Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Common Class A | Common Class A | Common Stock | Common Stock | ||
Document Information [Line Items] | ' | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' | ' |
Trading Symbol | 'AOS | ' | ' | ' | ' |
Entity Registrant Name | 'SMITH A O CORP | ' | ' | ' | ' |
Entity Central Index Key | '0000091142 | ' | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,221,468 | ' | 78,027,765 | ' |
Entity Public Float | ' | ' | $24,186,642 | ' | $2,799,041,328 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $380.70 | $266.90 |
Marketable securities | 105.3 | 196 |
Receivables | 458.7 | 425.4 |
Inventories | 193.4 | 163.4 |
Deferred income taxes | 40.1 | 33.2 |
Other current assets | 27.4 | 29.7 |
Total Current Assets | 1,205.60 | 1,114.60 |
Net property, plant and equipment | 391.3 | 345.7 |
Goodwill | 433.5 | 435.4 |
Other intangibles | 324.8 | 338.7 |
Other assets | 36.3 | 44.4 |
Total Assets | 2,391.50 | 2,278.80 |
Liabilities | ' | ' |
Trade payables | 387.1 | 328.9 |
Accrued payroll and benefits | 61.7 | 46.5 |
Accrued liabilities | 81.2 | 69.1 |
Product warranties | 46.7 | 43.2 |
Long-term debt due within one year | 14.2 | 18.6 |
Total Current Liabilities | 590.9 | 506.3 |
Long-term debt | 177.7 | 225.1 |
Deferred income taxes | 21 | 6.3 |
Product warranties | 89.9 | 86.4 |
Post-retirement benefit obligation | 10 | 10.6 |
Pension liabilities | 110.7 | 190.1 |
Other liabilities | 62.6 | 59.9 |
Total Liabilities | 1,062.80 | 1,084.70 |
Commitments and contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred Stock | ' | ' |
Capital in excess of par value | 589.7 | 580.5 |
Retained earnings | 982.2 | 855.1 |
Accumulated other comprehensive loss | -259.1 | -320.5 |
Treasury stock at cost | -132.6 | -69.6 |
Total Stockholders' Equity | 1,328.70 | 1,194.10 |
Total Liabilities and Stockholders' Equity | 2,391.50 | 2,278.80 |
Common Class A | ' | ' |
Stockholders' Equity | ' | ' |
Common Stock (shares issued 13,288,516 and 13,309,876) | 66.4 | 66.6 |
Common Stock | ' | ' |
Stockholders' Equity | ' | ' |
Common Stock (shares issued 13,288,516 and 13,309,876) | $82.10 | $82 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Class A | ' | ' |
Common Stock, shares issued | 13,288,516 | 13,309,876 |
Common Stock | ' | ' |
Common Stock, shares issued | 82,065,280 | 82,043,946 |
Consolidated_Statement_of_Earn
Consolidated Statement of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Continuing Operations | ' | ' | ' |
Net sales | $2,153.80 | $1,939.30 | $1,710.50 |
Cost of products sold | 1,380 | 1,287.30 | 1,197.90 |
Gross profit | 773.8 | 652 | 512.6 |
Selling, general and administrative expenses | 524.5 | 450.5 | 372.8 |
Restructuring, impairment and settlement expenses (income) - net | 11 | -3.9 | -11.2 |
Contingent consideration adjustment | ' | -3.3 | ' |
Interest expense | 5.7 | 9.2 | 9.3 |
Other income - net | -3.8 | -34.3 | -19.8 |
Earnings before provision for income taxes | 236.4 | 233.8 | 161.5 |
Provision for income taxes | 66.7 | 71.2 | 50.3 |
Earnings from continuing operations | 169.7 | 162.6 | 111.2 |
Discontinued Operations | ' | ' | ' |
Earnings from discontinued operations, less provision for income taxes of $15.5 in 2011 | ' | -3.9 | 43 |
(Loss)gain on sale of discontinued EPC operations, less tax provision of $6.3 in 2012 and $145.6 in 2011 | ' | -3.9 | 151.5 |
Net Earnings | $169.70 | $158.70 | $305.70 |
Net Earnings (Loss) Per Share of Common Stock | ' | ' | ' |
Continuing operations | $1.84 | $1.76 | $1.20 |
Discontinued operations | ' | ($0.04) | $2.11 |
Net Earnings | $1.84 | $1.72 | $3.31 |
Diluted Net Earnings (Loss) Per Share of Common Stock | ' | ' | ' |
Continuing operations | $1.83 | $1.75 | $1.19 |
Discontinued operations | ' | ($0.04) | $2.09 |
Net Earnings | $1.83 | $1.71 | $3.28 |
Consolidated_Statement_of_Earn1
Consolidated Statement of Earnings (Parenthetical) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings from discontinued operations, less tax provision for income taxes | ' | $15.50 |
(Loss)/gain on sale of discontinued EPC operations, tax provision | $6.30 | $145.60 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Earnings (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Earnings | $169.70 | $158.70 | $305.70 |
Other comprehensive earnings (loss) | ' | ' | ' |
Foreign currency translation adjustments | 0.4 | 3 | -7.2 |
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.2) in 2013, $(0.6) in 2012 and $7.0 in 2011 | 0.3 | 1 | -11 |
Change in pension liability less related income tax (provision) benefit of $(39.7) in 2013, $13.6 in 2012 and $34.8 in 2011 | 60.7 | -22.4 | -54.5 |
Unrealized (loss) gain on investments less related income tax benefit (provision) of $0.7 in 2012 and $(0.7) in 2011 | ' | -1.2 | 1.2 |
Comprehensive Earnings | $231.10 | $139.10 | $234.20 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Earnings (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized net gain (loss) on cash flow derivative instruments, related income tax (provision) benefit | ($0.20) | ($0.60) | $7 |
Change in pension liability, related income tax (provision) benefit | -39.7 | 13.6 | 34.8 |
Unrealized (loss) gain on investments, related income tax benefit (provision) | ' | $0.70 | ($0.70) |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net Earnings | $169.70 | $158.70 | $305.70 |
Loss (earnings) from discontinued operations | ' | 3.9 | -194.5 |
Adjustments to reconcile earnings from continuing operations to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 59.7 | 54.6 | 47 |
Pension expense | 27.9 | 13.8 | 3.3 |
Loss on disposal of assets | 0.2 | 1.1 | 1 |
Unrealized gain on investment | ' | -27.2 | -19.8 |
Net changes in operating assets and liabilities, net of acquisitions: | ' | ' | ' |
Current assets and liabilities | 20.5 | -36.6 | 0.5 |
Noncurrent assets and liabilities | 4.2 | 3.5 | -81.6 |
Cash Provided by Operating Activities - continuing operations | 282.2 | 171.8 | 61.6 |
Cash Used in Operating Activities - discontinued operations | -2.6 | -28 | -2.9 |
Cash Provided by Operating Activities | 279.6 | 143.8 | 58.7 |
Investing Activities | ' | ' | ' |
Acquisitions of businesses | -4 | -13.5 | -421.1 |
Investments in marketable securities | -132.7 | -311.4 | ' |
Proceeds from sale of marketable securities | 226.2 | 308 | ' |
Capital expenditures | -97.7 | -69.9 | -53.5 |
Cash Used in Investing Activities - continuing operations | -8.2 | -86.8 | -474.6 |
Cash Provided by Investing Activities - discontinued operations | ' | ' | 600.2 |
Cash (Used in) Provided by Investing Activities | -8.2 | -86.8 | 125.6 |
Financing Activities | ' | ' | ' |
Long-term debt incurred | ' | ' | 200.2 |
Long-term debt repaid | -51.5 | -218.8 | ' |
Common stock repurchases | -73.7 | -22 | -23.5 |
Net proceeds from stock option activity | 10.2 | 20.5 | 11.2 |
Dividends paid | -42.6 | -33.2 | -27.7 |
Cash (Used in) Provided by Financing Activities | -157.6 | -253.5 | 160.2 |
Net increase (decrease) in cash and cash equivalents | 113.8 | -196.5 | 344.5 |
Cash and cash equivalents-beginning of year | 266.9 | 463.4 | 118.9 |
Cash and Cash Equivalents-End of Year | $380.70 | $266.90 | $463.40 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Class A Common Stock | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
In Millions | |||||||
Balance at Dec. 31, 2010 | ' | $74.80 | $80.40 | $578.10 | $452.10 | ($229.40) | ($74.60) |
Conversion of Class A Common Stock | ' | -2.3 | 0.5 | 1.8 | ' | ' | ' |
Foreign currency translation adjustments | -7.2 | ' | ' | ' | ' | -7.2 | ' |
Net earnings | ' | ' | ' | ' | 305.7 | ' | ' |
Issuance of share units | ' | ' | ' | -3.7 | ' | ' | ' |
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.2) in 2013, $(0.6) in 2012 and $7.0 in 2011 | -11 | ' | ' | ' | ' | -11 | ' |
Cash dividends on stock | ' | ' | ' | ' | -27.9 | ' | ' |
Vesting of share units | ' | ' | ' | -8.2 | ' | ' | 10 |
Change in pension liability less related income tax (provision) benefit of $(39.7) in 2013, $13.6 in 2012 and $34.8 in 2011 | -54.5 | ' | ' | ' | ' | -54.5 | ' |
Stock based compensation expense | ' | ' | ' | 6.7 | ' | ' | ' |
Unrealized (loss) gain on investments less related income tax benefit (provision) of $0.7 in 2012 and $(0.7) in 2011 | 1.2 | ' | ' | ' | ' | 1.2 | ' |
Exercise of stock options | ' | ' | ' | -7.5 | ' | ' | 15.3 |
Tax benefit from exercises of stock options and vesting of share units | ' | ' | ' | 4.3 | ' | ' | ' |
Stock incentives and directors' compensation | ' | ' | ' | 4.3 | ' | ' | 0.4 |
Shares repurchased | -23.5 | ' | ' | ' | ' | ' | -23.5 |
Balance at Dec. 31, 2011 | 1,085.80 | 72.5 | 80.9 | 575.8 | 729.9 | -300.9 | -72.4 |
Conversion of Class A Common Stock | ' | -6 | 1.2 | 4.8 | ' | ' | ' |
Foreign currency translation adjustments | 3 | ' | ' | ' | ' | 3 | ' |
Net earnings | ' | ' | ' | ' | 158.7 | ' | ' |
Issuance of share units | ' | ' | ' | -3.9 | ' | ' | ' |
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.2) in 2013, $(0.6) in 2012 and $7.0 in 2011 | 1 | ' | ' | ' | ' | 1 | ' |
Cash dividends on stock | ' | ' | ' | ' | -33.5 | ' | ' |
Vesting of share units | ' | ' | ' | -4.9 | ' | ' | 4.9 |
Change in pension liability less related income tax (provision) benefit of $(39.7) in 2013, $13.6 in 2012 and $34.8 in 2011 | -22.4 | ' | ' | ' | ' | -22.4 | ' |
Stock based compensation expense | ' | ' | ' | 6.8 | ' | ' | ' |
Unrealized (loss) gain on investments less related income tax benefit (provision) of $0.7 in 2012 and $(0.7) in 2011 | -1.2 | ' | ' | ' | ' | -1.2 | ' |
Exercise of stock options | ' | ' | ' | -11.4 | ' | ' | 19.7 |
Tax benefit from exercises of stock options and vesting of share units | ' | ' | ' | 8.8 | ' | ' | ' |
Stock incentives and directors' compensation | ' | ' | ' | 4.5 | ' | ' | 0.2 |
Shares repurchased | -22 | ' | ' | ' | ' | ' | -22 |
Balance at Dec. 31, 2012 | 1,194.10 | 66.5 | 82.1 | 580.5 | 855.1 | -320.5 | -69.6 |
Conversion of Class A Common Stock | ' | -0.1 | ' | 0.1 | ' | ' | ' |
Foreign currency translation adjustments | 0.4 | ' | ' | ' | ' | 0.4 | ' |
Net earnings | ' | ' | ' | ' | 169.7 | ' | ' |
Issuance of share units | ' | ' | ' | -5.1 | ' | ' | ' |
Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.2) in 2013, $(0.6) in 2012 and $7.0 in 2011 | 0.3 | ' | ' | ' | ' | 0.3 | ' |
Cash dividends on stock | ' | ' | ' | ' | -42.6 | ' | ' |
Vesting of share units | ' | ' | ' | -3 | ' | ' | 3 |
Change in pension liability less related income tax (provision) benefit of $(39.7) in 2013, $13.6 in 2012 and $34.8 in 2011 | 60.7 | ' | ' | ' | ' | 60.7 | ' |
Stock based compensation expense | ' | ' | ' | 9.8 | ' | ' | ' |
Exercise of stock options | ' | ' | ' | -3 | ' | ' | 7.5 |
Tax benefit from exercises of stock options and vesting of share units | ' | ' | ' | 4.8 | ' | ' | ' |
Stock incentives and directors' compensation | ' | ' | ' | 5.6 | ' | ' | 0.2 |
Shares repurchased | -73.7 | ' | ' | ' | ' | ' | -73.7 |
Balance at Dec. 31, 2013 | $1,328.70 | $66.40 | $82.10 | $589.70 | $982.20 | ($259.10) | ($132.60) |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized net gain (loss) on cash flow derivative instruments, related income tax (provision) benefit | ($0.20) | ($0.60) | $7 |
Change in pension liability, related income tax (provision) benefit | -39.7 | 13.6 | 34.8 |
Unrealized (loss) gain on investments, income tax benefit (provision) | ' | 0.7 | -0.7 |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Unrealized net gain (loss) on cash flow derivative instruments, related income tax (provision) benefit | -0.2 | -0.6 | 7 |
Change in pension liability, related income tax (provision) benefit | -39.7 | 13.6 | 34.8 |
Unrealized (loss) gain on investments, income tax benefit (provision) | ' | $0.70 | ($0.70) |
Treasury Stock | ' | ' | ' |
Exercise of stock options, shares surrendered as proceeds and to pay taxes | 29,126 | 334,516 | ' |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Organization and Significant Accounting Policies | ' | ||||||||||||||||||||||||||||
1. Organization and Significant Accounting Policies | |||||||||||||||||||||||||||||
Organization. A. O. Smith Corporation (A. O. Smith or the company) is a manufacturer of water heaters and boilers, serving a diverse mix of residential and commercial end markets principally in the United States with a strong and growing international presence. The company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe, India and the Middle East. Both segments manufacture and market comprehensive lines of residential gas, gas tankless and electric water heaters and commercial water heating equipment. Both segments primarily serve their respective regions of the world. The North America segment also manufactures and markets specialty commercial water heating equipment, condensing and non-condensing boilers and water system tanks. The Rest of World segment also manufactures and markets water treatment products, primarily in Asia. | |||||||||||||||||||||||||||||
On August 22, 2011, the company sold its Electrical Products business (EPC) to Regal Beloit Corporation (RBC) for approximately $760 million in cash and approximately 2.83 million shares of RBC common stock. Due to the sale, EPC has been reported separately as a discontinued operation. See Note 2 Discontinued Operations. | |||||||||||||||||||||||||||||
Consolidation. The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries after elimination of intercompany transactions. | |||||||||||||||||||||||||||||
Except when otherwise indicated, amounts reflected in the financial statements or the notes thereto relate to the company’s continuing operations. | |||||||||||||||||||||||||||||
Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and notes. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||
Fair value of financial instruments. The carrying amounts of cash, cash equivalents, marketable securities, receivables, floating rate debt and trade payables approximated fair value as of December 31, 2013 and 2012, due to the short maturities or frequent rate resets of these instruments. The fair value of term notes with insurance companies was approximately $63.8 million as of December 31, 2013 compared with the carrying amount of $59.4 million for the same date. The fair value is estimated based on current rates offered for debt with similar maturities. | |||||||||||||||||||||||||||||
Foreign currency translation. For all subsidiaries outside the U.S., with the exception of its Mexican operation and its Dutch non-operating companies, the company uses the local currency as the functional currency. For those operations using a functional currency other than the U.S. dollar, assets and liabilities are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at weighted-average exchange rates. The resulting translation adjustments are recorded as a separate component of stockholders’ equity. The Mexican operation and the Dutch non-operating companies use the U.S. dollar as the functional currency. Gains and losses from foreign currency transactions are included in net earnings and were not significant in 2013, 2012 or 2011. | |||||||||||||||||||||||||||||
Cash and cash equivalents. The company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||||||||||||||||||||||||
Marketable securities. The company considers all highly liquid investments with maturities greater than 90 days when purchased to be marketable securities. At December 31, 2013, the company’s marketable securities consisted of bank time deposits with original maturities ranging from 180 days to 12 months and are located at investment grade rated banks in China. | |||||||||||||||||||||||||||||
Inventory valuation. Inventories are carried at lower of cost or market. Cost is determined on the last-in, first-out (LIFO) method for a majority of the company’s domestic inventories, which comprise 62 percent and 64 percent of the company’s total inventory at December 31, 2013 and 2012, respectively. Inventories of foreign subsidiaries, the remaining domestic inventories and supplies are determined using the first-in, first-out (FIFO) method. | |||||||||||||||||||||||||||||
Property, plant and equipment. Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method. The estimated service lives used to compute depreciation are generally 25 to 50 years for buildings, three to 20 years for equipment and three to ten years for software. Maintenance and repair costs are expensed as incurred. | |||||||||||||||||||||||||||||
Goodwill and other intangibles. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment on an annual basis. Separable intangible assets, primarily comprised of customer relationships, that are not deemed to have an indefinite life are amortized on a straight-line basis over their estimated useful lives which range from ten to 25 years. | |||||||||||||||||||||||||||||
Impairment of long-lived and amortizable intangible assets. Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. | |||||||||||||||||||||||||||||
Derivative instruments. Accounting Standards Codification (ASC) 815 Derivatives and Hedging, as amended, requires that all derivative instruments be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of the hedging relationships. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a part of a hedging relationship and, further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the company must designate the hedging instrument, based upon the exposure hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. | |||||||||||||||||||||||||||||
The company designates that all of its hedging instruments, except for its equity collar contract relating to shares of RBC common stock, are cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss, net of tax, and is reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The amount by which the cumulative change in the value of the hedge more than offsets the cumulative change in the value of the hedged item (i.e., the ineffective portion) is recorded in earnings, net of tax, in the period the ineffectiveness occurs. | |||||||||||||||||||||||||||||
The company utilizes certain derivative instruments to enhance its ability to manage currency exposure as well as raw materials price risk. The company had previously utilized a derivative instrument to manage equity investment volatility. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The company does not enter into contracts for speculative purposes. The contracts are executed with major financial institutions with no credit loss anticipated for failure of the counterparties to perform. | |||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||||||||||
The company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. The company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of business. Principal currencies for which the company utilizes foreign currency forward contracts include the Canadian dollar, Euro and Mexican peso. | |||||||||||||||||||||||||||||
Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective. | |||||||||||||||||||||||||||||
The majority of the amounts in accumulated other comprehensive loss for cash flow hedges is expected to be reclassified into earnings within one year and all of the hedges will be reclassified into earnings no later than December 2015. Contracts related to the company’s discontinued operation that were to expire after the expected closing date of the sale of EPC no longer qualified for hedge accounting; therefore, the change in valuation from the announcement of the sale of EPC to August 22, 2011 of $3.2 million was recorded in earnings from discontinued operations in the year ended December 31, 2011. | |||||||||||||||||||||||||||||
The following table summarizes, by currency, the contractual amounts of the company’s foreign currency forward contracts: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
December 31 (dollars in millions) | Buy | Sell | Buy | Sell | |||||||||||||||||||||||||
British pound | $ | — | $ | 1.4 | $ | — | $ | 2.3 | |||||||||||||||||||||
Canadian dollar | — | 72.7 | — | 36.8 | |||||||||||||||||||||||||
Euro | 9.1 | 1.7 | 23.2 | 2 | |||||||||||||||||||||||||
Mexican peso | 14.6 | — | 12.3 | — | |||||||||||||||||||||||||
Total | $ | 23.7 | $ | 75.8 | $ | 35.5 | $ | 41.1 | |||||||||||||||||||||
Commodity Futures Contracts | |||||||||||||||||||||||||||||
In addition to entering into supply arrangements in the normal course of business, the company, primarily for its discontinued operation prior to disposition, also entered into futures contracts to fix the cost of certain raw material purchases, principally copper and aluminum, with the objective of minimizing changes in cost due to market price fluctuations. The hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME. | |||||||||||||||||||||||||||||
With one of its brokers, the company is required to make cash deposits on unrealized losses on commodity derivative contracts that exceed $10.0 million. | |||||||||||||||||||||||||||||
The minimal after-tax gain of the effective portion of the contracts as of December 31, 2013 was recorded in accumulated other comprehensive loss and will be reclassified into cost of products sold in the period in which the underlying transaction is recorded in earnings. The effective portion of the contracts will be reclassified within one year. Contracts related to the company’s discontinued operation that expired after the expected closing date of the sale of EPC no longer qualified for hedge accounting; therefore, the change in valuation from the announcement of the sale to August 22, 2011 which was minimal and was recorded in earnings from discontinued operations in the year ended December 31, 2011. Commodity hedges outstanding at December 31, 2013 total approximately 0.1 million pounds of copper. | |||||||||||||||||||||||||||||
Equity Collar Contract | |||||||||||||||||||||||||||||
As discussed in Note 2, on August 22, 2011, the company sold EPC to RBC and received approximately 2.83 million shares of RBC common stock. The RBC share price appreciated in 2011 during which the company entered into an equity collar contract for 50 percent of the RBC shares to protect a portion of that appreciation. The put strike price of the equity collar was $63.29 and the call strike price of the collar was $77.32. The RBC share price on December 31, 2011 was $50.97. The collar did not qualify for hedge accounting and therefore was adjusted to fair value on a quarterly basis through earnings from continuing operations. The mark to market accounting for the RBC shares and hedge continued until the equity collar contract expired in March 2012 with no value. | |||||||||||||||||||||||||||||
The impact of derivative contracts on the company’s financial statements is as follows: | |||||||||||||||||||||||||||||
Fair value of derivative instruments designated as hedging instruments under ASC 815 in continuing operations: | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
December 31 (dollars in millions) | Balance Sheet Location | 2013 | 2012 | ||||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 1.9 | $ | 1.7 | ||||||||||||||||||||||||
Accrued liabilities | (0.2 | ) | (0.5 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | 1.2 | |||||||||||||||||||||||||
The effect of derivative instruments on the Statement of Earnings for continuing operations. | |||||||||||||||||||||||||||||
Year ended December 31 (dollars in millions) | |||||||||||||||||||||||||||||
Derivatives in | Amount of gain | Location of | Amount of gain | Location of | Amount of gain | ||||||||||||||||||||||||
(loss) recognized | gain (loss) | (loss) reclassified | gain recognized | recognized in | |||||||||||||||||||||||||
ASC 815 cash | in other | reclassified | from Accumulated | in earnings on | earnings on a | ||||||||||||||||||||||||
comprehensive | from | Other | derivative | derivative | |||||||||||||||||||||||||
flow hedging | loss on derivative | Accumulated | Comprehensive | (ineffective | (ineffective | ||||||||||||||||||||||||
(effective portion) | Other | Loss into earnings | portion) | portion) | |||||||||||||||||||||||||
relationships | Comprehensive | (effective portion) | |||||||||||||||||||||||||||
Loss into | |||||||||||||||||||||||||||||
earnings | |||||||||||||||||||||||||||||
(effective | |||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Foreign currency contracts | $ | 3.1 | $ | 0.7 | Cost of | $ | 2.6 | $ | (0.7 | ) | N/A | $ | — | $ | — | ||||||||||||||
products sold | |||||||||||||||||||||||||||||
Commodities contracts | — | (0.1 | ) | Cost of | (0.1 | ) | (0.1 | ) | Cost of | — | — | ||||||||||||||||||
products sold | products sold | ||||||||||||||||||||||||||||
$ | 3.1 | $ | 0.6 | $ | 2.5 | $ | (0.8 | ) | $ | — | $ | — | |||||||||||||||||
Derivatives not designated as a hedging | Location of loss recognized in earnings | Amount of loss recognized in | |||||||||||||||||||||||||||
from continuing operations on | earnings from continuing | ||||||||||||||||||||||||||||
instrument under ASC 815 | derivative | operations on derivative | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Equity collar contract | Other expense – net | $ | — | $ | 17.9 | ||||||||||||||||||||||||
Fair Value Measurements. ASC 820 Fair Value Measurements, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||||||||||||||||
Assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||||||||||||||||||||||||||
Continuing assets measured at fair value on a recurring basis are as follows (dollars in millions): | |||||||||||||||||||||||||||||
Fair Value Measurement Using | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | $ | 107 | $ | 197.2 | |||||||||||||||||||||||||
There were no changes in the valuation techniques used to measure fair values on a recurring basis. | |||||||||||||||||||||||||||||
Revenue recognition. The company recognizes revenue upon transfer of title, which occurs upon shipment of the product to the customer except for certain export sales where transfer of title occurs when the product reaches the customer destination. | |||||||||||||||||||||||||||||
