Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
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 | 118,974,827 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $701 | $681 | $1,390 | $1,356 |
Cost of products and services sold | 343 | 340 | 681 | 671 |
Gross profit | 358 | 341 | 709 | 685 |
Selling, general and administrative expenses | 157 | 147 | 317 | 308 |
Research and development expenses | 16 | 16 | 32 | 33 |
Other charges | 1 | 12 | 2 | 12 |
Operating income | 184 | 166 | 358 | 332 |
Interest, net | 0 | 1 | 1 | 2 |
Income before income taxes | 184 | 165 | 357 | 330 |
Provision for income taxes | 51 | 46 | 98 | 89 |
Net income | $133 | $119 | $259 | $241 |
Net income per share - Basic (in dollars per share) | $1.12 | $0.99 | $2.18 | $2.01 |
Net income per share - Diluted (in dollars per share) | $1.11 | $0.98 | $2.16 | $1.99 |
Weighted average number of shares outstanding - Basic (in shares) | 119 | 120 | 119 | 120 |
Weighted average number of shares outstanding - Diluted (in shares) | 120 | 121 | 120 | 121 |
Dividends per share (in dollars per share) | $0.23 | $0.21 | $0.46 | $0.43 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $133 | $119 | $259 | $241 |
Other comprehensive income/(loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation gain/(loss), net | 24 | -17 | 30 | -72 |
Pension and post retirement, net | -2 | 0 | 16 | 2 |
Unrealized (loss) on securities, net | 0 | -4 | 0 | -2 |
Unrealized gain/(loss) on forward exchange contracts, net | -1 | -1 | -3 | 10 |
Total other comprehensive income/(loss) | 21 | -22 | 43 | -62 |
Comprehensive income | $154 | $97 | $302 | $179 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $810 | $722 |
Accounts receivable | 421 | 382 |
Inventories | 722 | 699 |
Deferred taxes | 36 | 31 |
Other | 95 | 87 |
Total current assets | 2,084 | 1,921 |
Property, plant and equipment: | ' | ' |
Property, plant and equipment | 2,154 | 2,098 |
Less - accumulated depreciation | -1,339 | -1,292 |
Property, plant and equipment, net | 815 | 806 |
Goodwill | 700 | 691 |
Intangibles, net | 245 | 255 |
Other | 141 | 132 |
Total assets | 3,985 | 3,805 |
Current liabilities: | ' | ' |
Notes payable | 44 | 65 |
Accounts payable | 176 | 152 |
Payroll | 55 | 64 |
Income taxes | 34 | 25 |
Other | 83 | 77 |
Total current liabilities | 392 | 383 |
Long-term debt | 300 | 300 |
Pension and post-retirement benefits | 56 | 73 |
Deferred taxes | 66 | 74 |
Other | 87 | 80 |
Total liabilities | 901 | 910 |
Stockholders' equity: | ' | ' |
Preferred stock, $1.00 par value; 10 million shares authorized at June 30, 2014, none authorized at December 31, 2013; none issued or outstanding at June 30, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $1.00 par value; 450 million shares authorized at June 30, 2014 and 300 million shares authorized at December 31, 2013; 202 million shares issued at June 30, 2014 and December 31, 2013; 119 million shares outstanding at June 30, 2014 and December 31, 2013 | 202 | 202 |
Capital in excess of par value | 348 | 322 |
Common stock in treasury, at cost, 83 million shares at June 30, 2014 and December 31, 2013 | -2,491 | -2,407 |
Retained earnings | 4,862 | 4,658 |
Accumulated other comprehensive income | 163 | 120 |
Total stockholders' equity | 3,084 | 2,895 |
Total liabilities and stockholders' equity | $3,985 | $3,805 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, par value (in dollars per share) | $1 | ' |
Preferred Stock, shares authorized | 10,000,000 | 0 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $1 | $1 |
Common Stock, shares authorized | 450,000,000 | 300,000,000 |
Common Stock, shares issued | 202,000,000 | 202,000,000 |
Common Stock, shares outstanding | 119,000,000 | 119,000,000 |
Common Stock in treasury, shares | 83,000,000 | 83,000,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $259 | $241 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 66 | 69 |
Deferred income taxes | -13 | -3 |
Stock-based compensation expense | 12 | 13 |
Other | -2 | -9 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -37 | -62 |
Inventories | -18 | -1 |
Accounts payable | 23 | -5 |
Income taxes | 12 | 3 |
Other, net | -15 | 23 |
Net cash provided by operating activities | 287 | 269 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -55 | -49 |
Purchases of investments | -6 | -75 |
Proceeds from sales of investments | 5 | 44 |
Proceeds from sale of net assets | 0 | 9 |
Other, net | -2 | -1 |
Net cash (used in) investing activities | -58 | -72 |
Cash flows from financing activities: | ' | ' |
Net issuance/(repayment) of short-term debt | -21 | -254 |
Dividends | -55 | -52 |
Share repurchases | -85 | -56 |
Proceeds from exercise of stock options | 14 | 19 |
Other, net | 1 | 5 |
Net cash (used in) financing activities | -146 | -338 |
Effect of foreign currency exchange rate changes on cash | 5 | -21 |
Net change in cash and cash equivalents | 88 | -162 |
Cash and cash equivalents at January 1 | 722 | 724 |
Cash and cash equivalents at June 30 | 810 | 562 |
Supplemental disclosures of cash flow information: | ' | ' |
Income taxes paid | 93 | 84 |
Interest paid, net of capitalized interest | $4 | $5 |
Basis_Of_Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Sigma-Aldrich Corporation, headquartered in St. Louis, Missouri, is a leading Life Science and Technology company whose biochemical and organic chemical products, kits and services 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. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information, the SEC's instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the notes to the Company's consolidated financial statements included in Part II, Item 8 of the Annual Report. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included in these consolidated financial statements. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principles-based approach to the recognition of revenue. The core principle of the standard is when an entity transfers goods or services to customers it will recognize revenue in an amount that reflects the consideration the entity expects to be entitled to for those goods or services. The update outlines a five-step model and related application guidance, which replaces most existing revenue recognition guidance. ASU 2014-09 also requires disclosures that will enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Company has not yet selected a transition method nor has it determined the effect, if any, of the standard on its ongoing financial condition and results of operations. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The principal categories of inventories are: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Finished goods | $ | 585 | $ | 575 | ||||
Work in process | 32 | 27 | ||||||
Raw materials | 105 | 97 | ||||||
Total | $ | 722 | $ | 699 | ||||
Intangible_Assets
Intangible Assets | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible Assets | ||||||||||||||||
The Company's amortizable and unamortizable intangible assets at June 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||
Cost | Accumulated Amortization | |||||||||||||||
June 30, | December 31, 2013 | June 30, | December 31, 2013 | |||||||||||||
2014 | 2014 | |||||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents | $ | 15 | $ | 14 | $ | 10 | $ | 9 | ||||||||
Licenses | 48 | 48 | 24 | 22 | ||||||||||||
Customer relationships | 256 | 254 | 85 | 77 | ||||||||||||
Technical knowledge | 49 | 48 | 21 | 19 | ||||||||||||
Other | 29 | 29 | 24 | 23 | ||||||||||||
Total amortizable intangible assets | $ | 397 | $ | 393 | $ | 164 | $ | 150 | ||||||||
