x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2016 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________________ to __________________ |
Delaware | 62-1612879 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
100 North Point Center East, Suite 600 Alpharetta, Georgia | 30022 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common stock, par value $0.10 per share | New York Stock Exchange |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Page | |||
Part I. | |||
Item 1. | Business | ||
Item 1A. | Risk Factors | ||
Item 1B. | Unresolved Staff Comments | ||
Item 2. | Properties | ||
Item 3. | Legal Proceedings | ||
Item 4. | Mine Safety Disclosures | ||
Part II. | |||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
Item 6. | Selected Financial Data | ||
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 8. | Financial Statements and Supplementary Data | ||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | ||
Item 9A. | Controls and Procedures | ||
Item 9B. | Other Information | ||
Part III. | |||
Item 10. | Directors, Executive Officers and Corporate Governance | ||
Item 11. | Executive Compensation | ||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
Item 13. | Certain Relationships and Related Transactions and Director Independence | ||
Item 14. | Principal Accountant Fees and Services | ||
Part IV. | |||
Item 15. | Exhibits and Financial Statement Schedules | ||
Signatures | |||
Glossary of Terms |
Name | Age | Position | |||
Frédéric P. Villoutreix | 52 | Chairman of the Board and Chief Executive Officer | |||
Allison Aden | 55 | Executive Vice President, Finance and Chief Financial Officer | |||
Michel Fievez | 59 | Executive Vice President, Engineered Papers | |||
Daniel Lister | 44 | Executive Vice President, Advanced Materials & Structures | |||
Robert Cardin | 53 | Corporate Controller |
• | Foreign countries can impose significant import, export, excise and income tax and other regulatory restrictions on our business, including limitations on repatriation of profits and proceeds of liquidated assets. While we attempt to manage our operations and international movements of cash from and amongst our foreign subsidiaries in a tax-efficient manner, unanticipated international movement of funds due to unexpected changes in our business or changes in tax and associated regulatory schemes could result in a material adverse impact on our financial condition, results of operations and cash flows. |
• | We are exposed to global as well as regional macroeconomic and microeconomic factors, which can affect demand and pricing for our products, including: unsettled political and economic conditions, including as they relate to Brazil, Russia and the Ukraine; expropriation; import and export tariffs; regulatory controls and restrictions; and inflationary and deflationary economies. These factors together with risks inherent in international operations, including risks associated with any non-compliance with the U.S. Foreign Corrupt Practices Act, the 2013 Brazilian Clean Companies Act, the U.K. Bribery Act of 2010, the 2013 Russian Law on Preventing Corruption and other non-U.S. anti-bribery law compliance, could adversely affect our financial condition, results of operations and cash flows. |
• | We participate in two joint ventures and have one manufacturing facility in China. The joint ventures sell our products primarily to Chinese tobacco companies. Operations in China entail a number of risks including international and domestic political risks, the need to obtain operating and other permits from the government, adverse changes in the policies or in our relations with government-owned or run customers and the uncertainty inherent in operating within an evolving legal and economic system. There are also risks inherent with 50% joint ventures, such as a lack of ability to control, and visibility with respect to operations, customer relations and compliance practice, among others. |
• | Changes or increases in international trade sanctions or quotas may restrict or prohibit us from transacting business with established customers or securing new ones, including as to Russia and the Ukraine, which are areas where the Company has offices and/or significant customers and as to which the applicable sanctions have changed unexpectedly on a number of occasions since 2014. |
• | demonstrating to customers that the restructuring activities will not result in adverse changes in service standards or business focus; |
• | consolidating administrative infrastructure and manufacturing operations while maintaining adequate controls throughout the execution of the restructuring; |
• | preserving distribution, sales and other important relationships and resolving potential conflicts that may arise; |
• | estimating, managing and minimizing the cost of the restructuring activities; |
• | minimizing the diversion of management attention from ongoing business activities; |
• | maintaining employee morale, retaining key employees, maintaining reasonable collective bargaining agreements and avoiding strikes, work stoppages or other forms of labor unrest while implementing restructuring programs that often include reductions in the workforce; |
• | securing government approval of such plans, where necessary, and managing the litigation and associated liabilities that often are associated with restructuring actions; |
• | incurring costs associated with delays in restructuring activities caused by labor negotiations and/or governmental approvals; |
• | coordinating and combining operations, which may be subject to additional constraints imposed by collective bargaining agreements and local laws and regulations; and |
• | achieving the anticipated levels of net cost savings and efficiency as a result of the restructuring activities. |
Engineered Papers Segment Production Locations | Advanced Materials & Structures Segment Production Locations | |
Spotswood Mill | Middletown Manufacturing Site | |
Spotswood, New Jersey | Middletown, Delaware | |
Papeteries de Saint-Girons Mill | U.S. Netting Manufacturing Site* | |
Saint-Girons, France | Austin, Texas | |
PDM Industries Mill | Tubing Operations* | |
Quimperlé, France | Richland, Pennsylvania | |
Pirahy Mill | Tubing Operations* | |
Piraí, Brazil | El Cajon, California | |
Poland Mill* | Suzhou Manufacturing Site* | |
Strykow, Poland | Suzhou, China | |
Newberry Operation | Poland Manufacturing Site* | |
Newberry, South Carolina | Strykow, Poland | |
Fiber Operation | Gilberdyke Manufacturing Site | |
Manitoba, Canada | Gilberdyke, United Kingdom | |
LTR Industries Mill | Wilson Manufacturing Site* | |
Spay, France | Wilson, North Carolina | |
Ancram Mill | Argotec Manufacturing Operations* | |
Ancram, New York | Greenfield, Massachusetts | |
RTL Philippines Mill (currently marketed for sale) | ||
Sto. Tomas, Philippines | ||
* Leased properties |
High | Low | ||||||
2017 | |||||||
First Quarter (through February 23, 2017) | $ | 47.01 | $ | 40.08 | |||
2016 | |||||||
Fourth Quarter | $ | 47.00 | $ | 35.31 | |||
Third Quarter | 40.79 | 34.46 | |||||
Second Quarter | 36.19 | 30.21 | |||||
First Quarter | 42.16 | 29.02 | |||||
2015 | |||||||
Fourth Quarter | $ | 43.47 | $ | 34.07 | |||
Third Quarter | 41.00 | 32.50 | |||||
Second Quarter | 46.60 | 38.05 | |||||
First Quarter | 47.50 | 38.50 |
Issuer Purchases of Equity Securities | ||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Programs | ||||||||||||||
(# shares) | ($ in millions) | ($ in millions) | ||||||||||||||||
First Quarter 2016 | 18,379 | $ | 32.83 | — | $ | — | $ | — | ||||||||||
Second Quarter 2016 | 159 | 34.21 | — | — | — | |||||||||||||
Third Quarter 2016 | 1,001 | 37.81 | — | — | — | |||||||||||||
Fourth Quarter 2016 | ||||||||||||||||||
October 2016 | — | — | — | — | — | |||||||||||||
November 2016 | — | — | — | — | — | |||||||||||||
December 2016 | 806 | 41.14 | — | — | — | |||||||||||||
Total 2016 | 20,345 | $ | 33.42 | — | $ | — | $ | — |
For the Years Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Results of Operations | |||||||||||||||||||
Net sales | $ | 839.9 | $ | 764.1 | $ | 794.3 | $ | 772.8 | $ | 778.5 | |||||||||
Cost of products sold | 583.2 | 539.7 | 575.5 | 520.1 | 519.0 | ||||||||||||||
Gross profit | 256.7 | 224.4 | 218.8 | 252.7 | 259.5 | ||||||||||||||
Nonmanufacturing expenses | 125.0 | 106.8 | 99.6 | 86.5 | 86.4 | ||||||||||||||
Restructuring & impairment expense | 25.6 | 14.6 | 13.1 | 41.3 | 21.4 | ||||||||||||||
Operating profit | 106.1 | 103.0 | 106.1 | 124.9 | 151.7 | ||||||||||||||
Income from continuing operations | 82.8 | 90.5 | 89.7 | 78.5 | 104.1 | ||||||||||||||
(Loss) income from discontinued operations | — | (0.8 | ) | — | (2.4 | ) | (24.3 | ) | |||||||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | $ | 76.1 | $ | 79.8 | |||||||||
Net income (loss) per share- basic: | |||||||||||||||||||
Income from continuing operations | $ | 2.71 | $ | 2.97 | $ | 2.94 | $ | 2.51 | $ | 3.33 | |||||||||
(Loss) income from discontinued operations | — | (0.02 | ) | — | (0.08 | ) | (0.79 | ) | |||||||||||
Net income per share - basic | $ | 2.71 | $ | 2.95 | $ | 2.94 | $ | 2.43 | $ | 2.54 | |||||||||
Net income (loss) per share - diluted: | |||||||||||||||||||
Income from continuing operations | $ | 2.70 | $ | 2.96 | $ | 2.93 | $ | 2.49 | $ | 3.29 | |||||||||
(Loss) income from discontinued operations | — | (0.02 | ) | — | (0.07 | ) | (0.78 | ) | |||||||||||
Net income per share - diluted | $ | 2.70 | $ | 2.94 | $ | 2.93 | $ | 2.42 | $ | 2.51 | |||||||||
Cash dividends declared and paid per share | $ | 1.62 | $ | 1.54 | $ | 1.46 | $ | 1.26 | $ | 0.45 | |||||||||
EBITDA from continuing operations(1) | $ | 157.6 | $ | 162.8 | $ | 162.5 | $ | 171.7 | $ | 195.4 | |||||||||
Adjusted EBITDA from continuing operations (1) | $ | 183.2 | $ | 177.4 | $ | 177.7 | $ | 213.0 | $ | 216.8 | |||||||||
Percent of Net Sales | |||||||||||||||||||
Gross profit | 30.6 | % | 29.4 | % | 27.5 | % | 32.7 | % | 33.3 | % | |||||||||
Nonmanufacturing expenses | 14.9 | % | 14.0 | % | 12.5 | % | 11.2 | % | 11.1 | % | |||||||||
Financial Position | |||||||||||||||||||
Capital spending | $ | 27.8 | $ | 24.2 | $ | 35.1 | $ | 29.1 | $ | 27.2 | |||||||||
Depreciation and amortization | 44.5 | 41.0 | 45.1 | 37.3 | 38.5 | ||||||||||||||
Total assets | 1,173.7 | 1,290.0 | 1,185.0 | 1,224.1 | 885.7 | ||||||||||||||
Total debt | 440.4 | 571.5 | 437.9 | 382.7 | 155.0 | ||||||||||||||
Total debt to capital ratio | 46.4 | % | 55.0 | % | 47.2 | % | 43.7 | % | 23.2 | % |
(1) | Earnings before interest, taxes, depreciation and amortization ("EBITDA") from Continuing Operations is a non-GAAP financial measure that is calculated by adding interest expense, income tax provision and |
For the Years Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations | $ | 82.8 | $ | 90.5 | $ | 89.7 | $ | 78.5 | $ | 104.1 | |||||||||
Plus: Interest expense | 16.6 | 9.7 | 7.2 | 2.9 | 3.3 | ||||||||||||||
Plus: Income tax provision | 15.4 | 21.6 | 20.5 | 53.0 | 49.5 | ||||||||||||||
Plus: Depreciation and amortization | 42.8 | 41.0 | 45.1 | 37.3 | 38.5 | ||||||||||||||
EBITDA from continuing operations | 157.6 | 162.8 | 162.5 | 171.7 | 195.4 | ||||||||||||||
Plus: Restructuring and impairment expense | 25.6 | 14.6 | 13.1 | 41.3 | 21.4 | ||||||||||||||
Plus: CTS start-up expenses | — | — | 2.1 | — | — | ||||||||||||||
Adjusted EBITDA from continuing operations | $ | 183.2 | $ | 177.4 | $ | 177.7 | $ | 213.0 | $ | 216.8 |
• | Summary |
• | Recent Developments |
• | Critical Accounting Policies and Estimates |
• | Recent Accounting Pronouncements |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Other Factors Affecting Liquidity and Capital Resources |
• | Contractual Obligations |
• | Outlook |
• | Forward-Looking Statements |
For the Years Ended December 31, | |||||||||||
2016 | 2015(1) | 2014 | |||||||||
($ in millions, except per share amounts) | |||||||||||
Net sales | $ | 839.9 | $ | 764.1 | $ | 794.3 | |||||
Cost of products sold | 583.2 | 539.7 | 575.5 | ||||||||
Gross profit | 256.7 | 224.4 | 218.8 | ||||||||
Selling expense | 25.3 | 22.2 | 22.0 | ||||||||
Research expense | 17.5 | 14.0 | 15.7 | ||||||||
General expense | 82.2 | 70.6 | 61.9 | ||||||||
Total nonmanufacturing expenses | 125.0 | 106.8 | 99.6 | ||||||||
Restructuring and impairment expense | 25.6 | 14.6 | 13.1 | ||||||||
Operating profit | 106.1 | 103.0 | 106.1 | ||||||||
Interest expense | 16.6 | 9.7 | 7.2 | ||||||||
Other income (expense), net | 3.9 | 12.2 | 9.3 | ||||||||
Income from continuing operations before income taxes and income from equity affiliates | 93.4 | 105.5 | 108.2 | ||||||||
Provision for income taxes | 15.4 | 21.6 | 20.5 | ||||||||
Income from equity affiliates, net of income taxes | 4.8 | 6.6 | 2.0 | ||||||||
Income from continuing operations | 82.8 | 90.5 | 89.7 | ||||||||
(Loss) income from discontinued operations | — | (0.8 | ) | — | |||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Net income (loss) per share - basic: | |||||||||||
Income per share from continuing operations | $ | 2.71 | $ | 2.97 | $ | 2.94 | |||||
(Loss) income per share from discontinued operations | — | (0.02 | ) | — | |||||||
Net income per share - basic | $ | 2.71 | $ | 2.95 | $ | 2.94 | |||||
Net income (loss) per share - diluted: | |||||||||||
Income per share from continuing operations | $ | 2.70 | $ | 2.96 | $ | 2.93 | |||||
(Loss) income per share from discontinued operations | — | (0.02 | ) | — | |||||||
Net income per share - diluted | $ | 2.70 | $ | 2.94 | $ | 2.93 |
2016 | 2015 | Change | Percent Change | |||||||||||
Engineered Papers | $ | 559.3 | $ | 583.9 | $ | (24.6 | ) | (4.2 | )% | |||||
Advanced Materials & Structures | 280.6 | 180.2 | 100.4 | 55.7 | ||||||||||
Total | $ | 839.9 | $ | 764.1 | $ | 75.8 | 9.9 | % |
Amount | Percent | |||||
Incremental AMS segment revenue from acquisitions | $ | 106.5 | 13.9 | % | ||
Changes in currency exchange rates | 0.3 | 0.1 | ||||
Changes in royalties | (1.2 | ) | (0.2 | ) | ||
Changes in product mix and selling prices and sales volumes | (29.8 | ) | (3.9 | ) | ||
Total | $ | 75.8 | 9.9 | % |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | ||||||||||||||||
Net sales | $ | 839.9 | $ | 764.1 | $ | 75.8 | 9.9 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of products sold | 583.2 | 539.7 | 43.5 | 8.1 | 69.4 | 70.6 | ||||||||||||||
Gross profit | $ | 256.7 | $ | 224.4 | $ | 32.3 | 14.4 | % | 30.6 | % | 29.4 | % |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | ||||||||||||||||
Selling expense | $ | 25.3 | $ | 22.2 | $ | 3.1 | 14.0 | % | 3.0 | % | 2.9 | % | ||||||||
Research expense | 17.5 | 14.0 | 3.5 | 25.0 | 2.1 | 1.8 | ||||||||||||||
General expense | 82.2 | 70.6 | 11.6 | 16.4 | 9.8 | 9.2 | ||||||||||||||
Nonmanufacturing expenses | $ | 125.0 | $ | 106.8 | $ | 18.2 | 17.0 | % | 14.9 | % | 13.9 | % |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | ||||||||||||||||
Engineered Papers | $ | 4.0 | $ | 14.4 | $ | (10.4 | ) | (72.2 | )% | 0.7 | % | 2.5 | % | |||||||
Advanced Materials & Structures | 21.3 | (0.2 | ) | 21.5 | N.M. | 7.6 | (0.1 | ) | ||||||||||||
Unallocated expenses | 0.3 | 0.4 | (0.1 | ) | (25.0 | ) | ||||||||||||||
Total | $ | 25.6 | $ | 14.6 | $ | 11.0 | 75.3 | % | 3.0 | % | 1.9 | % |
Percent Change | Return on Net Sales | |||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | ||||||||||||||||
Engineered Papers | $ | 138.0 | $ | 121.5 | $ | 16.5 | 13.6 | % | 24.7 | % | 20.8 | % | ||||||||
Advanced Materials & Structures | 9.0 | 16.7 | (7.7 | ) | (46.1 | ) | 3.2 | 9.3 | ||||||||||||
Unallocated expenses | (40.9 | ) | (35.2 | ) | (5.7 | ) | 16.2 | |||||||||||||
Total | $ | 106.1 | $ | 103.0 | $ | 3.1 | 3.0 | % | 12.6 | % | 13.5 | % |
2015 | 2014 | Change | Percent Change | |||||||||||
Engineered Papers | $ | 583.9 | $ | 666.9 | $ | (83.0 | ) | (12.4 | )% | |||||
Advanced Materials & Structures | 180.2 | 127.4 | 52.8 | 41.4 | ||||||||||
Total | $ | 764.1 | $ | 794.3 | $ | (30.2 | ) | (3.8 | )% |
Amount | Percent | |||||
Changes in currency exchange rates | $ | (73.6 | ) | (9.3 | )% | |
Changes in product mix and selling prices and sales volumes | (9.2 | ) | (1.2 | ) | ||
Changes in royalties | (1.5 | ) | (0.2 | ) | ||
Incremental AMS segment revenue from acquisitions | 53.8 | 6.8 | ||||
Changes in freight and discounts, returns & allowances | 0.3 | 0.1 | ||||
Total | $ | (30.2 | ) | (3.8 | )% |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | ||||||||||||||||
Net sales | $ | 764.1 | $ | 794.3 | $ | (30.2 | ) | (3.8 | )% | 100.0 | % | 100.0 | % | |||||||
Cost of products sold | 539.7 | 575.5 | (35.8 | ) | (6.2 | ) | 70.6 | 72.5 | ||||||||||||
Gross profit | $ | 224.4 | $ | 218.8 | $ | 5.6 | 2.6 | % | 29.4 | % | 27.5 | % |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | ||||||||||||||||
Selling expense | $ | 22.2 | $ | 22.0 | $ | 0.2 | 0.9 | % | 2.9 | % | 2.8 | % | ||||||||
Research expense | 14.0 | 15.7 | (1.7 | ) | (10.8 | ) | 1.8 | 2.0 | ||||||||||||
General expense | 70.6 | 61.9 | 8.7 | 14.1 | 9.2 | 7.8 | ||||||||||||||
Nonmanufacturing expenses | $ | 106.8 | $ | 99.6 | $ | 7.2 | 7.2 | % | 13.9 | % | 12.6 | % |
Percent Change | Percent of Net Sales | |||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | ||||||||||||||||
Engineered Papers | $ | 14.4 | $ | 11.3 | $ | 3.1 | 27.4 | % | 2.5 | % | 1.7 | % | ||||||||
Advanced Materials & Structures | (0.2 | ) | 0.4 | (0.6 | ) | (150.0 | ) | (0.1 | ) | 0.3 | ||||||||||
Unallocated expenses | 0.4 | 1.4 | (1.0 | ) | (71.4 | ) | ||||||||||||||
Total | $ | 14.6 | $ | 13.1 | $ | 1.5 | 11.5 | % | 1.9 | % | 1.6 | % |
Percent Change | Return on Net Sales | |||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | ||||||||||||||||
Engineered Papers | $ | 121.5 | $ | 124.5 | $ | (3.0 | ) | (2.4 | )% | 20.8 | % | 18.7 | % | |||||||
Advanced Materials & Structures | 16.7 | 10.2 | 6.5 | 63.7 | 9.3 | 8.0 | ||||||||||||||
Unallocated expenses | (35.2 | ) | (28.6 | ) | (6.6 | ) | 23.1 | |||||||||||||
Total | $ | 103.0 | $ | 106.1 | $ | (3.1 | ) | (2.9 | )% | 13.5 | % | 13.4 | % |
• | Reinvesting capital in our businesses through a disciplined approach to meet global demand for value-adding solutions; |
• | Returning at least one-third of annual free cash flow to stockholders via dividends and share repurchase programs; and |
• | Retaining flexibility to execute growth opportunities in current and adjacent industries. |
Cash Flows from Operating Activities ($ in millions) | For the Years Ended December 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Less: (Loss) income from discontinued operations | — | (0.8 | ) | — | |||||||
Income from continuing operations | 82.8 | 90.5 | 89.7 | ||||||||
Non-cash items included in net income: | |||||||||||
Depreciation and amortization | 44.5 | 41.0 | 45.1 | ||||||||
Impairment | 21.3 | 6.7 | — | ||||||||
Deferred income tax provision (benefit) | (13.5 | ) | (6.7 | ) | 3.3 | ||||||
Pension and other postretirement benefits | 3.8 | 4.2 | 1.2 | ||||||||
Stock-based compensation | 5.8 | 3.5 | 5.9 | ||||||||
Income from equity affiliates | (4.8 | ) | (6.6 | ) | (2.0 | ) | |||||
Gain on sale of intangible assets | (1.8 | ) | (4.3 | ) | — | ||||||
Excess tax benefits of stock-based awards | 0.2 | (0.5 | ) | (0.6 | ) | ||||||
Cash dividends received from equity affiliates | 3.0 | 3.9 | 4.4 | ||||||||
Other items | (0.6 | ) | 0.1 | 0.8 | |||||||
Net changes in operating working capital | (11.0 | ) | 12.8 | 18.6 | |||||||
Net cash provided (used) by operating activities of: | |||||||||||
Continuing operations | 129.7 | 144.6 | 166.4 | ||||||||
Discontinued operations | — | 0.1 | (0.5 | ) | |||||||
Cash provided by operations | $ | 129.7 | $ | 144.7 | $ | 165.9 |
Operating Working Capital ($ in millions) | For the Years Ended December 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Changes in operating working capital | |||||||||||
Accounts receivable | $ | 3.1 | $ | (18.0 | ) | $ | 13.3 | ||||
Inventories | (6.9 | ) | 1.3 | 14.9 | |||||||
Prepaid expenses | (0.5 | ) | 1.1 | (0.6 | ) | ||||||
Accounts payable | (3.7 | ) | 6.5 | 3.1 | |||||||
Accrued expenses | 0.8 | 3.7 | (8.0 | ) | |||||||
Accrued income taxes | (3.8 | ) | 18.2 | (4.1 | ) | ||||||
Net changes in operating working capital | $ | (11.0 | ) | $ | 12.8 | $ | 18.6 |
Cash Flows from Investing Activities ($ in millions) | For the Years Ended December 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Capital spending | $ | (27.8 | ) | $ | (24.2 | ) | $ | (35.1 | ) | ||
Capitalized software costs | (2.8 | ) | (0.9 | ) | (1.0 | ) | |||||
Acquisitions, net of cash acquired | — | (280.6 | ) | (32.6 | ) | ||||||
Investment in equity affiliates | — | — | (8.8 | ) | |||||||
Other | 8.2 | (8.0 | ) | 3.0 | |||||||
Cash used for investing | $ | (22.4 | ) | $ | (313.7 | ) | $ | (74.5 | ) |
Cash Flows from Financing Activities ($ in millions) | For the Years Ended December 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Cash dividends paid to SWM stockholders | $ | (49.4 | ) | $ | (46.9 | ) | $ | (44.5 | ) | ||
Net (repayments on) proceeds from borrowings | (135.4 | ) | 149.1 | 57.3 | |||||||
Payments for debt issuance costs | — | (7.4 | ) | — | |||||||
Purchases of common stock | (0.7 | ) | (2.9 | ) | (52.5 | ) | |||||
Excess tax benefits of stock-based awards | (0.2 | ) | 0.5 | 0.6 | |||||||
Cash (used in) provided by financing | $ | (185.7 | ) | $ | 92.4 | $ | (39.1 | ) |
Debt Instruments and Related Covenants ($ in millions) | For the Years Ended December 31, | ||||||||||
2016 | 2015 | 2014 | |||||||||
Changes in short-term debt | $ | — | $ | (0.4 | ) | $ | (0.4 | ) | |||
Proceeds from issuances of long-term debt | 35.6 | 488.2 | 228.3 | ||||||||
Payments on long-term debt | (171.0 | ) | (338.7 | ) | (170.6 | ) | |||||
Net (repayments on) proceeds from borrowings | $ | (135.4 | ) | $ | 149.1 | $ | 57.3 |
Payments due for the years ended | |||||||||||||||||||||||||||
Contractual Obligations | Total | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | ||||||||||||||||||||
Current debt (1) | $ | 4.7 | $ | 4.7 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Long-term debt (2) | 442.7 | — | 4.8 | 4.8 | 194.7 | 4.0 | 234.4 | ||||||||||||||||||||
Debt interest (3) | 57.8 | 11.8 | 11.7 | 11.6 | 10.7 | 6.6 | 5.4 | ||||||||||||||||||||
Restructuring obligations (4) | 4.3 | 2.3 | 1.3 | 0.6 | 0.1 | — | — | ||||||||||||||||||||
Minimum operating lease payments (5) | 30.1 | 4.4 | 4.0 | 3.3 | 3.2 | 3.2 | 12.0 | ||||||||||||||||||||
Purchase obligations - raw materials (6) | 24.7 | 14.3 | 2.3 | 1.7 | 1.7 | 1.8 | 2.9 | ||||||||||||||||||||
Purchase obligations - energy (7) | 33.4 | 20.2 | 7.8 | 3.3 | 2.1 | — | — | ||||||||||||||||||||
Other long-term liabilities (8) (9) (10) (11) | 0.5 | 0.5 | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 598.2 | $ | 58.2 | $ | 31.9 | $ | 25.3 | $ | 212.5 | $ | 15.6 | $ | 254.7 |
(1) | Current debt includes borrowings against bank overdraft facilities and debt issuance costs of $1.7 million; see Note 12, Debt. of the Notes to Consolidated Financial Statements. |
(2) | Long-term debt includes debt issuance costs of $5.3 million; see additional information regarding long-term debt in Note 12. Debt, of the Notes to Consolidated Financial Statements. |
(3) | The amounts reflected in debt interest are based upon the short-term and long-term scheduled principal maturities and interest rates in effect as of December 31, 2016. Where specific maturities are not stated, such as for an overdraft line-of-credit, a repayment date coinciding with the end of the year was used for purposes of these calculations. Since our debt is largely variable interest rate debt, applicable market interest rates were assumed to be the same as at December 31, 2016 for purposes of these calculations. With respect to our variable-rate debt outstanding at December 31, 2016, a 100 basis point increase in interest rates would increase our debt interest obligation by $4.4 million in 2017. For more information regarding our outstanding debt and associated interest rates, see Note 12. Debt, of the Notes to Consolidated Financial Statements. |
(4) | Restructuring obligations are more fully discussed in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Recent Developments and Note 11. Restructuring and Impairment Activities, of the Notes to Consolidated Financial Statements. |
(5) | Minimum operating lease payments relate to our future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2016. |
(6) | Purchase obligations for raw materials include our calcium carbonate purchase agreement at our mill in Quimperlé, France, in which a vendor operates an on-site calcium carbonate plant and our mill has minimum purchase quantities. See Note 18. Commitments and Contingencies, of the Notes to Consolidated Financial Statements for additional information. |
(7) | Purchase obligations for energy include obligations under agreements with (1) an energy cogeneration supplier at our mills in Quimperlé, France and Spay, France, to supply steam for which our mills have minimum purchase commitments, (2) a natural gas supplier to supply and distribute 100% of the natural gas needs of our Quimperlé, France mill and (3) an energy supplier to supply a constant supply of electricity for our Pirahy mill in Brazil. See Note 18. Commitments and Contingencies, of the Notes to Consolidated Financial Statements for additional information. |
(8) | Other long-term liabilities exclude $2.4 million of unrecognized tax benefits associated with uncertain tax positions for which there is no contractual obligation. We had no other long-term liabilities as defined for purposes of this disclosure by the SEC as of December 31, 2016. |
(9) | Other long-term liabilities do not include any amounts for our pension obligations. The pension obligations are funded by our separate pension trusts, which held $125.0 million in assets at December 31, 2016. The combined projected benefit obligation ("PBO") of our U.S. and French pension plans was underfunded by $30.6 million and $30.5 million as of December 31, 2016 and 2015, respectively. We make contributions to our pension trusts based on many factors including regulatory guidelines, investment returns of the trusts and availability of cash for pension contributions versus other priorities. We were not required to make contributions to our U.S. and French pension plans during 2016. We expect 2017 funding to be in compliance with the Pension Protection Act of 2006. For information regarding our long-term pension obligations and trust assets, see Note 16. Postretirement and Other Benefits, of the Notes to Consolidated Financial Statements. |
(10) | Other long-term liabilities do not include any amounts for our postretirement healthcare and life insurance benefits. Such payments are dependent upon our retirees incurring costs and filing claims; therefore, future payments are uncertain. Our net payments under these plans were approximately $0.4 million and $0.6 million in the years ended December 31, 2016 and 2015, respectively. Based on this past experience, we currently expect our share of the net payments to be less than $1.0 million during 2017 for these benefits. For more information regarding our retiree healthcare and life insurance benefit obligations, see Note 16. Postretirement and Other Benefits, of the Notes to Consolidated Financial Statements. |
(11) | Other long-term liabilities relate to contractual commitments for capital projects, primarily construction of a new DelStar facility in China. |
• | Changes in sales or production volumes, pricing or manufacturing costs of reconstituted tobacco products, cigarette paper (including for lower ignition propensity cigarettes), filtration-related products due to changing customer demands, new technologies such as e-cigarettes, inventory adjustments and rebalancings, competition or otherwise; |
• | Loss of one or more significant customers, or changes in their cigarette blending approaches; |
• | New reports as to the effect of smoking on human health or the environment; |