Contracts and customer purchase orders are used to determine the existence of a sales arrangement. Shipping documents are used to verify shipment. The company assesses whether the selling price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The company assesses collectability based on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history and does not require collateral on sales in most cases. The allowance for doubtful accounts was $2.8 million and $4.2 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Reserves for customer returns for defective product are based on historical experience with similar types of sales. Accruals for rebates and incentives are based on pricing agreements and are tied to sales volume. Changes in such accruals may be required if future returns differ from historical experience or if actual sales volume differs from estimated sales volume. Rebates and incentives are recognized as a reduction of sales. | |||||||||||||||||||||||||||||
Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold. | |||||||||||||||||||||||||||||
Advertising. The majority of advertising costs are charged to operations as incurred and amounted to $78.0 million, $69.2 million and $58.9 million during 2013, 2012 and 2011, respectively. Included in total advertising costs are expenses associated with store displays for A. O. Smith branded products in China that are amortized over 12 to 24 months which totaled $17.9 million, $15.8 million and $13.1 million during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Research and development. Research and development costs are charged to operations as incurred and amounted to $57.8 million, $51.7 million and $42.7 million during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Product warranties. The company’s products carry warranties that generally range from one to ten years and are based on terms that are generally accepted in the market. The company records a liability for the expected cost of warranty-related claims at the time of sale. The allocation of the warranty liability between current and long-term is based on expected warranty claims to be paid in the next year as determined by historical product failure rates. | |||||||||||||||||||||||||||||
The following table presents the company’s product warranty liability activity in 2013 and 2012: | |||||||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 129.6 | $ | 131.8 | |||||||||||||||||||||||||
Expense | 68 | 54.1 | |||||||||||||||||||||||||||
Claims settled | (61.0 | ) | (56.3 | ) | |||||||||||||||||||||||||
Balance at end of year | $ | 136.6 | $ | 129.6 | |||||||||||||||||||||||||
Environmental costs. The company accrues for costs associated with environmental obligations when such costs are probable and reasonably estimable. Costs of estimated future expenditures are not discounted to their present value. Recoveries of environmental costs from other parties are recorded as assets when their receipt is considered probable. The accruals are adjusted as facts and circumstances change. | |||||||||||||||||||||||||||||
Stock-based compensation. The company follows ASC 718 Compensation - Stock Compensation. Compensation cost is recognized using the straight-line method over the vesting period of the award. ASC 718 also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow, rather than as an operating cash flow as required under prior literature. Excess tax deductions of $4.8 million, $8.8 million and $4.3 million were recognized as cash flows provided by financing activities in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Earnings per share of common stock. The company is not required to use the two-class method of calculating earnings per share since its Class A Common Stock and Common Stock have equal dividend rights. The numerator for the calculation of basic and diluted earnings per share is net earnings. The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Denominator for basic earnings per share - weighted-average shares outstanding | 92,118,153 | 92,395,216 | 92,238,064 | ||||||||||||||||||||||||||
Effect of dilutive stock options, restricted stock and share units | 669,517 | 712,906 | 911,172 | ||||||||||||||||||||||||||
Denominator for diluted earnings per share | 92,787,670 | 93,108,122 | 93,149,236 | ||||||||||||||||||||||||||
On April 15, 2013, the company’s stockholders approved a proposal to increase the company’s authorized shares of Common Stock and the company’s board of directors declared a two-for-one stock split of the company’s Class A Common Stock and Common Stock (including treasury shares) in the form of a 100 percent stock dividend to stockholders of record on April 30, 2013 and payable on May 15, 2013. All references in the financial statements and footnotes to the number of shares outstanding, price per share, per share amounts and stock based compensation data have been recast to reflect the split for all periods presented. | |||||||||||||||||||||||||||||
Reclassifications. Certain amounts from prior years have been reclassified to conform with current year presentation. | |||||||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||||||
In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 allows an entity to first assess qualitative factors in determining whether events and circumstances indicate that it is more-likely-than not that an indefinite-lived intangible asset is impaired. If an entity determines that it is not more-likely-than not that the indefinite-lived intangible asset is impaired, then the entity is not required to perform a quantitative impairment test. ASU 2012-02 was effective for the year ending December 31, 2013. The adoption of this ASU did not have an impact on the company’s consolidated financial condition, results of operations or cash flows. | |||||||||||||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 sets requirements for presentation for significant items reclassified out of accumulated other comprehensive income to net income in reporting periods presented. ASU 2013-02 was effective prospectively beginning with the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on the company’s financial condition or results of operations but required additional disclosure in the notes to the company’s financial statements. The company complied with the disclosure requirements of ASU 2013-02 for the year ended December 31, 2013. | |||||||||||||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations | ' | ||||||||||||
2. Discontinued Operations | |||||||||||||
On August 22, 2011, the company completed the sale of EPC to RBC for $759.9 million in cash and approximately 2.83 million shares of RBC common stock. Included in the $759.9 million of cash is a final working capital adjustment of $7.4 million which was paid to the company by RBC in January 2012. The value of the RBC shares on the date of the closing of the sale was $140.6 million. See Note 13 for further discussion regarding the company’s investment in RBC stock. In 2012, the company paid $31.2 million in income taxes and $3.6 million of other sale related payments. In 2011, the company paid $126.5 million in income taxes and $21.4 million in commissions and other sale related payments. | |||||||||||||
Included in the 2011 gain on sale of EPC was an additional income tax accrual due to the company’s assertion that certain foreign earnings derived from the sale of EPC were not considered permanently reinvested by the company. The accrual is included in long term deferred income taxes in continuing operations. Also included in the 2011 gain on sale is a $10.9 million gain related to cumulative translation adjustments associated with EPC’s foreign subsidiaries. In the fourth quarter of 2012, the company recorded expense of $3.9 million on the gain on sale of EPC. Included in 2012 was $6.4 million of expense representing the correction of an error primarily due to the company’s calculation of taxes due upon repatriation of undistributed foreign earnings. The correction was not material to any previously reported financial period or to the year ended December 31, 2012 and as a result has been reported as the correction of the error in the year ended December 31, 2012. This correction was offset by a change in estimate related to other reserves associated with EPC of $2.5 million. | |||||||||||||
The results of EPC have been reported separately as discontinued operations. | |||||||||||||
The condensed statement of earnings of discontinued EPC operations is: | |||||||||||||
Year ended December 31 (dollars in millions) | |||||||||||||
2011 | |||||||||||||
Net sales | $ | 531.8 | |||||||||||
Cost of products sold | 415.6 | ||||||||||||
Gross profit | 116.2 | ||||||||||||
Selling, general and administrative expenses | 61.5 | ||||||||||||
Interest expense | 2.2 | ||||||||||||
Other income - net | (6.0 | ) | |||||||||||
58.5 | |||||||||||||
Provision for income taxes | 15.5 | ||||||||||||
Net earnings | $ | 43 | |||||||||||
Consolidated interest expense not directly attributable to other operations was allocated to discontinued EPC operations based on the ratio of EPC net assets to be sold to the sum of consolidated net assets plus consolidated debt not directly attributable to other operations. | |||||||||||||
The cash flows (used in) provided by discontinued EPC operations is as follows: | |||||||||||||
Years ended December 31 (dollars in millions) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating Activities | |||||||||||||
(Loss) earnings | $ | — | $ | (3.9 | ) | $ | 43 | ||||||
Adjustments to reconcile earnings to net cash provided by discontinued operating activities: | |||||||||||||
Depreciation and amortization | — | — | 16.5 | ||||||||||
Gain on sale of assets | — | — | (4.8 | ) | |||||||||
Net changes in operating assets and liabilities | |||||||||||||
Current assets and liabilities | (1.0 | ) | (22.6 | ) | (56.2 | ) | |||||||
Noncurrent assets and liabilities | (0.5 | ) | (0.9 | ) | 0.9 | ||||||||
Other | — | — | (1.7 | ) | |||||||||
Cash Used in Discontinued Operating Activities | (1.5 | ) | (27.4 | ) | (2.3 | ) | |||||||
Investing Activities | |||||||||||||
Capital expenditures | — | — | (10.5 | ) | |||||||||
Proceeds on sale of assets | — | — | 6.1 | ||||||||||
Proceeds from sale of operations | — | — | 752.5 | ||||||||||
Payments associated with sale | — | — | (147.9 | ) | |||||||||
Cash Provided by Discontinued Investing Activities | — | — | 600.2 | ||||||||||
Cash (Used in) Provided by Discontinued Operations | $ | (1.5 | ) | $ | (27.4 | ) | $ | 597.9 | |||||
In the second quarter of 2011, the company sold a facility in China and recognized a gain of $4.8 million. | |||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisitions | ' | ||||
3. Acquisitions | |||||
On February 14, 2013, the company acquired 100 percent of the shares of MiM Isitma Sogutma Havalandirma ve Aritma Sistemleri San. Tic. A.S. (MiM), a privately-held Turkish water treatment company. The addition of MiM expanded the company’s product offerings and gives the company access to Eastern Europe and the Black Sea region water treatment markets. MiM is included in the Rest of World segment. | |||||
The company paid an aggregate cash purchase price of $4.0 million, net of cash received of $1.9 million. In addition the company assumed debt of $1.7 million and recorded contingent consideration of $1.1 million the fair value of the contingent payment due to the former owners of MiM if certain targets met for growth in sales, gross profits and operating profits through 2017. | |||||
The fair value of the purchase price resulted in an allocation to acquired intangible assets totaling $4.3 million of which $2.4 million has been assigned to customer lists which are being amortized over ten years. | |||||
MiM’s results of operations have been included in the company’s financial statements from February 14, 2013, the date of acquisition. Revenues and pre-tax results associated with MiM included in results of operations for the year ended December 31, 2013 are not material to the company’s net sales or pre-tax earnings. | |||||
On August 26, 2011, the company acquired 100 percent of the shares of Lochinvar Corporation (Lochinvar), a privately held manufacturer of high-efficiency boilers used in commercial and residential applications located in Lebanon, Tennessee. The addition of Lochinvar expanded the company’s product offerings and gave the company access to proven high-efficiency boiler technology. Approximately 40 percent of Lochinvar-branded sales consist of residential and commercial water heaters while the remaining 60 percent of Lochinvar-branded sales consist primarily of boilers and related parts. Results from Lochinvar are included in the North America segment except for relatively immaterial amounts from a Lochinvar subsidiary in the United Kingdom which is in the company’s Rest of World segment. | |||||
The company paid an aggregate cash purchase price, net of $1.5 million of cash acquired, of $421.1 million. In addition, the company incurred acquisition costs of approximately $5.5 million. Under the purchase agreement for the Lochinvar acquisition, the company agreed to make a contingent payment of up to an additional $35.0 million in cash based on the amount by which Lochinvar sales between December 1, 2011 and November 30, 2012 exceed $216.0 million. As of the acquisition date and December 31, 2011, the fair value of the contingent payment had been estimated at $16.8 million. In December 2012, the contingent payment totaling $13.5 million was made to the former owners of Lochinvar. The contingent consideration adjustment of $3.3 million was recognized as pre-tax earnings in 2012. | |||||
The following table summarizes the allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition. Of the $258.3 million of acquired intangible assets, $103.5 million was assigned to tradenames that are not subject to amortization and $152.5 million was assigned to customer lists which are being amortized over 19 years, and the remaining $2.3 million was assigned to non-compete agreements and patents which are being amortized over ten years. | |||||
August 26, 2011 (dollars in millions) | |||||
Current assets, net of cash acquired | $ | 54 | |||
Property, plant and equipment | 41.9 | ||||
Intangible assets | 258.3 | ||||
Other assets | 0.1 | ||||
Goodwill | 111.4 | ||||
Total assets acquired | 465.7 | ||||
Current liabilities | 24.3 | ||||
Long-term liabilities | 3.5 | ||||
Total liabilities assumed | 27.8 | ||||
Net assets acquired | $ | 437.9 | |||
For income tax purposes, the transaction was accounted for as an asset purchase, resulting in the full amount of goodwill and intangible assets, totaling $369.7 million, being deductible for income tax purposes. | |||||
Lochinvar’s results of operations have been included in the company’s financial statements from August 26, 2011, the date of acquisition. Revenues and pre-tax earnings associated with Lochinvar included in operations from the acquisition date through December 2011 totaled $75.9 million and $5.6 million, respectively which included $13.0 million of operating earnings less $5.5 million of acquisition costs included in selling, general and administrative expenses and $1.9 million of interest expense. | |||||
The proforma unaudited results of operations for the year ended December 31, 2011, assuming consummation of the purchase as of January 2011, would result in diluted earnings per share from continuing operations of $1.32. |
Restructuring_Impairment_and_S
Restructuring, Impairment and Settlement Income | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring, Impairment and Settlement Income | ' | ||||||||||||||||||||||||
4. Restructuring, Impairment and Settlement Income | |||||||||||||||||||||||||
On March 28, 2013, the company announced the move of manufacturing operations from its Fergus, Ontario facility to other North American facilities. In 2013, the company recognized $22.0 million of pre-tax restructuring and impairment expenses, comprised of impairment charges related to long-lived assets totaling $9.2 million, severance costs of $7.5 million, equipment relocation costs of $2.9 million and inventory obsolescence costs totaling $2.4 million, as well as a corresponding $5.6 million income tax benefit related to the expenses all related to this move. The majority of the consolidation of operations occurred in the second quarter of 2013. | |||||||||||||||||||||||||
On March 11, 2013, the company entered into a settlement agreement with a former supplier of a North American subsidiary regarding previous overcharges and warranty costs. The terms of the settlement agreement resulted in an $11.0 million cash payment to the company, a pre-tax gain of $11.0 million and $4.2 million income tax expenses. | |||||||||||||||||||||||||
On November 15, 2012, the company entered into a settlement agreement with a supplier of the company’s Canadian operations. In 2012, the company recorded a pre-tax gain of $3.9 million relating to the settlement. In 2011, the company recorded an $8.2 million warranty provision for future costs associated with this issue. | |||||||||||||||||||||||||
On May 5, 2011, the company entered into a settlement agreement with a supplier of the company’s U.S. operations. Under the terms of the settlement agreement, the vendor and the vendor’s supplier made a $35.5 million cash payment to the company. The settlement reimbursed the company for past costs previously incurred and satisfied in full a receivable recorded by the company, and the company increased its warranty reserve for future costs associated with the affected components on company products by $7.5 million. In 2011, the company recorded a pre-tax gain of $11.2 million for the reimbursement of related costs incurred in prior years. | |||||||||||||||||||||||||
The restructuring impairment and settlement income activities are included in the company’s North America segment. | |||||||||||||||||||||||||
The following table presents an analysis of the company’s restructuring, impairment and settlement reserves as of and for the years ended December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
Inventory | Severance | Asset | Equipment | Settlement | Total | ||||||||||||||||||||
Obsolescence | Costs | Impairment | Relocation | Income | |||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Income recognized | — | — | — | — | (3.9 | ) | (3.9 | ) | |||||||||||||||||
Cash receipts | — | — | — | — | 3.9 | 3.9 | |||||||||||||||||||
Balance at December 31, 2012 | — | — | — | — | — | — | |||||||||||||||||||
Expense (income) recognized | 2.4 | 7.5 | 9.2 | 2.9 | (11.0 | ) | 11 | ||||||||||||||||||
Asset write-down | (0.7 | ) | — | (9.2 | ) | — | — | (9.9 | ) | ||||||||||||||||
Cash (payments) receipts | — | (6.0 | ) | — | (2.5 | ) | 11 | 2.5 | |||||||||||||||||
Balance at December 31, 2013 | $ | 1.7 | $ | 1.5 | $ | — | $ | 0.4 | $ | — | $ | 3.6 | |||||||||||||
Statement_of_Cash_Flows
Statement of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Statement of Cash Flows | ' | ||||||||||||
5. Statement of Cash Flows | |||||||||||||
Supplemental cash flow information is as follows: | |||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||
Net change in current assets and liabilities, net of acquisitions: | |||||||||||||
Receivables | $ | (32.3 | ) | $ | (57.0 | ) | $ | (28.1 | ) | ||||
Inventories | (28.5 | ) | 5 | 4.7 | |||||||||
Other current assets | (7.5 | ) | (0.8 | ) | (4.5 | ) | |||||||
Trade payables | 58 | 26.4 | 27.4 | ||||||||||
Accrued liabilities, including payroll and benefits | 29.4 | 3.1 | (1.7 | ) | |||||||||
Income taxes payable | 1.4 | (13.3 | ) | 2.7 | |||||||||
$ | 20.5 | $ | (36.6 | ) | $ | 0.5 | |||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories | ' | ||||||||
6. Inventories | |||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Finished products | $ | 88.8 | $ | 74.4 | |||||
Work in process | 12.3 | 12 | |||||||
Raw materials | 113.6 | 100 | |||||||
Inventories, at FIFO cost | 214.7 | 186.4 | |||||||
LIFO reserve | 21.3 | 23 | |||||||
$ | 193.4 | $ | 163.4 | ||||||
The company recognized after-tax LIFO expense (income) of $0.1 million, $(1.1) million and $0.4 million in 2013, 2012 and 2011, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment | ' | ||||||||
7. Property, Plant and Equipment | |||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Land | $ | 11.3 | $ | 11.6 | |||||
Buildings | 212.5 | 194.3 | |||||||
Equipment | 497.8 | 455.8 | |||||||
Software | 37.2 | 18.9 | |||||||
758.8 | 680.6 | ||||||||
Less accumulated depreciation and amortization | 367.5 | 334.9 | |||||||
$ | 391.3 | $ | 345.7 | ||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
8. Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
Changes in the carrying amount of goodwill during the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||||||||||
(dollars in millions) | North America | Rest of World | Total | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 374.9 | $ | 58.9 | $ | 433.8 | |||||||||||||||||||
Currency translation adjustment | 1.5 | 0.1 | 1.6 | ||||||||||||||||||||||
Balance at December 31, 2012 | 376.4 | 59 | 435.4 | ||||||||||||||||||||||
Acquisition of business (see Note 3) | — | 1.9 | 1.9 | ||||||||||||||||||||||
Currency translation adjustment | (3.5 | ) | (0.3 | ) | (3.8 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | 372.9 | $ | 60.6 | $ | 433.5 | |||||||||||||||||||
The carrying amount of other intangible assets consisted of the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
December 31 (dollars in millions) | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Patents | $ | 6.8 | $ | (4.7 | ) | $ | 2.1 | $ | 6.8 | $ | (4.4 | ) | $ | 2.4 | |||||||||||
Customer lists | 232.7 | (55.2 | ) | 177.5 | 231 | (41.2 | ) | 189.8 | |||||||||||||||||
Total amortizable intangible assets | 239.5 | (59.9 | ) | 179.6 | 237.8 | (45.6 | ) | 192.2 | |||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Trade names | 145.2 | — | 145.2 | 146.5 | — | 146.5 | |||||||||||||||||||
Total intangible assets | $ | 384.7 | $ | (59.9 | ) | $ | 324.8 | $ | 384.3 | $ | (45.6 | ) | $ | 338.7 | |||||||||||
Amortization expenses of other intangible assets of $14.4 million, $14.6 million, and $9.6 million were recorded in 2013, 2012 and 2011, respectively. In the future, excluding the impact of any future acquisitions, the company expects amortization expense of approximately $14.4 million annually and the intangible assets will be amortized over a weighted average period of 15 years. | |||||||||||||||||||||||||
As a result of the sale of EPC and change in management reporting, the company reconsidered its segment reporting in the fourth quarter of 2011. These changes did not have a significant impact on how the company evaluates goodwill or other intangible assets for impairment. The company concluded that no goodwill impairment existed at the time of the annual impairment tests which were performed in the fourth quarters of 2013, 2012 and 2011. No impairments of other intangible assets were recorded in 2013, 2012 and 2011. |
Debt_and_Lease_Commitments
Debt and Lease Commitments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt and Lease Commitments | ' | ||||||||
9. Debt and Lease Commitments | |||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Bank credit lines, average year-end interest rates of 2.4% for 2013 and 3.8% for 2012 | $ | 3.6 | $ | 9.4 | |||||
Revolving credit agreement borrowings, average year-end interest rates of 1.3% for 2013 and 2012 | 80 | 115 | |||||||
Commercial paper, average year-end interest rates of 1.1% for 2013 and 1.2% for 2012 | 48.9 | 39.3 | |||||||
Term notes with insurance companies, expiring through 2018, average year-end interest rates of 6.0% for 2013 and 2012 | 31.2 | 49.8 | |||||||
Canadian term notes with insurance companies, expiring through 2018, average year-end interest rates of 5.3% for 2013 and 2012 | 28.2 | 30.2 | |||||||
191.9 | 243.7 | ||||||||
Less long-term debt due within one year | 14.2 | 18.6 | |||||||
Long-term debt | $ | 177.7 | $ | 225.1 | |||||
The company has a $400 million multi-year multi-currency revolving credit agreement with a group of eight banks, which expires on December 12, 2017. The facility has an accordion provision which allows it to be increased up to $500 million if certain conditions (including lender approval) are satisfied. Borrowings under the company’s bank credit lines and commercial paper borrowings are supported by the revolving credit agreement. As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are classified as long-term debt at December 31, 2013 and 2012. At its option, the company either maintains cash balances or pays fees for bank credit and services. | |||||||||
Scheduled maturities of long-term debt within each of the five years subsequent to December 31, 2013 are as follows: | |||||||||
Years ending December 31 (dollars in millions) | Amount | ||||||||
2014 | $ | 14.2 | |||||||
2015 | 14.2 | ||||||||
2016 | 14.2 | ||||||||
2017 | 140.9 | ||||||||
2018 | 8.4 | ||||||||
Future minimum payments under non-cancelable operating leases relating mostly to office, manufacturing and warehouse facilities total $27.9 million and are due as follows: | |||||||||
Years ending December 31 (dollars in millions) | Amount | ||||||||
2014 | $ | 8.1 | |||||||
2015 | 5.2 | ||||||||
2016 | 4.3 | ||||||||
2017 | 3.2 | ||||||||
2018 | 2 | ||||||||
Thereafter | 5.1 | ||||||||
Rent expense, including payments under operating leases, was $20.7 million, $18.3 million and $16.1 million in 2013, 2012 and 2011, respectively. | |||||||||
Interest paid by the company including discontinued operations was $5.9 million, $9.4 million and $11.5 million in 2013, 2012 and 2011, respectively. The company capitalized interest expense of $0.8 million in 2013. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
10. Stockholders’ Equity | |||||||||||||||||
The company’s authorized capital consists of three million shares of Preferred Stock $1 par value, 14 million shares of Class A Common Stock $5 par value, and 120 million shares of Common Stock $1 par value. The Common Stock has equal dividend rights with Class A Common Stock and is entitled, as a class, to elect one-third of the Board of Directors and has 1/10th vote per share on all other matters. Class A Common Stock is convertible to Common Stock on a one for one basis. | |||||||||||||||||
There were 85,792 shares during 2013, 1,191,706 shares during 2012 and 461,914 shares during 2011, of Class A Common Stock converted into Common Stock. Regular dividends paid on the A. O. Smith Corporation Class A Common Stock and Common Stock amounted to $0.46, $0.36 and $0.30 per share in 2013, 2012 and 2011, respectively. | |||||||||||||||||
