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• | Univar USA (“USA”) |
• | Univar Canada (“Canada”) |
• | Univar Europe, the Middle East and Africa (“EMEA”) |
• | Rest of the World (“Rest of World”) |
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Buildings | 10-50 years |
Main components of tank farms | 5-40 years |
Containers | 2-15 years |
Machinery and equipment | 5-20 years |
Furniture, fixtures and others | 5-20 years |
Information technology | 3-10 years |
Level 1 | Quoted prices for identical instruments in active markets. | |
Level 2 | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuation in which all significant inputs and significant value drivers are observable in active markets. | |
Level 3 | Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
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Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Pension mark to market loss | $ | 3.8 | $ | 68.6 | $ | 21.1 | |||||
Pension curtailment and settlement gains | (9.7 | ) | (1.3 | ) | (4.0 | ) | |||||
Stock-based compensation expense | 19.7 | 10.4 | 7.5 | ||||||||
Business transformation costs | 23.4 | 5.4 | — | ||||||||
Restructuring charges | 5.5 | 6.5 | 33.8 | ||||||||
Other employee termination costs | 8.1 | 1.5 | — | ||||||||
Gain on sale of property, plant and equipment | (11.3 | ) | (0.7 | ) | (2.8 | ) | |||||
Acquisition and integration related expenses | 3.1 | 5.5 | 7.1 | ||||||||
Advisory fees to CVC and CD&R (1) | — | — | 2.8 | ||||||||
Contract termination fee to CVC and CD&R | — | — | 26.2 | ||||||||
Other | 6.9 | 8.6 | 14.4 | ||||||||
Total other operating expenses, net | $ | 49.5 | $ | 104.5 | $ | 106.1 | |||||
(1) | As of December 31, 2015, significant stockholders were CVC Capital Partners (“CVC”) and Clayton, Dubilier & Rice, LLC (“CD&R”). |
|
(in millions) | USA | Canada | EMEA | ROW | Other | Total | |||||||||||||||||
Anticipated total costs | |||||||||||||||||||||||
Employee termination costs | $ | 16.5 | $ | 5.7 | $ | 22.5 | $ | 6.2 | $ | 5.8 | $ | 56.7 | |||||||||||
Facility exit costs | 23.9 | — | 3.7 | 0.2 | — | 27.8 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.6 | — | 0.8 | 9.1 | |||||||||||||||||
Total | $ | 42.1 | $ | 5.7 | $ | 32.8 | $ | 6.4 | $ | 6.6 | $ | 93.6 | |||||||||||
Incurred to date costs | |||||||||||||||||||||||
Inception of plans through December 31, 2017 | |||||||||||||||||||||||
Employee termination costs | $ | 16.5 | $ | 5.7 | $ | 22.5 | $ | 6.2 | $ | 5.8 | $ | 56.7 | |||||||||||
Facility exit costs | 22.2 | — | 3.7 | 0.2 | — | 26.1 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.6 | — | 0.8 | 9.1 | |||||||||||||||||
Total | $ | 40.4 | $ | 5.7 | $ | 32.8 | $ | 6.4 | $ | 6.6 | $ | 91.9 | |||||||||||
Inception of plans through December 31, 2016 | |||||||||||||||||||||||
Employee termination costs | $ | 16.8 | $ | 5.2 | $ | 21.6 | $ | 4.4 | $ | 5.8 | $ | 53.8 | |||||||||||
Facility exit costs | 19.6 | — | 3.5 | 0.2 | — | 23.3 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.8 | — | 0.8 | 9.3 | |||||||||||||||||
Total | $ | 38.1 | $ | 5.2 | $ | 31.9 | $ | 4.6 | $ | 6.6 | $ | 86.4 |
(in millions) | January 1, 2017 | Charge to earnings | Cash paid | Non-cash and other | December 31, 2017 | ||||||||||||||
Employee termination costs | $ | 6.9 | $ | 2.9 | $ | (7.2 | ) | $ | 0.4 | $ | 3.0 | ||||||||
Facility exit costs | 13.2 | 2.8 | (5.5 | ) | (0.3 | ) | 10.2 | ||||||||||||
Other exit costs | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | |||||||||||
Total | $ | 20.1 | $ | 5.5 | $ | (13.0 | ) | $ | 0.1 | $ | 12.7 |
(in millions) | January 1, 2016 | Charge to earnings | Cash paid | Non-cash and other | December 31, 2016 | ||||||||||||||
Employee termination costs | $ | 31.0 | $ | 0.4 | $ | (24.5 | ) | $ | — | $ | 6.9 | ||||||||
Facility exit costs | 15.5 | 6.0 | (8.3 | ) | — | 13.2 | |||||||||||||
Other exit costs | 0.1 | 0.1 | (0.2 | ) | — | — | |||||||||||||
Total | $ | 46.6 | $ | 6.5 | $ | (33.0 | ) | $ | — | $ | 20.1 |
|
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Foreign currency transactions | $ | (4.6 | ) | $ | (0.6 | ) | $ | (0.8 | ) | ||
Foreign currency denominated loans revaluation | (17.9 | ) | (13.7 | ) | 8.9 | ||||||
Undesignated foreign currency derivative instruments (1) | 0.3 | (1.8 | ) | (4.8 | ) | ||||||
Undesignated interest rate swap contracts (1) | (2.2 | ) | 10.1 | 2.0 | |||||||
Ineffective portion of cash flow hedges (1) | — | — | (0.4 | ) | |||||||
Loss due to discontinuance of cash flow hedges (1) | — | — | (7.5 | ) | |||||||
Debt refinancing costs (2) | (5.3 | ) | — | (16.5 | ) | ||||||
Other | (3.5 | ) | (0.1 | ) | (4.1 | ) | |||||
Total other expense, net | $ | (33.2 | ) | $ | (6.1 | ) | $ | (23.2 | ) | ||
(1) | Refer to “Note 17: Derivatives” for more information. |
(2) | Refer to “Note 15: Debt” for more information. |
|
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Income (loss) before income taxes | |||||||||||
United States | $ | 1.5 | $ | (131.3 | ) | $ | (13.0 | ) | |||
Foreign | 167.3 | 51.7 | 39.7 | ||||||||
Total income (loss) before income taxes | $ | 168.8 | $ | (79.6 | ) | $ | 26.7 |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | 6.8 | $ | (0.1 | ) | $ | 0.6 | ||||
State | 2.0 | 0.1 | 2.5 | ||||||||
Foreign | 28.5 | 20.4 | 14.5 | ||||||||
Total current | $ | 37.3 | $ | 20.4 | $ | 17.6 | |||||
Deferred: | |||||||||||
Federal | 26.5 | (15.1 | ) | (12.3 | ) | ||||||
State | — | (3.0 | ) | 1.7 | |||||||
Foreign | (14.8 | ) | (13.5 | ) | 3.2 | ||||||
Total deferred | $ | 11.7 | $ | (31.6 | ) | $ | (7.4 | ) | |||
Total income tax expense (benefit) | $ | 49.0 | $ | (11.2 | ) | $ | 10.2 |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
US federal statutory income tax expense (benefit) applied to income (loss) before income taxes | $ | 59.1 | $ | (27.8 | ) | $ | 9.3 | ||||
State income taxes, net of federal benefit | 1.4 | (2.9 | ) | 3.3 | |||||||
Foreign tax rate differential | (18.0 | ) | (5.8 | ) | (6.5 | ) | |||||
Non-taxable interest income | (11.4 | ) | (10.8 | ) | (14.1 | ) | |||||
Valuation allowance, net | (18.1 | ) | (24.7 | ) | (9.0 | ) | |||||
Expiration of tax attributes | 0.1 | 4.4 | 8.1 | ||||||||
Foreign losses not benefited | 0.7 | 8.0 | 7.5 | ||||||||
Effect of flow-through entities | 8.9 | (9.0 | ) | 4.2 | |||||||
Net share-based compensation | (3.7 | ) | 1.7 | 3.5 | |||||||
Non-deductible expense | 3.5 | 3.4 | 3.5 | ||||||||
Unrecognized tax benefits | (1.7 | ) | (1.4 | ) | (2.5 | ) | |||||
Adjustment to prior year tax due to changes in estimates | (0.5 | ) | 0.3 | 1.6 | |||||||
Change in statutory income tax rates | (17.5 | ) | 2.7 | 1.1 | |||||||
Deemed dividends from foreign subsidiaries | 17.6 | 1.4 | 0.6 | ||||||||
Non-deductible interest expense | 0.1 | 2.6 | 0.5 | ||||||||
Withholding and other taxes based on income | 0.5 | 0.5 | 0.5 | ||||||||
Contingent consideration | (0.3 | ) | — | — | |||||||
Foreign exchange rate remeasurement | 0.3 | (1.0 | ) | (0.4 | ) | ||||||
Revaluation due to Section 987 tax law change | — | 45.0 | — | ||||||||
One-time repatriation tax | 76.5 | — | — | ||||||||
Foreign Tax Credit | (47.6 | ) | — | — | |||||||
Other | (0.9 | ) | 2.2 | (1.0 | ) | ||||||
Total income tax expense (benefit) | $ | 49.0 | $ | (11.2 | ) | $ | 10.2 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 68.6 | $ | 124.1 | |||
Environmental reserves | 25.3 | 40.2 | |||||
Interest | 35.7 | 93.8 | |||||
Tax credit and capital loss carryforwards | 37.2 | 4.5 | |||||
Pension | 68.2 | 105.4 | |||||
Flow-through entities | 2.5 | 15.6 | |||||
Stock options | 5.7 | 11.4 | |||||
Inventory | 4.2 | 8.7 | |||||
Other temporary differences | 26.4 | 17.8 | |||||
Gross deferred tax assets | $ | 273.8 | $ | 421.5 | |||
Valuation allowance | (117.2 | ) | (167.9 | ) | |||
Deferred tax assets, net of valuation allowance | $ | 156.6 | $ | 253.6 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment, net | (98.7 | ) | (165.2 | ) | |||
Intangible assets | (64.6 | ) | (85.3 | ) | |||
Other temporary differences | (5.9 | ) | (2.1 | ) | |||
Deferred tax liabilities | $ | (169.2 | ) | $ | (252.6 | ) | |
Net deferred tax (liability) asset | $ | (12.6 | ) | $ | 1.0 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 167.9 | $ | 193.0 | |||
Change related to current foreign net operating losses | 0.7 | 5.3 | |||||
Change related to utilization of net operating loss carryforwards | (30.1 | ) | (20.6 | ) | |||
Change related to generation/expiration of tax attributes | 29.9 | (4.5 | ) | ||||
Change related to foreign currency | 7.1 | (4.6 | ) | ||||
Change related to utilization of deferred interest expense | (26.3 | ) | — | ||||
Change related to tax rate change | (31.6 | ) | — | ||||
Change related to other items | (0.4 | ) | (0.7 | ) | |||
Ending balance | $ | 117.2 | $ | 167.9 |
Year ended December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 4.3 | $ | 5.2 | |||
Increase for tax positions of prior years | — | 0.4 | |||||
Reductions due to the statute of limitations expiration | (1.5 | ) | (1.3 | ) | |||
Foreign exchange | 0.3 | — | |||||
Ending balance | $ | 3.1 | $ | 4.3 |
|
Domestic | Foreign | Total | |||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Change in projected benefit obligations: | |||||||||||||||||||||||
Actuarial present value of benefit obligations at beginning of year | $ | 719.7 | $ | 691.9 | $ | 555.5 | $ | 531.7 | $ | 1,275.2 | $ | 1,223.6 | |||||||||||
Service cost | — | — | 2.5 | 2.5 | 2.5 | 2.5 | |||||||||||||||||
Interest cost | 30.8 | 32.0 | 16.2 | 18.3 | 47.0 | 50.3 | |||||||||||||||||
Benefits paid | (34.2 | ) | (32.1 | ) | (27.9 | ) | (23.9 | ) | (62.1 | ) | (56.0 | ) | |||||||||||
Plan amendments | — | — | 2.7 | (1.6 | ) | 2.7 | (1.6 | ) | |||||||||||||||
Settlement | (44.3 | ) | — | — | — | (44.3 | ) | — | |||||||||||||||
Curtailment | — | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||||
Actuarial loss | 49.9 | 27.9 | 13.3 | 86.1 | 63.2 | 114.0 | |||||||||||||||||
Foreign exchange and other | — | — | 49.7 | (56.3 | ) | 49.7 | (56.3 | ) | |||||||||||||||
