Property, Plant and Equipment

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Note 6 - Property, Plant and Equipment

The components of property, plant and equipment were as follows:



	September 30, 2014			December 31, 2013
Land and buildings	$	435.5		$	418.8
Machinery and equipment	1,955.7			1,976.5
Subtotal	2,391.2			2,395.3
Accumulated depreciation	(1,557.8		)	(1,539.5		)
Property, Plant and Equipment, net	$	833.4		$	855.8

Depreciation expense for the nine months ended September 30, 2014 and 2013 was $90.0 million and $93.4 million, respectively. At September 30, 2014 and December 31, 2013, machinery and equipment included $48.6 million and $63.3 million, respectively, of capitalized software. Depreciation expense on capitalized software for the nine months ended September 30, 2014 and 2013 was approximately $8.3 million and $17.6 million, respectively. Capitalized interest during the nine months ended September 30, 2014 and 2013 was $1.6 million and $1.2 million, respectively.

In November 2013, the Company finalized the sale of its former manufacturing site in Sao Paulo, Brazil (Sao Paulo). The Company expects to receive approximately $34 million over a twenty-four month period, of which $17.2 million was received as of September 30, 2014. The total cost of this transaction, including the net book value of the real estate and broker's commissions, was approximately $3 million. The Company began recognizing the gain on the sale of this site using the installment method. In the fourth quarter of 2013, the Company recognized a gain of $5.4 million ($5.4 million after tax). In the first quarter of 2014, the Company changed to the full accrual method of recognizing the gain after it had received 25% of the total sales value. As a result, the Company recognized the remaining gain of $22.6 million ($19.5 million after tax) related to this transaction during the first quarter of 2014. During the first nine months of 2014, the Company also recorded interest income of $1.8 million on deferred payments related to this transaction.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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