On December 14, 2007, the company’s board of directors approved a stock repurchase program authorizing the purchase of up to 3,000,000 shares (split adjusted) of the company’s common stock, and in December 2010, the board of directors ratified that authorization. In July 2013, the board of directors approved an incremental 2,000,000 shares to the existing discretionary share repurchase program resulting in aggregate authority to repurchase up to 2,551,642 shares. Under the share repurchase program, the company’s common stock may be purchased through a combination of a Rule 10b5-1 automatic trading plan and discretionary purchases in accordance with applicable securities laws. The number of shares purchased and the timing of the purchase will depend on a number of factors, including share price, trading volume and general market conditions, as well as on working capital requirements, general business conditions and other factors, including alternative investment opportunities. The stock repurchase authorizations remain effective until terminated by the board of directors which may occur at any time, subject to the parameters of any Rule 10b5-1 automatic trading plan that the company may then have in effect. In 2013, the company purchased 1,771,066 shares at a total cost of $73.7 million. In 2012, the company purchased 852,980 shares at a total cost of $22.0 million. In 2011, the company purchased 1,223,178 shares at a total cost of $23.5 million. | |||||||||||||||||
At December 31, 2013, a total of 65,190 and 4,049,408 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock. At December 31, 2012, a total of 65,190 and 2,861,944 shares of Class A Common Stock and Common Stock, respectively, were held as treasury stock. | |||||||||||||||||
Accumulated other comprehensive loss is as follows: | |||||||||||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||
Cumulative foreign currency translation adjustments | $ | 19.9 | $ | 19.5 | |||||||||||||
Unrealized net gain on cash flow derivative instruments less related income tax provision of $0.6 in 2013 and $0.5 in 2012 | 1 | 0.7 | |||||||||||||||
Pension liability less related income tax benefit of $179.2 in 2013 and $217.9 in 2012 | (280.0 | ) | (340.7 | ) | |||||||||||||
$ | (259.1 | ) | $ | (320.5 | ) | ||||||||||||
Changes to accumulated other comprehensive loss by component for the year ended December 31, 2013 are as follows: | |||||||||||||||||
(dollars in millions) | |||||||||||||||||
Cumulative | Unrealized | Pension | Total | ||||||||||||||
Foreign | Net Gain | Liability | |||||||||||||||
Currency | (Loss) on | ||||||||||||||||
Translation | Cash Flow | ||||||||||||||||
Derivatives | |||||||||||||||||
Balance at December 31, 2012 | $ | 19.5 | $ | 0.7 | $ | (340.7 | ) | $ | (320.5 | ) | |||||||
Other comprehensive earnings before reclassifications | 0.4 | 1.8 | 35.5 | 37.7 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss: (1) | — | (1.5 | ) | 25.2 | 23.7 | ||||||||||||
Balance at December 31, 2013 | $ | 19.9 | $ | 1 | $ | (280.0 | ) | $ | (259.1 | ) | |||||||
(1) Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||||
Realized gains on derivatives reclassified to cost of products sold | (2.5 | ) | |||||||||||||||
Tax provision | 1 | ||||||||||||||||
Reclassification net of tax | $ | (1.5 | ) | ||||||||||||||
Amortization of pension items: | |||||||||||||||||
Actuarial losses | $ | 41.7 | (2) | ||||||||||||||
Prior year service cost | (0.9 | )(2) | |||||||||||||||
40.8 | |||||||||||||||||
Tax benefit | (15.6 | ) | |||||||||||||||
Reclassification net of tax | $ | 25.2 | |||||||||||||||
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 12 - Pensions for additional details. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||||
11. Stock Based Compensation | |||||||||||||||||||||
The company adopted the A. O. Smith Combined Incentive Compensation Plan (the “plan”) effective January 1, 2007. The plan was reapproved on April 16, 2012. The plan is a continuation of the A. O. Smith Combined Executive Incentive Compensation Plan which was originally approved by shareholders in 2002. The number of shares available for granting of options or share units at December 31, 2013, was 2,754,331. | |||||||||||||||||||||
Total stock based compensation cost recognized in 2013, 2012 and 2011 was $10.5 million, $6.8 million and $5.7 million, respectively. | |||||||||||||||||||||
Stock options | |||||||||||||||||||||
The stock options granted in 2013, 2012 and 2011 have three year pro rata vesting from the dates of grant. Stock options are issued at exercise prices equal to the fair value of Common Stock on the date of grant. For active employees, all options granted in 2013, 2012 and 2011 expire ten years after date of grant. Stock option compensation recognized in 2013, 2012 and 2011 was $4.5 million, $3.2 million and $2.8 million, respectively. Included in the stock option expense recognized in 2013, 2012 and 2011 is expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. | |||||||||||||||||||||
Changes in option shares, all of which are Common Stock, were as follows: | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Weighted-Avg. | Aggregate | ||||||||||||||||||||
Per Share | Years Ended December 31 | Intrinsic Value | |||||||||||||||||||
Exercise Price | 2013 | 2012 | 2011 | ||||||||||||||||||
Outstanding at beginning of year | $ | 16.72 | 1,530,734 | 2,843,734 | 3,246,202 | ||||||||||||||||
Granted | |||||||||||||||||||||
2013—$34.96 to $52.93 per share | 361,700 | ||||||||||||||||||||
2012—$22.08 to $22.99 per share | 382,000 | ||||||||||||||||||||
2011—$21.56 to $22.06 per share | 356,400 | ||||||||||||||||||||
Exercised | |||||||||||||||||||||
2013—$8.20 to $22.99 per share | (446,746 | ) | $ | 6 | |||||||||||||||||
2012—$8.21 to $21.56 per share | (1,686,834 | ) | 18.4 | ||||||||||||||||||
2011—$7.99 to $13.97 per share | (728,162 | ) | 7.7 | ||||||||||||||||||
Forfeited | |||||||||||||||||||||
2013—$22.99 to $34.92 per share | (5,065 | ) | |||||||||||||||||||
2012—$13.97 to $22.99 per share | (8,166 | ) | |||||||||||||||||||
2011—$9.50 to $21.56 per share | (30,706 | ) | |||||||||||||||||||
Outstanding at end of year | |||||||||||||||||||||
(2013—$8.20 to $38.94 per share) | 22.37 | 1,440,623 | 1,530,734 | 2,843,734 | |||||||||||||||||
Exercisable at end of year | 16.04 | 740,919 | 819,312 | 1,979,866 | |||||||||||||||||
The aggregate intrinsic value for the outstanding and exercisable options as of December 31, 2013 is $45.5 million and $28.1 million, respectively. The average remaining contractual life for outstanding and exercisable options is eight years and seven years, respectively. | |||||||||||||||||||||
The following table summarizes weighted-average information by range of exercise prices for stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
Weighted- | |||||||||||||||||||||
Options | Weighted- | Options | Weighted- | Average | |||||||||||||||||
Outstanding at | Average | Exercisable at | Average | Remaining | |||||||||||||||||
Range of | December 31, | Exercise | December 31, | Exercise | Contractual | ||||||||||||||||
Exercise Prices | 2013 | Price | 2013 | Price | Life | ||||||||||||||||
$8.20 to $11.88 | 275,400 | $ | 10.12 | 275,400 | $ | 10.12 | 6 years | ||||||||||||||
$12.92 to $13.97 | 144,700 | 13.86 | 144,700 | 13.86 | 7 years | ||||||||||||||||
$21.56 to $38.94 | 1,020,523 | 26.88 | 320,819 | 22.12 | 9 years | ||||||||||||||||
1,440,623 | 740,919 | ||||||||||||||||||||
The weighted-average fair value per option at the date of grant during 2013, 2012 and 2011, using the Black-Scholes option-pricing model, was $12.57, $8.26 and $8.26, respectively. Assumptions were as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected life (years) | 6.1 | 6.2 | 6.4 | ||||||||||||||||||
Risk-free interest rate | 2 | % | 2 | % | 3.6 | % | |||||||||||||||
Dividend yield | 1.1 | % | 1.4 | % | 1.3 | % | |||||||||||||||
Expected volatility | 38.4 | % | 39.4 | % | 38.4 | % | |||||||||||||||
The expected life is based on historical exercise behavior and the projected exercises of unexercised stock options. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected dividend yield is based on the expected annual dividends divided by the grant date market value of the company’s common stock. The expected volatility is based on the historical volatility of the company’s common stock. | |||||||||||||||||||||
Restricted stock and share units | |||||||||||||||||||||
Participants may also be awarded shares of restricted stock or share units under the plan. The company granted 144,696, 167,860 and 151,250 share units under the plan in 2013, 2012 and 2011, respectively. Compensation expense was recognized ratably over the vesting period. | |||||||||||||||||||||
The share units were valued at $5.0 million, $3.9 million and $3.3 million at the date of issuance in 2013, 2012 and 2011, respectively, and will be recognized as compensation expense ratably over the three-year vesting period. Compensation expense of $6.0 million, $3.6 million and $2.9 million was recognized in 2013, 2012 and 2011, respectively. Included in share based compensation is expense associated with the accelerated vesting of share unit awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. | |||||||||||||||||||||
A summary of share unit activity under the plan is as follows: | |||||||||||||||||||||
Number of Units | Weighted-Average | ||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||
Outstanding at January 1, 2013 | 469,012 | $ | 19.37 | ||||||||||||||||||
Granted | 144,696 | 34.87 | |||||||||||||||||||
Vested | (157,732 | ) | 13.97 | ||||||||||||||||||
Forfeited/cancelled | (9,940 | ) | 27.33 | ||||||||||||||||||
Outstanding at December 31, 2013 | 446,036 | 26.14 | |||||||||||||||||||
Total compensation expense for share units not yet recognized is $3.2 million at December 31, 2013. The weighted average period over which the expense is expected to be recognized is 17 months. | |||||||||||||||||||||
Pension_and_Other_Postretireme
Pension and Other Post-retirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Pension and Other Post-retirement Benefits | ' | ||||||||||||||||||||||||
12. Pension and Other Post-retirement Benefits | |||||||||||||||||||||||||
The company provides retirement benefits for all U.S. employees including benefits for employees of previously owned businesses which were earned up to the date of sale. The company also has two foreign pension plans, neither of which is material to the company’s financial position. | |||||||||||||||||||||||||
The company has a defined contribution plan which matches 100 percent of the first one percent of contributions made by participating employees and matches 50 percent of the next five percent of employee contributions. The company also has defined contribution plans for certain hourly employees which provide for matching company contributions. | |||||||||||||||||||||||||
The company also has a defined benefit plan for salaried employees and its non-union hourly workforce. In 2009, the company announced U.S. employees hired after January 1, 2010, will not participate in the defined benefit plan, and benefit accruals for the majority of current salaried and hourly employees will stop at the end of 2014. This change resulted in a plan curtailment and reduced the plan’s liability by $12.3 million. No curtailment gain was recognized because the reduction in liability was offset by existing unrecognized losses. Beginning in 2015, an additional company contribution will be made to the defined contribution plan in lieu of participation in a defined benefit plan. The company also has defined benefit and contribution plans for certain union hourly employees. | |||||||||||||||||||||||||
The company has unfunded defined-benefit post-retirement plans covering certain hourly and salaried employees that provide medical and life insurance benefits from retirement to age 65. Certain hourly employees retiring after January 1, 1996, are subject to a maximum annual benefit and salaried employees hired after December 31, 1993, are not eligible for post-retirement medical benefits. | |||||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||||
Pension and Post-Retirement Disclosure Information Under ASC 715 | |||||||||||||||||||||||||
The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs. | |||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated Benefit Obligation (ABO) at December 31 | $ | 929.1 | $ | 978.7 | N/A | N/A | |||||||||||||||||||
Change in projected benefit obligations (PBO) | |||||||||||||||||||||||||
PBO at beginning of year | $ | (987.7 | ) | $ | (906.5 | ) | $ | (11.4 | ) | $ | (12.7 | ) | |||||||||||||
Service cost | (9.0 | ) | (7.8 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||
Interest cost | (39.5 | ) | (43.6 | ) | (0.5 | ) | (0.5 | ) | |||||||||||||||||
Participant contributions | — | — | (0.3 | ) | (0.3 | ) | |||||||||||||||||||
Actuarial gain (loss) including assumption changes | 39.6 | (90.3 | ) | (0.3 | ) | 1.1 | |||||||||||||||||||
Benefits paid | 59.6 | 60.5 | 1.7 | 1.1 | |||||||||||||||||||||
PBO at end of year | $ | (937.0 | ) | $ | (987.7 | ) | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||||
Plan assets at beginning of year | $ | 800.5 | $ | 768.6 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 80.8 | 91.2 | — | — | |||||||||||||||||||||
Contribution by the company | 0.6 | 1.2 | 1.4 | 0.8 | |||||||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Benefits paid | (59.6 | ) | (60.5 | ) | (1.7 | ) | (1.1 | ) | |||||||||||||||||
Plan assets at end of year | $ | 822.3 | $ | 800.5 | $ | — | $ | — | |||||||||||||||||
Funded status | $ | (114.7 | ) | $ | (187.2 | ) | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Amount recognized in the balance sheet | |||||||||||||||||||||||||
Current liabilities | $ | (7.1 | ) | $ | — | $ | (0.9 | ) | $ | (0.8 | ) | ||||||||||||||
Non-current liabilities | (107.6 | ) | (187.2 | ) | (10.0 | ) | (10.6 | ) | |||||||||||||||||
Net pension liability at end of year | $ | (114.7 | )* | $ | (187.2 | )* | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Amounts recognized in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss Before Tax | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 467.1 | $ | 567.9 | $ | (2.9 | ) | $ | (3.5 | ) | |||||||||||||||
Prior service cost | (7.2 | ) | (8.1 | ) | — | — | |||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 459.9 | $ | 559.8 | $ | (2.9 | ) | $ | (3.5 | ) | |||||||||||||||
* | In addition, the company has recorded a liability for a foreign pension plan of $3.1 million and $2.9 million at December 31, 2013 and 2012, respectively, and an accumulated other comprehensive loss of $2.2 million and $2.3 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 9 | $ | 7.8 | $ | 9.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||||||
Interest cost | 39.5 | 43.6 | 44.2 | 0.5 | 0.5 | 0.7 | |||||||||||||||||||
Expected return on plan assets | (61.7 | ) | (68.9 | ) | (70.6 | ) | — | — | — | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||||
Net actuarial loss | 42 | 32.1 | 24.4 | (0.3 | ) | (0.4 | ) | (0.4 | ) | ||||||||||||||||
Prior service cost | (0.9 | ) | (0.8 | ) | (0.9 | ) | — | — | — | ||||||||||||||||
Curtailment and other one-time charges | — | — | (1.3 | ) | — | — | (2.1 | ) | |||||||||||||||||
Defined-benefit plan cost | 27.9 | 13.8 | 4.9 | $ | 0.3 | $ | 0.2 | $ | (1.6 | ) | |||||||||||||||
Various U.S. defined contribution plans cost | 5.4 | 5 | 5.6 | ||||||||||||||||||||||
$ | 33.3 | $ | 18.8 | $ | 10.5 | * | |||||||||||||||||||
Other Changes in Plan Assets and Projected Benefit Obligation | |||||||||||||||||||||||||
Recognized in Other Comprehensive Loss | |||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (58.7 | ) | $ | 68 | $ | 109.3 | $ | 0.3 | $ | (1.1 | ) | $ | 0.2 | |||||||||||
Amortization of net actuarial (loss) gain | (42.0 | ) | (32.1 | ) | (24.4 | ) | 0.3 | 0.4 | 0.4 | ||||||||||||||||
Prior service cost | — | — | 2.8 | ||||||||||||||||||||||
Amortization of prior service cost | 0.9 | 0.8 | 0.9 | — | — | (0.1 | ) | ||||||||||||||||||
Total recognized in other comprehensive loss | (99.8 | ) | 36.7 | 88.6 | 0.6 | (0.7 | ) | 0.5 | |||||||||||||||||
Total Recognized in Net Periodic (Benefit) Cost and Other Comprehensive Loss | $ | (71.9 | ) | $ | 50.5 | $ | 93.5 | $ | 0.9 | $ | (0.5 | ) | $ | (1.1 | ) | ||||||||||
The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2014 are $35.4 million and $(1.0) million, respectively. The estimated net actuarial gain and prior year service cost for the post-retirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2013 are each less than $0.3 million. As permitted under ASC 715, the amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan. | |||||||||||||||||||||||||
The 2013 and 2012 after tax adjustments for additional minimum pension liability resulted in other comprehensive (gain) loss of $(60.7) million and $22.4 million, respectively. | |||||||||||||||||||||||||
* | Includes $1.6 million of defined benefit plan expense and $0.9 million of defined contribution plans expense that were included in earnings from discontinued operations for 2011. | ||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
Actuarial assumptions used to determine benefit obligations at December 31 are as follows: | |||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.85 | % | 4.05 | % | 4.7 | % | 4.05 | % | |||||||||||||||||
Average salary increases | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows: | |||||||||||||||||||||||||
Pension Benefits | Post-retirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.9 | % | 5.35 | % | 4.05 | % | 4.9 | % | 5.35 | % | |||||||||||||
Expected long-term return on plan assets | 8 | % | 8.5 | % | 8.75 | % | n/a | n/a | n/a | ||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||
In developing the expected long-term rate of return assumption, the company evaluated its pension plan’s target and actual asset allocation and expected long-term rates of return of equity and bond indices. The company also considered its pension plan’s historical ten-year and 25-year compounded annualized returns of 6.4 percent and 9.8 percent, respectively. | |||||||||||||||||||||||||
Assumed health care cost trend rates | |||||||||||||||||||||||||
Assumed health care cost trend rates as of December 31 are as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 10 | % | 10 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2017 | |||||||||||||||||||||||
A one-percentage-point change in the assumed health care cost trend rates would not result in a material impact on the company’s consolidated financial statements. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The company’s pension plan weighted asset allocations as of December 31 by asset category are as follows: | |||||||||||||||||||||||||
Asset Category | 2013 | 2012 | |||||||||||||||||||||||
Equity securities | 53 | % | 62 | % | |||||||||||||||||||||
Debt securities | 34 | 33 | |||||||||||||||||||||||
Private equity | 5 | 4 | |||||||||||||||||||||||
Real estate | 7 | — | |||||||||||||||||||||||
Other | 1 | 1 | |||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
The following tables present the fair value measurement of the company’s plan assets as of December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices in | Significant Other | Significant Non- | |||||||||||||||||||||
Active Markets for | Observable Inputs | observable Inputs | |||||||||||||||||||||||
Identical Contracts | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Short-term investments | $ | 15.4 | $ | 1.4 | $ | — | $ | 14 | |||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
Common stocks | 272.9 | 272.9 | — | — | |||||||||||||||||||||
Commingled equity funds | 147.5 | — | 147.5 | — | |||||||||||||||||||||
Fixed Income Securities | |||||||||||||||||||||||||
U.S. Treasury securities | 136.2 | 136.2 | — | — | |||||||||||||||||||||
Other fixed income securities | 75.3 | — | 75 | 0.3 | |||||||||||||||||||||
Commingled fixed income funds | 71.8 | — | 71.8 | — | |||||||||||||||||||||
Other types of investments | |||||||||||||||||||||||||
Real estate funds | 57.2 | — | — | 57.2 | |||||||||||||||||||||
Private equity | 37.7 | — | — | 37.7 | |||||||||||||||||||||
Total fair value of plan asset investments | $ | 814 | $ | 410.5 | $ | 294.3 | $ | 109.2 | |||||||||||||||||
Non-investment plan assets | 8.3 | ||||||||||||||||||||||||
Total plan assets | $ | 822.3 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices in | Significant Other | Significant Non- | |||||||||||||||||||||
Active Markets for | Observable Inputs | observable Inputs | |||||||||||||||||||||||
Identical Contracts | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Short-term investments | $ | 23.3 | $ | — | $ | — | $ | 23.3 | |||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
Common stocks | 300.2 | 300.2 | — | — | |||||||||||||||||||||
Commingled equity funds | 178.3 | — | 178.3 | — | |||||||||||||||||||||
Fixed Income Securities | |||||||||||||||||||||||||
U.S. Treasury securities | 90.1 | 90.1 | — | — | |||||||||||||||||||||
Government agency securities | 3.2 | — | 3.2 | — | |||||||||||||||||||||
Other fixed income securities | 49.6 | — | 49.3 | 0.3 | |||||||||||||||||||||
Commingled fixed income funds | 120.6 | — | 120.6 | — | |||||||||||||||||||||
Other types of investments | |||||||||||||||||||||||||
Private equity | 34.4 | — | — | 34.4 | |||||||||||||||||||||
Total fair value of plan asset investments | $ | 799.7 | $ | 390.3 | $ | 351.4 | $ | 58 | |||||||||||||||||
Non-investment plan assets | 0.8 | ||||||||||||||||||||||||
Total plan assets | $ | 800.5 | |||||||||||||||||||||||
The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
Short Term | Other Fixed | Real | Private | Total | |||||||||||||||||||||
Investments | Income | Estate | Equity | ||||||||||||||||||||||
Securities | Funds | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 39.7 | $ | 0.2 | $ | — | $ | 34.7 | $ | 74.6 | |||||||||||||||
Actual return (loss) on plan assets: | — | ||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | 0.1 | — | 0.3 | 0.4 | ||||||||||||||||||||
Relating to assets sold during the period | — | — | — | 3.8 | 3.8 | ||||||||||||||||||||
Purchases, sales and settlements | (16.4 | ) | — | — | (4.4 | ) | (20.8 | ) | |||||||||||||||||
Balance at December 31, 2012 | 23.3 | 0.3 | — | 34.4 | 58 | ||||||||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | — | 1.6 | 2.4 | 4 | ||||||||||||||||||||
Relating to assets sold during the period | — | — | — | 0.8 | 0.8 | ||||||||||||||||||||
Purchases, sales and settlements | (9.3 | ) | — | 55.6 | 0.1 | 46.4 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 14 | $ | 0.3 | $ | 57.2 | $ | 37.7 | $ | 109.2 | |||||||||||||||
The company’s investment policies employ an approach whereby a diversified blend of equity and bond investments is used to maximize the long–term return of plan assets for a prudent level of risk. Equity investments are diversified across domestic and non–domestic stocks, as well as growth, value, and small to large capitalizations. Bond investments include corporate and government issues, with short–, mid– and long–term maturities, with a focus on investment grade when purchased. The company’s target allocation to equity managers is between 50 to 55 percent with the remainder allocated primarily to bonds and a small allocation to real estate, private equity managers and cash. Investment and market risks are measured and monitored on an ongoing basis through regular investment portfolio reviews, annual liability measurements and periodic asset/liability studies. | |||||||||||||||||||||||||
The company’s actual asset allocations are in line with target allocations. The company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate. | |||||||||||||||||||||||||
There was no company stock included in plan assets at December 31, 2013. | |||||||||||||||||||||||||
Cash Flows | |||||||||||||||||||||||||
The company was not required to and did not make any contributions in 2013 and is not required to make a contribution in 2014. | |||||||||||||||||||||||||
Estimated Future Payments | |||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||
Years ending December 31 (dollars in millions) | Pension Benefits | Post-retirement | |||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | $ | 66.7 | $ | 0.9 | |||||||||||||||||||||
2015 | 60 | 0.9 | |||||||||||||||||||||||
2016 | 61.2 | 0.9 | |||||||||||||||||||||||
2017 | 60.2 | 0.9 | |||||||||||||||||||||||
2018 | 66.2 | 0.8 | |||||||||||||||||||||||
2019 – 2023 | 306.7 | 3.7 |
Investment_in_Shares_of_RBC_Co
Investment in Shares of RBC Common Stock | 12 Months Ended |
Dec. 31, 2013 | |
Investment in Shares of RBC Common Stock | ' |
13. Investment in Shares of RBC Common Stock | |
As discussed in Note 2, the company received approximately 2.83 million shares of RBC common stock as part of the proceeds of its sale of EPC to RBC. One half of the company’s shares of RBC common stock were classified as available for sale securities and were recorded at fair value with an unrealized after-tax gain of $1.2 million included in other comprehensive earnings as of December 31, 2011. The company entered into an equity collar contract for the remaining half of its shares of RBC common stock which were classified as trading securities. Those shares were also recorded at fair value. See Note 1 for further discussion regarding the equity collar. During 2012, the company sold all of its shares of RBC common stock for net proceeds of $187.6 million or an average price of $66.19 per share. Net pre-tax gains of $27.2 million were recorded in other income-net in the consolidated statement of earnings in 2012. The net pre-tax $27.2 million gain was comprised of $43.2 million of gains on the sale of the shares of RBC common stock, the recognition of a $1.9 million gain previously recognized in other comprehensive loss at December 31, 2011 and the write off of $17.9 million, the value of the collar at December 31, 2011. The $187.6 million of net proceeds received in 2012 were used to pay down debt. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
14. Income Taxes | |||||||||||||||||
The components of the provision (benefit) for income taxes consisted of the following: | |||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 53.9 | $ | 51.5 | $ | (28.0 | ) | ||||||||||
State | 9.6 | 7.2 | (5.2 | ) | |||||||||||||
International | 19.1 | 17 | 4.9 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (8.4 | ) | (3.8 | ) | 63.3 | ||||||||||||