Unamortizable intangible assets: | ||||||||||||||||
Goodwill | $ | 726 | $ | 717 | $ | 26 | $ | 26 | ||||||||
Trademarks and trade names | 20 | 20 | 8 | 8 | ||||||||||||
Total unamortizable intangible assets | $ | 746 | $ | 737 | $ | 34 | $ | 34 | ||||||||
The Company recorded amortization expense related to amortizable intangible assets of $6 and $7 for the three months ended June 30, 2014 and 2013, respectively. The Company recorded amortization expense related to amortizable intangible assets of $12 and $14 for the six months ended June 30, 2014 and 2013, 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 $22 to $25 from 2014 through 2018. | ||||||||||||||||
The change in net goodwill for the six months ended June 30, 2014 is as follows: | ||||||||||||||||
Balance at December 31, 2013 | $ | 691 | ||||||||||||||
Impact of foreign currency exchange rates | 9 | |||||||||||||||
Balance at June 30, 2014 | $ | 700 | ||||||||||||||
Debt
Debt | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Debt | ' | |||||||||||||
Debt | ||||||||||||||
Notes payable and long-term debt consisted of the following: | ||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Notes payable | ||||||||||||||
Commercial paper (1) | $ | 44 | 0.1 | % | $ | 65 | 0.1 | % | ||||||
Sigma-Aldrich Japan GK credit facilities (2) | — | — | — | — | ||||||||||
Other short-term credit facilities (3) | — | — | — | — | ||||||||||
Total notes payable | $ | 44 | 0.1 | % | $ | 65 | 0.1 | % | ||||||
Long-term debt | ||||||||||||||
Senior notes, due November 1, 2020 (4) | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
Total long-term debt | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
-1 | The Company has a $600 five-year revolving credit facility with a syndicate of banks in the U.S. that supports the Company's commercial paper program. The facility matures on May 10, 2018. At June 30, 2014 and December 31, 2013, the Company did not have any borrowings outstanding under the facility. 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 10.6 percent and 0.0 percent, respectively, at June 30, 2014. | |||||||||||||
-2 | Sigma-Aldrich Japan GK has two credit facilities with a total commitment of 2 billion Japanese Yen ($20), with one facility expiring April 30, 2015 and the other representing a line of credit with no expiration. There were no borrowings under the facilities at June 30, 2014. | |||||||||||||
-3 | There were no borrowings under these facilities, which have total commitments in U.S. Dollar equivalents of $3, at June 30, 2014. | |||||||||||||
-4 | The Company has $300 of 3.375 percent 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. | |||||||||||||
The Company has provided a guarantee for any outstanding borrowings from one of the short-term credit facilities of the wholly-owned Japanese subsidiary. At June 30, 2014, there were no existing events of default that would require the Company to honor this guarantee. | ||||||||||||||
Total interest expense incurred on short-term and long-term debt, net of amounts capitalized, was $2 for each of the three months ended June 30, 2014 and 2013. Total interest expense incurred on short-term and long-term debt, net of amounts capitalized, was $4 and $5 for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||
The fair value of long-term debt was approximately $311 and $298 at June 30, 2014 and December 31, 2013, 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 remaining life of the debt and current market interest rates. |
Financial_Derivatives_and_Risk
Financial Derivatives and Risk Management | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Financial Derivatives and Risk Management | ' | |||||||||
Financial Derivatives and Risk Management | ||||||||||
The Company conducts business in many parts of the world and is subject to risks associated with changing foreign currency exchange rates. Accordingly, the Company uses derivative instruments designated as cash flow hedges and net investment hedges, as well as derivative instruments that are not designated as hedging instruments to mitigate this risk. These derivative instruments are primarily comprised of foreign currency forward exchange contracts, and are classified within Level 2 of the fair value hierarchy for which 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 forward exchange 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 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. The Company uses 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 each of the three and six month periods ended June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, the Company had outstanding notional principal amounts of $366 and $298, respectively, in foreign currency forward exchange contracts associated with cash flow hedging transactions. | ||||||||||
The following table summarizes the fair values of the foreign currency forward exchange contracts designated as cash flow hedges at June 30, 2014 and December 31, 2013: | ||||||||||
Item | Reporting Location | June 30, 2014 | December 31, 2013 | |||||||
Forward exchange contracts asset derivative | Other current assets | $ | 3 | $ | 5 | |||||
Forward exchange contracts liability derivative | Other current liabilities | 4 | 6 | |||||||
Gain/(loss) recognized in AOCI, net | AOCI | (1 | ) | 2 | ||||||
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 during the three and six months ended June 30, 2014 and 2013, net of immaterial tax effects. | ||||||||||
Item | Reporting Location | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | |||||||
(Loss) recognized in OCI, net | OCI | $ | (2 | ) | $ | (1 | ) | |||
Gain/(loss) reclassified from AOCI into net income | Costs of products and services sold | (1 | ) | 2 | ||||||
Item | Reporting Location | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||
Gain/(loss) recognized in OCI, net | OCI | $ | (3 | ) | $ | 10 | ||||
Gain reclassified from AOCI into net income | Costs of products and services sold | — | 2 | |||||||
As of June 30, 2014, the majority of these contracts are in established currencies including the Euro, Japanese Yen and British Pound. During the next twelve months the Company expects $2 of unrealized losses included in AOCI, based on the value of these contracts as of June 30, 2014, 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. | ||||||||||
Net Investment Hedges | ||||||||||
The Company also holds investments in international subsidiaries that own net assets denominated in foreign currencies. The U.S. Dollar value of these foreign currency denominated net assets fluctuate as the exchange rate fluctuates. From time to time the Company will enter into net investment hedges to reduce the variability in the U.S. Dollar equivalent of net asset values due to changes in exchange rates. During the first half of 2014, the Company has entered into foreign currency forward exchange contracts with third party banks to hedge certain net assets denominated in the Euro and Swiss Franc. | ||||||||||
These hedges have been designated as net investment hedges and qualify for hedge accounting treatment, whereby changes in fair value of the derivative are reported in OCI. 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 investing activities section of the Company's consolidated statements of cash flows. Gains or losses related to the ineffective portion of these hedging instruments were not material for each of the three and six months ended June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, the Company did not have any outstanding foreign currency forward exchange contracts associated with net investment hedging transactions. | ||||||||||
