||||||
Research, engineering, selling, administrative and other | (165 | ) | (83 | ) | (504 | ) | (752 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Other interest expense | (20 | ) | (107 | ) | (1 | ) | (120 | ) | (248 | ) | ||||||||||
Interest income | 9 | 9 | ||||||||||||||||||
Equity earnings from subsidiaries | 339 | 193 | (532 | ) | — | |||||||||||||||
Other equity earnings | 15 | 49 | 64 | |||||||||||||||||
Other revenue | 181 | 6 | (151 | ) | 36 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | 339 | 435 | (89 | ) | 330 | (532 | ) | 483 | ||||||||||||
Provision for income taxes | (10 | ) | 5 | (103 | ) | (108 | ) | |||||||||||||
Earnings (loss) from continuing operations | 339 | 425 | (84 | ) | 227 | (532 | ) | 375 | ||||||||||||
Loss from discontinued operations | (2 | ) | (2 | ) | ||||||||||||||||
Net earnings (loss) | 339 | 425 | (84 | ) | 225 | (532 | ) | 373 | ||||||||||||
Net earnings attributable to noncontrolling interests | (34 | ) | (34 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | 339 | $ | 425 | $ | (84 | ) | $ | 191 | $ | (532 | ) | $ | 339 | ||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | 339 | $ | 425 | $ | (84 | ) | $ | 225 | $ | (532 | ) | $ | 373 | ||||||
Other comprehensive income (loss) | (185 | ) | 5 | (207 | ) | 210 | (177 | ) | ||||||||||||
Total comprehensive income (loss) | 154 | 430 | (84 | ) | 18 | (322 | ) | 196 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (42 | ) | (42 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 154 | $ | 430 | $ | (84 | ) | $ | (24 | ) | $ | (322 | ) | $ | 154 | |||||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Results of Operations | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net sales | $ | — | $ | 1,837 | $ | 3 | $ | 5,521 | $ | (3 | ) | $ | 7,358 | |||||||
Cost of goods sold | (1,549 | ) | (5 | ) | (4,419 | ) | 4 | (5,969 | ) | |||||||||||
Gross profit | — | 288 | (2 | ) | 1,102 | 1 | 1,389 | |||||||||||||
Research, engineering, selling, administrative and other | (120 | ) | (77 | ) | (1,213 | ) | (1,410 | ) | ||||||||||||
Net intercompany interest | 20 | (20 | ) | — | ||||||||||||||||
Interest expense | (20 | ) | (145 | ) | (1 | ) | (148 | ) | (314 | ) | ||||||||||
Interest income | 11 | 11 | ||||||||||||||||||
Equity earnings from subsidiaries | (335 | ) | (474 | ) | 809 | — | ||||||||||||||
Other equity earnings | 9 | 57 | 66 | |||||||||||||||||
Other revenue | 216 | 1 | (190 | ) | — | 27 | ||||||||||||||
Earnings (loss) from continuing operations before income taxes | (335 | ) | (246 | ) | (79 | ) | (381 | ) | 810 | (231 | ) | |||||||||
Provision for income taxes | (1 | ) | 2 | (86 | ) | (85 | ) | |||||||||||||
Earnings (loss) from continuing operations | (335 | ) | (247 | ) | (77 | ) | (467 | ) | 810 | (316 | ) | |||||||||
Earnings (loss) from discontinued operations | 3 | (2 | ) | 1 | ||||||||||||||||
Net earnings (loss) | (335 | ) | (247 | ) | (74 | ) | (469 | ) | 810 | (315 | ) | |||||||||
Net earnings attributable to noncontrolling interests | (20 | ) | (20 | ) | ||||||||||||||||
Net earnings (loss) attributable to the Company | $ | (335 | ) | $ | (247 | ) | $ | (74 | ) | $ | (489 | ) | $ | 810 | $ | (335 | ) | |||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Comprehensive Income | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net earnings (loss) | $ | (335 | ) | $ | (247 | ) | $ | (74 | ) | $ | (469 | ) | $ | 810 | $ | (315 | ) | |||
Other comprehensive income | (415 | ) | (28 | ) | (136 | ) | 164 | (415 | ) | |||||||||||
Total comprehensive income | (750 | ) | (275 | ) | (74 | ) | (605 | ) | 974 | (730 | ) | |||||||||
Comprehensive income attributable to noncontrolling interests | (20 | ) | (20 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | (750 | ) | $ | (275 | ) | $ | (74 | ) | $ | (625 | ) | $ | 974 | $ | (750 | ) | |||
Cash Flows | ' | |||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | 8 | $ | 375 | $ | (43 | ) | $ | 520 | $ | (2 | ) | $ | 858 | ||||||
Cash used in discontinued operating activities | (8 | ) | (10 | ) | (18 | ) | ||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (111 | ) | (1 | ) | (249 | ) | (361 | ) | ||||||||||||
Acquisition, net of cash acquired | (4 | ) | (4 | ) | ||||||||||||||||
Proceeds from sales and other | 11 | 11 | ||||||||||||||||||
Net payments to fund minority partner loan | (16 | ) | (16 | ) | ||||||||||||||||
Deconsolidation of subsidiary | (32 | ) | (32 | ) | ||||||||||||||||
Cash used in investing activities | (8 | ) | (115 | ) | (1 | ) | (286 | ) | — | (402 | ) | |||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (167 | ) | (167 | ) | ||||||||||||||||
Change in intercompany transactions | 167 | (93 | ) | 74 | (150 | ) | 2 | — | ||||||||||||
Change in short term debt | 8 | 8 | ||||||||||||||||||
Payments of long term debt | (384 | ) | (13 | ) | (643 | ) | (1,040 | ) | ||||||||||||
Borrowings of long term debt | 217 | 551 | 768 | |||||||||||||||||
Net payments for hedging activity and other | (24 | ) | (24 | ) | ||||||||||||||||
Contribution from noncontrolling interests | 5 | 5 | ||||||||||||||||||
Noncontrolling dividends | (22 | ) | (22 | ) | ||||||||||||||||
Payment of finance fees | (7 | ) | (7 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (260 | ) | 61 | (282 | ) | 2 | (479 | ) | |||||||||||
Effect of exchange rate change on cash | (7 | ) | (7 | ) | ||||||||||||||||
Net change in cash | — | — | 17 | (65 | ) | — | (48 | ) | ||||||||||||
Cash at beginning of period | 10 | 421 | 431 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 27 | $ | 356 | $ | — | $ | 383 | ||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | — | $ | 148 | $ | (8 | ) | $ | 649 | $ | (44 | ) | $ | 745 | ||||||
Cash used in discontinued operating activities | (5 | ) | (5 | ) | ||||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (73 | ) | (1 | ) | (216 | ) | (290 | ) | ||||||||||||
Acquisition, net of cash acquired | (5 | ) | (5 | ) | ||||||||||||||||
Proceeds from sales and other | 2 | 93 | 95 | |||||||||||||||||
Net payments to fund minority partner loan | (21 | ) | (21 | ) | ||||||||||||||||
Cash used in investing activities | — | (71 | ) | (1 | ) | (149 | ) | — | (221 | ) | ||||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (188 | ) | (188 | ) | ||||||||||||||||
Change in intercompany transactions | 188 | (2 | ) | (1 | ) | (229 | ) | 44 | — | |||||||||||
Change in short term debt | (38 | ) | (38 | ) | ||||||||||||||||
Payments of long term debt | (185 | ) | (1 | ) | (216 | ) | (402 | ) | ||||||||||||
Borrowings of long term debt | 110 | 9 | 119 | |||||||||||||||||
Net receipts for hedging activity | 27 | 27 | ||||||||||||||||||
Contribution from noncontrolling interests | 3 | 3 | ||||||||||||||||||
Noncontrolling dividends | (24 | ) | (24 | ) | ||||||||||||||||
Payment of finance fees | (1 | ) | (1 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (77 | ) | (2 | ) | (469 | ) | 44 | (504 | ) | ||||||||||
Effect of exchange rate change on cash | 16 | 16 | ||||||||||||||||||
Net change in cash | — | — | (11 | ) | 42 | — | 31 | |||||||||||||
Cash at beginning of period | 21 | 379 | 400 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 10 | $ | 421 | $ | — | $ | 431 | ||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Non- | ||||||||||||||||||||
Guarantor | Guarantor | |||||||||||||||||||
Cash Flows | Parent | Issuer | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash provided by (used in) continuing operating activities | $ | — | $ | 289 | $ | (4 | ) | $ | 319 | $ | 71 | $ | 675 | |||||||
Cash used in discontinued operating activities | (2 | ) | (2 | ) | ||||||||||||||||
Investing Activities: | ||||||||||||||||||||
Additions to property, plant and equipment | (38 | ) | (5 | ) | (242 | ) | (285 | ) | ||||||||||||
Acquisition, net of cash acquired | (8 | ) | (136 | ) | (144 | ) | ||||||||||||||
Proceeds from sales and other | 3 | 3 | ||||||||||||||||||
Cash used in investing activities | — | (46 | ) | (5 | ) | (375 | ) | — | (426 | ) | ||||||||||
Financing Activities: | ||||||||||||||||||||
Net distribution to OI Inc. | (165 | ) | (165 | ) | ||||||||||||||||
Change in intercompany transactions | 165 | 86 | (199 | ) | 17 | (69 | ) | — | ||||||||||||
Change in short term debt | 80 | 80 | ||||||||||||||||||
Payments of long term debt | (1,262 | ) | (1 | ) | (534 | ) | (1,797 | ) | ||||||||||||
Borrowings of long term debt | 933 | 534 | (2 | ) | 1,465 | |||||||||||||||
Net payments for hedging activity | (22 | ) | (22 | ) | ||||||||||||||||
Noncontrolling dividends | (35 | ) | (35 | ) | ||||||||||||||||
Payment of finance fees | (19 | ) | (19 | ) | ||||||||||||||||
Cash provided by (used in) financing activities | — | (243 | ) | (200 | ) | 21 | (71 | ) | (493 | ) | ||||||||||
Effect of exchange rate change on cash | 6 | 6 | ||||||||||||||||||
Net change in cash | — | — | (209 | ) | (31 | ) | — | (240 | ) | |||||||||||
Cash at beginning of period | 230 | 410 | 640 | |||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 21 | $ | 379 | $ | — | $ | 400 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Equity Method Investments | ' | ' | ' |
Owens-Illinois, Inc.'s ownership percentage in the Company | 100.00% | ' | ' |
Number of countries in which the entity operates | 21 | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Compensation cost recognized for equity instruments for which employees do not render the required service | $11 | $11 | $1 |
Minimum | ' | ' | ' |
Equity Method Investments | ' | ' | ' |
General ownership percentage for equity method investments | 20.00% | ' | ' |
Maximum | ' | ' | ' |
Equity Method Investments | ' | ' | ' |
General ownership percentage for equity method investments | 50.00% | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Factory machinery and equipment | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '5 years |
Factory machinery and equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '25 years |
Glass-melting furnaces and forming machines | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '7 years |
Glass-melting furnaces and forming machines | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '15 years |
Buildings and building equipment | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '10 years |
Buildings and building equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '50 years |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 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 |
item | |||||
Segment Reporting Information | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 4 | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | $6,967 | $7,000 | $7,358 |
Items excluded from segment operating profit: | ' | ' | ' | ' | ' |
Retained corporate costs and other | ' | ' | -119 | -106 | -75 |