Actuarial present value of benefit obligations at end of year | $ | 721.9 | $ | 719.7 | $ | 612.0 | $ | 555.5 | $ | 1,333.9 | $ | 1,275.2 | |||||||||||
Change in the fair value of plan assets: | |||||||||||||||||||||||
Plan assets at beginning of year | $ | 509.1 | $ | 497.6 | $ | 494.3 | $ | 481.5 | $ | 1,003.4 | $ | 979.1 | |||||||||||
Actual return on plan assets | 80.0 | 40.1 | 37.4 | 66.3 | 117.4 | 106.4 | |||||||||||||||||
Contributions by employer | 12.1 | 3.5 | 26.1 | 28.1 | 38.2 | 31.6 | |||||||||||||||||
Benefits paid | (34.2 | ) | (32.1 | ) | (27.9 | ) | (23.9 | ) | (62.1 | ) | (56.0 | ) | |||||||||||
Settlement | (34.7 | ) | — | (1.3 | ) | — | (36.0 | ) | — | ||||||||||||||
Foreign exchange and other | — | — | 46.3 | (57.7 | ) | 46.3 | (57.7 | ) | |||||||||||||||
Plan assets at end of year | $ | 532.3 | $ | 509.1 | $ | 574.9 | $ | 494.3 | $ | 1,107.2 | $ | 1,003.4 | |||||||||||
Funded status at end of year | $ | (189.6 | ) | $ | (210.6 | ) | $ | (37.1 | ) | $ | (61.2 | ) | $ | (226.7 | ) | $ | (271.8 | ) |
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Overfunded net benefit obligation in other assets | $ | — | $ | — | $ | 33.9 | $ | — | $ | 33.9 | $ | — | |||||||||||
Current portion of net benefit obligation in other accrued expenses | (3.5 | ) | (3.6 | ) | (2.1 | ) | (1.9 | ) | (5.6 | ) | (5.5 | ) | |||||||||||
Long-term portion of net benefit obligation in pension and other postretirement benefit liabilities | (186.1 | ) | (207.0 | ) | (68.9 | ) | (59.3 | ) | (255.0 | ) | (266.3 | ) | |||||||||||
Net liability recognized at end of year | $ | (189.6 | ) | $ | (210.6 | ) | $ | (37.1 | ) | $ | (61.2 | ) | $ | (226.7 | ) | $ | (271.8 | ) |
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Accumulated benefit obligation | $ | 721.9 | $ | 719.7 | $ | 211.4 | $ | 412.5 | $ | 933.3 | $ | 1,132.2 | |||||||||||
Fair value of plan assets | 532.3 | 509.1 | 169.3 | 379.5 | 701.6 | 888.6 |
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Projected benefit obligation | $ | 721.9 | $ | 719.7 | $ | 240.3 | $ | 555.5 | $ | 962.2 | $ | 1,275.2 | |||||||||||
Fair value of plan assets | 532.3 | 509.1 | 169.3 | 494.3 | 701.6 | 1,003.4 |
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
Service cost (1) | $ | — | $ | — | $ | — | $ | 2.5 | $ | 2.5 | $ | 5.4 | $ | 2.5 | $ | 2.5 | $ | 5.4 | |||||||||||||||||
Interest cost (1) | 30.8 | 32.0 | 30.8 | 16.2 | 18.3 | 20.1 | 47.0 | 50.3 | 50.9 | ||||||||||||||||||||||||||
Expected return on plan assets (1) | (30.9 | ) | (32.5 | ) | (35.8 | ) | (26.0 | ) | (28.7 | ) | (30.2 | ) | (56.9 | ) | (61.2 | ) | (66.0 | ) | |||||||||||||||||
Amortization of unrecognized prior service credits (1) | — | — | — | (0.2 | ) | — | — | (0.2 | ) | — | — | ||||||||||||||||||||||||
Settlement (2) | (9.7 | ) | — | — | — | — | (1.4 | ) | (9.7 | ) | — | (1.4 | ) | ||||||||||||||||||||||
Curtailment (2) | — | — | — | — | (1.3 | ) | (2.6 | ) | — | (1.3 | ) | (2.6 | ) | ||||||||||||||||||||||
Actuarial loss (3) | 0.8 | 20.3 | 12.1 | 3.2 | 48.5 | 12.5 | 4.0 | 68.8 | 24.6 | ||||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (9.0 | ) | $ | 19.8 | $ | 7.1 | $ | (4.3 | ) | $ | 39.3 | $ | 3.8 | $ | (13.3 | ) | $ | 59.1 | $ | 10.9 | ||||||||||||||
(1) | These amounts are included in warehouse, selling and administrative expenses. |
(2) | In 2017, the settlement gain is related to a lump sum offering accepted by participants in the USA segment. In 2016 and 2015, the settlement and curtailment gains are a result of the restructuring activities in the EMEA segment. Settlement and curtailment gains are included in other operating expenses, net. |
(3) | Actuarial loss is included in other operating expenses, net. |
(in millions) | Defined benefit pension plans | ||
Net prior service cost | $ | (1.4 | ) |
(in millions) | Defined benefit pension plans | ||
Prior service cost | $ | (0.1 | ) |
Other postretirement benefits | |||||||
Year ended December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Change in accumulated postretirement benefit obligations: | |||||||
Actuarial present value of benefit obligations at beginning of year | $ | 2.8 | $ | 3.4 | |||
Service cost | — | — | |||||
Interest cost | 0.2 | 0.1 | |||||
Contributions by participants | 0.4 | 0.3 | |||||
Benefits paid | (0.7 | ) | (0.8 | ) | |||
Actuarial gain | (0.2 | ) | (0.2 | ) | |||
Actuarial present value of benefit obligations at end of year | $ | 2.5 | $ | 2.8 | |||
Change in the fair value of plan assets: | |||||||
Plan assets at beginning of year | $ | — | $ | — | |||
Contributions by employer | 0.3 | 0.5 | |||||
Contributions by participants | 0.4 | 0.3 | |||||
Benefits paid | (0.7 | ) | (0.8 | ) | |||
Plan assets at end of year | $ | — | $ | — | |||
Funded status at end of year | $ | (2.5 | ) | $ | (2.8 | ) |
Other postretirement benefits | |||||||
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Current portion of net benefit obligation in other accrued expenses | $ | (0.4 | ) | $ | (0.5 | ) | |
Long-term portion of net benefit obligation in pension and other postretirement benefit liabilities | (2.1 | ) | (2.3 | ) | |||
Net liability recognized at end of year | $ | (2.5 | ) | $ | (2.8 | ) |
Other postretirement benefits | |||||||||||
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Service cost (1) | $ | — | $ | — | $ | 0.1 | |||||
Interest cost (1) | 0.2 | 0.1 | 0.2 | ||||||||
Amortization of unrecognized prior service credits (1) | — | (4.5 | ) | (11.9 | ) | ||||||
Actuarial gain (2) | (0.2 | ) | (0.2 | ) | (3.5 | ) | |||||
Net periodic benefit income | $ | — | $ | (4.6 | ) | $ | (15.1 | ) | |||
(1) | These amounts are included in warehouse, selling and administrative expenses. |
(2) | Actuarial gain is included in other operating expenses, net. |
Domestic | Foreign | ||||||||||
December 31, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Actuarial assumptions used to determine benefit obligations at end of period: | |||||||||||
Discount rate | 3.87 | % | 4.39 | % | 2.61 | % | 2.84 | % | |||
Expected annual rate of compensation increase | N/A | N/A | 2.87 | % | 2.87 | % |
Domestic | Foreign | ||||||||||||||||
Year ended December 31, | Year ended December 31, | ||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||
Actuarial assumptions used to determine net periodic benefit cost (income) for the period: | |||||||||||||||||
Discount rate | 4.39 | % | 4.74 | % | 4.31 | % | 2.84 | % | 3.65 | % | 3.51 | % | |||||
Expected rate of return on plan assets | 7.00 | % | 7.50 | % | 7.50 | % | 5.01 | % | 6.18 | % | 6.07 | % | |||||
Expected annual rate of compensation increase | N/A | N/A | N/A | 2.87 | % | 2.86 | % | 2.80 | % |
Domestic | Foreign | ||||
Asset category: | |||||
Equity securities | 50.0 | % | 34.8 | % | |
Debt securities | 45.0 | % | 59.0 | % | |
Other | 5.0 | % | 6.2 | % | |
Total | 100.0 | % | 100.0 | % |
Fair value methodology | Description |
Cash | This represents cash at banks. The amount of cash in the bank account represents the fair value. |
Investment funds | Values are based on the net asset value of the units held at year end. The net asset values are based on the fair value of the underlying assets of the funds, minus their liabilities, and then divided by the number of units outstanding at the valuation date. The funds are traded on private markets that are not active; however, the unit price is based primarily on observable market data of the fund’s underlying assets. |
Insurance contracts | The fair value is based on the present value of the accrued benefit. |
December 31, 2017 | |||||||||||
(in millions) | Total | Level 1 | Level 2 | ||||||||
Cash | $ | 2.6 | $ | 2.6 | $ | — | |||||
Investments funds (1) | 529.7 | — | 529.7 | ||||||||
Total | $ | 532.3 | $ | 2.6 | $ | 529.7 | |||||
(1) | This category includes investments in 30.8% in US equities, 19.7% in non-US equities, 44.5% in US corporate bonds and 5.0% in other investments. |
December 31, 2016 | |||||||||||
(in millions) | Total | Level 1 | Level 2 | ||||||||
Cash | $ | 2.4 | $ | 2.4 | $ | — | |||||
Investments funds (1) | 506.7 | — | 506.7 | ||||||||
Total | $ | 509.1 | $ | 2.4 | $ | 506.7 | |||||
(1) | This category includes investments in 30.0% in US equities, 20.0% in non-US equities, 44.9% in US corporate bonds and 5.1% in other investments. |
December 31, 2017 | |||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash | $ | 4.0 | $ | 4.0 | $ | — | $ | — | |||||||
Investments: | |||||||||||||||
Investment funds (1) | 552.7 | — | 552.7 | — | |||||||||||
Insurance contracts | 18.2 | — | — | 18.2 | |||||||||||
Total investments | $ | 570.9 | $ | — | $ | 552.7 | $ | 18.2 | |||||||
Total | $ | 574.9 | $ | 4.0 | $ | 552.7 | $ | 18.2 | |||||||
(1) | This category includes investments in 11.0% in US equities, 22.0% in non-US equities, 29.2% in non-US corporate bonds, 32.0% in non-US government bonds and 5.8% in other investments. |
(in millions) | Insurance contracts | ||
Balance at January 1, 2017 | $ | 15.6 | |
Actual return to plan assets: | |||
Related to assets still held at year end | 0.1 | ||
Purchases, sales and settlements, net | 0.3 | ||
Foreign exchange | 2.2 | ||
Balance at December 31, 2017 | $ | 18.2 |
December 31, 2016 | |||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||
Investments: | |||||||||||||||
Investment funds (1) | 474.1 | — | 474.1 | — | |||||||||||
Insurance contracts | 15.6 | — | — | 15.6 | |||||||||||
Total investments | $ | 489.7 | $ | — | $ | 474.1 | $ | 15.6 | |||||||
Total | $ | 494.3 | $ | 4.6 | $ | 474.1 | $ | 15.6 | |||||||
(1) | This category includes investments in 8.4% in US equities, 30.2% in non-US equities, 2.8% in US corporate bonds, 24.0% in non-US corporate bonds, 0.3% in US government bonds, 25.9% in non-US government bonds and 8.4% in other investments. |
(in millions) | Insurance contracts | ||
Balance at January 1, 2016 | $ | 13.8 | |
Actual return on plan assets: | |||
Related to assets still held at year end | 2.2 | ||
Purchases, sales and settlements, net | 0.1 | ||
Foreign exchange | (0.5 | ) | |
Balance at December 31, 2016 | $ | 15.6 |