Derivatives Not Designated As Hedges | ||||||||||
The Company also uses foreign currency forward exchange contracts, which are not designated as hedging instruments, primarily 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 fair value 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 June 30, 2014, 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 statement of income for both the three and six months ended June 30, 2014 and 2013. The notional amount of open foreign currency forward exchange contracts for derivatives not designated as hedges at June 30, 2014 and December 31, 2013 was $210 and $199, respectively. The fair value of these contracts was not material at either date. |
Company_Operations_By_Business
Company Operations By Business Unit | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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. Sales for the Company's business units are as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Research | $ | 357 | $ | 353 | $ | 716 | $ | 714 | ||||||||
Applied | 172 | 160 | 343 | 319 | ||||||||||||
SAFC Commercial | 172 | 168 | 331 | 323 | ||||||||||||
Total | $ | 701 | $ | 681 | $ | 1,390 | $ | 1,356 | ||||||||
The Company's Chief Operating Decision Maker is the CEO. The CEO and the Board review profit and loss information on aconsolidated 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 which are funded based on achievement of consolidated adjusted Company EPS (and for the business unit Presidents, allocated based on achievement of certain financial metrics 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. Geographic financial information is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sales to unaffiliated customers: | ||||||||||||||||
United States | $ | 262 | $ | 261 | $ | 519 | $ | 517 | ||||||||
International | 439 | 420 | 871 | 839 | ||||||||||||
Total | $ | 701 | $ | 681 | $ | 1,390 | $ | 1,356 | ||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 521 | $ | 523 | ||||||||||||
United Kingdom | 100 | 84 | ||||||||||||||
Other countries | 272 | 273 | ||||||||||||||
Total | $ | 893 | $ | 880 | ||||||||||||
Pension_And_PostRetirement_Ben
Pension And Post-Retirement Benefits | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pension and Post-Retirement Benefits | ' | |||||||||||||||||||||||
Pension and Post-retirement Benefits | ||||||||||||||||||||||||
The components of net periodic benefit cost for the three months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | $ | 1 | ||||||||||||
Interest cost | 2 | 1 | 2 | 3 | — | 1 | ||||||||||||||||||
Expected return on plan assets | (4 | ) | (3 | ) | (3 | ) | (3 | ) | — | — | ||||||||||||||
Amortization | — | — | — | 1 | (2 | ) | (1 | ) | ||||||||||||||||
Settlement Loss Recognized | 1 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | 3 | $ | (2 | ) | $ | 1 | |||||||||
The components of net periodic benefit cost for the six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 4 | $ | 5 | $ | — | $ | 1 | ||||||||||||
Interest cost | 4 | 3 | 4 | 5 | — | 1 | ||||||||||||||||||
Expected return on plan assets | (7 | ) | (6 | ) | (6 | ) | (6 | ) | — | — | ||||||||||||||
Amortization | — | 1 | — | 2 | (2 | ) | (1 | ) | ||||||||||||||||
Settlement Loss Recognized | 1 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | (2 | ) | $ | (2 | ) | $ | 2 | $ | 6 | $ | (2 | ) | $ | 1 | |||||||||
Pension and post-retirement benefits liabilities consisted of the following as of the dates noted: | ||||||||||||||||||||||||
June 30, | December 31, 2013 | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Retiree medical liability | $ | 22 | $ | 39 | ||||||||||||||||||||
Pension liability | 37 | 36 | ||||||||||||||||||||||
Subtotal | 59 | 75 | ||||||||||||||||||||||
Less: current portion (included in other current liabilities) | (3 | ) | (2 | ) | ||||||||||||||||||||
Pension and post-retirement benefits liabilities | $ | 56 | $ | 73 | ||||||||||||||||||||
The U.S. defined benefit pension plan was frozen in 2012 and as a result, future retirement service costs are no longer being recorded. Further, as a result of the freeze, the Company will amortize accumulated unrecognized losses over the remaining estimated life of participants. Effective January 1, 2013, the affected employees were eligible for additional Company contributions under the Company's 401(k) retirement savings plan. | ||||||||||||||||||||||||
The Company is not required to make a contribution to the U.S. defined benefit pension plan in 2014. The Company contributed $2 to its international pension plans in the six months ended June 30, 2014. In total, the Company expects to contribute approximately $6 to its defined benefit pension plans in 2014. | ||||||||||||||||||||||||
The Swiss defined benefit pension plan was amended in November 2013 from a final pay plan to a cash balance plan, effective January 1, 2014. The change resulted in a reduction of the Company's projected benefit obligation of $11, which is being accreted to operating income over the average future service period of participants expected to receive benefits. | ||||||||||||||||||||||||
In February 2014, the Company amended the post-retirement medical benefit plan for certain participants, resulting in a reduction of the Company's projected benefit obligation of $17. This amount will be accreted to operating income over the average future service period of participants expected to receive benefits. | ||||||||||||||||||||||||
The Company's 401(k) retirement savings plan provides retirement benefits to eligible U.S. employees in addition to those provided by the frozen defined benefit 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 cost for this plan was $6 and $5 for the three months ended June 30, 2014 and 2013, respectively, and $12 for the six months ended June 30, 2014 and 2013, respectively. |
Other_Assets_And_Liabilities
Other Assets And Liabilities | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Assets And Liabilities [Abstract] | ' | |||||||
Other Assets And Liabilities | ' | |||||||
Other Assets and Liabilities | ||||||||
Other current assets | ||||||||
Other current assets are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Other receivables | $ | 41 | $ | 36 | ||||
Prepaid expenses | 22 | 22 | ||||||
Certificates of deposit | 28 | 27 | ||||||
Other current assets | 4 | 2 | ||||||
Total other current assets | $ | 95 | $ | 87 | ||||
Other assets | ||||||||
Other assets are summarized as follows: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Other investments | $ | 13 | $ | 11 | ||||
Cash value of life insurance policies | 37 | 34 | ||||||
Deferred taxes | 13 | 11 | ||||||
Long term certificates of deposit | 33 | 33 | ||||||
Pension and post-retirement asset | 17 | 14 | ||||||
Other non-current assets | 28 | 29 | ||||||
Total other assets | $ | 141 | $ | 132 | ||||
Other current liabilities | ||||||||
Other current liabilities are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Legal and professional | $ | 5 | $ | 5 | ||||
Pension and post-retirement liability | 3 | 2 | ||||||
Freight | 9 | 7 | ||||||
Other accrued expenses | 66 | 63 | ||||||
Total other current liabilities | $ | 83 | $ | 77 | ||||
Other liabilities | ||||||||
Other liabilities are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Deferred compensation | $ | 35 | $ | 31 | ||||
Non-current income taxes | 40 | 37 | ||||||
Other non-current liabilities | 12 | 12 | ||||||
Total other non-current liabilities | $ | 87 | $ | 80 | ||||
Other_Charges
Other Charges | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Other Charges | ' | |||||||||||||||
