Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q4 | ' | ' |
Entity Registrant Name | 'SIGMA ALDRICH CORP | ' | ' |
Entity Central Index Key | '0000090185 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 119,454,220 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Aggregate market value of the voting stock held by non-affiliates of the registrant | ' | ' | $8,428,183,193 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $2,704 | $2,623 | $2,505 |
Cost of products and services sold | 1,343 | 1,276 | 1,181 |
Gross profit | 1,361 | 1,347 | 1,324 |
Selling, general and administrative expenses | 612 | 605 | 597 |
Research and development expenses | 66 | 69 | 72 |
Restructuring and other charges | 22 | 14 | 8 |
Operating income | 661 | 659 | 647 |
Interest, net | 4 | 4 | 7 |
Total income before taxes | 657 | 655 | 640 |
Provision for income taxes | 166 | 195 | 183 |
Net income | $491 | $460 | $457 |
Net income per share - Basic (in dollars per share) | $4.09 | $3.80 | $3.78 |
Net income per share - Diluted (in dollars per share) | $4.06 | $3.77 | $3.72 |
Weighted average number of shares outstanding - Basic | 120 | 121 | 121 |
Weighted average number of shares outstanding - Diluted | 121 | 122 | 123 |
Dividends per share | $0.86 | $0.80 | $0.72 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $491 | $460 | $457 |
Other comprehensive income, net of tax: | ' | ' | ' |
Foreign currency translation adjustments | 0 | 23 | -39 |
Pension and post retirement, net | 55 | 10 | -22 |
Unrealized gain/(loss) on securities, net | -3 | 3 | -4 |
Unrealized gains on forward exchange contracts, net | -1 | 3 | 0 |
Total other comprehensive income/(loss) | 51 | 39 | -65 |
Comprehensive income | $542 | $499 | $392 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $722 | $724 |
Accounts receivable, net | 382 | 356 |
Inventories | 699 | 722 |
Deferred taxes | 31 | 32 |
Other | 87 | 95 |
Total current assets | 1,921 | 1,929 |
Property, plant and equipment: | ' | ' |
Property, plant and equipment, gross | 2,098 | 2,011 |
Less - accumulated depreciation | -1,292 | -1,182 |
Property, plant and equipment, net | 806 | 829 |
Goodwill, net | 691 | 691 |
Intangibles, net | 255 | 282 |
Other | 132 | 89 |
Total assets | 3,805 | 3,820 |
Current liabilities: | ' | ' |
Notes payable and current maturities of long-term debt | 65 | 383 |
Accounts payable | 152 | 160 |
Payroll | 64 | 55 |
Income taxes | 25 | 26 |
Other | 77 | 77 |
Total current liabilities | 383 | 701 |
Long-term debt | 300 | 300 |
Pension and post-retirement benefits | 73 | 135 |
Deferred taxes | 74 | 64 |
Other | 80 | 74 |
Total liabilities | 910 | 1,274 |
Stockholders' equity: | ' | ' |
Common stock, $1.00 par value; 300 million shares authorized; 202 million shares issued at December 31, 2013 and December 31, 2012; 119 million shares outstanding at December 31, 2013 and 120 million shares outstanding at December 31, 2012 | 202 | 202 |
Capital in excess of par value | 322 | 276 |
Common stock in treasury, at cost, 83 million shares at December 31, 2013 and 82 million shares at December 31, 2012 | -2,407 | -2,271 |
Retained earnings | 4,658 | 4,270 |
Accumulated other comprehensive income | 120 | 69 |
Total stockholders' equity | 2,895 | 2,546 |
Total liabilities and stockholders' equity | $3,805 | $3,820 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock, par value | $1 | $1 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 202,000,000 | 202,000,000 |
Common Stock, shares outstanding | 119,000,000 | 120,000,000 |
Common Stock in treasury, shares | 83,000,000 | 82,000,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Common Stock in Treasury | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
In Millions, except Share data, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2010 | $1,976 | $202 | $194 | ($2,051) | $3,536 | $95 |
Beginning balance (in shares) at Dec. 31, 2010 | ' | 202,000,000 | ' | 80,000,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 457 | ' | ' | ' | 457 | ' |
Other comprehensive income | -65 | ' | ' | ' | ' | -65 |
Cash dividends | -86 | ' | ' | ' | -86 | ' |
Exercise of stock options | 37 | ' | 21 | 16 | ' | ' |
Exercise of stock options (in shares) | ' | 0 | ' | -1,000,000 | ' | ' |
Restricted stock unit grant | 7 | ' | 3 | 4 | ' | ' |
Stock-based compensation expense | 7 | ' | 7 | 0 | ' | ' |
Stock repurchases | -134 | ' | 0 | -134 | ' | ' |
Stock repurchases (in shares) | ' | 0 | ' | 2,000,000 | ' | ' |
Ending balance at Dec. 31, 2011 | 2,199 | 202 | 225 | -2,165 | 3,907 | 30 |
Ending balance (in shares) at Dec. 31, 2011 | ' | 202,000,000 | ' | 81,000,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 460 | ' | ' | ' | 460 | ' |
Other comprehensive income | 39 | ' | ' | ' | ' | 39 |
Cash dividends | -97 | ' | ' | ' | -97 | ' |
Exercise of stock options | 54 | ' | 36 | 18 | ' | ' |
Exercise of stock options (in shares) | ' | 0 | ' | -1,000,000 | ' | ' |
Restricted stock unit grant | 6 | ' | 6 | 0 | ' | ' |
Stock-based compensation expense | 9 | ' | 9 | 0 | ' | ' |
Stock repurchases | -124 | ' | 0 | -124 | ' | ' |
Stock repurchases (in shares) | 99,000,000 | 0 | ' | 2,000,000 | ' | ' |
Ending balance at Dec. 31, 2012 | 2,546 | 202 | 276 | -2,271 | 4,270 | 69 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 202,000,000 | ' | 82,000,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 491 | ' | ' | ' | 491 | ' |
Other comprehensive income | 51 | ' | ' | ' | ' | 51 |
Cash dividends | -103 | ' | ' | ' | -103 | ' |
Exercise of stock options | 35 | ' | 24 | 11 | ' | ' |
Exercise of stock options (in shares) | -788,982 | 0 | ' | -1,000,000 | ' | ' |
Restricted stock unit grant | 6 | ' | 7 | -1 | ' | ' |
Stock-based compensation expense | 15 | ' | 15 | ' | ' | ' |
Stock repurchases | -146 | ' | ' | -146 | ' | ' |
Stock repurchases (in shares) | 101,000,000 | 0 | ' | 2,000,000 | ' | ' |
Ending balance at Dec. 31, 2013 | $2,895 | $202 | $322 | ($2,407) | $4,658 | $120 |
Ending balance (in shares) at Dec. 31, 2013 | ' | 202,000,000 | ' | 83,000,000 | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Dividends payable (in dollars per share) | $0.86 | $0.80 | $0.72 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $491 | $460 | $457 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 138 | 136 | 106 |
Deferred income taxes | -8 | 34 | 6 |
Stock-based compensation expense | 22 | 17 | 18 |
Restructuring Costs | 8 | 0 | 0 |
Other | -15 | -5 | -1 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -32 | -15 | -35 |
Inventories | 12 | -44 | -63 |
Accounts payable | -8 | 10 | 23 |
Income taxes | 3 | -10 | 5 |
Other, net | 30 | -16 | -21 |
Net cash provided by operating activities | 641 | 567 | 495 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -100 | -114 | -104 |
Purchases of short-term investments | -100 | -97 | -65 |
Proceeds from sales of short-term investments | 83 | 97 | 55 |
Acquisitions of businesses, net of cash acquired | 0 | -391 | -75 |
Proceeds from Sale of Property, Plant, and Equipment | 13 | 0 | 0 |
Other, net | -4 | -6 | -2 |
Net cash used in investing activities | -108 | -511 | -191 |
Cash flows from financing activities: | ' | ' | ' |
Net issuance/repayment of short-term debt | -318 | 161 | 81 |
Repayment of long term debt | ' | 0 | -100 |
Dividends | -103 | -97 | -86 |
Share repurchases | -146 | -124 | -134 |
Proceeds from exercise of stock options | 27 | 41 | 34 |
Excess tax benefits from stock-based payments | 7 | 13 | 5 |
Net cash used in financing activities | -533 | -6 | -200 |
Effect of foreign currency exchange rate changes on cash | -2 | 9 | -8 |
Net change in cash and cash equivalents | -2 | 59 | 96 |
Cash and cash equivalents at January 1 | 724 | 665 | 569 |
Cash and cash equivalents at December 31 | 722 | 724 | 665 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Income taxes paid | 160 | 156 | 162 |
Interest paid, net of capitalized interest | $4 | $8 | $13 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Nature of Operations. The Company develops, manufactures, purchases and distributes a broad range of high quality biochemical and organic chemical products, kits and services that are used in scientific research, including genomic and proteomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical, diagnostics and high technology manufacturing. | |
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Financial Instruments. Financial instruments are recorded at fair value, except as described in Note 8 – Long-Term Debt. | |
Sales. Product sales, which include shipping and handling fees billed to customers, are recognized upon transfer of title of the product to the customer, which generally occurs upon shipment to the customer, and is not dependent upon any post-shipment obligations. Sales of services are recognized utilizing the proportional performance method, whereby sales for each stage of a project are recognized based upon the stage's cost as a proportion of the total cost that will be incurred for that project. | |
R&D. Expenditures relating to the development of new products, services and processes, including significant improvements to existing products, services or processes, are expensed as incurred as R&D. | |
Income Taxes. The provision for income taxes is based on pretax income reported in the consolidated statements of income and currently enacted tax rates for each jurisdiction. No provision has been made for U.S. income taxes on the undistributed earnings of the Company's international subsidiaries where the earnings are considered permanently reinvested. | |
Deferred tax assets and liabilities are recognized for the future tax benefits or liabilities attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance when it believes that such assets may not be recovered, taking into consideration historical operating results, expectations of future earnings, changes in its operations and the expected timing of the reversals of existing temporary differences. | |
Cash and Cash Equivalents. Cash and cash equivalents include cash on hand and investments with original maturities of less than three months. | |
Property, Plant and Equipment. The cost of property, plant and equipment is depreciated over the estimated useful lives of the assets using the straight-line method with lives generally ranging from 3 to 12 years for machinery and equipment, 3 to 7 years for information technology and 15 to 40 years for buildings and improvements. Depreciation expense was $111, $104 and $89 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company capitalizes interest as part of the cost of constructing major facilities and equipment. | |
Goodwill. ASC Subtopic 350-20 "Goodwill" requires the Company to assess goodwill for impairment rather than to systematically amortize goodwill against earnings. This goodwill impairment test compares the fair value of a reporting unit to its carrying amount, including goodwill. The Company operates as one reporting unit and its fair value exceeds its carrying value, including goodwill. The Company has determined that no impairment of goodwill existed at December 31, 2013 or 2012. | |
Long-Lived Assets. Long-lived assets are reviewed for impairment whenever conditions indicate that the carrying value of the assets may not be fully recoverable. Such impairment tests are based on a comparison of the pretax undiscounted cash flows expected to be generated by the asset to the recorded value of the asset. If impairment is indicated, the asset value is written down to its market value if readily determinable or its estimated fair value based on discounted cash flows. Any significant unanticipated changes in business or market conditions that vary from current expectations could have an impact on the fair value of these assets and any potential associated impairment. The Company has determined that no indications of impairment existed at December 31, 2013 or 2012. | |
Foreign Currency Translation. Most of the Company's non-U.S. operations use local currency as their functional currency. Subsidiaries that do not use the U.S. Dollar as their functional currency translate assets and liabilities at period end exchange rates and profit and loss accounts at the weighted average exchange rates during the reporting period. Resulting translation gains and losses are included as a separate component of stockholders' equity in AOCI. Assets and liabilities denominated in a currency other than the subsidiary's functional currency are translated to the subsidiary's functional currency at period end exchange rates. Resulting gains and losses are recognized in the consolidated statements of income. | |
Use of Estimates. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of sales and expenses during the periods presented. Actual results could differ from those estimates under different assumptions or conditions. | |
Reclassifications. The accompanying consolidated financial statements for prior years contain certain reclassifications to conform with the presentation used in 2013. | |
Effect of New Accounting Standards | |
In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" that requires entities to disclose either on the face of or in the notes to the financial statements the effects of reclassifications out of AOCI. For items reclassified out of AOCI and into net income in their entirety, entities must disclose the effect of the reclassification on each affected net income item. For items that are not reclassified in their entirety into net income, entities must provide a cross reference to other required disclosures. This ASU does not change the items currently reported in other comprehensive income and is effective for annual reporting periods beginning after December 15, 2012 and interim periods within those years. The adoption of these provisions did not have a material impact on the consolidated financial statements of the Company. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||
Allowance for Doubtful Accounts | ' | ||||||||
Allowance for Doubtful Accounts | |||||||||
Changes in the allowance for doubtful accounts for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 7 | $ | 6 | |||||
Additions | 1 | 1 | |||||||
Deductions | (1 | ) | — | ||||||
Balance, end of year | $ | 7 | $ | 7 | |||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
The principal categories of inventories at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 575 | $ | 585 | |||||
Work in process | 27 | 36 | |||||||
Raw materials | 97 | 101 | |||||||
Total | $ | 699 | $ | 722 | |||||
Inventories are determined using a weighted average actual cost method and are valued at the lower of cost or market. | |||||||||
The Company regularly reviews inventories on hand and records a provision for slow-moving and obsolete inventory, inventory not meeting quality standards and inventory subject to expiration. The provision for slow-moving and obsolete inventory is based on current estimates of future product demand, market conditions and related management judgment. Any significant unanticipated changes in future product demand or market conditions that vary from current expectations could have an impact on the value of inventories. |
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment, net | ' | ||||||||
Property, Plant and Equipment, net | |||||||||
The principal categories of property, plant and equipment, net at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Land | $ | 56 | $ | 57 | |||||
Buildings and improvements | 854 | 843 | |||||||
Machinery and equipment | 1,099 | 1,050 | |||||||
Construction in progress | 89 | 61 | |||||||
Less - accumulated depreciation | (1,292 | ) | (1,182 | ) | |||||
Property, plant and equipment, net | $ | 806 | $ | 829 | |||||
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
NOTE 5: Acquisitions | ||||
For the year ended December 31, 2013, the Company did not complete any acquisitions. | ||||
On January 31, 2012, the Company completed its acquisition of all of the outstanding shares of BioReliance, a provider of global biopharmaceutical testing services. BioReliance provides services that include biologic, specialized toxicology and animal health testing to pharmaceutical, biopharmaceutical, diagnostics and other life science customers worldwide. As a provider of biological safety testing, its service offering helps facilitate the development, manufacturing and commercialization of biological drugs and helps enable its clients to register their products worldwide. As a service provider of toxicology studies, BioReliance also enables its clients to launch new small molecule drugs worldwide. BioReliance is headquartered in Rockville, Maryland, with additional operations in Glasgow and Stirling, Scotland and sales offices in Tokyo, Japan and Bangalore, India. | ||||
This acquisition was accounted for using the acquisition method of accounting and, accordingly, its results were included in the Company's consolidated financial statements from the date of acquisition. Total consideration to acquire BioReliance was $353 (net of $11 of cash acquired) and was funded with a combination of existing cash and short-term debt. The process of assigning fair values to the assets acquired and liabilities assumed was complete as of December 31, 2012 and was recognized as follows: | ||||
Assigned Fair Value | ||||
Current assets | $ | 23 | ||
Property, plant and equipment | 44 | |||
Goodwill | 212 | |||
Intangibles: | ||||
Customer relationships | 108 | |||
Technical knowledge | 21 | |||
Trademarks and trade names | 2 | |||
Other | 4 | |||
Other assets | 2 | |||
Deferred tax asset | 5 | |||
Deferred tax liabilities | (48 | ) | ||
Other liabilities | (20 | ) | ||
Total | $ | 353 | ||
Goodwill resulting from the acquisition is largely attributable to the existing workforce of BioReliance and synergies expected to arise as a result of the acquisition. BioReliance's global pharmaceutical testing services are intended to enable the Company to build a specialized services platform that complements its existing product and technology strengths. The objective of the acquisition is to expand the Company's participation in the biological drug market and help forge deeper and stronger strategic ties with existing and new customers. The goodwill was not deductible for tax purposes. | ||||
BioReliance contributed $111 to the Company's 2012 net sales after its acquisition on January 31, 2012. Had the BioReliance acquisition been completed as of the beginning of 2011, the Company's unaudited pro forma net sales for the years ended December 31, 2012 and 2011 would have been $2,632 and $2,631, respectively. Net income of BioReliance was not material to the Company's consolidated statements of income for the years ended December 31, 2012 and 2011, either on a reported or pro forma basis. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible Assets | ||||||||||||||||
The Company's amortizable and unamortizable intangible assets at December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Cost | Accumulated Amortization | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents | $ | 14 | $ | 14 | $ | 9 | $ | 8 | ||||||||
Licenses | 48 | 47 | 22 | 17 | ||||||||||||
Customer relationships | 254 | 255 | 77 | 61 | ||||||||||||
Technical knowledge | 48 | 48 | 19 | 15 | ||||||||||||
Other | 29 | 29 | 23 | 22 | ||||||||||||
Total amortizable intangible assets | $ | 393 | $ | 393 | $ | 150 | $ | 123 | ||||||||
Unamortizable intangible assets: | ||||||||||||||||
Goodwill | $ | 717 | $ | 717 | $ | 26 | $ | 26 | ||||||||
Trademarks and trade names | 20 | 20 | 8 | 8 | ||||||||||||
Total unamortizable intangible assets | $ | 737 | $ | 737 | $ | 34 | $ | 34 | ||||||||
During the year ended December 31, 2013, the Company did not acquire any intangible assets or goodwill. During the year ended December 31, 2012, the Company added $155 of acquired intangible assets and $222 of acquired goodwill for acquisitions made during 2012. | ||||||||||||||||
The Company recorded amortization expense related to amortizable intangible assets of $27, $32 and $17 for the years ended December 31, 2013, 2012 and 2011, respectively. Amortizable intangible assets are amortized over their estimated useful lives, which range from one to twenty years, using the straight-line method. The Company expects to record annual amortization expense for all existing intangible assets in a range from approximately $21 to $24 from 2014 through 2018. | ||||||||||||||||
The changes in net goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Balance, beginning of year | $ | 691 | $ | 466 | ||||||||||||
Acquisitions and divestitures | (2 | ) | 222 | |||||||||||||
Impact of foreign currency exchange rates | 2 | 3 | ||||||||||||||
Balance, end of year | $ | 691 | $ | 691 | ||||||||||||
Acquisition and divestiture activity during the current period is related to the finalization of purchase accounting for certain acquisitions as well as the writeoff of goodwill associated with the sale of the net assets of SAGE Labs in April 2013. |
Notes_Payable
Notes Payable | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Notes Payable [Abstract] | ' | |||||||||||||
Notes Payable | ' | |||||||||||||
Notes Payable | ||||||||||||||
Notes payable consist of the following at December 31, 2013 and 2012: | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Notes payable | ||||||||||||||
Commercial paper (1) | $ | 65 | 0.1 | % | $ | 381 | 0.2 | % | ||||||
$200.0 European revolving credit facility, due | — | — | — | — | ||||||||||
March 13, 2014 (2) | ||||||||||||||
Sigma-Aldrich Korea limited credit facility, due | — | — | — | — | ||||||||||
June 30, 2014 (3) | ||||||||||||||
Sigma-Aldrich Japan GK credit facilities (4) | — | — | — | — | ||||||||||
Other short-term credit facilities (5) | — | — | 2 | 1.5 | % | |||||||||
Total notes payable | $ | 65 | 0.1 | % | $ | 383 | 0.2 | % | ||||||