• | Risks associated with the implementation of our strategic growth initiatives, including diversification, and the Company's understanding of, and entry into, new industries and technologies; |
• | Changes in the source and intensity of competition in our market segments, including risk from lower cost virgin tobacco leaf or other, cheaper, cigarette filters; |
• | Our ability to attract and retain key personnel due to our prior restructuring actions, the tobacco industry in which we operate or otherwise; |
• | Weather conditions, including potential impacts, if any, from climate change, known and unknown, seasonality factors that affect the demand and price for virgin tobacco leaf and natural disasters or unusual weather events; |
• | Increases in commodity prices and lack of availability of such commodities, including energy, wood pulp and resins, could impact the profitability of our products; |
• | Increases in operating costs due to inflation or otherwise, such as labor expense, compensation and benefits costs, including costs related to the comprehensive health care reform law enacted in the U.S. in 2010; |
• | Employee retention and labor shortages; |
• | Changes in employment, wage and hour laws and regulations in the U.S., France and elsewhere, including loi de Securisation de l'emploi, unionization rules and regulations by the National Labor Relations Board, equal pay initiatives, additional anti-discrimination rules or tests and different interpretations of exemptions from overtime laws; |
• | Labor disruptions, strikes, stoppages, or other disruptions at our facilities; |
• | Existing and future governmental regulation and the enforcement thereof, including regulation relating to the tobacco industry, taxation and the environment; |
• | Changes in general economic, financial and credit conditions in the U.S., Europe and elsewhere, including the impact thereof on currency (including any weakening of the euro and Real) and on interest rates; |
• | Changes in the manner in which we finance our debt and future capital needs, including potential acquisitions; |
• | The success of, and costs associated with, our current or future restructuring initiatives, including the granting of any needed governmental approvals and the occurrence of work stoppages or other labor disruptions; |
• | Changes in the discount rates, revenue growth, cash flow growth rates or other assumptions used by the Company in its assessment for impairment of assets and adverse economic conditions or other factors that would result in significant impairment charges; |
• | The failure of one or more material suppliers, including energy, resin and pulp suppliers, to supply materials as needed to maintain our product plans and cost structure; |
• | International conflicts and disputes (for example, relating to Russia and to the Ukraine), including their impact on our sales and the adoption of new LIP regulations; |
• | The pace and extent of further international adoption of LIP cigarette standards and the nature of standards so adopted; |
• | Risks associated with our 50%-owned, non-U.S. joint ventures relating to control and decision-making, compliance, transparency and customer relations, among others; |
• | A failure in our risk management and/or currency or interest rate swaps and hedging programs, including the failures of any insurance company or counterparty; |
• | The number, type, outcomes (by judgment or settlement) and costs of legal, tax, regulatory or administrative proceedings, litigation and/or amnesty programs, including those in Brazil; |
• | The outcome and cost of LIP intellectual property litigation and European Patent Office opposition proceedings and the risk of eventual loss of our technological advantages including expiration of patents and ongoing protection of our proprietary trade secrets, or emergence of new disruptive technologies; |
• | Risks associated with acquisitions or other strategic transactions, including acquired liabilities and restrictions, retaining customers from businesses acquired, achieving any expected results or synergies from acquired businesses, complying with new regulatory frameworks, difficulties in integrating acquired businesses or implementing strategic transactions generally and risks associated with international acquisition transactions, including in countries where we do not currently have a material presence; |
• | Risks associated with dispositions, including post-closing claims being made against us, disruption to our other businesses during a sale process or thereafter, credit risks associated with any buyer of such disposed assets and our ability to collect funds due from any such buyer; |
• | Risks associated with our global asset realignment initiatives, including: changes in law, treaties, interpretations or regulatory determinations; audits made by applicable regulatory authorities and our auditor; and our ability to operate our business in a manner consistent with the regulatory requirements for such realignment; |
• | Increased taxation on tobacco-related products; |
• | Costs and timing of implementation of any upgrades to our information technology systems; |
• | Failure by us to comply with any privacy or data security laws or to protect against theft of customer, employee and corporate sensitive information; and |
• | Other factors described elsewhere in this document and from time to time in documents that we file with the SEC. |
Page | |
Consolidated Financial Statements | |
Reports of Independent Registered Public Accounting Firm |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net sales | $ | 839.9 | $ | 764.1 | $ | 794.3 | |||||
Cost of products sold | 583.2 | 539.7 | 575.5 | ||||||||
Gross profit | 256.7 | 224.4 | 218.8 | ||||||||
Selling expense | 25.3 | 22.2 | 22.0 | ||||||||
Research expense | 17.5 | 14.0 | 15.7 | ||||||||
General expense | 82.2 | 70.6 | 61.9 | ||||||||
Total nonmanufacturing expenses | 125.0 | 106.8 | 99.6 | ||||||||
Restructuring and impairment expense | 25.6 | 14.6 | 13.1 | ||||||||
Operating profit | 106.1 | 103.0 | 106.1 | ||||||||
Interest expense | 16.6 | 9.7 | 7.2 | ||||||||
Other income, net | 3.9 | 12.2 | 9.3 | ||||||||
Income from continuing operations before income taxes and income from equity affiliates | 93.4 | 105.5 | 108.2 | ||||||||
Provision for income taxes | 15.4 | 21.6 | 20.5 | ||||||||
Income from equity affiliates, net of income taxes | 4.8 | 6.6 | 2.0 | ||||||||
Income from continuing operations | 82.8 | 90.5 | 89.7 | ||||||||
Loss from discontinued operations | — | (0.8 | ) | — | |||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Net income (loss) per share - basic: | |||||||||||
Income per share from continuing operations | $ | 2.71 | $ | 2.97 | $ | 2.94 | |||||
Loss per share from discontinued operations | — | (0.02 | ) | — | |||||||
Net income per share – basic | $ | 2.71 | $ | 2.95 | $ | 2.94 | |||||
Net income (loss) per share – diluted: | |||||||||||
Income per share from continuing operations | $ | 2.70 | $ | 2.96 | $ | 2.93 | |||||
Loss per share from discontinued operations | — | (0.02 | ) | — | |||||||
Net income per share – diluted | $ | 2.70 | $ | 2.94 | $ | 2.93 | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 30,310,900 | 30,251,400 | 30,238,000 | ||||||||
Diluted | 30,463,400 | 30,374,300 | 30,356,500 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (16.7 | ) | (54.4 | ) | (63.0 | ) | |||||
Unrealized gains (losses) on derivative instruments | 13.2 | (24.9 | ) | (4.8 | ) | ||||||
Less: Reclassification adjustment for losses on derivative instruments included in net income | 6.5 | 11.6 | 4.6 | ||||||||
Net loss from postretirement benefit plans | (4.3 | ) | (0.8 | ) | (9.8 | ) | |||||
Less: Amortization of postretirement benefit plans' costs included in net periodic benefit cost | 3.4 | 3.6 | 1.5 | ||||||||
Other comprehensive income (loss) | 2.1 | (64.9 | ) | (71.5 | ) | ||||||
Comprehensive income | $ | 84.9 | $ | 24.8 | $ | 18.2 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 107.4 | $ | 186.5 | |||
Accounts receivable, net | 115.1 | 119.4 | |||||
Inventories | 119.4 | 112.4 | |||||
Assets held for sale | 17.3 | 21.9 | |||||
Other current assets | 5.1 | 4.6 | |||||
Total current assets | 364.3 | 444.8 | |||||
Property, plant and equipment, net | 307.4 | 308.1 | |||||
Deferred income tax benefits | 3.7 | 0.1 | |||||
Investment in equity affiliates | 63.8 | 67.5 | |||||
Goodwill | 229.5 | 233.3 | |||||
Intangible assets | 177.5 | 213.9 | |||||
Other assets | 27.5 | 22.3 | |||||
Total assets | $ | 1,173.7 | $ | 1,290.0 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current debt | $ | 3.0 | $ | 3.3 | |||
Accounts payable | 50.3 | 49.0 | |||||
Income taxes payable | 5.3 | 5.3 | |||||
Accrued expenses | 77.2 | 85.5 | |||||
Total current liabilities | 135.8 | 143.1 | |||||
Long-term debt | 437.4 | 568.2 | |||||
Pension and other postretirement benefits | 33.1 | 33.5 | |||||
Deferred income tax liabilities | 29.8 | 45.3 | |||||
Other liabilities | 29.3 | 32.0 | |||||
Total liabilities | 665.4 | 822.1 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.10 par value per share; 10,000,000 shares authorized; none issued or outstanding | — | — | |||||
Common stock, $0.10 par value per share; 100,000,000 shares authorized; 30,544,494 and 30,474,149 shares issued and outstanding at December 31, 2016 and 2015, respectively | 3.1 | 3.0 | |||||
Additional paid-in-capital | 59.2 | 53.7 | |||||
Retained earnings | 585.3 | 552.6 | |||||
Accumulated other comprehensive loss | (139.3 | ) | (141.4 | ) | |||
Total stockholders' equity | 508.3 | 467.9 | |||||
Total liabilities and stockholders' equity | $ | 1,173.7 | $ | 1,290.0 |
Common Stock Issued | ||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, December 31, 2013 | 31,423,427 | $ | 3.1 | $ | 43.3 | $ | 520.0 | $ | (5.0 | ) | $ | 561.4 | ||||||||||
Net income | 89.7 | 89.7 | ||||||||||||||||||||
Other comprehensive loss, net of tax | (71.5 | ) | (71.5 | ) | ||||||||||||||||||
Dividends declared ($1.46 per share) | (44.5 | ) | (44.5 | ) | ||||||||||||||||||
Restricted stock issuances, net | 201,005 | — | — | — | ||||||||||||||||||
Stock-based employee compensation expense | 5.8 | 5.8 | ||||||||||||||||||||
Excess tax benefits of stock-based employee compensation | 0.6 | 0.6 | ||||||||||||||||||||
Stock issued to directors as compensation | 2,902 | — | 0.1 | 0.1 | ||||||||||||||||||
Purchases and cancellation of common stock | (1,161,812 | ) | (0.1 | ) | (52.5 | ) | (52.6 | ) | ||||||||||||||
Balance, December 31, 2014 | 30,465,522 | $ | 3.0 | $ | 49.8 | $ | 512.7 | $ | (76.5 | ) | $ | 489.0 | ||||||||||
Net income | 89.7 | 89.7 | ||||||||||||||||||||
Other comprehensive loss, net of tax | (64.9 | ) | (64.9 | ) | ||||||||||||||||||
Dividends declared ($1.54 per share) | (46.9 | ) | (46.9 | ) | ||||||||||||||||||
Restricted stock issuances, net | 68,264 | — | — | — | ||||||||||||||||||
Stock-based employee compensation expense | 3.3 | 3.3 | ||||||||||||||||||||
Excess tax benefits of stock-based employee compensation | 0.5 | 0.5 | ||||||||||||||||||||
Stock issued to directors as compensation | 3,728 | — | 0.1 | 0.1 | ||||||||||||||||||
Purchases and cancellation of common stock | (63,365 | ) | — | (2.9 | ) | (2.9 | ) | |||||||||||||||
Balance, December 31, 2015 | 30,474,149 | $ | 3.0 | $ | 53.7 | $ | 552.6 | $ | (141.4 | ) | $ | 467.9 | ||||||||||
Net income | 82.8 | 82.8 | ||||||||||||||||||||
Other comprehensive income, net of tax | 2.1 | 2.1 | ||||||||||||||||||||
Dividends declared ($1.62 per share) | (49.4 | ) | (49.4 | ) | ||||||||||||||||||
Restricted stock issuances, net | 84,105 | 0.1 | — | 0.1 | ||||||||||||||||||
Stock-based employee compensation expense | 5.5 | 5.5 | ||||||||||||||||||||
Excess tax deficit of stock-based employee compensation | (0.2 | ) | (0.2 | ) | ||||||||||||||||||
Stock issued to directors as compensation | 6,585 | — | 0.2 | 0.2 | ||||||||||||||||||
Purchases and cancellation of common stock | (20,345 | ) | — | (0.7 | ) | (0.7 | ) | |||||||||||||||
Balance, December 31, 2016 | 30,544,494 | $ | 3.1 | $ | 59.2 | $ | 585.3 | $ | (139.3 | ) | $ | 508.3 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Operations | |||||||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Less: Loss from discontinued operations | — | (0.8 | ) | — | |||||||
Income from continuing operations | 82.8 | 90.5 | 89.7 | ||||||||
Non-cash items included in net income: | |||||||||||
Depreciation and amortization | 44.5 | 41.0 | 45.1 | ||||||||
Impairment | 21.3 | 6.7 | — | ||||||||
Deferred income tax (benefit) provision | (13.5 | ) | (6.7 | ) | 3.3 | ||||||
Pension and other postretirement benefits | 3.8 | 4.2 | 1.2 | ||||||||
Stock-based compensation | 5.8 | 3.5 | 5.9 | ||||||||
Income from equity affiliates | (4.8 | ) | (6.6 | ) | (2.0 | ) | |||||
Gain on sale of intangible assets | (1.8 | ) | (4.3 | ) | — | ||||||
Excess tax deficit (benefit) of stock-based awards | 0.2 | (0.5 | ) | (0.6 | ) | ||||||
Cash dividends received from equity affiliates | 3.0 | 3.9 | 4.4 | ||||||||
Other items | (0.6 | ) | 0.1 | 0.8 | |||||||
Changes in operating working capital: | |||||||||||
Accounts receivable | 3.1 | (18.0 | ) | 13.3 | |||||||
Inventories | (6.9 | ) | 1.3 | 14.9 | |||||||
Prepaid expenses | (0.5 | ) | 1.1 | (0.6 | ) | ||||||
Accounts payable | (3.7 | ) | 6.5 | 3.1 | |||||||
Accrued expenses | 0.8 | 3.7 | (8.0 | ) | |||||||
Accrued income taxes | (3.8 | ) | 18.2 | (4.1 | ) | ||||||
Net changes in operating working capital | (11.0 | ) | 12.8 | 18.6 | |||||||
Net cash provided by (used in) operating activities of: | |||||||||||
- Continuing operations | 129.7 | 144.6 | 166.4 | ||||||||
- Discontinued operations | — | 0.1 | (0.5 | ) | |||||||
Cash provided by operations | 129.7 | 144.7 | 165.9 | ||||||||
Investing | |||||||||||
Capital spending | (27.8 | ) | (24.2 | ) | (35.1 | ) | |||||
Capitalized software costs | (2.8 | ) | (0.9 | ) | (1.0 | ) | |||||
Acquisitions, net of cash acquired | — | (280.6 | ) | (32.6 | ) | ||||||
Investment in equity affiliates | — | — | (8.8 | ) | |||||||
Other investing | 8.2 | (8.0 | ) | 3.0 | |||||||
Cash used for investing | (22.4 | ) | (313.7 | ) | (74.5 | ) | |||||
Financing | |||||||||||
Cash dividends paid to SWM stockholders | (49.4 | ) | (46.9 | ) | (44.5 | ) | |||||
Changes in short-term debt | — | (0.4 | ) | (0.4 | ) | ||||||
Proceeds from issuances of long-term debt | 35.6 | 488.2 | 228.3 | ||||||||
Payments on long-term debt | (171.0 | ) | (338.7 | ) | (170.6 | ) | |||||
Payments for debt issuance costs | — | (7.4 | ) | — | |||||||
Purchases of common stock | (0.7 | ) | (2.9 | ) | (52.5 | ) | |||||
Excess tax (deficit) benefit of stock-based awards | (0.2 | ) | 0.5 | 0.6 | |||||||
Cash (used in) provided by financing | (185.7 | ) | 92.4 | (39.1 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (0.7 | ) | (27.2 | ) | (34.0 | ) | |||||
(Decrease) increase in cash and cash equivalents | (79.1 | ) | (103.8 | ) | 18.3 | ||||||
Cash and cash equivalents at beginning of period | 186.5 | 290.3 | 272.0 | ||||||||
Cash and cash equivalents at end of period | $ | 107.4 | $ | 186.5 | $ | 290.3 |
December 31, | |||||||
2016 | 2015 | ||||||
Accumulated pension and OPEB liability adjustments, net of income tax impact of $17.6 million and $21.9 million at December 31, 2016 and 2015, respectively | $ | (36.5 | ) | $ | (35.6 | ) | |
Accumulated unrealized loss on derivative instruments, net of income tax impact of $(3.0) million and $0.3 million at December 31, 2016 and 2015, respectively | (1.9 | ) | (21.6 | ) | |||
Accumulated unrealized foreign currency translation adjustments | (100.9 | ) | (84.2 | ) | |||
Accumulated other comprehensive loss | $ | (139.3 | ) | $ | (141.4 | ) |
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||
Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||
Pension and OPEB liability adjustments | $ | 3.4 | $ | (4.3 | ) | $ | (0.9 | ) | $ | 1.9 | $ | 0.9 | $ | 2.8 | $ | (12.7 | ) | $ | 4.4 | $ | (8.3 | ) | |||||||||||||
Unrealized loss on derivative instruments | 23.0 | (3.3 | ) | 19.7 | (13.6 | ) | 0.3 | (13.3 | ) | (0.4 | ) | 0.2 | (0.2 | ) | |||||||||||||||||||||
Unrealized foreign currency translation adjustments | (16.7 | ) | — | (16.7 | ) | (54.4 | ) | — | (54.4 | ) | (63.0 | ) | — | (63.0 | ) | ||||||||||||||||||||
Total | $ | 9.7 | $ | (7.6 | ) | $ | 2.1 | $ | (66.1 | ) | $ | 1.2 | $ | (64.9 | ) | $ | (76.1 | ) | $ | 4.6 | $ | (71.5 | ) |
Fair Value as of October 28, 2015 | |||
Cash and cash equivalents | $ | 2.7 | |
Accounts receivable | 16.1 | ||
Inventory | 16.3 | ||
Other current assets | 0.1 | ||
Property, plant and equipment | 15.9 | ||
Other noncurrent assets | 0.9 | ||
Identifiable intangible assets | 130.5 | ||
Total assets | 182.5 | ||
Accounts payable | 4.6 | ||
Accrued expenses | 4.5 | ||
Net assets acquired | 173.4 | ||
Goodwill | 109.3 | ||
Cash paid | $ | 282.7 |
Fair Value as of October 28, 2015 | Weighted-Average Amortization Period (Years) | ||||
Amortizable intangible assets: | |||||
Customer relationships | 115.9 | 15 | |||
Non-competition agreements | 1.7 | 4 | |||
Indefinite-lived intangible assets: | |||||
Trade names | 12.9 | Indefinite | |||
Total | $ | 130.5 |
Net Sales | Income from Continuing Operations | |||||||
Actual from October 28, 2015 - December 31, 2015 | $ | 22.3 | $ | 0.9 | ||||
2015 Supplemental Pro Forma from January 1, 2015 - December 31, 2015 | 859.7 | 90.2 | ||||||
2014 Supplemental Pro Forma from January 1, 2014 - December 31, 2014 | 896.2 | 90.7 |
December 31, 2016 | December 31, 2015 | ||||||
Assets of discontinued operations: | |||||||
Current assets | $ | 1.0 | $ | 1.1 | |||
Other assets | 2.5 | 2.6 | |||||
Liabilities of discontinued operations: | |||||||
Current liabilities | 0.1 | 0.2 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net sales | $ | — | $ | — | $ | — | |||||
Restructuring and impairment expense | — | — | — | ||||||||
Other income (expense) | — | (0.7 | ) | — | |||||||
Loss from discontinued operations before income taxes | — | (0.7 | ) | — | |||||||
Income tax (provision) benefit | — | (0.1 | ) | — | |||||||
Loss from discontinued operations | — | (0.8 | ) | — |
December 31, | |||||||
2016 | 2015 | ||||||
Trade receivables | $ | 98.2 | $ | 97.7 | |||
Business tax credits, including VAT | 3.1 | 3.7 | |||||
Hedge contracts receivable | 1.0 | 0.8 | |||||
Other receivables | 13.6 | 17.6 | |||||
Less allowance for doubtful accounts and sales discounts | (0.8 | ) | (0.4 | ) | |||
Total accounts receivable | $ | 115.1 | $ | 119.4 |
December 31, | |||||||
2016 | 2015 | ||||||
Raw materials | $ | 40.9 | $ | 45.2 | |||
Work in process | 23.9 | 17.3 | |||||
Finished goods | 44.9 | 36.1 | |||||
Supplies and other | 9.7 | 13.8 | |||||
Total | $ | 119.4 | $ | 112.4 |
December 31, | |||||||
2016 | 2015 | ||||||
Land and improvements | $ | 11.2 | $ | 11.5 | |||
Buildings and improvements (20 to 40 years or remaining life of relevant lease) | 118.5 | 117.5 | |||||
Machinery and equipment (5 to 20 years) | 526.1 | 513.0 | |||||
Construction in progress | 28.3 | 20.8 | |||||
Gross property, plant and equipment | 684.1 | 662.8 | |||||
Less: Accumulated depreciation | 376.7 | 354.7 | |||||
Property, plant and equipment, net | $ | 307.4 | $ | 308.1 |
Engineered Papers | Advanced Materials & Structures | Total | |||||||||
Goodwill as of December 31, 2014 | $ | 5.3 | $ | 120.8 | $ | 126.1 | |||||
Goodwill acquired during the year | — | 109.5 | 109.5 | ||||||||
Foreign currency translation adjustments | (0.5 | ) | (1.8 | ) | (2.3 | ) | |||||
Goodwill as of December 31, 2015 | 4.8 | 228.5 | 233.3 | ||||||||
Goodwill adjusted during the year | — | (0.2 | ) | (0.2 | ) | ||||||
Foreign currency translation adjustments | (0.1 | ) | (3.5 | ) | (3.6 | ) | |||||
Goodwill as of December 31, 2016 | $ | 4.7 | $ | 224.8 | $ | 229.5 |
December 31, 2016 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairments | Foreign Exchange | Net Carrying Amount | |||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||
Engineered Papers | |||||||||||||||||||
Customer-related intangibles | $ | 10.0 | $ | 10.0 | $ | — | $ | — | $ | — | |||||||||
Advanced Materials & Structures | |||||||||||||||||||
Customer relationships | 168.3 | 15.9 | — | 3.1 | 149.3 | ||||||||||||||
Developed technology | 15.9 | 3.6 | — | 0.4 | 11.9 | ||||||||||||||
Customer contracts | 0.9 | 0.9 | — | — | — | ||||||||||||||
Trade names | 21.8 | — | 20.7 | 0.3 | 0.8 | ||||||||||||||
Non-compete agreements | 1.7 | 0.5 | — | — | 1.2 | ||||||||||||||
Patents | 1.5 | 0.2 | — | — | 1.3 | ||||||||||||||
Total | $ | 220.1 | $ | 31.1 | $ | 20.7 | $ | 3.8 | $ | 164.5 | |||||||||
Unamortized Intangible Assets (Advanced Materials & Structures) | |||||||||||||||||||
Trade names | $ | 12.9 | $ | — | $ | — | $ | (0.1 | ) | $ | 13.0 |
December 31, 2015 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairments | Foreign Exchange | Net Carrying Amount | |||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||
Engineered Papers | |||||||||||||||||||
Customer-related intangibles | $ | 10.0 | $ | 10.0 | $ | — | $ | — | $ | — | |||||||||
Advanced Materials & Structures | |||||||||||||||||||
Customer relationships | 167.7 | 5.8 | — | 0.6 | 161.3 | ||||||||||||||
Developed technology | 16.0 | 2.3 | — | 0.1 | 13.6 | ||||||||||||||
Customer contracts | 0.9 | 0.5 | — | — | 0.4 | ||||||||||||||
Non-compete agreements | 1.7 | 0.1 | — | — | 1.6 | ||||||||||||||
Patents | 1.5 | 0.1 | — | — | 1.4 | ||||||||||||||
Total | $ | 197.8 | $ | 18.8 | $ | — | $ | 0.7 | $ | 178.3 | |||||||||
Unamortized Intangible Assets (Advanced Materials & Structures) | |||||||||||||||||||
Trade names | $ | 35.8 | $ | — | $ | — | $ | 0.2 | $ | 35.6 |
For the year ended December 31, | Estimated Amortization Expense | ||
2017 | $ | 12.6 | |
2018 | 11.8 | ||
2019 | 11.7 | ||
2020 | 11.3 | ||
2021 | 11.3 |
December 31, | |||||||
2016 | 2015 | ||||||
Capitalized software costs, net of accumulated amortization | $ | 4.4 | $ | 2.5 | |||
Business tax credits, including VAT and ICMS (net of $11.5 million and $9.9 million reserve as of December 31, 2016 and 2015, respectively) | 2.5 | 2.6 | |||||
Grantor trust assets | 10.3 | 9.6 | |||||
Long-term supplies inventory | 6.0 | 5.0 | |||||
Other assets | 4.3 | 2.6 | |||||
Total | $ | 27.5 | $ | 22.3 |
2016 | 2015 | ||||||
Balance at beginning of year | $ | 7.7 | $ | 8.7 | |||
Accruals for announced programs | 4.3 | 8.0 | |||||
Cash payments | (8.4 | ) | (8.3 | ) | |||
Exchange rate impacts | 0.7 | (0.7 | ) | ||||
Balance at end of period | $ | 4.3 | $ | 7.7 |
December 31, 2016 | December 31, 2015 | ||||||
Term loan A-1 | $ | 60.0 | $ | 60.0 | |||
Term loan A-2 | 246.9 | 249.4 | |||||
Revolving credit agreement - U.S. dollar borrowings | 131.0 | 197.0 | |||||
Revolving credit agreement - Euro borrowings | — | 62.4 | |||||
French employee profit sharing | 9.5 | 11.4 | |||||
Debt issuance costs | (7.0 | ) | (8.7 | ) | |||
Total debt | 440.4 | 571.5 | |||||
Less: Current debt | (3.0 | ) | (3.3 | ) | |||
Long-term debt | $ | 437.4 | $ | 568.2 |
2017 | $ | 4.7 | |
2018 | 4.8 | ||
2019 | 4.8 | ||
2020 | 194.7 | ||
2021 | 4.0 | ||
Thereafter | 234.4 | ||
Total | $ | 447.4 |
2017 | $ | 1.7 | |
2018 | 1.7 | ||
2019 | 1.7 | ||
2020 | 1.4 | ||
2021 | 0.3 | ||
Thereafter | 0.2 | ||
Total | $ | 7.0 |
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives Designated as Hedges: | |||||||||||
Foreign exchange contracts | Accounts receivable | $ | 1.0 | Accrued expenses | $ | 1.8 | |||||
Foreign exchange contracts | Other assets | 1.9 | Other liabilities | — | |||||||
Interest rate contracts | Other assets | — | Other liabilities | 0.4 | |||||||
Total derivatives designated as hedges | $ | 2.9 | $ | 2.2 |
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives Designated as Hedges: | |||||||||||
Foreign exchange contracts | Accounts receivable | $ | 0.7 | Accrued expenses | $ | 10.8 | |||||
Foreign exchange contracts | Other assets | — | Other liabilities | 7.0 | |||||||
Interest rate contracts | Other assets | — | Other liabilities | 0.6 | |||||||
Total derivatives designated as hedges | $ | 0.7 | $ | 18.4 |
Derivatives Designated as Cash Flow Hedging Relationships | Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | Location of Reclassification | Loss Reclassified from AOCI, Net of Tax | |||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||
Foreign exchange contracts | $ | 13.3 | $ | (24.4 | ) | $ | (4.1 | ) | Net sales | $ | (5.9 | ) | $ | (11.1 | ) | $ | (4.6 | ) | ||||||
Interest rate contracts | (0.1 | ) | (0.5 | ) | (0.7 | ) | Interest expense | (0.6 | ) | (0.5 | ) | — | ||||||||||||
Total | $ | 13.2 | $ | (24.9 | ) | $ | (4.8 | ) | Total | $ | (6.5 | ) | $ | (11.6 | ) | $ | (4.6 | ) |
Derivatives Not Designated as Cash Flow Hedging Instruments | Amount of Gain / (Loss) Recognized in Other Income / Expense | ||||||||||
2016 | 2015 | 2014 | |||||||||
Interest rate contracts | $ | — | $ | — | $ | — | |||||
Foreign exchange contracts | 1.0 | (1.5 | ) | (0.7 | ) | ||||||
Total | $ | 1.0 | $ | (1.5 | ) | $ | (0.7 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Accrued salaries, wages and employee benefits | $ | 39.2 | $ | 38.3 | |||
Other accrued expenses | 38.0 | 47.2 | |||||
Total | $ | 77.2 | $ | 85.5 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
United States | $ | 27.7 | $ | 41.6 | $ | 31.0 | |||||
Foreign | 65.7 | 63.9 | 77.2 | ||||||||
Total | $ | 93.4 | $ | 105.5 | $ | 108.2 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current income taxes: | |||||||||||
U.S. federal | $ | 14.3 | $ | 13.0 | $ | 6.6 | |||||
U.S. state | 0.1 | 1.1 | 0.6 | ||||||||
Foreign | 17.2 | 14.2 | 10.0 | ||||||||
31.6 | 28.3 | 17.2 | |||||||||
Deferred income taxes: | |||||||||||
U.S. federal | (2.7 | ) | (5.8 | ) | 3.0 | ||||||
U.S. state | (4.0 | ) | 0.1 | (0.8 | ) | ||||||
Foreign | (9.5 | ) | (1.0 | ) | 1.1 | ||||||
(16.2 | ) | (6.7 | ) | 3.3 | |||||||
Total | $ | 15.4 | $ | 21.6 | $ | 20.5 |
For the Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Tax provision at U.S. statutory rate | $ | 32.6 | 35.0 | % | $ | 36.9 | 35.0 | % | $ | 37.9 | 35.0 | % | ||||||||
Foreign income tax rate differential | (9.0 | ) | (9.6 | ) | (16.2 | ) | (15.4 | ) | (15.4 | ) | (14.2 | ) | ||||||||
State income tax, net of federal benefit | (2.5 | ) | (2.7 | ) | 1.1 | 1.1 | (0.1 | ) | (0.1 | ) | ||||||||||
Domestic production deduction | (0.9 | ) | (1.0 | ) | (1.5 | ) | (1.4 | ) | (1.0 | ) | (0.9 | ) | ||||||||
Remeasurement of deferred taxes for tax law change | (7.0 | ) | (7.5 | ) | — | — | — | — | ||||||||||||
Adjustments to valuation allowances | 3.5 | 3.7 | 1.4 | 1.3 | 0.4 | 0.4 | ||||||||||||||
Other, net | (1.3 | ) | (1.4 | ) | (0.1 | ) | (0.1 | ) | (1.3 | ) | (1.3 | ) | ||||||||
Provision for income taxes | $ | 15.4 | 16.5 | % | $ | 21.6 | 20.5 | % | $ | 20.5 | 18.9 | % |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred Tax Assets | |||||||
Receivable allowances | $ | 0.2 | $ | 3.4 | |||
Reserves and accruals | 3.9 | 3.9 | |||||
Inventory and other assets | 2.3 | 1.7 | |||||
Postretirement and other employee benefits | 20.0 | 20.6 | |||||
Derivatives | — | 5.5 | |||||
Net operating loss and tax credit carryforwards | 104.8 | 25.9 | |||||
Investment in subsidiaries | — | 1.0 | |||||
Intangibles | 76.6 | — | |||||
Other | 0.1 | 0.8 | |||||
207.9 | 62.8 | ||||||
Less: Valuation allowance | (194.8 | ) | (33.8 | ) | |||
Net deferred income tax assets | $ | 13.1 | $ | 29.0 | |||
Deferred Tax Liabilities | |||||||
Net fixed assets | $ | (34.4 | ) | $ | (72.7 | ) | |
Investment in subsidiaries | (4.1 | ) | — | ||||
Other | (0.7 | ) | (1.5 | ) | |||
Net deferred income tax liabilities | $ | (39.2 | ) | $ | (74.2 | ) | |
Total net deferred income tax liabilities | $ | (26.1 | ) | $ | (45.2 | ) |
2016 | |||
2017-2018 | $ | 4.1 | |
2023-2034 | 0.1 | ||
2017-2034 | 9.3 | ||
Indefinite | 81.6 | ||
95.1 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Uncertain tax position balance at beginning of year | $ | 0.9 | $ | 1.8 | $ | 1.8 | |||||