Defined benefit pension plans | Other postretirement benefits | ||||||||||||||
(in millions) | Domestic | Foreign | Total | ||||||||||||
2018 | $ | 37.3 | $ | 17.1 | $ | 54.4 | $ | 0.5 | |||||||
2019 | 36.8 | 17.0 | 53.8 | 0.5 | |||||||||||
2020 | 37.9 | 17.6 | 55.5 | 0.1 | |||||||||||
2021 | 38.8 | 18.7 | 57.5 | 0.1 | |||||||||||
2022 | 39.7 | 20.9 | 60.6 | 0.1 | |||||||||||
2023 through 2027 | 209.6 | 116.1 | 325.7 | 0.3 |
• | Assets contributed to the multi-employer plan by the Company may be used to provide benefits to employees of other participating employers. |
• | If the Company stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. |
• | If the Company chooses to stop participating in some of its multi-employer plans, it may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. |
Pension fund | EIN/Pension plan number | PPA zone status | FIP/RP status pending/ implemented | Contributions(1) | Surcharge imposed | Expiration dates of collective bargaining agreement(s) | |||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2015 | |||||||||||||||||||
Western Conference of Teamsters Pension Plan | 91-6145047/001 | Green | Green | No | $ | 1.5 | $ | 1.7 | $ | 1.4 | No | January 22, 2018 to July 31, 2021 | |||||||||||
Central States, Southeast and Southwest Areas Pension Plan | 36-6044243/001 | Red as of January 1, 2016 | Red as of January 1, 2015 | Implemented | 1.1 | 1.1 | 1.1 | No | January 15, 2018 to November 30, 2022 | ||||||||||||||
New England Teamsters and Trucking Industry Pension Fund | 04-6372430/001 | Red as of October 1, 2016 | Red as of October 1, 2014 | Implemented | 0.1 | 0.1 | 0.1 | No | June 30, 2020 | ||||||||||||||
Total contributions: | $ | 2.7 | $ | 2.9 | $ | 2.6 | |||||||||||||||||
(1) | The plan contributions by the Company did not represent more than five percent of total contributions to the plans as indicated in the plans’ most recently available annual report. |
|
Number of stock options | Weighted- average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in millions) | |||||||||
Outstanding at January 1, 2017 | 3,634,733 | $ | 20.03 | |||||||||
Granted | 980,570 | 28.82 | ||||||||||
Exercised | (1,810,108 | ) | 20.18 | |||||||||
Forfeited | (196,586 | ) | 24.17 | |||||||||
Outstanding at December 31, 2017 | 2,608,609 | $ | 22.92 | |||||||||
Exercisable at December 31, 2017 | 1,579,435 | $ | 20.29 | 5.3 | $ | 16.8 | ||||||
Expected to vest after December 31, 2017 | 1,029,174 | $ | 26.95 | 8.4 | $ | 4.1 |
Restricted stock | Weighted average grant-date fair value | |||||
Non-vested at January 1, 2017 | 86,197 | $ | 18.43 | |||
Granted | 46,536 | 29.92 | ||||
Vested | (79,898 | ) | 18.42 | |||
Forfeited | — | — | ||||
Non-vested at December 31, 2017 | 52,835 | $ | 28.56 |
Number of Restricted Stock Unit | Weighted- average grant-date fair value | |||||
Non-vested at January 1, 2017 | 1,009,887 | $ | 13.10 | |||
Granted | 572,938 | 29.39 | ||||
Vested | (658,115 | ) | 16.15 | |||
Forfeited | (135,791 | ) | 16.72 | |||
Non-vested at December 31, 2017 | 788,919 | $ | 21.77 |
Year ended December 31, 2016 | ||
Risk-free interest rate (1) | 1.0 | % |
Expected dividend yield (2) | — | |
Expected volatility (3) | 45.0 | % |
(1) | The risk-free interest rate is based on the US Treasury yield for a period in years over which performance condition is satisfied. |
(2) | The Company currently has no expectation of paying cash dividends on its common stock. |
(3) | As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the performance-based RSUs. |
Year ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Risk-free interest rate (1) | 2.1 | % | — | % | 1.7 | % | ||
Expected dividend yield (2) | — | — | — | |||||
Expected volatility (3) | 25.5 | % | — | % | 28.3 | % | ||
Expected term (years) (4) | 5.9 | 0.0 | 6.2 | |||||
(1) | The risk-free interest rate is based on the US Treasury yield for a term consistent with the expected term of the stock options at the time of grant. |
(2) | The Company currently has no expectation of paying cash dividends on its common stock. |
(3) | As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the stock options. |
(4) | As the Company does not have sufficient historical exercise data under the Plans, the expected term is based on the average of the vesting period of each tranche and the original contract term of 10 years. |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Total intrinsic value of stock options exercised | $ | 16.7 | $ | 4.0 | $ | 0.4 | |||||
Fair value of restricted stock and RSUs vested | 22.8 | 2.7 | 2.9 |
|
(in millions) | Cash flow hedges | Defined benefit pension items | Currency translation items | Total | |||||||||||
Balance as of December 31, 2015 | $ | — | $ | 3.0 | $ | (427.4 | ) | $ | (424.4 | ) | |||||
Other comprehensive income before reclassifications | — | 1.2 | 36.3 | 37.5 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3.0 | ) | — | (3.0 | ) | |||||||||
Net current period other comprehensive (loss) income | $ | — | $ | (1.8 | ) | $ | 36.3 | $ | 34.5 | ||||||
Balance as of December 31, 2016 | $ | — | $ | 1.2 | $ | (391.1 | ) | $ | (389.9 | ) | |||||
Other comprehensive income (loss) before reclassifications | 4.4 | (2.2 | ) | 107.1 | 109.3 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 2.3 | (0.2 | ) | — | 2.1 | ||||||||||
Net current period other comprehensive income (loss) | $ | 6.7 | $ | (2.4 | ) | $ | 107.1 | $ | 111.4 | ||||||
Balance as of December 31, 2017 | $ | 6.7 | $ | (1.2 | ) | $ | (284.0 | ) | $ | (278.5 | ) |
(in millions) | Year ended December 31, 2017 (1) | Year ended December 31, 2016 (1) | Location of impact on statement of operations | ||||||
Amortization of defined benefit pension items: | |||||||||
Prior service credits | $ | (0.2 | ) | $ | (4.5 | ) | Warehousing, selling and administrative | ||
Tax expense | — | 1.5 | Income tax expense (benefit) | ||||||
Net of tax | $ | (0.2 | ) | $ | (3.0 | ) | |||
Cash flow hedges: | |||||||||
Interest rate swap contracts | $ | 3.8 | $ | — | Interest expense | ||||
Tax benefit | (1.5 | ) | — | Income tax expense (benefit) | |||||
Net of tax | $ | 2.3 | $ | — | |||||
Total reclassifications for the period | $ | 2.1 | $ | (3.0 | ) | ||||
(1) | Amounts in parentheses indicate credits to net income in the consolidated statement of operations. |
|
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Land and buildings | $ | 809.6 | $ | 781.1 | |||
Tank farms | 277.4 | 272.5 | |||||
Machinery, equipment and other | 820.2 | 747.6 | |||||
Less: Accumulated depreciation | (927.2 | ) | (811.5 | ) | |||
Subtotal | $ | 980.0 | $ | 989.7 | |||
Work in progress | 23.0 | 29.8 | |||||
Property, plant and equipment, net (1) | $ | 1,003.0 | $ | 1,019.5 | |||
(1) | As of December 31, 2016, property, plant and equipment amounts are net of impairment losses of $16.5 million. Refer to “Note 13: Impairment charges” for further information. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Capital lease assets, at cost | $ | 86.0 | $ | 76.5 | |||
Less: accumulated depreciation | (27.0 | ) | (14.5 | ) | |||
Capital lease assets, net | $ | 59.0 | $ | 62.0 |
|
(in millions) | USA | Canada | EMEA | Rest of World | Total | ||||||||||||||
Balance, January 1, 2016 | $ | 1,306.1 | $ | 420.7 | $ | 2.1 | $ | 16.2 | $ | 1,745.1 | |||||||||
Additions | 17.7 | 5.2 | — | — | 22.9 | ||||||||||||||
Purchase price adjustments | 1.4 | — | (0.9 | ) | — | 0.5 | |||||||||||||
Foreign exchange | — | 12.5 | (0.1 | ) | 3.5 | 15.9 | |||||||||||||
Balance, December 31, 2016 | $ | 1,325.2 | $ | 438.4 | $ | 1.1 | $ | 19.7 | $ | 1,784.4 | |||||||||
Additions | — | — | — | 4.1 | 4.1 | ||||||||||||||
Purchase price adjustments | — | 0.5 | — | — | 0.5 | ||||||||||||||
Foreign exchange | — | 29.8 | 0.1 | (0.5 | ) | 29.4 | |||||||||||||
Balance, December 31, 2017 | $ | 1,325.2 | $ | 468.7 | $ | 1.2 | $ | 23.3 | $ | 1,818.4 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | |||||||||||||||||
Intangible assets (subject to amortization): | |||||||||||||||||||||||
Customer relationships (1) | $ | 853.5 | $ | (582.1 | ) | $ | 271.4 | $ | 826.2 | $ | (514.3 | ) | $ | 311.9 | |||||||||
Other (2) | 177.8 | (161.5 | ) | 16.3 | 178.2 | (150.9 | ) | 27.3 | |||||||||||||||
Total intangible assets | $ | 1,031.3 | $ | (743.6 | ) | $ | 287.7 | $ | 1,004.4 | $ | (665.2 | ) | $ | 339.2 | |||||||||
(1) | Net of impairment losses of $110.2 million recorded during the year ended December 31, 2016. Refer to “Note 13: Impairment charges” for further information. |
(2) | Net of impairment losses of $3.5 million recorded during the year ended December 31, 2016. Refer to “Note 13: Impairment charges” for further information. |
(in millions) | |||
2018 | $ | 53.8 | |
2019 | 48.0 | ||
2020 | 43.3 | ||
2021 | 39.3 | ||
2022 | 31.6 |
|
|
|
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Amounts drawn under credit facilities | $ | 9.1 | $ | 12.1 | |||
Bank overdrafts | 4.3 | 13.2 | |||||
Total | $ | 13.4 | $ | 25.3 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Senior Term Loan Facilities: | |||||||
Term B Loan due 2024, variable interest rate of 4.07% and 4.25% at December 31, 2017 and December 31, 2016, respectively | $ | 2,277.8 | $ | 2,024.4 | |||
Euro Tranche Term Loan due 2022, variable interest rate of 4.25% at December 31, 2016 (Loan paid off on Nov 28, 2017) | — | 259.9 | |||||
Asset Backed Loan (ABL) Facilities: | |||||||
North American ABL Facility due 2020, variable interest rate of 5.00% and 4.25% at December 31, 2017 and December 31, 2016, respectively | 155.0 | 152.0 | |||||
North American ABL Term Loan due 2018, variable interest rate of 4.44% and 3.75% at December 31, 2017 and December 31, 2016, respectively | 16.7 | 83.3 | |||||
Senior Unsecured Notes: | |||||||
Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at December 31, 2017 and December 31, 2016 | 399.5 | 399.5 | |||||
Capital lease obligations | 60.9 | 63.4 | |||||
Total long-term debt before discount | $ | 2,909.9 | $ | 2,982.5 | |||
Less: unamortized debt issuance costs and discount on debt | (27.9 | ) | (28.5 | ) | |||