State | (0.5 | ) | 4.6 | 11.9 | |||||||||||||
International | (7.0 | ) | (5.3 | ) | 3.4 | ||||||||||||
$ | 66.7 | $ | 71.2 | $ | 50.3 | ||||||||||||
The provision for income taxes differs from the U.S. federal statutory rate due to the following items: | |||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||
Provision at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State income and franchise taxes, net of federal benefit | 2.5 | 3.3 | 3.2 | ||||||||||||||
International income tax rate differential - China | (8.1 | ) | (5.8 | ) | (4.9 | ) | |||||||||||
International income tax rate differential - other | 0.7 | 0.2 | 0.6 | ||||||||||||||
U.S. manufacturing credit | (1.9 | ) | (2.1 | ) | — | ||||||||||||
Research tax credits | (0.8 | ) | — | (0.6 | ) | ||||||||||||
State tax credits | — | — | (2.3 | ) | |||||||||||||
Other | 0.8 | (0.2 | ) | 0.1 | |||||||||||||
28.2 | % | 30.4 | % | 31.1 | % | ||||||||||||
Components of earnings before income taxes were as follows: | |||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||||||
U.S. | $ | 151.9 | $ | 158.6 | $ | 117.8 | |||||||||||
International | 84.5 | 75.2 | 43.7 | ||||||||||||||
$ | 236.4 | $ | 233.8 | $ | 161.5 | ||||||||||||
Total income taxes paid by the company including discontinued operations amounted to $70.2 million, $103.0 million, and $117.2 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Included in the 2011 gain on sale of EPC was an additional tax accrual due to the company’s assertion that certain foreign earnings derived from the sale of EPC were not considered permanently reinvested by the company. In the fourth quarter of 2012, the company recorded discontinued operations expense of $6.4 million representing the correction of an error primarily due to its calculation of taxes due upon repatriation of undistributed foreign earnings. The correction was not material to any previously reported financial period or to the year ended December 31, 2012 and as a result has been reported as the correction of an error in the year ended December 31, 2012. | |||||||||||||||||
As of December 31, 2013, the company has $53.1 million accrued for its estimate of the tax costs due upon repatriation of undistributed foreign earnings it considers to be not permanently reinvested. At December 31, 2013, the company had undistributed foreign earnings of $699.6 million, of which $428.6 million are considered permanently reinvested. No. U.S. income tax provision or foreign withholding tax provisions have been made on foreign earnings that remain permanently reinvested. Determination of the amount of unrecognized deferred tax liability on the undistributed earnings considered permanently reinvested is not practicable. In addition, no provision or benefit for U.S. income taxes has been made on foreign currency translation gains or losses. As of December 31, 2013, $487.6 million of cash and cash equivalents were held by our foreign subsidiaries. | |||||||||||||||||
The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows: | |||||||||||||||||
December 31 (dollars in millions) | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Employee benefits | $ | 66.8 | $ | — | $ | 90.2 | $ | — | |||||||||
Product liability and warranties | 64.5 | — | 57.3 | — | |||||||||||||
Inventories | — | 4.7 | — | 2.4 | |||||||||||||
Accounts receivable | 11.1 | — | 11.2 | — | |||||||||||||
Property, plant and equipment | — | 33 | — | 35.7 | |||||||||||||
Intangibles | — | 40 | — | 32.9 | |||||||||||||
Environmental liabilities | 3.2 | — | 3.2 | — | |||||||||||||
Undistributed foreign earnings | — | 56.4 | — | 65.1 | |||||||||||||
Tax loss and credit carryovers | 17.7 | — | 15.3 | — | |||||||||||||
All other | 2.4 | — | 1.5 | — | |||||||||||||
Valuation allowance | (9.6 | ) | — | (7.4 | ) | — | |||||||||||
$ | 156.1 | $ | 134.1 | $ | 171.3 | $ | 136.1 | ||||||||||
Net asset | $ | 22 | $ | 35.2 | |||||||||||||
These deferred tax assets and liabilities are classified in the balance sheet as current or long-term based on the balance sheet classification of the related assets and liabilities as follows: | |||||||||||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||
Current deferred income tax assets | $ | 40.1 | $ | 33.2 | |||||||||||||
Long-term deferred income tax assets | 2.9 | 8.3 | |||||||||||||||
Long-term deferred income tax liabilities | (21.0 | ) | (6.3 | ) | |||||||||||||
Net asset | $ | 22 | $ | 35.2 | |||||||||||||
A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows: | |||||||||||||||||
December 31 (dollars in millions) | |||||||||||||||||
Net Operating Losses and Tax Credits | Valuation Allowances | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 15.3 | $ | 17 | $ | 7.4 | $ | 8.4 | |||||||||
Additions | 4.1 | 2 | 2.2 | 3 | |||||||||||||
Reductions | (1.7 | ) | (3.7 | ) | — | (4.0 | ) | ||||||||||
Ending balance | $ | 17.7 | $ | 15.3 | $ | 9.6 | $ | 7.4 | |||||||||
The company has foreign net operating loss carryovers that expire in 2014 through 2020, a foreign tax credit carryover that expires in 2021, and state and local net operating loss carryovers that expire between 2014 and 2030. | |||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized benefits is as follows: | |||||||||||||||||
(Dollars in millions) | 2013 | 2012 | |||||||||||||||
Balance at January 1 | $ | 1.3 | $ | 1.8 | |||||||||||||
Reductions for tax positions of prior years | — | (0.5 | ) | ||||||||||||||
Balance at December 31 | $ | 1.3 | $ | 1.3 | |||||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $0.9 million. The company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. At December 31, 2013 there was $0.2 million of interest and penalties accrued. It is anticipated there will be a $0.1 million decrease in the total amount of unrecognized tax benefits in the next 12 months. The company’s U.S. federal income tax returns for 2009-2013 are subject to audit. The company is subject to state and local income tax audits for tax years 2000-2013. The company is subject to non-U.S. income tax examinations for years 2006-2013. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
The company is a potentially responsible party in judicial and administrative proceedings seeking to clean up sites which have been environmentally impacted. In each case the company has established reserves, insurance proceeds and/or a potential recovery from third parties. The company believes any environmental claims will not have a material effect on its financial position or results of operations. | |
The company is subject to various claims and pending lawsuits for product liability and other matters arising out of the conduct of the company’s business. With respect to product liability claims, the company has self-insured a portion of its product liability loss exposure for many years. The company has established reserves which it believes are adequate to cover incurred claims. For the years ended December 31, 2013 and 2012, the company had $125 million of product liability insurance for individual losses in excess of $7.5 million in 2013 and in excess of $5.0 million in 2012. The company periodically reevaluates its exposure on claims and lawsuits and makes adjustments to its reserves as appropriate. The company believes, based on current knowledge, consultation with counsel, adequate reserves and insurance coverage, that the outcome of such claims and lawsuits will not have a material adverse effect on the company’s financial position, results of operations or cash flows. |
Operations_by_Segment
Operations by Segment | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Operations by Segment | ' | ||||||||||||||||||||||||||||||||||||
16. Operations by Segment | |||||||||||||||||||||||||||||||||||||
Prior to the sale of EPC, the company had identified two segments, Water Products Company and EPC. As a result of the sale of EPC and a change in management reporting, the company reconsidered its segment reporting in the fourth quarter of 2011 and determined that it is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential gas, gas tankless and electric water heaters and commercial water heating equipment. Both segments primarily serve their respective regions of the world. The North America segment also manufactures and markets specialty commercial water heating equipment, condensing and non-condensing boilers and water system tanks. The Rest of World segment also manufactures and markets water treatment products, primarily in Asia. | |||||||||||||||||||||||||||||||||||||
The accounting policies of the reportable segments are the same as those described in the “Summary of Significant Accounting Policies” outlined in Note 1. Operating earnings, defined by the company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments. | |||||||||||||||||||||||||||||||||||||
Net Sales | Earnings | ||||||||||||||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
North America | $ | 1,520.00 | $ | 1,430.80 | $ | 1,289.50 | $ | 211.9 | $ | 199.8 | $ | 154 | |||||||||||||||||||||||||
Rest of World | 668 | 542.5 | 455.6 | 88 | 59.6 | 42.7 | |||||||||||||||||||||||||||||||
Inter-segment | (34.2 | ) | (34.0 | ) | (34.6 | ) | — | — | (0.2 | ) | |||||||||||||||||||||||||||
Total segments – sales, operating earnings | $ | 2,153.80 | $ | 1,939.30 | $ | 1,710.50 | $ | 299.9 | $ | 259.4 | $ | 196.5 | |||||||||||||||||||||||||
Corporate expenses | (57.8 | ) | (16.4 | ) | (25.7 | ) | |||||||||||||||||||||||||||||||
Interest expense | (5.7 | ) | (9.2 | ) | (9.3 | ) | |||||||||||||||||||||||||||||||
Earnings before income taxes | 236.4 | 233.8 | 161.5 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | (66.7 | ) | (71.2 | ) | (50.3 | ) | |||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 169.7 | $ | 162.6 | $ | 111.2 | |||||||||||||||||||||||||||||||
In 2013, sales to the North America segment’s two largest customers were $310.3 million and $240.6 million which represented 14 percent and 11 percent of the company’s net sales, respectively. In 2012, sales to the North America segment’s two largest customers were $284.0 million and $194.8 million which represented 15 percent and ten percent of the company’s net sales, respectively. In 2011, sales to the North America segment’s two largest customers were $273.1 million and $194.7 million which represent 16 percent and 11 percent of the company’s net sales, respectively. | |||||||||||||||||||||||||||||||||||||
Assets, depreciation and capital expenditures by segment | |||||||||||||||||||||||||||||||||||||
Total Assets | Depreciation and | Capital | |||||||||||||||||||||||||||||||||||
(December 31) | Amortization (Years Ended | Expenditures | |||||||||||||||||||||||||||||||||||
December 31) | (Years Ended | ||||||||||||||||||||||||||||||||||||
December 31) | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
North America | $ | 1,298.60 | $ | 1,306.20 | $ | 1,319.20 | $ | 40.5 | $ | 39.3 | $ | 33.9 | $ | 38 | $ | 24.7 | $ | 31.6 | |||||||||||||||||||
Rest of World | 525.2 | 420.2 | 342.4 | 16.8 | 14.3 | 12.4 | 59 | 40.3 | 20.5 | ||||||||||||||||||||||||||||
Corporate | 567.7 | 552.4 | 687.4 | 2.4 | 1 | 0.7 | 0.7 | 4.9 | 1.4 | ||||||||||||||||||||||||||||
Total | $ | 2,391.50 | $ | 2,278.80 | $ | 2,349.00 | $ | 59.7 | $ | 54.6 | $ | 47 | $ | 97.7 | $ | 69.9 | $ | 53.5 | |||||||||||||||||||
The majority of corporate assets consist of cash, cash equivalents, marketable securities and deferred income taxes. | |||||||||||||||||||||||||||||||||||||
Net sales and long-lived assets by geographic location | |||||||||||||||||||||||||||||||||||||
The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment and other long-term assets and long-lived assets of previously owned businesses. | |||||||||||||||||||||||||||||||||||||
Long-lived Assets | Net Sales | ||||||||||||||||||||||||||||||||||||
(December 31) | (Years Ended December 31) | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
United States | $ | 238.6 | $ | 219.1 | $ | 218.2 | United States | $ | 1,335.40 | $ | 1,241.00 | $ | 1,094.30 | ||||||||||||||||||||||||
China | 134.9 | 99.6 | 70.7 | China | 581 | 461.2 | 382.2 | ||||||||||||||||||||||||||||||
Canada | 4.7 | 20.4 | 20.9 | Canada | 142.5 | 150.1 | 160.2 | ||||||||||||||||||||||||||||||
Other Foreign | 46.4 | 35.9 | 32 | Other Foreign | 94.9 | 87 | 73.8 | ||||||||||||||||||||||||||||||
Total | $ | 424.6 | $ | 375 | $ | 341.8 | Total | $ | 2,153.80 | $ | 1,939.30 | $ | 1,710.50 | ||||||||||||||||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Results of Operations | ' | ||||||||||||||||||||||||||||||||
17. Quarterly Results of Operations (Unaudited) | |||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Net sales | $ | 509.6 | $ | 468.6 | $ | 549.1 | $ | 484.2 | $ | 536.2 | $ | 462.3 | $ | 558.9 | $ | 524.2 | |||||||||||||||||
Gross profit | 179.3 | 149.1 | 198 | 160.5 | 196.6 | 156.8 | 199.9 | 185.6 | |||||||||||||||||||||||||
Earnings (loss) | |||||||||||||||||||||||||||||||||
Continuing operations | 39 | 47.5 | 42.1 | 35 | 46.2 | 37 | 42.4 | 43.1 | |||||||||||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (3.9 | ) | ||||||||||||||||||||||||
Net earnings | $ | 39 | $ | 47.5 | $ | 42.1 | $ | 35 | $ | 46.2 | $ | 37 | $ | 42.4 | $ | 39.2 | |||||||||||||||||
Basic earnings (loss) per share | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.47 | |||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (0.05 | ) | ||||||||||||||||||||||||
Net | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.42 | |||||||||||||||||
Diluted earnings (loss) per share | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.46 | |||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (0.04 | ) | ||||||||||||||||||||||||
Net | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.42 | |||||||||||||||||
Common dividends declared | $ | 0.1 | $ | 0.08 | $ | 0.12 | $ | 0.08 | $ | 0.12 | $ | 0.1 | $ | 0.12 | $ | 0.1 | |||||||||||||||||
Net earnings per share are computed separately for each period, and therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||||||||||||||||||||||
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Organization | ' | ||||||||||||||||||||||||||||
Organization. A. O. Smith Corporation (A. O. Smith or the company) is a manufacturer of water heaters and boilers, serving a diverse mix of residential and commercial end markets principally in the United States with a strong and growing international presence. The company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe, India and the Middle East. Both segments manufacture and market comprehensive lines of residential gas, gas tankless and electric water heaters and commercial water heating equipment. Both segments primarily serve their respective regions of the world. The North America segment also manufactures and markets specialty commercial water heating equipment, condensing and non-condensing boilers and water system tanks. The Rest of World segment also manufactures and markets water treatment products, primarily in Asia. | |||||||||||||||||||||||||||||
On August 22, 2011, the company sold its Electrical Products business (EPC) to Regal Beloit Corporation (RBC) for approximately $760 million in cash and approximately 2.83 million shares of RBC common stock. Due to the sale, EPC has been reported separately as a discontinued operation. See Note 2 Discontinued Operations. | |||||||||||||||||||||||||||||
Consolidation | ' | ||||||||||||||||||||||||||||
Consolidation. The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries after elimination of intercompany transactions. | |||||||||||||||||||||||||||||
Except when otherwise indicated, amounts reflected in the financial statements or the notes thereto relate to the company’s continuing operations. | |||||||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||||||
Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and notes. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||||||
Fair value of financial instruments. The carrying amounts of cash, cash equivalents, marketable securities, receivables, floating rate debt and trade payables approximated fair value as of December 31, 2013 and 2012, due to the short maturities or frequent rate resets of these instruments. The fair value of term notes with insurance companies was approximately $63.8 million as of December 31, 2013 compared with the carrying amount of $59.4 million for the same date. The fair value is estimated based on current rates offered for debt with similar maturities. | |||||||||||||||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||||||||||||||
Foreign currency translation. For all subsidiaries outside the U.S., with the exception of its Mexican operation and its Dutch non-operating companies, the company uses the local currency as the functional currency. For those operations using a functional currency other than the U.S. dollar, assets and liabilities are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at weighted-average exchange rates. The resulting translation adjustments are recorded as a separate component of stockholders’ equity. The Mexican operation and the Dutch non-operating companies use the U.S. dollar as the functional currency. Gains and losses from foreign currency transactions are included in net earnings and were not significant in 2013, 2012 or 2011. | |||||||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||||||
Cash and cash equivalents. The company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||||||||||||||||||||||||
Marketable Securities | ' | ||||||||||||||||||||||||||||
Marketable securities. The company considers all highly liquid investments with maturities greater than 90 days when purchased to be marketable securities. At December 31, 2013, the company’s marketable securities consisted of bank time deposits with original maturities ranging from 180 days to 12 months and are located at investment grade rated banks in China. | |||||||||||||||||||||||||||||
Inventory Valuation | ' | ||||||||||||||||||||||||||||
Inventory valuation. Inventories are carried at lower of cost or market. Cost is determined on the last-in, first-out (LIFO) method for a majority of the company’s domestic inventories, which comprise 62 percent and 64 percent of the company’s total inventory at December 31, 2013 and 2012, respectively. Inventories of foreign subsidiaries, the remaining domestic inventories and supplies are determined using the first-in, first-out (FIFO) method. | |||||||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||||||
Property, plant and equipment. Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method. The estimated service lives used to compute depreciation are generally 25 to 50 years for buildings, three to 20 years for equipment and three to ten years for software. Maintenance and repair costs are expensed as incurred. | |||||||||||||||||||||||||||||
Goodwill and Other Intangibles | ' | ||||||||||||||||||||||||||||
Goodwill and other intangibles. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment on an annual basis. Separable intangible assets, primarily comprised of customer relationships, that are not deemed to have an indefinite life are amortized on a straight-line basis over their estimated useful lives which range from ten to 25 years. | |||||||||||||||||||||||||||||
Impairment of Long-Lived and Amortizable Intangible Assets | ' | ||||||||||||||||||||||||||||
Impairment of long-lived and amortizable intangible assets. Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. | |||||||||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||||||||
Derivative instruments. Accounting Standards Codification (ASC) 815 Derivatives and Hedging, as amended, requires that all derivative instruments be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of the hedging relationships. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a part of a hedging relationship and, further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the company must designate the hedging instrument, based upon the exposure hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. | |||||||||||||||||||||||||||||
The company designates that all of its hedging instruments, except for its equity collar contract relating to shares of RBC common stock, are cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss, net of tax, and is reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The amount by which the cumulative change in the value of the hedge more than offsets the cumulative change in the value of the hedged item (i.e., the ineffective portion) is recorded in earnings, net of tax, in the period the ineffectiveness occurs. | |||||||||||||||||||||||||||||
The company utilizes certain derivative instruments to enhance its ability to manage currency exposure as well as raw materials price risk. The company had previously utilized a derivative instrument to manage equity investment volatility. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The company does not enter into contracts for speculative purposes. The contracts are executed with major financial institutions with no credit loss anticipated for failure of the counterparties to perform. | |||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||||||||||
The company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. The company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of business. Principal currencies for which the company utilizes foreign currency forward contracts include the Canadian dollar, Euro and Mexican peso. | |||||||||||||||||||||||||||||
Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective. | |||||||||||||||||||||||||||||
The majority of the amounts in accumulated other comprehensive loss for cash flow hedges is expected to be reclassified into earnings within one year and all of the hedges will be reclassified into earnings no later than December 2015. Contracts related to the company’s discontinued operation that were to expire after the expected closing date of the sale of EPC no longer qualified for hedge accounting; therefore, the change in valuation from the announcement of the sale of EPC to August 22, 2011 of $3.2 million was recorded in earnings from discontinued operations in the year ended December 31, 2011. | |||||||||||||||||||||||||||||
The following table summarizes, by currency, the contractual amounts of the company’s foreign currency forward contracts: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
December 31 (dollars in millions) | Buy | Sell | Buy | Sell | |||||||||||||||||||||||||
British pound | $ | — | $ | 1.4 | $ | — | $ | 2.3 | |||||||||||||||||||||
Canadian dollar | — | 72.7 | — | 36.8 | |||||||||||||||||||||||||
Euro | 9.1 | 1.7 | 23.2 | 2 | |||||||||||||||||||||||||
Mexican peso | 14.6 | — | 12.3 | — | |||||||||||||||||||||||||
Total | $ | 23.7 | $ | 75.8 | $ | 35.5 | $ | 41.1 | |||||||||||||||||||||
Commodity Futures Contracts | |||||||||||||||||||||||||||||
In addition to entering into supply arrangements in the normal course of business, the company, primarily for its discontinued operation prior to disposition, also entered into futures contracts to fix the cost of certain raw material purchases, principally copper and aluminum, with the objective of minimizing changes in cost due to market price fluctuations. The hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME. | |||||||||||||||||||||||||||||
With one of its brokers, the company is required to make cash deposits on unrealized losses on commodity derivative contracts that exceed $10.0 million. | |||||||||||||||||||||||||||||
The minimal after-tax gain of the effective portion of the contracts as of December 31, 2013 was recorded in accumulated other comprehensive loss and will be reclassified into cost of products sold in the period in which the underlying transaction is recorded in earnings. The effective portion of the contracts will be reclassified within one year. Contracts related to the company’s discontinued operation that expired after the expected closing date of the sale of EPC no longer qualified for hedge accounting; therefore, the change in valuation from the announcement of the sale to August 22, 2011 which was minimal and was recorded in earnings from discontinued operations in the year ended December 31, 2011. Commodity hedges outstanding at December 31, 2013 total approximately 0.1 million pounds of copper. | |||||||||||||||||||||||||||||
Equity Collar Contract | |||||||||||||||||||||||||||||
As discussed in Note 2, on August 22, 2011, the company sold EPC to RBC and received approximately 2.83 million shares of RBC common stock. The RBC share price appreciated in 2011 during which the company entered into an equity collar contract for 50 percent of the RBC shares to protect a portion of that appreciation. The put strike price of the equity collar was $63.29 and the call strike price of the collar was $77.32. The RBC share price on December 31, 2011 was $50.97. The collar did not qualify for hedge accounting and therefore was adjusted to fair value on a quarterly basis through earnings from continuing operations. The mark to market accounting for the RBC shares and hedge continued until the equity collar contract expired in March 2012 with no value. | |||||||||||||||||||||||||||||
The impact of derivative contracts on the company’s financial statements is as follows: | |||||||||||||||||||||||||||||
Fair value of derivative instruments designated as hedging instruments under ASC 815 in continuing operations: | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
December 31 (dollars in millions) | Balance Sheet Location | 2013 | 2012 | ||||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 1.9 | $ | 1.7 | ||||||||||||||||||||||||
Accrued liabilities | (0.2 | ) | (0.5 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | 1.2 | |||||||||||||||||||||||||
The effect of derivative instruments on the Statement of Earnings for continuing operations. | |||||||||||||||||||||||||||||
Year ended December 31 (dollars in millions) | |||||||||||||||||||||||||||||
Derivatives in | Amount of gain | Location of gain | Amount of gain | Location of gain recognized in | Amount of gain | ||||||||||||||||||||||||
ASC 815 cash | (loss) recognized | (loss) reclassified | (loss) reclassified | earnings on derivative | recognized in | ||||||||||||||||||||||||
flow hedging | in other | from Accumulated | from Accumulated | (ineffective portion) | earnings on a | ||||||||||||||||||||||||
relationships | comprehensive | Other | Other | derivative | |||||||||||||||||||||||||