-1 | The Company has a $600 five-year revolving credit facility with a syndicate of banks in the United States that supports the Company's commercial paper program. On December 2, 2013, the Company entered into an amendment to extend the termination date of the facility to May 10, 2018 from May 10, 2017. At December 31, 2013 and December 31, 2012, the Company did not have any borrowings outstanding under this facility. However, the amount available under the facility is reduced by the amount of commercial paper outstanding. The facility contains financial covenants that require the maintenance of a ratio of consolidated debt to total capitalization of no more than 65.0 percent and an aggregate amount of subsidiary debt plus consolidated secured debt of no more than 25.0 percent of total net worth. The Company's total consolidated debt as a percentage of total capitalization and aggregate amount of subsidiary debt plus consolidated secured debt as a percentage of total net worth, as defined in the underlying credit agreement, was 11.7 percent and 0.0 percent, respectively, at December 31, 2013. | |||||||||||||
-2 | This facility contains financial covenants that require the maintenance of consolidated net worth of at least $750, a ratio of consolidated debt to total capitalization of no more than 55.0 percent and an aggregate amount of subsidiary debt plus consolidated secured debt of no more than 25.0 percent of total net worth. The Company's consolidated net worth, consolidated debt as a percentage of total capitalization and aggregate amount of subsidiary debt plus consolidated secured debt as a percentage of total net worth, as defined in the underlying credit agreement, were $2,754, 11.7 percent and 0.0 percent, respectively, at December 31, 2013. | |||||||||||||
-3 | There were no outstanding borrowings under this facility, which had a total commitment of 20 billion Korean Won ($19), at December 31, 2013. | |||||||||||||
-4 | Sigma-Aldrich Japan GK has two credit facilities having a total commitment of 2 billion Japanese Yen ($19), with one facility due April 30, 2014 and the other representing a line of credit with no expiration. There were no borrowings under the facilities at December 31, 2013. | |||||||||||||
-5 | There were no borrowings under these facilities, which have total commitments in U.S. Dollar equivalents of $3, at December 31, 2013. | |||||||||||||
The Company has provided guarantees with respect to certain subsidiaries for any outstanding borrowings from the European revolving credit facility and the short-term credit facilities of the wholly-owned Korean and Japanese subsidiaries. At December 31, 2013, there were no existing events of default that would require the Company to honor these guarantees. | ||||||||||||||
As of December 31, 2013, the Company had sufficient net worth to allow for borrowing the full capacity under each facility without any restriction related to compliance with the respective financial debt covenants. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Long-term Debt | ' | |||||||||||||
Long-Term Debt | ||||||||||||||
Long-term debt consists of the following at December 31, 2013 and 2012: | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Senior notes, due November 1, 2020 (1) | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
Total long-term debt | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
-1 | The Company has $300 of 3.375% Senior Notes due November 1, 2020. Interest on the notes is payable May 1 and November 1 of each year. The notes may be redeemed, in whole or in part at the Company's option, (i) at any time at specific redemption prices plus accrued interest or (ii) three months prior to the maturity date at a redemption price equal to 100% percent of the principal amount plus accrued interest. | |||||||||||||
Total interest expense incurred on short-term and long-term debt, net of amounts capitalized, was $9, $8 and $13 in 2013, 2012 and 2011, respectively. | ||||||||||||||
The fair value of long-term debt was approximately $298 and $315 at December 31, 2013 and 2012, respectively. The fair value of long-term debt was based upon a discounted cash flow analysis that used the aggregate cash flows from principal and interest payments over the life of the debt and current market interest rates. |
Financial_Derivatives_and_Risk
Financial Derivatives and Risk Management | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Financial Derivatives and Risk Management | ' | ||||||||||
Financial Derivatives and Risk Management | |||||||||||
The Company transacts business in many parts of the world and is subject to risks associated with changing foreign currency exchange rates. Accordingly, the Company uses both derivative instruments designated as cash flow hedges as well as derivative instruments that are not designated as hedges to help mitigate this risk. These derivative instruments are comprised of foreign currency forward exchange contracts, which are classified within Level 2 of the fair value hierarchy as their fair value is determined by using foreign currency market spot rates and forward points observable at commonly quoted intervals. The Company does not enter into foreign currency contracts for speculative trading purposes. | |||||||||||
Cash Flow Hedges | |||||||||||
A significant portion of the Company's cost of products and services sold is denominated in the U.S. Dollar, while approximately 60 percent of the Company's net sales are denominated in other currencies. Intercompany inventory purchases, which are sourced primarily from subsidiaries with U.S. Dollar functional currencies, are sold to customers by international subsidiaries in other local currencies. In the third quarter of 2012, the Company implemented a program to utilize foreign currency forward exchange contracts to mitigate the foreign currency risk associated with these forecasted intercompany inventory purchases. | |||||||||||
These foreign currency forward exchange contracts have been designated as hedges of the variability of cash flows related to forecasted inventory purchases due to changes in foreign currency exchange rates. Changes in fair value of these derivatives are deferred in AOCI within stockholders' equity until the underlying hedged items are recognized in net income. Accordingly, the Company records cash flow hedge gains or losses within cost of products and services sold when the related inventory is sold to a customer. To the extent any portion of the hedge contract is determined to be ineffective, the increase or decrease in value of the contract prior to maturity will be recognized in income immediately. The cash flow impact from these derivatives is classified in the operating activities section of the Company's consolidated statements of cash flows, which is the same category as the underlying items being hedged. Gains or losses related to the ineffective portion of these hedging instruments were not material for the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, the Company had a notional principal amount of $298 and $254, respectively, in foreign currency forward exchange contracts outstanding. | |||||||||||
The following table summarizes the fair values of the foreign currency forward exchange contracts designated as cash flow hedges at December 31, 2013 and 2012: | |||||||||||
Years ended December 31, | |||||||||||
Item | Reporting Location | 2013 | 2012 | ||||||||
Forward exchange contracts asset derivative | Other current assets | $ | 5 | $ | 6 | ||||||
Forward exchange contracts liability derivative | Other current liabilities | 6 | 3 | ||||||||
Gain recognized in AOCI, net | AOCI | 2 | 3 | ||||||||
The following table summarizes the effect of the foreign currency forward exchange contracts designated as cash flow hedges on the Company's consolidated statements of comprehensive income for the years ended December 31, 2013 and 2012, net of immaterial tax effects. | |||||||||||
Years ended December 31, | |||||||||||
Item | Reporting Location | 2013 | 2012 | ||||||||
Gain recognized in OCI, net | OCI | $ | 4 | $ | 3 | ||||||
Gain reclassified from AOCI into net income | Costs of products and services sold | 5 | — | ||||||||
As of December 31, 2013, the majority of these contracts are in established currencies including the Euro, Japanese Yen and British Pound. During the next 12 months, the Company expects an immaterial amount of unrealized gains included in AOCI, based on their valuation as of December 31, 2013, will be reclassified into income. The Company generally does not hedge its exposure to the exchange rate variability of future cash flows beyond the next ensuing twenty-four months. | |||||||||||
Derivatives Not Designated As Hedging Instruments | |||||||||||
The Company also uses foreign currency forward exchange contracts, which are not designated as hedging instruments, to hedge the value of certain intercompany receivables and payables denominated in foreign currencies. The Company's objective is to minimize the impact of foreign currency exchange rate changes during the period of time between the original transaction date and its cash settlement. Gains and losses on these contracts are recorded in SG&A, based on the difference in the contract rate and the spot rate at the end of each month for all contracts still in force, and are typically offset either partially or completely by transaction gains and losses on the related intercompany receivables and payables. The duration of the contracts typically does not exceed six months. As of December 31, 2013, the majority of these contracts are in established currencies including the Euro, British Pound and Japanese Yen. The impact of these contracts was not material to the consolidated financial statements as of and for the years ended December 31, 2013 and 2012. The notional amount of open foreign currency forward exchange contracts at December 31, 2013 and 2012 was $199 and $196, respectively. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Lease Commitments | ' | ||||
Lease Commitments | |||||
The Company and its subsidiaries lease manufacturing, office and warehouse facilities and computer equipment under non-cancelable operating leases expiring at various dates. Rent expense was $43, $42 and $41 in 2013, 2012, and 2011, respectively. Minimum rental commitments for non-cancelable leases in effect at December 31, 2013, are as follows: | |||||
2014 | $ | 32 | |||
2015 | 25 | ||||
2016 | 19 | ||||
2017 | 17 | ||||
2018 | 15 | ||||
2019 and thereafter | 18 | ||||
Restructuring
Restructuring | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring Activities | ' | |||||||||||
Restructuring and Other Charges | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Restructuring costs | $ | 10 | $ | 9 | $ | 8 | ||||||
Licensing dispute settlement | 7 | — | — | |||||||||
Costs related to mergers and acquisitions | 5 | 5 | — | |||||||||
Total restructuring and other charges | $ | 22 | $ | 14 | $ | 8 | ||||||
Restructuring Costs | ||||||||||||
Programs Implemented During 2013 | ||||||||||||
In the third quarter of 2013, the Company committed to a restructuring plan to exit a manufacturing site in Europe. This exit activity impacts approximately 90 employees and is intended to further reduce the Company's fixed cost structure. Total restructuring costs are expected to be $12, comprised of $9 to reduce the value of the assets impacted by these restructuring activities and $3 of employee termination costs. During the year ended December 31, 2013, $10 of these restructuring costs were recognized. | ||||||||||||
Programs Implemented During 2012 | ||||||||||||
In the second quarter of 2012, the Company committed to a restructuring plan to exit various sales office locations in Europe. These exit activities impacted approximately 30 employees and were intended to further reduce the Company's fixed cost structure by streamlining the sales force in Europe. Total restructuring costs associated with this plan were $4 and were incurred during 2012. As of December 31, 2012, all exit activities were complete. | ||||||||||||
In the third quarter of 2012, the Company committed to a restructuring plan to reduce global headcount by approximately 130 employees to further reduce the Company's fixed cost structure. Total restructuring costs associated with this plan were $5 and were incurred during 2012. As of December 31, 2012, all exit activities were complete. | ||||||||||||
Programs Implemented Prior to 2012 | ||||||||||||
In the fourth quarter of 2009, the Company committed to a restructuring plan that included exit activities at five manufacturing sites in the U.S. and Europe. These exit activities impacted approximately 240 employees and were intended to reduce the Company's fixed cost structure and better align its global manufacturing and distribution footprint. Total restructuring costs associated with this plan were $41 and were incurred as follows: $8 in 2011, $24 in 2010 and $9 in 2009. As of December 31, 2011, all exit activities were complete. | ||||||||||||
Licensing Dispute Settlement | ||||||||||||
Costs of $7 were incurred during the second quarter of 2013 for the settlement of a licensing dispute associated with certain products. | ||||||||||||
Costs Related to Mergers and Acquisitions | ||||||||||||
Third party costs of $5 associated with merger and acquisition activity were incurred during the second quarter of 2013. Third party costs of $5 were incurred during the first quarter of 2012 related to the January 2012 acquisition of BioReliance and the March 2012 acquisition of Research Organics. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The components of income before income taxes consist of the following for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States operations | $ | 365 | $ | 386 | $ | 438 | |||||||
International operations | 292 | 269 | 202 | ||||||||||
Total income before taxes | $ | 657 | $ | 655 | $ | 640 | |||||||
The provision for income taxes consists of the following for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 118 | $ | 108 | $ | 136 | |||||||
State and local | 12 | 13 | 8 | ||||||||||
International | 40 | 40 | 38 | ||||||||||
Total current | 170 | 161 | 182 | ||||||||||
Deferred: | |||||||||||||
Federal | (5 | ) | 15 | (6 | ) | ||||||||
State and local | (3 | ) | 3 | (3 | ) | ||||||||
International | 4 | 16 | 10 | ||||||||||
Total deferred | (4 | ) | 34 | 1 | |||||||||
Provision for income taxes | $ | 166 | $ | 195 | $ | 183 | |||||||
The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and the Company's effective tax rate are as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 35 | Â % | 35 | Â % | 35 | Â % | |||||||
U.S. manufacturing deduction | (1.1 | ) | (1.2 | ) | (2.0 | ) | |||||||
State and local income taxes, net of federal benefit | 1 | 1.7 | 0.8 | ||||||||||
Research and development credits | (0.6 | ) | — | (0.6 | ) | ||||||||
International tax rates | (6.8 | ) | (5.2 | ) | (3.5 | ) | |||||||
Tax audits and unrecognized tax positions | 0.6 | (0.2 | ) | (0.8 | ) | ||||||||
Tax rate and law changes | (1.4 | ) | (0.2 | ) | — | ||||||||
Other, net | (1.4 | ) | (0.1 | ) | (0.3 | ) | |||||||
Total effective tax rate | 25.3 | Â % | 29.8 | Â % | 28.6 | Â % | |||||||
The tax audits and unrecognized tax positions provided a net benefit in 2012 and 2011 as a result of statute of limitation expirations of open examination periods by the taxing authorities. The international taxes benefit is primarily the result of certain countries in which the Company operates having lower statutory tax rates than the U.S. statutory tax rate and for 2012 and 2011, the benefits associated with certain international restructurings. The tax rate and law changes benefit in 2013 was primarily the result of changes in the UK statutory tax rate and the retroactive extension of the 2012 U.S. R&D tax credit in 2013. | |||||||||||||
Undistributed earnings of the Company's international subsidiaries amounted to approximately $1,417 at December 31, 2013. No U.S. income taxes have been provided for these undistributed earnings as the Company intends to indefinitely reinvest these earnings abroad. If the Company were to distribute these earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for international tax credits) and withholding taxes payable to various international jurisdictions. At this time, it is not practicable to determine the amount of deferred income taxes that would be payable on the unremitted international earnings of the Company, assuming such earnings were distributed. | |||||||||||||
Deferred income tax provisions reflect the effect of temporary differences between consolidated financial statement and tax reporting of income and expense items. The net deferred tax assets/liabilities at December 31, 2013 and 2012 resulted from the following temporary differences: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 23 | $ | 27 | |||||||||
Net operating loss carryforwards | 9 | 14 | |||||||||||
Post-retirement benefits and other employee benefits | 43 | 46 | |||||||||||
Pension benefits | 4 | 20 | |||||||||||
Other | 22 | 19 | |||||||||||
Total deferred tax assets | 101 | 126 | |||||||||||
Valuation allowances | (4 | ) | (5 | ) | |||||||||
Net deferred tax assets | 97 | 121 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment, and intangibles | (131 | ) | (138 | ) | |||||||||
Total deferred tax liabilities | (131 | ) | (138 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (34 | ) | $ | (17 | ) | |||||||
The net operating loss carryforwards relate to domestic and international operations. At December 31, 2013, $9 of these deferred tax assets expire between 2014 and 2033. The Company has provided valuation allowances on these deferred tax assets of approximately $4. Realization of deferred tax assets representing net operating loss carryforwards for which a valuation allowance has not been provided is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. | |||||||||||||
Deferred tax assets and liabilities in the preceding table, netted by taxing jurisdiction, are included in the following captions in the Company's consolidated balance sheets at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | $ | 31 | $ | 32 | |||||||||
Other assets | 11 | 17 | |||||||||||
Other accrued expenses | (2 | ) | (2 | ) | |||||||||
Deferred tax liabilities | (74 | ) | (64 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (34 | ) | $ | (17 | ) | |||||||
Uncertain Tax Positions. The Company and its subsidiaries file income tax returns for U.S. federal and various state, local and international taxes, as applicable. The Company is no longer subject to, with limited exceptions, U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2005. | |||||||||||||
The following table sets forth changes in the total gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 33 | $ | 33 | $ | 21 | |||||||
Tax positions related to current year: | |||||||||||||
Additions | 7 | 4 | 6 | ||||||||||
Reductions | — | — | — | ||||||||||
Tax positions related to prior years: | |||||||||||||
Additions | 2 | 1 | 18 | ||||||||||
Reductions | (1 | ) | (1 | ) | (3 | ) | |||||||
Settlements | — | — | — | ||||||||||
Statutes of limitation expirations | (4 | ) | (4 | ) | (9 | ) | |||||||
Balance, end of year | $ | 37 | $ | 33 | $ | 33 | |||||||
At December 31, 2013, 2012 and 2011, respectively, there are $24, $20 and $21 of net unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. | |||||||||||||
The Company believes it is reasonably possible that the unrecognized tax benefits at December 31, 2013 may decrease by approximately $2 due to audit activity and statute of limitation expirations in several jurisdictions within 12 months of December 31, 2013. | |||||||||||||
The Company accrues interest, net of tax and penalties, related to unrecognized tax benefits as components of its income tax provision. The Company recognized no expense in 2013 and approximately $1 of expense and $2 of benefit in 2012 and 2011, respectively, related to interest and penalties. The Company accrued approximately $3 for payment of interest, net of tax and penalties, as of December 31, 2013 and 2012. |
Contingent_Liabilities_and_Com
Contingent Liabilities and Commitments | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent Liabilities And Commitments | ' |
Contingent Liabilities and Commitments | |
The Company is involved in legal proceedings generally incidental to its business, as described below: | |
Insurance and Other Contingent Liabilities and Commitments | |
The Company is subject to potential liabilities arising out of present and future lawsuits and claims related to product liability, personal injury, contract, commercial, intellectual property, tax, environmental, employment and other matters that arise in the ordinary course of business. The Company's operations and a number of its products are highly regulated by various governmental agencies around the world and the Company is periodically involved in reviews, investigations and proceedings by governmental agencies. Failure to meet the standards and licensing requirements of these agencies can lead to penalties which can include substantial fines and/or operating restrictions. | |
The Company accrues for potential liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated. Although the Company believes the amounts reserved are probable and appropriate based on available information, the process of estimating losses involves a considerable degree of judgment by management and the ultimate amounts could vary materially. The Company has self-insured retention limits and has obtained insurance to provide coverage above the self-insured limits for claims made against it, subject to certain limitations and exclusions. At December 31, 2013, (i) reserves have been provided to cover expected payments for these self-insured amounts, (ii) there were no contingent liabilities that management believes are reasonably likely to have a material adverse effect on the Company's consolidated financial condition, results of operations, cash flows or liquidity and (iii) there were no material commitments outside of the normal course of business. Material commitments in the normal course of business include notes payable, long-term debt, lease commitments and pension and other post-retirement benefit obligations which are disclosed in Note 7 – Notes Payable, Note 8 – Long-Term Debt, Note 10 – Lease Commitments and Note 16 – Pension and Post-retirement Benefit Plans. |