Restructuring, asset impairment and related charges | ' | ' | -119 | -168 | -112 |
Charge for goodwill impairment | 0 | ' | ' | ' | -641 |
Gain on China land compensation | ' | 61 | ' | 61 | ' |
Interest income | ' | ' | 10 | 9 | 11 |
Interest expense | ' | ' | -239 | -248 | -314 |
Earnings (loss) from continuing operations before income taxes | ' | ' | 480 | 483 | -231 |
Reportable Segment Totals | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | 6,941 | 6,963 | 7,266 |
Segment Operating Profit: | ' | ' | ' | ' | ' |
Segment Operating Profit | ' | ' | 947 | 935 | 900 |
Europe | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | 2,787 | 2,717 | 3,052 |
Segment Operating Profit: | ' | ' | ' | ' | ' |
Segment Operating Profit | ' | ' | 305 | 307 | 345 |
North America | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | 2,002 | 1,966 | 1,929 |
Segment Operating Profit: | ' | ' | ' | ' | ' |
Segment Operating Profit | ' | ' | 307 | 288 | 222 |
South America | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | 1,186 | 1,252 | 1,226 |
Segment Operating Profit: | ' | ' | ' | ' | ' |
Segment Operating Profit | ' | ' | 204 | 227 | 250 |
Asia Pacific | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | 966 | 1,028 | 1,059 |
Segment Operating Profit: | ' | ' | ' | ' | ' |
Segment Operating Profit | ' | ' | 131 | 113 | 83 |
Items excluded from segment operating profit: | ' | ' | ' | ' | ' |
Charge for goodwill impairment | ' | ' | ' | ' | -641 |
Other | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | ' | ' | $26 | $37 | $92 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets | ' | ' | ' |
Total assets: | $8,419 | $8,598 | $8,975 |
Equity investments: | ' | ' | ' |
Equity investments | 315 | 294 | 315 |
Equity earnings: | ' | ' | ' |
Equity earnings | 67 | 64 | 66 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 361 | 290 | 285 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 397 | 412 | 422 |
Reportable Segment Totals | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 8,121 | 8,360 | 8,669 |
Equity investments: | ' | ' | ' |
Equity investments | 264 | 253 | 267 |
Equity earnings: | ' | ' | ' |
Equity earnings | 43 | 36 | 33 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 346 | 279 | 274 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 383 | 397 | 413 |
Europe | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 3,509 | 3,362 | 3,588 |
Equity investments: | ' | ' | ' |
Equity investments | 84 | 63 | 59 |
Equity earnings: | ' | ' | ' |
Equity earnings | 17 | 15 | 21 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 130 | 87 | 127 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 139 | 150 | 164 |
North America | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 1,995 | 1,994 | 2,020 |
Equity investments: | ' | ' | ' |
Equity investments | 25 | 25 | 27 |
Equity earnings: | ' | ' | ' |
Equity earnings | 16 | 16 | 9 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 100 | 68 | 60 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 110 | 107 | 96 |
South America | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 1,467 | 1,655 | 1,682 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 80 | 75 | 50 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 72 | 70 | 73 |
Asia Pacific | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 1,150 | 1,349 | 1,379 |
Equity investments: | ' | ' | ' |
Equity investments | 155 | 165 | 181 |
Equity earnings: | ' | ' | ' |
Equity earnings | 10 | 5 | 3 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 36 | 49 | 37 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | 62 | 70 | 80 |
Other | ' | ' | ' |
Assets | ' | ' | ' |
Total assets: | 298 | 238 | 306 |
Equity investments: | ' | ' | ' |
Equity investments | 51 | 41 | 48 |
Equity earnings: | ' | ' | ' |
Equity earnings | 24 | 28 | 33 |
Capital expenditures: | ' | ' | ' |
Capital expenditures | 15 | 11 | 11 |
Depreciation and amortization expense: | ' | ' | ' |
Depreciation and amortization expense | $14 | $15 | $9 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information | ' | ' | ' |
Property, plant and equipment, net | $2,632 | $2,769 | $2,877 |
Net sales | 6,967 | 7,000 | 7,358 |
U.S. | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Property, plant and equipment, net | 686 | 663 | 667 |
Net sales | 1,809 | 1,780 | 1,776 |
Non-U.S. | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Property, plant and equipment, net | 1,946 | 2,106 | 2,210 |
Net sales | $5,158 | $5,220 | $5,582 |
Segment_Information_Details_4
Segment Information (Details 4) (Consolidating net sales from continuing operations, Geographic concentration) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Minimum | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Percentage of consolidated net sales from continuing operations | 10.00% | ' | ' |
France | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Percentage of consolidated net sales from continuing operations | 11.00% | 11.00% | 13.00% |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables | ' | ' |
Trade accounts receivable | $757 | $827 |
Less: allowances for doubtful accounts and discounts | 39 | 41 |
Net trade receivables | 718 | 786 |
Other receivables | 225 | 182 |
Total | 943 | 968 |
Amount of receivables sold | $192 | $141 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods | $958 | $957 |
Raw materials | 113 | 137 |
Operating supplies | 46 | 45 |
Inventories | $1,117 | $1,139 |
Equity_Investments_Details
Equity Investments (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Non-U.S. | Non-U.S. | Non-U.S. | U.S. | U.S. | U.S. | Vetri Speciali SpA | Tata Chemical (Soda Ash) Partners | Rocky Mountain Bottle Company | BJC O-I Glass Pte. Ltd | Vetrerie Meridionali SpA | ||||
Summarized combined financial information for equity associates at end of year: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | $419 | $327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current assets | 528 | 496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 947 | 823 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | 224 | 195 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities and deferred items | 193 | 158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities and deferred items | 417 | 353 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets | 530 | 470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summarized combined financial information for equity associates for the year: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | 699 | 658 | 689 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | 185 | 191 | 215 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 149 | 143 | 174 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends received | 67 | 50 | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Investments Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity earnings | 67 | 64 | 66 | 27 | 20 | 24 | 40 | 44 | 42 | ' | ' | ' | ' | ' |
Percentage of equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 25.00% | 50.00% | 50.00% | 50.00% |
Gain or loss recognized related to the deconsolidation | -17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Difference between investment carrying value and amount of underlying equity in net assets | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | 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, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Europe | Europe | Europe | North America | North America | North America | South America | South America | South America | Asia Pacific | Asia Pacific | Asia Pacific | Other | Other | Other | Other | |||||
Changes in the carrying amount of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance of Goodwill at the beginning of the period | ' | $2,079 | $2,082 | $2,821 | $1,006 | $983 | $1,009 | $743 | $740 | $743 | $325 | $354 | $387 | $677 | ' | ' | $5 | $5 | $5 | $5 |
Acquisitions | ' | ' | ' | 8 | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge | 0 | ' | ' | -641 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -641 | ' | ' | ' | ' | ' | ' |
Translation effects | ' | -20 | -3 | -106 | 38 | 23 | -34 | -9 | 3 | -3 | -49 | -29 | -33 | -36 | ' | ' | ' | ' | ' | ' |
Balance of Goodwill at end of the period | 2,059 | 2,059 | 2,079 | 2,082 | 1,044 | 1,006 | 983 | 734 | 743 | 740 | 276 | 325 | 354 | ' | ' | ' | 5 | 5 | 5 | 5 |
Accumulated impairment losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,135 | $1,135 | $1,135 | ' | ' | ' | ' |
Other_Assets_Details
Other Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other assets | ' | ' | ' |
Deferred tax assets | $237 | $284 | ' |
Capitalized software | 114 | 115 | ' |
Deferred returnable packaging costs | 124 | 96 | ' |
Non-income tax receivable | 70 | 20 | ' |
Deferred finance fees | 33 | 40 | ' |
Intangibles | 23 | 29 | ' |
Other | 78 | 91 | ' |
Total other assets | 679 | 675 | ' |
Other information related to capitalized software | ' | ' | ' |
Amortization expense for capitalized software | 14 | 15 | 11 |
Estimated amortization expense | ' | ' | ' |
2014 | 17 | ' | ' |
2015 | 16 | ' | ' |
2016 | 13 | ' | ' |
2017 | 13 | ' | ' |
2018 | $12 | ' | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | Net Investment Hedge | Commodity futures contracts | Commodity futures contracts | Commodity futures contracts | Commodity futures contracts | Commodity futures contracts | Forward exchange contracts | Forward exchange contracts | |
EUR (€) | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||
USD ($) | USD ($) | USD ($) | Minimum | Maximum | USD ($) | USD ($) | |||||
MMBTU | MMBTU | ||||||||||
Derivatives and Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coverage of commodity futures contracts (in MM BTUs) | ' | ' | ' | ' | 5,400,000 | 7,000,000 | ' | ' | ' | ' | ' |
Unrecognized gain (loss) included in Accumulated OCI | ' | ' | ' | ' | $1 | ($1) | ' | ' | ' | ' | ' |
Period during which unrecognized loss included in Accumulated OCI will be reclassified into earnings | ' | ' | ' | ' | ' | ' | ' | '12 months | '24 months | ' | ' |
Commodity futures contracts loss recognized in OCI | ' | ' | ' | ' | 1 | -3 | -10 | ' | ' | ' | ' |
Commodity futures contracts loss reclassified from accumulated OCI into income | ' | ' | ' | ' | -1 | -8 | -7 | ' | ' | ' | ' |
Senior notes | ' | ' | ' | 225 | ' | ' | ' | ' | ' | ' | ' |
Net investment hedge loss recognized in OCI | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' |
Forward exchange contracts in various currencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550 | 750 |
Forward exchange contracts gain (loss) recognized in income | ($28) | $6 | ($11) | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Details1