loss on derivative | Comprehensive | Comprehensive | (ineffective | ||||||||||||||||||||||||||
(effective portion) | Loss into earnings | Loss into earnings | portion) | ||||||||||||||||||||||||||
(effective portion) | (effective portion) | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Foreign currency contracts | $ | 3.1 | $ | 0.7 | Cost of products sold | $ | 2.6 | $ | (0.7 | ) | N/A | $ | — | $ | — | ||||||||||||||
Commodities contracts | — | (0.1 | ) | Cost of products sold | (0.1 | ) | (0.1 | ) | Cost of products sold | — | — | ||||||||||||||||||
$ | 3.1 | $ | 0.6 | $ | 2.5 | $ | (0.8 | ) | $ | — | $ | — | |||||||||||||||||
Derivatives not designated as a hedging | Location of loss recognized in earnings | Amount of loss recognized in | |||||||||||||||||||||||||||
instrument under ASC 815 | from continuing operations on | earnings from continuing | |||||||||||||||||||||||||||
derivative | operations on derivative | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Equity collar contract | Other expense – net | $ | — | $ | 17.9 | ||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||
Fair Value Measurements. ASC 820 Fair Value Measurements, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||||||||||||||||
Assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||||||||||||||||||||||||||
Continuing assets measured at fair value on a recurring basis are as follows (dollars in millions): | |||||||||||||||||||||||||||||
Fair Value Measurement Using | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | $ | 107 | $ | 197.2 | |||||||||||||||||||||||||
There were no changes in the valuation techniques used to measure fair values on a recurring basis. | |||||||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||||||
Revenue recognition. The company recognizes revenue upon transfer of title, which occurs upon shipment of the product to the customer except for certain export sales where transfer of title occurs when the product reaches the customer destination. | |||||||||||||||||||||||||||||
Contracts and customer purchase orders are used to determine the existence of a sales arrangement. Shipping documents are used to verify shipment. The company assesses whether the selling price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The company assesses collectability based on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history and does not require collateral on sales in most cases. The allowance for doubtful accounts was $2.8 million and $4.2 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Reserves for customer returns for defective product are based on historical experience with similar types of sales. Accruals for rebates and incentives are based on pricing agreements and are tied to sales volume. Changes in such accruals may be required if future returns differ from historical experience or if actual sales volume differs from estimated sales volume. Rebates and incentives are recognized as a reduction of sales. | |||||||||||||||||||||||||||||
Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold. | |||||||||||||||||||||||||||||
Advertising | ' | ||||||||||||||||||||||||||||
Advertising. The majority of advertising costs are charged to operations as incurred and amounted to $78.0 million, $69.2 million and $58.9 million during 2013, 2012 and 2011, respectively. Included in total advertising costs are expenses associated with store displays for A. O. Smith branded products in China that are amortized over 12 to 24 months which totaled $17.9 million, $15.8 million and $13.1 million during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Research and Development | ' | ||||||||||||||||||||||||||||
Research and development. Research and development costs are charged to operations as incurred and amounted to $57.8 million, $51.7 million and $42.7 million during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Product Warranties | ' | ||||||||||||||||||||||||||||
Product warranties. The company’s products carry warranties that generally range from one to ten years and are based on terms that are generally accepted in the market. The company records a liability for the expected cost of warranty-related claims at the time of sale. The allocation of the warranty liability between current and long-term is based on expected warranty claims to be paid in the next year as determined by historical product failure rates. | |||||||||||||||||||||||||||||
The following table presents the company’s product warranty liability activity in 2013 and 2012: | |||||||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 129.6 | $ | 131.8 | |||||||||||||||||||||||||
Expense | 68 | 54.1 | |||||||||||||||||||||||||||
Claims settled | (61.0 | ) | (56.3 | ) | |||||||||||||||||||||||||
Balance at end of year | $ | 136.6 | $ | 129.6 | |||||||||||||||||||||||||
Environmental Costs | ' | ||||||||||||||||||||||||||||
Environmental costs. The company accrues for costs associated with environmental obligations when such costs are probable and reasonably estimable. Costs of estimated future expenditures are not discounted to their present value. Recoveries of environmental costs from other parties are recorded as assets when their receipt is considered probable. The accruals are adjusted as facts and circumstances change. | |||||||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||||||
Stock-based compensation. The company follows ASC 718 Compensation - Stock Compensation. Compensation cost is recognized using the straight-line method over the vesting period of the award. ASC 718 also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow, rather than as an operating cash flow as required under prior literature. Excess tax deductions of $4.8 million, $8.8 million and $4.3 million were recognized as cash flows provided by financing activities in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Earnings Per Share of Common Stock | ' | ||||||||||||||||||||||||||||
Earnings per share of common stock. The company is not required to use the two-class method of calculating earnings per share since its Class A Common Stock and Common Stock have equal dividend rights. The numerator for the calculation of basic and diluted earnings per share is net earnings. The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Denominator for basic earnings per share - weighted-average shares outstanding | 92,118,153 | 92,395,216 | 92,238,064 | ||||||||||||||||||||||||||
Effect of dilutive stock options, restricted stock and share units | 669,517 | 712,906 | 911,172 | ||||||||||||||||||||||||||
Denominator for diluted earnings per share | 92,787,670 | 93,108,122 | 93,149,236 | ||||||||||||||||||||||||||
On April 15, 2013, the company’s stockholders approved a proposal to increase the company’s authorized shares of Common Stock and the company’s board of directors declared a two-for-one stock split of the company’s Class A Common Stock and Common Stock (including treasury shares) in the form of a 100 percent stock dividend to stockholders of record on April 30, 2013 and payable on May 15, 2013. All references in the financial statements and footnotes to the number of shares outstanding, price per share, per share amounts and stock based compensation data have been recast to reflect the split for all periods presented. | |||||||||||||||||||||||||||||
Reclassifications | ' | ||||||||||||||||||||||||||||
Reclassifications. Certain amounts from prior years have been reclassified to conform with current year presentation. | |||||||||||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||||||
In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 allows an entity to first assess qualitative factors in determining whether events and circumstances indicate that it is more-likely-than not that an indefinite-lived intangible asset is impaired. If an entity determines that it is not more-likely-than not that the indefinite-lived intangible asset is impaired, then the entity is not required to perform a quantitative impairment test. ASU 2012-02 was effective for the year ending December 31, 2013. The adoption of this ASU did not have an impact on the company’s consolidated financial condition, results of operations or cash flows. | |||||||||||||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 sets requirements for presentation for significant items reclassified out of accumulated other comprehensive income to net income in reporting periods presented. ASU 2013-02 was effective prospectively beginning with the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on the company’s financial condition or results of operations but required additional disclosure in the notes to the company’s financial statements. The company complied with the disclosure requirements of ASU 2013-02 for the year ended December 31, 2013. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Schedule of Effect of Derivative Instruments on Statement of Earnings | ' | ||||||||||||||||||||||||||||
The effect of derivative instruments on the Statement of Earnings for continuing operations. | |||||||||||||||||||||||||||||
Year ended December 31 (dollars in millions) | |||||||||||||||||||||||||||||
Derivatives in | Amount of gain | Location of | Amount of gain | Location of | Amount of gain | ||||||||||||||||||||||||
ASC 815 cash | (loss) recognized | gain (loss) | (loss) reclassified | gain recognized | recognized in | ||||||||||||||||||||||||
flow hedging | in other | reclassified | from Accumulated | in earnings on | earnings on a | ||||||||||||||||||||||||
relationships | comprehensive | from | Other | derivative | derivative | ||||||||||||||||||||||||
loss on derivative | Accumulated | Comprehensive | (ineffective | (ineffective | |||||||||||||||||||||||||
(effective portion) | Other | Loss into earnings | portion) | portion) | |||||||||||||||||||||||||
Comprehensive | (effective portion) | ||||||||||||||||||||||||||||
Loss into | |||||||||||||||||||||||||||||
earnings | |||||||||||||||||||||||||||||
(effective | |||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Foreign currency contracts | $ | 3.1 | $ | 0.7 | Cost of | $ | 2.6 | $ | (0.7 | ) | N/A | $ | — | $ | — | ||||||||||||||
products sold | |||||||||||||||||||||||||||||
Commodities contracts | — | (0.1 | ) | Cost of | (0.1 | ) | (0.1 | ) | Cost of | — | — | ||||||||||||||||||
products sold | products sold | ||||||||||||||||||||||||||||
$ | 3.1 | $ | 0.6 | $ | 2.5 | $ | (0.8 | ) | $ | — | $ | — | |||||||||||||||||
Derivatives not designated as a hedging | Location of loss recognized in earnings | Amount of loss recognized in | |||||||||||||||||||||||||||
instrument under ASC 815 | from continuing operations on | earnings from continuing | |||||||||||||||||||||||||||
derivative | operations on derivative | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Equity collar contract | Other expense – net | $ | — | $ | 17.9 | ||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||||||
Continuing assets measured at fair value on a recurring basis are as follows (dollars in millions): | |||||||||||||||||||||||||||||
Fair Value Measurement Using | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | $ | 107 | $ | 197.2 | |||||||||||||||||||||||||
Schedule of Product Warranty Liability Activity | ' | ||||||||||||||||||||||||||||
The following table presents the company’s product warranty liability activity in 2013 and 2012: | |||||||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 129.6 | $ | 131.8 | |||||||||||||||||||||||||
Expense | 68 | 54.1 | |||||||||||||||||||||||||||
Claims settled | (61.0 | ) | (56.3 | ) | |||||||||||||||||||||||||
Balance at end of year | $ | 136.6 | $ | 129.6 | |||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Weighted Average Shares Used in EPS Calculations | ' | ||||||||||||||||||||||||||||
The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Denominator for basic earnings per share - weighted-average shares outstanding | 92,118,153 | 92,395,216 | 92,238,064 | ||||||||||||||||||||||||||
Effect of dilutive stock options, restricted stock and share units | 669,517 | 712,906 | 911,172 | ||||||||||||||||||||||||||
Denominator for diluted earnings per share | 92,787,670 | 93,108,122 | 93,149,236 | ||||||||||||||||||||||||||
Designated as Hedging Instrument | ' | ||||||||||||||||||||||||||||
Schedule of Summary by Currency of Foreign Currency Forward Contracts | ' | ||||||||||||||||||||||||||||
The following table summarizes, by currency, the contractual amounts of the company’s foreign currency forward contracts: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
December 31 (dollars in millions) | Buy | Sell | Buy | Sell | |||||||||||||||||||||||||
British pound | $ | — | $ | 1.4 | $ | — | $ | 2.3 | |||||||||||||||||||||
Canadian dollar | — | 72.7 | — | 36.8 | |||||||||||||||||||||||||
Euro | 9.1 | 1.7 | 23.2 | 2 | |||||||||||||||||||||||||
Mexican peso | 14.6 | — | 12.3 | — | |||||||||||||||||||||||||
Total | $ | 23.7 | $ | 75.8 | $ | 35.5 | $ | 41.1 | |||||||||||||||||||||
Schedule of Impact of Cash Flow Hedges on Company's Financial Statements | ' | ||||||||||||||||||||||||||||
The impact of derivative contracts on the company’s financial statements is as follows: | |||||||||||||||||||||||||||||
Fair value of derivative instruments designated as hedging instruments under ASC 815 in continuing operations: | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
December 31 (dollars in millions) | Balance Sheet Location | 2013 | 2012 | ||||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 1.9 | $ | 1.7 | ||||||||||||||||||||||||
Accrued liabilities | (0.2 | ) | (0.5 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | 1.2 | |||||||||||||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Disposal Groups Including Discontinued Operations Income Statement | ' | ||||||||||||
The condensed statement of earnings of discontinued EPC operations is: | |||||||||||||
Year ended December 31 (dollars in millions) | |||||||||||||
2011 | |||||||||||||
Net sales | $ | 531.8 | |||||||||||
Cost of products sold | 415.6 | ||||||||||||
Gross profit | 116.2 | ||||||||||||
Selling, general and administrative expenses | 61.5 | ||||||||||||
Interest expense | 2.2 | ||||||||||||
Other income - net | (6.0 | ) | |||||||||||
58.5 | |||||||||||||
Provision for income taxes | 15.5 | ||||||||||||
Net earnings | $ | 43 | |||||||||||
Schedule of Disposal Groups Including Discontinued Operations Cash Flows (used in) Statement | ' | ||||||||||||
The cash flows (used in) provided by discontinued EPC operations is as follows: | |||||||||||||
Years ended December 31 (dollars in millions) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating Activities | |||||||||||||
(Loss) earnings | $ | — | $ | (3.9 | ) | $ | 43 | ||||||
Adjustments to reconcile earnings to net cash provided by discontinued operating activities: | |||||||||||||
Depreciation and amortization | — | — | 16.5 | ||||||||||
Gain on sale of assets | — | — | (4.8 | ) | |||||||||
Net changes in operating assets and liabilities | |||||||||||||
Current assets and liabilities | (1.0 | ) | (22.6 | ) | (56.2 | ) | |||||||
Noncurrent assets and liabilities | (0.5 | ) | (0.9 | ) | 0.9 | ||||||||
Other | — | — | (1.7 | ) | |||||||||
Cash Used in Discontinued Operating Activities | (1.5 | ) | (27.4 | ) | (2.3 | ) | |||||||
Investing Activities | |||||||||||||
Capital expenditures | — | — | (10.5 | ) | |||||||||
Proceeds on sale of assets | — | — | 6.1 | ||||||||||
Proceeds from sale of operations | — | — | 752.5 | ||||||||||
Payments associated with sale | — | — | (147.9 | ) | |||||||||
Cash Provided by Discontinued Investing Activities | — | — | 600.2 | ||||||||||
Cash (Used in) Provided by Discontinued Operations | $ | (1.5 | ) | $ | (27.4 | ) | $ | 597.9 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of Preliminary Estimate of Fair Value of Assets Acquired and Liabilities Assumed Due to Acquisition | ' | ||||
The following table summarizes the allocation of fair value of the assets acquired and liabilities assumed at the date of acquisition. Of the $258.3 million of acquired intangible assets, $103.5 million was assigned to tradenames that are not subject to amortization and $152.5 million was assigned to customer lists which are being amortized over 19 years, and the remaining $2.3 million was assigned to non-compete agreements and patents which are being amortized over ten years. | |||||
August 26, 2011 (dollars in millions) | |||||
Current assets, net of cash acquired | $ | 54 | |||
Property, plant and equipment | 41.9 | ||||
Intangible assets | 258.3 | ||||
Other assets | 0.1 | ||||
Goodwill | 111.4 | ||||
Total assets acquired | 465.7 | ||||
Current liabilities | 24.3 | ||||
Long-term liabilities | 3.5 | ||||
Total liabilities assumed | 27.8 | ||||
Net assets acquired | $ | 437.9 | |||
Restructuring_Impairment_and_S1
Restructuring, Impairment and Settlement Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Analysis of Company's Restructuring, Impairment and Settlement Reserves | ' | ||||||||||||||||||||||||
The following table presents an analysis of the company’s restructuring, impairment and settlement reserves as of and for the years ended December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
Inventory | Severance | Asset | Equipment | Settlement | Total | ||||||||||||||||||||
Obsolescence | Costs | Impairment | Relocation | Income | |||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Income recognized | — | — | — | — | (3.9 | ) | (3.9 | ) | |||||||||||||||||
Cash receipts | — | — | — | — | 3.9 | 3.9 | |||||||||||||||||||
Balance at December 31, 2012 | — | — | — | — | — | — | |||||||||||||||||||
Expense (income) recognized | 2.4 | 7.5 | 9.2 | 2.9 | (11.0 | ) | 11 | ||||||||||||||||||
Asset write-down | (0.7 | ) | — | (9.2 | ) | — | — | (9.9 | ) | ||||||||||||||||
Cash (payments) receipts | — | (6.0 | ) | — | (2.5 | ) | 11 | 2.5 | |||||||||||||||||
Balance at December 31, 2013 | $ | 1.7 | $ | 1.5 | $ | — | $ | 0.4 | $ | — | $ | 3.6 | |||||||||||||
Statement_of_Cash_Flows_Tables
Statement of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Supplemental Cash Flow Information | ' | ||||||||||||
Supplemental cash flow information is as follows: | |||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||
Net change in current assets and liabilities, net of acquisitions: | |||||||||||||
Receivables | $ | (32.3 | ) | $ | (57.0 | ) | $ | (28.1 | ) | ||||
Inventories | (28.5 | ) | 5 | 4.7 | |||||||||
Other current assets | (7.5 | ) | (0.8 | ) | (4.5 | ) | |||||||
Trade payables | 58 | 26.4 | 27.4 | ||||||||||
Accrued liabilities, including payroll and benefits | 29.4 | 3.1 | (1.7 | ) | |||||||||
Income taxes payable | 1.4 | (13.3 | ) | 2.7 | |||||||||
$ | 20.5 | $ | (36.6 | ) | $ | 0.5 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Inventories | ' | ||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Finished products | $ | 88.8 | $ | 74.4 | |||||
Work in process | 12.3 | 12 | |||||||
Raw materials | 113.6 | 100 | |||||||
Inventories, at FIFO cost | 214.7 | 186.4 | |||||||
LIFO reserve | 21.3 | 23 | |||||||
$ | 193.4 | $ | 163.4 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Property Plant and Equipment | ' | ||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Land | $ | 11.3 | $ | 11.6 | |||||
Buildings | 212.5 | 194.3 | |||||||
Equipment | 497.8 | 455.8 | |||||||
Software | 37.2 | 18.9 | |||||||
758.8 | 680.6 | ||||||||
Less accumulated depreciation and amortization | 367.5 | 334.9 | |||||||
$ | 391.3 | $ | 345.7 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill during the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||||||||||
(dollars in millions) | North America | Rest of World | Total | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 374.9 | $ | 58.9 | $ | 433.8 | |||||||||||||||||||
Currency translation adjustment | 1.5 | 0.1 | 1.6 | ||||||||||||||||||||||
Balance at December 31, 2012 | 376.4 | 59 | 435.4 | ||||||||||||||||||||||
Acquisition of business (see Note 3) | — | 1.9 | 1.9 | ||||||||||||||||||||||
Currency translation adjustment | (3.5 | ) | (0.3 | ) | (3.8 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | 372.9 | $ | 60.6 | $ | 433.5 | |||||||||||||||||||
Schedule of Carrying Amount of Other Intangible Assets | ' | ||||||||||||||||||||||||
The carrying amount of other intangible assets consisted of the following: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
December 31 (dollars in millions) | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||
Patents | $ | 6.8 | $ | (4.7 | ) | $ | 2.1 | $ | 6.8 | $ | (4.4 | ) | $ | 2.4 | |||||||||||
Customer lists | 232.7 | (55.2 | ) | 177.5 | 231 | (41.2 | ) | 189.8 | |||||||||||||||||
Total amortizable intangible assets | 239.5 | (59.9 | ) | 179.6 | 237.8 | (45.6 | ) | 192.2 | |||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Trade names | 145.2 | — | 145.2 | 146.5 | — | 146.5 | |||||||||||||||||||
Total intangible assets | $ | 384.7 | $ | (59.9 | ) | $ | 324.8 | $ | 384.3 | $ | (45.6 | ) | $ | 338.7 | |||||||||||
Debt_and_Lease_Commitments_Tab
Debt and Lease Commitments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Debt and Lease Commitments | ' | ||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||
Bank credit lines, average year-end interest rates of 2.4% for 2013 and 3.8% for 2012 | $ | 3.6 | $ | 9.4 | |||||
Revolving credit agreement borrowings, average year-end interest rates of 1.3% for 2013 and 2012 | 80 | 115 | |||||||
Commercial paper, average year-end interest rates of 1.1% for 2013 and 1.2% for 2012 | 48.9 | 39.3 | |||||||
Term notes with insurance companies, expiring through 2018, average year-end interest rates of 6.0% for 2013 and 2012 | 31.2 | 49.8 | |||||||
Canadian term notes with insurance companies, expiring through 2018, average year-end interest rates of 5.3% for 2013 and 2012 | 28.2 | 30.2 | |||||||
191.9 | 243.7 | ||||||||
Less long-term debt due within one year | 14.2 | 18.6 | |||||||
Long-term debt | $ | 177.7 | $ | 225.1 | |||||
Schedule of Maturities of Long Term Debt | ' | ||||||||
Scheduled maturities of long-term debt within each of the five years subsequent to December 31, 2013 are as follows: | |||||||||
Years ending December 31 (dollars in millions) | Amount | ||||||||
2014 | $ | 14.2 | |||||||
2015 | 14.2 | ||||||||
2016 | 14.2 | ||||||||
2017 | 140.9 | ||||||||
2018 | 8.4 | ||||||||
Schedule of Future Minimum Payments Under Non Cancelable Operating Leases | ' | ||||||||
Future minimum payments under non-cancelable operating leases relating mostly to office, manufacturing and warehouse facilities total $27.9 million and are due as follows: | |||||||||
Years ending December 31 (dollars in millions) | Amount | ||||||||
2014 | $ | 8.1 | |||||||
2015 | 5.2 | ||||||||
2016 | 4.3 | ||||||||
2017 | 3.2 | ||||||||
2018 | 2 | ||||||||
Thereafter | 5.1 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated other comprehensive loss is as follows: | |||||||||||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||
Cumulative foreign currency translation adjustments | $ | 19.9 | $ | 19.5 | |||||||||||||
Unrealized net gain on cash flow derivative instruments less related income tax provision of $0.6 in 2013 and $0.5 in 2012 | 1 | 0.7 | |||||||||||||||
Pension liability less related income tax benefit of $179.2 in 2013 and $217.9 in 2012 | (280.0 | ) | (340.7 | ) | |||||||||||||
$ | (259.1 | ) | $ | (320.5 | ) | ||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||||||
Changes to accumulated other comprehensive loss by component for the year ended December 31, 2013 are as follows: | |||||||||||||||||
(dollars in millions) | |||||||||||||||||
Cumulative | Unrealized | Pension | Total | ||||||||||||||
Foreign | Net Gain | Liability | |||||||||||||||
Currency | (Loss) on | ||||||||||||||||
Translation | Cash Flow | ||||||||||||||||
Derivatives | |||||||||||||||||
Balance at December 31, 2012 | $ | 19.5 | $ | 0.7 | $ | (340.7 | ) | $ | (320.5 | ) | |||||||
Other comprehensive earnings before reclassifications | 0.4 | 1.8 | 35.5 | 37.7 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss: (1) | — | (1.5 | ) | 25.2 | 23.7 | ||||||||||||
Balance at December 31, 2013 | $ | 19.9 | $ | 1 | $ | (280.0 | ) | $ | (259.1 | ) | |||||||
(1) Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||||
Realized gains on derivatives reclassified to cost of products sold | (2.5 | ) | |||||||||||||||
Tax provision | 1 | ||||||||||||||||
Reclassification net of tax | $ | (1.5 | ) | ||||||||||||||
Amortization of pension items: | |||||||||||||||||
Actuarial losses | $ | 41.7 | (2) | ||||||||||||||
Prior year service cost | (0.9 | )(2) | |||||||||||||||
40.8 | |||||||||||||||||
Tax benefit | (15.6 | ) | |||||||||||||||
Reclassification net of tax | $ | 25.2 | |||||||||||||||
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 12 - Pensions for additional details. |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Changes in Option Shares | ' | ||||||||||||||||||||
Changes in option shares, all of which are Common Stock, were as follows: | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Weighted-Avg. | Aggregate | ||||||||||||||||||||
Per Share | Years Ended December 31 | Intrinsic Value | |||||||||||||||||||
Exercise Price | 2013 | 2012 | 2011 | ||||||||||||||||||
Outstanding at beginning of year | $ | 16.72 | 1,530,734 | 2,843,734 | 3,246,202 | ||||||||||||||||
Granted | |||||||||||||||||||||
2013—$34.96 to $52.93 per share | 361,700 | ||||||||||||||||||||
2012—$22.08 to $22.99 per share | 382,000 | ||||||||||||||||||||
2011—$21.56 to $22.06 per share | 356,400 | ||||||||||||||||||||
Exercised | |||||||||||||||||||||
2013—$8.20 to $22.99 per share | (446,746 | ) | $ | 6 | |||||||||||||||||
2012—$8.21 to $21.56 per share | (1,686,834 | ) | 18.4 | ||||||||||||||||||
2011—$7.99 to $13.97 per share | (728,162 | ) | 7.7 | ||||||||||||||||||
Forfeited | |||||||||||||||||||||
2013—$22.99 to $34.92 per share | (5,065 | ) | |||||||||||||||||||
2012—$13.97 to $22.99 per share | (8,166 | ) | |||||||||||||||||||
2011—$9.50 to $21.56 per share | (30,706 | ) | |||||||||||||||||||
Outstanding at end of year | |||||||||||||||||||||
(2013—$8.20 to $38.94 per share) | 22.37 | 1,440,623 | 1,530,734 | 2,843,734 | |||||||||||||||||
Exercisable at end of year | 16.04 | 740,919 | 819,312 | 1,979,866 | |||||||||||||||||
Schedule of Weighted Average Information by Range of Exercise Prices for Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||