Common_Stock
Common Stock | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Common Stock | ' | |||||||||||||
Common Stock | ||||||||||||||
The 2003 LTIP permits the granting of incentive or nonqualified stock options as well as stock appreciation rights, performance shares, RSUs and other stock-based awards. The 2003 LTIP permits the distribution of up to 11,000,000 shares of the Company's common stock, subject to increase for any shares forfeited under other equity compensation plans after the effective date of the 2003 LTIP. Shares issued under the 2003 LTIP may be authorized and unissued shares or treasury shares. This plan permits the award of non-qualified stock options and other stock-based awards to those members of the Board of Directors who are not employees of the Company. Under the 2003 LTIP for 2012 and prior years, a non-employee Director received (i) an initial option to purchase 20,000 shares of Company common stock on the date of his or her initial election as a Director, (ii) 1,200 shares of stock granted on the first business day in January and (iii) additional awards of options to purchase 10,000 shares on the day after each annual shareholders' meeting if the non-employee Director had served on the Board for at least six months. Beginning in 2013, the Board (i) reduced the initial option grant for new Directors to two times their annual cash retainer, (ii) reduced the amount of additional option awards to an amount equal to 60 percent of a director's annual equity grant award and (iii) provided the other 40 percent in time-based RSUs, each of which vest one-third on each grant date anniversary. Incentive and nonqualified stock options may not have an option exercise price of less than the fair market value of the shares at the date of the grant. Including shares forfeited or swapped, 999,368 shares of the Company's common stock remain available for award under the 2003 LTIP at December 31, 2013. | ||||||||||||||
As of December 31, 2013, the Company expects $22 of unrecognized expense related to granted, but nonvested stock-based compensation arrangements to be incurred in future periods. This expense is expected to be recognized over a weighted average period of 1.5 years. | ||||||||||||||
Stock-based compensation expense is included in SG&A. The stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 was $22, $17 and $18, respectively. The tax benefit related to this expense was $7 for the year ended December 31, 2013 and $6 for the years ended December 31, 2012 and 2011. | ||||||||||||||
Stock Options. The Company measures the total fair value of options on the grant date using the Black-Scholes option-pricing model and recognizes each grant's fair value as compensation cost over the period that the option vests. Options generally become exercisable from one to three years following the grant date and expire ten years after the grant date. During the year ended December 31, 2013, the Company granted a total of 791,760 stock options under the 2003 LTIP. | ||||||||||||||
The weighted-average assumptions under the Black-Scholes option-pricing model for stock option grants are as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected term (years) | 5 | 4.9 | 4.8 | |||||||||||
Expected volatility | 31.86% | 32.92% | 30.68% | |||||||||||
Risk-free interest rate | 0.98% | 0.80% | 2.17% | |||||||||||
Dividend yield | 1.13% | 1.11% | 1.13% | |||||||||||
Expected term—The expected term of the options represents the period of time between the grant date and the time the options are either exercised or forfeited, including an estimate of future forfeitures for outstanding options. In accordance with SEC Staff Accounting Bulletin No. 107, the Company has used the "simplified" method for "plain vanilla" options to estimate the expected term of options granted prior to 2008. | ||||||||||||||
Expected volatility—The expected volatility is calculated based on an average of the historical volatility of the Company's stock price for a period approximating the expected term. | ||||||||||||||
Risk-free interest rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and a maturity that approximates the expected term. | ||||||||||||||
Dividend yield—The dividend yield is based on the Company's authorized quarterly dividend, approved by the Board during the respective periods noted above, and the Company's expectation for dividend yields over the expected term. | ||||||||||||||
A summary of the combined stock option activity and other data for the Company's stock option plans, including the 2003 LTIP, the Stock Option Plan of 2000 and the 1998 Directors' Non-Qualified Share Option Plans, for the year ended December 31, 2013 is as follows: | ||||||||||||||
Number of | Wtd. Avg. | Wtd. Avg. | Aggregate | |||||||||||
Stock | Exercise Price | Remaining | Intrinsic | |||||||||||
Options | Per Share | Contractual | Value | |||||||||||
Life | ||||||||||||||
Stock Options outstanding, January 1, 2013 | 3,341,529 | $ | 47.03 | |||||||||||
Granted | 791,760 | 77.34 | ||||||||||||
Exercised | (788,982 | ) | 35.92 | |||||||||||
Forfeited | (38,010 | ) | 68.07 | |||||||||||
Stock Options outstanding, December 31, 2013 | 3,306,297 | 56.7 | 70.34 months | $ | 123 | |||||||||
Stock Options exercisable, December 31, 2013 | 2,214,272 | 47.83 | 52.89 months | $ | 102 | |||||||||
The aggregate intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $35, $52 and $30, respectively. | ||||||||||||||
The weighted average grant date fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $20.11, $18.67 and $17.05 per share, respectively. | ||||||||||||||
Performance Shares. Performance Share awards in 2013, 2012 and 2011 were 104,545, 224,560 and 220,305 shares, respectively. A summary of the criteria for the Performance Share awards can be found in the table below. | ||||||||||||||
2013 (1) | 2012 | 2011 | ||||||||||||
Service Period | Three years | Three years | Three years | |||||||||||
Vesting Period | Cliff vest on December 31, 2015 | Cliff vest on December 31, 2014 | Cliff vest December 31, 2013 | |||||||||||
Payout Range (2) | 0 percent to 200 percent | 0 percent to 200 percent | 0 percent to 150 percent | |||||||||||
Metrics / Performance Criteria | - 40 percent based upon the Company's yearly return on invested capital (calculated each year of the service period) | - 40 percent based upon the Company's three-year average return on equity ratio calculation | - 50 percent based upon the Company's three-year average return on equity ratio calculation | |||||||||||
- 40 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | - 40 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | - 50 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | ||||||||||||
- 20 percent based on the Company's total shareholder return relative to certain competitors | - 20 percent based on the Company's total shareholder return relative to certain competitors | |||||||||||||
(1) Of the 104,545 Performance Shares awarded in 2013, 30,290 were awarded on September 3, 2013 and subject to different performance criteria than those noted within the table above. These Performance Shares have a three year performance period beginning July 1, 2013 and ending June 30, 2016, with 50 percent vesting on the three-year anniversary of the award date and 50 percent vesting on the five-year anniversary of the award date. Performance is measured by the Company achieving "Cumulative Free Cash Flow" during the performance period equal to or greater than $900. For these specific awards, the Company expenses the expected cost of the awards over the respective vesting periods beginning on the grant date with half ending on the three-year anniversary of the award date and half ending on the five-year anniversary of the award date. | ||||||||||||||
(2) The payout range is determined at the end of the performance period. | ||||||||||||||
Subject to meeting the performance criteria, the Performance Share grants will be paid in shares of the Company's common stock. Such shares do not pay or accumulate dividends, if any, during the vesting period. The Company expenses the expected cost of the awards over the vesting period beginning on the grant date and ending on December 31 of the third subsequent fiscal year, except for those discussed in note (1) above. The expense for the entire number of Performance Shares awarded is dependent upon the probability of achieving the specific financial targets and is recorded ratably over the vesting period. | ||||||||||||||
A summary of the Company's nonvested Performance Shares as of December 31, 2013, and changes during the year then ended, is reflected in the table below. | ||||||||||||||
Number of | Wtd. Avg. | |||||||||||||
Performance | Grant | |||||||||||||
Units | Date Fair | |||||||||||||
Value | ||||||||||||||
Nonvested Performance Shares outstanding, January 1, 2013 | 320,485 | $ | 67.97 | |||||||||||
Granted | 104,545 | 75 | ||||||||||||
Vested (1) | (136,282 | ) | 63.95 | |||||||||||
Forfeited (2) | (33,311 | ) | 67.59 | |||||||||||
Nonvested Performance Shares outstanding, December 31, 2013 | 255,437 | 72.45 | ||||||||||||
-1 | Represents the entire amount of Performance Shares which vested during the year ended December 31, 2013. Of these vested Performance Shares, 510 were paid out in 2013 and the remainder were outstanding as of December 31, 2013. | |||||||||||||
-2 | Includes reductions due to employee terminations and reductions as a result of the Company not meeting certain performance targets. | |||||||||||||
The weighted average grant date fair value of Performance Shares granted during the years ended December 31, 2013, 2012 and 2011 was $75.00, $71.73 and $63.89, respectively. | ||||||||||||||
Stock Awards. On January 3, 2012 and 2011, each non-employee Director received 1,200 shares of Company common stock. The 2012 and 2011 stock awards were expensed in the first quarter of 2012 and 2011, respectively, based on the fair market value of the Company's common stock at the date of grant. In 2013, the Company began granting the Directors stock options and RSUs in lieu of common stock awards. | ||||||||||||||
Restricted Stock Units. The Company measures the total fair value of RSUs on the grant date using the Company's stock price at the time of the grant less the present value of the expected dividend stream during the vesting period. During the year ended December 31, 2013, the Company granted a total of 98,165 RSUs. RSUs awarded during the year have a vesting period of three years with some awards vesting one-third each year and most awards cliff vesting at the end of the three year period. The awards are expensed over their respective vesting period. | ||||||||||||||
A summary of the Company's nonvested RSUs as of December 31, 2013, and changes during the year then ended, is reflected in the table below. | ||||||||||||||
Number of | Wtd. Avg. | |||||||||||||
RSUs | Grant | |||||||||||||
Date Fair | ||||||||||||||
Value | ||||||||||||||
Nonvested RSUs outstanding, January 1, 2013 | 50,000 | $ | 66.16 | |||||||||||
Granted | 98,165 | 74.3 | ||||||||||||
Vested (1) | (17,862 | ) | 66.02 | |||||||||||
Forfeited (2) | (6,527 | ) | 71.73 | |||||||||||
Nonvested RSUs outstanding, December 31, 2013 | 123,776 | 72.35 | ||||||||||||
-1 | Represents the entire amount of RSUs that vested during the year ended December 31, 2013. Of the RSUs that vested, 17,862 were paid out in 2013. | |||||||||||||
-2 | Includes reductions due to employee terminations. | |||||||||||||
The weighted average grant date fair value of RSUs granted during the years ended December 31, 2013, 2012 and 2011 was $74.30, $71.45 and $61.24, respectively. |
Company_Operations_by_Business
Company Operations by Business Unit | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Company Operations by Business Unit | ' | ||||||||||||||||
Company Operations by Business Unit | |||||||||||||||||
The business unit structure is the Company's approach to serving customers and reporting sales rather than any internal division used to allocate resources. Net sales for the Company's business units are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Research | $ | 1,402 | $ | 1,398 | $ | 1,427 | |||||||||||
Applied | 629 | 598 | 581 | ||||||||||||||
SAFC | 673 | 627 | 497 | ||||||||||||||
Total | $ | 2,704 | $ | 2,623 | $ | 2,505 | |||||||||||
The Company's Chief Operating Decision Maker is the CEO. The CEO and the Board review profit and loss information on a consolidated basis to assess performance and make overall operating decisions as well as resource allocations. The Company's business units are closely interrelated in their activities and share services such as order entry, billing, technical services, e-commerce, purchasing and inventory control, and also share production and distribution facilities. Additionally, these units are supported by centralized functional areas such as finance, human resources, quality, safety and compliance and information technology. Further, the Company's CEO, CFO and business unit Presidents participate in compensation programs in which a portion of their incentive compensation paid is based upon consolidated Company results for sales growth (and for the business unit Presidents, the sales growth in the business unit for which they are responsible), consolidated Company operating income, consolidated Company free cash flow and individual/business unit objectives based on consolidated Company EPS (and for the business unit Presidents, the profitability for certain sites within their respective business unit). Based on these factors, the Company has concluded that it operates in one segment. | |||||||||||||||||
Sales are attributed to countries based upon the location from which the product was shipped or services were performed. Products shipped from the U.S. to unaffiliated customer destinations outside of the U.S. are presented in the summary below: | |||||||||||||||||
Year | Amount | Year | Amount | Year | Amount | ||||||||||||
2013 | $ | 60 | 2012 | $ | 61 | 2011 | $ | 48 | |||||||||
Geographic financial information is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net sales to unaffiliated customers: | |||||||||||||||||
United States | $ | 1,026 | $ | 987 | $ | 898 | |||||||||||
International | 1,678 | 1,636 | 1,607 | ||||||||||||||
Total | $ | 2,704 | $ | 2,623 | $ | 2,505 | |||||||||||
Long-lived assets at December 31: | |||||||||||||||||
United States | $ | 523 | $ | 549 | $ | 506 | |||||||||||
International | 357 | 351 | 319 | ||||||||||||||
Total | $ | 880 | $ | 900 | $ | 825 | |||||||||||
Pension_and_PostRetirement_Ben
Pension and Post-Retirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Pension and Post-retirement Benefit Plans | ' | |||||||||||||||||||||||||||||||||||
Pension and Post-retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||
The Company maintains several retirement plans covering substantially all U.S. employees and employees of certain international subsidiaries. Pension benefits are generally based on years of service and compensation. The Company also maintains post-retirement medical benefit plans covering some of its U.S. employees. Benefits are subject to deductibles, co-payment provisions and coordination with benefits available under Medicare. The Company has made a determination that the prescription drug benefits it provides are actuarially equivalent to the benefits provided under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. | ||||||||||||||||||||||||||||||||||||
In the fourth quarter of 2012, the Board approved and management communicated changes to our U.S. defined benefit pension plan so that, effective December 31, 2012, the pension plan would be frozen and future retirement service benefits would no longer be accrued under the plan. The freeze of future benefit accruals resulted in a reduction of the Company's projected benefit obligation of $16. As a result of the freeze, participants under the plan are no longer accruing service-based benefits and are being treated as inactive for accounting purposes. Effective January 1, 2013, the affected employees were eligible for additional contributions under an enhanced defined contribution plan. | ||||||||||||||||||||||||||||||||||||
Effective January 1, 2014, the Swiss defined benefit plan was amended from a final pay plan to a cash balance-type plan. The change resulted in a reduction of the Company's projected benefit obligation of $11. | ||||||||||||||||||||||||||||||||||||
The following chart reconciles the funded status of the plans with amounts included in the Company's consolidated balance sheets: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Reconciliation of funded status of the plans and the amounts included in the Company's Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||
Beginning obligations | $ | 178 | $ | 170 | $ | 299 | $ | 260 | $ | 47 | $ | 52 | ||||||||||||||||||||||||
Service cost | — | 10 | 9 | 8 | 1 | 1 | ||||||||||||||||||||||||||||||
Interest cost | 6 | 7 | 8 | 9 | 1 | 2 | ||||||||||||||||||||||||||||||
Participant contributions | — | — | 3 | 3 | 1 | 1 | ||||||||||||||||||||||||||||||
Plan amendments | — | — | (11 | ) | — | — | — | |||||||||||||||||||||||||||||
Plan curtailments | — | (16 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Plan settlements | (7 | ) | — | (6 | ) | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid | (1 | ) | (6 | ) | (7 | ) | (5 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||
Actuarial loss (gain) | (7 | ) | 13 | (12 | ) | 16 | (9 | ) | (8 | ) | ||||||||||||||||||||||||||
Changes in foreign currency exchange rates | — | — | 6 | 8 | — | — | ||||||||||||||||||||||||||||||
Ending obligations | $ | 169 | $ | 178 | $ | 289 | $ | 299 | $ | 39 | $ | 47 | ||||||||||||||||||||||||
Changes in plans assets | ||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 158 | $ | 138 | $ | 228 | $ | 198 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 31 | 19 | 20 | 17 | — | — | ||||||||||||||||||||||||||||||
Employer contributions | — | 7 | 8 | 8 | 1 | — | ||||||||||||||||||||||||||||||
Participant contributions | — | — | 3 | 3 | 1 | 1 | ||||||||||||||||||||||||||||||
Plan settlements | (7 | ) | — | (3 | ) | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid | (1 | ) | (6 | ) | (7 | ) | (5 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||
Changes in foreign currency exchange rates | — | — | 6 | 7 | — | — | ||||||||||||||||||||||||||||||
Ending fair value | $ | 181 | $ | 158 | $ | 255 | $ | 228 | $ | — | $ | — | ||||||||||||||||||||||||
Reconciliation of funded status | ||||||||||||||||||||||||||||||||||||
Funded status | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Net Consolidated Balance Sheet asset/(liability) | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Amounts recognized in the Company's Consolidated Balance Sheets: | ||||||||||||||||||||||||||||||||||||
Non current assets | $ | 12 | $ | — | $ | 2 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | — | — | — | — | (2 | ) | (3 | ) | ||||||||||||||||||||||||||||
Pension and post-retirement benefits | — | (20 | ) | (36 | ) | (71 | ) | (37 | ) | (44 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Reconciliation of amounts recognized in the Company's Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||
Prior service (cost) credit | $ | — | $ | — | $ | 11 | $ | (1 | ) | $ | 4 | $ | 5 | |||||||||||||||||||||||
Net (loss) gain | (30 | ) | (58 | ) | (39 | ) | (65 | ) | 15 | 7 | ||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (30 | ) | $ | (58 | ) | $ | (28 | ) | $ | (66 | ) | $ | 19 | $ | 12 | ||||||||||||||||||||
Accumulated contributions in excess of (less than) net periodic benefit cost | 42 | 38 | (6 | ) | (5 | ) | (58 | ) | (59 | ) | ||||||||||||||||||||||||||
Net amount liability recognized in statement of financial position | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||
New prior service cost | $ | — | $ | — | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net loss (gain) arising during the year | (27 | ) | (11 | ) | 15 | (21 | ) | 9 | 19 | (8 | ) | (8 | ) | 2 | ||||||||||||||||||||||
Effect of changes in foreign currency exchange rates on amounts included in AOCI | — | — | — | — | 2 | (1 | ) | — | — | — | ||||||||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost | ||||||||||||||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit | — | — | — | — | — | — | 1 | 1 | 1 | |||||||||||||||||||||||||||
Amortization or settlement recognition of net loss | (1 | ) | (5 | ) | (4 | ) | (6 | ) | (4 | ) | (2 | ) | — | — | — | |||||||||||||||||||||
Total recognized in other comprehensive loss (income)—pretax | $ | (28 | ) | $ | (16 | ) | $ | 11 | $ | (38 | ) | $ | 7 | $ | 16 | $ | (7 | ) | $ | (7 | ) | $ | 3 | |||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | (31 | ) | $ | (5 | ) | $ | 20 | $ | (28 | ) | $ | 18 | $ | 26 | $ | (6 | ) | $ | (5 | ) | $ | 6 | |||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ||||||||||||||||||||||||||||||||||||
Prior service (cost) credit | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Net loss | — | (1 | ) | (5 | ) | (1 | ) | (4 | ) | (4 | ) | 1 | — | — | ||||||||||||||||||||||
Total estimated amortization | $ | — | $ | (1 | ) | $ | (5 | ) | $ | — | $ | (4 | ) | $ | (4 | ) | $ | 2 | $ | 1 | $ | 1 | ||||||||||||||
The components of the net periodic benefit costs are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Service cost | $ | — | $ | 10 | $ | 8 | $ | 9 | $ | 8 | $ | 9 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Interest cost | 6 | 7 | 7 | 8 | 9 | 9 | 1 | 2 | 3 | |||||||||||||||||||||||||||