Derivative Instruments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Total asset derivatives | $4 | $4 |
Total liability derivatives | 7 | 10 |
Derivatives designated as hedging instruments | Commodity futures contracts | Receivables | ' | ' |
Derivatives, Fair Value | ' | ' |
Total asset derivatives | 1 | ' |
Derivatives designated as hedging instruments | Commodity futures contracts | Other liabilities (current) | ' | ' |
Derivatives, Fair Value | ' | ' |
Total liability derivatives | ' | 1 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Receivables | ' | ' |
Derivatives, Fair Value | ' | ' |
Total asset derivatives | 3 | 4 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities (current) | ' | ' |
Derivatives, Fair Value | ' | ' |
Total liability derivatives | $7 | $9 |
Restructuring_Accruals_Asset_I2
Restructuring Accruals, Asset Impairments and Other Costs Related to Closed Facilities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Reserve | ' | ' | ' |
Asset impairment | $22 | ' | $17 |
Restructuring accrual | ' | ' | ' |
Restructuring reserve balance at beginning of year | 123 | 103 | ' |
Charges | 97 | 168 | 95 |
Write-down of assets to net realizable value | -16 | -68 | ' |
Net cash paid, principally severance and related benefits | -78 | -66 | -39 |
Pension charges transferred to other accounts | -6 | -15 | ' |
Other, including foreign exchange translation | -6 | 1 | ' |
Restructuring reserve balance at end of year | 114 | 123 | 103 |
Mold shop in South America | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Employee costs and asset impairments | ' | 7 | ' |
European Asset Optimization | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Employee costs and asset impairments | 16 | 86 | 24 |
Restructuring accrual | ' | ' | ' |
Restructuring reserve balance at beginning of year | 53 | 12 | ' |
Charges | 16 | 86 | ' |
Write-down of assets to net realizable value | -3 | -30 | ' |
Net cash paid, principally severance and related benefits | -37 | -16 | ' |
Other, including foreign exchange translation | 1 | 1 | ' |
Restructuring reserve balance at end of year | 30 | 53 | 12 |
Asia Pacific Restructuring | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Employee costs and asset impairments | 49 | 47 | 46 |
Restructuring accrual | ' | ' | ' |
Restructuring reserve balance at beginning of year | 6 | 17 | ' |
Charges | 49 | 47 | ' |
Write-down of assets to net realizable value | -11 | -22 | ' |
Net cash paid, principally severance and related benefits | -16 | -25 | ' |
Pension charges transferred to other accounts | -6 | -11 | ' |
Other, including foreign exchange translation | -2 | ' | ' |
Restructuring reserve balance at end of year | 20 | 6 | 17 |
Other Restructuring Actions | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Employee costs and asset impairments | ' | 13 | ' |
Miscellaneous other costs | 3 | 15 | ' |
Restructuring accrual | ' | ' | ' |
Restructuring reserve balance at beginning of year | 64 | 74 | ' |
Charges | 32 | 35 | ' |
Write-down of assets to net realizable value | -2 | -16 | ' |
Net cash paid, principally severance and related benefits | -25 | -25 | ' |
Pension charges transferred to other accounts | ' | -4 | ' |
Other, including foreign exchange translation | -5 | ' | ' |
Restructuring reserve balance at end of year | 64 | 64 | ' |
Closure of flat glass operations in South America | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Employee costs and asset impairments | 16 | ' | ' |
Europe and South America | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Headcount reduction charges | ' | ' | 13 |
Europe | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Asset impairment | ' | ' | 12 |
Global headcount reduction initiatives | ' | ' | ' |
Restructuring Reserve | ' | ' | ' |
Headcount reduction charges | 13 | ' | ' |
Severance and other employee separation costs | ' | ' | ' |
Restructuring accrual | ' | ' | ' |
Estimated amount of restructuring accrual balance | 71 | ' | ' |
Environmental remediation costs | ' | ' | ' |
Restructuring accrual | ' | ' | ' |
Charges | ' | 14 | ' |
Estimated amount of restructuring accrual balance | 27 | ' | ' |
Other exit costs | ' | ' | ' |
Restructuring accrual | ' | ' | ' |
Estimated amount of restructuring accrual balance | $16 | ' | ' |
Pension_Benefit_Plans_and_Othe2
Pension Benefit Plans and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligations: | ' | ' | ' |
Special termination | $8 | ' | ' |
U.S Pension Plans | ' | ' | ' |
Changes in the pension and postretirement benefit obligations | ' | ' | ' |
Obligations at beginning of year | 2,647 | 2,547 | ' |
Change in benefit obligations: | ' | ' | ' |
Service cost | 27 | 27 | 25 |
Interest cost | 106 | 114 | 125 |
Actuarial (gain) loss, including the effect of change in discount rates | -234 | 170 | ' |
Special termination | 8 | 4 | ' |
Benefit payments | -279 | -220 | ' |
Other | ' | 9 | ' |
Net change in benefit obligations | -372 | 100 | ' |
Obligations at end of year | 2,275 | 2,647 | 2,547 |
Changes in fair value of pension plans' assets: | ' | ' | ' |
Fair value at beginning of year | 2,175 | 2,011 | ' |
Actual gain (loss) on plan assets | 365 | 275 | ' |
Benefit payments | -279 | -220 | ' |
Employer contributions | 12 | 109 | ' |
Net change in fair value of assets | 98 | 164 | ' |
Fair value at end of year | 2,273 | 2,175 | 2,011 |
Non-U.S. Pension Plans | ' | ' | ' |
Changes in the pension and postretirement benefit obligations | ' | ' | ' |
Obligations at beginning of year | 1,911 | 1,553 | ' |
Change in benefit obligations: | ' | ' | ' |
Service cost | 33 | 26 | 24 |
Interest cost | 72 | 77 | 83 |
Actuarial (gain) loss, including the effect of change in discount rates | -1 | 293 | ' |
Gain from curtailment and plan amendment | -52 | ' | ' |
Participant contributions | 7 | 7 | ' |
Benefit payments | -101 | -101 | ' |
Other | -4 | ' | ' |
Foreign currency translation | 1 | 56 | ' |
Net change in benefit obligations | -45 | 358 | ' |
Obligations at end of year | 1,866 | 1,911 | 1,553 |
Changes in fair value of pension plans' assets: | ' | ' | ' |
Fair value at beginning of year | 1,527 | 1,325 | ' |
Actual gain (loss) on plan assets | 61 | 118 | ' |
Benefit payments | -101 | -101 | ' |
Employer contributions | 92 | 110 | ' |
Participant contributions | 7 | 7 | ' |
Foreign currency translation | -5 | 43 | ' |
Other | -3 | 25 | ' |
Net change in fair value of assets | 51 | 202 | ' |
Fair value at end of year | 1,578 | 1,527 | 1,325 |
U.S Postretirement Benefit Plans | ' | ' | ' |
Changes in the pension and postretirement benefit obligations | ' | ' | ' |
Obligations at beginning of year | 181 | 194 | ' |
Change in benefit obligations: | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 8 | 10 |
Actuarial (gain) loss, including the effect of change in discount rates | 1 | -6 | ' |
Benefit payments | -15 | -16 | ' |
Curtailment | -62 | ' | ' |
Net change in benefit obligations | -70 | -13 | ' |
Obligations at end of year | 111 | 181 | 194 |
Changes in fair value of pension plans' assets: | ' | ' | ' |
Benefit payments | -15 | -16 | ' |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Changes in the pension and postretirement benefit obligations | ' | ' | ' |
Obligations at beginning of year | 102 | 95 | ' |
Change in benefit obligations: | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 4 | 4 | 4 |
Actuarial (gain) loss, including the effect of change in discount rates | -7 | 3 | ' |
Benefit payments | -4 | -3 | ' |
Foreign currency translation | -6 | 2 | ' |
Net change in benefit obligations | -12 | 7 | ' |
Obligations at end of year | 90 | 102 | 95 |
Changes in fair value of pension plans' assets: | ' | ' | ' |
Benefit payments | ($4) | ($3) | ' |
Pension_Benefit_Plans_and_Othe3
Pension Benefit Plans and Other Postretirement Benefits (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
U.S Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan assets at fair value | $2,273 | $2,175 | $2,011 |
Projected benefit and postretirement benefit obligations | 2,275 | 2,647 | 2,547 |
Plan assets less than projected benefit obligations | -2 | -472 | ' |
Items not yet recognized in pension expense: | ' | ' | ' |
Actuarial loss | 935 | 1,461 | ' |
Prior service cost (credit) | 2 | 2 | ' |
Total | 937 | 1,463 | ' |
Net amount recognized | 935 | 991 | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan assets at fair value | 1,578 | 1,527 | 1,325 |
Projected benefit and postretirement benefit obligations | 1,866 | 1,911 | 1,553 |
Plan assets less than projected benefit obligations | -288 | -384 | ' |
Items not yet recognized in pension expense: | ' | ' | ' |
Actuarial loss | 488 | 534 | ' |
Prior service cost (credit) | -25 | -9 | ' |
Total | 463 | 525 | ' |
Net amount recognized | 175 | 141 | ' |
U.S Postretirement Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Projected benefit and postretirement benefit obligations | 111 | 181 | 194 |
Items not yet recognized in pension expense: | ' | ' | ' |
Actuarial loss | 30 | 36 | ' |
Prior service cost (credit) | -54 | -8 | ' |
Total | -24 | 28 | ' |
Net amount recognized | -135 | -153 | ' |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Projected benefit and postretirement benefit obligations | 90 | 102 | 95 |
Items not yet recognized in pension expense: | ' | ' | ' |
Actuarial loss | -2 | 5 | ' |
Total | -2 | 5 | ' |
Net amount recognized | ($92) | ($97) | ' |
Pension_Benefit_Plans_and_Othe4
Pension Benefit Plans and Other Postretirement Benefits (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization: | ' | ' | ' |
Special termination benefits | $8 | ' | ' |
Pension Benefit Plans | ' | ' | ' |
Changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income | ' | ' | ' |
Accumulated benefit obligation | 4,015 | 4,298 | ' |
U.S Pension Plans | ' | ' | ' |
Net amount recognized included in the Consolidated Balance Sheets | ' | ' | ' |
Pension assets | 46 | ' | ' |
Current pension liability and nonpension postretirement benefit, included with Other accrued liabilities | -2 | -3 | ' |
Pension benefits and nonpension postretirement benefits | -46 | -469 | ' |
Accumulated other comprehensive loss | 937 | 1,463 | ' |
Net amount recognized | 935 | 991 | ' |
Changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income | ' | ' | ' |
Current year actuarial (gain) loss | -416 | 79 | ' |
Amortization of actuarial loss | -110 | -96 | ' |
Total | -526 | -17 | ' |
Changes in benefit obligations were recognized in accumulated other comprehensive income | -526 | -17 | ' |
Components of the net pension expense and postretirement benefit cost | ' | ' | ' |
Service cost | 27 | 27 | 25 |
Interest cost | 106 | 114 | 125 |