Increases related to current year tax positions | 2.0 | — | — | ||||||||
Decrease related to expiration of statute of limitations | (0.5 | ) | (0.9 | ) | — | ||||||
Uncertain tax position balance at end of year | $ | 2.4 | $ | 0.9 | $ | 1.8 |
Pension Benefits | OPEB Benefits | ||||||||||||||||||||||
United States | France | United States | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Change in Projected Benefit Obligation, or PBO: | |||||||||||||||||||||||
PBO at beginning of year | $ | 123.4 | $ | 132.4 | $ | 32.2 | $ | 37.3 | $ | 1.7 | $ | 1.8 | |||||||||||
Service cost | — | — | 1.0 | 1.3 | — | — | |||||||||||||||||
Interest cost | 5.2 | 5.0 | 0.4 | 0.4 | 0.1 | 0.1 | |||||||||||||||||
Actuarial (gain) loss | 2.4 | (6.5 | ) | 2.1 | (0.6 | ) | — | 0.4 | |||||||||||||||
Participant contributions | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||
Plan amendment | — | — | — | (0.7 | ) | — | — | ||||||||||||||||
Gross benefits paid | (7.8 | ) | (7.5 | ) | (3.0 | ) | (2.5 | ) | (0.5 | ) | (0.7 | ) | |||||||||||
Currency translation effect | — | — | (0.3 | ) | (3.0 | ) | — | — | |||||||||||||||
PBO at end of year | $ | 123.2 | $ | 123.4 | $ | 32.4 | $ | 32.2 | $ | 1.4 | $ | 1.7 | |||||||||||
Change in Plan Assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | 116.7 | 128.9 | 8.4 | 10.2 | — | — | |||||||||||||||||
Actual return on plan assets | 10.0 | (4.7 | ) | 0.1 | 0.5 | — | — | ||||||||||||||||
Employer contributions | — | — | 0.7 | 1.3 | 0.4 | 0.6 | |||||||||||||||||
Participant contributions | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||
Plan amendment | — | — | — | — | — | — | |||||||||||||||||
Gross benefits paid | (7.8 | ) | (7.5 | ) | (2.9 | ) | (2.6 | ) | (0.5 | ) | (0.7 | ) | |||||||||||
Currency translation effect | — | — | (0.2 | ) | (1.0 | ) | — | — | |||||||||||||||
Fair value of plan assets at end of year | $ | 118.9 | $ | 116.7 | $ | 6.1 | $ | 8.4 | $ | — | $ | — | |||||||||||
Funded status at end of year | $ | (4.3 | ) | $ | (6.7 | ) | $ | (26.3 | ) | $ | (23.8 | ) | $ | (1.4 | ) | $ | (1.7 | ) |
United States | France | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
PBO | $ | 123.2 | $ | 123.4 | $ | 32.4 | $ | 32.2 | |||||||
ABO | 123.2 | 123.4 | 28.2 | 28.3 | |||||||||||
Fair value of plan assets | 118.9 | 116.7 | 6.1 | 8.4 |
Pension Benefits | OPEB Benefits | ||||||||||
United States | France | United States | |||||||||
Accumulated loss | $ | 37.5 | $ | 16.9 | $ | 0.7 | |||||
Prior service credit | — | (3.3 | ) | (0.3 | ) | ||||||
Accumulated other comprehensive loss | $ | 37.5 | $ | 13.6 | $ | 0.4 |
Pension Benefits | OPEB Benefits | ||||||||||
United States | France | United States | |||||||||
Amortization of accumulated loss | $ | (3.7 | ) | $ | (1.4 | ) | $ | (0.2 | ) | ||
Amortization of prior service credit | — | 0.3 | 0.1 | ||||||||
Total | $ | (3.7 | ) | $ | (1.1 | ) | $ | (0.1 | ) |
Pension Benefits | OPEB Benefits | ||||||||||||||||
United States | France | United States | |||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Discount rate | 4.11 | % | 4.40 | % | 1.12 | % | 1.43 | % | 4.09 | % | 4.29 | % | |||||
Rate of compensation increase | — | % | — | % | 1.90 | % | 1.90 | % | 3.50 | % | 3.50 | % |
U.S. Pension Benefits | French Pension Benefits | U.S. OPEB Benefits | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1.0 | $ | 1.3 | $ | 1.3 | $ | — | $ | — | $ | — | |||||||||||||||||
Interest cost | 5.2 | 5.0 | 5.6 | 0.4 | 0.4 | 0.8 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Expected return on plan assets | (6.8 | ) | (7.0 | ) | (7.4 | ) | (0.2 | ) | (0.3 | ) | (0.4 | ) | — | — | — | ||||||||||||||||||||
Amortizations and other | 3.8 | 5.1 | 4.2 | 1.1 | 0.2 | 0.7 | 0.2 | (0.2 | ) | (0.5 | ) | ||||||||||||||||||||||||
Curtailment benefit | — | — | — | — | — | — | — | — | (2.7 | ) | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 2.2 | $ | 3.1 | $ | 2.4 | $ | 2.3 | $ | 1.6 | $ | 2.4 | $ | 0.3 | $ | (0.1 | ) | $ | (3.1 | ) |
Pension Benefits | OPEB Benefits | |||||||||||||||||||||||||
United States | France | United States | ||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Discount rate | 4.40 | % | 3.94 | % | 4.78 | % | 1.12 | % | 1.43 | % | 1.17 | % | 4.29 | % | 3.82 | % | 4.02 | % | ||||||||
Expected long-term rate of return on plan assets | 5.83 | % | 6.06 | % | 6.48 | % | 3.00 | % | 3.00 | % | 3.00 | % | — | % | — | % | — | % | ||||||||
Rate of compensation increase | — | — | — | 1.90 | % | 1.90 | % | 1.90 | % | 3.50 | % | 3.50 | % | 3.50 | % |
United States | France | |||||||||||||
2017 Target | 2016 | 2015 | 2016 | 2015 | ||||||||||
Asset Category | ||||||||||||||
Cash and cash equivalents | 1 | % | 1 | % | 1 | % | 24 | % | 12 | % | ||||
Equity securities* | ||||||||||||||
Domestic large cap | 7 | 7 | 7 | 20 | 20 | |||||||||
Domestic small cap | 4 | 5 | 4 | — | — | |||||||||
International | 20 | 20 | 19 | — | — | |||||||||
Fixed income securities | 68 | 67 | 69 | 54 | 66 | |||||||||
Alternative investments** | — | — | — | 2 | 2 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
* | None of the Company's pension plan assets are targeted for investment in SWM stock, except that it is possible that one or more mutual funds held by the plan could hold shares of SWM. |
** | Investments in this category under the U.S. pension plan only may include hedge funds, and may include real estate under the French pension plan. |
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
Level 2 | Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly; |
Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
United States | France | ||||||||||||||||||||||||||||||
Plan Asset Category | Total | Other* | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | |||||||||||||||||||||||
Cash equivalents | $ | 1.2 | $ | — | $ | 1.2 | $ | — | $ | — | $ | 1.5 | $ | 1.5 | $ | — | |||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||
Domestic large cap | 8.3 | 8.3 | — | — | — | 1.2 | 1.2 | — | |||||||||||||||||||||||
Domestic small cap | 5.7 | 5.7 | — | — | — | — | — | — | |||||||||||||||||||||||
International | 23.7 | 23.7 | — | — | — | — | — | — | |||||||||||||||||||||||
Fixed income securities | 79.9 | 79.9 | — | — | — | 3.2 | — | 3.2 | |||||||||||||||||||||||
Alternative investments* | 0.1 | — | — | — | 0.1 | 0.2 | — | 0.2 | |||||||||||||||||||||||
Total | $ | 118.9 | $ | 117.6 | $ | 1.2 | $ | — | $ | 0.1 | $ | 6.1 | $ | 2.7 | $ | 3.4 |
United States | France | ||||||||||||||||||||||||||||||
Plan Asset Category | Total | Other* | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | |||||||||||||||||||||||
Cash equivalents | $ | 1.2 | $ | — | $ | 1.2 | $ | — | $ | — | $ | 1.0 | $ | 1.0 | $ | — | |||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||
Domestic large cap | 8.0 | 8.0 | — | — | — | 1.7 | 1.7 | — | |||||||||||||||||||||||
Domestic small cap | 5.3 | 5.3 | — | — | — | — | — | — | |||||||||||||||||||||||
International | 21.6 | 21.6 | — | — | — | — | — | — | |||||||||||||||||||||||
Fixed income securities | 80.3 | 80.3 | — | — | — | 5.5 | — | 5.5 | |||||||||||||||||||||||
Alternative investments** | 0.3 | — | — | — | 0.3 | 0.2 | — | 0.2 | |||||||||||||||||||||||
Total | $ | 116.7 | $ | 115.2 | $ | 1.2 | $ | — | $ | 0.3 | $ | 8.4 | $ | 2.7 | $ | 5.7 |
* | Assets are measured at NAV as a practical expedient and not subject to hierarchy level classification disclosure. Amounts presented for December 31, 2015 have been retrospectively reclassified pursuant to the implementation of ASU 2015-07. For further information see Note 2. Summary of Significant Accounting Policies. |
U.S. Level 3 Asset Reconciliation | Alternative Investments Total | ||
Beginning balance, January 1, 2015 | $ | 6.8 | |
Realized and unrealized gains | 0.1 | ||
Purchases | 0.5 | ||
Sales | (7.1 | ) | |
Ending balance, December 31, 2015 | $ | 0.3 | |
Realized and unrealized gains | — | ||
Purchases | — | ||
Sales | (0.2 | ) | |
Ending balance, December 31, 2016 | $ | 0.1 |
United States | France | ||||||||||
Pension Benefits | Healthcare and Life Insurance Benefits | Pension Benefits | |||||||||
2017 | $ | 8.2 | $ | 0.2 | $ | 4.6 | |||||
2018 | 8.4 | 0.1 | 1.4 | ||||||||
2019 | 8.4 | 0.1 | 2.7 | ||||||||
2020 | 8.4 | 0.1 | 1.2 | ||||||||
2021 | 8.4 | 0.1 | 1.1 | ||||||||
2022 - 2026 | 40.5 | 0.3 | 6.6 |
2016 | 2015 | 2014 | ||||||||||||||||||
# of Shares | Weighted Average Fair Value at Date of Grant | # of Shares | Weighted Average Fair Value at Date of Grant | # of Shares | Weighted Average Fair Value at Date of Grant | |||||||||||||||
Nonvested restricted shares outstanding at January 1 | 197,674 | $ | 43.56 | 366,363 | $ | 38.24 | 318,561 | $ | 35.82 | |||||||||||
Granted | 150,647 | 39.47 | 107,346 | 45.34 | 201,680 | 39.55 | ||||||||||||||
Forfeited | (51,234 | ) | 43.56 | (39,322 | ) | 40.93 | (675 | ) | 48.68 | |||||||||||
Vested | (72,798 | ) | 42.06 | (236,713 | ) | 36.57 | (153,203 | ) | 34.89 | |||||||||||
Nonvested restricted shares outstanding at December 31 | 224,289 | $ | 41.30 | 197,674 | $ | 43.56 | 366,363 | $ | 38.24 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Numerator (basic and diluted): | |||||||||||
Net income | $ | 82.8 | $ | 89.7 | $ | 89.7 | |||||
Less: Dividends paid to participating securities | (0.3 | ) | (0.2 | ) | (0.3 | ) | |||||
Less: Undistributed earnings available to participating securities | (0.2 | ) | (0.3 | ) | (0.5 | ) | |||||
Undistributed and distributed earnings available to common stockholders | $ | 82.3 | $ | 89.2 | $ | 88.9 | |||||
Denominator: | |||||||||||
Average number of common shares outstanding | 30,310.9 | 30,251.4 | 30,238.0 | ||||||||
Effect of dilutive stock-based compensation | 152.5 | 122.9 | 118.5 | ||||||||
Average number of common and potential common shares outstanding | 30,463.4 | 30,374.3 | 30,356.5 |
2017 | $ | 4.4 | |
2018 | 4.0 | ||
2019 | 3.3 | ||
2020 | 3.2 | ||
2021 | 3.2 | ||
Thereafter | 12.0 | ||
Total | $ | 30.1 |
($ in millions) | Net Sales | |||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||
Engineered Papers | $ | 559.3 | 66.6 | % | $ | 583.9 | 76.4 | % | $ | 666.9 | 84.0 | % | ||||||||
Advanced Materials & Structures | 280.6 | 33.4 | 180.2 | 23.6 | 127.4 | 16.0 | ||||||||||||||
Consolidated | $ | 839.9 | 100.0 | % | $ | 764.1 | 100.0 | % | $ | 794.3 | 100.0 | % |
($ in millions) | Operating Profit | |||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||
Engineered Papers | $ | 138.0 | 130.0 | % | $ | 121.5 | 118.0 | % | $ | 124.5 | 117.3 | % | ||||||||
Advanced Materials & Structures | 9.0 | 8.5 | 16.7 | 16.2 | 10.2 | 9.6 | ||||||||||||||
Unallocated | (40.9 | ) | (38.5 | ) | (35.2 | ) | (34.2 | ) | (28.6 | ) | (26.9 | ) | ||||||||
Consolidated | $ | 106.1 | 100.0 | % | $ | 103.0 | 100.0 | % | $ | 106.1 | 100.0 | % |
($ in millions) | Segment Assets | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2014 | |||||||||
Engineered Papers | $ | 505.1 | $ | 507.3 | $ | 611.9 | |||||
Advanced Materials & Structures | 569.3 | 648.4 | 320.1 | ||||||||
Unallocated | 99.3 | 134.3 | 253.0 | ||||||||
Consolidated | $ | 1,173.7 | $ | 1,290.0 | $ | 1,185.0 |
($ in millions) | Capital Spending | Depreciation | |||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Engineered Papers | $ | 17.6 | $ | 12.5 | $ | 26.1 | $ | 22.3 | $ | 25.6 | $ | 31.0 | |||||||||||
Advanced Materials & Structures | 10.1 | 11.2 | 8.7 | 7.1 | 5.5 | 3.9 | |||||||||||||||||
Unallocated | 0.1 | 0.5 | 0.3 | — | (0.4 | ) | 0.4 | ||||||||||||||||
Consolidated | $ | 27.8 | $ | 24.2 | $ | 35.1 | $ | 29.4 | $ | 30.7 | $ | 35.3 |
Long-Lived Assets | |||||||||||
2016 | 2015 | 2014 | |||||||||
United States | $ | 89.6 | $ | 87.5 | $ | 75.5 | |||||
France | 162.7 | 163.5 | 187.2 | ||||||||
The Philippines | — | — | 30.8 | ||||||||
Brazil | 23.7 | 20.1 | 27.8 | ||||||||
Poland | 20.0 | 23.6 | 29.0 | ||||||||
Other foreign countries | 15.8 | 15.9 | 15.5 | ||||||||
Consolidated | $ | 311.8 | $ | 310.6 | $ | 365.8 |
Net Sales | |||||||||||
2016 | 2015 | 2014 | |||||||||
United States | $ | 372.2 | $ | 310.7 | $ | 263.7 | |||||
Europe and the former Commonwealth of Independent States | 253.2 | 261.2 | 304.6 | ||||||||
Asia-Pacific (including China) | 129.4 | 118.5 | 125.3 | ||||||||
Latin America | 47.4 | 34.6 | 54.9 | ||||||||
Other foreign countries | 37.7 | 39.1 | 45.8 | ||||||||
Consolidated | $ | 839.9 | $ | 764.1 | $ | 794.3 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Allowance for Doubtful Accounts | |||||||||||
Beginning balance | $ | 0.4 | $ | 0.3 | $ | 0.4 | |||||
Bad debt expense | 0.4 | 0.2 | 0.3 | ||||||||
Write-offs and discounts | — | (0.1 | ) | (0.4 | ) | ||||||
Currency translation | — | — | — | ||||||||
Ending balance | $ | 0.8 | $ | 0.4 | $ | 0.3 |
For the Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Interest paid | $ | 13.3 | $ | 7.8 | $ | 6.0 | |||||
Income taxes paid | 31.9 | 9.3 | 17.6 | ||||||||
Capital spending in accounts payable and accrued liabilities | 8.8 | 2.6 | 2.5 |
2016 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | |||||||||||||||
Net sales | $ | 214.6 | $ | 217.3 | $ | 209.3 | $ | 198.7 | $ | 839.9 | |||||||||
Gross profit | 63.5 | 66.9 | 63.1 | 63.2 | 256.7 | ||||||||||||||
Restructuring and impairment expense | 1.8 | 0.9 | 1.3 | 21.6 | 25.6 | ||||||||||||||
Operating profit | 31.6 | 37.5 | 30.8 | 6.2 | 106.1 | ||||||||||||||
Income from continuing operations | 21.1 | 26.0 | 18.7 | 17.0 | 82.8 | ||||||||||||||
Income from discontinued operations | — | — | — | — | — | ||||||||||||||
Net income | $ | 21.1 | $ | 26.0 | $ | 18.7 | $ | 17.0 | $ | 82.8 | |||||||||
Net income per share: | |||||||||||||||||||
Income per share from continuing operations - basic | $ | 0.69 | $ | 0.85 | $ | 0.62 | $ | 0.55 | $ | 2.71 | |||||||||
Income per share from discontinued operations - basic | — | — | — | — | — | ||||||||||||||
Net income per share - basic | $ | 0.69 | $ | 0.85 | $ | 0.62 | $ | 0.55 | $ | 2.71 | |||||||||
Income per share from continuing operations - diluted | $ | 0.69 | $ | 0.85 | $ | 0.61 | $ | 0.55 | $ | 2.70 | |||||||||
Income per share from discontinued operations - diluted | — | — | — | — | — | ||||||||||||||
Net income per share - diluted | $ | 0.69 | $ | 0.85 | $ | 0.61 | $ | 0.55 | $ | 2.70 |
2015 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | |||||||||||||||
Net sales | $ | 188.0 | $ | 181.9 | $ | 184.4 | $ | 209.8 | $ | 764.1 | |||||||||
Gross profit | 51.4 | 54.8 | 52.4 | 65.8 | 224.4 | ||||||||||||||
Restructuring and impairment expense | 4.0 | 5.2 | 1.3 | 4.1 | 14.6 | ||||||||||||||
Operating profit | 22.5 | 24.0 | 31.8 | 24.7 | 103.0 | ||||||||||||||
Income from continuing operations | 18.8 | 24.5 | 25.6 | 21.6 | 90.5 | ||||||||||||||
(Loss) income from discontinued operations | — | (1.1 | ) | 0.2 | 0.1 | (0.8 | ) | ||||||||||||
Net income | $ | 18.8 | $ | 23.4 | $ | 25.8 | $ | 21.7 | $ | 89.7 | |||||||||
Net income per share: | |||||||||||||||||||
Income per share from continuing operations - basic | $ | 0.62 | $ | 0.80 | $ | 0.84 | $ | 0.71 | $ | 2.97 | |||||||||
(Loss) income per share from discontinued operations - basic | — | (0.04 | ) | 0.01 | 0.01 | (0.02 | ) | ||||||||||||
Net income per share - basic | $ | 0.62 | $ | 0.76 | $ | 0.85 | $ | 0.72 | $ | 2.95 | |||||||||
Income per share from continuing operations - diluted | $ | 0.61 | $ | 0.80 | $ | 0.84 | $ | 0.71 | $ | 2.96 | |||||||||
(Loss) income per share from discontinued operations - diluted | — | (0.04 | ) | 0.01 | 0.01 | (0.02 | ) | ||||||||||||
Net income per share - diluted | $ | 0.61 | $ | 0.76 | $ | 0.85 | $ | 0.72 | $ | 2.94 |
Plan Category | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | ||
Equity compensation plans approved by stockholders: | |||
Outside Directors Stock Plan (1) | 115,484 | ||
Long-Term Incentive Plan (2) | 4,878,868 | ||
Total approved by stockholders | 4,994,352 | ||
Equity compensation plans not approved by stockholders: | — | ||
Grand total | 4,994,352 |
(a) | The consolidated financial statements and financial statement schedules filed as part of this report are listed in the Index to the Consolidated Financial Statements set forth in Part II, Item 8. |
Exhibit Number | Exhibit | |
2.1 | Agreement and Plan of Merger, dated as of November 18, 2013, by and among Schweitzer-Mauduit International, Inc., DelStar, Inc., SWM Acquisition Corp. I, SWM Acquisition Corp. II, certain security holders of DelStar, Inc. listed on the signature pages thereto and American Capital, Ltd. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed December 13, 2013).*** | |
2.2 | Equity Interest Purchase Agreement, dated as of September 17, 2015, by and among Schweitzer-Mauduit International, Inc., SWM-Argotec, LLC, Argotec Intermediate Holdings Two LLC, Argotec Intermediate Holdings LLC, Argotec LLC, Argotec Holdings LLC and certain equity holders of Argotec Holdings LLC listed on the signature pages thereto (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on September 21, 2015).*** | |
2.3 | Equity Interest Purchase Agreement, dated December 14, 2016, by and among DelStar Technologies, Inc., Baldwin Enterprises, Inc., Conwed Plastics LLC, and, solely for certain limited purposes as set forth therein, Schweitzer-Mauduit International, Inc. and Leucadia National Corporation (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed December 14, 2016).*** | |
3.1 | Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 10-Q for the quarter ended September 30, 2009). | |
3.2 | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 16, 2014). | |
4.1 | Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Form 10-Q for the quarter ended September 30, 2000). | |
10.2 | Schweitzer-Mauduit International, Inc. 2015 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities Exchange Commission on April 29, 2015). | |
10.3 | Employment Agreement, dated September 14, 2015, between Schweitzer-Mauduit International, Inc. and Michel Fievez, Executive Vice President, Paper and Reconstituted Tobacco Paper (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 16, 2015). | |
10.4 | Outside Directors' Stock Plan (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009).** | |
10.5 | Annual Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the Quarter ended June 30, 2014).** | |
10.6 | Equity Participation Plan (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000).** | |
10.7 | Long-Term Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K for the year ended December 31, 2008).** | |
10.8.1 | Deferred Compensation Plan (incorporated by reference to Exhibit 10.8.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2000).** | |
10.8.2 | Deferred Compensation Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.8.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2000).** | |
10.9 | Restricted Stock Plan (incorporated by reference to Exhibit 10.9 to the Company's Annual Report on Form 10-K for the year ended December 2011).** | |
10.10 | Supplemental Benefit Plan (incorporated by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K for the year ended December 2008).** | |
10.11.1 | Executive Severance Plan (incorporated by reference to Exhibit 10.11 to the Company's Annual Report on Form 10-K for the year ended December 2008).** |
Exhibit Number | Exhibit | |
10.11.2 | 2012 Executive Severance Plan (incorporated by reference to Exhibit 10.11.2 to the Company's Annual Report on Form 10-K for the year ended December 2011).** | |
10.11.3 | 2012 Executive Severance Plan Participation Agreement (incorporated by reference to Exhibit 10.11.3 to the Company's Annual Report on Form 10-K for the year ended December 2011).** | |
10.11.4 | 2016 Executive Severance Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016).** | |
10.11.5 | 2016 Executive Severance Plan Participation Agreement (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016).** | |
10.12 | Agreement for the Supply of Natural Gas, dated October 5, 2006, by and among Papeteries de Mauduit S.A.S. and ENI S.p.A. (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006). | |
10.13 | Deferred Compensation Plan No. 2 for Non-Employee Directors. (incorporated by reference to Exhibit 10.13 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
10.14 | Deferred Compensation Plan No. 2. (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
*10.15 | Summary of Non-Management Director Compensation.** | |
*10.16.1 | Restricted Stock Award Agreement (2015 Long-Term Incentive Plan - Cliff Vesting Shares) | |
*10.16.2 | Restricted Stock Award Agreement (2015 LTIP I & II - Service-Based Shares Grant 1) | |
*10.16.3 | Restricted Stock Award Agreement (2015 LTIP I & II - Service-Based Shares Grant 2) | |
*10.16.4 | Performance Award Agreement (2015 Long-Term Incentive plan - Performance Shares) | |
*10.16.5 | Performance Award Agreement (2015 Long-Term Incentive plan - Performance Shares with Cliff Vesting) | |
10.17 | Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).** | |
10.18 | Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.20 to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).** | |
10.19 | Stock Option Agreement (incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).** | |
10.20.1 | Restricted Stock Agreement (Restricted Stock Plan - Cliff Vesting Shares) (incorporated by reference to Exhibit 10.20.1 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
10.20.2 | Restricted Stock Agreement (French Participants - Cliff Vesting) (incorporated by reference to Exhibit 10.20.2 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
10.20.3 | Restricted Stock Agreement (Restricted Stock Plan - Performance Share Award) (incorporated by reference to Exhibit 10.20.3 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
10.20.4 | Restricted Stock Agreement (French Participants - Performance Shares) (incorporated by reference to Exhibit 10.20.4 to the Company's Annual Report on Form 10-K for the year ended December 2013).** | |
10.21 | Amended and Restated Credit Agreement, dated as of December 11, 2013, with JPMorgan Chase Bank, N.A., as administrative agent, the lenders party thereto, J.P. Morgan Securities LLC, Fifth Third Bank, Merrill Lynch, Pierce, Fenner & Smith Incorporated and SunTrust Robinson Humphrey, Inc. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 13, 2013). |
Exhibit Number | Exhibit | |
10.22 | Second Amended and Restated Credit Agreement, dated as of October 28, 2015 with JPMorgan Chase Bank, N.A., as administrative agent, the lenders party thereto, J.P. Morgan Securities LLC, Fifth Third Bank, Merrill Lynch Pierce, Fenner & Smith Inc., SunTrust Robinson Humphrey, Inc. and AgFirst Farm Credit Bank, as joint lead arrangers and joint bookrunners, and Fifth Third Bank, Merrill Lynch Pierce Fenner & Smith, Inc., SunTrust Bank and AgFirst Farm Credit Bank, as Co- Syndication Agents (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 28, 2015). | |
10.23 | First Amendment to Second Amended and Restated Credit Agreement, dated January 20, 2017, with JPMorgan Chase Bank, N.A., as administrative agent, the lenders party thereto, JPMorgan Chase Bank, N.A., Bank of America, N.A., Fifth Third Bank, SunTrust Bank, AgFirst Farm Credit Bank, Citizens Bank, N.A., MUFG Union Bank, N.A., Citibank, N.A., Farm Credit Bank of Texas, Farm Credit Mid America, PCA and Societe Generale (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 20, 2017). | |
*21 | Subsidiaries of the Company. | |
*23 | Consent of Independent Registered Public Accounting Firm. | |
*24 | Powers of Attorney. | |
*31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as amended. | |
*31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as amended. | |
*32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ‡ | |
99.2 | Indemnification Agreement (incorporated by reference by Exhibit 99.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009). | |
101 | The following materials from the Company's Annual Report on Form 10-K for the year ended December 31, 2016, formatted in Extensible Business Reporting Language ("XBRL"): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flow, and (vi) Notes to Consolidated Financial Statements (furnished herewith). |
* | Filed herewith. |
** | Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 15(b) of Form 10-K |
*** | Schedules omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish a supplemental copy of any omitted schedule to the SEC upon request. |
‡ | These Section 906 certifications are not being incorporated by reference into the Form 10-K filing or otherwise deemed to be filed with the SEC. |
Schweitzer-Mauduit International, Inc. | |||
By: | |||
Dated: | February 24, 2017 | /s/ Frédéric P. Villoutreix | |
Frédéric P. Villoutreix | |||
Chairman of the Board and | |||
Chief Executive Officer | |||
(principal executive officer) |
Name | Position | Date | ||
/s/ Frédéric P. Villoutreix | Chairman of the Board and | February 24, 2017 | ||
Frédéric P. Villoutreix | Chief Executive Officer (principal executive officer) | |||
/s/ Allison Aden | Executive Vice President, Finance and | February 24, 2017 | ||
Allison Aden | Chief Financial Officer (principal financial officer) | |||
/s/ Robert Cardin | Corporate Controller | February 24, 2017 | ||
Robert Cardin | (principal accounting officer) | |||
* | Director | February 24, 2017 | ||
Claire L. Arnold | ||||
* | Director | February 24, 2017 | ||
K.C. Caldabaugh | ||||
* | Director | February 24, 2017 | ||
William A. Finn | ||||
* | Director | February 24, 2017 | ||
Heinrich Fischer | ||||
* | Director | February 24, 2017 | ||
John D. Rogers | ||||
* | Director | February 24, 2017 | ||
Anderson D. Warlick | ||||
* | Director | February 24, 2017 | ||
Jeffrey Keenan | ||||
*By: | ||||
/s/ Ricardo Nunez | February 24, 2017 | |||
Ricardo Nunez | ||||
Attorney-In-Fact |
• | "Banded cigarette paper" is a type of paper, used to produce lower ignition propensity cigarettes, by applying bands to the paper during the papermaking process. |
• | "Extruded netting" is a type of plastic mesh that can be used for support netting in a variety of filtration-type products. |
• | "Flax" is a cellulose fiber from a flax plant used as a raw material in the production of certain cigarette papers. |
• | "Lower ignition propensity cigarette paper" includes banded and print banded cigarette paper, both of which contain bands, which increase the likelihood that an unattended cigarette will self-extinguish. |
• | "Net debt to EBITDA ratio" is a financial measurement used in bank covenants where "Net Debt" is defined as consolidated total debt minus unrestricted domestic cash and cash equivalents and 65% of non-domestic unrestricted domestic cash and cash equivalents, in excess of $15 million, and "EBITDA" is defined as net income plus the sum of interest expense, income tax expense, depreciation and amortization, non-cash restructuring and impairment charges less amortization of deferred revenue and interest in the earnings of equity affiliates to the extent such earnings are not distributed to the Company. |
• | "Total debt to capital ratio" is total debt divided by the sum of total debt and total stockholders' equity. |
• | "Net debt to equity ratio" is total debt less cash and cash equivalents, divided by stockholders' equity. |
• | "Net debt to EBITDA ratio" is total debt less cash and cash equivalents divided by EBITDA. |
• | "Net operating working capital" is accounts receivable, inventory, income taxes receivable and prepaid expense, less accounts payable, accrued expenses and income taxes payable. |
• | "Nonwovens" are a fabric-like material made from long fibers, bonded together by chemical, mechanical, heat or solvent treatment. The term is used to denote fabrics, such as felt, which are neither woven nor knitted. |
• | "Operating profit return on assets" is operating profit divided by average total assets. |
• | "Polyurethane" is a polymer composed of organic units joined by carbamate (urethane) links. |
• | "Print banded cigarette paper" is a type of paper, used to produce lower ignition propensity cigarettes, with bands added to the paper during a printing process, subsequent to the papermaking process. |