The following table summarizes weighted-average information by range of exercise prices for stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
Weighted- | |||||||||||||||||||||
Options | Weighted- | Options | Weighted- | Average | |||||||||||||||||
Outstanding at | Average | Exercisable at | Average | Remaining | |||||||||||||||||
Range of | December 31, | Exercise | December 31, | Exercise | Contractual | ||||||||||||||||
Exercise Prices | 2013 | Price | 2013 | Price | Life | ||||||||||||||||
$8.20 to $11.88 | 275,400 | $ | 10.12 | 275,400 | $ | 10.12 | 6 years | ||||||||||||||
$12.92 to $13.97 | 144,700 | 13.86 | 144,700 | 13.86 | 7 years | ||||||||||||||||
$21.56 to $38.94 | 1,020,523 | 26.88 | 320,819 | 22.12 | 9 years | ||||||||||||||||
1,440,623 | 740,919 | ||||||||||||||||||||
Schedule of Weighted Average Fair Value per Option at Date of Grant | ' | ||||||||||||||||||||
The weighted-average fair value per option at the date of grant during 2013, 2012 and 2011, using the Black-Scholes option-pricing model, was $12.57, $8.26 and $8.26, respectively. Assumptions were as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected life (years) | 6.1 | 6.2 | 6.4 | ||||||||||||||||||
Risk-free interest rate | 2 | % | 2 | % | 3.6 | % | |||||||||||||||
Dividend yield | 1.1 | % | 1.4 | % | 1.3 | % | |||||||||||||||
Expected volatility | 38.4 | % | 39.4 | % | 38.4 | % | |||||||||||||||
Schedule of Share Unit Activity Under Plan | ' | ||||||||||||||||||||
A summary of share unit activity under the plan is as follows: | |||||||||||||||||||||
Number of Units | Weighted-Average | ||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||
Outstanding at January 1, 2013 | 469,012 | $ | 19.37 | ||||||||||||||||||
Granted | 144,696 | 34.87 | |||||||||||||||||||
Vested | (157,732 | ) | 13.97 | ||||||||||||||||||
Forfeited/cancelled | (9,940 | ) | 27.33 | ||||||||||||||||||
Outstanding at December 31, 2013 | 446,036 | 26.14 | |||||||||||||||||||
Pension_and_Other_Postretireme1
Pension and Other Post-retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Changes in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension and Post Retirement Benefit Plans | ' | ||||||||||||||||||||||||
The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs. | |||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated Benefit Obligation (ABO) at December 31 | $ | 929.1 | $ | 978.7 | N/A | N/A | |||||||||||||||||||
Change in projected benefit obligations (PBO) | |||||||||||||||||||||||||
PBO at beginning of year | $ | (987.7 | ) | $ | (906.5 | ) | $ | (11.4 | ) | $ | (12.7 | ) | |||||||||||||
Service cost | (9.0 | ) | (7.8 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||
Interest cost | (39.5 | ) | (43.6 | ) | (0.5 | ) | (0.5 | ) | |||||||||||||||||
Participant contributions | — | — | (0.3 | ) | (0.3 | ) | |||||||||||||||||||
Actuarial gain (loss) including assumption changes | 39.6 | (90.3 | ) | (0.3 | ) | 1.1 | |||||||||||||||||||
Benefits paid | 59.6 | 60.5 | 1.7 | 1.1 | |||||||||||||||||||||
PBO at end of year | $ | (937.0 | ) | $ | (987.7 | ) | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||||
Plan assets at beginning of year | $ | 800.5 | $ | 768.6 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 80.8 | 91.2 | — | — | |||||||||||||||||||||
Contribution by the company | 0.6 | 1.2 | 1.4 | 0.8 | |||||||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Benefits paid | (59.6 | ) | (60.5 | ) | (1.7 | ) | (1.1 | ) | |||||||||||||||||
Plan assets at end of year | $ | 822.3 | $ | 800.5 | $ | — | $ | — | |||||||||||||||||
Funded status | $ | (114.7 | ) | $ | (187.2 | ) | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Amount recognized in the balance sheet | |||||||||||||||||||||||||
Current liabilities | $ | (7.1 | ) | $ | — | $ | (0.9 | ) | $ | (0.8 | ) | ||||||||||||||
Non-current liabilities | (107.6 | ) | (187.2 | ) | (10.0 | ) | (10.6 | ) | |||||||||||||||||
Net pension liability at end of year | $ | (114.7 | )* | $ | (187.2 | )* | $ | (10.9 | ) | $ | (11.4 | ) | |||||||||||||
Amounts recognized in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss Before Tax | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 467.1 | $ | 567.9 | $ | (2.9 | ) | $ | (3.5 | ) | |||||||||||||||
Prior service cost | (7.2 | ) | (8.1 | ) | — | — | |||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 459.9 | $ | 559.8 | $ | (2.9 | ) | $ | (3.5 | ) | |||||||||||||||
* | In addition, the company has recorded a liability for a foreign pension plan of $3.1 million and $2.9 million at December 31, 2013 and 2012, respectively, and an accumulated other comprehensive loss of $2.2 million and $2.3 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 9 | $ | 7.8 | $ | 9.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||||||
Interest cost | 39.5 | 43.6 | 44.2 | 0.5 | 0.5 | 0.7 | |||||||||||||||||||
Expected return on plan assets | (61.7 | ) | (68.9 | ) | (70.6 | ) | — | — | — | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||||
Net actuarial loss | 42 | 32.1 | 24.4 | (0.3 | ) | (0.4 | ) | (0.4 | ) | ||||||||||||||||
Prior service cost | (0.9 | ) | (0.8 | ) | (0.9 | ) | — | — | — | ||||||||||||||||
Curtailment and other one-time charges | — | — | (1.3 | ) | — | — | (2.1 | ) | |||||||||||||||||
Defined-benefit plan cost | 27.9 | 13.8 | 4.9 | $ | 0.3 | $ | 0.2 | $ | (1.6 | ) | |||||||||||||||
Various U.S. defined contribution plans cost | 5.4 | 5 | 5.6 | ||||||||||||||||||||||
$ | 33.3 | $ | 18.8 | $ | 10.5 | * | |||||||||||||||||||
Other Changes in Plan Assets and Projected Benefit Obligation | |||||||||||||||||||||||||
Recognized in Other Comprehensive Loss | |||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (58.7 | ) | $ | 68 | $ | 109.3 | $ | 0.3 | $ | (1.1 | ) | $ | 0.2 | |||||||||||
Amortization of net actuarial (loss) gain | (42.0 | ) | (32.1 | ) | (24.4 | ) | 0.3 | 0.4 | 0.4 | ||||||||||||||||
Prior service cost | — | — | 2.8 | ||||||||||||||||||||||
Amortization of prior service cost | 0.9 | 0.8 | 0.9 | — | — | (0.1 | ) | ||||||||||||||||||
Total recognized in other comprehensive loss | (99.8 | ) | 36.7 | 88.6 | 0.6 | (0.7 | ) | 0.5 | |||||||||||||||||
Total Recognized in Net Periodic (Benefit) Cost and Other Comprehensive Loss | $ | (71.9 | ) | $ | 50.5 | $ | 93.5 | $ | 0.9 | $ | (0.5 | ) | $ | (1.1 | ) | ||||||||||
* | Includes $1.6 million of defined benefit plan expense and $0.9 million of defined contribution plans expense that were included in earnings from discontinued operations for 2011. | ||||||||||||||||||||||||
Schedule of Actuarial Assumptions Used To Determine Benefit Obligations | ' | ||||||||||||||||||||||||
Actuarial assumptions used to determine benefit obligations at December 31 are as follows: | |||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.85 | % | 4.05 | % | 4.7 | % | 4.05 | % | |||||||||||||||||
Average salary increases | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Schedule of Actuarial Assumptions Used To Determine Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows: | |||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.9 | % | 5.35 | % | 4.05 | % | 4.9 | % | 5.35 | % | |||||||||||||
Expected long-term return on plan assets | 8 | % | 8.5 | % | 8.75 | % | n/a | n/a | n/a | ||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||
Schedule of Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
Assumed health care cost trend rates as of December 31 are as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 10 | % | 10 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2017 | |||||||||||||||||||||||
Schedule of Weighted Asset Allocations by Asset Category | ' | ||||||||||||||||||||||||
The company’s pension plan weighted asset allocations as of December 31 by asset category are as follows: | |||||||||||||||||||||||||
Asset Category | 2013 | 2012 | |||||||||||||||||||||||
Equity securities | 53 | % | 62 | % | |||||||||||||||||||||
Debt securities | 34 | 33 | |||||||||||||||||||||||
Private equity | 5 | 4 | |||||||||||||||||||||||
Real estate | 7 | — | |||||||||||||||||||||||
Other | 1 | 1 | |||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
Schedule of Fair Value Measurement of Plan Assets | ' | ||||||||||||||||||||||||
The following tables present the fair value measurement of the company’s plan assets as of December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices in | Significant Other | Significant Non- | |||||||||||||||||||||
Active Markets for | Observable Inputs | observable Inputs | |||||||||||||||||||||||
Identical Contracts | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Short-term investments | $ | 15.4 | $ | 1.4 | $ | — | $ | 14 | |||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
Common stocks | 272.9 | 272.9 | — | — | |||||||||||||||||||||
Commingled equity funds | 147.5 | — | 147.5 | — | |||||||||||||||||||||
Fixed Income Securities | |||||||||||||||||||||||||
U.S. Treasury securities | 136.2 | 136.2 | — | — | |||||||||||||||||||||
Other fixed income securities | 75.3 | — | 75 | 0.3 | |||||||||||||||||||||
Commingled fixed income funds | 71.8 | — | 71.8 | — | |||||||||||||||||||||
Other types of investments | |||||||||||||||||||||||||
Real estate funds | 57.2 | — | — | 57.2 | |||||||||||||||||||||
Private equity | 37.7 | — | — | 37.7 | |||||||||||||||||||||
Total fair value of plan asset investments | $ | 814 | $ | 410.5 | $ | 294.3 | $ | 109.2 | |||||||||||||||||
Non-investment plan assets | 8.3 | ||||||||||||||||||||||||
Total plan assets | $ | 822.3 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices in | Significant Other | Significant Non- | |||||||||||||||||||||
Active Markets for | Observable Inputs | observable Inputs | |||||||||||||||||||||||
Identical Contracts | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Short-term investments | $ | 23.3 | $ | — | $ | — | $ | 23.3 | |||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
Common stocks | 300.2 | 300.2 | — | — | |||||||||||||||||||||
Commingled equity funds | 178.3 | — | 178.3 | — | |||||||||||||||||||||
Fixed Income Securities | |||||||||||||||||||||||||
U.S. Treasury securities | 90.1 | 90.1 | — | — | |||||||||||||||||||||
Government agency securities | 3.2 | — | 3.2 | — | |||||||||||||||||||||
Other fixed income securities | 49.6 | — | 49.3 | 0.3 | |||||||||||||||||||||
Commingled fixed income funds | 120.6 | — | 120.6 | — | |||||||||||||||||||||
Other types of investments | |||||||||||||||||||||||||
Private equity | 34.4 | — | — | 34.4 | |||||||||||||||||||||
Total fair value of plan asset investments | $ | 799.7 | $ | 390.3 | $ | 351.4 | $ | 58 | |||||||||||||||||
Non-investment plan assets | 0.8 | ||||||||||||||||||||||||
Total plan assets | $ | 800.5 | |||||||||||||||||||||||
Schedule of Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs | ' | ||||||||||||||||||||||||
The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||||
Short Term | Other Fixed | Real | Private | Total | |||||||||||||||||||||
Investments | Income | Estate | Equity | ||||||||||||||||||||||
Securities | Funds | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 39.7 | $ | 0.2 | $ | — | $ | 34.7 | $ | 74.6 | |||||||||||||||
Actual return (loss) on plan assets: | — | ||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | 0.1 | — | 0.3 | 0.4 | ||||||||||||||||||||
Relating to assets sold during the period | — | — | — | 3.8 | 3.8 | ||||||||||||||||||||
Purchases, sales and settlements | (16.4 | ) | — | — | (4.4 | ) | (20.8 | ) | |||||||||||||||||
Balance at December 31, 2012 | 23.3 | 0.3 | — | 34.4 | 58 | ||||||||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | — | 1.6 | 2.4 | 4 | ||||||||||||||||||||
Relating to assets sold during the period | — | — | — | 0.8 | 0.8 | ||||||||||||||||||||
Purchases, sales and settlements | (9.3 | ) | — | 55.6 | 0.1 | 46.4 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 14 | $ | 0.3 | $ | 57.2 | $ | 37.7 | $ | 109.2 | |||||||||||||||
Schedule of Estimated Future Payments | ' | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||
Years ending December 31 (dollars in millions) | Pension Benefits | Post-retirement | |||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | $ | 66.7 | $ | 0.9 | |||||||||||||||||||||
2015 | 60 | 0.9 | |||||||||||||||||||||||
2016 | 61.2 | 0.9 | |||||||||||||||||||||||
2017 | 60.2 | 0.9 | |||||||||||||||||||||||
2018 | 66.2 | 0.8 | |||||||||||||||||||||||
2019 – 2023 | 306.7 | 3.7 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Components of Provision for Income Taxes | ' | ||||||||||||||||
The components of the provision (benefit) for income taxes consisted of the following: | |||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 53.9 | $ | 51.5 | $ | (28.0 | ) | ||||||||||
State | 9.6 | 7.2 | (5.2 | ) | |||||||||||||
International | 19.1 | 17 | 4.9 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (8.4 | ) | (3.8 | ) | 63.3 | ||||||||||||
State | (0.5 | ) | 4.6 | 11.9 | |||||||||||||
International | (7.0 | ) | (5.3 | ) | 3.4 | ||||||||||||
$ | 66.7 | $ | 71.2 | $ | 50.3 | ||||||||||||
Difference Between Provision for Income Taxes and U.S. Federal Statutory Rate | ' | ||||||||||||||||
The provision for income taxes differs from the U.S. federal statutory rate due to the following items: | |||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||
Provision at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State income and franchise taxes, net of federal benefit | 2.5 | 3.3 | 3.2 | ||||||||||||||
International income tax rate differential - China | (8.1 | ) | (5.8 | ) | (4.9 | ) | |||||||||||
International income tax rate differential - other | 0.7 | 0.2 | 0.6 | ||||||||||||||
U.S. manufacturing credit | (1.9 | ) | (2.1 | ) | — | ||||||||||||
Research tax credits | (0.8 | ) | — | (0.6 | ) | ||||||||||||
State tax credits | — | — | (2.3 | ) | |||||||||||||
Other | 0.8 | (0.2 | ) | 0.1 | |||||||||||||
28.2 | % | 30.4 | % | 31.1 | % | ||||||||||||
Components of Earnings Before Income Taxes | ' | ||||||||||||||||
Components of earnings before income taxes were as follows: | |||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | ||||||||||||||
U.S. | $ | 151.9 | $ | 158.6 | $ | 117.8 | |||||||||||
International | 84.5 | 75.2 | 43.7 | ||||||||||||||
$ | 236.4 | $ | 233.8 | $ | 161.5 | ||||||||||||
Tax Effects of Temporary Differences of Assets and Liabilities | ' | ||||||||||||||||
The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows: | |||||||||||||||||
December 31 (dollars in millions) | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Employee benefits | $ | 66.8 | $ | — | $ | 90.2 | $ | — | |||||||||
Product liability and warranties | 64.5 | — | 57.3 | — | |||||||||||||
Inventories | — | 4.7 | — | 2.4 | |||||||||||||
Accounts receivable | 11.1 | — | 11.2 | — | |||||||||||||
Property, plant and equipment | — | 33 | — | 35.7 | |||||||||||||
Intangibles | — | 40 | — | 32.9 | |||||||||||||
Environmental liabilities | 3.2 | — | 3.2 | — | |||||||||||||
Undistributed foreign earnings | — | 56.4 | — | 65.1 | |||||||||||||
Tax loss and credit carryovers | 17.7 | — | 15.3 | — | |||||||||||||
All other | 2.4 | — | 1.5 | — | |||||||||||||
Valuation allowance | (9.6 | ) | — | (7.4 | ) | — | |||||||||||
$ | 156.1 | $ | 134.1 | $ | 171.3 | $ | 136.1 | ||||||||||
Net asset | $ | 22 | $ | 35.2 | |||||||||||||
Balance Sheet Classification of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||
These deferred tax assets and liabilities are classified in the balance sheet as current or long-term based on the balance sheet classification of the related assets and liabilities as follows: | |||||||||||||||||
December 31 (dollars in millions) | 2013 | 2012 | |||||||||||||||
Current deferred income tax assets | $ | 40.1 | $ | 33.2 | |||||||||||||
Long-term deferred income tax assets | 2.9 | 8.3 | |||||||||||||||
Long-term deferred income tax liabilities | (21.0 | ) | (6.3 | ) | |||||||||||||
Net asset | $ | 22 | $ | 35.2 | |||||||||||||
Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances | ' | ||||||||||||||||
A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows: | |||||||||||||||||
December 31 (dollars in millions) | |||||||||||||||||
Net Operating Losses and Tax Credits | Valuation Allowances | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 15.3 | $ | 17 | $ | 7.4 | $ | 8.4 | |||||||||
Additions | 4.1 | 2 | 2.2 | 3 | |||||||||||||
Reductions | (1.7 | ) | (3.7 | ) | — | (4.0 | ) | ||||||||||
Ending balance | $ | 17.7 | $ | 15.3 | $ | 9.6 | $ | 7.4 | |||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized benefits is as follows: | |||||||||||||||||
(Dollars in millions) | 2013 | 2012 | |||||||||||||||
Balance at January 1 | $ | 1.3 | $ | 1.8 | |||||||||||||
Reductions for tax positions of prior years | — | (0.5 | ) | ||||||||||||||
Balance at December 31 | $ | 1.3 | $ | 1.3 | |||||||||||||
Operations_by_Segment_Tables
Operations by Segment (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Schedule of Operating Earnings | ' | ||||||||||||||||||||||||||||||||||||
Operating earnings, defined by the company as earnings before interest, taxes, general corporate and corporate research and development expenses, were used to measure the performance of the segments. | |||||||||||||||||||||||||||||||||||||
Net Sales | Earnings | ||||||||||||||||||||||||||||||||||||
Years ended December 31 (dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
North America | $ | 1,520.00 | $ | 1,430.80 | $ | 1,289.50 | $ | 211.9 | $ | 199.8 | $ | 154 | |||||||||||||||||||||||||
Rest of World | 668 | 542.5 | 455.6 | 88 | 59.6 | 42.7 | |||||||||||||||||||||||||||||||
Inter-segment | (34.2 | ) | (34.0 | ) | (34.6 | ) | — | — | (0.2 | ) | |||||||||||||||||||||||||||
Total segments – sales, operating earnings | $ | 2,153.80 | $ | 1,939.30 | $ | 1,710.50 | $ | 299.9 | $ | 259.4 | $ | 196.5 | |||||||||||||||||||||||||
Corporate expenses | (57.8 | ) | (16.4 | ) | (25.7 | ) | |||||||||||||||||||||||||||||||
Interest expense | (5.7 | ) | (9.2 | ) | (9.3 | ) | |||||||||||||||||||||||||||||||
Earnings before income taxes | 236.4 | 233.8 | 161.5 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | (66.7 | ) | (71.2 | ) | (50.3 | ) | |||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 169.7 | $ | 162.6 | $ | 111.2 | |||||||||||||||||||||||||||||||
Schedule of Assets, Depreciation And Capital Expenditure By Segment | ' | ||||||||||||||||||||||||||||||||||||
Assets, depreciation and capital expenditures by segment | |||||||||||||||||||||||||||||||||||||
Total Assets | Depreciation and | Capital | |||||||||||||||||||||||||||||||||||
(December 31) | Amortization (Years Ended | Expenditures | |||||||||||||||||||||||||||||||||||
December 31) | (Years Ended | ||||||||||||||||||||||||||||||||||||
December 31) | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
North America | $ | 1,298.60 | $ | 1,306.20 | $ | 1,319.20 | $ | 40.5 | $ | 39.3 | $ | 33.9 | $ | 38 | $ | 24.7 | $ | 31.6 | |||||||||||||||||||
Rest of World | 525.2 | 420.2 | 342.4 | 16.8 | 14.3 | 12.4 | 59 | 40.3 | 20.5 | ||||||||||||||||||||||||||||
Corporate | 567.7 | 552.4 | 687.4 | 2.4 | 1 | 0.7 | 0.7 | 4.9 | 1.4 | ||||||||||||||||||||||||||||
Total | $ | 2,391.50 | $ | 2,278.80 | $ | 2,349.00 | $ | 59.7 | $ | 54.6 | $ | 47 | $ | 97.7 | $ | 69.9 | $ | 53.5 | |||||||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Location | ' | ||||||||||||||||||||||||||||||||||||
The following data by geographic area includes net sales based on product shipment destination and long-lived assets based on physical location. Long-lived assets include net property, plant and equipment and other long-term assets and long-lived assets of previously owned businesses. | |||||||||||||||||||||||||||||||||||||
Long-lived Assets | Net Sales | ||||||||||||||||||||||||||||||||||||
(December 31) | (Years Ended December 31) | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
United States | $ | 238.6 | $ | 219.1 | $ | 218.2 | United States | $ | 1,335.40 | $ | 1,241.00 | $ | 1,094.30 | ||||||||||||||||||||||||
China | 134.9 | 99.6 | 70.7 | China | 581 | 461.2 | 382.2 | ||||||||||||||||||||||||||||||
Canada | 4.7 | 20.4 | 20.9 | Canada | 142.5 | 150.1 | 160.2 | ||||||||||||||||||||||||||||||
Other Foreign | 46.4 | 35.9 | 32 | Other Foreign | 94.9 | 87 | 73.8 | ||||||||||||||||||||||||||||||
Total | $ | 424.6 | $ | 375 | $ | 341.8 | Total | $ | 2,153.80 | $ | 1,939.30 | $ | 1,710.50 | ||||||||||||||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Results of Operations | ' | ||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Net sales | $ | 509.6 | $ | 468.6 | $ | 549.1 | $ | 484.2 | $ | 536.2 | $ | 462.3 | $ | 558.9 | $ | 524.2 | |||||||||||||||||
Gross profit | 179.3 | 149.1 | 198 | 160.5 | 196.6 | 156.8 | 199.9 | 185.6 | |||||||||||||||||||||||||
Earnings (loss) | |||||||||||||||||||||||||||||||||
Continuing operations | 39 | 47.5 | 42.1 | 35 | 46.2 | 37 | 42.4 | 43.1 | |||||||||||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (3.9 | ) | ||||||||||||||||||||||||
Net earnings | $ | 39 | $ | 47.5 | $ | 42.1 | $ | 35 | $ | 46.2 | $ | 37 | $ | 42.4 | $ | 39.2 | |||||||||||||||||
Basic earnings (loss) per share | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.47 | |||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (0.05 | ) | ||||||||||||||||||||||||
Net | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.42 | |||||||||||||||||
Diluted earnings (loss) per share | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.46 | |||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | (0.04 | ) | ||||||||||||||||||||||||
Net | $ | 0.42 | $ | 0.51 | $ | 0.45 | $ | 0.38 | $ | 0.5 | $ | 0.4 | $ | 0.46 | $ | 0.42 | |||||||||||||||||
Common dividends declared | $ | 0.1 | $ | 0.08 | $ | 0.12 | $ | 0.08 | $ | 0.12 | $ | 0.1 | $ | 0.12 | $ | 0.1 |
Organization_and_Significant_A3
Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Apr. 15, 2013 | Aug. 22, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Y | |||||
Segment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number of reporting segments | ' | ' | 2 | ' | ' |
Proceeds from sale of segment, shares | ' | 2.83 | ' | ' | ' |
Fair value of term notes | ' | ' | $63.80 | ' | ' |
Carrying amount of term notes | ' | ' | 59.4 | ' | ' |
Marketable securities, description | ' | ' | 'The company considers all highly liquid investments with maturities greater than 90 days when purchased to be marketable securities. | ' | ' |
Percentage of (LIFO) inventory | ' | ' | 62.00% | 64.00% | ' |
Equity collar contract, percentage of shares hedged | ' | 50.00% | 50.00% | ' | ' |
RBC share price per share | ' | ' | ' | $66.19 | ' |
Allowance for doubtful accounts | ' | ' | 2.8 | 4.2 | ' |
Advertising costs charged to operations | ' | ' | 78 | 69.2 | 58.9 |
Amortization of total advertising costs | ' | ' | 17.9 | 15.8 | 13.1 |
Research and development costs | ' | ' | 57.8 | 51.7 | 42.7 |
Product warranty period, lower range (in years) | ' | ' | 1 | ' | ' |
Product warranty period, upper range (in years) | ' | ' | 10 | ' | ' |
Excess tax deductions recognized as financing cash flows | ' | ' | 4.8 | 8.8 | 4.3 |
Stock split ratio | 2 | ' | ' | ' | ' |
Percentage of stock dividend to stock holders | ' | ' | 100.00% | ' | ' |
Dividend payable date | ' | ' | 15-May-13 | ' | ' |
Dividend date of record | ' | ' | 30-Apr-13 | ' | ' |
EPC | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Proceeds from sale of electrical products segment, cash received | ' | 760 | ' | ' | ' |
Proceeds from sale of segment, shares | ' | 2.83 | ' | ' | ' |
RBC | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
RBC share price per share | ' | ' | ' | ' | $50.97 |
Minimum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Marketable securities, Maturity period | ' | ' | '180 days | ' | ' |
Amortization of total advertising costs, months | ' | ' | 12 | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Marketable securities, Maturity period | ' | ' | '12 months | ' | ' |
Amortization of total advertising costs, months | ' | ' | 24 | ' | ' |
Building | Minimum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '25 years | ' | ' |
Building | Maximum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '50 years | ' | ' |
Equipment | Minimum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '3 years | ' | ' |
Equipment | Maximum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '20 years | ' | ' |
Software | Minimum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '3 years | ' | ' |
Software | Maximum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated service lives used to compute depreciation | ' | ' | '10 years | ' | ' |
Customer Relationship | Minimum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Intangible assets estimated useful lives | ' | ' | '10 years | ' | ' |
Customer Relationship | Maximum | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Intangible assets estimated useful lives | ' | ' | '25 years | ' | ' |
Commodity Futures Contracts | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amount in excess of cash deposits on unrealized losses on commodity derivatives | ' | ' | 10 | ' | ' |
Reclassification period for effective portion of contract, in years | ' | ' | 1 | ' | ' |
Commodity hedges outstanding, total weight of metals, in pounds | ' | ' | 100,000 | ' | ' |
Put Option | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Price of the equity collar, per share | ' | ' | 63.29 | ' | ' |
Call Option | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Price of the equity collar, per share | ' | ' | 77.32 | ' | ' |
Equity Collar Contract | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Equity collar contract expiration period | ' | ' | 'March 2012 | ' | ' |
Foreign Currency Forward Contracts | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Change in foreign currency valuation from discontinued operations | ' | ' | ' | ' | $3.20 |
Schedule_of_Summary_by_Currenc
Schedule of Summary by Currency of Foreign Currency Forward Contracts (Detail) (Foreign currency forward contracts, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Buy | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | $23.70 | $35.50 |
Buy | Euro | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | 9.1 | 23.2 |
Buy | Mexico, Pesos | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | 14.6 | 12.3 |
Sell | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | 75.8 | 41.1 |
Sell | British Pound | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | 1.4 | 2.3 |
Sell | Canadian Dollar | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | 72.7 | 36.8 |