Expected asset return | -183 | -183 | -186 |
Amortization: | ' | ' | ' |
Actuarial loss | 110 | 96 | 83 |
Net amortization | 110 | 96 | 83 |
Net periodic pension and postretirement benefit cost | 60 | 54 | 47 |
Special termination benefits | 8 | 4 | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Net amount recognized included in the Consolidated Balance Sheets | ' | ' | ' |
Pension assets | 22 | ' | ' |
Current pension liability and nonpension postretirement benefit, included with Other accrued liabilities | -6 | -7 | ' |
Pension benefits and nonpension postretirement benefits | -304 | -377 | ' |
Accumulated other comprehensive loss | 463 | 525 | ' |
Net amount recognized | 175 | 141 | ' |
Changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income | ' | ' | ' |
Current year actuarial (gain) loss | 28 | 239 | ' |
Amortization of actuarial loss | -28 | -22 | ' |
Amortization of prior service credit | 1 | ' | ' |
Gain from curtailment and plan amendment | -52 | ' | ' |
Settlement | -6 | -11 | ' |
Total | -57 | 206 | ' |
Translation | -5 | 17 | ' |
Changes in benefit obligations were recognized in accumulated other comprehensive income | -62 | 223 | ' |
Components of the net pension expense and postretirement benefit cost | ' | ' | ' |
Service cost | 33 | 26 | 24 |
Interest cost | 72 | 77 | 83 |
Expected asset return | -91 | -87 | -86 |
Amortization: | ' | ' | ' |
Actuarial loss | 28 | 22 | 24 |
Prior service credit | -1 | ' | -1 |
Net amortization | 27 | 22 | 23 |
Net periodic pension and postretirement benefit cost | 41 | 38 | 44 |
Settlement cost | 6 | 11 | ' |
U.S Postretirement Benefit Plans | ' | ' | ' |
Net amount recognized included in the Consolidated Balance Sheets | ' | ' | ' |
Current pension liability and nonpension postretirement benefit, included with Other accrued liabilities | -10 | -15 | ' |
Pension benefits and nonpension postretirement benefits | -101 | -166 | ' |
Accumulated other comprehensive loss | -24 | 28 | ' |
Net amount recognized | -135 | -153 | ' |
Changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income | ' | ' | ' |
Current year actuarial (gain) loss | 1 | -6 | ' |
Curtailment | -57 | ' | ' |
Amortization of actuarial loss | -3 | -5 | ' |
Amortization of prior service credit | 7 | 3 | ' |
Other adjustments | ' | -2 | ' |
Total | -52 | -10 | ' |
Components of the net pension expense and postretirement benefit cost | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 8 | 10 |
Curtailment (gain) loss | -5 | ' | ' |
Amortization: | ' | ' | ' |
Actuarial loss | 3 | 5 | 5 |
Prior service credit | -7 | -3 | -3 |
Net amortization | -4 | 2 | 2 |
Net periodic pension and postretirement benefit cost | -3 | 11 | 13 |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Net amount recognized included in the Consolidated Balance Sheets | ' | ' | ' |
Current pension liability and nonpension postretirement benefit, included with Other accrued liabilities | -4 | -4 | ' |
Pension benefits and nonpension postretirement benefits | -86 | -98 | ' |
Accumulated other comprehensive loss | -2 | 5 | ' |
Net amount recognized | -92 | -97 | ' |
Changes in plan assets and benefit obligations were recognized in accumulated other comprehensive income | ' | ' | ' |
Current year actuarial (gain) loss | -7 | 3 | ' |
Total | -7 | 3 | ' |
Components of the net pension expense and postretirement benefit cost | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 4 | 4 | 4 |
Amortization: | ' | ' | ' |
Net periodic pension and postretirement benefit cost | $5 | $5 | $5 |
Pension_Benefit_Plans_and_Othe5
Pension Benefit Plans and Other Postretirement Benefits (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted average assumptions used to determine net periodic pension costs and net postretirement benefit cost | ' | ' | ' |
Tenure used for computing historical long-term rate of return assumption | '10 years | ' | ' |
U.S Pension Plans | ' | ' | ' |
Amortization: | ' | ' | ' |
Actuarial loss | $74 | ' | ' |
Net amortization | 74 | ' | ' |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ' | ' | ' |
Projected benefit obligations | 674 | 2,647 | ' |
Fair value of plan assets | 626 | 2,175 | ' |
Accumulated benefit obligation | 646 | 2,569 | ' |
Projected and accumulated benefit obligations in excess of the fair value of plan assets | ' | ' | ' |
Projected benefit obligations | 674 | 2,647 | ' |
Fair value of plan assets | 626 | 2,175 | ' |
Accumulated benefit obligation | 646 | 2,569 | ' |
Weighted average assumptions used to determine pension and accumulated postretirement benefit obligations | ' | ' | ' |
Discount rate used to determine pension and accumulated postretirement benefit obligations (as a percent) | 4.81% | 4.11% | ' |
Rate of compensation increase (as a percent) | 2.97% | 2.97% | ' |
Weighted average assumptions used to determine net periodic pension costs and net postretirement benefit cost | ' | ' | ' |
Discount rate used to determine net periodic pension costs and net postretirement benefit cost (as a percent) | 4.11% | 4.59% | 5.24% |
Rate of compensation increase (as a percent) | 2.97% | 3.14% | 4.50% |
Expected long-term rate of return on assets (as a percent) | 8.00% | 8.00% | 8.00% |
Non-U.S. Pension Plans | ' | ' | ' |
Amortization: | ' | ' | ' |
Actuarial loss | 22 | ' | ' |
Prior service cost | -3 | ' | ' |
Net amortization | 19 | ' | ' |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ' | ' | ' |
Projected benefit obligations | 1,588 | 1,911 | ' |
Fair value of plan assets | 1,278 | 1,527 | ' |
Accumulated benefit obligation | 1,537 | 1,729 | ' |
Projected and accumulated benefit obligations in excess of the fair value of plan assets | ' | ' | ' |
Projected benefit obligations | 1,561 | 1,172 | ' |
Fair value of plan assets | 1,278 | 858 | ' |
Accumulated benefit obligation | 1,537 | 1,090 | ' |
Weighted average assumptions used to determine pension and accumulated postretirement benefit obligations | ' | ' | ' |
Discount rate used to determine pension and accumulated postretirement benefit obligations (as a percent) | 4.14% | 3.89% | ' |
Rate of compensation increase (as a percent) | 3.31% | 3.08% | ' |
Weighted average assumptions used to determine net periodic pension costs and net postretirement benefit cost | ' | ' | ' |
Discount rate used to determine net periodic pension costs and net postretirement benefit cost (as a percent) | 3.89% | 4.75% | 5.28% |
Rate of compensation increase (as a percent) | 3.08% | 3.23% | 3.49% |
Expected long-term rate of return on assets (as a percent) | 6.34% | 6.24% | 6.44% |
U.S Postretirement Benefit Plans | ' | ' | ' |
Amortization: | ' | ' | ' |
Actuarial loss | 2 | ' | ' |
Prior service cost | -8 | ' | ' |
Net amortization | ($6) | ' | ' |
Weighted average assumptions used to determine pension and accumulated postretirement benefit obligations | ' | ' | ' |
Discount rate used to determine pension and accumulated postretirement benefit obligations (as a percent) | 4.63% | 4.04% | 4.47% |
Weighted average assumptions used to determine net periodic pension costs and net postretirement benefit cost | ' | ' | ' |
Discount rate used to determine net periodic pension costs and net postretirement benefit cost (as a percent) | 4.04% | 4.47% | 5.09% |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Weighted average assumptions used to determine pension and accumulated postretirement benefit obligations | ' | ' | ' |
Discount rate used to determine pension and accumulated postretirement benefit obligations (as a percent) | 4.47% | 3.89% | 4.13% |
Weighted average assumptions used to determine net periodic pension costs and net postretirement benefit cost | ' | ' | ' |
Discount rate used to determine net periodic pension costs and net postretirement benefit cost (as a percent) | 3.89% | 4.13% | 5.02% |
Pension_Benefit_Plans_and_Othe6
Pension Benefit Plans and Other Postretirement Benefits (Details 5) (USD $) | 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, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | U.S Pension Plans | U.S Pension Plans | U.S Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Equity securities | Equity securities | Equity securities | Equity securities | Debt securities | Debt securities | Debt securities | Debt securities | Real estate | Real estate | Other | Other | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 |
U.S Pension Plans | U.S Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | U.S Pension Plans | U.S Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Cash and cash equivalents | Cash and cash equivalents | Equity securities | Equity securities | Debt securities | Debt securities | Other | Other | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Cash and cash equivalents | Cash and cash equivalents | Equity securities | Equity securities | Debt securities | Debt securities | Other | Other | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Debt securities | Debt securities | Real estate | Real estate | |||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | Non-U.S. Pension Plans | ||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of U.S. pension plan assets classified as Level 2 assets in securities | ' | ' | ' | ' | ' | ' | 72.00% | 72.00% | ' | ' | 28.00% | 28.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan assets at fair value | $2,273 | $2,175 | $2,011 | $1,578 | $1,527 | $1,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,191 | $1,135 | $39 | $36 | $387 | $367 | $752 | $714 | $13 | $18 | $379 | $374 | $6 | $20 | $210 | $173 | $116 | $113 | $47 | $68 | $8 | $18 | $16 | $2 | $3 | $6 | $15 |
Target allocation percentage | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | 55.00% | ' | ' | 40.00% | 50.00% | 0.00% | 10.00% | 0.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_Benefit_Plans_and_Othe7
Pension Benefit Plans and Other Postretirement Benefits (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Estimated future benefit payments | ' | ' | ' |
Defined contribution plans for salaried and hourly U.S. employees | $8 | $7 | $8 |
U.S Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value at beginning of year | 2,175 | 2,011 | ' |
Net increase (decrease) | 98 | 164 | ' |
Fair value at end of year | 2,273 | 2,175 | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 181 | ' | ' |
2015 | 172 | ' | ' |
2016 | 174 | ' | ' |
2017 | 167 | ' | ' |
2018 | 164 | ' | ' |
2019 - 2023 | 794 | ' | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value at beginning of year | 1,527 | 1,325 | ' |
Net increase (decrease) | 51 | 202 | ' |
Fair value at end of year | 1,578 | 1,527 | ' |
Contribution to defined benefit plan in 2014 | 30 | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 82 | ' | ' |