• | "Reconstituted tobacco" is produced in two forms: leaf, or reconstituted tobacco leaf, and wrapper and binder products. Reconstituted tobacco leaf is blended with virgin tobacco as a design aid to achieve certain attributes of finished cigarettes. Wrapper and binder are reconstituted tobacco products used by manufacturers of cigars. |
• | "Restructuring expense" represents expenses incurred in connection with activities intended to significantly change the size or nature of the business operations, including significantly reduced utilization of operating equipment, exit of a product or market or a significant workforce reduction and charges to reduce property, plant and equipment to its fair value. |
• | "Reverse osmosis" is a water purification technology that uses a semipermeable membrane to remove larger particles from drinking water. |
• | "Start-up costs" are costs incurred prior to generation of income producing activities in the case of a new plant, or costs incurred in excess of expected ongoing normal costs in the case of a new or rebuilt machine. Start-up costs can include excess variable costs such as raw materials, utilities and labor and unabsorbed fixed costs. |
• | "Thermoplastics" are a plastic material, polymer, that becomes pliable or moldable above a specific temperature and solidifies upon cooling. |
• | "Tobacco paper" includes cigarette paper which wraps the column of tobacco within a cigarette and has varying properties such as basis weight, porosity, opacity, tensile strength, texture and burn rate, as well as plug wrap paper which wraps the outer layer of a cigarette filter and is used to hold the filter materials in a cylindrical form, and tipping paper which joins the filter element to the tobacco-filled column of the cigarette and is both printable and glueable at high speeds. |
Function | Amount Paid | Form of Payment | ||
Annual Stock Retainer | $80,000 annually | Payable in quarterly increments in shares of company common stock at its fair market value | ||
Annual Cash Retainer | $60,000 annually | Payable in cash in quarterly increments | ||
Audit Committee Members Meeting Fee | $15,000 annually | Payable in cash in quarterly increments | ||
Audit Committee Chair Meeting Fee | $30,000 annually | Payable in cash in quarterly increments | ||
Compensation Committee Members Meeting Fee | $10,000 annually | Payable in cash in quarterly increments | ||
Compensation Committee Chair Meeting Fee | $20,000 annually | Payable in cash in quarterly increments | ||
Nominating & Governance Committee Members Meeting Fee | $10,000 annually | Payable in cash in quarterly increments | ||
Nominating & Governance Committee Chair Meeting Fee | $15,000 annually | Payable in cash in quarterly increments | ||
Lead-Non Management Director Fee | $20,000 annually | Payable in cash in quarterly increments | ||
Meeting Travel Expenses | Reasonable and actual | Cash reimbursement |
The subsidiaries of the Company at December 31, 2016 were as follows: | ||||
Name | Jurisdiction of Incorporation or Organization | Percentage of Voting Power | ||
Schweitzer-Mauduit Canada, BCULC. | British Columbia (Canada) | 100% | ||
Schweitzer-Mauduit International China, Limited | Hong Kong, China | 100% | ||
China Tobacco Mauduit (Jiangmen) Paper Industry Company Ltd. (1) | People’s Republic of China | 50% | ||
China Tobacco - Schweitzer (Yunnan) Reconstituted Tobacco Co. Ltd. (2) | People’s Republic of China | 50% | ||
DelStar Technologies (Shanghai) Trading Corp. Ltd. | People’s Republic of China | 100% | ||
DelStar Technologies (Suzhou) Co. Ltd. | People’s Republic of China | 100% | ||
Schweitzer-Mauduit Spain, S.L. | Spain | 100% | ||
Schweitzer-Mauduit do Brasil Indústria e Comércio de Papel Ltda. | Brazil | 100% | ||
SWM Acquisition Corp. I | Delaware | 100% | ||
DelStar, Inc. | Delaware | 100% | ||
DelStar Holding Corp. | Delaware | 100% | ||
Coretec Tubing Corp. | Delaware | 100% | ||
U.S. Netting, Inc. | Delaware | 100% | ||
DelStar Technologies, Inc. | Delaware | 100% | ||
DelStar Air, Inc. | Delaware | 100% | ||
DelStar Electrostatic, Inc. | Delaware | 100% | ||
Schweitzer-Mauduit Holding S.A.S. | France | 100% | ||
Schweitzer-Mauduit Industries S.A.S. | France | 100% | ||
Schweitzer-Mauduit France S.A.S. | France | 100% | ||
Schweitzer-Mauduit Developpements S.A.S. | France | 100% | ||
LTR Industries S.A.S. | France | 100% | ||
Papeteries de Saint-Girons S.A.S. | France | 100% | ||
Papeteries de Malaucène S.A.S | France | 100% | ||
Malaucène Industries S.N.C. | France | 100% | ||
SWM Services S.A.S. | France | 100% | ||
PDM Industries S.A.S. | France | 100% | ||
SWM Europe S.a.R.L. | Luxembourg | 100% | ||
SWM HoldCo 1 S.à.R.L. | Luxembourg | 100% | ||
SWM HoldCo 2 S.à.R.L. | Luxembourg | 100% | ||
SWM HoldCo 3 S.à.R.L. | Luxembourg | 100% | ||
SWM HoldCo GP, LLC | Delaware | 100% | ||
SWM Luxembourg S.à.R.L. | Luxembourg | 100% | ||
SWM GP Luxembourg S.à.R.L. | Luxembourg | 100% |
SWM LP Luxembourg SCSp | Luxembourg | 100% | ||
SWM South S.à.R.L. | Luxembourg | 100% | ||
SWM Partners SCS | Luxembourg | 100% | ||
Name | Jurisdiction of Incorporation or Organization | Percentage of Voting Power | ||
PDM Philippines Industries, Inc. | Philippines | 100% | ||
Luna Rio Landholding Corporation | Philippines | 100% | ||
Schweitzer-Mauduit RTL Philippines, Inc. | Philippines | 100% | ||
SWM Poland Sp. zo.o. | Poland | 100% | ||
SWM Poland GP Sp zo.o. s.p.j. | Poland | 100% | ||
Ipopema 94 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych | Poland | 100% | ||
DelStar Poland | Poland | 100% | ||
SWM RUS LLC | Russia | 100% | ||
DelStar International, Limited | United Kingdom | 100% | ||
SWM Argotec, LLC | Delaware | 100% | ||
Argotec Intermediate Holdings | Delaware | 100% | ||
Argotec LLC | Delaware | 100% | ||
Argotec Asia Pacific Limited | Singapore | 100% | ||
Argotec Deutschland GmBH | Germany | 100% | ||
Argotec International Sales Corporation | Delaware | 100% | ||
Argotec Stevens, LLC | Delaware | 100% |
(1) | Joint venture to produce tobacco-related papers in China. |
(2) | Joint venture to produce reconstituted tobacco in China. |
Dated this 24th day of February 2017 | /s/ Claire L. Arnold | |
Claire L. Arnold |
Dated this 24th day of February 2017 | /s/ K.C. Caldabaugh | |
K.C. Caldabaugh |
Dated this 24th day of February 2017 | /s/ William A. Finn | |
William A. Finn |
Dated this 24th day of February 2017 | /s/ Frédéric P. Villoutreix | |
Frédéric P. Villoutreix |
Dated this 24th day of February 2017 | /s/ John D. Rogers | |
John D. Rogers |
Dated this 24th day of February 2017 | /s/ Anderson D. Warlick | |
Anderson D. Warlick |
Dated this 24th day of February 2017 | /s/ Heinrich Fischer | |
Heinrich Fischer |
Dated this 24th day of February 2017 | /s/ Jeffrey Keenan | |
Jeffrey Keenan |
1. | I have reviewed this annual report on Form 10-K of Schweitzer-Mauduit International, Inc. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ Frédéric P. Villoutreix | |
Frédéric P. Villoutreix Chairman of the Board and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Schweitzer-Mauduit International, Inc. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ Allison Aden | |
Allison Aden Executive Vice President, Finance and Chief Financial Officer |
By: | /s/ Frédéric P. Villoutreix | By: | /s/ Allison Aden | |
Frédéric P. Villoutreix Chairman of the Board and Chief Executive Officer | Allison Aden Executive Vice President, Finance and Chief Financial Officer | |||
February 24, 2017 | February 24, 2017 |
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Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 24, 2017 |
Jun. 30, 2016 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SCHWEITZER MAUDUIT INTERNATIONAL INC | ||
Entity Central Index Key | 0001000623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 30,712,231 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.1 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 82.8 | $ 89.7 | $ 89.7 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (16.7) | (54.4) | (63.0) |
Unrealized gains (losses) on derivative instruments | 13.2 | (24.9) | (4.8) |
Less: Reclassification adjustment for losses on derivative instruments included in net income | 6.5 | 11.6 | 4.6 |
Net loss from postretirement benefit plans | (4.3) | (0.8) | (9.8) |
Less: Amortization of postretirement benefit plans' costs included in net periodic benefit cost | 3.4 | 3.6 | 1.5 |
Other comprehensive income (loss) | 2.1 | (64.9) | (71.5) |
Comprehensive income | $ 84.9 | $ 24.8 | $ 18.2 |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock (dollars per share) | $ 0.1 | $ 0.1 |
Preferred shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0.00 | 0.00 |
Common stock (dollars per share) | $ 0.1 | $ 0.1 |
Common shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares issued (in shares) | 30,544,494 | 30,474,149 |
Common stock outstanding (in shares) | 30,544,494 | 30,474,149 |
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 1.62 | $ 1.54 | $ 1.46 |
General |
12 Months Ended |
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Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Business Schweitzer-Mauduit International, Inc., or SWM or the Company, headquartered in the United States of America, is a multinational diversified producer of highly engineered solutions and advanced materials for a variety of industries. The Company maintains two operating product line segments: Engineered Papers and Advanced Materials and Structures. Historically, through its Engineered Papers ("EP") segment, the Company has primarily served the tobacco industry via the manufacture and sale of paper and reconstituted tobacco products, which remains a key focus. The primary products sold to the tobacco industry include cigarette, plug wrap and base tipping papers, or Cigarette Papers, which are used to wrap various parts of a cigarette, reconstituted tobacco leaf, or RTL, which is used as a blend with virgin tobacco in cigarettes, and reconstituted tobacco wrappers and binders for cigars. These products are sold directly to tobacco companies or their designated converters in the Americas, Europe, Asia, Africa, the Middle East and elsewhere. The EP segment is a manufacturer of lightweight specialty papers used in manufacturing banded papers used in the production of lower ignition propensity, or LIP, cigarettes and also produces premium specialized papers for other applications, including low volume specialized commercial and industrial commodity paper grades produced, among other reasons, to maximize machine utilization. Through its Advanced Materials & Structures, or AMS, segment, the Company is a specialty producer of resin-based plastic netting through an extrusion process, as well as certain meltblown products, machined plastic core tubes, urethane films, and resin-based rolled products for use in other end segments, such as filtration, surface protection, medical and other industrials. As discussed more fully in Note 3. Business Acquisitions, in October 2015, the Company completed the acquisition of Argotec Intermediate Holdings LLC, or Argotec, a manufacturer of urethane films for use in high performance niche applications such as surface and automotive paint protection, glass lamination, medical woundcare and other industrial uses. This acquisition has been incorporated into the AMS segment. We conduct business in over 90 countries and operate 18 production locations worldwide, with facilities in the United States, Canada, United Kingdom, France, Luxembourg, Russia, Brazil, China and Poland. We also have a 50% equity interest in two joint ventures in China. The first, China Tobacco Mauduit (Jiangmen) Paper Industry Ltd., or CTM, produces cigarette and porous plug wrap papers and the second, China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. Ltd., or CTS, produces RTL. As used in this 2016 Annual Report on Form 10-K, unless the context indicates otherwise, references to "we," "us," "our," "SWM," "Schweitzer-Mauduit" or similar terms include Schweitzer-Mauduit International, Inc. and its consolidated subsidiaries. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements and the notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company believes the estimates and assumptions used in the preparation of these consolidated financial statements are reasonable, based upon currently available facts and known circumstances. Actual results may differ from those estimates and assumptions as a result of a number of factors, including those discussed elsewhere in this report and in its other public filings from time to time. Principles of Consolidation The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated. Certain reclassifications of prior year data were made in the notes to consolidated financial statements. The reclassifications were made to conform to the current year presentation. The Company has two joint ventures with China National Tobacco Corporation, or CNTC. CNTC is the principal operating Company under China's State Tobacco Monopoly Administration. CNTC and our subsidiary, Schweitzer-Mauduit International China, Limited, or SM-China, each own 50% of the joint ventures. The paper joint venture China Tobacco Mauduit (Jiangmen) Paper Industry Co. LTD, or CTM, produces tobacco-related papers in China. The second joint venture China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. LTD., or CTS, produces reconstituted tobacco leaf products. The Company uses the equity method to account for both joint ventures. Investment in equity affiliates represents the Company's investment in its China joint ventures. The Company's share of the net income of its 50% owned joint ventures in China are included in the Consolidated Statements of Income as income from equity affiliates. Revenue Recognition The Company recognizes revenue and the related accounts receivable when the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) ownership has transferred to the customer; (3) the selling price is fixed or determinable; and (4) collection is reasonably assured based on the Company's judgment regarding the collectability of its accounts receivable. Generally, the Company recognizes revenue when it ships its manufactured product and title and risk of loss passes to its customer in accordance with the terms of sale of the product. Revenue is recorded at the time of shipment for terms designated free on board, shipping point, or equivalent. For sales transactions designated free on board, destination, or equivalent, revenue is recorded when the product is delivered to the customer's delivery site, at which time title and risk of loss are transferred. Provisions for discounts, returns, allowances, customer rebates and other adjustments are provided for in the same period the related revenue is recorded. Deferred revenue represents advance payments from customers which are earned based upon a mutually agreed-upon amount per unit of future product sales. Freight Costs The cost of delivering finished goods to the Company's customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Any freight costs billed to and paid by a customer are included in revenue. Royalty Income Royalties from third-party patent licenses are recognized when earned, including monies received at an agreement's initiation attributable to past sales. The Company recognizes up-front payments upon receipt when it has no future performance requirement or ongoing obligation arising from its agreements and the payment is for a separate earnings process. Minimum annual royalties received in advance are deferred and are recognized in the period earned. The Company recognized $8.3 million, $9.6 million and $11.1 million of royalty income during 2016, 2015 and 2014 respectively, which is included in net sales in the Consolidated Statements of Income. Foreign Currency Translation The income statements of foreign entities are translated into U.S. dollars at average exchange rates prevailing during the periods presented. The balance sheets of these entities are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in a separate component of accumulated other comprehensive income (loss) as unrealized foreign currency translation adjustments. Foreign currency risks arise from transactions and balances denominated in non-local currencies. Gains and losses resulting from re-measurement and settlement of such transactions and balances, included in other income (expense), net, were a loss of $0.2 million, a gain of $0.8 million and a gain of $1.5 million in 2016, 2015 and 2014, respectively. Derivative Instruments The Company is exposed to changes in foreign currency exchange rates, interest rates and commodity prices. The Company utilizes a variety of practices to manage these market risks, including where considered appropriate, derivative instruments. The Company uses derivative instruments only for risk management purposes and not for trading or speculation. All derivative instruments the Company uses are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The Company believes the credit risks with respect to the counterparties, and the foreign currency risks that would not be hedged if the counterparties fail to fulfill their obligations under the contracts, are not material in view of its understanding of the financial strength of the counterparties. Gains and losses on instruments that hedge firm commitments are deferred and included in the basis of the underlying hedged items. All other hedging gains and losses are included in period income or expense based on the period-end market price of the instrument and are included in the Company's operating cash flows. See Note 13. Derivatives, for additional information. Cash and Cash Equivalents The Company considers all highly liquid, unrestricted investments with remaining maturities of three months or less to be cash equivalents, including money market funds with no restrictions on withdrawals. Business Combinations The Company uses the acquisition method of accounting for business combinations. At the acquisition date, the Company records assets acquired and liabilities assumed at their respective fair market values. The Company estimates fair value using the exit price approach which is the price that would be received to sell an asset or paid to transfer a liability in an orderly market. An exit price is determined from a market participant's viewpoint in the principal or most advantageous market and may result in the Company valuing assets or liabilities at a fair value that is not reflective of the Company's intended use of the assets or liabilities. Any excess consideration above the estimated fair values of the net assets acquired is recognized as goodwill on the Company's Consolidated Balance Sheets. The operating results of acquired businesses are included in the Company's results of operations beginning as of their effective acquisition dates. Acquisition costs are expensed as incurred and were $1.8 million, $2.6 million, and $2.6 million in 2016, 2015 and 2014, respectively. Impairment of Long-Lived Assets, Goodwill and Intangible Assets The Company evaluates the carrying value of long-lived assets, including property and equipment, goodwill and intangible assets when events and circumstances warrant a review. Goodwill is also tested for impairment annually during the fourth quarter. Goodwill may be evaluated using a qualitative evaluation and/or a two-step test at the reporting unit level. The first step compares the book value of the reporting unit to its fair value. If the book value of a reporting unit exceeds its fair value, the Company performs the second step. In the second step, the Company determines an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of all the assets and liabilities other than goodwill is the implied fair value of that goodwill. Any impairment loss is measured as the excess of the book value of the goodwill over the implied fair value of that goodwill. See Note 8. Goodwill for further discussion of the Company's annual impairment test results. During the annual testing in the fourth quarter of 2016, the estimated fair value of each of the Company's reporting units was in excess of its respective carrying value. We have acquired trade names that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, category share, business history, product life cycle and operating plans. Indefinite-lived intangibles are evaluated for impairment annually during the fourth quarter. Additionally, when certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived trade names may be adjusted to a determinable life or an impairment charge may be recorded. In the fourth quarter of 2016, the Company made a strategic decision to transition away from certain legacy business trade names associated with our recent acquisitions in favor of a streamlined SWM branding approach. As a result, during the fourth quarter of 2016, the Company recognized an impairment loss related to the DelStar trade name, the financial impact of which is described in Note 9. Intangible Assets. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, which approximates a straight-line basis, over the estimated periods benefited. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. The carrying value of long-lived assets is reviewed to determine if events or circumstances have changed which may indicate that the assets may be impaired or the useful life may need to be changed. Upon occurrence of such a triggering event, the Company considers internal and external factors relating to each asset group, including expectation of future profitability, undiscounted cash flows and its plans with respect to the operations. If impairment is indicated, an impairment loss is measured by the amount the net carrying value of the asset exceeds its estimated fair value. Environmental Spending Environmental spending is capitalized if such spending qualifies as property, plant and equipment, substantially increases the economic value or extends the useful life of an asset. All other such spending is expensed as incurred, including fines and penalties incurred in connection with environmental violations. Environmental spending relating to an existing condition caused by past operations is expensed. Liabilities are accrued when environmental assessments are probable and the costs can be reasonably estimated. Generally, timing of these accruals coincides with completion of a feasibility study or commitment to a formal plan of action. Capitalized Software Costs The Company capitalizes certain purchases of software and software development costs in connection with major projects of software development for internal use. These costs are included in Other assets on the Consolidated Balance Sheets and are amortized using the straight-line method over the estimated useful life not to exceed seven years. Costs associated with business process redesign, end-user training, system start-up and ongoing software maintenance are expensed as incurred. Amortization of capitalized software was $1.0 million, $2.0 million and $3.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Accumulated amortization of capitalized software costs was $31.5 million and $46.0 million at December 31, 2016 and 2015, respectively. Business Tax Credits Business tax credits represent value added tax credits receivable and similar assets, such as Imposto sobre Circulação de Mercadorias e Serviços, or ICMS, in Brazil. Business tax credits are generated when value-added taxes, or VAT, are paid on purchases. VAT and similar taxes are collected from customers on certain sales. In some jurisdictions, export sales do not require VAT collection. See Note 10. Other Assets for additional information. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that the Company would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Pension and Other Postretirement Benefits Accounting The Company recognizes the estimated compensation cost of employees' pension and other postretirement benefits over their approximate period of service. The Company's earnings are impacted by amounts of expense recorded related to these benefits, which primarily consist of U.S. and French pension benefits and U.S. other postretirement benefits, or OPEBs. Each year's recorded expenses are estimates based on actuarial calculations of the Company's accumulated and projected benefit obligations, or PBOs, for the Company's various plans. Suspension of additional benefits for future service is considered a curtailment, and if material, necessitates a re-measurement of plan assets and PBO. As part of a re-measurement, the Company adjusts its discount rates and other actuarial assumptions, such as retirement, turnover and mortality table assumptions, as appropriate. See Note 16. Postretirement and Other Benefits for additional information. Comprehensive Income Comprehensive income includes net income, as well as items charged and credited directly to stockholders' equity, which are excluded from net income. The Company has presented comprehensive income in the Consolidated Statements of Comprehensive Income (Loss). Reclassification adjustments of derivative instruments are presented in Net sales and Interest expense in the Consolidated Statements of Income. See Note 13. Derivatives for additional information. Amortization of accumulated pension and other post-employment benefit (OPEB) liabilities are included in the computation of net periodic pension and OPEB costs, which are more fully discussed in Note 16. Postretirement and Other Benefits. Components of accumulated other comprehensive loss were as follows ($ in millions):
Changes in the components of accumulated other comprehensive loss were as follows ($ in millions):