Total long-term debt | $ | 2,882.0 | $ | 2,954.0 | |||
Less: current maturities | (62.0 | ) | (109.0 | ) | |||
Total long-term debt, excluding current maturities | $ | 2,820.0 | $ | 2,845.0 |
(in millions) | |||
2018 | $ | 62.0 | |
2019 | 33.4 | ||
2020 | 188.0 | ||
2021 | 31.5 | ||
2022 | 29.5 | ||
Thereafter | 2,565.5 | ||
Total (1) | $ | 2,909.9 | |
(1) | See “Note 23: Subsequent events” in Item 8 of this Annual Report on Form 10-K for additional information. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Cash | $ | 313.6 | $ | 237.4 | |||
Trade accounts receivable, net | 881.0 | 790.6 | |||||
Inventories | 702.0 | 655.5 | |||||
Prepaid expenses and other current assets | 93.3 | 128.2 | |||||
Property, plant and equipment, net | 780.0 | 856.4 | |||||
Total | $ | 2,769.9 | $ | 2,668.1 |
|
Level 2 | Level 3 | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Financial current assets: | |||||||||||||||
Forward currency contracts | $ | 0.3 | $ | 0.5 | $ | — | $ | — | |||||||
Interest rate swap contracts | 1.2 | — | — | — | |||||||||||
Financial non-current assets: | |||||||||||||||
Interest rate swap contracts | 10.6 | 9.8 | — | — | |||||||||||
Financial current liabilities: | |||||||||||||||
Forward currency contracts | 0.4 | 0.3 | — | — | |||||||||||
Interest rate swap contracts | — | 5.6 | — | — | |||||||||||
Contingent consideration | — | — | — | 1.6 | |||||||||||
Financial non-current liabilities: | |||||||||||||||
Contingent consideration | — | — | 0.4 | 5.9 |
(in millions) | 2017 | 2016 | |||||
Fair value as of January 1 | $ | 7.5 | $ | 8.7 | |||
Additions | 0.4 | — | |||||
Fair value adjustments | (3.0 | ) | (0.7 | ) | |||
Foreign currency | 0.1 | (0.1 | ) | ||||
Payments | (3.7 | ) | (0.4 | ) | |||
Gain on settlement | (0.9 | ) | — | ||||
Fair value as of December 31 | $ | 0.4 | $ | 7.5 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||
Financial liabilities: | |||||||||||||||
Long-term debt including current portion (Level 2) | $ | 2,882.0 | $ | 2,939.7 | $ | 2,954.0 | $ | 3,019.1 |
|
|
|
(in millions) | Minimum rental commitments | ||
2018 | $ | 60.1 | |
2019 | 51.8 | ||
2020 | 42.0 | ||
2021 | 34.7 | ||
2022 | 31.9 | ||
Thereafter | 47.3 | ||
Total | $ | 267.8 |
(in millions) | 2017 | 2016 | |||||
Environmental liabilities at January 1 | $ | 95.8 | $ | 113.2 | |||
Revised obligation estimates | 12.3 | 5.5 | |||||
Environmental payments | (19.3 | ) | (22.5 | ) | |||
Foreign exchange | 0.4 | (0.4 | ) | ||||
Environmental liabilities at December 31 | $ | 89.2 | $ | 95.8 |
(in millions) | |||
2018 | $ | 29.1 | |
2019 | 13.4 | ||
2020 | 9.7 | ||
2021 | 8.3 | ||
2022 | 6.8 | ||
Thereafter | 26.8 | ||
Total | $ | 94.1 |
|
Year ended December 31, | ||||||||
(in millions) | 2017 | 2016 | 2015 | |||||
CD&R: | ||||||||
Sales to affiliate companies | 5.3 | 7.7 | 29.7 | |||||
Purchases from affiliate companies | 6.0 | 16.5 | 19.9 | |||||
Temasek: | ||||||||
Sales to affiliate companies | 10.1 | 14.4 | 19.8 | |||||
Purchases from affiliate companies | 0.7 | 10.1 | 0.1 | |||||
CVC (1): | ||||||||
Sales to affiliate companies | — | 0.5 | 1.9 | |||||
Purchases from affiliate companies | — | — | 8.8 | |||||
(1) | Sales and purchases related information for CVC is disclosed until August 31, 2016. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Due from affiliates | $ | 1.0 | $ | 2.3 | |||
Due to affiliates | 0.2 | 2.1 |
|
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 4,657.1 | $ | 1,371.5 | $ | 1,821.2 | $ | 403.9 | $ | — | $ | 8,253.7 | |||||||||||
Inter-segment | 121.9 | 9.1 | 4.5 | 0.5 | (136.0 | ) | — | ||||||||||||||||
Total net sales | $ | 4,779.0 | $ | 1,380.6 | $ | 1,825.7 | $ | 404.4 | $ | (136.0 | ) | $ | 8,253.7 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 3,706.8 | 1,143.0 | 1,411.7 | 322.7 | (136.0 | ) | 6,448.2 | ||||||||||||||||
Gross profit | $ | 1,072.2 | $ | 237.6 | $ | 414.0 | $ | 81.7 | $ | — | $ | 1,805.5 | |||||||||||
Outbound freight and handling | 192.8 | 37.3 | 55.7 | 6.2 | — | 292.0 | |||||||||||||||||
Warehousing, selling and administrative | 528.3 | 85.0 | 220.2 | 46.8 | 29.5 | 909.8 | |||||||||||||||||
Adjusted EBITDA | $ | 351.1 | $ | 115.3 | $ | 138.1 | $ | 28.7 | $ | (29.5 | ) | $ | 603.7 | ||||||||||
Other operating expenses, net | 49.5 | ||||||||||||||||||||||
Depreciation | 135.0 | ||||||||||||||||||||||
Amortization | 65.4 | ||||||||||||||||||||||
Interest expense, net | 148.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | 3.8 | ||||||||||||||||||||||
Other expense, net | 33.2 | ||||||||||||||||||||||
Income tax expense | 49.0 | ||||||||||||||||||||||
Net income | $ | 119.8 | |||||||||||||||||||||
Total assets | $ | 3,526.8 | $ | 2,091.3 | $ | 935.1 | $ | 237.5 | $ | (1,058.0 | ) | $ | 5,732.7 | ||||||||||
Property, plant and equipment, net | 636.1 | 147.7 | 158.0 | 33.5 | 27.7 | 1,003.0 | |||||||||||||||||
Capital expenditures | 47.5 | 17.1 | 14.6 | 2.4 | 1.1 | 82.7 |
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 4,706.7 | $ | 1,261.0 | $ | 1,704.2 | $ | 401.8 | $ | — | $ | 8,073.7 | |||||||||||
Inter-segment | 104.4 | 8.3 | 4.5 | — | (117.2 | ) | — | ||||||||||||||||
Total net sales | $ | 4,811.1 | $ | 1,269.3 | $ | 1,708.7 | $ | 401.8 | $ | (117.2 | ) | $ | 8,073.7 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 3,769.7 | 1,047.4 | 1,324.6 | 322.1 | (117.2 | ) | 6,346.6 | ||||||||||||||||
Gross profit | $ | 1,041.4 | $ | 221.9 | $ | 384.1 | $ | 79.7 | $ | — | $ | 1,727.1 | |||||||||||
Outbound freight and handling | 191.5 | 34.1 | 54.9 | 6.1 | — | 286.6 | |||||||||||||||||
Warehousing, selling and administrative | 517.5 | 83.8 | 210.5 | 46.8 | 19.2 | 877.8 | |||||||||||||||||
Adjusted EBITDA | $ | 332.4 | $ | 104.0 | $ | 118.7 | $ | 26.8 | $ | (19.2 | ) | $ | 562.7 | ||||||||||
Other operating expenses, net | 104.5 | ||||||||||||||||||||||
Depreciation | 152.3 | ||||||||||||||||||||||
Amortization | 85.6 | ||||||||||||||||||||||
Impairment charges | 133.9 | ||||||||||||||||||||||
Interest expense, net | 159.9 | ||||||||||||||||||||||
Other expense, net | 6.1 | ||||||||||||||||||||||
Income tax benefit | (11.2 | ) | |||||||||||||||||||||
Net loss | $ | (68.4 | ) | ||||||||||||||||||||
Total assets | $ | 3,676.8 | $ | 1,856.2 | $ | 857.4 | $ | 211.3 | $ | (1,211.8 | ) | $ | 5,389.9 | ||||||||||
Property, plant and equipment, net | 671.1 | 148.3 | 144.8 | 18.2 | 37.1 | 1,019.5 | |||||||||||||||||
Capital expenditures | 56.5 | 17.4 | 12.2 | 2.8 | 1.2 | 90.1 |
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 5,351.5 | $ | 1,376.6 | $ | 1,780.1 | $ | 473.6 | $ | — | $ | 8,981.8 | |||||||||||
Inter-segment | 112.7 | 8.6 | 4.0 | 0.1 | (125.4 | ) | — | ||||||||||||||||
Total net sales | $ | 5,464.2 | $ | 1,385.2 | $ | 1,784.1 | $ | 473.7 | $ | (125.4 | ) | $ | 8,981.8 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 4,365.9 | 1,161.0 | 1,398.6 | 382.6 | (125.4 | ) | 7,182.7 | ||||||||||||||||
Gross profit | $ | 1,098.3 | $ | 224.2 | $ | 385.5 | $ | 91.1 | $ | — | $ | 1,799.1 | |||||||||||
Outbound freight and handling | 216.9 | 39.3 | 59.6 | 8.8 | — | 324.6 | |||||||||||||||||
Warehousing, selling and administrative | 492.6 | 87.8 | 226.0 | 54.1 | 13.9 | 874.4 | |||||||||||||||||
Adjusted EBITDA | $ | 388.8 | $ | 97.1 | $ | 99.9 | $ | 28.2 | $ | (13.9 | ) | $ | 600.1 | ||||||||||
Other operating expenses, net | 106.1 | ||||||||||||||||||||||
Depreciation | 136.5 | ||||||||||||||||||||||
Amortization | 88.5 | ||||||||||||||||||||||
Interest expense, net | 207.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | 12.1 | ||||||||||||||||||||||
Other expense, net | 23.2 | ||||||||||||||||||||||
Income tax expense | 10.2 | ||||||||||||||||||||||
Net income | $ | 16.5 | |||||||||||||||||||||
Total assets | $ | 3,962.0 | $ | 1,709.7 | $ | 947.2 | $ | 233.6 | $ | (1,240.1 | ) | $ | 5,612.4 | ||||||||||
Property, plant and equipment, net | 714.9 | 133.3 | 167.7 | 20.3 | 46.3 | 1,082.5 | |||||||||||||||||
Capital expenditures | 106.8 | 16.1 | 17.2 | 3.4 | 1.5 | 145.0 | |||||||||||||||||
|
(in millions, except per share data) | March 31 | June 30 | September 30 | December 31 (1) | |||||||||||
Net sales | $ | 1,998.8 | $ | 2,247.0 | $ | 2,048.7 | $ | 1,959.2 | |||||||
Gross profit | 439.4 | 466.4 | 454.8 | 444.9 | |||||||||||
Net income | 22.6 | 31.3 | 38.9 | 27.0 | |||||||||||
Income per share: | |||||||||||||||
Basic and diluted | $ | 0.16 | $ | 0.22 | $ | 0.28 | $ | 0.19 | |||||||
Shares used in computation of income (loss) per share: | |||||||||||||||
Basic | 139.4 | 140.1 | 140.4 | 140.7 | |||||||||||
Diluted | 140.8 | 141.3 | 141.4 | 141.8 | |||||||||||
(1) | Included in the fourth quarter of 2017 was a loss of $3.8 million relating to the annual mark to market adjustment on the defined benefit pension and postretirement plans. Refer to “Note 8: Employee benefit plans” for further information. |
(in millions, except per share data) | March 31 | June 30 | September 30 (1) | December 31 (2) | |||||||||||
Net sales | $ | 1,999.0 | $ | 2,262.5 | $ | 1,999.7 | $ | 1,812.5 | |||||||
Gross profit | 430.3 | 445.4 | 438.1 | 413.3 | |||||||||||
Net income (loss) | 14.0 | 39.8 | (63.0 | ) | (59.2 | ) | |||||||||
Income (loss) per share: | |||||||||||||||
Basic and diluted | $ | 0.10 | $ | 0.29 | $ | (0.46 | ) | $ | (0.43 | ) | |||||
Shares used in computation of income (loss) per share: | |||||||||||||||
Basic | 137.6 | 137.6 | 137.7 | 138.1 | |||||||||||
Diluted | 137.8 | 138.1 | 137.7 | 138.1 | |||||||||||
(1) | Included in the third quarter of 2016 was an impairment charge of $133.9 million. Refer to “Note 13: Impairment charges” for further information. |
(2) | Included in the fourth quarter of 2016 was a loss of $68.6 million relating to the annual mark to market adjustment on the defined benefit pension and postretirement plans. Refer to “Note 8: Employee benefit plans” for further information. |
|
|
Buildings | 10-50 years |
Main components of tank farms | 5-40 years |
Containers | 2-15 years |
Machinery and equipment | 5-20 years |
Furniture, fixtures and others | 5-20 years |
