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Useful lives | |
Patents | 3-20 years |
Engineering drawings | 3-15 years |
Customer relationships | 10 years |
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 20 |
Computer hardware and software | 2 - 10 |
Rental cranes | 5 - 15 |
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Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales | $ | 219.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Cost of sales | 141.5 | 1,065.6 | 1,070.7 | |||||||||
Engineering, selling and administrative expenses | 48.3 | 271.3 | 284.2 | |||||||||
Amortization of intangible assets | 5.2 | 31.4 | 31.8 | |||||||||
Asset impairment expense | — | 9.0 | 1.1 | |||||||||
Restructuring expense | 0.3 | 4.6 | 2.5 | |||||||||
Separation expense | 27.7 | 39.4 | — | |||||||||
Other | — | 0.9 | 0.4 | |||||||||
Total operating costs and expenses | 223.0 | 1,422.2 | 1,390.7 | |||||||||
Operating (loss) income | (3.4 | ) | 147.9 | 190.6 | ||||||||
Other (expense) income | (2.2 | ) | 23.4 | (1.7 | ) | |||||||
(Loss) income from discontinued operations before income taxes | (5.6 | ) | 171.3 | 188.9 | ||||||||
Provision for taxes on income | 0.6 | 35.9 | 26.5 | |||||||||
(Loss) income from discontinued operations, net of income taxes (1) | $ | (6.2 | ) | $ | 135.4 | $ | 162.4 |
(1) | For the year ended December 31, 2016, 2015 and 2014, the Company recorded net (losses) income of $(1.0) million, $0.0 million and $(1.0) million, respectively, from various other businesses disposed of prior to 2014. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities. |
Carrying amounts of major classes of assets and liabilities included as part of discontinued operations related to MFS | |||||
(in millions) | December 31, 2015 | ||||
Assets | |||||
Cash and cash equivalents | $ | 31.9 | |||
Restricted cash | 0.6 | ||||
Accounts receivable - net | 63.8 | ||||
Inventories - net | 145.9 | ||||
Other current assets | 12.0 | ||||
Property, plant and equipment - net | 116.3 | ||||
Goodwill | 845.8 | ||||
Other intangible assets - net | 519.5 | ||||
Other non-current assets | 16.2 | ||||
Long-term assets held for sale | 3.7 | ||||
Total major classes of assets of discontinued operations | $ | 1,755.7 | |||
Liabilities | |||||
Accounts payable and accrued expenses | $ | 271.6 | |||
Current portion of long-term debt | 0.4 | ||||
Other current liabilities | 40.0 | ||||
Long-term debt | 2.3 | ||||
Deferred income taxes | 167.9 | ||||
Pension obligation | 29.3 | ||||
Postretirement health and other benefit obligations | 3.0 | ||||
Other non-current liabilities | 17.3 | ||||
Total major classes of liabilities of discontinued operations | $ | 531.8 |
|
Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current Assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.2 | $ | — | $ | 0.2 | ||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total current assets at fair value | $ | — | $ | 0.4 | $ | — | $ | 0.4 | ||||||||
Current Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Total current liabilities at fair value | $ | — | $ | 1.0 | $ | — | $ | 1.0 |
Fair Value as of December 31, 2015 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current Assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||
Total current assets at fair value | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||
Current Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 0.7 | — | 0.7 | ||||||||||||
Interest rate swap contracts: Float-to-fixed | — | 1.7 | — | 1.7 | ||||||||||||
Total current liabilities at fair value | $ | — | $ | 3.5 | $ | — | $ | 3.5 | ||||||||
Non-current Liabilities: | ||||||||||||||||
Interest rate swap contracts: Float-to-fixed | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Foreign currency exchange contract | — | 0.1 | — | 0.1 | ||||||||||||
Total non-current liabilities at fair value | $ | — | $ | 0.7 | $ | — | $ | 0.7 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or | |
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or | ||
Inputs other than quoted prices that are observable for the asset or liability | ||
Level 3 | Unobservable inputs for the asset or liability |
|
Designated Hedging Instruments | ||||||
Commodity | Units Hedged | Unit | Type | |||
Natural Gas | 26,807 | MMBtu | Cash Flow | |||
Steel | 3,190 | Short Tons | Cash Flow |
Designated Hedging Instruments | |||||
Currency | Units Hedged | Type | |||
Australian Dollar | 611,143 | Cash Flow | |||
European Euro | 9,834,120 | Cash Flow | |||
South Korean Won | 218,408,100 | Cash Flow | |||
Singapore Dollar | 900,000 | Cash Flow | |||
United States Dollar | 2,311,697 | Cash Flow | |||
Japanese Yen | 65,502,800 | Cash Flow |
Non Designated Hedging Instruments | |||||||
Currency | Units Hedged | Recognized Location | Purpose | ||||
European Euro | 10,502,111 | Other (expense) income, net | Accounts payable and receivable settlement | ||||
United States Dollar | 15,318,000 | Other (expense) income, net | Accounts payable and receivable settlement |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.1 | |
Commodity contracts | Other current assets | 0.2 | ||
Total derivatives designated as hedging instruments | $ | 0.3 |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.1 | |
Total derivatives NOT designated as hedging instruments | $ | 0.1 | ||
Total asset derivatives | $ | 0.4 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.9 | |
Total derivatives designated as hedging instruments | $ | 0.9 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.1 | |
Total derivatives NOT designated as hedging instruments | $ | 0.1 | ||
Total liability derivatives | $ | 1.0 |
Designated Hedging Instruments | ||||||
Commodity | Units Hedged | Unit | Type | |||
Natural Gas | 175,617 | MMBtu | Cash Flow | |||
Steel | 4,811 | Short Tons | Cash Flow |
Designated Hedging Instruments | ||||
Currency | Units Hedged | Type | ||
South Korean Won | 1,533,257,930 | Cash Flow | ||
Singapore Dollar | 1,800,000 | Cash Flow | ||
Japanese Yen | 245,915,700 | Cash Flow |
Non Designated Hedging Instruments | ||||||
Currency | Units Hedged | Recognized Location | Purpose | |||
European Euro | 20,490,320 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
United States Dollar | 17,321,106 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
Japanese Yen | 70,518,463 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
Singapore Dollar | 500,000 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
British Pound Sterling | 4,840,238 | Other (expense) income, net | Accounts Payable and Receivable Settlement |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.3 | |
Total derivatives designated as hedging instruments | $ | 0.3 |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | — | |
Total derivatives NOT designated as hedging instruments | $ | — | ||
Total asset derivatives | $ | 0.3 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.2 | |
Commodity contracts | Accounts payable and accrued expenses | 0.7 | ||
Interest rate swap contracts: Float-to-fixed | Accounts payable and accrued expenses | 1.7 | ||
Foreign exchange contracts | Other non-current liabilities | 0.1 | ||
Interest rate swap contracts: Float-to-fixed | Other non-current liabilities | 0.6 | ||
Total derivatives designated as hedging instruments | $ | 3.3 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.9 | |
Total derivatives NOT designated as hedging instruments | $ | 0.9 | ||
Total liability derivatives | $ | 4.2 |
|
(in millions) | 2016 | 2015 | ||||||
Raw materials | $ | 109.3 | $ | 155.3 | ||||
Work-in-process | 88.4 | 116.3 | ||||||
Finished goods | 270.9 | 251.7 | ||||||
Total inventories — gross | 468.6 | 523.3 | ||||||
Excess and obsolete inventory reserve | (39.6 | ) | (34.1 | ) | ||||
Net inventories | $ | 429.0 | $ | 489.2 |
For the years ended December 31, | 2015 | 2014 | ||||||||||||||||||||||
Impact of Change | Impact of Change | |||||||||||||||||||||||
In millions (except per share data) | Historical | to FIFO | As adjusted | Historical | to FIFO | As adjusted | ||||||||||||||||||
Cost of sales | $ | 1,537.0 | $ | (3.5 | ) | $ | 1,533.5 | $ | 1,837.6 | $ | 0.4 | $ | 1,838.0 | |||||||||||
Operating (loss) income | (15.9 | ) | 3.5 | (12.4 | ) | 107.5 | (0.4 | ) | 107.1 | |||||||||||||||
Loss from continuing operations before taxes | (114.5 | ) | 3.5 | (111.0 | ) | (20.0 | ) | (0.4 | ) | (20.4 | ) | |||||||||||||
Benefit for income taxes | (42.6 | ) | 1.5 | (41.1 | ) | (18.0 | ) | 0.2 | (17.8 | ) | ||||||||||||||
Loss from continuing operations | (71.9 | ) | 2.0 | (69.9 | ) | (2.0 | ) | (0.6 | ) | (2.6 | ) | |||||||||||||
Net (loss) income | 63.5 | 2.0 | 65.5 | 148.4 | (0.6 | ) | 147.8 | |||||||||||||||||
Net (loss) income attributable to Manitowoc common shareholders | 63.5 | 2.0 | 65.5 | 144.5 | (0.6 | ) | 143.9 | |||||||||||||||||
Basic (loss) income per share from continuing operations | (0.53 | ) | 0.02 | (0.51 | ) | (0.04 | ) | (0.01 | ) | (0.05 | ) | |||||||||||||