Restricted Stock All of the Company's restricted stock grants, including those that have been earned in the case of performance-based shares and cliff-vesting grants that are not performance based, vest upon completion of a specified period of time, typically between two and four years. The fair value of each award is equal to the share price of the Company's stock on the date of the grant. This cost is recognized over the vesting period of the respective award. A summary of outstanding restricted stock awards as of December 31, 2016 and 2015 is included in Note 17. Stockholders' Equity. Restricted Stock Plan Performance Based Shares The Company's long-term incentive compensation program, or LTICP, for key employees includes an equity-based award component that is provided through the Long-term Incentive Plan, or LTIP, which the Company adopted in 2015 and which replaced its previous Restricted Stock Plan, or RSP. The objectives under the LTICP are established at the beginning of a performance cycle and are intended to focus management on longer-term strategic goals. The Compensation Committee of the Board of Directors designates participants in the LTICP and LTIP and determines the equity-based award opportunity in the form of restricted stock for each performance cycle, which is generally measured on the basis of a one year performance period (the measurement period). The restricted shares are considered issued and outstanding when the number of shares becomes fixed, after the annual performance is determined, and such awards vest at the end of the performance year or some predetermined period thereafter. The Company recognizes compensation expense with an offsetting credit to additional paid-in-capital over the performance period based on the fair value of the award at the date of grant, with compensation expense being adjusted cumulatively based on the number of shares expected to be earned according to the level of achievement of performance goals. Fair Value Option The Company has elected not to measure its financial instruments or certain commitments at fair value. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The new guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and expects to utilize the modified retrospective transition approach upon adoption which will require an adjustment to the financial statements to reflect the impact of the guidance. There will be no change to prior period financial statements. The Company does not expect that adoption of this guidance will have a material impact on the consolidated financial statements. In May 2015, FASB issued ASU 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." Currently, investments valued using the practical expedient are categorized within the fair value hierarchy. There is diversity in how certain investments measured at net asset value with future redemption dates should be categorized within the fair value hierarchy which this update addresses. If an investment has its fair value measured at net asset value per share (or its equivalent) using the practical expedient, it should not be categorized in the fair value hierarchy. Removing these types of investments from the fair value hierarchy chart eliminates the diversity in classification of these investments and ensures that all investments categorized in the fair value hierarchy are classified consistently. Investments that calculate net asset value per share (or its equivalent) without the use of the practical expedient will continue to be included in the fair value hierarchy. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance as of January 1, 2016; adoption changed the presentation of investments included in the fair value table in Note 16. Postretirement and Other Benefits, but otherwise did not have a material impact on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This update requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using the Last-in, First-out or the retail inventory method. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect that its adoption will have a material impact on the consolidated financial statements as the Company's inventory is currently measured in accordance with the definitions in the revised guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the pronouncement on the Company's outstanding leases and expects that adoption will have an impact on the Consolidated Balance Sheets related to recording right-of-use assets and corresponding lease liabilities. The Company is currently in the process of evaluating the impact of adoption on the Consolidated Statements of Income. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard makes several modifications to existing guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements but does not currently expect the adoption of this guidance to have a material impact on the financial statements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASC 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the pronouncements on the consolidated financial statements in conjunction with its assessment of ASU 2014-09, as discussed above. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance in the ASU clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The amendments in ASU 2017-01 will be implemented on a prospective basis in the first quarter of 2016 and are not expected to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Business Acquisitions |
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Business Acquisitions | Business Acquisitions On October 28, 2015, the Company acquired Argotec Intermediate Holdings, LLC, or Argotec, through an Equity Interest Purchase Agreement entered into, by and among the Company, SWM Argotec, LLC, an indirect wholly-owned subsidiary of the Company, Argotec Intermediate Holdings Two LLC, and certain equity holders of Argotec Holdings LLC. The acquisition of Argotec expanded and diversified SWM's global presence in advanced materials and is now a part of the Company's AMS segment. Total consideration paid by the Company was $282.7 million in cash, subject to certain customary post-closing adjustments, primarily for the adjusted value of working capital at the acquisition date. The acquisition was financed using borrowings under the Company's Amended Credit Agreement, see Note 12. Debt, for additional information. The consideration paid for Argotec and the fair values of the assets acquired and liabilities assumed as of the October 28, 2015 acquisition date were as follows ($ in millions):
The Company used the income, market, or cost approach (or a combination thereof) for the valuation as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Market participants are considered to be buyers and sellers in the principal or most advantageous market for the asset or liability. For certain items, the carrying amount was determined to be a reasonable approximation of fair value based on information available to SWM management. The fair value of receivables acquired from Argotec on October 28, 2015 was $16.1 million, with gross contractual amounts receivable of $16.8 million. Acquired inventories and property, plant and equipment were recorded at their fair values. Acquired intangible assets are primarily customer relationships, trade names and non-competition agreements. Properties acquired included a manufacturing and related facility, land and leased sites that include leasehold improvements, and machinery and equipment for use in manufacturing operations. Management valued properties using the cost approach supported where available by observable market data which included consideration of obsolescence. One of the properties acquired, the Argotec-Stevens facility in Easthampton, Massachusetts with an estimated fair value of $1.0 million, was held for sale as of the acquisition date and during the fourth quarter of 2015 came under contract for sale to a third party. The sale of this property was completed in April 2016 and no gain or loss was recognized on the disposition. Intangible assets acquired included trade names that are both business-to-business and business-to-consumer. In addition to these intangible assets, the Company acquired a number of customer relationships in the aeronautical, transportation, graphics, medical and industrial markets. Management valued intangible assets using the relief from royalty and multi-period excess earnings methods, both forms of the income approach supported by observable market data for peer companies. The following table shows the fair values assigned to intangible assets ($ in millions):
In connection with the acquisition, the Company recorded goodwill, which represents the excess of the consideration transferred over the fair value of tangible and intangible assets acquired, net of liabilities assumed. The goodwill is attributed primarily to Argotec's revenue growth from combining the SWM and Argotec business and workforce as well as the benefits of access to different markets and customers. Goodwill from the Argotec acquisition was assigned to the AMS reportable segment. The goodwill from this acquisition was determined on the basis of the preliminary fair values of the assets and liabilities identified as part of the transaction and is expected to be deductible for tax purposes. In 2016 and 2015, the Company recognized $0.4 million and $1.8 million in direct and indirect acquisition-related costs. In 2015, the Company incurred $7.4 million in financing costs related to the acquisition. Direct and indirect acquisition-related costs were expensed as incurred and are included in the General Expense line item in the Consolidated Statements of Income. Financing costs related to expanding the Credit Agreement have been capitalized and will be amortized in Interest Expense over the life of the Credit Agreement. The amounts of the acquisition's Net Sales and Income from Continuing Operations included in the Company's Consolidated Statements of Income for the year ended December 31, 2015, and the unaudited pro forma Net Sales and Income from Continuing Operations of the combined entity had the acquisition date been January 1, 2014 are as follows ($ in millions):
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations The Company's former paper mill in San Pedro, Philippines has been reported as discontinued operations. This operation was previously presented as a component of the EP segment. The sale of the Philippines mill was finalized in the fourth quarter of 2013 and resulted in a gain of $1.6 million. For all periods presented, results of this mill have been removed from each individual line within the statements of income and the operating activities section of the statements of cash flow. In each case, a separate line has been added for the net results of discontinued operations. Included in Other Assets and Accrued Expenses within the Consolidated Balance Sheets were the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions):
Summary financial results of discontinued operations were as follows ($ in millions):
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Accounts Receivable |
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Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable Accounts receivable are summarized as follows ($ in millions):
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are valued at the lower of cost using the First-In, First-Out, or FIFO, and weighted average methods, or market. The Company's costs included in inventory primarily consist of pulp, resins, chemicals, direct labor, utilities, maintenance, depreciation, finishing supplies and an allocation of facility overhead costs. Machine start-up costs or abnormal machine shut downs are expensed in the period incurred and are not reflected in inventory. The definition of market value, with respect to all inventories, is replacement cost or net realizable value. The Company reviews inventories at least quarterly to determine the necessity of write-offs for excess, obsolete or unsalable inventory. The Company estimates write-offs for inventory obsolescence and shrinkage based on its judgment of future realization. These reviews require the Company to assess customer and market demand. The following schedule details inventories by major class ($ in millions):
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Interest is capitalized as a component of the cost of construction for large projects. Expenditures for betterments are capitalized whereas normal repairs and maintenance are expensed as incurred. Property, other than land, is depreciated on a straight-line basis for financial reporting purposes. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the balance sheet, and any gain or loss on the transaction is normally included in cost of products sold. Property, plant and equipment (and related depreciable lives) consisted of the following ($ in millions):
Depreciation expense was $29.4 million, $30.7 million and $35.3 million for the years ended December 31, 2016, 2015, and 2014, respectively. During 2015, the physical assets of our RTL facility in the Philippines were reclassified from Property, plant and equipment, net to Assets held for sale on our Consolidated Balance Sheets. At December 31, 2016, the net realizable value of these assets was $17.2 million. |
Goodwill |
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Goodwill | Goodwill The Company evaluates goodwill for impairment at least annually during the fourth quarter. The annual tests during the fourth quarters of 2016, 2015 and 2014 resulted in no impairment. Each of the Company's two reportable segments, EP and AMS, have goodwill. The EP segment recorded $2.7 million in accumulated impairment losses in 2010. There are no accumulated impairment losses in the AMS segment as of December 31, 2016. The changes in the carrying amount of goodwill for each reportable segment were as follows ($ in millions):
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Intangible Assets |
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Intangible Assets | Intangible Assets The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions):
Amortization expense of intangible assets was $12.3 million, $5.6 million and $3.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. Finite-lived intangibles in the AMS segment are expensed using the straight-line amortization method. In our AMS segment, the Company made a strategic decision to transition away from certain legacy business trade names associated with its recent acquisitions in favor of a streamlined SWM branding approach. As a result of adopting this branding strategy, in the fourth quarter of 2016, the Company recognized an impairment expense of $20.7 million, representing a write-down of the DelStar trade name intangible asset to its fair market value, leaving a remaining balance of $0.8 million, which will be amortized over the first six months of 2017, as the DelStar trade name is phased out. The carrying value of the DelStar trade name has been reclassified from Unamortized Intangible Assets to Amortized Intangible assets in the table above as of December 31, 2016. The following table shows the estimated aggregate amortization expense for the next five years ($ in millions):
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consisted of the following ($ in millions):
The Company's ICMS credits in Brazil are fully reserved. These credits do not expire. The Company is still exploring other actions to utilize the credits. Charges and credits associated with normal ongoing activity are included in Cost of Products Sold in the Consolidated Statements of Income. Future material changes as a result of new legislation or a change in our operations will be reported separately. Grantor trust assets consist primarily of cash surrender values in Company-owned life insurance policies held by a trust to be used for the eventual payment of employee deferred compensation. These assets are restricted from Company use until all obligations are satisfied. |
Restructuring and Impairment Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred restructuring and impairment expenses of $25.6 million, $14.6 million and $13.1 million in the years ended December 31, 2016, 2015 and 2014, respectively. In the EP segment, restructuring and impairment expenses were $4.0 million, $14.4 million and $11.3 million during the years ended December 31, 2016, 2015 and 2014, respectively. In 2016, restructuring and impairment expenses in the EP segment consisted of $3.4 million related to severance expenses in the French, Brazilian and U.S. operations for ongoing accruals over the remaining service lives of affected employees related to previously announced actions as well as $0.6 million of impairment charges to certain of the Company's manufacturing equipment in Poland and Brazil. In 2015, restructuring and impairment expenses in the EP segment consisted of $7.8 million related to severance expenses in the French, Brazilian and U.S. operations for ongoing accruals over the remaining service lives of affected employees related to previously announced actions as well as $1.4 million of impairment charges to certain of the Company's Polish and Brazilian manufacturing equipment and $5.2 million of loss recognized to adjust the recorded value of equipment at the Philippines RTL location to its estimated fair value less cost to sell as discussed in more detail below. During 2014, restructuring and impairment expenses in the EP segment primarily related to $9.4 million related to severance expenses in the French, Brazilian and U.S. operations for ongoing accruals over the remaining service lives of affected employees related to previously announced actions as well as losses on disposal of the Company's Lee Mills and Golden Hills manufacturing facilities of $1.0 million and asset impairment expenses at the Company's manufacturing facility in Canada of $0.9 million. The fair value of the RTL Philippines facility was determined by using independent appraisals of certain assets, which are considered significant unobservable inputs, or Level 3 inputs. The Company incurred $21.3 million, reversed $0.2 million and incurred $0.4 million in restructuring and impairment expenses in 2016, 2015, and 2014, respectively, within the AMS segment. During 2016, $20.7 million of the expense in the AMS segment was attributable to the impairment of the DelStar trade name, as discussed in Note 9. Intangible Assets. The remaining amount in 2016 and the total expense in 2015 and 2014 related to accruals for severance incurred during the acquisition of the assets from Smith & Nephew in December 2014. Additionally, the Company incurred $0.3 million, $0.4 million, and $1.4 million in 2016, 2015, and 2014, respectively, in restructuring expenses related to accruals for severance expenses within supporting overhead departments which were not allocated to a specific segment. Restructuring liabilities were classified within Accrued expenses in each of the Consolidated Balance Sheets as of December 31, 2016 and 2015. Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows ($ in millions):
Long-lived assets to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the assets; the asset are available for immediate sale in present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; the sale of the assets is probable, and transfer of the assets is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the assets beyond one year; the assets are being actively marketed for sale at a price that is reasonable in relation to current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. The fair value of a long-lived asset less any costs to sell is assessed each reporting period it remains classified as held for sale and any reduction in fair value is reported as an adjustment to the carrying value of the asset. Upon being classified as held for sale, depreciation is ceased. Long-lived assets to be disposed of other than by sale are continued to be depreciated. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the assets and liabilities of the disposal group, if material, are reported in the line item "Assets held for sale" in our condensed consolidated balance sheets. In early 2015, the Company made the decision to dispose of the Company’s mothballed RTL facility and related equipment in the Philippines. These assets are included in the EP segment. During 2015, the Company reclassified the equipment at this location, along with the land and building associated with the property, from Property, plant and equipment, net, to Assets held for sale on the consolidating balance sheets. The reclassifications were made for all assets that are expected to be sold within one year of the balance sheet date and, as of December 31, 2015, all of the physical assets of this entity were classified as Assets held for sale. As discussed above, during the year ended December 31, 2015, the Company incurred $5.2 million in impairment expense to write-down the carrying value of these assets to the net realizable value. There were no impairment charges related to these assets recorded during 2016. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Total debt, net of debt issuance costs, is summarized in the following table ($ in millions):
Credit Agreement On October 28, 2015 Schweitzer-Mauduit International, Inc. entered into a Second Amended and Restated Credit Agreement, or the Amended Credit Agreement, with JPMorgan Chase Bank, N.A., as administrative agent, providing for credit facilities in the aggregate principal amount of $1 billion, consisting of a $650 million revolving credit facility, or Revolving Credit Facility available to the Company; a $100 million Term Loan A-1 (“Term Loan A-1”) made to the Company; and a $250 million Term Loan A-2 (“Term Loan A-2” and, together with Term Loan A-1, the “Term Loans”) made to the Company. The Revolving Credit Facility matures on October 28, 2020. The Term Loan A-1 amortizes at the rate of 5.0% for the first two years, at the rate of 10.0% for the final three years and matures on October 28, 2020. The Term Loan A-2 amortizes at the rate of 1.0% per year and matures on October 28, 2022. The Term Loans are generally subject to mandatory repayment out of the net cash proceeds of asset sales which are not reinvested in operating assets. The credit facilities are secured by substantially all of the personal property of the Company and its domestic subsidiaries. In December 2015, the Company prepaid the full amount of amortization for Term Loan A-1, which totaled $40 million. The interest rate margins applicable to the Revolving Credit Facility and the Term Loans under the Amended Credit Agreement are based on a fluctuating rate of interest measured by reference to either, at the Company's option, (i) a base rate, plus an applicable margin, which ranges from 0.25% to 1.25%, in the case of the Revolving Credit Facility and Term Loan A-1, and from 0.50% to 1.50%, in the case of Term Loan A-2, or (ii) an adjusted London interbank offered rate (adjusted for maximum reserves) (“LIBOR”), plus an applicable margin, which ranges from 1.25% to 2.25%, in the case of the Revolving Credit Facility and Term Loan A-1, and from 1.50% to 2.50%, in the case of Term Loan A-2. The applicable margin, in each case, is adjusted from time to time based on the Company's ratio of net debt to EBITDA as defined by the Amended Credit Agreement. As of December 31, 2016, the average applicable interest rate on Amended Credit Agreement borrowings was 2.53% on US Revolving Credit Facility borrowings, 1.75% on Euro Revolving Credit Facility borrowings, 2.50% on Term Loan A-1 borrowings and 2.81% on Term Loan A-2 borrowings. The Amended Credit Agreement also contains representations and warranties which are customary for facilities of this type and covenants and provisions that, among other things, require the Company to maintain (a) a maximum net debt to EBITDA ratio of 3.50, reducing to 3.00 after September 30, 2016 and (b) minimum interest coverage of 3.00. The Amended Credit Agreement contains provisions allowing the Company to increase the leverage ratio upon the occurrence of a material acquisition or the occurrence of unsecured indebtedness. The Company was in compliance with all of its covenants under the Amended Credit Agreement at December 31, 2016. French Employee Profit Sharing At both December 31, 2016 and 2015, long-term debt other than the Amended Credit Agreement primarily consisted of obligations of the French operations related to government-mandated profit sharing. Each year, representatives of the workers at each of the French businesses can make an election for the profit sharing amounts from the most recent year ended to be invested in a financial institution or with their respective employer. To the extent that funds are invested with the Company, these amounts bear interest at 0.80% and 1.08% at December 31, 2016 and 2015, respectively, and are generally payable in the fifth year subsequent to the year in which the profit sharing is accrued. Bank Overdrafts The Company also had bank overdraft facilities of $27.3 million and $28.9 million, at December 31, 2016 and 2015, respectively, of which none was outstanding at either December 31, 2016 or 2015, and reported as current debt on the Consolidated Balance Sheets. Interest is incurred on outstanding amounts at market rates and was 0.14% and 0.30%, respectively, at December 31, 2016 and 2015. No commitment fees are paid on the unused portion of these facilities. Rate Swap Agreement The Company maintained a forward interest rate swap agreement on a portion of its long-term debt as of December 31, 2016 that will fix the LIBOR rate on $50.0 million of the Company's variable-rate long-term debt as of October 2014 at a predetermined rate plus a credit spread through the end of October 2018. The impact of swap agreements on the consolidated financial statements was not material for the years ended December 31, 2016 and 2015. See Note 13. Derivatives for more information. Principal Repayments Under the Amended Credit Agreement, the Company selects an "interest period" for each of its borrowings from the Revolving Credit Facility. The Company can repay such borrowings and borrow again at a subsequent date if it chooses to do so, providing it flexibility and efficient use of any excess cash. The Company currently has the intent and ability to allow its debt balances to remain outstanding and expects to continue to file notices of continuation related to its borrowings outstanding at December 31, 2016 such that those amounts are not expected to be repaid prior to the December 2020 expiration of the Revolving Credit Facility. Following are the expected maturities for the Company's debt obligations as of December 31, 2016 ($ in millions):
Fair Value of Debt At December 31, 2016 and 2015, the estimated fair values of the Company's current and long-term debt approximated the respective carrying amounts, as the interest rates were variable and based on current market indices. Debt Issuance Costs In conjunction with the Amended Credit Agreement, the Company capitalized approximately $7.4 million, in the fourth quarter of 2015, in deferred debt issuance costs associated with the new facility which will be amortized over the term of the related debt instrument. As of December 31, 2016 and 2015, the Company's total deferred debt issuance costs totaled $7.0 million and $8.7 million, respectively. Amortization expense of $1.7 million and $0.9 million was recorded during the years ended December 31, 2016 and 2015, respectively, and has been included as a component of Interest Expense in the accompanying Consolidated Statements of Income. Following is the expected future amortization of the Company's deferred debt issuance costs as of December 31, 2016 ($ in millions):
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives In the normal course of business, the Company is exposed to foreign currency exchange rate risk and interest rate risk on its variable-rate debt. To manage these risks, the Company utilizes a variety of practices including, where considered appropriate, derivative instruments. The Company has no derivative instruments for trading or speculative purposes or any derivatives with credit risk-related contingent features. All derivative instruments used by the Company are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The fair values of the Company's derivative instruments are determined using observable inputs and are considered Level 2 assets or liabilities. The Company utilizes currency forward, swap and, to a lesser extent, option contracts to selectively hedge its exposure to foreign currency risk when it is practical and economical to do so. The use of these contracts minimizes transactional exposure to exchange rate changes. We designate certain of our foreign currency hedges as cash flow hedges. Changes in the fair value of cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. For foreign exchange contracts not designated as cash flow hedges, changes in the contracts' fair value are recorded to net income each period. The Company selectively hedges its exposure to interest rate increases on variable-rate, long-term debt when it is practical and economical to do so. Changes in the fair value of interest rate contracts considered cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2016 ($ in millions):
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2015 ($ in millions):
The following table provides the gross effect that derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions):
The Company's designated derivative instruments are highly effective. As such, related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing, there were no gains or losses recognized immediately in income for the years ended December 31, 2016, 2015 or 2014. The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions):
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Accrued Expenses |