Information technology | 3-10 years |
Level 1 | Quoted prices for identical instruments in active markets. | |
Level 2 | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuation in which all significant inputs and significant value drivers are observable in active markets. | |
Level 3 | Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
|
Buildings | 10-50 years |
Main components of tank farms | 5-40 years |
Containers | 2-15 years |
Machinery and equipment | 5-20 years |
Furniture, fixtures and others | 5-20 years |
Information technology | 3-10 years |
|
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Pension mark to market loss | $ | 3.8 | $ | 68.6 | $ | 21.1 | |||||
Pension curtailment and settlement gains | (9.7 | ) | (1.3 | ) | (4.0 | ) | |||||
Stock-based compensation expense | 19.7 | 10.4 | 7.5 | ||||||||
Business transformation costs | 23.4 | 5.4 | — | ||||||||
Restructuring charges | 5.5 | 6.5 | 33.8 | ||||||||
Other employee termination costs | 8.1 | 1.5 | — | ||||||||
Gain on sale of property, plant and equipment | (11.3 | ) | (0.7 | ) | (2.8 | ) | |||||
Acquisition and integration related expenses | 3.1 | 5.5 | 7.1 | ||||||||
Advisory fees to CVC and CD&R (1) | — | — | 2.8 | ||||||||
Contract termination fee to CVC and CD&R | — | — | 26.2 | ||||||||
Other | 6.9 | 8.6 | 14.4 | ||||||||
Total other operating expenses, net | $ | 49.5 | $ | 104.5 | $ | 106.1 | |||||
(1) | As of December 31, 2015, significant stockholders were CVC Capital Partners (“CVC”) and Clayton, Dubilier & Rice, LLC (“CD&R”). |
|
(in millions) | USA | Canada | EMEA | ROW | Other | Total | |||||||||||||||||
Anticipated total costs | |||||||||||||||||||||||
Employee termination costs | $ | 16.5 | $ | 5.7 | $ | 22.5 | $ | 6.2 | $ | 5.8 | $ | 56.7 | |||||||||||
Facility exit costs | 23.9 | — | 3.7 | 0.2 | — | 27.8 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.6 | — | 0.8 | 9.1 | |||||||||||||||||
Total | $ | 42.1 | $ | 5.7 | $ | 32.8 | $ | 6.4 | $ | 6.6 | $ | 93.6 | |||||||||||
Incurred to date costs | |||||||||||||||||||||||
Inception of plans through December 31, 2017 | |||||||||||||||||||||||
Employee termination costs | $ | 16.5 | $ | 5.7 | $ | 22.5 | $ | 6.2 | $ | 5.8 | $ | 56.7 | |||||||||||
Facility exit costs | 22.2 | — | 3.7 | 0.2 | — | 26.1 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.6 | — | 0.8 | 9.1 | |||||||||||||||||
Total | $ | 40.4 | $ | 5.7 | $ | 32.8 | $ | 6.4 | $ | 6.6 | $ | 91.9 | |||||||||||
Inception of plans through December 31, 2016 | |||||||||||||||||||||||
Employee termination costs | $ | 16.8 | $ | 5.2 | $ | 21.6 | $ | 4.4 | $ | 5.8 | $ | 53.8 | |||||||||||
Facility exit costs | 19.6 | — | 3.5 | 0.2 | — | 23.3 | |||||||||||||||||
Other exit costs | 1.7 | — | 6.8 | — | 0.8 | 9.3 | |||||||||||||||||
Total | $ | 38.1 | $ | 5.2 | $ | 31.9 | $ | 4.6 | $ | 6.6 | $ | 86.4 |
(in millions) | January 1, 2017 | Charge to earnings | Cash paid | Non-cash and other | December 31, 2017 | ||||||||||||||
Employee termination costs | $ | 6.9 | $ | 2.9 | $ | (7.2 | ) | $ | 0.4 | $ | 3.0 | ||||||||
Facility exit costs | 13.2 | 2.8 | (5.5 | ) | (0.3 | ) | 10.2 | ||||||||||||
Other exit costs | — | (0.2 | ) | (0.3 | ) | — | (0.5 | ) | |||||||||||
Total | $ | 20.1 | $ | 5.5 | $ | (13.0 | ) | $ | 0.1 | $ | 12.7 |
(in millions) | January 1, 2016 | Charge to earnings | Cash paid | Non-cash and other | December 31, 2016 | ||||||||||||||
Employee termination costs | $ | 31.0 | $ | 0.4 | $ | (24.5 | ) | $ | — | $ | 6.9 | ||||||||
Facility exit costs | 15.5 | 6.0 | (8.3 | ) | — | 13.2 | |||||||||||||
Other exit costs | 0.1 | 0.1 | (0.2 | ) | — | — | |||||||||||||
Total | $ | 46.6 | $ | 6.5 | $ | (33.0 | ) | $ | — | $ | 20.1 |
|
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Foreign currency transactions | $ | (4.6 | ) | $ | (0.6 | ) | $ | (0.8 | ) | ||
Foreign currency denominated loans revaluation | (17.9 | ) | (13.7 | ) | 8.9 | ||||||
Undesignated foreign currency derivative instruments (1) | 0.3 | (1.8 | ) | (4.8 | ) | ||||||
Undesignated interest rate swap contracts (1) | (2.2 | ) | 10.1 | 2.0 | |||||||
Ineffective portion of cash flow hedges (1) | — | — | (0.4 | ) | |||||||
Loss due to discontinuance of cash flow hedges (1) | — | — | (7.5 | ) | |||||||
Debt refinancing costs (2) | (5.3 | ) | — | (16.5 | ) | ||||||
Other | (3.5 | ) | (0.1 | ) | (4.1 | ) | |||||
Total other expense, net | $ | (33.2 | ) | $ | (6.1 | ) | $ | (23.2 | ) | ||
(1) | Refer to “Note 17: Derivatives” for more information. |
(2) | Refer to “Note 15: Debt” for more information. |
|
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Income (loss) before income taxes | |||||||||||
United States | $ | 1.5 | $ | (131.3 | ) | $ | (13.0 | ) | |||
Foreign | 167.3 | 51.7 | 39.7 | ||||||||
Total income (loss) before income taxes | $ | 168.8 | $ | (79.6 | ) | $ | 26.7 |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | 6.8 | $ | (0.1 | ) | $ | 0.6 | ||||
State | 2.0 | 0.1 | 2.5 | ||||||||
Foreign | 28.5 | 20.4 | 14.5 | ||||||||
Total current | $ | 37.3 | $ | 20.4 | $ | 17.6 | |||||
Deferred: | |||||||||||
Federal | 26.5 | (15.1 | ) | (12.3 | ) | ||||||
State | — | (3.0 | ) | 1.7 | |||||||
Foreign | (14.8 | ) | (13.5 | ) | 3.2 | ||||||
Total deferred | $ | 11.7 | $ | (31.6 | ) | $ | (7.4 | ) | |||
Total income tax expense (benefit) | $ | 49.0 | $ | (11.2 | ) | $ | 10.2 |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
US federal statutory income tax expense (benefit) applied to income (loss) before income taxes | $ | 59.1 | $ | (27.8 | ) | $ | 9.3 | ||||
State income taxes, net of federal benefit | 1.4 | (2.9 | ) | 3.3 | |||||||
Foreign tax rate differential | (18.0 | ) | (5.8 | ) | (6.5 | ) | |||||
Non-taxable interest income | (11.4 | ) | (10.8 | ) | (14.1 | ) | |||||
Valuation allowance, net | (18.1 | ) | (24.7 | ) | (9.0 | ) | |||||
Expiration of tax attributes | 0.1 | 4.4 | 8.1 | ||||||||
Foreign losses not benefited | 0.7 | 8.0 | 7.5 | ||||||||
Effect of flow-through entities | 8.9 | (9.0 | ) | 4.2 | |||||||
Net share-based compensation | (3.7 | ) | 1.7 | 3.5 | |||||||
Non-deductible expense | 3.5 | 3.4 | 3.5 | ||||||||
Unrecognized tax benefits | (1.7 | ) | (1.4 | ) | (2.5 | ) | |||||
Adjustment to prior year tax due to changes in estimates | (0.5 | ) | 0.3 | 1.6 | |||||||
Change in statutory income tax rates | (17.5 | ) | 2.7 | 1.1 | |||||||
Deemed dividends from foreign subsidiaries | 17.6 | 1.4 | 0.6 | ||||||||
Non-deductible interest expense | 0.1 | 2.6 | 0.5 | ||||||||
Withholding and other taxes based on income | 0.5 | 0.5 | 0.5 | ||||||||
Contingent consideration | (0.3 | ) | — | — | |||||||
Foreign exchange rate remeasurement | 0.3 | (1.0 | ) | (0.4 | ) | ||||||
Revaluation due to Section 987 tax law change | — | 45.0 | — | ||||||||
One-time repatriation tax | 76.5 | — | — | ||||||||
Foreign Tax Credit | (47.6 | ) | — | — | |||||||
Other | (0.9 | ) | 2.2 | (1.0 | ) | ||||||
Total income tax expense (benefit) | $ | 49.0 | $ | (11.2 | ) | $ | 10.2 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 68.6 | $ | 124.1 | |||
Environmental reserves | 25.3 | 40.2 | |||||
Interest | 35.7 | 93.8 | |||||
Tax credit and capital loss carryforwards | 37.2 | 4.5 | |||||
Pension | 68.2 | 105.4 | |||||
Flow-through entities | 2.5 | 15.6 | |||||
Stock options | 5.7 | 11.4 | |||||
Inventory | 4.2 | 8.7 | |||||
Other temporary differences | 26.4 | 17.8 | |||||
Gross deferred tax assets | $ | 273.8 | $ | 421.5 | |||
Valuation allowance | (117.2 | ) | (167.9 | ) | |||
Deferred tax assets, net of valuation allowance | $ | 156.6 | $ | 253.6 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment, net | (98.7 | ) | (165.2 | ) | |||
Intangible assets | (64.6 | ) | (85.3 | ) | |||
Other temporary differences | (5.9 | ) | (2.1 | ) | |||
Deferred tax liabilities | $ | (169.2 | ) | $ | (252.6 | ) | |
Net deferred tax (liability) asset | $ | (12.6 | ) | $ | 1.0 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 167.9 | $ | 193.0 | |||
Change related to current foreign net operating losses | 0.7 | 5.3 | |||||
Change related to utilization of net operating loss carryforwards | (30.1 | ) | (20.6 | ) | |||
Change related to generation/expiration of tax attributes | 29.9 | (4.5 | ) | ||||
Change related to foreign currency | 7.1 | (4.6 | ) | ||||
Change related to utilization of deferred interest expense | (26.3 | ) | — | ||||
Change related to tax rate change | (31.6 | ) | — | ||||
Change related to other items | (0.4 | ) | (0.7 | ) | |||
Ending balance | $ | 117.2 | $ | 167.9 |
Year ended December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 4.3 | $ | 5.2 | |||
Increase for tax positions of prior years | — | 0.4 | |||||
Reductions due to the statute of limitations expiration | (1.5 | ) | (1.3 | ) | |||
Foreign exchange | 0.3 | — | |||||
Ending balance | $ | 3.1 | $ | 4.3 |
|
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Accumulated benefit obligation | $ | 721.9 | $ | 719.7 | $ | 211.4 | $ | 412.5 | $ | 933.3 | $ | 1,132.2 | |||||||||||
Fair value of plan assets | 532.3 | 509.1 | 169.3 | 379.5 | 701.6 | 888.6 |
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Projected benefit obligation | $ | 721.9 | $ | 719.7 | $ | 240.3 | $ | 555.5 | $ | 962.2 | $ | 1,275.2 | |||||||||||
Fair value of plan assets | 532.3 | 509.1 | 169.3 | 494.3 | 701.6 | 1,003.4 |
(in millions) | Defined benefit pension plans | ||
Prior service cost | $ | (0.1 | ) |
Fair value methodology | Description |
Cash | This represents cash at banks. The amount of cash in the bank account represents the fair value. |
Investment funds | Values are based on the net asset value of the units held at year end. The net asset values are based on the fair value of the underlying assets of the funds, minus their liabilities, and then divided by the number of units outstanding at the valuation date. The funds are traded on private markets that are not active; however, the unit price is based primarily on observable market data of the fund’s underlying assets. |
Insurance contracts | The fair value is based on the present value of the accrued benefit. |