Sell | Euro | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Contractual amounts of foreign currency forward contracts | $1.70 | $2 |
Impact_of_Derivative_Contracts
Impact of Derivative Contracts on Company's Financial Statements (Detail) (Designated as Hedging Instrument, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative instruments, total | $1.70 | $1.20 |
Foreign Currency Contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative instruments, assets | 1.9 | 1.7 |
Foreign Currency Contracts | Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative instruments, liabilities | ($0.20) | ($0.50) |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments on Statement of Earnings for Continuing and Discontinued Operations (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Amount of gain/(loss) recognized in OCI on derivative (effective portion) | $3.10 | $0.60 |
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion) | 2.5 | -0.8 |
Amount of gain/(loss) recognized in earnings on a derivative (ineffective portion) | ' | ' |
Commodities Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gain/(loss) recognized in OCI on derivative (effective portion) | ' | -0.1 |
Commodities Contracts | Cost Of Products Sold | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion) | -0.1 | -0.1 |
Amount of gain/(loss) recognized in earnings on a derivative (ineffective portion) | ' | ' |
Foreign Currency Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gain/(loss) recognized in OCI on derivative (effective portion) | 3.1 | 0.7 |
Amount of gain/(loss) recognized in earnings on a derivative (ineffective portion) | ' | ' |
Foreign Currency Contracts | Cost Of Products Sold | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion) | 2.6 | -0.7 |
Not Designated as Hedging Instrument | Equity Collar Contract | Other expense - net | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of loss recognized in earnings from continuing operations on derivative | ' | $17.90 |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (Quoted Prices In Active Markets For Identical Assets (Level 1), USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | $107 | $197.20 |
Companys_Warranty_Liability_Ac
Company's Warranty Liability Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranties | ' | ' |
Balance at beginning of year | $129.60 | $131.80 |
Expense | 68 | 54.1 |
Claims settled | -61 | -56.3 |
Balance at end of year | $136.60 | $129.60 |
Schedule_of_Computation_of_Bas
Schedule of Computation of Basic and Diluted Weighted-Average Shares Used in Earnings per Share Calculations (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share Of Common Stock | ' | ' | ' |
Denominator for basic earnings per share - weighted-average shares outstanding | 92,118,153 | 92,395,216 | 92,238,064 |
Effect of dilutive stock options, restricted stock and share units | 669,517 | 712,906 | 911,172 |
Denominator for diluted earnings per share | 92,787,670 | 93,108,122 | 93,149,236 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 22, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Aug. 22, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
China Facility | EPC | EPC | EPC | EPC | ||||
Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of business segment | ' | ' | $752.50 | ' | $759.90 | ' | ' | ' |
Proceeds from sale of business segment, shares | 2.83 | ' | ' | ' | 2.83 | ' | ' | ' |
Working capital adjustment | ' | ' | ' | ' | 7.4 | ' | ' | ' |
Value of shares from sale of business segment | ' | ' | ' | ' | 140.6 | ' | ' | ' |
Income taxes paid | ' | ' | ' | ' | ' | ' | 31.2 | 126.5 |
Commissions paid | ' | ' | ' | ' | ' | ' | 3.6 | 21.4 |
Gain related to cumulative transaction adjustments | ' | ' | ' | ' | ' | ' | ' | 10.9 |
(Loss)/gain on sale of discontinued EPC operations | ' | -3.9 | 151.5 | ' | ' | 3.9 | ' | ' |
Correction of error in calculation of taxes | ' | ' | ' | ' | ' | ' | 6.4 | ' |
Change in estimate | ' | ' | ' | ' | ' | ' | 2.5 | ' |
Gain on sale of assets | ' | ' | ($4.80) | $4.80 | ' | ' | ' | ' |
Schedule_of_Disposal_Groups_In
Schedule of Disposal Groups Including Discontinued Operations Income Statement (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations | ' | ' | ' |
Net sales | ' | ' | $531.80 |
Cost of products sold | ' | ' | 415.6 |
Gross profit | ' | ' | 116.2 |
Selling, general and administrative expenses | ' | ' | 61.5 |
Interest expense | ' | ' | 2.2 |
Other income - net | ' | ' | -6 |
Earnings before income taxes | ' | ' | 58.5 |
Provision for income taxes | ' | ' | 15.5 |
Net earnings | ($3.90) | ($3.90) | $43 |
Schedule_of_Disposal_Groups_In1
Schedule of Disposal Groups Including Discontinued Operations Cash Flows (used in) Statement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
(Loss) earnings | ' | ($3.90) | $43 |
Depreciation and amortization | ' | ' | 16.5 |
Gain on sale of assets | ' | ' | -4.8 |
Current assets and liabilities | -1 | -22.6 | -56.2 |
Noncurrent assets and liabilities | -0.5 | -0.9 | 0.9 |
Other | ' | ' | -1.7 |
Cash Used in Discontinued Operating Activities | -1.5 | -27.4 | -2.3 |
Capital expenditures | ' | ' | -10.5 |
Proceeds on sale of assets | ' | ' | 6.1 |
Proceeds from sale of operations | ' | ' | 752.5 |
Payments associated with sale | ' | ' | -147.9 |
Cash Provided by Discontinued Investing Activities | ' | ' | 600.2 |
Cash (Used in) Provided by Discontinued Operations | ($1.50) | ($27.40) | $597.90 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 4 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 26, 2011 | Feb. 14, 2013 | Aug. 26, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Aug. 26, 2011 | Aug. 26, 2011 | Feb. 14, 2013 | Aug. 26, 2011 | Feb. 14, 2013 | Aug. 26, 2011 | Aug. 26, 2011 | Aug. 26, 2011 | Aug. 26, 2011 |
MiM Isitma Sogutma Havalandirma ve Aritma Sistemleri San. Tic. A.S. | Lochinvar Corporation | Lochinvar Corporation | Lochinvar Corporation | Lochinvar Corporation | Lochinvar Corporation | Customer Lists | Customer Lists | Customer Lists | Customer Lists | Trade Names | Non-Compete Agreements And Patents | Non-Compete Agreements And Patents | |||||
Residential and commercial water heater | Boilers and related parts | MiM Isitma Sogutma Havalandirma ve Aritma Sistemleri San. Tic. A.S. | Lochinvar Corporation | Lochinvar Corporation | Lochinvar Corporation | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of shares acquired | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from acquisition | ' | ' | ' | ' | $1.90 | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash purchase price, net of cash received | 4 | 13.5 | 421.1 | ' | 4 | 421.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent payment | ' | ' | ' | ' | 1.1 | 35 | ' | 13.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt assumed | ' | ' | ' | ' | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | 4.3 | 258.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets subject to amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 152.5 | ' | ' | 2.3 |
Acquired intangible assets, amortization period, in years | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '19 years | ' | ' | ' | '10 years | ' |
Percentage of sales | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs incurred | ' | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volume of sales required to make additional contingent payment | ' | ' | ' | ' | ' | 216 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of the contingent payment | ' | ' | ' | ' | ' | ' | 16.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | ' | 3.3 | ' | ' | ' | ' | ' | 3.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets that are not subject to amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103.5 | ' | ' |
Business acquisition purchase price allocation goodwill and intangible assets deductible for income tax purposes | ' | ' | ' | 369.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from acquisitions included in operations | ' | ' | ' | ' | ' | ' | 75.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax earnings from acquisitions included in operations | ' | ' | ' | ' | ' | ' | 5.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating earning | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | $5.70 | $9.20 | $9.30 | ' | ' | ' | $1.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share | ' | ' | $1.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Preliminary_Estimat
Summary of Preliminary Estimate of Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 26, 2011 |
In Millions, unless otherwise specified | ||||
Acquisition | ' | ' | ' | ' |
Current assets, net of cash acquired | ' | ' | ' | $54 |
Property, plant and equipment | ' | ' | ' | 41.9 |
Intangible assets | ' | ' | ' | 258.3 |
Other assets | ' | ' | ' | 0.1 |
Goodwill | 433.5 | 435.4 | 433.8 | 111.4 |
Total assets acquired | ' | ' | ' | 465.7 |
Current liabilities | ' | ' | ' | 24.3 |
Long-term liabilities | ' | ' | ' | 3.5 |
Total liabilities assumed | ' | ' | ' | 27.8 |
Net assets acquired | ' | ' | ' | $437.90 |
Restructuring_Impairment_Other
Restructuring, Impairment, Other Charges and Settlement Income - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 11, 2013 | 5-May-11 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring and impairment expense | ' | ' | ' | $22 | ' | ' |
Severance costs and impairment expense | ' | ' | ' | 7.5 | ' | ' |
Inventory obsolescence reserve | ' | ' | ' | 2.4 | ' | ' |
Impairment charges related to long-lived asset | ' | ' | ' | 9.2 | ' | ' |
Tax benefit related to charge | ' | ' | ' | 5.6 | ' | ' |
Equipment relocation costs | ' | ' | ' | 2.9 | ' | ' |
Recovery of costs and damages from vendors | 11 | 35.5 | ' | ' | ' | ' |
Gain recognized on legal settlement | 11 | ' | 3.9 | ' | ' | 11.2 |
Related tax expense | 4.2 | ' | ' | 66.7 | 71.2 | 50.3 |
Provision for product warranty | ' | $7.50 | ' | ' | ' | $8.20 |
Schedule_of_Analysis_of_Compan
Schedule of Analysis of Company's Restructuring, Impairment and Settlement Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | $11 | ($3.90) | ($11.20) |
Asset write-down | -9.9 | ' | ' |
Cash (payments) receipts | 2.5 | 3.9 | ' |
Ending Balance | 3.6 | ' | ' |
Inventory Obsolescence | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | 2.4 | ' | ' |
Asset write-down | -0.7 | ' | ' |
Ending Balance | 1.7 | ' | ' |
Severance Costs | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | 7.5 | ' | ' |
Cash (payments) receipts | -6 | ' | ' |
Ending Balance | 1.5 | ' | ' |
Asset Impairment | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | 9.2 | ' | ' |
Asset write-down | -9.2 | ' | ' |
Equipment Relocation | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | 2.9 | ' | ' |
Cash (payments) receipts | -2.5 | ' | ' |
Ending Balance | 0.4 | ' | ' |
Settlement Income | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expense (income) recognized | -11 | -3.9 | ' |
Cash (payments) receipts | $11 | $3.90 | ' |
Schedule_of_Supplemental_Cash_
Schedule of Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Cash Flows | ' | ' | ' |
Receivables | ($32.30) | ($57) | ($28.10) |
Inventories | -28.5 | 5 | 4.7 |
Other current assets | -7.5 | -0.8 | -4.5 |
Trade payables | 58 | 26.4 | 27.4 |
Accrued liabilities, including payroll and benefits | 29.4 | 3.1 | -1.7 |
Income taxes payable | 1.4 | -13.3 | 2.7 |
Increase (Decrease) in Other Current Assets and Liabilities, Net, Total | $20.50 | ($36.60) | $0.50 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Finished products | $88.80 | $74.40 |
Work in process | 12.3 | 12 |
Raw materials | 113.6 | 100 |
Inventories, at FIFO cost | 214.7 | 186.4 |
LIFO reserve | 21.3 | 23 |
Inventories, Net | $193.40 | $163.40 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventories [Line Items] | ' | ' | ' |
After-tax LIFO expense (income) | $0.10 | ($1.10) | $0.40 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant And Equipment | ' | ' |
Land | $11.30 | $11.60 |
Buildings | 212.5 | 194.3 |
Equipment | 497.8 | 455.8 |
Software | 37.2 | 18.9 |
Property, Plant and Equipment, Gross, Total | 758.8 | 680.6 |
Less accumulated depreciation and amortization | 367.5 | 334.9 |
Net property, plant and equipment | $391.30 | $345.70 |
Schedule_of_Changes_in_Carryin
Schedule of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 26, 2011 |
Goodwill [Line Items] | ' | ' | ' | ' |
Beginning balance | $435.40 | $433.80 | $433.50 | $111.40 |
Acquisition of business (see Note 3) | 1.9 | ' | ' | ' |
Currency translation adjustment | -3.8 | 1.6 | ' | ' |
Ending balance | 433.5 | 435.4 | ' | ' |
North America | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | 374.9 | ' | ' |
Currency translation adjustment | -3.5 | 1.5 | ' | ' |
Ending balance | 372.9 | 376.4 | ' | ' |
Rest of World | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | 58.9 | ' | ' |
Acquisition of business (see Note 3) | 1.9 | ' | ' | ' |
Currency translation adjustment | -0.3 | 0.1 | ' | ' |
Ending balance | $60.60 | $59 | ' | ' |
Schedule_of_Carrying_Amount_of
Schedule of Carrying Amount of Other Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Amortizable intangible assets | $239.50 | $237.80 |
Accumulated Amortization, Amortizable intangible assets | -59.9 | -45.6 |
Net, Amortizable intangible assets | 179.6 | 192.2 |
Gross Carrying Amount, Total intangible assets | 384.7 | 384.3 |
Accumulated amortization, Total intangible assets | -59.9 | -45.6 |
Net, Total intangible assets | 324.8 | 338.7 |
Patents | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Amortizable intangible assets | 6.8 | 6.8 |
Accumulated Amortization, Amortizable intangible assets | -4.7 | -4.4 |
Net, Amortizable intangible assets | 2.1 | 2.4 |
Customer Lists | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Amortizable intangible assets | 232.7 | 231 |
Accumulated Amortization, Amortizable intangible assets | -55.2 | -41.2 |
Net, Amortizable intangible assets | 177.5 | 189.8 |
Trade Names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, indefinite-lived intangible assets | 145.2 | 146.5 |
Net, Indefinite-lived intangible assets | $145.20 | $146.50 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Other Intangibles [Line Items] | ' | ' | ' |
Amortization expenses of other intangible assets | $14.40 | $14.60 | $9.60 |
Amortization of intangible assets, weighted average period, years | '15 years | ' | ' |
Annual impairment of goodwill | 0 | 0 | 0 |
Intangible asset impairment charge | 0 | 0 | 0 |
Annually | ' | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' | ' |
Amortization expenses of other intangible assets | $14.40 | ' | ' |
Debt_and_Lease_Commitments_Det
Debt and Lease Commitments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt | $191.90 | $243.70 |
Less long-term debt due within one year | 14.2 | 18.6 |
Long-term debt | 177.7 | 225.1 |
Bank Credit Lines | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 3.6 | 9.4 |
Revolving Credit Agreement Borrowings | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 80 | 115 |
Commercial Paper | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 48.9 | 39.3 |
Term Notes With Insurance Companies | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 31.2 | 49.8 |
Canadian Term Notes With Insurance Companies | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | $28.20 | $30.20 |
Debt_and_Lease_Commitments_Par
Debt and Lease Commitments (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Bank Credit Lines | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, average year-end interest rate | 2.40% | 3.80% |
Revolving Credit Agreement Borrowings | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, average year-end interest rate | 1.30% | 1.30% |
Commercial Paper | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, average year-end interest rate | 1.10% | 1.20% |
Term Notes With Insurance Companies | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, average year-end interest rate | 6.00% | 6.00% |
Canadian Term Notes With Insurance Companies | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, average year-end interest rate | 5.30% | 5.30% |
Debt_and_Lease_Commitments_Add
Debt and Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Multi-currency revolving credit agreement | $400 | ' | ' |
Number of banks involved in multi-year multi-currency revolving credit agreement | 8 | ' | ' |
Revolving credit facility, expiration date | 12-Dec-17 | ' | ' |
Multi-currency revolving credit agreement, maximum amount | 500 | ' | ' |
Future minimum payments under non-cancelable operating leases due, total | 27.9 | ' | ' |
Rent expense, including payments under operating leases | 20.7 | 18.3 | 16.1 |
Interest paid including discontinued operations | 5.9 | 9.4 | 11.5 |
Capitalized interest expense | $0.80 | ' | ' |
Schedule_of_Maturities_of_Long
Schedule of Maturities of Long Term Debt (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt And Lease Commitments [Abstract] | ' |
2014 | $14.20 |
2015 | 14.2 |
2016 | 14.2 |
2017 | 140.9 |
2018 | $8.40 |
Schedule_of_Future_Minimum_Pay
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt And Lease Commitments [Abstract] | ' |
2014 | $8.10 |
2015 | 5.2 |
2016 | 4.3 |
2017 | 3.2 |
2018 | 2 |
Thereafter | $5.10 |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2013 | Dec. 14, 2007 |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 3,000,000 | ' | ' | ' | ' |
Preferred stock, par value | $1 | ' | ' | ' | ' |
Dividends paid | $0.46 | $0.36 | $0.30 | ' | ' |
Stock repurchase program number of shares authorized to repurchase | ' | ' | ' | 2,551,642 | 3,000,000 |
Stock repurchase program additional number of shares authorized | ' | ' | ' | 2,000,000 | ' |
Shares repurchased | 1,771,066 | 852,980 | 1,223,178 | ' | ' |
Shares repurchased, value | $73.70 | $22 | $23.50 | ' | ' |
Common Class A | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Common Stock, shares authorized | 14,000,000 | ' | ' | ' | ' |
Common stock, par value | $5 | ' | ' | ' | ' |
Shares converted into Common Stock | 85,792 | 1,191,706 | 461,914 | ' | ' |
Treasury stock, number of shares held | 65,190 | 65,190 | ' | ' | ' |
Common Stock | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Common Stock, shares authorized | 120,000,000 | ' | ' | ' | ' |
Common stock, par value | $1 | ' | ' | ' | ' |
Treasury stock, number of shares held | 4,049,408 | 2,861,944 | ' | ' | ' |
Schedule_of_Accumulated_Other_
Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Stockholders' Equity [Abstract] | ' | ' |
Cumulative foreign currency translation adjustments | $19.90 | $19.50 |
Unrealized net gain on cash flow derivative instruments less related income tax provision of $0.6 in 2013 and $0.5 in 2012 | 1 | 0.7 |
Pension liability less related income tax benefit of $179.2 in 2013 and $217.9 in 2012 | -280 | -340.7 |
Accumulated other comprehensive loss | ($259.10) | ($320.50) |
Schedule_of_Accumulated_Other_1
Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized net gain (loss) on cash flow derivative instruments, related income tax (provision) benefit | $0.60 | $0.50 |
Pension liability, related income tax benefit | $179.20 | $217.90 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Accumulated Other Comprehensive Income loss Beginning Balance | ($320.50) | |
Other comprehensive earnings before reclassifications | 37.7 | |
Amounts reclassified from accumulated other comprehensive loss: | 23.7 | [1] |
Accumulated Other Comprehensive Income loss Ending Balance | -259.1 | |
Cumulative Foreign Currency Translation | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Accumulated Other Comprehensive Income loss Beginning Balance | 19.5 | |
Other comprehensive earnings before reclassifications | 0.4 | |
Amounts reclassified from accumulated other comprehensive loss: | ' | [1] |
Accumulated Other Comprehensive Income loss Ending Balance | 19.9 | |
Unrealized Net Gain (Loss) on Cash Flow Derivatives | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Accumulated Other Comprehensive Income loss Beginning Balance | 0.7 | |
Other comprehensive earnings before reclassifications | 1.8 | |
Amounts reclassified from accumulated other comprehensive loss: | -1.5 | [1] |
Accumulated Other Comprehensive Income loss Ending Balance | 1 | |
Pension Liability | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Accumulated Other Comprehensive Income loss Beginning Balance | -340.7 | |
Other comprehensive earnings before reclassifications | 35.5 | |
Amounts reclassified from accumulated other comprehensive loss: | 25.2 | [1] |
Accumulated Other Comprehensive Income loss Ending Balance | ($280) | |
[1] | Amounts reclassified from accumulated other comprehensive loss: Realized gains on derivatives reclassified to cost of products sold (2.5 ) Tax provision 1.0 Reclassification net of tax $ (1.5 ) Amortization of pension items: Actuarial losses $ 41.7 (2) Prior year service cost (0.9 )(2) 40.8 Tax benefit (15.6 ) Reclassification net of tax $ 25.2 |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Reclassification net of tax | $2.50 | ($0.80) | ' | |
Reclassification net of tax | -60.7 | 22.4 | 54.5 | |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |
Realized gains on derivatives reclassified to cost of products sold | -2.5 | ' | ' | |
Tax provision | 1 | ' | ' | |
Reclassification net of tax | -1.5 | ' | ' | |
Actuarial losses | 41.7 | [1] | ' | ' |
Prior year service cost | -0.9 | [1] | ' | ' |
Other Comprehensive Income Defined Benefit Plans Adjustment Change In Period, Total | 40.8 | ' | ' | |
Tax benefit | -15.6 | ' | ' | |
Reclassification net of tax | $25.20 | ' | ' | |
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 12 - Pensions for additional details. |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (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] | ' | ' | ' |
Total stock based compensation cost recognized | $10.50 | $6.80 | $5.70 |
Stock option compensation recognized | 4.5 | 3.2 | 2.8 |
Aggregate intrinsic value for the outstanding options | 45.5 | ' | ' |
Aggregate intrinsic value for the exercisable options | 28.1 | ' | ' |
Average remaining contractual life for outstanding options, in years | '8 years | ' | ' |
Average remaining contractual life for exercisable options, in years | '7 years | ' | ' |
Weighted-average fair value per option at the date of grant | $12.57 | $8.26 | $8.26 |
Total compensation expense for share units not yet recognized | 3.2 | ' | ' |
Weighted average period over which the expense is expected to be recognized, in months | '17 months | ' | ' |
Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '3 years | '3 years | '3 years |
Award expiration period | '10 years | '10 years | '10 years |
Restricted Stock And Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '3 years | '3 years | '3 years |
Share units granted under the plan | 144,696 | 167,860 | 151,250 |
Value of share units at the date of issuance | 5 | 3.9 | 3.3 |
Share based compensation expense attributable to share units | $6 | $3.60 | $2.90 |
A.O. Smith Combined Compensation Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares available for granting of options or share units | 2,754,331 | ' | ' |
Changes_in_Option_Awards_All_o
Changes in Option Awards All of Which Related to Common Stock (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | 2013 - $34.96 to $52.93 per share | 2012 - $22.08 to $22.99 per share | 2011 - $21.56 to $22.06 per share | 2013 - $8.20 to $22.99 per share | 2012 - $8.21 to $21.56 per share | 2012 - $8.21 to $21.56 per share | 2011 - $7.99 to $13.97 per share | 2011 - $7.99 to $13.97 per share | 2013 - $22.99 to $34.92 per share | 2012 - $13.97 to $22.99 per share | 2011 - $9.50 to $21.56 per share | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Avg. Per Share Exercise Price, beginning period | $22.37 | $16.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted- Avg. Per Share Exercise Price - Granted | ' | ' | ' | ' | $34.96 | $22.08 | $21.56 | $52.93 | $22.99 | $22.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted- Avg. Per Share Exercise Price - Exercised | ' | ' | ' | ' | $8.20 | $8.21 | $7.99 | $22.99 | $21.56 | $13.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted- Avg. Per Share Exercise Price - Forfeited | ' | ' | ' | ' | $22.99 | $13.97 | $9.50 | $34.92 | $22.99 | $21.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Avg. Per Share Exercise Price, ending period | $22.37 | $16.72 | ' | ' | $8.20 | ' | ' | $38.94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted- Avg. Per Share Exercise Price, Exercisable | $16.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning Balance | 1,440,623 | 1,530,734 | 2,843,734 | 3,246,202 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 361,700 | 382,000 | 356,400 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -446,746 | ' | -1,686,834 | ' | -728,162 | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,065 | -8,166 | -30,706 |
Outstanding, Ending Balance | 1,440,623 | 1,530,734 | 2,843,734 | 3,246,202 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at End of Period | 740,919 | 819,312 | 1,979,866 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value, Exercised at end of Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 | $18.40 | ' | $7.70 | ' | ' | ' | ' |
Schedule_of_WeightedAverage_In
Schedule of Weighted-Average Information by Range of Exercise Prices for Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options Outstanding at December 31, 2013 | 1,440,623 |
Options Exercisable at December 31, 2013 | 740,919 |
$8.20 to $11.88 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, minimum | $8.20 |
Range of Exercise Prices, maximum | $11.88 |
Weighted Average Remaining Contractual Life, in Years | '6 years |
Options Outstanding at December 31, 2013 | 275,400 |
Options Outstanding, Weighted-Average Exercise Price | $10.12 |
Options Exercisable, Weighted-Average Exercise Price | $10.12 |
Options Exercisable at December 31, 2013 | 275,400 |
$12.92 to $13.97 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, minimum | $12.92 |
Range of Exercise Prices, maximum | $13.97 |
Weighted Average Remaining Contractual Life, in Years | '7 years |
Options Outstanding at December 31, 2013 | 144,700 |
Options Outstanding, Weighted-Average Exercise Price | $13.86 |
Options Exercisable, Weighted-Average Exercise Price | $13.86 |
Options Exercisable at December 31, 2013 | 144,700 |
$21.56 to $38.94 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Prices, minimum | $21.56 |