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Accrued Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following ($ in millions):
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components ($ in millions):
An analysis of the provision (benefit) for income taxes from continuing operations follows ($ in millions):
A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions):
The Company considers the undistributed earnings of certain foreign subsidiaries to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes has been made thereon. Upon distribution of those earnings in the form of dividends, loans to the U.S. parent, or otherwise, the Company could be liable for both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to foreign tax authorities. Determination of the amount of unrecognized deferred U.S. tax liability is not practicable because of the complexities associated with this hypothetical calculation. Net deferred income tax assets (liabilities) were comprised of the following ($ in millions):
As of December 31, 2016 the Company had approximately $95.1 million of tax effected operating loss carryforwards available to reduce future taxable income in various jurisdictions which will expire on various dates as follows:
In addition, the Company has $8.6 million and $1.1 million of foreign and state tax credits that will expire between 2017 - 2026 and 2017 - 2027, respectively. The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards for certain entities. The valuation allowance on deferred tax assets as of December 31, 2016, in Luxembourg, the Philippines and Spain total $169.0 million, $15.4 million and $9.3 million respectively, fully reserving the net deferred tax asset balances in these locations. We believe that it is more likely than not that the benefit from certain state tax attributes will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.1 million on the related deferred tax assets. The Company's assumptions, judgments and estimates relative to the valuation of these net deferred tax assets take into account available positive and negative evidence of realizability, including recent financial performance, the ability to realize benefits of restructuring and other recent actions, projections of the amount and category of future taxable income and tax planning strategies. Actual future operating results and the underlying amount and category of income in future periods could differ from the Company's current assumptions, judgments and estimates. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets. The following table summarizes the activity related to the Company's unrecognized tax benefits related to income taxes ($ in millions):
The liability for unrecognized tax benefits included $0.4 million as of December 31, 2016 that if recognized would impact the Company's effective tax rate. We believe that it is reasonably possible that a decrease of up to approximately $2.1 million in unrecognized tax benefits may be recognized by the end of 2017 as a result of a lapse of the statute of limitations and other regulatory filings. The Company's policy with respect to penalties and interest in connection with income tax assessments or related to unrecognized tax benefits is to classify penalties as provision for income taxes and interest as interest expense in its Consolidated Statements of Income. There were no material income tax penalties or interest accrued during the years ended December 31, 2016, 2015 and 2014. The Company files income tax returns in the U.S. Federal and several state jurisdictions as well as in many foreign jurisdictions. With certain exceptions, the Company is no longer subject to U.S. Federal, state and local, or foreign income tax examinations for years before 2013. |
Postretirement and Other Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement and Other Benefits | Postretirement and Other Benefits North American Pension and Postretirement Healthcare and Life Insurance Benefits The U.S. operations have defined benefit retirement plans that cover certain full-time employees. Retirement benefits are based on either a cash balance benefit formula or a final average pay formula for certain employees who were "grandfathered" and retained retirement benefits under the terms of the plan prior to its amendment to include a cash balance benefit formula. Benefits related to the U.S. defined benefit and pension plan are frozen for all employees. The U.S. operations also have unfunded healthcare and life insurance benefit plans, or OPEB plans, which cover certain of its retirees through age 65. Some employees who retained benefits under the terms of the Company's plans prior to certain past amendments receive retiree healthcare coverage at rates subsidized by the Company. For other eligible employees, retiree healthcare coverage access is offered at full cost to the retiree. The postretirement healthcare plans include a limit on the Company's share of costs for current and future retirees. The U.S. operations' retiree life insurance plans are noncontributory. The Company's Canadian postretirement benefits liability is immaterial and therefore is not included in these disclosures. French Pension Benefits In France, employees are covered under a government-administered program. In addition, the Company's French operations sponsor retirement indemnity plans, which pay a lump sum retirement benefit to all of its permanent employees who retire. In addition, the Company's French operations sponsor a supplemental executive pension plan. Plan assets are principally invested in the general asset portfolio of a French insurance company. U.S. and French Pension and U.S. Other Postretirement Benefit Disclosures The U.S. pension and OPEB plans and French pension plans accounted for the majority of the Company's total plan assets and total Accumulated Benefit Obligations (ABO) at December 31, 2016 for the Company and all of its consolidated subsidiaries. The Company uses a measurement date of December 31 for its pension plans in the United States and France and other postretirement healthcare and life insurance benefit plans in the United States. The funded status of these plans as of December 31, 2016 and 2015 was as follows ($ in millions):
The PBO and ABO exceeded the fair value of pension plan assets for the Company's French defined benefit pension plans as of December 31, 2016 and 2015 and U.S. defined benefit plan as of December 31, 2016 as follows ($ in millions):
As of December 31, 2016, the pre-tax amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost for the U.S. and French pension plans and other postretirement benefit plans in the United States are as follows ($ in millions):
The amounts in accumulated other comprehensive loss at December 31, 2016, which are expected to be recognized as components of U.S. and French net periodic benefit cost in 2017 are as follows ($ in millions):
Actuarial assumptions are used to determine the Company's benefit obligations. The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle pension obligations. The discount rate fluctuates from year to year based on current market interest rates for high-quality, fixed-income investments. The Company also evaluates the expected average duration of its pension obligations in determining its discount rate. An assumed long-term rate of compensation increase is also used to determine the PBO. The weighted average assumptions used to determine benefit obligations as of December 31, 2016 and 2015 were as follows:
The U.S. postretirement healthcare plan provides for benefits to be limited to a cost ceiling which has already been reached. Therefore, no increases in the health care cost trend rates are included in the measurement of the plan's benefit obligation. The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the years ended December 31, 2016, 2015 and 2014 were as follows ($ in millions):
Assumptions are used to determine net periodic benefit costs. In addition to the discount rate and rate of compensation increase, which are used to determine benefit obligations, an expected long-term rate of return on plan assets is also used to determine net periodic pension benefit costs. The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows:
The Company's investment strategy with respect to its U.S. pension plan assets is to maximize the return on investment of plan assets at an acceptable level of risk and to assure the plans' fiscal health. The target asset allocation varies based on the funded status of the plan in an effort to match the duration of the plan's liabilities to investments in long duration fixed income assets over time. The Company's investments under the French pension plans are primarily invested as directed by governmental authorities, their contracted providers or the participants without direction from the Company. The primary goal of the Company's pension plans is to maintain the highest probability of assuring future benefit payments to participants while providing growth of capital in real terms. To achieve this goal, the investment philosophy is to protect plan assets from large investment losses, particularly over time, while steadily growing the assets in a prudent manner. While there cannot be complete assurance that the objectives will be realized, the Company believes that the likelihood of realizing the objectives are reasonable based upon this investment philosophy. The Company has an investment committee that meets on a periodic basis to review the portfolio returns and to determine asset mix targets. The U.S. and French pension plans' asset target allocations by asset category for 2017 and actual allocations by asset category at December 31, 2016 and 2015 were as follows:
The Company's pension assets are classified according to an established fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument's level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described below:
The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2016 ($ in millions):
The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2015 ($ in millions):
** Alternative investments include ownership interests in shares of registered investment companies. Values for Level 3 assets may be determined through appraisals and models for illiquid assets. The following table shows the changes in Level 3 asset values ($ in millions):
The Company expects the following estimated undiscounted future pension benefit payments for the United States and France and future postretirement healthcare and life insurance benefit payments for the United States, which are to be made from pension plan and employer assets, net of amounts that will be funded from retiree contributions, and which reflect expected future service, as appropriate ($ in millions):
The Company is not required to contribute during 2017 to its U.S. pension plans although, it may make discretionary contributions dependent on market conditions to remain aligned with its investment policy statement. The Company is required to make a contribution of $1.2 million during 2017 to its French pension plan. Other Foreign Pension Benefits In Brazil, Poland and the United Kingdom, employees are covered under government-administered programs. In Canada, the employee pension benefits are not significant and therefore are not included in the above disclosures. Other Benefits We sponsor a qualified defined contribution plan covering substantially all U.S. employees. Under the plan, the Company matches a portion of employee contributions. The Company's cost under the plan was $2.5 million, $2.5 million and $2.0 million for the years ended December 31, 2016, 2015 and 2014, respectively. The Company provides U.S. executives, certain other key personnel and its directors the opportunity to participate in deferred compensation plans. Participating employees can elect to defer a portion of their salaries and certain other compensation. Participating directors can elect to defer their meeting fees, as a cash deferral, as well as their quarterly retainer fees, as deferred stock unit credits. The Company's liability balance under these deferred compensation plans totaled $15.4 million and $13.3 million at December 31, 2016 and 2015, respectively, which were included in the Consolidated Balance Sheets in other liabilities. In connection with these plans, the Company has a grantor trust into which it has contributed funds toward its future obligations under the various plans (See Note 10. Other Assets). The balance of grantor trust assets totaled $10.3 million and $9.6 million at December 31, 2016 and 2015, respectively, which were included in Other assets in the Consolidated Balance Sheets. These assets are restricted from Company use until all obligations are satisfied. In accordance with French law, certain salaried employees in France may accumulate unused regular vacation and supplemental hours of paid leave that can be credited to an individual's Compte Epargne Temps, or CET. The CET account may grow over an individual's career and the hours accumulated may be withdrawn upon retirement or under other special circumstances at the individual's then current rate of pay. The balance of the Company's liability for this program reflected in the accompanying Consolidated Balance Sheets in Other liabilities was $5.3 million and $6.2 million at December 31, 2016 and 2015, respectively. |
Stockholders' Equity |
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Stockholders' Equity | Stockholders' Equity Restricted Stock Plan In April 2015, the Company adopted a new 2015 Long-term Incentive Plan, or LTIP, which replaced its existing Restricted Stock Plan ("RSP"). The LTIP is intended to promote the Company's long-term financial success by attracting and retaining outstanding executive personnel and to motivate such personnel by means of equity grants. The Compensation Committee of the Company's Board of Directors selects participants and establishes the terms of any grant of restricted stock. The Company's LTIP provides that issuance of restricted stock immediately transfers ownership rights in shares of its Common Stock to the recipient of the grant, including the right to vote the shares and to receive dividends thereon. Other types of stock awards are available under the LTIP, but not currently used. The recipient's continued ownership of and right to freely transfer the restricted stock is subject to such conditions on transferability and to such risks of forfeiture as are established by the Compensation Committee at the time of the grant, which may include continued employment with the Company for a defined period, achievement of specified management performance objectives or other conditions established by the Compensation Committee. The number of shares which may be issued under the LTIP is limited to 5,000,000. Restricted shares outstanding under the RSP will continue to vest in accordance with the terms of each grant, however, no further grants of shares will be issued under the RSP. No single participant may be awarded, in the aggregate, more than 750,000 shares during any fiscal year. As of December 31, 2016, 1,360,020 restricted shares had been issued under the Company's restricted stock plans of which 224,289 shares of issued restricted stock were not yet vested and for which $2.3 million in unrecognized compensation expense is expected to be recognized over a weighted average period of 1.9 years. The following table presents restricted stock activity for the years 2016, 2015 and 2014:
Restricted Stock Plan Performance Based Shares During 2016, the Company recognized $2.8 million for 167,961 shares earned under the 2016-2017 award opportunity and $1.5 million of compensation expense earned under the 2015-2016 award opportunity. During 2015, the Company recognized $1.8 million for 71,228 shares earned under the 2015-2016 award opportunity and $0.6 million of compensation expense earned under the 2014-2015 award opportunity. During 2014, the Company recognized $1.1 million of compensation expense for 43,842 shares earned under the 2014-2015 award opportunity and $3.1 million of compensation expense earned under the 2013-2014 award opportunity. Basic and Diluted Shares Reconciliation The Company uses the two-class method to calculate earnings per share. The Company has granted restricted stock that contains nonforfeitable rights to dividends on unvested shares. Since these unvested shares are considered participating securities under the two-class method, the Company allocates earnings per share to common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Diluted net income per common share is computed based on net income divided by the weighted average number of common and potential common shares outstanding. Potential common shares during the respective periods are those related to dilutive stock-based compensation, including long-term share-based incentive compensation, stock options outstanding, and directors' accumulated deferred stock compensation which may be received by the directors in the form of stock or cash. A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases Future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2016 are as follows ($ in millions):
Rental expense under operating leases was $6.9 million during 2016, $6.8 million during 2015 and $6.1 million during 2014. Other Commitments The EP segment's PDM Industries mill has a minimum annual commitment of approximately $2.0 million per year for calcium carbonate purchases, a raw material used in the manufacturing of some paper products, which totals approximately $11.4 million through 2024. Future purchases are expected to be at levels that exceed such minimum levels under these contracts. The Company enters into certain other immaterial contracts from time to time for the purchase of certain raw materials. The Company also enters into certain contracts for the purchase of equipment and related costs in connection with its ongoing capital projects. The Company has agreements with an energy cogeneration supplier in France whereby the supplier constructed and operates a cogeneration facility at certain mills and supplies steam that is used in the operation of these mills. The Company is committed to purchasing minimum annual amounts of steam generated by these facilities under the agreements through 2018. These minimum annual commitments total approximately $2.3 million. The Company's current and expected requirements for steam at these facilities are at levels that exceed the minimum levels under the contracts. The EP segment's Brazilian mill, SWM-B, has an agreement for the transmission and distribution of energy that covers all of the mill's consumption of electrical energy valued at approximately $3.4 million annually through 2020. The French mills have contracts for natural gas to be distributed to and consumed at PdM, LTRI and St. Girons. The value of the natural gas and distribution to be provided under these contracts is estimated at approximately $8.1 million in 2017. The Company has certain other letters of credit, guarantees and surety bonds outstanding at December 31, 2016, which are not material either individually or in the aggregate. Litigation Imposto sobre Circulação de Mercadorias e Serviços, or ICMS, a form of value-added tax in Brazil, was assessed to our Brazilian subsidiary Schweitzer-Mauduit do Brasil Indústria e Comércio de Papel Ltda. ("SWM-B") in December of 2000. SWM-B received two assessments from the tax authorities of the State of Rio de Janeiro for unpaid ICMS taxes on certain raw materials from January 1995 through November 2000, collectively the Raw Materials Assessment. The Raw Materials Assessments concerned the accrual and use by SWM-B of ICMS tax credits generated from the production and sale of certain non-tobacco related grades of paper sold domestically that are immune from the tax to offset ICMS taxes otherwise owed on the sale of products that are not immune. SWM-B has contested the Raw Materials Assessments based on Article 150, VI of the Brazilian Federal Constitution of 1988, which grants immunity from ICMS taxes to papers intended for printing books, newspapers and periodicals, or immune papers, and thus to the raw material inputs used to produce immune papers. One of the two assessments, or Assessment 1 (case number 2001.001.115144-5), related in part to tax periods that predated our acquisition of the Pirahy mill in Pirai, Brazil. In October 2015, the Federal Supreme Court denied the State’s appeal of Assessment 1, in the amount of approximately $16 million, a decision which is now final. The second assessment, or Assessment 2 (case number 2001.001.064544-6), pertains exclusively to periods that SWM-B owned the Pirahy mill. Assessment 2 in the amount of approximately $13 million remains pending before the Federal Supreme Court of Brazil on SWM-B’s appeal on the merits and is likely to be finally decided by the action of the chamber of the court hearing the matter. No docket entry has been made yet regarding argument on Assessment 2. SWM-B has received assessments from the tax authorities of the State of Rio de Janeiro for unpaid ICMS and Fundo Estadual de Combate à Pobreza (FECP) taxes on interstate purchases of electricity. The state issued three assessments against SWM-B, one for May 2006 - November 2007, a second for January 2008 - December 2010, and in October 2013, a third assessment for September 2011 - September 2013, collectively the Electricity Assessment. SWM-B has challenged all three Electricity Assessments in administrative proceedings before the state tax council (Junta de Revisão Fiscal) based on Resolution 1.610/89, which defers these taxes on electricity purchased by an "electricity-intensive consumer." SWM-B received assessments from the tax authorities of the State of Rio de Janeiro for unpaid ICMS and Fundo Estadual de Combate à Pobreza (FECP, a value-added tax similar to ICMS) taxes on interstate purchases of electricity. The state issued three sets of assessments against SWM-B, one for May 2006 - November 2007, a second for January 2008 - December 2010, and a third for September 2011 - September 2013, collectively the Electricity Assessments. SWM-B has challenged all three Electricity Assessments in administrative proceedings before the state tax council (in the first-level court Junta de Revisão Fiscal and the appellate court Conselho de Contribuintes) based on Resolution 1.610/89, which defers these taxes on electricity purchased by an "electricity-intensive consumer." In October and November 2014, a majority of the Conselho de Contribuintes sitting en banc ruled against SWM-B in each of the first and second electricity assessments. The State issued notices to SWM-B to pay approximately $5 million in the first electricity assessment and $9 million in the second electricity assessment, based on the foreign currency exchange rate at December 31, 2016. SWM-B filed separate challenges to these electricity assessments in further court proceedings in the state judicial system, and different chambers of the judicial court granted SWM-B preliminary injunctions against enforcement. SWM-B's challenge to the third electricity assessment (approximately $4 million as of December 31, 2016) was decided adversely to SWM-B at the first administrative level (Junta de Revisão Fiscal) and has been appealed to the Conselho de Contribuintes. SWM-B believes that both the remaining Raw Materials Assessment and the Electricity Assessments will ultimately be resolved in its favor. No liability has been recorded in our consolidated financial statements for these assessments based on our evaluation of these matters under the facts and law as presently understood. The Company can give no assurance as to the ultimate outcome of such proceedings. Environmental Matters The Company's operations are subject to various nations' federal, state and local laws, regulations and ordinances relating to environmental matters. The nature of the Company's operations exposes it to the risk of claims with respect to various environmental matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental laws and regulations, it believes that its future cost of compliance with environmental laws, regulations and ordinances, and its exposure to liability for environmental claims and its obligation to participate in the remediation and monitoring of certain hazardous waste disposal sites, will not have a material effect on its financial condition or results of operations. However, future events, such as changes in existing laws and regulations, or unknown contamination of sites owned, operated or used for waste disposal by the Company (including contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on its financial condition or results of operations. The Company incurs spending necessary to meet legal requirements and otherwise relating to the protection of the environment at its facilities in the United States, France, Poland, Brazil, China and Canada. For these purposes, the Company incurred total capital expenditures of $2.8 million in 2016, and expects to incur less than $1.0 million in each of 2017 and 2018, of which no material amount is the result of environmental fines or settlements. The foregoing capital expenditures are not expected to reduce the Company's ability to invest in other appropriate and necessary capital projects and are not expected to have a material adverse effect on its financial condition or results of operations. Indemnification Matters In connection with its spin-off from Kimberly-Clark in 1995, the Company undertook to indemnify and hold Kimberly-Clark harmless from claims and liabilities related to the businesses transferred to it that were not identified as excluded liabilities in the related agreements. As of December 31, 2016, there are no claims pending under this indemnification that the Company deems to be material. General Matters In the ordinary course of conducting business activities, the Company and its subsidiaries become involved in certain other judicial, administrative and regulatory proceedings involving both private parties and governmental authorities. These proceedings include insured and uninsured regulatory, employment, intellectual property, general and commercial liability, environmental and other matters. At this time, the Company does not expect any of these proceedings to have a material effect on its reputation, business, financial condition, results of operations or cash flows. However, the Company can give no assurance that the results of any such proceedings will not materially affect its reputation, business, financial condition, results of operations or cash flows. |
Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company's two operating product line segments are also the Company's reportable segments: Engineered Papers and Advanced Materials and Structures. The EP segment primarily produces cigarette papers including LIP papers, plug wrap papers and base tipping papers used to wrap various parts of a cigarette for sale to cigarette manufacturers and reconstituted tobacco leaf, or RTL, and wrapper and binder products for sale to cigarette and cigar manufacturers. The EP segment also includes commercial and industrial products such as lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter paper and other specialized papers. The AMS segment primarily produces engineered resin-based rolled goods such as films, nets, and other non-wovens to for use in high-performance filtration, surface protection, medical, and industrial applications and consists of the operations of DelStar, the December 2014 acquisitions, and Argotec. Information about Net Sales and Operating Profit The Company primarily evaluates segment performance and allocates resources based on operating profit. Expense amounts not associated with segments are referred to as unallocated expenses.
