Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-8036 | ||
Entity Registrant Name | WEST PHARMACEUTICAL SERVICES, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-1210010 | ||
Entity Address, Address Line One | 530 Herman O. West Drive | ||
Entity Address, City or Town | Exton | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19341-0645 | ||
City Area Code | 610 | ||
Local Phone Number | 594-2900 | ||
Title of 12(b) Security | Common Stock, par value $.25 per share | ||
Trading Symbol | WST | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,218,126,218 | ||
Entity Common Stock, Shares Outstanding | 73,837,449 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000105770 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 |
Cost of Goods and Services Sold | 1,234.2 | 1,172 | 1,086.2 |
Gross profit | 605.7 | 545.4 | 512.9 |
Research and development | 38.9 | 40.3 | 39.1 |
Selling, general and administrative expenses | 272.7 | 262.9 | 246 |
Other (income) expense | (2.5) | 1.9 | 2 |
Operating profit | 296.6 | 240.3 | 225.8 |
Interest expense | 8.5 | 8.4 | 7.8 |
Interest income | (3.8) | (2.1) | (1.3) |
Other nonoperating expense (income) | 0.1 | (6.7) | (3.1) |
Income before income taxes | 291.8 | 240.7 | 222.4 |
Income tax expense | 59 | 41.4 | 80.9 |
Equity in net income of affiliated companies | (8.9) | (7.6) | (9.2) |
Net income | $ 241.7 | $ 206.9 | $ 150.7 |
Net income per share: | |||
Basic (in dollars per share) | $ 3.27 | $ 2.80 | $ 2.04 |
Diluted (in dollars per share) | $ 3.21 | $ 2.74 | $ 1.99 |
Weighted average shares outstanding: | |||
Basic (in shares) | 74 | 73.9 | 73.9 |
Diluted (in shares) | 75.4 | 75.4 | 75.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 241.7 | $ 206.9 | $ 150.7 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 4.9 | (39.2) | 68.8 |
Prior service cost arising during period, net of tax of $0 | 0 | (0.3) | 0 |
Net actuarial (loss) gain arising during period, net of tax of $(0.3), $(0.2) and $1.3 | (1.9) | (0.7) | 6.3 |
Settlement effects arising during period, net of tax of $0.8 | 2.7 | 0 | 0 |
Less: amortization of actuarial (gain) loss, net of tax of $0, $0.3 and $0.5 | (0.2) | 1.1 | 3.6 |
Less: amortization of prior service credit, net of tax of $(0.1), $(0.5) and $(0.5) | (0.5) | (1.5) | (3.5) |
Net loss on investment securities, net of tax of $0, $(0.1) and $(2.5) | 0 | (0.1) | (4.7) |
Net (loss) gain on derivatives, net of tax of $(0.2), $1.5 and $(0.1) | (0.4) | 3.8 | (1) |
Other comprehensive income (loss), net of tax | 4.6 | (36.9) | 69.5 |
Comprehensive income | $ 246.3 | $ 170 | $ 220.2 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Prior service credit arising during period, tax | $ 0 | $ 0 | $ 0 |
Net actuarial gain (loss) arising during period, tax | (0.3) | (0.2) | 1.3 |
Settlement effects arising during period, tax | 0.8 | 0 | 0 |
Less: amortization of actuarial loss, tax | 0 | 0.3 | 0.5 |
Less: amortization of prior service credit, tax | (0.1) | (0.5) | (0.5) |
Net gain (loss) on investment securities, tax | 0 | (0.1) | (2.5) |
Net gain (loss) on derivatives, tax | $ (0.2) | $ 1.5 | $ (0.1) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 439.1 | $ 337.4 |
Accounts receivable, net | 319.3 | 288.2 |
Inventories | 235.7 | 214.5 |
Other current assets | 64.6 | 54.3 |
Total current assets | 1,058.7 | 894.4 |
Property, plant and equipment | 1,820.1 | 1,752.7 |
Less: accumulated depreciation and amortization | 980.8 | 930.7 |
Property, plant and equipment, net | 839.3 | 822 |
Operating lease right-of-use assets | 70.1 | 0 |
Investments in affiliated companies | 192.7 | 91.2 |
Goodwill | 107.8 | 105.8 |
Deferred income taxes | 14 | 24.7 |
Intangible assets, net | 29.8 | 20.3 |
Pension and other postretirement benefits | 4.3 | 0 |
Other noncurrent assets | 24.7 | 20.5 |
Total Assets | 2,341.4 | 1,978.9 |
Current liabilities: | ||
Notes payable and other current debt | 2.3 | 0.1 |
Accounts payable | 156.8 | 130.4 |
Pension and other postretirement benefits | 2.2 | 2.3 |
Accrued Salaries, Wages, and Benefits, Current | 73 | 64.5 |
Income taxes payable | 6.4 | 9.8 |
Operating lease liabilities | 9.6 | 0 |
Other current liabilities | 91.3 | 76.6 |
Total current liabilities | 341.6 | 283.7 |
Long-term debt | 255 | 196 |
Deferred income taxes | 15.5 | 13.1 |
Pension and other postretirement benefits | 52.5 | 56.2 |
Operating lease liabilities | 62.4 | 0 |
Other long-term liabilities | 41.2 | 33.6 |
Total Liabilities | 768.2 | 582.6 |
Commitments and contingencies (Note 16) | ||
Equity: | ||
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding in 2019 and 2018 | 0 | 0 |
Common stock, par value $.25 per share; 100.0 million shares authorized; shares issued: 75.3 million and 75.3 million in 2019 and 2018; shares outstanding: 74.1 million and 74.1 million in 2019 and 2018 | 18.8 | 18.8 |
Capital in excess of par value | 272.7 | 282 |
Retained earnings | 1,549.4 | 1,353.4 |
Accumulated other comprehensive loss | (149.6) | (154.2) |
Treasury stock, at cost (1.2 million and 1.2 million shares in 2019 and 2018) | (118.1) | (103.7) |
Total Equity | 1,573.2 | 1,396.3 |
Total Liabilities and Equity | $ 2,341.4 | $ 1,978.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 3 | 3 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 100 | 100 |
Common stock, shares issued (in shares) | 75.3 | 75.3 |
Common stock, shares outstanding (in shares) | 74.1 | 74.1 |
Treasury stock, at cost (in shares) | 1.2 | 1.2 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at Dec. 31, 2016 | $ 1,117,500 | $ 18,400 | $ 260,400 | $ (46,100) | $ 1,071,600 | $ (186,800) |
Balance (in shares) at Dec. 31, 2016 | 73,700,000 | 600,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 150,700 | 150,700 | ||||
Shares issued under stock plans (in shares) | 1,500,000 | (100,000) | ||||
Activity related to stock-based compensation | 55,900 | $ 400 | 44,100 | $ 11,400 | ||
Shares purchased under share repurchase program (in shares) | 800,000 | |||||
Shares purchased under share repurchase program | (74,400) | $ (74,400) | ||||
Dividends declared | $ (40,000) | (40,000) | ||||
Dividends declared per share (in dollars per share) | $ 0.54 | |||||
Other adjustments to capital in excess of par value | $ 4,800 | 4,800 | ||||
Other comprehensive income (loss), net of tax | 69,500 | 69,500 | ||||
Balance (in shares) at Dec. 31, 2017 | 75,200,000 | 1,300,000 | ||||
Balance at Dec. 31, 2017 | 1,279,900 | $ 18,800 | 309,300 | $ (109,100) | 1,178,200 | (117,300) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of modified retrospective application of new accounting standard | (4,100) | (4,100) | ||||
Net income | 206,900 | 206,900 | ||||
Shares issued under stock plans (in shares) | 100,000 | (900,000) | ||||
Activity related to stock-based compensation | 48,900 | $ 0 | (27,300) | $ 76,200 | ||
Shares purchased under share repurchase program (in shares) | 800,000 | |||||
Shares purchased under share repurchase program | (70,800) | $ (70,800) | ||||
Dividends declared | $ (43,100) | (43,100) | ||||
Dividends declared per share (in dollars per share) | $ 0.58 | |||||
Other comprehensive income (loss), net of tax | $ (36,900) | (36,900) | ||||
Balance (in shares) at Dec. 31, 2018 | 75,300,000 | 1,200,000 | ||||
Balance at Dec. 31, 2018 | 1,396,300 | $ 18,800 | 282,000 | $ (103,700) | 1,353,400 | (154,200) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of modified retrospective application of new accounting standard | 11,400 | 11,400 | ||||
Net income | 241,700 | 241,700 | ||||
Shares issued under stock plans (in shares) | (800,000) | |||||
Activity related to stock-based compensation | $ 54,500 | $ 0 | (11,100) | $ 65,600 | ||
Shares purchased under share repurchase program (in shares) | 800,000 | 800,000 | ||||
Shares purchased under share repurchase program | $ (83,100) | $ (83,100) | ||||
Shares repurchased for employee tax withholdings (in shares) | 0 | |||||
Purchase of investment in affiliated companies | 4,900 | 1,800 | $ 3,100 | |||
Dividends declared | $ (45,700) | (45,700) | ||||
Dividends declared per share (in dollars per share) | $ 0.62 | |||||
Other comprehensive income (loss), net of tax | $ 4,600 | 4,600 | ||||
Balance (in shares) at Dec. 31, 2019 | 75,300,000 | 1,200,000 | ||||
Balance at Dec. 31, 2019 | $ 1,573,200 | $ 18,800 | $ 272,700 | $ (118,100) | $ 1,549,400 | $ (149,600) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 241.7 | $ 206.9 | $ 150.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 100 | 101.7 | 94.3 |
Amortization | 3.4 | 2.7 | 2.4 |
Stock-based compensation | 24.4 | 15.1 | 16.1 |
Non-cash restructuring charges | 2.3 | 2.2 | 0.7 |
Pension settlement charge | 3.5 | 0 | 0 |
Venezuela deconsolidation | 0 | 0 | 11.1 |
Contingent consideration payments in excess of acquisition-date liability | (0.5) | (0.6) | 0 |
Loss on sales of equipment | 0.8 | 1.8 | 1.6 |
Deferred income taxes | 15.3 | 0.9 | 41.7 |
Pension and other retirement plans, net | (2.6) | (7.9) | (6.9) |
Equity in undistributed earnings of affiliates, net of dividends | (6.7) | (5.9) | (7) |
Changes in assets/liabilities, net of acquisitions: | |||
Increase in accounts receivable | (33.3) | (43.8) | (39.7) |
Increase in inventories | (18.6) | (7) | (3.6) |
Decrease (increase) in other current assets | 2.6 | (6.2) | 0.3 |
Increase in accounts payable | 25.3 | 0.4 | 12.6 |
Changes in other assets and liabilities | 9.6 | 28.3 | (11) |
Net cash provided by operating activities | 367.2 | 288.6 | 263.3 |
Cash flows from investing activities: | |||
Capital expenditures | (126.4) | (104.7) | (130.8) |
Purchase of investment in affiliated companies | (85.1) | 0 | 0 |
Acquisition of business | 18.9 | 0 | 0 |
Cash related to deconsolidated Venezuelan subsidiary | 0 | 0 | (6) |
Other, net | 2.4 | 3.9 | 3.2 |
Net cash used in investing activities | (228) | (100.8) | (133.6) |
Cash flows from financing activities: | |||
Borrowings under revolving credit agreements | 108.5 | 0 | 0 |
Repayments of Lines of Credit | (136.3) | 0 | 0 |
Issuance of long-term debt | 90 | 0 | 0 |
Repayments of Long-term Debt | (0.1) | (0.1) | (34.9) |
Debt issuance costs | (1.2) | 0 | 0 |
Dividend payments | (45.1) | (42.1) | (39.1) |
Contingent consideration payments up to amount of acquisition-date liability | 0 | 0 | (0.7) |
Proceeds from stock-based compensation awards | 25.1 | 27.4 | 35.7 |
Employee stock purchase plan contributions | 5.4 | 4.9 | 4.4 |
Shares repurchased under share repurchase program | (83.1) | (70.8) | (74.4) |
Net cash used in financing activities | (36.8) | (80.7) | (109) |
Effect of exchange rates on cash | (0.7) | (5.6) | 12.2 |
Net increase in cash and cash equivalents | 101.7 | 101.5 | 32.9 |
Cash, including cash equivalents at beginning of period | 337.4 | 235.9 | 203 |
Cash, including cash equivalents at end of period | 439.1 | 337.4 | 235.9 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 8.6 | 8.4 | 8 |
Income taxes paid, net | 47.5 | 42 | 31 |
Accrued capital expenditures | 17 | 15 | 20.1 |
Dividends declared, not paid | 11.8 | 11.3 | 10.4 |
Purchase of investment in affiliated companies, treasury stock | $ 4.9 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of West after the elimination of intercompany transactions. We have no participation or other rights in variable interest entities. In April 2019, we acquired the business of our distributor in South Korea for $18.9 million. As a result of the acquisition, we recorded inventories, property, plant and equipment, goodwill and a customer relationships intangible asset of $4.5 million, $0.6 million, $2.6 million and $11.2 million, respectively. The goodwill was recorded within our Proprietary Products reportable segment. The results of this acquisition have been included in our consolidated financial statements since the acquisition date. As of April 1, 2017, our consolidated financial statements exclude the results of our Venezuelan subsidiary. Please refer to Note 16, Other (Income) Expense , for further discussion. Use of Estimates: The financial statements are prepared in conformity with U.S. GAAP. These principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies in the financial statements. Actual amounts realized may differ from these estimates. Cash and Cash Equivalents: Cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with maturities of three months or less at the time of purchase. Accounts Receivable: Our accounts receivable balance was net of an allowance for doubtful accounts of $0.5 million and $2.0 million at December 31, 2019 and 2018, respectively. We record the allowance based on a specific identification methodology. Inventories: Inventories are valued at the lower of cost (on a first-in, first-out basis) and net realizable value. The following is a summary of inventories at December 31: ($ in millions) 2019 2018 Raw materials $ 100.9 $ 90.4 Work in process 37.4 42.2 Finished goods 97.4 81.9 $ 235.7 $ 214.5 Property, Plant and Equipment : Property, plant and equipment assets are carried at cost. Maintenance and minor repairs and renewals are charged to expense as incurred. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and immediately expensed for preliminary project activities or post-implementation activities. Upon sale or retirement of depreciable assets, costs and related accumulated depreciation are eliminated, and gains or losses are recognized in other (income) expense. Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the assets, or the remaining term of the lease, if shorter. Leases: Operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. We had no finance leases as of December 31, 2019. Please refer to Note 6, Leases , for additional information. Impairment of Long-Lived Assets : Long-lived assets, including property, plant and equipment and operating lease right-of-use assets, are tested for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. An asset is considered impaired if the carrying value of the asset exceeds the sum of the future expected undiscounted cash flows to be derived from the asset. Once an asset is considered impaired, an impairment loss is recorded within other (income) expense for the difference between the asset’s carrying value and its fair value. For assets held and used in the business, management determines fair value using estimated future cash flows to be derived from the asset, discounted to a net present value using an appropriate discount rate. For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs. Impairment of Goodwill and Other Intangible Assets: Goodwill is tested for impairment at least annually, following the completion of our annual budget and long-range planning process, or whenever circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the same as, or one level below, our operating segments. A goodwill impairment charge represents the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Accounting guidance also allows entities to first assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance, to determine whether it is necessary to perform the quantitative goodwill impairment test. We elected to follow this guidance for our 2017, 2018, and 2019 annual impairment tests. Based upon our assessment, we determined that it was not more likely than not that the fair value of each of our reporting units was less than its carrying amount and determined that it was not necessary to perform the quantitative goodwill impairment tests in 2017, 2018, and 2019. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives of 5 to 25 years, and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. Employee Benefits: The measurement of the obligations under our defined benefit pension and postretirement medical plans are subject to a number of assumptions. These include the rate of return on plan assets (for funded plans) and the rate at which the future obligations are discounted to present value. For our funded plans, we consider the current and expected asset allocations of our plan assets, as well as historical and expected rates of return, in estimating the long-term rate of return on plan assets. U.S. GAAP requires the recognition of an asset or liability for the funded status of a defined benefit postretirement plan, as measured by the difference between the fair value of plan assets, if any, and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement plan, such as a retiree health plan, the benefit obligation is the accumulated postretirement benefit obligation. Please refer to Note 15, Benefit Plans , for a more detailed discussion of our pension and other retirement plans. Financial Instruments : All derivatives are recognized as either assets or liabilities in the balance sheet and recorded at their fair value. For a derivative designated as hedging the exposure to variable cash flows of a forecasted transaction (referred to as a cash flow hedge), the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (“OCI”), net of tax, and subsequently reclassified into earnings when the forecasted transaction affects earnings. For a derivative designated as hedging the exposure to changes in the fair value of a recognized asset or liability or a firm commitment (referred to as a fair value hedge), the derivative’s gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item. For a derivative designated as hedging the foreign currency exposure of a net investment in a foreign operation, the gain or loss is reported in OCI, net of tax, as part of the cumulative translation adjustment. The ineffective portion of any derivative used in a hedging transaction is recognized immediately into earnings. Derivative financial instruments that are not designated as hedges are also recorded at fair value, with the change in fair value recognized immediately into earnings. We do not purchase or hold any derivative financial instrument for investment or trading purposes. Foreign Currency Translation : Foreign currency transaction gains and losses are recognized in the determination of net income. Foreign currency translation adjustments of subsidiaries and affiliates operating outside of the U.S. are accumulated in other comprehensive loss, a separate component of equity. Revenue Recognition: Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with ASC 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service. Some customers receive pricing rebates upon attaining established sales volumes. We record rebate costs when sales occur based on our assessment of the likelihood that the required volumes will be attained. We also maintain an allowance for product returns, as we believe that we are able to reasonably estimate the amount of returns based on our substantial historical experience. Please refer to Note 3, Revenue , for additional information. Shipping and Handling Costs : Shipping and handling costs are included in cost of goods and services sold. Shipping and handling costs billed to customers in connection with the sale are included in net sales. Research and Development : Research and development expenditures are for the creation, engineering and application of new or improved products and processes. Expenditures include primarily salaries and outside services for those directly involved in research and development activities and are expensed as incurred. Environmental Remediation and Compliance Costs : Environmental remediation costs are accrued when such costs are probable and reasonable estimates are determinable. Cost estimates include investigation, cleanup and monitoring activities; such estimates are adjusted, if necessary, based on additional findings. Environmental compliance costs are expensed as incurred as part of normal operations. Litigation : From time to time, we are involved in legal proceedings, investigations and claims generally incidental to our normal business activities. In accordance with U.S. GAAP, we accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These estimates are based on an analysis made by internal and external legal counsel considering information known at the time. Legal costs in connection with loss contingencies are expensed as incurred. Income Taxes: Deferred income taxes are recognized by applying enacted statutory tax rates to tax loss carryforwards and temporary differences between the tax basis and financial statement carrying values of our assets and liabilities. The enacted statutory tax rate applied is based on the rate expected to be applicable at the time of the forecasted utilization of the loss carryforward or reversal of the temporary difference. Valuation allowances on deferred tax assets are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The realizability of deferred tax assets is subject to our estimates of future taxable income, generally at the respective subsidiary company and the country level. In response to the 2017 Tax Act, we reevaluated our position regarding permanent reinvestment of foreign subsidiary earnings and profits through 2017 (with the exception of China and Mexico) and decided that those profits were no longer permanently reinvested. As of January 1, 2018, we reasserted indefinite reinvestment related to all post-2017 unremitted earnings in all of our foreign subsidiaries. Please refer to Note 17, Income Taxes , for additional information. We recognize interest costs related to income taxes in interest expense and penalties within other (income) expense. The tax law ordering approach is used for purposes of determining whether an excess tax benefit has been realized during the year. Stock-Based Compensation : Under the fair value provisions of U.S. GAAP, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the grant date, we use the Black-Scholes valuation model. Please refer to Note 14, Stock-Based Compensation , for a more detailed discussion of our stock-based compensation plans. Net Income Per Share : Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income per share assuming dilution considers the dilutive effect of outstanding stock options and other stock awards based on the treasury stock method. The treasury stock method assumes the use of exercise proceeds to repurchase common stock at the average fair market value in the period. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Standards Recently Adopted Standards In July 2019, the FASB issued guidance which clarifies or improves a variety of ASC disclosure and presentation requirements by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This guidance was effective upon issuance. The adoption did not have a material impact on our financial statements. In June 2018, the FASB issued guidance which expands the scope of accounting for share-based payment arrangements to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance as of January 1, 2019, on a prospective basis. The adoption did not have a material impact on our financial statements. In February 2018, the FASB issued guidance to address a specific consequence of the 2017 Tax Act by allowing a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2017 Tax Act’s reduction of the U.S. federal corporate income tax rate. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance as of January 1, 2019, on a prospective basis, but elected to not reclassify from accumulated other comprehensive income (loss) to retained earnings the stranded tax effects resulting from the 2017 Tax Act’s reduction of the U.S. federal corporate income tax rate. In August 2017, the FASB issued guidance which expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance as of January 1, 2019, on a prospective basis. The adoption did not have a material impact on our financial statements. In February 2016, the FASB issued guidance on the accounting for leases, ASC 842. This guidance requires lessees to recognize lease assets and lease liabilities on the balance sheet and to expand disclosures about leasing arrangements, both qualitative and quantitative. In terms of transition, the guidance requires adoption based upon a modified retrospective approach. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption was permitted. We adopted this guidance as of January 1, 2019, using the modified retrospective approach that allows companies to apply ASC 842 as of the effective date and on a prospective basis. Please refer to Note 6, Leases , for additional information. Standards Issued Not Yet Adopted In December 2019, the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740 (“ASC 740”) and by clarifying and amending existing ASC 740 guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating our adoption timing and the impact that this guidance may have on our financial statements. In April 2019, the FASB issued guidance which clarifies and improves areas of guidance related to the new credit losses, hedging, and recognition and measurement standards. This guidance is effective for the same fiscal years in which the original standards are effective or, if already implemented, annual periods beginning after the issuance of this guidance. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our financial statements. In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by this update. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. We believe that the adoption of this guidance will not have a material impact on our financial statements. In August 2018, the FASB issued guidance which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. The guidance removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our financial statements. In August 2018, the FASB issued guidance which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our financial statements. In June 2016, the FASB issued guidance which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments held by a reporting entity, including accounts receivable, at each reporting date. Under current guidance, an entity reflects credit losses on financial assets measured on an amortized cost basis only when it is probable that losses have been incurred, generally considering only past events and current conditions in determining incurred loss. The new guidance requires the recognition of an allowance that reflects the current estimate of credit losses expected to be incurred over the life of the financial asset, based not only on historical experience and current conditions, but also on reasonable and supportable forecasts. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our financial statements, primarily as we have not historically had a material amount of accounts receivable write-offs. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Adoption of ASC 606 On January 1, 2018, we adopted ASC 606, on a modified retrospective basis, applied to those contracts which were not completed as of January 1, 2018. As a result of our adoption, we recorded a cumulative-effect adjustment of $11.4 million within retained earnings in our consolidated balance sheet as of January 1, 2018, to reflect a change in the timing of revenue recognition under ASC 606, from point in time to over time, on our Contract-Manufactured Products product sales, certain Proprietary Products product sales, development and tooling agreements, as well as an acceleration on a portion of the remaining unearned income from a nonrefundable customer payment. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those periods. Revenue Recognition Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with ASC 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service. We recognize the majority of our revenue, primarily relating to Proprietary Products product sales, at a point in time, following the transfer of control of our products to our customers, which typically occurs upon shipment or delivery, depending on the terms of the related agreements. We recognize revenue relating to our Contract-Manufactured Products product sales and certain Proprietary Products product sales over time, as our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. We recognize revenue relating to our development and tooling agreements over time, as our performance creates or enhances an asset that the customer controls as the asset is created or enhanced. For revenue recognized over time, revenue is recognized by applying a method of measuring progress toward complete satisfaction of the related performance obligation. When selecting the method for measuring progress, we select the method that best depicts the transfer of control of goods or services promised to our customers. Revenue for our Contract-Manufactured Products product sales, certain Proprietary Products product sales, and our development and tooling agreements is recorded under an input method, which recognizes revenue on the basis of our efforts or inputs to the satisfaction of a performance obligation (for example, resources consumed, labor hours expended, costs incurred, time elapsed, or machine hours used) relative to the total expected inputs to the satisfaction of that performance obligation. The input method that we use is based on costs incurred. The majority of the performance obligations within our contracts are satisfied within one year or less. Performance obligations satisfied beyond one year include those relating to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of the SmartDose technology platform within a specific therapeutic area. As of December 31, 2019, there was $5.6 million of unearned income related to this payment, of which $0.9 million was included in other current liabilities and $4.7 million was included in other long-term liabilities. The unearned income is being recognized as income on a straight-line basis over the remaining term of the agreement. The agreement does not include a future minimum purchase commitment from the customer. Our revenue can be generated from contracts with multiple performance obligations. When a sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration we expect to be entitled in exchange for transferring the promised good or service to the customer. Some customers receive pricing rebates upon attaining established sales volumes. We record rebate costs when sales occur based on our assessment of the likelihood that the required volumes will be attained. We also maintain an allowance for product returns, as we believe that we are able to reasonably estimate the amount of returns based on our substantial historical experience. The following table presents the approximate percentage of our net sales by market group: 2019 2018 Biologics 25 % 21 % Generics 20 % 21 % Pharma 31 % 34 % Contract-Manufactured Products 24 % 24 % 100 % 100 % The following table presents the approximate percentage of our net sales by product category: 2019 2018 High-Value Components 42 % 41 % Standard Packaging 29 % 32 % Delivery Devices 5 % 3 % Contract-Manufactured Products 24 % 24 % 100 % 100 % The following table presents the approximate percentage of our net sales by geographic location: 2019 2018 Americas 48 % 48 % Europe, Middle East, Africa 44 % 44 % Asia Pacific 8 % 8 % 100 % 100 % Contract Assets and Liabilities Contract assets and liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, we record a contract asset. Contract assets are recorded on the consolidated balance sheet in accounts receivable, net, and other assets (current and noncurrent portions, respectively). Contract assets included in accounts receivable, net, relate to the unbilled amounts of our product sales for which we have recognized revenue over time. Contract assets included in other assets represent the remaining performance obligations of our development and tooling agreements. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, we record a contract liability. Contract liabilities are recorded on the consolidated balance sheet in other liabilities (current and noncurrent portions, respectively) and represent cash payments received in advance of our performance. The following table summarizes our contract assets and liabilities, excluding contract assets included in accounts receivable, net: ($ in millions) Contract assets, December 31, 2018 $ 9.1 Contract assets, December 31, 2019 9.8 Change in contract assets - increase (decrease) $ 0.7 Deferred income, December 31, 2018 $ (33.4) Deferred income, December 31, 2019 (34.9) Change in deferred income - (increase) decrease $ (1.5) The increase in deferred income during 2019 was primarily due to additional cash payments of $114.4 million received in advance of satisfying future performance obligations, partially offset by the recognition of revenue of $110.4 million, including $20.8 million of revenue that was included in deferred income at the beginning of the year, and $2.5 million in other adjustments. Practical Expedients and Exemptions We have elected to disregard the effects of a significant financing component, as we expect, at the inception of our contracts, that the period between when we transfer a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In addition, we have elected to omit the disclosure of the majority of our remaining performance obligations, which are satisfied within one year or less. Supply Chain Financing We have entered into supply chain financing agreements with certain banks, pursuant to which we offer for sale certain accounts receivable to such banks from time to time, subject to the terms of the applicable agreements. These transactions result in a reduction in accounts receivable, as the agreements transfer effective control over, and credit risk related to, the receivables to the banks. These agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. As of December 31, 2019 and 2018, we derecognized accounts receivable of $10.1 million and $5.7 million, respectively, under these agreements. Discount fees related to the sale of such accounts receivable on our consolidated income statements for 2019 and 2018 were not material. Voluntary Recall On January 24, 2019, we issued a voluntary recall of our Vial2Bag product line due to reports of potential unpredictable or variable dosing under certain conditions. Our fourth quarter 2018 results included an $11.3 million provision for product returns, recorded as a reduction of sales, partially offset by a reduction in cost of goods sold reflecting our inventory balance for these devices at December 31, 2018. During 2019, we recorded a net provision of $5.4 million for inventory returns from our customers and related in-house inventory, partially offset by a reduction in our provision for product returns. We continue to work to get the products back on the market. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4: Net Income Per Share The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share: (in millions) 2019 2018 2017 Net income $ 241.7 $ 206.9 $ 150.7 Weighted average common shares outstanding 74.0 73.9 73.9 Dilutive effect of equity awards, based on the treasury stock method 1.4 1.5 1.9 Weighted average shares assuming dilution 75.4 75.4 75.8 During 2019, 2018 and 2017, there were 0.1 million, 0.4 million, and 0.4 million shares, respectively, from stock-based compensation plans not included in the computation of diluted net income per share because their impact was antidilutive. In February 2019, we announced a share repurchase program for calendar-year 2019 authorizing the repurchase of up to 800,000 shares of our common stock from time to time on the open market or in privately-negotiated transactions as permitted under Exchange Act Rule 10b-18. The number of shares repurchased and the timing of such transactions depended on a variety of factors, including market conditions. During 2019, we purchased 800,000 shares of our common stock under the now-completed program at a cost of $83.1 million, or an average price of $103.89 per share. In December 2019, we announced a share repurchase program for calendar-year 2020 authorizing the repurchase of up to 848,000 shares of our common stock from time to time on the open market or in privately-negotiated |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment A summary of gross property, plant and equipment at December 31 is presented in the following table: ($ in millions) Expected useful lives (years) 2019 2018 Land $ 22.1 $ 20.9 Buildings and improvements 15-35 572.9 569.1 Machinery and equipment 5-12 817.0 806.7 Molds and dies 4-7 123.8 115.8 Computer hardware and software 3-10 155.6 151.1 Construction in progress 128.7 89.1 $ 1,820.1 $ 1,752.7 Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $100.0 million, $101.7 million and $94.3 million, respectively. There were no capitalized leases included in buildings and improvements and machinery and equipment at December 31, 2019 and 2018. We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Capitalized interest for the years ended December 31, 2019, 2018 and 2017 was $1.0 million, $0.9 million and $2.7 million, respectively. During 2019 and 2018, as part of our 2018 restructuring plan, we recorded within other (income) expense $0.3 million and $2.2 million, respectively, for non-cash asset write-downs associated with the discontinued use of certain equipment. During 2019 and 2018, as part of our restructuring plans, we recorded within other (income) expense $1.9 million and $1.1 million, respectively, for gains on the sale of fixed assets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases Adoption of ASC 842 On January 1, 2019, we adopted ASC 842, using the modified retrospective approach that allows companies to apply ASC 842 as of the effective date and on a prospective basis. As a result, we were not required to adjust our comparative period financial information for effects of ASC 842 or present the new required lease disclosures for periods prior to the date of adoption. As of December 31, 2019, we had operating leases primarily related to land, buildings, and machinery and equipment, with lease terms through 2047. Certain of our operating leases include options to extend the lease term for up to five As a result of our adoption of ASC 842, we recorded operating lease right-of-use assets of $71.0 million and operating lease liabilities of $73.1 million for operating leases where we are the lessee in our consolidated balance sheet as of January 1, 2019. The operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. Judgments used in applying ASC 842 include determining: i) whether a contract is, or contains, a lease; ii) the discount rate to be used to discount the unpaid lease payments to present value; iii) the lease term; and iv) the lease payments. We determine if a contract is, or contains, a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As all of our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of our operating leases includes the noncancellable period of the lease plus any additional periods covered by either a lessee option to extend (or not to terminate) the lease that the lessee is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Lease payments included in the measurement of the operating lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise. The components of lease expense were as follows: ($ in millions) 2019 Operating lease cost $ 12.9 Short-term lease cost 0.8 Variable lease cost 3.3 Total lease cost $ 17.0 Lease expense for 2018 and 2017 was $14.5 million and $13.3 million, respectively. Supplemental information related to leases was as follows: ($ in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.5 Right-of-use assets obtained in exchange for new operating lease liabilities 9.1 As of December 31, 2019, the weighted average remaining lease term for operating leases was 11.7 years and the weighted average discount rate was 3.76%. Maturities of lease liabilities as of December 31, 2019 were as follows: ($ in millions) Operating Year Leases 2020 $ 12.1 2021 10.4 2022 8.6 2023 7.8 2024 7.3 Thereafter 41.8 88.0 Less: imputed lease interest (16.0) Total lease liabilities $ 72.0 Maturities of future minimum rental payments under non-cancelable operating leases as of December 31, 2018 were as follows: ($ in millions) Operating Year Leases 2019 $ 13.0 2020 10.5 2021 7.8 2022 6.9 2023 5.5 Thereafter 37.8 Total $ 81.5 Practical Expedients and Exemptions We have elected to adopt the leasing package of practical expedients, which allows us to not retroactively reassess: i) any expired or existing contracts containing leases under the new definition of a lease; ii) the lease classification for any expired or existing leases; and iii) initial direct costs for any expired or existing leases. We have also elected to adopt practical expedients around land easements, the combination of lease and non-lease components, and the portfolio approach relating to discount rates. These practical expedients were applied consistently to all leases. We have elected not to recognize operating lease right-of-use assets and operating lease liabilities for all short-term leases (leases with an initial lease term of 12 months or less). We recognize the lease payments associated with our short-term leases as an expense over the lease term. |
Affiliated Companies
Affiliated Companies | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Affiliated Companies | Affiliated Companies At December 31, 2019, the following affiliated companies were accounted for under the equity method: Location Ownership interest The West Company Mexico, S.A. de C.V. Mexico 49% Aluplast S.A. de C.V. Mexico 49% Pharma Tap S.A. de C.V. Mexico 49% Pharma Rubber S.A. de C.V. Mexico 49% I&W Pharma Group LLC United States 49% Daikyo Japan 49% On November 1, 2019, in connection with the amendment of certain commercial agreements with Daikyo, we increased our ownership interest from 25% to 49% in Daikyo in exchange for $85.1 million in cash and $4.9 million in shares of our treasury stock to certain stockholders of Daikyo. We believe that the increase in ownership interest will not have a material impact on our financial statements. Unremitted income of affiliated companies included in consolidated retained earnings amounted to $82.4 million, $75.8 million and $69.9 million at December 31, 2019, 2018 and 2017, respectively. Dividends received from affiliated companies were $2.2 million in 2019, $1.7 million in 2018 and $2.2 million in 2017. Our equity in net unrealized gains of Daikyo’s investment securities and derivative instruments, as well as pension adjustments, included in accumulated other comprehensive loss was $0.4 million, $0.4 million and $0.5 million at December 31, 2019, 2018 and 2017, respectively. Our purchases from, and royalty payments made to, affiliates totaled $115.1 million, $86.3 million and $86.7 million, respectively, in 2019, 2018 and 2017, of which $20.8 million and $12.9 million was due and payable as of December 31, 2019 and 2018, respectively. The majority of these transactions related to a distributorship agreement with Daikyo that allows us to purchase and re-sell Daikyo products. Sales to affiliates were $9.2 million, $9.6 million and $8.1 million, respectively, in 2019, 2018 and 2017, of which $1.9 million and $1.6 million was receivable as of December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $179.3 million and $77.8 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $13.4 million at both period-ends. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows: ($ in millions) Proprietary Products Contract-Manufactured Products Total Balance, December 31, 2017 $ 77.6 $ 30.1 $ 107.7 Foreign currency translation (1.6) (0.3) (1.9) Balance, December 31, 2018 76.0 29.8 105.8 Goodwill recorded due to acquisition 2.6 — 2.6 Foreign currency translation (0.5) (0.1) (0.6) Balance, December 31, 2019 $ 78.1 $ 29.7 $ 107.8 In April 2019, we acquired the business of our distributor in South Korea. As a result of the acquisition, we recorded goodwill of $2.6 million. The goodwill was recorded within our Proprietary Products reportable segment. As of December 31, 2019, we had no accumulated goodwill impairment losses. Intangible assets and accumulated amortization as of December 31 were as follows: 2019 2018 ($ in millions) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Patents and licensing $ 21.5 $ (16.0) $ 5.5 $ 19.6 $ (15.1) $ 4.5 Technology 3.3 (1.5) 1.8 3.3 (1.2) 2.1 Trademarks 2.0 (1.8) 0.2 2.0 (1.8) 0.2 Customer relationships 40.3 (21.6) 18.7 29.3 (20.0) 9.3 Customer contracts 11.0 (7.4) 3.6 11.0 (6.8) 4.2 $ 78.1 $ (48.3) $ 29.8 $ 65.2 $ (44.9) $ 20.3 In April 2019, we acquired the business of our distributor in South Korea. As a result of the acquisition, we recorded a customer relationships intangible asset of $11.2 million, which is being amortized over ten years. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities as of December 31 included the following: ($ in millions) 2019 2018 Deferred income $ 27.5 $ 25.5 Dividends payable 11.8 11.3 Accrued commissions, rebates and royalties 9.7 5.7 Accrued retirement plans (excluding pension) 7.9 2.3 Accrued taxes other than income 6.5 5.5 Accrued professional services 5.9 4.9 Accrued interest 3.3 3.4 Restructuring obligations 1.5 3.3 Other 17.2 14.7 Total other current liabilities $ 91.3 $ 76.6 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities, at December 31. The interest rates shown in parentheses are as of December 31, 2019. ($ in millions) 2019 2018 Note payable, due December 31, 2019 $ — $ 0.1 Credit Facility, due October 15, 2020 — 28.6 Term Loan, due December 31, 2024 (2.78%) 90.0 — Series A notes, due July 5, 2022 (3.67%) 42.0 42.0 Series B notes, due July 5, 2024 (3.82%) 53.0 53.0 Series C notes, due July 5, 2027 (4.02%) 73.0 73.0 258.0 196.7 Less: unamortized debt issuance costs 0.7 0.6 Total debt 257.3 196.1 Less: current portion of long-term debt 2.3 0.1 Long-term debt, net $ 255.0 $ 196.0 Credit Agreement - Credit Facility In March 2019, we entered into the Credit Agreement that replaced our prior revolving credit facility, which was scheduled to expire in October 2020. The Credit Agreement, which expires in March 2024, contains the Credit Facility of $300.0 million, with sublimits of up to $30.0 million for swing line loans for domestic borrowers in USD and a $20.0 million swing line loan for our German Holding Company and up to $30.0 million for the issuance of standby letters of credit, which Credit Facility may be increased from time-to-time by the greater of $350.0 million and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the preceding twelve month period in the aggregate through an increase in the Credit Facility, subject to the satisfaction of certain conditions. Borrowings under the Credit Facility bear interest at either the base rate (the per annum interest rate of the highest of the Prime Rate, the Federal Funds Rate plus 50 basis points or the daily LIBOR, plus 1.00%) or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our net consolidated debt to our modified EBITDA, ranging from 0 to 37.5 basis points for base rate loans and 87.5 to 137.5 basis points for LIBOR rate loans. The Credit Agreement contains financial covenants providing that we shall not permit the ratio of our net consolidated debt to our modified EBITDA to be greater than 3.5 to 1; provided that, no more than three times during the term of the Credit Agreement, upon the occurrence of a qualified acquisition for each of our four fiscal quarters immediately following such qualified acquisition, the ratio shall be increased to 4.0 to 1. The Credit Agreement also contains customary limitations on liens securing our indebtedness, fundamental changes (mergers, consolidations, liquidations and dissolutions), asset sales, distributions and acquisitions. As of December 31, 2019 and 2018, total unamortized debt issuance costs of $1.1 million and $0.6 million, respectively, were recorded in other noncurrent assets and are being amortized as additional interest expense over the term of the Credit Facility. A portion of these costs relate to our prior revolving credit facility. At December 31, 2019, we had no outstanding borrowings under the Credit Facility, as we repaid the outstanding long-term borrowings denominated in Euro and Yen in November and December 2019, respectively. There was no material gain or loss on the repayment under the Credit Facility. At December 31, 2019, the borrowing capacity available under the Credit Facility, including outstanding letters of credit of $2.5 million, was $297.5 million. Please refer to Note 11, Derivative Financial Instruments , for a discussion of the foreign currency hedges that had been associated with this facility. Credit Agreement Amendment - Term Loan In December 2019, we entered into a First Amendment and Incremental Facility Amendment (the “First Amendment”) to the Credit Agreement. Pursuant to the First Amendment and the Credit Agreement, we established the Term Loan in the amount of $90.0 million, which is due on December 31, 2024. Borrowings under the Term Loan bear interest at the three-month LIBOR plus 87.5 basis points. As of December 31, 2019, there were unamortized debt issuance costs remaining of $0.2 million, which are being amortized as additional interest expense over the term of the Term Loan. At December 31, 2019, we had $90.0 million in borrowings under the Term Loan, of which $2.3 million was classified as current and $87.7 million was classified as long-term. Please refer to Note 11, Derivative Financial Instruments , for a discussion of the foreign currency hedge associated with the Term Loan. Private Placement In 2012, we concluded a private placement issuance of $168.0 million in senior unsecured notes. The total amount of the private placement issuance was divided into three tranches - $42.0 million 3.67% Series A Notes due July 5, 2022, $53.0 million 3.82% Series B Notes due July 5, 2024, and $73.0 million 4.02% Series C Notes due July 5, 2027 (the “Notes”). The Notes rank pari passu with our other senior unsecured debt. The weighted average of the coupon interest rates on the Notes is 3.87%. As of December 31, 2019 and 2018, there were unamortized debt issuance costs remaining of $0.5 million and $0.6 million, respectively, which are being amortized as additional interest expense over the term of the Notes. Covenants Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At December 31, 2019, we were in compliance with all of our debt covenants, and we expect to continue to be in compliance with the terms of these agreements throughout 2020. Interest costs incurred during 2019, 2018 and 2017 were $9.4 million, $9.3 million and $10.5 million, respectively. The aggregate annual maturities of long-term debt, excluding unamortized debt issuance costs, were as follows: $2.3 million in 2020 and 2021, 2022 - $44.3 million, 2023 - $2.3 million, 2024 - $133.8 million, and thereafter - $73.0 million. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our ongoing business operations expose us to various risks, such as fluctuating interest rates, foreign currency exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments, such as interest rate swaps, options and foreign exchange contracts for periods consistent with, and for notional amounts equal to or less than, the related underlying exposures. We do not purchase or hold any derivative financial instruments for investment or trading purposes. All derivatives are recorded in our consolidated balance sheet at fair value. Foreign Currency Exchange Rate Risk We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans. As of December 31, 2019, the total amount of these forward exchange contracts was SGD 601.5 million and $13.4 million. As of December 31, 2018, the total amount of these forward exchange contracts was €10.0 million, SGD 601.5 million and $13.4 million. In addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies. As of December 31, 2019, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD Euro USD 38.4 — 33.6 Yen 6,550.4 37.8 20.6 SGD 29.4 16.5 4.6 In November and December 2019, in conjunction with the repayment of the outstanding long-term borrowings under our Credit Facility denominated in Euro and Yen, we de-designated these borrowings as hedges of our net investments in certain European subsidiaries and Daikyo. The amounts recorded as cumulative translation adjustments within accumulated other comprehensive loss related to these borrowings (prior to de-designation) will remain in accumulated other comprehensive loss indefinitely, unless certain future events occur, such as the disposition of the operations for which the net investment hedges relate. In December 2019, in conjunction with the repayment of the outstanding long-term borrowings under our Credit Facility denominated in Yen, we entered into a forward exchange contract, designated as a cash flow hedge, to manage our exposure to fluctuating foreign exchange rates. This forward exchange contract matured on December 30, 2019. In December 2019, we entered into the cross-currency swap for $90 million, which we designated as a hedge of our net investment in Daikyo. The notional amount of the cross-currency swap is ¥9.8 billion ($90 million) and the swap termination date is December 31, 2024. Under the cross-currency swap, we receive floating interest rate payments based on three-month USD LIBOR plus a margin, in return for paying floating interest rate payments based on three-month Yen LIBOR plus a margin. Commodity Price Risk Many of our proprietary products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception. From November 2017 through October 2019, we purchased several series of call options for a total of 352,682 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regards to a portion of our forecasted elastomer purchases. As of December 31, 2019, we had outstanding contracts to purchase 135,967 barrels of crude oil from January 2020 to June 2021 at a weighted-average strike price of $70.71 per barrel. Effects of Derivative Instruments on Financial Position and Results of Operations Please refer to Note 12, Fair Value Measurements , for the balance sheet location and fair values of our derivative instruments as of December 31, 2019 and 2018. The following table summarizes the effects of derivative instruments designated as fair value hedges in our consolidated statements of income for the years ended December 31: Amount of Gain Recognized in Income Location on Statement of Income ($ in millions) 2019 2018 Fair Value Hedges: Foreign currency hedge contracts $ (6.9) $ (6.3) Other (income) expense Total $ (6.9) $ (6.3) We recognize in earnings the initial value of forward point components on a straight-line basis over the life of the fair value hedge. The amounts recognized in earnings, pre-tax, for forward point components for the years ended December 31, 2019 and 2018 were $8.7 million and $3.7 million, respectively. We expect to recognize $5.6 million in earnings, pre-tax, for forward point components in 2020. The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on OCI and earnings, net of tax, for the years ended December 31: Amount of Gain (Loss) Recognized in OCI Amount of (Gain) Loss Reclassified from Accumulated OCI into Income Location of (Gain) Loss Reclassified from Accumulated OCI into Income ($ in millions) 2019 2018 2019 2018 Fair Value Hedges: Foreign currency hedge contracts $ 4.8 $ — $ (4.6) $ — Other (income) expense Total $ 4.8 $ — $ (4.6) $ — Cash Flow Hedges: Foreign currency hedge contracts $ 0.8 $ 0.4 $ (0.9) $ 0.6 Net sales Foreign currency hedge contracts (0.2) 2.2 (0.6) 0.3 Cost of goods and services sold Forward treasury locks — — 0.3 0.3 Interest expense Total $ 0.6 $ 2.6 $ (1.2) $ 1.2 Net Investment Hedges: Foreign currency-denominated debt $ 0.6 $ 0.8 $ — $ — Other (income) expense Cross-currency swap (1.1) — — — Other (income) expense Total $ (0.5) $ 0.8 $ — $ — The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our consolidated statements of income for the years ended December 31: ($ in millions) 2019 2018 Net sales $ (0.9) $ 0.6 Cost of goods and services sold (0.6) 0.3 Other (income) expense (4.6) — Interest expense 0.3 0.3 The following table summarizes the effects of derivative instruments not designated as hedges in our consolidated statements of income for the years ended December 31: Amount of Loss (Gain) Recognized in Income Location on Statement of Income ($ in millions) 2019 2018 Commodity call options $ 0.4 $ (0.1) Cost of goods and services sold Total $ 0.4 $ (0.1) During 2019 and 2018, there was no material ineffectiveness related to our hedges. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels: • Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 : Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3 : Unobservable inputs that reflect the reporting entity’s own assumptions. The following tables present the assets and liabilities recorded at fair value on a recurring basis: Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 11.3 $ 11.3 $ — $ — Foreign currency contracts 7.7 — 7.7 — Commodity call options 0.1 — 0.1 — $ 19.1 $ 11.3 $ 7.8 $ — Liabilities: Contingent consideration $ 3.3 $ — $ — $ 3.3 Deferred compensation liabilities 12.8 12.8 — — Cross-currency swap 1.4 — 1.4 — Foreign currency contracts 0.3 — 0.3 — $ 17.8 $ 12.8 $ 1.7 $ 3.3 Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 8.7 $ 8.7 $ — $ — Foreign currency contracts 6.5 — 6.5 — $ 15.2 $ 8.7 $ 6.5 $ — Liabilities: Contingent consideration $ 1.7 $ — $ — $ 1.7 Deferred compensation liabilities 9.8 9.8 — — Foreign currency contracts 0.2 — 0.2 — $ 11.7 $ 9.8 $ 0.2 $ 1.7 Deferred compensation assets are included within other noncurrent assets and are valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current and other noncurrent assets, as well as other current and other long-term liabilities, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of our commodity call options, included within other current and other noncurrent assets, is valued using a market approach. The fair value of our contingent consideration, included within other current and other long-term liabilities, is discussed further in the section related to Level 3 fair value measurements. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities. The fair value of the cross-currency swap, included within other long-term liabilities, is valued using a market approach. Please refer to Note 11, Derivative Financial Instruments , for further discussion of our derivatives. Level 3 Fair Value Measurements The fair value of the contingent consideration liability related to the SmartDose technology platform (the "SmartDose contingent consideration") was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other (income) expense in our consolidated statements of income. The significant unobservable inputs used in the fair value measurement of the SmartDose contingent consideration are the sales projections, the probability of success factors, and the discount rate. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. As development and commercialization of the SmartDose technology platform progresses, we may need to update the sales projections, the probability of success factors, and the discount rate used. This could result in a material increase or decrease to the SmartDose contingent consideration. The following table provides a summary of changes in our Level 3 fair value measurements: ($ in millions) Balance, December 31, 2017 $ 4.9 Decrease in fair value recorded in earnings (2.6) Payments (0.6) Balance, December 31, 2018 1.7 Increase in fair value recorded in earnings 2.1 Payments (0.5) Balance, December 31, 2019 $ 3.3 Other Financial Instruments We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities. The estimated fair value of long-term debt is based on quoted market prices for debt issuances with similar terms and maturities and is classified as Level 2 within the fair value hierarchy. At December 31, 2019, the estimated fair value of long-term debt was $263.3 million compared to a carrying amount of $255.0 million. At December 31, 2018, the estimated fair value of long-term debt was $192.6 million and the carrying amount was $196.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in the components of accumulated other comprehensive loss, net of tax: ($ in millions) (Losses) gains on derivatives Unrealized gains on investment securities Defined benefit pension and other postretirement plans Foreign currency translation Total Balance, December 31, 2017 $ (4.2) $ 0.5 $ (39.0) $ (74.6) $ (117.3) Other comprehensive income (loss) before reclassifications 2.6 (0.1) (1.0) (39.2) (37.7) Amounts reclassified out 1.2 — (0.4) — 0.8 Other comprehensive income (loss), net of tax 3.8 (0.1) (1.4) (39.2) (36.9) Balance, December 31, 2018 (0.4) 0.4 (40.4) (113.8) (154.2) Other comprehensive income (loss) before reclassifications 5.4 — (1.9) 4.9 8.4 Amounts reclassified out (5.8) — 2.0 — (3.8) Other comprehensive (loss) income, net of tax (0.4) — 0.1 4.9 4.6 Balance, December 31, 2019 $ (0.8) $ 0.4 $ (40.3) $ (108.9) $ (149.6) A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions): Detail of components 2019 2018 Location on Statement of Income Gains (losses) on derivatives: Foreign currency contracts $ 1.0 $ (0.7) Net sales Foreign currency contracts 1.0 (0.5) Cost of goods and services sold Foreign currency contracts 6.9 — Other expense Forward treasury locks (0.5) (0.4) Interest expense Total before tax 8.4 (1.6) Tax expense (2.6) 0.4 Net of tax $ 5.8 $ (1.2) Amortization of defined benefit pension and other postretirement plans: Prior service credit 0.6 2.0 (a) Actuarial gains (losses) 0.2 (1.4) (a) Settlements (3.5) — (a) Total before tax (2.7) 0.6 Tax expense 0.7 (0.2) Net of tax $ (2.0) $ 0.4 Total reclassifications for the period, net of tax $ 3.8 $ (0.8) (a) These components are included in the computation of net periodic benefit cost. Please refer to Note 15, Benefit Plans , for additional details. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The West Pharmaceutical Services, Inc. 2016 Omnibus Incentive Compensation Plan (the “2016 Plan”) provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. A committee of the Board of Directors determines the terms and conditions of awards to be granted. Vesting requirements vary by award. At December 31, 2019, there were 3,119,314 shares remaining in the 2016 Plan for future grants. Stock options and stock appreciation rights reduce the number of shares available by one share for each award granted. All other awards under the 2016 Plan will reduce the total number of shares available for grant by an amount equal to 2.5 times the number of shares awarded. If awards made under previous plans would entitle a plan participant to an amount of West stock in excess of the target amount, the additional shares (up to a maximum threshold amount) will be distributed under the 2016 Plan. The following table summarizes our stock-based compensation expense recorded within selling, general and administrative expenses for the years ended December 31: ($ in millions) 2019 2018 2017 Stock option and appreciation rights $ 9.1 $ 8.6 $ 7.8 Performance share units, stock-settled 9.5 2.5 4.1 Performance share units, cash-settled 0.1 — 0.1 Performance share units, dividend equivalents 0.2 0.1 0.1 Employee stock purchase plan 0.9 0.9 0.8 Deferred compensation plans and restricted share awards 4.6 3.0 3.2 Total stock-based compensation expense $ 24.4 $ 15.1 $ 16.1 The amount of unrecognized compensation expense for all non-vested awards as of December 31, 2019 was approximately $21.2 million, which is expected to be recognized over a weighted average period of 1.6 years. Stock Options Stock options granted to employees vest in equal increments. All awards expire 10 years from the date of grant. Upon the exercise of stock options, shares are issued in exchange for the exercise price of the options. The following table summarizes changes in outstanding options: (in millions, except per share data) 2019 2018 2017 Options outstanding, January 1 3.0 3.5 4.5 Granted 0.3 0.5 0.5 Exercised (0.6) (1.0) (1.5) Forfeited — — — Options outstanding, December 31 2.7 3.0 3.5 Options exercisable, December 31 1.6 1.7 1.9 Weighted Average Exercise Price 2019 2018 2017 Options outstanding, January 1 $ 58.93 $ 48.76 $ 38.11 Granted 103.40 90.36 84.09 Exercised 46.42 35.95 26.15 Forfeited 92.71 75.32 60.92 Options outstanding, December 31 $ 67.02 $ 58.93 $ 48.76 Options exercisable, December 31 $ 53.12 $ 45.32 $ 35.44 As of December 31, 2019, the weighted average remaining contractual life of options outstanding and of options exercisable was 6.1 years and 5.0 years, respectively. As of December 31, 2019, the aggregate intrinsic value of total options outstanding was $227.8 million, of which $158.6 million represented vested options. The fair value of the options was estimated on the date of grant using a Black-Scholes option valuation model that used the following weighted average assumptions in 2019, 2018 and 2017: a risk-free interest rate of 2.3%, 2.7%, and 2.0%, respectively; stock volatility of 22.5%, 19.8%, and 19.9%, respectively; and dividend yields of 0.7%, 0.7%, and 0.7%, respectively. Stock volatility is estimated based on historical data and the impact from expected future trends. Expected lives, which are based on prior experience, averaged 6 years for 2019, 2018 and 2017. The weighted average grant date fair value of options granted in 2019, 2018 and 2017 was $24.72, $20.16 and $18.08, respectively. Stock option expense is recognized over the vesting period, net of forfeitures. For the years ended December 31, 2019, 2018 and 2017, the intrinsic value of options exercised was $46.9 million, $61.3 million and $91.7 million, respectively. The grant date fair value of options vested during those same periods was $7.5 million, $8.3 million and $6.7 million, respectively. Stock Appreciation Rights Stock appreciation rights (“SARs”) granted to eligible international employees vest in equal annual increments over 4 years of continuous service. All awards expire 10 years from the date of grant. The fair value of each cash-settled SAR is adjusted at the end of each reporting period, with the resulting change reflected in expense. As of December 31, 2019, SARs outstanding were 35,993, of which 23,833 were cash-settled and 12,160 were stock-settled. Upon exercise of a cash-settled SAR, the employee receives cash for the difference between the grant date price and the fair market value of the Company’s stock on the date of exercise. As a result of the cash settlement feature, cash-settled SARs are recorded within other long-term liabilities. Upon exercise of a stock-settled SAR, shares are issued in exchange for the exercise price of the stock-settled SAR. As a result of the stock settlement feature, stock-settled SARs are recorded within equity. The following table summarizes changes in outstanding SARs: 2019 2018 2017 SARs outstanding, January 1 39,819 51,368 116,087 Granted 3,364 3,480 2,792 Exercised (6,790) (14,629) (67,511) Forfeited (400) (400) — SARs outstanding, December 31 35,993 39,819 51,368 SARs exercisable, December 31 27,781 30,285 39,769 Weighted Average Exercise Price 2019 2018 2017 SARs outstanding, January 1 $ 46.48 $ 38.55 $ 31.13 Granted 102.51 89.64 83.47 Exercised 42.08 28.45 27.65 Forfeited 63.43 63.43 — SARs outstanding, December 31 $ 52.36 $ 46.48 $ 38.55 SARs exercisable, December 31 $ 40.73 $ 36.91 $ 30.77 Performance Awards In addition to stock options and SAR awards, we grant performance share unit (“PSU”) awards to eligible employees. These awards are earned based on the Company’s performance against pre-established targets, including annual growth rate of revenue and return on invested capital, over a specified performance period. Depending on the achievement of the targets, recipients of stock-settled PSU awards are entitled to receive a certain number of shares of common stock, whereas recipients of cash-settled PSU awards are entitled to receive a payment in cash per unit based on the fair market value of a share of our common stock at the end of the performance period. The following table summarizes changes in our outstanding stock-settled PSU awards: 2019 2018 2017 Non-vested stock-settled PSU awards, January 1 296,037 341,944 378,062 Granted at target level 84,309 102,307 92,045 Adjustments above/(below) target (50,556) (2,284) (11,369) Vested and converted (48,964) (121,984) (116,684) Forfeited (16,204) (23,946) (110) Non-vested stock-settled PSU awards, December 31 264,622 296,037 341,944 Weighted Average Grant Date Fair Value 2019 2018 2017 Non-vested stock-settled PSU awards, January 1 $ 76.84 $ 64.38 $ 54.47 Granted at target level 103.40 90.45 84.01 Adjustments above/(below) target 83.89 33.86 42.85 Vested and converted 102.51 93.00 50.06 Forfeited 69.09 68.65 73.64 Non-vested stock-settled PSU awards, December 31 $ 66.03 $ 76.84 $ 64.38 Shares earned under PSU awards may vary from 0% to 200% of an employee’s targeted award. The fair value of stock-settled PSU awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures. The weighted average grant date fair value of stock-settled PSU awards granted during the years 2019, 2018 and 2017 was $103.40, $90.45 and $84.01, respectively. Including forfeiture and below-target achievement expectations, we expect that the stock-settled PSU awards will convert to 84,670 shares to be issued over an average remaining term of one The fair value of cash-settled PSU awards is also based on the market price of our stock at the grant date. These awards are revalued at the end of each quarter based on changes in our stock price. As a result of the cash settlement feature, cash-settled PSU awards are recorded within other long-term liabilities. The following table summarizes changes in our outstanding cash-settled PSU awards: 2019 2018 2017 Non-vested cash-settled PSU awards, January 1 1,592 1,972 2,451 Granted at target level 806 560 598 Adjustments above/(below) target (206) (30) (107) Vested and converted (211) (910) (970) Forfeited — — — Non-vested cash-settled PSU awards, December 31 1,981 1,592 1,972 Weighted Average Grant Date Fair Value 2019 2018 2017 Non-vested cash-settled PSU awards, January 1 $ 79.48 $ 92.25 $ 25.28 Granted at target level 102.51 89.64 83.47 Adjustments above/(below) target 56.95 41.53 66.61 Vested and converted 102.51 93.00 86.93 Forfeited — — — Non-vested cash-settled PSU awards, December 31 $ 150.33 $ 79.48 $ 92.25 Employee Stock Purchase Plan We also offer an Employee Stock Purchase Plan (“ESPP”), which provides for the sale of our common stock to eligible employees at 85% of the current market price on the last trading day of each quarterly offering period. Payroll deductions are limited to 25% of the employee’s base salary, not to exceed $25,000 in any one calendar year. In addition, employees may not buy more than 2,000 shares during any offering period (8,000 shares per year). Purchases under the ESPP were 51,391 shares, 55,669 shares and 56,218 shares for the years 2019, 2018 and 2017, respectively. At December 31, 2019, there were approximately 3.8 million shares available for issuance under the ESPP. Deferred Compensation Plans and Restricted Share Awards Our deferred compensation plans include a Non-Qualified Deferred Compensation Plan for Non-Employee Directors, under which non-employee directors may defer all or part of their annual cash retainers. The deferred fees may be credited to a stock-equivalent account. Amounts credited to this account are converted into deferred stock units based on the fair market value of one share of our common stock on the last day of the quarter. For deferred stock units ultimately paid in cash, a liability is calculated at an amount determined by multiplying the number of units by the fair market value of our common stock at the end of each reporting period. In addition, deferred stock awards are granted on the date of our annual meeting, and are distributed in shares of common stock. In 2019, we granted 14,579 deferred stock awards, with a grant date fair value of $121.40. Similarly, a non-qualified deferred compensation plan for eligible employees provides for the conversion of compensation into deferred stock units. As of December 31, 2019, the two deferred compensation plans held a total of 366,159 deferred stock units, including 6,274 units to be paid in cash. In addition, during 2019, we granted 13,308 restricted share awards at a weighted grant-date fair value of $116.39 per share to employees under the 2016 Plan. During 2018, we granted 15,942 restricted share awards at a weighted grant-date fair value of $96.77 per share to employees under the 2016 Plan. There were no grants of restricted share awards in 2017. The fair value of these awards is based on the market price of our stock at the grant date and is recognized as expense over the vesting period. Annual Incentive Plan Under our annual incentive plan, participants are paid bonuses on the attainment of certain financial goals, which they can elect to receive in either cash or shares of our common stock. If the employee elects payment in shares, they are also given a restricted incentive stock award equal to one share for each four bonus shares issued. The incentive stock awards vest at the end of four years provided that the participant has not made a disqualifying disposition of their bonus shares. Incentive stock award grants were 1,300 shares, 1,500 shares and 1,800 shares in 2019, 2018 and 2017, respectively. There were no incentive stock forfeitures in 2019. Incentive stock forfeitures of 200 shares and 800 shares occurred in 2018 and 2017, respectively. Compensation expense is recognized over the vesting period based on the fair market value of common stock on the award date: $106.14 per share granted in 2019, $93.00 per share granted in 2018 and $86.93 per share granted in 2017. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Certain of our U.S. and international subsidiaries sponsor defined benefit pension plans. In addition, we provide minimal death benefits for certain U.S. retirees and pay a portion of healthcare costs for retired U.S. salaried employees and their dependents. Benefits for participants are coordinated with Medicare when possible. We also sponsor a defined contribution plan for certain salaried and hourly U.S. employees. Our 401(k) plan contributions were $15.6 million for 2019, $6.5 million for 2018 and $5.7 million for 2017. The increase in 401(k) plan contributions in 2019 was in response to the cessation of our U.S. qualified and non-qualified defined benefit pension plans as of January 1, 2019 (except for interest crediting). Pension and Other Retirement Benefits The components of net periodic benefit cost and other amounts recognized in OCI were as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2017 2019 2018 2017 Net periodic benefit cost: Service cost $ 1.4 $ 10.8 $ 10.4 $ — $ — $ — Interest cost 9.2 9.4 9.8 0.2 0.2 0.3 Expected return on assets (12.0) (15.7) (13.5) — — — Amortization of prior service credit 0.1 (1.3) (1.3) (0.7) (0.7) (0.7) Amortization of actuarial loss (gain) 2.1 3.8 4.9 (2.3) (2.4) (2.6) Settlement effects 3.5 — — — — — Net periodic benefit cost $ 4.3 $ 7.0 $ 10.3 $ (2.8) $ (2.9) $ (3.0) Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: Net loss (gain) arising during period $ 1.5 $ 3.5 $ (9.0) $ 0.1 $ (1.4) $ (1.1) Prior service credit arising during period — 0.3 — — — — Amortization of prior service credit (0.1) 1.3 1.3 0.7 0.7 0.7 Amortization of actuarial (loss) gain (2.1) (3.8) (4.9) 2.3 2.4 2.6 Settlement effects (3.5) — — — — — Foreign currency translation 0.6 (1.2) 2.6 — — — Total recognized in OCI $ (3.6) $ 0.1 $ (10.0) $ 3.1 $ 1.7 $ 2.2 Total recognized in net periodic benefit cost and OCI $ 0.7 $ 7.1 $ 0.3 $ 0.3 $ (1.2) $ (0.8) Net periodic benefit cost by geographic location is as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2017 2019 2018 2017 U.S. plans $ 2.4 $ 4.8 $ 7.3 $ (2.8) $ (2.9) $ (3.0) International plans 1.9 2.2 3.0 — — — Net periodic benefit cost $ 4.3 $ 7.0 $ 10.3 $ (2.8) $ (2.9) $ (3.0) During 2019, we recorded a $3.5 million pension settlement charge within other nonoperating expense (income), as we determined that normal-course lump-sum payments for each of our U.S. qualified and non-qualified defined benefit pension plans exceeded the threshold for settlement accounting under U.S. GAAP for the year. Effective January 1, 2019, except for interest crediting, benefit accruals under these defined benefit pension plans ceased. During 2019, we contributed $2.6 million to our U.S. qualified defined benefit pension plan. The following table presents the changes in the benefit obligation and the fair value of plan assets, as well as the funded status of the plans: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, January 1 $ (267.0) $ (288.0) $ (6.0) $ (7.1) Service cost (1.4) (10.8) — — Interest cost (9.2) (9.4) (0.2) (0.2) Participants’ contributions (0.3) (0.6) (0.7) (0.6) Actuarial (loss) gain (30.8) 20.4 (0.2) 1.4 Amendments/transfers in — (0.3) — — Benefits/expenses paid 6.8 18.0 0.5 0.5 Settlement effects 15.0 — — — Foreign currency translation (1.0) 3.7 — — Benefit obligation, December 31 $ (287.9) $ (267.0) $ (6.6) $ (6.0) Change in plan assets: Fair value of assets, January 1 $ 214.5 $ 239.5 $ — $ — Actual return on assets 41.3 (8.3) — — Employer contribution 8.0 2.7 (0.2) (0.1) Participants’ contributions 0.3 0.6 0.7 0.6 Benefits/expenses paid (6.3) (18.0) (0.5) (0.5) Settlement effects (15.0) — — — Foreign currency translation 1.3 (2.0) — — Fair value of assets, December 31 $ 244.1 $ 214.5 $ — $ — Funded status at end of year $ (43.8) $ (52.5) $ (6.6) $ (6.0) International pension plan assets, at fair value, included in the preceding table were $39.4 million and $33.4 million at December 31, 2019 and 2018, respectively. Amounts recognized in the balance sheet were as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Noncurrent assets $ 4.3 $ — $ — $ — Current liabilities (1.5) (1.6) (0.7) (0.7) Noncurrent liabilities (46.6) (50.9) (5.9) (5.3) $ (43.8) $ (52.5) $ (6.6) $ (6.0) The amounts in accumulated other comprehensive loss, pre-tax, consisted of: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Net actuarial loss (gain) $ 69.4 $ 73.0 $ (7.0) $ (9.4) Prior service cost (credit) 0.8 0.9 (1.0) (1.7) Total $ 70.2 $ 73.9 $ (8.0) $ (11.1) The net actuarial loss and prior service credit for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $1.8 million and $0.1 million, respectively. The net actuarial gain and prior service credit for the other retirement benefits plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $1.6 million and $0.7 million. The accumulated benefit obligation for all defined benefit pension plans was $283.9 million and $263.0 million at December 31, 2019 and 2018, respectively, including $73.9 million and $64.0 million, respectively, for international pension plans. As of December 31, 2019, our U.S. qualified defined benefit pension plan had plan assets in excess of its obligations. As of December 31, 2019, our other defined benefit pension plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. All of the defined benefit pension plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets as of December 31, 2018. Benefit payments expected to be paid under our defined benefit pension and other retirement benefit plans in the next ten years are as follows: ($ in millions) Domestic International Total 2020 $ 21.0 $ 1.3 $ 22.3 2021 13.5 1.3 14.8 2022 15.0 2.0 17.0 2023 13.7 1.5 15.2 2024 13.5 1.9 15.4 2025 to 2029 60.5 13.3 73.8 $ 137.2 $ 21.3 $ 158.5 In 2020, we expect to contribute $0.7 million to pension plans, none of which is for international plans. In addition, we expect to contribute $0.7 million for other retirement benefits in 2020. We periodically consider additional, voluntary contributions depending on the investment returns generated by pension plan assets, changes in benefit obligation projections and other factors. Weighted average assumptions used to determine net periodic benefit cost were as follows: Pension benefits Other retirement benefits 2019 2018 2017 2019 2018 2017 Discount rate 2.70 % 2.91 % 3.48 % 4.20 % 3.45 % 3.90 % Rate of compensation increase 2.41 % 4.00 % 4.01 % — — — Long-term rate of return on assets 5.54 % 6.71 % 6.47 % — — — Weighted average assumptions used to determine the benefit obligations were as follows: Pension benefits Other retirement benefits 2019 2018 2019 2018 Discount rate 2.79 % 3.76 % 3.20 % 4.20 % Rate of compensation increase 2.49 % 4.01 % — — The discount rate used to determine the benefit obligations for U.S. pension plans was 3.35% and 4.30% as of December 31, 2019 and 2018, respectively. The weighted average discount rate used to determine the benefit obligations for all international plans was 1.28% and 2.19% as of December 31, 2019 and 2018, respectively. The rate of compensation increase for U.S. plans was 4.25% for 2018, while the weighted average rate for all international plans was 2.49% for 2019 and 2.60% for 2018. Other retirement benefits were only available to U.S. employees. The expected long-term rate of return for U.S. plans, which accounts for 83.86% of global plan assets, was 5.60% for 2019, 7.00% for 2018 and 7.00% for 2017. The assumed healthcare cost trend rate used to determine benefit obligations was 6.25% for all participants in 2019, decreasing to 5.00% by 2024. A change in the assumed healthcare cost trend rate by one percentage point would have an immaterial impact in the postretirement obligation. The assumed healthcare cost trend rate used to determine net periodic benefit cost was 6.25% for all participants in 2019, decreasing to 5.00% by 2024. The effect of a one percentage point increase or decrease in the rate would have an immaterial impact in the aggregate service and interest cost components. The weighted average asset allocations by asset category for our pension plans, at December 31, were as follows: 2019 2018 Equity securities 33 % 23 % Debt securities 65 % 74 % Other 2 % 3 % 100 % 100 % Our U.S. pension plan is managed as a balanced portfolio comprised of two components: equity and fixed income debt securities. Equity investments are used to maximize the long-term real growth of fund assets, while fixed income investments are used to generate current income, provide for a more stable periodic return and provide some protection against a prolonged decline in the market value of equity investments. Temporary funds may be held as cash. We maintain a long-term strategic asset allocation policy which provides guidelines for ensuring that the fund’s investments are managed with the short-term and long-term financial goals of the fund, while allowing the flexibility to react to unexpected changes in capital markets. Diversification across and within asset classes is the primary means by which we mitigate risk. We maintain guidelines for all asset and sub-asset categories in order to avoid excessive investment concentrations. Fund assets are monitored on a regular basis. If at any time the fund asset allocation is not within the acceptable allocation range, funds will be reallocated. We also review the fund on a regular basis to ensure that the investment returns received are consistent with the short-term and long-term goals of the fund and with comparable market returns. We are prohibited from pledging fund securities and from investing pension fund assets in our own stock, securities on margin or derivative securities. During the three months ended December 31, 2018, in anticipation of benefit accruals under our U.S. qualified and non-qualified defined benefit pension plans ceasing effective January 1, 2019, except for interest crediting, we changed the U.S. target asset allocations from 65% equity securities and 35% debt securities to 30% equity securities and 70% debt securities. The following are the U.S. target asset allocations and acceptable allocation ranges: Target allocation Allocation range Equity securities 30% 27% - 33% Debt securities 70% 67% - 73% Other —% 0% - 3% The following tables present the fair value of our pension plan assets, utilizing the fair value hierarchy discussed in Note 12, Fair Value Measurements . In accordance with U.S. GAAP, certain pension plan assets measured at net asset value (“NAV”) have not been classified in the fair value hierarchy. Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2019 Level 1 Level 2 Level 3 Cash $ 2.2 $ 2.2 $ — $ — Equity securities: International mutual funds 15.5 1.3 14.2 — Fixed income securities: Mutual funds 21.7 3.8 17.9 — Pension plan assets in the fair value hierarchy $ 39.4 $ 7.3 $ 32.1 $ — Pension plan assets measured at NAV 204.7 Pension plan assets at fair value $ 244.1 Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2018 Level 1 Level 2 Level 3 Cash $ 1.7 $ 1.7 $ — $ — Equity securities: International mutual funds 17.7 17.7 — — Fixed income securities: Mutual funds 13.9 13.9 — — Pension plan assets in the fair value hierarchy $ 33.3 $ 33.3 $ — $ — Pension plan assets measured at NAV 181.2 Pension plan assets at fair value $ 214.5 |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Other (Income) Expense Other (income) expense consisted of: ($ in millions) 2019 2018 2017 Restructuring and related charges: Severance and post-employment benefits $ 2.6 $ 3.1 $ — Asset-related charges 0.3 2.2 — Other charges 2.0 3.8 — Total restructuring and related charges $ 4.9 $ 9.1 $ — Argentina currency devaluation 1.0 1.1 — Tax recovery (4.7) — — Venezuela deconsolidation — — 11.1 Development and licensing income (0.9) (0.9) (10.6) Contingent consideration 2.1 (2.6) (2.4) Other items (4.9) (4.8) 3.9 Total other (income) expense $ (2.5) $ 1.9 $ 2.0 Restructuring and Related Charges In February 2018, our Board of Directors approved a restructuring plan designed to realign our manufacturing capacity with demand. These changes were expected to be implemented over a period of up to twenty-four months from the date of the approval. The plan was expected to require restructuring and related charges of approximately $16.0 million. Since its approval, we recorded $13.7 million in restructuring and related charges associated with this plan. The plan is now considered complete. During 2019, we recorded $4.9 million in restructuring and related charges associated with this plan, consisting of $2.6 million for severance charges, $0.3 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $2.0 million for other non-cash charges. During 2018, we recorded $8.8 million in restructuring and related charges associated with this plan, consisting of $3.1 million for severance charges, $2.2 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $3.5 million for other non-cash charges. The following table presents activity related to our restructuring obligations related to our 2018 restructuring plan: ($ in millions) Severance and benefits Asset-related charges Other charges Total Balance, December 31, 2017 $ — $ — $ — $ — Charges 3.1 2.2 3.5 8.8 Cash payments (0.8) — — (0.8) Non-cash asset write-downs — (2.2) (3.5) (5.7) Balance, December 31, 2018 $ 2.3 $ — $ — $ 2.3 Charges 2.6 0.3 2.0 4.9 Cash payments (3.5) — — (3.5) Non-cash asset write-downs — (0.3) (2.0) (2.3) Balance, December 31, 2019 $ 1.4 $ — $ — $ 1.4 On February 15, 2016, our Board of Directors approved a restructuring plan designed to repurpose several of our production facilities in support of growing high-value proprietary products and to realign operational and commercial activities to meet the needs of our new market-focused commercial organization. During 2018, we recorded $0.3 million in additional charges related to this restructuring plan. Our remaining restructuring obligations related to our 2016 restructuring plan as of December 31, 2019 were $0.1 million. Other Items During 2019, we recorded a charge of $1.0 million as a result of the continued devaluation of Argentina’s currency. During 2018, we recorded a charge of $1.1 million related to the classification of Argentina’s economy as highly inflationary under U.S. GAAP as of July 1, 2018. During 2019, we recognized a tax recovery of $4.7 million related to previously-paid international excise taxes, following a favorable court ruling. On February 17, 2016, the Venezuelan government announced a devaluation of the Bolivar, from the previously-prevailing official exchange rate of 6.3 Bolivars to USD to 10.0 Bolivars to USD, and streamlined the previous three-tiered currency exchange mechanism into a dual currency exchange mechanism. In 2017, as a result of the continued deterioration of conditions in Venezuela as well as our continued reduced access to USD settlement controlled by the Venezuelan government, we recorded a charge of $11.1 million related to the deconsolidation of our Venezuelan subsidiary, following our determination that we no longer met the U.S. GAAP criteria for control of that subsidiary. This charge included the derecognition of the carrying amounts of our Venezuelan subsidiary’s assets and liabilities, as well as the write-off of our investment in our Venezuelan subsidiary, related unrealized translation adjustments and the elimination of intercompany accounts. As of April 1, 2017, our consolidated financial statements exclude the results of our Venezuelan subsidiary. During 2019, 2018 and 2017, we recorded development income of $0.9 million, $0.9 million and $1.5 million, respectively, related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of the SmartDose technology platform within a specific therapeutic area. Please refer to Note 3, Revenue , for additional information. In addition, during 2017, we recorded income of $9.1 million attributable to the reimbursement of certain costs related to a technology that we subsequently licensed to a third party. The license of technology to the third party may result in additional income in the future, contingent on commercialization of the related product. Contingent consideration represents changes in the fair value of the SmartDose contingent consideration. Please refer to Note 12, Fair Value Measurements , for additional details. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAs a global organization, we and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. During 2019, the statute of limitations for the 2015 U.S. federal tax year lapsed, leaving tax years 2016 through 2019 open to examination. For U.S. state and local jurisdictions, tax years 2015 through 2019 are open to examination. We are also subject to examination in various foreign jurisdictions for tax years 2012 through 2019. A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows: ($ in millions) 2019 2018 Balance at January 1 $ 3.9 $ 3.2 Increase due to current year position 1.6 0.8 Increase due to prior year position — 0.4 Reduction for expiration of statute of limitations/audits (0.5) (0.5) Balance at December 31 $ 5.0 $ 3.9 In addition, we had balances in accrued liabilities for interest and penalties of $0.2 million at both December 31, 2019 and 2018. As of December 31, 2019, we had $5.0 million of total gross unrecognized tax benefits, which, if recognized, would favorably impact the effective income tax rate. It is reasonably possible that, due to the expiration of statutes and the closing of tax audits, the amount of gross unrecognized tax benefits may be reduced by approximately $0.5 million during the next twelve months, which would favorably impact our effective tax rate. The components of income before income taxes are: ($ in millions) 2019 2018 2017 U.S. operations $ 161.2 $ 132.9 $ 96.5 International operations 130.6 107.8 125.9 Total income before income taxes $ 291.8 $ 240.7 $ 222.4 The related provision for income taxes consists of: ($ in millions) 2019 2018 2017 Current: Federal $ 10.8 $ 2.1 $ 2.1 State 2.4 3.3 0.1 International 30.5 35.1 37.0 Current income tax provision 43.7 40.5 39.2 Deferred: Federal and state 10.3 1.4 41.8 International 5.0 (0.5) (0.1) Deferred income tax provision 15.3 0.9 41.7 Income tax expense $ 59.0 $ 41.4 $ 80.9 Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of our deferred tax assets and liabilities at December 31 are : ($ in millions) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 21.9 $ 18.4 Tax credit carryforwards 2.8 10.5 Pension and deferred compensation 25.6 27.2 Other 9.2 11.4 Valuation allowance (15.9) (16.0) Total deferred tax assets 43.6 51.5 Deferred tax liabilities: Accelerated depreciation 37.9 31.3 Tax on undistributed earnings of subsidiaries 6.3 6.6 Other 0.9 2.0 Total deferred tax liabilities 45.1 39.9 Net deferred tax (liability) asset $ (1.5) $ 11.6 A reconciliation of the U.S. federal corporate tax rate to our effective consolidated tax rate on income before income taxes follows: 2019 2018 2017 U.S. federal corporate tax rate 21.0 % 21.0 % 35.0 % Tax on international operations other than U.S. tax rate 2.7 4.8 (4.5) Reversal of prior valuation allowance — — (0.5) Adjustments to reserves for unrecognized tax benefits 0.4 0.2 (0.2) U.S. tax on international earnings, net of foreign tax credits 0.4 (0.2) 0.1 State income taxes, net of federal tax effect 1.4 2.3 0.2 U.S. research and development credits (1.0) (0.9) (0.8) Excess tax benefits on share-based payments (3.5) (6.0) (14.1) Impact of 2017 Tax Act — (2.9) 15.9 Tax on undistributed earnings of subsidiaries (0.2) (1.3) 4.4 Venezuela deconsolidation — — 1.7 Other business credits and Section 199 Deduction — — (0.6) Other (1.0) 0.2 (0.2) Effective tax rate 20.2 % 17.2 % 36.4 % During 2019, we recorded a tax benefit of $0.3 million due to the impact of federal law changes enacted during the year, as well as a tax benefit of $10.3 million associated with stock-based compensation. During 2018, we recorded a net tax benefit of $2.5 million for the estimated impact of the 2017 Tax Act and a tax benefit of $14.3 million associated with stock-based compensation. During 2017, we recorded a discrete tax charge of $48.8 million related to the 2017 Tax Act and the impact of changes in enacted international tax rates on previously-recorded deferred tax asset and liability balances, as well as a tax benefit of $33.1 million associated with stock-based compensation. The 2017 Tax Act, which was signed into law on December 22, 2017, has resulted in significant changes to the U.S. corporate income tax system. These changes include, but are not limited to, a federal statutory rate reduction from 35.0% to 21.0% effective for tax years beginning after December 31, 2017. Changes in tax rates and tax laws are accounted for in the period of enactment. As a result, during the year ended December 31, 2017, we recorded a discrete charge based upon our understanding of the 2017 Tax Act and the guidance available as of the date of that filing. A significant portion of the discrete tax liability was attributable to a one-time mandatory deemed repatriation tax of post-1986 undistributed foreign subsidiary earnings and profits (the “Transition Toll Tax”) of $27.9 million. Additionally, due to the reduction of the federal statutory rate, we revalued our deferred assets and liabilities and recorded a provisional $11.4 million federal tax expense, net of state tax impact, during the year ended December 31, 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. We recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in our consolidated financial statements for the year ended December 31, 2017. As of December 31, 2018, we finalized our calculations and tax positions used in our analysis of the impact of the 2017 Tax Act in consideration of proposed regulations and other guidance issued during 2018. As a result, we recorded a $7.5 million tax benefit related to a reduction of the Transition Toll Tax and an incremental tax expense of $4.0 million related to other adjustments. The final measurement reduced the Transition Toll Tax expense to $20.4 million from $27.9 million. The net impact of these adjustments resulted in a benefit of 1.45% to the 2018 effective tax rate. The 2017 Tax Act created a provision known as global intangible low-tax income (“GILTI”) that imposes a U.S. tax on certain earnings of controlled foreign subsidiaries. We made an accounting policy election to reflect GILTI taxes, if any, as a current income tax expense in the period incurred. As of December 31, 2019, we have fully utilized all of our U.S. federal net operating loss carryforwards. State operating loss carryforwards of $226.9 million created a deferred tax asset of $15.5 million, while foreign operating loss carryforwards of $49.4 million created a deferred tax asset of $6.4 million. Management estimates that certain state and foreign operating loss carryforwards are unlikely to be utilized and the associated deferred tax assets have been fully reserved. State loss carryforwards expire as follows: $15.4 million in 2020 and $211.5 million thereafter. Foreign loss carryforwards will begin to expire in 2027, while $48.7 million of the total $49.4 million will not expire. As of December 31, 2019, we have utilized all available foreign tax credit carryforwards against the Transition Toll Tax. During 2019, we utilized all of our remaining U.S. federal research and development credit carryforwards. The $2.0 million of state research and development credits expire as follows: $0.5 million expire in 2023, $0.5 million expire in 2024, and $1.0 million expire after 2024. In response to the 2017 Tax Act, we reevaluated our position regarding permanent reinvestment of foreign subsidiary earnings and profits through 2017 (with the exception of China and Mexico) and decided that those profits were no longer permanently reinvested. As of January 1, 2018, we reasserted indefinite reinvestment related to all post-2017 unremitted earnings in all of our foreign subsidiaries. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is de minimis, and that position has not changed subsequent to the one-time transition tax under the 2017 Tax Act, except as noted above. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of approximately $214.2 million of undistributed earnings from foreign subsidiaries to the U.S., as those earnings continue to be permanently reinvested. Further, it is impracticable for us to estimate any future tax costs for any unrecognized deferred tax liabilities associated with our indefinite reinvestment assertion, because the actual tax liability, if any, would be dependent on complex analysis and calculations considering various tax laws, exchange rates, circumstances existing when there is a repatriation, sale or liquidation, or other factors. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At December 31, 2019, we were obligated under various operating lease agreements. Please refer to Note 6, Leases , for additional details. At December 31, 2019, we were obligated under various defined benefit pension plans in the U.S. and other countries that cover employees who meet eligibility requirements. Please refer to Note 15, Benefit Plans , for additional details. At December 31, 2019, our outstanding unconditional contractual commitments, including for the purchase of raw materials and finished goods, amounted to $249.1 million, of which $61.3 million is due to be paid in 2020. We have letters of credit totaling $2.5 million supporting the reimbursement of workers’ compensation and other claims paid on our behalf by insurance carriers. Our accrual for insurance obligations was $3.2 million at December 31, 2019, of which $0.9 million is in excess of our deductible and, therefore, is reimbursable by the insurance company. Our SmartDose contingent consideration is payable to the selling shareholders based upon a percentage of product sales over the life of the underlying product patent, with no cap on total payments. Given the length of the earnout period and the uncertainty in forecasted product sales, we do not believe it is meaningful to estimate the upper end of the range over the entire period. However, our estimated probable range which could become payable over the next five |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment and drug delivery products, along with analytical lab services and integrated solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that we consider not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. The following table presents information about our reportable segments, reconciled to consolidated totals: ($ in millions) 2019 2018 2017 Net sales: Proprietary Products $ 1,398.6 $ 1,308.6 $ 1,236.9 Contract-Manufactured Products 441.5 409.1 362.5 Intersegment sales elimination (0.2) (0.3) (0.3) Consolidated net sales $ 1,839.9 $ 1,717.4 $ 1,599.1 The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments. We do not have any customers accounting for greater than 10% of consolidated net sales. The following table presents net sales and property, plant and equipment, net, by the country in which the legal subsidiary is domiciled and assets are located: Net Sales Property, Plant and Equipment, Net ($ in millions) 2019 2018 2017 2019 2018 2017 United States $ 814.7 $ 766.1 $ 734.6 $ 337.1 $ 315.3 $ 323.8 Germany 236.3 235.9 226.4 95.4 99.3 108.8 Ireland 173.8 138.1 100.5 162.0 165.4 173.2 France 150.6 145.0 142.6 53.3 50.1 51.6 Other European countries 251.1 230.5 201.0 59.1 59.5 63.2 Other 213.4 201.8 194.0 132.4 132.4 134.4 $ 1,839.9 $ 1,717.4 $ 1,599.1 $ 839.3 $ 822.0 $ 855.0 The following tables provide summarized financial information for our segments: ($ in millions) Proprietary Products Contract-Manufactured Products Corporate/ Elimination/ Unallocated Items Consolidated 2019 Net sales $ 1,398.6 $ 441.5 $ (0.2) $ 1,839.9 Operating profit $ 313.6 $ 49.1 $ (66.1) $ 296.6 Interest expense — — 8.5 8.5 Interest income — — (3.8) (3.8) Other nonoperating expense (income) — — 0.1 0.1 Income before income taxes $ 313.6 $ 49.1 $ (70.9) $ 291.8 Segment assets $ 1,480.6 $ 386.0 $ 474.8 $ 2,341.4 Capital expenditures 91.2 37.2 (2.0) 126.4 Depreciation and amortization expense 82.2 17.9 3.3 103.4 2018 Net sales $ 1,308.6 $ 409.1 $ (0.3) $ 1,717.4 Operating profit $ 266.4 $ 44.3 $ (70.4) $ 240.3 Interest expense — — 8.4 8.4 Interest income — — (2.1) (2.1) Other nonoperating income — — (6.7) (6.7) Income before income taxes $ 266.4 $ 44.3 $ (70.0) $ 240.7 Segment assets $ 1,342.3 $ 301.4 $ 335.2 $ 1,978.9 Capital expenditures 77.0 20.7 7.0 104.7 Depreciation and amortization expense 83.9 17.2 3.3 104.4 2017 Net sales $ 1,236.9 $ 362.5 $ (0.3) $ 1,599.1 Operating profit $ 243.8 $ 48.3 $ (66.3) $ 225.8 Interest expense — — 7.8 7.8 Interest income — — (1.3) (1.3) Other nonoperating income — — (3.1) (3.1) Income before income taxes $ 243.8 $ 48.3 $ (69.7) $ 222.4 Segment assets $ 1,321.3 $ 286.4 $ 255.1 $ 1,862.8 Capital expenditures 107.2 18.6 5.0 130.8 Depreciation and amortization expense 77.1 16.4 3.2 96.7 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts ($ in millions) Balance at beginning of period Charged to costs and expenses Deductions (1) Balance at end of period For the year ended December 31, 2019 Allowances deducted from assets: Deferred tax asset valuation allowance $ 16.0 $ — $ (0.1) $ 15.9 Allowance for doubtful accounts 2.0 0.1 (1.6) 0.5 Total allowances deducted from assets $ 18.0 $ 0.1 $ (1.7) $ 16.4 For the year ended December 31, 2018 Allowances deducted from assets: Deferred tax asset valuation allowance $ 20.9 $ (3.0) $ (1.9) $ 16.0 Allowance for doubtful accounts 0.5 0.7 0.8 2.0 Total allowances deducted from assets $ 21.4 $ (2.3) $ (1.1) $ 18.0 For the year ended December 31, 2017 Allowances deducted from assets: Deferred tax asset valuation allowance $ 18.7 $ 2.5 $ (0.3) $ 20.9 Allowance for doubtful accounts 0.4 (0.2) 0.3 0.5 Total allowances deducted from assets $ 19.1 $ 2.3 $ — $ 21.4 __________________________ |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of West after the elimination of intercompany transactions. We have no participation or other rights in variable interest entities. In April 2019, we acquired the business of our distributor in South Korea for $18.9 million. As a result of the acquisition, we recorded inventories, property, plant and equipment, goodwill and a customer relationships intangible asset of $4.5 million, $0.6 million, $2.6 million and $11.2 million, respectively. The goodwill was recorded within our Proprietary Products reportable segment. The results of this acquisition have been included in our consolidated financial statements since the acquisition date. As of April 1, 2017, our consolidated financial statements exclude the results of our Venezuelan subsidiary. Please refer to Note 16, Other (Income) Expense |