Expected return on plan assets | (11 | ) | (11 | ) | (11 | ) | (11 | ) | (10 | ) | (10 | ) | — | — | — | |||||||||||||||||||||
Amortization | 1 | 5 | 5 | 4 | 4 | 2 | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Settlement loss | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | (3 | ) | $ | 11 | $ | 9 | $ | 10 | $ | 11 | $ | 10 | $ | 1 | $ | 2 | $ | 3 | |||||||||||||||||
The rate assumptions associated with the pension and post-retirement medical benefit plans to determine benefit obligations and additional year-end information are as follows:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Assumptions to determine benefit obligations | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.45 | % | 3.6 | % | 3.36 | % | 2.96 | % | 4.8 | % | 3.9 | % | ||||||||||||||||||||||||
Compensation rate increase | n/a | n/a | 2.74 | % | 2.59 | % | n/a | n/a | ||||||||||||||||||||||||||||
Measurement date | 31-Dec | 31-Dec | 31-Dec | 31-Dec | 31-Dec | 31-Dec | ||||||||||||||||||||||||||||||
Additional year-end information | ||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 169 | $ | 178 | $ | 271 | $ | 268 | n/a | n/a | ||||||||||||||||||||||||||
Plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | — | $ | 178 | $ | 189 | $ | 206 | n/a | n/a | ||||||||||||||||||||||||||
Accumulated benefit obligation | — | 178 | 176 | 183 | n/a | n/a | ||||||||||||||||||||||||||||||
Fair value of plan assets | — | 158 | 153 | 140 | n/a | n/a | ||||||||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | — | $ | 178 | $ | 189 | $ | 299 | $ | 39 | $ | 47 | ||||||||||||||||||||||||
Fair value of plan assets | — | 158 | 153 | 228 | — | — | ||||||||||||||||||||||||||||||
The rate assumptions associated with the pension and post-retirement medical benefit plans to determine periodic pension costs are as follows:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Discount rate | 3.6 | % | 4.35 | % | 5.05 | % | 2.96 | % | 3.52 | % | 3.69 | % | 3.9 | % | 4.5 | % | 5.25 | % | ||||||||||||||||||
Expected rate of return on plan assets | 7.75 | % | 8.25 | % | 8.25 | % | 4.87 | % | 4.98 | % | 4.85 | % | n/a | n/a | n/a | |||||||||||||||||||||
Compensation rate increase | n/a | 3.55 | % | 3.55 | % | 2.59 | % | 2.95 | % | 3.05 | % | n/a | n/a | n/a | ||||||||||||||||||||||
The expected employer contributions and benefit payments are shown in the following table for the pension and post-retirement medical benefit plans:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | Expected | ||||||||||||||||||||||||||||||||||
Medical | Medicare | |||||||||||||||||||||||||||||||||||
Cash Flows | Year | United | International | Benefit Plans(1) | Subsidy Receipts | |||||||||||||||||||||||||||||||
States | ||||||||||||||||||||||||||||||||||||
Expected employer contributions | 2014 | $ | — | $ | 6 | $ | 2 | n/a | ||||||||||||||||||||||||||||
Expected benefit payments for year ending December 31st | 2014 | 13 | 6 | 2 | — | |||||||||||||||||||||||||||||||
2015 | 13 | 6 | 2 | — | ||||||||||||||||||||||||||||||||
2016 | 13 | 8 | 2 | — | ||||||||||||||||||||||||||||||||
2017 | 13 | 7 | 3 | — | ||||||||||||||||||||||||||||||||
2018 | 13 | 8 | 3 | — | ||||||||||||||||||||||||||||||||
Next 5 years | 58 | 48 | 13 | 2 | ||||||||||||||||||||||||||||||||
-1 | Expected payments for Post-Retirement Medical Benefit Plans are shown net of the expected Medicare subsidy receipts. | |||||||||||||||||||||||||||||||||||
Pension Plans. For purposes of selecting a discount rate, the present value of the cash flows as of the measurement date is determined using the spot rates from the Mercer Above Mean Yield Curve, and based on the present values, a single equivalent discount rate is developed. This rate is the single uniform discount rate that, when applied to the same cash flows, results in the same present value of the cash flows as of the measurement date. The plans are assumed to continue in force for as long as the assets are expected to be invested. In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held or anticipated to be held by the pension plans and to current forecasts of future rates of return for those asset classes. Cash flow and expenses are taken into consideration to the extent that the expected return would be affected by them. Because assets are held in qualified trusts, expected returns are not reduced for taxes. | ||||||||||||||||||||||||||||||||||||
The assets of the pension plans are invested with professional asset managers to produce a diversified portfolio. The Company believes the investments are sufficiently diversified to maintain a reasonable level of risk without unduly sacrificing return. Target asset allocations and weighted average asset allocations at December 31, 2013 are as follows: | ||||||||||||||||||||||||||||||||||||
Target Allocations | Weighted Average | |||||||||||||||||||||||||||||||||||
Asset Allocations | ||||||||||||||||||||||||||||||||||||
U.S. | International | U.S. | International | |||||||||||||||||||||||||||||||||
Plan | Plans | Plan | Plans | |||||||||||||||||||||||||||||||||
Equity Securities | 57–93% | 38–50% | 75 | % | 45 | % | ||||||||||||||||||||||||||||||
Real Estate | — | 6–12% | — | 10 | % | |||||||||||||||||||||||||||||||
Debt Securities | 10–40% | 36–57% | 25 | % | 41 | % | ||||||||||||||||||||||||||||||
Other | 0–5% | 0–10% | — | 4 | % | |||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Assets | Quoted Prices | Significant Other | Total | |||||||||||||||||||||||||||||||||
in Active Markets for | Observable | |||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||||||||||||
(Level 1(1)) | (Level 2(2)) | |||||||||||||||||||||||||||||||||||
Real estate | $ | — | $ | 22 | $ | 22 | ||||||||||||||||||||||||||||||
Common/collective trust funds — equity | — | 260 | 260 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — government debt | — | 18 | 18 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 126 | 126 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — real estate | — | 1 | 1 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 5 | 4 | 9 | |||||||||||||||||||||||||||||||||
Total | $ | 5 | $ | 431 | $ | 436 | ||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Assets | Quoted Prices | Significant Other | Total | |||||||||||||||||||||||||||||||||
in Active Markets for | Observable | |||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||||||||||||
(Level 1(1)) | (Level 2(2)) | |||||||||||||||||||||||||||||||||||
Corporate stocks — common | $ | 8 | $ | — | $ | 8 | ||||||||||||||||||||||||||||||
Government debt | 8 | — | 8 | |||||||||||||||||||||||||||||||||
Corporate and other non-government debt | 16 | — | 16 | |||||||||||||||||||||||||||||||||
Real estate | — | 22 | 22 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — equity | — | 223 | 223 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — government debt | — | 12 | 12 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 88 | 88 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 4 | — | 4 | |||||||||||||||||||||||||||||||||
Other | — | 5 | 5 | |||||||||||||||||||||||||||||||||
Total | $ | 36 | $ | 350 | $ | 386 | ||||||||||||||||||||||||||||||
-1 | Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. | |||||||||||||||||||||||||||||||||||
-2 | Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets. Equity securities categorized as Level 2 assets are primarily non-exchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets. Valuation is based on the net asset value of fund units held as derived from the fair value of the underlying assets. | |||||||||||||||||||||||||||||||||||
Investment Strategy. The U.S. pension plan's overall investment strategy is to hold a mix of approximately 75 percent of investments in U.S. and International equities and 25 percent in bonds. Equities are managed in passive and managed funds across various asset classes. Bond funds contain government and investment-grade bonds. | ||||||||||||||||||||||||||||||||||||
The trustee has engaged an investment manager for the U.S. pension plan that has the responsibility of selecting investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance meeting the pension plan's investment guidelines. | ||||||||||||||||||||||||||||||||||||
The UK pension plan's overall investment strategy is to hold a mix of approximately 70 percent of investments in equities (42 percent UK equities and 28 percent non-UK equities) and 30 percent in bonds. Equities are managed in passive and managed funds. Bond funds contain government and investment grade bonds. A small portion of investments are held in insured annuities. | ||||||||||||||||||||||||||||||||||||
The Swiss pension plan's overall target investment strategy is to achieve a mix of 27.5 percent equities, 54.5 percent bonds, 15 percent real estate and 3 percent other. Equities are invested in large Swiss companies and institutional funds. Bond funds contain government and investment-grade bonds. Real estate holdings are in an institutional real estate fund. | ||||||||||||||||||||||||||||||||||||
The trustees of the international plans have engaged institutions that are believed to be reputable to invest the various plans' assets in funds with demonstrated historical performance and manage the various plans' assets in accordance with investment guidelines developed by the trustees. | ||||||||||||||||||||||||||||||||||||
Post-Retirement Medical Benefit Plans. For purposes of selecting a discount rate, the present value of the cash flows as of the measurement date is determined using the spot rates from the Mercer Above Mean Yield Curve, and based on the present values, a single equivalent discount rate is developed. This rate is the single uniform discount rate that, when applied to the same cash flows, results in the same present value of the cash flows as of the measurement date. Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement medical benefit plans. Medical costs were assumed to increase at an annual rate of 7.69 percent in 2013, decreasing ratably to a growth rate of 4.5 percent in 2030 and remaining at 4.5 percent per year thereafter. The effects of a one-percentage point increase or decrease in the assumed health care cost trend rates on the aggregate service and interest cost components and on the post-retirement benefit obligations are not material to the Company's consolidated financial statements. Benefits are funded as claims are paid. | ||||||||||||||||||||||||||||||||||||
401(k) Retirement Savings Plan. The Company's 401(k) retirement savings plan provides retirement benefits to eligible U.S. employees in addition to those provided by the pension plan. The 401(k) plan permits participants to voluntarily defer a portion of their compensation, subject to Internal Revenue Code limitations. The Company also contributes a percentage of the employee's salary per year to the account of each eligible employee plus a percentage of the employee's salary deferral. The Company's policy is to fully fund the 401(k) plan. The cost for the 401(k) plan was $22, $11 and $9 for the years ended December 31, 2013, 2012 and 2011 respectively. |
Other_Assets_and_Liabilities
Other Assets and Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets And Liabilities [Abstract] | ' | |||||||
Other Assets and Liabilities | ' | |||||||
Other Assets and Liabilities | ||||||||
Other current assets | ||||||||
Other current assets are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Other receivables | $ | 36 | $ | 36 | ||||
Prepaid expenses | 22 | 29 | ||||||
Certificates of deposit | 27 | 27 | ||||||
Other current assets | 2 | 3 | ||||||
Total other current assets | $ | 87 | $ | 95 | ||||
Other assets | ||||||||
Other assets are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, | |||||||
2012 | ||||||||
Other investments | $ | 11 | $ | 16 | ||||
Cash value of life insurance policies | 34 | 29 | ||||||
Deferred taxes | 11 | 17 | ||||||
Long term certificates of deposit | 33 | — | ||||||
Pension and post-retirement asset | 14 | — | ||||||
Other non-current assets | 29 | 27 | ||||||
Total other assets | $ | 132 | $ | 89 | ||||
Other current liabilities | ||||||||
Other current liabilities are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Legal and professional | $ | 5 | $ | 6 | ||||
Pension and post-retirement liability | 2 | 3 | ||||||
Freight | 7 | 7 | ||||||
Other accrued expenses | 63 | 61 | ||||||
Total other current liabilities | $ | 77 | $ | 77 | ||||
Other liabilities | ||||||||
Other liabilities are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Deferred compensation | $ | 31 | $ | 31 | ||||
Non-current income taxes | 37 | 33 | ||||||
Other non-current liabilities | 12 | 10 | ||||||
Total other non-current liabilities | $ | 80 | $ | 74 | ||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
A reconciliation of basic and diluted EPS, together with the related shares outstanding in millions for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income available to common shareholders | $ | 491 | $ | 460 | $ | 457 | ||||||
Weighted average shares | ||||||||||||
Basic shares | 120 | 121 | 121 | |||||||||
Effect of dilutive securities—options outstanding | 1 | 1 | 2 | |||||||||
Diluted shares | 121 | 122 | 123 | |||||||||
Net income per share—Basic | $ | 4.09 | $ | 3.8 | $ | 3.78 | ||||||
Net income per share—Diluted | $ | 4.06 | $ | 3.77 | $ | 3.72 | ||||||
Potential common shares totaling 1 million were excluded from the calculation of weighted average shares for the years ended December 31, 2013 and 2012, because their effect was considered to be anti-dilutive. There were no common shares excluded from the calculation of weighted average shares for the year ended December 31, 2011. |
Share_Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Repurchase Agreements [Abstract] | ' |
Share Repurchases | ' |
Share Repurchases | |
At December 31, 2013 and 2012, the Company had repurchased a total of 101 million and 99 million shares, respectively, of an authorized repurchase of 110 million shares. There were 119 million shares outstanding as of December 31, 2013. The Company expects to continue to offset in whole or in part the dilutive impact of issuing share-based incentive compensation with future share repurchases. The Company may repurchase additional shares, but the timing and amount, if any, will depend on market conditions and other factors. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Text Block] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2013. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Unrealized Gain (Loss) on cash flow hedges, Net | Total | |||||||||||||||||
Beginning balance | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | ||||||||||
Other comprehensive income before reclassification | — | 51 | 3 | 4 | 58 | ||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (4 | ) | 6 | 5 | 7 | |||||||||||||||
Net current-period other comprehensive income (loss) | — | 55 | (3 | ) | (1 | ) | 51 | ||||||||||||||
Ending balance | $ | 141 | $ | (23 | ) | $ | — | $ | 2 | $ | 120 | ||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2012. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Unrealized Gain (Loss) on cash flow hedges, Net | Total | |||||||||||||||||
Beginning balance | $ | 118 | $ | (88 | ) | $ | — | $ | — | $ | 30 | ||||||||||
Other comprehensive income before reclassification | 23 | 4 | 3 | 3 | 33 | ||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (6 | ) | — | — | (6 | ) | ||||||||||||||
Net current-period other comprehensive income (loss) | 23 | 10 | 3 | 3 | 39 | ||||||||||||||||
Ending balance | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | ||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2011. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Total | ||||||||||||||||||
Beginning balance | $ | 157 | $ | (66 | ) | $ | 4 | $ | 95 | ||||||||||||
Other comprehensive income (loss) before reclassification | (39 | ) | (26 | ) | (3 | ) | (68 | ) | |||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (4 | ) | 1 | (3 | ) | |||||||||||||||
Net current-period other comprehensive income (loss) | (39 | ) | (22 | ) | (4 | ) | (65 | ) | |||||||||||||
Ending balance | $ | 118 | $ | (88 | ) | $ | — | $ | 30 | ||||||||||||
During 2013, amounts reclassified from AOCI include gains of $5 into cost of products and services sold and gains of $2 into SG&A. During 2012 and 2011, amounts reclassified from AOCI include losses of $6 and $3 into SG&A, respectively. These adjustments are net of immaterial tax effects. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Financial Instruments | ' |
Financial Instruments. Financial instruments are recorded at fair value, except as described in Note 8 – Long-Term Debt. | |
Sales | ' |
Sales. Product sales, which include shipping and handling fees billed to customers, are recognized upon transfer of title of the product to the customer, which generally occurs upon shipment to the customer, and is not dependent upon any post-shipment obligations. Sales of services are recognized utilizing the proportional performance method, whereby sales for each stage of a project are recognized based upon the stage's cost as a proportion of the total cost that will be incurred for that project. | |
Research and Development | ' |
R&D. Expenditures relating to the development of new products, services and processes, including significant improvements to existing products, services or processes, are expensed as incurred as R&D. | |
Income Taxes | ' |
Income Taxes. The provision for income taxes is based on pretax income reported in the consolidated statements of income and currently enacted tax rates for each jurisdiction. No provision has been made for U.S. income taxes on the undistributed earnings of the Company's international subsidiaries where the earnings are considered permanently reinvested. | |
Deferred tax assets and liabilities are recognized for the future tax benefits or liabilities attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance when it believes that such assets may not be recovered, taking into consideration historical operating results, expectations of future earnings, changes in its operations and the expected timing of the reversals of existing temporary differences. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents. Cash and cash equivalents include cash on hand and investments with original maturities of less than three months. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment. The cost of property, plant and equipment is depreciated over the estimated useful lives of the assets using the straight-line method with lives generally ranging from 3 to 12 years for machinery and equipment, 3 to 7 years for information technology and 15 to 40 years for buildings and improvements. Depreciation expense was $111, $104 and $89 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company capitalizes interest as part of the cost of constructing major facilities and equipment. | |
Goodwill | ' |
Goodwill. ASC Subtopic 350-20 "Goodwill" requires the Company to assess goodwill for impairment rather than to systematically amortize goodwill against earnings. This goodwill impairment test compares the fair value of a reporting unit to its carrying amount, including goodwill. The Company operates as one reporting unit and its fair value exceeds its carrying value, including goodwill. The Company has determined that no impairment of goodwill existed at December 31, 2013 or 2012. | |
Long-Lived Assets | ' |
Long-Lived Assets. Long-lived assets are reviewed for impairment whenever conditions indicate that the carrying value of the assets may not be fully recoverable. Such impairment tests are based on a comparison of the pretax undiscounted cash flows expected to be generated by the asset to the recorded value of the asset. If impairment is indicated, the asset value is written down to its market value if readily determinable or its estimated fair value based on discounted cash flows. Any significant unanticipated changes in business or market conditions that vary from current expectations could have an impact on the fair value of these assets and any potential associated impairment. The Company has determined that no indications of impairment existed at December 31, 2013 or 2012. | |
Foreign Currency Translation | ' |
Foreign Currency Translation. Most of the Company's non-U.S. operations use local currency as their functional currency. Subsidiaries that do not use the U.S. Dollar as their functional currency translate assets and liabilities at period end exchange rates and profit and loss accounts at the weighted average exchange rates during the reporting period. Resulting translation gains and losses are included as a separate component of stockholders' equity in AOCI. Assets and liabilities denominated in a currency other than the subsidiary's functional currency are translated to the subsidiary's functional currency at period end exchange rates. Resulting gains and losses are recognized in the consolidated statements of income. | |
Use of Estimates | ' |
Use of Estimates. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of sales and expenses during the periods presented. Actual results could differ from those estimates under different assumptions or conditions. | |
Reclassifications | ' |
Reclassifications. The accompanying consolidated financial statements for prior years contain certain reclassifications to conform with the presentation used in 2013. | |
Effect of New Accounting Standards | ' |
Effect of New Accounting Standards | |