Range of Exercise Prices, maximum | $38.94 |
Weighted Average Remaining Contractual Life, in Years | '9 years |
Options Outstanding at December 31, 2013 | 1,020,523 |
Options Outstanding, Weighted-Average Exercise Price | $26.88 |
Options Exercisable, Weighted-Average Exercise Price | $22.12 |
Options Exercisable at December 31, 2013 | 320,819 |
Schedule_of_WeightedAverage_Fa
Schedule of Weighted-Average Fair Value per Option at Date of Grant (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Based Compensation [Abstract] | ' | ' | ' |
Expected life (years) | '6 years 1 month 6 days | '6 years 2 months 12 days | '6 years 4 months 24 days |
Risk-free interest rate | 2.00% | 2.00% | 3.60% |
Dividend yield | 1.10% | 1.40% | 1.30% |
Expected volatility | 38.40% | 39.40% | 38.40% |
Summary_of_Share_Unit_Activity
Summary of Share Unit Activity Under Plan (Detail) (Restricted Stock And Share Units, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock And Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Units Issued and unvested, Beginning of Period | 469,012 | ' | ' |
Number of Units - Granted | 144,696 | 167,860 | 151,250 |
Number of Units - Vested | -157,732 | ' | ' |
Number of Units - Forfeited/cancelled | -9,940 | ' | ' |
Number of Units Issued and unvested, End of Period | 446,036 | 469,012 | ' |
Weighted-Average Grant Date Value, Beginning of Period | $19.37 | ' | ' |
Weighted-Average Grant Date Value - Granted | $34.87 | ' | ' |
Weighted-Average Grant Date Value - Vested | $13.97 | ' | ' |
Weighted-Average Grant Date Value - Forfeited/cancelled | $27.33 | ' | ' |
Weighted-Average Grant Date Value, End of Period | $26.14 | $19.37 | ' |
Pensions_and_Other_Postretirem
Pensions and Other Post-retirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Age | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage match of the first one percent of contributions made by participating employees | 100.00% | ' |
Percentage Match Of The Next Five Percent Of Contributions Made By Participating Employees | 50.00% | ' |
Define benefit plan curtailments | $12.30 | ' |
Medical and life insurance maximum participant coverage age, in years | 65 | ' |
Other comprehensive (gain) loss as a result of after tax adjustments for additional minimum pension liability | -60.7 | 22.4 |
Target allocation to equity managers, minimum | 50.00% | ' |
Target allocation to equity managers maximum | 55.00% | ' |
Pension Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | 35.4 | ' |
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | -1 | ' |
Post-Retirement Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Estimated net actuarial gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | 0.3 | ' |
Estimated net prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost | $0.30 | ' |
Ten Year Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Number of historical years for which compounded annualized returns is considered | 10 | ' |
Compounded annualized return of pension plan | 6.40% | ' |
Twenty Five Year Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Number of historical years for which compounded annualized returns is considered | 25 | ' |
Compounded annualized return of pension plan | 9.80% | ' |
Schedule_of_Changes_in_Benefit
Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Plan assets at end of year | $814 | $799.70 | ' | ||
Pension Plans, Defined Benefit | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Accumulated Benefit Obligation (ABO) at December 31 | 929.1 | 978.7 | ' | ||
PBO at beginning of year | -987.7 | -906.5 | ' | ||
Service cost | -9 | -7.8 | -9.1 | ||
Interest cost | -39.5 | -43.6 | -44.2 | ||
Participant contributions | ' | ' | ' | ||
Actuarial gain (loss) including assumption changes | 39.6 | -90.3 | ' | ||
Benefits paid | 59.6 | 60.5 | ' | ||
PBO at end of year | -937 | -987.7 | -906.5 | ||
Plan assets at beginning of year | 800.5 | 768.6 | ' | ||
Actual return on plan assets | 80.8 | 91.2 | ' | ||
Contribution by the company | 0.6 | 1.2 | ' | ||
Plan assets at end of year | 822.3 | 800.5 | 768.6 | ||
Funded status | -114.7 | -187.2 | ' | ||
Current liabilities | -7.1 | ' | ' | ||
Non-current liabilities | -107.6 | -187.2 | ' | ||
Net pension liability at end of year | -114.7 | [1] | -187.2 | [1] | ' |
Net actuarial loss (gain) | 467.1 | 567.9 | ' | ||
Prior service cost | -7.2 | -8.1 | ' | ||
Total recognized in accumulated other comprehensive loss | 459.9 | 559.8 | ' | ||
Post-Retirement Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
PBO at beginning of year | -11.4 | -12.7 | ' | ||
Service cost | -0.1 | -0.1 | -0.2 | ||
Interest cost | -0.5 | -0.5 | -0.7 | ||
Participant contributions | -0.3 | -0.3 | ' | ||
Actuarial gain (loss) including assumption changes | -0.3 | 1.1 | ' | ||
Benefits paid | 1.7 | 1.1 | ' | ||
PBO at end of year | -10.9 | -11.4 | -12.7 | ||
Plan assets at beginning of year | ' | ' | ' | ||
Contribution by the company | 1.4 | 0.8 | ' | ||
Plan assets at end of year | ' | ' | ' | ||
Funded status | -10.9 | -11.4 | ' | ||
Current liabilities | -0.9 | -0.8 | ' | ||
Non-current liabilities | -10 | -10.6 | ' | ||
Net pension liability at end of year | -10.9 | -11.4 | ' | ||
Net actuarial loss (gain) | -2.9 | -3.5 | ' | ||
Total recognized in accumulated other comprehensive loss | ($2.90) | ($3.50) | ' | ||
[1] | In addition, the company has recorded a liability for a foreign pension plan of $3.1 million and $2.9 million at December 31, 2013 and 2012, respectively, and an accumulated other comprehensive loss of $2.2 million and $2.3 million at December 31, 2013 and 2012, respectively. |
Schedule_of_Changes_in_Benefit1
Schedule of Changes in Benefit Obligations, Plan Assets and Funded Status of Defined Benefit Pension and Post-Retirement Benefit Plans (Parenthetical) (Detail) (Foreign Pension Plans, Defined Benefit, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Foreign Pension Plans, Defined Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Liability on foreign pension plan | $3.10 | $2.90 |
Pension plan accumulated comprehensive loss | $2.20 | $2.30 |
Components_of_Companys_Net_Pen
Components of Company's Net Pension Expense (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit | ' | ' | ' | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' | ' | |
Service cost | $9 | $7.80 | $9.10 | |
Interest cost | 39.5 | 43.6 | 44.2 | |
Expected return on plan assets | -61.7 | -68.9 | -70.6 | |
Net actuarial loss | 42 | 32.1 | 24.4 | |
Prior service cost | -0.9 | -0.8 | -0.9 | |
Curtailment and other one-time charges | ' | ' | -1.3 | |
Defined-benefit plan cost | 27.9 | 13.8 | 4.9 | |
Various U.S. defined contribution plans cost | 5.4 | 5 | 5.6 | |
Net Periodic Benefit Cost Total | 33.3 | 18.8 | 10.5 | [1] |
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss Net actuarial (gain) loss | -58.7 | 68 | 109.3 | |
Amortization of net actuarial (loss) gain | -42 | -32.1 | -24.4 | |
Prior service cost | ' | ' | 2.8 | |
Amortization of prior service cost | 0.9 | 0.8 | 0.9 | |
Total recognized in other comprehensive loss | -99.8 | 36.7 | 88.6 | |
Total Recognized in Net Periodic (Benefit) Cost and Other Comprehensive Loss | -71.9 | 50.5 | 93.5 | |
Post-Retirement Benefits | ' | ' | ' | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' | ' | |
Service cost | 0.1 | 0.1 | 0.2 | |
Interest cost | 0.5 | 0.5 | 0.7 | |
Expected return on plan assets | ' | ' | ' | |
Net actuarial loss | -0.3 | -0.4 | -0.4 | |
Prior service cost | ' | ' | ' | |
Curtailment and other one-time charges | ' | ' | -2.1 | |
Defined-benefit plan cost | 0.3 | 0.2 | -1.6 | |
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss Net actuarial (gain) loss | 0.3 | -1.1 | 0.2 | |
Amortization of net actuarial (loss) gain | 0.3 | 0.4 | 0.4 | |
Amortization of prior service cost | ' | ' | -0.1 | |
Total recognized in other comprehensive loss | 0.6 | -0.7 | 0.5 | |
Total Recognized in Net Periodic (Benefit) Cost and Other Comprehensive Loss | $0.90 | ($0.50) | ($1.10) | |
[1] | Includes $1.6 million of defined benefit plan expense and $0.9 million of defined contribution plans expense that were included in earnings from discontinued operations for 2011. |
Components_of_Companys_Net_Pen1
Components of Company's Net Pension Expense (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' |
Defined benefit plan (expense) income associated with discontinued operations | $1.60 |
Defined benefit plan expense associated with discontinued operations | $0.90 |
Actuarial_Assumptions_Used_to_
Actuarial Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.85% | 4.05% |
Average salary increases | 4.00% | 4.00% |
Post-Retirement Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.70% | 4.05% |
Average salary increases | 4.00% | 4.00% |
Assumptions_Used_to_Determine_
Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.05% | 4.90% | 5.35% |
Expected long-term return on plan assets | 8.00% | 8.50% | 8.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Post-Retirement Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.05% | 4.90% | 5.35% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Health_Care_Cost_Trend_Rates_D
Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension And Other Post-Retirement Benefits | ' | ' |
Health care cost trend rate assumed for next year | 10.00% | 10.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2018 | '2017 |
Weighted_Asset_Allocations_by_
Weighted Asset Allocations by Asset Category (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 100.00% | 100.00% |
Equity Securities | ' | ' |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 53.00% | 62.00% |
Debt Securities | ' | ' |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 34.00% | 33.00% |
Private Equity | ' | ' |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 5.00% | 4.00% |
Real estate | ' | ' |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 7.00% | ' |
Other | ' | ' |
Pension And Other Post-Retirement Benefits | ' | ' |
Average Assets Allocation | 1.00% | 1.00% |
Fair_Value_Measurement_of_Plan
Fair Value Measurement of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | $814 | $799.70 | ' |
Non-investment plan assets | 8.3 | 0.8 | ' |
Total plan assets | 822.3 | 800.5 | ' |
Short-term Investments | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 15.4 | 23.3 | ' |
Equity Securities | Common Stock | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 272.9 | 300.2 | ' |
Equity Securities | Commingled Equity Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 147.5 | 178.3 | ' |
Fixed Income Securities | US Treasury Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 136.2 | 90.1 | ' |
Fixed Income Securities | US Government Agencies Debt Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | ' | 3.2 | ' |
Fixed Income Securities | Other Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 75.3 | 49.6 | ' |
Fixed Income Securities | Commingled Fixed Income Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 71.8 | 120.6 | ' |
Other Investments | Real estate funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 57.2 | ' | ' |
Other Investments | Private equity | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 37.7 | 34.4 | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 410.5 | 390.3 | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Short-term Investments | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 1.4 | ' | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Equity Securities | Common Stock | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 272.9 | 300.2 | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Fixed Income Securities | US Treasury Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 136.2 | 90.1 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 294.3 | 351.4 | ' |
Significant Other Observable Inputs (Level 2) | Equity Securities | Commingled Equity Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 147.5 | 178.3 | ' |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | US Government Agencies Debt Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | ' | 3.2 | ' |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Other Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 75 | 49.3 | ' |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Commingled Fixed Income Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 71.8 | 120.6 | ' |
Significant Non-observable Inputs (Level 3) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 109.2 | 58 | 74.6 |
Significant Non-observable Inputs (Level 3) | Short-term Investments | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 14 | 23.3 | ' |
Significant Non-observable Inputs (Level 3) | Fixed Income Securities | Other Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 0.3 | 0.3 | ' |
Significant Non-observable Inputs (Level 3) | Other Investments | Real estate funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | 57.2 | ' | ' |
Significant Non-observable Inputs (Level 3) | Other Investments | Private equity | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total fair value of plan asset investments | $37.70 | $34.40 | ' |
Reconciliation_of_Fair_Value_M
Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at end of year | $814 | $799.70 |
Significant Non-observable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at beginning of year | 58 | 74.6 |
Relating to assets still held at the reporting date | 4 | 0.4 |
Relating to assets sold during the period | 0.8 | 3.8 |
Purchases, sales and settlements | 46.4 | -20.8 |
Plan assets at end of year | 109.2 | 58 |
Short-term Investments | Significant Non-observable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at beginning of year | 23.3 | 39.7 |
Purchases, sales and settlements | -9.3 | -16.4 |
Plan assets at end of year | 14 | 23.3 |
Other Fixed Income Securities | Significant Non-observable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at beginning of year | ' | 0.2 |
Relating to assets still held at the reporting date | ' | 0.1 |
Plan assets at end of year | 0.3 | 0.3 |
Real estate funds | Significant Non-observable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Relating to assets still held at the reporting date | 1.6 | ' |
Purchases, sales and settlements | 55.6 | ' |
Plan assets at end of year | 57.2 | ' |
Private equity | Significant Non-observable Inputs (Level 3) | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at beginning of year | 34.4 | 34.7 |
Relating to assets still held at the reporting date | 2.4 | 0.3 |
Relating to assets sold during the period | 0.8 | 3.8 |
Purchases, sales and settlements | 0.1 | -4.4 |
Plan assets at end of year | $37.70 | $34.40 |
Estimated_Future_Payments_Deta
Estimated Future Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $66.70 |
2015 | 60 |
2016 | 61.2 |
2017 | 60.2 |
2018 | 66.2 |
2019 - 2023 | 306.7 |
Post-Retirement Benefits | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 0.9 |
2015 | 0.9 |
2016 | 0.9 |
2017 | 0.9 |
2018 | 0.8 |
2019 - 2023 | $3.70 |
Investment_in_Shares_of_RBC_Co1
Investment in Shares of RBC Common Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Aug. 22, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Proceeds from sale of business segment, shares | 2.83 | ' | ' | ' |
Unrealized after-tax gain on available for sale securities | ' | ' | ($1.20) | $1.20 |
Equity collar contract, percentage of shares hedged | 50.00% | 50.00% | ' | ' |
Net proceeds from sale of business segment | ' | 187.6 | 187.6 | ' |
RBC share price per share | ' | ' | $66.19 | ' |
Net pre tax gain | ' | ' | 27.2 | 19.8 |
Proceeds from sale of shares | ' | ' | 43.2 | ' |
Gain recognized | ' | ' | 1.9 | ' |
Collar value, write off | ' | ' | ' | $17.90 |
Components_of_Provision_for_In
Components of Provision for Income Taxes (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes | ' | ' | ' | ' |
Current, Federal | ' | $53.90 | $51.50 | ($28) |
Current, State | ' | 9.6 | 7.2 | -5.2 |
Current, International | ' | 19.1 | 17 | 4.9 |
Deferred, Federal | ' | -8.4 | -3.8 | 63.3 |
Deferred, State | ' | -0.5 | 4.6 | 11.9 |
Deferred, International | ' | -7 | -5.3 | 3.4 |
Provision for income taxes | $4.20 | $66.70 | $71.20 | $50.30 |
Difference_Between_Provision_F
Difference Between Provision For Income Taxes And U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes | ' | ' | ' |
Provision at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State income and franchise taxes, net of federal benefit | 2.50% | 3.30% | 3.20% |
U.S. manufacturing credit | -1.90% | -2.10% | ' |
Research tax credits | -0.80% | ' | -0.60% |
State tax credits | ' | ' | -2.30% |
Other | 0.80% | -0.20% | 0.10% |
Effective Income Tax Rate Reconciliation, Percent | 28.20% | 30.40% | 31.10% |
China | ' | ' | ' |
Income Taxes | ' | ' | ' |
International income tax rate differential | -8.10% | -5.80% | -4.90% |
Other | ' | ' | ' |
Income Taxes | ' | ' | ' |
International income tax rate differential | 0.70% | 0.20% | 0.60% |
Components_of_Earning_Before_I
Components of Earning Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes | ' | ' | ' |
United States | $151.90 | $158.60 | $117.80 |
International | 84.5 | 75.2 | 43.7 |
Earnings before provision for income taxes | $236.40 | $233.80 | $161.50 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Total taxes paid | $70.20 | $103 | $117.20 |
Undistributed earnings of foreign subsidiaries | 699.6 | ' | ' |
Undistributed foreign earnings reinvested | 428.6 | ' | ' |
Cash and cash equivalents were held by foreign subsidiaries | 487.6 | ' | ' |
Unrecognized tax benefits that would affect the effective tax rate, if recognized | 0.9 | ' | ' |
Interest and penalties accrued | 0.2 | ' | ' |
Anticipated decrease in unrecognized tax benefits | 0.1 | ' | ' |
U.S. federal | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2009 | ' | ' |
U.S. federal | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2013 | ' | ' |
State and local | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2000 | ' | ' |
State and local | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2013 | ' | ' |
Non-U.S. | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2006 | ' | ' |
Non-U.S. | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income tax examinations, years under examination | '2013 | ' | ' |
EPC | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Correction of error in calculation of taxes | ' | 6.4 | ' |
Additional income tax accrual | $53.10 | ' | ' |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences of Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Income Taxes | ' | ' | ' |
Employee benefits, Assets | $66.80 | $90.20 | ' |
Product liability and warranties, Assets | 64.5 | 57.3 | ' |
Inventories, Assets | ' | ' | ' |
Accounts receivable, Assets | 11.1 | 11.2 | ' |
Property, plant and equipment, Assets | ' | ' | ' |
Intangibles, Assets | ' | ' | ' |
Environmental, Assets | 3.2 | 3.2 | ' |
Undistributed foreign earnings, Assets | ' | ' | ' |
Tax loss and credit carryovers, Assets | 17.7 | 15.3 | ' |
All other, Assets | 2.4 | 1.5 | ' |
Valuation allowance, Assets | -9.6 | -7.4 | -8.4 |
Assets | 156.1 | 171.3 | ' |
Employee benefits, Liabilities | ' | ' | ' |
Product liability and warranties, Liabilities | ' | ' | ' |
Inventories, Liabilities | 4.7 | 2.4 | ' |
Accounts receivable, Liabilities | ' | ' | ' |
Property, plant and equipment, Liabilities | 33 | 35.7 | ' |
Intangibles, Liabilities | 40 | 32.9 | ' |
Environmental, Liabilities | ' | ' | ' |
Undistributed foreign earnings, Liabilities | 56.4 | 65.1 | ' |
Tax loss and credit carryovers, Liabilities | ' | ' | ' |
All other, Liabilities | ' | ' | ' |
Valuation allowance, Liabilities | ' | ' | ' |
All other, Liabilities | 134.1 | 136.1 | ' |
Net asset | $22 | $35.20 | ' |
Balance_Sheet_Classification_O
Balance Sheet Classification Of Deferred Tax Assets And Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Taxes | ' | ' |
Current deferred income tax assets | $40.10 | $33.20 |
Long-term deferred income tax assets | 2.9 | 8.3 |
Long-term deferred income tax liabilities | -21 | -6.3 |
Net asset | $22 | $35.20 |
Reconciliation_of_Tax_Loss_Car
Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes | ' | ' |
Net Operating Losses and Tax Credits, Beginning balance | $15.30 | $17 |
Net Operating Losses and Tax Credits, Additions | 4.1 | 2 |
Net Operating Losses and Tax Credits, Reductions | -1.7 | -3.7 |
Net Operating Losses and Tax Credits, Ending balance | 17.7 | 15.3 |
Balance at Beginning of Year | 7.4 | 8.4 |
Valuation Allowances, Additions | 2.2 | 3 |
Valuation Allowances, Reductions | ' | -4 |
Balance at End of Year | $9.60 | $7.40 |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Income Taxes | ' | ' |
Balance at January 1 | $1.80 | $1.30 |
Reductions for tax positions of prior years | -0.5 | ' |
Balance at December 31 | $1.30 | $1.30 |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Line Items] | ' | ' |
Product liability insurance for individual losses in excess of accrual amount | $125 | $125 |
Amounts in excess to be covered by third party insurance | $7.50 | $5 |
Operations_by_Segment_Addition
Operations by Segment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reporting segments | 2 | ' | ' |
Customer one | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales percentage | 14.00% | 15.00% | 16.00% |
Customer Two | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales percentage | 11.00% | 10.00% | 11.00% |
North America | Customer one | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales to a largest customer | 310.3 | 284 | 273.1 |
North America | Customer Two | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales to a largest customer | 240.6 | 194.8 | 194.7 |
Schedule_of_Operating_Earnings
Schedule of Operating Earnings (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Mar. 11, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | $558.90 | $536.20 | $549.10 | $509.60 | $524.20 | $462.30 | $484.20 | $468.60 | $2,153.80 | $1,939.30 | $1,710.50 |
Operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299.9 | 259.4 | 196.5 |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -57.8 | -16.4 | -25.7 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5.7 | -9.2 | -9.3 |
Earnings before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 236.4 | 233.8 | 161.5 |
Provision for income taxes | -4.2 | ' | ' | ' | ' | ' | ' | ' | ' | -66.7 | -71.2 | -50.3 |
Earnings from continuing operations | ' | 42.4 | 46.2 | 42.1 | 39 | 43.1 | 37 | 35 | 47.5 | 169.7 | 162.6 | 111.2 |
North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,520 | 1,430.80 | 1,289.50 |
Operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 211.9 | 199.8 | 154 |
Rest of World | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 668 | 542.5 | 455.6 |
Operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88 | 59.6 | 42.7 |
Inter-segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | -34.2 | -34 | -34.6 |
Operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.20) |
Assets_Depreciation_And_Capita
Assets, Depreciation And Capital Expenditure By Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total Assets | $2,391.50 | $2,278.80 | $2,349 |
Depreciation and amortization | 59.7 | 54.6 | 47 |
Capital expenditures | 97.7 | 69.9 | 53.5 |
North America | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total Assets | 1,298.60 | 1,306.20 | 1,319.20 |
Depreciation and amortization | 40.5 | 39.3 | 33.9 |
Capital expenditures | 38 | 24.7 | 31.6 |
Rest of World | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total Assets | 525.2 | 420.2 | 342.4 |
Depreciation and amortization | 16.8 | 14.3 | 12.4 |
Capital expenditures | 59 | 40.3 | 20.5 |
Corporate | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total Assets | 567.7 | 552.4 | 687.4 |
Depreciation and amortization | 2.4 | 1 | 0.7 |
Capital expenditures | $0.70 | $4.90 | $1.40 |
Net_Sales_and_LongLived_Assets
Net Sales and Long-Lived Assets by Geographic Location (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived Assets | $424.60 | ' | ' | ' | $375 | ' | ' | ' | $424.60 | $375 | $341.80 |
Net sales | 558.9 | 536.2 | 549.1 | 509.6 | 524.2 | 462.3 | 484.2 | 468.6 | 2,153.80 | 1,939.30 | 1,710.50 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived Assets | 238.6 | ' | ' | ' | 219.1 | ' | ' | ' | 238.6 | 219.1 | 218.2 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,335.40 | 1,241 | 1,094.30 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived Assets | 134.9 | ' | ' | ' | 99.6 | ' | ' | ' | 134.9 | 99.6 | 70.7 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 581 | 461.2 | 382.2 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived Assets | 4.7 | ' | ' | ' | 20.4 | ' | ' | ' | 4.7 | 20.4 | 20.9 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 142.5 | 150.1 | 160.2 |
Other Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived Assets | 46.4 | ' | ' | ' | 35.9 | ' | ' | ' | 46.4 | 35.9 | 32 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $94.90 | $87 | $73.80 |
Quarterly_Financial_Informatio
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $558.90 | $536.20 | $549.10 | $509.60 | $524.20 | $462.30 | $484.20 | $468.60 | $2,153.80 | $1,939.30 | $1,710.50 |
Gross profit | 199.9 | 196.6 | 198 | 179.3 | 185.6 | 156.8 | 160.5 | 149.1 | 773.8 | 652 | 512.6 |
Earnings, Continuing operations | 42.4 | 46.2 | 42.1 | 39 | 43.1 | 37 | 35 | 47.5 | 169.7 | 162.6 | 111.2 |
Earnings, Discontinued operations | ' | ' | ' | ' | -3.9 | ' | ' | ' | ' | -3.9 | 43 |
Net Earnings | $42.40 | $46.20 | $42.10 | $39 | $39.20 | $37 | $35 | $47.50 | $169.70 | $158.70 | $305.70 |
Basic earnings (loss) per share, Continuing operations | $0.46 | $0.50 | $0.45 | $0.42 | $0.47 | $0.40 | $0.38 | $0.51 | $1.84 | $1.76 | $1.20 |
Basic earnings (loss) per share, Discontinued operations | ' | ' | ' | ' | ($0.05) | ' | ' | ' | ' | ($0.04) | $2.11 |
Basic earnings (loss) per share, Net | $0.46 | $0.50 | $0.45 | $0.42 | $0.42 | $0.40 | $0.38 | $0.51 | $1.84 | $1.72 | $3.31 |
Diluted earnings (loss) per share, Continuing operations | $0.46 | $0.50 | $0.45 | $0.42 | $0.46 | $0.40 | $0.38 | $0.51 | $1.83 | $1.75 | $1.19 |
Diluted earnings (loss) per share, Discontinued operations | ' | ' | ' | ' | ($0.04) | ' | ' | ' | ' | ($0.04) | $2.09 |
Diluted earnings (loss) per share, Net | $0.46 | $0.50 | $0.45 | $0.42 | $0.42 | $0.40 | $0.38 | $0.51 | $1.83 | $1.71 | $3.28 |
Common dividends declared | $0.12 | $0.12 | $0.12 | $0.10 | $0.10 | $0.10 | $0.08 | $0.08 | ' | ' | ' |