Use of Estimates | Use of Estimates: The financial statements are prepared in conformity with U.S. GAAP. These principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies in the financial statements. Actual amounts realized may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with maturities of three months or less at the time of purchase. |
Accounts Receivable | Accounts Receivable: Our accounts receivable balance was net of an allowance for doubtful accounts of $0.5 million and $2.0 million at December 31, 2019 and 2018, respectively. We record the allowance based on a specific identification methodology. |
Inventories | Inventories: Inventories are valued at the lower of cost (on a first-in, first-out basis) and net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment : Property, plant and equipment assets are carried at cost. Maintenance and minor repairs and renewals are charged to expense as incurred. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and immediately expensed for preliminary project activities or post-implementation activities. Upon sale or retirement of depreciable assets, costs and related accumulated depreciation are eliminated, and gains or losses are recognized in other (income) expense. Depreciation and amortization are computed principally using the straight-line method over the estimated useful lives of the assets, or the remaining term of the lease, if shorter. |
Leases | Leases: Operating lease right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Operating lease right-of-use assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease liabilities are initially measured at the present value of the unpaid lease payments at the lease commencement date. We had no finance leases as of December 31, 2019. Please refer to Note 6, Leases , for additional information. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets : Long-lived assets, including property, plant and equipment and operating lease right-of-use assets, are tested for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. An asset is considered impaired if the carrying value of the asset exceeds the sum of the future expected undiscounted cash flows to be derived from the asset. Once an asset is considered impaired, an impairment loss is recorded within other (income) expense for the difference between the asset’s carrying value and its fair value. For assets held and used in the business, management determines fair value using estimated future cash flows to be derived from the asset, discounted to a net present value using an appropriate discount rate. For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs. |
Impairment of Goodwill and Other Intangible Assets | Impairment of Goodwill and Other Intangible Assets: Goodwill is tested for impairment at least annually, following the completion of our annual budget and long-range planning process, or whenever circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the same as, or one level below, our operating segments. A goodwill impairment charge represents the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Accounting guidance also allows entities to first assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance, to determine whether it is necessary to perform the quantitative goodwill impairment test. We elected to follow this guidance for our 2017, 2018, and 2019 annual impairment tests. Based upon our assessment, we determined that it was not more likely than not that the fair value of each of our reporting units was less than its carrying amount and determined that it was not necessary to perform the quantitative goodwill impairment tests in 2017, 2018, and 2019. Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives of 5 to 25 years, and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable. |
Employee Benefits | Employee Benefits: The measurement of the obligations under our defined benefit pension and postretirement medical plans are subject to a number of assumptions. These include the rate of return on plan assets (for funded plans) and the rate at which the future obligations are discounted to present value. For our funded plans, we consider the current and expected asset allocations of our plan assets, as well as historical and expected rates of return, in estimating the long-term rate of return on plan assets. U.S. GAAP requires the recognition of an asset or liability for the funded status of a defined benefit postretirement plan, as measured by the difference between the fair value of plan assets, if any, and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement plan, such as a retiree health plan, the benefit obligation is the accumulated postretirement benefit obligation. Please refer to Note 15, Benefit Plans |
Financial Instruments | Financial Instruments : All derivatives are recognized as either assets or liabilities in the balance sheet and recorded at their fair value. For a derivative designated as hedging the exposure to variable cash flows of a forecasted transaction (referred to as a cash flow hedge), the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (“OCI”), net of tax, and subsequently reclassified into earnings when the forecasted transaction affects earnings. For a derivative designated as hedging the exposure to changes in the fair value of a recognized asset or liability or a firm commitment (referred to as a fair value hedge), the derivative’s gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item. For a derivative designated as hedging the foreign currency exposure of a net investment in a foreign operation, the gain or loss is reported in OCI, net of tax, as part of the cumulative translation adjustment. The ineffective portion of any derivative used in a hedging transaction is recognized immediately into earnings. Derivative financial instruments that are not designated as hedges are also recorded at fair value, with the change in fair value recognized immediately into earnings. We do not purchase or hold any derivative financial instrument for investment or trading purposes. |
Foreign Currency Translation | Foreign Currency Translation : Foreign currency transaction gains and losses are recognized in the determination of net income. Foreign currency translation adjustments of subsidiaries and affiliates operating outside of the U.S. are accumulated in other comprehensive loss, a separate component of equity. |
Revenue Recognition | Revenue Recognition: Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with ASC 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service. Some customers receive pricing rebates upon attaining established sales volumes. We record rebate costs when sales occur based on our assessment of the likelihood that the required volumes will be attained. We also maintain an allowance for product returns, as we believe that we are able to reasonably estimate the amount of returns based on our substantial historical experience. Please refer to Note 3, Revenue |
Shipping and Handling Costs | Shipping and Handling Costs: Shipping and handling costs are included in cost of goods and services sold. Shipping and handling costs billed to customers in connection with the sale are included in net sales. |
Research and Development | Research and Development: Research and development expenditures are for the creation, engineering and application of new or improved products and processes. Expenditures include primarily salaries and outside services for those directly involved in research and development activities and are expensed as incurred. |
Environmental Remediation and Compliance Costs | Environmental Remediation and Compliance Costs: Environmental remediation costs are accrued when such costs are probable and reasonable estimates are determinable. Cost estimates include investigation, cleanup and monitoring activities; such estimates are adjusted, if necessary, based on additional findings. Environmental compliance costs are expensed as incurred as part of normal operations. |
Litigation | Litigation : From time to time, we are involved in legal proceedings, investigations and claims generally incidental to our normal business activities. In accordance with U.S. GAAP, we accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These estimates are based on an analysis made by internal and external legal counsel considering information known at the time. Legal costs in connection with loss contingencies are expensed as incurred. |
Income Taxes | Income Taxes: Deferred income taxes are recognized by applying enacted statutory tax rates to tax loss carryforwards and temporary differences between the tax basis and financial statement carrying values of our assets and liabilities. The enacted statutory tax rate applied is based on the rate expected to be applicable at the time of the forecasted utilization of the loss carryforward or reversal of the temporary difference. Valuation allowances on deferred tax assets are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The realizability of deferred tax assets is subject to our estimates of future taxable income, generally at the respective subsidiary company and the country level. In response to the 2017 Tax Act, we reevaluated our position regarding permanent reinvestment of foreign subsidiary earnings and profits through 2017 (with the exception of China and Mexico) and decided that those profits were no longer permanently reinvested. As of January 1, 2018, we reasserted indefinite reinvestment related to all post-2017 unremitted earnings in all of our foreign subsidiaries. Please refer to Note 17, Income Taxes , for additional information. We recognize interest costs related to income taxes in interest expense and penalties within other (income) expense. The tax law ordering approach is used for purposes of determining whether an excess tax benefit has been realized during the year. |
Stock-based Compensation | Stock-Based Compensation : Under the fair value provisions of U.S. GAAP, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the grant date, we use the Black-Scholes valuation model. Please refer to Note 14, Stock-Based Compensation , for a more detailed discussion of our stock-based compensation plans. |
Net Income Per Share | Net Income Per Share : Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income per share assuming dilution considers the dilutive effect of outstanding stock options and other stock awards based on the treasury stock method. The treasury stock method assumes the use of exercise proceeds to repurchase common stock at the average fair market value in the period. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Inventories | The following is a summary of inventories at December 31: ($ in millions) 2019 2018 Raw materials $ 100.9 $ 90.4 Work in process 37.4 42.2 Finished goods 97.4 81.9 $ 235.7 $ 214.5 |
Revenue Revenue (Tables)
Revenue Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents the approximate percentage of our net sales by market group: 2019 2018 Biologics 25 % 21 % Generics 20 % 21 % Pharma 31 % 34 % Contract-Manufactured Products 24 % 24 % 100 % 100 % The following table presents the approximate percentage of our net sales by product category: 2019 2018 High-Value Components 42 % 41 % Standard Packaging 29 % 32 % Delivery Devices 5 % 3 % Contract-Manufactured Products 24 % 24 % 100 % 100 % The following table presents the approximate percentage of our net sales by geographic location: 2019 2018 Americas 48 % 48 % Europe, Middle East, Africa 44 % 44 % Asia Pacific 8 % 8 % 100 % 100 % |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes our contract assets and liabilities, excluding contract assets included in accounts receivable, net: ($ in millions) Contract assets, December 31, 2018 $ 9.1 Contract assets, December 31, 2019 9.8 Change in contract assets - increase (decrease) $ 0.7 Deferred income, December 31, 2018 $ (33.4) Deferred income, December 31, 2019 (34.9) Change in deferred income - (increase) decrease $ (1.5) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconcilliation of Basic to Diluted Net Income Per Share | The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share: (in millions) 2019 2018 2017 Net income $ 241.7 $ 206.9 $ 150.7 Weighted average common shares outstanding 74.0 73.9 73.9 Dilutive effect of equity awards, based on the treasury stock method 1.4 1.5 1.9 Weighted average shares assuming dilution 75.4 75.4 75.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of gross property, plant and equipment at December 31 is presented in the following table: ($ in millions) Expected useful lives (years) 2019 2018 Land $ 22.1 $ 20.9 Buildings and improvements 15-35 572.9 569.1 Machinery and equipment 5-12 817.0 806.7 Molds and dies 4-7 123.8 115.8 Computer hardware and software 3-10 155.6 151.1 Construction in progress 128.7 89.1 $ 1,820.1 $ 1,752.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Lease, Cost | The components of lease expense were as follows: ($ in millions) 2019 Operating lease cost $ 12.9 Short-term lease cost 0.8 Variable lease cost 3.3 Total lease cost $ 17.0 | |
lessee, lease Cash Flow and Supplemental information | Supplemental information related to leases was as follows: ($ in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.5 Right-of-use assets obtained in exchange for new operating lease liabilities 9.1 | |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2019 were as follows: ($ in millions) Operating Year Leases 2020 $ 12.1 2021 10.4 2022 8.6 2023 7.8 2024 7.3 Thereafter 41.8 88.0 Less: imputed lease interest (16.0) Total lease liabilities $ 72.0 | |
Schedule of Future Minimum Rental Payments for Operating Leases | Maturities of future minimum rental payments under non-cancelable operating leases as of December 31, 2018 were as follows: ($ in millions) Operating Year Leases 2019 $ 13.0 2020 10.5 2021 7.8 2022 6.9 2023 5.5 Thereafter 37.8 Total $ 81.5 |
Affiliated Companies (Tables)
Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | At December 31, 2019, the following affiliated companies were accounted for under the equity method: Location Ownership interest The West Company Mexico, S.A. de C.V. Mexico 49% Aluplast S.A. de C.V. Mexico 49% Pharma Tap S.A. de C.V. Mexico 49% Pharma Rubber S.A. de C.V. Mexico 49% I&W Pharma Group LLC United States 49% Daikyo Japan 49% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment were as follows: ($ in millions) Proprietary Products Contract-Manufactured Products Total Balance, December 31, 2017 $ 77.6 $ 30.1 $ 107.7 Foreign currency translation (1.6) (0.3) (1.9) Balance, December 31, 2018 76.0 29.8 105.8 Goodwill recorded due to acquisition 2.6 — 2.6 Foreign currency translation (0.5) (0.1) (0.6) Balance, December 31, 2019 $ 78.1 $ 29.7 $ 107.8 |
Schedule of Intangible Assets by Major Class | Intangible assets and accumulated amortization as of December 31 were as follows: 2019 2018 ($ in millions) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Patents and licensing $ 21.5 $ (16.0) $ 5.5 $ 19.6 $ (15.1) $ 4.5 Technology 3.3 (1.5) 1.8 3.3 (1.2) 2.1 Trademarks 2.0 (1.8) 0.2 2.0 (1.8) 0.2 Customer relationships 40.3 (21.6) 18.7 29.3 (20.0) 9.3 Customer contracts 11.0 (7.4) 3.6 11.0 (6.8) 4.2 $ 78.1 $ (48.3) $ 29.8 $ 65.2 $ (44.9) $ 20.3 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Liabilities [Abstract] | |
Other current liabilities | ($ in millions) 2019 2018 Deferred income $ 27.5 $ 25.5 Dividends payable 11.8 11.3 Accrued commissions, rebates and royalties 9.7 5.7 Accrued retirement plans (excluding pension) 7.9 2.3 Accrued taxes other than income 6.5 5.5 Accrued professional services 5.9 4.9 Accrued interest 3.3 3.4 Restructuring obligations 1.5 3.3 Other 17.2 14.7 Total other current liabilities $ 91.3 $ 76.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations , Net of Current Maturities | The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities, at December 31. The interest rates shown in parentheses are as of December 31, 2019. ($ in millions) 2019 2018 Note payable, due December 31, 2019 $ — $ 0.1 Credit Facility, due October 15, 2020 — 28.6 Term Loan, due December 31, 2024 (2.78%) 90.0 — Series A notes, due July 5, 2022 (3.67%) 42.0 42.0 Series B notes, due July 5, 2024 (3.82%) 53.0 53.0 Series C notes, due July 5, 2027 (4.02%) 73.0 73.0 258.0 196.7 Less: unamortized debt issuance costs 0.7 0.6 Total debt 257.3 196.1 Less: current portion of long-term debt 2.3 0.1 Long-term debt, net $ 255.0 $ 196.0 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Contracts | As of December 31, 2019, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD Euro USD 38.4 — 33.6 Yen 6,550.4 37.8 20.6 SGD 29.4 16.5 4.6 |
Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and earnings | The following table summarizes the effects of derivative instruments designated as fair value hedges in our consolidated statements of income for the years ended December 31: Amount of Gain Recognized in Income Location on Statement of Income ($ in millions) 2019 2018 Fair Value Hedges: Foreign currency hedge contracts $ (6.9) $ (6.3) Other (income) expense Total $ (6.9) $ (6.3) The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on OCI and earnings, net of tax, for the years ended December 31: Amount of Gain (Loss) Recognized in OCI Amount of (Gain) Loss Reclassified from Accumulated OCI into Income Location of (Gain) Loss Reclassified from Accumulated OCI into Income ($ in millions) 2019 2018 2019 2018 Fair Value Hedges: Foreign currency hedge contracts $ 4.8 $ — $ (4.6) $ — Other (income) expense Total $ 4.8 $ — $ (4.6) $ — Cash Flow Hedges: Foreign currency hedge contracts $ 0.8 $ 0.4 $ (0.9) $ 0.6 Net sales Foreign currency hedge contracts (0.2) 2.2 (0.6) 0.3 Cost of goods and services sold Forward treasury locks — — 0.3 0.3 Interest expense Total $ 0.6 $ 2.6 $ (1.2) $ 1.2 Net Investment Hedges: Foreign currency-denominated debt $ 0.6 $ 0.8 $ — $ — Other (income) expense Cross-currency swap (1.1) — — — Other (income) expense Total $ (0.5) $ 0.8 $ — $ — The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our consolidated statements of income for the years ended December 31: ($ in millions) 2019 2018 Net sales $ (0.9) $ 0.6 Cost of goods and services sold (0.6) 0.3 Other (income) expense (4.6) — Interest expense 0.3 0.3 |
Derivatives Not Designated as Hedging Instruments | The following table summarizes the effects of derivative instruments not designated as hedges in our consolidated statements of income for the years ended December 31: Amount of Loss (Gain) Recognized in Income Location on Statement of Income ($ in millions) 2019 2018 Commodity call options $ 0.4 $ (0.1) Cost of goods and services sold Total $ 0.4 $ (0.1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | The following tables present the assets and liabilities recorded at fair value on a recurring basis: Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 11.3 $ 11.3 $ — $ — Foreign currency contracts 7.7 — 7.7 — Commodity call options 0.1 — 0.1 — $ 19.1 $ 11.3 $ 7.8 $ — Liabilities: Contingent consideration $ 3.3 $ — $ — $ 3.3 Deferred compensation liabilities 12.8 12.8 — — Cross-currency swap 1.4 — 1.4 — Foreign currency contracts 0.3 — 0.3 — $ 17.8 $ 12.8 $ 1.7 $ 3.3 Balance at Basis of Fair Value Measurements ($ in millions) December 31, Level 1 Level 2 Level 3 Assets: Deferred compensation assets $ 8.7 $ 8.7 $ — $ — Foreign currency contracts 6.5 — 6.5 — $ 15.2 $ 8.7 $ 6.5 $ — Liabilities: Contingent consideration $ 1.7 $ — $ — $ 1.7 Deferred compensation liabilities 9.8 9.8 — — Foreign currency contracts 0.2 — 0.2 — $ 11.7 $ 9.8 $ 0.2 $ 1.7 |
Summary of Changes in Level 3 Fair Value Measurements | The following table provides a summary of changes in our Level 3 fair value measurements: ($ in millions) Balance, December 31, 2017 $ 4.9 Decrease in fair value recorded in earnings (2.6) Payments (0.6) Balance, December 31, 2018 1.7 Increase in fair value recorded in earnings 2.1 Payments (0.5) Balance, December 31, 2019 $ 3.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table presents the changes in the components of accumulated other comprehensive loss, net of tax: ($ in millions) (Losses) gains on derivatives Unrealized gains on investment securities Defined benefit pension and other postretirement plans Foreign currency translation Total Balance, December 31, 2017 $ (4.2) $ 0.5 $ (39.0) $ (74.6) $ (117.3) Other comprehensive income (loss) before reclassifications 2.6 (0.1) (1.0) (39.2) (37.7) Amounts reclassified out 1.2 — (0.4) — 0.8 Other comprehensive income (loss), net of tax 3.8 (0.1) (1.4) (39.2) (36.9) Balance, December 31, 2018 (0.4) 0.4 (40.4) (113.8) (154.2) Other comprehensive income (loss) before reclassifications 5.4 — (1.9) 4.9 8.4 Amounts reclassified out (5.8) — 2.0 — (3.8) Other comprehensive (loss) income, net of tax (0.4) — 0.1 4.9 4.6 Balance, December 31, 2019 $ (0.8) $ 0.4 $ (40.3) $ (108.9) $ (149.6) |
Reclassification out of Accumulated Other Comprehensive Loss | A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions): Detail of components 2019 2018 Location on Statement of Income Gains (losses) on derivatives: Foreign currency contracts $ 1.0 $ (0.7) Net sales Foreign currency contracts 1.0 (0.5) Cost of goods and services sold Foreign currency contracts 6.9 — Other expense Forward treasury locks (0.5) (0.4) Interest expense Total before tax 8.4 (1.6) Tax expense (2.6) 0.4 Net of tax $ 5.8 $ (1.2) Amortization of defined benefit pension and other postretirement plans: Prior service credit 0.6 2.0 (a) Actuarial gains (losses) 0.2 (1.4) (a) Settlements (3.5) — (a) Total before tax (2.7) 0.6 Tax expense 0.7 (0.2) Net of tax $ (2.0) $ 0.4 Total reclassifications for the period, net of tax $ 3.8 $ (0.8) (a) These components are included in the computation of net periodic benefit cost. Please refer to Note 15, Benefit Plans , for additional details. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Allocation of Share-based Compensation Costs by Plan | The following table summarizes our stock-based compensation expense recorded within selling, general and administrative expenses for the years ended December 31: ($ in millions) 2019 2018 2017 Stock option and appreciation rights $ 9.1 $ 8.6 $ 7.8 Performance share units, stock-settled 9.5 2.5 4.1 Performance share units, cash-settled 0.1 — 0.1 Performance share units, dividend equivalents 0.2 0.1 0.1 Employee stock purchase plan 0.9 0.9 0.8 Deferred compensation plans and restricted share awards 4.6 3.0 3.2 Total stock-based compensation expense $ 24.4 $ 15.1 $ 16.1 |