Other Charges | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restructuring costs | $ | 1 | $ | — | $ | 2 | $ | — | ||||||||
Licensing dispute settlement | — | 7 | — | 7 | ||||||||||||
Costs related to mergers and acquisitions | — | 5 | — | 5 | ||||||||||||
Total other charges | $ | 1 | $ | 12 | $ | 2 | $ | 12 | ||||||||
Restructuring Costs | ||||||||||||||||
In the third quarter of 2013, the Company committed to a restructuring plan to exit a manufacturing site in Europe. This exit activity impacted approximately 90 employees and was intended to further reduce the Company's fixed cost structure. Total restructuring costs were $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. During the six months ended June 30, 2014, the remaining $2 of restructuring costs were recognized. | ||||||||||||||||
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. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings per Share | ||||||||||||
Basic EPS is calculated using the weighted average number of shares outstanding during each period. The diluted EPS calculation includes the impact of dilutive equity compensation awards. | ||||||||||||
EPS calculations have been made using the following share information (in millions): | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares | ||||||||||||
Basic shares | 119 | 120 | 119 | 120 | ||||||||
Effect of dilutive securities | 1 | 1 | 1 | 1 | ||||||||
Diluted shares | 120 | 121 | 120 | 121 | ||||||||
There were no potential common shares excluded from the calculation of diluted weighted average shares for the three months ended June 30, 2014. Potential common shares totaling 1 million were excluded from the calculation of diluted weighted average shares for the six months ended June 30, 2014 and for the three and six months ended June 30, 2013 because their effects were antidilutive. |
Share_Repurchases
Share Repurchases | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Repurchase Agreements [Abstract] | ' |
Share Repurchases | ' |
Share Repurchases | |
At June 30, 2014 and December 31, 2013, the Company had repurchased a total of 102 and 101 million shares, respectively, of an authorized repurchase of up to 110 million shares. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||||
The following table shows the components of AOCI for the three months ended June 30, 2014: | ||||||||||||||||||||||
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: March 31, 2014 | $ | 147 | $ | (5 | ) | $ | — | $ | — | $ | 142 | |||||||||||
Other comprehensive income (loss) before reclassification | 24 | (1 | ) | — | (2 | ) | 21 | |||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income to net income | — | 1 | — | (1 | ) | — | ||||||||||||||||
Net current-period other comprehensive income (loss) | 24 | (2 | ) | — | (1 | ) | 21 | |||||||||||||||
Ending balance: June 30, 2014 | $ | 171 | $ | (7 | ) | $ | — | $ | (1 | ) | $ | 163 | ||||||||||
The following table shows the components of AOCI for the six months ended June 30, 2014: | ||||||||||||||||||||||
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: December 31, 2013 | $ | 141 | $ | (23 | ) | $ | — | $ | 2 | $ | 120 | |||||||||||
Other comprehensive income (loss) before reclassification | 30 | 17 | (1 | ) | — | (3 | ) | 44 | ||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | 1 | — | — | 1 | |||||||||||||||||
Net current-period other comprehensive income (loss) | 30 | 16 | — | (3 | ) | 43 | ||||||||||||||||
Ending balance: June 30, 2014 | $ | 171 | $ | (7 | ) | $ | — | $ | (1 | ) | $ | 163 | ||||||||||
(1) In February 2014, the Company amended the post-retirement medical benefit plan for certain participants, resulting in a reduction of the Company's projected benefit obligation of $17. This amount will be accreted to operating income over the average future service period of participants expected to receive benefits. | ||||||||||||||||||||||
The following table shows the components of AOCI for the three months ended June 30, 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: March 31, 2013 | $ | 86 | $ | (76 | ) | $ | 5 | $ | 14 | $ | 29 | |||||||||||
Other comprehensive income (loss) before reclassification | (17 | ) | — | (1 | ) | 1 | (17 | ) | ||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income to net income | — | — | 3 | 2 | 5 | |||||||||||||||||
Net current-period other comprehensive income (loss) | (17 | ) | — | (4 | ) | (1 | ) | (22 | ) | |||||||||||||
Ending balance: June 30, 2013 | $ | 69 | $ | (76 | ) | $ | 1 | $ | 13 | $ | 7 | |||||||||||
The following table shows the components of AOCI for the six months ended June 30, 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: December 31, 2012 | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | |||||||||||
Other comprehensive income (loss) before reclassification | (72 | ) | — | 2 | 12 | (58 | ) | |||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (2 | ) | 4 | 2 | 4 | ||||||||||||||||
Net current-period other comprehensive income (loss) | (72 | ) | 2 | (2 | ) | 10 | (62 | ) | ||||||||||||||
Ending balance: June 30, 2013 | $ | 69 | $ | (76 | ) | $ | 1 | $ | 13 | $ | 7 | |||||||||||
During the three months ended June 30, 2014, amounts reclassified from AOCI included gains of $1 recognized into SG&A and a loss of $1 recognized into cost of products and services sold. During the six months ended June 30, 2014, amounts reclassified from AOCI included gains of $1 recognized into SG&A. During the three months ended June 30, 2013, amounts reclassified from AOCI included gains of $3 recognized into SG&A and gains of $2 recognized in cost of products and services sold. During the six months ended June 30, 2013, amounts reclassified from AOCI included gains of $2 recognized into SG&A and gains of $2 recognized in cost of products and services sold. These adjustments are net of immaterial tax effects. |
Contingent_Liabilities_And_Com
Contingent Liabilities And Commitments | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent Liabilities And Commitments | ' |
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, compliance 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 June 30, 2014, (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, respectively, to the Company's consolidated financial statements included in Part II, Item 8 of the Annual Report, as updated in Note 5 – Debt and Note 8 – Pension and Post-retirement Benefits to the Company's consolidated financial statements included in Part I, Item 1 of this Report. |
Subsequent_Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Subsequent Event | |
In July 2014, the Company committed to and communicated to impacted employees, an upcoming facility consolidation in Europe. This consolidation is expected to impact approximately 80 employees and result in employee termination costs of approximately $4 and potential asset disposal costs of up to $12. The Company anticipates commencement of closure activities in the second half of 2014, and continues to work to align its present supply chain with its long term strategy. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Principal Categories Of Inventories | ' | |||||||
The principal categories of inventories are: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Finished goods | $ | 585 | $ | 575 | ||||
Work in process | 32 | 27 | ||||||
Raw materials | 105 | 97 | ||||||
Total | $ | 722 | $ | 699 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Intangible Assets and Goodwill | ' | |||||||||||||||
The Company's amortizable and unamortizable intangible assets at June 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||