Domestic | Foreign | ||||||||||
December 31, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Actuarial assumptions used to determine benefit obligations at end of period: | |||||||||||
Discount rate | 3.87 | % | 4.39 | % | 2.61 | % | 2.84 | % | |||
Expected annual rate of compensation increase | N/A | N/A | 2.87 | % | 2.87 | % |
Domestic | Foreign | ||||||||||||||||
Year ended December 31, | Year ended December 31, | ||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||
Actuarial assumptions used to determine net periodic benefit cost (income) for the period: | |||||||||||||||||
Discount rate | 4.39 | % | 4.74 | % | 4.31 | % | 2.84 | % | 3.65 | % | 3.51 | % | |||||
Expected rate of return on plan assets | 7.00 | % | 7.50 | % | 7.50 | % | 5.01 | % | 6.18 | % | 6.07 | % | |||||
Expected annual rate of compensation increase | N/A | N/A | N/A | 2.87 | % | 2.86 | % | 2.80 | % |
Domestic | Foreign | ||||
Asset category: | |||||
Equity securities | 50.0 | % | 34.8 | % | |
Debt securities | 45.0 | % | 59.0 | % | |
Other | 5.0 | % | 6.2 | % | |
Total | 100.0 | % | 100.0 | % |
Defined benefit pension plans | Other postretirement benefits | ||||||||||||||
(in millions) | Domestic | Foreign | Total | ||||||||||||
2018 | $ | 37.3 | $ | 17.1 | $ | 54.4 | $ | 0.5 | |||||||
2019 | 36.8 | 17.0 | 53.8 | 0.5 | |||||||||||
2020 | 37.9 | 17.6 | 55.5 | 0.1 | |||||||||||
2021 | 38.8 | 18.7 | 57.5 | 0.1 | |||||||||||
2022 | 39.7 | 20.9 | 60.6 | 0.1 | |||||||||||
2023 through 2027 | 209.6 | 116.1 | 325.7 | 0.3 |
Pension fund | EIN/Pension plan number | PPA zone status | FIP/RP status pending/ implemented | Contributions(1) | Surcharge imposed | Expiration dates of collective bargaining agreement(s) | |||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2015 | |||||||||||||||||||
Western Conference of Teamsters Pension Plan | 91-6145047/001 | Green | Green | No | $ | 1.5 | $ | 1.7 | $ | 1.4 | No | January 22, 2018 to July 31, 2021 | |||||||||||
Central States, Southeast and Southwest Areas Pension Plan | 36-6044243/001 | Red as of January 1, 2016 | Red as of January 1, 2015 | Implemented | 1.1 | 1.1 | 1.1 | No | January 15, 2018 to November 30, 2022 | ||||||||||||||
New England Teamsters and Trucking Industry Pension Fund | 04-6372430/001 | Red as of October 1, 2016 | Red as of October 1, 2014 | Implemented | 0.1 | 0.1 | 0.1 | No | June 30, 2020 | ||||||||||||||
Total contributions: | $ | 2.7 | $ | 2.9 | $ | 2.6 | |||||||||||||||||
(1) | The plan contributions by the Company did not represent more than five percent of total contributions to the plans as indicated in the plans’ most recently available annual report. |
Domestic | Foreign | Total | |||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Change in projected benefit obligations: | |||||||||||||||||||||||
Actuarial present value of benefit obligations at beginning of year | $ | 719.7 | $ | 691.9 | $ | 555.5 | $ | 531.7 | $ | 1,275.2 | $ | 1,223.6 | |||||||||||
Service cost | — | — | 2.5 | 2.5 | 2.5 | 2.5 | |||||||||||||||||
Interest cost | 30.8 | 32.0 | 16.2 | 18.3 | 47.0 | 50.3 | |||||||||||||||||
Benefits paid | (34.2 | ) | (32.1 | ) | (27.9 | ) | (23.9 | ) | (62.1 | ) | (56.0 | ) | |||||||||||
Plan amendments | — | — | 2.7 | (1.6 | ) | 2.7 | (1.6 | ) | |||||||||||||||
Settlement | (44.3 | ) | — | — | — | (44.3 | ) | — | |||||||||||||||
Curtailment | — | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||||
Actuarial loss | 49.9 | 27.9 | 13.3 | 86.1 | 63.2 | 114.0 | |||||||||||||||||
Foreign exchange and other | — | — | 49.7 | (56.3 | ) | 49.7 | (56.3 | ) | |||||||||||||||
Actuarial present value of benefit obligations at end of year | $ | 721.9 | $ | 719.7 | $ | 612.0 | $ | 555.5 | $ | 1,333.9 | $ | 1,275.2 | |||||||||||
Change in the fair value of plan assets: | |||||||||||||||||||||||
Plan assets at beginning of year | $ | 509.1 | $ | 497.6 | $ | 494.3 | $ | 481.5 | $ | 1,003.4 | $ | 979.1 | |||||||||||
Actual return on plan assets | 80.0 | 40.1 | 37.4 | 66.3 | 117.4 | 106.4 | |||||||||||||||||
Contributions by employer | 12.1 | 3.5 | 26.1 | 28.1 | 38.2 | 31.6 | |||||||||||||||||
Benefits paid | (34.2 | ) | (32.1 | ) | (27.9 | ) | (23.9 | ) | (62.1 | ) | (56.0 | ) | |||||||||||
Settlement | (34.7 | ) | — | (1.3 | ) | — | (36.0 | ) | — | ||||||||||||||
Foreign exchange and other | — | — | 46.3 | (57.7 | ) | 46.3 | (57.7 | ) | |||||||||||||||
Plan assets at end of year | $ | 532.3 | $ | 509.1 | $ | 574.9 | $ | 494.3 | $ | 1,107.2 | $ | 1,003.4 | |||||||||||
Funded status at end of year | $ | (189.6 | ) | $ | (210.6 | ) | $ | (37.1 | ) | $ | (61.2 | ) | $ | (226.7 | ) | $ | (271.8 | ) |
Domestic | Foreign | Total | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Overfunded net benefit obligation in other assets | $ | — | $ | — | $ | 33.9 | $ | — | $ | 33.9 | $ | — | |||||||||||
Current portion of net benefit obligation in other accrued expenses | (3.5 | ) | (3.6 | ) | (2.1 | ) | (1.9 | ) | (5.6 | ) | (5.5 | ) | |||||||||||
Long-term portion of net benefit obligation in pension and other postretirement benefit liabilities | (186.1 | ) | (207.0 | ) | (68.9 | ) | (59.3 | ) | (255.0 | ) | (266.3 | ) | |||||||||||
Net liability recognized at end of year | $ | (189.6 | ) | $ | (210.6 | ) | $ | (37.1 | ) | $ | (61.2 | ) | $ | (226.7 | ) | $ | (271.8 | ) |
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
Service cost (1) | $ | — | $ | — | $ | — | $ | 2.5 | $ | 2.5 | $ | 5.4 | $ | 2.5 | $ | 2.5 | $ | 5.4 | |||||||||||||||||
Interest cost (1) | 30.8 | 32.0 | 30.8 | 16.2 | 18.3 | 20.1 | 47.0 | 50.3 | 50.9 | ||||||||||||||||||||||||||
Expected return on plan assets (1) | (30.9 | ) | (32.5 | ) | (35.8 | ) | (26.0 | ) | (28.7 | ) | (30.2 | ) | (56.9 | ) | (61.2 | ) | (66.0 | ) | |||||||||||||||||
Amortization of unrecognized prior service credits (1) | — | — | — | (0.2 | ) | — | — | (0.2 | ) | — | — | ||||||||||||||||||||||||
Settlement (2) | (9.7 | ) | — | — | — | — | (1.4 | ) | (9.7 | ) | — | (1.4 | ) | ||||||||||||||||||||||
Curtailment (2) | — | — | — | — | (1.3 | ) | (2.6 | ) | — | (1.3 | ) | (2.6 | ) | ||||||||||||||||||||||
Actuarial loss (3) | 0.8 | 20.3 | 12.1 | 3.2 | 48.5 | 12.5 | 4.0 | 68.8 | 24.6 | ||||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (9.0 | ) | $ | 19.8 | $ | 7.1 | $ | (4.3 | ) | $ | 39.3 | $ | 3.8 | $ | (13.3 | ) | $ | 59.1 | $ | 10.9 | ||||||||||||||
(1) | These amounts are included in warehouse, selling and administrative expenses. |
(2) | In 2017, the settlement gain is related to a lump sum offering accepted by participants in the USA segment. In 2016 and 2015, the settlement and curtailment gains are a result of the restructuring activities in the EMEA segment. Settlement and curtailment gains are included in other operating expenses, net. |
(3) | Actuarial loss is included in other operating expenses, net. |
(in millions) | Defined benefit pension plans | ||
Net prior service cost | $ | (1.4 | ) |
Other postretirement benefits | |||||||
Year ended December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Change in accumulated postretirement benefit obligations: | |||||||
Actuarial present value of benefit obligations at beginning of year | $ | 2.8 | $ | 3.4 | |||
Service cost | — | — | |||||
Interest cost | 0.2 | 0.1 | |||||
Contributions by participants | 0.4 | 0.3 | |||||
Benefits paid | (0.7 | ) | (0.8 | ) | |||
Actuarial gain | (0.2 | ) | (0.2 | ) | |||
Actuarial present value of benefit obligations at end of year | $ | 2.5 | $ | 2.8 | |||
Change in the fair value of plan assets: | |||||||
Plan assets at beginning of year | $ | — | $ | — | |||
Contributions by employer | 0.3 | 0.5 | |||||
Contributions by participants | 0.4 | 0.3 | |||||
Benefits paid | (0.7 | ) | (0.8 | ) | |||
Plan assets at end of year | $ | — | $ | — | |||
Funded status at end of year | $ | (2.5 | ) | $ | (2.8 | ) |
Other postretirement benefits | |||||||
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Current portion of net benefit obligation in other accrued expenses | $ | (0.4 | ) | $ | (0.5 | ) | |
Long-term portion of net benefit obligation in pension and other postretirement benefit liabilities | (2.1 | ) | (2.3 | ) | |||
Net liability recognized at end of year | $ | (2.5 | ) | $ | (2.8 | ) |
Other postretirement benefits | |||||||||||
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Service cost (1) | $ | — | $ | — | $ | 0.1 | |||||
Interest cost (1) | 0.2 | 0.1 | 0.2 | ||||||||
Amortization of unrecognized prior service credits (1) | — | (4.5 | ) | (11.9 | ) | ||||||
Actuarial gain (2) | (0.2 | ) | (0.2 | ) | (3.5 | ) | |||||
Net periodic benefit income | $ | — | $ | (4.6 | ) | $ | (15.1 | ) | |||
(1) | These amounts are included in warehouse, selling and administrative expenses. |
(2) | Actuarial gain is included in other operating expenses, net. |
Other postretirement benefits | |||||||||||
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Service cost (1) | $ | — | $ | — | $ | 0.1 | |||||
Interest cost (1) | 0.2 | 0.1 | 0.2 | ||||||||
Amortization of unrecognized prior service credits (1) | — | (4.5 | ) | (11.9 | ) | ||||||
Actuarial gain (2) | (0.2 | ) | (0.2 | ) | (3.5 | ) | |||||
Net periodic benefit income | $ | — | $ | (4.6 | ) | $ | (15.1 | ) | |||
(1) | These amounts are included in warehouse, selling and administrative expenses. |
(2) | Actuarial gain is included in other operating expenses, net. |
December 31, 2017 | |||||||||||
(in millions) | Total | Level 1 | Level 2 | ||||||||
Cash | $ | 2.6 | $ | 2.6 | $ | — | |||||
Investments funds (1) | 529.7 | — | 529.7 | ||||||||
Total | $ | 532.3 | $ | 2.6 | $ | 529.7 | |||||
(1) | This category includes investments in 30.8% in US equities, 19.7% in non-US equities, 44.5% in US corporate bonds and 5.0% in other investments. |
December 31, 2016 | |||||||||||
(in millions) | Total | Level 1 | Level 2 | ||||||||
Cash | $ | 2.4 | $ | 2.4 | $ | — | |||||
Investments funds (1) | 506.7 | — | 506.7 | ||||||||
Total | $ | 509.1 | $ | 2.4 | $ | 506.7 | |||||