Schedule of Stock Options Activity | The following table summarizes changes in outstanding options: (in millions, except per share data) 2019 2018 2017 Options outstanding, January 1 3.0 3.5 4.5 Granted 0.3 0.5 0.5 Exercised (0.6) (1.0) (1.5) Forfeited — — — Options outstanding, December 31 2.7 3.0 3.5 Options exercisable, December 31 1.6 1.7 1.9 Weighted Average Exercise Price 2019 2018 2017 Options outstanding, January 1 $ 58.93 $ 48.76 $ 38.11 Granted 103.40 90.36 84.09 Exercised 46.42 35.95 26.15 Forfeited 92.71 75.32 60.92 Options outstanding, December 31 $ 67.02 $ 58.93 $ 48.76 Options exercisable, December 31 $ 53.12 $ 45.32 $ 35.44 |
Schedule of Stock Appreciation Rights Award Activity | The following table summarizes changes in outstanding SARs: 2019 2018 2017 SARs outstanding, January 1 39,819 51,368 116,087 Granted 3,364 3,480 2,792 Exercised (6,790) (14,629) (67,511) Forfeited (400) (400) — SARs outstanding, December 31 35,993 39,819 51,368 SARs exercisable, December 31 27,781 30,285 39,769 Weighted Average Exercise Price 2019 2018 2017 SARs outstanding, January 1 $ 46.48 $ 38.55 $ 31.13 Granted 102.51 89.64 83.47 Exercised 42.08 28.45 27.65 Forfeited 63.43 63.43 — SARs outstanding, December 31 $ 52.36 $ 46.48 $ 38.55 SARs exercisable, December 31 $ 40.73 $ 36.91 $ 30.77 |
Schedule of Nonvested Performance-based Share Activity | The following table summarizes changes in our outstanding stock-settled PSU awards: 2019 2018 2017 Non-vested stock-settled PSU awards, January 1 296,037 341,944 378,062 Granted at target level 84,309 102,307 92,045 Adjustments above/(below) target (50,556) (2,284) (11,369) Vested and converted (48,964) (121,984) (116,684) Forfeited (16,204) (23,946) (110) Non-vested stock-settled PSU awards, December 31 264,622 296,037 341,944 Weighted Average Grant Date Fair Value 2019 2018 2017 Non-vested stock-settled PSU awards, January 1 $ 76.84 $ 64.38 $ 54.47 Granted at target level 103.40 90.45 84.01 Adjustments above/(below) target 83.89 33.86 42.85 Vested and converted 102.51 93.00 50.06 Forfeited 69.09 68.65 73.64 Non-vested stock-settled PSU awards, December 31 $ 66.03 $ 76.84 $ 64.38 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes changes in our outstanding cash-settled PSU awards: 2019 2018 2017 Non-vested cash-settled PSU awards, January 1 1,592 1,972 2,451 Granted at target level 806 560 598 Adjustments above/(below) target (206) (30) (107) Vested and converted (211) (910) (970) Forfeited — — — Non-vested cash-settled PSU awards, December 31 1,981 1,592 1,972 Weighted Average Grant Date Fair Value 2019 2018 2017 Non-vested cash-settled PSU awards, January 1 $ 79.48 $ 92.25 $ 25.28 Granted at target level 102.51 89.64 83.47 Adjustments above/(below) target 56.95 41.53 66.61 Vested and converted 102.51 93.00 86.93 Forfeited — — — Non-vested cash-settled PSU awards, December 31 $ 150.33 $ 79.48 $ 92.25 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost and other amounts recognized in OCI were as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2017 2019 2018 2017 Net periodic benefit cost: Service cost $ 1.4 $ 10.8 $ 10.4 $ — $ — $ — Interest cost 9.2 9.4 9.8 0.2 0.2 0.3 Expected return on assets (12.0) (15.7) (13.5) — — — Amortization of prior service credit 0.1 (1.3) (1.3) (0.7) (0.7) (0.7) Amortization of actuarial loss (gain) 2.1 3.8 4.9 (2.3) (2.4) (2.6) Settlement effects 3.5 — — — — — Net periodic benefit cost $ 4.3 $ 7.0 $ 10.3 $ (2.8) $ (2.9) $ (3.0) Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: Net loss (gain) arising during period $ 1.5 $ 3.5 $ (9.0) $ 0.1 $ (1.4) $ (1.1) Prior service credit arising during period — 0.3 — — — — Amortization of prior service credit (0.1) 1.3 1.3 0.7 0.7 0.7 Amortization of actuarial (loss) gain (2.1) (3.8) (4.9) 2.3 2.4 2.6 Settlement effects (3.5) — — — — — Foreign currency translation 0.6 (1.2) 2.6 — — — Total recognized in OCI $ (3.6) $ 0.1 $ (10.0) $ 3.1 $ 1.7 $ 2.2 Total recognized in net periodic benefit cost and OCI $ 0.7 $ 7.1 $ 0.3 $ 0.3 $ (1.2) $ (0.8) Net periodic benefit cost by geographic location is as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2017 2019 2018 2017 U.S. plans $ 2.4 $ 4.8 $ 7.3 $ (2.8) $ (2.9) $ (3.0) International plans 1.9 2.2 3.0 — — — Net periodic benefit cost $ 4.3 $ 7.0 $ 10.3 $ (2.8) $ (2.9) $ (3.0) |
Schedule of Changes in Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status | The following table presents the changes in the benefit obligation and the fair value of plan assets, as well as the funded status of the plans: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, January 1 $ (267.0) $ (288.0) $ (6.0) $ (7.1) Service cost (1.4) (10.8) — — Interest cost (9.2) (9.4) (0.2) (0.2) Participants’ contributions (0.3) (0.6) (0.7) (0.6) Actuarial (loss) gain (30.8) 20.4 (0.2) 1.4 Amendments/transfers in — (0.3) — — Benefits/expenses paid 6.8 18.0 0.5 0.5 Settlement effects 15.0 — — — Foreign currency translation (1.0) 3.7 — — Benefit obligation, December 31 $ (287.9) $ (267.0) $ (6.6) $ (6.0) Change in plan assets: Fair value of assets, January 1 $ 214.5 $ 239.5 $ — $ — Actual return on assets 41.3 (8.3) — — Employer contribution 8.0 2.7 (0.2) (0.1) Participants’ contributions 0.3 0.6 0.7 0.6 Benefits/expenses paid (6.3) (18.0) (0.5) (0.5) Settlement effects (15.0) — — — Foreign currency translation 1.3 (2.0) — — Fair value of assets, December 31 $ 244.1 $ 214.5 $ — $ — Funded status at end of year $ (43.8) $ (52.5) $ (6.6) $ (6.0) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the balance sheet were as follows: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Noncurrent assets $ 4.3 $ — $ — $ — Current liabilities (1.5) (1.6) (0.7) (0.7) Noncurrent liabilities (46.6) (50.9) (5.9) (5.3) $ (43.8) $ (52.5) $ (6.6) $ (6.0) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts in accumulated other comprehensive loss, pre-tax, consisted of: Pension benefits Other retirement benefits ($ in millions) 2019 2018 2019 2018 Net actuarial loss (gain) $ 69.4 $ 73.0 $ (7.0) $ (9.4) Prior service cost (credit) 0.8 0.9 (1.0) (1.7) Total $ 70.2 $ 73.9 $ (8.0) $ (11.1) |
Schedule of Expected Benefit Payments | Benefit payments expected to be paid under our defined benefit pension and other retirement benefit plans in the next ten years are as follows: ($ in millions) Domestic International Total 2020 $ 21.0 $ 1.3 $ 22.3 2021 13.5 1.3 14.8 2022 15.0 2.0 17.0 2023 13.7 1.5 15.2 2024 13.5 1.9 15.4 2025 to 2029 60.5 13.3 73.8 $ 137.2 $ 21.3 $ 158.5 |
Schedule of Assumptions Used | Weighted average assumptions used to determine net periodic benefit cost were as follows: Pension benefits Other retirement benefits 2019 2018 2017 2019 2018 2017 Discount rate 2.70 % 2.91 % 3.48 % 4.20 % 3.45 % 3.90 % Rate of compensation increase 2.41 % 4.00 % 4.01 % — — — Long-term rate of return on assets 5.54 % 6.71 % 6.47 % — — — Weighted average assumptions used to determine the benefit obligations were as follows: Pension benefits Other retirement benefits 2019 2018 2019 2018 Discount rate 2.79 % 3.76 % 3.20 % 4.20 % Rate of compensation increase 2.49 % 4.01 % — — |
Schedule of Allocation of Plan Assets | The weighted average asset allocations by asset category for our pension plans, at December 31, were as follows: 2019 2018 Equity securities 33 % 23 % Debt securities 65 % 74 % Other 2 % 3 % 100 % 100 % The following are the U.S. target asset allocations and acceptable allocation ranges: Target allocation Allocation range Equity securities 30% 27% - 33% Debt securities 70% 67% - 73% Other —% 0% - 3% The following tables present the fair value of our pension plan assets, utilizing the fair value hierarchy discussed in Note 12, Fair Value Measurements . In accordance with U.S. GAAP, certain pension plan assets measured at net asset value (“NAV”) have not been classified in the fair value hierarchy. Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2019 Level 1 Level 2 Level 3 Cash $ 2.2 $ 2.2 $ — $ — Equity securities: International mutual funds 15.5 1.3 14.2 — Fixed income securities: Mutual funds 21.7 3.8 17.9 — Pension plan assets in the fair value hierarchy $ 39.4 $ 7.3 $ 32.1 $ — Pension plan assets measured at NAV 204.7 Pension plan assets at fair value $ 244.1 Balance at December 31, Basis of Fair Value Measurements ($ in millions) 2018 Level 1 Level 2 Level 3 Cash $ 1.7 $ 1.7 $ — $ — Equity securities: International mutual funds 17.7 17.7 — — Fixed income securities: Mutual funds 13.9 13.9 — — Pension plan assets in the fair value hierarchy $ 33.3 $ 33.3 $ — $ — Pension plan assets measured at NAV 181.2 Pension plan assets at fair value $ 214.5 |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income and Expense | Other (income) expense consisted of: ($ in millions) 2019 2018 2017 Restructuring and related charges: Severance and post-employment benefits $ 2.6 $ 3.1 $ — Asset-related charges 0.3 2.2 — Other charges 2.0 3.8 — Total restructuring and related charges $ 4.9 $ 9.1 $ — Argentina currency devaluation 1.0 1.1 — Tax recovery (4.7) — — Venezuela deconsolidation — — 11.1 Development and licensing income (0.9) (0.9) (10.6) Contingent consideration 2.1 (2.6) (2.4) Other items (4.9) (4.8) 3.9 Total other (income) expense $ (2.5) $ 1.9 $ 2.0 |
Schedule of Restructuring Obligations | The following table presents activity related to our restructuring obligations related to our 2018 restructuring plan: ($ in millions) Severance and benefits Asset-related charges Other charges Total Balance, December 31, 2017 $ — $ — $ — $ — Charges 3.1 2.2 3.5 8.8 Cash payments (0.8) — — (0.8) Non-cash asset write-downs — (2.2) (3.5) (5.7) Balance, December 31, 2018 $ 2.3 $ — $ — $ 2.3 Charges 2.6 0.3 2.0 4.9 Cash payments (3.5) — — (3.5) Non-cash asset write-downs — (0.3) (2.0) (2.3) Balance, December 31, 2019 $ 1.4 $ — $ — $ 1.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows: ($ in millions) 2019 2018 Balance at January 1 $ 3.9 $ 3.2 Increase due to current year position 1.6 0.8 Increase due to prior year position — 0.4 Reduction for expiration of statute of limitations/audits (0.5) (0.5) Balance at December 31 $ 5.0 $ 3.9 |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes are: ($ in millions) 2019 2018 2017 U.S. operations $ 161.2 $ 132.9 $ 96.5 International operations 130.6 107.8 125.9 Total income before income taxes $ 291.8 $ 240.7 $ 222.4 |
Schedule of Components of Income Tax Expense | The related provision for income taxes consists of: ($ in millions) 2019 2018 2017 Current: Federal $ 10.8 $ 2.1 $ 2.1 State 2.4 3.3 0.1 International 30.5 35.1 37.0 Current income tax provision 43.7 40.5 39.2 Deferred: Federal and state 10.3 1.4 41.8 International 5.0 (0.5) (0.1) Deferred income tax provision 15.3 0.9 41.7 Income tax expense $ 59.0 $ 41.4 $ 80.9 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities at December 31 are : ($ in millions) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 21.9 $ 18.4 Tax credit carryforwards 2.8 10.5 Pension and deferred compensation 25.6 27.2 Other 9.2 11.4 Valuation allowance (15.9) (16.0) Total deferred tax assets 43.6 51.5 Deferred tax liabilities: Accelerated depreciation 37.9 31.3 Tax on undistributed earnings of subsidiaries 6.3 6.6 Other 0.9 2.0 Total deferred tax liabilities 45.1 39.9 Net deferred tax (liability) asset $ (1.5) $ 11.6 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal corporate tax rate to our effective consolidated tax rate on income before income taxes follows: 2019 2018 2017 U.S. federal corporate tax rate 21.0 % 21.0 % 35.0 % Tax on international operations other than U.S. tax rate 2.7 4.8 (4.5) Reversal of prior valuation allowance — — (0.5) Adjustments to reserves for unrecognized tax benefits 0.4 0.2 (0.2) U.S. tax on international earnings, net of foreign tax credits 0.4 (0.2) 0.1 State income taxes, net of federal tax effect 1.4 2.3 0.2 U.S. research and development credits (1.0) (0.9) (0.8) Excess tax benefits on share-based payments (3.5) (6.0) (14.1) Impact of 2017 Tax Act — (2.9) 15.9 Tax on undistributed earnings of subsidiaries (0.2) (1.3) 4.4 Venezuela deconsolidation — — 1.7 Other business credits and Section 199 Deduction — — (0.6) Other (1.0) 0.2 (0.2) Effective tax rate 20.2 % 17.2 % 36.4 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Significant Product Group | The following table presents information about our reportable segments, reconciled to consolidated totals: ($ in millions) 2019 2018 2017 Net sales: Proprietary Products $ 1,398.6 $ 1,308.6 $ 1,236.9 Contract-Manufactured Products 441.5 409.1 362.5 Intersegment sales elimination (0.2) (0.3) (0.3) Consolidated net sales $ 1,839.9 $ 1,717.4 $ 1,599.1 |
Schedule of Sales and Net Property, Plant and Equipment, by Geographical Areas | The following table presents net sales and property, plant and equipment, net, by the country in which the legal subsidiary is domiciled and assets are located: Net Sales Property, Plant and Equipment, Net ($ in millions) 2019 2018 2017 2019 2018 2017 United States $ 814.7 $ 766.1 $ 734.6 $ 337.1 $ 315.3 $ 323.8 Germany 236.3 235.9 226.4 95.4 99.3 108.8 Ireland 173.8 138.1 100.5 162.0 165.4 173.2 France 150.6 145.0 142.6 53.3 50.1 51.6 Other European countries 251.1 230.5 201.0 59.1 59.5 63.2 Other 213.4 201.8 194.0 132.4 132.4 134.4 $ 1,839.9 $ 1,717.4 $ 1,599.1 $ 839.3 $ 822.0 $ 855.0 |
Schedule of Segment Reporting Information, by Segment | The following tables provide summarized financial information for our segments: ($ in millions) Proprietary Products Contract-Manufactured Products Corporate/ Elimination/ Unallocated Items Consolidated 2019 Net sales $ 1,398.6 $ 441.5 $ (0.2) $ 1,839.9 Operating profit $ 313.6 $ 49.1 $ (66.1) $ 296.6 Interest expense — — 8.5 8.5 Interest income — — (3.8) (3.8) Other nonoperating expense (income) — — 0.1 0.1 Income before income taxes $ 313.6 $ 49.1 $ (70.9) $ 291.8 Segment assets $ 1,480.6 $ 386.0 $ 474.8 $ 2,341.4 Capital expenditures 91.2 37.2 (2.0) 126.4 Depreciation and amortization expense 82.2 17.9 3.3 103.4 2018 Net sales $ 1,308.6 $ 409.1 $ (0.3) $ 1,717.4 Operating profit $ 266.4 $ 44.3 $ (70.4) $ 240.3 Interest expense — — 8.4 8.4 Interest income — — (2.1) (2.1) Other nonoperating income — — (6.7) (6.7) Income before income taxes $ 266.4 $ 44.3 $ (70.0) $ 240.7 Segment assets $ 1,342.3 $ 301.4 $ 335.2 $ 1,978.9 Capital expenditures 77.0 20.7 7.0 104.7 Depreciation and amortization expense 83.9 17.2 3.3 104.4 2017 Net sales $ 1,236.9 $ 362.5 $ (0.3) $ 1,599.1 Operating profit $ 243.8 $ 48.3 $ (66.3) $ 225.8 Interest expense — — 7.8 7.8 Interest income — — (1.3) (1.3) Other nonoperating income — — (3.1) (3.1) Income before income taxes $ 243.8 $ 48.3 $ (69.7) $ 222.4 Segment assets $ 1,321.3 $ 286.4 $ 255.1 $ 1,862.8 Capital expenditures 107.2 18.6 5.0 130.8 Depreciation and amortization expense 77.1 16.4 3.2 96.7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Apr. 01, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Business acquisition, transaction costs | $ 18.9 | ||
Business acquisition, recognized inventory | 4.5 | ||
Business acquisition, recognized property, plant, and equipment | 0.6 | ||
Business acquisition, recognized goodwill | 2.6 | ||
Business acquisition, recognized intangible assets | $ 11.2 | ||
Allowance for doubtful accounts | $ 0.5 | $ 2 | |
Raw materials | 100.9 | 90.4 | |
Work in process | 37.4 | 42.2 | |
Finished goods | 97.4 | 81.9 | |
Total inventories | $ 235.7 | $ 214.5 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of finite-lived intangible assets | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of finite-lived intangible assets | 25 years |
Revenue Adoption of ASC 606 (De
Revenue Adoption of ASC 606 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,549.4 | $ 1,353.4 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 11.4 |
Revenue Revenue Recognition (De
Revenue Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, liability | $ 34.9 | $ 33.4 |
Percentage of net sales | 100.00% | 100.00% |
SmartDose [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, liability | $ 5.6 | |
Product Concentration Risk [Member] | Revenue Benchmark [Member] | High-Value Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 42.00% | 41.00% |
Product Concentration Risk [Member] | Revenue Benchmark [Member] | Standard Packaging [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 29.00% | 32.00% |
Product Concentration Risk [Member] | Revenue Benchmark [Member] | Delivery Devices [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 5.00% | 3.00% |
Product Concentration Risk [Member] | Revenue Benchmark [Member] | Contract Manufactured Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 24.00% | 24.00% |
Biologics Customers [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 25.00% | 21.00% |
Generics Customers [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 20.00% | 21.00% |
Pharma Customers [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 31.00% | 34.00% |
Contract-Manufactured Customers [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 24.00% | 24.00% |
Americas [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 48.00% | 48.00% |
EMEA [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 44.00% | 44.00% |
Asia Pacific [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 8.00% | 8.00% |
Revenue Contracts Assets and Li
Revenue Contracts Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 |
Contract assets, December 31, 2018 | $ 9.1 | $ 9.1 |
Contract assets, December 31, 2019 | 9.8 | |
Change in contract assets - increase (decrease) | 0.7 | |
Deferred income, December 31, 2018 | (33.4) | (33.4) |
Deferred income, December 31, 2019 | (34.9) | |
Change in deferred income - (increase) decrease | (1.5) | |
Cash payments received in advance | (114.4) | |
Revenue recognized that was included in the deferred income balance | $ 20.8 | 110.4 |
Other increase (decrease) in deferred income | 2.5 | |
SmartDose [Member] | ||
Deferred income, December 31, 2019 | (5.6) | |
Deferred income, current | 0.9 | |
Deferred income, noncurrent | $ 4.7 |
Revenue Supply Chain Financing
Revenue Supply Chain Financing (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Supply Chain Financing [Abstract] | ||
Transfer of accounts receivable under supply chain financing agreements | $ 10.1 | $ 5.7 |
Revenue Voluntary Recall (Detai
Revenue Voluntary Recall (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Voluntary Recall [Abstract] | ||
Provision for product returns | $ 11.3 | $ 5.4 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Net income, as reported, for basic net income per share | $ 241.7 | $ 206.9 | $ 150.7 |
Weighted average common shares outstanding (in shares) | 74,000,000 | 73,900,000 | 73,900,000 |
Assumed stock options exercised and awards vested, based on the treasury stock method (in shares) | 1,400,000 | 1,500,000 | 1,900,000 |
Weighted average shares assuming dilution (in shares) | 75,400,000 | 75,400,000 | 75,800,000 |
Antidilutive options excluded from computation of diluted net income per share (in shares) | 100,000 | 400,000 | 400,000 |
Share repurchase program, number of shares authorized | 848,000 | 800,000 | |
Shares purchased under share repurchase program (in shares) | 800,000 | ||
Shares purchased under share repurchase program | $ 83.1 | $ 70.8 | $ 74.4 |
Shares purchased under share repurchase program, average cost per share | $ 103.89 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Property, Plant and Equipment, Gross) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,820.1 | $ 1,752.7 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 22.1 | 20.9 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 572.9 | 569.1 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 | |
Buildings and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 35 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 817 | 806.7 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 | |
Molds and Dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 123.8 | 115.8 |
Molds and Dies [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 | |
Molds and Dies [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 | |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 155.6 | 151.1 |
Computer Hardware and Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 128.7 | $ 89.1 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textuals) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 100,000,000 | $ 101,700,000 | $ 94,300,000 |
Capitalized leases | 0 | 0 | |
Capitalized interest | 1,000,000 | 900,000 | 2,700,000 |
Gain (Loss) on Disposition of Assets | 1,900,000 | 1,100,000 | |
Asset-related charges | 300,000 | $ 2,200,000 | $ 0 |
2018 Restructuring Plan [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges, patent and equipment | $ 300,000 |
Adoption of ASC 842 (Details)
Adoption of ASC 842 (Details) $ in Millions | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease liabilities | $ 72 | ||
Operating lease right-of-use assets | 70.1 | $ 0 | |
Finance Lease | $ 0 | ||
Lease, operating lease, terminate term | 1 | ||
Maximum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating leases, option to extend | 5 years | ||
Operating lease, term of contract | 12 months | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease liabilities | $ 73.1 | ||
Operating lease right-of-use assets | $ 71 |
Lease Cost (Details)
Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 12.9 | ||
Short-term lease cost | 0.8 | ||
Variable lease cost | 3.3 | ||
Total lease cost | $ 17 | $ 14.5 | $ 13.3 |
Lease Cash Flow and Supplementa
Lease Cash Flow and Supplemental Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 12.5 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 9.1 |
Lease Weighted Average (Detail)
Lease Weighted Average (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term for operating leases | 11 years 8 months 12 days |
Weighted average discount rate for operating leases | 3.76% |
Maturities of Operating Lease L
Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2020 | $ 12.1 | |
2021 | 10.4 | |
2022 | 8.6 | |
2023 | 7.8 | |
2024 | 7.3 | |
Thereafter | 41.8 | |
Operating lease liability payments due | 88 | |
Less: imputed lease interest | 16 | |
Total lease liabilities | $ 72 | |
2019 | $ 13 | |
2020 | 10.5 | |
2021 | 7.8 | |
2022 | 6.9 | |
2023 | 5.5 | |
Thereafter | 37.8 | |
Total | $ 81.5 |
Affiliated Companies (Details)
Affiliated Companies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Purchase in investment in affiliated companies in cash | $ 85.1 | $ 0 | $ 0 | |
Purchase of investment in affiliated companies | $ 4.9 | |||
The West Company Mexico, S.A. de C.V. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% | |||
Aluplast S.A. de C.V. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% | |||
Pharma Tap S.A de C.V. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% | |||
Pharma Rubber S.A. de C.V. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% | |||
Daikyo Seiko, Ltd. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% | 25.00% | 49.00% | |
I&W Pharma Group LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 49.00% |
Affiliated Companies (Textuals)
Affiliated Companies (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Unremitted income of affiliated companies | $ 82.4 | $ 75.8 | $ 69.9 |
Dividends received from affiliated companies | 2.2 | 1.7 | 2.2 |
Purchases and royalty payments made to affiliates | 115.1 | 86.3 | 86.7 |
Amount due and payable to affiliates | 20.8 | 12.9 | |
Sales to affiliates | 9.2 | 9.6 | 8.1 |
Amount receivable from affiliates | 1.9 | 1.6 | |
Equity method investments | 179.3 | 77.8 | |
Aggregate carrying amount of investment in affiliated companies that are not accounted for under the equity method | 13.4 | 13.4 | |
Daikyo Seiko, Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in unrealized gains (losses) in securities available-for-sale and derivative instruments | $ (0.4) | $ (0.4) | $ (0.5) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance, beginning | $ 105,800,000 | $ 107,700,000 |
Goodwill recorded due to acquisition | 2,600,000 | |
Foreign currency translation | (600,000) | (1,900,000) |
Balance, ending | 107,800,000 | 105,800,000 |
Proprietary Products [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 76,000,000 | 77,600,000 |
Goodwill recorded due to acquisition | 2,600,000 | |
Foreign currency translation | (500,000) | (1,600,000) |
Balance, ending | 78,100,000 | 76,000,000 |
Contract-Manufactured Products [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 29,800,000 | 30,100,000 |
Goodwill recorded due to acquisition | 0 | |
Foreign currency translation | (100,000) | (300,000) |
Balance, ending | $ 29,700,000 | $ 29,800,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | $ 78.1 | $ 65.2 |
Finite-lived intangible assets, accumulated amortization | (48.3) | (44.9) |