In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" that requires entities to disclose either on the face of or in the notes to the financial statements the effects of reclassifications out of AOCI. For items reclassified out of AOCI and into net income in their entirety, entities must disclose the effect of the reclassification on each affected net income item. For items that are not reclassified in their entirety into net income, entities must provide a cross reference to other required disclosures. This ASU does not change the items currently reported in other comprehensive income and is effective for annual reporting periods beginning after December 15, 2012 and interim periods within those years. The adoption of these provisions did not have a material impact on the consolidated financial statements of the Company. |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||
Changes in the allowance for doubtful accounts | ' | ||||||||
Changes in the allowance for doubtful accounts for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 7 | $ | 6 | |||||
Additions | 1 | 1 | |||||||
Deductions | (1 | ) | — | ||||||
Balance, end of year | $ | 7 | $ | 7 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Principal categories of inventories | ' | ||||||||
The principal categories of inventories at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 575 | $ | 585 | |||||
Work in process | 27 | 36 | |||||||
Raw materials | 97 | 101 | |||||||
Total | $ | 699 | $ | 722 | |||||
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Principal categories of property, plant and equipment, net | ' | ||||||||
The principal categories of property, plant and equipment, net at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Land | $ | 56 | $ | 57 | |||||
Buildings and improvements | 854 | 843 | |||||||
Machinery and equipment | 1,099 | 1,050 | |||||||
Construction in progress | 89 | 61 | |||||||
Less - accumulated depreciation | (1,292 | ) | (1,182 | ) | |||||
Property, plant and equipment, net | $ | 806 | $ | 829 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of purchase price allocation | ' | |||
The process of assigning fair values to the assets acquired and liabilities assumed was complete as of December 31, 2012 and was recognized as follows: | ||||
Assigned Fair Value | ||||
Current assets | $ | 23 | ||
Property, plant and equipment | 44 | |||
Goodwill | 212 | |||
Intangibles: | ||||
Customer relationships | 108 | |||
Technical knowledge | 21 | |||
Trademarks and trade names | 2 | |||
Other | 4 | |||
Other assets | 2 | |||
Deferred tax asset | 5 | |||
Deferred tax liabilities | (48 | ) | ||
Other liabilities | (20 | ) | ||
Total | $ | 353 | ||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of amortizable and unamortizable intangible assets | ' | |||||||||||||||
The Company's amortizable and unamortizable intangible assets at December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Cost | Accumulated Amortization | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents | $ | 14 | $ | 14 | $ | 9 | $ | 8 | ||||||||
Licenses | 48 | 47 | 22 | 17 | ||||||||||||
Customer relationships | 254 | 255 | 77 | 61 | ||||||||||||
Technical knowledge | 48 | 48 | 19 | 15 | ||||||||||||
Other | 29 | 29 | 23 | 22 | ||||||||||||
Total amortizable intangible assets | $ | 393 | $ | 393 | $ | 150 | $ | 123 | ||||||||
Unamortizable intangible assets: | ||||||||||||||||
Goodwill | $ | 717 | $ | 717 | $ | 26 | $ | 26 | ||||||||
Trademarks and trade names | 20 | 20 | 8 | 8 | ||||||||||||
Total unamortizable intangible assets | $ | 737 | $ | 737 | $ | 34 | $ | 34 | ||||||||
Schedule of change in net goodwill | ' | |||||||||||||||
. | ||||||||||||||||
The changes in net goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Balance, beginning of year | $ | 691 | $ | 466 | ||||||||||||
Acquisitions and divestitures | (2 | ) | 222 | |||||||||||||
Impact of foreign currency exchange rates | 2 | 3 | ||||||||||||||
Balance, end of year | $ | 691 | $ | 691 | ||||||||||||
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Notes Payable [Abstract] | ' | |||||||||||||
Schedule of notes payable | ' | |||||||||||||
Notes payable consist of the following at December 31, 2013 and 2012: | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Notes payable | ||||||||||||||
Commercial paper (1) | $ | 65 | 0.1 | % | $ | 381 | 0.2 | % | ||||||
$200.0 European revolving credit facility, due | — | — | — | — | ||||||||||
March 13, 2014 (2) | ||||||||||||||
Sigma-Aldrich Korea limited credit facility, due | — | — | — | — | ||||||||||
June 30, 2014 (3) | ||||||||||||||
Sigma-Aldrich Japan GK credit facilities (4) | — | — | — | — | ||||||||||
Other short-term credit facilities (5) | — | — | 2 | 1.5 | % | |||||||||
Total notes payable | $ | 65 | 0.1 | % | $ | 383 | 0.2 | % | ||||||
-1 | The Company has a $600 five-year revolving credit facility with a syndicate of banks in the United States that supports the Company's commercial paper program. On December 2, 2013, the Company entered into an amendment to extend the termination date of the facility to May 10, 2018 from May 10, 2017. At December 31, 2013 and December 31, 2012, the Company did not have any borrowings outstanding under this facility. However, the amount available under the facility is reduced by the amount of commercial paper outstanding. The facility contains financial covenants that require the maintenance of a ratio of consolidated debt to total capitalization of no more than 65.0 percent and an aggregate amount of subsidiary debt plus consolidated secured debt of no more than 25.0 percent of total net worth. The Company's total consolidated debt as a percentage of total capitalization and aggregate amount of subsidiary debt plus consolidated secured debt as a percentage of total net worth, as defined in the underlying credit agreement, was 11.7 percent and 0.0 percent, respectively, at December 31, 2013. | |||||||||||||
-2 | This facility contains financial covenants that require the maintenance of consolidated net worth of at least $750, a ratio of consolidated debt to total capitalization of no more than 55.0 percent and an aggregate amount of subsidiary debt plus consolidated secured debt of no more than 25.0 percent of total net worth. The Company's consolidated net worth, consolidated debt as a percentage of total capitalization and aggregate amount of subsidiary debt plus consolidated secured debt as a percentage of total net worth, as defined in the underlying credit agreement, were $2,754, 11.7 percent and 0.0 percent, respectively, at December 31, 2013. | |||||||||||||
-3 | There were no outstanding borrowings under this facility, which had a total commitment of 20 billion Korean Won ($19), at December 31, 2013. | |||||||||||||
-4 | Sigma-Aldrich Japan GK has two credit facilities having a total commitment of 2 billion Japanese Yen ($19), with one facility due April 30, 2014 and the other representing a line of credit with no expiration. There were no borrowings under the facilities at December 31, 2013. | |||||||||||||
-5 | There were no borrowings under these facilities, which have total commitments in U.S. Dollar equivalents of $3, at December 31, 2013. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule of long-tem debt | ' | |||||||||||||
Long-term debt consists of the following at December 31, 2013 and 2012: | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Senior notes, due November 1, 2020 (1) | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
Total long-term debt | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
-1 | The Company has $300 of 3.375% Senior Notes due November 1, 2020. Interest on the notes is payable May 1 and November 1 of each year. The notes may be redeemed, in whole or in part at the Company's option, (i) at any time at specific redemption prices plus accrued interest or (ii) three months prior to the maturity date at a redemption price equal to 100% percent of the principal amount plus accrued interest. |
Financial_Derivatives_and_Risk1
Financial Derivatives and Risk Management (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Schedule fair value of derivative instruments | ' | ||||||||||
The following table summarizes the fair values of the foreign currency forward exchange contracts designated as cash flow hedges at December 31, 2013 and 2012: | |||||||||||
Years ended December 31, | |||||||||||
Item | Reporting Location | 2013 | 2012 | ||||||||
Forward exchange contracts asset derivative | Other current assets | $ | 5 | $ | 6 | ||||||
Forward exchange contracts liability derivative | Other current liabilities | 6 | 3 | ||||||||
Gain recognized in AOCI, net | AOCI | 2 | 3 | ||||||||
Schedule of effect of fair value derivative instruments on the consolidated statements of operations | ' | ||||||||||
The following table summarizes the effect of the foreign currency forward exchange contracts designated as cash flow hedges on the Company's consolidated statements of comprehensive income for the years ended December 31, 2013 and 2012, net of immaterial tax effects. | |||||||||||
Years ended December 31, | |||||||||||
Item | Reporting Location | 2013 | 2012 | ||||||||
Gain recognized in OCI, net | OCI | $ | 4 | $ | 3 | ||||||
Gain reclassified from AOCI into net income | Costs of products and services sold | 5 | — | ||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of minimum rental commitments | ' | ||||
Minimum rental commitments for non-cancelable leases in effect at December 31, 2013, are as follows: | |||||
2014 | $ | 32 | |||
2015 | 25 | ||||
2016 | 19 | ||||
2017 | 17 | ||||
2018 | 15 | ||||
2019 and thereafter | 18 | ||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of roll forward of restructuring reserve | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Restructuring costs | $ | 10 | $ | 9 | $ | 8 | ||||||
Licensing dispute settlement | 7 | — | — | |||||||||
Costs related to mergers and acquisitions | 5 | 5 | — | |||||||||
Total restructuring and other charges | $ | 22 | $ | 14 | $ | 8 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of components of income before income taxes | ' | ||||||||||||
The components of income before income taxes consist of the following for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States operations | $ | 365 | $ | 386 | $ | 438 | |||||||
International operations | 292 | 269 | 202 | ||||||||||
Total income before taxes | $ | 657 | $ | 655 | $ | 640 | |||||||
Schedule of provision for income taxes | ' | ||||||||||||
The provision for income taxes consists of the following for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 118 | $ | 108 | $ | 136 | |||||||
State and local | 12 | 13 | 8 | ||||||||||
International | 40 | 40 | 38 | ||||||||||
Total current | 170 | 161 | 182 | ||||||||||
Deferred: | |||||||||||||
Federal | (5 | ) | 15 | (6 | ) | ||||||||
State and local | (3 | ) | 3 | (3 | ) | ||||||||
International | 4 | 16 | 10 | ||||||||||
Total deferred | (4 | ) | 34 | 1 | |||||||||
Provision for income taxes | $ | 166 | $ | 195 | $ | 183 | |||||||
Schedule of effective income tax rate reconciliation | ' | ||||||||||||
The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and the Company's effective tax rate are as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 35 | Â % | 35 | Â % | 35 | Â % | |||||||
U.S. manufacturing deduction | (1.1 | ) | (1.2 | ) | (2.0 | ) | |||||||
State and local income taxes, net of federal benefit | 1 | 1.7 | 0.8 | ||||||||||
Research and development credits | (0.6 | ) | — | (0.6 | ) | ||||||||
International tax rates | (6.8 | ) | (5.2 | ) | (3.5 | ) | |||||||
Tax audits and unrecognized tax positions | 0.6 | (0.2 | ) | (0.8 | ) | ||||||||
Tax rate and law changes | (1.4 | ) | (0.2 | ) | — | ||||||||
Other, net | (1.4 | ) | (0.1 | ) | (0.3 | ) | |||||||
Total effective tax rate | 25.3 | Â % | 29.8 | Â % | 28.6 | Â % | |||||||
Schedule of net deferred tax assets and liabilities | ' | ||||||||||||
Deferred tax assets and liabilities in the preceding table, netted by taxing jurisdiction, are included in the following captions in the Company's consolidated balance sheets at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | $ | 31 | $ | 32 | |||||||||
Other assets | 11 | 17 | |||||||||||
Other accrued expenses | (2 | ) | (2 | ) | |||||||||
Deferred tax liabilities | (74 | ) | (64 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (34 | ) | $ | (17 | ) | |||||||
at December 31, 2013 and 2012 resulted from the following temporary differences: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 23 | $ | 27 | |||||||||
Net operating loss carryforwards | 9 | 14 | |||||||||||
Post-retirement benefits and other employee benefits | 43 | 46 | |||||||||||
Pension benefits | 4 | 20 | |||||||||||
Other | 22 | 19 | |||||||||||
Total deferred tax assets | 101 | 126 | |||||||||||
Valuation allowances | (4 | ) | (5 | ) | |||||||||
Net deferred tax assets | 97 | 121 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment, and intangibles | (131 | ) | (138 | ) | |||||||||
Total deferred tax liabilities | (131 | ) | (138 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (34 | ) | $ | (17 | ) | |||||||
Schedule of gross unrecognized tax benefits roll forward | ' | ||||||||||||
The following table sets forth changes in the total gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 33 | $ | 33 | $ | 21 | |||||||
Tax positions related to current year: | |||||||||||||
Additions | 7 | 4 | 6 | ||||||||||
Reductions | — | — | — | ||||||||||
Tax positions related to prior years: | |||||||||||||
Additions | 2 | 1 | 18 | ||||||||||
Reductions | (1 | ) | (1 | ) | (3 | ) | |||||||
Settlements | — | — | — | ||||||||||
Statutes of limitation expirations | (4 | ) | (4 | ) | (9 | ) | |||||||
Balance, end of year | $ | 37 | $ | 33 | $ | 33 | |||||||
Common_Stock_Common_Stock_Tabl
Common Stock Common Stock (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Valuation assumptions of stock options | ' | |||||||||||||
The weighted-average assumptions under the Black-Scholes option-pricing model for stock option grants are as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected term (years) | 5 | 4.9 | 4.8 | |||||||||||
Expected volatility | 31.86% | 32.92% | 30.68% | |||||||||||
Risk-free interest rate | 0.98% | 0.80% | 2.17% | |||||||||||
Dividend yield | 1.13% | 1.11% | 1.13% | |||||||||||
Schedule of stock options activity | ' | |||||||||||||
A summary of the combined stock option activity and other data for the Company's stock option plans, including the 2003 LTIP, the Stock Option Plan of 2000 and the 1998 Directors' Non-Qualified Share Option Plans, for the year ended December 31, 2013 is as follows: | ||||||||||||||
Number of | Wtd. Avg. | Wtd. Avg. | Aggregate | |||||||||||
Stock | Exercise Price | Remaining | Intrinsic | |||||||||||
Options | Per Share | Contractual | Value | |||||||||||
Life | ||||||||||||||
Stock Options outstanding, January 1, 2013 | 3,341,529 | $ | 47.03 | |||||||||||
Granted | 791,760 | 77.34 | ||||||||||||
Exercised | (788,982 | ) | 35.92 | |||||||||||
Forfeited | (38,010 | ) | 68.07 | |||||||||||
Stock Options outstanding, December 31, 2013 | 3,306,297 | 56.7 | 70.34 months | $ | 123 | |||||||||
Stock Options exercisable, December 31, 2013 | 2,214,272 | 47.83 | 52.89 months | $ | 102 | |||||||||
Performance stock criteria | ' | |||||||||||||
A summary of the criteria for the Performance Share awards can be found in the table below. | ||||||||||||||
2013 (1) | 2012 | 2011 | ||||||||||||
Service Period | Three years | Three years | Three years | |||||||||||
Vesting Period | Cliff vest on December 31, 2015 | Cliff vest on December 31, 2014 | Cliff vest December 31, 2013 | |||||||||||
Payout Range (2) | 0 percent to 200 percent | 0 percent to 200 percent | 0 percent to 150 percent | |||||||||||
Metrics / Performance Criteria | - 40 percent based upon the Company's yearly return on invested capital (calculated each year of the service period) | - 40 percent based upon the Company's three-year average return on equity ratio calculation | - 50 percent based upon the Company's three-year average return on equity ratio calculation | |||||||||||
- 40 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | - 40 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | - 50 percent based upon the Company's three-year average sales growth (adjusted for changes in foreign currency exchange rates) | ||||||||||||
- 20 percent based on the Company's total shareholder return relative to certain competitors | - 20 percent based on the Company's total shareholder return relative to certain competitors | |||||||||||||
Schedule of nonvested performance-based units activity | ' | |||||||||||||
A summary of the Company's nonvested Performance Shares as of December 31, 2013, and changes during the year then ended, is reflected in the table below. | ||||||||||||||
Number of | Wtd. Avg. | |||||||||||||
Performance | Grant | |||||||||||||
Units | Date Fair | |||||||||||||
Value | ||||||||||||||
Nonvested Performance Shares outstanding, January 1, 2013 | 320,485 | $ | 67.97 | |||||||||||
Granted | 104,545 | 75 | ||||||||||||
Vested (1) | (136,282 | ) | 63.95 | |||||||||||
Forfeited (2) | (33,311 | ) | 67.59 | |||||||||||
Nonvested Performance Shares outstanding, December 31, 2013 | 255,437 | 72.45 | ||||||||||||
-1 | Represents the entire amount of Performance Shares which vested during the year ended December 31, 2013. Of these vested Performance Shares, 510 were paid out in 2013 and the remainder were outstanding as of December 31, 2013. | |||||||||||||
-2 | Includes reductions due to employee terminations and reductions as a result of the Company not meeting certain performance targets. | |||||||||||||
Schedule of unvested restricted stock units roll forward | ' | |||||||||||||
A summary of the Company's nonvested RSUs as of December 31, 2013, and changes during the year then ended, is reflected in the table below. | ||||||||||||||
Number of | Wtd. Avg. | |||||||||||||
RSUs | Grant | |||||||||||||
Date Fair | ||||||||||||||
Value | ||||||||||||||
Nonvested RSUs outstanding, January 1, 2013 | 50,000 | $ | 66.16 | |||||||||||
Granted | 98,165 | 74.3 | ||||||||||||
Vested (1) | (17,862 | ) | 66.02 | |||||||||||
Forfeited (2) | (6,527 | ) | 71.73 | |||||||||||
Nonvested RSUs outstanding, December 31, 2013 | 123,776 | 72.35 | ||||||||||||
-1 | Represents the entire amount of RSUs that vested during the year ended December 31, 2013. Of the RSUs that vested, 17,862 were paid out in 2013. | |||||||||||||
-2 | Includes reductions due to employee terminations. |
Company_Operations_by_Business1
Company Operations by Business Unit (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Net sales for the Company's business units | ' | ||||||||||||||||
Net sales for the Company's business units are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Research | $ | 1,402 | $ | 1,398 | $ | 1,427 | |||||||||||
Applied | 629 | 598 | 581 | ||||||||||||||
SAFC | 673 | 627 | 497 | ||||||||||||||
Total | $ | 2,704 | $ | 2,623 | $ | 2,505 | |||||||||||
Schedule of net sales from external customers and long-lived assets, by geographical areas | ' | ||||||||||||||||
Products shipped from the U.S. to unaffiliated customer destinations outside of the U.S. are presented in the summary below: | |||||||||||||||||
Year | Amount | Year | Amount | Year | Amount | ||||||||||||
2013 | $ | 60 | 2012 | $ | 61 | 2011 | $ | 48 | |||||||||
Geographic financial information is as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net sales to unaffiliated customers: | |||||||||||||||||
United States | $ | 1,026 | $ | 987 | $ | 898 | |||||||||||
International | 1,678 | 1,636 | 1,607 | ||||||||||||||
Total | $ | 2,704 | $ | 2,623 | $ | 2,505 | |||||||||||
Long-lived assets at December 31: | |||||||||||||||||
United States | $ | 523 | $ | 549 | $ | 506 | |||||||||||
International | 357 | 351 | 319 | ||||||||||||||
Total | $ | 880 | $ | 900 | $ | 825 | |||||||||||
Pension_and_PostRetirement_Ben1
Pension and Post-Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Schedule of reconciliation of funded status of the plans and the amounts included In the Company' s consolidated balance sheets | ' | |||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Reconciliation of funded status of the plans and the amounts included in the Company's Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||
Beginning obligations | $ | 178 | $ | 170 | $ | 299 | $ | 260 | $ | 47 | $ | 52 | ||||||||||||||||||||||||
Service cost | — | 10 | 9 | 8 | 1 | 1 | ||||||||||||||||||||||||||||||
Interest cost | 6 | 7 | 8 | 9 | 1 | 2 | ||||||||||||||||||||||||||||||
Participant contributions | — | — | 3 | 3 | 1 | 1 | ||||||||||||||||||||||||||||||
Plan amendments | — | — | (11 | ) | — | — | — | |||||||||||||||||||||||||||||
Plan curtailments | — | (16 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Plan settlements | (7 | ) | — | (6 | ) | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid | (1 | ) | (6 | ) | (7 | ) | (5 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||
Actuarial loss (gain) | (7 | ) | 13 | (12 | ) | 16 | (9 | ) | (8 | ) | ||||||||||||||||||||||||||
Changes in foreign currency exchange rates | — | — | 6 | 8 | — | — | ||||||||||||||||||||||||||||||
Ending obligations | $ | 169 | $ | 178 | $ | 289 | $ | 299 | $ | 39 | $ | 47 | ||||||||||||||||||||||||
Changes in plans assets | ||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 158 | $ | 138 | $ | 228 | $ | 198 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 31 | 19 | 20 | 17 | — | — | ||||||||||||||||||||||||||||||
Employer contributions | — | 7 | 8 | 8 | 1 | — | ||||||||||||||||||||||||||||||
Participant contributions | — | — | 3 | 3 | 1 | 1 | ||||||||||||||||||||||||||||||
Plan settlements | (7 | ) | — | (3 | ) | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid | (1 | ) | (6 | ) | (7 | ) | (5 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||
Changes in foreign currency exchange rates | — | — | 6 | 7 | — | — | ||||||||||||||||||||||||||||||
Ending fair value | $ | 181 | $ | 158 | $ | 255 | $ | 228 | $ | — | $ | — | ||||||||||||||||||||||||
Reconciliation of funded status | ||||||||||||||||||||||||||||||||||||