Cost | Accumulated Amortization | |||||||||||||||
June 30, | December 31, 2013 | June 30, | December 31, 2013 | |||||||||||||
2014 | 2014 | |||||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents | $ | 15 | $ | 14 | $ | 10 | $ | 9 | ||||||||
Licenses | 48 | 48 | 24 | 22 | ||||||||||||
Customer relationships | 256 | 254 | 85 | 77 | ||||||||||||
Technical knowledge | 49 | 48 | 21 | 19 | ||||||||||||
Other | 29 | 29 | 24 | 23 | ||||||||||||
Total amortizable intangible assets | $ | 397 | $ | 393 | $ | 164 | $ | 150 | ||||||||
Unamortizable intangible assets: | ||||||||||||||||
Goodwill | $ | 726 | $ | 717 | $ | 26 | $ | 26 | ||||||||
Trademarks and trade names | 20 | 20 | 8 | 8 | ||||||||||||
Total unamortizable intangible assets | $ | 746 | $ | 737 | $ | 34 | $ | 34 | ||||||||
Change In Net Goodwill | ' | |||||||||||||||
The change in net goodwill for the six months ended June 30, 2014 is as follows: | ||||||||||||||||
Balance at December 31, 2013 | $ | 691 | ||||||||||||||
Impact of foreign currency exchange rates | 9 | |||||||||||||||
Balance at June 30, 2014 | $ | 700 | ||||||||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule Of Notes Payable And Long-Term Debt | ' | |||||||||||||
Notes payable and long-term debt consisted of the following: | ||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||
Outstanding | Weighted | Outstanding | Weighted | |||||||||||
Average | Average | |||||||||||||
Rate | Rate | |||||||||||||
Notes payable | ||||||||||||||
Commercial paper (1) | $ | 44 | 0.1 | % | $ | 65 | 0.1 | % | ||||||
Sigma-Aldrich Japan GK credit facilities (2) | — | — | — | — | ||||||||||
Other short-term credit facilities (3) | — | — | — | — | ||||||||||
Total notes payable | $ | 44 | 0.1 | % | $ | 65 | 0.1 | % | ||||||
Long-term debt | ||||||||||||||
Senior notes, due November 1, 2020 (4) | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
Total long-term debt | $ | 300 | 3.4 | % | $ | 300 | 3.4 | % | ||||||
-1 | The Company has a $600 five-year revolving credit facility with a syndicate of banks in the U.S. that supports the Company's commercial paper program. The facility matures on May 10, 2018. At June 30, 2014 and December 31, 2013, the Company did not have any borrowings outstanding under the facility. 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 10.6 percent and 0.0 percent, respectively, at June 30, 2014. | |||||||||||||
-2 | Sigma-Aldrich Japan GK has two credit facilities with a total commitment of 2 billion Japanese Yen ($20), with one facility expiring April 30, 2015 and the other representing a line of credit with no expiration. There were no borrowings under the facilities at June 30, 2014. | |||||||||||||
-3 | There were no borrowings under these facilities, which have total commitments in U.S. Dollar equivalents of $3, at June 30, 2014. | |||||||||||||
-4 | The Company has $300 of 3.375 percent 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) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||
The following table summarizes the fair values of the foreign currency forward exchange contracts designated as cash flow hedges at June 30, 2014 and December 31, 2013: | ||||||||||
Item | Reporting Location | June 30, 2014 | December 31, 2013 | |||||||
Forward exchange contracts asset derivative | Other current assets | $ | 3 | $ | 5 | |||||
Forward exchange contracts liability derivative | Other current liabilities | 4 | 6 | |||||||
Gain/(loss) recognized in AOCI, net | AOCI | (1 | ) | 2 | ||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||
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 during the three and six months ended June 30, 2014 and 2013, net of immaterial tax effects. | ||||||||||
Item | Reporting Location | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | |||||||
(Loss) recognized in OCI, net | OCI | $ | (2 | ) | $ | (1 | ) | |||
Gain/(loss) reclassified from AOCI into net income | Costs of products and services sold | (1 | ) | 2 | ||||||
Item | Reporting Location | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||
Gain/(loss) recognized in OCI, net | OCI | $ | (3 | ) | $ | 10 | ||||
Gain reclassified from AOCI into net income | Costs of products and services sold | — | 2 | |||||||
Company_Operations_By_Business1
Company Operations By Business Unit (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Net Sales For The Company's Business Units | ' | |||||||||||||||
The business unit structure is the Company's approach to serving customers and reporting sales rather than any internal division | ||||||||||||||||
used to allocate resources. Sales for the Company's business units are as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Research | $ | 357 | $ | 353 | $ | 716 | $ | 714 | ||||||||
Applied | 172 | 160 | 343 | 319 | ||||||||||||
SAFC Commercial | 172 | 168 | 331 | 323 | ||||||||||||
Total | $ | 701 | $ | 681 | $ | 1,390 | $ | 1,356 | ||||||||
Geographic Financial Information - Net Sales To Unaffiliated Customers | ' | |||||||||||||||
Sales are attributed to countries based upon the location from which the product was shipped or services were performed. Geographic financial information is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sales to unaffiliated customers: | ||||||||||||||||
United States | $ | 262 | $ | 261 | $ | 519 | $ | 517 | ||||||||
International | 439 | 420 | 871 | 839 | ||||||||||||
Total | $ | 701 | $ | 681 | $ | 1,390 | $ | 1,356 | ||||||||
Geographic Financial Information - Long-Lived Assets | ' | |||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 521 | $ | 523 | ||||||||||||
United Kingdom | 100 | 84 | ||||||||||||||
Other countries | 272 | 273 | ||||||||||||||
Total | $ | 893 | $ | 880 | ||||||||||||
Pension_And_PostRetirement_Ben1
Pension And Post-Retirement Benefits (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Components Of The Net Periodic Benefit Costs | ' | |||||||||||||||||||||||
The components of net periodic benefit cost for the three months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | $ | 1 | ||||||||||||
Interest cost | 2 | 1 | 2 | 3 | — | 1 | ||||||||||||||||||
Expected return on plan assets | (4 | ) | (3 | ) | (3 | ) | (3 | ) | — | — | ||||||||||||||
Amortization | — | — | — | 1 | (2 | ) | (1 | ) | ||||||||||||||||
Settlement Loss Recognized | 1 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | 3 | $ | (2 | ) | $ | 1 | |||||||||
The components of net periodic benefit cost for the six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement | |||||||||||||||||||||||
United States | International | Medical Benefit Plans | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 4 | $ | 5 | $ | — | $ | 1 | ||||||||||||
Interest cost | 4 | 3 | 4 | 5 | — | 1 | ||||||||||||||||||
Expected return on plan assets | (7 | ) | (6 | ) | (6 | ) | (6 | ) | — | — | ||||||||||||||
Amortization | — | 1 | — | 2 | (2 | ) | (1 | ) | ||||||||||||||||
Settlement Loss Recognized | 1 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | (2 | ) | $ | (2 | ) | $ | 2 | $ | 6 | $ | (2 | ) | $ | 1 | |||||||||
Pension And Post-Retirement Benefits And Liabilities | ' | |||||||||||||||||||||||
Pension and post-retirement benefits liabilities consisted of the following as of the dates noted: | ||||||||||||||||||||||||
June 30, | December 31, 2013 | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Retiree medical liability | $ | 22 | $ | 39 | ||||||||||||||||||||
Pension liability | 37 | 36 | ||||||||||||||||||||||
Subtotal | 59 | 75 | ||||||||||||||||||||||
Less: current portion (included in other current liabilities) | (3 | ) | (2 | ) | ||||||||||||||||||||