Finite-lived intangible assets, net | 29.8 | 20.3 |
Patents and Licensing [Member] | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | 21.5 | 19.6 |
Finite-lived intangible assets, accumulated amortization | (16) | (15.1) |
Finite-lived intangible assets, net | 5.5 | 4.5 |
In-Process Research and Development (IPR&D) [Member] | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | 3.3 | 3.3 |
Finite-lived intangible assets, accumulated amortization | (1.5) | (1.2) |
Finite-lived intangible assets, net | 1.8 | 2.1 |
Trademarks [Member] | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | 2 | 2 |
Finite-lived intangible assets, accumulated amortization | (1.8) | (1.8) |
Finite-lived intangible assets, net | 0.2 | 0.2 |
Customer Relationships [Member] | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | 40.3 | 29.3 |
Finite-lived intangible assets, accumulated amortization | (21.6) | (20) |
Finite-lived intangible assets, net | 18.7 | 9.3 |
Customer Contracts [Member] | ||
Schedule of Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, gross | 11 | 11 |
Finite-lived intangible assets, accumulated amortization | (7.4) | (6.8) |
Finite-lived intangible assets, net | $ 3.6 | $ 4.2 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 01, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Foreign currency translation gains (losses) | $ (0.3) | $ (0.3) | ||
Amortization expense | 3.4 | $ 2.7 | $ 2.4 | |
Estimated annual amortization expense, 2020 | 4 | |||
Estimated annual amortization expense, 2021 | 3.5 | |||
Estimated annual amortization expense, 2022 | 3.5 | |||
Estimated annual amortization expense, 2023 | 2.9 | |||
Estimated annual amortization expense, 2024 | $ 2.6 | |||
Business acquisition, recognized goodwill | $ 2.6 | |||
Business acquisition, recognized intangible assets | $ 11.2 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current Liabilities [Abstract] | |||
Deferred income | $ 27.5 | $ 25.5 | |
Dividends payable | 11.8 | 11.3 | $ 10.4 |
Accrued commissions, rebates and royalties | 9.7 | 5.7 | |
Accrued retirement plans (excluding pension) | 7.9 | 2.3 | |
Accrued taxes other than income | 6.5 | 5.5 | |
Accrued professional services | 5.9 | 4.9 | |
Accrued interest | 3.3 | 3.4 | |
Restructuring obligations | 1.5 | 3.3 | |
Other | 17.2 | 14.7 | |
Other current liabilities | $ 91.3 | $ 76.6 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ 0.7 | $ 0.6 |
Long-term debt, excluding current portion | $ 255 | 196 |
Senior A Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.67% | |
Senior B Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.82% | |
Senior C Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.02% | |
Note Payable Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0.1 | |
Revolving credit facility, due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 28.6 | |
Senior Notes [Member] | Senior A Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.67% | |
Long-term debt, gross | 42 | |
Senior Notes [Member] | Senior B Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 53 | |
Debt instrument, stated interest rate | 3.82% | |
Long-term debt, gross | 53 | |
Senior Notes [Member] | Senior C Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 73 | |
Debt instrument, stated interest rate | 4.02% | |
Long-term debt, gross | $ 73 | |
Term Loan Due 2024 [Domain] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 90 | |
Senior A Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 42 | |
Term Loan Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, excluding current portion | $ 87.7 | |
Debt instrument, stated interest rate | 2.78% | |
Long-term debt, gross | $ 90 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||
Long-term debt, excluding current portion | $ 255 | $ 196 | |
Interest expense | 9.4 | 9.3 | $ 10.5 |
Aggregate annual maturities of long-term debt [Abstract] | |||
2021 | 2.3 | ||
2022 | 44.3 | ||
2023 | 2.3 | ||
2024 | 133.8 | ||
Thereafter | 73 | ||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 2.3 | ||
Senior A Notes Due 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, maturity date | Jul. 5, 2022 | ||
Debt instrument, stated interest rate | 3.67% | ||
Senior B Notes Due 2024 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, maturity date | Jul. 5, 2024 | ||
Debt instrument, stated interest rate | 3.82% | ||
Senior C Notes Due 2027 [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, maturity date | Jul. 5, 2027 | ||
Debt instrument, stated interest rate | 4.02% | ||
Revolving credit facility, due 2020 [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 28.6 | ||
Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 168 | ||
Weighted average of the coupon interest rate | 3.87% | ||
Debt issuance costs | 0.5 million | 0.6 million | |
Senior Notes [Member] | Senior A Notes Due 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 42 | ||
Debt instrument, face amount | $ 42 | ||
Debt instrument, stated interest rate | 3.67% | ||
Senior Notes [Member] | Senior B Notes Due 2024 [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 53 | ||
Long-term debt, gross | 53 | ||
Debt instrument, face amount | $ 53 | ||
Debt instrument, stated interest rate | 3.82% | ||
Senior Notes [Member] | Senior C Notes Due 2027 [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 73 | ||
Long-term debt, gross | 73 | ||
Debt instrument, face amount | $ 73 | ||
Debt instrument, stated interest rate | 4.02% | ||
Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, current borrowing capacity | $ 300 | ||
Line of Credit Facility, additional borrowing capacity | 350 | ||
Credit available for the issuance of letters of credit | 30 | ||
Line of credit, noncurrent | 0 | ||
Line of Credit Facility, unused commitment level | 297.5 | ||
Debt issuance costs | 1.1 | $ 0.6 | |
Term Loan Due 2024 [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, current portion | 2.3 | ||
Debt issuance costs | 0.2 | ||
Long-term debt, gross | 90 | ||
Debt instrument, face amount | $ 90 | ||
Debt instrument, stated interest rate | 2.78% | ||
Long-term debt, excluding current portion | $ 87.7 | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 1.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan Due 2024 [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 87.50% | ||
Letter of Credit [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | $ 2.5 | ||
Domestic Line of Credit [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Credit Facility is available for swing-line loans | 30 | ||
Foreign Line of Credit [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Credit Facility is available for swing-line loans | $ 20 | ||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 50.00% | ||
Minimum [Member] | Revolving credit facility, due 2024 [Domain] | |||
Aggregate annual maturities of long-term debt [Abstract] | |||
Ratio of debt to EBITDA | 3.5 | ||
Minimum [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 0.00% | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 8750.00% | ||
Maximum [Member] | Revolving credit facility, due 2024 [Domain] | |||
Aggregate annual maturities of long-term debt [Abstract] | |||
Ratio of debt to EBITDA | 4 | ||
Maximum [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 3750.00% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving credit facility, due 2024 [Domain] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 13750.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments (Textuals) (Details) € in Millions, ¥ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019EUR (€)bbl$ / bbl | Dec. 31, 2019JPY (¥)bbl$ / bbl | Dec. 31, 2019USD ($)bbl$ / bbl | Dec. 31, 2019SGD ($)bbl$ / bbl | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018SGD ($) | Nov. 22, 2017bbl |
Commodity Call Options Held [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Average Price Risk Option Strike Price | $ / bbl | 70.71 | 70.71 | 70.71 | 70.71 | ||||
Derivative, Nonmonetary Notional Amount | bbl | 135,967 | 135,967 | 135,967 | 135,967 | 352,682 | |||
Euro Member Countries, Euro | Forward Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | € | € 10 | |||||||
United States of America, Dollars | Forward Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 13.4 | $ 13.4 | ||||||
United States of America, Dollars | Cross Currency Interest Rate Contract [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | 90 | |||||||
United States of America, Dollars | Cross Currency Interest Rate Contract [Member] | Net Investment Hedges [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | 90 | |||||||
United States of America, Dollars | Long [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | 38.4 | |||||||
United States of America, Dollars | Short [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | € 33.6 | 0 | ||||||
Japan, Yen | Cross Currency Interest Rate Contract [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | ¥ | ¥ 9,800 | |||||||
Japan, Yen | Long [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | ¥ | ¥ 6,550.4 | |||||||
Japan, Yen | Short [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | 20.6 | 37.8 | ||||||
Singapore, Dollars | Forward Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 601.5 | $ 601.5 | ||||||
Singapore, Dollars | Long [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | $ 29.4 | |||||||
Singapore, Dollars | Short [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Notional Amount | € 4.6 | $ 16.5 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Effects of Derivative Instruments Designated as Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 |
Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 0.6 | 2.6 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | (1.2) | 1.2 |
Net Investment Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | (0.5) | 0.8 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.4 | (0.1) |
Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 4.8 | |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | (4.6) | |
Gain (Loss) on Derivative Instruments, Net, Pretax | (6.9) | (6.3) |
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 8.7 | 3.7 |
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings within Twelve Months | 5.6 | |
Net Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (0.9) | 0.6 |
Cost of Goods and Services Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (0.6) | 0.3 |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0.3 | 0.3 |
Foreign Exchange (Gains) Losses and Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (4.6) | 0 |
Foreign Currency Hedge Contracts [Member] | Net Sales [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 0.8 | 0.4 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | (0.9) | 0.6 |
Foreign Currency Hedge Contracts [Member] | Cost of Goods and Services Sold [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | (0.2) | 2.2 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | (0.6) | 0.3 |
Foreign Currency Hedge Contracts [Member] | Foreign Exchange (Gains) Losses and Other [Member] | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 4.8 | |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | (4.6) | |
Gain (Loss) on Derivative Instruments, Net, Pretax | (6.9) | (6.3) |
Forward Treasury Lock [Member] | Interest Expense [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 0 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | 0.3 | 0.3 |
Foreign Currency - Denominated Debt [Member] | Foreign Exchange (Gains) Losses and Other [Member] | Net Investment Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | 0.6 | 0.8 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income | 0 | 0 |
Commodity Call Options [Member] | Cost of Goods and Services Sold [Member] | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.4 | $ (0.1) |
Currency Swap | Foreign Exchange (Gains) Losses and Other [Member] | Net Investment Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI | $ (1.1) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Deferred compensation assets | $ 11.3 | $ 8.7 |
Foreign currency contracts | 7.7 | 6.5 |
Commodity call options | 0.1 | |
Total assets at fair value | 19.1 | 15.2 |
Liabilities: | ||
Contingent consideration | 3.3 | 1.7 |
Deferred compensation liabilities | 12.8 | 9.8 |
Foreign currency contracts | 0.3 | 0.2 |
Total liabilities at fair value | 17.8 | 11.7 |
Currency Swap | ||
Liabilities: | ||
Foreign currency contracts | 1.4 | |
Level 1 [Member] | ||
Assets: | ||
Deferred compensation assets | 11.3 | 8.7 |
Total assets at fair value | 11.3 | 8.7 |
Liabilities: | ||
Deferred compensation liabilities | 12.8 | 9.8 |
Total liabilities at fair value | 12.8 | 9.8 |
Level 2 [Member] | ||
Assets: | ||
Foreign currency contracts | 7.7 | 6.5 |
Commodity call options | 0.1 | |
Total assets at fair value | 7.8 | 6.5 |
Liabilities: | ||
Foreign currency contracts | 0.3 | 0.2 |
Total liabilities at fair value | 1.7 | 0.2 |
Level 2 [Member] | Currency Swap | ||
Liabilities: | ||
Foreign currency contracts | 1.4 | |
Level 3 [Member] | ||
Liabilities: | ||
Contingent consideration | 3.3 | 1.7 |
Total liabilities at fair value | $ 3.3 | $ 1.7 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in Level 3 Fair Value Measurements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Level 3 Fair Value Measurements [Roll Forward] | ||
Balance, beginning | $ 1.7 | $ 4.9 |
Increase (reduction) in fair value recorded in earnings | 2.1 | (2.6) |
Payments | (0.5) | (0.6) |
Balance, ending | $ 3.3 | $ 1.7 |
Fair Value Measurements Other F
Fair Value Measurements Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Financial Instruments [Abstract] | ||
Long-term debt | $ 255 | $ 196 |
Long-term Debt, Fair Value | $ 263.3 | $ 192.6 |
(Components of AOCI) (Details)
(Components of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 |
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance, beginning | (154.2) | (117.3) | |
Other comprehensive (loss) income before reclassifications | 8.4 | (37.7) | |
Amounts reclassified from AOCI | (3.8) | 0.8 | |
Other comprehensive income (loss), net of tax | 4.6 | (36.9) | 69.5 |
Balance, ending | (149.6) | (154.2) | (117.3) |
Losses on Cash Flow Hedges [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance, beginning | (0.4) | (4.2) | |
Other comprehensive (loss) income before reclassifications | 5.4 | 2.6 | |
Amounts reclassified from AOCI | (5.8) | 1.2 | |
Other comprehensive income (loss), net of tax | (0.4) | 3.8 | |
Balance, ending | (0.8) | (0.4) | (4.2) |
Unrealized Gains on Investment Securities [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance, beginning | 0.4 | 0.5 | |
Other comprehensive (loss) income before reclassifications | 0 | (0.1) | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | (0.1) | |
Balance, ending | 0.4 | 0.4 | 0.5 |
Defined Benefit Pension and Other Postretirement Plans [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance, beginning | (40.4) | (39) | |
Other comprehensive (loss) income before reclassifications | (1.9) | (1) | |
Amounts reclassified from AOCI | 2 | (0.4) | |
Other comprehensive income (loss), net of tax | 0.1 | (1.4) | |
Balance, ending | (40.3) | (40.4) | (39) |
Foreign Currency Translation [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance, beginning | (113.8) | (74.6) | |
Other comprehensive (loss) income before reclassifications | 4.9 | (39.2) | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss), net of tax | 4.9 | (39.2) | |
Balance, ending | $ (108.9) | $ (113.8) | $ (74.6) |
(Reclassifications AOCI) (Detai
(Reclassifications AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 | |
Cost of goods and services sold | (1,234.2) | (1,172) | (1,086.2) | |
Interest expense | (8.5) | (8.4) | (7.8) | |
Pension settlement charge | 3.5 | 0 | 0 | |
Income before income taxes | 291.8 | 240.7 | 222.4 | |
Tax expense | (59) | (41.4) | (80.9) | |
Net income | 241.7 | 206.9 | $ 150.7 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Net income | 3.8 | (0.8) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Income before income taxes | 8.4 | (1.6) | ||
Tax expense | (2.6) | 0.4 | ||
Net income | 5.8 | (1.2) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member] | Foreign Currency Contract [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Net sales | 1 | (0.7) | ||
Cost of goods and services sold | 1 | (0.5) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member] | Interest Rate Swap Contracts [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Interest expense | 6.9 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on Cash Flow Hedges [Member] | Forward Treasury Locks [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Interest expense | (0.5) | (0.4) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension and Other Postretirement Plans [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Prior service credit | [1] | 0.6 | 2 | |
Actuarial (loss) gain | [1] | 0.2 | (1.4) | |
Income before income taxes | (2.7) | 0.6 | ||
Tax expense | 0.7 | (0.2) | ||
Net income | $ (2) | $ 0.4 | ||
[1] | (a) These components are included in the computation of net periodic benefit cost. Please refer to Note 15, Benefit Plans , for additional details. |
Stock-Based Compensation (Textu
Stock-Based Compensation (Textuals) (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)planshares | Dec. 31, 2018shares | Dec. 31, 2017shares | Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant/issuance | 3,119,314 | |||
Unrecognized compensation expense for all nonvested awards | $ | $ 21,200,000 | |||
Weighted average period for recognition | 1 year 7 months 6 days | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards, expiration period | 10 years | |||
Number of shares reduced for each award granted | 1 | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Awards, expiration period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 35,993 | 39,819 | 51,368 | 116,087 |
Award Types Other than Stock Options and Stock Appreciation Rights [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reduced for each award granted | 2.5 | |||
Employee Stock Purchase Plan (ESPP) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant/issuance | 3,800,000 | |||
Percentage of current market price for sales to eligible employees | 85.00% | |||
Limitation on payroll deductions of employee's base salary, percent | 25.00% | |||
Limitation on payroll deductions of employee's base salary, amount | $ | $ 25,000 | |||
Maximum number of shares per employee | 2,000 | |||
Maximum number of shares per employee, per year | 8,000 | |||
Purchases of shares | 51,391 | 55,669 | 56,218 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted at target level | 13,308 | 0 | ||
Annual Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted at target level | 1,300 | 1,500 | 1,800 | |
Vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 200 | 800 | |
Cash-settled PSU awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted at target level | 806 | 560 | 598 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 0 | 0 | |
Stock-settled PSU awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted at target level | 84,309 | 102,307 | 92,045 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 16,204 | 23,946 | 110 | |
Deferred Compensation Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred compensation conversion unit | 1 | |||
Number of deferred compensation plans | plan | 2 | |||
Number of deferred stock units | 366,159 | |||
Number of deferred stock units payable in cash | 6,274 | |||
Deferred Compensation Plans [Member] | Non-Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted at target level | 14,579 |
Stock-Based Compensation (Alloc
Stock-Based Compensation (Allocation of Share-based Compensation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for recognition | 1 year 7 months 6 days | ||
Stock compensation expense | $ 24.4 | $ 15.1 | $ 16.1 |
Stock Option and Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 9.1 | 8.6 | 7.8 |
Performance-Vesting Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 9.5 | 2.5 | 4.1 |
Cash-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0.1 | 0 | 0.1 |
Performance-vesting Shares or Units Dividend Equivalents [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0.2 | 0.1 | 0.1 |
Employee Stock Purchase Plan (ESPP) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0.9 | 0.9 | 0.8 |
Deferred Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 4.6 | $ 3 | $ 3.2 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual life of options outstanding | 6 years 1 month 6 days | ||
Weighted average remaining contractual life of options exercisable | 5 years | ||
Aggregate intrinsic value of total options outstanding | $ 227.8 | ||
Aggregate intrinsic value of total options vested | $ 158.6 | ||
Weighted average grant date fair value of options granted | $ 24.72 | $ 20.16 | $ 18.08 |
Intrinsic value of options exercised | $ 46.9 | $ 61.3 | $ 91.7 |
Grant date fair value of options vested | $ 7.5 | $ 8.3 | $ 6.7 |
Stock Options Activity [Roll Forward] | |||
Options outstanding, beginning | 3 | 3.5 | 4.5 |
Granted | 0.3 | 0.5 | 0.5 |
Exercised | (0.6) | (1) | (1.5) |
Forfeited | 0 | 0 | 0 |
Options outstanding, ending | 2.7 | 3 | 3.5 |
Options exercisable | 1.6 | 1.7 | 1.9 |
Stock Options, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning (in USD per share) | $ 58.93 | $ 48.76 | $ 38.11 |
Granted (in USD per share) | 103.40 | 90.36 | 84.09 |
Exercised (in USD per share) | 46.42 | 35.95 | 26.15 |
Forfeited (in USD per share) | 92.71 | 75.32 | 60.92 |
Options outstanding, ending (in USD per share) | 67.02 | 58.93 | 48.76 |
Options exercisable (in USD per share) | $ 53.12 | $ 45.32 | $ 35.44 |
Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, expiration period | 10 years | ||
Risk-free interest rate | 2.30% | 2.70% | 2.00% |
Stock volatility | 22.50% | 19.80% | 19.90% |
Dividend yield | 0.70% | 0.70% | 0.70% |
Expected life | 6 years | 6 years | 6 years |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Appreciation Rights Award Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SARs, Weighted Average Exercise Price [Roll Forward] | |||
Cash-settled SARs, outstanding | 23,833 | ||
Stock-settled SARs, outstanding | 12,160 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, expiration period | 10 years | ||
SARs Activity [Roll Forward] | |||
Outstanding, beginning | 39,819 | 51,368 | 116,087 |
Granted | 3,364 | 3,480 | 2,792 |
Exercised | (6,790) | (14,629) | (67,511) |
Forfeited | (400) | (400) | 0 |
Outstanding, ending | 35,993 | 39,819 | 51,368 |
Exercisable | 27,781 | 30,285 | 39,769 |
SARs, Weighted Average Exercise Price [Roll Forward] | |||
Oustanding, beginning (in USD per share) | $ 46.48 | $ 38.55 | $ 31.13 |
Granted (in USD per share) | 102.51 | 89.64 | 83.47 |
Exercised (in USD per share) | 42.08 | 28.45 | 27.65 |
Forfeited (in USD per share) | 63.43 | 63.43 | 0 |
Oustanding, ending (in USD per share) | 52.36 | 46.48 | 38.55 |
Exercisable (in USD per share) | $ 40.73 | $ 36.91 | $ 30.77 |
Stock-Based Compensation (Nonve
Stock-Based Compensation (Nonvested Performance-based Award Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Employee Directors [Member] | Deferred Compensation Plans [Member] | |||
Non-vested PSU Awards [Roll Forward] | |||
Granted at target level | 14,579 | ||
Non-vested PSU Awards, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted at target level | $ 121.40 | ||
Incentive Stock Awards [Member] | |||
Non-vested PSU Awards [Roll Forward] | |||
Granted at target level | 1,300 | 1,500 | 1,800 |
Forfeited | 0 | (200) | (800) |
Non-vested PSU Awards, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted at target level | $ 106.14 | $ 93 | $ 86.93 |
Cash-settled PSU awards [Member] | |||
Non-vested PSU Awards [Roll Forward] | |||
Outstanding, beginning | 1,592 | 1,972 | 2,451 |
Granted at target level | 806 | 560 | 598 |
Adjustments above/(below) target | 206 | 30 | 107 |
Vested and converted | (211) | (910) | (970) |
Forfeited | 0 | 0 | 0 |
Outstanding, ending | 1,981 | 1,592 | 1,972 |
Non-vested PSU Awards, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, beginning (in USD per share) | $ 79.48 | $ 92.25 | $ 25.28 |
Granted at target level | 102.51 | 89.64 | 83.47 |
Adjustments above/(below) target | 56.95 | 41.53 | 66.61 |
Vested and converted | 102.51 | 93 | 86.93 |
Forfeited | 0 | 0 | 0 |
Outstanding, ending (in USD per share) | $ 150.33 | $ 79.48 | $ 92.25 |
Stock-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares to be issued upon conversion | 84,670 | ||
Average remaining term of shares issued at conversion | 1 year | ||
Non-vested PSU Awards [Roll Forward] | |||
Outstanding, beginning | 296,037 | 341,944 | 378,062 |
Granted at target level | 84,309 | 102,307 | 92,045 |
Adjustments above/(below) target | 50,556 | 2,284 | 11,369 |
Vested and converted | (48,964) | (121,984) | (116,684) |
Forfeited | (16,204) | (23,946) | (110) |
Outstanding, ending | 264,622 | 296,037 | 341,944 |
Non-vested PSU Awards, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, beginning (in USD per share) | $ 76.84 | $ 64.38 | $ 54.47 |
Granted at target level | 103.40 | 90.45 | 84.01 |
Adjustments above/(below) target | 83.89 | 33.86 | 42.85 |
Vested and converted | 102.51 | 93 | 50.06 |