Funded status | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Net Consolidated Balance Sheet asset/(liability) | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Schedule of amounts recognized in balance sheet | ' | |||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Amounts recognized in the Company's Consolidated Balance Sheets: | ||||||||||||||||||||||||||||||||||||
Non current assets | $ | 12 | $ | — | $ | 2 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | — | — | — | — | (2 | ) | (3 | ) | ||||||||||||||||||||||||||||
Pension and post-retirement benefits | — | (20 | ) | (36 | ) | (71 | ) | (37 | ) | (44 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Reconciliation of amounts recognized in the Company's Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||
Prior service (cost) credit | $ | — | $ | — | $ | 11 | $ | (1 | ) | $ | 4 | $ | 5 | |||||||||||||||||||||||
Net (loss) gain | (30 | ) | (58 | ) | (39 | ) | (65 | ) | 15 | 7 | ||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income | $ | (30 | ) | $ | (58 | ) | $ | (28 | ) | $ | (66 | ) | $ | 19 | $ | 12 | ||||||||||||||||||||
Accumulated contributions in excess of (less than) net periodic benefit cost | 42 | 38 | (6 | ) | (5 | ) | (58 | ) | (59 | ) | ||||||||||||||||||||||||||
Net amount liability recognized in statement of financial position | $ | 12 | $ | (20 | ) | $ | (34 | ) | $ | (71 | ) | $ | (39 | ) | $ | (47 | ) | |||||||||||||||||||
Schedule of amounts recognized in other comprehensive income and estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ' | |||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||
New prior service cost | $ | — | $ | — | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net loss (gain) arising during the year | (27 | ) | (11 | ) | 15 | (21 | ) | 9 | 19 | (8 | ) | (8 | ) | 2 | ||||||||||||||||||||||
Effect of changes in foreign currency exchange rates on amounts included in AOCI | — | — | — | — | 2 | (1 | ) | — | — | — | ||||||||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost | ||||||||||||||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit | — | — | — | — | — | — | 1 | 1 | 1 | |||||||||||||||||||||||||||
Amortization or settlement recognition of net loss | (1 | ) | (5 | ) | (4 | ) | (6 | ) | (4 | ) | (2 | ) | — | — | — | |||||||||||||||||||||
Total recognized in other comprehensive loss (income)—pretax | $ | (28 | ) | $ | (16 | ) | $ | 11 | $ | (38 | ) | $ | 7 | $ | 16 | $ | (7 | ) | $ | (7 | ) | $ | 3 | |||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | (31 | ) | $ | (5 | ) | $ | 20 | $ | (28 | ) | $ | 18 | $ | 26 | $ | (6 | ) | $ | (5 | ) | $ | 6 | |||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ||||||||||||||||||||||||||||||||||||
Prior service (cost) credit | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Net loss | — | (1 | ) | (5 | ) | (1 | ) | (4 | ) | (4 | ) | 1 | — | — | ||||||||||||||||||||||
Total estimated amortization | $ | — | $ | (1 | ) | $ | (5 | ) | $ | — | $ | (4 | ) | $ | (4 | ) | $ | 2 | $ | 1 | $ | 1 | ||||||||||||||
Schedule of components of the net periodic benefit costs | ' | |||||||||||||||||||||||||||||||||||
The components of the net periodic benefit costs are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Service cost | $ | — | $ | 10 | $ | 8 | $ | 9 | $ | 8 | $ | 9 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Interest cost | 6 | 7 | 7 | 8 | 9 | 9 | 1 | 2 | 3 | |||||||||||||||||||||||||||
Expected return on plan assets | (11 | ) | (11 | ) | (11 | ) | (11 | ) | (10 | ) | (10 | ) | — | — | — | |||||||||||||||||||||
Amortization | 1 | 5 | 5 | 4 | 4 | 2 | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Settlement loss | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | (3 | ) | $ | 11 | $ | 9 | $ | 10 | $ | 11 | $ | 10 | $ | 1 | $ | 2 | $ | 3 | |||||||||||||||||
Schedule of rate assumptions associated with the pension and post-retirement medical benefit plans to determine benefit obligations and additional year-end information | ' | |||||||||||||||||||||||||||||||||||
The rate assumptions associated with the pension and post-retirement medical benefit plans to determine benefit obligations and additional year-end information are as follows:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Assumptions to determine benefit obligations | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.45 | % | 3.6 | % | 3.36 | % | 2.96 | % | 4.8 | % | 3.9 | % | ||||||||||||||||||||||||
Compensation rate increase | n/a | n/a | 2.74 | % | 2.59 | % | n/a | n/a | ||||||||||||||||||||||||||||
Measurement date | 31-Dec | 31-Dec | 31-Dec | 31-Dec | 31-Dec | 31-Dec | ||||||||||||||||||||||||||||||
Additional year-end information | ||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 169 | $ | 178 | $ | 271 | $ | 268 | n/a | n/a | ||||||||||||||||||||||||||
Plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | — | $ | 178 | $ | 189 | $ | 206 | n/a | n/a | ||||||||||||||||||||||||||
Accumulated benefit obligation | — | 178 | 176 | 183 | n/a | n/a | ||||||||||||||||||||||||||||||
Fair value of plan assets | — | 158 | 153 | 140 | n/a | n/a | ||||||||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | — | $ | 178 | $ | 189 | $ | 299 | $ | 39 | $ | 47 | ||||||||||||||||||||||||
Fair value of plan assets | — | 158 | 153 | 228 | — | — | ||||||||||||||||||||||||||||||
Schedule of rate assumptions associated with the pension and post-retirement medical benefit plans to determine periodic pension costs | ' | |||||||||||||||||||||||||||||||||||
The rate assumptions associated with the pension and post-retirement medical benefit plans to determine periodic pension costs are as follows:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Discount rate | 3.6 | % | 4.35 | % | 5.05 | % | 2.96 | % | 3.52 | % | 3.69 | % | 3.9 | % | 4.5 | % | 5.25 | % | ||||||||||||||||||
Expected rate of return on plan assets | 7.75 | % | 8.25 | % | 8.25 | % | 4.87 | % | 4.98 | % | 4.85 | % | n/a | n/a | n/a | |||||||||||||||||||||
Compensation rate increase | n/a | 3.55 | % | 3.55 | % | 2.59 | % | 2.95 | % | 3.05 | % | n/a | n/a | n/a | ||||||||||||||||||||||
Schedule of employer contributions and benefit payments | ' | |||||||||||||||||||||||||||||||||||
The expected employer contributions and benefit payments are shown in the following table for the pension and post-retirement medical benefit plans:Â | ||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement | Expected | ||||||||||||||||||||||||||||||||||
Medical | Medicare | |||||||||||||||||||||||||||||||||||
Cash Flows | Year | United | International | Benefit Plans(1) | Subsidy Receipts | |||||||||||||||||||||||||||||||
States | ||||||||||||||||||||||||||||||||||||
Expected employer contributions | 2014 | $ | — | $ | 6 | $ | 2 | n/a | ||||||||||||||||||||||||||||
Expected benefit payments for year ending December 31st | 2014 | 13 | 6 | 2 | — | |||||||||||||||||||||||||||||||
2015 | 13 | 6 | 2 | — | ||||||||||||||||||||||||||||||||
2016 | 13 | 8 | 2 | — | ||||||||||||||||||||||||||||||||
2017 | 13 | 7 | 3 | — | ||||||||||||||||||||||||||||||||
2018 | 13 | 8 | 3 | — | ||||||||||||||||||||||||||||||||
Next 5 years | 58 | 48 | 13 | 2 | ||||||||||||||||||||||||||||||||
-1 | Expected payments for Post-Retirement Medical Benefit Plans are shown net of the expected Medicare subsidy receipts. | |||||||||||||||||||||||||||||||||||
Schedule of target asset allocations and weighted average asset allocations | ' | |||||||||||||||||||||||||||||||||||
Target Allocations | Weighted Average | |||||||||||||||||||||||||||||||||||
Asset Allocations | ||||||||||||||||||||||||||||||||||||
U.S. | International | U.S. | International | |||||||||||||||||||||||||||||||||
Plan | Plans | Plan | Plans | |||||||||||||||||||||||||||||||||
Equity Securities | 57–93% | 38–50% | 75 | % | 45 | % | ||||||||||||||||||||||||||||||
Real Estate | — | 6–12% | — | 10 | % | |||||||||||||||||||||||||||||||
Debt Securities | 10–40% | 36–57% | 25 | % | 41 | % | ||||||||||||||||||||||||||||||
Other | 0–5% | 0–10% | — | 4 | % | |||||||||||||||||||||||||||||||
Schedule of fair value measurements | ' | |||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Assets | Quoted Prices | Significant Other | Total | |||||||||||||||||||||||||||||||||
in Active Markets for | Observable | |||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||||||||||||
(Level 1(1)) | (Level 2(2)) | |||||||||||||||||||||||||||||||||||
Real estate | $ | — | $ | 22 | $ | 22 | ||||||||||||||||||||||||||||||
Common/collective trust funds — equity | — | 260 | 260 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — government debt | — | 18 | 18 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 126 | 126 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — real estate | — | 1 | 1 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 5 | 4 | 9 | |||||||||||||||||||||||||||||||||
Total | $ | 5 | $ | 431 | $ | 436 | ||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Assets | Quoted Prices | Significant Other | Total | |||||||||||||||||||||||||||||||||
in Active Markets for | Observable | |||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||||||||||||
(Level 1(1)) | (Level 2(2)) | |||||||||||||||||||||||||||||||||||
Corporate stocks — common | $ | 8 | $ | — | $ | 8 | ||||||||||||||||||||||||||||||
Government debt | 8 | — | 8 | |||||||||||||||||||||||||||||||||
Corporate and other non-government debt | 16 | — | 16 | |||||||||||||||||||||||||||||||||
Real estate | — | 22 | 22 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — equity | — | 223 | 223 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — government debt | — | 12 | 12 | |||||||||||||||||||||||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 88 | 88 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 4 | — | 4 | |||||||||||||||||||||||||||||||||
Other | — | 5 | 5 | |||||||||||||||||||||||||||||||||
Total | $ | 36 | $ | 350 | $ | 386 | ||||||||||||||||||||||||||||||
-1 | Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. | |||||||||||||||||||||||||||||||||||
-2 | Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets. Equity securities categorized as Level 2 assets are primarily non-exchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets. Valuation is based on the net asset value of fund units held as derived from the fair value of the underlying assets. |
Other_Assets_And_Liabilities_T
Other Assets And Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets And Liabilities [Abstract] | ' | |||||||
Other current assets | ' | |||||||
Other current assets are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Other receivables | $ | 36 | $ | 36 | ||||
Prepaid expenses | 22 | 29 | ||||||
Certificates of deposit | 27 | 27 | ||||||
Other current assets | 2 | 3 | ||||||
Total other current assets | $ | 87 | $ | 95 | ||||
Other assets | ' | |||||||
Other assets are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, | |||||||
2012 | ||||||||
Other investments | $ | 11 | $ | 16 | ||||
Cash value of life insurance policies | 34 | 29 | ||||||
Deferred taxes | 11 | 17 | ||||||
Long term certificates of deposit | 33 | — | ||||||
Pension and post-retirement asset | 14 | — | ||||||
Other non-current assets | 29 | 27 | ||||||
Total other assets | $ | 132 | $ | 89 | ||||
Other current liabilities | ' | |||||||
Other current liabilities are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Legal and professional | $ | 5 | $ | 6 | ||||
Pension and post-retirement liability | 2 | 3 | ||||||
Freight | 7 | 7 | ||||||
Other accrued expenses | 63 | 61 | ||||||
Total other current liabilities | $ | 77 | $ | 77 | ||||
Other liabilities | ' | |||||||
Other liabilities are summarized as follows:Â | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Deferred compensation | $ | 31 | $ | 31 | ||||
Non-current income taxes | 37 | 33 | ||||||
Other non-current liabilities | 12 | 10 | ||||||
Total other non-current liabilities | $ | 80 | $ | 74 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of reconciliation of basic and diluted earnings per share | ' | |||||||||||
A reconciliation of basic and diluted EPS, together with the related shares outstanding in millions for the years ended December 31, is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income available to common shareholders | $ | 491 | $ | 460 | $ | 457 | ||||||
Weighted average shares | ||||||||||||
Basic shares | 120 | 121 | 121 | |||||||||
Effect of dilutive securities—options outstanding | 1 | 1 | 2 | |||||||||
Diluted shares | 121 | 122 | 123 | |||||||||
Net income per share—Basic | $ | 4.09 | $ | 3.8 | $ | 3.78 | ||||||
Net income per share—Diluted | $ | 4.06 | $ | 3.77 | $ | 3.72 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Schedule of components of accumulated other comprehensive income | ' | ||||||||||||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2013. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Unrealized Gain (Loss) on cash flow hedges, Net | Total | |||||||||||||||||
Beginning balance | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | ||||||||||
Other comprehensive income before reclassification | — | 51 | 3 | 4 | 58 | ||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (4 | ) | 6 | 5 | 7 | |||||||||||||||
Net current-period other comprehensive income (loss) | — | 55 | (3 | ) | (1 | ) | 51 | ||||||||||||||
Ending balance | $ | 141 | $ | (23 | ) | $ | — | $ | 2 | $ | 120 | ||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2012. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Unrealized Gain (Loss) on cash flow hedges, Net | Total | |||||||||||||||||
Beginning balance | $ | 118 | $ | (88 | ) | $ | — | $ | — | $ | 30 | ||||||||||
Other comprehensive income before reclassification | 23 | 4 | 3 | 3 | 33 | ||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (6 | ) | — | — | (6 | ) | ||||||||||||||
Net current-period other comprehensive income (loss) | 23 | 10 | 3 | 3 | 39 | ||||||||||||||||
Ending balance | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | ||||||||||
The following table shows the components of AOCI for the twelve months ended December 31, 2011. | |||||||||||||||||||||
Foreign Currency Translation Adjustment Income (Loss), Net | Pension and Post-Retirement Benefit Plans Income (Loss), Net | Unrealized Gain (Loss) on Securities, Net | Total | ||||||||||||||||||
Beginning balance | $ | 157 | $ | (66 | ) | $ | 4 | $ | 95 | ||||||||||||
Other comprehensive income (loss) before reclassification | (39 | ) | (26 | ) | (3 | ) | (68 | ) | |||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (4 | ) | 1 | (3 | ) | |||||||||||||||
Net current-period other comprehensive income (loss) | (39 | ) | (22 | ) | (4 | ) | (65 | ) | |||||||||||||
Ending balance | $ | 118 | $ | (88 | ) | $ | — | $ | 30 | ||||||||||||
During 2013, amounts reclassified from AOCI include gains of $5 into cost of products and services sold and gains of $2 into SG&A. During 2012 and 2011, amounts reclassified from AOCI include losses of $6 and $3 into SG&A, respectively. These adjustments are net of immaterial tax effects. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | |||
Accounting Policies [Abstract] | ' | ' | ' |
Depreciation expense | $111 | $104 | $89 |
Number of reportable segments | 1 | ' | ' |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts | ' | ' |
Change in the Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Balance, beginning of year | $7 | $6 |
Additions | 1 | 1 |
Deductions | -1 | 0 |
Balance, end of year | $7 | $7 |
Inventories_Principal_Categori
Inventories - Principal Categories of Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $575 | $585 |
Work in process | 27 | 36 |
Raw materials | 97 | 101 |
Total | $699 | $722 |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net - Principal Categories of Property, Plant and Equipment, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $2,098 | $2,011 |
Less - accumulated depreciation | -1,292 | -1,182 |
Property, plant and equipment, net | 806 | 829 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 56 | 57 |
Buildings and improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 854 | 843 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 1,099 | 1,050 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $89 | $61 |
Acquisitions_Narrative_Details
Acquisitions - Narrative (Details) (BioReliance Holdings, Inc., USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2012 |
BioReliance Holdings, Inc. | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Acquisition completion date | 31-Jan-12 | ' | ' | ' |
Acquisition, consideration | ' | ' | ' | $353 |
Cash acquired in acquisition | ' | ' | ' | 11 |
Net sales of acquired company | ' | 111 | ' | ' |
Pro forma net sales | ' | $2,632 | $2,631 | ' |
Acquisitions_Schedule_of_Purch
Acquisitions - Schedule of Purchase Price Allocation (Details) (BioReliance Holdings, Inc., USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Assigned Fair Value | ' |
Current assets | $23 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 44 |
Goodwill | 212 |
Other assets | 2 |
Deferred tax asset | 5 |
Deferred tax liabilities | -48 |
Other liabilities | -20 |
Total | 353 |
Customer relationships | ' |
Assigned Fair Value | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 108 |
Technical knowledge | ' |
Assigned Fair Value | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 21 |
Trademarks and trade names | ' |
Assigned Fair Value | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2 |
Other | ' |
Assigned Fair Value | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $4 |
Intangible_Assets_Amortizable_
Intangible Assets - Amortizable And Unamortizable Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | $393 | $393 |
Total amortizable intangible assets, Accumulated Amortization | 150 | 123 |
Unamortizable intangible assets: | ' | ' |
Goodwill, Cost | 717 | 717 |
Goodwill Accumulated Amortization | 26 | 26 |
Total unamortizable intangible assets, Cost | 737 | 737 |
Total unamortizable intangible assets, Accumulated Amortization | 34 | 34 |
Trademarks and trade names | ' | ' |
Unamortizable intangible assets: | ' | ' |
Trademarks and trade names, Cost | 20 | 20 |
Trademark Indefinite-lived Intangible Assets, Accumulated Amortization | 8 | 8 |
Patents | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 14 | 14 |
Total amortizable intangible assets, Accumulated Amortization | 9 | 8 |
Licenses | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 48 | 47 |
Total amortizable intangible assets, Accumulated Amortization | 22 | 17 |
Customer relationships | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 254 | 255 |
Total amortizable intangible assets, Accumulated Amortization | 77 | 61 |
Technical knowledge | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 48 | 48 |
Total amortizable intangible assets, Accumulated Amortization | 19 | 15 |
Other | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 29 | 29 |
Total amortizable intangible assets, Accumulated Amortization | $23 | $22 |
Intangible_Assets_Change_In_Ne
Intangible Assets - Change In Net Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Balance, beginning of year | $691 | $466 |
Acquisitions | -2 | 222 |
Impact of foreign currency exchange rates | 2 | 3 |
Balance, end of year | $691 | $691 |
Intangible_Assets_Narrative_De
Intangible Assets - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortizable Intangible Assets [Line Items] | ' | ' | ' |
Acquired amortizable intangible assets, amount | ' | $155 | ' |
Goodwill added during period | -2 | 222 | ' |
Amortization expense | 27 | 32 | 17 |
Finite-lived intangible assets, future amortization expense, four year estimate, minimum | 21 | ' | ' |
Finite-lived intangible assets, future amortization expense, four year estimate, maximum | $24 | ' | ' |
Minimum | ' | ' | ' |
Amortizable Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful life | '1 year | ' | ' |
Maximum | ' | ' | ' |
Amortizable Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Notes_Payable_Schedule_of_Note
Notes Payable - Schedule of Notes Payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Total notes payable and current maturities of long-term debt | $65 | $383 |
Total notes payable and current maturities of long-term debt, weighted average interest rate | 0.10% | 0.20% |
Commercial paper | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable | 65 | 381 |
Notes payable, weighted average interest rate | 0.10% | 0.20% |
$200.0 European revolving credit facility, due March 13, 2014 | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable | 0 | 0 |
Notes payable, weighted average interest rate | 0.00% | 0.00% |
Sigma-Aldrich Korea limited credit facility, Due June 30, 2013 | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable | 0 | 0 |
Notes payable, weighted average interest rate | 0.00% | 0.00% |
Sigma-Aldrich Japan credit facilities | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable | 0 | 0 |
Notes payable, weighted average interest rate | 0.00% | 0.00% |
Other short-term credit facilities | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable | 0 | 2 |
Notes payable, weighted average interest rate | 0.00% | 1.50% |
Total Notes Payable And Current Maturities Of Long Term Debt [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total notes payable and current maturities of long-term debt | $65 | $383 |
Notes_Payable_Narrative_Detail
Notes Payable - Narrative (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | 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, 2013 | |
Five-year revolving credit facility maturing May 9, 2017 | $200.0 European revolving credit facility, due March 13, 2014 | $200.0 European revolving credit facility, due March 13, 2014 | Sigma-Aldrich Korea limited credit facility, Due June 30, 2013 | Sigma-Aldrich Korea limited credit facility, Due June 30, 2013 | Sigma-Aldrich Korea limited credit facility, Due June 30, 2013 | Sigma-Aldrich Japan credit facilities | Sigma-Aldrich Japan credit facilities | Sigma-Aldrich Japan credit facilities | Other short-term credit facilities | Other short-term credit facilities | Senior notes, due November 1, 2020 | |