Information about Geographic Areas Long-lived assets by geographic area as of year-end were as follows ($ in millions):
For the geographic disclosure in the following table, net sales are attributed to geographic locations based on the location of the Company's direct customers ($ in millions):
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Major Customers |
12 Months Ended |
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Dec. 31, 2016 | |
Major Customers [Abstract] | |
Major Customers | Major Customers In our EP segment, one customer, together with its respective affiliates and designated converters, accounted for 18% of the Company's consolidated net sales for the year ended December 31, 2016. Philip Morris-USA, British American Tobacco and Japan Tobacco Inc. together with their respective affiliates and designated converters, each accounted for 10% or more of the Company's consolidated net sales in 2015 and 2014 and together accounted for 42% and 46% of the Company's 2015 and 2014 consolidated net sales, respectively. The loss of one or more such customers, or a significant reduction in one or more of these customers' purchases, could have a material adverse effect on the Company's results of operations. There were no individual customers in the AMS segment which made up 10% or more of the Company's 2016, 2015 or 2014 consolidated net sales. In the EP segment, no customers accounted for 10% or more of consolidated accounts receivable at December 31, 2016. Philip Morris-USA, BAT and Japan Tobacco Inc., together with their respective affiliates and designated converters accounted for 24% of consolidated accounts receivable at December 31, 2015. There were no individual customers in the AMS segment which made up 10% or more of the Company's consolidated accounts receivable at December 31, 2016 or 2015. The Company performs ongoing credit evaluations on all of its customers' financial condition and generally does not require collateral or other security to support customer receivables. Substantial portions of the Company's consolidated accounts receivable are due from companies in the tobacco industry, which has been and continues to be under substantial pressure from legal, regulatory and tax developments. It is not possible to predict the outcome of such litigation or what effect adverse developments in pending or future litigation, regulatory actions and additional taxes may have on the tobacco industry, its financial liquidity or relationships with its suppliers. Nor is it possible to predict what additional legislation or regulations relating to tobacco products will be enacted, or to what extent, if any, such legislation or regulations might affect the tobacco products industry in general. |
Supplemental Disclosures |
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SUPPLEMENTAL DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures | Supplemental Disclosures Analysis of Allowances for Doubtful Accounts: ($ in millions)
Supplemental Cash Flow Information ($ in millions)
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Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following tables summarize the Company's unaudited quarterly financial data for the years ended December 31, 2016 and 2015 ($ in millions, except per share amounts):
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Conwed Plastics LLC On January 20, 2017, the Company acquired all of the equity interests in Conwed Plastics LLC, a Delaware limited liability company , and its Belgian subsidiary ("Conwed NV") (collectively, "Conwed") pursuant to an Equity Interest Purchase Agreement (the “Purchase Agreement”), dated as of December 14, 2016, by and among the Company, DelStar Technologies, Inc., a Delaware corporation as buyer, Baldwin Enterprises, Inc., a Colorado corporation, as seller, Conwed and, solely for the limited purposes specified therein, Leucadia National Corporation, a New York corporation. As a result of the acquisition, Conwed and its subsidiaries became wholly-owned indirect subsidiaries of the Company. The purchase price to acquire Conwed was $295 million in cash, subject to certain customary post-closing adjustments, plus three potential earn-out payments not to exceed $40 million, in the aggregate, which payments are contingent upon the achievement of certain financial metrics in each of 2019, 2020 and 2021, in each case upon the terms and subject to the conditions contained in the Purchase Agreement. The purchase price for Conwed was funded from the Company’s borrowings under the Amended Credit Agreement, while the purchase price for Conwed NV was funded from cash on hand. Conwed and its subsidiaries manufacture highly engineered resin-based netting solutions, with operations in the United States and Belgium, and is headquartered in Minneapolis, Minnesota. As of February 24, 2017, the Company is in the process of determining the preliminary fair values of the assets acquired and liabilities assumed as initial appraisals are still underway and have not yet been completed. Debt Amendment On December 1, 2016, the Company entered into a First Amendment to Second Amended and Restated Credit Agreement ("First Amendment") with JPMorgan Chase Bank, N.A. as administrative agent. Under the terms of the First Amendment, and effective only upon the closing of the Conwed acquisition on January 20, 2017, the Company's maximum net debt to EBITDA ratio, calculated on a trailing four fiscal quarter basis, was required to be not greater than 4.25 at December 31, 3017, reducing to 4.00 after December 31, 2017, 3.75 after March 31, 2018, 3.50 after June 30, 2018 and 3.00 after December 31, 2018. Derivative Instruments On January 20, 2017, the Company entered into an interest rate swap transaction with JPMorgan Chase Bank, N.A. for a three-year term on a notional amount of $315 million. The interest rate swap is intended to manage the Company's interest rate risk by fixing the interest rate on a portion of the Company's debt currently outstanding under its credit facility that was previously subject to a floating interest rate equal to 1-month LIBOR plus a credit spread. The swap provides for the Company to pay a fixed rate of 1.65% per annum in addition to the credit spread on such portion of its outstanding debt in exchange for receiving a variable interest rate based on 1-month LIBOR. On January 20, 2017, the Company also entered into a three-year cross-currency swap with JPMorgan Chase Bank, N.A. designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $100 million swapped to €93.7 million at maturity. The Company will receive from our swap counterparty U.S. dollar interest at a fixed rate of 1.65% per annum and pay to our swap counterparty Euro interest at a fixed rate of -0.18% per annum. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and the notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company believes the estimates and assumptions used in the preparation of these consolidated financial statements are reasonable, based upon currently available facts and known circumstances. Actual results may differ from those estimates and assumptions as a result of a number of factors, including those discussed elsewhere in this report and in its other public filings from time to time. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated. Certain reclassifications of prior year data were made in the notes to consolidated financial statements. The reclassifications were made to conform to the current year presentation. The Company has two joint ventures with China National Tobacco Corporation, or CNTC. CNTC is the principal operating Company under China's State Tobacco Monopoly Administration. CNTC and our subsidiary, Schweitzer-Mauduit International China, Limited, or SM-China, each own 50% of the joint ventures. The paper joint venture China Tobacco Mauduit (Jiangmen) Paper Industry Co. LTD, or CTM, produces tobacco-related papers in China. The second joint venture China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. LTD., or CTS, produces reconstituted tobacco leaf products. The Company uses the equity method to account for both joint ventures. Investment in equity affiliates represents the Company's investment in its China joint ventures. The Company's share of the net income of its 50% owned joint ventures in China are included in the Consolidated Statements of Income as income from equity affiliates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue and the related accounts receivable when the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) ownership has transferred to the customer; (3) the selling price is fixed or determinable; and (4) collection is reasonably assured based on the Company's judgment regarding the collectability of its accounts receivable. Generally, the Company recognizes revenue when it ships its manufactured product and title and risk of loss passes to its customer in accordance with the terms of sale of the product. Revenue is recorded at the time of shipment for terms designated free on board, shipping point, or equivalent. For sales transactions designated free on board, destination, or equivalent, revenue is recorded when the product is delivered to the customer's delivery site, at which time title and risk of loss are transferred. Provisions for discounts, returns, allowances, customer rebates and other adjustments are provided for in the same period the related revenue is recorded. Deferred revenue represents advance payments from customers which are earned based upon a mutually agreed-upon amount per unit of future product sales. Freight Costs The cost of delivering finished goods to the Company's customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Any freight costs billed to and paid by a customer are included in revenue. Royalty Income Royalties from third-party patent licenses are recognized when earned, including monies received at an agreement's initiation attributable to past sales. The Company recognizes up-front payments upon receipt when it has no future performance requirement or ongoing obligation arising from its agreements and the payment is for a separate earnings process. Minimum annual royalties received in advance are deferred and are recognized in the period earned. |
Foreign Currency Translation | Foreign Currency Translation The income statements of foreign entities are translated into U.S. dollars at average exchange rates prevailing during the periods presented. The balance sheets of these entities are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in a separate component of accumulated other comprehensive income (loss) as unrealized foreign currency translation adjustments. Foreign currency risks arise from transactions and balances denominated in non-local currencies. |
Derivative Instruments | Derivative Instruments The Company is exposed to changes in foreign currency exchange rates, interest rates and commodity prices. The Company utilizes a variety of practices to manage these market risks, including where considered appropriate, derivative instruments. The Company uses derivative instruments only for risk management purposes and not for trading or speculation. All derivative instruments the Company uses are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The Company believes the credit risks with respect to the counterparties, and the foreign currency risks that would not be hedged if the counterparties fail to fulfill their obligations under the contracts, are not material in view of its understanding of the financial strength of the counterparties. Gains and losses on instruments that hedge firm commitments are deferred and included in the basis of the underlying hedged items. All other hedging gains and losses are included in period income or expense based on the period-end market price of the instrument and are included in the Company's operating cash flows. See Note 13. Derivatives, for additional information. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid, unrestricted investments with remaining maturities of three months or less to be cash equivalents, including money market funds with no restrictions on withdrawals. |
Business Combinations | Business Combinations The Company uses the acquisition method of accounting for business combinations. At the acquisition date, the Company records assets acquired and liabilities assumed at their respective fair market values. The Company estimates fair value using the exit price approach which is the price that would be received to sell an asset or paid to transfer a liability in an orderly market. An exit price is determined from a market participant's viewpoint in the principal or most advantageous market and may result in the Company valuing assets or liabilities at a fair value that is not reflective of the Company's intended use of the assets or liabilities. Any excess consideration above the estimated fair values of the net assets acquired is recognized as goodwill on the Company's Consolidated Balance Sheets. The operating results of acquired businesses are included in the Company's results of operations beginning as of their effective acquisition dates. |
Impairment of Long-Lived Assets, Goodwill and Intangible Assets | Impairment of Long-Lived Assets, Goodwill and Intangible Assets The Company evaluates the carrying value of long-lived assets, including property and equipment, goodwill and intangible assets when events and circumstances warrant a review. Goodwill is also tested for impairment annually during the fourth quarter. Goodwill may be evaluated using a qualitative evaluation and/or a two-step test at the reporting unit level. The first step compares the book value of the reporting unit to its fair value. If the book value of a reporting unit exceeds its fair value, the Company performs the second step. In the second step, the Company determines an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of all the assets and liabilities other than goodwill is the implied fair value of that goodwill. Any impairment loss is measured as the excess of the book value of the goodwill over the implied fair value of that goodwill. See Note 8. Goodwill for further discussion of the Company's annual impairment test results. During the annual testing in the fourth quarter of 2016, the estimated fair value of each of the Company's reporting units was in excess of its respective carrying value. We have acquired trade names that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, category share, business history, product life cycle and operating plans. Indefinite-lived intangibles are evaluated for impairment annually during the fourth quarter. Additionally, when certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived trade names may be adjusted to a determinable life or an impairment charge may be recorded. In the fourth quarter of 2016, the Company made a strategic decision to transition away from certain legacy business trade names associated with our recent acquisitions in favor of a streamlined SWM branding approach. As a result, during the fourth quarter of 2016, the Company recognized an impairment loss related to the DelStar trade name, the financial impact of which is described in Note 9. Intangible Assets. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, which approximates a straight-line basis, over the estimated periods benefited. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. The carrying value of long-lived assets is reviewed to determine if events or circumstances have changed which may indicate that the assets may be impaired or the useful life may need to be changed. Upon occurrence of such a triggering event, the Company considers internal and external factors relating to each asset group, including expectation of future profitability, undiscounted cash flows and its plans with respect to the operations. If impairment is indicated, an impairment loss is measured by the amount the net carrying value of the asset exceeds its estimated fair value. |
Environmental Spending | Environmental Spending Environmental spending is capitalized if such spending qualifies as property, plant and equipment, substantially increases the economic value or extends the useful life of an asset. All other such spending is expensed as incurred, including fines and penalties incurred in connection with environmental violations. Environmental spending relating to an existing condition caused by past operations is expensed. Liabilities are accrued when environmental assessments are probable and the costs can be reasonably estimated. Generally, timing of these accruals coincides with completion of a feasibility study or commitment to a formal plan of action. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain purchases of software and software development costs in connection with major projects of software development for internal use. These costs are included in Other assets on the Consolidated Balance Sheets and are amortized using the straight-line method over the estimated useful life not to exceed seven years. Costs associated with business process redesign, end-user training, system start-up and ongoing software maintenance are expensed as incurred. |
Business Tax Credits | Business Tax Credits Business tax credits represent value added tax credits receivable and similar assets, such as Imposto sobre Circulação de Mercadorias e Serviços, or ICMS, in Brazil. Business tax credits are generated when value-added taxes, or VAT, are paid on purchases. VAT and similar taxes are collected from customers on certain sales. In some jurisdictions, export sales do not require VAT collection. See Note 10. Other Assets for additional information. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that the Company would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Pensions and Other Postretirement Benefit Accounting | Pension and Other Postretirement Benefits Accounting The Company recognizes the estimated compensation cost of employees' pension and other postretirement benefits over their approximate period of service. The Company's earnings are impacted by amounts of expense recorded related to these benefits, which primarily consist of U.S. and French pension benefits and U.S. other postretirement benefits, or OPEBs. Each year's recorded expenses are estimates based on actuarial calculations of the Company's accumulated and projected benefit obligations, or PBOs, for the Company's various plans. Suspension of additional benefits for future service is considered a curtailment, and if material, necessitates a re-measurement of plan assets and PBO. As part of a re-measurement, the Company adjusts its discount rates and other actuarial assumptions, such as retirement, turnover and mortality table assumptions, as appropriate. See Note 16. Postretirement and Other Benefits for additional information. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income, as well as items charged and credited directly to stockholders' equity, which are excluded from net income. The Company has presented comprehensive income in the Consolidated Statements of Comprehensive Income (Loss). Reclassification adjustments of derivative instruments are presented in Net sales and Interest expense in the Consolidated Statements of Income. See Note 13. Derivatives for additional information. Amortization of accumulated pension and other post-employment benefit (OPEB) liabilities are included in the computation of net periodic pension and OPEB costs, which are more fully discussed in Note 16. Postretirement and Other Benefits. |
Restricted Stock | Restricted Stock All of the Company's restricted stock grants, including those that have been earned in the case of performance-based shares and cliff-vesting grants that are not performance based, vest upon completion of a specified period of time, typically between two and four years. The fair value of each award is equal to the share price of the Company's stock on the date of the grant. This cost is recognized over the vesting period of the respective award. A summary of outstanding restricted stock awards as of December 31, 2016 and 2015 is included in Note 17. Stockholders' Equity. |
Restricted Stock Plan Performance Based Shares | Restricted Stock Plan Performance Based Shares The Company's long-term incentive compensation program, or LTICP, for key employees includes an equity-based award component that is provided through the Long-term Incentive Plan, or LTIP, which the Company adopted in 2015 and which replaced its previous Restricted Stock Plan, or RSP. The objectives under the LTICP are established at the beginning of a performance cycle and are intended to focus management on longer-term strategic goals. The Compensation Committee of the Board of Directors designates participants in the LTICP and LTIP and determines the equity-based award opportunity in the form of restricted stock for each performance cycle, which is generally measured on the basis of a one year performance period (the measurement period). The restricted shares are considered issued and outstanding when the number of shares becomes fixed, after the annual performance is determined, and such awards vest at the end of the performance year or some predetermined period thereafter. The Company recognizes compensation expense with an offsetting credit to additional paid-in-capital over the performance period based on the fair value of the award at the date of grant, with compensation expense being adjusted cumulatively based on the number of shares expected to be earned according to the level of achievement of performance goals. |
Fair Value Option | Fair Value Option The Company has elected not to measure its financial instruments or certain commitments at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The new guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and expects to utilize the modified retrospective transition approach upon adoption which will require an adjustment to the financial statements to reflect the impact of the guidance. There will be no change to prior period financial statements. The Company does not expect that adoption of this guidance will have a material impact on the consolidated financial statements. In May 2015, FASB issued ASU 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." Currently, investments valued using the practical expedient are categorized within the fair value hierarchy. There is diversity in how certain investments measured at net asset value with future redemption dates should be categorized within the fair value hierarchy which this update addresses. If an investment has its fair value measured at net asset value per share (or its equivalent) using the practical expedient, it should not be categorized in the fair value hierarchy. Removing these types of investments from the fair value hierarchy chart eliminates the diversity in classification of these investments and ensures that all investments categorized in the fair value hierarchy are classified consistently. Investments that calculate net asset value per share (or its equivalent) without the use of the practical expedient will continue to be included in the fair value hierarchy. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance as of January 1, 2016; adoption changed the presentation of investments included in the fair value table in Note 16. Postretirement and Other Benefits, but otherwise did not have a material impact on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This update requires entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using the Last-in, First-out or the retail inventory method. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect that its adoption will have a material impact on the consolidated financial statements as the Company's inventory is currently measured in accordance with the definitions in the revised guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the pronouncement on the Company's outstanding leases and expects that adoption will have an impact on the Consolidated Balance Sheets related to recording right-of-use assets and corresponding lease liabilities. The Company is currently in the process of evaluating the impact of adoption on the Consolidated Statements of Income. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard makes several modifications to existing guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements but does not currently expect the adoption of this guidance to have a material impact on the financial statements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASC 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the pronouncements on the consolidated financial statements in conjunction with its assessment of ASU 2014-09, as discussed above. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance in the ASU clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The amendments in ASU 2017-01 will be implemented on a prospective basis in the first quarter of 2016 and are not expected to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement on the consolidated financial statements and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | Components of accumulated other comprehensive loss were as follows ($ in millions):
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Changes in the Components of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive loss were as follows ($ in millions):
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Business Acquisitions (Tables) - Argotec [Member] |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The consideration paid for Argotec and the fair values of the assets acquired and liabilities assumed as of the October 28, 2015 acquisition date were as follows ($ in millions):
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Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table shows the fair values assigned to intangible assets ($ in millions):
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Actual and Pro Forma Net Sales and Income from Continuing Operations | The amounts of the acquisition's Net Sales and Income from Continuing Operations included in the Company's Consolidated Statements of Income for the year ended December 31, 2015, and the unaudited pro forma Net Sales and Income from Continuing Operations of the combined entity had the acquisition date been January 1, 2014 are as follows ($ in millions):
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disposal groups, including discontinued operations, balance sheet | Included in Other Assets and Accrued Expenses within the Consolidated Balance Sheets were the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions):
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Discontinued operations, income (loss) from discontinued operation | Summary financial results of discontinued operations were as follows ($ in millions):
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Accounts Receivable (Tables) |
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Schedule of Accounts Receivable | Accounts receivable are summarized as follows ($ in millions):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories by Major Class | The following schedule details inventories by major class ($ in millions):
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment (and related depreciable lives) consisted of the following ($ in millions):
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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for each reportable segment were as follows ($ in millions):
|
Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions):
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Schedule of Future Amortization Expense | The following table shows the estimated aggregate amortization expense for the next five years ($ in millions):
|
Other Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consisted of the following ($ in millions):
|
Restructuring and Impairment Activities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Restructuring Liabilities | Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows ($ in millions):
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Debt | Total debt, net of debt issuance costs, is summarized in the following table ($ in millions):
|
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Schedule of Maturities of Long-term Debt | Following are the expected maturities for the Company's debt obligations as of December 31, 2016 ($ in millions):
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Schedule of Amortization of Debt Issuance Costs | Following is the expected future amortization of the Company's deferred debt issuance costs as of December 31, 2016 ($ in millions):
|
Derivatives (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of asset and liability derivatives and the respective balance sheet locations | The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2016 ($ in millions):
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2015 ($ in millions):
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Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | The following table provides the gross effect that derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions):
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Schedule of derivative instruments, gain (loss) in income statement | The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions):
|
Accrued Expenses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued expenses consisted of the following ($ in millions):
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Before Income Taxes | For financial reporting purposes, income before income taxes includes the following components ($ in millions):
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Schedule of Components of Income Tax Expense (Benefit), Continuing Operations | An analysis of the provision (benefit) for income taxes from continuing operations follows ($ in millions):
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Schedule of Reconciliation of Income Tax Rate | A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions):
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Schedule of Deferred Tax Assets (Liabilities) | Net deferred income tax assets (liabilities) were comprised of the following ($ in millions):
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Summary of Operating Loss Carryforwards | As of December 31, 2016 the Company had approximately $95.1 million of tax effected operating loss carryforwards available to reduce future taxable income in various jurisdictions which will expire on various dates as follows:
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Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company's unrecognized tax benefits related to income taxes ($ in millions):
|
Postretirement and Other Benefits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | The funded status of these plans as of December 31, 2016 and 2015 was as follows ($ in millions):
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Schedule of Accumulated Benefit Obligations and PBO excess of Fair Value of Pension Plan Assets | The PBO and ABO exceeded the fair value of pension plan assets for the Company's French defined benefit pension plans as of December 31, 2016 and 2015 and U.S. defined benefit plan as of December 31, 2016 as follows ($ in millions):
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Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income | As of December 31, 2016, the pre-tax amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost for the U.S. and French pension plans and other postretirement benefit plans in the United States are as follows ($ in millions):
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts in accumulated other comprehensive loss at December 31, 2016, which are expected to be recognized as components of U.S. and French net periodic benefit cost in 2017 are as follows ($ in millions):
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Schedule of Net Benefit Costs | The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the years ended December 31, 2016, 2015 and 2014 were as follows ($ in millions):
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Schedule of Allocation of Plan Assets | The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2016 ($ in millions):
The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2015 ($ in millions):
The U.S. and French pension plans' asset target allocations by asset category for 2017 and actual allocations by asset category at December 31, 2016 and 2015 were as follows:
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Schedule of Changes in Plan Assets | The following table shows the changes in Level 3 asset values ($ in millions):
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Schedule of Expected Benefit Payments | The Company expects the following estimated undiscounted future pension benefit payments for the United States and France and future postretirement healthcare and life insurance benefit payments for the United States, which are to be made from pension plan and employer assets, net of amounts that will be funded from retiree contributions, and which reflect expected future service, as appropriate ($ in millions):
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Benefit Obligations [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The weighted average assumptions used to determine benefit obligations as of December 31, 2016 and 2015 were as follows:
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Net Periodic Benfit Cost [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows:
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Stockholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Activity | The following table presents restricted stock activity for the years 2016, 2015 and 2014:
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Reconciliation of the Common and Potential Common Shares Outstanding Used in Earnings Per Share Calculation | A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands):
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Future minimum rental payments for operating leases | Future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2016 are as follows ($ in millions):
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Segment Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segments |
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Net Sales Attributed to Geographic Locations Based on the Location of the Company's Direct Customers | Long-lived assets by geographic area as of year-end were as follows ($ in millions):
For the geographic disclosure in the following table, net sales are attributed to geographic locations based on the location of the Company's direct customers ($ in millions):
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Supplemental Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | Analysis of Allowances for Doubtful Accounts: ($ in millions)
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Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information ($ in millions)
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Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following tables summarize the Company's unaudited quarterly financial data for the years ended December 31, 2016 and 2015 ($ in millions, except per share amounts):
|
General (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
country
joint_venture
segment
production_locations
| |
Nature of Business [Line Items] | |
Number of operating segments | segment | 2 |
Number of countries in which entity operates | country | 90 |
Number of production locations | production_locations | 18 |
China [Member] | |
Nature of Business [Line Items] | |
Number of joint ventures | joint_venture | 2 |
Ownership of joint ventures (as a percent) | 50.00% |
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Accumulated pension and OPEB liability adjustments, net of income tax impact of $17.6 million and $21.9 million at December 31, 2016 and 2015, respectively | $ (36.5) | $ (35.6) |
Accumulated unrealized loss on derivative instruments, net of income tax impact of $(3.0) million and $0.3 million at December 31, 2016 and 2015, respectively | (1.9) | (21.6) |
Accumulated unrealized foreign currency translation adjustments | (100.9) | (84.2) |
Accumulated other comprehensive loss | (139.3) | (141.4) |
Accumulated pension and OPEB tax | 17.6 | 21.9 |
Accumulated tax on gain (loss) on financial instruments | $ (3.0) | $ 0.3 |
Business Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Argotec [Member] $ in Millions |
Oct. 28, 2015
USD ($)
|
---|---|
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 130.5 |
Weighted-Average Amortization Period (Years) | |
Trade names [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 12.9 |
Customer relationships [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 115.9 |
Weighted-Average Amortization Period (Years) | 15 years |
Non-competition agreements [Member] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 1.7 |
Weighted-Average Amortization Period (Years) | 4 years |
Business Acquisitions Business Acquisitions - Actual and Pro Forma Net Sales and Income from Continuing Operations (Details) - Argotec [Member] - USD ($) $ in Millions |
2 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net Sales, Actual | $ 22.3 | ||
Net Sales, Pro Forma | $ 859.7 | $ 896.2 | |
(Loss) Income from Continuing Operations, Actual | $ 0.9 | ||
(Loss) Income from Continuing Operations, Pro Forma | $ 90.2 | $ 90.7 |
Accounts Receivable (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts Receivable [Line Items] | ||
Less allowance for doubtful accounts and sales discounts | $ (0.8) | $ (0.4) |
Total accounts receivable | 115.1 | 119.4 |
Trade receivables [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 98.2 | 97.7 |
Business tax credits, including VAT [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 3.1 | 3.7 |
Hedge contracts receivable [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 1.0 | 0.8 |
Other receivables [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | $ 13.6 | $ 17.6 |
Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 40.9 | $ 45.2 |
Work in process | 23.9 | 17.3 |
Finished goods | 44.9 | 36.1 |
Supplies and other | 9.7 | 13.8 |
Total | $ 119.4 | $ 112.4 |
Other Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Assets [Abstract] | ||
Capitalized software costs, net of accumulated amortization | $ 4.4 | $ 2.5 |
Business tax credits, including VAT and ICMS (net of $11.5 million and $9.9 million reserve as of December 31, 2016 and 2015, respectively) | 2.5 | 2.6 |
Grantor trust assets | 10.3 | 9.6 |
Other assets | 4.3 | 2.6 |
Inventory, Noncurrent | 6.0 | 5.0 |
Total | 27.5 | 22.3 |
Additional Information | ||
Reserve for losses on business tax credits | $ 11.5 | $ 9.9 |
Debt - Schedule of Debt Summarized (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Oct. 28, 2015 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Total | $ 447.4 | ||
Debt, Long-term and Short-term, Combined Amount | 440.4 | $ 571.5 | |
Less: Debt issuance costs | (7.0) | (8.7) | $ (7.4) |
Long-term Debt, Current Maturities | (3.0) | (3.3) | |
Long-term debt | 437.4 | 568.2 | |
Bank Overdrafts [Member] | |||
Debt Instrument [Line Items] | |||
Total | 0.0 | 0.0 | |
French Employee Profit Sharing [Member] | |||
Debt Instrument [Line Items] | |||
Total | 9.5 | 11.4 | |
Revolving Credit Agreement - U.S. dollar borrowings [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Total | 131.0 | 197.0 | |
Revolving Credit Agreement - euro borrowings [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Total | 0.0 | 62.4 | |
Term Loan A-1 [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Total | 60.0 | 60.0 | |
Term Loan A-2 [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Total | $ 246.9 | $ 249.4 |
Debt - Schedule of Long Term Debt Maturities (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2017 | $ 4.7 |
2018 | 4.8 |
2019 | 4.8 |
2020 | 194.7 |
2021 | 4.0 |
Thereafter | 234.4 |
Total | $ 447.4 |
Debt - Debt Issuance Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Oct. 28, 2015 |
|
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ 7.0 | $ 8.7 | $ 7.4 |
Expected Future Amortization Expense [Abstract] | |||
2017 | 1.7 | ||
2018 | 1.7 | ||
2019 | 1.7 | ||
2020 | 1.4 | ||
2021 | 0.3 | ||
Thereafter | 0.2 | ||
Total | 7.0 | 8.7 | $ 7.4 |
Interest Expense [Member] | |||
Debt Instrument [Line Items] | |||
Amortization expense | $ 1.7 | $ 0.9 |
Accrued Expenses (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Expenses [Abstract] | ||
Accrued salaries, wages and employee benefits | $ 39.2 | $ 38.3 |
Other accrued expenses | 38.0 | 47.2 |
Total | $ 77.2 | $ 85.5 |
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 27.7 | $ 41.6 | $ 31.0 |
Foreign | 65.7 | 63.9 | 77.2 |
Income from continuing operations before income taxes and income from equity affiliates | $ 93.4 | $ 105.5 | $ 108.2 |
Income Taxes - Components of Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current income taxes: | |||
U.S. federal | $ 14.3 | $ 13.0 | $ 6.6 |
U.S. state | 0.1 | 1.1 | 0.6 |
Foreign | 17.2 | 14.2 | 10.0 |
Current income taxes | 31.6 | 28.3 | 17.2 |
Deferred income taxes: | |||
U.S. federal | (2.7) | (5.8) | 3.0 |
U.S. state | (4.0) | 0.1 | (0.8) |
Foreign | (9.5) | (1.0) | 1.1 |
Deferred income taxes | (16.2) | (6.7) | 3.3 |
Provision for income taxes | $ 15.4 | $ 21.6 | $ 20.5 |
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Tax Assets | ||
Receivable allowances | $ 0.2 | $ 3.4 |
Reserves and accruals | 3.9 | 3.9 |
Inventory and other assets | 2.3 | 1.7 |
Postretirement and other employee benefits | 20.0 | 20.6 |
Derivatives | 0.0 | 5.5 |
Net operating loss and tax credit carryforwards | 104.8 | 25.9 |
Investment in subsidiaries | 0.0 | 1.0 |
Deferred Tax Assets, Goodwill and Intangible Assets | 76.6 | 0.0 |
Other | 0.1 | 0.8 |
Deferred income tax assets | 207.9 | 62.8 |
Less: Valuation allowance | (194.8) | (33.8) |
Net deferred income tax assets | 13.1 | 29.0 |
Deferred Tax Liabilities | ||
Net fixed assets | (34.4) | (72.7) |
Deferred Tax Liabilities, Investment in Noncontrolled Affiliates | (4.1) | 0.0 |
Other | (0.7) | (1.5) |
Net deferred income tax liabilities | (39.2) | (74.2) |
Total net deferred income tax liabilities | $ (26.1) | $ (45.2) |
Income Taxes - Unrecognized Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0.4 | ||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Uncertain tax position balance at beginning of year | 0.9 | $ 1.8 | $ 1.8 |
Increases related to current year tax positions | 2.0 | 0.0 | 0.0 |
Decrease related to expiration of statute of limitations | (0.5) | (0.9) | 0.0 |
Uncertain tax position balance at end of year | 2.4 | $ 0.9 | $ 1.8 |
Decrease in unrecognized tax benefits that may be recognized in next fiscal year | $ 2.1 |
Postretirement and Other Benefits - PBO and ABO in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
United States, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
PBO | $ 123.2 | $ 123.4 | |
ABO | 123.2 | 123.4 | |
Fair value of plan assets | 118.9 | 116.7 | $ 128.9 |
France, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
PBO | 32.4 | 32.2 | |
ABO | 28.2 | 28.3 | |
Fair value of plan assets | $ 6.1 | $ 8.4 | $ 10.2 |
Postretirement and Other Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
United States, Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | $ 37.5 |
Prior service credit | 0.0 |
Accumulated other comprehensive loss | 37.5 |
France, Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | 16.9 |
Prior service credit | (3.3) |
Accumulated other comprehensive loss | 13.6 |
United States, OPEB [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | 0.7 |
Prior service credit | (0.3) |
Accumulated other comprehensive loss | $ 0.4 |
Postretirement and Other Benefits - Amortization of Accumulated Other Comprehensive Income (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
United States, Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | $ (3.7) |
Amortization of prior service credit | 0.0 |
Total | (3.7) |
France, Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | (1.4) |
Amortization of prior service credit | 0.3 |
Total | (1.1) |
United States, OPEB [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | (0.2) |
Amortization of prior service credit | 0.1 |
Total | $ (0.1) |
Postretirement and Other Benefits - Weighted Average Assumption of Projected Benefit Obligations (Details) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
United States, Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.11% | 4.40% |
Rate of compensation increase | 0.00% | 0.00% |
France, Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.12% | 1.43% |
Rate of compensation increase | 1.90% | 1.90% |
United States, OPEB [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.09% | 4.29% |
Rate of compensation increase | 3.50% | 3.50% |
Postretirement and Other Benefits - Weighted Average Assumptions - Net Periodic Benefit Cost (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
United States, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.40% | 3.94% | 4.78% |
Expected long-term rate of return on plan assets | 5.83% | 6.06% | 6.48% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
France, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.12% | 1.43% | 1.17% |
Expected long-term rate of return on plan assets | 3.00% | 3.00% | 3.00% |
Rate of compensation increase | 1.90% | 1.90% | 1.90% |
United States, OPEB [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.29% | 3.82% | 4.02% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Postretirement and Other Benefits - Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
United States, Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | $ 116.7 | $ 128.9 | $ 118.9 | $ 116.7 |
Fair value of plan assets, measured at NAV | 117.6 | 115.2 | ||
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 116.7 | 128.9 | ||
Fair value of plan assets at end of year | 118.9 | 116.7 | ||
United States, Pension Benefits [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.2 | 1.2 | 1.2 | 1.2 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.2 | |||
Fair value of plan assets at end of year | 1.2 | 1.2 | ||
United States, Pension Benefits [Member] | Domestic Large Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets, measured at NAV | 8.3 | 8.0 | ||
United States, Pension Benefits [Member] | Domestic Small Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets, measured at NAV | 5.7 | 5.3 | ||
United States, Pension Benefits [Member] | International [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets, measured at NAV | 23.7 | 21.6 | ||
United States, Pension Benefits [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets, measured at NAV | 79.9 | 80.3 | ||
United States, Pension Benefits [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.3 | 0.3 | 0.1 | 0.3 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.3 | |||
Fair value of plan assets at end of year | 0.1 | 0.3 | ||
United States, Pension Benefits [Member] | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.2 | 1.2 | 1.2 | 1.2 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.2 | |||
Fair value of plan assets at end of year | 1.2 | 1.2 | ||
United States, Pension Benefits [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.2 | 1.2 | 1.2 | 1.2 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.2 | |||
Fair value of plan assets at end of year | 1.2 | 1.2 | ||
United States, Pension Benefits [Member] | Level 1 [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
United States, Pension Benefits [Member] | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
United States, Pension Benefits [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
United States, Pension Benefits [Member] | Level 2 [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
United States, Pension Benefits [Member] | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.3 | 6.8 | 0.1 | 0.3 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.3 | 6.8 | ||
Realized and unrealized gains | 0.0 | 0.1 | ||
Purchases | 0.0 | 0.5 | ||
Sales | (0.2) | (7.1) | ||
Fair value of plan assets at end of year | 0.1 | 0.3 | ||
United States, Pension Benefits [Member] | Level 3 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
United States, Pension Benefits [Member] | Level 3 [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.3 | 0.3 | 0.1 | 0.3 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.3 | |||
Fair value of plan assets at end of year | 0.1 | 0.3 | ||
France, Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 8.4 | 10.2 | 6.1 | 8.4 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 8.4 | 10.2 | ||
Fair value of plan assets at end of year | 6.1 | 8.4 | ||
France, Pension Benefits [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.0 | 1.0 | 1.5 | 1.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.0 | |||
Fair value of plan assets at end of year | 1.5 | 1.0 | ||
France, Pension Benefits [Member] | Domestic Large Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.7 | 1.7 | 1.2 | 1.7 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.7 | |||
Fair value of plan assets at end of year | 1.2 | 1.7 | ||
France, Pension Benefits [Member] | Domestic Small Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | International [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 5.5 | 5.5 | 3.2 | 5.5 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 5.5 | |||
Fair value of plan assets at end of year | 3.2 | 5.5 | ||
France, Pension Benefits [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.2 | 0.2 | 0.2 | 0.2 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.2 | |||
Fair value of plan assets at end of year | 0.2 | 0.2 | ||
France, Pension Benefits [Member] | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 2.7 | 2.7 | 2.7 | 2.7 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 2.7 | |||
Fair value of plan assets at end of year | 2.7 | 2.7 | ||
France, Pension Benefits [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.0 | 1.0 | 1.5 | 1.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.0 | |||
Fair value of plan assets at end of year | 1.5 | 1.0 | ||
France, Pension Benefits [Member] | Level 1 [Member] | Domestic Large Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 1.7 | 1.7 | 1.2 | 1.7 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 1.7 | |||
Fair value of plan assets at end of year | 1.2 | 1.7 | ||
France, Pension Benefits [Member] | Level 1 [Member] | Domestic Small Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 1 [Member] | International [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 1 [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 1 [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 5.7 | 5.7 | 3.4 | 5.7 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 5.7 | |||
Fair value of plan assets at end of year | 3.4 | 5.7 | ||
France, Pension Benefits [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 2 [Member] | Domestic Large Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 2 [Member] | Domestic Small Cap [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 2 [Member] | International [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.0 | |||
Fair value of plan assets at end of year | 0.0 | 0.0 | ||
France, Pension Benefits [Member] | Level 2 [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 5.5 | 5.5 | 3.2 | 5.5 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 5.5 | |||
Fair value of plan assets at end of year | 3.2 | 5.5 | ||
France, Pension Benefits [Member] | Level 2 [Member] | Alternative Investment [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0.2 | 0.2 | $ 0.2 | $ 0.2 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 0.2 | |||
Fair value of plan assets at end of year | $ 0.2 | $ 0.2 |
Postretirement and Other Benefits - Expected Future Benefit Payments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
United States, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
2016 | $ 8.2 | ||
2017 | 8.4 | ||
2018 | 8.4 | ||
2019 | 8.4 | ||
2020 | 8.4 | ||
2022 - 2026 | 40.5 | ||
Employer contributions | 0.0 | $ 0.0 | |
United States, OPEB [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contributions | 0.4 | 0.6 | |
Healthcare and Life Insurance Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
2016 | 0.2 | ||
2017 | 0.1 | ||
2018 | 0.1 | ||
2019 | 0.1 | ||
2020 | 0.1 | ||
2022 - 2026 | 0.3 | ||
France, Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
2016 | 4.6 | ||
2017 | 1.4 | ||
2018 | 2.7 | ||
2019 | 1.2 | ||
2020 | 1.1 | ||
2022 - 2026 | 6.6 | ||
Employer contributions | $ 0.7 | $ 1.3 | |
France, Pension Benefits [Member] | Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contributions | $ 1.2 |
Postretirement and Other Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution cost recognized | $ 2.5 | $ 2.5 | $ 2.0 |
Liability under deferred compensation plans | 15.4 | 13.3 | |
Grantor trust assets | 10.3 | 9.6 | |
Other liabilities, French law CET account | $ 5.3 | $ 6.2 |
Stockholders' Equity - Restricted Stock Plan (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award, issued during period (in shares) | 1,360,020 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, number of shares authorized (in shares) | 5,000,000 | |||
Share-based payment award, limitation on single participant (in shares) (no more than) | 750,000 | |||
Restricted stock award, not yet vested (in shares) | 197,674 | 366,363 | 318,561 | 224,289 |
Unrecognized compensation expense | $ 2.3 | |||
Unrecognized compensation expense, recognition weighted average period | 1 year 11 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Nonvested restricted shares outstanding at beginning of year (in shares) | 197,674 | 366,363 | 318,561 | |
Nonvested restricted shares granted (in shares) | 150,647 | 107,346 | 201,680 | |
Nonvested restricted shares forfeited (in shares) | (51,234) | (39,322) | (675) | |
Nonvested restricted shares vested (in shares) | (72,798) | (236,713) | (153,203) | |
Nonvested restricted shares outstanding at end of year (in shares) | 224,289 | 197,674 | 366,363 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date Fair Value, Outstanding at beginning of year (in dollars per share) | $ 43.56 | $ 38.24 | $ 35.82 | |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 39.47 | 45.34 | 39.55 | |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 43.56 | 40.93 | 48.68 | |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 42.06 | 36.57 | 34.89 | |
Weighted Average Grant Date Fair Value, Outstanding at end of year (in dollars per share) | $ 41.30 | $ 43.56 | $ 38.24 | |
Restricted Stock Performance Plan [Member] | Award Opportunity 2016-2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Nonvested restricted shares granted (in shares) | 167,961 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Compensation expense | $ 2.8 | |||
Restricted Stock Performance Plan [Member] | Award Opportunity 2015-2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Nonvested restricted shares granted (in shares) | 71,228 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Compensation expense | $ 1.5 | $ 1.8 | ||
Restricted Stock Performance Plan [Member] | Award Opportunity 2014-2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Nonvested restricted shares granted (in shares) | 43,842 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Compensation expense | $ 0.6 | $ 1.1 | ||
Restricted Stock Performance Plan [Member] | Award Opportunity 2013-2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Compensation expense | $ 3.1 |
Stockholders' Equity - Basic and Diluted Shares Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Numerator (basic and diluted): | |||||||||||
Net income | $ 17.0 | $ 18.7 | $ 26.0 | $ 21.1 | $ 21.7 | $ 25.8 | $ 23.4 | $ 18.8 | $ 82.8 | $ 89.7 | $ 89.7 |
Less: Dividends paid to participating securities | (0.3) | (0.2) | (0.3) | ||||||||
Less: Undistributed earnings available to participating securities | (0.2) | (0.3) | (0.5) | ||||||||
Undistributed and distributed earnings available to common stockholders | $ 82.3 | $ 89.2 | $ 88.9 | ||||||||
Denominator: | |||||||||||
Average number of common shares outstanding (shares) | 30,310,900 | 30,251,400 | 30,238,000 | ||||||||
Effect of dilutive stock-based compensation (shares) | 152,500 | 122,900 | 118,500 | ||||||||
Average number of common and potential common shares outstanding (shares) | 30,463,400 | 30,374,300 | 30,356,500 |
Commitments and Contingencies (Details) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Oct. 31, 2015
USD ($)
|
Dec. 31, 2000
assessment
|
|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2017 | $ 4.4 | ||||
2018 | 4.0 | ||||
2019 | 3.3 | ||||
2020 | 3.2 | ||||
2021 | 3.2 | ||||
Thereafter | 12.0 | ||||
Total | 30.1 | ||||
Rent expense | 6.9 | $ 6.8 | $ 6.1 | ||
Loss Contingencies [Line Items] | |||||
Capital expenditures for environmental matters | 2.8 | ||||
Capital expenditures for environmental matters, due in two years (less than) | 1.0 | ||||
Unfavorable Regulatory Action [Member] | Raw Materials Assessment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 2 | ||||
Number of tax assessments related to periods that predated acquisition and are covered by indemnification | assessment | 1 | ||||
Unfavorable Regulatory Action [Member] | Electricity Assessment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 3 | ||||
LTRI and PdM Subsidiaries [Member] | Energy Cogeneration Steam Supply Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Minimum annual commitments | 2.0 | ||||
SWM-B Brazilian Mill [Member] | Transmission and Distribution of Energy Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Purchase of electrical energy, estimated annual cost | 3.0 | ||||
French Mills [Member] | Transmission and Distribution of Energy Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated due within one year | 8.0 | ||||
Calcium Carbonate [Member] | PdM Subsidiary [Member] | |||||
Loss Contingencies [Line Items] | |||||
Purchase commitment, remaining amount committed | 2.0 | ||||
Calcium Carbonate, Through 2024 [Member] | PdM Subsidiary [Member] | |||||
Loss Contingencies [Line Items] | |||||
Purchase commitment, remaining amount committed | 11.0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | Raw Materials Assessment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $ 16.0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | Raw Materials Assessment 2 [Member] [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 13.0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | Electricity Assessment One [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 5.0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | Electricity Assessment Two [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 9.0 | ||||
Maximum [Member] | Unfavorable Regulatory Action [Member] | Electricity Assessment Three [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $ 4.0 |
Segment Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
segment
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | $ 198.7 | $ 209.3 | $ 217.3 | $ 214.6 | $ 209.8 | $ 184.4 | $ 181.9 | $ 188.0 | $ 839.9 | $ 764.1 | $ 794.3 |
Percentage of Net Sales | 100.00% | 100.00% | 100.00% | ||||||||
Operating Profit [Abstract] | |||||||||||
Operating profit | 6.2 | $ 30.8 | $ 37.5 | $ 31.6 | 24.7 | $ 31.8 | $ 24.0 | $ 22.5 | $ 106.1 | $ 103.0 | $ 106.1 |
Percentage of Operating Profit | 100.00% | 100.00% | 100.00% | ||||||||
Segment Assets | 1,173.7 | 1,290.0 | $ 1,173.7 | $ 1,290.0 | $ 1,185.0 | ||||||
Capital Spending | 27.8 | 24.2 | 35.1 | ||||||||
Depreciation | 29.4 | 30.7 | 35.3 | ||||||||
Long-Lived Assets | 311.8 | 310.6 | 311.8 | 310.6 | 365.8 | ||||||
United States [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 372.2 | 310.7 | 263.7 | ||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 89.6 | 87.5 | 89.6 | 87.5 | 75.5 | ||||||
France [Member] | |||||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 162.7 | 163.5 | 162.7 | 163.5 | 187.2 | ||||||
Philippines [Member] | |||||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 0.0 | 0.0 | 0.0 | 0.0 | 30.8 | ||||||
Brazil [Member] | |||||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 23.7 | 20.1 | 23.7 | 20.1 | 27.8 | ||||||
Poland [Member] | |||||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 20.0 | 23.6 | 20.0 | 23.6 | 29.0 | ||||||
Europe and the former Commonwealth of Independent States [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 253.2 | 261.2 | 304.6 | ||||||||
Asia/Pacific (including China) [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 129.4 | 118.5 | 125.3 | ||||||||
Latin America [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 47.4 | 34.6 | 54.9 | ||||||||
Other foreign countries [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | 37.7 | 39.1 | 45.8 | ||||||||
Operating Profit [Abstract] | |||||||||||
Long-Lived Assets | 15.8 | 15.9 | 15.8 | 15.9 | 15.5 | ||||||
Operating Segments [Member] | Engineered Papers [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | $ 559.3 | $ 583.9 | $ 666.9 | ||||||||
Percentage of Net Sales | 66.60% | 76.40% | 84.00% | ||||||||
Operating Profit [Abstract] | |||||||||||
Operating profit | $ 138.0 | $ 121.5 | $ 124.5 | ||||||||
Percentage of Operating Profit | 130.00% | 118.00% | 117.30% | ||||||||
Segment Assets | 505.1 | 507.3 | $ 505.1 | $ 507.3 | $ 611.9 | ||||||
Capital Spending | 17.6 | 12.5 | 26.1 | ||||||||
Depreciation | 22.3 | 25.6 | 31.0 | ||||||||
Operating Segments [Member] | Advanced Materials & Structures [Member] | |||||||||||
Net Sales [Abstract] | |||||||||||
Net sales | $ 280.6 | $ 180.2 | $ 127.4 | ||||||||
Percentage of Net Sales | 33.40% | 23.60% | 16.00% | ||||||||
Operating Profit [Abstract] | |||||||||||
Operating profit | $ 9.0 | $ 16.7 | $ 10.2 | ||||||||
Percentage of Operating Profit | 8.50% | 16.20% | 9.60% | ||||||||
Segment Assets | 569.3 | 648.4 | $ 569.3 | $ 648.4 | $ 320.1 | ||||||
Capital Spending | 10.1 | 11.2 | 8.7 | ||||||||
Depreciation | 7.1 | 5.5 | 3.9 | ||||||||
Unallocated [Member] | |||||||||||
Operating Profit [Abstract] | |||||||||||
Operating profit | $ (40.9) | $ (35.2) | $ (28.6) | ||||||||
Percentage of Operating Profit | (38.50%) | (34.20%) | (26.90%) | ||||||||
Segment Assets | $ 99.3 | $ 134.3 | $ 99.3 | $ 134.3 | $ 253.0 | ||||||
Capital Spending | 0.1 | 0.5 | 0.3 | ||||||||
Depreciation | $ 0.0 | $ (0.4) | $ 0.4 |
Major Customers (Details) - Customer Concentration Risk [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Sales [Member] | Significant customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 18.00% | ||
Sales [Member] | Phillip Morris, British American, and Japan Tobacco [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 42.00% | 46.00% | |
Accounts Receivable [Member] | Phillip Morris, British American, and Japan Tobacco [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 24.00% |
Supplemental Disclosures (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for Doubtful Accounts | |||
Interest paid | $ 13.3 | $ 7.8 | $ 6.0 |
Income taxes paid | 31.9 | 9.3 | 17.6 |
Capital spending in accounts payable and accrued liabilities | 8.8 | 2.6 | 2.5 |
Allowance for Doubtful Accounts [Member] | |||
Allowance for Doubtful Accounts | |||
Beginning balance | 0.4 | 0.3 | 0.4 |
Bad debt expense | 0.4 | 0.2 | 0.3 |
Write-offs and discounts | 0.0 | (0.1) | (0.4) |
Currency translation | 0.0 | 0.0 | 0.0 |
Ending balance | $ 0.8 | $ 0.4 | $ 0.3 |
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 198.7 | $ 209.3 | $ 217.3 | $ 214.6 | $ 209.8 | $ 184.4 | $ 181.9 | $ 188.0 | $ 839.9 | $ 764.1 | $ 794.3 |
Gross profit | 63.2 | 63.1 | 66.9 | 63.5 | 65.8 | 52.4 | 54.8 | 51.4 | 256.7 | 224.4 | 218.8 |
Restructuring and impairment expense | 21.6 | 1.3 | 0.9 | 1.8 | 4.1 | 1.3 | 5.2 | 4.0 | 25.6 | 14.6 | 13.1 |
Operating profit | 6.2 | 30.8 | 37.5 | 31.6 | 24.7 | 31.8 | 24.0 | 22.5 | 106.1 | 103.0 | 106.1 |
Income from continuing operations | 17.0 | 18.7 | 26.0 | 21.1 | 21.6 | 25.6 | 24.5 | 18.8 | 82.8 | 90.5 | 89.7 |
Loss from discontinued operations | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.2 | (1.1) | 0.0 | 0.0 | (0.8) | 0.0 |
Net income | $ 17.0 | $ 18.7 | $ 26.0 | $ 21.1 | $ 21.7 | $ 25.8 | $ 23.4 | $ 18.8 | $ 82.8 | $ 89.7 | $ 89.7 |
Income (loss) per share from continuing operations - basic (in dollars per share) | $ 0.55 | $ 0.62 | $ 0.85 | $ 0.69 | $ 0.71 | $ 0.84 | $ 0.80 | $ 0.62 | $ 2.71 | $ 2.97 | $ 2.94 |
(Loss) income per share from discontinued operations - basic (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | (0.04) | 0.00 | 0.00 | (0.02) | 0.00 |
Net income per share - basic (in dollars per share) | 0.55 | 0.62 | 0.85 | 0.69 | 0.72 | 0.85 | 0.76 | 0.62 | 2.71 | 2.95 | 2.94 |
Income (loss) per share from continuing operations - diluted (in dollars per share) | 0.55 | 0.61 | 0.85 | 0.69 | 0.71 | 0.84 | 0.80 | 0.61 | 2.70 | 2.96 | 2.93 |
(Loss) income per share from discontinued operations - diluted (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | (0.04) | 0.00 | 0.00 | (0.02) | 0.00 |
Net income per share - diluted (in dollars per share) | $ 0.55 | $ 0.61 | $ 0.85 | $ 0.69 | $ 0.72 | $ 0.85 | $ 0.76 | $ 0.61 | $ 2.70 | $ 2.94 | $ 2.93 |
Subsequent Events Business Acquisition (Details) - Subsequent Event [Member] - Conwed Plastics LLC [Member] $ in Millions |
Jan. 20, 2017
USD ($)
payment
|
---|---|
Business Acquisition [Line Items] | |
Purchase price of acquisition | $ 295.0 |
Business Combination, Number of Potential Earn Out Payments | payment | 3 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 40.0 |
Subsequent Events Debt Amendment (Details) - Second Amended and Restated Credit Agreement [Member] - Subsequent Event [Member] |
Jan. 20, 2017 |
---|---|
Debt Instrument [Line Items] | |
EBITDA ratio | 4.25 |
Debt Instrument, Covenant, Period One [Member] | |
Debt Instrument [Line Items] | |
EBITDA ratio | 4.00 |
Debt Instrument, Covenant, Period Two [Member] | |
Debt Instrument [Line Items] | |
EBITDA ratio | 3.75 |
Debt Instrument, Covenant, Period Three [Member] | |
Debt Instrument [Line Items] | |
EBITDA ratio | 3.50 |
Debt Instrument, Covenant, Period Four [Member] | |
Debt Instrument [Line Items] | |
EBITDA ratio | 3.00 |
Subsequent Events Derivative Instruments (Details) - Subsequent Event [Member] |
Jan. 20, 2017
USD ($)
|
Jan. 20, 2017
EUR (€)
|
---|---|---|
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Term of derivative contract | 3 years | |
Derivative notional amount | $ 315,000,000 | |
Derivative, fixed interest rate | 1.65% | 1.65% |
Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Term of derivative contract | 3 years | |
Derivative notional amount | $ 100,000,000 | € 93,700,000.0 |
Cross Currency Interest Rate Contract [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, fixed interest rate | 1.65% | 1.65% |
Cross Currency Interest Rate Contract [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, fixed interest rate | 0.18% | 0.18% |
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