Pension and post-retirement benefits liabilities | $ | 56 | $ | 73 | ||||||||||||||||||||
Other_Assets_And_Liabilities_T
Other Assets And Liabilities (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Assets And Liabilities [Abstract] | ' | |||||||
Other Current Assets | ' | |||||||
Other current assets are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Other receivables | $ | 41 | $ | 36 | ||||
Prepaid expenses | 22 | 22 | ||||||
Certificates of deposit | 28 | 27 | ||||||
Other current assets | 4 | 2 | ||||||
Total other current assets | $ | 95 | $ | 87 | ||||
Other Assets | ' | |||||||
Other assets are summarized as follows: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Other investments | $ | 13 | $ | 11 | ||||
Cash value of life insurance policies | 37 | 34 | ||||||
Deferred taxes | 13 | 11 | ||||||
Long term certificates of deposit | 33 | 33 | ||||||
Pension and post-retirement asset | 17 | 14 | ||||||
Other non-current assets | 28 | 29 | ||||||
Total other assets | $ | 141 | $ | 132 | ||||
Other Current Liabilities | ' | |||||||
Other current liabilities are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Legal and professional | $ | 5 | $ | 5 | ||||
Pension and post-retirement liability | 3 | 2 | ||||||
Freight | 9 | 7 | ||||||
Other accrued expenses | 66 | 63 | ||||||
Total other current liabilities | $ | 83 | $ | 77 | ||||
Other Liabilities | ' | |||||||
Other liabilities are summarized as follows: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
Deferred compensation | $ | 35 | $ | 31 | ||||
Non-current income taxes | 40 | 37 | ||||||
Other non-current liabilities | 12 | 12 | ||||||
Total other non-current liabilities | $ | 87 | $ | 80 | ||||
Other_Charges_Other_Charges_Ta
Other Charges Other Charges (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | ' | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restructuring costs | $ | 1 | $ | — | $ | 2 | $ | — | ||||||||
Licensing dispute settlement | — | 7 | — | 7 | ||||||||||||
Costs related to mergers and acquisitions | — | 5 | — | 5 | ||||||||||||
Total other charges | $ | 1 | $ | 12 | $ | 2 | $ | 12 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Shares Used In Calculation Of Earnings Per Share | ' | |||||||||||
EPS calculations have been made using the following share information (in millions): | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares | ||||||||||||
Basic shares | 119 | 120 | 119 | 120 | ||||||||
Effect of dilutive securities | 1 | 1 | 1 | 1 | ||||||||
Diluted shares | 120 | 121 | 120 | 121 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | |||||||||||||||||||||
The following table shows the components of AOCI for the three months ended June 30, 2014: | ||||||||||||||||||||||
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: March 31, 2014 | $ | 147 | $ | (5 | ) | $ | — | $ | — | $ | 142 | |||||||||||
Other comprehensive income (loss) before reclassification | 24 | (1 | ) | — | (2 | ) | 21 | |||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income to net income | — | 1 | — | (1 | ) | — | ||||||||||||||||
Net current-period other comprehensive income (loss) | 24 | (2 | ) | — | (1 | ) | 21 | |||||||||||||||
Ending balance: June 30, 2014 | $ | 171 | $ | (7 | ) | $ | — | $ | (1 | ) | $ | 163 | ||||||||||
The following table shows the components of AOCI for the six months ended June 30, 2014: | ||||||||||||||||||||||
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: December 31, 2013 | $ | 141 | $ | (23 | ) | $ | — | $ | 2 | $ | 120 | |||||||||||
Other comprehensive income (loss) before reclassification | 30 | 17 | (1 | ) | — | (3 | ) | 44 | ||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | 1 | — | — | 1 | |||||||||||||||||
Net current-period other comprehensive income (loss) | 30 | 16 | — | (3 | ) | 43 | ||||||||||||||||
Ending balance: June 30, 2014 | $ | 171 | $ | (7 | ) | $ | — | $ | (1 | ) | $ | 163 | ||||||||||
(1) In February 2014, the Company amended the post-retirement medical benefit plan for certain participants, resulting in a reduction of the Company's projected benefit obligation of $17. This amount will be accreted to operating income over the average future service period of participants expected to receive benefits. | ||||||||||||||||||||||
The following table shows the components of AOCI for the three months ended June 30, 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: March 31, 2013 | $ | 86 | $ | (76 | ) | $ | 5 | $ | 14 | $ | 29 | |||||||||||
Other comprehensive income (loss) before reclassification | (17 | ) | — | (1 | ) | 1 | (17 | ) | ||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income to net income | — | — | 3 | 2 | 5 | |||||||||||||||||
Net current-period other comprehensive income (loss) | (17 | ) | — | (4 | ) | (1 | ) | (22 | ) | |||||||||||||
Ending balance: June 30, 2013 | $ | 69 | $ | (76 | ) | $ | 1 | $ | 13 | $ | 7 | |||||||||||
The following table shows the components of AOCI for the six months ended June 30, 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: December 31, 2012 | $ | 141 | $ | (78 | ) | $ | 3 | $ | 3 | $ | 69 | |||||||||||
Other comprehensive income (loss) before reclassification | (72 | ) | — | 2 | 12 | (58 | ) | |||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) to net income | — | (2 | ) | 4 | 2 | 4 | ||||||||||||||||
Net current-period other comprehensive income (loss) | (72 | ) | 2 | (2 | ) | 10 | (62 | ) | ||||||||||||||
Ending balance: June 30, 2013 | $ | 69 | $ | (76 | ) | $ | 1 | $ | 13 | $ | 7 | |||||||||||
Inventories_Principal_Categori
Inventories (Principal Categories Of Inventories) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $585 | $575 |
Work in process | 32 | 27 |
Raw materials | 105 | 97 |
Total | $722 | $699 |
Intangible_Assets_Narrative_De
Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $6 | $7 | $12 | $14 |
Finite-lived intangible assets, future amortization expense, four year estimate, minimum | ' | ' | 22 | ' |
Finite-lived intangible assets, future amortization expense, four year estimate, maximum | ' | ' | $25 | ' |
Minimum [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '1 year | ' |
Maximum [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '20 years | ' |
Intangible_Assets_Amortizable_
Intangible Assets (Amortizable And Unamortizable Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | $397 | $393 |
Total amortizable intangible assets, Accumulated Amortization | 164 | 150 |
Indefinite-Lived Intangible Assets (Including Goodwill) [Abstract] | ' | ' |
Goodwill, Gross | 726 | 717 |
Goodwill, Accumulated Amortization | 26 | 26 |
Total unamortizable intangible assets, Cost | 746 | 737 |
Total unamortizable intangible assets, Accumulated Amortization | 34 | 34 |
Trademarks and trade names | ' | ' |
Indefinite-Lived Intangible Assets (Including Goodwill) [Abstract] | ' | ' |
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 | 15 | 14 |
Total amortizable intangible assets, Accumulated Amortization | 10 | 9 |
Licenses | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 48 | 48 |
Total amortizable intangible assets, Accumulated Amortization | 24 | 22 |
Customer relationships | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 256 | 254 |
Total amortizable intangible assets, Accumulated Amortization | 85 | 77 |
Technical knowledge | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 49 | 48 |
Total amortizable intangible assets, Accumulated Amortization | 21 | 19 |
Other | ' | ' |
Amortizable intangible assets: | ' | ' |
Total amortizable intangible assets, Cost | 29 | 29 |
Total amortizable intangible assets, Accumulated Amortization | $24 | $23 |
Intangible_Assets_Change_In_Ne