Diluted (loss) income per share from continuing operations | (0.53 | ) | 0.02 | (0.51 | ) | (0.04 | ) | (0.01 | ) | (0.05 | ) |
Impact of Change | ||||||||||||
In millions | Historical | to FIFO | As adjusted | |||||||||
Inventories | $ | 452.6 | $ | 36.6 | $ | 489.2 | ||||||
Other non-current assets | 191.2 | (13.8 | ) | 177.4 | ||||||||
Retained earnings | 539.5 | 22.8 | 562.3 |
For the years ended December 31, | 2015 | 2014 | ||||||||||||||||||||||
Impact of Change | Impact of Change | |||||||||||||||||||||||
In millions | Historical | to FIFO | As adjusted | Historical | to FIFO | As adjusted | ||||||||||||||||||
Net (loss) income | $ | 63.5 | $ | 2.0 | $ | 65.5 | $ | 148.4 | $ | (0.6 | ) | $ | 147.8 | |||||||||||
Deferred income taxes | (5.9 | ) | 1.5 | (4.4 | ) | 11.3 | 0.2 | 11.5 | ||||||||||||||||
Change in inventories, net | (3.7 | ) | (3.5 | ) | (7.2 | ) | 32.2 | 0.4 | 32.6 |
|
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(in millions) | 2016 | 2015 | ||||||
Land | $ | 23.6 | $ | 23.7 | ||||
Building and improvements | 225.0 | 218.7 | ||||||
Machinery, equipment and tooling | 292.6 | 274.4 | ||||||
Furniture and fixtures | 16.7 | 16.6 | ||||||
Computer hardware and software | 126.0 | 132.4 | ||||||
Rental cranes | 89.0 | 99.5 | ||||||
Construction in progress | 16.7 | 81.0 | ||||||
Total cost | 789.6 | 846.3 | ||||||
Less accumulated depreciation | (480.8 | ) | (435.6 | ) | ||||
Property, plant and equipment-net | $ | 308.8 | $ | 410.7 |
|
(in millions) | 2016 | 2015 | |||||||
Gross balance as of January 1, | $ | 306.5 | $ | 325.3 | |||||
Foreign currency impact | (6.9 | ) | (18.8 | ) | |||||
Net balance as of December 31, | $ | 299.6 | $ | 306.5 |
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 92.4 | $ | — | $ | 92.4 | $ | 94.2 | $ | — | $ | 94.2 | ||||||||||||
Customer relationships | 10.3 | (7.8 | ) | 2.5 | 10.4 | (7.1 | ) | 3.3 | ||||||||||||||||
Patents | 28.5 | (27.4 | ) | 1.1 | 29.1 | (26.6 | ) | 2.5 | ||||||||||||||||
Engineering drawings | 10.0 | (9.9 | ) | 0.1 | 10.2 | (9.3 | ) | 0.9 | ||||||||||||||||
Distribution network | 18.0 | — | 18.0 | 18.4 | — | 18.4 | ||||||||||||||||||
Other intangibles | 0.2 | (0.2 | ) | — | 0.3 | (0.3 | ) | — | ||||||||||||||||
$ | 159.4 | $ | (45.3 | ) | $ | 114.1 | $ | 162.6 | $ | (43.3 | ) | $ | 119.3 |
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(in millions) | 2016 | 2015 | ||||||
Trade accounts payable | $ | 157.7 | $ | 268.5 | ||||
Employee related expenses | 28.1 | 35.0 | ||||||
Accrued vacation | 21.8 | 25.1 | ||||||
Miscellaneous accrued expenses | 113.6 | 107.7 | ||||||
$ | 321.2 | $ | 436.3 |
|
(in millions) | 2016 | 2015 | ||||||
Term loan A | $ | — | $ | 312.8 | ||||
Term loan B | — | 119.5 | ||||||
Senior notes due 2020 | — | 613.1 | ||||||
Senior notes due 2022 | — | 299.2 | ||||||
Senior notes due 2021 | 249.8 | — | ||||||
Other | 35.7 | 66.3 | ||||||
Deferred financing costs | (4.0 | ) | (13.3 | ) | ||||
Total debt | 281.5 | 1,397.6 | ||||||
Less current portion and short-term borrowings | (12.4 | ) | (67.2 | ) | ||||
Long-term debt | $ | 269.1 | $ | 1,330.4 |
Year | ||||
2017 | $ | 12.4 | ||
2018 | 5.8 | |||
2019 | 5.7 | |||
2020 | 3.8 | |||
2021 | 263.3 | |||
Thereafter | 0.7 | |||
Total | $ | 291.7 |
• | The table of scheduled maturities above does not agree to the Company’s total debt as of December 31, 2016 as shown on the Consolidated Balance Sheet due to $10.2 million of OID. |
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(in millions) | 2016 | 2015 | 2014 | |||||||||
(Loss) income from continuing operations before income taxes: | ||||||||||||
Domestic | $ | (293.0 | ) | $ | (184.0 | ) | $ | (93.3 | ) | |||
Foreign | 24.9 | 73.0 | 72.9 | |||||||||
Total | $ | (268.1 | ) | $ | (111.0 | ) | $ | (20.4 | ) |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Current: | ||||||||||||
Federal and state | $ | (13.0 | ) | $ | (48.6 | ) | $ | (41.0 | ) | |||
Foreign | 12.1 | 11.9 | 11.7 | |||||||||
Total current | $ | (0.9 | ) | $ | (36.7 | ) | $ | (29.3 | ) | |||
Deferred: | ||||||||||||
Federal and state | $ | 98.7 | $ | (8.3 | ) | $ | 16.7 | |||||
Foreign | 2.7 | 3.9 | (5.2 | ) | ||||||||
Total deferred | $ | 101.4 | $ | (4.4 | ) | $ | 11.5 | |||||
Provision (benefit) for taxes on income | $ | 100.5 | $ | (41.1 | ) | $ | (17.8 | ) |
2016 | 2015 | 2014 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income provision (benefit) | 2.3 | 5.7 | 16.5 | ||||||
Manufacturing & research incentives | 2.0 | (0.4 | ) | 6.1 | |||||
Taxes on foreign income which differ from the U.S. statutory rate | 3.0 | 3.2 | 44.1 | ||||||
Adjustments for unrecognized tax benefits | (4.0 | ) | 1.5 | 51.5 | |||||
Adjustments for valuation allowances | (69.8 | ) | (8.5 | ) | (25.0 | ) | |||
Spin-off tax costs | (1.3 | ) | (1.8 | ) | — | ||||
Change in assertion over permanently reinvest foreign earnings | — | — | (26.4 | ) | |||||
Other items | (4.7 | ) | 2.3 | (14.5 | ) | ||||
Effective tax rate | (37.5 | )% | 37.0 | % | 87.3 | % |
(in millions) | 2016 | 2015 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 14.2 | $ | 16.2 | ||||
Accounts receivable | (4.6 | ) | (6.9 | ) | ||||
Property, plant and equipment | 19.0 | (10.6 | ) | |||||
Intangible assets | (35.9 | ) | (37.8 | ) | ||||
Deferred employee benefits | 71.8 | 77.2 | ||||||
Product warranty reserves | 6.1 | 6.9 | ||||||
Product liability reserves | 7.8 | 7.7 | ||||||
Tax credits | 4.9 | 0.4 | ||||||
Loss carryforwards | 145.4 | 102.1 | ||||||
Deferred revenue | 10.8 | 10.2 | ||||||
Other | (1.7 | ) | (8.1 | ) | ||||
Total non-current deferred tax liabilities | 237.8 | 157.3 | ||||||
Less valuation allowance | (269.6 | ) | (86.5 | ) | ||||
Net deferred tax liabilities, non-current | $ | (31.8 | ) | $ | 70.8 |
(in millions) | 2016 | 2015 | ||||||
Long-term income tax assets, included in other non-current assets | $ | 4.8 | $ | 96.4 | ||||
Long-term deferred income tax liability | (36.6 | ) | (25.6 | ) | ||||
Net deferred income tax liability | $ | (31.8 | ) | $ | 70.8 |
Jurisdiction | Open Years | |
U.S. Federal | 2012 — 2016 | |
China | 2007 — 2016 | |
France | 2013 — 2016 | |
Germany | 2011 — 2016 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Balance at beginning of year | $ | 19.4 | $ | 20.8 | $ | 29.5 | ||||||
Additions based on tax positions related to the current year | 1.1 | 1.3 | 1.5 | |||||||||
Additions for tax positions of prior years | 5.0 | 0.2 | 3.2 | |||||||||
Reductions for tax positions of prior years | (9.3 | ) | — | (2.7 | ) | |||||||
Reductions based on settlements with taxing authorities | — | — | (5.0 | ) | ||||||||
Reductions for lapse of statute | (0.4 | ) | (2.9 | ) | (5.7 | ) | ||||||
Balance at end of year | $ | 15.8 | $ | 19.4 | $ | 20.8 |
|
(in millions) | 2016 | 2015 | ||||||
Foreign currency translation | $ | (110.8 | ) | $ | (121.4 | ) | ||
Derivative instrument fair market value, net of income taxes of $(0.3) and $(2.2) | (0.3 | ) | (3.8 | ) | ||||
Employee pension and postretirement benefit adjustments, net of income taxes of $(19.0) and $(35.2) | (51.8 | ) | (82.6 | ) | ||||
$ | (162.9 | ) | $ | (207.8 | ) |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2014 | $ | (6.3 | ) | $ | (95.0 | ) | $ | (29.2 | ) | $ | (130.5 | ) | ||||
Other comprehensive loss before reclassifications | 14.0 | 17.9 | (92.2 | ) | (60.3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (11.5 | ) | (5.5 | ) | — | (17.0 | ) | |||||||||
Net current period other comprehensive income | 2.5 | 12.4 | (92.2 | ) | (77.3 | ) | ||||||||||
Balance at December 31, 2015 | (3.8 | ) | (82.6 | ) | (121.4 | ) | (207.8 | ) | ||||||||
Other comprehensive loss before reclassifications | (2.9 | ) | (8.6 | ) | (20.4 | ) | (31.9 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 4.3 | 4.5 | — | 8.8 | ||||||||||||
Net current period other comprehensive loss | 1.4 | (4.1 | ) | (20.4 | ) | (23.1 | ) | |||||||||
Distribution of MFS | 2.1 | 34.9 | 31.0 | 68.0 | ||||||||||||
Balance at December 31, 2016 | $ | (0.3 | ) | $ | (51.8 | ) | $ | (110.8 | ) | $ | (162.9 | ) |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (0.9 | ) | Cost of sales | ||
Commodity contracts | (0.2 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (4.3 | ) | Interest expense | |||
(5.4 | ) | Total before tax | ||||
1.1 | Tax benefit | |||||
$ | (4.3 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (4.6 | ) | (a) | ||
Amortization of prior service cost | (0.1 | ) | (a) | |||
(4.7 | ) | Total before tax | ||||
0.2 | Tax benefit | |||||
$ | (4.5 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (8.8 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (11.7 | ) | Cost of sales | ||
Commodity contracts | (4.0 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (2.6 | ) | Interest expense | |||
(18.3 | ) | Total before tax | ||||
6.8 | Tax expense | |||||
$ | (11.5 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (7.5 | ) | (a) | ||
Amortization of prior service cost | (0.1 | ) | (a) | |||
(7.6 | ) | Total before tax | ||||