(1) | This category includes investments in 30.0% in US equities, 20.0% in non-US equities, 44.9% in US corporate bonds and 5.1% in other investments. |
December 31, 2016 | |||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash | $ | 4.6 | $ | 4.6 | $ | — | $ | — | |||||||
Investments: | |||||||||||||||
Investment funds (1) | 474.1 | — | 474.1 | — | |||||||||||
Insurance contracts | 15.6 | — | — | 15.6 | |||||||||||
Total investments | $ | 489.7 | $ | — | $ | 474.1 | $ | 15.6 | |||||||
Total | $ | 494.3 | $ | 4.6 | $ | 474.1 | $ | 15.6 | |||||||
(1) | This category includes investments in 8.4% in US equities, 30.2% in non-US equities, 2.8% in US corporate bonds, 24.0% in non-US corporate bonds, 0.3% in US government bonds, 25.9% in non-US government bonds and 8.4% in other investments. |
December 31, 2017 | |||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash | $ | 4.0 | $ | 4.0 | $ | — | $ | — | |||||||
Investments: | |||||||||||||||
Investment funds (1) | 552.7 | — | 552.7 | — | |||||||||||
Insurance contracts | 18.2 | — | — | 18.2 | |||||||||||
Total investments | $ | 570.9 | $ | — | $ | 552.7 | $ | 18.2 | |||||||
Total | $ | 574.9 | $ | 4.0 | $ | 552.7 | $ | 18.2 | |||||||
(1) | This category includes investments in 11.0% in US equities, 22.0% in non-US equities, 29.2% in non-US corporate bonds, 32.0% in non-US government bonds and 5.8% in other investments. |
(in millions) | Insurance contracts | ||
Balance at January 1, 2016 | $ | 13.8 | |
Actual return on plan assets: | |||
Related to assets still held at year end | 2.2 | ||
Purchases, sales and settlements, net | 0.1 | ||
Foreign exchange | (0.5 | ) | |
Balance at December 31, 2016 | $ | 15.6 |
(in millions) | Insurance contracts | ||
Balance at January 1, 2017 | $ | 15.6 | |
Actual return to plan assets: | |||
Related to assets still held at year end | 0.1 | ||
Purchases, sales and settlements, net | 0.3 | ||
Foreign exchange | 2.2 | ||
Balance at December 31, 2017 | $ | 18.2 |
|
Number of stock options | Weighted- average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in millions) | |||||||||
Outstanding at January 1, 2017 | 3,634,733 | $ | 20.03 | |||||||||
Granted | 980,570 | 28.82 | ||||||||||
Exercised | (1,810,108 | ) | 20.18 | |||||||||
Forfeited | (196,586 | ) | 24.17 | |||||||||
Outstanding at December 31, 2017 | 2,608,609 | $ | 22.92 | |||||||||
Exercisable at December 31, 2017 | 1,579,435 | $ | 20.29 | 5.3 | $ | 16.8 | ||||||
Expected to vest after December 31, 2017 | 1,029,174 | $ | 26.95 | 8.4 | $ | 4.1 |
Number of Restricted Stock Unit | Weighted- average grant-date fair value | |||||
Non-vested at January 1, 2017 | 1,009,887 | $ | 13.10 | |||
Granted | 572,938 | 29.39 | ||||
Vested | (658,115 | ) | 16.15 | |||
Forfeited | (135,791 | ) | 16.72 | |||
Non-vested at December 31, 2017 | 788,919 | $ | 21.77 |
Restricted stock | Weighted average grant-date fair value | |||||
Non-vested at January 1, 2017 | 86,197 | $ | 18.43 | |||
Granted | 46,536 | 29.92 | ||||
Vested | (79,898 | ) | 18.42 | |||
Forfeited | — | — | ||||
Non-vested at December 31, 2017 | 52,835 | $ | 28.56 |
Year ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Risk-free interest rate (1) | 2.1 | % | — | % | 1.7 | % | ||
Expected dividend yield (2) | — | — | — | |||||
Expected volatility (3) | 25.5 | % | — | % | 28.3 | % | ||
Expected term (years) (4) | 5.9 | 0.0 | 6.2 | |||||
(1) | The risk-free interest rate is based on the US Treasury yield for a term consistent with the expected term of the stock options at the time of grant. |
(2) | The Company currently has no expectation of paying cash dividends on its common stock. |
(3) | As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the stock options. |
(4) | As the Company does not have sufficient historical exercise data under the Plans, the expected term is based on the average of the vesting period of each tranche and the original contract term of 10 years. |
Year ended December 31, 2016 | ||
Risk-free interest rate (1) | 1.0 | % |
Expected dividend yield (2) | — | |
Expected volatility (3) | 45.0 | % |
(1) | The risk-free interest rate is based on the US Treasury yield for a period in years over which performance condition is satisfied. |
(2) | The Company currently has no expectation of paying cash dividends on its common stock. |
(3) | As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the performance-based RSUs. |
Year ended December 31, | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Total intrinsic value of stock options exercised | $ | 16.7 | $ | 4.0 | $ | 0.4 | |||||
Fair value of restricted stock and RSUs vested | 22.8 | 2.7 | 2.9 |
|
(in millions) | Cash flow hedges | Defined benefit pension items | Currency translation items | Total | |||||||||||
Balance as of December 31, 2015 | $ | — | $ | 3.0 | $ | (427.4 | ) | $ | (424.4 | ) | |||||
Other comprehensive income before reclassifications | — | 1.2 | 36.3 | 37.5 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3.0 | ) | — | (3.0 | ) | |||||||||
Net current period other comprehensive (loss) income | $ | — | $ | (1.8 | ) | $ | 36.3 | $ | 34.5 | ||||||
Balance as of December 31, 2016 | $ | — | $ | 1.2 | $ | (391.1 | ) | $ | (389.9 | ) | |||||
Other comprehensive income (loss) before reclassifications | 4.4 | (2.2 | ) | 107.1 | 109.3 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 2.3 | (0.2 | ) | — | 2.1 | ||||||||||
Net current period other comprehensive income (loss) | $ | 6.7 | $ | (2.4 | ) | $ | 107.1 | $ | 111.4 | ||||||
Balance as of December 31, 2017 | $ | 6.7 | $ | (1.2 | ) | $ | (284.0 | ) | $ | (278.5 | ) |
(in millions) | Year ended December 31, 2017 (1) | Year ended December 31, 2016 (1) | Location of impact on statement of operations | ||||||
Amortization of defined benefit pension items: | |||||||||
Prior service credits | $ | (0.2 | ) | $ | (4.5 | ) | Warehousing, selling and administrative | ||
Tax expense | — | 1.5 | Income tax expense (benefit) | ||||||
Net of tax | $ | (0.2 | ) | $ | (3.0 | ) | |||
Cash flow hedges: | |||||||||
Interest rate swap contracts | $ | 3.8 | $ | — | Interest expense | ||||
Tax benefit | (1.5 | ) | — | Income tax expense (benefit) | |||||
Net of tax | $ | 2.3 | $ | — | |||||
Total reclassifications for the period | $ | 2.1 | $ | (3.0 | ) | ||||
(1) | Amounts in parentheses indicate credits to net income in the consolidated statement of operations. |
|
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Land and buildings | $ | 809.6 | $ | 781.1 | |||
Tank farms | 277.4 | 272.5 | |||||
Machinery, equipment and other | 820.2 | 747.6 | |||||
Less: Accumulated depreciation | (927.2 | ) | (811.5 | ) | |||
Subtotal | $ | 980.0 | $ | 989.7 | |||
Work in progress | 23.0 | 29.8 | |||||
Property, plant and equipment, net (1) | $ | 1,003.0 | $ | 1,019.5 | |||
(1) | As of December 31, 2016, property, plant and equipment amounts are net of impairment losses of $16.5 million. Refer to “Note 13: Impairment charges” for further information. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Capital lease assets, at cost | $ | 86.0 | $ | 76.5 | |||
Less: accumulated depreciation | (27.0 | ) | (14.5 | ) | |||
Capital lease assets, net | $ | 59.0 | $ | 62.0 |
|
(in millions) | USA | Canada | EMEA | Rest of World | Total | ||||||||||||||
Balance, January 1, 2016 | $ | 1,306.1 | $ | 420.7 | $ | 2.1 | $ | 16.2 | $ | 1,745.1 | |||||||||
Additions | 17.7 | 5.2 | — | — | 22.9 | ||||||||||||||
Purchase price adjustments | 1.4 | — | (0.9 | ) | — | 0.5 | |||||||||||||
Foreign exchange | — | 12.5 | (0.1 | ) | 3.5 | 15.9 | |||||||||||||
Balance, December 31, 2016 | $ | 1,325.2 | $ | 438.4 | $ | 1.1 | $ | 19.7 | $ | 1,784.4 | |||||||||
Additions | — | — | — | 4.1 | 4.1 | ||||||||||||||
Purchase price adjustments | — | 0.5 | — | — | 0.5 | ||||||||||||||
Foreign exchange | — | 29.8 | 0.1 | (0.5 | ) | 29.4 | |||||||||||||
Balance, December 31, 2017 | $ | 1,325.2 | $ | 468.7 | $ | 1.2 | $ | 23.3 | $ | 1,818.4 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | |||||||||||||||||
Intangible assets (subject to amortization): | |||||||||||||||||||||||
Customer relationships (1) | $ | 853.5 | $ | (582.1 | ) | $ | 271.4 | $ | 826.2 | $ | (514.3 | ) | $ | 311.9 | |||||||||
Other (2) | 177.8 | (161.5 | ) | 16.3 | 178.2 | (150.9 | ) | 27.3 | |||||||||||||||
Total intangible assets | $ | 1,031.3 | $ | (743.6 | ) | $ | 287.7 | $ | 1,004.4 | $ | (665.2 | ) | $ | 339.2 | |||||||||
(1) | Net of impairment losses of $110.2 million recorded during the year ended December 31, 2016. Refer to “Note 13: Impairment charges” for further information. |
(2) | Net of impairment losses of $3.5 million recorded during the year ended December 31, 2016. Refer to “Note 13: Impairment charges” for further information. |
(in millions) | |||
2018 | $ | 53.8 | |
2019 | 48.0 | ||
2020 | 43.3 | ||
2021 | 39.3 | ||
2022 | 31.6 |
|
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Amounts drawn under credit facilities | $ | 9.1 | $ | 12.1 | |||
Bank overdrafts | 4.3 | 13.2 | |||||
Total | $ | 13.4 | $ | 25.3 |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Senior Term Loan Facilities: | |||||||
Term B Loan due 2024, variable interest rate of 4.07% and 4.25% at December 31, 2017 and December 31, 2016, respectively | $ | 2,277.8 | $ | 2,024.4 | |||
Euro Tranche Term Loan due 2022, variable interest rate of 4.25% at December 31, 2016 (Loan paid off on Nov 28, 2017) | — | 259.9 | |||||
Asset Backed Loan (ABL) Facilities: | |||||||
North American ABL Facility due 2020, variable interest rate of 5.00% and 4.25% at December 31, 2017 and December 31, 2016, respectively | 155.0 | 152.0 | |||||
North American ABL Term Loan due 2018, variable interest rate of 4.44% and 3.75% at December 31, 2017 and December 31, 2016, respectively | 16.7 | 83.3 | |||||
Senior Unsecured Notes: | |||||||
Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at December 31, 2017 and December 31, 2016 | 399.5 | 399.5 | |||||
Capital lease obligations | 60.9 | 63.4 | |||||
Total long-term debt before discount | $ | 2,909.9 | $ | 2,982.5 | |||
Less: unamortized debt issuance costs and discount on debt | (27.9 | ) | (28.5 | ) | |||