Intangible Assets (Change In Net Goodwill) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Balance at December 31, 2013 | $691 |
Impact of foreign currency exchange rates | 9 |
Balance at June 30, 2014 | $700 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' | ' | ' |
Interest expense, debt | $2 | $2 | $4 | $5 | ' |
Long-term debt, fair value | $311 | ' | $311 | ' | $298 |
Debt_Schedule_Of_Notes_Payable
Debt (Schedule Of Notes Payable And Long-Term Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Notes payable | ' | ' | ||
Outstanding | $44 | $65 | ||
Weighted Average Rate | 0.10% | 0.10% | ||
Long-term debt | ' | ' | ||
Outstanding | 300 | 300 | ||
Weighted Average Rate | 3.40% | 3.40% | ||
Commercial Paper [Member] | ' | ' | ||
Notes payable | ' | ' | ||
Outstanding | 44 | [1] | 65 | [1] |
Weighted Average Rate | 0.10% | [1] | 0.10% | [1] |
Sigma-Aldrich Japan Credit Facility [Member] | ' | ' | ||
Notes payable | ' | ' | ||
Outstanding | 0 | [2] | 0 | [2] |
Weighted Average Rate | 0.00% | [2] | 0.00% | [2] |
Other Short-Term Credit Facilities [Member] | ' | ' | ||
Notes payable | ' | ' | ||
Outstanding | 0 | [3] | 0 | [3] |
Weighted Average Rate | 0.00% | [3] | 0.00% | [3] |
Senior Notes, Due November 1, 2020 [Member] | ' | ' | ||
Long-term debt | ' | ' | ||
Outstanding | $300 | [4] | $300 | [4] |
Weighted Average Rate | 3.40% | [4] | 3.40% | [4] |
[1] | The Company has a $600 five-year revolving credit facility with a syndicate of banks in the U.S. that supports the Company's commercial paper program. The facility matures on May 10, 2018. At JuneB 30, 2014 and DecemberB 31, 2013, the Company did not have any borrowings outstanding under the facility. 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 10.6 percent and 0.0 percent, respectively, at JuneB 30, 2014. | |||
[2] | Sigma-Aldrich Japan GK has two credit facilities with a total commitment of 2 billion Japanese Yen ($20), with one facility expiring April 30, 2015 and the other representing a line of credit with no expiration. There were no borrowings under the facilities at JuneB 30, 2014. | |||
[3] | There were no borrowings under these facilities, which have total commitments in U.S.B Dollar equivalents of $3, at JuneB 30, 2014. | |||
[4] | The Company has $300 of 3.375 percent Senior Notes due November 1, 2020. Interest on the notes is payable MayB 1 and NovemberB 1 of each year. The notes may be redeemed, in whole or in part at the Companybs option, (i) at any time at specific redemption prices plus accrued interest or (ii) three months prior to the maturity date at a redemption price equal to 100 percent of the principal amount plus accrued interest. |
Debt_Notes_Payable_And_LongTer
Debt (Notes Payable And Long-Term Debt - Additional Information) (Details) | 6 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Five-Year Revolving Credit Facility Maturing May 10, 2018 [Member] | Sigma-Aldrich Japan Credit Facility [Member] | Sigma-Aldrich Japan Credit Facility [Member] | Other Short-Term Credit Facilities [Member] | Senior Notes, Due November 1, 2020 [Member] | |
USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | |
facility | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $600,000,000 | $20,000,000 | ¥ 2,000,000,000 | $3,000,000 | $300,000,000 |
Line of credit facility, term | '5 years | ' | ' | ' | ' |
Debt instrument, maturity date | 10-May-18 | 30-Apr-15 | 30-Apr-15 | ' | 1-Nov-20 |
Debt instrument covenant ratio of consolidated debt to total capitalization, maximum | 65.00% | ' | ' | ' | ' |
Debt Instrument, covenant, ratio of consolidated debt to total net worth | 25.00% | ' | ' | ' | ' |
Consolidated debt as percentage of total capitalization | 10.60% | ' | ' | ' | ' |
Debt Instrument, covenant ratio, consolidated debt plus subsidiary debt as a percentage of total net worth | 0.00% | ' | ' | ' | ' |
Number of credit facilities | ' | 2 | 2 | ' | ' |
Stated interest rate | ' | ' | ' | ' | 3.38% |
Duration debt can be redeemed at 100 percent plus accrued interest | ' | ' | ' | ' | '3 months |
Debt redemption price, percentage | ' | ' | ' | ' | 100.00% |
Financial_Derivatives_and_Risk2
Financial Derivatives and Risk Management (Fair Value of Derivatives) - Balance Sheet (Details) (Cash Flow Hedging [Member], Foreign Exchange Forward [Member], Designated as Hedging Instrument [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Comprehensive Income (Loss) [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gain (loss) recognized in AOCI, net | ($1) | $2 |
Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Forward exchange contracts asset derivative | 3 | 5 |
Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Forward exchange contracts liability derivative | $4 | $6 |
Financial_Derivatives_and_Risk3
Financial Derivatives and Risk Management (Schedule Of Gain Loss) - Income Statement (Details) (Cash Flow Hedging [Member], Foreign Exchange Forward [Member], Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
(Loss) recognized in OCI, net | ($2) | ($1) | ($3) | $10 |
Cost of Sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain/(loss) reclassified from AOCI into net income | ($1) | $2 | $0 | $2 |
Financial_Derivatives_and_Risk4
Financial Derivatives and Risk Management (General Cash Flow Hedge Information) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Minimum [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |
Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Cash flow hedge gain (loss) to be reclassified within twelve months | ($2) | ' | ' | ' | ' | ' |
Percent of net revenue denominated in Non-US currencies (over) | ' | 60.00% | ' | ' | ' | ' |
Derivative, notional amount | ' | ' | $366 | $298 | $210 | $199 |
Maximum length of time hedged in cash flow hedge | ' | ' | '24 months | ' | ' | ' |
Maximum length of time hedged in foreign currency cash flow hedge | ' | ' | ' | ' | '6 months | ' |
Company_Operations_By_Business2
Company Operations By Business Unit (Net Sales For The Company's Business Units) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | $701 | $681 | $1,390 | $1,356 |
Number of operating segments | ' | ' | 1 | ' |
Research Business Unit [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | 357 | 353 | 716 | 714 |
Applied Business Unit [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | 172 | 160 | 343 | 319 |
SAFC Commercial Business Unit [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | $172 | $168 | $331 | $323 |
Company_Operations_By_Business3
Company Operations By Business Unit (Geographic Financial Information - Net Sales To Unaffiliated Customers) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | $701 | $681 | $1,390 | $1,356 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | 262 | 261 | 519 | 517 |
International | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to unaffiliated customers | $439 | $420 | $871 | $839 |
Company_Operations_By_Business4
Company Operations By Business Unit (Geographic Financial Information - Long-Lived Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $893 | $880 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 521 | 523 |
United Kingdom | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 100 | 84 |
International | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $272 | $273 |
Pension_And_PostRetirement_Ben2
Pension And Post-Retirement Benefits (Narrative) (Details) (USD $) | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jan. 02, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2014 | Dec. 31, 2014 |
International | International | United States | United States | United States | United States | Post-Retirement Medical Benefit Plans [Member] | Forecast [Member] | |