Forfeited | 69.09 | 68.65 | 73.64 |
Outstanding, ending (in USD per share) | $ 66.03 | $ 76.84 | $ 64.38 |
Restricted Stock [Member] | |||
Non-vested PSU Awards [Roll Forward] | |||
Granted at target level | 13,308 | 0 | |
Non-vested PSU Awards, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted at target level | $ 116.39 | ||
Minimum [Member] | Cash-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 0.00% | ||
Minimum [Member] | Stock-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 0.00% | ||
Maximum [Member] | Cash-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 200.00% | ||
Maximum [Member] | Stock-settled PSU awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual payout range | 200.00% |
Benefit Plans (Textuals) (Detai
Benefit Plans (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 244.1 | $ 214.5 | |
Pension curtailment gain | 3.5 | 0 | $ 0 |
401 (k) plan contributions | 15.6 | 6.5 | $ 5.7 |
Accumulated benefit obligation | 283.9 | 263 | |
Expected contribution to the plan | $ 0.7 | ||
Assumed healthcare cost trend rate, benefit obligation | 6.25% | ||
Ultimate healthcare cost trend rate, benefit obligation | 5.00% | ||
Assumed healthcare cost trend rate, net periodic benefit cost | 6.25% | ||
Ultimate healthcare cost trend rate, net periodic benefit cost | 5.00% | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2.6 | ||
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39.4 | 33.4 | |
Accumulated benefit obligation | $ 73.9 | $ 64 | |
Discount rate | 1.28% | 2.19% | |
Rate of compensation increase | 2.49% | 2.60% | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.35% | ||
Rate of compensation increase | 4.25% | 4.25% | |
Percentage of global plan assets | 83.86% | ||
Long-term rate of return on assets | 5.60% | 7.00% | 7.00% |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 244.1 | $ 214.5 | $ 239.5 |
Actuarial net loss that will be amortized from accumulated other comprehensive loss | 1.8 | ||
Prior service credit that will be amortized from accumulated other comprehensive loss | $ 0.1 | ||
Discount rate | 2.79% | 3.76% | |
Rate of compensation increase | 2.49% | 4.01% | |
Long-term rate of return on assets | 5.54% | 6.71% | 6.47% |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 8 | $ 2.7 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | $ 0 | $ 0 |
Actuarial net loss that will be amortized from accumulated other comprehensive loss | 1.6 | ||
Prior service credit that will be amortized from accumulated other comprehensive loss | 0.7 | ||
Expected contribution to the plan | $ 0.7 | ||
Discount rate | 3.20% | 4.20% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0.2 | $ 0.1 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 30.00% | 65.00% | |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 70.00% | 35.00% |
Benefit Plans (Components of Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Curtailment | $ (3.5) | $ 0 | $ 0 |
Other Nonoperating Income (Expense) [Member] | |||
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 3.5 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 3.5 | ||
Pension Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Service cost | 1.4 | 10.8 | 10.4 |
Interest cost | 9.2 | 9.4 | 9.8 |
Expected return on assets | (12) | (15.7) | (13.5) |
Amortization of prior service credit | 0.1 | (1.3) | (1.3) |
Amortization of actuarial loss (gain) | 2.1 | 3.8 | 4.9 |
Net periodic benefit cost | 4.3 | 7 | 10.3 |
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Net loss (gain) arising during period | 1.5 | 3.5 | (9) |
Prior service credit arising during period | 0 | 0.3 | 0 |
Amortization of prior service credit | (0.1) | 1.3 | 1.3 |
Amortization of actuarial (loss) gain | (2.1) | (3.8) | (4.9) |
Foreign currency translation | 0.6 | (1.2) | 2.6 |
Total recognized in OCI | (3.6) | 0.1 | (10) |
Total recognized in net periodic benefit cost and OCI | 0.7 | $ 7.1 | 0.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 3.5 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | $ (3.5) | ||
Rate of compensation increase | 2.49% | 4.01% | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 3.5 | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | $ 0 | 0 |
Interest cost | 0.2 | 0.2 | 0.3 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service credit | (0.7) | (0.7) | (0.7) |
Amortization of actuarial loss (gain) | (2.3) | (2.4) | (2.6) |
Net periodic benefit cost | (2.8) | (2.9) | (3) |
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Net loss (gain) arising during period | 0.1 | (1.4) | (1.1) |
Prior service credit arising during period | 0 | 0 | 0 |
Amortization of prior service credit | 0.7 | 0.7 | 0.7 |
Amortization of actuarial (loss) gain | 2.3 | 2.4 | 2.6 |
Foreign currency translation | 0 | 0 | 0 |
Total recognized in OCI | 3.1 | 1.7 | 2.2 |
Total recognized in net periodic benefit cost and OCI | $ 0.3 | $ (1.2) | (0.8) |
Foreign Plan [Member] | |||
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Rate of compensation increase | 2.49% | 2.60% | |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Net periodic benefit cost | $ 1.9 | $ 2.2 | 3 |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Net periodic benefit cost | $ 0 | $ 0 | 0 |
United States [Member] | |||
Other changes in plan assets and benefit obligations recognized in OCI, pre-tax: | |||
Rate of compensation increase | 4.25% | 4.25% | |
United States [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Net periodic benefit cost | $ 2.4 | $ 4.8 | 7.3 |
United States [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Period Benefit Cost (Credit) [Abstract] | |||
Net periodic benefit cost | $ (2.8) | $ (2.9) | $ (3) |
Benefit Plans (Changes in Proje
Benefit Plans (Changes in Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance | $ 214.5 | ||
Employer contribution | (2.6) | ||
Balance | 244.1 | $ 214.5 | |
Pension Plan [Member] | |||
Change in Benefit Obligation [Roll Forward] | |||
Balance | (267) | (288) | |
Service cost | (1.4) | (10.8) | $ (10.4) |
Interest cost | (9.2) | (9.4) | (9.8) |
Participants’ contributions | (0.3) | (0.6) | |
Actuarial (loss) gain | (30.8) | 20.4 | |
Amendments/transfers in | 0 | (0.3) | |
Benefits/expenses paid | 6.8 | 18 | |
Foreign currency translation | (1) | 3.7 | |
Balance | (287.9) | (267) | (288) |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance | 214.5 | 239.5 | |
Actual return on assets | 41.3 | (8.3) | |
Employer contribution | (8) | (2.7) | |
Participants’ contributions | 0.3 | 0.6 | |
Benefits/expenses paid | (6.3) | (18) | |
Foreign currency translation | 1.3 | (2) | |
Balance | 244.1 | 214.5 | 239.5 |
Funded status at end of year | (43.8) | (52.5) | |
Other Postretirement Benefits Plan [Member] | |||
Change in Benefit Obligation [Roll Forward] | |||
Balance | (6) | (7.1) | |
Service cost | 0 | 0 | 0 |
Interest cost | (0.2) | (0.2) | (0.3) |
Participants’ contributions | (0.7) | (0.6) | |
Actuarial (loss) gain | (0.2) | 1.4 | |
Amendments/transfers in | 0 | 0 | |
Benefits/expenses paid | 0.5 | 0.5 | |
Foreign currency translation | 0 | 0 | |
Balance | (6.6) | (6) | (7.1) |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contribution | (0.2) | (0.1) | |
Participants’ contributions | 0.7 | 0.6 | |
Benefits/expenses paid | (0.5) | (0.5) | |
Foreign currency translation | 0 | 0 | |
Balance | 0 | 0 | $ 0 |
Funded status at end of year | $ (6.6) | $ (6) |
Benefit Plans (Amounts Recogniz
Benefit Plans (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Current liabilities | $ (2.2) | $ (2.3) |
Noncurrent liabilities | (52.5) | (56.2) |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Current liabilities | (1.5) | (1.6) |
Noncurrent liabilities | (46.6) | (50.9) |
Total liabilities | (43.8) | (52.5) |
us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansAssetsNoncurrent | 4.3 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Current liabilities | (0.7) | (0.7) |
Noncurrent liabilities | (5.9) | (5.3) |
Total liabilities | $ (6.6) | $ (6) |
Benefit Plans (Amounts Recogn_2
Benefit Plans (Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | $ 69.4 | $ 73 | |
Prior service cost (credit) | 0.8 | 0.9 | |
Total | 70.2 | 73.9 | |
Defined Benefit Plan, Excess of Net Periodic Benefit Cost Over Other Comprehensive Income | 0.7 | 7.1 | $ 0.3 |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | (7) | (9.4) | |
Prior service cost (credit) | (1) | (1.7) | |
Total | (8) | (11.1) | |
Defined Benefit Plan, Excess of Net Periodic Benefit Cost Over Other Comprehensive Income | $ 0.3 | $ (1.2) | $ (0.8) |
Benefit Plans (Expected Benefit
Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2019 | $ 22.3 |
2020 | 14.8 |
2021 | 17 |
2022 | 15.2 |
2023 | 15.4 |
2025 to 2029 | 73.8 |
Total benefit payments expected | 158.5 |
Foreign Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2019 | 1.3 |
2020 | 1.3 |
2021 | 2 |
2022 | 1.5 |
2023 | 1.9 |
2025 to 2029 | 13.3 |
Total benefit payments expected | 21.3 |
United States [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2019 | 21 |
2020 | 13.5 |
2021 | 15 |
2022 | 13.7 |
2023 | 13.5 |
2025 to 2029 | 60.5 |
Total benefit payments expected | $ 137.2 |
Benefit Plans (Assumptions Used
Benefit Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan [Member] | |||
Weighted average assumptions used in net periodic benefit cost: | |||
Discount rate | 2.70% | 2.91% | 3.48% |
Rate of compensation increase | 2.41% | 4.00% | 4.01% |
Long-term rate of return on assets | 5.54% | 6.71% | 6.47% |
Weighted average assumptions used in benefit obligations: | |||
Discount rate | 2.79% | 3.76% | |
Rate of compensation increase | 2.49% | 4.01% | |
Other Postretirement Benefits Plan [Member] | |||
Weighted average assumptions used in net periodic benefit cost: | |||
Discount rate | 4.20% | 3.45% | 3.90% |
Weighted average assumptions used in benefit obligations: | |||
Discount rate | 3.20% | 4.20% |
Benefit Plans (Allocation of Pl
Benefit Plans (Allocation of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 244.1 | $ 214.5 |
Weighted average asset allocations | 100.00% | 100.00% |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2.2 | 1.7 |
Cash [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2.2 | $ 1.7 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 33.00% | 23.00% |
Target allocation | 30.00% | 65.00% |
International Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 15.5 | $ 17.7 |
International Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.3 | $ 17.7 |
International Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.2 | |
International Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 65.00% | 74.00% |
Target allocation | 70.00% | 35.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations | 2.00% | 3.00% |
Target allocation | 0.00% | |
Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 21.7 | $ 13.9 |
Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.8 | 13.9 |
Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.9 | |
Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Pension Plan Assets In The Fair Value Hierarchy [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39.4 | 33.3 |
Pension Plan Assets In The Fair Value Hierarchy [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.3 | 33.3 |
Pension Plan Assets In The Fair Value Hierarchy [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 32.1 | |
Pension plan assets measured at NAV [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 204.7 | $ 181.2 |
Minimum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.27 | |
Minimum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.67 | |
Minimum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | — | |
Maximum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.33 | |
Maximum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.73 | |
Maximum [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.03 |
Other Expense (Details)
Other Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Severance and post-employment benefits | $ 2.6 | $ 3.1 | $ 0 |
Asset-related charges | 0.3 | 2.2 | 0 |
Other charges | 2 | 3.8 | 0 |
Total restructuring and related charges | 4.9 | 9.1 | 0 |
Venezuela currency devaluation | 1 | 1.1 | 0 |
Venezuela deconsolidation | 0 | 0 | 11.1 |
Development and licensing income | (0.9) | (0.9) | (10.6) |
Contingent consideration | 2.1 | (2.6) | (2.4) |
Other items | (4.9) | (4.8) | 3.9 |
Total other expense | $ (2.5) | $ 1.9 | $ 2 |
Other Expense Restructuring and
Other Expense Restructuring and Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | $ 126.4 | $ 104.7 | $ 130.8 |
Severance charges | 2.6 | 3.1 | 0 |
Other restructuring charges | 2 | 3.8 | 0 |
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2017 | 3.3 | ||
Charges | 4.9 | 9.1 | 0 |
Non-cash asset write-downs | (2.3) | (2.2) | $ (0.7) |
Balance, December 31, 2018 | 1.5 | 3.3 | |
Severance and benefits [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2017 | 2.3 | ||
Charges | 2.6 | ||
Cash payments | (3.5) | ||
Non-cash asset write-downs | 0 | ||
Balance, December 31, 2018 | 1.4 | 2.3 | |
Asset-related charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2017 | 0 | ||
Charges | 0.3 | ||
Cash payments | 0 | ||
Non-cash asset write-downs | (0.3) | ||
Balance, December 31, 2018 | 0 | 0 | |
Other charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2017 | 0 | ||
Charges | 2 | ||
Cash payments | 0 | ||
Non-cash asset write-downs | (2) | ||
Balance, December 31, 2018 | 0 | 0 | |
2018 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 4.9 | ||
Severance charges | 2.6 | ||
Asset impairment charges, patent and equipment | 0.3 | ||
Other restructuring charges | 2 | ||
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2017 | 2.3 | ||
Charges | 4.9 | ||
Cash payments | (3.5) | ||
Non-cash asset write-downs | (2.3) | ||
Balance, December 31, 2018 | 1.4 | $ 2.3 | |
2016 Restructuring Plan [Member] [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.3 | ||
Restructuring Reserve [Roll Forward] | |||
Balance, December 31, 2018 | 0.1 | ||
Maximum [Member] | 2018 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 16 |
Other Expense Other Items (Text
Other Expense Other Items (Textuals) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Feb. 17, 2016 | |
Summary of Investment Holdings [Line Items] | |||||
Venezuela currency devaluation | $ 1 | $ 1.1 | $ 0 | ||
Venezuela deconsolidation | 0 | 0 | $ (11.1) | ||
Foreign Currency Transaction Gain | 5.6 | ||||
Foreign Currency Transaction (Loss) | $ (5.5) | ||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 1.1 | ||||
VENEZUELA | |||||
Summary of Investment Holdings [Line Items] | |||||
Foreign currency exchange rate, remeasurement | 6.3 | 10 |
Other Expense Development and L
Other Expense Development and Licensing Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2013 | |
Development and licensing income [Line Items] | ||||
Development and licensing income | $ 0.9 | $ 0.9 | $ 10.6 | |
Deferred income | 34.9 | 33.4 | ||
SmartDose [Member] | ||||
Development and licensing income [Line Items] | ||||
Development and licensing income | $ 0.9 | 0.9 | $ 1.5 | |
Deferred income | $ 20 | |||
Other [Member] | ||||
Development and licensing income [Line Items] | ||||
Development and licensing income | $ 9.1 |
Income Taxes (Textuals) (Detail
Income Taxes (Textuals) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income tax expense | $ 59,000,000 | $ 41,400,000 | $ 80,900,000 |
Other Income Tax Expense (Benefit), Continuing Operations | (300,000) | ||
Discrete tax charge, Tax Cuts and Jobs Act of 2017 | (2,500,000) | 48,800,000 | |
Accrued liabilities for interest and penalties | 200,000 | ||
Total gross unrecognized tax benefits | 5,000,000 | 3,900,000 | 3,200,000 |
Estimated reduction in the liability for unrecognized tax benefits | 500,000 | ||
Discrete tax charge, Tax Cuts and Jobs Act of 2017 | (2,500,000) | 48,800,000 | |
Income tax expense (benefit) | 59,000,000 | 41,400,000 | 80,900,000 |
Provisional Transition Tax, Tax Cuts and Jobs Act of 2017 | 27,900,000 | ||
Provisional tax charge, Tax Cuts and Jobs Act of 2017 | 11,400,000 | ||
Reduction in Transition Tax, Tax Cuts and Jobs Act of 2017 | 7,500,000 | ||
Measurement period adjustment, Tax Cuts and Jobs Act of 2017 | 4,000,000 | ||
Transitional Tax, Tax Cuts and Jobs Act of 2017 | $ 20,400,000 | ||
Net impact to the 2018 effective tax rate, Tax Cuts and Jobs Act of 2017 | 0.0145 | ||
Undistributed earnings of foreign subsidiaries | 214,200,000 | ||
Accounting Standards Update 2016-09 [Member] | |||
Income tax expense | (10,300,000) | $ (14,300,000) | (33,100,000) |
Income tax expense (benefit) | $ (10,300,000) | $ (14,300,000) | $ (33,100,000) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $ 3.9 | $ 3.2 |
Increase due to current year position | 1.6 | 0.8 |
Increase due to prior year position | 0 | 0.4 |
Reduction for expiration of statute of limitations/audits | (0.5) | (0.5) |
Balance at December 31 | $ 5 | $ 3.9 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 161.2 | $ 132.9 | $ 96.5 |
International operations | 130.6 | 107.8 | 125.9 |
Income before income taxes | $ 291.8 | $ 240.7 | $ 222.4 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 10.8 | $ 2.1 | $ 2.1 |
State | 2.4 | 3.3 | 0.1 |
International | 30.5 | 35.1 | 37 |
Current income tax provision | 43.7 | 40.5 | 39.2 |
Deferred: | |||
Federal and state | 10.3 | 1.4 | 41.8 |
International | 5 | (0.5) | (0.1) |
Deferred income tax provision | 15.3 | 0.9 | 41.7 |
Income tax expense | $ 59 | $ 41.4 | $ 80.9 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards, foreign | $ 6.4 | |
Operating loss carryforwards, state and local | 15.5 | |
Deferred tax assets | ||
Net operating loss carryforwards | 21.9 | $ 18.4 |
Tax credit carryforwards | 2.8 | 10.5 |
Pension and deferred compensation | 25.6 | 27.2 |
Other | 9.2 | 11.4 |
Valuation allowance | (15.9) | (16) |
Total deferred tax assets | 43.6 | 51.5 |
Deferred tax liabilities: | ||
Accelerated depreciation | 37.9 | 31.3 |
Tax on undistributed earnings of subsidiaries | 6.3 | 6.6 |
Other | 0.9 | 2 |
Total deferred tax liabilities | 45.1 | 39.9 |
Net deferred tax (liability) asset | (1.5) | $ 11.6 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 226.9 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 49.4 | |
Operating loss carryforwards, not subject to expiration | 48.7 | |
Year 2018 [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 15.4 | |
Year After 2018 [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 211.5 | |
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 2 | |
Research Tax Credit Carryforward [Member] | Year 2022 [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 0.5 | |
Research Tax Credit Carryforward [Member] | Year 2023 [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 0.5 | |
Research Tax Credit Carryforward [Member] | Year After 2023 [Member] | State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 1 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal corporate tax rate | 21.00% | 21.00% | 35.00% |
Tax on international operations other than U.S. tax rate | 2.70% | 4.80% | (4.50%) |
Reversal of prior valuation allowance | 0.00% | 0.00% | (0.50%) |
Adjustments to reserves for unrecognized tax benefits | 0.40% | 0.20% | (0.20%) |
U.S. tax on international earnings, net of foreign tax credits | 0.40% | 0.20% | 0.10% |
State income taxes, net of federal tax effect | 1.40% | 2.30% | 0.20% |
U.S. research and development credits | (1.00%) | (0.90%) | (0.80%) |
Excess tax benefits on share-based payments | (3.50%) | (6.00%) | 14.10% |
Impact of 2017 Tax Act | 0.00% | (2.90%) | 15.90% |
Tax on undistributed earnings of subsidiaries | (0.20%) | (1.30%) | 4.40% |
Venezuela deconsolidation | 0.00% | 0.00% | 1.70% |
Other business credits and Section 199 Deduction | 0.00% | 0.00% | (0.60%) |
Other | (1.00%) | 0.20% | (0.20%) |
Effective tax rate | 20.20% | 17.20% | 36.40% |
Commitments and Contingencies (
Commitments and Contingencies (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Contingent consideration, payable period | 5 years | |
Contingent consideration, estimated outcome, low | $ 0 | |
Contingent consideration, estimated outcome, high | 3.7 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Outstanding unconditional contractual commitments for the purchase of raw materials, utilities and equipment | 249.1 | |
Outstanding uncondintional contractual commitments due to be paid in 2020 | $ 61.3 | |
Insurance Claims [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for insurance obligations | 3.2 | |
Amount reimbursable by the insurance company | 0.9 | |
Revolving credit facility, due 2024 [Domain] | Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit supporting the reimbursement of workers' compensation and other claims | $ 2.5 |
Segment Information (Textuals)
Segment Information (Textuals) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Disclosure of major customers | 10 |
Number of reportable segments | 2 |
Segment Information (Sales by P
Segment Information (Sales by Product Group) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 |
Contract-Manufactured Products [Member] | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Net sales | 441.5 | 409.1 | 362.5 |
Proprietary Products [Member] | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Net sales | 1,398.6 | 1,308.6 | 1,236.9 |
Intersegment Elimination [Member] | |||
Segment Reporting, Revenue Reconciling Items [Line Items] | |||
Net sales | $ (0.2) | $ (0.3) | $ (0.3) |
Segment Information (Sales and
Segment Information (Sales and PPE by Geographic Location) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 |
Property, plant and equipment, net | 839.3 | 822 | 855 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 814.7 | 766.1 | 734.6 |
Property, plant and equipment, net | 337.1 | 315.3 | 323.8 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 236.3 | 235.9 | 226.4 |
Property, plant and equipment, net | 95.4 | 99.3 | 108.8 |
France [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 150.6 | 145 | 142.6 |
Property, plant and equipment, net | 53.3 | 50.1 | 51.6 |
Other European countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 251.1 | 230.5 | 201 |
Property, plant and equipment, net | 59.1 | 59.5 | 63.2 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 213.4 | 201.8 | 194 |
Property, plant and equipment, net | 132.4 | 132.4 | 134.4 |
IRELAND | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 173.8 | 138.1 | 100.5 |
Property, plant and equipment, net | $ 162 | $ 165.4 | $ 173.2 |
Segment Information (Segment Fi
Segment Information (Segment Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,839.9 | $ 1,717.4 | $ 1,599.1 |
Operating profit | 296.6 | 240.3 | 225.8 |
Interest expense | 8.5 | 8.4 | 7.8 |
Interest income | (3.8) | (2.1) | (1.3) |
Other nonoperating expense (income) | 0.1 | (6.7) | (3.1) |
Income before income taxes | 291.8 | 240.7 | 222.4 |
Segment assets | 2,341.4 | 1,978.9 | 1,862.8 |
Capital expenditures | (126.4) | (104.7) | (130.8) |
Depreciation and amortization expense | 103.4 | 104.4 | 96.7 |
Proprietary Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,398.6 | 1,308.6 | 1,236.9 |
Operating profit | 313.6 | 266.4 | 243.8 |
Interest expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Other nonoperating expense (income) | 0 | 0 | 0 |
Income before income taxes | 313.6 | 266.4 | 243.8 |
Segment assets | 1,480.6 | 1,342.3 | 1,321.3 |
Capital expenditures | (91.2) | (77) | (107.2) |
Depreciation and amortization expense | 82.2 | 83.9 | 77.1 |
Contract-Manufactured Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 441.5 | 409.1 | 362.5 |
Operating profit | 49.1 | 44.3 | 48.3 |
Interest expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Other nonoperating expense (income) | 0 | 0 | 0 |
Income before income taxes | 49.1 | 44.3 | 48.3 |
Segment assets | 386 | 301.4 | 286.4 |
Capital expenditures | (37.2) | (20.7) | (18.6) |
Depreciation and amortization expense | 17.9 | 17.2 | 16.4 |
Corporate and Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (0.2) | (0.3) | (0.3) |
Operating profit | (66.1) | (70.4) | (66.3) |
Interest expense | 8.5 | 8.4 | 7.8 |
Interest income | (3.8) | (2.1) | (1.3) |
Other nonoperating expense (income) | 0.1 | (6.7) | (3.1) |
Income before income taxes | (70.9) | (70) | (69.7) |
Segment assets | 474.8 | 335.2 | 255.1 |
Capital expenditures | 2 | (7) | (5) |
Depreciation and amortization expense | $ 3.3 | $ 3.3 | $ 3.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 18 | $ 21.4 | $ 19.1 | |
Charged to costs and expenses | 0.1 | (2.3) | 2.3 | |
Deductions | [1] | (1.7) | (1.1) | 0 |
Balance at end of period | 16.4 | 18 | 21.4 | |
Deferred Tax Asset Valuation Allowance [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 16 | 20.9 | 18.7 | |
Charged to costs and expenses | 0 | (3) | 2.5 | |
Deductions | [1] | (0.1) | (1.9) | (0.3) |
Balance at end of period | 15.9 | 16 | 20.9 | |
Allowance for Doubtful Accounts Receivable [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | 2 | 0.5 | 0.4 | |
Charged to costs and expenses | 0.1 | 0.7 | (0.2) | |
Deductions | [1] | (1.6) | 0.8 | 0.3 |
Balance at end of period | $ 0.5 | $ 2 | $ 0.5 | |
[1] | Includes accounts receivable written off, the write-off or write-down of valuation allowances, and translation adjustments. |