2.1 | Tax benefit | |||||
$ | (5.5 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (17.0 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (2.2 | ) | Cost of sales | ||
Commodity contracts | (0.1 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (1.8 | ) | Interest expense | |||
(4.1 | ) | Total before tax | ||||
1.5 | Tax expense | |||||
$ | (2.6 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (4.3 | ) | (a) | ||
Amortization of prior service cost | 0.2 | (a) | ||||
(4.1 | ) | Total before tax | ||||
1.0 | Tax benefit | |||||
$ | (3.1 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (5.7 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
|
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2015 | 5.6 | $ | 18.23 | ||||||||
Granted | 0.7 | 21.02 | |||||||||
Exercised | (0.5 | ) | 9.63 | ||||||||
Cancelled | (0.3 | ) | 23.70 | ||||||||
Options outstanding as of December 31, 2015 | 5.5 | 19.04 | |||||||||
Granted | 1.8 | 4.30 | |||||||||
Exercised | (2.9 | ) | 3.27 | ||||||||
Forfeited | (0.3 | ) | 4.21 | ||||||||
Cancelled | (0.2 | ) | 4.32 | ||||||||
Options outstanding as of December 31, 2016 | 3.9 | $ | 4.44 | $ | 7.5 | ||||||
Options exercisable as of: | |||||||||||
December 31, 2016 | 2.0 | $ | 4.55 | $ | 3.9 |
Outstanding | Weighted Average Remaining Contractual | Weighted Average | Exercisable | Weighted Average | ||||||||||||
Range of Exercise Price per Share | Options | Life (Years) | Exercise Price | Options | Exercise Price | |||||||||||
$0.90 - $6.00 | 3.2 | 7.0 | $ | 3.89 | 1.3 | $ | 3.25 | |||||||||
$6.01 - $7.00 | 0.4 | 0.3 | 6.02 | 0.4 | 6.02 | |||||||||||
$7.01 - $9.00 | 0.3 | 1.0 | 7.90 | 0.3 | 7.90 | |||||||||||
$9.01 - $9.76 | — | 0.9 | 9.44 | — | 9.44 | |||||||||||
3.9 | 3.1 | $ | 4.44 | 2.0 | $ | 4.55 |
2016 | 2015 | 2014 | |||||||
Expected Life (years) | 6.5 | 6.0 | 6.0 | ||||||
Risk-free Interest rate | 1.6 | % | 1.8 | % | 1.9 | % | |||
Expected volatility | 45.0 | % | 56.0 | % | 55.0 | % | |||
Expected dividend yield | — | % | 0.3 | % | 0.4 | % |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.4 | $ | 21.73 | ||||
Granted | — | — | |||||
Vested | (0.2 | ) | 21.73 | ||||
Forfeited | — | 21.73 | |||||
Unvested as of December 31, 2016 | 0.2 | $ | 21.73 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.7 | $ | 25.53 | ||||
Granted | 1.4 | 5.36 | |||||
Vested | (0.2 | ) | 22.43 | ||||
Forfeited | (0.2 | ) | 11.07 | ||||
Unvested as of December 31, 2016 | 1.7 | $ | 11.02 |
|
Net Sales | Long-Lived Assets | ||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | ||||||||||||||
United States | $ | 641.3 | $ | 784.5 | $ | 951.3 | $ | 152.9 | $ | 258.6 | |||||||||
Other North America | 61.9 | 87.2 | 156.9 | — | — | ||||||||||||||
Europe | 520.7 | 418.9 | 554.3 | 129.9 | 135.3 | ||||||||||||||
Asia | 159.1 | 184.8 | 221.2 | 50.5 | 86.3 | ||||||||||||||
Middle East | 119.6 | 193.8 | 212.7 | 1.4 | 1.5 | ||||||||||||||
Central and South America | 24.9 | 63.7 | 93.1 | 10.8 | 11.8 | ||||||||||||||
Africa | 39.7 | 80.0 | 54.5 | — | — | ||||||||||||||
South Pacific and Caribbean | 8.2 | 5.9 | 7.3 | — | 3.8 | ||||||||||||||
Australia | 37.7 | 46.9 | 53.9 | 0.4 | 0.1 | ||||||||||||||
Total | $ | 1,613.1 | $ | 1,865.7 | $ | 2,305.2 | $ | 345.9 | $ | 497.4 |
|
|
(in millions) | 2016 | 2015 | ||||||
Balance at beginning of period | $ | 32.4 | $ | 36.1 | ||||
Accruals for warranties issued during the period | 20.4 | 22.4 | ||||||
Settlements made (in cash or in kind) during the period | (23.7 | ) | (24.4 | ) | ||||
Currency translation | (0.5 | ) | (1.7 | ) | ||||
Balance at end of period | $ | 28.6 | $ | 32.4 |
|
Restructuring Reserve Balance as of December 31, 2015 | Restructuring Expenses | Use of Reserve | Reserve Reclassifications | Restructuring Reserve Balance as of December 31, 2016 | |||||||||||||||
Total | $ | 6.5 | $ | 23.4 | $ | 20.8 | $ | 0.9 | $ | 8.2 |
|
US Pension Plans | Non-US Pension Plans | Postretirement Health and Other | ||||||||||||||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
Service cost - benefits earned during the year | $ | — | $ | — | $ | — | $ | 1.7 | $ | 2.6 | $ | 2.4 | $ | 0.3 | $ | 0.4 | $ | 0.4 | ||||||||||||||||||
Interest cost of projected benefit obligation | 6.8 | 9.4 | 10.3 | 2.5 | 8.9 | 11.3 | 1.7 | 2.0 | 2.1 | |||||||||||||||||||||||||||
Expected return on assets | (5.7 | ) | (9.0 | ) | (9.5 | ) | (1.8 | ) | (7.4 | ) | (9.4 | ) | — | — | — | |||||||||||||||||||||
Amortization of prior service cost | — | — | — | 0.1 | 0.1 | 0.1 | — | — | (0.3 | ) | ||||||||||||||||||||||||||
Amortization of actuarial net loss (gain) | 3.6 | 5.1 | 2.9 | 1.0 | 2.3 | 1.5 | — | 0.1 | (0.1 | ) | ||||||||||||||||||||||||||
Curtailment gain recognized | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | 4.7 | $ | 5.5 | $ | 3.7 | $ | 3.5 | $ | 6.5 | $ | 5.9 | $ | 2.0 | $ | 2.5 | $ | 2.1 | ||||||||||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 4.1 | % | 4.9 | % | 2.9 | % | 3.3 | % | 4.3 | % | 4.2 | % | 3.7 | % | 4.5 | % | ||||||||||||||||||
Expected return on plan assets | 5.5 | % | 5.8 | % | 6.0 | % | 4.0 | % | 3.6 | % | 4.5 | % | N/A | N/A | N/A | |||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.4 | % | 3.9 | % | 4.3 | % | N/A | 1.5 | % | 3.0 | % |
US Pension Plans | Non-US Pension Plans | Postretirement Medical and Other | ||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 218.5 | $ | 235.9 | $ | 252.5 | $ | 279.5 | $ | 51.8 | $ | 57.0 | ||||||||||||
Distribution of MFS | (62.4 | ) | — | (170.4 | ) | — | (10.1 | ) | — | |||||||||||||||
Service cost | — | — | 1.7 | 2.6 | 0.3 | 0.4 | ||||||||||||||||||
Interest cost | 6.8 | 9.4 | 2.5 | 8.9 | 1.7 | 2.0 | ||||||||||||||||||
Participant contributions | — | — | — | 0.1 | 1.9 | 2.4 | ||||||||||||||||||
Medicare subsidies received | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Plan settlements | — | — | — | — | — | — | ||||||||||||||||||
Net transfer out | — | — | — | (0.3 | ) | — | — | |||||||||||||||||
Actuarial (gain) loss | 0.9 | (15.2 | ) | 11.0 | (9.7 | ) | 1.8 | (2.0 | ) | |||||||||||||||
Currency translation adjustment | — | — | (9.9 | ) | (15.4 | ) | — | (0.2 | ) | |||||||||||||||
Benefits paid | (8.2 | ) | (11.6 | ) | (4.6 | ) | (13.2 | ) | (6.0 | ) | (8.0 | ) | ||||||||||||
Benefit obligation, end of year | $ | 155.6 | $ | 218.5 | $ | 82.8 | $ | 252.5 | $ | 41.6 | $ | 51.8 | ||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 143.9 | $ | 160.0 | $ | 196.9 | $ | 214.0 | $ | — | $ | — | ||||||||||||
Distribution of MFS | (34.1 | ) | — | (147.8 | ) | — | — | — | ||||||||||||||||
Actual return on plan assets | 6.4 | (5.8 | ) | 2.7 | 1.5 | — | — | |||||||||||||||||
Employer contributions | 0.6 | 1.3 | 2.2 | 5.1 | 3.9 | 5.4 | ||||||||||||||||||
Participant contributions | — | — | — | 0.1 | 1.9 | 2.4 | ||||||||||||||||||
Medicare subsidies received | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Currency translation adjustment | — | — | (7.6 | ) | (10.3 | ) | — | — | ||||||||||||||||
Net transfer out | — | — | — | (0.3 | ) | — | — | |||||||||||||||||
Benefits paid | (8.2 | ) | (11.6 | ) | (4.6 | ) | (13.2 | ) | (6.0 | ) | (8.0 | ) | ||||||||||||
Fair value of plan assets, end of year | 108.6 | 143.9 | 41.8 | 196.9 | — | — | ||||||||||||||||||
Funded status | $ | (47.0 | ) | $ | (74.6 | ) | $ | (41.0 | ) | $ | (55.6 | ) | $ | (41.6 | ) | $ | (51.8 | ) | ||||||
Amounts recognized in the Consolidated Balance sheet at December 31 | ||||||||||||||||||||||||
Pension asset | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Pension obligation | (47.0 | ) | (74.6 | ) | (41.0 | ) | (55.6 | ) | — | — | ||||||||||||||
Postretirement medical and other benefit obligations | — | — | — | — | (41.6 | ) | (51.8 | ) | ||||||||||||||||
Net amount recognized | $ | (47.0 | ) | $ | (74.6 | ) | $ | (41.0 | ) | $ | (55.6 | ) | $ | (41.6 | ) | $ | (51.8 | ) | ||||||
Weighted-Average Assumptions | ||||||||||||||||||||||||
Discount rate | 4.2 | % | 4.5 | % | 2.1 | % | 3.5 | % | 3.8 | % | 4.1 | % | ||||||||||||
Expected return on plan assets | 5.5 | % | 5.8 | % | 4.0 | % | 3.6 | % | N/A | N/A | ||||||||||||||
Rate of compensation increase | N/A | N/A | 2.4 | % | 3.9 | % | N/A | 1.5 | % |
Pensions | Postretirement Medical and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net actuarial gain (loss) | $ | (65.1 | ) | $ | (113.5 | ) | $ | (5.1 | ) | $ | (3.8 | ) | ||||
Prior service credit | (0.6 | ) | (0.7 | ) | — | — | ||||||||||
Total amount recognized | $ | (65.7 | ) | $ | (114.2 | ) | $ | (5.1 | ) | $ | (3.8 | ) |
Change in assumption: | Estimated increase (decrease) in 2017 pension cost | Estimated increase (decrease) in Projected Benefit Obligation for the year ended December 31, 2016 | Estimated increase (decrease) in 2017 Other Postretirement Benefit costs | Estimated increase (decrease) in Other Postretirement Benefit Obligation for the year ended December 31, 2016 | ||||||||||||
0.50% increase in discount rate | $ | (0.8 | ) | $ | (13.6 | ) | $ | — | $ | (1.5 | ) | |||||