USD ($) | USD ($) | USD ($) | USD ($) | KRW | USD ($) | USD ($) | JPY (Â¥) | USD ($) | USD ($) | USD ($) | USD ($) | |
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $600,000,000 | ' | ' | $19,000,000 | 20,000,000,000 | ' | $19,000,000 | ¥ 2,000,000,000 | ' | $3,000,000 | ' | $300,000,000 |
Debt instrument face amount | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | 10-May-18 | 13-Mar-14 | ' | 30-Jun-14 | 30-Jun-14 | ' | 30-Apr-14 | 30-Apr-14 | ' | ' | ' | 1-Nov-20 |
Total notes payable | ' | 0 | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | 2,000,000 | ' |
Debt instrument covenant ratio of consolidated debt to total capitalization, maximum | 65.00% | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument covenant ratio of consolidated debt plus subsidiary debt to total net worth | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument covenant ratio of consolidated debt to total net worth | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated debt as percentage of total capitalization | 11.70% | 11.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument covenant consolidated net worth, minimum | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated net worth | ' | $2,754,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Noncurrent maturities of long-term debt, weighted average interest rate | 3.40% | 3.40% |
Senior notes, due November 1, 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Noncurrent maturities of long-term debt, weighted average interest rate | 3.40% | 3.40% |
Long Term Debt Noncurrent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | 300 | 300 |
Long-term Debt [Member] | Senior notes, due November 1, 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | 300 | 300 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Total interest expense on short-term and long-term debt, net of amounts capitalized | $9 | $8 | $13 |
Fair value of long-term debt | $298 | $315 | ' |
Senior notes, due November 1, 2020 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate | 3.38% | ' | ' |
Debt instrument, maturity date | 1-Nov-20 | ' | ' |
Time required to redeem notes at 100% of principal amount plus accrued interest | '3 months | ' | ' |
Redemption price of notes if redeemed three months prior to maturity date, percentage. | 100.00% | ' | ' |
Financial_Derivatives_and_Risk2
Financial Derivatives and Risk Management - Fair Value of Derivative Instruments on the Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $2 | $3 | $0 |
Foreign exchange forward | Cash flow hedging | Other current assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Forward exchange contracts asset derivative | 5 | 6 | ' |
Foreign exchange forward | Cash flow hedging | Other current liabilities | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Forward exchange contracts liability derivative | 6 | 3 | ' |
Other Comprehensive Income (Loss) [Member] | Foreign exchange forward | Cash flow hedging | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $2 | $3 | ' |
Financial_Derivatives_and_Risk3
Financial Derivatives and Risk Management - Effect of Derivative Instruments on the Income Statement (Details) (Cash Flow Hedging [Member], Foreign Exchange Forward [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
AOCI | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gain recognized in AOCI | $4 | $3 |
Cost of Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $5 | $0 |
Financial_Derivatives_and_Risk4
Financial Derivatives and Risk Management - General Cash Flow Hedge Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
General Cash Flow Hedge Information [Abstract] | ' | ' |
Maximum length of time hedged in cash flow hedge | '24 months | ' |
Notional Amount of Foreign Currency Cash Flow Hedging Derivatives | $298 | $254 |
Minimum | ' | ' |
General Cash Flow Hedge Information [Abstract] | ' | ' |
Percent of net sales denominated in non-US currencies | 60.00% | ' |
Not designated as hedging instrument | ' | ' |
General Cash Flow Hedge Information [Abstract] | ' | ' |
Notional Amount of Foreign Currency Non-Cash Flow Derivatives | $199 | $196 |
Lease_Commitments_Minimum_Rent
Lease Commitments - Minimum Rental Commitments for Non-cancelable Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases, Rent Expense, Net [Abstract] | ' | ' | ' |
Rent expense | $43 | $42 | $41 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | 32 | ' | ' |
2015 | 25 | ' | ' |
2016 | 19 | ' | ' |
2017 | 17 | ' | ' |
2018 | 15 | ' | ' |
2019 and thereafter | $18 | ' | ' |
Restructuring_Narrative_Detail
Restructuring - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
employee | employees | employees | employee | BioReliance and Research Organics [Member] | Reduction of Value of Assets Impacted by Restructuring [Member] | Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exit activities, estimated number of employees impacted | 90 | ' | 130 | 30 | ' | ' | ' | ' | ' | 240 | ' | ' | ' |
Total expected restructuring costs | ' | ' | ' | ' | ' | $12 | $0 | ' | ' | $41 | ' | $9 | $3 |
Restructuring costs recognized during period | ' | ' | ' | ' | 9 | 10 | 9 | 8 | 24 | ' | ' | ' | ' |
Licensing dispute settlement | ' | 7 | ' | ' | ' | 7 | 0 | 0 | ' | ' | ' | ' | ' |
Costs related to mergers and acquisitions | ' | $5 | ' | ' | ' | $5 | $5 | $0 | ' | ' | $5 | ' | ' |
Restructuring_Summary_of_Restr
Restructuring - Summary of Restructuring and Other Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | $9 | $10 | $9 | $8 | $24 |
Licensing dispute settlement | 7 | ' | 7 | 0 | 0 | ' |
Costs related to mergers and acquisitions | 5 | ' | 5 | 5 | 0 | ' |
Total restructuring and other charges | ' | ' | $22 | $14 | $8 | ' |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Effective tax rate | 25.30% | 29.80% | 28.60% |
Undistributed earnings of the Company's international subsidiaries | $1,417 | ' | ' |
Operating loss carryforward, subject to expiration | 9 | ' | ' |
Operating loss carryforwards, valuation allowance | 4 | ' | ' |
Net unrecognized tax benefits that if recognized would affect the annual effective tax rate | 24 | 20 | 21 |
Decrease due to audit activity and statute of limitation expirations | 2 | ' | ' |
Unrecognized tax benefits and expense | 0 | 1 | 2 |
Interest, net of tax and penalties accrued | $3 | $3 | ' |
Maximum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Range of years, deferred tax expense | '2033 | ' | ' |
Minimum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Range of years, deferred tax expense | '2014 | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
United States operations | $365 | $386 | $438 |
International operations | 292 | 269 | 202 |
Total income before taxes | $657 | $655 | $640 |
Income_Taxes_Provision_For_Inc
Income Taxes - Provision For Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $118 | $108 | $136 |
State and local | 12 | 13 | 8 |
International | 40 | 40 | 38 |
Total current | 170 | 161 | 182 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
Federal | -5 | 15 | -6 |
State and local | -3 | 3 | -3 |
International | 4 | 16 | 10 |
Total deferred | -4 | 34 | 1 |
Provision for income taxes | $166 | $195 | $183 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
U.S. manufacturing deduction | -1.10% | -1.20% | -2.00% |
State and local income taxes, net of federal benefit | 1.00% | 1.70% | 0.80% |
Research and development credits | -0.60% | 0.00% | -0.60% |
Lower international tax rates | -6.80% | -5.20% | -3.50% |
Tax audits and unrecognized tax positions | 0.60% | -0.20% | -0.80% |
Tax rate and law changes | -1.40% | -0.20% | 0.00% |
Other, net | -1.40% | -0.10% | -0.30% |
Total effective tax rate | 25.30% | 29.80% | 28.60% |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets And Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventories | $23 | $27 |
Net operating loss carryforwards | 9 | 14 |
Post-retirement benefits and other employee benefits | 43 | 46 |
Pension benefits | 4 | 20 |
Other | 22 | 19 |
Total deferred tax assets | 101 | 126 |
Valuation allowances | -4 | -5 |
Net deferred tax assets | 97 | 121 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment, and intangibles | -131 | -138 |
Total deferred tax liabilities | -131 | -138 |
Net deferred tax assets (liabilities) | ($34) | ($17) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities Netted by Taxing (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ' | ' |
Deferred taxes | $31 | $32 |
Other assets | 11 | 17 |
Other accrued expenses | -2 | -2 |
Deferred tax liabilities | -74 | -64 |
Net deferred tax assets (liabilities) | ($34) | ($17) |
Income_Taxes_Changes_in_Total_
Income Taxes - Changes in Total Gross Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $33 | $33 | $21 |
Tax positions related to current year: | ' | ' | ' |
Additions | 7 | 4 | 6 |
Reductions | 0 | 0 | 0 |
Tax positions related to prior years: | ' | ' | ' |
Additions | 2 | 1 | 18 |
Reductions | -1 | -1 | -3 |
Settlements | 0 | 0 | 0 |
Statutes of limitation expirations | -4 | -4 | -9 |
Balance, end of year | $37 | $33 | $33 |
Common_Stock_Narrative_Details
Common Stock - Narrative (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 03, 2012 | Jan. 03, 2011 | Dec. 31, 2013 | Dec. 31, 2003 | Dec. 31, 2003 | Dec. 31, 2003 | Dec. 31, 2003 | Dec. 31, 2003 | Dec. 31, 2013 | Dec. 31, 2013 |
multiple | Minimum | Maximum | Performance Units | Performance Units | Performance Units | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Stock awards | Stock awards | 2003 LTIP | 2003 LTIP | 2003 LTIP | 2003 LTIP | 2003 LTIP | 2003 LTIP | 2003 LTIP | 2003 LTIP | |||
Maximum | Initial election date | First business day in January | Each shareholders' meeting | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | ||||||||||||||||
Vesting on first anniversary | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution of maximum Company's common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' |
Awards of options to directors to purchase common stock, number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | 1,200 | 10,000 | ' | ' |
Additional awards of options to Director to purchase shares, minimum service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' |
Reduced option grants to directors as a multiple of annual cash retainer | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction to additional awards of options to Director, as a percent of annual equity grant award, starting next fiscal period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' |
Percent of award to directors other than options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' |
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.33% |
Company's common stock to be awarded including shares forfeited or swapped | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 999,368 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized expense related to nonvested stock-based compensation arrangements | $22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of unrecognized expense related to nonvested stock-based compensation arrangements | '1 year 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 22 | 17 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit related to stock-based compensation expense | 7 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of options | ' | ' | ' | '1 year 0 months 0 days | '3 years 0 months 0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option expiration term | '10 years 0 months 0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock options granted | 791,760 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 791,760 | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value, options exercised during period | $35 | $52 | $30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of options granted during period | $20.11 | $18.67 | $17.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance unit awards | ' | ' | ' | ' | ' | 104,545 | 224,560 | 220,305 | 98,165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and paid in period | ' | ' | ' | ' | ' | 510 | ' | ' | 17,862 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date, fair value of performance units | ' | ' | ' | ' | ' | $75 | $71.73 | $63.89 | $74.30 | $71.45 | $61.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares of Company stock received by non-employee Director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | 1,200 | ' | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Fair_Value_Assump
Common Stock - Fair Value Assumptions of Stock Options Under The Black-Scholes Option-Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average Fair Value Assumptions [Abstract] | ' | ' | ' |
Expected term | '5 years | '4 years 10 months 24 days | '4 years 9 months 18 days |
Expected volatility | 31.86% | 32.92% | 30.68% |
Risk-free interest rate | 0.98% | 0.80% | 2.17% |
Dividend yield | 1.13% | 1.11% | 1.13% |
Common_Stock_Stock_Options_Act
Common Stock - Stock Options Activity (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Number of Stock Options | ' |
Stock Options outstanding, January 1, 2013 (in shares) | 3,341,529 |
Granted (in shares) | 791,760 |
Exercised (in shares) | -788,982 |
Forfeited (in shares) | -38,010 |
Stock Options outstanding, December 31, 2013 (in shares) | 3,306,297 |
Stock Options exercisable, December 31, 2013 (in shares) | 2,214,272 |
Wtd. Avg. Exercise Price Per Share | ' |
Stock Options outstanding, January 1, 2013 (in dollars per share) | $47.03 |
Granted (in dollars per share) | $77.34 |
Exercised (in dollars per share) | $35.92 |
Forfeited (in dollars per share) | $68.07 |
Stock Options outstanding, December 31, 2013 (in dollars per share) | $56.70 |
Stock Options exercisable, December 31, 2013 (in dollars per share) | $47.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' |
Weighted average remaining contractual term, options outstanding | '5 years 10 months 10 days |
Weighted average remaining contractual term, options exercisable | '4 years 4 months 28 days |
Aggregate intrinsic value, options outstanding | $123 |
Aggregate intrinsic value, options exercisable | $102 |
Common_Stock_Nonvested_Perform
Common Stock - Non-vested Performance-based Units Activity (Details) (Performance Units, USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Performance Units | ' | ' | ' | |
Number of Performance Units | ' | ' | ' | |
Nonvested shares outstanding, January 1, 2013 (in shares) | 320,485 | ' | ' | |
Granted (in shares) | 104,545 | 224,560 | 220,305 | |
Vested (in shares) | -136,282 | [1] | ' | ' |
Forfeited (in shares) | -33,311 | [2] | ' | ' |
Nonvested shares outstanding, December 31, 2013 (in shares) | 255,437 | 320,485 | ' | |
Wtd. Avg. Grant Date Fair Value | ' | ' | ' | |
Nonvested shares outstanding, January 1, 2013 (in dollars per share) | $67.97 | ' | ' | |
Granted (in dollars per share) | $75 | $71.73 | $63.89 | |
Vested (in dollars per share) | $63.95 | [1] | ' | ' |
Forfeited (in dollars per share) | $67.59 | [2] | ' | ' |
Nonvested shares outstanding, December 31, 2013 (in dollars per share) | $72.45 | $67.97 | ' | |
[1] | Represents the entire amount of Performance Shares which vested during the year ended DecemberB 31, 2013. Of these vested Performance Shares, 510 were paid out in 2013 and the remainder were outstanding as of DecemberB 31, 2013. | |||
[2] | Includes reductions due to employee terminations and reductions as a result of the Company not meeting certain performance targets. |
Common_Stock_Restricted_Stock_
Common Stock - Restricted Stock Units Activity (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Restricted Stock Units (RSUs) | ' | ' | ' | |
Number of RSUs | ' | ' | ' | |
Nonvested shares outstanding, January 1, 2013 (in shares) | 50,000 | ' | ' | |
Granted (in shares) | 98,165 | ' | ' | |
Vested (in shares) | -17,862 | [1] | ' | ' |
Forfeited (in shares) | -6,527 | [2] | ' | ' |
Nonvested shares outstanding, December 31, 2013 (in shares) | 123,776 | 50,000 | ' | |
Wtd. Avg. Grant Date Fair Value | ' | ' | ' | |
Nonvested shares outstanding, January 1, 2013 (in dollars per share) | $66.16 | ' | ' | |
Granted (in dollars per share) | $74.30 | $71.45 | $61.24 | |
Vested (in dollars per share) | $66.02 | [1] | ' | ' |
Forfeited (in dollars per share) | $71.73 | [2] | ' | ' |
Nonvested shares outstanding, December 31, 2013 (in dollars per share) | $72.35 | $66.16 | ' | |
[1] | Represents the entire amount of RSUs that vested during the year ended DecemberB 31, 2013. Of the RSUs that vested, 17,862 were paid out in 2013. | |||
[2] | Includes reductions due to employee terminations. |
Common_Stock_Summary_of_the_Cr
Common Stock - Summary of the Criteria for the Performance Share Awards (Details) (Performance Units, 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 [Line Items] | ' | ' | ' | |||
Service Period | '3 years | [1] | '3 years | '3 years | ||
Performance criteria, percent based on return on invested capital | 40.00% | [1] | 40.00% | 50.00% | ||
Performance criteria, percent based on three-year average sales growth | 40.00% | [1] | 40.00% | 50.00% | ||
Performance criteria, percent based on total shareholder return relative to certain competitors | 20.00% | [1] | 20.00% | ' | ||
Grants subject to different performance criteria | 30,290 | ' | ' | |||
Grants subject to different performance criteria, performance period | '3 years | ' | ' | |||
Cumulative free cash flow basis used for awards with different performance criteria | $900 | ' | ' | |||
Vesting on three-year anniversary | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Award vesting percentage for awards with different performance criteria | 50.00% | ' | ' | |||
Vesting on five-year anniversary | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Award vesting percentage for awards with different performance criteria | 50.00% | ' | ' | |||
Minimum | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Payout Range | 0.00% | [1],[2] | 0.00% | [2] | 0.00% | [2] |
Maximum | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Payout Range | 200.00% | [1],[2] | 200.00% | [2] | 150.00% | [2] |
[1] | Of the 104,545 Performance Shares awarded in 2013, 30,290 were awarded on September 3, 2013 and subject to different performance criteria than those noted within the table above. These Performance Shares have a three year performance period beginning July 1, 2013 and ending June 30, 2016, with 50 percent vesting on the three-year anniversary of the award date and 50 percent vesting on the five-year anniversary of the award date. Performance is measured by the Company achieving "Cumulative Free Cash Flow" during the performance period equal to or greater than $900. For these specific awards, the Company expenses the expected cost of the awards over the respective vesting periods beginning on the grant date with half ending on the three-year anniversary of the award date and half ending on the five-year anniversary of the award date. | |||||
[2] | The payout range is determined at the end of the performance period. |
Company_Operations_by_Business2
Company Operations by Business Unit - Net Sales for the Company's Business Units (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $2,704 | $2,623 | $2,505 |
Research | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 1,402 | 1,398 | 1,427 |
Applied | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 629 | 598 | 581 |
SAFC | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $673 | $627 | $497 |
Company_Operations_by_Business3
Company Operations by Business Unit - United States Sales to Unaffiliated Customers Outside of the United States (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting [Abstract] | ' | ' | ' |
Net sales to unaffiliated customers outside the U.S. | $60 | $61 | $48 |
Company_Operations_by_Business4
Company Operations by Business Unit - Geographic Financial Information - Net Sales to Unaffiliated Customers (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $2,704 | $2,623 | $2,505 |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 1,026 | 987 | 898 |
Other International | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $1,678 | $1,636 | $1,607 |
Company_Operations_by_Business5
Company Operations by Business Unit - Geographic Financial Information - Long-lived Assets (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
United States | $880 | $900 | $825 |
UNITED STATES | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
United States | 523 | 549 | 506 |
Other Countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
United States | $357 | $351 | $319 |
Pension_and_PostRetirement_Ben2
Pension and Post-Retirement Benefits - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected increase in medical costs during period | 7.69% | ' | ' |
Expected decrease in medical costs in 2030 and thereafter | 4.50% | ' | ' |
Cost of 401(k) retirement savings plan | $22 | $11 | $9 |
Equity Securities | United Kingdom | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 70.00% | ' | ' |
US and International equities | United States | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 75.00% | ' | ' |
UK listed companies equities | United Kingdom | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 42.00% | ' | ' |
Non-UK listed companies equities | United Kingdom | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 28.00% | ' | ' |
Non-UK listed companies equities | Switzerland | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 27.50% | ' | ' |
Bonds | United States | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 25.00% | ' | ' |
Bonds | United Kingdom | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 30.00% | ' | ' |
Bonds | Switzerland | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 54.50% | ' | ' |
Real Estate | Switzerland | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 15.00% | ' | ' |