Switzerland | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in projected benefit obligation due to plan amendments | ' | $11 | ' | ' | ' | ' | $17 | ' |
Employer contributions to pension plans | 2 | ' | ' | ' | ' | ' | ' | 6 |
Cost of 401(k) retirement savings plan | ' | ' | $6 | $5 | $12 | $12 | ' | ' |
Pension_And_PostRetirement_Ben3
Pension And Post-Retirement Benefits (Components Of The Net Periodic Benefit Costs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
United States | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $0 | $0 | $0 | $0 |
Interest cost | 2 | 1 | 4 | 3 |
Expected return on plan assets | -4 | -3 | -7 | -6 |
Amortization | 0 | 0 | 0 | 1 |
Settlement Loss Recognized | 1 | 0 | 1 | 0 |
Net periodic benefit cost | -1 | -2 | -2 | -2 |
International | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2 | 2 | 4 | 5 |
Interest cost | 2 | 3 | 4 | 5 |
Expected return on plan assets | -3 | -3 | -6 | -6 |
Amortization | 0 | 1 | 0 | 2 |
Settlement Loss Recognized | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 1 | 3 | 2 | 6 |
Post-Retirement Medical Benefit Plans | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 0 | 1 | 0 | 1 |
Interest cost | 0 | 1 | 0 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization | -2 | -1 | -2 | -1 |
Settlement Loss Recognized | 0 | 0 | 0 | 0 |
Net periodic benefit cost | ($2) | $1 | ($2) | $1 |
Pension_And_PostRetirement_Ben4
Pension And Post-Retirement Benefits (Pension And Post-Retirement Benefits And Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Retiree medical liability | $22 | $39 |
Pension liability | 37 | 36 |
Subtotal | 59 | 75 |
Less: current portion (included in other current liabilities) | -3 | -2 |
Pension and post-retirement benefits liabilities | $56 | $73 |
Other_Assets_And_Liabilities_O
Other Assets And Liabilities (Other Current Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets And Liabilities [Abstract] | ' | ' |
Other receivables | $41 | $36 |
Prepaid expenses | 22 | 22 |
Certificates of deposit | 28 | 27 |
Other current assets | 4 | 2 |
Total other current assets | $95 | $87 |
Other_Assets_And_Liabilities_O1
Other Assets And Liabilities (Other Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets And Liabilities [Abstract] | ' | ' |
Other investments | $13 | $11 |
Cash value of life insurance policies | 37 | 34 |
Deferred taxes | 13 | 11 |
Long term certificates of deposit | 33 | 33 |
Pension and post-retirement asset | 17 | 14 |
Other non-current assets | 28 | 29 |
Total other assets | $141 | $132 |
Other_Assets_And_Liabilities_O2
Other Assets And Liabilities (Other Current Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets And Liabilities [Abstract] | ' | ' |
Legal and professional | $5 | $5 |
Pension and post-retirement liability | 3 | 2 |
Freight | 9 | 7 |
Other accrued expenses | 66 | 63 |
Total other current liabilities | $83 | $77 |
Other_Assets_And_Liabilities_O3
Other Assets And Liabilities (Other Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets And Liabilities [Abstract] | ' | ' |
Deferred compensation | $35 | $31 |
Non-current income taxes | 40 | 37 |
Other non-current liabilities | 12 | 12 |
Total other non-current liabilities | $87 | $80 |
Other_Charges_Details
Other Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
employee | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring costs | $1 | ' | $0 | $2 | $0 | ' |
Licensing dispute settlement charges | ' | ' | 7 | ' | 7 | ' |
Costs related to mergers and acquisitions | ' | ' | 5 | ' | 5 | ' |
Restructuring and Other Charges | 1 | ' | 12 | 2 | 12 | ' |
Number of employees impacted by the restructuring | ' | 90 | ' | ' | ' | ' |
Restructuring charges | ' | 12 | ' | 2 | ' | 10 |
Reduction of Value of Assets Impacted by Restructuring [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | 9 | ' | ' | ' | ' |
Employee Severance [Member] | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | $3 | ' | ' | ' | ' |
Earnings_Per_Share_Shares_Used
Earnings Per Share (Shares Used In Calculation Of Earnings Per Share) (Details) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Weighted average shares | ' | ' | ' | ' |
Basic shares | 119 | 120 | 119 | 120 |
Effect of dilutive securities (in shares) | 1 | 1 | 1 | 1 |
Diluted shares | 120 | 121 | 120 | 121 |
Number of potential common shares from the calculation of weighted average shares considered to be antidilutive | 0 | 1 | 1 | 1 |
Share_Repurchases_Details
Share Repurchases (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Disclosure of Repurchase Agreements [Abstract] | ' | ' |
Cumulative shares repurchased | 102,000,000 | 101,000,000 |
Authorized shares repurchase (in shares) | 110,000,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income by Component) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2014 |
Foreign Currency Translation Adjustment Income (Loss), Net [Member] | Foreign Currency Translation Adjustment Income (Loss), Net [Member] | Foreign Currency Translation Adjustment Income (Loss), Net [Member] | Foreign Currency Translation Adjustment Income (Loss), Net [Member] | Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | Unrealized Gain (Loss) on Securities, Net [Member] | Unrealized Gain (Loss) on Securities, Net [Member] | Unrealized Gain (Loss) on Securities, Net [Member] | Unrealized Gain (Loss) on Securities, Net [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Post-Retirement Medical Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Plan Amendments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($17) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | 142 | 29 | 120 | 69 | 147 | 86 | 141 | 141 | -5 | -76 | -23 | -78 | 0 | 5 | 0 | 3 | 0 | 14 | 2 | 3 | ' |
Other comprehensive income (loss) before reclassification | 21 | -17 | 44 | -58 | 24 | -17 | 30 | -72 | -1 | 0 | 17 | 0 | 0 | -1 | 0 | 2 | -2 | 1 | -3 | 12 | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | 0 | 5 | 1 | 4 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | -2 | 0 | 3 | 0 | 4 | -1 | 2 | 0 | 2 | ' |
Net current-period other comprehensive income (loss) | 21 | -22 | 43 | -62 | 24 | -17 | 30 | -72 | -2 | 0 | 16 | 2 | 0 | -4 | 0 | -2 | -1 | -1 | -3 | 10 | ' |
Ending balance: June 30, 2014 | $163 | $7 | $163 | $7 | $171 | $69 | $171 | $69 | ($7) | ($76) | ($7) | ($76) | $0 | $1 | $0 | $1 | ($1) | $13 | ($1) | $13 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Less: Amounts reclassified from accumulated other comprehensive income to net income | $0 | $5 | $1 | $4 |
Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | 1 | 0 | 1 | -2 |
Pension and Post-Retirement Benefit Plans Income (Loss), Net [Member] | SG&A [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | 1 | ' | 1 | ' |
Unrealized Gain (Loss) on Securities, Net [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | 0 | 3 | 0 | 4 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | -1 | 2 | 0 | 2 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | SG&A [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | ' | ' | ' | 2 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Cost of Sales [Member] | ' | ' | ' | ' |
Less: Amounts reclassified from accumulated other comprehensive income to net income | ($1) | $2 | ' | $2 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Jul. 24, 2014 |
employee | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Subsequent Event, Number of Employees Terminated Due to Consolidation | 80 |
Subsequent Event, Estimated Employee Termination Costs | $4 |
Subsequent Event, Estimated Asset Disposal Cost | $12 |