0.50% decrease in discount rate | 0.9 | 14.9 | 0.1 | 1.6 | ||||||||||||
0.50% increase in long-term return on assets | (0.7 | ) | N/A | N/A | N/A | |||||||||||
0.50% decrease in long-term return on assets | 0.7 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.7 | 3.7 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.3 | ) | (3.3 | ) |
2016 | 2015 | |||||
Equity | 25.0 | % | 24.5 | % | ||
Fixed income | 74.4 | % | 74.8 | % | ||
Other | 0.6 | % | 0.7 | % | ||
100.0 | % | 100.0 | % |
2016 | 2015 | |||||
Equity | 33.7 | % | 16.2 | % | ||
Fixed income | 31.1 | % | 29.2 | % | ||
Other | 35.2 | % | 54.6 | % | ||
100.0 | % | 100.0 | % |
Target Allocations | Weighted Average Asset Allocations | |||||||||
U.S. Plans | International Plans | U.S. Plans | International Plans | |||||||
Equity Securities | 25 | % | 0 - 25% | 25.0 | % | 33.7 | % | |||
Debt Securities | 75 | % | 0 - 100% | 74.4 | % | 31.1 | % | |||
Other | — | % | 0 - 100% | 0.6 | % | 35.2 | % |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 0.9 | $ | — | $ | — | $ | 0.9 | ||||||||
Insurance group annuity contracts | — | — | 14.5 | 14.5 | ||||||||||||
Common/collective trust funds — Government debt | — | — | — | — | ||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 38.4 | — | 38.4 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 55.3 | — | 55.3 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 41.3 | — | 41.3 | ||||||||||||
Common/collective trust funds — Customized strategy | — | — | — | — | ||||||||||||
Total | $ | 0.9 | $ | 135.0 | $ | 14.5 | $ | 150.4 |
December 31, 2015 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 2.0 | $ | — | $ | — | $ | 2.0 | ||||||||
Insurance group annuity contracts | — | — | 106.5 | 106.5 | ||||||||||||
Common/collective trust funds — Government debt | — | — | — | — | ||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 60.6 | — | 60.6 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 98.7 | — | 98.7 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 67.1 | — | 67.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 5.9 | — | 5.9 | ||||||||||||
Total | $ | 2.0 | $ | 232.3 | $ | 106.5 | $ | 340.8 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Beginning Balance | $ | 106.5 | $ | 117.7 | ||||
Distribution of MFS | (89.9 | ) | — | |||||
Actual return on assets | 2.0 | 1.0 | ||||||
Benefit payments | (1.4 | ) | (6.7 | ) | ||||
Foreign currency impact | (2.7 | ) | (5.5 | ) | ||||
Ending Balance | $ | 14.5 | $ | 106.5 |
(in millions) | U.S Pension Plans | Non-U.S. Pension Plans | Postretirement Health and Other | |||||||||
2017 | $ | 9.4 | $ | 2.8 | $ | 3.6 | ||||||
2018 | 9.7 | 2.7 | 3.8 | |||||||||
2019 | 9.9 | 3.1 | 3.8 | |||||||||
2020 | 10.1 | 3.6 | 3.8 | |||||||||
2021 | 10.1 | 3.6 | 3.8 | |||||||||
2022 — 2026 | 50.1 | 20.0 | 15.6 |
U.S Pension Plans | Non U.S. Pension Plans | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Projected benefit obligation | $ | 155.6 | $ | 218.5 | $ | 79.1 | $ | 252.5 | ||||||||
Accumulated benefit obligation | 155.6 | 218.5 | 76.2 | 244.9 | ||||||||||||
Fair value of plan assets | 108.6 | 143.9 | 38.4 | 196.9 |
|
(in millions) | |||
2017 | $ | 19.9 | |
2018 | 14.4 | ||
2019 | 12.7 | ||
2020 | 11.7 | ||
2021 | 11.2 | ||
Thereafter | 27.5 | ||
Total | $ | 97.4 |
|
As adjusted for impact of change to FIFO | 2016 | 2015 | ||||||||||||||||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Statements of operations: | ||||||||||||||||||||||||||||||||
Net sales | $ | 427.4 | $ | 457.7 | $ | 349.8 | $ | 378.2 | $ | 406.7 | $ | 477.7 | $ | 438.2 | $ | 543.1 | ||||||||||||||||
Cost of sales | 347.7 | 370.4 | 309.0 | 332.7 | 329.3 | 379.9 | 369.4 | 454.9 | ||||||||||||||||||||||||
Gross profit | 79.7 | 87.3 | 40.8 | 45.5 | 77.4 | 97.8 | 68.8 | 88.2 | ||||||||||||||||||||||||
Operating income (loss) | 0.8 | 3.9 | (134.2 | ) | (23.8 | ) | (6.3 | ) | 17.1 | (9.3 | ) | (13.9 | ) | |||||||||||||||||||
(Loss) income from continuing operations before taxes | (85.0 | ) | (4.3 | ) | (144.2 | ) | (34.6 | ) | (30.9 | ) | (5.1 | ) | (36.8 | ) | (38.2 | ) | ||||||||||||||||
Provision (benefit) for taxes on income | 107.7 | 0.7 | (5.3 | ) | (2.6 | ) | (8.7 | ) | (0.7 | ) | (6.4 | ) | (25.3 | ) | ||||||||||||||||||
Loss from continuing operations | (192.7 | ) | (5.0 | ) | (138.9 | ) | (32.0 | ) | (22.2 | ) | (4.4 | ) | (30.4 | ) | (12.9 | ) | ||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (3.2 | ) | (0.8 | ) | (1.8 | ) | (1.4 | ) | 15.0 | 29.6 | 34.4 | 56.4 | ||||||||||||||||||||
Net (loss) income | (195.9 | ) | (5.8 | ) | (140.7 | ) | (33.4 | ) | (7.2 | ) | 25.2 | 4.0 | 43.5 | |||||||||||||||||||
Basic (loss) income per share: | ||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (1.41 | ) | $ | (0.04 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.43 | ) | $ | (0.04 | ) | $ | (1.02 | ) | $ | (0.24 | ) | $ | (0.05 | ) | $ | 0.19 | $ | 0.03 | $ | 0.32 | |||||||||||
Diluted (loss) income per share: | ||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (1.41 | ) | $ | (0.04 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.43 | ) | $ | (0.04 | ) | $ | (1.02 | ) | $ | (0.24 | ) | $ | (0.05 | ) | $ | 0.19 | $ | 0.03 | $ | 0.32 | |||||||||||
Dividends per common share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.08 | ||||||||||||||||
Cash flows from operations: | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | (195.9 | ) | $ | (5.8 | ) | $ | (140.7 | ) | $ | (33.4 | ) | $ | (7.2 | ) | $ | 25.2 | $ | 4.0 | $ | 43.5 | |||||||||||
Deferred income taxes | 110.3 | 1.1 | 2.6 | (12.6 | ) | 33.9 | 0.7 | 0.7 | (39.7 | ) | ||||||||||||||||||||||
Change in inventories, net | (33.7 | ) | (6.2 | ) | 7.5 | 85.1 | (54.3 | ) | (46.2 | ) | (6.7 | ) | 100.0 |
Historical | 2016 | 2015 | ||||||||||||||||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Statements of operations: | ||||||||||||||||||||||||||||||||
Net sales | $ | 427.4 | $ | 457.7 | $ | 349.8 | $ | 378.2 | $ | 406.7 | $ | 477.7 | $ | 438.2 | $ | 543.1 | ||||||||||||||||
Cost of sales | 345.5 | 369.5 | 308.3 | 332.7 | 331.3 | 382.8 | 368.3 | 454.6 | ||||||||||||||||||||||||
Gross profit | 81.9 | 88.2 | 41.5 | 45.5 | 75.4 | 94.9 | 69.9 | 88.5 | ||||||||||||||||||||||||
Operating income (loss) | 3.0 | 4.8 | (133.5 | ) | (23.8 | ) | (8.3 | ) | 14.2 | (8.2 | ) | (13.6 | ) | |||||||||||||||||||
(Loss) income from continuing operations before taxes | (82.8 | ) | (3.4 | ) | (143.5 | ) | (34.6 | ) | (32.9 | ) | (8.0 | ) | (35.7 | ) | (37.9 | ) | ||||||||||||||||
Provision (benefit) for taxes on income | 121.5 | 0.7 | (5.3 | ) | (2.6 | ) | (9.5 | ) | (1.7 | ) | (6.1 | ) | (25.3 | ) | ||||||||||||||||||
Loss from continuing operations | (204.3 | ) | (4.1 | ) | (138.2 | ) | (32.0 | ) | (23.4 | ) | (6.3 | ) | (29.6 | ) | (12.6 | ) | ||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (3.2 | ) | (0.8 | ) | (1.8 | ) | (1.4 | ) | 15.0 | 29.6 | 34.4 | 56.4 | ||||||||||||||||||||
Net (loss) income | (207.5 | ) | (4.9 | ) | (140.0 | ) | (33.4 | ) | (8.4 | ) | 23.3 | 4.8 | 43.8 | |||||||||||||||||||
Basic (loss) income per share: | -195.9 | -5.8 | -140.7 | -21.4 | -7.2 | 25.2 | 4 | 43.6 | ||||||||||||||||||||||||
Loss from continuing operations | $ | (1.50 | ) | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.52 | ) | $ | (0.04 | ) | $ | (1.01 | ) | $ | (0.24 | ) | $ | (0.06 | ) | $ | 0.17 | $ | 0.04 | $ | 0.32 | |||||||||||
Diluted (loss) income per share: | ||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (1.50 | ) | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.52 | ) | $ | (0.04 | ) | $ | (1.01 | ) | $ | (0.24 | ) | $ | (0.06 | ) | $ | 0.17 | $ | 0.04 | $ | 0.32 | |||||||||||
Dividends per common share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.08 | ||||||||||||||||
Cash flows from operations: | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | (207.5 | ) | $ | (4.9 | ) | $ | (140.0 | ) | $ | (33.4 | ) | $ | (8.4 | ) | $ | 23.3 | $ | 4.8 | $ | 43.8 | |||||||||||
Deferred income taxes | 124.1 | 1.1 | 2.6 | (12.6 | ) | 33.1 | (0.3 | ) | 1.0 | (39.7 | ) | |||||||||||||||||||||
Change in inventories, net | (35.9 | ) | (7.1 | ) | 6.8 | 85.1 | (52.3 | ) | (43.3 | ) | (7.8 | ) | 99.7 |
• | Adjustment related to accumulated other comprehensive loss (“AOCL”), whereby the Company had understated loss on debt extinguishment by $4.3 million, overstated income tax expense by $0.8 million, and understated loss from continuing operations by $3.5 million in the first quarter of 2016. The adjustment also resulted in an overstatement of AOCL and understatement of retained earnings by $2.6 million as of March 31, 2016. |
• | Adjustment related to the classification of income tax expense between continuing operations and discontinued operations in the three months ended March 31, 2015, whereby the Company had understated the benefit for taxes on continuing operations and understated the income tax provision on discontinued operations by $2.1 million. |
|
|