2015 | 85 | ' | ' |
2016 | 86 | ' | ' |
2017 | 87 | ' | ' |
2018 | 90 | ' | ' |
2019 - 2023 | 487 | ' | ' |
U.S Postretirement Benefit Plans | ' | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 10 | ' | ' |
2015 | 10 | ' | ' |
2016 | 10 | ' | ' |
2017 | 9 | ' | ' |
2018 | 9 | ' | ' |
2019 - 2023 | 39 | ' | ' |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 4 | ' | ' |
2015 | 4 | ' | ' |
2016 | 4 | ' | ' |
2017 | 5 | ' | ' |
2018 | 5 | ' | ' |
2019 - 2023 | 25 | ' | ' |
Level 3 | Non-U.S. Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value at beginning of year | 18 | 16 | ' |
Net increase (decrease) | -10 | 2 | ' |
Fair value at end of year | $8 | $18 | ' |
Pension_Benefit_Plans_and_Othe8
Pension Benefit Plans and Other Postretirement Benefits (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefit Plans and Other Postretirement Benefits | ' | ' | ' |
Payments to the trust as required by the bargaining agreements are based upon specified amounts per hour worked | $6 | $6 | $6 |
U.S Postretirement Benefit Plans | ' | ' | ' |
Weighted average assumed health care cost trend (in percent) | ' | ' | ' |
Health care cost trend rate assumed for next year (as a percent) | 7.00% | 8.00% | ' |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) (as a percent) | 5.00% | 5.00% | ' |
Year that the rate reaches the ultimate trend rate | '2024 | '2019 | ' |
Effect of one-percentage-point change in assumed health care cost trend rates (in percent) | ' | ' | ' |
One-Percentage-Point Increase, effect on accumulated postretirement benefit obligations | 4 | ' | ' |
One-Percentage-Point Decrease, effect on accumulated postretirement benefit obligations | -4 | ' | ' |
Non-U.S. Postretirement Benefit Plans | ' | ' | ' |
Weighted average assumed health care cost trend (in percent) | ' | ' | ' |
Health care cost trend rate assumed for next year (as a percent) | 5.00% | 6.00% | ' |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) (as a percent) | 5.00% | 5.00% | ' |
Year that the rate reaches the ultimate trend rate | '2014 | '2014 | ' |
Effect of one-percentage-point change in assumed health care cost trend rates (in percent) | ' | ' | ' |
One-Percentage-Point Increase, effect on total of service and interest cost | 1 | ' | ' |
One-Percentage-Point Decrease, effect on total of service and interest cost | -1 | ' | ' |
One-Percentage-Point Increase, effect on accumulated postretirement benefit obligations | 15 | ' | ' |
One-Percentage-Point Decrease, effect on accumulated postretirement benefit obligations | ($12) | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Continuing operations | ' | ' | ' |
U.S. | $231 | $187 | $188 |
Non-U.S. | 249 | 296 | -419 |
Earnings (loss) from continuing operations before income taxes | 480 | 483 | -231 |
Discontinued operations | ' | ' | ' |
U.S. | -8 | ' | ' |
Non-U.S. | -10 | -5 | -2 |
Discontinued operations total | -18 | -5 | -2 |
Current: | ' | ' | ' |
U.S. | 7 | -4 | -12 |
Non-U.S. | 116 | 117 | 139 |
Total | 123 | 113 | 127 |
Deferred: | ' | ' | ' |
U.S. | ' | 8 | 11 |
Non-U.S. | -3 | -13 | -53 |
Total | -3 | -5 | -42 |
Total: | ' | ' | ' |
U.S. | 7 | 4 | -1 |
Non-U.S. | 113 | 104 | 86 |
Total for continuing operations | 120 | 108 | 85 |
Total for discontinued operations | ' | -3 | -3 |
Total | $120 | $105 | $82 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
A reconciliation of the provision for income taxes | ' | ' | ' |
Statutory U.S. Federal tax rate (as a percent) | 35.00% | ' | ' |
Increase (decrease) in provision for income taxes due to: | ' | ' | ' |
Tax provision on pretax earnings (loss) from continuing operations at statutory U.S. Federal tax rate | $168 | $169 | ($81) |
Differences in income taxes on foreign earnings, losses and remittances | -29 | -5 | -13 |
Goodwill Impairment | ' | ' | 224 |
U.S. tax consolidation benefit | -51 | -54 | -58 |
Changes in valuation allowance | 37 | -7 | 15 |
Tax audits and settlements | 1 | -1 | 3 |
Other items | -6 | 6 | -5 |
Total for continuing operations | $120 | $108 | $85 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued postretirement benefits | $60 | $89 |
Foreign tax credit | 356 | 354 |
Operating and capital loss carryovers | 489 | 486 |
Other credit carryovers | 46 | 46 |
Accrued liabilities | 89 | 95 |
Pension liability | 47 | 237 |
Other | 73 | 97 |
Total deferred tax assets | 1,160 | 1,404 |
Deferred tax liabilities: | ' | ' |
Property, plant, and equipment | 126 | 120 |
Exchangeable notes | 10 | 19 |
Intangibles | 27 | 13 |
Other | 59 | 83 |
Total deferred tax liabilities | 222 | 235 |
Valuation allowance | -833 | -1,010 |
Net deferred taxes | 105 | 159 |
Deferred taxes are included in the Consolidated Balance Sheets: | ' | ' |
Prepaid expenses | 64 | 62 |
Other assets | 237 | 284 |
U. S. And foreign income taxes | ' | -5 |
Deferred taxes | -196 | -182 |
Net deferred taxes | $105 | $159 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reasonably possible change in unrecognized tax benefits | ' | ' | ' |
Unused foreign tax credits expiring in 2017 through 2022 | $356,000,000 | $354,000,000 | ' |
Unused research tax credits expiring from 2014 to 2033 | 20,000,000 | ' | ' |
Alternative minimum tax credits | 26,000,000 | ' | ' |
Operating and capital loss carryforwards with indefinite life | 164,000,000 | ' | ' |
Operating and capital loss carryforwards expiring between 2014 and 2031 | 325,000,000 | ' | ' |
Period of cumulative income position of the operations | '3 years | ' | ' |
Valuation allowance | 833,000,000 | 1,010,000,000 | ' |
Equity in undistributed earnings of foreign subsidiaries | 3,200,000,000 | ' | ' |
Reconciliation of the Company's total gross unrecognized tax benefits | ' | ' | ' |
Balance at beginning of the period | 97,000,000 | 125,000,000 | 143,000,000 |
Additions and reductions for tax positions of prior years | -3,000,000 | 8,000,000 | -15,000,000 |
Additions based on tax positions related to the current year | 9,000,000 | 7,000,000 | 30,000,000 |
Reductions due to lapse of the applicable statute of limitations | -2,000,000 | -21,000,000 | -8,000,000 |
Reductions due to settlements | ' | -26,000,000 | -18,000,000 |
Foreign currency translation | -1,000,000 | 4,000,000 | -7,000,000 |
Balance at ending of the period | 100,000,000 | 97,000,000 | 125,000,000 |
Unrecognized tax benefits, which if recognized, would impact the Company's effective income tax rate | 92,000,000 | 89,000,000 | 114,000,000 |
Accrued interest and penalties | 35,000,000 | 33,000,000 | 49,000,000 |
Interest and penalties included in tax expense | 1,000,000 | -6,000,000 | 18,000,000 |
Period during which unrecognized tax benefits are reasonably possible of being settled as a result of audit settlements or statute expirations | '12 months | ' | ' |
U.S. operations | ' | ' | ' |
Reasonably possible change in unrecognized tax benefits | ' | ' | ' |
Period of cumulative income position of the operations | '3 years | ' | ' |
Valuation allowance | 680,000,000 | ' | ' |
Maximum | ' | ' | ' |
Reconciliation of the Company's total gross unrecognized tax benefits | ' | ' | ' |
Reasonably possible decrease in unrecognized tax benefits related to audit settlements or statute expirations | $20,000,000 | ' | ' |
Debt_Details
Debt (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-10 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Secured Credit Agreement | Secured Credit Agreement | Secured Credit Agreement | Revolving Loans | Revolving Loans | Revolving Loans | Term Loan A | Term Loan A | Term Loan B | Term Loan B | Term Loan C (81 million CAD at December 31, 2013) | Term Loan C (81 million CAD at December 31, 2013) | Term Loan C (81 million CAD at December 31, 2013) | Term Loan D (€85 million at December 31, 2013) | Term Loan D (€85 million at December 31, 2013) | Term Loan D (€85 million at December 31, 2013) | Senior Notes 3.00%, Exchangeable, due 2015 | Senior Notes 3.00%, Exchangeable, due 2015 | Senior Notes 3.00%, Exchangeable, due 2015 | Senior Notes 3.00%, Exchangeable, due 2015 | Senior Notes 7.375%, due 2016 | Senior Notes 7.375%, due 2016 | Senior Notes 6.875%, due 2017 (300 million EUR) | Senior Notes 6.875%, due 2017 (300 million EUR) | Senior Notes 6.875%, due 2017 (300 million EUR) | Senior Notes 6.875%, due 2017 (300 million EUR) | Senior Notes 6.75%, due 2020 (500 million EUR) | Senior Notes 6.75%, due 2020 (500 million EUR) | Senior Notes 6.75%, due 2020 (500 million EUR) | Senior Notes 4.875%, due 2021 (330 million EUR) | Senior Notes 4.875%, due 2021 (330 million EUR) | Senior Notes 4.875%, due 2021 (330 million EUR) | Senior Notes 4.875%, due 2021 (330 million EUR) | Payable to OI Inc. | Payable to OI Inc. | Other debt | Other debt | Accounts Receivable Securitization Program | Accounts Receivable Securitization Program | European Accounts Receivable Securitization Program | |
USD ($) | Minimum | Maximum | USD ($) | Minimum | Maximum | AUD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $3,261,000,000 | $3,477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $53,000,000 | $405,000,000 | $525,000,000 | 81,000,000 | $76,000,000 | $102,000,000 | € 85,000,000 | $117,000,000 | $163,000,000 | $617,000,000 | $642,000,000 | ' | ' | $593,000,000 | $591,000,000 | ' | € 300,000,000 | ' | $396,000,000 | $690,000,000 | € 500,000,000 | $660,000,000 | ' | $455,000,000 | € 330,000,000 | ' | $250,000,000 | $250,000,000 | $58,000,000 | $95,000,000 | ' | ' | ' |
Less amounts due within one year | 16,000,000 | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 3,245,000,000 | 3,454,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | 7.38% | ' | ' | 6.88% | ' | ' | 6.75% | 6.75% | ' | ' | 4.88% | 4.88% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000,000 |