Other | Switzerland | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target plan assets investment allocation | 3.00% | ' | ' |
Pension_and_PostRetirement_Ben3
Pension and Post-Retirement Benefits - Reconciliation of Funded Status of the Plans and the Amounts Included in the Company's Consolidated Balance Sheets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
United States | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Beginning obligations | $178 | $170 | ' |
Service cost | 0 | 10 | 8 |
Interest cost | 6 | 7 | 7 |
Participant contributions | 0 | 0 | ' |
Defined Benefit Plan, Plan Amendments | 0 | 0 | ' |
Defined Benefit Plan, Curtailments | 0 | 16 | ' |
Plan curtailments | 7 | 0 | ' |
Benefits and expenses paid | -1 | -6 | ' |
Actuarial loss (gain) | -7 | 13 | ' |
Changes in foreign currency exchange rates | 0 | 0 | ' |
Ending obligations | 169 | 178 | 170 |
Changes in plans assets | ' | ' | ' |
Beginning fair value | 158 | 138 | ' |
Actual return on plan assets | 31 | 19 | ' |
Employer contributions | 0 | 7 | ' |
Participant contributions | 0 | 0 | ' |
Plan settlements | -7 | 0 | ' |
Benefits and expenses paid | -1 | -6 | ' |
Changes in foreign currency exchange rates | 0 | 0 | ' |
Ending fair value | 181 | 158 | 138 |
Reconciliation of funded status | ' | ' | ' |
Funded status | 12 | -20 | ' |
Net Consolidated Balance Sheet liability | 12 | -20 | ' |
International | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Beginning obligations | 299 | 260 | ' |
Service cost | 9 | 8 | 9 |
Interest cost | 8 | 9 | 9 |
Participant contributions | 3 | 3 | ' |
Defined Benefit Plan, Plan Amendments | -11 | 0 | ' |
Defined Benefit Plan, Curtailments | 0 | 0 | ' |
Plan curtailments | 6 | 0 | ' |
Benefits and expenses paid | -7 | -5 | ' |
Actuarial loss (gain) | -12 | 16 | ' |
Changes in foreign currency exchange rates | 6 | 8 | ' |
Ending obligations | 289 | 299 | 260 |
Changes in plans assets | ' | ' | ' |
Beginning fair value | 228 | 198 | ' |
Actual return on plan assets | 20 | 17 | ' |
Employer contributions | 8 | 8 | ' |
Participant contributions | 3 | 3 | ' |
Plan settlements | -3 | 0 | ' |
Benefits and expenses paid | -7 | -5 | ' |
Changes in foreign currency exchange rates | 6 | 7 | ' |
Ending fair value | 255 | 228 | 198 |
Reconciliation of funded status | ' | ' | ' |
Funded status | -34 | -71 | ' |
Net Consolidated Balance Sheet liability | -34 | -71 | ' |
Post-Retirement Medical Benefit Plans | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Beginning obligations | 47 | 52 | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 2 | 3 |
Participant contributions | 1 | 1 | ' |
Defined Benefit Plan, Plan Amendments | 0 | 0 | ' |
Defined Benefit Plan, Curtailments | 0 | 0 | ' |
Plan curtailments | 0 | 0 | ' |
Benefits and expenses paid | -2 | -1 | ' |
Actuarial loss (gain) | -9 | -8 | ' |
Changes in foreign currency exchange rates | 0 | 0 | ' |
Ending obligations | 39 | 47 | 52 |
Changes in plans assets | ' | ' | ' |
Beginning fair value | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Employer contributions | 1 | 0 | ' |
Participant contributions | 1 | 1 | ' |
Plan settlements | 0 | 0 | ' |
Benefits and expenses paid | -2 | -1 | ' |
Changes in foreign currency exchange rates | 0 | 0 | ' |
Ending fair value | 0 | 0 | 0 |
Reconciliation of funded status | ' | ' | ' |
Funded status | -39 | -47 | ' |
Net Consolidated Balance Sheet liability | ($39) | ($47) | ' |
Pension_and_PostRetirement_Ben4
Pension and Post-Retirement Benefits - Amounts Recognized in Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amounts recognized in the Company's Consolidated Balance Sheets: For years after adoption of the funded status provisions of SFAS 158 | ' | ' |
Current liabilities | ($2) | ($3) |
United States | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 12 | 0 |
Amounts recognized in the Company's Consolidated Balance Sheets: For years after adoption of the funded status provisions of SFAS 158 | ' | ' |
Current liabilities | 0 | 0 |
Pension and post-retirement benefits | 0 | -20 |
Net amount recognized | 12 | -20 |
Reconciliation of amounts recognized in the Company's Consolidated Balance Sheets | ' | ' |
Prior service (cost) credit | 0 | 0 |
Net (loss) gain | -30 | -58 |
Accumulated other comprehensive (loss) income | -30 | -58 |
Accumulated contributions in excess of (less than) net periodic benefit cost | 42 | 38 |
Net Consolidated Balance Sheet liability | 12 | -20 |
International | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 2 | 0 |
Amounts recognized in the Company's Consolidated Balance Sheets: For years after adoption of the funded status provisions of SFAS 158 | ' | ' |
Current liabilities | 0 | 0 |
Pension and post-retirement benefits | -36 | -71 |
Net amount recognized | -34 | -71 |
Reconciliation of amounts recognized in the Company's Consolidated Balance Sheets | ' | ' |
Prior service (cost) credit | 11 | -1 |
Net (loss) gain | -39 | -65 |
Accumulated other comprehensive (loss) income | -28 | -66 |
Accumulated contributions in excess of (less than) net periodic benefit cost | -6 | -5 |
Net Consolidated Balance Sheet liability | -34 | -71 |
Post-Retirement Medical Benefit Plans | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | 0 |
Amounts recognized in the Company's Consolidated Balance Sheets: For years after adoption of the funded status provisions of SFAS 158 | ' | ' |
Current liabilities | -2 | -3 |
Pension and post-retirement benefits | -37 | -44 |
Net amount recognized | -39 | -47 |
Reconciliation of amounts recognized in the Company's Consolidated Balance Sheets | ' | ' |
Prior service (cost) credit | 4 | 5 |
Net (loss) gain | 15 | 7 |
Accumulated other comprehensive (loss) income | 19 | 12 |
Accumulated contributions in excess of (less than) net periodic benefit cost | -58 | -59 |
Net Consolidated Balance Sheet liability | ($39) | ($47) |
Pension_and_PostRetirement_Ben5
Pension and Post-Retirement Benefits - Post Retirement Benefits Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts recognized as a component of net periodic benefit cost | ' | ' | ' |
Amortization or settlement recognition of net loss | ($4) | ($6) | ($4) |
United States | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 0 | 0 |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ' | ' | ' |
Net loss (gain) arising during the year | 27 | 11 | -15 |
Effect of changes in foreign currency exchange rates on amounts included in AOCI | 0 | 0 | 0 |
Amounts recognized as a component of net periodic benefit cost | ' | ' | ' |
Amortization or curtailment recognition of prior service credit | 0 | 0 | 0 |
Amortization or settlement recognition of net loss | -1 | -5 | -4 |
Total | -28 | -16 | 11 |
Total recognized in net periodic benefit cost and other comprehensive loss | -31 | -5 | 20 |
Estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ' | ' | ' |
Prior service (cost) credit | 0 | 0 | 0 |
Net loss | 0 | -1 | -5 |
Total estimated amortization | 0 | -1 | -5 |
International | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | -11 | 0 | 0 |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ' | ' | ' |
Net loss (gain) arising during the year | 21 | -9 | -19 |
Effect of changes in foreign currency exchange rates on amounts included in AOCI | 0 | 2 | -1 |
Amounts recognized as a component of net periodic benefit cost | ' | ' | ' |
Amortization or curtailment recognition of prior service credit | 0 | 0 | 0 |
Amortization or settlement recognition of net loss | -6 | -4 | -2 |
Total | -38 | 7 | 16 |
Total recognized in net periodic benefit cost and other comprehensive loss | -28 | 18 | 26 |
Estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ' | ' | ' |
Prior service (cost) credit | 1 | 0 | 0 |
Net loss | -1 | -4 | -4 |
Total estimated amortization | 0 | -4 | -4 |
Post-Retirement Medical Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 0 | 0 |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ' | ' | ' |
Net loss (gain) arising during the year | 8 | 8 | -2 |
Effect of changes in foreign currency exchange rates on amounts included in AOCI | 0 | 0 | 0 |
Amounts recognized as a component of net periodic benefit cost | ' | ' | ' |
Amortization or curtailment recognition of prior service credit | 1 | 1 | 1 |
Amortization or settlement recognition of net loss | 0 | 0 | 0 |
Total | -7 | -7 | 3 |
Total recognized in net periodic benefit cost and other comprehensive loss | -6 | -5 | 6 |
Estimated amounts that will be amortized from accumulated other comprehensive income over the next fiscal year | ' | ' | ' |
Prior service (cost) credit | 1 | 1 | 1 |
Net loss | 1 | 0 | 0 |
Total estimated amortization | $2 | $1 | $1 |
Pension_and_PostRetirement_Ben6
Pension and Post-Retirement Benefits - Components of the Net Periodic Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
United States | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | $0 | $10 | $8 |
Interest cost | 6 | 7 | 7 |
Expected return on plan assets | -11 | -11 | -11 |
Amortization | 1 | 5 | 5 |
Settlement loss | 1 | 0 | 0 |
Net periodic benefit cost | -3 | 11 | 9 |
International | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | 9 | 8 | 9 |
Interest cost | 8 | 9 | 9 |
Expected return on plan assets | -11 | -10 | -10 |
Amortization | 4 | 4 | 2 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | 10 | 11 | 10 |
Post-Retirement Medical Benefit Plans | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 2 | 3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization | -1 | -1 | -1 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $1 | $2 | $3 |
Pension_and_PostRetirement_Ben7
Pension and Post-Retirement Benefits - Rate Assumptions Associated with the Pension and Post-Retirement Medical Benefit Plans to Determine Benefit Obligations and Additional Year-End Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Additional year-end information | ' | ' |
Fair value of plan assets | $14 | $0 |
United States | ' | ' |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ' | ' |
Discount rate | 4.45% | 3.60% |
Measurement date | 'Dec-31 | 'Dec-31 |
Additional year-end information | ' | ' |
Accumulated benefit obligation | 169 | 178 |
United States | Plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Additional year-end information | ' | ' |
Projected benefit obligation | 0 | 178 |
Accumulated benefit obligation | 0 | 178 |
Fair value of plan assets | 0 | 158 |
United States | Plans with projected benefit obligations in excess of plan assets: | ' | ' |
Additional year-end information | ' | ' |
Projected benefit obligation | 0 | 178 |
Fair value of plan assets | 0 | 158 |
International | ' | ' |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ' | ' |
Discount rate | 3.36% | 2.96% |
Compensation rate increase | 2.74% | 2.59% |
Measurement date | 'Dec-31 | 'Dec-31 |
Additional year-end information | ' | ' |
Accumulated benefit obligation | 271 | 268 |
International | Plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Additional year-end information | ' | ' |
Projected benefit obligation | 189 | 206 |
Accumulated benefit obligation | 176 | 183 |
Fair value of plan assets | 153 | 140 |
International | Plans with projected benefit obligations in excess of plan assets: | ' | ' |
Additional year-end information | ' | ' |
Projected benefit obligation | 189 | 299 |
Fair value of plan assets | 153 | 228 |
Post-Retirement Medical Benefit Plans | ' | ' |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ' | ' |
Discount rate | 4.80% | 3.90% |
Measurement date | 'Dec-31 | 'Dec-31 |
Post-Retirement Medical Benefit Plans | Plans with projected benefit obligations in excess of plan assets: | ' | ' |
Additional year-end information | ' | ' |
Projected benefit obligation | 39 | 47 |
Fair value of plan assets | $0 | $0 |
Pension_and_PostRetirement_Ben8
Pension and Post-Retirement Benefits - Rate Assumptions Associated with the Pension and Post-Retirement Medical Benefit Plans to Determine Periodic Pension Costs (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
United States | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.60% | 4.35% | 5.05% |
Expected rate of return on plan assets | 7.75% | 8.25% | 8.25% |
Compensation rate increase | ' | 3.55% | 3.55% |
International | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 2.96% | 3.52% | 3.69% |
Expected rate of return on plan assets | 4.87% | 4.98% | 4.85% |
Compensation rate increase | 2.59% | 2.95% | 3.05% |
Post-Retirement Medical Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.90% | 4.50% | 5.25% |
Pension_and_PostRetirement_Ben9
Pension and Post-Retirement Benefits - Expected Employer Contributions and Benefit Payments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
United States | ' | |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | |
Expected employer contributions | $0 | |
Expected benefit payments for year ending December 31st | ' | |
2014 | 13 | |
2015 | 13 | |
2016 | 13 | |
2017 | 13 | |
2018 | 13 | |
Next 5 years | 58 | |
International | ' | |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | |
Expected employer contributions | 6 | |
Expected benefit payments for year ending December 31st | ' | |
2014 | 6 | |
2015 | 6 | |
2016 | 8 | |
2017 | 7 | |
2018 | 8 | |
Next 5 years | 48 | |
Post-Retirement Medical Benefit Plans | ' | |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | |
Expected employer contributions | 2 | [1] |
Expected benefit payments for year ending December 31st | ' | |
2014 | 2 | [1] |
2015 | 2 | [1] |
2016 | 2 | [1] |
2017 | 3 | [1] |
2018 | 3 | [1] |
Next 5 years | 13 | [1] |
Expected Medicare Subsidy Receipts | ' | |
Expected benefit payments for year ending December 31st | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Next 5 years | $2 | |
[1] | Expected payments for Post-Retirement Medical Benefit Plans are shown net of the expected Medicare subsidy receipts. |
Recovered_Sheet1
Pension and Post-Retirement Benefits - Target Asset Allocations and Weighted Average Asset Allocations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Equity Securities | United States | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 57.00% |
Target Asset Allocations, Maximum | 93.00% |
Weighted Average Asset Allocations | 75.00% |
Equity Securities | International | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 38.00% |
Target Asset Allocations, Maximum | 50.00% |
Weighted Average Asset Allocations | 45.00% |
Real Estate | United States | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 0.00% |
Target Asset Allocations, Maximum | 0.00% |
Weighted Average Asset Allocations | 0.00% |
Real Estate | International | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 6.00% |
Target Asset Allocations, Maximum | 12.00% |
Weighted Average Asset Allocations | 10.00% |
Debt Securities | United States | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 10.00% |
Target Asset Allocations, Maximum | 40.00% |
Weighted Average Asset Allocations | 25.00% |
Debt Securities | International | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 36.00% |
Target Asset Allocations, Maximum | 57.00% |
Weighted Average Asset Allocations | 41.00% |
Other | United States | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 0.00% |
Target Asset Allocations, Maximum | 5.00% |
Weighted Average Asset Allocations | 0.00% |
Other | International | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Target Asset Allocations, Minimum | 0.00% |
Target Asset Allocations, Maximum | 10.00% |
Weighted Average Asset Allocations | 4.00% |
Recovered_Sheet2
Pension and Post-Retirement Benefits - Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Corporate stocks b common | ' | $8 | |
Government debt | ' | 8 | |
Corporate and other non-government debt | ' | 16 | |
Real estate | 22 | 22 | |
Common/collective trust funds b equity | 260 | 223 | |
Common/collective trust funds b government debt | 18 | 12 | |
Common/collective trust funds b Corporate and other non-government debt | 126 | 88 | |
Common/collective trust funds b real estate | 1 | ' | |
Cash and cash equivalents | 9 | 4 | |
Other | ' | 5 | |
Total | 436 | 386 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Corporate stocks b common | ' | 8 | [1] |
Government debt | ' | 8 | [1] |
Corporate and other non-government debt | ' | 16 | [1] |
Real estate | 0 | 0 | [1] |
Common/collective trust funds b equity | 0 | 0 | [1] |
Common/collective trust funds b government debt | 0 | 0 | [1] |
Common/collective trust funds b Corporate and other non-government debt | 0 | 0 | [1] |
Common/collective trust funds b real estate | 0 | ' | |
Cash and cash equivalents | 5 | 4 | [1] |
Other | ' | 0 | [1] |
Total | 5 | 36 | [1] |
Significant Other Observable Inputs (Level 2) | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Corporate stocks b common | ' | 0 | [2] |
Government debt | ' | 0 | [2] |
Corporate and other non-government debt | ' | 0 | [2] |
Real estate | 22 | 22 | [2] |
Common/collective trust funds b equity | 260 | 223 | [2] |
Common/collective trust funds b government debt | 18 | 12 | [2] |
Common/collective trust funds b Corporate and other non-government debt | 126 | 88 | [2] |
Common/collective trust funds b real estate | 1 | ' | |
Cash and cash equivalents | 4 | 0 | [2] |
Other | ' | 5 | [2] |
Total | $431 | $350 | [2] |
[1] | Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. | ||
[2] | Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets. Equity securities categorized as Level 2 assets are primarily non-exchange-traded commingled or collective funds where the underlying securities have observable prices available from active markets. Valuation is based on the net asset value of fund units held as derived from the fair value of the underlying assets. |
Other_Assets_and_Liabilities_O
Other Assets and Liabilities - Other Current Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets, Current [Abstract] | ' | ' |
Other receivables | $36 | $36 |
Prepaid expenses | 22 | 29 |
Certificates of deposit | 27 | 27 |
Other current assets | 2 | 3 |
Total other current assets | $87 | $95 |
Other_Assets_and_Liabilities_O1
Other Assets and Liabilities - Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Other investments | $11 | $16 |
Cash value of life insurance policies | 34 | 29 |
Deferred taxes | 11 | 17 |
Long Term Certificates of Deposit | 33 | 0 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 14 | 0 |
Other non-current assets | 29 | 27 |
Total other assets | $132 | $89 |
Other_Assets_and_Liabilities_O2
Other Assets and Liabilities - Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities, Current [Abstract] | ' | ' |
Legal and professional | $5 | $6 |
Pension and post-retirement | 2 | 3 |
Freight | 7 | 7 |
Other accrued expenses | 63 | 61 |
Total other current liabilities | $77 | $77 |
Other_Assets_and_Liabilities_O3
Other Assets and Liabilities - Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities [Abstract] | ' | ' |
Deferred compensation | $31 | $31 |
Non-current income taxes | 37 | 33 |
Other non-current liabilities | 12 | 10 |
Total other non-current liabilities | $80 | $74 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' |
Net income available to common shareholders | $491 | $460 | $457 |
Weighted average shares | ' | ' | ' |
Basic shares | 120,000,000 | 121,000,000 | 121,000,000 |
Effect of dilutive securitiesboptions outstanding | 1,000,000 | 1,000,000 | 2,000,000 |
Diluted shares | 121,000,000 | 122,000,000 | 123,000,000 |
Net income per share - Basic (in dollars per share) | $4.09 | $3.80 | $3.78 |
Net income per share - Diluted (in dollars per share) | $4.06 | $3.77 | $3.72 |
Antidilutive Shares Excluded From Earnings Per Share Calculation [Abstract] | ' | ' | ' |
Number of potential common shares excluded from the calculation of weighted average shares - considered to be antidilutive | 1,000,000 | 1,000,000 | 0 |
Share_Repurchases_Details
Share Repurchases (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Repurchase Agreements [Abstract] | ' | ' |
Stock repurchases (in shares) | 101,000,000 | 99,000,000 |
Authorized shares repurchase (in shares) | 110,000,000 | ' |
Shares outstanding (in shares) | 119,000,000 | 120,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign Currency Translation Adjustment Income (Loss), Net | ' | ' | ' |
Beginning balance | $141 | $118 | $157 |
Other comprehensive income before reclassification | 0 | 23 | -39 |
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 23 | -39 |
Ending balance | 141 | 141 | 118 |
Pension and Post-Retirement Benefit Plans Income (Loss), Net | ' | ' | ' |
Beginning balance | -78 | -88 | -66 |
Other comprehensive income before reclassification | 51 | 4 | -26 |
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | -4 | -6 | -4 |
Net current-period other comprehensive income (loss) | 55 | 10 | -22 |
Ending balance | -23 | -78 | -88 |
Unrealized Gain (Loss) on Securities, Net | ' | ' | ' |
Beginning balance | 3 | 0 | 4 |
Other comprehensive income before reclassification | 3 | 3 | -3 |
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | 6 | 0 | 1 |
Net current-period other comprehensive income (loss) | -3 | 3 | -4 |
Ending balance | 0 | 3 | 0 |
Unrealized Gain (Loss) on cash flow hedges, Net | ' | ' | ' |
Beginning balance | 3 | 0 | ' |
Other comprehensive income before reclassification | 4 | 3 | ' |
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | 5 | 0 | ' |
Net current-period other comprehensive income (loss) | -1 | 3 | ' |
Ending balance | 2 | 3 | 0 |
Total | ' | ' | ' |
Beginning balance | 69 | 30 | 95 |
Other comprehensive income before reclassification | 58 | 33 | -68 |
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | 7 | -6 | -3 |
Net current-period other comprehensive income (loss) | 51 | 39 | -65 |
Ending balance | 120 | 69 | 30 |
Amount Recorded as Cost of Products and Services Sold [Member] | ' | ' | ' |
Total | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | 5 | ' | ' |
Amount Recorded as SG&A [Member] | ' | ' | ' |
Total | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | $2 | $6 | $3 |