Balance at Beginning of Year | Charge to Costs and Expenses | Utilization of Reserve | Other, Primarily Impact of Foreign Exchange Rates | Balance at end of Year | |||||||||||||||
Year End December 31, 2014 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 15.1 | $ | 4.9 | $ | (3.2 | ) | $ | (1.4 | ) | $ | 15.4 | |||||||
Deferred tax valuation allowance | $ | 100.6 | $ | 4.2 | $ | (9.8 | ) | $ | (9.8 | ) | $ | 85.2 | |||||||
Year End December 31, 2015 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 15.4 | $ | 2.5 | $ | (3.5 | ) | $ | (1.6 | ) | $ | 12.8 | |||||||
Deferred tax valuation allowance | $ | 85.2 | $ | 11.4 | $ | (1.9 | ) | $ | (8.2 | ) | $ | 86.5 | |||||||
Year End December 31, 2016 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 12.8 | $ | 1.0 | $ | (2.9 | ) | $ | 0.2 | $ | 11.1 | ||||||||
Deferred tax valuation allowance | $ | 86.5 | $ | 199.2 | $ | (4.1 | ) | $ | (12.0 | ) | $ | 269.6 |
|
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 20 |
Computer hardware and software | 2 - 10 |
Rental cranes | 5 - 15 |
|
Useful lives | |
Patents | 3-20 years |
Engineering drawings | 3-15 years |
Customer relationships | 10 years |
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 20 |
Computer hardware and software | 2 - 10 |
Rental cranes | 5 - 15 |
|
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales | $ | 219.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Cost of sales | 141.5 | 1,065.6 | 1,070.7 | |||||||||
Engineering, selling and administrative expenses | 48.3 | 271.3 | 284.2 | |||||||||
Amortization of intangible assets | 5.2 | 31.4 | 31.8 | |||||||||
Asset impairment expense | — | 9.0 | 1.1 | |||||||||
Restructuring expense | 0.3 | 4.6 | 2.5 | |||||||||
Separation expense | 27.7 | 39.4 | — | |||||||||
Other | — | 0.9 | 0.4 | |||||||||
Total operating costs and expenses | 223.0 | 1,422.2 | 1,390.7 | |||||||||
Operating (loss) income | (3.4 | ) | 147.9 | 190.6 | ||||||||
Other (expense) income | (2.2 | ) | 23.4 | (1.7 | ) | |||||||
(Loss) income from discontinued operations before income taxes | (5.6 | ) | 171.3 | 188.9 | ||||||||
Provision for taxes on income | 0.6 | 35.9 | 26.5 | |||||||||
(Loss) income from discontinued operations, net of income taxes (1) | $ | (6.2 | ) | $ | 135.4 | $ | 162.4 |
(1) | For the year ended December 31, 2016, 2015 and 2014, the Company recorded net (losses) income of $(1.0) million, $0.0 million and $(1.0) million, respectively, from various other businesses disposed of prior to 2014. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities. |
Carrying amounts of major classes of assets and liabilities included as part of discontinued operations related to MFS | |||||
(in millions) | December 31, 2015 | ||||
Assets | |||||
Cash and cash equivalents | $ | 31.9 | |||
Restricted cash | 0.6 | ||||
Accounts receivable - net | 63.8 | ||||
Inventories - net | 145.9 | ||||
Other current assets | 12.0 | ||||
Property, plant and equipment - net | 116.3 | ||||
Goodwill | 845.8 | ||||
Other intangible assets - net | 519.5 | ||||
Other non-current assets | 16.2 | ||||
Long-term assets held for sale | 3.7 | ||||
Total major classes of assets of discontinued operations | $ | 1,755.7 | |||
Liabilities | |||||
Accounts payable and accrued expenses | $ | 271.6 | |||
Current portion of long-term debt | 0.4 | ||||
Other current liabilities | 40.0 | ||||
Long-term debt | 2.3 | ||||
Deferred income taxes | 167.9 | ||||
Pension obligation | 29.3 | ||||
Postretirement health and other benefit obligations | 3.0 | ||||
Other non-current liabilities | 17.3 | ||||
Total major classes of liabilities of discontinued operations | $ | 531.8 |
|
Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current Assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.2 | $ | — | $ | 0.2 | ||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total current assets at fair value | $ | — | $ | 0.4 | $ | — | $ | 0.4 | ||||||||
Current Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Total current liabilities at fair value | $ | — | $ | 1.0 | $ | — | $ | 1.0 |
Fair Value as of December 31, 2015 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current Assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||
Total current assets at fair value | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||
Current Liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 0.7 | — | 0.7 | ||||||||||||
Interest rate swap contracts: Float-to-fixed | — | 1.7 | — | 1.7 | ||||||||||||
Total current liabilities at fair value | $ | — | $ | 3.5 | $ | — | $ | 3.5 | ||||||||
Non-current Liabilities: | ||||||||||||||||
Interest rate swap contracts: Float-to-fixed | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Foreign currency exchange contract | — | 0.1 | — | 0.1 | ||||||||||||
Total non-current liabilities at fair value | $ | — | $ | 0.7 | $ | — | $ | 0.7 |
|
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.3 | |
Total derivatives designated as hedging instruments | $ | 0.3 |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | — | |
Total derivatives NOT designated as hedging instruments | $ | — | ||
Total asset derivatives | $ | 0.3 |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.1 | |
Commodity contracts | Other current assets | 0.2 | ||
Total derivatives designated as hedging instruments | $ | 0.3 |
ASSET DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Other current assets | $ | 0.1 | |
Total derivatives NOT designated as hedging instruments | $ | 0.1 | ||
Total asset derivatives | $ | 0.4 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.2 | |
Commodity contracts | Accounts payable and accrued expenses | 0.7 | ||
Interest rate swap contracts: Float-to-fixed | Accounts payable and accrued expenses | 1.7 | ||
Foreign exchange contracts | Other non-current liabilities | 0.1 | ||
Interest rate swap contracts: Float-to-fixed | Other non-current liabilities | 0.6 | ||
Total derivatives designated as hedging instruments | $ | 3.3 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.9 | |
Total derivatives NOT designated as hedging instruments | $ | 0.9 | ||
Total liability derivatives | $ | 4.2 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.9 | |
Total derivatives designated as hedging instruments | $ | 0.9 |
LIABILITY DERIVATIVES | ||||
(in millions) | Balance Sheet Location | Fair Value | ||
Derivatives NOT designated as hedging instruments | ||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.1 | |
Total derivatives NOT designated as hedging instruments | $ | 0.1 | ||
Total liability derivatives | $ | 1.0 |
Designated Hedging Instruments | ||||||
Commodity | Units Hedged | Unit | Type | |||
Natural Gas | 175,617 | MMBtu | Cash Flow | |||
Steel | 4,811 | Short Tons | Cash Flow |
Designated Hedging Instruments | ||||
Currency | Units Hedged | Type | ||
South Korean Won | 1,533,257,930 | Cash Flow | ||
Singapore Dollar | 1,800,000 | Cash Flow | ||
Japanese Yen | 245,915,700 | Cash Flow |
Designated Hedging Instruments | ||||||
Commodity | Units Hedged | Unit | Type | |||
Natural Gas | 26,807 | MMBtu | Cash Flow | |||
Steel | 3,190 | Short Tons | Cash Flow |
Designated Hedging Instruments | |||||
Currency | Units Hedged | Type | |||
Australian Dollar | 611,143 | Cash Flow | |||
European Euro | 9,834,120 | Cash Flow | |||
South Korean Won | 218,408,100 | Cash Flow | |||
Singapore Dollar | 900,000 | Cash Flow | |||
United States Dollar | 2,311,697 | Cash Flow | |||
Japanese Yen | 65,502,800 | Cash Flow |
Non Designated Hedging Instruments | ||||||
Currency | Units Hedged | Recognized Location | Purpose | |||
European Euro | 20,490,320 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
United States Dollar | 17,321,106 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
Japanese Yen | 70,518,463 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
Singapore Dollar | 500,000 | Other (expense) income, net | Accounts Payable and Receivable Settlement | |||
British Pound Sterling | 4,840,238 | Other (expense) income, net | Accounts Payable and Receivable Settlement |
Non Designated Hedging Instruments | |||||||
Currency | Units Hedged | Recognized Location | Purpose | ||||
European Euro | 10,502,111 | Other (expense) income, net | Accounts payable and receivable settlement | ||||
United States Dollar | 15,318,000 | Other (expense) income, net | Accounts payable and receivable settlement |
|
(in millions) | 2016 | 2015 | ||||||
Raw materials | $ | 109.3 | $ | 155.3 | ||||
Work-in-process | 88.4 | 116.3 | ||||||
Finished goods | 270.9 | 251.7 | ||||||
Total inventories — gross | 468.6 | 523.3 | ||||||
Excess and obsolete inventory reserve | (39.6 | ) | (34.1 | ) | ||||
Net inventories | $ | 429.0 | $ | 489.2 |
For the years ended December 31, | 2015 | 2014 | ||||||||||||||||||||||
Impact of Change | Impact of Change | |||||||||||||||||||||||
In millions (except per share data) | Historical | to FIFO | As adjusted | Historical | to FIFO | As adjusted | ||||||||||||||||||
Cost of sales | $ | 1,537.0 | $ | (3.5 | ) | $ | 1,533.5 | $ | 1,837.6 | $ | 0.4 | $ | 1,838.0 | |||||||||||