Debt repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,000,000 | ' | 120,000,000 | ' | 20,000,000 | ' | ' | 39,000,000 | ' | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused Credit | ' | ' | ' | 816,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin, Eurocurrency Rate loans (as a percent) | ' | ' | ' | ' | 1.25% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin, Base Rate loans (as a percent) | ' | ' | ' | ' | 0.25% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fee payable (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Interest Rate (as a percent) | ' | ' | ' | 2.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 690,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds net of issuance cost | 768,000,000 | 119,000,000 | 1,465,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 418,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discharge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest charges for note repurchase premiums and related write-off of unamortized finance fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | 25,000,000 | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange price of 2015 exchangeable notes (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $47.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate per $1,000 principal amount (in shares per $1,000 principal) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21.0642 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchangeable debt principal amount, basis for exchange, denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum stock price that must be exceeded for exchangeable notes to be exchanged (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the exchange price used to determine the minimum stock price that must be exceeded for exchangeable notes to be exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the average exchange value below which the notes may become exchangeable into shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual percentage of the average exchange value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's non-exchangeable debt borrowing rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 644,000,000 | 690,000,000 | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | 690,000,000 | ' | ' | ' | 455,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount on exchangeable notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,000,000 | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of equity component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92,000,000 | 93,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indicated Market Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $104.71 | ' | ' | ' | $112.76 | ' | ' | ' | ' | ' | $116.50 | ' | ' | ' | $105.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 674,000,000 | ' | ' | ' | 677,000,000 | ' | ' | ' | ' | ' | 804,000,000 | ' | ' | ' | 478,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual coupon interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of discount on exchangeable notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest expense | 239,000,000 | 248,000,000 | 314,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | 39,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term loans and long-term debt due within one year | 322,000,000 | 319,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 276,000,000 | 264,000,000 | ' |
Weighted average interest rate, short-term debt (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.41% | 1.33% | ' |
Capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37,000,000 | ' | ' | ' | ' |
Debt_Details_2
Debt (Details 2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Annual maturities of long-term debt through 2018 | ' |
2014 | $16 |
2015 | 984 |
2016 | 877 |
2017 | 4 |
2018 | $255 |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 1993 | |
item | item | item | ||
Non-income tax assessment | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Estimated amount of income-tax assessment including penalties and interest | $90,000,000 | ' | ' | ' |
Period over which deposit amount of tax assessment will be remitted in monthly installments | '24 months | ' | ' | ' |
Charge created due to unfavorable ruling | 60,000,000 | ' | ' | ' |
Non-income tax refund | 30,000,000 | ' | ' | ' |
Installment payments made | 43,000,000 | ' | ' | ' |
OI Inc. | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Sale of goods containing asbestos from 1948 to 1958 | 40,000,000 | ' | ' | ' |
Approximate number of claims disposed of to date | 393,000 | ' | ' | ' |
Average indemnity payment per claim | 8,600 | ' | ' | ' |
Deferred amounts payable | 12,000,000 | 24,000,000 | ' | ' |
Asbestos-related liability, total amount accrued beginning in 1993 through 2013 before insurance recoveries | 4,300,000,000 | ' | ' | 975,000,000 |
Additional estimated period that result in an annual charge, if future comprehensive review of asbestos-related liabilities is not determined | '1 year | ' | ' | ' |
Asbestos related charges | $145,000,000 | ' | ' | ' |
Number of Plaintiffs and Claimants Asbestos Claims Pending [Roll Forward] | ' | ' | ' | ' |
Pending at beginning of year (in number of litigants) | 2,600 | 4,600 | 5,900 | ' |
Disposed (in number of litigants) | 1,700 | 4,400 | 4,500 | ' |
Filed (in number of litigants) | 1,700 | 2,400 | 3,200 | ' |
Pending at end of year (in number of litigants) | 2,600 | 2,600 | 4,600 | ' |
OI Inc. | Damages unspecified or sufficient to invoke jurisdictional minimum | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Percentage of asbestos plaintiffs, approximate percentage | 80.00% | ' | ' | ' |
OI Inc. | Damages of $15 million or less | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Percentage of asbestos plaintiffs, approximate percentage | 16.00% | ' | ' | ' |
OI Inc. | Damages greater than $15 million but less than $100 million | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Percentage of asbestos plaintiffs, approximate percentage | 3.00% | ' | ' | ' |
OI Inc. | Damages equal to or greater than $100 million | ' | ' | ' | ' |
Percentage of asbestos plaintiffs | ' | ' | ' | ' |
Percentage of asbestos plaintiffs, fewer than percentage | 1.00% | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Net Effect of Exchange Rate Fluctuations | Change in Certain Derivative Instruments | Employee Benefit Plans | Accumulated Other Comprehensive Loss | ||
Increase (Decrease) Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | ' | ' |
Balance at beginning of the period | ($1,080) | ($1,465) | $455 | ($7) | ($1,913) | ($1,465) |
Change before reclassifications | ' | ' | -226 | 1 | 503 | 278 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | 1 | 139 | 140 |
Tax effect | ' | ' | ' | ' | -33 | -33 |
Other comprehensive income attributable to the Company | ' | ' | -226 | 2 | 609 | 385 |
Balance at end of the period | ($1,080) | ($1,465) | $229 | ($5) | ($1,304) | ($1,080) |
Stock_Options_and_Other_Stock_2
Stock Options and Other 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 |
Stock Options and Other Stock Based Compensation | ' | ' | ' |
Shares available for grants under the plans | 4,644,000 | ' | ' |
Compensation cost for all grants of shares and units | $11 | $11 | $1 |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Number of options may be exercised in whole or in part during the first year after the date granted | 1,414,000 | ' | ' |
Stock Options | Shares granted to employees prior to March 22, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Number of options may be exercised in whole or in part during the first year after the date granted | 0 | ' | ' |
Options expiration period | '10 years | ' | ' |
Stock Options | Shares granted to employees after March 21, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Number of options may be exercised in whole or in part during the first year after the date granted | 0 | ' | ' |
Percentage of options exercisable per year beginning on the first anniversary from date of option granted | 25.00% | ' | ' |
Options expiration period | '7 years | ' | ' |
Stock Options | Shares granted to employees after March 21, 2005 | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Fair value options, amortization period | '1 year | ' | ' |
Stock Options | Shares granted to employees after March 21, 2005 | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Fair value options, amortization period | '4 years | ' | ' |
Stock_Options_and_Other_Stock_3
Stock Options and Other Stock Based Compensation (Details 2) (Stock Options, USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Options | ' | ' | ' |
Number of Shares | ' | ' | ' |
Options outstanding, Beginning balance (in shares) | 3,735 | ' | ' |
Granted (in shares) | 354 | ' | ' |
Exercised (in shares) | -1,414 | ' | ' |
Forfeited or expired (in shares) | -254 | ' | ' |
Options outstanding, ending balance (in shares) | 2,421 | 3,735 | ' |
Options vested or expected to vest (in shares) | 2,354 | ' | ' |
Options exercisable (in shares) | 1,538 | ' | ' |
Weighted Average Exercise Price (per share) | ' | ' | ' |
Options outstanding, Beginning balance (in dollars per share) | $22.65 | ' | ' |
Granted (in dollars per share) | $26.10 | ' | ' |
Exercised (in dollars per share) | $17.52 | ' | ' |
Forfeited or expired (in dollars per share) | $28.90 | ' | ' |
Options outstanding, Closing balance (in dollars per share) | $25.50 | $22.65 | ' |
Options vested or expected to vest (in dollars per share) | $25.48 | ' | ' |
Options exercisable (in dollars per share) | $25.04 | ' | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' | ' |
Options outstanding, Closing balance | '3 years 4 months 24 days | ' | ' |
Options vested or expected to vest | '3 years 4 months 24 days | ' | ' |
Options exercisable | '2 years 4 months 24 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Options outstanding, Closing balance (in dollars) | $30 | ' | ' |
Options vested or expected to vest (in dollars) | 29 | ' | ' |
Options exercisable (in dollars) | 21 | ' | ' |
Weighted average grant-date fair value of options granted (in dollars per share) | $12.39 | $10.63 | $13.70 |
Aggregate intrinsic value of options exercised (in dollars) | 16 | 3 | 4 |
Aggregate cash received from options exercised (in dollars) | $24 | $4 | $5 |
Weighted average assumptions used to estimate the fair value of each option grant | ' | ' | ' |
Expected life of options (years) | '5 years | '4 years 9 months | '4 years 9 months |
Expected stock price volatility (as a percent) | 55.30% | 56.60% | 53.20% |
Risk-free interest rate (as a percent) | 0.90% | 0.80% | 1.70% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Stock_Options_and_Other_Stock_4
Stock Options and Other Stock Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Common stock distribution ratio | 1 | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Unrecognized compensation cost of unvested stock options, restricted shares restricted share units and performance vested restricted share units (in dollars) | $16 | ' | ' |
Weighted average period during which unrecognized compensation costs would be recognized | '2 years | ' | ' |
Shares granted to directors prior to 2008 | ' | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Period within which shares vested cannot be sold | '3 years | ' | ' |
Stock Options | Shares granted to employees after March 21, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Percentage of shares vested per year beginning on first anniversary | 25.00% | ' | ' |