Total long-term debt | $ | 2,882.0 | $ | 2,954.0 | |||
Less: current maturities | (62.0 | ) | (109.0 | ) | |||
Total long-term debt, excluding current maturities | $ | 2,820.0 | $ | 2,845.0 |
(in millions) | |||
2018 | $ | 62.0 | |
2019 | 33.4 | ||
2020 | 188.0 | ||
2021 | 31.5 | ||
2022 | 29.5 | ||
Thereafter | 2,565.5 | ||
Total (1) | $ | 2,909.9 | |
(1) | See “Note 23: Subsequent events” in Item 8 of this Annual Report on Form 10-K for additional information. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Cash | $ | 313.6 | $ | 237.4 | |||
Trade accounts receivable, net | 881.0 | 790.6 | |||||
Inventories | 702.0 | 655.5 | |||||
Prepaid expenses and other current assets | 93.3 | 128.2 | |||||
Property, plant and equipment, net | 780.0 | 856.4 | |||||
Total | $ | 2,769.9 | $ | 2,668.1 |
|
Level 2 | Level 3 | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Financial current assets: | |||||||||||||||
Forward currency contracts | $ | 0.3 | $ | 0.5 | $ | — | $ | — | |||||||
Interest rate swap contracts | 1.2 | — | — | — | |||||||||||
Financial non-current assets: | |||||||||||||||
Interest rate swap contracts | 10.6 | 9.8 | — | — | |||||||||||
Financial current liabilities: | |||||||||||||||
Forward currency contracts | 0.4 | 0.3 | — | — | |||||||||||
Interest rate swap contracts | — | 5.6 | — | — | |||||||||||
Contingent consideration | — | — | — | 1.6 | |||||||||||
Financial non-current liabilities: | |||||||||||||||
Contingent consideration | — | — | 0.4 | 5.9 |
(in millions) | 2017 | 2016 | |||||
Fair value as of January 1 | $ | 7.5 | $ | 8.7 | |||
Additions | 0.4 | — | |||||
Fair value adjustments | (3.0 | ) | (0.7 | ) | |||
Foreign currency | 0.1 | (0.1 | ) | ||||
Payments | (3.7 | ) | (0.4 | ) | |||
Gain on settlement | (0.9 | ) | — | ||||
Fair value as of December 31 | $ | 0.4 | $ | 7.5 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||
Financial liabilities: | |||||||||||||||
Long-term debt including current portion (Level 2) | $ | 2,882.0 | $ | 2,939.7 | $ | 2,954.0 | $ | 3,019.1 |
|
(in millions) | Minimum rental commitments | ||
2018 | $ | 60.1 | |
2019 | 51.8 | ||
2020 | 42.0 | ||
2021 | 34.7 | ||
2022 | 31.9 | ||
Thereafter | 47.3 | ||
Total | $ | 267.8 |
(in millions) | 2017 | 2016 | |||||
Environmental liabilities at January 1 | $ | 95.8 | $ | 113.2 | |||
Revised obligation estimates | 12.3 | 5.5 | |||||
Environmental payments | (19.3 | ) | (22.5 | ) | |||
Foreign exchange | 0.4 | (0.4 | ) | ||||
Environmental liabilities at December 31 | $ | 89.2 | $ | 95.8 |
(in millions) | |||
2018 | $ | 29.1 | |
2019 | 13.4 | ||
2020 | 9.7 | ||
2021 | 8.3 | ||
2022 | 6.8 | ||
Thereafter | 26.8 | ||
Total | $ | 94.1 |
|
Year ended December 31, | ||||||||
(in millions) | 2017 | 2016 | 2015 | |||||
CD&R: | ||||||||
Sales to affiliate companies | 5.3 | 7.7 | 29.7 | |||||
Purchases from affiliate companies | 6.0 | 16.5 | 19.9 | |||||
Temasek: | ||||||||
Sales to affiliate companies | 10.1 | 14.4 | 19.8 | |||||
Purchases from affiliate companies | 0.7 | 10.1 | 0.1 | |||||
CVC (1): | ||||||||
Sales to affiliate companies | — | 0.5 | 1.9 | |||||
Purchases from affiliate companies | — | — | 8.8 | |||||
(1) | Sales and purchases related information for CVC is disclosed until August 31, 2016. |
December 31, | |||||||
(in millions) | 2017 | 2016 | |||||
Due from affiliates | $ | 1.0 | $ | 2.3 | |||
Due to affiliates | 0.2 | 2.1 |
|
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 4,657.1 | $ | 1,371.5 | $ | 1,821.2 | $ | 403.9 | $ | — | $ | 8,253.7 | |||||||||||
Inter-segment | 121.9 | 9.1 | 4.5 | 0.5 | (136.0 | ) | — | ||||||||||||||||
Total net sales | $ | 4,779.0 | $ | 1,380.6 | $ | 1,825.7 | $ | 404.4 | $ | (136.0 | ) | $ | 8,253.7 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 3,706.8 | 1,143.0 | 1,411.7 | 322.7 | (136.0 | ) | 6,448.2 | ||||||||||||||||
Gross profit | $ | 1,072.2 | $ | 237.6 | $ | 414.0 | $ | 81.7 | $ | — | $ | 1,805.5 | |||||||||||
Outbound freight and handling | 192.8 | 37.3 | 55.7 | 6.2 | — | 292.0 | |||||||||||||||||
Warehousing, selling and administrative | 528.3 | 85.0 | 220.2 | 46.8 | 29.5 | 909.8 | |||||||||||||||||
Adjusted EBITDA | $ | 351.1 | $ | 115.3 | $ | 138.1 | $ | 28.7 | $ | (29.5 | ) | $ | 603.7 | ||||||||||
Other operating expenses, net | 49.5 | ||||||||||||||||||||||
Depreciation | 135.0 | ||||||||||||||||||||||
Amortization | 65.4 | ||||||||||||||||||||||
Interest expense, net | 148.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | 3.8 | ||||||||||||||||||||||
Other expense, net | 33.2 | ||||||||||||||||||||||
Income tax expense | 49.0 | ||||||||||||||||||||||
Net income | $ | 119.8 | |||||||||||||||||||||
Total assets | $ | 3,526.8 | $ | 2,091.3 | $ | 935.1 | $ | 237.5 | $ | (1,058.0 | ) | $ | 5,732.7 | ||||||||||
Property, plant and equipment, net | 636.1 | 147.7 | 158.0 | 33.5 | 27.7 | 1,003.0 | |||||||||||||||||
Capital expenditures | 47.5 | 17.1 | 14.6 | 2.4 | 1.1 | 82.7 |
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 4,706.7 | $ | 1,261.0 | $ | 1,704.2 | $ | 401.8 | $ | — | $ | 8,073.7 | |||||||||||
Inter-segment | 104.4 | 8.3 | 4.5 | — | (117.2 | ) | — | ||||||||||||||||
Total net sales | $ | 4,811.1 | $ | 1,269.3 | $ | 1,708.7 | $ | 401.8 | $ | (117.2 | ) | $ | 8,073.7 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 3,769.7 | 1,047.4 | 1,324.6 | 322.1 | (117.2 | ) | 6,346.6 | ||||||||||||||||
Gross profit | $ | 1,041.4 | $ | 221.9 | $ | 384.1 | $ | 79.7 | $ | — | $ | 1,727.1 | |||||||||||
Outbound freight and handling | 191.5 | 34.1 | 54.9 | 6.1 | — | 286.6 | |||||||||||||||||
Warehousing, selling and administrative | 517.5 | 83.8 | 210.5 | 46.8 | 19.2 | 877.8 | |||||||||||||||||
Adjusted EBITDA | $ | 332.4 | $ | 104.0 | $ | 118.7 | $ | 26.8 | $ | (19.2 | ) | $ | 562.7 | ||||||||||
Other operating expenses, net | 104.5 | ||||||||||||||||||||||
Depreciation | 152.3 | ||||||||||||||||||||||
Amortization | 85.6 | ||||||||||||||||||||||
Impairment charges | 133.9 | ||||||||||||||||||||||
Interest expense, net | 159.9 | ||||||||||||||||||||||
Other expense, net | 6.1 | ||||||||||||||||||||||
Income tax benefit | (11.2 | ) | |||||||||||||||||||||
Net loss | $ | (68.4 | ) | ||||||||||||||||||||
Total assets | $ | 3,676.8 | $ | 1,856.2 | $ | 857.4 | $ | 211.3 | $ | (1,211.8 | ) | $ | 5,389.9 | ||||||||||
Property, plant and equipment, net | 671.1 | 148.3 | 144.8 | 18.2 | 37.1 | 1,019.5 | |||||||||||||||||
Capital expenditures | 56.5 | 17.4 | 12.2 | 2.8 | 1.2 | 90.1 |
(in millions) | USA | Canada | EMEA | Rest of World | Other/ Eliminations | Consolidated | |||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
External customers | $ | 5,351.5 | $ | 1,376.6 | $ | 1,780.1 | $ | 473.6 | $ | — | $ | 8,981.8 | |||||||||||
Inter-segment | 112.7 | 8.6 | 4.0 | 0.1 | (125.4 | ) | — | ||||||||||||||||
Total net sales | $ | 5,464.2 | $ | 1,385.2 | $ | 1,784.1 | $ | 473.7 | $ | (125.4 | ) | $ | 8,981.8 | ||||||||||
Cost of goods sold (exclusive of depreciation) | 4,365.9 | 1,161.0 | 1,398.6 | 382.6 | (125.4 | ) | 7,182.7 | ||||||||||||||||
Gross profit | $ | 1,098.3 | $ | 224.2 | $ | 385.5 | $ | 91.1 | $ | — | $ | 1,799.1 | |||||||||||
Outbound freight and handling | 216.9 | 39.3 | 59.6 | 8.8 | — | 324.6 | |||||||||||||||||
Warehousing, selling and administrative | 492.6 | 87.8 | 226.0 | 54.1 | 13.9 | 874.4 | |||||||||||||||||
Adjusted EBITDA | $ | 388.8 | $ | 97.1 | $ | 99.9 | $ | 28.2 | $ | (13.9 | ) | $ | 600.1 | ||||||||||
Other operating expenses, net | 106.1 | ||||||||||||||||||||||
Depreciation | 136.5 | ||||||||||||||||||||||
Amortization | 88.5 | ||||||||||||||||||||||
Interest expense, net | 207.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | 12.1 | ||||||||||||||||||||||
Other expense, net | 23.2 | ||||||||||||||||||||||
Income tax expense | 10.2 | ||||||||||||||||||||||
Net income | $ | 16.5 | |||||||||||||||||||||
Total assets | $ | 3,962.0 | $ | 1,709.7 | $ | 947.2 | $ | 233.6 | $ | (1,240.1 | ) | $ | 5,612.4 | ||||||||||
Property, plant and equipment, net | 714.9 | 133.3 | 167.7 | 20.3 | 46.3 | 1,082.5 | |||||||||||||||||
Capital expenditures | 106.8 | 16.1 | 17.2 | 3.4 | 1.5 | 145.0 | |||||||||||||||||
|
(in millions, except per share data) | March 31 | June 30 | September 30 | December 31 (1) | |||||||||||
Net sales | $ | 1,998.8 | $ | 2,247.0 | $ | 2,048.7 | $ | 1,959.2 | |||||||
Gross profit | 439.4 | 466.4 | 454.8 | 444.9 | |||||||||||
Net income | 22.6 | 31.3 | 38.9 | 27.0 | |||||||||||
Income per share: | |||||||||||||||
Basic and diluted | $ | 0.16 | $ | 0.22 | $ | 0.28 | $ | 0.19 | |||||||
Shares used in computation of income (loss) per share: | |||||||||||||||
Basic | 139.4 | 140.1 | 140.4 | 140.7 | |||||||||||
Diluted | 140.8 | 141.3 | 141.4 | 141.8 | |||||||||||
(1) | Included in the fourth quarter of 2017 was a loss of $3.8 million relating to the annual mark to market adjustment on the defined benefit pension and postretirement plans. Refer to “Note 8: Employee benefit plans” for further information. |
(in millions, except per share data) | March 31 | June 30 | September 30 (1) | December 31 (2) | |||||||||||
Net sales | $ | 1,999.0 | $ | 2,262.5 | $ | 1,999.7 | $ | 1,812.5 | |||||||
Gross profit | 430.3 | 445.4 | 438.1 | 413.3 | |||||||||||
Net income (loss) | 14.0 | 39.8 | (63.0 | ) | (59.2 | ) | |||||||||
Income (loss) per share: | |||||||||||||||
Basic and diluted | $ | 0.10 | $ | 0.29 | $ | (0.46 | ) | $ | (0.43 | ) | |||||
Shares used in computation of income (loss) per share: | |||||||||||||||
Basic | 137.6 | 137.6 | 137.7 | 138.1 | |||||||||||
Diluted | 137.8 | 138.1 | 137.7 | 138.1 | |||||||||||
(1) | Included in the third quarter of 2016 was an impairment charge of $133.9 million. Refer to “Note 13: Impairment charges” for further information. |
(2) | Included in the fourth quarter of 2016 was a loss of $68.6 million relating to the annual mark to market adjustment on the defined benefit pension and postretirement plans. Refer to “Note 8: Employee benefit plans” for further information. |
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