Operating (loss) income | (15.9 | ) | 3.5 | (12.4 | ) | 107.5 | (0.4 | ) | 107.1 | |||||||||||||||
Loss from continuing operations before taxes | (114.5 | ) | 3.5 | (111.0 | ) | (20.0 | ) | (0.4 | ) | (20.4 | ) | |||||||||||||
Benefit for income taxes | (42.6 | ) | 1.5 | (41.1 | ) | (18.0 | ) | 0.2 | (17.8 | ) | ||||||||||||||
Loss from continuing operations | (71.9 | ) | 2.0 | (69.9 | ) | (2.0 | ) | (0.6 | ) | (2.6 | ) | |||||||||||||
Net (loss) income | 63.5 | 2.0 | 65.5 | 148.4 | (0.6 | ) | 147.8 | |||||||||||||||||
Net (loss) income attributable to Manitowoc common shareholders | 63.5 | 2.0 | 65.5 | 144.5 | (0.6 | ) | 143.9 | |||||||||||||||||
Basic (loss) income per share from continuing operations | (0.53 | ) | 0.02 | (0.51 | ) | (0.04 | ) | (0.01 | ) | (0.05 | ) | |||||||||||||
Diluted (loss) income per share from continuing operations | (0.53 | ) | 0.02 | (0.51 | ) | (0.04 | ) | (0.01 | ) | (0.05 | ) |
Impact of Change | ||||||||||||
In millions | Historical | to FIFO | As adjusted | |||||||||
Inventories | $ | 452.6 | $ | 36.6 | $ | 489.2 | ||||||
Other non-current assets | 191.2 | (13.8 | ) | 177.4 | ||||||||
Retained earnings | 539.5 | 22.8 | 562.3 |
For the years ended December 31, | 2015 | 2014 | ||||||||||||||||||||||
Impact of Change | Impact of Change | |||||||||||||||||||||||
In millions | Historical | to FIFO | As adjusted | Historical | to FIFO | As adjusted | ||||||||||||||||||
Net (loss) income | $ | 63.5 | $ | 2.0 | $ | 65.5 | $ | 148.4 | $ | (0.6 | ) | $ | 147.8 | |||||||||||
Deferred income taxes | (5.9 | ) | 1.5 | (4.4 | ) | 11.3 | 0.2 | 11.5 | ||||||||||||||||
Change in inventories, net | (3.7 | ) | (3.5 | ) | (7.2 | ) | 32.2 | 0.4 | 32.6 |
|
(in millions) | 2016 | 2015 | ||||||
Land | $ | 23.6 | $ | 23.7 | ||||
Building and improvements | 225.0 | 218.7 | ||||||
Machinery, equipment and tooling | 292.6 | 274.4 | ||||||
Furniture and fixtures | 16.7 | 16.6 | ||||||
Computer hardware and software | 126.0 | 132.4 | ||||||
Rental cranes | 89.0 | 99.5 | ||||||
Construction in progress | 16.7 | 81.0 | ||||||
Total cost | 789.6 | 846.3 | ||||||
Less accumulated depreciation | (480.8 | ) | (435.6 | ) | ||||
Property, plant and equipment-net | $ | 308.8 | $ | 410.7 |
|
(in millions) | 2016 | 2015 | |||||||
Gross balance as of January 1, | $ | 306.5 | $ | 325.3 | |||||
Foreign currency impact | (6.9 | ) | (18.8 | ) | |||||
Net balance as of December 31, | $ | 299.6 | $ | 306.5 |
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 92.4 | $ | — | $ | 92.4 | $ | 94.2 | $ | — | $ | 94.2 | ||||||||||||
Customer relationships | 10.3 | (7.8 | ) | 2.5 | 10.4 | (7.1 | ) | 3.3 | ||||||||||||||||
Patents | 28.5 | (27.4 | ) | 1.1 | 29.1 | (26.6 | ) | 2.5 | ||||||||||||||||
Engineering drawings | 10.0 | (9.9 | ) | 0.1 | 10.2 | (9.3 | ) | 0.9 | ||||||||||||||||
Distribution network | 18.0 | — | 18.0 | 18.4 | — | 18.4 | ||||||||||||||||||
Other intangibles | 0.2 | (0.2 | ) | — | 0.3 | (0.3 | ) | — | ||||||||||||||||
$ | 159.4 | $ | (45.3 | ) | $ | 114.1 | $ | 162.6 | $ | (43.3 | ) | $ | 119.3 |
|
(in millions) | 2016 | 2015 | ||||||
Trade accounts payable | $ | 157.7 | $ | 268.5 | ||||
Employee related expenses | 28.1 | 35.0 | ||||||
Accrued vacation | 21.8 | 25.1 | ||||||
Miscellaneous accrued expenses | 113.6 | 107.7 | ||||||
$ | 321.2 | $ | 436.3 |
|
(in millions) | 2016 | 2015 | ||||||
Term loan A | $ | — | $ | 312.8 | ||||
Term loan B | — | 119.5 | ||||||
Senior notes due 2020 | — | 613.1 | ||||||
Senior notes due 2022 | — | 299.2 | ||||||
Senior notes due 2021 | 249.8 | — | ||||||
Other | 35.7 | 66.3 | ||||||
Deferred financing costs | (4.0 | ) | (13.3 | ) | ||||
Total debt | 281.5 | 1,397.6 | ||||||
Less current portion and short-term borrowings | (12.4 | ) | (67.2 | ) | ||||
Long-term debt | $ | 269.1 | $ | 1,330.4 |
Year | ||||
2017 | $ | 12.4 | ||
2018 | 5.8 | |||
2019 | 5.7 | |||
2020 | 3.8 | |||
2021 | 263.3 | |||
Thereafter | 0.7 | |||
Total | $ | 291.7 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
(Loss) income from continuing operations before income taxes: | ||||||||||||
Domestic | $ | (293.0 | ) | $ | (184.0 | ) | $ | (93.3 | ) | |||
Foreign | 24.9 | 73.0 | 72.9 | |||||||||
Total | $ | (268.1 | ) | $ | (111.0 | ) | $ | (20.4 | ) |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Current: | ||||||||||||
Federal and state | $ | (13.0 | ) | $ | (48.6 | ) | $ | (41.0 | ) | |||
Foreign | 12.1 | 11.9 | 11.7 | |||||||||
Total current | $ | (0.9 | ) | $ | (36.7 | ) | $ | (29.3 | ) | |||
Deferred: | ||||||||||||
Federal and state | $ | 98.7 | $ | (8.3 | ) | $ | 16.7 | |||||
Foreign | 2.7 | 3.9 | (5.2 | ) | ||||||||
Total deferred | $ | 101.4 | $ | (4.4 | ) | $ | 11.5 | |||||
Provision (benefit) for taxes on income | $ | 100.5 | $ | (41.1 | ) | $ | (17.8 | ) |
2016 | 2015 | 2014 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income provision (benefit) | 2.3 | 5.7 | 16.5 | ||||||
Manufacturing & research incentives | 2.0 | (0.4 | ) | 6.1 | |||||
Taxes on foreign income which differ from the U.S. statutory rate | 3.0 | 3.2 | 44.1 | ||||||
Adjustments for unrecognized tax benefits | (4.0 | ) | 1.5 | 51.5 | |||||
Adjustments for valuation allowances | (69.8 | ) | (8.5 | ) | (25.0 | ) | |||
Spin-off tax costs | (1.3 | ) | (1.8 | ) | — | ||||
Change in assertion over permanently reinvest foreign earnings | — | — | (26.4 | ) | |||||
Other items | (4.7 | ) | 2.3 | (14.5 | ) | ||||
Effective tax rate | (37.5 | )% | 37.0 | % | 87.3 | % |
(in millions) | 2016 | 2015 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 14.2 | $ | 16.2 | ||||
Accounts receivable | (4.6 | ) | (6.9 | ) | ||||
Property, plant and equipment | 19.0 | (10.6 | ) | |||||
Intangible assets | (35.9 | ) | (37.8 | ) | ||||
Deferred employee benefits | 71.8 | 77.2 | ||||||
Product warranty reserves | 6.1 | 6.9 | ||||||
Product liability reserves | 7.8 | 7.7 | ||||||
Tax credits | 4.9 | 0.4 | ||||||
Loss carryforwards | 145.4 | 102.1 | ||||||
Deferred revenue | 10.8 | 10.2 | ||||||
Other | (1.7 | ) | (8.1 | ) | ||||
Total non-current deferred tax liabilities | 237.8 | 157.3 | ||||||
Less valuation allowance | (269.6 | ) | (86.5 | ) | ||||
Net deferred tax liabilities, non-current | $ | (31.8 | ) | $ | 70.8 |
(in millions) | 2016 | 2015 | ||||||
Long-term income tax assets, included in other non-current assets | $ | 4.8 | $ | 96.4 | ||||
Long-term deferred income tax liability | (36.6 | ) | (25.6 | ) | ||||
Net deferred income tax liability | $ | (31.8 | ) | $ | 70.8 |
Jurisdiction | Open Years | |
U.S. Federal | 2012 — 2016 | |
China | 2007 — 2016 | |
France | 2013 — 2016 | |
Germany | 2011 — 2016 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Balance at beginning of year | $ | 19.4 | $ | 20.8 | $ | 29.5 | ||||||
Additions based on tax positions related to the current year | 1.1 | 1.3 | 1.5 | |||||||||
Additions for tax positions of prior years | 5.0 | 0.2 | 3.2 | |||||||||
Reductions for tax positions of prior years | (9.3 | ) | — | (2.7 | ) | |||||||
Reductions based on settlements with taxing authorities | — | — | (5.0 | ) | ||||||||
Reductions for lapse of statute | (0.4 | ) | (2.9 | ) | (5.7 | ) | ||||||
Balance at end of year | $ | 15.8 | $ | 19.4 | $ | 20.8 |
|
(in millions) | 2016 | 2015 | ||||||
Foreign currency translation | $ | (110.8 | ) | $ | (121.4 | ) | ||
Derivative instrument fair market value, net of income taxes of $(0.3) and $(2.2) | (0.3 | ) | (3.8 | ) | ||||
Employee pension and postretirement benefit adjustments, net of income taxes of $(19.0) and $(35.2) | (51.8 | ) | (82.6 | ) | ||||
$ | (162.9 | ) | $ | (207.8 | ) |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2014 | $ | (6.3 | ) | $ | (95.0 | ) | $ | (29.2 | ) | $ | (130.5 | ) | ||||
Other comprehensive loss before reclassifications | 14.0 | 17.9 | (92.2 | ) | (60.3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (11.5 | ) | (5.5 | ) | — | (17.0 | ) | |||||||||
Net current period other comprehensive income | 2.5 | 12.4 | (92.2 | ) | (77.3 | ) | ||||||||||
Balance at December 31, 2015 | (3.8 | ) | (82.6 | ) | (121.4 | ) | (207.8 | ) | ||||||||
Other comprehensive loss before reclassifications | (2.9 | ) | (8.6 | ) | (20.4 | ) | (31.9 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 4.3 | 4.5 | — | 8.8 | ||||||||||||
Net current period other comprehensive loss | 1.4 | (4.1 | ) | (20.4 | ) | (23.1 | ) | |||||||||
Distribution of MFS | 2.1 | 34.9 | 31.0 | 68.0 | ||||||||||||
Balance at December 31, 2016 | $ | (0.3 | ) | $ | (51.8 | ) | $ | (110.8 | ) | $ | (162.9 | ) |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (0.9 | ) | Cost of sales | ||
Commodity contracts | (0.2 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (4.3 | ) | Interest expense | |||
(5.4 | ) | Total before tax | ||||
1.1 | Tax benefit | |||||
$ | (4.3 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (4.6 | ) | (a) | ||
Amortization of prior service cost | (0.1 | ) | (a) | |||
(4.7 | ) | Total before tax | ||||
0.2 | Tax benefit | |||||