Restricted Shares and Restricted Share Units | Shares granted to employees prior to March 22, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Period after which shares granted can be vested | '3 years | ' | ' |
Restricted Shares and Restricted Share Units | Shares granted to employees after March 21, 2005 | Minimum | ' | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Fair value of restricted shares, amortization period | '1 year | ' | ' |
Restricted Shares and Restricted Share Units | Shares granted to employees after March 21, 2005 | Maximum | ' | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Fair value of restricted shares, amortization period | '4 years | ' | ' |
Restricted Shares | ' | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Nonvested, beginning balance (in shares) | 465,000 | ' | ' |
Granted (in shares) | 198,000 | ' | ' |
Vested (in shares) | -176,000 | ' | ' |
Forfeited (in shares) | -30,000 | ' | ' |
Nonvested, ending balance (in shares) | 457,000 | 465,000 | ' |
Nonvested, Beginning balance (in dollars per share) | $22.34 | ' | ' |
Granted (in dollars per share) | $26.49 | $22.39 | $29.99 |
Vested (in dollars per share) | $21.99 | ' | ' |
Forfeited (in dollars per share) | $24.34 | ' | ' |
Nonvested, Closing balance (in dollars per share) | $24.14 | $22.34 | ' |
Total fair value of shares vested (in dollars) | 5 | 5 | 4 |
Restricted Shares | Shares granted to employees after March 21, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Percentage of shares vested per year beginning on first anniversary | 25.00% | ' | ' |
Restricted Share Units | Shares granted to employees after 2010 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Percentage of shares vested per year beginning on first anniversary | 25.00% | ' | ' |
Restricted Share Units | Shares granted to directors after 2007 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Period after which shares granted can be vested | '1 year | ' | ' |
Performance Vested Restricted Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Period after which shares granted can be vested | '3 years | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Nonvested, beginning balance (in shares) | 813,000 | ' | ' |
Granted (in shares) | 336,000 | ' | ' |
Vested (in shares) | -110,000 | ' | ' |
Forfeited (in shares) | -157,000 | ' | ' |
Nonvested, ending balance (in shares) | 882,000 | 813,000 | ' |
Nonvested, Beginning balance (in dollars per share) | $26.78 | ' | ' |
Granted (in dollars per share) | $26.10 | $22.50 | $29.70 |
Vested (in dollars per share) | $31.12 | ' | ' |
Forfeited (in dollars per share) | $29.55 | ' | ' |
Nonvested, Closing balance (in dollars per share) | $25.49 | $26.78 | ' |
Shares issued | 110,000 | ' | ' |
Total fair value of shares issued (in dollars) | $3 | ' | ' |
Performance Vested Restricted Share Units | Maximum | ' | ' | ' |
Restricted share and Restricted Share Units and Performance Vested Restricted Share Units | ' | ' | ' |
Shares of common stock holder may receive, per unit of vested units | 2 | ' | ' |
Other_Expense_Details
Other Expense (Details) (USD $) | 3 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 |
Other Expense | ' | ' | ' | ' | ' |
Restructuring, asset impairment and related charges | ' | ' | $97 | $168 | $95 |
Gain on China land compensation | ' | 61 | ' | 61 | ' |
Foreign currency exchange losses | ' | ' | 9 | 8 | 6 |
Asset impairment | ' | ' | 22 | ' | 17 |
Charge for goodwill impairment | 0 | ' | ' | ' | 641 |
Asia Pacific | ' | ' | ' | ' | ' |
Other Expense | ' | ' | ' | ' | ' |
Charge for goodwill impairment | ' | ' | ' | ' | $641 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases | ' | ' | ' |
Rent expense attributable to warehouse, office buildings and equipment operating leases | $57 | $76 | $89 |
Minimum future rentals under operating leases | ' | ' | ' |
2014 | 50 | ' | ' |
2015 | 36 | ' | ' |
2016 | 30 | ' | ' |
2017 | 26 | ' | ' |
2018 | 21 | ' | ' |
2019 and thereafter | $48 | ' | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Decrease (increase) in current assets: | ' | ' | ' |
Receivables | $18 | $213 | ($131) |
Inventories | -30 | -74 | -102 |
Prepaid expenses and other | 3 | 19 | 1 |
Increase (decrease) in current liabilities: | ' | ' | ' |
Accounts payable | 128 | -53 | 145 |
Accrued liabilities | 7 | -47 | -13 |
Salaries and wages | -2 | 29 | -3 |
U.S. and foreign income taxes | ' | -6 | -14 |
Changes in components of working capital, total | 124 | 81 | -117 |
Interest paid in cash | 205 | 234 | 274 |
Income taxes paid (received) in cash | ' | ' | ' |
U.S. income taxes paid in cash | ' | ' | 1 |
Non-U.S. Income taxes paid in cash | 128 | 132 | 111 |
Total income taxes paid in cash | $128 | $132 | $112 |
Business_Combinations_Details
Business Combinations (Details) (VDL, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | 31-May-11 |
VDL | ' |
Business Combinations | ' |
Total consideration | $140 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 26, 2010 | Dec. 31, 2013 |
Discontinued Operations, Disposed Venezuelan Subsidiaries | Discontinued Operations, Disposed Venezuelan Subsidiaries | ||||
item | |||||
Subsidiaries | ' | ' | ' | ' | ' |
Number of subsidiaries | ' | ' | ' | 2 | ' |
Loss from discontinued operations | $18 | $2 | ($1) | ' | ' |
Special termination benefits | 8 | ' | ' | ' | ' |
Ongoing costs related to the expropriation | ' | ' | ' | ' | $10 |
Financial_Information_for_Subs2
Financial Information for Subsidiary Guarantors and Non-Guarantors (Details) | Dec. 31, 2013 |
Guarantor Subsidiaries | ' |
Debt Instrument | ' |
Ownership percentage in subsidiaries | 100.00% |
Senior Notes 3.00%, Exchangeable, due 2015 | ' |
Debt Instrument | ' |
Interest rate, stated percentage | 3.00% |
Senior Notes 7.375%, due 2016 | ' |
Debt Instrument | ' |
Interest rate, stated percentage | 7.38% |
Financial_Information_for_Subs3
Financial Information for Subsidiary Guarantors and Non-Guarantors (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Accounts receivable | $943 | $968 | ' | ' |
Inventories | 1,117 | 1,139 | ' | ' |
Other current assets | 490 | 541 | ' | ' |
Total current assets | 2,550 | 2,648 | ' | ' |
Goodwill | 2,059 | 2,079 | 2,082 | 2,821 |
Other non-current assets | 1,178 | 1,102 | ' | ' |
Total other assets | 3,237 | 3,181 | ' | ' |
Property, plant and equipment, net | 2,632 | 2,769 | 2,877 | ' |
Total assets | 8,419 | 8,598 | 8,975 | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 1,782 | 1,688 | ' | ' |
Short-term loans and long-term debt due within one year | 322 | 319 | ' | ' |
Total current liabilities | 2,104 | 2,007 | ' | ' |
Long-term debt | 3,245 | 3,454 | ' | ' |
Other non-current liabilities | 1,019 | 1,621 | ' | ' |
Total share owner's equity of the Company | 1,904 | 1,342 | ' | ' |
Noncontrolling interests | 147 | 174 | ' | ' |
Total liabilities and share owners' equity | 8,419 | 8,598 | ' | ' |
Parent | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Investments in and advances to subsidiaries | 2,154 | 1,592 | ' | ' |
Total other assets | 2,154 | 1,592 | ' | ' |
Total assets | 2,154 | 1,592 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Long-term debt | 250 | 250 | ' | ' |
Total share owner's equity of the Company | 1,904 | 1,342 | ' | ' |
Total liabilities and share owners' equity | 2,154 | 1,592 | ' | ' |
Issuer | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable | 68 | 66 | ' | ' |
Inventories | 203 | 212 | ' | ' |
Other current assets | 20 | 9 | ' | ' |
Total current assets | 291 | 287 | ' | ' |
Investments in and advances to subsidiaries | 2,656 | 2,836 | ' | ' |
Goodwill | 574 | 555 | ' | ' |
Other non-current assets | 121 | 127 | ' | ' |
Total other assets | 3,351 | 3,518 | ' | ' |
Property, plant and equipment, net | 651 | 626 | ' | ' |
Total assets | 4,293 | 4,431 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 293 | 273 | ' | ' |
Total current liabilities | 293 | 273 | ' | ' |
Long-term debt | 1,617 | 1,759 | ' | ' |
Other non-current liabilities | 68 | 31 | ' | ' |
Investments by and advances from parent | 2,315 | 2,368 | ' | ' |
Total liabilities and share owners' equity | 4,293 | 4,431 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable | ' | -15 | ' | ' |
Other current assets | 35 | 18 | ' | ' |
Total current assets | 35 | 3 | ' | ' |
Investments in and advances to subsidiaries | 161 | -178 | ' | ' |
Goodwill | 8 | 8 | ' | ' |
Other non-current assets | 131 | 87 | ' | ' |
Total other assets | 300 | -83 | ' | ' |
Property, plant and equipment, net | 38 | 42 | ' | ' |
Total assets | 373 | -38 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 67 | 60 | ' | ' |
Short-term loans and long-term debt due within one year | ' | 1 | ' | ' |
Total current liabilities | 67 | 61 | ' | ' |
Long-term debt | 12 | 13 | ' | ' |
Other non-current liabilities | 136 | 665 | ' | ' |
Investments by and advances from parent | 158 | -777 | ' | ' |
Total liabilities and share owners' equity | 373 | -38 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable | 875 | 917 | ' | ' |
Inventories | 914 | 927 | ' | ' |
Other current assets | 435 | 514 | ' | ' |
Total current assets | 2,224 | 2,358 | ' | ' |
Goodwill | 1,477 | 1,516 | ' | ' |
Other non-current assets | 926 | 888 | ' | ' |
Total other assets | 2,403 | 2,404 | ' | ' |
Property, plant and equipment, net | 1,943 | 2,101 | ' | ' |
Total assets | 6,570 | 6,863 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 1,422 | 1,355 | ' | ' |
Short-term loans and long-term debt due within one year | 322 | 318 | ' | ' |
Total current liabilities | 1,744 | 1,673 | ' | ' |
Long-term debt | 1,366 | 1,432 | ' | ' |
Other non-current liabilities | 815 | 925 | ' | ' |
Investments by and advances from parent | 2,498 | 2,659 | ' | ' |
Noncontrolling interests | 147 | 174 | ' | ' |
Total liabilities and share owners' equity | 6,570 | 6,863 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Investments in and advances to subsidiaries | -4,971 | -4,250 | ' | ' |
Total other assets | -4,971 | -4,250 | ' | ' |
Total assets | -4,971 | -4,250 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Investments by and advances from parent | -4,971 | -4,250 | ' | ' |
Total liabilities and share owners' equity | ($4,971) | ($4,250) | ' | ' |
Financial_Information_for_Subs4
Financial Information for Subsidiary Guarantors and Non-Guarantors (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Results of Operations | ' | ' | ' |
Net sales | $6,967 | $7,000 | $7,358 |
Cost of goods sold | -5,636 | -5,626 | -5,969 |
Gross profit | 1,331 | 1,374 | 1,389 |
Research, engineering, selling, administrative, and other | -728 | -752 | -1,410 |
Other interest expense | -239 | -248 | -314 |
Interest income | 10 | 9 | 11 |
Other equity earnings | 67 | 64 | 66 |
Other revenue (expense) | 39 | 36 | 27 |