$ | (4.5 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (8.8 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (11.7 | ) | Cost of sales | ||
Commodity contracts | (4.0 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (2.6 | ) | Interest expense | |||
(18.3 | ) | Total before tax | ||||
6.8 | Tax expense | |||||
$ | (11.5 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (7.5 | ) | (a) | ||
Amortization of prior service cost | (0.1 | ) | (a) | |||
(7.6 | ) | Total before tax | ||||
2.1 | Tax benefit | |||||
$ | (5.5 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (17.0 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (2.2 | ) | Cost of sales | ||
Commodity contracts | (0.1 | ) | Cost of sales | |||
Interest rate swap contracts: Float-to-fixed | (1.8 | ) | Interest expense | |||
(4.1 | ) | Total before tax | ||||
1.5 | Tax expense | |||||
$ | (2.6 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (4.3 | ) | (a) | ||
Amortization of prior service cost | 0.2 | (a) | ||||
(4.1 | ) | Total before tax | ||||
1.0 | Tax benefit | |||||
$ | (3.1 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (5.7 | ) | Net of Tax | ||
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
|
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2015 | 5.6 | $ | 18.23 | ||||||||
Granted | 0.7 | 21.02 | |||||||||
Exercised | (0.5 | ) | 9.63 | ||||||||
Cancelled | (0.3 | ) | 23.70 | ||||||||
Options outstanding as of December 31, 2015 | 5.5 | 19.04 | |||||||||
Granted | 1.8 | 4.30 | |||||||||
Exercised | (2.9 | ) | 3.27 | ||||||||
Forfeited | (0.3 | ) | 4.21 | ||||||||
Cancelled | (0.2 | ) | 4.32 | ||||||||
Options outstanding as of December 31, 2016 | 3.9 | $ | 4.44 | $ | 7.5 | ||||||
Options exercisable as of: | |||||||||||
December 31, 2016 | 2.0 | $ | 4.55 | $ | 3.9 |
Outstanding | Weighted Average Remaining Contractual | Weighted Average | Exercisable | Weighted Average | ||||||||||||
Range of Exercise Price per Share | Options | Life (Years) | Exercise Price | Options | Exercise Price | |||||||||||
$0.90 - $6.00 | 3.2 | 7.0 | $ | 3.89 | 1.3 | $ | 3.25 | |||||||||
$6.01 - $7.00 | 0.4 | 0.3 | 6.02 | 0.4 | 6.02 | |||||||||||
$7.01 - $9.00 | 0.3 | 1.0 | 7.90 | 0.3 | 7.90 | |||||||||||
$9.01 - $9.76 | — | 0.9 | 9.44 | — | 9.44 | |||||||||||
3.9 | 3.1 | $ | 4.44 | 2.0 | $ | 4.55 |
2016 | 2015 | 2014 | |||||||
Expected Life (years) | 6.5 | 6.0 | 6.0 | ||||||
Risk-free Interest rate | 1.6 | % | 1.8 | % | 1.9 | % | |||
Expected volatility | 45.0 | % | 56.0 | % | 55.0 | % | |||
Expected dividend yield | — | % | 0.3 | % | 0.4 | % |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.4 | $ | 21.73 | ||||
Granted | — | — | |||||
Vested | (0.2 | ) | 21.73 | ||||
Forfeited | — | 21.73 | |||||
Unvested as of December 31, 2016 | 0.2 | $ | 21.73 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.7 | $ | 25.53 | ||||
Granted | 1.4 | 5.36 | |||||
Vested | (0.2 | ) | 22.43 | ||||
Forfeited | (0.2 | ) | 11.07 | ||||
Unvested as of December 31, 2016 | 1.7 | $ | 11.02 |
|
Net Sales | Long-Lived Assets | ||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | ||||||||||||||
United States | $ | 641.3 | $ | 784.5 | $ | 951.3 | $ | 152.9 | $ | 258.6 | |||||||||
Other North America | 61.9 | 87.2 | 156.9 | — | — | ||||||||||||||
Europe | 520.7 | 418.9 | 554.3 | 129.9 | 135.3 | ||||||||||||||
Asia | 159.1 | 184.8 | 221.2 | 50.5 | 86.3 | ||||||||||||||
Middle East | 119.6 | 193.8 | 212.7 | 1.4 | 1.5 | ||||||||||||||
Central and South America | 24.9 | 63.7 | 93.1 | 10.8 | 11.8 | ||||||||||||||
Africa | 39.7 | 80.0 | 54.5 | — | — | ||||||||||||||
South Pacific and Caribbean | 8.2 | 5.9 | 7.3 | — | 3.8 | ||||||||||||||
Australia | 37.7 | 46.9 | 53.9 | 0.4 | 0.1 | ||||||||||||||
Total | $ | 1,613.1 | $ | 1,865.7 | $ | 2,305.2 | $ | 345.9 | $ | 497.4 |
|
(in millions) | 2016 | 2015 | ||||||
Balance at beginning of period | $ | 32.4 | $ | 36.1 | ||||
Accruals for warranties issued during the period | 20.4 | 22.4 | ||||||
Settlements made (in cash or in kind) during the period | (23.7 | ) | (24.4 | ) | ||||
Currency translation | (0.5 | ) | (1.7 | ) | ||||
Balance at end of period | $ | 28.6 | $ | 32.4 |
|
Restructuring Reserve Balance as of December 31, 2015 | Restructuring Expenses | Use of Reserve | Reserve Reclassifications | Restructuring Reserve Balance as of December 31, 2016 | |||||||||||||||
Total | $ | 6.5 | $ | 23.4 | $ | 20.8 | $ | 0.9 | $ | 8.2 |
|
US Pension Plans | Non-US Pension Plans | Postretirement Health and Other | ||||||||||||||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
Service cost - benefits earned during the year | $ | — | $ | — | $ | — | $ | 1.7 | $ | 2.6 | $ | 2.4 | $ | 0.3 | $ | 0.4 | $ | 0.4 | ||||||||||||||||||
Interest cost of projected benefit obligation | 6.8 | 9.4 | 10.3 | 2.5 | 8.9 | 11.3 | 1.7 | 2.0 | 2.1 | |||||||||||||||||||||||||||
Expected return on assets | (5.7 | ) | (9.0 | ) | (9.5 | ) | (1.8 | ) | (7.4 | ) | (9.4 | ) | — | — | — | |||||||||||||||||||||
Amortization of prior service cost | — | — | — | 0.1 | 0.1 | 0.1 | — | — | (0.3 | ) | ||||||||||||||||||||||||||
Amortization of actuarial net loss (gain) | 3.6 | 5.1 | 2.9 | 1.0 | 2.3 | 1.5 | — | 0.1 | (0.1 | ) | ||||||||||||||||||||||||||
Curtailment gain recognized | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | 4.7 | $ | 5.5 | $ | 3.7 | $ | 3.5 | $ | 6.5 | $ | 5.9 | $ | 2.0 | $ | 2.5 | $ | 2.1 | ||||||||||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 4.1 | % | 4.9 | % | 2.9 | % | 3.3 | % | 4.3 | % | 4.2 | % | 3.7 | % | 4.5 | % | ||||||||||||||||||
Expected return on plan assets | 5.5 | % | 5.8 | % | 6.0 | % | 4.0 | % | 3.6 | % | 4.5 | % | N/A | N/A | N/A | |||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.4 | % | 3.9 | % | 4.3 | % | N/A | 1.5 | % | 3.0 | % |
US Pension Plans | Non-US Pension Plans | Postretirement Medical and Other | ||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 218.5 | $ | 235.9 | $ | 252.5 | $ | 279.5 | $ | 51.8 | $ | 57.0 | ||||||||||||
Distribution of MFS | (62.4 | ) | — | (170.4 | ) | — | (10.1 | ) | — | |||||||||||||||
Service cost | — | — | 1.7 | 2.6 | 0.3 | 0.4 | ||||||||||||||||||
Interest cost | 6.8 | 9.4 | 2.5 | 8.9 | 1.7 | 2.0 | ||||||||||||||||||
Participant contributions | — | — | — | 0.1 | 1.9 | 2.4 | ||||||||||||||||||
Medicare subsidies received | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Plan settlements | — | — | — | — | — | — | ||||||||||||||||||
Net transfer out | — | — | — | (0.3 | ) | — | — | |||||||||||||||||
Actuarial (gain) loss | 0.9 | (15.2 | ) | 11.0 | (9.7 | ) | 1.8 | (2.0 | ) | |||||||||||||||
Currency translation adjustment | — | — | (9.9 | ) | (15.4 | ) | — | (0.2 | ) | |||||||||||||||
Benefits paid | (8.2 | ) | (11.6 | ) | (4.6 | ) | (13.2 | ) | (6.0 | ) | (8.0 | ) | ||||||||||||
Benefit obligation, end of year | $ | 155.6 | $ | 218.5 | $ | 82.8 | $ | 252.5 | $ | 41.6 | $ | 51.8 | ||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 143.9 | $ | 160.0 | $ | 196.9 | $ | 214.0 | $ | — | $ | — | ||||||||||||
Distribution of MFS | (34.1 | ) | — | (147.8 | ) | — | — | — | ||||||||||||||||
Actual return on plan assets | 6.4 | (5.8 | ) | 2.7 | 1.5 | — | — | |||||||||||||||||
Employer contributions | 0.6 | 1.3 | 2.2 | 5.1 | 3.9 | 5.4 | ||||||||||||||||||
Participant contributions | — | — | — | 0.1 | 1.9 | 2.4 | ||||||||||||||||||
Medicare subsidies received | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Currency translation adjustment | — | — | (7.6 | ) | (10.3 | ) | — | — | ||||||||||||||||
Net transfer out | — | — | — | (0.3 | ) | — | — | |||||||||||||||||
Benefits paid | (8.2 | ) | (11.6 | ) | (4.6 | ) | (13.2 | ) | (6.0 | ) | (8.0 | ) | ||||||||||||
Fair value of plan assets, end of year | 108.6 | 143.9 | 41.8 | 196.9 | — | — | ||||||||||||||||||
Funded status | $ | (47.0 | ) | $ | (74.6 | ) | $ | (41.0 | ) | $ | (55.6 | ) | $ | (41.6 | ) | $ | (51.8 | ) | ||||||
Amounts recognized in the Consolidated Balance sheet at December 31 | ||||||||||||||||||||||||
Pension asset | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Pension obligation | (47.0 | ) | (74.6 | ) | (41.0 | ) | (55.6 | ) | — | — | ||||||||||||||
Postretirement medical and other benefit obligations | — | — | — | — | (41.6 | ) | (51.8 | ) | ||||||||||||||||
Net amount recognized | $ | (47.0 | ) | $ | (74.6 | ) | $ | (41.0 | ) | $ | (55.6 | ) | $ | (41.6 | ) | $ | (51.8 | ) | ||||||
Weighted-Average Assumptions | ||||||||||||||||||||||||
Discount rate | 4.2 | % | 4.5 | % | 2.1 | % | 3.5 | % | 3.8 | % | 4.1 | % | ||||||||||||
Expected return on plan assets | 5.5 | % | 5.8 | % | 4.0 | % | 3.6 | % | N/A | N/A | ||||||||||||||
Rate of compensation increase | N/A | N/A | 2.4 | % | 3.9 | % | N/A | 1.5 | % |
Pensions | Postretirement Medical and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net actuarial gain (loss) | $ | (65.1 | ) | $ | (113.5 | ) | $ | (5.1 | ) | $ | (3.8 | ) | ||||
Prior service credit | (0.6 | ) | (0.7 | ) | — | — | ||||||||||