Earnings (loss) from continuing operations before income taxes | 480 | 483 | -231 |
Provision for income taxes | -120 | -108 | -85 |
Earnings (loss) from continuing operations | 360 | 375 | -316 |
Loss from discontinued operations | -18 | -2 | 1 |
Net earnings (loss) | 342 | 373 | -315 |
Net earnings attributable to noncontrolling interests | -13 | -34 | -20 |
Net earnings (loss) attributable to the Company | 329 | 339 | -335 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | 342 | 373 | -315 |
Other comprehensive income (loss) | 379 | -177 | -415 |
Total comprehensive income (loss) | 721 | 196 | -730 |
Comprehensive income attributable to noncontrolling interests | -7 | -42 | -20 |
Comprehensive income (loss) attributable to the Company | 714 | 154 | -750 |
Parent | ' | ' | ' |
Results of Operations | ' | ' | ' |
Net intercompany interest | 20 | 20 | 20 |
Other interest expense | -20 | -20 | -20 |
Equity earnings from subsidiaries | 337 | 339 | -335 |
Earnings (loss) from continuing operations before income taxes | 337 | 339 | -335 |
Earnings (loss) from continuing operations | 337 | 339 | -335 |
Loss from discontinued operations | -8 | ' | ' |
Net earnings (loss) | 329 | 339 | -335 |
Net earnings (loss) attributable to the Company | 329 | 339 | -335 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | 329 | 339 | -335 |
Other comprehensive income (loss) | 385 | -185 | -415 |
Total comprehensive income (loss) | 714 | 154 | -750 |
Comprehensive income (loss) attributable to the Company | 714 | 154 | -750 |
Issuer | ' | ' | ' |
Results of Operations | ' | ' | ' |
Net sales | 1,883 | 1,868 | 1,837 |
Cost of goods sold | -1,555 | -1,530 | -1,549 |
Gross profit | 328 | 338 | 288 |
Research, engineering, selling, administrative, and other | -112 | -165 | -120 |
Net intercompany interest | -20 | -20 | -20 |
Other interest expense | -107 | -107 | -145 |
Equity earnings from subsidiaries | 154 | 193 | -474 |
Other equity earnings | 16 | 15 | 9 |
Other revenue (expense) | 194 | 181 | 216 |
Earnings (loss) from continuing operations before income taxes | -453 | 435 | -246 |
Provision for income taxes | -7 | -10 | -1 |
Earnings (loss) from continuing operations | 446 | 425 | -247 |
Net earnings (loss) | 446 | 425 | -247 |
Net earnings (loss) attributable to the Company | 446 | 425 | -247 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | 446 | 425 | -247 |
Other comprehensive income (loss) | 2 | 5 | -28 |
Total comprehensive income (loss) | 448 | 430 | -275 |
Comprehensive income (loss) attributable to the Company | 448 | 430 | -275 |
Guarantor Subsidiaries | ' | ' | ' |
Results of Operations | ' | ' | ' |
Net sales | 3 | 2 | 3 |
Cost of goods sold | -18 | -13 | -5 |
Gross profit | -15 | -11 | -2 |
Research, engineering, selling, administrative, and other | -83 | -83 | -77 |
Other interest expense | -1 | -1 | -1 |
Other revenue (expense) | 6 | 6 | 1 |
Earnings (loss) from continuing operations before income taxes | -93 | -89 | -79 |
Provision for income taxes | ' | 5 | 2 |
Earnings (loss) from continuing operations | -93 | -84 | -77 |
Loss from discontinued operations | ' | ' | 3 |
Net earnings (loss) | -93 | -84 | -74 |
Net earnings (loss) attributable to the Company | -93 | -84 | -74 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | -93 | -84 | -74 |
Total comprehensive income (loss) | -93 | -84 | -74 |
Comprehensive income (loss) attributable to the Company | -93 | -84 | -74 |
Non-Guarantor Subsidiaries | ' | ' | ' |
Results of Operations | ' | ' | ' |
Net sales | 5,081 | 5,130 | 5,521 |
Cost of goods sold | -4,063 | -4,083 | -4,419 |
Gross profit | 1,018 | 1,047 | 1,102 |
Research, engineering, selling, administrative, and other | -533 | -504 | -1,213 |
Other interest expense | -111 | -120 | -148 |
Interest income | 10 | 9 | 11 |
Other equity earnings | 51 | 49 | 57 |
Other revenue (expense) | -161 | -151 | -190 |
Earnings (loss) from continuing operations before income taxes | 274 | 330 | -381 |
Provision for income taxes | -113 | -103 | -86 |
Earnings (loss) from continuing operations | 161 | 227 | -467 |
Loss from discontinued operations | -10 | -2 | -2 |
Net earnings (loss) | 151 | 225 | -469 |
Net earnings attributable to noncontrolling interests | -13 | -34 | -20 |
Net earnings (loss) attributable to the Company | 138 | 191 | -489 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | 151 | 225 | -469 |
Other comprehensive income (loss) | -201 | -207 | -136 |
Total comprehensive income (loss) | -50 | 18 | -605 |
Comprehensive income attributable to noncontrolling interests | -7 | -42 | -20 |
Comprehensive income (loss) attributable to the Company | -57 | -24 | -625 |
Eliminations | ' | ' | ' |
Results of Operations | ' | ' | ' |
Net sales | ' | ' | -3 |
Cost of goods sold | ' | ' | 4 |
Gross profit | ' | ' | 1 |
Equity earnings from subsidiaries | -491 | -532 | 809 |
Earnings (loss) from continuing operations before income taxes | -491 | -532 | 810 |
Earnings (loss) from continuing operations | -491 | -532 | 810 |
Net earnings (loss) | -491 | -532 | 810 |
Net earnings (loss) attributable to the Company | -491 | -532 | 810 |
Comprehensive Income | ' | ' | ' |
Net earnings (loss) | -491 | -532 | 810 |
Other comprehensive income (loss) | 193 | 210 | 164 |
Total comprehensive income (loss) | -298 | -322 | 974 |
Comprehensive income (loss) attributable to the Company | ($298) | ($322) | $974 |
Financial_Information_for_Subs5
Financial Information for Subsidiary Guarantors and Non-Guarantors (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | $858 | $745 | $675 |
Cash used in discontinued operating activities | -18 | -5 | -2 |
Investing Activities: | ' | ' | ' |
Additions to property, plant and equipment | -361 | -290 | -285 |
Acquisitions, net of cash acquired | -4 | -5 | -144 |
Proceeds from sales and other | 11 | 95 | 3 |
Net payments to fund minority partner loan | -16 | -21 | ' |
Deconsolidation of subsidiary | -32 | ' | ' |
Cash utilized in investing activities | -402 | -221 | -426 |
Financing Activities: | ' | ' | ' |
Net distribution to OI Inc. | -167 | -188 | -165 |
Change in short term debt | 8 | -38 | 80 |
Payments of long term debt | -1,040 | -402 | -1,797 |
Borrowings of long term debt | 768 | 119 | 1,465 |
Net payment for hedging activity | -24 | 27 | -22 |
Contribution from noncontrolling interests | 5 | 3 | ' |
Noncontrolling dividends | -22 | -24 | -35 |
Payment of finance fees | -7 | -1 | -19 |
Cash utilized in financing activities | -479 | -504 | -493 |
Effect of exchange rate change on cash | -7 | 16 | 6 |
Increase (decrease) in cash | -48 | 31 | -240 |
Cash at beginning of year | 431 | 400 | 640 |
Cash at end of year | 383 | 431 | 400 |
Parent | ' | ' | ' |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | 8 | ' | ' |
Cash used in discontinued operating activities | -8 | ' | ' |
Investing Activities: | ' | ' | ' |
Cash utilized in investing activities | -8 | ' | ' |
Financing Activities: | ' | ' | ' |
Net distribution to OI Inc. | -167 | -188 | -165 |
Change in intercompany transactions | 167 | 188 | 165 |
Issuer | ' | ' | ' |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | 375 | 148 | 289 |
Investing Activities: | ' | ' | ' |
Additions to property, plant and equipment | -111 | -73 | -38 |
Acquisitions, net of cash acquired | -4 | ' | -8 |
Proceeds from sales and other | ' | 2 | ' |
Cash utilized in investing activities | -115 | -71 | -46 |
Financing Activities: | ' | ' | ' |
Change in intercompany transactions | -93 | -2 | 86 |
Payments of long term debt | -384 | -185 | -1,262 |
Borrowings of long term debt | 217 | 110 | 933 |
Cash utilized in financing activities | -260 | -77 | -243 |
Guarantor Subsidiaries | ' | ' | ' |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | -43 | -8 | -4 |
Investing Activities: | ' | ' | ' |
Additions to property, plant and equipment | -1 | -1 | -5 |
Cash utilized in investing activities | -1 | -1 | -5 |
Financing Activities: | ' | ' | ' |
Change in intercompany transactions | 74 | -1 | -199 |
Payments of long term debt | -13 | -1 | -1 |
Cash utilized in financing activities | 61 | -2 | -200 |
Increase (decrease) in cash | 17 | -11 | -209 |
Cash at beginning of year | 10 | 21 | 230 |
Cash at end of year | 27 | 10 | 21 |
Non-Guarantor Subsidiaries | ' | ' | ' |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | 520 | 649 | 319 |
Cash used in discontinued operating activities | -10 | -5 | -2 |
Investing Activities: | ' | ' | ' |
Additions to property, plant and equipment | -249 | -216 | -242 |
Acquisitions, net of cash acquired | ' | -5 | -136 |
Proceeds from sales and other | 11 | 93 | 3 |
Net payments to fund minority partner loan | -16 | -21 | ' |
Deconsolidation of subsidiary | -32 | ' | ' |
Cash utilized in investing activities | -286 | -149 | -375 |
Financing Activities: | ' | ' | ' |
Change in intercompany transactions | -150 | -229 | 17 |
Change in short term debt | 8 | -38 | 80 |
Payments of long term debt | -643 | -216 | -534 |
Borrowings of long term debt | 551 | 9 | 534 |
Net payment for hedging activity | -24 | 27 | -22 |
Contribution from noncontrolling interests | 5 | 3 | ' |
Noncontrolling dividends | -22 | -24 | -35 |
Payment of finance fees | -7 | -1 | -19 |
Cash utilized in financing activities | -282 | -469 | 21 |
Effect of exchange rate change on cash | -7 | 16 | 6 |
Increase (decrease) in cash | -65 | 42 | -31 |
Cash at beginning of year | 421 | 379 | 410 |
Cash at end of year | 356 | 421 | 379 |
Eliminations | ' | ' | ' |
Cash Flows | ' | ' | ' |
Cash provided by (used in) continuing operating activities | -2 | -44 | 71 |
Financing Activities: | ' | ' | ' |
Change in intercompany transactions | 2 | 44 | -69 |
Borrowings of long term debt | ' | ' | -2 |
Cash utilized in financing activities | $2 | $44 | ($71) |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (CONSOLIDATED) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowances for losses and discounts on receivables | ' | ' | ' |
Reserves deducted from assets in the balance sheets: | ' | ' | ' |
Balance at beginning of period | $41 | $38 | $40 |
Additions | ' | ' | ' |
Charged to costs and expenses/charged to income | 11 | 17 | 8 |
Other/Charged to other comprehensive income | -5 | -5 | -6 |
Deductions | -8 | -9 | -4 |
Balance at end of period | 39 | 41 | 38 |
Valuation allowance on net deferred tax assets | ' | ' | ' |
Reserves deducted from assets in the balance sheets: | ' | ' | ' |
Balance at beginning of period | 1,010 | 1,012 | 910 |
Additions | ' | ' | ' |
Charged to costs and expenses/charged to income | -14 | -61 | -43 |
Other/Charged to other comprehensive income | -187 | -10 | 89 |
Foreign currency translation | -7 | 3 | -1 |
Other | 31 | 66 | 57 |
Balance at end of period | $853 | $1,010 | $1,012 |