Total amount recognized | $ | (65.7 | ) | $ | (114.2 | ) | $ | (5.1 | ) | $ | (3.8 | ) |
Change in assumption: | Estimated increase (decrease) in 2017 pension cost | Estimated increase (decrease) in Projected Benefit Obligation for the year ended December 31, 2016 | Estimated increase (decrease) in 2017 Other Postretirement Benefit costs | Estimated increase (decrease) in Other Postretirement Benefit Obligation for the year ended December 31, 2016 | ||||||||||||
0.50% increase in discount rate | $ | (0.8 | ) | $ | (13.6 | ) | $ | — | $ | (1.5 | ) | |||||
0.50% decrease in discount rate | 0.9 | 14.9 | 0.1 | 1.6 | ||||||||||||
0.50% increase in long-term return on assets | (0.7 | ) | N/A | N/A | N/A | |||||||||||
0.50% decrease in long-term return on assets | 0.7 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.7 | 3.7 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.3 | ) | (3.3 | ) |
Target Allocations | Weighted Average Asset Allocations | |||||||||
U.S. Plans | International Plans | U.S. Plans | International Plans | |||||||
Equity Securities | 25 | % | 0 - 25% | 25.0 | % | 33.7 | % | |||
Debt Securities | 75 | % | 0 - 100% | 74.4 | % | 31.1 | % | |||
Other | — | % | 0 - 100% | 0.6 | % | 35.2 | % |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 0.9 | $ | — | $ | — | $ | 0.9 | ||||||||
Insurance group annuity contracts | — | — | 14.5 | 14.5 | ||||||||||||
Common/collective trust funds — Government debt | — | — | — | — | ||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 38.4 | — | 38.4 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 55.3 | — | 55.3 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 41.3 | — | 41.3 | ||||||||||||
Common/collective trust funds — Customized strategy | — | — | — | — | ||||||||||||
Total | $ | 0.9 | $ | 135.0 | $ | 14.5 | $ | 150.4 |
December 31, 2015 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 2.0 | $ | — | $ | — | $ | 2.0 | ||||||||
Insurance group annuity contracts | — | — | 106.5 | 106.5 | ||||||||||||
Common/collective trust funds — Government debt | — | — | — | — | ||||||||||||
Common/collective trust funds — Corporate and other non-government debt | — | 60.6 | — | 60.6 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 98.7 | — | 98.7 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 67.1 | — | 67.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 5.9 | — | 5.9 | ||||||||||||
Total | $ | 2.0 | $ | 232.3 | $ | 106.5 | $ | 340.8 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Beginning Balance | $ | 106.5 | $ | 117.7 | ||||
Distribution of MFS | (89.9 | ) | — | |||||
Actual return on assets | 2.0 | 1.0 | ||||||
Benefit payments | (1.4 | ) | (6.7 | ) | ||||
Foreign currency impact | (2.7 | ) | (5.5 | ) | ||||
Ending Balance | $ | 14.5 | $ | 106.5 |
(in millions) | U.S Pension Plans | Non-U.S. Pension Plans | Postretirement Health and Other | |||||||||
2017 | $ | 9.4 | $ | 2.8 | $ | 3.6 | ||||||
2018 | 9.7 | 2.7 | 3.8 | |||||||||
2019 | 9.9 | 3.1 | 3.8 | |||||||||
2020 | 10.1 | 3.6 | 3.8 | |||||||||
2021 | 10.1 | 3.6 | 3.8 | |||||||||
2022 — 2026 | 50.1 | 20.0 | 15.6 |
U.S Pension Plans | Non U.S. Pension Plans | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Projected benefit obligation | $ | 155.6 | $ | 218.5 | $ | 79.1 | $ | 252.5 | ||||||||
Accumulated benefit obligation | 155.6 | 218.5 | 76.2 | 244.9 | ||||||||||||
Fair value of plan assets | 108.6 | 143.9 | 38.4 | 196.9 |
2016 | 2015 | |||||
Equity | 25.0 | % | 24.5 | % | ||
Fixed income | 74.4 | % | 74.8 | % | ||
Other | 0.6 | % | 0.7 | % | ||
100.0 | % | 100.0 | % |
2016 | 2015 | |||||
Equity | 33.7 | % | 16.2 | % | ||
Fixed income | 31.1 | % | 29.2 | % | ||
Other | 35.2 | % | 54.6 | % | ||
100.0 | % | 100.0 | % |
|
(in millions) | |||
2017 | $ | 19.9 | |
2018 | 14.4 | ||
2019 | 12.7 | ||
2020 | 11.7 | ||
2021 | 11.2 | ||
Thereafter | 27.5 | ||
Total | $ | 97.4 |
|
As adjusted for impact of change to FIFO | 2016 | 2015 | ||||||||||||||||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Statements of operations: | ||||||||||||||||||||||||||||||||
Net sales | $ | 427.4 | $ | 457.7 | $ | 349.8 | $ | 378.2 | $ | 406.7 | $ | 477.7 | $ | 438.2 | $ | 543.1 | ||||||||||||||||
Cost of sales | 347.7 | 370.4 | 309.0 | 332.7 | 329.3 | 379.9 | 369.4 | 454.9 | ||||||||||||||||||||||||
Gross profit | 79.7 | 87.3 | 40.8 | 45.5 | 77.4 | 97.8 | 68.8 | 88.2 | ||||||||||||||||||||||||
Operating income (loss) | 0.8 | 3.9 | (134.2 | ) | (23.8 | ) | (6.3 | ) | 17.1 | (9.3 | ) | (13.9 | ) | |||||||||||||||||||
(Loss) income from continuing operations before taxes | (85.0 | ) | (4.3 | ) | (144.2 | ) | (34.6 | ) | (30.9 | ) | (5.1 | ) | (36.8 | ) | (38.2 | ) | ||||||||||||||||
Provision (benefit) for taxes on income | 107.7 | 0.7 | (5.3 | ) | (2.6 | ) | (8.7 | ) | (0.7 | ) | (6.4 | ) | (25.3 | ) | ||||||||||||||||||
Loss from continuing operations | (192.7 | ) | (5.0 | ) | (138.9 | ) | (32.0 | ) | (22.2 | ) | (4.4 | ) | (30.4 | ) | (12.9 | ) | ||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (3.2 | ) | (0.8 | ) | (1.8 | ) | (1.4 | ) | 15.0 | 29.6 | 34.4 | 56.4 | ||||||||||||||||||||
Net (loss) income | (195.9 | ) | (5.8 | ) | (140.7 | ) | (33.4 | ) | (7.2 | ) | 25.2 | 4.0 | 43.5 | |||||||||||||||||||
Basic (loss) income per share: | ||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (1.41 | ) | $ | (0.04 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.43 | ) | $ | (0.04 | ) | $ | (1.02 | ) | $ | (0.24 | ) | $ | (0.05 | ) | $ | 0.19 | $ | 0.03 | $ | 0.32 | |||||||||||
Diluted (loss) income per share: | ||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (1.41 | ) | $ | (0.04 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.43 | ) | $ | (0.04 | ) | $ | (1.02 | ) | $ | (0.24 | ) | $ | (0.05 | ) | $ | 0.19 | $ | 0.03 | $ | 0.32 | |||||||||||
Dividends per common share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.08 | ||||||||||||||||
Cash flows from operations: | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | (195.9 | ) | $ | (5.8 | ) | $ | (140.7 | ) | $ | (33.4 | ) | $ | (7.2 | ) | $ | 25.2 | $ | 4.0 | $ | 43.5 | |||||||||||
Deferred income taxes | 110.3 | 1.1 | 2.6 | (12.6 | ) | 33.9 | 0.7 | 0.7 | (39.7 | ) | ||||||||||||||||||||||
Change in inventories, net | (33.7 | ) | (6.2 | ) | 7.5 | 85.1 | (54.3 | ) | (46.2 | ) | (6.7 | ) | 100.0 |
Historical | 2016 | 2015 | ||||||||||||||||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Statements of operations: | ||||||||||||||||||||||||||||||||
Net sales | $ | 427.4 | $ | 457.7 | $ | 349.8 | $ | 378.2 | $ | 406.7 | $ | 477.7 | $ | 438.2 | $ | 543.1 | ||||||||||||||||
Cost of sales | 345.5 | 369.5 | 308.3 | 332.7 | 331.3 | 382.8 | 368.3 | 454.6 | ||||||||||||||||||||||||
Gross profit | 81.9 | 88.2 | 41.5 | 45.5 | 75.4 | 94.9 | 69.9 | 88.5 | ||||||||||||||||||||||||
Operating income (loss) | 3.0 | 4.8 | (133.5 | ) | (23.8 | ) | (8.3 | ) | 14.2 | (8.2 | ) | (13.6 | ) | |||||||||||||||||||
(Loss) income from continuing operations before taxes | (82.8 | ) | (3.4 | ) | (143.5 | ) | (34.6 | ) | (32.9 | ) | (8.0 | ) | (35.7 | ) | (37.9 | ) | ||||||||||||||||
Provision (benefit) for taxes on income | 121.5 | 0.7 | (5.3 | ) | (2.6 | ) | (9.5 | ) | (1.7 | ) | (6.1 | ) | (25.3 | ) | ||||||||||||||||||
Loss from continuing operations | (204.3 | ) | (4.1 | ) | (138.2 | ) | (32.0 | ) | (23.4 | ) | (6.3 | ) | (29.6 | ) | (12.6 | ) | ||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (3.2 | ) | (0.8 | ) | (1.8 | ) | (1.4 | ) | 15.0 | 29.6 | 34.4 | 56.4 | ||||||||||||||||||||
Net (loss) income | (207.5 | ) | (4.9 | ) | (140.0 | ) | (33.4 | ) | (8.4 | ) | 23.3 | 4.8 | 43.8 | |||||||||||||||||||
Basic (loss) income per share: | -195.9 | -5.8 | -140.7 | -21.4 | -7.2 | 25.2 | 4 | 43.6 | ||||||||||||||||||||||||
Loss from continuing operations | $ | (1.50 | ) | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.52 | ) | $ | (0.04 | ) | $ | (1.01 | ) | $ | (0.24 | ) | $ | (0.06 | ) | $ | 0.17 | $ | 0.04 | $ | 0.32 | |||||||||||
Diluted (loss) income per share: | ||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (1.50 | ) | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.23 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.09 | ) | ||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.11 | 0.22 | 0.25 | 0.41 | ||||||||||||||||||||
(Loss) income per share | $ | (1.52 | ) | $ | (0.04 | ) | $ | (1.01 | ) | $ | (0.24 | ) | $ | (0.06 | ) | $ | 0.17 | $ | 0.04 | $ | 0.32 | |||||||||||
Dividends per common share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.08 | ||||||||||||||||
Cash flows from operations: | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | (207.5 | ) | $ | (4.9 | ) | $ | (140.0 | ) | $ | (33.4 | ) | $ | (8.4 | ) | $ | 23.3 | $ | 4.8 | $ | 43.8 | |||||||||||
Deferred income taxes | 124.1 | 1.1 | 2.6 | (12.6 | ) | 33.1 | (0.3 | ) | 1.0 | (39.7 | ) | |||||||||||||||||||||
Change in inventories, net | (35.9 | ) | (7.1 | ) | 6.8 | 85.1 | (52.3 | ) | (43.3 | ) | (7.8 | ) | 99.7 |
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